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Trican Reports Fourth Quarter Results for 2012

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CALGARY, ALBERTA -- (Marketwire) -- 02/26/13 -- Trican Well Service Ltd. (TSX: TCW)

---------------------------------------------- Three months ended Twelve months ended($ millions, except per share Dec. 31, Dec. 31, Sept. 30, Dec. 31, Dec. 31, amounts; unaudited) 2012 2011 2012 2012 2011----------------------------------------------------------------------------Revenue $485.9 $694.2 $593.2 $2,213 $2,309.6Operating income (i) 35.1 197.3 71.4 240.1 614.5Net income (loss) (7.7) 114.9 22.6 53.3 338.6Net income (loss) per share (basic) ($0.05) $0.78 $0.16 $0.37 $2.32 (diluted) ($0.05) $0.78 $0.16 $0.37 $2.30Adjusted net income (loss) (i) (5.4) 117.9 24.7 63.0 351.0Adjusted net income (loss) per share(i) (basic) ($0.04) $0.80 $0.17 $0.43 $2.41 (diluted) ($0.04) $0.80 $0.17 $0.43 $2.39Funds provided by (used in) operations(i) (14.0) 181.9 49.3 122.8 588.8----------------------------------------------------------------------------Notes:(i) Trican makes reference to operating income, adjusted net income (loss)and funds provided by (used in) operations. These are measures that are notrecognized under International Financial Reporting Standards (IFRS).Management believes that, in addition to net income (loss), operatingincome, adjusted net income (loss) and funds provided by (used in)operations are useful supplemental measures. Operating income providesinvestors with an indication of earnings before depreciation, foreignexchange, taxes and interest. Adjusted net income (loss) provides investorswith information on net income (loss) excluding one-time non-cash chargesand the non-cash effect of stock-based compensation expense. Funds providedby (used in) operations provide investors with an indication of cashavailable for capital commitments, debt repayments and other expenditures.Investors should be cautioned that operating income, adjusted net income(loss), and funds provided by (used in) operations should not be construedas an alternative to net income (loss) and cash flow from operationsdetermined in accordance with IFRS as an indicator of Trican's performance.Trican's method of calculating operating income, adjusted net income (loss)and funds provided by (used in) operations may differ from that of othercompanies and accordingly may not be comparable to measures used by othercompanies.



FOURTH QUARTER HIGHLIGHTS

Consolidated revenue for the fourth quarter of 2012 was $485.9 million, a decrease of 30% compared to the fourth quarter of 2011. Consolidated net loss was $7.7 million compared to net income of $114.9, and diluted loss per share was $0.05 compared to diluted income per share of $0.78 for the same period in 2011. Funds used in operations were $14.0 million compared to fund provided by operations of $181.9 million in the fourth quarter of 2011.

Our Canadian operations generated quarterly revenue of $244.2 million and operating income of $51.0 million during the fourth quarter of 2012. Canadian revenue decreased by 41% and operating income decreased by 69% compared to the fourth quarter of 2011. Sequentially, Canadian revenue decreased by 24% and operating income decreased by 49%. The decreases were indicative of lower year-over-year activity levels in Canada due to reduced customer spending as 2012 capital programs came to a close. Pricing decreased by 13% compared to the fourth quarter of 2011 and by 7% sequentially, which also had a negative impact on Canadian revenue and operating margins. We believe that fourth quarter pricing levels reflect a balanced Canadian pressure pumping market and expect the market to remain balanced throughout 2013. In addition, we expect activity levels to rebound in the first quarter of 2013 as we enter the 2013 winter drilling season in Canada.

Fourth quarter U.S. revenue was $173.6 million and the operating loss was $2.1 million. U.S. operating margins improved sequentially by 1,050 basis points as we began to see the benefits of reduced guar costs and cost cutting initiatives. Trican pricing remained relatively stable on a sequential basis for both contracted and spot market crews. Despite the improved margins and stable pricing, U.S. activity levels weakened during the fourth quarter of 2012. U.S. rig count decreased in our areas of operations by 13% compared to the fourth quarter of 2011 and by 5% compared to the third quarter of 2012. The drop in U.S. demand was largely due to reduced activity over the U.S. Thanksgiving and Christmas holiday periods.

Revenue from our international operations was $68.0 million in the fourth quarter of 2012, up 11% year-over-year but down 6% sequentially. Russia comprises the majority of our international results and Russian activity levels were up year over year as several customers increased their work scope to meet 2012 capital spending budgets. Russian fracturing activity was particularly strong due to an increase in work performed on horizontal wells. Approximately 12% of our 2012 fourth quarter Russian fracturing revenue was from work performed on horizontal wells, compared to approximately 3% in the fourth quarter of 2011. Russian activity levels were down sequentially due to cold temperatures typically experienced near the end of the fourth quarter.

Technology Update

Trican has taken a significant step into the global horizontal multi-stage completion market with the acquisition of i-TEC Well Solutions, which closed in January of 2013. i-TEC is a privately-owned company based in Norway that has developed a field-proven portfolio of completion systems and intervention tools. This acquisition complements Trican's existing completion systems and tools business, and is expected to provide positive growth opportunities, as well as enhance our other pressure pumping service lines.

Trican is pleased to announce a joint business agreement with Geotomo LLC to offer customers an integrated service that will combine hydraulic fracturing engineering with microseismic software capabilities. The joint business agreement will leverage Geotomo's advanced geophysical software capabilities and Trican's depth of experience in geological and pressure pumping services to offer customized solutions to our customers. This service will help our customers optimize fracture performance and improve the production of the well.

The acquisition of i-TEC and joint business agreement with Geotomo reflect Trican's continued commitment to provide innovative technological solutions to our customers.

Senior Management Changes

Effective January 31, 2013, Michael Kelly has resigned from Trican to pursue other opportunities. Michael joined Trican in 1997 as the CFO and remained in that position until March 2009. He then became the Senior Vice President of Business Development and in June 2012 transferred to Russia as Senior Vice President, Russia and the Middle East. In January 2012, Michael was appointed our Senior Vice President, EAME & CIS, where he managed our operations in Russia, Kazakhstan, Algeria and the Middle East. Michael had a large influence on the direction of Trican and was part of the corporate executive group that saw the company grow from a Canadian operation with a few hundred employees to one with close to 6,000 employees worldwide in nine operating countries. We wish Michael the best in his future endeavors and thank him for his many years of service to Trican.

We are pleased to announce that David Jones, Vice President of Business Development, will assume the duties of Michael Kelly and will become the new Vice President, EAME & CIS. David will continue to oversee our Business Development group until a successor has been named.

MANAGEMENT'S DISCUSSION AND ANALYSISCOMPARATIVE QUARTERLY INCOME STATEMENTS ($ thousands, unaudited)---------------------------------------------------------------------------- Quarter- Over-Three months ended % of % of Quarter % December 31, 2012 Revenue 2011 Revenue Change Change----------------------------------------------------------------------------Revenue 485,865 100% 694,214 100.0% (208,349) (30%)Expenses Materials and operating 422,999 87.1% 473,693 68.2% (50,694) (10.7%) General and administrative 27,743 5.7% 23,226 3.3% 4,517 19.5%----------------------------------------------------------------------------Operating income(i) 35,123 7.2% 197,295 28.4% (162,172) (82.2%) Finance costs 8,373 1.7% 6,557 0.9% 1,816 27.7% Depreciation and amortization 41,564 8.6% 36,443 5.2% 5,121 14.1% Foreign exchange gain (3,467) (0.7%) (3,975) -0.6% 508 (12.8%) Other income (560) (0.1%) (1,405) -0.2% 845 (60.1%)----------------------------------------------------------------------------Income (loss) before income taxes (10,787) (2.2%) 159,675 23.0% (170,462) (106.8%)Income tax expense (recovery) (2,957) (0.6%) 44,805 6.5% (47,762) (106.6%)----------------------------------------------------------------------------Net Income (loss) (7,830) (1.6%) 114,870 16.5% (122,700) (106.8%)--------------------------------------------------------------------------------------------------------------------------------------------------------(i) see first page of this report



CANADIAN OPERATIONS----------------------------------------------------------------------------($ thousands, except revenue per job, unaudited) Dec. 31, % of Dec. 31, % of Sept. 30, % ofThree months ended, 2012 Revenue 2011 Revenue 2012 Revenue----------------------------------------------------------------------------Revenue 244,237 417,021 321,948Expenses Materials and operating 187,313 76.7% 246,363 59.1% 215,022 66.8% General and administrative 5,897 2.4% 5,898 1.4% 7,095 2.2% --------- --------- --------- Total expenses 193,212 79.1% 252,261 60.5% 222,117 69.0%Operating income(i) 51,025 20.9% 164,760 39.5% 99,831 31.0%Number of jobs 5,572 7,108 6,368Revenue per job 43,545 58,296 50,140--------------------------------------------------------------------------------------------------------------------------------------------------------(i) see first page of this reportSales Mix----------------------------------------------------------------------------Three months ended, Dec. 31, Dec. 31, Sept. 30,(unaudited) 2012 2011 2012----------------------------------------------------------------------------% of Total RevenueFracturing 61% 68% 68%Cementing 21% 16% 17%Nitrogen 6% 8% 6%Coiled Tubing 5% 4% 4%Acidizing 3% 2% 3%Other 4% 2% 2%----------------------------------------------------------------------------Total 100% 100% 100%--------------------------------------------------------------------------------------------------------------------------------------------------------



