Enterprise Oilfield Group, Inc.

Enterprise Oilfield Group, Inc.

May 12, 2008 07:00 ET

Enterprise Oilfield Group, Inc. Announces First Quarter Results

ST. ALBERT, ALBERTA--(Marketwire - May 12, 2008) - Enterprise Oilfield Group, Inc. ("Enterprise") (TSX:E) is pleased to announce that management's efforts to reduce costs and service projects with greater returns has resulted in operating margins and net income increasing significantly as a percentage of revenue. The Company realized a net a profit of $1.85 million (14.7%) or $0.04 per share (basic) on revenue of $12.7 million as compared to a net profit of $2.1 million (11.2%) on revenue of $18.8 million for the same period in 2007. EBITDAS(1) was $3.3 million (26%) for the period ending March 31, 2008 as compared to $3.7 million (19%) for the same period in 2007.

Enterprise has recently opened a construction office in Peace River, Alberta. This location increases the Company's service area in the highly active North West region of the province where many of our current clients have producing assets. The Company is also exploring locations in Fort St. John to expand operations into North Eastern British Columbia.

The Company plans to increase its exposure to the infrastructure sector with organic and acquisition growth. Management believes that balanced and diversified positions in both the infrastructure and energy services sectors are the best path to generating shareholder value. Economic growth in Western Canada and particularly in Alberta continues at a robust pace, providing numerous expansion opportunities within the Utility and Directional Drilling Services segment.

Enterprise has identified an acquisition target of interest in the infrastructure sector and is currently performing due diligence. The Company will provide a further update when negotiations become material.

Enterprise Oilfield Group is also pleased to announce the nomination of Mr. James P. (Jim) Stout as director at the upcoming Annual General Meeting of the Corporation on June 5, 2008. Mr. Stout has been the managing partner of Stout & Company LLP Chartered Accountants since 1994. Mr. Stout has been a chartered accountant since 1976 and has spent his entire professional career in public practice. Mr. Stout has extensive experience in mergers and acquisitions and during his time at Coopers & Lybrand ran the corporate finance group. Mr. Stout has served on the board of directors of numerous TSX and TSX Venture reporting issuers.

(1) EBITDAS = Earnings Before Income Tax, Depreciation, Amortization and Stock Based Compensation

Enterprise Oilfield Group, Inc. is an energy services company operating in pipeline construction and the utilities installation industry. The Company's focus is pipeline construction primarily on steel gathering systems up to 12" in diameter and infrastructure construction and maintenance. The Company's strategy is to acquire complementary service companies in Central and Northern Alberta, 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 1-888-303-3361
    (780) 418-1941 (FAX)
    Enterprise Oilfield Group, Inc.
    Desmond O'Kell
    Vice President, Corp. Development
    (780) 418-4400 or Toll Free: 1-888-303-3361
    (780) 418-1941 (FAX)
    Email: contact@EnterpriseOil.ca
    Website: www.EnterpriseOil.ca