Essential Energy Services Announces Fourth Quarter and Year End Results, Sale Process for Its Colombian Operations and

Essential Energy Services Announces Fourth Quarter and Year End Results, Sale 
Process for Its Colombian Operations and Quarterly
Dividend 
CALGARY, ALBERTA -- (Marketwire) -- 03/06/13 -- Essential Energy
Services Ltd. (TSX:ESN) ("Essential" or the "Company") announces
fourth quarter EBITDA(1) of $22.4 million compared to $31.7 million
in the fourth quarter of 2011. For 2012, EBITDA(1) was $74.3 million
compared to $73.7 million for 2011. After a slower third quarter,
activity and earnings improved in the fourth quarter primarily due to
the performance of the Canadian well servicing operations. Long-term
debt at December 31, 2012 was $35.6 million. 


 
SELECTED FINANCIAL INFORMATION                                              
                                                                            
                                 Three months ended              Year ended 
                                       December 31,            December 31, 
(Thousands, except per share                                                
 amounts)                          2012        2011        2012        2011 
----------------------------------------------------------------------------
                                                                            
Revenue                      $   96,015  $  108,855  $  348,580  $  313,171 
                                                                            
Gross margin                     27,039      35,498      90,695      87,143 
  Gross margin %                     28%         33%         26%         28%
                                                                            
EBITDA(1) from continuing                                                   
 operations                      22,368      31,733      74,342      73,694 
  EBITDA %(1)                        23%         29%         21%         24%
                                                                            
Net income from continuing                                                  
 operations                  $    8,050  $   17,082  $   30,764  $   32,349 
  Per share - basic          $     0.06  $     0.14  $     0.25  $     0.32 
  Per share - diluted        $     0.06  $     0.14  $     0.25  $     0.31 
                         
                                                   
Net income (loss) from                                                      
 discontinued operations     $   (7,626) $      431  $   (8,901) $   (1,574)
                                                                            
Net income attributable to                                                  
 shareholders of Essential   $      678  $   17,559  $   22,308  $   31,122 
  Per share - basic          $     0.01  $     0.14  $     0.18  $     0.31 
  Per share - diluted        $     0.01  $     0.14  $     0.18  $     0.30 
                                                                            
Funds flow from operations                                                  
 (1)                         $   19,859  $   28,729  $   68,198  $   65,202 
                                                                            
Total assets                 $  406,853  $  421,500  $  406,853  $  421,500 
Total long-term debt         $   35,563  $   63,486  $   35,563  $   63,486 
Equity attributed to                                                        
 shareholders of Essential   $  302,411  $  288,828  $  302,411  $  288,828 
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(1) Refer to Non-IFRS Measures                                              

 
The acquisition of Technicoil Corporation ("Technicoil" or the
"Technicoil Acquisition") on May 31, 2011 impacts the 2012 fiscal
year comparison to the year ended December 31, 2011. The results for
Technicoil are not included for January to May of 2011. 
2012 HIGHLIGHTS - ESSENTIAL 
Operating Highlights for Fourth Quarter 2012 


 
--  Coil Well Service - Essential broadened its service offering by
    increasing the size of its deep coil tubing and pumper fleet as part of
    its 2012 capital program. During the quarter, Essential added one
    conventional deep coil tubing rig and five pumpers to its fleet. Deep
    coil tubing utilization, although down year-over-year, remained strong
    and considerably higher than conventional well servicing. 
--  Service Rigs - Essential experienced continued strong demand for service
    rigs working on steam-assisted gravity drainage ("SAGD") wells which
    operate on a 24 hour basis and service rigs working in northern Alberta.
    Service rig utilization improved considerably over the third quarter of
    2012. 
--  Downhole Tools & Rentals - The Tryton multi-stage fracturing system
    ("Tryton MSFS") achieved strong performance in the fourth quarter as
    experienced staff and the continued introduction of innovative technical
    solutions contributed to improved results. 

 
Operating Highlights for 2012 Year  


 
--  Coil Well Service - Essential increased the breadth and depth of its
    coil well service fleet through the Technicoil Acquisition and execution
    of its capital program. The year-over-year increase in coil well service
    revenue was due to the timing of the Technicoil Acquisition in 2011. 
--  Service Rigs - Essential increased the size of its service rig fleet
    through the nine service rigs added with the Technicoil Acquisition and
    another three rigs as part of Essential's 2012 capital program. The
    year-over-year increase in service rig revenue was due to the timing of
    the Technicoil Acquisition and service rigs working on SAGD wells. 
--  Downhole Tools & Rentals - Experienced staff and the continued
    introduction of innovative technical solutions contributed to
    Essential's strong performance in both Tryton MSFS and conventional
    tools during the year. 

 
Business Strategy Highlights 
Management further refined the operating, geographical and financial
focus of the Company by the following activities: 


 
--  In February 2012, Essential divested of its wireline operations for
    proceeds of $7.5 million. 
--  In March 2012, Essential implemented a quarterly dividend of $0.025 per
    share. 
--  In November 2012, Essential divested of five hybrid coil drilling rigs
    for proceeds of $16.8 million ($14.8 million received at closing and $2
    million received in February 2013). 
--  Essential committed to a plan to divest of its Colombian operations.
    This decision was based on the inability to secure long-term service
    contracts, inconsistent utilization and poor financial performance of
    the operation since Essential commenced commercial operations in mid-
    2011. 
--  During 2012, long-term debt was reduced from $63.5 million to $35.6
    million at December 31, 2012. Cash proceeds from the sale of the
    wireline and hybrid coil drilling rigs were used to reduce long term
    debt. 

