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Secure Reports Strong Fourth Quarter and Year End Results Despite Slower Industry Conditions

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CALGARY, ALBERTA -- (Marketwire) -- 03/04/13 -- Secure Energy Services Inc. ("Secure" or the "Corporation") (TSX: SES) today announced financial and operational results for the three months and year ended December 31, 2012. The following should be read in conjunction with the management's discussion and analysis ("MD&A"), the consolidated financial statements and notes of Secure which are available on SEDAR at www.sedar.com.

2012 FINANCIAL AND OPERATIONAL HIGHLIGHTS Three Months Ended Dec 31, Year Ended Dec 31,($000's except share and per % % share data)(1) 2012 2011 Change 2012 2011 Change--------------------------------------------------------------------------------------------------------------------------------------------------------Revenue (excludes oil purchase and resale) 108,356 101,999 6 392,192 231,051 70Oil purchase and resale 170,501 129,262 32 637,248 320,148 99----------------------------------------------------------------------------Total revenue 278,857 231,261 21 1,029,440 551,199 87----------------------------------------------------------------------------EBITDA (2) 28,360 24,785 14 99,624 61,964 61 Per share ($), basic 0.27 0.28 (4) 1.03 0.79 30 Per share ($), diluted 0.26 0.26 - 1.00 0.75 33----------------------------------------------------------------------------Net earnings 10,634 10,290 3 33,052 22,383 48 Per share ($), basic 0.10 0.12 (17) 0.34 0.28 21 Per share ($), diluted 0.10 0.11 (9) 0.33 0.27 22----------------------------------------------------------------------------Capital Expenditures 67,604 29,330 130 201,587 202,053 -Total assets 767,911 603,083 27 767,911 603,083 27Long term borrowings 122,810 119,070 3 122,810 119,070 3----------------------------------------------------------------------------Common Shares - end of period 104,627,002 90,156,688 16 104,627,002 90,156,688 16Weighted average common shares basic 104,530,375 89,481,219 17 96,388,929 78,540,224 23 diluted 107,456,318 93,718,121 15 99,362,698 82,944,975 20--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Certain amounts were reclassified to conform with current period presentation(2) Refer to "Non GAAP measures and operational definitions"



Secure's financial performance for 2012 increased significantly over 2011 resulting in a record year. For the year ended December 31, 2012, revenue (excluding oil purchase and resale) increased 70% to $392.2 million and net earnings improved 48% to $33.1 million while total assets increased 27% to total $767.9 million when compared to the year ended December 31, 2011. The Corporation executed on its organic growth and expansion initiatives adding $167.8 million of new facilities and equipment, and completing $36.6 million of acquisitions. Secure's results reflect increased demand at existing processing, recovery and disposal ("PRD") facilities and increased market share in the drilling services ("DS") division despite slower oil and natural gas industry activity in the second half of 2012. The PRD division 2012 operating margin of $79.6 million increased 63% from 2011 as a result of new facilities and expansions as well as greater demand for the Corporation's services. The DS division added operating margin of $63.0 million and increased its year over year market share in the Western Canadian Sedimentary Basin ("WCSB") to 29% from 26%.

