Enseco Energy Services Corp.

Enseco Energy Services Corp.

January 27, 2012 16:45 ET

Enseco Energy Services Corp. Announces Non-Brokered Private Placement and the Retirement of Its President and Chief Executive Officer

CALGARY, ALBERTA--(Marketwire - Jan. 27, 2012) -


Enseco Energy Services Corp. ("Enseco" or the "Company") (TSX VENTURE:ENS) is pleased to announce that it will be conducting a non-brokered private placement of up to 2,050,000 units of the Company ("Units") of the Company at a price of $1.15 per Units for aggregate proceeds of up to $2,357,500 (the "Private Placement"), subject to the receipt of all applicable regulatory approvals. Each Unit consists of one common share in the capital of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole warrant a "Warrant"). Each Warrant shall entitle the holder thereof to acquire one Common Share until September 30, 2012 at a price of $1.65 per share. Insiders of the Company are expected to acquire approximately 45% of the Units issued under the Private Placement. The proceeds of the Private Placement will be used for general working capital and general corporate purposes. The Private Placement is expected to close on or around January 31, 2012.

The Common Shares and Warrants issued pursuant to the Private Placement will be subject to a hold period of four months and one day from the closing date as well as other restrictions with respect to sales from control positions.

The securities to be issued pursuant to the Private Placement by Enseco have not and will not be registered under the United States Securities Act, 1933, as amended (the "1933 Act"), or the securities laws of any state of the United States and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.

In conjunction with the Private Placement, Lane Roberts, an insider of the Company, will sell 650,000 Common Shares held by him at a price of $1.15. The proceeds of this share sale will be used by Mr. Roberts to purchase a first secured mortgage (the "Mortgage") held by the Company over certain real property located in British Columbia. The sale of the Mortgage will provide the Company with additional resources to fund its capital program.

Retirement of President and Chief Executive Officer

The Company also announces that Lane Roberts, the President and Chief Executive Officer of the Corporation will be retiring effective as of February 29, 2012. Lane will continue with the Company on an interim basis following his retirement to aid in the transition, and will remain on the Company's board of directors.


Enseco is a premier supplier of directional drilling and production testing services operating throughout the Western Canadian Sedimentary Basin and select markets in the United States, with operations in the Bakken, Cardium, Viking, Montney and Green River resource plays as well as a corporate and sales office located in Calgary. Enseco is led by an experienced management team 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 or forward-looking statements (collectively "forward-looking statements"), as defined under applicable securities laws. Specifically this press release contains forward-looking statements relating to the closing of the Private Placement, the sale of shares by an insider, the use of proceeds of the Private Placement and the sale of the Mortgage, the issuance of Common Shares and Warrants, the terms of the Warrants, insider participation in the Private Placement, the consideration for the Private Placement and Mr. Roberts' retirement. These forward-looking statements are based on certain key assumptions regarding, among other things, the timing of closing of the Private Placement, the receipt of regulatory approval, current industry conditions and the general economic conditions in Canada and the United States. 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 complete the transactions or to obtain required regulatory approvals. 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, if any, benefits that Enseco will derive therefrom. 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. 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.
    Blair Layton
    Chief Financial Officer
    (403) 806-0088

    Enseco Energy Services Corp.
    Scott Ratushny
    (403) 216-2705