 
Capital Spending Highlights 
2012 capital spending was focused on expanding the service
capabilities and depth capacity of Essential's coil well service and
service rig fleets. Total 2012 capital spending was $51.8 million
(consisting of $38.2 million in growth capital and $13.6 million in
maintenance capital). Essential experienced delivery delays with
equipment manufacturers resulting in $11.2 million of planned 2012
capital spending being deferred to 2013. Essential continues to focus
on investing in high demand assets in addition to maintaining and
enhancing its existing fleet. During the fourth quarter, Essential
commissioned one conventional deep coil tubing rig, two fluid pumpers
and three nitrogen pumpers. 
SALE PROCESS FOR COLOMBIAN OPERATIONS 
Essential is seeking buyers for its Colombian operations. The
decision comes after almost two years of operations in Colombia as
inconsistent utilization has hindered financial performance. The two
rod rigs and the rod rig accelerator are currently under contracts
that expire in May 2013 and June 2013. Essential will continue to
operate these assets until the contracts expire. Essential does not
intend to operate any of the other equipment while it seeks a buyer. 
For 2012, Essential reported a net loss related to Colombian
operations of $8.9 million, including the revaluation of assets. This
is detailed under "Discontinued Operations". 
In late 2010, Essential sent to Colombia a small fleet of primarily
shallow-focused well servicing equipment that was underutilized in
Canada. In the second quarter of 2011, Essential commenced operations
in the mid-Magdalena basin. The Company currently has two coil tubing
rigs, two nitrogen pumpers, two service rigs, two rod rigs, one rod
rig accelerator and support equipment in Colombia. 
The operations in Colombia are immaterial to Essential's primary
focus on well servicing in the Western Canadian Sedimentary Basin
with coil tubing, service rigs and downhole tools and rentals. 
The plan to sell the Colombia operations resulted in various changes
to the presentation of financial information for the current year and
comparative periods. The operating results and cash flows from
continuing operations do not include the results of the Colombian
operations. Operating results for the Colombian operations have been
reclassified as discontinued operations and cash flows have been
reclassified as net cash flows incurred by discontinued operations. 
INDUSTRY OVERVIEW 
During the year, the Canadian oil and gas industry faced uncertainty
surrounding macroeconomic factors in the United States and Europe,
volatile crude oil prices and increasing crude oil price
differentials. During 2012, the price differential for Western
Canadian Select ("WCS") crude oil compared to the West Texas
Intermediate ("WTI") benchmark fluctuated between US$14/bbl at the
beginning of the year to US$42/bbl in December, primarily due to
distribution and pipeline constraints. These factors contributed to
exploration and production ("E&P") companies deferring or curtailing
2012 capital spending programs which reduced activity in the WCSB. 
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. 
Drilling rig utilization during 2012, as reported by the Canadian
Association of Oilwell Drilling Contractors ("CAODC"), was below the
3 year average utilization and well below 2011 utilization in the
latter part of the year due to the industry slowdown. Average
drilling rig utilization was down 28% quarter-over-quarter and 16%
year-over-year compared to 2011. The CAODC also reported that 2012
well completion activity was down 20% quarter-over-quarter and 17%
year-over-year compared to 2011. Drilling rig utilization and
completion activity levels are indicators of overall oilfield
activity levels in the WCSB. 


 
SEGMENT RESULTS - WELL SERVICING - CANADA                                   
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                                 Three months ended              Year ended 
                                       December 31,            December 31, 
(Thousands)                        2012        2011        2012        2011 
----------------------------------------------------------------------------
                                                                            
Revenue                                                                     
  Coil Well Service(i)       $   41,228  $   43,945  $  136,196  $  104,296 
  Service Rigs                   23,133      25,060      83,351      79,508 
  Other (ii)                      3,665       7,735      23,911      20,615 
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Total revenue                    68,026      76,740     243,458     204,419 
                                                                            
Operating expenses               48,564      50,505     182,655     144,670 
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Gross margin                 $   19,462  $   26,235  $   60,803  $   59,749 
  Gross margin %                     29%         34%         25%         29%
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Utilization (iii)                                                           
----------------------------                                                
  Deep Coil Tubing Rigs                                                     
    Utilization                      95%        111%         77%         99%
    Operating hours              22,777      23,524      71,576      53,675 
                                                                            
  Service Rigs                                                              
    Utilization                      54%         59%         50%         52%
    Operating hours              27,310      31,005     101,313     101,145 
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(i)   Includes revenue from coil tubing rigs, nitrogen and fluid pumpers and
      other ancillary equipment.                                            
(ii)  Other revenue includes rod rigs and hybrid drilling rigs. Hybrid      
      drilling rigs were disposed of on November 15, 2012.                  
(iii) Utilization is calculated on a 10 hour day.                           

 
Coil well service revenue decreased during the fourth quarter as
compared to the same period in the prior year, however the decrease
was significantly less than the quarter-over-quarter reduction in
industry drilling and completion activity. Masted coil tubing revenue
was approximately the same quarter-over-quarter but conventional coil
tubing revenue was down particularly in southern Alberta. Coil well
service revenue also included a quarter-over-quarter increase in
pumper revenue as Essential operated an expanded pumper fleet during
the quarter. Masted coil tubing is primarily focused on completion
work, while conventional coil tubing is more evenly balanced between
completion and production work. Revenue per hour for coil well
service equipment was similar to the comparative quarter of the prior
year. 
During the fourth quarter of 2012 there was strong utilization for
service rigs operating 24 hours on SAGD wells and service rigs
working in northern Alberta. Overall service rig revenue was lower in
the fourth quarter of 2012 compared to the same period in 2011,
primarily due to reduced customer spending and lower activity in
specific operating areas including Drayton Valley, Brooks and Fort St
John. Revenue per hour in the fourth quarter increased due to the mix
of services provided, in particular the increase in SAGD work and
associated rentals. 
Other revenue was down quarter-over-quarter due to the drilling rig
operation sold in November 2012. 
Compared to the same period in the prior quarter and year, gross
margin percentage was negatively impacted by lower utilization and
higher operating costs. Delays in anticipated delivery of new deep
coil tubing rigs and support equipment cont
ributed to increased
labour costs. 
Well Servicing revenue increased in 2012 compared to the prior year
due to the Technicoil Acquisition. Gross margin remained relatively
unchanged year-over-year, but higher 2012 revenue was offset by
increased labour costs in the second half of the year which led to a
reduction in gross margin as a percentage of revenue. Delays in
equipment deliveries meant that Essential absorbed the additional
cost of hiring and training coil well service staff required to
operate new equipment in 2012 without a corresponding increase in
revenue. Labour costs were further impacted during the year by
periods of volatile utilization as Essential chose to retain staff
during these periods in preparation for the winter drilling season.
In 2012, Essential also incurred the cost of completing the annual
maintenance program for equipment acquired in the Technicoil
Acquisition, whereas in 2011 this work was completed prior to closing
the Technicoil Acquisition. 


