Enseco Energy Services Corp. Expands Directional Drilling Division with Purchase

Enseco Energy Services Corp. (“Enseco” or the “Company”)(TSX VENTURE:ENS)¬†announced Nov. 13¬†that it has signed a definitive agreement to acquire all of the outstanding common shares of a private directional services company with operations in United States and Canada.

The private company will be acquired for consideration consisting of $5 million cash, 45 million common shares of Enseco and an earnout of up to $5 million. Payment of the earnout will be time based and performance related. Enseco expects to close the acquisition within the next two weeks.

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The private directional services company operates 18 directional drilling kits and related equipment throughout Canada and the United States and has been owned and operated by its existing management team since it was set up in 2004. This management team has grown the company into one of the premier private directional drilling companies, providing directional drilling services to some of the most active oil and gas companies in the Western Canadian Sedimentary Basin.

Enseco’s CEO Mr. Lane Roberts stated, “We are very excited that the original ownership and management team will continue with Enseco and play a key role in managing Enseco’s Directional Drilling division going forward. The combination of Enseco’s current operating divisions and the newly expanded directional drilling division will achieve significant scale and mass resulting in operational synergies and economies of scale for Enseco. The combined Directional Drilling business will operate 24 Directional Drilling kits and related equipment going forward.”

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Corporate Strategy

The Company, while continuing to optimise its existing business lines, will be aggressively expanding its key businesses both organically and through strategic acquisitions domestically and internationally. Mr. Roberts stated, “Today, Enseco, with it’s very capable board of directors and experienced combined senior management, is now well positioned to take advantage of a strengthening business cycle to maximise our shareholder value. There are excellent opportunities in USA, Canada and outside North America that will allow Enseco to grow significantly in the future.” Of particular focus will be increasing the Company’s presence in both the growing market for horizontal well technology and services, and the high technology formation logging services, outside of Canada.

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Enseco is a growing supplier of energy related services operating throughout Western Canada and the United States, with operational centres in Red Deer, Whitecourt, Edmonton, Beaverlodge, Grande Prairie, Fort St. John, Midale (Saskatchewan), Minot (North Dakota) and Gillette (Wyoming) as well as a corporate and sales office located in Calgary. Enseco is led by an experienced management team currently offering directional drilling services, well swabbing, production testing and open hole logging, with a focus on continued value creation through accretive acquisitions and organic growth.