Enseco Energy Services Corp.
TSX VENTURE : ENS

Enseco Energy Services Corp.

September 13, 2010 08:00 ET

Enseco Energy Services Corp. Announces the Sale of Its Swabbing Assets and a Strategic Acquisition

CALGARY, ALBERTA--(Marketwire - Sept. 13, 2010) - Enseco Energy Services Corp. ("Enseco" or the "Company") (TSX VENTURE:ENS) is pleased to announce that the Company has signed a definitive agreement to sell all of its swabbing assets (the "Swabbing Assets") to a Canadian based private oilfield services company for an aggregate purchase price $3,000,000 (the "Sale"). The purchase price shall be satisfied by (i) the payment of $2,750,000 cash on the closing date (the "Closing Date") of the Sale, and (ii) the issuance of a $250,000 principal amount promissory note in favour of the Company that will be due and payable 24 months after the Closing Date. Enseco expects to close the Sale on or around September 23, 2010. Proceeds from the Sale will be used to continue to grow the Company's business in North America. The completion of the Sale is subject to various conditions, including the receipt of regulatory and third party approvals.

The Sale is in line with the Company's previously announced strategy of focusing on directional drilling and production flowback testing services in North American resource plays. 

The Company is also pleased to announce that it has completed the acquisition (the "Acquisition") of certain high pressure and frac-flowback testing assets from another Canadian based private oilfield services company (the "Private Company") having a purchase price of $700,000. The purchase price was satisfied by the issuance of 3,333,333 common shares ("Common Shares") of the Company having a deemed issue price of $0.21 per share. In addition, the Company entered in to a lease agreement (the "Lease Agreement") with the Private Company with respect to additional high pressure and frac-flowback testing assets (the "Leased Assets"). The Lease Agreement contains an option to purchase the Leased Assets for a purchase price of $500,000, to be satisfied by eight monthly payments of $62,500 following the exercise of the option. The Common Shares issued pursuant to the Acquisition are subject to a four month hold period.

About Enseco

Enseco is a growing supplier of energy related services operating throughout United States and Canada. Enseco is led by an experienced management team and, following the completion of the Sale, will be completely focused on providing directional drilling and production flowback testing services.

FORWARD-LOOKING STATEMENTS

Certain information and statements contained in this press release constitute forward-looking information. Specifically this press release contains forward-looking statements relating to the Closing Date, the purchase price of the Swabbing Assets and the Leased Assets and the payment therefor, the effect of the Sale on Enseco's business, the use of proceeds from the Sale, Enseco's business following the Sale and Enseco's ongoing focus and business plans. 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 value of the Swabbing Assets and Leased Assets, the benefits to be achieved from the Sale, the timing of closing of the Sale and the satisfaction of closing conditions, including receipt of regulatory and third party approvals. 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 and third party 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 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