-- RECORD REVENUE AND EBITDA -- Revenue for the year ended December 31, 2012 (excluding oil purchase and resale) increased 70% compared to the year ended December 31, 2011. The major contributing factors from the PRD division included the new facilities and expansions completed during the year, higher disposal and processing volumes from existing facilities, and a key acquisition in North Dakota. The DS division revenue increased significantly as a result of twelve months of operations in 2012 versus seven months in 2011, completion of two key acquisitions and through increased demand for its services. The Corporation's fourth quarter 2012 revenue (excluding oil purchase and resale) increased to $108.4 million from $102.0 million in the fourth quarter of 2011. The increase relates to higher demand, new facilities and expansions completed in 2012 and acquisitions executed during the year, offset by a reduction in 2012 fourth quarter activity levels compared to the fourth quarter of 2011. Despite quarter over quarter average rig count decline of 28% as reported by the Canadian Association of Oilwell Drilling Contractors ("CAODC"), the DS division fourth quarter 2012 revenue decreased by only 4% when compared to the fourth quarter of the prior year; -- Oil purchase and resale revenue in the PRD division for the three and twelve months ended December 31, 2012 of $170.5 million and $637.2 million increased 32% and 99% respectively from the same periods in 2011. The increase in the fourth quarter of 2012 was a result of the addition of the Dawson FST crude oil treating and terminalling plant in June of 2012. The significant increase in the year resulted from the Drayton Valley FST being operational for a full year, the addition of the crude oil treating and terminalling at the Dawson FST and overall increased demand; and -- EBITDA (earnings before interest, taxes, depreciation and amortization) for the three and twelve months ended December 31, 2012 increased 14% and 61%, respectively, compared to the three and twelve months ended December 31, 2011. Increases in revenue as discussed above and higher operating margins translated into higher EBITDA for the three months and year ended December 31, 2012.-- DIVERSIFICATION INTO NEW MARKETS AND NEW AREAS -- Organic expansion and growth capital totaled $66.4 million and $167.8 million for the three and twelve months ended December 31, 2012. Total assets as of December 31, 2012 were $767.9 million compared to $603.1 million as of December 31, 2011. New facilities completed, expansion of existing facilities and new projects initiated in the year included: -- Drayton Valley FST Oil Based Mud ("OBM") blending facility; -- South Grande Prairie mud storage system; -- Wild River stand alone water disposal facility ("SWD") (permanent facility); -- Obed, Dawson and Fox Creek full service terminal (" FST") expansions including the Phase III (oil treating and terminalling) at Dawson; -- South Grande Prairie and Pembina landfill expansions; -- Fox Creek landfill (completed in December of 2012); -- Crosby North Dakota SWD, (completed in December of 2012), Secure's first organic project in the United States; -- Construction of the new Judy Creek FST (joint venture with Pembina Pipelines Corporation) and the Rocky FST; both expected to be operational in the second quarter of 2013; -- Construction of the new Edson SWD, temporary facility scheduled to open in the first quarter of 2013 with permanent facility forecasted to be operational the beginning of 2014; -- New Kabob SWD, initial development complete with construction commencing in the second quarter; and -- Various long lead equipment purchases for the 2013 capital projects. -- Strategic acquisition capital totaled $36.6 million ($30.8 million cash portion) in 2012, targeting under- serviced and capacity constrained markets: -- Asset purchase of DRD Saltwater Disposal LLC ("DRD" ) in July provided entry into the North Dakota Bakken, expanding PRD operations outside of the WCSB into the United States; -- New West Drilling Fluids Inc. acquisition in January expanded the DS division drilling fluid solutions into the heavy oil and oil sands area of north eastern Alberta; and -- Purchase of the assets of Imperial Drilling Fluids Engineering Inc. ("IDF"). The acquisition provides the Corporation with access to the developing Niobrara area in the U.S. Rockies.-- SOLID BALANCE SHEET -- On November 1, 2012 Secure increased its syndicated credit facility from $200.0 million to $300.0 million through an amended and restated extendible credit facility agreement. The credit agreement includes an accordion provision to increase the credit facility by $50.0 million to $350.0 million; -- In August, a bought deal financing was completed raising total proceeds of $86.3 million. The net proceeds from the financing were used to initially repay the Corporation's credit facility. Funds have been redrawn on the credit facility to fund a portion of the 2012 and 2013 capital projects; -- Funds from operations increased 12% in the fourth quarter of 2012 to $24.8 million from the comparative quarter in 2011 and 57% for the year ended December 31, 2012 compared to the same period in 2011. Increases were used to partially fund the Corporation's 2012 capital projects thereby minimizing draws on the credit facility; and -- Secure's debt to EBITDA ratio was 1.51 as of December 31, 2012 compared to 2.07 as of December 31, 2011.PRD DIVISION OPERATING HIGHLIGHTS Three Months Ended Dec 31, Year Ended Dec 31, % %($000's)(1) 2012 2011 Change 2012 2011 Change----------------------------------------------------------------------------Revenue Processing, recovery and disposal services (a) 36,558 27,324 34 129,893 83,345 56 Oil purchase and resale service 170,502 129,262 32 637,248 320,148 99 -------------------------------------------------- Total PRD division revenue 207,060 156,586 32 767,141 403,493 90 --------------------------------------------------Operating Expenses Processing, recovery and disposal services (b) 13,904 10,756 29 50,246 34,581 45 Oil purchase and resale service 170,502 129,262 32 637,248 320,148 99 Depreciation, depletion, and amortization 9,057 6,193 46 29,356 19,153 53 -------------------------------------------------- Total operating expenses 193,463 146,211 32 716,850 373,882 92General and administrative 4,483 3,305 36 14,281 10,041 42 --------------------------------------------------Total PRD division expenses 197,946 149,516 32 731,131 383,923 90Operating Margin (2) (a-b) 22,654 16,568 37 79,647 48,764 63Operating Margin (2) as a % of revenue (a) 62% 61% 2 61% 59% 3----------------------------------------------------------------------------(1) Certain amounts were reclassified to conform with current period presentation (see note below)(2) Refer to "Non GAAP measures and operational definitions"



