HispanicBusiness

Q1 2013 HIGHLIGHTS - ESSENTIAL

--  Coil Well Service - Essential's coil well service business experienced    strong demand for deep coil tubing and pumping services relative to the    prior year. The significant growth in revenue was attributable to    increased demand for Essential's coil well services working on the    Bakken and Montney plays. Deep coil tubing utilization of 110% increased    8 percentage points quarter-over-quarter from the prior year,    outperforming industry completion statistics which showed flat well    completion activity quarter-over-quarter.--  Service Rigs - Service rig utilization remained strong at 69% which was    consistent with 2012 performance. Demand for services remained high,    particularly for Essential's three service rigs operating 24 hours a day    on steam-assisted gravity drainage ("SAGD") wells.--  Downhole Tools & Rentals - The downhole tools & rentals segment had a    very strong first quarter as the Tryton multi-stage fracturing system    ("Tryton MSFS") benefited from continued growth quarter-over-quarter    from the new tools introduced in the latter part of 2012.--  Capital - Equipment fabricators made significant progress during the    quarter in building the equipment planned for 2013 delivery. In March    2013, Essential commissioned one mobile free standing, all-period double    service rig purpose-built to work on SAGD wells. Essential took delivery    of two nitrogen pumpers in the earlier part of the second quarter.

INDUSTRY OVERVIEW

During the first quarter of 2013, activity in the Canadian oil and gas industry was below the first quarter of 2012, but improved sequentially from the fourth quarter of 2012 as a result of the seasonally busy winter drilling period. Well completion count and drilling rig utilization, both indicators of overall oilfield service activity levels in the Western Canadian Sedimentary Basin ("WCSB"), were down year-over-year. Well completion counts were relatively flat with a 1 percentage point decline compared to 2012 and drilling rig utilization was 61% compared to 68% in 2012. Much of the uncertainty surrounding macroeconomic factors which impacted the latter part of 2012 still existed in the first quarter of 2013 as fundamentals were largely unchanged. The price differential between the Western Canadian Select ("WCS") crude oil and West Texas Intermediate ("WTI") benchmark remained high for the current quarter. 2013 activity in the first quarter benefited from a longer winter operating season due to colder weather extending beyond mid-March and sustained crude oil prices averaging above US$90/bbl.

Well service activity in the WCSB continues to be driven by horizontal drilling, completion and stimulation of oil and liquids-rich natural gas plays. The industry continues to focus on horizontal wells which typically require more investment capital and increased rig time per well due to their depth and complexity compared to conventional vertical wells.

SEGMENT RESULTS - WELL SERVICING                                                         Three months ended                                                              March 31,(Thousands of dollars, except percentages)                   2013      2012----------------------------------------------------------------------------Revenue  Coil Well Service(i)                                   $ 49,621  $ 42,414  Service Rigs (ii)                                        33,556    33,311  Other (iii)                                                   -     7,206----------------------------------------------------------------------------Total revenue                                              83,177    82,931Operating expenses                                         56,042    56,437----------------------------------------------------------------------------Gross margin                                             $ 27,135  $ 26,494  Gross margin %                                               33%       32%--------------------------------------------------------------------------------------------------------------------------------------------------------Utilization (iv)  Deep Coil Tubing Rigs    Utilization                                               110%      102%    Operating hours                                        24,765    23,236  Service Rigs    Utilization                                                69%       68%    Operating hours                                        34,364    35,188--------------------------------------------------------------------------------------------------------------------------------------------------------(i)   Includes revenue from coil tubing rigs, nitrogen and fluid pumpers and      other ancillary equipment.(ii)  Includes revenue from service rigs and rod rigs. Comparative amounts      have been reclassified to conform to current period's presentation.(iii) Other revenue included revenue from Essential's hybrid drilling      operation until it was disposed of in November 2012.(iv)  Utilization is calculated using a 10 hour day.