Enseco Energy Services Corp.

Enseco Energy Services Corp.

August 09, 2009 23:28 ET

Enseco Energy Services Corp. Announces Private Placement

CALGARY, ALBERTA--(Marketwire - Aug. 9, 2009) - Enseco Energy Services Corp. ("Enseco" or the "Company") (TSX VENTURE:ENS) announced today that it intends to complete a non-brokered private placement of up to $2 million principal amount of 14% convertible secured subordinated debentures (the "Debentures") of Enseco, subject to receipt of all applicable regulatory approvals. Directors and officers of Enseco are expected to subscribe for up to $950,000 principal amount of the Debentures. Enseco anticipates closing the private placement on or about August 12, 2009.

The Debentures will be repayable eighteen months from the date of issue, will bear interest at 14% per annum payable in cash on maturity, conversion or upon an event of default and will be convertible into common shares ("Common Shares") of Enseco by the holder at any time prior to maturity at a rate of $0.10 per Common Share, subject to adjustment in certain circumstances. The Debentures will be a secured obligation of the Company subordinated in right of payment to the prior payment in full of all Senior Indebtedness of the Company. Senior Indebtedness will include all secured debt whether now existing or hereafter incurred, assumed or arising, but will exclude normal trade payables.

The Debentures and any Common Shares issued upon conversion of the Debentures will be subject to a hold period of four months and one day from the closing date.

The proceeds of the offering will be used by the Company for working capital, for general corporate purposes and the repayment of a cash advance from a director to the Company.

Enseco is an emerging supplier of energy related services operating throughout the Western Canadian Sedimentary Basin and select markets in the United States, with operational centres in Red Deer, Whitecourt, Edmonton, Beaverlodge, Grande Prairie, Fort St. John, Midale, Saskatchewan and Minot, North Dakota, as well as a corporate and sales office located in Calgary. Enseco is led by an experienced management team currently offering well swabbing, production testing, open hole logging, and directional drilling 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, including, without limitation, expectations regarding completion of the private placement and the timing thereof, receipt of regulatory approval and the use of proceeds. These forward-looking statements are based upon the opinions, expectations and estimates of management as at the date the statements are made. 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, the inability to complete the private placement or to obtain the required regulatory approval. 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.
    David A. Hawkins
    President and CEO
    (403) 806-0088
    Enseco Energy Services Corp.
    Aly Khan Musani
    Senior Vice President and CFO
    (403) 806-0088