Operations Review

Canadian pressure pumping activity was down during the fourth quarter of 2012 and led to year-over-year and sequential decreases in Canadian revenue and operating income. In the fourth quarter of 2012, the number of active drilling rigs in Canada decreased by 22% and the number of Canadian wells drilled was down 19% compared to the fourth quarter of 2011. Sequentially, Canadian rig count increased by 10% but the number of wells drilled was down by 4%. Despite the sequential increase in Canadian rig count, fracturing activity was down substantially near the end of the quarter during the holiday season, when Canadian rig count fell to approximately 200 rigs. In addition, many Trican customers reduced their fracturing activity levels during the fourth quarter as 2012 capital budgets came to a close.

Canadian pricing decreased by 7% compared to the third quarter of 2012 and by 13% compared to peak pricing levels seen in the fourth quarter of 2011. Additional pressure pumping supply combined with reduced activity levels led to the pricing decrease; however, peak pricing seen in the fourth quarter of 2011 occurred when the Canadian market was significantly undersupplied and we did not expect these pricing levels to be sustained. We believe that fourth quarter pricing levels reflect a balanced Canadian pressure pumping market.

Current Quarter versus Q4 2011

Fourth quarter revenue decreased by 41% or $173 million compared to the fourth quarter of 2011. Revenue per job decreased by 25% due to a 13% decrease in price combined with a lower proportion of fracturing revenue relative to total revenue. The job count decreased by 22% and was consistent with the 22% decrease in Canadian rig count. Available Canadian equipment increased by approximately 30% year-over-year but was more than offset by the decline in Canadian activity, in particular for the fracturing service line. Fracturing activity was down approximately 40% due to a slowdown over the holiday season and as customers completed 2012 capital budgets.

As a percentage of revenue, materials and operating expenses increased to 76.7% from 59.1% due to decreased pricing and reduced operational leverage on our fixed cost structure. General and administrative expenses were relatively flat on a year-over-year basis.

Current Quarter versus Q3 2012

Canadian revenue decreased by 24% sequentially in the fourth quarter of 2012. Revenue per job decreased by 13% due to a 7% pricing decline combined with less fracturing revenue as a percentage of total revenue. The job count also decreased by 13% relative to the third quarter of 2012. The completion of a large Horn River project and relatively strong activity levels by our Canadian customers led to exceptional activity levels for Trican in the third quarter of 2012. The strong activity levels in the third quarter combined with reduced fourth quarter activity levels over the holiday season contributed to the sequential decrease in Canadian job count.

Materials and operating expenses increased as a percentage of revenue to 76.7% compared to 66.8% in the third quarter of 2012 due largely to decreased pricing and reduced operational leverage on our fixed cost structure. General and administrative expenses decreased by $1.2 million due mainly to a decrease in profit sharing and bad debt expenses.

UNITED STATES OPERATIONS----------------------------------------------------------------------------($ thousands, except revenue per job, unaudited) Dec. 31, % of Dec. 31, % of Sept. 30, % ofThree months ended, 2012 Revenue 2011 Revenue 2012 Revenue----------------------------------------------------------------------------Revenue 173,589 215,672 198,881Expenses Materials and operating 171,140 98.6% 164,632 76.3% 216,283 108.7% General and administrative 4,553 2.6% 3,819 1.8% 5,768 2.9% --------- --------- ---------- Total expenses 175,693 101.2% 168,451 78.1% 222,051 111.7%Operating income (loss)(i) (2,104) (1.2%) 47,221 21.9% (23,170) (11.7%)Number of jobs 1,654 1,495 1,861Revenue per job 105,077 145,151 106,962--------------------------------------------------------------------------------------------------------------------------------------------------------(i) see first page of this report----------------------------------------------------------------------------Three months ended, Dec. 31, Dec. 31, Sept. 30,(unaudited) 2012 2011 2012----------------------------------------------------------------------------% of Total RevenueFracturing 90% 97% 91%Cementing 7% 2% 6%Coiled Tubing 3% 1% 3%----------------------------------------------------------------------------Total 100% 100% 100%--------------------------------------------------------------------------------------------------------------------------------------------------------



Operations Review

Overall U.S. activity levels weakened during the fourth quarter of 2012. U.S. rig count decreased in our areas of operation by 13% compared to the fourth quarter of 2011 and by 5% compared to the third quarter of 2012. The drop in U.S. demand was largely due to reduced activity over the U.S. Thanksgiving and Christmas holiday periods. As a result of the reduced activity levels, the U.S. pressure pumping market continued to be oversupplied during the fourth quarter and no significant improvements in overall market conditions were noted. Despite the oversupplied market, Trican pricing remained relatively stable on a sequential basis for both contracted and spot market crews.

We made good progress on cost cutting initiatives during the fourth quarter of 2012 with meaningful decreases in product, logistics, and discretionary costs, which contributed to an improvement in sequential operating margins. In addition, guar costs continued to decline as realized guar prices decreased by approximately 28% sequentially and led to an approximate 500 basis point improvement in operating margins.

Due to the weak U.S. operating environment, four U.S. fracturing crews remained idle during the fourth quarter including two new crews that have not been manned and two crews that were previously active. The four idle U.S. crews are expected to remain inactive until U.S. market conditions improve, or a strategic opportunity arises in North America or internationally.

Current Quarter versus Q4 2011

Year-over-year U.S. revenue decreased by 20% as an increase in the job count was more than offset by a decrease in revenue per job. Job count increased by 11% and benefitted from an increase in cementing and coiled tubing activity. Fourth quarter cementing job count increased by 166% and coiled tubing job count increased by 157% compared to the same period in 2011. These increases were offset partially by a 6% decline in fracturing jobs, which compares to the 13% decrease in U.S. rig count. Fourth quarter revenue per job decreased by 28% compared to the fourth quarter of 2011. A year-over-year pricing decline of 13%, a decrease in fracturing revenue as a percentage of total revenue, and a decrease in fracturing job size led to the revenue per job decrease. Fracturing job size has declined due to increased work performed in oil plays, such as the Permian, where job size is generally lower.

As a percentage of revenue, materials and operating expenses increased to 98.6% from 76.3% because of decreased pricing and reduced operational leverage on our fixed cost structure. Despite the recent reductions in guar prices, realized guar costs remained approximately 110% higher compared to the fourth quarter of 2011. The year-over-year increase in guar costs contributed to the lower margins. General and administrative costs increased by $0.7 million due largely to higher insurance and travel costs.

Current Quarter versus Q3 2012

Revenue for the fourth quarter decreased by 13% relative to the third quarter of 2012. The job count decreased by 11% due to reduced oilfield activity as rig count decreased sequentially by 5% in our areas of operations. Fracturing activity was down by approximately 18% as very few fracturing jobs were performed over the Thanksgiving and Christmas holiday period. In addition, fracturing activity in the fourth quarter was particularly slow for our Bakken crew as job count decreased by 50% sequentially. We are still building our presence in the Bakken and activity levels are expected to be erratic until we establish consistent customer relationships in the region. This decrease was partially offset by increased cement and coiled tubing jobs as we continued to grow these service lines.

Materials and operating expenses decreased to 98.6% from 108.7% as a percentage of sales. Decreased guar costs and progress made on cost cutting initiatives led to the improved margins. General and administrative costs decreased by $1.2 million due largely to lower employee costs.

INTERNATIONAL OPERATIONS----------------------------------------------------------------------------($ thousands, except revenue per job, unaudited) Dec. 31, % of Dec. 31, % of Sept. 30, % ofThree months ended, 2012 Revenue 2011 Revenue 2012 Revenue----------------------------------------------------------------------------Revenue 68,039 61,521 72,375Expenses Materials and operating 57,941 85.2% 56,290 91.5% 59,202 81.8% General and administrative 4,216 6.2% 3,964 6.4% 3,590 5.0% --------- --------- --------- Total expenses 62,157 91.4% 60,254 97.9% 62,792 86.8%Operating income(i) 5,882 8.6% 1,267 2.1% 9,583 13.2%Number of jobs 951 1,180 1,057Revenue per job 68,586 48,178 64,873--------------------------------------------------------------------------------------------------------------------------------------------------------(i) see first page of this report



Sales Mix----------------------------------------------------------------------------Three months ended, Dec. 31, Dec. 31, Sept. 30,( unaudited) 2012 2011 2012----------------------------------------------------------------------------% of Total RevenueFracturing 82% 74% 80%Coiled Tubing 9% 13% 10%Cementing 6% 8% 6%Nitrogen 1% 5% 2%Other 2% - 2%----------------------------------------------------------------------------Total 100% 100% 100%--------------------------------------------------------------------------------------------------------------------------------------------------------



Operations Review

Our international operations include the financial results for operations in Russia, Kazakhstan, Algeria, Australia, Saudi Arabia and Colombia.

