Calgary’s Applied Terravision Systems has formed a partnership with Enron North America, of Dallas, Tex., to provide outsourcing, accounting and administrative functions to Canadian and U.S. producers.
ATS and Enron will offer trained personnel, equipment and facilities to perform administration and accounting duties, such as joint venture, revenue and production accounting, transaction processing, expenditure authorizations, tax payments, royalty payments and regulatory filing.
As part of the partnership deal, ATS will, subject to the approval of the Canadian Venture Exchange, issue to Enron three million warrants in ATS stock exercisable in two groups.
Two million warrants are exercisable at a price of $0.85 Cdn for a period of 18 months after the issue date. The remaining one million warrants are exercisable at a price of $1.10 Cdn for a period of 24 months after the issue date.
The result of outsourcing back-office responsibilities to ATS and Enron will include higher productivity, increased flexibility and lower costs for producers, say the companies.
“Combining Enron’s strengths with ATS’s expertise will allow upstream customers in Canada and the United States to focus on their expertise, increasing production and reserves,” said Bob Tretiak, president and CEO of ATS.
“All financial information will be held securely in one integrated system ensuring the producer has secure, real-time access to their data anytime and anywhere.”
ATS provides proprietary enterprise e-Solutions, focusing on the Application Service Provider (ASP) and Business Function Outsourcing (BFO) delivery models. Its customer base includes more than 600 companies worldwide. ATS was formed in Calgary in 1986 and is publicly traded on the Canadian Venture Exchange.
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