“BUILT ON SERVICE… DRIVEN BY PEOPLE” DECEMBER 2012.

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Presentation transcript:

“BUILT ON SERVICE… DRIVEN BY PEOPLE” DECEMBER 2012

INVESTOR HIGHLIGHTS Enseco is a premier supplier of directional drilling and production testing (frac flowback) services operating throughout a number of North American resource plays. Experienced Management Team Increasing Utilizations and Margins USA Growth Platform In-house Technology Proven Growth Delivery Diversified Client Mix ENSECO ENERGY SERVICES 2

CORPORATE INFORMATION M. Scott Ratushny, Chairman and CEO John A. Brussa, Director Stan Grad, Director Gregory T. Tisdale, Director SENIOR MANGEMENT/BOARD OF DIRECTORS 3 Kent Devlin, P.Eng., MBA, President – Mr. Devlin was appointed President of Enseco in July Previously he served as its Vice President of Operations since May He is a professional engineer with a Bachelor of Science in Mechanical Engineering from the University of Manitoba and an MBA from the University of Calgary and is also a member of the Society of Petroleum Engineers (SPE). Amongst many roles in both Canada and the U.S., Mr. Devlin was a key part of the management team that built the directional drilling business of Computalog/Precision Drilling into the market leader which was eventually sold to Weatherford. Blair Layton, CA, VP Finance & CFO - After receiving a Chartered Accountant designation, Mr. Layton entered the oil and gas service industry as Controller of Whipstock Systems Inc. The sale of this company led Mr. Layton to explore the fast paced Venture Capital world of Merchant banking during which he was involved in five start–up companies, three subsidiaries, and two reverse takeovers. Mr. Layton joined the Enseco Energy Services team in 2009 after contributing significantly to the successes of Focus Directional Services and Radius Directional Services as founder and CFO of both. Kim Jespersen, Vice President – Operations - Mr. Jespersen holds the overall responsibility of the Operational, Environmental, Health and Safety and Human Resource processes. He has been with the Company since inception and has more than 30 years of extensive experience in exploration, production, operational, and municipal emergency medical service management. Mr. Jespersen holds a professional designation with the Board of Canadian Registered Safety Professionals, and had a 25-year career with Petro-Canada starting in Dean Yuill, Vice President – Sales, Marketing & Business Development - Mr. Yuill joined Enseco in his current role in December 2009 and is responsible for Enseco’s sales, marketing, and business development company wide. Previously Mr. Yuill was the President and one of the founding partners of Focus Directional Services which was acquired by Enseco in December Mr. Yuill has over 15 years experience in the directional services industry and over 30 years experience in the oil and gas industry. SENIOR MANAGEMENTBOARD OF DIRECTORS

CORPORATE SNAPSHOT ENSECO ENERGY SERVICES Shares Outstanding22.4 million Share Price (Dec 17, 2012) $0.62 Market Cap (Dec 17, 2012) $13.9 million Long Term Debt (net of Working Capital)$20.6 million Insider Ownership/Fully Diluted25% / 28% Revenue Split Canada/USA (LTM) 57% / 43% Revenue Split DD/PT (LTM) 50% / 50% Headcount (Employees & Consultants)350 Tax Pools$69.5 million Corporate Snapshot as of September 30,

GEOGRAPHY ENSECO ENERGY SERVICES Revenue Split Canada/USA Revenue Split DD/PT 5 Commodity Split

OPERATIONAL STRATEGY MAXIMIZING MARGINS THREE PHASE APPROACH Improve Service Quality Reduce Costs Increase Sales 6

DIRECTIONAL DRILLING ENSECO ENERGY SERVICES OVERVIEW 45 MWD kit capacity Innovative proprietary technology upgrades In-House MWD Repair & Manufacturing Facility In-House Drilling Motor Service Facility Lower costs, higher utilizations and better service quality Preventative maintenance schedule

