Enterprise Oilfield Group, Inc. Provides Corporate Update by 24hgold

Keywords : Debt | Growth | Natural Gas | Oil |

Jan 14, 2008 16:29 ET
Enterprise Oilfield Group, Inc. Provides Corporate Update
ST. ALBERT, ALBERTA--(Marketwire - Jan. 14, 2008) - Enterprise Oilfield Group, Inc. (The "Corporation") (TSX:E) 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.

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

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