Enseco Energy Services Corp.

Enseco Energy Services Corp.

January 03, 2007 16:17 ET

Enseco Energy Services Corp. Announces Appointment of Chief Financial Officer and Completion of Private Placement

CALGARY, ALBERTA--(CCNMatthews - Jan. 3, 2007) - Enseco Energy Services Corp. ("Enseco") is pleased to announce that Mr. David Hawkins has joined Enseco as Chief Financial Officer effective January 1, 2007. Before joining Enseco, Mr. Hawkins was the Vice President Finance and Chief Financial Officer of Total Energy Services Trust from July 1998 to December of 2006. Prior thereto, Mr. Hawkins was the Senior Manager Finance and Corporate Development of Peak Energy Services Trust from July 1996 to July 1998 and prior thereto, Mr. Hawkins was Audit Manager with KPMG LLP since November of 1992. As part of Mr. Hawkins employment, Enseco has also agreed to purchase all of the issued and shares of a private company owned by Mr. Hawkins and another arm's length party for total consideration of $981,250 payable through the issuance of $250,000 in cash and 225,000 common shares ("Common Shares") of Enseco. The private corporation has no assets or liabilities other than $435,000 in cash and purchase orders to acquire certain oilfield service assets aggregating approximately $900,000. Completion of the acquisition is subject to receipt of the approval of the TSX Venture Exchange.

Enseco also announces that it has completed, as previously indicated, two further private placements (the "Private Placement") of an aggregate of $4,278,600 principal amount of 10% unsecured subordinated convertible debentures (the "Debentures"). The Debentures are subordinate to any senior debt or commercial financing of Enseco, bear interest at 10% per annum and are convertible into Common Shares by the holder at any time prior to maturity at a rate of $3.50 per Common Share, subject to adjustment in certain circumstances (the "Conversion Rate"). Enseco is entitled to redeem the Debentures at any time prior to their maturity (the "Maturity Date") upon payment of a 1% prepayment penalty and the Debentures automatically convert into Common Shares on the Maturity Date at the Conversion Rate. The Debentures and the Common Shares issuable upon conversion of the Debentures are subject to a hold period and may not be traded until April 16, 2007 and May 3, 2007, as the case may be, except as permitted by applicable securities laws and the rules of the TSX Venture Exchange. A portion of the Private Placement was placed through Trimor Capital Corporation, Sprott Securities Inc. and Canaccord Capital Inc. with commissions of 6% payable in connection therewith.

Enseco is an emerging supplier of energy related services operating throughout the Western Canadian Sedimentary Basin with operational centres in Red Deer, Whitecourt, Edmonton, Beaverlodge and Fort St. John, as well as corporate and sales offices located in Calgary. Enseco is led by an experienced management team currently offering well swabbing, production testing, and directional drilling services with a focus on continued value creation through accretive acquisitions and organic growth.

This press release contains forward-looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances or achievements of Enseco to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, fluctuations in the market for oil and gas and related products and services, political and economic conditions, the demand for services provided by Enseco, industry competition and Enseco's ability to attract and retain both customers and key personnel.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Enseco Energy Services Corp.
    Kelly M. Nichol
    President and CEO
    (403) 806-0088
    Email: knichol@Enseco.ca