Note: In the prior year, the Corporation completed the acquisition of Marquis Alliance Energy Group Inc. and its wholly owned subsidiaries ("Marquis Alliance") and XL Fluids Systems Inc. ("XL Fluids"), creating the DS division. In 2012, Secure has reclassified certain costs previously included in the PRD division, including segregating out costs associated with Corporate overhead. Accordingly, any reclassifications in 2012 were adjusted in the prior year to conform to current period presentation.

Highlights for the PRD division included:

-- Revenue from processing, recovery and disposal for the three and twelve months ended December 31, 2012 increased by 34% and 56%, respectively compared to the same periods of 2011. Revenue increases over the prior year and quarter are due to processing volume increases of 110% and 35% respectively and disposal volume increases of 37% and 29% respectively. Overall volumes have increased as a result of: -- New facility additions and expansions in late 2011 and throughout 2012 which include the new Drayton Valley FST in the fourth quarter of 2011; the acquisition of the Silverdale FST in October 2011; the new Wild River SWD permanent facility in the second quarter of 2012; the expansions of Obed, Fox Creek and Dawson FSTs; the acquisition of DRD in July 2012; the new Crosby, North Dakota SWD in December 2012; and the new Fox Creek Landfill in December of 2012 (the "new facilities and expansions"); -- Increased demand over the prior year and quarter as processing volumes from existing facilities that were in operation at the same respective periods in 2012 and 2011 continued to see growth.-- Recovery revenue from the sale of oil recovered through waste processing, crude oil handling, marketing and terminalling increased by 21% and 49% for the three and twelve months ended December 31, 2012 compared to the same period in 2011. The amount of recovery revenue increased with the addition of new facilities and expansions during the year, with higher processing volumes and due to the Corporation's ability to capitalize on crude oil marketing opportunities at its FSTs.-- Operating expenses from PRD services for the three and twelve months ended December 31, 2012 increased to $13.9 million and $50.2 million respectively from $10.8 million and $34.6 million for the comparative periods of 2011. The increase in operating expenses year over year and quarter over quarter relates to the new facilities and expansions added organically, the Silverdale and DRD acquisitions and due to an increase in processing volumes from existing facilities. In addition, the Corporation incurred start-up costs for the Fox Creek landfill and Crosby SWD which both became operational in December of 2012.-- Operating margin as a percentage of revenue was 62% and 61% for the three and twelve months ended December 31, 2012 compared to 61% and 59% for the same respective periods of 2011. The two percentage point year over year increase was a result of improvements in operating efficiencies at the facilities and improved weather conditions experienced during the year. The Corporation did not experience the same weather conditions in 2012 as it did in 2011. Weather conditions in 2011 added approximately $2.0 million to operating expenses as a result of increased road maintenance, site and equipment, and leachate disposal expenses due to heavy rains. In the fourth quarter of 2012, operating costs and margins improved by 1% due to operating efficiencies, however the improvement was marginally impacted by freezing rain in early November increasing road and site costs and from startup costs related to the new facilities opened in December.-- General and administrative ("G&A") costs have increased for the three and twelve months ended December 31, 2012 compared to the same periods of 2011 as a result of new employees hired to support growth in the PRD division in Canada and the United States, information system expenses and the establishment of the PRD divisional office in Denver, Colorado. G&A as a percentage of revenue improved to 11% for the twelve months ended December 31, 2012 compared to 12% for the twelve months ended December 31, 2011. G&A as a percentage of revenue for the three months ended December 31, 2012 was 12% which was consistent to the fourth quarter of 2011.DS DIVISION OPERATING HIGHLIGHTS Three Months Ended Dec 31, Year Ended Dec 31, % %($000's)(1) 2012 2011 Change 2012 2011 Change--------------------------------------------------------------------------------------------------------------------------------------------------------Revenue Drilling services (a) 71,797 74,675 (4) 262,299 147,706 78Operating