Enterprise Oilfield Group, Inc.
Announces 2007 Year End Results
ST. ALBERT, ALBERTA--(Marketwire - March
28, 2008) - Enterprise Oilfield Group, Inc. (TSX:E)
The Company has changed its fiscal year end to December 31 from September 30
commencing with the fifteen month period ended December 31, 2007.
The Company realized revenue of $10.5 million for the three-month period ending
December 31, 2007 and $47.3 million for the 15 months ended December 31, 2007
versus $4.7 million and $37.0 million respectively for the comparative periods
in 2006. The Company had EBITDAS of $5.8 million and net earnings of $0.9
million during the 15-month period ended December 31, 2007 compared to EBITDAS
of $4.7 million and net earnings of $2.0 million for the 15-month period ended
December 31, 2006. Enterprise had positive EBITDAS of $1.4 million and a loss
of $0.4 million during the 3-month period ended December 31, 2007 compared to
negative EBITDAS of $0.1 million and a loss of $0.6 million for the 3-month
period ended December 31, 2006. Earnings were negatively impacted by higher
amortization costs associated with the growth in assets, professional fees
associated with completing and evaluating prospective acquisitions and the
Company's graduation to the TSX, as well as higher costs to operate an
expanding branch office network.
During the last 3 months of 2007, the Company, as with many of its oilfield
services sector peers and competitors, experienced lower than normal
utilization rates. This was due to continued depressed pricing for natural gas,
the uncertainty created by the Alberta Royalty decision, and the resultant
decrease in drilling activity. The acquisition of TC Backhoe & Directional
Drilling and subsequent expansion to infrastructure services with the
establishment of the Utility and Directional Drilling division has proven very
timely and will continue to allow Enterprise to weather the softness in the
energy industry. During this time the Utility and Directional Drilling business
unit has generated almost three times the gross margin generated by the Energy
and Construction Services business unit. The Utility and Directional Drilling
business unit derives approximately 80% of its revenues from outside the oil
and gas industry. However, management expects to extract tangible synergy from
Utility and Directional Drilling services in its conventional Energy and
Construction Services operations. EBITDAS increased by $1.5 million during the
last three months of fiscal 2007 relative to the same quarter last year, and
for the 15-month period increased 25%. This is reflective of the higher
operating margins provided by the Company's Utility and Directional Drilling
business unit. This is very positive in the face of uncertain oil patch
operating conditions, as the Company continues to assign additional resources
to its Utility and Directional Drilling segment.
The Company's asset base grew substantially during the past year, increasing
63% to more than $42.6 million. Enterprise has invested more than $12 million over the
past 9 months through a combination of equity and debt financings. These
investments have provided the Company with significant opportunities to
continue its growth mandate balanced by a diversity of revenue streams..
Jason R. D. Krueger has joined Enterprise Oilfield's board of directors. Mr..
Krueger holds a Bachelor of Commerce degree from the University of Calgary, the
Chartered Financial Analyst (CFA) designation and has more than 15 years of
experience in the energy sector. He also serves on the board of directors for
another public company and a charitable organization.
Enterprise's President and CEO, Leonard Jaroszuk, said: "It is our
pleasure to welcome Mr. Krueger to our board of directors. We expect that his
experience and insight will prove a valuable addition to our Company as we
continue to expand".
Michael S. Aberant has resigned as a member of Enterprise's board of directors
effective immediately. The Company thanks Mr. Aberant for his contributions to
Enterprise's growth.
Enterprise Oilfield Group, Inc. is an energy services company operating in the
pipeline construction industry. The Company's focus is small to medium diameter
pipeline construction primarily on steel gathering systems up to 12" in
diameter. The Company's strategy is to acquire small to mid-size pipeline
construction and complementary service companies in central and northern
Alberta, consolidating capital, management and human resources to support
continued growth.
1 EBITDAS = Earnings Before Income Tax, 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 Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or the accuracy of this release.
Jason Krueger, CFA
Redwood
Capital Corporation
Telephone: (403)
374-1234
Email: jason@redwood-capital.com
Web: www.redwood-capital.com
