Enseco Energy Services Corp.

Enseco Energy Services Corp.

December 08, 2006 14:50 ET

Enseco Energy Services Corp. Announces Completion of Private Placement

CALGARY, ALBERTA--(CCNMatthews - Dec. 8, 2006) - Enseco Energy Services Corp. ("Enseco") is pleased to announce that it has completed a private placement (the "Private Placement") of $3 million principal amount of 10% unsecured subordinated convertible debentures (the "Debentures") of Enseco. Directors and officers of Enseco and their spouses subscribed for an aggregate of $800,000 of the Debentures. Enseco anticipates closing a second offering of Debentures prior to year-end.

The Debentures are subordinate to any senior debt or commercial financing of Enseco, bear interest at 10% per annum include a 1% setup fee and are convertible into common shares ("Common Shares") of Enseco 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 December 4, 2008 (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 5, 2007 except as permitted by applicable securities laws and the rules of the TSX Venture Exchange. The Private Placement was non-brokered.

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