Enseco Energy Announces Private Placement Equity Financing
Enseco Energy Services Corp. has entered into a financing agreement with FirstEnergy Capital Corp. to issue common shares on a best efforts, private placement basis to be priced in the range of $0.45 to $0.55 per common share for aggregate gross proceeds of approximately $5,000,000. The corporation intends to use the net proceeds to fund the corporation's capital expenditure program, repay bank indebtedness and for general corporate purposes.
The financing is scheduled to close on or about April 24, 2008 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. All sales will be made on a private placement basis pursuant to exemptions from the prospectus requirements of applicable securities laws. The shares will be subject to a four-month hold period.
Enseco is an emerging supplier of energy related services operating throughout the Western Canadian Sedimentary Basin with operational centers in Red Deer, Whitecourt, Edmonton, Beaverlodge, Grande Prairie, and Fort St. John; North Dakota with an operation center in Minot; as well as corporate and sales offices located in Calgary. Enseco is led by an experienced management team currently offering well swabbing, production testing, cased hole logging, perforating and propellant stimulation services and directional drilling services with a focus on continued value creation through accretive acquisitions and organic growth.