 
SEGMENT RESULTS - DOWNHOLE TOOLS & RENTALS - CANADA                         
----------------------------------------------------------------------------
                                                                            
                                 Three months ended              Year ended 
                                       December 31,            December 31, 
(Thousands)                        2012        2011        2012        2011 
----------------------------------------------------------------------------
                                                                            
Revenue                                                                     
  Downhole Tools & Rentals   $   27,989  $   27,464  $  103,440  $   95,780 
  Other(i)                            -       4,651       1,682      12,972 
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Total revenue                    27,989      32,115     105,122     108,752 
                                                                            
Operating expenses               18,115      21,478      69,717      76,335 
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Gross margin                 $    9,874  $   10,637  $   35,405  $   32,417 
  Gross margin %                     35%         33%         34%         30%
                                                                            
Downhole Tools & Rentals                                                    
 Revenue- revenue % of total                                                
  Tryton MSFS                        51%         47%         48%         48%
  Conventional Tools &                                                      
   Rentals                           49%         53%         52%         52%
                                                                            
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(i) Other revenue includes wireline which was disposed of on February 2,    
    2012.                                                                   

 
Essential's downhole tools & rentals business focuses on oil and
liquids-rich natural gas plays by providing production and completion
tools and rentals for horizontal and vertical wells. Operations for
this segment are well placed geographically across many of the active
oil plays in the WCSB. 
During the fourth quarter, the Company successfully broadened its
Tryton MSFS product line by offering innovative, lower cost technical
solutions to customers looking to minimize horizontal well completion
costs. The new Tryton MSFS tools are well suited to work in shallow,
low pressure well conditions. Demand for the Tryton MSFS product line
and sustained demand for conventional downhole tools & rentals,
allowed Essential to increase revenue on a quarter-over-quarter basis
despite a decrease in industry drilling and completion activity. 
Through continued efforts to develop innovative technical solutions
to meet customer needs, Essential was able to increase revenue in
2012 compared to 2011 despite a slowdown in industry activity. 
Revenue growth was proportional across both the Tryton MSFS and
conventional tool & rental operations. The reduction in other revenue
compared to the prior quarter and year was due to the disposal of the
wireline business in February 2012. 
Gross margin as a percentage of revenue increased on both a quarterly
and annual basis due to tool procurement efficiencies and the
disposal of the wireline business which historically generated lower
margins compared to the ongoing operations of the segment. 


 
GENERAL AND ADMINISTRATIVE                                                  
----------------------------                                                
                                                                            
                                 Three months ended              Year ended 
                                       December 31,            December 31, 
(Thousands)                        2012        2011        2012        2011 
----------------------------------------------------------------------------
                                                                            
General and administrative                                                  
 expenses                        $4,671      $3,765     $16,353     $13,449 
  As a % of revenue                   5%          3%          5%          4%
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General and administrative expenses are comprised of wages,
professional fees, office space and other administrative costs
incurred at the corporate and operations level. General and
administrative expenses were higher in the fourth quarter due to the
increased number of staff, wage costs and increased infrastructure
costs. Year-over-year general and administrative expenses were higher
due to the increased size of the Company's operations and timing of
the Technicoil Acquisition. 
DISCONTINUED OPERATIONS  
Essential has committed to a plan to seek buyers for its Colombian
operations. This resulted in a reclassification of revenue and
expenses, as well as the assets and liabilities, of the Colombian
operations to "Discontinued Operations" and "Assets and Liabilities
Held for Sale", respectively. Essential expects that the Colombian
operations will be acquired by a buyer who intends to operate in
Colombia. The Company estimates it will incur approximately $1.0
million to dispose of its Colombian operations, of which $0.3 million
has been accrued at December 31, 2012. 
Loss from discontinued operations related to the Colombian business
is as follows: 


 
                                                                            
                                 Three months ended              Year ended 
                                       December 31,            December 31, 
(Thousands)                        2012        2011        2012        2011 
----------------------------------------------------------------------------
                                                                            
Revenue                      $    1,032  $    2,047  $    5,275  $    4,043 
Expenses                          2,475       2,158       8,148       6,159 
Disposal costs                      300           -         300           - 
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Loss before income taxes         (1,743)       (111)     (3,173)     (2,116)
Deferred income tax expense                                                 
 (recovery)                       1,745        (542)      1,590        (542)
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Income (loss) from                                                          
 discontinued operations         (3,488)        431      (4,763)     (1,574)
                                                                            
Loss on revaluation of                                                      
 discontinued operations         (4,138)          -      (4,138)          - 
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Net income (loss) from                                                      
 discontinued operations     $   (7,626) $      431  $   (8,901) $   (1,574)
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Loss per share from                                                         
 discontinued operations                                                    
  Basic                      $    (0.06) $     0.00  $    (0.07) $    (0.02)
  Diluted                    $    (0.06) $     0.00  $    (0.07) $    (0.02)
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                                                          Year ended        
                                                          December 31,      
(Thousands)                                               2012         2011 
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Net cash flows from (incurred by) discontinued                              
 operations:                                                                
Operating                                          $       412  $     1,674 
Investing                                                 (654)      (1,597)
Financing                                                 (766)         756 
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                                                   $    (1,008) $       833 
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Despite operating for a full twelve months in 2012, compared to only
the last half of 2011, revenue was only moderately higher in 2012 due
to poor utilization, largely related to the service rig operations.
Operating costs were higher in 2012 as Essential continued to
maintain its work force and equipment while it pursued additional
work which did not materialize. The Company also wrote off $0.4
million of accounts receivable as a bad debt expense in 2012. The
$4.8 million loss from discontinued operations also includes $1.6
million in deferred income tax expense relating to the derecognition
of deferred tax assets. 
During the fourth quarter of 2012, the loss from Colombian operations
was higher than the same period in the prior year. Fourth quarter
revenue in 2012 was lower than the prior year due to a decrease in
service rig revenue which represented approximately half of the
revenue generated in the fourth quarter 2011. Operating costs
remained relatively similar to the fourth quarter 2011 as Essential
continued to incur the cost of maintaining its operations as it
pursued new contracts. 
Essential plans to continue to operate a down-sized operation of two
rod rigs until the business is sold or until its contractual
obligations with customers expire during the second quarter of 2013. 
The following table represents the balances that have been
reclassified on the consolidated balance sheet as assets and
liabilities held for sale:  