Our Russian operations comprise the majority of our international results and revenue and activity levels in this region were up year-over-year as several customers increased their work scope to meet 2012 capital spending budgets. Fracturing activity was particularly strong as job count increased slightly and fracturing job size increased substantially year-over-year due to an increase in work performed on horizontal wells. The increase in fracturing activity was partially offset by reduced cementing and coiled tubing activity. Despite the improved fourth quarter results, some Russian customers did not meet spending targets for 2012, which contributed to 2012 results that were below expectations. Russian activity levels were down sequentially due to cold temperatures typically experienced near the end of the fourth quarter.

The emergence of horizontal completions and multi-stage fracturing continues to be a positive development in Russia. Approximately 12% of our 2012 fourth quarter Russian fracturing revenue was from work performed on horizontal wells, compared to approximately 3% in the fourth quarter of 2011. This is an important development for the pressure pumping industry in Russia, as the shift towards more unconventional drilling and completions is expected to increase the demand for horsepower in the region and place a larger emphasis on technology.

Relative to the Canadian dollar, the Russian ruble strengthened by 2% compared to the third quarter of 2012 and weakened by 3% compared to the fourth quarter of 2011. Changes in the ruble exchange rate impacted our Russian results as approximately 25% of our costs in Russia are denominated in Canadian dollars and other foreign currencies.

Fourth quarter operating results were strong in Kazakhstan for our two fracturing crews operating in the region. We continue to see improved results for our Algerian operations as year-over-year margins improved substantially. We are also continuing to grow and establish our cementing business in Australia and had solid revenue growth for our cementing service line during the fourth quarter of 2012. Despite the improvements in Algeria and Australia, financial results during the fourth quarter were below expectations in these regions.

Current Quarter versus Q4 2011

International revenue increased by 11% compared to the fourth quarter of 2011. Revenue per job increased by 42% as increased horizontal work in Russia led to increased fracturing and coiled tubing job sizes. Increased pricing and more fracturing revenue as a percentage of total revenue also contributed to the higher revenue per job. Job count decreased by 19% due largely to declines in Russian cementing and coiled tubing activity, offset slightly by an increase in fracturing jobs.

Fourth quarter materials and operating expenses as a percentage of revenue decreased to 85.2% from 91.5% compared to the fourth quarter of 2011. The decrease was due to improved operating leverage on our fixed cost structure and increased pricing. General and administrative costs increased by $0.3 million due largely to higher employee costs.

Current Quarter versus Q3 2012

Revenue for our international operations decreased by $4.3 million on a sequential basis. Job count decreased by 10% due to colder weather in Russia near the end of the fourth quarter that reduced industry activity levels. Revenue per job increased by 6% due largely to an increase in fracturing revenue as a percentage of total revenue and larger fracturing job sizes in Russia due to customer mix.

Materials and operating expenses increased to 85.2% from 81.8% due to reduced operating leverage on our fixed cost structure. General and administrative expenses increased by $0.6 million due primarily to higher employee costs.

CORPORATE----------------------------------------------------------------------------($ thousands, except revenue per job, unaudited) Dec. 31, % of Dec. 31, % of Sept. 30, % ofThree months ended, 2012 Revenue 2011 Revenue 2012 Revenue----------------------------------------------------------------------------Expenses Materials and operating 6,603 1.4% 6,408 0.9% 5,907 1.0% General and administrative 13,077 2.7% 9,545 1.4% 8,891 1.5% --------- --------- ---------- Total expenses 19,680 4.1% 15,953 2.3% 14,888 2.5%Operating loss(i) (19,680) (15,953) (14,888)--------------------------------------------------------------------------------------------------------------------------------------------------------(i) see first page of this report



Current Quarter versus Q4 2011

Corporate expenses increased $3.7 million from the same quarter last year due primarily to transaction costs associated with the acquisition of i-TEC, a large charitable donation and increased salaries and benefits expenses. These increases were partially offset by lower employee profit sharing costs.

Current Quarter versus Q3 2012

Corporate expenses increased $4.8 million compared to the third quarter of 2012 due largely to transaction costs associated with the acquisition of i-TEC, a large charitable donation and higher training and travel costs for corporate employees.

OTHER EXPENSES AND INCOME

Finance costs in the fourth quarter of 2012 increased by $1.8 million on a year-over-year basis due to increased debt balances. Depreciation and amortization increased by $5.1 million compared to the same period last year, largely due to capital additions relating to our capital expansion program in North America.

The foreign exchange gain of $3.5 million in the quarter versus a gain of $4.0 million in the same quarter last year was due to the net impact of fluctuations in the U.S. dollar and Russian ruble relative to the Canadian dollar. Other income was $0.6 million in the quarter versus $1.4 million for the same period in the prior year. Other income is largely comprised of interest income on a loan to an unrelated third party and interest income earned on cash balances.

INCOME TAXES

Trican recorded an income tax recovery of $3.0 million in the quarter compared to an income tax expense of $44.8 million for the fourth quarter of 2011. The change was largely due to a decrease in income before tax. The effective tax rate was 27.4% in the fourth quarter of 2012, which was comparable to an effective tax rate of 28.0% recognized in the fourth quarter of 2011.

COMPARATIVE ANNUAL INCOME STATEMENTS----------------------------------------------------------------------------($ thousands; unaudited) Year- Over-Year ended December % of % of Year % 31, 2012 Revenue 2011 Revenue Change Change----------------------------------------------------------------------------Revenue 2,213,400 100% 2,309,647 100.0% (96,247) (4.2%)Expenses Materials and operating 1,870,889 84.5% 1,598,470 69.2% 272,419 17.0% General and administrative 102,443 4.6% 96,653 4.2% 5,790 6.0%----------------------------------------------------------------------------Operating income(i) 240,068 10.8% 614,524 26.6% (374,456) (60.9%) Finance costs 30,497 1.4% 20,041 0.9% 10,456 52.2% Depreciation and amortization 152,837 6.9% 126,576 5.5% 26,261 20.7% Foreign exchange (gain)/loss 408 0.0% (4,275) (0.2%) 4,683 (109.5%) Other income (1,837) (0.1%) (5,985) (0.3%) 4,148 (69.3%)----------------------------------------------------------------------------Income before income taxes 58,163 2.6% 478,167 20.7% (420,004) (87.8%)Income tax expense 4,824 0.2% 139,531 6.0% (134,707) (96.5%)----------------------------------------------------------------------------Net income 53,339 2.4% 338,636 14.7% (285,297) (84.2%)--------------------------------------------------------------------------------------------------------------------------------------------------------(i) See first page of this reportCANADIAN OPERATIONS---------------------------------------------------------------------------- Year-Year ended December 31, Over-($ thousands, except revenue % of % of Year per job, unaudited) 2012 Revenue 2011 Revenue Change----------------------------------------------------------------------------Revenue 1,139,474 1,282,684 (11%)Expenses Materials and operating 804,429 70.6% 790,508 61.6% 2% General and administrative 26,352 2.3% 27,486 2.1% (4%) --------- --------- Total expenses 830,781 72.9% 817,994 63.8% 2%Operating income(i) 308,693 27.1% 464,690 36.2% (34%)Number of jobs 22,427 25,393 (12%)Revenue per job 50,486 49,964 1%--------------------------------------------------------------------------------------------------------------------------------------------------------(i) See first page of this report



2012 Canadian revenue decreased by 11% compared to 2011. Revenue per job increased by only 1% as 2012 annual pricing, job size, and sales mix were largely consistent with 2011. The job count decreased by 12% as increases in available equipment were more than offset by reductions in Canadian activity levels. On an annual basis, 2012 Canadian rig count was down 13% compared to 2011. As a percentage of revenue, materials and operating expenses increased to 70.6% compared to 61.6% due to reduced operating leverage on our fixed cost structure, pricing declines and higher employee costs. General and administrative expenses decreased by $1.1 million due to declines in employee profit sharing and share based expenses.

