COLORADO SPRINGS, CO--(Marketwire - July 27, 2010) - Dillco Fluid Service, Inc., a provider of oilfield services to the domestic onshore oil and gas industry, today announced it has completed its previously announced Plan of Merger and Reorganization with Denver-based Aspen Exploration Corporation (
Aspen has acquired all of the outstanding shares of privately held Dillco through the issuance of 14,519,244 shares of Aspen common stock to Dillco's shareholders. There are now 21,778,866 shares of Aspen common stock issued and outstanding.
Aspen, which existed as a shell company following the June 2009 divestiture of its oil and gas assets, has become the 100% owner of the energy service businesses of Dillco Fluid Service, Inc. and Heat Waves Hot Oil Service LLC. Collectively, Dillco and Heat Waves provide a variety of well-site services to an extensive roster of large and small customers in the domestic onshore oil and gas industry. Services include frac heating, hot oiling, acidizing, water hauling and disposal, and well-site construction.
For the fiscal year ended December 31, 2008, Dillco and its affiliated businesses generated revenue of $30.6 million and net income of $3.4 million. In fiscal 2009, revenue was $15.4 million and the businesses recorded a net loss of $5.9 million. The year-over-year decline in revenue and net earnings was largely due to a steep drop in oil prices and the resulting downturn in domestic onshore oil and gas exploration and production activity. For its first fiscal quarter ended March 31, 2010, the Dillco businesses recorded revenue of $5.9 million, up from $5.7 million in the comparable 2009 quarter. Dillco returned to profitability during the quarter, generating net income of $109,000 versus a net loss of $83,000 in the comparable 2009 quarter.
"Establishing ENSERVCO as a publicly traded company represents the achievement of a key corporate objective," said Mike Herman, who previously served as chairman and CEO of Dillco and is now president, CEO and director of ENSERVCO. "In recent years, we believe that ENSERVCO has grown into one of the domestic energy-service industry's leading providers of hot oiling, acidizing and frac heating services. We have established an aggressive strategy for maintaining our geographic and operational expansion, and believe our public-company status will provide us with access to new financing options, and will elevate our profile within the investment community as we pursue our growth objectives."
The ENSERVCO businesses own and operate a fleet of more than 200 specialized trucks, trailers, frac tanks and related well-site equipment. Primary service areas include Colorado, Utah, Wyoming, Kansas, Texas, Oklahoma and New Mexico. The company also has a growing presence in the Northeastern United States, where customers are operating in the Marcellus Shale. In addition, ENSERVCO is pursuing opportunities in North Dakota, as oil and gas activity has been increasing in the surrounding Bakken Formation.
Further information regarding the merger will be made available in a Form 8K, which the company expects to file in the near future with the Securities and Exchange Commission. In addition, information about ENSERVCO, its services and customers also is available on the company's website, located at www.enservco-corporation.com.
Cautionary Note Regarding Forward-Looking Statements
This news release contains information that is "forward-looking" in that it describes events and conditions, which Dillco Fluid Service, Inc. and Aspen Exploration Corporation (together "ENSERVCO") reasonably expect to occur in the future. Expectations for the future performance of ENSERVCO are dependent upon a number of factors, and there can be no assurance that ENSERVCO will achieve the results as contemplated herein. Certain statements contained in this release using the terms "may," "expects to," and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond ENSERVCO's ability to predict, or control and which may cause actual results to differ materially from the projections or estimates contained herein. Among these risks are those to be set forth in a Form 8K expected to be filed in the near future. It is important that each person reviewing this release understand the significant risks attendant to the operations of ENSERVCO. ENSERVCO disclaims any obligation to update any forward-looking statement made herein.
Contact Information:
CONTACT:
Geoff High
Principal
Pfeiffer High Investor Relations, Inc.
303-393-7044