| | Published : May 07th, 2007 | Completes Third Acquisition |
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Enterprise Oil Limited Completes Third Acquisition |
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ST. ALBERT, ALBERTA--(May 7, 2007) - Further to the news
release dated February 5, 2007, Enterprise Oil Limited (TSX VENTURE:EON)
is pleased to announce the closing of the acquisition of T.C. Backhoe
& Directional Inc. ("T.C."). This marks Enterprise's third successful
corporate acquisition and provides an excellent vertical platform for
business diversification. The acquisition is effective April 1,
2007.
The purchase price for all of the shares of T.C. was
$12,000,000 and $1,924,000 for additional equipment and inventory. The
total purchase was funded by cash, 1,500,000 common shares of Enterprise
Oil Limited at $0.80 per share and a vendor take back loan of $1,000,000
repayable over two years. Two of the three vendors have signed five year
employment and non-compete agreements ensuring their full commitment for
continued growth under Enterprise's business plan. The third vendor has
signed a two year consulting and a five year non-compete
agreements.
T.C.'s audited financial statements for the 2006 fiscal
year end resulted in revenue of $11,934,000 and EBITDA(1) of $5,995,000.
T.C. has been operating for over 30 years and generates the majority of
its revenue from utility companies with approximately 20% from the energy
services sector. Directional drilling and installation of underground
power, telecommunications and natural gas lines are the core business of
the company. The development of industrial, commercial and residential
properties require full underground installation of services. As a result
of the rapid growth Western Canada is experiencing, the outlook for this
sector is exceptional. T.C.'s customers include some of Canada's largest
providers of telecommunications, cable television, electricity, and
natural gas services. Enterprise anticipates T.C. to show further
improvement in the current fiscal year. This acquisition is accretive to
Enterprise.
Enterprise's strategy is to continue to grow T.C. in
its core market while expanding its services to the energy services
sector. Pipeline construction projects routinely require directional
drilling services when approaching roads, creeks, rivers and other environmentally sensitive areas. Enterprise believes that directional
drilling will play a much larger roll in the future of pipeline
construction because of environmental awareness. Management views this
acquisition as a key step in the company's strategic business
plan.
Further to the release dated September 18, 2006 announcing a
letter of intent to purchase a pipeline construction company operating in
the west central Alberta region, after further review Enterprise has
decided not to proceed with this acquisition.
Enterprise has
granted, subject to regulatory approval, incentive stock options for the
purchase of a total of 1,330,000 common shares of its capital to
directors, employees and consultants of the Corporation. The options are
exercisable at a price of $0.82 per share.
Enterprise Oil Limited
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) EBITDA = earnings before interest, taxes,
depreciation, amortization.
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.
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Jason Krueger, CFA Redwood Capital
Corporation
T: (403) 374-1234
E: jason@redwood-capital.com
www. redwood-capital.com
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Enterprise Oilfield Group, Inc.
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CODE : E.TO |
ISIN : CA29373A1057 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Enterprise Oilfield is based in Canada. Enterprise Oilfield is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 61.2 millions as of today (US$ 44.7 millions, € 41.8 millions). Its stock quote reached its highest recent level on April 01, 2011 at CA$ 3.89, and its lowest recent point on October 07, 2011 at CA$ 0.02. Enterprise Oilfield has 55 650 000 shares outstanding. |
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