UNITED STATES OPERATIONS---------------------------------------------------------------------------- Year-Year ended December 31, Over-($ thousands, except revenue % of % of Year per job, unaudited) 2012 Revenue 2011 Revenue Change----------------------------------------------------------------------------Revenue 797,783 738,916 8%Expenses Materials and operating 803,677 100.7% 535,550 72.5% 50% General and administrative 19,808 2.5% 12,539 1.7% 58% --------- --------- Total expenses 823,485 103.2% 548,089 74.2% 50%Operating income (loss)(i) (25,702) (3.2%) 190,827 25.8% (113%)Number of jobs 7,110 5,065 40%Revenue per job 112,471 146,457 (23%)--------------------------------------------------------------------------------------------------------------------------------------------------------(i) See first page of this report



2012 U.S. revenue increased by 8% compared to 2011. Job count increased by 40% as increased equipment availability led to substantial increases for our fracturing, cementing and coiled tubing service lines. Revenue per job decreased by 23% due to a 14% decrease in pricing, a reduction in fracturing revenue relative to total revenue, and lower fracturing job sizes due to increased work performed on oil wells. As a percentage of revenue, 2012 materials and operating expenses increase to 100.7% compared to 72.5% in 2011. A reduction in pricing, increased guar costs, and increased logistics, infrastructure and employee expenses contributed to the reduced margins. General and administrative costs increased by $7.3 million due to higher travel, insurance, and employee costs.

INTERNATIONAL OPERATIONS---------------------------------------------------------------------------- Year-Year ended December 31, Over-($ thousands, except revenue % of % of Year per job, unaudited) 2012 Revenue 2011 Revenue Change----------------------------------------------------------------------------Revenue 276,143 288,047 (4%)Expenses Materials and operating 238,967 86.5% 250,424 86.9% (5%) General and administrative 14,486 5.2% 14,936 5.2% (3%) --------- --------- Total expenses 253,453 91.8% 265,360 92.1% (4%)Operating income(i) 22,690 8.2% 22,687 7.9% 0%Number of jobs 4,007 4,901 (18%)Revenue per job 65,027 55,902 16%--------------------------------------------------------------------------------------------------------------------------------------------------------(i) See first page of this report



Annual revenue for our International operations was down 4% compared to the same period in 2011. The job count decreased by 18% due largely to lower activity in Russia. Many of our Russian customers did not complete their 2012 work programs, which led to lower than expected activity levels in Russia. Revenue per job increased by 16% as increased horizontal work in Russia led to larger fracturing job sizes. In addition, increased fracturing revenue as a percentage of total revenue contributed to the higher revenue per job.

Materials and operating expenses as a percentage of revenue decreased slightly to 86.5% from 86.9% compared to the same period in 2011. Improved pricing was offset by cost inflation. General and administrative expenses decreased slightly by $0.5 million largely due to lower share based expenses.

CORPORATE---------------------------------------------------------------------------- Year-Year ended December 31, Over-($ thousands, except revenue % of % of Year per job, unaudited) 2012 Revenue 2011 Revenue Change----------------------------------------------------------------------------ExpensesMaterials and operating 23,814 1.1% 21,988 1.0% 8%General and administrative 41,799 1.9% 41,692 1.8% 0% --------- ---------Total expenses 65,613 3.0% 63,680 2.8% 3%Operating loss(i) (65,613) (63,680) 3%--------------------------------------------------------------------------------------------------------------------------------------------------------(i) See first page of this report



Corporate expenses increased $1.9 million compared to last year due primarily to an increase in salaries and benefits for corporate employees and transactions costs relating to the i-TEC acquisition. These increases were partially offset by a decrease in share based expenses and profit sharing costs.

OTHER EXPENSES AND INCOME

2012 finance costs increased by $10.5 million relative to 2011 due to increased debt levels. Depreciation and amortization increased by $26.3 million as a result of the North American focused capital asset additions.

Foreign exchange losses of $0.4 million have been recognized in 2012 compared to gains of $4.3 million in 2011. The 2012 loss is due to the net impact of fluctuations in the U.S. dollar and Russian ruble relative to the Canadian dollar. Other income decreased by $4.1 million from the same period in 2011 due largely to proceeds from an insurance claim recognized in 2011.

INCOME TAXES

The income tax expense for the year ended December 31, 2012 was $4.8 million compared to $139.5 million in 2011. The decrease in the tax provision is largely attributable to significantly lower earnings. The effective tax rate in 2012 was 8.3% compared to an effective tax rate of 29.1% in 2011. The decrease is due primarily to tax losses in the U.S., which are partially offsetting taxable income in Canada.

LIQUIDITY AND CAPITAL RESOURCES

Operating Activities

Funds used in operations was $14.0 million in the fourth quarter of 2012 compared to funds provided by operations of $181.9 million in the fourth quarter of 2011 largely as a result of decreased operating income.

Trican's ending 2012 working capital decreased to $547.4 million compared to $621.2 million at the end of 2011. The decrease is predominantly due to year-over-year decreased activity levels in North America, causing trade receivables, inventory, and prepaid expenses to decline, partially offset by decreased accounts payable.

Investing Activities

Capital expenditures in 2013 are expected to be approximately $130 to $150 million based on our current 2013 budget and remaining capital expenditures on previously approved budgets. Capital expenditures for the fourth quarter of 2012 totaled $58.7 million compared with $162.8 million for the same period in 2011. Total capital expenditures for 2012 were $444.6 million compared to $578.5 million in 2011. The expenditures were largely directed at North American expansion initiatives in 2012 and 2011. The year over year decreases are due to a reduction in our 2012 budget compared to the 2011 budget.

Financing Activities

As at February 26, 2013, Trican had 148,831,558 common shares and 7,030,786 employee stock options outstanding.

In the second quarter of 2012, Trican entered into an uncommitted shelf agreement that could allow for the issuance of up to U.S.$100 million in senior unsecured notes. During the fourth quarter of 2012, Trican issued $50 million in senior unsecured notes from this shelf agreement. The notes have a seven-year final maturity, five-year average term, and a coupon of 4.05%. The notes are unsecured and rank equally with Trican's bank facilities and other outstanding senior notes.

During the fourth quarter of 2012, Trican's syndicate of banks unanimously agreed to extend the Company's four-year revolving credit facility for an additional year. In addition, Trican received approval to add a new bank to its syndicate and increased its extendible revolving credit facility from $450 million to $500 million.

The Company received approval from the Toronto Stock Exchange to purchase its own common shares, for cancellation, in accordance with a Normal Course Issuer Bid ("NCIB") for the one year period of March 2, 2012, to March 2, 2013. During the three months ended December 31, 2012, no common shares were purchased under the NCIB. During the twelve months ended December 31, 2012, 755,400 common shares were purchased at a cost of $10.0 million, of which $2.7 million was charged to Share Capital and $7.3 million to retained earnings. Trican intends to renew the NCIB in the first quarter of 2013.

Trican Well Service Ltd. announced an increase to its semi-annual dividend from $0.05 to $0.15 per share in the first quarter of 2012, thereby increasing the annual dividend to $0.30 per share. The increase reflected our expectation that Trican can sustain strong earnings in the future and maximize shareholder value while remaining committed to investing in the growth of our existing operations and future growth opportunities. Total dividend payments during 2012 were $29.3 million and we expect 2013 dividend payments to be approximately $44.0 million.

OUTLOOK

Canadian Operations

Demand for pressure pumping services in Canada is expected to be stable in 2013 compared to 2012, with recent industry forecasts reflecting a 3% increase in the number of wells drilled compared to 2012. Oil and liquids-rich gas directed activity is expected to continue to dominate the Canadian oil and gas market given the continued weakness in natural gas prices. Horizontal drilling activity is also expected to remain strong, as it has become the leading drilling method in the Canadian market.

The amount of available equipment in Canada has increased substantially over the past year, as the industry continued to respond to an undersupplied pressure pumping market during 2012. Despite the steady Canadian pressure pumping activity anticipated in 2013, increased supply is expected to result in a year-over-year reduction in pricing. However, most of the price declines occurred in the second half of 2012 and we do not expect any significant additional pricing decreases in Canada during 2013. Despite the relatively flat demand and increased supply, we believe the Canadian market is currently balanced and will remain so throughout 2013. We do not expect a meaningful increase in Canadian horsepower supply in 2013 and believe that sustained demand levels will keep the market in balance. However, our Canadian operations are significantly dependant on the capital budgets of our customers and changes to commodity prices. We will continue to closely monitor the Canadian market and react appropriately should market conditions change.

We expect 2013 first quarter activity levels to increase relative to the fourth of 2012 as we enter the busy Canadian drilling season; however, we do not expect first quarter activity levels to be as strong as the first quarter of 2012. As a result, we expect first quarter operating margins will be higher sequentially due to increased activity but lower year-over-year due to the declines in pricing and activity levels.

