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| | January 14, 2008
Enterprise Provides Corporate Update
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| | St. Albert, AB -- The Corporation wishes to update the Company's shareholders and the investment community on its corporate activities.
The Company's entry to the infrastructure sector through the acquisition of T.C. Backhoe & Directional Drilling (TC), to date, has been highly successful. This acquisition has provided Enterprise tremendous profitability during a challenging period in the energy services sector. Oilfield activity continues at a pace less than experienced in the 2005 and 2006 years mainly due to lower than economic natural gas prices and the October 2007 royalty decision. In light of this the Company's Northern Alberta operations have experienced significant project flow on oil weighted production. This is understandable as the price for oil has maintained peak levels for a sustained period of time.
The Company forecasts that 2008 will see a continuing of challenging times in the energy services sector and in an effort to carry on with our growth strategy the Company is reviewing highly accretive acquisitions in the infrastructure sector. The economic outlook for Alberta remains very attractive. Our TC business unit maintains a significant backlog of both new installation and maintenance work. Management believes that balanced and diversified positions in both the infrastructure and energy services sectors are the best path to generating shareholder value. The Company has hired additional management experienced in infrastructure projects to spearhead more civic related construction and maintenance as there are inherent synergies related to the heavy equipment and crews of both sectors.
In an effort to remain fiscally prudent and reduce operating costs the Company paid down its long term debt by over $1 million in the quarter ending December 31, 2007. Proceeds for the debt pay down came from the culling of older, less efficient equipment.
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. |
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| | You can view the Next News Releases item: Fri Mar 28, 2008, Enterprise Announces 2007 Year End Results
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