Enterprise Oilfield Group, Inc.

Enterprise Oilfield Group, Inc.

November 02, 2011 10:39 ET

Enterprise Oilfield Group, Inc. Announces New Banking Arrangements

ST. ALBERT, ALBERTA--(Marketwire - Nov. 2, 2011) - Enterprise Oilfield Group, Inc. (TSX:E) The corporation is pleased to announce that it has secured additional operating line capacity from one of Canada's leading chartered banks. Recently, activity levels have increased and the additional capacity will assist the company with its current growth plan and return to profitability in both its oilfield and utility divisions.

The Company is pleased to report that increases in margins have been realized over the last two quarters specifically in the oilfield services sector, which is a sharp contrast to the previous two years where margins were at historic lows. Management views fiscal year 2011 as a repair year in the oilfield services sector and the outlook for 2012/13 appears excellent.

The utility division, T.C. Backhoe & Directional Drilling, is operating essentially at full capacity. Activity levels, margins and the future outlook for the utility services also appear strong.

Enterprise Oilfield Group is also pleased to report that is has received a commitment to refinance its high interest asset loan obtained in the fourth quarter of 2010. The loan is at interest rates lower than conventional bank rates and will also provide additional working capital. The Company will provide further details on this asset loan at the time of closing.

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 Information

Certain statements contained in this release constitute forward-looking information. These statements relate to future events or the Company's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on current beliefs or assumptions as to the outcome and timing of future events. Actual future results may differ materially. In particular, statements with respect to anticipated activity levels and profitability of the Company's utility and infrastructure division and anticipated increases in revenue and margins attributed to services provided by the Company to the energy sector contain forward looking information. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the next year. The forward-looking statements and information may not be appropriate for other purposes. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

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)