Enterprise Oilfield Group Inc (E)

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Enterprise Oilfield Group, Inc. (TSX: E) is On the Right Track

Enterprise Oilfield Group Inc., a pipeline construction and horizontal directional drilling company, has focused their efforts on central and northern Alberta’s oilfield and utility infrastructure markets. The company’s pipeline construction service focuses on small diameter pipeline construction, primarily on producing oil and gas fields. The utility infrastructure & directional drilling business reduces the company’s exposure to the oil and gas industry, and provides installation of underground power, telecommunications and natural gas lines to the utility infrastructure sector.

Enterprise’s strategy is to acquire profitable businesses in Alberta, while consolidating its capital, management and human resources to support continued growth. This acquisition strategy excludes companies that do not produce significant revenues or contribute to profitability. According to management, Enterprise will focus on growing a business organically after acquisition.

Enterprise has successfully achieved profitability in both the 15-month period ended December 2007 (net margin of 2.0%), and the first 9 months of 2008 (net margin of 4.7%), even while the sector experienced challenges in the WCSB and incurred losses. The company has clearly demonstrated its fiscal and operational prudence. It will be exciting to continue watching this company as it follows a methodical growth strategy.