SOURCE: ENSERVCO

ENSERVCO

May 23, 2012 08:22 ET

ENSERVCO Corporation Provides Operations Update; Reports Strong Off-Season Demand and Major New Customer Relationship

DENVER, CO--(Marketwire - May 23, 2012) - ENSERVCO Corporation (OTCQB: ENSV) (OTCBB: ENSV), a provider of well-site services to the domestic onshore conventional and unconventional oil and gas industries, today reported a strong pickup in demand from its Wyoming, Colorado and Central US service territories, and also said it has begun work with one of the largest operators in the burgeoning Mississippian Lime shale play. The increase in activity and new customer relationship have come during what is typically ENSERVCO's slower summer season, and management believes they have positioned the Company to deliver much improved year-over-year revenue results during the coming two quarters.

In southeastern Wyoming and northeastern Colorado, where producers are targeting the Niobrara Shale Formation, ENSERVCO has seen strong demand during the current quarter for hot oiling, pressure testing, frac heating and fluid management services. The Company opened its Cheyenne operations center last September, and has been redeploying service assets into the region to address increased drilling activity by multiple customers.

Lower average annual temperatures in ENSERVCO's Rocky Mountain territory, coupled with production techniques typically used in the region's unconventional shale plays, generally require fluid heating work during all but the hottest summer months.

ENSERVCO also has reported a sharp increase in demand in its Central U.S. territory, where it has begun work with one of the largest operators focused on the Mississippian Lime formation, a promising unconventional shale play that spans portions of southern Kansas and northern Oklahoma. The initial scope of work involves a range of fluid management and pressure testing services, but is expected to expand to include hot oiling and frac heating beginning in the fall.

"This strong off-season activity reflects the long heating seasons in our new Rocky Mountain territories, our expanding workload with existing customers that are consolidating their vendor lists, and our ability to capture new customer opportunities," said Rick Kasch, president and CFO. "We are working as fast as possible with our current financial resources to fabricate new service assets, and we continue to redeploy existing equipment to best address our customers' needs."

Kasch added, "Despite the challenges brought on by the recent exceptionally warm winter, we are making great strides in positioning the Company for growth. We have an expanding roster of blue-chip customers and have established service yards in many of this country's most active unconventional oil and gas basins. We remain very optimistic about our prospects for long-range success."

About ENSERVCO
Through its various operating subsidiaries, ENSERVCO has rapidly emerged as one of the energy service industry's leading providers of hot oiling, acidizing, frac heating and fluid management services. The Company owns and operates a fleet of more than 245 specialized trucks, trailers, frac tanks and related well-site equipment. ENSERVCO operates in Colorado, Kansas, Montana, New Mexico, North Dakota, Oklahoma, Ohio, Pennsylvania, Texas, Utah, Wyoming and West Virginia. ENSERVCO became a public company in July 2010 as a result of a merger transaction involving Aspen Exploration Corporation. Additional information about the Company is available at www.enservco.com.

Cautionary Note Regarding Forward-Looking Statements
This news release contains information that is "forward-looking" in that it describes events and conditions ENSERVCO reasonably expects to occur in the future. Expectations for the future performance of ENSERVCO are dependent upon a number of factors, and there can be no assurance that ENSERVCO will achieve the results as contemplated herein. Certain statements contained in this release using the terms "may," "expects to," and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond ENSERVCO's ability to predict, or control and which may cause actual results to differ materially from the projections or estimates contained herein. Among these risks are those set forth in Form 10-K filed on March 30, 2012. It is important that each person reviewing this release understand the significant risks attendant to the operations of ENSERVCO. ENSERVCO disclaims any obligation to update any forward-looking statement made herein.

Contact Information

  • CONTACT:
    Geoff High
    Pfeiffer High Investor Relations, Inc.
    303-393-7044