Enerflex Announces US$228 Million Order from Oman Oil Company Exploration and Production LLC and the Award of Additional Distribution Territories for GE's Gas Engine Products

CALGARY, ALBERTA--(Marketwire - Nov. 2, 2011) - Enerflex Ltd. (TSX:EFX) ("Enerflex" or the "Company"), a leading supplier of products and services to the global energy industry, is pleased to announce a major facility contract in Oman.

Enerflex Middle East LLC, incorporated in the Sultanate of Oman, has been awarded a contract from Oman Oil Company Exploration and Production LLC ("OOCEP") for the engineering, procurement, construction and commissioning of a gas processing plant to be located in Abu Tubul Block 60 in the Sultanate of Oman. The contract value is approximately US $228 million.

The gas processing plant will produce 90 million standard cubic feet per day of natural gas and 6,000 barrels per day of condensate. The contract includes the supply by Enerflex of all associated equipment including; gas processing and compression equipment, gas/condensate export facilities, produced water treatment, power plant, central control room, electrical substation and associated utilities. Engineering and design is currently underway and the facility is anticipated to be operational in the third quarter of 2013.

This project strengthens Enerflex's position in the region following the successful commissioning of a gas compression facility currently maintained and operated by Enerflex in Oman, as well as another facility recently commissioned and under long-term maintenance and operation in Bahrain.

"This significant order solidifies our standing as a competitive supplier of energy infrastructure for major producers in a region with growing natural gas production, and this bodes well for our future growth prospects," said J. Blair Goertzen, Enerflex's President and Chief Executive Officer.

General Electric's Gas Engine Division has also awarded the Company additional distribution territory and product lines to Gas Drive Global LP ("Gas Drive"). Gas Drive, a limited partnership wholly-owned by Enerflex, will be an authorized distributor for GE's Gas Engines', Waukesha product line of gas-fuelled reciprocating engines in Canada and 20 U.S. states.

GE's Gas Engine's Division has recently realigned its channel-to-market strategy and distribution network and as a result, the Company has benefitted in the following ways. First, in addition to our current distribution territory for Waukesha parts in Canada, Alaska, Wyoming, Utah and Colorado, GE's Gas Engines has increased our territory to include an additional 16 U.S. states. Second, the distribution agreement for GE's Gas Engines in the existing and expanded territory will also now include the right for Gas Drive to sell new engines. Third, Gas Drive has been notified of GE's Gas Engines interest in extending distribution rights for the Jenbacher natural gas engine and parts product line for all of Canada. This overall network realignment strengthens both Gas Drive's and GE's Gas Engine's ability to meet their customers' needs by providing an unprecedented level of service and support.

Enerflex has created Gas Drive (www.gasdriveglobal.com) as a wholly-owned limited partnership to provide focused expertise in the sales and complete lifecycle support of gas-fuelled engines. Gas Drive has 40 years of experience and an extensive infrastructure for the distribution, maintenance, repair and all related support of gas-fuelled engines.

Enerflex's Service division in Canada, the northern United States and Alaska will become part of Gas Drive, which will commence operations immediately supporting its existing and new product lines with factory-trained mechanics, spare parts and exchange program engines and components throughout its territory.

"We are delighted to be working with GE's Gas Engine's Division to take on this expanded new role as an authorized distributor," said Mr. Goertzen. "It is a very exciting opportunity to grow our business through the distribution of these high-quality gas engines. As distributor for GE's Gas Engine's Division in its service territory, Gas Drive is committed to marketing its products aggressively and providing unmatched lifecycle support to its customers."

As a result of GE's realignment of distribution service areas' and GE's existing distribution channel and agreements in Europe, Enerflex will no longer be a distributor of Waukesha products in that region. As a result of this realignment and the fact that the European division has not performed as expected during 2011, Enerflex is in the process of considering strategic alternatives for its Service business in Europe. The alternatives can include a sale, partial sale, exit or combination thereof the Service and Combined Heat and Power ("CHP") operations in Europe. This business unit has been reported as a discontinued operation as of September 30, 2011 and Enerflex has recorded a total impairment of $52.0 million, consisting of non-cash impairments of $47.6 million for Goodwill, Intangible assets, Deferred Tax assets and fair value adjustments; and anticipated transaction costs totalling $4.4 million.

About Enerflex

Enerflex Ltd. is the single source supplier of products and services to the global oil and gas production industry. Enerflex provides natural gas compression and oil and gas processing equipment for sale or lease, refrigeration systems and power generation equipment and a comprehensive package of field maintenance and contracting capabilities. Through the Company's ability to provide these products and services in an integrated manner, or as stand-alone offerings, Enerflex offers its customers a unique value proposition.

Headquartered in Calgary, Canada, Enerflex has approximately 2,900 employees. Enerflex, its subsidiaries, interests in affiliates and joint-ventures operate in Canada, the United States, Argentina, Colombia, Australia, the United Kingdom, the United Arab Emirates, Egypt, Oman, Bahrain and Indonesia. Enerflex's shares trade on the Toronto Stock Exchange under the symbol "EFX". For more information about Enerflex, go to www.enerflex.com.