U.S. Operations

U.S. pressure pumping demand will continue to be driven by commodity prices and the cash flows and capital budgets of our U.S. customers. Based on the current commodity price and capital spending environment in the U.S., we are not expecting a significant change in 2013 pressure pumping demand relative to demand levels seen in the second half of 2012.

The U.S. pressure pumping market is currently oversupplied and as a result, we are not anticipating a meaningful amount of new horsepower to enter the U.S. market in 2013. There is potential for modest declines in available U.S. horsepower to occur in 2013 if equipment is redeployed out of North America and into international markets, and if older U.S. equipment is permanently retired; however, we are not expecting a significant drop in U.S. pressure pumping supply in 2013.

Given our expectation of a relatively flat supply and demand environment during 2013, we believe the U.S. pressure pumping market will remain oversupplied throughout the upcoming year; however, we do not expect the supply/demand imbalance to grow throughout 2013. That being said, the U.S. pressure pumping market can change quickly and we will continue to monitor commodity prices and the spending of our customers and react appropriately as market conditions change.

U.S. pricing declined substantially during the first half of 2012 as the market became oversupplied, but remained relatively flat in the second half of the year. We expect pricing to remain stable in 2013 given the expectations of a steady supply and demand environment in the U.S.; however, pricing could soften slightly in some of the more active oil and liquids-rich gas plays if equipment continues to be redeployed into these areas. In addition, approximately 60% of our active U.S. fracturing equipment is currently under contracts that will be expiring in 2013. We will be working with new and existing customers to obtain work for these crews as contracts expire. We expect to realize moderate pricing declines in 2013 due to the contract expirations but expect 2013 utilization of our U.S. fracturing fleet to remain consistent with 2012.

Despite the prospect of an oversupplied U.S. pressure pumping market in 2013, we believe Trican's U.S. operating margins will increase gradually throughout the year. We have undertaken substantial cost cutting initiatives that are expected to improve margins and have already started to see some of the benefits of these initiatives in the fourth quarter of 2012. In addition, we are expecting realized guar prices to continue to decline in the first quarter of 2013 as we work through our higher priced inventory.

We expect to grow our cementing and coiled tubing service lines in the U.S. during 2013 by increasing utilization on existing equipment. A substantial amount of new cementing and coiled tubing equipment was built in 2012, and with a full year of equipment availability in 2013, we anticipate sales from these service lines to increase as a percentage of total sales. An important part of our U.S. strategy is to become a full service pressure pumping company, and we will continue to execute on this strategy in 2013.

International

Based on the results of the 2013 contract tendering process for our Russian operations, we expect 2013 revenue to increase by approximately 25%, as measured in Russian roubles, compared to 2012. The estimated revenue increase is based on a 2% expected rise in overall activity combined with a 23% expected increase in average revenue per job. The expected increase in average revenue per job is the combined result of the trend towards larger fracturing job sizes in multi-stage completions, a shift in the sales mix toward more fracturing work relative to coiled tubing and cementing, and a modest increase in pricing.

A high rate of inflation in the Russian market and strong competition continues to challenge the Russian operation's profitability. However, we are anticipating moderate improvements in operating margins in 2013 as a result of a shift in our work scope to higher margin work and multi-stage activity, including completion tool revenue, and a continued focus on optimizing the Russian operations' cost structure.

2012 was a successful year for our two fracturing crews in Kazakhstan, and we expect the Kazakhstan pressure pumping market to be stable in 2013. Activity levels are expected to be down slightly; however, operating margins are expected to remain strong in this region.

Our Algeria operations improved modestly in 2012, in particular for our coiled tubing service line. We expect Algerian coiled tubing activity and pricing to remain stable in 2013 and we will look to secure additional contracts for this service line to keep equipment utilization strong. The cementing market in Algeria was very competitive in 2012 and we expect this to continue in 2013. We will look to increase pricing and utilization for our cementing equipment in Algeria in 2013. We will also continue to closely monitor the political instability in this region and react appropriately should the instability negatively impact our Algeria operations and, more importantly, the safety of our people.

Our 2013 strategy in Australia will be to continue to expand our cementing service line and build new customer relationships. We expect to see moderate growth in Australian cementing revenue and operating income improvements in 2013. However, Australia oil and gas activity continues to develop slowly and we do not expect this region to generate a meaningful level of profitability in 2013.

Through our joint business arrangements in Saudi Arabia and Colombia, we are working to establish our presence in these markets and expect to participate in pressure pumping tenders in 2013. Initially, we will look to add cementing and coiled tubing services, with an eventual goal of being full service pressure pumping companies in these regions.

2013 Capital Budget

Trican's 2013 capital budget is expected to be $32.3 million. This capital budget is directed at maintaining Trican's global equipment fleet and infrastructure. Given the current operating environment in all of our key regions, minimal expansion capital initiatives have been included in the 2013 capital budget. Although the 2013 budget is modest, Trican stands by our commitment to provide service to our customers with a state-of-the-art and well maintained fleet of equipment. Many of our maintenance spending requirements for 2013 were incurred in 2012 and we are confident our fleet will be maintained in top operating condition throughout the coming year. Trican will continue to closely monitor its capital program and make any necessary modifications as greater visibility is obtained throughout 2013.

NON-IFRS DISCLOSURE

Adjusted net income, operating income and funds provided by operations do not have any standardized meaning as prescribed by IFRS and, therefore, are considered non-IFRS measures.

Adjusted net income and funds provided by operations have been reconciled to net income and operating income has been reconciled to gross profit, being the most directly comparable measures calculated in accordance with IFRS. The reconciling items have been presented net of tax.

---------------------------------------------------------------------------- Three months ended Twelve months ended---------------------------------------------------------------------------- Dec. 31, Dec. 31, Sept. 30, Dec. 31, Dec. 31, 2012 2011 2012 2012 2011----------------------------------------------------------------------------Adjusted net income ($5,375) $117,873 $24,716 $63,028 $351,014Deduct: Non-cash share-based compensation expense 2,455 3,003 2,068 9,689 12,378----------------------------------------------------------------------------Net income (IFRS financial measure) ($7,830) $114,870 $22,648 $53,339 $338,636------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Three months ended Twelve months ended---------------------------------------------------------------------------- Dec. 31, Dec. 31, Sept. 30, Dec. 31, Dec. 31, 2012 2011 2012 2012 2011----------------------------------------------------------------------------Funds provided by operations ($13,976) $181,916 $49,682 $122,750 $558,811Charges to income not involving cash Depreciation and amortization 41,564 36,443 37,270 152,837 126,576 Stock-based compensation 2,455 3,003 2,068 9,689 12,378 Loss/ (gain) on disposal of property and equipment 352 678 1,736 2,423 (369) Unrealized foreign exchange (gain)/loss (4,863) (2,273) 1,160 (50) (3,157) Income tax expense (2,957) 44,805 1,284 4,824 139,531 Income tax paid (42,697) (15,610) (16,484) (100,312) (54,784)----------------------------------------------------------------------------Net income (IFRS financial measure) ($7,830) $114,870 $22,648 $53,339 $338,636------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Three months ended Twelve months ended---------------------------------------------------------------------------- Dec. 31, Dec. 31, Sept. 30, Dec. 31, Dec. 31, 2012 2011 2012 2012 2011----------------------------------------------------------------------------Operating income $35,123 $197,295 $71,355 $240,068 $614,524Add: Administrative expenses 23,083 25,398 28,408 108,289 102,514Deduct: Depreciation expense (41,564) (36,443) (37,270) (152,837) (126,576)----------------------------------------------------------------------------Gross profit (IFRS financial measure) $16,642 $186,250 $62,493 $195,520 $590,462--------------------------------------------------------------------------------------------------------------------------------------------------------



FORWARD-LOOKING STATEMENTS

This document contains certain forward-looking information and financial outlook based on Trican's current expectations, estimates, projections and assumptions that were made by the Company in light of information available at the time the statement was made. Forward-looking information and financial outlook that address expectations or projections about the future, and other statements and information about the Company's strategy for growth, expected and future expenditures, costs, operating and financial results, future financing and capital activities are forward-looking statements. Some forward-looking information and financial outlook are identified by the use of terms and phrases such as "anticipate," "achieve", "achievable," "believe," "estimate," "expect," "intend", "plan", "planned", and other similar terms and phrases. This forward-looking information and financial outlook speak only as of the date of this document and we do not undertake to publicly update this forward-looking information and financial outlook except in accordance with applicable securities laws. This forward-looking information and financial outlook include, among others:

