ST. ALBERT, ALBERTA--(Marketwire - Feb. 23, 2012) - Enterprise Oilfield Group, Inc. (News - Market indicators) is pleased to announce its unaudited financial results for the three and twelve months ended December 31, 2011, and its continued growth in profitability.

Summary of Financial Results

The fourth quarter of 2011 improved upon the results of the third quarter and continued the Company's significant turnaround in the second half of the year. For the three months ended December 31, 2011, the Company recorded consolidated revenue of $5.9 million compared to $4.0 million for the three months ended December 31, 2010, an increase of $1.9 million or 47.5%. For the year ended December 31, 2011, unaudited consolidated revenue was $17.5 million compared to $15.6 million for the prior year, an increase of $1.9 million or 12.2%. The Company made tremendous gains in the second half of 2011, overcoming a late spring thaw, forest fires, mandatory evacuations and flooding in the Slave Lake area, followed by unseasonably wet conditions across the province during the month of July. Despite these conditions, both the energy services division and the underground utilities and directional drilling division contributed to the positive growth of the Company. In addition to these two markets, the Company successfully launched its new rental division in the third quarter of 2011. The rental division continued its rapid growth in the fourth quarter, securing contracts with several blue chip clients.

Along with the increased revenue, the cost saving measures the Company enacted over the past two years also contributed to the improvement. Consolidated gross margins grew to 51.3%, from 26.7% for the three months ended December 31, 2011, an increase of 134.6% over the same period last year. For the twelve months ended December 31, 2011, consolidated gross margins grew to 39.6% from 12.9%, an increase of 177.9% over the prior year. Consequently, even though the interest on long term debt grew by more than $600,000 in 2011 compared to 2010 due to servicing costs on a high interest loan, the Company was able to record its first yearend net income since 2007.

As a result of the increase in gross margins, the Company had EBITDAS of $1.5 million and a net income of $1.0 million, compared to negative EBITDAS of $1.2 million and a net loss of $3.6 million for the three months ended December 31, 2010, an improvement of $2.7 million, or 225.0%, on EBITDAS and an increase in net income of $4.6 million, or 127.7%. EBITDAS for the year ended December 31, 2011, was $2.8 million with a net income of $228 thousand compared to negative EBITDAS of $739 thousand and a net loss of $5.6 million for the year ended December 31, 2010, improvements of $3.5 million, or 478.8%, on EBITDAS and $5.8 million, or 103.6%, on net income.

The return to profitability enables the Company to begin using its tax asset of approximately $3.2 million against its earnings and the earnings of any future acquisitions. This makes the Company's next $10 million in earnings from operations effectively tax free.

Along with increasing revenue and net income, the Company improved its balance sheet and repaid a significant portion of its debt facilities. In June, Enterprise secured conventional financing in the form of a $1.8 million term debt facility which was used to pay down the Company's high interest term debt and in October, the Company secured $1.5 million in new financing that was used to pay out the remaining portion of this high interest debt. As a result of these new financings, the Company will save approximately $805 thousand in interest costs over the next two years. For the twelve months ended December 31, 2011, Enterprise repaid over $4.9 million of loans and borrowings.

The financial results in the second half of 2011 have the Company poised for continued growth in 2012. To date, activity in the first quarter continues to be robust and 2012 is setting up to be a profitable year. Management expects substantial organic growth from its operations due to ongoing demand for the Company's services and the expansion of its new rental division. Additionally, the Company has identified several potential acquisition targets that, when completed, will also contribute to the overall growth of the Company.

The Company's annual yearend audit is currently under way however it has not yet been completed. The financial figures presented in this release are reported in Canadian dollars, have been prepared in accordance with International Financial Reporting Standards and are subject to audit verification and adjustments. The Company expects to release its audited consolidated yearend financial statements and MD&A no later than March 28, 2012.

1 EBITDAS = Earnings Before Income Tax, Depreciation, Amortization and Stock Based Compensation

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. 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.