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Secure Increases First Quarter 2013 EBITDA 22% Over the Prior Year

Secure Increases First Quarter 2013 EBITDA 22% Over the Prior Year 
CALGARY, ALBERTA -- (Marketwired) -- 05/09/13 -- Secure Energy
Services Inc. ("Secure" or the "Corporation") (TSX:SES) today
announced financial and operational results for the three months
ended March 31, 2013. The following should be read in conjunction
with the management's discussion and analysis ("MD&A"), the condensed
consolidated financial statements and notes of Secure which are
available on SEDAR at www.sedar.com. 


 
FIRST QUARTER 2013 FINANCIAL AND OPERATIONAL HIGHLIGHTS                     
                                                                            
                                             Three Months Ended             
                                                      March 31,             
($000's except share and per share                                          
 data)                                        2013         2012     % change
----------------------------------------------------------------------------
Revenue (excludes oil purchase and                                          
 resale)                                   147,122      115,426           27
Oil purchase and resale                    175,856      162,286            8
----------------------------------------------------------------------------
Total revenue                              322,978      277,712           16
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EBITDA (1)                                  39,705       32,559           22
  Per share ($), basic                        0.38         0.36            6
  Per share ($), diluted                      0.37         0.35            6
----------------------------------------------------------------------------
Net earnings                                17,758       14,977           19
  Per share ($), basic                        0.17         0.17            -
  Per share ($), diluted                      0.17         0.16            6
----------------------------------------------------------------------------
Capital Expenditures                        42,268       35,833           18
Total assets                               828,058      622,099           33
Long term borrowings                       168,353      119,002           41
----------------------------------------------------------------------------
Common Shares - end of period          104,894,191   91,196,885           15
Weighted average common shares                                              
  basic                                104,734,964   90,658,046           16
  diluted                              107,363,836   94,179,644           14
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(1) Refer to "Non GAAP measures and operational definitions"                

 
Secure's financial results for the three months ended March 31, 2013
were at all-time highs. Revenue (excluding oil purchase/resale) and
earnings before interest, taxes, depreciation and amortization
("EBITDA") increased 27% and 22% respectively over the previous high
established in the first quarter of 2012. Revenue and EBITDA
increased on a sequential basis over the fourth quarter of 2012 by
36% and 40% respectively. 
The positive results were achieved notwithstanding mixed industry
activity in the first quarter of 2013 compared to the first quarter
of 2012. The average rig count dropped 8% in Canada and 12% in the
United States countered by a 3% increase in total number of meters
drilled in the WCSB. 
The Corporation continues to develop organic opportunities with 2013
first quarter capital expenditures of $42.3 million in the
Processing, Recovery and Disposal ("PRD") and Drilling Services
("DS") division for projects in Canada and the United States. Total
assets of $828.1 million have grown 33% since March 2012. 
Subsequent to the end of the first quarter, Secure announced the
acquisition of Frontline Integrated Services Ltd. ("Frontline") for
an aggregate purchase price of $23.1 million. This strategic
acquisition brings new business lines that add to the value chain of
services by supporting and expanding the DS division's existing
environmental and project management offerings. 


 
--  RECORD REVENUE AND EBITDA 
    --  Revenue for the three months ended March 31, 2013 (excluding oil
        purchase and resale) increased 27% to $147.1 million from $115.4
        million for the three months ended March 31, 2012. PRD division
        revenue (excluding oil purchase/resale) increased 33% from the first
        quarter of 2012 to $45.4 million. Major contributing factors
        increasing first quarter revenue in the PRD division included the
        new facilities and expansions added in 2012, namely the Wild River
        stand alone water disposal facility "SWD", the full service terminal
        ("FST") expansions at Dawson Creek and Fox Creek, the Fox Creek
        landfill, additional facilities in the United States through the DRD
        Saltwater Disposal LLC ("DRD") purchase and organic addition of the
        Crosby water disposal facilities in North Dakota. Disposal volumes
        for the first quarter increased 48% mostly due to the addition of
        the US facilities and processing volumes increased 14% due to
        increased demand from drilling and production activities and
        expansion at existing facilities. Crude oil marketing revenue in the
        first quarter of 2013 increased 145% over the prior year as a result
        of an added pipeline connection, increased oil throughput and due to
        the Corporation's ability to capitalize on market spread
        differential opportunities. DS division revenue increased 25% from
        the first quarter of 2012 to $101.7 million despite mixed oil field
        service conditions experienced in the first quarter of 2013. Revenue
        increased quarter over quarter due to increased DS division serviced
        meters drilled and due to a three percentage point increase in DS's
        market share to 31% ; 
    --  Oil purchase and resale revenue in the PRD division for the three
        months ended March 31, 2013 of $175.9 million increased 8% from the
        same period in 2012. The increase resulted from the
        Drayton Valley, Silverdale and Dawson FST's being fully operational
        the first quarter of 2013 whereas they were in start-up in the first
        quarter of 2012. Overall demand also increased quarter over quarter;
        EBITDA for the three months ended March 31, 2013 increased 22% to
        $39.7 million from $32.6 million for the three months ended March
        31, 2012. EBITDA per diluted share for the three months ended March
        31, 2013 was $0.37, a 6% increase from the three months ended March
        31, 2012. Increases in revenue as discussed above and higher
        operating margins translated into improved EBITDA for Secure for the
        first quarter of 2013 as compared to the prior year period; and 
    --  Net earnings per share (basic) of $0.17 for the first quarter of
        2013 was consistent to the first quarter of 2012. Net earnings per
        share was not reflective of the increase in net earnings as the
        number of shares outstanding increased quarter over quarter; the
        number of shares increased during 2012 as the Corporation completed
        a bought deal financing and issued shares as consideration in
        certain acquisitions completed.
 