-- The belief that fourth quarter Canadian pricing levels reflect a balanced Canadian pressure pumping market and the expectation that the market will remained balanced throughout 2013;-- The expectation that Canadian activity levels will rebound in the first quarter of 2013 as we enter the 2013 winter drilling season in Canada;-- The expectation that the four idle U.S. crews will remain inactive until U.S. market conditions improve or a strategic opportunity arises in North America or internationally;-- The expectation that the growth of horizontal drilling and multi-stage completions in Russia is an important development for the pressure pumping industry in Russia, as the shift towards more unconventional drilling and completions will increase the demand for horsepower in the region and place a larger emphasis on technology;-- The expectation that Trican will initially provide cementing services in the Colombian market, growing over time to become a full service pressure pumping company in the region;-- The expectation that Trican will commence operations in Colombia during the first half of 2013;-- The belief that the i-TEC acquisition complements Trican's existing completion systems and tools business, and is expected to provide positive growth opportunities, as well as enhance our other pressure pumping service lines;-- Many of our maintenance spending requirements for 2013 were incurred in 2012 and we are confident our fleet will be maintained in top operating condition throughout the coming year. Trican will continue to closely monitor its capital program and make any necessary modifications as greater visibility is obtained throughout 2013.-- Demand for pressure pumping services in Canada is expected to be stable throughout 2013, with recent industry forecasts reflecting a 3% increase in the number of wells drilled compared to 2012. Oil and liquids-rich gas directed activity is expected to continue to dominate the Canadian oil and gas market given the continued weakness in natural gas prices. Horizontal drilling activity is also expected to remain strong, as it has become the leading drilling method in the Canadian market.-- The expectation that demand for pressure pumping services in Canada will be stable in 2013 compared to the 2012;-- The expectation that oil and liquids-rich gas directed activity will continue to dominate the Canadian oil and gas market;-- The expectation that horizontal drilling activity will remain strong in Canada;-- The expectation that increased equipment supply in Canada will result in a year-over-year reduction in pricing;-- The belief that most of the 2012 price declines in Canada occurred in the second half of 2012 and we do not expect any significant additional pricing decreases in Canada during 2013;-- The expectation that a meaningful increase in Canadian horsepower supply will not occur in 2013 and that sustained demand levels will keep the market in balance;-- The expectation that 2013 first quarter activity levels will increase relative to the fourth of 2012 as we enter the busy the Canadian drilling season;-- The expectation that first quarter activity levels will not be as strong as the first quarter of 2012. As a result, we expect first quarter operating margins will be higher sequentially due to increased activity but lower year-over-year due to the declines in pricing and activity levels;-- The expectation that U.S. pressure pumping demand will continue to be driven by commodity prices and the cash flows and capital budgets of our U.S. customers;-- The expectation that based on the current commodity price and capital spending environment in the U.S., no significant change in 2013 pressure pumping demand will occur relative to demand levels seen in the second half of 2012.-- The expectation that a meaningful amount of new horsepower will not enter the U.S. market in 2013;-- The potential for modest declines in available U.S. horsepower to occur in 2013 if equipment is redeployed out of North American and into international markets and if older U.S. equipment is permanently retired;-- The expectation that a significant drop in U.S. pressure pumping supply in 2013 will not occur;-- The belief that the U.S. pressure pumping market will remain oversupplied throughout the upcoming year;-- The expectation that the supply/demand imbalance in the U.S. will not grow throughout 2013;-- The expectation that U.S. pricing will remain stable in 2013 given the expectations of a steady supply and demand environment in the U.S.;-- The expectation that we will be working with new and existing customers to obtain work for U.S. fracturing crews that have expiring contracts in 2013;-- The expectation that we will realize moderate pricing declines in the U.S. in 2013 due to the contract expirations but expect 2013 utilization of our U.S. fracturing fleet to remain consistent with 2012;-- The belief that U.S. pricing could soften slightly in some of the more active oil and liquids-rich gas plays if equipment continues to be redeployed into these areas;-- The belief that Trican's U.S. operating margins will increase gradually throughout the year;-- The expectation that cost cutting initiatives will improve U.S. operating margins in 2013;-- The expectation that realized guar prices will continue to decline in the first quarter of 2013 as we work through our higher priced inventory;-- The expectation that we will grow our cementing and coiled tubing service lines in the U.S. during 2013 by increasing utilization on existing equipment;-- The expectation that sales from our U.S. cementing and coiled tubing service lines will increase as a percentage of total sales;-- The expectation that 2013 Russia revenue will increase by approximately 25%, as measured in Russian roubles, compared to 2012;-- The expectation that the estimated revenue increase is based on a 2% rise in overall activity combined with a 23% increase in average revenue per job.-- The expectation that the increase in average revenue per job is the combined result of the trend towards larger fracturing job sizes in multi-stage completions, a shift in the sales mix toward more fracturing work relative to coiled tubing and cementing and a modest increase in pricing;-- The expectation of moderate improvements in Russian operating margins in 2013;-- The expectation that the Kazakhstan pressure pumping market will be stable in 2013;-- The expectation that activity levels in Kazakhstan will be down slightly; however, operating margins are expected to remain strong in this region;-- The expectation that Algerian coiled tubing activity and pricing will remain stable in 2013;-- The expectation that the cementing market in Algeria will be very competitive in 2013;-- The expectation of moderate growth in Australian cementing revenue and operating income improvements in 2013;-- The expectation that Australia will not generate a meaningful level of profitability in 2013;-- The expectation that Trican will participate in pressure pumping tenders in 2013 in Saudi Arabia and Colombia;-- The expectation that Trican will renew the NCIB in the first quarter of 2013;-- The expectation that 2013 dividend payments will be approximately $44.0 million.



Forward-looking information and financial outlook are based on current expectations, estimates, projections and assumptions, which we believe are reasonable but which may prove to be incorrect. Trican's actual results may differ materially from those expressed or implied and therefore such forward-looking information and financial outlook should not be unduly relied upon. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the Company's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate its business in a safe, efficient and effective manner; the performance and characteristics of various business segments; the effect of current plans; the timing and costs of capital expenditures; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its products and services.

Forward-looking information and financial outlook is subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks and uncertainties include: fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; weather conditions; regulatory changes; the successful exploitation and integration of technology; customer acceptance of technology; success in obtaining issued patents; the potential development of competing technologies by market competitors; and availability of products, qualified personnel, manufacturing capacity and raw materials. The foregoing important factors are not exhaustive. In addition, actual results could differ materially from those anticipated in forward-looking information and financial outlook provided herein as a result of the risk factors set forth under the section entitled "Risks Factors" in our Annual Information Form dated March 22, 2012. Readers are also referred to the risk factors and assumptions described in other documents filed by the Company from time to time with securities regulatory authorities.

Additional information regarding Trican including Trican's most recent annual information form is available under Trican's profile on SEDAR (www.sedar.com).