 
                                                                       As at
                                                                December 31,
(Thousands)                                                             2012
----------------------------------------------------------------------------
                                                                            
Assets held for sale:                                                       
  Cash                                                         $         261
  Trade and other receivables                                            868
  Inventories                                                            153
  Prepayments                                                            273
  Property and equipment                                               6,585
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                                                               $       8,140
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                                                                       As at
                                                                December 31,
                                                                        2012
----------------------------------------------------------------------------
                                                                            
Liabilities held for sale:                                                  
  Trade and other payables                                     $       1,731
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                                                               $       1,731
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At December 31, 2012, the Colombian assets and liabilities have been
classified as assets and liabilities held for sale, respectively, and
treated as discontinued operations. Assets held for sale is comprised
primarily of oilfield service equipment that Essential imported into
Colombia in 2010. The equipment has been revalued to its estimated
net realizable value which resulted in a $4.1 million loss on
revaluation in 2012. 


 
FINANCIAL RESOURCES AND LIQUIDITY                                           
                                                                            
WORKING CAPITAL                                                             
---------
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                                                December 31,   December 31, 
(Thousands)                                             2012           2011 
----------------------------------------------------------------------------
                                                                            
Current assets                                 $      95,840  $     105,925 
Current liabilities, excluding current portion                              
 of long-term debt                                   (37,594)       (45,496)
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Working capital                                $      58,246  $      60,429 
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Working capital ratio                                  2.5:1          2.3:1 
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Credit Facility  
Essential's Credit Facility with its banking syndicate is comprised
of a $100 million revolving term loan facility with a $35 million
accordion feature available on lender's consent. The revolving term
loan facility matures on May 30, 2014, is renewable at the lender's
consent and is secured by a general security agreement over the
Company's assets. To the extent the revolving term loan facility is
not renewed, debt payments would be required over a two year period
based on a three year amortization schedule. At December 31, 2012,
the maximum of $100 million was available to Essential. 
As at December 31, 2012, all financial debt covenants were satisfied
and all banking requirements were up to date. Essential does not
anticipate any financial resource or liquidity issues to restrict its
future operating, investing or financing activities. On March 6,
2013, Essential had long-term debt outstanding of $36.6 million. 


 
EQUIPMENT EXPENDITURES                                                      
----------------------------                                                
                                                                            
                                 Three months ended              Year ended 
                                       December 31,            December 31, 
(Thousands)                        2012        2011        2012        2011 
----------------------------------------------------------------------------
                                                                            
  Well Servicing             $   15,231  $    9,786  $   46,799  $   37,953 
  Downhole Tools & Rentals        2,690       1,540       4,071       6,203 
  Corporate                          67         426         892       1,097 
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Total equipment expenditures     17,988      11,752      51,762      45,253 
----------------------------------------------------------------------------
                                                                            
Less proceeds on disposal of                                                
 property and equipment         (16,592)     (3,139)    (24,876)     (6,068)
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Net equipment                                                               
 expenditures(1)             $    1,396  $    8,613  $   26,886  $   39,185 
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In response to customer demand for larger, more technically advanced
equipment, Essential is building deep masted coil tubing rigs capable
of servicing long reach horizontal wells and double service rigs
capable of SAGD operations with deep well, all-period ability. 
During 2012, Essential added the following assets to its fleet: 


 
--  Three custom built, mobile free standing, all-period double service
    rigs. One of these service rigs was purpose-built to work on SAGD wells.
--  One conventional deep coil tubing rig. 
--  One deep coil tubing reel trailer. The reel trailer is a stand-alone
    unit that can carry up to 6,000 meters of 2 7/8 inch diameter coil. 
--  One deep coil tubing rig converted from an intermediate coil tubing rig.
--  Three 1,000 horse power quintiplex fluid pumpers. 
--  Three nitrogen pumpers. 

 
The delivery time of certain equipment scheduled in 2012 suffered
delays from equipment manufacturers. As a result $11.2 million of
capital spending related to this equipment was deferred until 2013
when Essential expects it will take delivery of: 


 
                                                    Expected In-Service Date
                                           Quantity                     2013
----------------------------------------------------------------------------
                                                                            
Deep masted coil tubing rigs                      4              Q3(2),Q4(2)
Deep coil tubing rig converted from                                         
 intermediate                                     1                       Q1
Nitrogen pumpers                                  2                   Q1, Q4
Double service rigs - Custom built, mobile                                  
 free standing, all-period                                                  
(three of these are purpose-built for SAGD                                  
 wells)                                           5         Q1(2), Q2, Q3(2)
----------------------------------------------------------------------------

 
Essential classifies its equipment expenditures as growth capital(1),
maintenance capital(1), and infrastructure capital(1). The latter
category includes information systems, operational facilities and
leasehold improvements. Comparative equipment expenditures are as
follows: 


 
                                  Three months ended              Year ended
                                        December 31,            December 31,
(Thousands)                           2012      2011        2012        2011
----------------------------------------------------------------------------
                                                                            
