Pure Energy Services Ltd.
TSX : PSV

Pure Energy Services Ltd.

May 01, 2007 17:05 ET

Pure Energy-2007 First Quarter Financial Statements and M D & A

CALGARY, ALBERTA--(CCNMatthews - May 1, 2007) - Pure Energy Services Ltd. (TSX:PSV) -

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2007



PURE ENERGY SERVICES LTD.
Consolidated Balance Sheets

(Unaudited, stated in thousands of dollars)

March 31, December 31,
2007 2006
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Assets

Current
Accounts receivable $ 35,251 $ 31,153
Inventory 1,708 1,339
Income taxes recoverable - 736
Deposits and prepaid expenses 1,066 1,175
Current portion of note receivable (Note 3(b)) 1,963 2,331
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39,988 36,734

Note receivable (Note 3(b)) 3,793 4,662
Property, plant and equipment 157,860 144,467
Intangible assets 3,047 3,156
Goodwill 1,230 1,230
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$ 205,918 $ 190,249
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Liabilities and Shareholders' Equity

Current
Operating loan (Note 4) $ 11,904 $ 13,853
Accounts payable and accrued liabilities 13,683 13,055
Income taxes payable 3,382 -
Current portion of long-term debt 781 521
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29,750 27,429

Long term debt (Note 5) 25,302 13,146
Future income taxes 10,237 12,531

Shareholders' Equity

Share capital (Note 6) 106,002 106,002
Contributed surplus 1,950 1,585
Accumulated other comprehensive income 8 -
Retained earnings 32,669 29,556
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140,629 137,143
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$ 205,918 $ 190,249
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See accompanying notes to the interim consolidated financial statements.



PURE ENERGY SERVICES LTD.
Consolidated Statements of Earnings and Retained Earnings
For the three months ended March 31,

(Unaudited, stated in thousands of dollars, except per share amounts)

2007 2006
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Revenue $ 46,106 $ 42,087

Expenses
Operating 31,631 24,741
Selling, general and administrative 5,298 4,021
Depreciation and amortization 3,162 1,938
Interest on long-term debt 293 212
Other interest 196 -
Foreign exchange gain (8) (31)
Other expense (income) (116) 21
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40,456 30,902

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Income before income taxes 5,650 11,185

Income taxes
Current tax expense 4,112 3,302
Future tax expense (reduction) (2,292) 704
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1,820 4,006

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Net income 3,830 7,179

Retained earnings, beginning of period,
as previously reported 29,556 16,510

Adjustment relating to fair value accounting
of financial instrument (Note 3(b)) (717) -
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Retained earnings, beginning of period,
as re-stated 28,839 16,510
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Retained earnings, end of period $ 32,669 $ 23,689
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Earnings per share (Note 7)
Basic $ 0.24 $ 0.49
Diluted $ 0.24 $ 0.47
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See accompanying notes to the interim consolidated financial statements.



PURE ENERGY SERVICES LTD.
Consolidated Statements of Comprehensive Income and Accumulated Other
Comprehensive Income
For the three months ended March 31,

(Unaudited, stated in thousands of dollars)

2007 2006
---------------------------------------------------------------------------
Net income $ 3,830 $ 7,179

Other comprehensive income, net of tax:

Unrealized gain on translating
financial statements of self-sustaining
foreign operations 8 -

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Unrealized foreign currency translation gain 8 -

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Other comprehensive income for the period 8 -

Comprehensive income for the period $ 3,838 $ 7,179
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2007 2006
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Accumulated other comprehensive gain on
translation of foreign operations

Balance, beginning of period $ - $ -
Impact of translating financial statements
of self-sustaining foreign operations
on January 1, 2007 241 -
Unrealized loss on translation of foreign
operations during the period (233) -
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Balance, end of period 8 -
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Total Accumulated other comprehensive income $ 8 $ -
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See accompanying notes to the interim consolidated financial statements.