expenses Drilling services (b) 53,899 57,087 (6) 199,270 109,919 81 Depreciation and amortization 2,995 2,643 13 12,412 5,777 115 --------------------------------------------------------Total DS division operating expenses 56,894 59,730 (5) 211,682 115,696 83 General and administrative 7,199 5,620 28 26,867 12,036 123 --------------------------------------------------------Total DS division expenses 64,093 65,350 (2) 238,549 127,732 87 -------------------------------------------------------- --------------------------------------------------------Operating Margin (2) (a-b) 17,898 17,588 2 63,029 37,787 67Operating Margin % (2) 25% 24% 4 24% 26% (8)--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Includes DS division from its acquisition on June 1, 2011.(2) Refer to "Non GAAP measures and operational definitions"



Highlights for the DS division included:

-- Revenue for the DS division for the year ended, December 31, 2012 increased 78% to $262.3 million from $147.7 million for the seven months ended December 31, 2011. The year over year increase in revenue is mostly attributable to a full year of activities in 2012 versus the seven months of 2011 and the increase in Canadian market share. Canadian market share for the drilling fluids service line for the year ended December 31, 2012 was approximately 29%, up from 26% in 2011. The market share increased as a result of the successful integration of the XL Fluids Systems Inc. and New West Drilling Fluids Inc. acquisitions, offering a broader product line by adding SAGD and completion fluid products and the introduction of new technology such as well bore strengthening and lost circulation additives for oil based mud drilling and new products for the drilling of horizontal wells in the oil sands.-- In the fourth quarter of 2012, the CAODC's average rig count was 351 rigs, down 28% from the 489 average rigs working during the comparative period of 2011. Despite activity being down 28%, revenue only decreased 4% from the previous year's quarter. DS revenue did not decrease to the same extent as industry due to the division's ability to increase its market share over the same quarter of 2011 and due to the addition of IDF. For the fourth quarter of 2012, market share for the Canadian drilling fluid service line was approximately 30% compared to 25% for the same period in 2011, again for the same reasons as discussed above.-- Revenue per operating day for the year ended December 31, 2012 for the Canadian drilling fluids service line was $5,449 compared to $4,995 for the seven months ended December 31, 2012. Fourth quarter 2012 revenue per operating day in Canada increased to $5,642 compared to $5,563 for the prior year period. Revenue per operating day for the year and quarter in 2012 increased over the same respective periods in 2011 due to an increased volume of oil based muds. Oil based fluids have a higher selling price than water based fluids. Oil based fluid demand has increased due to an increase in horizontal and directional drilling.-- Operating margin for the fourth quarter of 2012 improved by 1% compared to the same period of 2011. A contributing factor in the one percentage point margin increase is due to logistical savings associated with the Drayton Valley blending plant and increased sales on higher margin proprietary products. For the year ended December 31, 2012, operating margins decreased by 2% compared to the seven months ended December 31, 2011. The decrease in the operating margin for the year is due to a higher proportion of revenue associated with oil based drilling fluids use which has a lower margin than water based drilling fluids.-- General and administrative costs for the three and twelve months ended December 31, 2012 increased by 28% and 123%, respectively, versus the comparative periods of 2011. The year over year increase is the result of a full twelve months of operations in 2012 versus seven months of operation in 2011 and an increase in headcount and associated costs to manage the growth in U.S. operations. The increase in the fourth quarter of 2012 is attributable to a higher headcount plus associated costs to improve infrastructure and manage the growing business in the US, including supporting the recent IDF acquisition. G&A as a percentage of revenue for the three and twelve months ended December 31, 2012 was 10% for both respective periods compared to 8% for both the three and seven month period ended December 31, 2011. The G&A percentage increased by two percentage points in the quarter due to lower revenue from slower industry conditions. On an annual basis, the percentage increase was due to the reasons as cited above.



