Enterprise Oilfield Group, Inc.

Enterprise Oilfield Group, Inc.

December 09, 2010 09:00 ET

Enterprise Oilfield Group, Inc. Provides Corporate Update

ST. ALBERT, ALBERTA--(Marketwire - Dec. 9, 2010) - Enterprise Oilfield Group, Inc, (TSX:E) is pleased to announce that it has entered into a new banking arrangement. The new debt facility allowed the Company to pay out its previous lender and provides the Company more flexibility for future growth. The new facility is structured as a demand loan secured only by specific company assets. This facility provides Enterprise with more access to working capital and allows the Company to continue to explore opportunities for maximizing shareholder value.

In March 2010, Enterprise announced its underground utility and directional drilling division finalized negotiations with one of Canada's premier power suppliers on a multiyear contract. The contract is now well underway, with revenues increasing, as the Company continues to ramp up production to meet the customer's growing demands. In addition, Enterprise's largest clients have recently released large maintenance programs for 2010/2011 which has resulted in a significant backlog of work for this division. In 2010 the Company was able to significantly reduce its G&A and management believes that corporate operations are in the right proportion to return to profitability in 2011.

Global financial and economic turmoil continues to add to the uncertainty for energy prices, the Company believes the bottom has been reached and the downward trend in the energy sector may have ended. Crude oil has been trading in the $75 to $85 per barrel range for several months; capital expenditure budgets for conventional oil based assets have increased by as much as 50% over 2009 levels; large billion dollar oil sands projects are coming back on line; several large oil companies are tendering large pipeline construction projects in Northern Alberta for construction in 2011; and to date the overall volume of projects released for tender is greater than anticipated.

Additionally, increased access to capital for many of the oil and gas companies has resulted in a 66% increase in the number of wells of drilled in the WCSB in the third quarter of 2010 compared to 2009. The Canadian Association of Oilwell Contractors is forecasting increased drilling activity through 2010 and 2011 with drilling rig utilization increasing to 43% by the end of 2010 and increasing to 45% in 2011. Goldman Sachs re-iterated its forecast for $110/barrel oil in 2012, up from $100 /barrel in 2011. Management believes all of these indicators will lead to higher revenue and margins in 2011.

Enterprise is also pleased to announce the addition of Brian Stasynec, CA, Chief Financial Officer to its executive team. Mr. Stasynec is a Chartered Accountant who brings over 35 years of experience in corporate finance and controllership. Prior to joining the Company, he served in senior financial management positions in residential and commercial real estate development, and most recently in oilfield construction. As CFO, Mr. Stasynec will be responsible for treasury duties, strategic financial planning, assessing potential corporate acquisitions, economic forecasting and modeling, and the implementing the International Financial Reporting Standards conversion plan.

Beginning January 1, 2011, the Company is required to prepare interim and annual financial statements that are compliant with International Financial Reporting Standards. The Company has implemented a plan to convert its consolidated financial statements to IFRS with a transition date of January 1, 2010.

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.

Contact Information

  • Enterprise Oilfield Group, Inc
    Leonard D. Jaroszuk
    President & CEO
    780-418-4400 or TF: 888-303-3361
    Enterprise Oilfield Group, Inc
    Desmond O'Kell
    Vice President, Corp. Development
    780-418-4400 or TF: 888-303-3361