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| | April 21, 2010
Enterprise Provides Corporate Update
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| | St. Albert, Alberta, Canada. Enterprise Oilfield Group, Inc ("Enterprise" or "the Company") (TSX symbol -- "E") is pleased to update shareholders on several items.
Industry activity has improved considerably. The Company is experiencing bid flow at levels not seen since 2007. As communicated in the Company's news release dated March 4, 2010 the Company was successful in negotiating a multi-year agreement to provide construction and maintenance services to one of Canada's premier electricity providers. The value will be approximately $25 million over the duration of the agreement. The Company was recently successful in being awarded approximately $1.4 million in new infrastructure construction projects. Enterprise's oilfield division has completed or been recently awarded over $3 million in new pipeline and facility construction.
Sustained funding for infrastructure from all levels of government is resulting in numerous opportunities for the Company in its core construction competencies. Relating to the oilfield sector, sustained higher commodity prices specifically for oil has stimulated Canada's producers to increase spending on high grade producing assets. Project and bid flow has increased significantly in the recent period and the outlook for this division appears to be much better for the remainder of 2010 and increasing further in 2011. Increased activity, coupled with the fact that the competitive landscape has been dramatically reduced over the last two years would indicate that as contractor utilization rates increase, margins may soon follow.
As described in the Company's recently filed Management Discussion & Analysis for the period ending December 31, 2009 the Company experienced the most challenging year in recent memory for the energy services sector. Having said that, Enterprise was able to exit the year in a much stronger position with a greatly improved balance sheet; highlighted by a $4.3 million reduction of long term debt. Management will continue with its aggressive pay down of the Company's long term debt and intends to become virtually free of any long term bank debt by the end of this fiscal year.
In 2009, as the Company was experiencing lower activity levels, management was successful in reducing its surplus overheads. Sales were down approximately 30% from the previous year and management was able reduce its G&A by approximately the same ratio. Management believes that corporate operations are in the right proportion to return to profitability in 2010.
About the Company: 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. |
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| | You can view the Previous News Releases item: Mon Mar 29, 2010, Enterprise Announces 2009 Year End Results
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