Enterprise Oil Limited
TSX VENTURE : EON

Enterprise Oil Limited

March 29, 2007 11:53 ET

Enterprise Oil Limited Announces Closing of $10 Million Private Placement

ST. ALBERT, ALBERTA--(CCNMatthews - March 29, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO US NEWSWIRE SERVICES.

Enterprise Oil Limited ("Enterprise" or the "Company"), (TSX VENTURE:EON) is pleased to announce it has closed the previously announced private placement of 13,334,000 units for gross proceeds of $10 million at a price of $0.75 per unit (the "Offering"). Under terms of the Offering each unit consists of one common share and one-half common share purchase warrant (a "Unit"). Each whole warrant entitles the holder to acquire one common share of the Company at a price of $1.00 at any time for a period of 15 months from the closing of the offering.

Paradigm Capital Inc. ("Paradigm") acted as agent for the Offering. Under terms of the Offering, Enterprise paid Paradigm a cash commission of 7% of the gross proceeds and issued broker warrants which are exercisable for a number of units equal to 7% of the total number of units issued. All securities issued pursuant to the Offering are subject to a four-month hold period under Canadian law, which will expire on July 30, 2007.

Company Update: The Company anticipates a successful closing of the directional boring contractor now that the funding has been completed. Management is enthusiastic about consolidating this highly accretive business unit into the Company's operations.

Pipeline Operations: Enterprise's business units have successfully completed its winter work programs. Utilization rates within the business units have been consistently high throughout the quarter ending March 31, 2007. Further, the Company's business units have secured considerable work programs over the summer and are responding to an increase in invitations to provide services due to the recent strength in commodity prices.

Enterprise Oil Limited is a construction services company. Its focus has been the pipeline construction industry primarily installing steel gathering systems up to 12" in diameter. The company's strategy is to expand its construction services to include directional boring and increase its customer base outside the energy services sector. The company will continue its strategy to acquire small to mid size construction services companies in central and northern Alberta, consolidating capital, management and human resources to support continued growth.

This press release is not an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements.

Forward Looking Statements

This press release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitation, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Enterprise Oil Limited
    Leonard D. Jaroszuk
    Pres/CEO
    (780) 418-4400 or Toll Free: 1-888-303-3361
    or
    Enterprise Oil Limited
    Desmond O'Kell
    Vice President - Corp Dev
    (780) 418-4400 or Toll Free: 1-888-303-3361
    Email: contact@EnterpriseOil.ca
    Website: www.EnterpriseOil.ca