--  DIVERSIFICATION INTO NEW MARKETS AND NEW AREAS 
    --  Organic expansion and growth capital totaled $41.5 million for the
        three months ended March 31, 2013 and included $15.0 million of 2012
        carryover capital related to the Judy Creek and
        Rocky FST's. Total assets as of March 31, 2013 were $828.1 million
        compared to $622.1 million as of March 31, 2012. Major expenditures
        in the quarter included: 
        --  Judy Creek FST expected to be operational in the second quarter
            of 2013; 
        --  Rocky FST which began accepting produced water in the second
            quarter. The facility will become fully operational following
            the commissioning of the crude oil treater and the waste
            processing equipment in the second quarter of 2013; 
        --  Edson SWD, temporary facility opened in the quarter with
            construction of the permanent facility expected to commence at
            the start of the third quarter; 
        --  Kabob SWD, construction commencing in the second quarter; 
        --  Keene and Stanley water disposal facility preliminary
            construction in North Dakota; 
        --  Expansion at Drayton Valley and Fox Creek FST's with second
            treaters added; and 
        --  Various long lead purchases for 2013 PRD capital projects and
            rental equipment for DS Canada and the United States.
--  SOLID BALANCE SHEET 
    --  Secure's debt to EBITDA ratio was 1.84 as of March 31, 2013; well
        under the Corporation's credit facility covenant of 3.00; 
    --  Maintained a strong balance sheet exiting the first quarter of 2013
        with positive working capital of $106.9 million and available
        borrowings of $111.4 million; and 
    --  During the quarter the Corporation announced it would begin paying a
        monthly dividend of $0.0125 per common share commencing May 1, 2013.
        Monthly distributions amount to approximately $1.3 million. In
        conjunction with the dividend, the Corporation also announced the
        adoption of a Dividend Reinvestment Plan ("DRIP"). The DRIP provides
        eligible shareholders with the opportunity to reinvest their cash
        dividends, on each dividend payment date, in additional Common
        Shares, which will be issued from treasury. Eligible shareholders
        may elect to participate in the DRIP commencing with the May 2013
        dividend.
 
--  SUBSEQUENT EVENT 
    --  Subsequent to the three months ended March 31, 2013, the Corporation
        acquired all of the issued and outstanding shares of Frontline
        Integrated Services Ltd. ("Frontline") for an aggregate purchase
        price of $23.1 million including the issuance of $16.3 million in
        common shares of Secure. Frontline's core services include pipeline
        integrity; remediation and reclamation; and demolition and
        decommissioning performed throughout Western Canada. The Frontline
        acquisition is a continuation of Secure's strategy to add
        complementary services along the energy services value chain. The
        acquisition will support and expand the existing environmental and
        project management services of the Corporation's DS division. Going
        forward, all of Frontline's customers will now have the ability to
        receive an integrated service solution.
 