OUTLOOK

Secure had a successful and rewarding year in 2012. The Corporation achieved significant growth while creating value for our shareholders over the past year. Concerns over crude oil differentials, natural gas liquid pricing and natural gas fundamentals in North America are leading to cautious producer spending plans for 2013. There is optimism that producer capital programs will be revised upwards in the latter half of 2013 predicated on continued foreign investment, improved access to capital for producers, stability in crude oil pricing and a narrowing of differentials and further clarity on future liquid natural gas ("LNG") export facility developments. There have been a number of recent positive developments for oilfield activity in the Western Canadian Sedimentary Basin ("WCSB") including the approval of the Nexen/CNOOC and Progress/PETRONAS transactions and the Encana/PetroChina Joint Venture in the Duvernay play. The Canadian Association of Oilwell Drilling Contractors is forecasting a 6% year over year decrease in well counts and drilling operating days in the WCSB. Despite the flat well count, average well depth is expected to continue to increase and the total of metres drilled in the WCSB is expecting to climb from 2012. In the United States, drilling activity peaked in the first quarter of 2012 and weakened over the course of the year as producers high graded development programs, in general shifting from natural gas drilling to crude oil plays. Expectations are for the U.S. land rig count to trough at some point in early 2013 with improvement in subsequent quarters.

Secure's continued investment in new facilities in Canada and the United States in 2012 provides a basis for continued growth into 2013. Secure recently announced a 2013 capital expenditure program of $155.0 million. $15.0 million is carry over capital from 2012 projects related to the Judy Creek and Rocky FSTs. The Rocky FST and the Judy Creek FST are expected to be completed in the second quarter of 2013. $115.0 million is allocated to PRD growth initiatives including three FSTs, two SWDs and one landfill. The Corporation has started development of new Alberta SWDs at Edson and Kabob in the fourth quarter of 2012 and is in the planning stages of initiating new SWD projects at Keene and Stanley in North Dakota. All of these SWDs will be assessed for conversion to FST facilities pending regulatory approval and customer demand. It is expected that the majority of other PRD capital initiatives for 2013 will not have any material cash flow impact until 2014, which is typical considering the approval and construction timelines for these types of facilities. The DS division's growth initiatives include adding $15.0 million of solids control equipment allocated evenly between Canada and the United States. Secure's strong balance sheet has sufficient capacity to fund its capital program. The Corporation plans to fund the 2013 capital program through operating cash flow and available credit facilities. In addition to growth through capital projects, Secure expects market expansion attributed to increased demand for the Corporation's integrated service offerings through all stages of the value chain. Due to tighter regulatory and environmental standards, it is expected that producers will increasingly outsource their waste and water disposal needs as oil and gas by-products continue to increase. Secure's full-suite of services will continue to serve an existing and growing network of customers seeking end-to-end solutions for their waste handling needs.

