Enterprise Oilfield Group, Inc.

Enterprise Oilfield Group, Inc.

May 15, 2009 16:01 ET

Enterprise Oilfield Group, Inc. Announces First Quarter Results

ST. ALBERT, ALBERTA--(Marketwire - May 15, 2009) - For the three months ended March 31, 2009, the consolidated revenue of Enterprise (TSX:E) amounted to $9.0 million, a decrease from $12.7 million for the same period last year. The decrease in revenue is attributed to less than anticipated projects in the industry resulting from tight capital markets, decreased capital expenditures in the industry and lower oil and natural gas prices. The Company had EBITDAS(1) of $488 thousand and a net loss of $55 thousand during the three month period ended March 31, 2009, compared to EBITDAS(1) of $3.3 million and net income of $1.9 million for the three month period ended March 31, 2008. The reduction of EBITDAS(1) is partially attributable to costs relating to the downsizing of the Company's Wainwright operation combined with start-up and integration costs of the Peace River facilities maintenance operation. We expect positive results from these changes through to the end of 2009.

The Company continues to update its equipment fleet, purchasing new equipment and selling older or underutilized equipment in order to maintain a more efficient fleet. The new equipment purchases for the quarter ending March 31, 2009 totaled $337 thousand, net of financing, while proceeds on disposal of equipment totaled $37 thousand for the same period.

In addition to updating our equipment fleet, we continued with aggressive repayment of our long term debt, repaying $897 thousand in the first quarter of 2009. The Company is currently re-negotiating its long term debt, credit facilities and associated covenants with its lender in an effort to have a more conventional debt repayment plan, which will result in increased cash flow and will enable the Company the flexibility to implement its strategic initiatives as well as preserve cash. Recent discussions with our lenders have indicated our required principal payments on long term debt will be reduced by approximately $160,000 per month, with an anticipated effective date in early June 2009.

(1) EBITDAS = Earnings Before Interest, Taxes, Depreciation, Amortization and Stock Based Compensation

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