PRD DIVISION OPERATING HIGHLIGHTS                                           
                                                                            
                                            Three Months Ended              
                                                     March 31,              
($000's)                                     2013         2012      % Change
----------------------------------------------------------------------------
Revenue                                                                     
  Processing, recovery and disposal                                         
   services (a)                            45,444       34,066            33
  Oil purchase and resale service         175,856      162,286             8
                                     ---------------------------------------
  Total PRD division revenue              221,300      196,352            13
                                     ---------------------------------------
                                                                            
Operating Expenses                                                          
  Processing, recovery and disposal                                         
   services (b)                            15,418       11,862            30
  Oil purchase and resale service         175,856      162,286             8
  Depreciation, depletion, and                                              
   amortization                             9,189        6,551            40
                                     ---------------------------------------
  Total PRD division operating                                              
   expenses                               200,463      180,699            11
General and administrative                  4,959        2,648            87
                                     ---------------------------------------
Total PRD division expenses               205,422      183,347            12
                                                                            
Operating Margin (1) (a-b)                 30,026       22,204            35
Operating Margin as a % of revenue                                          
 (a)                                           66%          65%            -
----------------------------------------------------------------------------
(1) Refer to "Non GAAP measures and operational definitions"                

 
Highlights for the PRD division included: 


 
--  Revenue from processing, recovery and disposal for the three months
    ended March 31, 2013 increased 33% to $45.4 million from $34.1 million
    for the three months ended March 31, 2012. The 33% increase quarter over
    quarter relates to the following: 
    --  New facility additions and expansions subsequent to the first
        quarter of 2012 which include: the completion of the Wild River SWD
        permanent facility in the second quarter of 2012; expansion of the
        Dawson Creek facility in June 2012 to include a pipeline connection;
        the acquisition of DRD in July 2012; the completion of the Crosby
        SWD in North Dakota in December 2012; the completion of Fox Creek
        Landfill in December 2012; and the completion of the new Edson
        temporary water injection facility in January 2013; and 
    --  Increased demand for the Corporation's products and services.
        Quarter over quarter processing volumes from existing facilities
        have increased (excludes processing volumes from new facilities
        added after the first quarter of 2012).
--  Revenue from processing activity was higher as quarter over quarter
    processing volumes increased by 14%. First quarter 2013 disposal volumes
    increased by 48% over the prior year quarter. A significant portion of
    the increase relates to the addition of the new US SWD facilities (DRD
    acquisition and the completion of Crosby SWD) in North Dakota in the
    second half of 2012. Disposal volumes at existing facilities also
    increased on a quarter over quarter basis. 
--  Recovery revenue from the sale of oil recovered through waste
    processing, crude oil handling, marketing and terminalling increased by
    41% for the three months ended March 31, 2013 compared to the same
    period in 2012. The amount of recovery revenue increased as processing
    volumes related to the addition of the new facilities and expansions
    subsequent to the first quarter of 2012 as mentioned under the first
    bullet point above. A large portion of the increase in recovery revenue
    quarter over quarter is a result of the Corporation's ability to
    capitalize on crude oil marketing opportunities at its FST's. Crude oil
    marketing revenue increased by 145% for the quarter ended March 31, 2013
    compared to the same period of 2012 as a result of the Dawson FST crude
    oil pipeline connection in July 2012, increased oil throughput at
    Drayton Valley and Silverdale FST's and the Corporation's ability to
    capitalize on market spread differential opportunities throughout the
    quarter. This includes crude oil marketing opportunities available by
    shipping crude oil out by rail. 
--  Operating expenses from PRD services for the three months ended March
    31, 2013 increased 30% to $15.4 million from $11.9 million for the
    comparative period of 2012. The increase in operating expenses relates
    to the new facilities and expansions added organically, the DRD
    acquisition and due to an increase in processing volumes from existing
    facilities. Revenue for the three months ended March 31, 2013 increased
    33% which is consistent with the 30% increase in operating expenses over
    the comparable period of 2012. 
--  Operating margin as a percentage of revenue from PRD services was 66%
    for the three months ended March 31, 2013 compared to 65% for the same
    period of 2012. The increase in the operating margin quarter over
    quarter was a result of improvements in operating efficiencies at the
    facilities and through increased crude oil marketing activity from the
    Dawson FST crude oil pipeline connection and from volumes managed at the
    Silverdale FST. 
--  General and administrative ("G&A") expenses for the three months ended
    March 31, 2013 increased 87% to $5.0 million from $2.6 million in the
    comparative period in 2012. Wages and salaries increased 68% as new
    employees were hired to support growth in the PRD division in Canada and
    the United States. The establishment of the PRD divisional office in
    Denver, Colorado plus a 25% increase in building rent expenses
    contributed to the quarter over quarter increase.
 
