Enseco Energy Services Corp. Announces the Closing of Its Previously Announced Private Placement of 14% Convertible Secured Subordinated Debentures

CALGARY, ALBERTA, Aug 31, 2009 (Marketwire via COMTEX) -- ENS | Quote | Chart | News | PowerRating -- Enseco Energy Services Corp. ("Enseco" or the "Company") (TSX VENTURE:ENS) announced today that it has closed the first tranche of its previously announced non-brokered private placement of 14% convertible secured subordinated debentures (the "Debentures") of Enseco. Enseco issued Debentures having an aggregate principal amount of $1,615,000. Directors and officers of Enseco subscribed for $950,000 principal amount of the Debentures. Enseco anticipates closing a second tranche of Debentures having an aggregate principal amount of up to $385,000 on or about September 15, 2009.

The Debentures are repayable eighteen months from the date of issue, bear interest at 14% per annum payable in cash on maturity, conversion or upon an event of default and will be convertible into common shares ("Common Shares") of Enseco by the holder at any time prior to maturity at a rate of $0.10 per Common Share, subject to adjustment in certain circumstances. The Debentures are a secured obligation of the Company subordinated in right of payment to the prior payment in full of all Senior Indebtedness of the Company. Senior Indebtedness will include all secured debt whether now existing or hereafter incurred, assumed or arising, but will exclude normal trade payables.

The Debentures and any Common Shares issued upon conversion of the Debentures are subject to a hold period of four months and one day from the closing date.

The proceeds of the offering will be used by the Company for working capital, for general corporate purposes and the repayment of a cash advance from a director to the Company.

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

FORWARD-LOOKING STATEMENTS

Certain information and statements contained in this press release constitute forward-looking information. Specifically this press release contains forward-looking statements relating to the use of proceeds of the Private Placement and the closing date and principal amount of the second tranche of Debentures. The forward-looking statements contained in this press release speak only as of the date of this press release and are expressly qualified by this cautionary statement. These forward-looking statements are based on certain key assumptions regarding, among other things, the use of proceeds, the closing dateand principal amount of the second tranche of Debentures. Furthermore, these forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. Such factors include, but are not limited to general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations and changes in how they are interpreted and enforced, increased competition, volatility of commodity prices, and the inability to complete the private placement or to obtain required regulatory approval. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Enseco's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, or if any of them do so, what benefits that Enseco will derive therefrom. Enseco disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: Enseco Energy Services Corp.

Enseco Energy Services Corp.
David A. Hawkins
President and CEO
(403) 806-0088
Enseco Energy Services Corp.
Aly Khan Musani
Senior Vice President and CFO
(403) 806-0088

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index