The Corporation's focus on organic growth opportunities is complemented by strategic acquisitions as a way to expedite market presence in key areas. The IDF and DRD acquisitions in the third quarter of 2012 demonstrate how the Corporation capitalized on opportunities to gain an immediate presence in new market areas in the United States. The Corporation's primary goal is to exceed expectations of oil and gas producers by providing innovative, efficient and environmentally responsible fluid and solid solutions. In 2013, the Corporation will continue to look to expand through accretive acquisition opportunities that align with Corporation's value chain.

The organic growth and expansion capital budget detailed above will enhance our competitive positioning and expands our service offering in both Canada and the US. The diversity of Secure's asset base lessens the impact of drilling related revenue streams in favour of production related services. Secure has a focused strategy of constructing and expanding facilities and services in key under-serviced and capacity constrained markets. A solid balance sheet provides the leverage and flexibility to execute this strategy.

FINANCIAL STATEMENTS AND MD&A

The consolidated financial statements and MD&A of Secure for the three and twelve months ended December 31, 2012 are available immediately on Secure's website at www.secure-energy.ca. The consolidated financial statements and MD&A will be available tomorrow on SEDAR at www.sedar.com.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this document constitute "forward-looking statements" and/or "forward- looking information" within the meaning of applicable securities laws (collectively referred to as forward-looking statements). When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "continues", "maintains", "target" and similar expressions, as they relate to Secure, or its management, are intended to identify forward-looking statements. Such statements reflect the current views of Secure with respect to future events and operating performance and speak only as of the date of this document. In particular, this document contains forward-looking statements pertaining to: general market conditions; the oil and natural gas industry; activity levels in the oil and gas sector, including drilling levels; commodity prices for oil, natural gas liquids and natural gas; demand for the Corporation's services and the factors contributing thereto; expansion strategy; the 2013 capital budget, the allocation between the PRD and DS divisions and the factors contributing thereto and the intended use thereof; debt service; capital expenditures; completion of facilities; future capital needs; access to capital; acquisition strategy; the Corporation's capital spending on the Rocky Mountain House and Judy Creek, Alberta full service terminals and the timing of completion thereof; the capital spending on the at Saddle Hills, Alberta and the timing for completion thereof; the capital spending on the stand alone water disposal facilities at Kabob and Edson, Alberta and the timing of the completion thereof; the capital spending on the stand alone water disposal facilities at Keene and Stanley, North Dakota and the timing of the completion thereof; the amount of the Corporation's asset retirement obligations and the timing thereof; and oil purchase and resale revenue.

Forward-looking statements concerning expected operating and economic conditions are based upon prior year results as well as assumptions that increases in market activity and growth will be consistent with industry activity in Canada, the United States, and internationally and growth levels in similar phases of previous economic cycles. Forward-looking statements concerning the availability of funding for future operations are based upon the assumption that the sources of funding which the Corporation has relied upon in the past will continue to be available to the Corporation on terms favorable to the Corporation and that future economic and operating conditions will not limit the Corporation's access to debt and equity markets. Forward-looking statements concerning the relative future competitive position of the Corporation is based upon the assumptions that economic and operating conditions, including commodity prices, crude oil and natural gas storage levels, interest rates, the regulatory framework regarding oil and natural gas royalties, environmental regulatory matters, the ability of the Corporation and its subsidiary to successfully market their PRD (as defined herein) services in the Western Canadian Sedimentary Basin ("WCSB") and North Dakota and their DS division (as defined herein) in the Western Canadian Sedimentary Basin, the Rocky Mountain region (consisting of Colorado, Wyoming, Montana and Utah) and North Dakota will lead to sufficient demand for the Corporation and its subsidiaries' services including demand for oilfield services for drilling and completion of oil and natural gas wells, that the current business environment will remain substantially unchanged, and that present and anticipated programs and expansion plans of other organizations operating in the energy service industry will result in increased demand for the Corporation's services and its subsidiary's services.