  Growth capital(1)          $    16,251 $     9,496 $    38,169   $  30,478
  Maintenance capital(1)           1,372       1,743      12,195      13,068
  Infrastructure capital(1)          365         513       1,398       1,707
----------------------------------------------------------------------------
Total equipment expenditures $    17,988 $    11,752 $    51,762   $  45,253
----------------------------------------------------------------------------
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OUTLOOK 
After the industry slowdown experienced in the latter half of 2012,
activity in early 2013 has increased for the winter drilling season.
Drilling rig utilization, which can be viewed as a barometer of well
completion activity, increased from an average of 44% in the fourth
quarter of 2012 to 66% in the first two months of 2013. Demand for
Essential's services, those related to completion, as well as
production, have increased, and to-date activity is stronger than the
fourth quarter of 2012. That being said, as demonstrated by industry
service rig and drilling rig utilization, activity is slower than it
was a year ago. As always, the strength of the first quarter is also
dependent on the timing of spring breakup as that will impact the
duration of the busy winter drilling season. 
Looking beyond spring break-up, it is difficult to assess oilfield
service demand for the last half of 2013. The concerns that slowed
E&P spending in the latter half of 2012 remain unresolved. Global
economic concerns are still prevalent, impacting the stability of oil
prices, and there is no short-term solution for the oil price
differential. Infrastructure projects are underway that could narrow
the differential towards the end of 2013 and into 2014. As this
impacts the net cash flow of E&P producers, it impacts the demand for
oilfield services. And, as has been the case for the past few years,
natural gas storage remains high, pricing remains low and investment
in natural gas production remains low. 
Looking beyond 2013, there is growing optimism with the recent
increase in foreign capital and joint venture activity in the WCSB to
develop some of the more difficult and ultimately service intensive
natural gas plays including the Duvernay, Horn River and Montney. In
addition, if the recently announced liquefied natural gas ("LNG")
projects on the west coast of Canada come to fruition, this should in
turn increase the demand for oilfield services to supply natural gas
to those facilities. 
Essential's $45 million equipment expansion program for 2013 will add
significant growth to Essential's core service offerings in high
demand deep coil tubing and mobile double service rigs. Essential
expects to add four new deep masted coil tubing rigs, two nitrogen
pumpers and five service rigs. Three of the service rigs will be
focused on SAGD operations, an area of recent growth for Essential.
Although the outlook for the second half of 2013 is uncertain,
Essential is optimistic that the years beyond will require industry
fleet expansion to meet E&P spending growth. Essential will use 2013
to increase its fleet, establish and train crews, and prepare for
this significant growth opportunity. 
While the industry drilling and completion well count was down in
2012 relative to 2011, the number of completed horizontal wells
increased. We expect 2013 activity to be similar to 2012, with an
increase in the years thereafter including ongoing growth in
horizontal well development. This drives the demand for masted coil
tubing rigs and the Tryton MSFS, as both services are instrumental
for completing horizontal wells. Looking forward, deep coil tubing
and/or service rigs and downhole tools will be required to work-over
these wells to offset rapid production declines. 
Essential has a very strong balance sheet with $36.6 million of debt
outstanding on March 6, 2013 and debt to 2012 EBITDA of 0.5x. The
recent asset sales and planned sale of Colombian operations allows
management to focus entirely on the core services of well servicing
with coil tubing, service rigs and downhole tools and rentals. 
QUARTERLY DIVIDEND 
The cash dividend for the period January 1, 2013 to March 31, 2013
has been set at $0.025 per share. The dividend will be paid on April
15, 2013 to shareholders of record on March 28, 2013. The ex-dividend date is March 26, 2013. 
The fourth quarter Management's Discussion and Analysis and Financial
Statements are available on Essential's website at
www.essentialenergy.ca and on SEDAR at www.sedar.com. 


 
SUMMARY OF QUARTERLY DATA                                                   
                                                                            
($Thousands, except per         Dec 31,     Sep 30,     Jun 30,     Mar 31, 
 share amounts)                    2012        2012        2012        2012 
----------------------------------------------------------------------------
                                                                            
Well Servicing:                                                             
  Coil Well Service              41,228      33,857      18,697      42,414 
  Service Rigs                   23,133      17,465      12,815      29,938 
  Other(i)                        3,665       5,849       3,818      10,579 
----------------------------------------------------------------------------
Total well servicing             68,026      57,171      35,330      82,931 
                                                                            
Downhole Tools & Rentals(ii)     27,989      26,342      15,540      35,251 
----------------------------------------------------------------------------
                                                                            
Total revenue                    96,015      83,513      50,870     118,182 
----------------------------------------------------------------------------
                                                                            
Gross margin                     27,039      23,012       3,904      36,740 
  Gross margin %                     28%         28%          8%         31%
                                                                            
EBITDA(1)                        22,368      19,261         (42)     32,755 
  EBITDA %(1)                        23%         23%          0%         28%
                                                                            
Continuing operations                                                       
  Net income (loss)               8,050       8,343      (5,453)     19,824 
  Per share - basic and                                                     
   diluted                        $0.06       $0.07      $(0.04)      $0.16 
                                                                            
Discontinued operations                                                     
  Net income (loss)              (7,626)        371        (553)     (1,093)
                                                                            
Net income (loss)                                                           
 attributable to                                                            
 shareholders of Essential          678       8,660      (5,923)     18,893 
  Per share - basic and                                                     
   diluted                        $0.01       $0.07      $(0.05)      $0.15 
                                                                            
Total assets                    406,853     415,653     393,377     430,674 
Total long-term debt             35,563      50,474      41,198      57,238 
Equity attributable to                                                      
 shareholders of Essential      302,411     304,312     297,937     306,372 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Utilization (iii)                                                           
  Coil tubing rigs - deep            95%         79%         32%        102%
  Coil tubing rigs - other           16%         15%          7%         25%
  Pumpers                            57%         50%         33%         69%
  Service rigs                       54%         45%         34%         68%
Operating Hours                                                             
  Coil tubing rigs - deep        22,777      18,301       7,262      23,236 
  Coil tubing rigs - other        2,757       2,819       1,596       5,494 
  Pumpers                        15,328      11,919       7,504      13,865 
  Service rigs                   27,310      22,632      16,183      35,188 
Downhole Tools & Rentals - revenue % of                                     
 total                                                                      
  Tryton MSFS                        51%         52%         40%         47%
  Conventional Tools &                                                      
   Rentals                           49%         48%         60%         53%
-------------
---------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Equipment fleet (iv)                                                        
Canada                                                                      
----------------------------                                                
  Coil tubing rigs - deep            27          26          25          25 
  Coil tubing rigs - other           19          19          20          24 
  Service rigs                       55          55          53          58 
  Nitrogen pumpers                   13          10          10          10 
  Fluid pumpers                      18          16          16          15 
  Rod rigs                           14          14          14          14 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
SUMMARY OF QUARTERLY DATA                                                   
                                                                            
($Thousands, except per         Dec 31,     Sep 30,     Jun 30,     Mar 31, 
 share amounts)                    2011        2011        2011        2011 
----------------------------------------------------------------------------
                                                                            
