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CALGARY, Alberta, April 25, 2014 (GLOBE NEWSWIRE) -- According to Rich Coleman, BC's Minister of Natural Gas Development and Responsible for Housing, there seems little to stop the surging LNG train in Northern BC from leaving the station and continuing to gain speed, pretty much forever:
"The scope and size and scale is staggering," said Coleman in the Prince George Citizen, "even if only some of the proposals come to fruition. It is not impossible," he said, "for all 11 of the front-running projects to pump significant investment into northern economies, even if they don't all build their entire blueprint. He said, "the gas industry currently contributes about $600 million per year to provincial coffers and that would multiply by about five times, should the thrust of the expected industry come to pass."
Now it just has to all get built. And while the constituents hash out the details, the infrastructure is beginning and will be built and built and built, whether drilling services, camps, pipelines or ports. Infrastructure waits for no one.
"The issue for exploration and production companies is identifying a top quality infrastructure supplier that is able to coordinate all services with one phone call," stated Desmond O'Kell, SVP and Director of conglomerate Enterprise Group (TSX:E), a diversified construction, utilities and oilfield services company. O'Kell continues: "Global companies such as Shell and Encana demand the kind of established and experienced operation that not only knows the space, but can deliver a cost-effective end to end solution rather than bolting infrastructure assets together using disparate sources."
When just about every company on the planet is scrambling to secure even modest financing, Enterprise recently closed a $27.6 million bought deal. While that is impressive enough, the backstory should be of even more interest to investors. Originally, the deal was floated at around $12 million. It was over subscribed by a factor of five, to $63 million. The company settled on a close of $27.6 million: Couple that with the fact that the Company reported FY 2013 revenues of $34.8 million, 88% higher than full year 2012, and the story becomes extremely compelling. That figure resulted in a doubling of eps over 2012 to $0.08 cents a share.