Forward- looking statements concerning the nature and timing of growth is based on past factors affecting the growth of the Corporation, past sources of growth and expectations relating to future economic and operating conditions. Forward-looking statements in respect of the costs anticipated to be associated with the acquisition and maintenance of equipment and property are based upon assumptions that future acquisition and maintenance costs will not significantly increase from past acquisition and maintenance costs. Many of these factors, expectations and assumptions are based on management's knowledge and experience in the industry and on public disclosure of industry participants and analysts relating to anticipated exploration and development programs of oil and natural gas producers, the effect of changes to regulatory, taxation and royalty regimes, expected industry equipment utilization in the WCSB, the Rocky Mountain region, North Dakota, and other matters. The Corporation believes that the material factors, expectations and assumptions reflected in the forward-looking statements and information are reasonable; however, no assurances can be given that these factors, expectations and assumptions will prove to be correct.

Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, including, but not limited to factors referred to under the heading "Risk Factors" in the Corporation's annual information form ("AIF") f or the year ended December 31, 2012 and the most recent Information Circular and quarterly reports, material change reports and news releases. The Corporation cannot assure investors that actual results will be consistent with the forward-looking statements and readers are cautioned not to place undue reliance on them.

The Corporation's actual results could differ materially from those anticipated in such forward-looking statements as a result of the risk factors set forth below and elsewhere in this document: general economic conditions in Canada and the United States; changes in the level of capital expenditures made by oil and natural gas producers and the resultant effect on demand for oilfield services during drilling and completion of oil and natural gas wells; volatility in market prices for oil and natural gas and the effect of this volatility on the demand for oilfield service generally; risks inherent in the Corporation's ability to generate sufficient cash flow from operations to meet its current and future obligations; increases in debt service charges; the Corporation's ability to access external sources of debt and equity capital; changes in legislation and the regulatory environment, including uncertainties with respect to implementing binding targets for reductions of emissions and the regulation of hydraulic fracturing services; uncertainties in weather and temperature affecting the duration of the oilfield service periods and the activities that can be completed; competition; sourcing, pricing and availability of raw materials, consumables, component parts, equipment, suppliers, facilities, and skilled management, technical and field personnel; liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas operations; ability to integrate technological advances and match advances of completion; credit risk to which the Corporation is exposed in the conduct of its business; and changes to the royalty regimes applicable to entities operating in the WCSB, the Rocky Mountain region or North Dakota. Many of these factors are discussed in further detail through this document.

Although forward-looking statements contained in this document are based upon what the Corporation believes are reasonable assumptions, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements in this document are expressly qualified by this cautionary statement. Unless otherwise required by law, Secure does not intend, or assume any obligation, to update these forward-looking statements.

Non GAAP Measures and Operational Definitions

(2) The Corporation uses accounting principles that are generally accepted in Canada (the issuer's "GAAP"), which includes, International Financial Reporting Standards ("IFRS"). These financial measures are No n- GAAP financial measures and do not have any standardized meaning prescribed by IFRS. These non-GAAP measures used by the Corporation may not be comparable to a similar measures presented by other reporting issuers. See the management's discussion and analysis available at http://www.sedar.com/ for a reconciliation of the Non-GAAP financial measures and operational definitions. These non-GAAP financial measures and operational definitions are included because management uses the information to analyze operating performance, leverage and liquidity. Therefore, these non-GAAP financial measures and operational definitions should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.





Contacts:
Secure Energy Services Inc.
Rene Amirault
Chairman, President and Chief Executive Officer
(403) 984-6100
(403) 984-6101 (FAX)

Secure Energy Services Inc.
Allen Gransch
Chief Financial Officer
(403) 984-6100
(403) 984-6101 (FAX)
www.secure-energy.ca



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