Ensign Energy Services Inc. Announces Normal Course Issuer Bid

/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

 

CALGARY, May 28 /CNW/ - Ensign Energy Services Inc. ("Ensign" or the "Company") (TSX: ESI) announces today that the Toronto Stock Exchange ("TSX") has accepted Ensign's Notice of Intention to commence a Normal Course Issuer Bid (the "Bid") to purchase, from time to time, as it considers advisable, up to 7,661,411 common shares (which is equal to 5% of the outstanding common shares) on the open market through the facilities of the TSX or the following alternative markets, if eligible: CHI-X Canada, Alpha ATS, MATCH Now (Triact Canada), Omega ATS and Pure Trading. The number of common shares that can be purchased pursuant to the Bid is subject to a daily maximum of 94,492 common shares (which is equal to 25% of the average daily trading volume from November 1, 2009 through to April 30, 2010). The price that Ensign will pay for any common share under the Bid will be the prevailing market price on the TSX at the time of such purchase or, with respect to purchases made on the alternative markets, such price as is required under applicable securities legislation. Common shares acquired under the Bid will be subsequently cancelled. Ensign currently has 153,228,232 common shares outstanding.

The Bid will commence on June 1, 2010 and will terminate on May 31, 2011 or such earlier time as the Bid is completed or terminated at the option of Ensign. A copy of the Form 12 - Notice of Intention to make a Normal Course Issuer Bid filed by the Company with the TSX can be obtained from the Company upon request without charge.

The Company has commenced the normal course issuer bid because it believes that, from time to time, the market price of its common shares do not properly reflect the underlying, intrinsic value of Ensign, and that, at such times, the purchase of common shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders.

 

Ensign Energy Services Inc. is an international oilfield services contractor based in Calgary, Alberta. Ensign's common shares (symbol: ESI) are publicly traded through the facilities of the Toronto Stock Exchange.

 

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. All sales will be made through registered securities dealers in jurisdictions where the offering has been qualified for distribution. The securities offered are not, and will not be, registered under the securities laws of the United States of America, nor any state thereof and may not be sold in the United States of America absent registration in the United States or the availability of an exemption from such registration.

The Toronto Stock Exchange has not received and does not accept responsibility for the adequacy or accuracy of this news release.

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For further information: Ensign Energy Services Inc., 400 - 5th Avenue SW, Suite 1000, Calgary, Alberta, T2P 0L6, Attention: Mr. Glenn Dagenais, Chief Financial Officer, (403) 262-1361