Enterprise Oil Limited

Enterprise Oil Limited

January 09, 2007 09:30 ET

Enterprise Oil Limited Corporate Update

ST. ALBERT, ALBERTA--(CCNMatthews - Jan. 9, 2007) - Enterprise Oil Limited (TSX VENTURE:EON) is pleased to announce financial results for the year ended September 30, 2006. Completed Audited Financial Statements and Management Discussion & Analysis have been filed on SEDAR.

The company achieved record sales revenue of $32,282,333 while producing a net profit after taxes of $2,650,981 or $0.14 per share basic. EBITDAS(1) for the period ended September 30, 2006 was $4,811,005 or $0.25 per share basic while producing cash flow from operations of $3,759,586. Leonard Jaroszuk, President & CEO states; "Profitability was excellent for our first complete year in business in light of two costly points; firstly the company incurred significant expenses due to the tremendous growth and integration and secondly Trevor King Oilfield business unit suffered an unusually late spring break up and subsequent wet conditions that kept their crews out of the field for over 60 days."

The company's assets grew substantially to $24,551,775 compared to $3,744,704 the year prior. Since the year ended September 30, 2006 Enterprise has purchased approximately $1,500,000 in new equipment to accommodate for the 2007 work schedule secured by both A.G. Grant and the TKO business units. Currently, the company's business units are working at full capacity in very active regions in the foothills west of Fox Creek, Red Earth, Wabasca and southeast to Wainwright and Stettler.

Enterprise is experiencing continued growth and to enhance service to our clients and improve logistics the company will be adding new construction and field offices in Fox Creek, Red Earth, Hinton, and the Grande Prairie area.

Over the past 16 months Enterprise has developed a very unique and effective database of over 1,400 workers experienced in the oil patch. Manpower is an essential key to growth in our sector and quick access to an experienced, safety trained work force has allowed the company effectively ramp up to peak employee levels as required.

Since September 30, 2006, Enterprise has restructured its subsidiaries and increased its management and administration staff to accommodate for the current pace of activity and for future growth. Areas that the company will be focusing on for the coming year will be to exploit the inherent synergies and efficiencies between the business units, specifically relating to the utilization of manpower and equipment as well as maintaining and protecting the company's EBITDA(2) margin over 20%.

Further to the company's normal course issuer bid announced in October 2006; the company has purchased a total of 164,800 shares for cancellation at the time of this update.

(1) EBITDAS - earnings before interest, taxes, depreciation, amortization, stock based compensation.

(2) EBITDA - earnings before interest, taxes, depreciation, amortization.

Forward Looking Statements

This Company 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 limitations, 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.

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