CONSOLIDATED STATEMENT OF FINANCIAL POSITION December 31, December 31,(Stated in thousands) 2012 2011--------------------------------------------------------------------------------------------------------------------------------------------------------ASSETSCurrent assets Cash and cash equivalents $113,506 $125,855 Trade and other receivables 437,038 607,672 Current tax assets 647 1,553 Inventory 211,794 173,515 Prepaid expenses 33,002 31,996---------------------------------------------------------------------------- 795,987 940,591Property and equipment 1,458,562 1,178,410Intangible assets 10,081 14,662Deferred tax assets 76,302 33,369Other assets 11,898 6,445Goodwill 43,689 43,706---------------------------------------------------------------------------- $2,396,519 2,217,183--------------------------------------------------------------------------------------------------------------------------------------------------------LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities Bank loans (note 3) $9,119 $- Trade and other payables 228,788 287,689 Contingent consideration (note 2) 2,860 2,867 Current tax liabilities 7,853 3,363 Current portion of long-term debt (note 3) - 25,425---------------------------------------------------------------------------- 248,620 319,344Loans and borrowings (note 3) 694,972 400,256Deferred tax liabilities 77,012 132,031Shareholders' equity Share capital (note 4) 527,860 529,062 Contributed surplus 55,352 45,894 Accumulated other comprehensive income (24,100) (22,805) Retained earnings 815,700 813,238----------------------------------------------------------------------------Total equity attributable to equity holders of the Company 1,374,812 1,365,389Non-controlling interest 1,103 163---------------------------------------------------------------------------- $2,396,519 $2,217,183--------------------------------------------------------------------------------------------------------------------------------------------------------Contractual obligations (note 19)Contingencies (note 22)Subsequent event (note 25)See accompanying notes to the consolidated financial statements.CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME(Stated in Three Months Three Months Twelve Months Twelve Months thousands, except Ended Dec 31, Ended Dec 31, Ended Dec 31, Ended Dec 31, per share amounts) 2012 2011 2012 2011----------------------------------------------------------------------------Revenue $485,865 $694,214 $2,213,400 $2,309,647Cost of sales 463,378 507,964 2,017,880 1,719,185----------------------------------------------------------------------------Gross profit 22,487 186,250 195,520 590,462Administrative expenses 28,928 25,398 108,289 102,514Other income (10) 167 375 (2,089)----------------------------------------------------------------------------Results from operating activities (6,431) 160,685 86,856 490,037Finance income (550) (1,572) (2,212) (3,896)Finance costs 8,374 6,557 30,497 20,041Foreign exchange loss/(gain) (3,468) (3,975) 408 (4,275)----------------------------------------------------------------------------Profit/(loss) before income tax (10,787) 159,675 58,163 478,167Income tax expense/(recovery) (note 6) (2,957) 44,805 4,824 139,531----------------------------------------------------------------------------Profit/(loss) for the period ($7,830) 114,870 53,339 338,636----------------------------------------------------------------------------Other comprehensive income/(loss) Unrealized loss/(gain) on hedging instruments 207 (3,011) (898) 1,358 Foreign currency translation differences (10,311) 10,886 2,193 2,219----------------------------------------------------------------------------Total comprehensive income for the period $2,274 $106,995 $52,044 $335,059--------------------------------------------------------------------------------------------------------------------------------------------------------Profit / (loss) attributable to:Owners of the Company (7,741) 114,921 53,674 338,707Non-controlling interest (89) (51) (335) (71)----------------------------------------------------------------------------Profit/(loss) for the period $(7,830) $114,870 $53,339 $338,636----------------------------------------------------------------------------Total comprehensive income/(loss) attributable to:Owners of the Company 2,363 107,111 52,379 335,175Non- Controlling interest (89) (116) (335) (116)----------------------------------------------------------------------------Total comprehensive income/(loss) for the period $2,274 $106,995 $52,044 $335,059--------------------------------------------------------------------------------------------------------------------------------------------------------Earnings/(loss) per share (note 5)---------------------------------------------------------------------------- Basic ($0.05) $0.78 $0.37 $2.32 Diluted ($0.05) $0.78 $0.37 $2.30----------------------------------------------------------------------------Weighted average shares outstanding - basic 146,450 146,762 146,620 145,805Weighted average shares outstanding - diluted 146,450 147,466 146,690 147,085--------------------------------------------------------------------------------------------------------------------------------------------------------See accompanying notes to the consolidated financial statements.CONSOLIDATED STATEMENT OF CASH FLOWS Three Months Three Months Twelve Months Twelve Months(Stated in Ended Dec 31, Ended Dec 31, Ended Dec 31, Ended Dec 31, thousands) 2012 2011 2012 2011----------------------------------------------------------------------------Cash Provided By/ (Used In):Operations Profit/(loss) for the period ($7,830) $114,870 $53,339 $338,636 Charges to income not involving cash: Depreciation and amortization 41,564 36,443 152,837 126,576 Amortization of debt issuance costs 208 202 813 375 Stock-based compensation 2,455 3,003 9,689 12,378 (Gain)Loss on disposal of property and equipment 352 678 2,423 (369) Net Finance Costs 7,824 4,985 28,285 16,145 Unrealized foreign exchange gain/(loss) (4,863) (2,273) (50) (3,157) Income tax expense/ (recovery) (2,957) 44,805 4,824 139,531---------------------------------------------------------------------------- 36,753 202,713 252,160 630,115 Change in inventories 6,704 (16,395) (39,471) (67,225) Change in trade and other receivables 96,141 (6,278) 167,427 (232,628) Change in prepayments 10,444 (1,899) (1,463) (21,995) Change in trade and other payables (70,701) (1,407) (67,688) 72,061----------------------------------------------------------------------------Cash generated from operating activities 79,341 176,733 310,965 380,328 Interest paid (8,373) (12,795) (24,278) (17,454) Income tax paid (42,697) (15,610) (100,312) (54,784)---------------------------------------------------------------------------- 28,271 148,329 186,375 308,090Investing Interest received 250 389 1,163 1,851 Purchase of property and equipment (58,688) (162,812) (444,550) (578,457) Proceeds from the sale of property and equipment 1,848 61 3,325 2,489 Payments received on loan to an unrelated third party (250) 1,750 (24) 6,175 Business acquisitions - - - (9,372)---------------------------------------------------------------------------- (56,840) (160,612) (440,086) (577,314)Financing Net proceeds from issuance of share capital - 942 1,289 33,065 Repurchase and cancellation of shares under NCIB - - (10,011) - Issuance of loans and borrowings, net of financing fees 243,634 - 304,756 294,118 Repayment of loans and borrowings (157,688) (1,706) - - Repayment of long- term debt 0 - (25,425) - Dividend paid 0 - (29,300) (14,517)---------------------------------------------------------------------------- 85,946 (764) 241,309 312,666Effect of exchange rate changes on cash 796 (60) 51 1,355----------------------------------------------------------------------------Increase / (decrease) in cash and cash equivalents 58,173 (13,108) (12,349) 44,797Cash and cash equivalents, beginning of period 55,333 138,963 125,855 81,058----------------------------------------------------------------------------Cash and cash equivalents, end of period $113,506 $125,855 $113,506 $125,855--------------------------------------------------------------------------------------------------------------------------------------------------------See accompanying notes to the consolidated financial statements.



Selected Notes to Consolidated Financial Statements

For the years ended December 31, 2012 and 2011

NOTE 5 - TRADE AND OTHER RECEIVABLES

(Stated in thousands)December 31, 2012 2011----------------------------------------------------------------------------Trade receivables $434,568 $599,669Allowance for doubtful accounts (4,085) (4,528)Loans and other receivables 17,222 18,078----------------------------------------------------------------------------Total $447,705 $613,219----------------------------------------------------------------------------Non-current (Note 9) $10,667 $5,547Current $437,038 $607,672----------------------------------------------------------------------------



The company's exposure to credit risk related to trade and other receivables is disclosed in Note 16.

NOTE 6 - INVENTORY

(Stated in thousands)December 31, 2012 2011----------------------------------------------------------------------------Product inventory Chemicals and consumables $93,502 $73,376 Coiled tubing 19,669 21,310Parts 98,623 78,829---------------------------------------------------------------------------- $211,794 $173,515--------------------------------------------------------------------------------------------------------------------------------------------------------



The total amount of inventory recognized as cost of sales during the year was $818 million (2011 - $676.5 million). There were no significant write-downs of inventory during the year-ended December 31, 2012 (2011 - nil).

NOTE 7 - PROPERTY AND EQUIPMENT

(stated in thousands) Land and Fixtures and buildings Equipment fittings Total----------------------------------------------------------------------------CostBalance at January 1, 2011 $82,000 $965,657 $32,025 $1,079,682Additions 17,026 573,857 6,009 596,892Acquisitions through business combinations - 5,495 - 5,495Disposals - (28,711) - (28,711)Effect of movements in exchange rates 74 2,498 (11) 2,561----------------------------------------------------------------------------Balance at December 31, 2011 $99,100 $1,518,796 $38,023 $1,655,919Additions 14,781 424,127 3,535 442,443Disposals (27) (18,529) (92) (18,648)Effect of movements in exchange rates (457) (7,710) (167) (8,334)----------------------------------------------------------------------------Balance at December 31, 2012 $113,397 $1,916,684 $41,299 $2,071,380----------------------------------------------------------------------------Accumulated DepreciationBalance at January 1, 2011 $15,620 $343,211 $20,096 $378,927Depreciation 3,355 112,850 5,386 121,591Disposals - (20,848) - (20,848)Effect of movements in exchange rates (48) (2,094) (19) (2,161)----------------------------------------------------------------------------Balance at December 31, 2011 $18,927 $433,119 $25,463 $477,509Depreciation 4,011 141,031 3,398 148,440Disposals - (12,587) - (12,587)Effect of movements in exchange rates (20) (498) (26) (544)----------------------------------------------------------------------------Balance at December 31, 2012 $22,918 $561,065 $28,835 $612,818----------------------------------------------------------------------------Carrying amountsAt December 31, 2011 $80,173 $1,085,677 $12,560 $1,178,410At December 31, 2012 $90,479 $1,355,619 $12,464 $1,458,562----------------------------------------------------------------------------



Included within equipment are assets held under finance lease with a gross value of $53.7 million (2011 - $35.2 million) and accumulated depreciation of $18.4 million (2011 - $9.4 million). The lease obligations are secured by the leased equipment. At December 31, 2012, Trican had $93.0 million in idle equipment and $326.5 million in assets under construction which have not been depreciated. At December 31, 2012, there were no impairment losses recognized (2011 - nil).