PRODUCTION TESTING ENSECO ENERGY SERVICES OVERVIEW 42 Active Well Testing/Frac Flowback packages - (23 Higher Pressure – 500 psi or greater) Full Compliment of Auxiliary Equipment - (60m3 storage tanks, 10k manifolds and flowlines, lineheaters, sand separators, ball catchers, flarestacks, office trailers) Training Facility Capital Investments to reduce rentals QA/QC Program

FINANCIAL RESULTS THREE AND SIX MONTHS ($ MILLIONS)3 MONTHS ENDING SEPT 30, MONTHS ENDING SEPT 30, MONTHS ENDING SEPT 30, MONTHS ENDING SEPT 30, 2011 REVENUE DIRECTIONAL DRILLING$ 10.5$ 11.8$ 15.9$ 16.5 PRODUCTION TESTING$ 8.7$10.5$ 17.2$ 16.4 TOTAL$ 19.2$ 22.3$ 33.1$ 32.9 ADJUSTED GROSS MARGINS DIRECTIONAL DRILLING$ %$ %$ %$ % PRODUCTION TESTING$ %$ %$ %$ % TOTAL$ %$ %$ %$ % EBITDAS 1 $ %$ %$ %$ % 9

CORPORATE GROWTH REVENUE / EBITDA REVENUE (000s)EBITDA (000s) 10

REVENUE, DEBT & JOB CAPACITY ENSECO ENERGY SERVICES HPPT – High Pressure Production Testing Vessels 500 psi or greater LPPT – Low Pressure Production Testing Vessels 285 psi or less Q1 (April – June) (000s)

CORPORATE STRATEGY OVERVIEW / OBJECTIVES  Turn-Around Success  Continual Growth & balance between PT/DD and CAN/USA as well as debt repayment  Undervalued Opportunity to invest  Focus capital investments on highest return areas (many 2 year or less paybacks)  Goal to Enseco(ize) all equipment and internalize service repair and maintenance 12

FORWARD LOOKING ADVISORY Certain information presented in these remarks and in this presentation that is not historical factual information may constitute forward-looking information or forward-looking statements (collectively "forward-looking statements") within the meaning of applicable securities legislation. Actual results could differ materially from such forward-looking statements, and therefore a reader should not place undue reliance on forward-looking statements. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "will", “expects”, “anticipates”, “intends”, “plans”, “believes”, or negative versions thereof and similar expressions. In addition, any statement that maybe made concerning future financial performance, ongoing business strategies or prospects, and possible future action on our part, is also a forward-looking statement. Forward-looking statements may relate to our future outlook and anticipated events or results and may include statements about Enseco Energy Services Corp. or its subsidiaries (“Enseco”). The forward-looking statements contained herein include, without limitation, statements regarding: Enseco's future strategy and business operations; expectations about future financial and operational results and performance; plans to continue to reduce debt, Enseco’s tax pools; and horizontal and directional drilling activity levels. The forward-looking statements contained herein are based upon certain material expectations and assumptions, including without limitation, assumptions regarding: capital expenditure levels; horizontal and directional drilling activity levels; demand for production testing services; the ability to obtain and retain qualified personnel; commodity pricing and royalty regimes; the impact of increasing competition; the general economic condition in North America and globally; and the ability to obtain equity and debt financing on satisfactory terms. Forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to vary materially from those anticipated or implied in such forward-looking information. These factors include, without limitation: a failure to obtain any required regulatory approvals; changes in applicable legislation or how applicable legislation is interpreted; fluctuations in the prevailing commodity prices and interest rates; inherent risks associated with the conduct of business in the energy services industry; Enseco's ability to access equipment and new technologies; changes in the availability of debt and equity financing; an increase in competition; and changes in industry demand for directional drilling and production testing services. Additional information about the risks and material factors that could cause actual results to differ materially from the forward-looking information, details regarding the material factors or assumptions that the forward-looking information is based upon, and more exhaustive information on the risks and uncertainties can be found in Enseco’s most recent financial statements and management discussion and analysis, which is available on All forward-looking statements contained herein is made as of the date this presentation is given and Enseco assumes no obligation to update or revise these statements, other than as required by applicable law. ENSECO ENERGY SERVICES 13

QUESTIONS/COMMENTS ENSECO ENERGY SERVICES 14