Enterprise Group, Inc.

Enterprise Group, Inc.

October 02, 2014 08:30 ET

Enterprise Group Takes Delivery of Direct Pipe® System and Announces the System's First Major Project

ST. ALBERT, ALBERTA--(Marketwired - Oct. 2, 2014) - Enterprise Group, Inc. ("Enterprise," or the "Company") (TSX:E) is pleased to announce that Calgary Tunnelling ("CT"), a subsidiary of the Company, has taken delivery of the Direct Pipe® System ("Direct Pipe"), one of the most technologically advanced and environmentally friendly tunnelling systems in the world. Direct Pipe, manufactured by Herrenknecht of Germany, is a sophisticated hybrid that incorporates the best features of both micro tunnelling and horizontal directional drilling ("HDD"). Enterprise's addition of Direct Pipe places the Company at the forefront of trenchless technology in North America, and will allow the Company to pursue a new level of potential projects. This addition also provides Enterprise with a distinct competitive advantage, as Enterprise is the only Canadian company to own a new fully OEM Direct Pipe system.

The Direct Pipe system is unique in both its design and operation, substantially reducing or eliminating most of the issues associated with waterway pipeline crossings and installations under environmentally sensitive areas or in congested or populated areas. Projects in these sensitive environments tend to be met with considerable objection. The Direct Pipe technology reduces the risks that form the basis of this objection, and as a result has become highly regarded by both the engineering and environmental communities. Major pipeline owners and operators are keenly aware of the benefits created by the Direct Pipe system, in particular its economic advantages, swift installation, and significantly reduced environmental impact.

From a technical perspective, the Direct Pipe system is a single pass installation of prefabricated pipeline that can operate in any geology. Its technique eliminates pullback and reaming, uses 70% less bentonite than comparable methods, and significantly reduces the possibility of frac outs, particularly under waterway crossings. Unlike HDD, Direct Pipe facilitates a borehole that is completely supported through the entire installation process. A sophisticated earth pressure balanced system results in no downhole pressure, and Direct Pipe uses twin vertical and horizontal steering systems to achieve incredible accuracies on distances up to and over 1500 meters. It requires access from only one side, and is therefore the perfect system for water outfalls.

Enterprise's other unique technologies will allow the Direct Pipe system to operate within extreme winter conditions. The system employs a fully contained slurry circuit and separation plant, creating high volumes of circulating fluids that could potentially pose challenges when operated at freezing temperatures. However, when coupled with the flameless heating technology and scaffolding and hoarding expertise offered by Enterprise's other subsidiaries, the Company is fully capable of operating the Direct Pipe system in arctic conditions. Enterprise believes that its ability to offer year-round applications will create significant opportunities for new projects, further distinguishing the Company from its competitors.

First Direct Pipe Application

Enterprise would also like to announce that CT has been awarded a significant waterway crossing project from a major Alberta based corporation. The Direct Pipe system will be employed to install a 42-inch pipe casing under the Bow River in the city of Calgary, Alberta. The value of this project, which the Company expects to complete within the fourth quarter of 2014, is approximately $2.5 million.

About Enterprise Group, Inc.

Enterprise Group, Inc. is a consolidator of construction services companies operating in the energy, utility and transportation infrastructure industries. The Company's focus is primarily construction services 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. Enterprise acquired of Artic Therm International Ltd. in September 2012, Calgary Tunnelling & Horizontal Augering Ltd. in June 2013, and Hart Oilfield Rentals in January 2014.

Forward Looking Information

Certain statements contained in this news 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 the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. 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.
    Candice Williams or Nathan Sellyn
    Assembly Stakeholder Relations

    Enterprise Group, Inc.
    Leonard D. Jaroszuk
    President & CEO

    Enterprise Group, Inc.
    Desmond O'Kell
    Senior Vice President