Enseco Energy Services Corp.

Enseco Energy Services Corp.

February 11, 2010 21:50 ET

Enseco Energy Services Corp. Announces the Closing of Its Previously Announced Financing

CALGARY, ALBERTA--(Marketwire - Feb. 11, 2010) - Enseco Energy Services Corp. (TSX VENTURE:ENS) ("Enseco" or the "Company") is pleased to announce that it has closed its previously announced private placement financing (the "Offering") of the Company through a syndicate of underwriters led by Desjardins Securities Inc. and including FirstEnergy Capital Corp., Wellington West Capital Markets Inc. and Acumen Capital Finance Partners Limited (collectively the "Underwriters"). The Offering consisted of 40,000,000 units ("Units") of the Company (including 15,000,000 Units that were issued pursuant to the exercise of an option (the "Underwriters' Option") of the Underwriters) issued at a price of $0.20 per Unit for aggregate gross proceeds of $8,000,000. Of the 40,000,000 Units issued pursuant to the Offering, 7,250,000 Units (the "Escrowed Units") are being held in escrow subject to the TSX Venture Exchange's final listing approval. 

Each Unit consists of one common share (a "Common Share") of the Company and one half (½) of a warrant. Each whole warrant entitles the holder to purchase one additional common share at a price of $0.25 for a period of one year.

The net proceeds of the Offering will be used to fund the previously announced acquisition (the "Acquisition") of the directional drilling kits and related assets of a private energy services company with significant operations in the United States and general corporate purposes. The Acquisition is scheduled to close on or about February 12, 2010. 

Enseco is a growing supplier of energy related services operating throughout western Canada and the United States, with operational centres in Red Deer, Edmonton, Beaverlodge, Fort St. John, Midale (Saskatchewan), Minot (North Dakota) and Gillette (Wyoming) as well as a corporate and sales office located in Calgary and a corporate sales office in Houston. 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.


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, the Escrowed Units and the closing of the Acquisition. 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, the benefits to be achieved from the Acquisition, the satisfaction of the release conditions for the Escrowed Units, the satisfaction of closing conditions of the Acquisition, including receipt of regulatory approval and the completion of satisfactory due diligence. 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 satisfy the closing conditions, including receipt of regulatory approval and the completion of the Offering. 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.

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