Well Servicing:                                                             
  Coil Well Service              43,945      36,349       9,871      14,131 
  Service Rigs                   25,060      20,969       9,606      23,873 
  Other(i)                        7,735       7,148       3,526       2,206 
----------------------------------------------------------------------------
Total well servicing             76,740      64,466      23,003      40,210 
                                                                            
Downhole Tools & Rentals(ii)     32,115      33,316      17,115      26,206 
----------------------------------------------------------------------------
                                                                            
Total revenue                   108,855      97,782      40,118      66,416 
----------------------------------------------------------------------------
                                                                            
Gross margin                     35,498      31,203       3,334      17,108 
  Gross margin %                     33%         32%          8%         26%
                                                                            
EBITDA(1)                        31,733      27,570         449      13,942 
  EBITDA %(1)                        29%         28%          1%         21%
                                                                            
Continuing operations                                                       
  Net income (loss)              17,082      14,020      (5,388)      6,635 
  Per share - basic and                                                     
   diluted                        $0.14       $0.11      $(0.06)      $0.09 
                                                                            
Discontinued operations                                                     
  Net income (loss)                 431        (402)     (1,063)       (540)
                                                                            
Net income (loss)                                                           
 attributable to                                                            
 shareholders of Essential       17,559      13,678      (6,364)      6,248 
  Per share - basic and                                                     
   diluted                        $0.14       $0.11      $(0.07)      $0.09 
                                                                            
Total assets                    421,500     411,204     371,017     191,046 
Total long-term debt             63,486      79,230      63,459       7,392 
Equity attributable to                                                      
 shareholders of Essential      288,828     271,681     257,119     156,408 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Utilization (iii)                                                           
  Coil tubing rigs - deep           111%        104%         37%         85%
  Coil tubing rigs - other           30%         25%         18%         34%
  Pumpers                            71%         50%         23%         65%
  Service rigs                       59%         54%         27%         64%
Operating Hours                                                             
  Coil tubing rigs - deep        23,524      21,938       3,638       4,575 
  Coil tubing rigs - other        6,778       5,813       3,805       7,033 
  Pumpers                        13,008       9,594       2,978       4,131 
  Service rigs                   31,005      28,201      13,229      28,710 
Downhole Tools & Rentals -                                                  
 revenue % of total                                                         
  Tryton MSFS                        47%         54%         45%         42%
  Conventional Tools &                                                      
   Rentals                           53%         46%         55%         58%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Equipment fleet (iv)                                                        
Canada                                                                      
----------------------------                                                
  Coil tubing rigs - deep            25          23          23           6 
  Coil tubing rigs - other           24          25          25          26 
  Service rigs                       57          57          58          52 
  Nitrogen pumpers                   10           9           8           8 
  Fluid pumpers                      15          12           6           - 
  Rod rigs                           14          14          14          20 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i)   Other revenue included revenue from Essential's hybrid      
      drilling operation from the date it was acquired as part of 
      the Technicoil Acquisition until it was disposed of on      
      November 15, 2012.                                          
(ii)  Revenue for Downhole Tools & Rentals included revenue from  
      Essential's wireline fleet until it was disposed of on      
      February 2, 2012.                                           
(iii) Utilization is calculated using a 10 hour day for the entire
      fleet except for hybrid drilling rigs which is calculated   
      using a 24 hour day.                                        
(iv)  Fleet data represents the number of units at the end of the 
      period.                                                     
                                                                  
ESSENTIAL ENERGY SERVICES LTD.                                              
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION                               
                                                                       As at
                                                                December 31,
(Thousands)                                               2012          2011
----------------------------------------------------------------------------
                                                                            
Assets                                                                      
Current                                                                     
  Cash                                             $         -  $        164
  Trade and other accounts receivable                   71,835        85,013
  Inventories                                           20,699        17,819
  Prepayments                                            3,306         2,929
----------------------------------------------------------------------------
                                                        95,840       105,925
----------------------------------------------------------------------------
                                                                            
Non-current                                                                 
  Property and equipment                               211,304       211,764
  Intangible assets                                     36,555        44,750
  Goodwill                                              55,014        57,425
  Deferred tax assets                                        -         1,636
----------------------------------------------------------------------------
                                                       302,873       315,575
                                                                            
Assets held for sale                                     8,140             -
----------------------------------------------------------------------------
                                                                            
Total assets                                       $   406,853  $    421,500
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Liabilities                                                                 
Current                                                                     
  Bank indebtedness                                $     1,835  $          -
  Trade and other payables                              32,354        40,262
  Dividends payable                                      3,100             -
  Income taxes payable                                     305         5,234
  Current portion of long-term debt                          -        14,513
----------------------------------------------------------------------------
                                                        37,594        60,009
----------------------------------------------------------------------------
                                                                            
Non-current                                                                 
  Long-term debt                                        35,563        48,973
  Deferred tax liabilities                              29,560        23,615
----------------------------------------------------------------------------
                                                        65,123        72,588
                                                                            
Liabilities held for sale                                1,731             -
----------------------------------------------------------------------------
                                                                            
Total liabilities                                      104,448       132,597
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
Equity                                                                      
  Share capital                                        258,772       257,775
  Retained earnings                                     38,276        28,651
  Other reserves                                         5,363         2,402
----------------------------------------------------------------------------
  Equity attributable to shareholders of Essential     302,411       288,828
                                                                            
Non-controlling interest                                    (6)           75
----------------------------------------------------------------------------
Total equity                                           302,405       288,903
----------------------------------------------------------------------------
                                                                            
Total liabilities and equity                       $   406,853  $    421,500
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
ESSENTIAL ENERGY SERVICES LTD.                                              
CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME              
                                                                            
                                                        For the years ended 
                                                               December 31, 
(Thousands, except per share amounts)                     2012         2011 
----------------------------------------------------------------------------
                                                                            
Revenue                                            $   348,580  $   313,171 
                                                                            
Operating expenses                                     257,885      226,028 
----------------------------------------------------------------------------
Gross margin                                            90,695       87,143 
                                                                            
                                                                            
General and administrative expenses                     16,353       13,449 
----------------------------------------------------------------------------
                                                        74,342       73,694 
                                                                            
Depreciation and amortization                           26,325       21,548 
Share-based compensation                                 1,902        1,504 
Other expense                                            1,648        1,178 
----------------------------------------------------------------------------
Operating profit from continuing operations             44,467       49,464 
                                                                            
