Enterprise Oilfield Group, Inc.

Enterprise Oilfield Group, Inc.

August 09, 2012 09:00 ET

Enterprise Group, Inc. Announces Letter of Intent to Purchase Utility Services Company

ST. ALBERT, ALBERTA--(Marketwire - Aug. 9, 2012) - Enterprise Group, Inc. ("Enterprise")(TSX:E) is pleased to announce the signing of a letter of intent to purchase a mature and profitable utility services & maintenance company (the "private company") with operations based in the Edmonton, Alberta area.

The private company provides unique services to the utility sector which are complimentary to Enterprise's utility subsidiary T.C. Backhoe & Directional Drilling. The private company prides itself on its experienced manpower and formidable equipment fleet. Enterprise's strategy is to continue to grow the private company in its core competencies while expanding services to a larger customer base and increasing its fleet.

The purchase price will be funded by cash, 1,000,000 common shares of Enterprise Group, Inc. at a price of $0.25 and the assumption of some equipment financing. Completion of this acquisition will be subject to a number of conditions, including but not limited to Toronto Stock Exchange approval and satisfactory due diligence by Enterprise. Enterprise expects to close the transaction on or before August 31, 2012.

Operating for almost 15 years the core business of the company is maintenance, servicing and integrity testing. As a result of the rapid growth Western Canada is experiencing, specifically in Alberta and Saskatchewan, development of all types of infrastructure require a full range of maintenance services and upkeep programs. The outlook for this sector is exceptional. The private company's customers include some of Canada's largest providers of electricity, infrastructure owned by all levels of government and property management firms.

Enterprise Group, Inc. is a construction services company operating in the energy, utility and transportation infrastructure industry. The Company's focus is primarily underground construction and maintenance and above ground plants and facilities and specialized equipment rental. The Company's strategy is to acquire complementary service companies in Western Canada, consolidating capital, management and human resources to support continued growth.

Forward Looking Statements

Certain statements contained in this release constitute forward-looking information. These statements relate to future events or the Company's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on current beliefs or assumptions as to the outcome and timing of future events. Actual future results may differ materially. In particular, statements with respect to anticipated activity levels and profitability of the Company's utility and infrastructure division and anticipated increases in revenue and margins attributed to services provided by the Company to the energy sector contain forward looking information. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the next year. The forward-looking statements and information may not be appropriate for other purposes. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

Contact Information

  • Enterprise Group, Inc.
    Leonard D. Jaroszuk
    President & CEO
    780-418-4400 or Toll Free: 888-303-3361
    780-418-1941 (FAX)

    Enterprise Group, Inc.
    Desmond O'Kell
    Vice President, Corp. Development
    780-418-4400 or Toll Free: 888-303-3361
    780-418-1941 (FAX)