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ENSERVCO Corp. (ENSV) Purchases North Dakota Acreage, Prepares for New Operations Center

|Includes: Enservco Corp. (ENSV)

ENSERVCO Corp., a provider of well-site services to the domestic onshore oil and gas industry, today announced its purchase of several acres in Killdeer, ND, as well as its new construction contract on a new operations center in the Williston Basin’s Bakken Shale formation.

The company said it expects the facility to be in operations in September and that it expects to break ground on the site this week.

At its full working capacity, ENSERVCO will employ 30-35 employees, as well as a comparable number of service and construction vehicles. The facility will have a maintenance shop, equipment yard, multiple offices and living quarters for up to 16 employees.

“Many of our current customers have established large acreage positions and extensive drilling programs in the Bakken,” Mike Herman, chairman and CEO stated in the press release. “ENSERVCO is an approved service provider to these companies in other major fields, and they have encouraged us to expand our operations into North Dakota.”

The company noted that it expects its initial customer base in the Bakken to include EOG Resources and Hess Corp., which are two of the largest oil producers in the Basin, as well as Whiting Petroleum, Brigham Exploration and Chesapeake Energy.

Herman said the company’s success will benefit from the low-average annual temperatures in North Dakota, which result in frac-fluid heating requirements for eight to 10 months of the year. Additionally, many customers in the area have voiced their need for year-round well maintenance services.

“We believe our move into the Bakken could be as strategically significant as our successful expansion last year into the Marcellus Shale,” Herman said.

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