DIVISION OPERATING HIGHLIGHTS                                               
                                                                            
                                            Three Months Ended              
                                                     March 31,              
($000's)                                     2013         2012     % Change 
----------------------------------------------------------------------------
Revenue                                                                     
  Drilling services (a)                   101,678       81,360           25 
                                                                            
Operating expenses                                                          
  Driling services (b)                     77,746       60,663           28 
  Depreciation and amortization             3,704        2,785           33 
                                     ---------------------------------------
  Total DS division operating                                               
   expenses                                81,450       63,448           28 
General and administrative                  7,255        6,728            8 
                                     ---------------------------------------
Total DS division expenses                 88,705       70,176           26 
                                                                            
Operating Margin (1) (a-b)                 23,932       20,697           16 
Operating Margin % (1)                         24%          25%          (4)
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(1) Refer to "Non GAAP measures and operational definitions"                

 
Highlights for the DS division included: 


 
--  First quarter 2013 DS divisional revenue was $101.7 million or 25%
    higher than the $81.4 million of revenue generated in the first quarter
    of 2012. Overall, the quarter over quarter increase in revenue is the
    result of an 18% increase in Canadian revenue per operating day, an
    increase in market share to 31% versus 28% in Canada and due to an
    increase in the number of meters drilled by DS. These improvements were
    despite an 8% drop in the CAODC's average rig count to 496 rigs in the
    first quarter of 2013 from the 540 average rigs working during the
    comparative period of 2012. The drop in rig count was offset by a late
    spring breakup in 2013 compared to 2012 which led to higher sustained
    demand for drilling fluids late into the quarter. The late spring
    breakup helped to keep Canadian DS division operating rig days
    relatively unchanged; DS operating days totaled 13,918 for the first
    quarter of 2013 compared to 13,875 for the first quarter of 2012. 
--  The drilling fluids service line contributed $87.4 million or 86% of
    total DS division revenue during the first quarter of 2013, compared to
    $71.3 million or 88% of total revenue in the comparative quarter of
    2012, a 23% dollar improvement. Major drivers for the revenue
    improvement in addition to those mentioned above include a higher
    proportion of activity related to SAGD wells and higher revenue in the
    U.S. as a result of the IDF acquisition. First quarter revenue per
    operating day for the drilling fluids service line in Canada increased
    to $5,815 compared to $4,919 in 2012 or an 18% increase. Increases in
    the proportion of SAGD wells helped drive the revenue per operating day
    improvement in the first quarter of 2013. SAGD wells tend to be more
    complex and require more costly drilling fluids. The first quarter of
    2013 saw an increase in the proportion of SAGD wells relative to the
    first quarter of 2012. The volumes of oil based fluids used in the first
    quarter of 2013 were consistent with the first quarter of 2012. 
--  Despite an 8% quarter over quarter decrease in Canadian rig count, the
    drilling fluid service line in Canada was able to increase its market
    share to approximately 31%, compared to 28% for the same period of 2012.
    The CAODC's average monthly rig count for Western Canada provides the
    basis for market share calculations. 
--  Operating margins for the first quarter of 2013 were $23.9 million or
    24% of revenue compared to $20.7 million or 25% in 2012. Of the 1%
    margin decrease; $0.7 million relates to lower environmental and solids
    control service lines. Environment margins decreased as a result of a
    higher proportion of flow through revenue and expenses. Solids control
    margins were impacted by lower utilization rates. Drilling fluids
    service line operating margins improved on a quarter over quarter basis
    and helped to offset environmental and solid control quarter over
    quarter decreased margins. 
--  G&A expenses for the first quarter ending March 31, 2013 were $7.3
    million compared to $6.7 million for the three months ended March 31,
    2012. The 8% increase is attributable to increases in headcount quarter
    over quarter in addition to associated costs to improve infrastructure
    and manage the growing business. G&A expenses as a percentage of revenue
    were 7% for the three months ended March 31, 2013, versus 8% for the
    same period of 2012. The most significant accounts within G&A expense
    include: salaries and benefits for office staff, professional fees,
    office leases, insurance, utilities, and communications. The increase in
    G&A is in line with management expectations.

