Enterprise Oilfield Group, Inc.

Enterprise Oilfield Group, Inc.

November 30, 2011 10:11 ET

Enterprise Oilfield Group, Inc. Announces Closing of Zero Percent (0%) Financing Facility

ST. ALBERT, ALBERTA--(Marketwire - Nov. 30, 2011) - Enterprise Oilfield Group, Inc. (TSX:E) is pleased to announce that is has closed on a new financing facility at zero percent (0%) interest. The new facility is a $1.5 million, four year term loan, with an interest rate of zero percent (0%) for the first two years of the loan, followed by two years of principal plus interest at 5.585% per annum. This loan follows the $1.8 million of conventional financing the Company obtained in June of this year.

The combination of these two debt facilities allowed Enterprise to fully pay out the high interest loan it obtained in the fourth quarter of 2010. As a result, the Company will save approximately $805,000 in interest cost on long term debt over the next two years. Since the beginning of the year, Enterprise has repaid over $4.9 million in loans and borrowings.

Along with improving its balance sheet, Enterprise remains optimistic about its continued profitability. Positive indicators across the divisions have been identified with the Company's rental division experiencing increased activity as construction equipment is now in high demand. Management is exploring a number of opportunities to expand and fuel the overall growth of the Company. As such, Enterprise has identified three potential acquisition/merger targets and is currently engaged in various stages of negotiations and due diligence.

As Enterprise grows and returns to profitability, it will take advantage of its income tax asset and begin utilizing its $10 million of non capital losses to offset any income taxes payable effectively making the Company's profits tax free until the non capital losses are fully utilized.

Enterprise Oilfield 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. 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

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

Contact Information

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

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