Transaction costs                                            -        3,018 
Finance costs                                            2,177        2,082 
----------------------------------------------------------------------------
Net income before income tax from continuing                                
 operations                                             42,290       44,364 
                                                                            
Current income tax expense                               6,567        6,349 
Deferred income tax expense                              4,959        5,666 
----------------------------------------------------------------------------
Total income tax expense                                11,526       12,015 
----------------------------------------------------------------------------
                                                                            
Net income from continuing operations                   30,764       32,349 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Loss from discontinued operations, net of tax           (4,763)      (1,574)
Loss on revaluation of discontinued operations          (4,138)           - 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Loss from discontinued operations                       (8,901)      (1,574)
----------------------------------------------------------------------------
                                                                            
Net income                                              21,863       30,775 
                                                                            
Unrealized foreign exchange gain (loss) on                                  
 discontinued operations                                 1,431         (166)
----------------------------------------------------------------------------
Other comprehensive income (loss) from                                      
 discontinued operations                                 1,431         (166)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Comprehensive income                                    23,294       30,609 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Net income (loss) attributable to:                                          
  Shareholders of Essential                        $    22,308  $    31,122 
  Non-controlling interest                                (445)        (347)
----------------------------------------------------------------------------
                                                   $    21,863  $    30,775 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Comprehensive income (loss) attributable to:                                
  Shareholders of Essential                        $    23,669  $    30,965 
  Non-controlling interest                                (375)        (356)
----------------------------------------------------------------------------
                                                   $    23,294  $    30,609 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                         For the years ended
                                                                December 31,
                                                           2012         2011
----------------------------------------------------------------------------
                                                                            
                                                                            
Net income per share from continuing operations                             
  Basic, attributable to shareholders of Essential $       0.25 $       0.32
  Diluted, attributable to shareholders of                                  
   Essential                                       $       0.25 $       0.31
                                                                            
Net income per share                                                        
  Basic, attributable to shareholders of Essential $       0.18 $       0.31
  Diluted, attributable to shareholders of                                  
   Essential                                       $       0.18 $       0.30
                                                                            
Comprehensive income per share                                              
  Basic and diluted, attributable to shareholders                           
   of Essential                                    $       0.19 $       0.30
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
ESSENTIAL ENERGY SERVICES LTD.                                              
CONSOLIDATED STATEMENTS OF CASH FLOWS                                       
                                                        For the years ended 
                                                               December 31, 
(Thousands)                                               2012         2011 
----------------------------------------------------------------------------
                                                                            
Operating activities:                                                       
                                                                            
Net income from continuing operations              $    30,764  $    32,349 
                                                                            
Non-cash adjustments to reconcile net income for                            
 the year to operating cash flow:                                           
  Depreciation and amortization                         26,325       21,548 
  Deferred income tax expense                            4,959        5,666 
  Share-based compensation                               1,902        1,504 
  Provision (recovery) for impairment of trade                              
   accounts receivable                                     (87)         473 
  Finance costs                                          2,177        2,082 
  Loss on disposal of assets                             2,158        1,580 
----------------------------------------------------------------------------
Operating cash flow before changes in working                               
 capital                                                68,198       65,202 
Change in non-cash operating working capital:                               
  Trade and other accounts receivable before                                
   provision                                            10,556      (33,339)
  Inventories                                           (2,879)      (4,933)
  Prepayments                                             (531)        (769)
  Trade and other accounts payable                      (6,420)         443 
  Current taxes payable                                 (4,822)       5,706 
----------------------------------------------------------------------------
Net cash provided by operating activities from                              
 continuing operations                                  64,102       32,310 
----------------------------------------------------------------------------
                                                                            
                                                                            
Investing activities:                                                       
  Purchase of property and equipment & intangibles     (51,762)     (45,253)
  Business acquisition                                       -      (56,582)
  Proceeds on disposal of equipment                     24,876        6,068 
---------------------------------------------------------------------
-------
Net cash used in investing activities from                                  
 continuing operations                                 (26,886)     (95,767)
----------------------------------------------------------------------------
                                                                            
Financing activities:                                                       
  Increase (decrease) in long-term debt                (27,251)      62,191 
  Proceeds on exercise of share options                    695          292 
  Dividends paid                                        (9,290)           - 
  Finance costs                                         (2,177)      (2,082)
----------------------------------------------------------------------------
Net cash (used in) financing activities from                                
 continuing operations                                 (38,023)      60,401 
----------------------------------------------------------------------------
                                                                            
Foreign exchange loss (gain) on cash held in a                              
 foreign currency                                           77           (5)
----------------------------------------------------------------------------
                                                                            
Net decrease in cash                                      (730)      (3,061)
Net increase in cash, discontinued operations                -          833 
Cash, beginning balance, discontinued operations        (1,269)           - 
Cash (bank indebtedness), beginning of the year            164        2,392 
----------------------------------------------------------------------------
Cash (bank indebtedness), end of year              $    (1,835) $       164 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Supplemental cash flow information                                          
  Cash taxes paid                                       11,506          516 
  Cash interest and standby fees paid                    1,897        1,777 
----------------------------------------------------------------------------

