Enseco Energy Services Corp.

Enseco Energy Services Corp.

December 01, 2009 08:00 ET

Enseco Energy Services Corp. Announces Closing of Private Directional Services Company and New Banking Facility

CALGARY, ALBERTA--(Marketwire - Dec. 1, 2009) - Enseco Energy Services Corp. ("Enseco" or the "Company") (TSX VENTURE:ENS) is pleased to advise that its previously announced (November 13, 2009) agreement to acquire all of the issued and outstanding shares of a private directional services company ("Directional Acquisition") closed on November 30, 2009 as scheduled. Blackmont Capital Inc. acted as the financial advisor to the Board of Directors of Enseco in respect of the transaction.

In connection with the closing of the Directional Acquisition, the Company also entered into a new $29.7 million credit facility with its lender which includes:

  • a $6.0 million demand revolving operating facility;
  • a $15.7 million non-revolving capital facility to finance the acquisition of capital assets which is fully drawn and is repayable over 60 months which commenced October 31, 2009;
  • a $3.0 million non-revolving capital facility which was used to repay certain long term indebtedness owing by the private directional services company and which is payable over 60 months commencing December 31, 2009; and
  • a $5.0 million non-revolving demand acquisition facility that was used to fund the cash portion of the purchase price of the Directional Acquisition.

At November 30, 2009, the Company had approved access to approximately $28.1 million of the total $29.7 million credit facility, but has drawn approximately $28.6 million as of that date and the Company is currently in breach of certain of its covenants under the new facility.

In addition, pursuant to the Directional Acquisition, Enseco acquired access to the private companies' $5.5 million demand revolving operating facility, of which approximately $1.8 million was drawn as of the date hereof.

Enseco is a growing supplier of energy related services operating throughout Western Canada and the United States, with operational centers in Red Deer, Whitecourt, Edmonton, Beaverlodge, Grande Prairie, Fort St. John, Midale (Saskatchewan), Minot (North Dakota) and Gillette (Wyoming) as well as a corporate and sales office located in Calgary. Enseco is led by an experienced management team currently offering directional drilling services, well swabbing, production testing and open hole logging, with a focus on continued value creation through accretive acquisitions and organic growth.

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