Enseco Energy Services Corp.
TSX VENTURE : ENS

Enseco Energy Services Corp.

September 09, 2010 13:28 ET

Enseco Energy Services Corp. Announces the Closing of Its Previously Announced Bought Deal Private Placement Financing

CALGARY, ALBERTA--(Marketwire - Sept. 9, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Enseco Energy Services Corp. (TSX VENTURE:ENS) ("Enseco" or the "Company") is pleased to announce that it has closed its previously announced bought deal private placement (the "Offering") with Desjardins Securities Inc. (the "Underwriter"). The Offering consisted of 30,000,000 special warrants ("Special Warrants") of the Company issued at a price of $0.20 per Special Warrant for aggregate gross proceeds of $6,000,000. 

Each Special Warrant will entitle the holder to receive, for no additional consideration and without further action on the part of the holder, one (1) common share (the "Common Shares") and one half (0.5) common share purchase warrant (the "Warrants"), each whole Warrant being exercisable at $0.27 per Common Share until September 9, 2011. The Special Warrants issued pursuant to the Offering are subject to a four month hold period.

The Company has agreed to use its best efforts to file and clear a (final) short form prospectus (the "Prospectus") in Alberta and Ontario (the "Qualifying Jurisdictions") qualifying the Common Shares and the Warrants issued upon exercise of the Special Warrants pursuant to National Instrument 44-101 and obtain a final passport receipt (the "Receipt") evidencing a receipt for the Prospectus on behalf of each of the securities regulatory authorities in each of the Qualifying Jurisdictions, pursuant to Multilateral Instrument 11-102, by October 15, 2010 (the "Qualification Deadline"). If a Receipt dated on or before the Qualification Deadline is not obtained, the Company shall issue to each holder of Special Warrants, for no additional cost to and without further action on the part of such holder, an additional 0.1 of a Common Share for each Common Share and 0.1 of a Warrant for each Warrant to be issued to such holder pursuant to the Special Warrants. 

The net proceeds of the Offering will be used to reduce indebtedness and for general corporate purposes.

Enseco is a growing supplier of energy related services operating throughout United States and Canada providing directional drilling, production testing and swabbing services to the industry. Enseco is led by an experienced management team offering directional drilling, well swabbing and production testing services with a focus on continued value creation through accretive acquisitions and organic growth.

FORWARD-LOOKING STATEMENTS

Certain information and statements contained in this press release constitute forward-looking information. Specifically this press release contains forward-looking statements relating to the use of proceeds of the Offering and the timing to file and clear the Prospectus in the Qualifying Jurisdictions to qualify the Common Shares and the Warrants. The forward-looking statements contained in this press release speak only as of the date of this press release and are expressly qualified by this cautionary statement. These forward-looking statements are based on certain key assumptions regarding, among other things, that all approvals for the Prospectus will be received, that no material adverse change will occur in Enseco's operations, and assumptions regarding the economy in North America. Furthermore, these forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Such factors include, but are not limited to general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations and changes in how they are interpreted and enforced, increased competition, volatility of commodity prices and the inability to satisfy the closing conditions, including receipt of regulatory approval with respect to the Prospectus. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Enseco's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, or if any of them do so, what benefits that Enseco will derive therefrom. Enseco disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Special Warrants ,the Common Shares and Warrants underlying the Special Warrants, and the Common Shares underlying the Warrants have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Enseco Energy Services Corp.
    Lane Roberts
    President and CEO
    (403) 806-0088
    or
    Enseco Energy Services Corp.
    Blair Layton
    Vice President, Finance and CFO
    (403) 806-0088