 
(1)Non-IFRS Measures 
Throughout this news release, certain terms that are not specifically
defined in IFRS are used to analyze Essential's operations. In
addition to the primary measures of net earnings and net earnings per
share in accordance with IFRS, Essential believes that certain
measures not recognized under IFRS assist both Essential and the
reader in assessing performance and understanding Essential's
results. Each of these measures provides the reader with additional
insight into Essential's ability to fund principal debt repayments
and capital programs. As a result, the method of calculation may not
be comparable with other companies. These measures should not be
considered alternatives to net earnings and net earnings per share as
calculated in accordance with IFRS. 
EBITDA (Earnings before finance costs, income taxes, equity taxes,
depreciation, amortization, transaction costs, non-controlling
interest earnings, losses or gains on disposal of equipment, results
of discontinued operations and share-based compensation) - This
measure is considered an indicator of Essential's ability to generate
funds flow in order to fund required working capital, service debt
and fund capital programs. 
EBITDA % - This measure is considered an indicator of Essential's
ability to generate funds flow as calculated by EBITDA divided by
revenue. 
Funds flow or funds flow from operations - This measure is an
indicator of Essential's ability to generate funds flow in order to
fund working capital, principal debt repayments and capital programs.
Funds flow or funds flow from operations is defined as cash flow from
operations before changes in non-cash operating working capital. This
measure is useful in assessing Essential's operational cash flow as
it provides cash generated in the period excluding the timing of
non-cash operating working capital. This reflects the ability of the
operations of Essential to meet the above noted funding requirements. 
Growth capital - Growth capital is capital spending which is intended
to result in incremental increases in revenue. Growth capital is
considered to be a key measure as it represents the total
expenditures on equipment expected to add incremental revenues and
funds flow to Essential. 
Maintenance capital - Equipment additions that are incurred in order
to refurbish or replace previously acquired equipment less proceeds
on the disposal of retired equipment. Such additions do not provide
incremental increases in revenue. Maintenance capital is a key
component in understanding the sustainability of Essential's business
as cash resources retained within Essential must be sufficient to
meet maintenance capital needs to replenish the assets for future
cash generation. 
Infrastructure capital - Additions that are incurred in order to
maintain the Company's business systems and operating facilities.
Such additions do not provide incremental increases in revenue. 
Net equipment expenditures - This measure is equipment expenditures
less proceeds on the disposal of equipment. Essential uses net
equipment expenditures to assess net cash flows related to the
financing of Essential's oilfield services equipment. 
ABOUT ESSENTIAL 
Essential is a growth-oriented, dividend paying corporation that
provides oilfield services to producers in western Canada for
producing wells and new drilling activity. Essential operates the
largest coil tubing well service fleet in Canada with 46 coil tubing
rigs and a fleet of 55 service rigs. Essential also sells, rents and
services downhole tools and equipment including the Tryton
Multi-Stage Fracturing System. Further information can be found at
www.essentialenergy.ca. 
FORWARD-LOOKING STATEMENTS AND INFORMATION 
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect", "anticipate",
"continue", "estimate", "objective", "ongoing", "may", "will",
"project", "should", "believe", "plans", "intends" and similar
expressions are intended to identify forward-looking information or
statements. In particular, this news release contains forward-looking
statements including expectations regarding capital spending,
in-service timing of new equipment, demand for new equipment,
expectations of future cash flow and earnings, expectations with
respect to the demand for and price of oil and liquids-rich natural
gas, expectations regarding the future areas of development in the
WCSB, the level and type of drilling activity, completion activity,
work-over activity, production activity and required oilfield
services in the WCSB, expectations regarding the business, operations
and revenues of the Company in addition to general economic
conditions, expectations regarding Essential's ability to meet the
changing needs of the WCSB market, expectations regarding the capital
spending plans of E&P companies, expectations for Essential's
positioning for the future, expectations that development of possible
LNG projects on the west coast will increase the demand for oilfield
services, expectations to sell the Colombian assets to a buyer that
will operate in Colombia, plans to operate Essential's rod rigs in
Colombia until their current contracts expire, expectations of the
net realizable value of the Colombian assets, expectations of the
disposal costs and expectations of the loss to be realized on the
sale of the Colombian assets. 
Although the Company believes that the expectations and assumptions
on which such forward-looking statements and information are
reasonable, undue reliance should not be placed on the
forward-looking statements and information because the Company can
give no assurance that such statements and information will prove to
be correct. Since forward-looking statements and information address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. 
Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include, but
are not limited to: the risks associated with the oilfield services
sector (e.g. demand, pricing and terms for oilfield services; current
and expected oil and natural gas prices; exploration and development
costs and delays; reserves discovery and decline rates; pipeline and
transportation capacity; weather, health, safety and environmental
risks); integration of acquisitions, competition, and uncertainties
resulting from potential delays or changes in plans with respect to
acquisitions, development projects or capital expenditures and
changes in legislation, including but not limited to tax laws,
royalties, incentive programs and environmental regulations; stock
market volatility and the inability to access sufficient capital from
external and internal sources; the ability of the Company's
subsidiaries to enforce legal rights in foreign jurisdictions;
general economic, market or business conditions; global economic
events; changes to Essential's financial position and cash flow; the
availability of qualified personnel, management or other key inputs;
currency exchange fluctuations; changes in political and security
stability; risks and other unforeseen conditions associated with the
sale of the Colombian business; risks associated with government
regulations and environmental health and safety matters and other
unforeseen conditions which could impact the use of equipment and
services supplied by Essential in Colombia; risks and uncertainty
related to distribution and pipeline constraints; and other
unforeseen conditions which could impact the use of services supplied
by the Company. Accordingly, readers should not place undue reliance
on the forward-looking statements. Readers are cautioned that the
foregoing list of factors is not exhaustive. 
Additional information on these and other factors that could affect
the Company's financial results are included in reports on file with
applicable securities regulatory authorities and may be accessed
through the SEDAR website (www.sedar.com) for the Company. The
forward-looking statements and information contained in this news
release are made as of the date hereof and the Company undertakes no
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws. 
FOURTH QUARTER AND YEAR END 2012 EARNINGS CONFERENCE CALL AND WEBCAST 
Essential has scheduled a conference call and webcast to begin at
10:00 am MST (12:00 pm EST) on Thursday, March 7, 2013. 
The conference call dial in numbers are 416-340-2217 or 866-696-5910,
passcode 9707065. 
An archived recording of the conference call will be available
approximately one hour after the completion of the call until April
6, 2013 by dialing 905-694-9451 or 800-408-3053, passcode 9218036. 
A live webcast of the conference call will be accessible on
Essential's website at www.essentialenergy.ca by selecting
"Investors" and "Events and Presentations". Shortly after the live
webcast, an archived version will be available for approximately 30
days. 
The TSX has neither approved nor disapproved the contents of this
news release. 
Contacts:
Essential Energy Services Ltd.
Garnet K. Amundson
President and CEO
(403) 513-7272
service@essentialenergy.ca 
Essential Energy Services Ltd.
Jeff B. Newman
Chief Financial Officer
(403) 513-7272
service@essentialenergy.ca 
Essential Energy Services Ltd.
Karen Perasalo
Investor Relations
(403) 513-7272
service@essentialenergy.ca
 
 
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