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Enterprise Group Takes Delivery of Direct Pipe System and Announces the System's First Major Project

Enterprise Group Takes Delivery of Direct Pipe System and Announces the System's First Major Project

Enterprise Group, Inc. has announced that Calgary Tunnelling has taken delivery of the Direct Pipe System ("Direct Pipe"), one of the most technologically advanced and environmentally friendly tunnelling systems in the world. Direct Pipe, manufactured by Herrenknecht of Germany, is a sophisticated hybrid that incorporates the best features of both micro tunnelling and horizontal directional drilling ("HDD"). Enterprise's addition of Direct Pipe places the Company at the forefront of trenchless technology in North America, and will allow the Company to pursue a new level of potential projects. This addition also provides Enterprise with a distinct competitive advantage, as Enterprise is the only Canadian company to own a new fully OEM Direct Pipe system.

The Direct Pipe system is unique in both its design and operation, substantially reducing or eliminating most of the issues associated with waterway pipeline crossings and installations under environmentally sensitive areas or in congested or populated areas. Projects in these sensitive environments tend to be met with considerable objection. The Direct Pipe technology reduces the risks that form the basis of this objection, and as a result has become highly regarded by both the engineering and environmental communities. Major pipeline owners and operators are keenly aware of the benefits created by the Direct Pipe system, in particular its economic advantages, swift installation, and significantly reduced environmental impact.

From a technical perspective, the Direct Pipe system is a single pass installation of prefabricated pipeline that can operate in any geology. Its technique eliminates pullback and reaming, uses 70% less bentonite than comparable methods, and significantly reduces the possibility of frac outs, particularly under waterway crossings. Unlike HDD, Direct Pipe facilitates a borehole that is completely supported through the entire installation process. A sophisticated earth pressure balanced system results in no downhole pressure, and Direct Pipe uses twin vertical and horizontal steering systems to achieve incredible accuracies on distances up to and over 1500 meters. It requires access from only one side, and is therefore the perfect system for water outfalls.

Enterprise's other unique technologies will allow the Direct Pipe system to operate within extreme winter conditions. The system employs a fully contained slurry circuit and separation plant, creating high volumes of circulating fluids that could potentially pose challenges when operated at freezing temperatures. However, when coupled with the flameless heating technology and scaffolding and hoarding expertise offered by Enterprise's other subsidiaries, the Company is fully capable of operating the Direct Pipe system in arctic conditions. Enterprise believes that its ability to offer year-round applications will create significant opportunities for new projects, further distinguishing the Company from its competitors.

First Direct Pipe Application

Enterprise would also like to announce that CT has been awarded a significant waterway crossing project from a major Alberta based corporation. The Direct Pipe system will be employed to install a 42-inch pipe casing under the Bow River in the city of Calgary, Alberta. The value of this project, which the Company expects to complete within the fourth quarter of 2014, is approximately $2.5 million.

Company info

#2, 64 Riel Drive
St. Albert, AB
CA, T8N 4A4


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