NOTE 8 - INTANGIBLE ASSETS AND GOODWILL

Total(stated in Non-compete Customer CBM intangible thousands) Goodwill agreements relationships process asset----------------------------------------------------------------------------CostBalance at January 1, 2011 $36,916 $22,987 $13,154 $8,503 $44,644Acquisitions through business combinations 6,551 - - - -Effect of movements in exchange rates 239 468 191 - 659----------------------------------------------------------------------------Balance at December 31, 2011 $43,706 $23,455 $13,345 $8,503 $45,303----------------------------------------------------------------------------Effect of movements in exchange rates (17) (462) (188) (3) (653)----------------------------------------------------------------------------Balance at December 31, 2012 $43,689 $22,993 $13,157 $8,500 $44,650----------------------------------------------------------------------------Amortization and impairment lossesBalance at January 1, 2011 $- $10,775 $9,866 $3,188 $23,829Amortization - 2,859 2,620 850 6,329Effect of movements in exchange rates - 293 190 - 483----------------------------------------------------------------------------Balance at December 31, 2011 $- $13,927 $12,676 $4,038 $30,641----------------------------------------------------------------------------Amortization - 2,992 554 849 4,395Effect of movements in exchange rates - (394) (73) - (467)----------------------------------------------------------------------------Balance at December 31, 2012 $- $16,525 $13,157 $4,887 $34,569----------------------------------------------------------------------------Carrying amountsAt December 31, 2011 $43,706 $9,528 $669 $4,465 $14,662At December 31, 2012 $43,689 $6,468 $- $3,613 $10,081--------------------------------------------------------------------------------------------------------------------------------------------------------



For the purposes of impairment testing, goodwill is allocated to the Company's operating segments. The aggregate carrying amount of goodwill allocated to each region is as follows:

December 31, December 31,(Stated in thousands) 2012 2011----------------------------------------------------------------------------Canada $22,690 $22,690International 20,999 21,016---------------------------------------------------------------------------- $43,689 $43,706----------------------------------------------------------------------------



The recoverable amount was determined by discounting the future cash flows to be generated from the continuing operations of each cash generating unit, to which goodwill has been allocated. . For both the Canadian and International operations the recoverable amount was in excess of the carrying amount attributable to each cash generating unit. No impairment was recorded relating to the year ended December 31, 2012 (2011 - no impairment).

NOTE 10 - TRADE AND OTHER PAYABLES

December 31, December 31, December 31,(Stated in thousands) 2012 2011----------------------------------------------------------------------------Trade payables 112,141 167,692Accrued liabilities 55,603 78,693Dividend payable 21,968 7,346Finance lease obligations 13,275 8,828Other payables 25,801 25,130----------------------------------------------------------------------------Total trade and other payables $228,788 $287,689----------------------------------------------------------------------------



The Company's exposure to currency and liquidity risk related to trade and other payables is disclosed in note 16.

NOTE 11 - LOANS AND BORROWINGS

Bank loans

The Company's Russian subsidiary has a U.S. $20 million (Canadian equivalent of $19.9 million) demand revolving facility with a large international bank. This facility is unsecured, bears interest at LIBOR plus a premium, as determined by the bank, plus 2.75% and has been guaranteed by the Company. As at December 31, 2012, the amount drawn from this facility was $9.1 million (December 31, 2011 - nil).

Long term debt

December 31, December 31,(Stated in thousands) 2012 2011----------------------------------------------------------------------------Notes payable $430,408 $412,646Finance lease obligations 36,324 26,766Revolving credit facilities 255,693 -Hedge receivable (5,059) (4,903)---------------------------------------------------------------------------- Total $717,366 $434,509Current portion of finance lease obligations (1) 13,275 8,828Russian demand revolving credit facility 9,119 -Current portion of long-term debt - 25,425----------------------------------------------------------------------------Non-current $694,972 $400,256--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Current portion of finance lease obligations is included in trade and other payables.



NOTE 17 - CAPITAL MANAGEMENT

The Company's strategy is to carry a capital base to maintain investor, creditor and market confidence and to sustain future development of the business. The Company seeks to maintain a balance between the level of long-term debt and shareholders' equity to ensure access to capital markets to fund growth and working capital given the cyclical nature of the oilfield services sector. On a historical basis, the Company maintained and continues to maintain a conservative ratio of long-term debt to total capitalization. The Company may occasionally need to increase these levels to facilitate acquisition or expansionary activities.

As at December 31, these ratios were as follows:

December 31,(Stated in thousands, except ratios) 2012 2011----------------------------------------------------------------------------Loans and borrowings $694,972 $400,256Shareholders' equity 1,374,812 1,365,389----------------------------------------------------------------------------Total capitalization $2,069,784 $1,765,645----------------------------------------------------------------------------Long-term debt to total capitalization 0.34 0.23----------------------------------------------------------------------------



The Company is subject to various financial and non-financial covenants associated with existing debt facilities. The covenants are monitored on a regular basis and controls are in place to maintain compliance with these covenants. The Company complied with all financial covenants for the year ended December 31, 2012.

NOTE 21 - OPERATING SEGMENTS

The Company operates in Canada and the U.S. along with a number of international regions which include Russia, Algeria, Kazhakstan, Saudi Arabia, Colombia and Australia. Each geographic region has a General Manager that is responsible for the operation and strategy of their region's business. Personnel working within the particular geographic region report to the General Manager; the General Manager reports to the Corporate Executive.

The Company provides a comprehensive array of specialized products, equipment, services and technology to customers through three operating divisions:

-- Canadian Operations provides cementing, fracturing, coiled tubing, nitrogen, geological, and acidizing, reservoir management, industrial cleaning and pipeline, and completion systems and downhole tool services.-- U.S. Operations provides cementing, fracturing, coiled tubing, nitrogen, and acidizing services which are performed on new and existing oil and gas wells.-- International Operations provides cementing, fracturing, coiled tubing, acidizing, completion systems and nitrogen services which are performed on new and existing oil and gas wells.



Information regarding the results of each geographic region is included below. Performance is measured based on revenue and gross profit as included in the internal management reports which are reviewed by the Company's executive management team. Each region's gross profit is used to measure performance as management believes that such information is most relevant in evaluating regional results relative to other entities that operate within the industry.

United(Stated in Canadian States International thousands) Operations Operations Operations Corporate Total--------------------------------------------------------------------------------------------------------------------------------------------------------Year ended December 31, 2012----------------------------------------------------------------------------Revenue $1,139,474 $797,783 $276,143 $- $2,213,400Gross profit/(loss) 286,271 (77,379) 11,363 (24,735) 195,520Finance income - - - (2,212) (2,212)Finance costs - - - 30,497 30,497Tax expense/ (recovery) 46,884 (43,471) 883 528 4,824Depreciation and amortization 53,810 71,683 26,422 922 152,837Assets 910,888 1,109,657 323,134 52,840 2,396,519Goodwill 22,690 - 20,999 - 43,689Property and equipment 534,235 797,841 111,632 14,854 1,458,562Capital expenditures 137,477 258,363 41,666 7,044 444,550--------------------------------------------------------------------------------------------------------------------------------------------------------Year ended December 31, 2011----------------------------------------------------------------------------Revenue $1,282,684 $738,916 $288,047 $- $2,309,647Gross profit/(loss) 448,895 150,311 13,923 (22,667) 590,462Finance income - - - (3,896) (3,896)Finance costs - - - 20,041 20,041Tax expense 93,704 43,997 1,814 16 139,531Depreciation and amortization 47,687 54,274 23,935 680 126,576Assets 911,635 882,391 257,441 165,716 2,217,183Goodwill 22,690 - 21,016 - 43,706Property and equipment 505,781 573,548 88,287 10,794 1,178,410Capital expenditures 183,156 374,768 18,848 1,685 578,457Goodwill expenditures - - 6,551 - 6,551--------------------------------------------------------------------------------------------------------------------------------------------------------



The Corporate division does not represent an operating segment and is included for informational purposes only. Corporate division expenses consist of salary expenses, stock-based compensation and office costs related to corporate employees, as well as public company costs.

Revenue reported above represents revenue generated from external customers. There are no intersegment sales. Revenue from one external customer for the year ended December 31, 2012, amounted individually to greater than 10% of the Company's total revenue. The customer's revenue is exclusively within the U.S. and totals $338.2 million (2011 - $359.7 million).



Contacts:
Trican Well Service Ltd.
Dale Dusterhoft
Chief Executive Officer
(403) 266 - 0202
(403) 237 - 7716 (FAX)
ddusterhoft@trican.ca

Trican Well Service Ltd.
Michael Baldwin
Vice President, Finance & CFO
(403) 266 - 0202
(403) 237 - 7716 (FAX)
mbaldwin@trican.ca

Trican Well Service Ltd.
Gary Summach
Director of Reporting and Investor Relations
(403) 266 - 0202
(403) 237 - 7716 (FAX)
gsummach@trican.ca

Trican Well Service Ltd.
2900, 645 - 7th Avenue S.W.
Calgary, Alberta T2P 4G8
www.trican.ca



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