 
OUTLOOK 
Secure posted record first quarter 2013 financial and operating
results which increased on a sequential basis over the fourth quarter
of 2012 despite a continuation of subdued industry conditions.
Producer spending was cautious in the quarter due to weak commodity
prices and oil transporting bottlenecks resulting in regional oil
price discounts. Lower producer spending is reflected in the 8%
decrease in quarter over quarter rig activity in the WCSB. Oil and
liquid price weaknesses have recently subsided and natural gas prices
have seen improvement of late as a result of higher withdrawals from
storage. This continued strength in commodity prices may lead to
improved activity as the year unfolds. Alternatives to crude
transport such as rail have also positively impacted Canadian crude
pricing. Analyst expectations are now that activity will increase in
the latter part of the year particularly in the fourth quarter. The
longer term fundamentals of the North American oil and gas market are
positive which bodes well for customer demand for the services the
Corporation offers. 
Quarter over quarter, WCSB meters drilled reported by the Canadian
Association of Oilwell Drilling Contractors increased 3% to 7.4
million which is positive to the Corporation as meters drilled is
more indicative as to volumes of drilling fluid required and produced
waters requiring processing and disposal. Higher meters drilled is a
result of more complex drilling, a move to horizontal wells and
greater lengths and depths being pursued by operators. The
Corporation anticipates the number of operating days and meters
drilled in 2013 combined with high levels of produced drilling by
products will increase demand for services at the Corporation's waste
processing and disposal facilities and in the DS division's business. 
Capital deployed for growth and expansion opportunities in the
quarter totaled $41.5 million. Consolidated Capital expenditures for
the year are expected to total $155.0 million plus $23.1 million for
the acquisition of Frontline. Both the Judy Creek and Rocky FST's are
nearing completion and it is anticipated both will become fully
operational in the second quarter. The SWD projects at Edson and
Kabob in Canada and Keene and Stanely in North Dakota are progressing
and pending customer demand and regulatory approval, will be
evaluated for conversion to FST's. The 2013 capital budget consists
of three FST's two SWD's and two landfills in Canada and the United
States for a total of $115.0 million. Although the capital
expenditures will occur in 2013, meaningful cash flow from the new
facilities is not expected until 2014. The DS division continues to
build out its solids control fleet. The fleet now includes a greater
proportion of high capacity centrifuges which are in high demand and
generate greater revenue. The DS capital budget is forecast to total
$15.0 million and is allocated equally between Canada and the United
States. 
One of the Corporation's primary objectives is to maintain and
strengthen its market position by consistently providing operational
excellence, innovative solutions and cost efficiencies to its
customers. The addition of Frontline subsequent to the end of the
quarter is an example how Secure continues to enhance its customer
value chain. Frontline is an integrated provider servicing the
energy, resource and civil construction industries. Their core
services are environmental project management and remediation and
reclamation which feed volume into Secure's fixed facilities. Their
experienced team has extensive industry experience with values that
are consistent to Secure's. Frontline generated $4.8 million of
EBITDA in 2012. 
Secure's strong balance sheet gives the Corporation flexibility to
continue growing organically and to execute on strategic acquisition
opportunities. The Corporation's diverse asset base lessens its
dependence on drilling related revenue streams in favour of
production related services. Secure has a focused strategy to
continually add and expand facilities and services in key
under-serviced and capacity constrained markets organically and via
acquisition. The Corporation recently announced the implementation of
a monthly $0.0125 per share dividend. The initiation of the dividend
reflects management's confidence in its ability to generate returns
to shareholders while continuing to invest in the Corporation's
organic capital program facilitating future growth. 
FINANCIAL STATEMENTS AND MD&A 
The condensed consolidated financial statements and MD&A of Secure
for the three months ended March 31, 2013 are available immediately
on Secure's website at www.secure-energy.ca. The condensed
consolidated financial statements and MD&A will be available tomorrow
on SEDAR at www.sedar.com. 
FORWARD-LOOKING STATEMENTS 
Certain statements contained in this MD&A 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", 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 MD&A. In particular, this MD&A
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 ("NGLs") and natural gas; the increase in
the first quarter of 2013 operating days; demand for the
Corporation's services; expansion strategy; the amounts of the PRD
and DS divisions' 2013 capital budgets 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 new Rocky Mountain House and
Judy Creek, Alberta full service terminals; capital spending on the
Kabob and Edson, Alberta SWD; the construction of landfills at Saddle
Hills and Fox Creek, Alberta; capital spending on the Keene and
Stanley water disposal facilities in North Dakota; oil purchase and
resale revenue; and the completion of the permanent facility. 
Forward-looking statements concerning expected operating and economic
conditions are based upon prior year results as well as the
assumption that increases in market activity and growth will be
consistent with industry activity in Canada, 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 are based upon the assumption 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 services and drilling and production activity in North America
will lead to sufficient demand for the Corporation's services and its
subsidiary's 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 are 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. 
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. Readers are cautioned not to
place undue reliance on these statements as 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
those factors referred to and under the heading "Business Risks" and
under the heading "Risk Factors" in the Corporation's annual
information form ("AIF") for the year ended December 31, 2012.
Although forward-looking statements contained in this MD&A 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 MD&A 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 


 
(1) 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 Non-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 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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