PURE ENERGY SERVICES LTD.
Consolidated Statements of Cash Flows
For the three months ended March 31,

(Unaudited, stated in thousands of dollars)

2007 2006
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Cash provided by (used in)
Operating activities
Net income $ 3,830 $ 7,179
Items not involving cash:
Depreciation and amortization 3,162 1,938
Future income tax expense (reduction) (2,292) 704
Stock-based compensation 365 201
Loss (gain) on sale of equipment (4) 21
Unrealized foreign exchange loss (gain) 8 (11)
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5,069 10,032
Changes in non-cash working capital
balances (Note 9) 747 (2,271)
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5,816 7,761

Investing activities
Purchases of property, plant and equipment (16,508) (18,949)
Note receivable 473 -
Intangible asset expenditures - (435)
Proceeds from the sale of equipment 161 82
Changes in non-cash working capital
balances (Note 9) (380) (83)
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(16,254) (19,385)
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Financing activities
Operating loan (1,979) -
Issuance of long-term debt 12,500 -
Repayment of long-term debt (83) (21,381)
Issue of share capital, net of issue costs - 46,305
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10,438 24,924

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Increase in cash - 13,300

Cash, beginning of period - 1,699
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Cash, end of period $ - $ 14,999
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Supplemental information (Note 9)

See accompanying notes to the interim consolidated financial statements.



PURE ENERGY SERVICES LTD.
Notes to the Consolidated Financial Statements
For the three months ended March 31, 2007 and 2006
(Unaudited, stated in thousands, except per share amounts)


1. Nature of operations

Pure Energy Services Ltd. (the "Corporation") is incorporated under the Business Corporations Act (Alberta) and provides completion and drilling related oilfield services to oil and gas exploration and development entities in the Western Canadian Sedimentary Basin and the US Rocky Mountain region.

The ability to move heavy equipment in oil and gas fields in Canada is dependent on weather conditions, whereby thawing in the spring renders many secondary roads incapable of supporting heavy equipment until the ground is dry. In addition, activity in more northern regions of Canada is accessible only in winter months where the ground is frozen enough to support the equipment. As a result of this seasonality, the Corporation's activity is traditionally higher in the first and fourth quarters of the year and lower in the second and third quarters.

2. Principles of presentation

The unaudited consolidated financial statements of the Corporation have been prepared by management in accordance with accounting principles generally accepted in Canada. These unaudited interim consolidated financial statements have been prepared following the same accounting policies and methods of application as the consolidated financial statements of the Corporation for the year ended December 31, 2006, except as disclosed in Note 3 below. The disclosures provided below are incremental to those included with the Corporation's annual consolidated financial statements. The unaudited interim consolidated financial statements and the related notes should be read in conjunction with the consolidated financial statements and the related notes for the year ended December 31, 2006.

Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end and the results of operations for the interim periods shown in these statements are not necessarily indicative of results to be expected for the fiscal year. In the opinion of management, the accompanying unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary to present fairly the consolidated results of the Corporation's operations and cash flows for the three months ended March 31, 2007 and 2006.

3. Changes in accounting policies

(a) Since the Corporation's foreign operations in the United States have matured to the extent that they no longer require day to day financial assistance, they have been reclassified from integrated to self-sustaining operations. As a result, the Corporation has prospectively changed to the current rate method of foreign currency translation from the temporal method for consolidating its US operations. The exchange gain or loss attributable to current rate translation of non-monetary and monetary items as of the date of the change has been included as part of accumulated other comprehensive income, a separate component of shareholder's equity. This change in accounting policy has resulted in a $95 reduction in foreign exchange loss for the three months ended March 31, 2007.

(b) On January 1, 2007, the Corporation adopted new Canadian accounting standards for financial instruments and other comprehensive income. Prior periods have not been restated.

Financial Instruments

The new standards require that the note receivable be measured at fair value using the effective interest method with any adjustment of the previous carrying amount recognized as an adjustment of the opening balance of retained earnings at the beginning of the fiscal year in which the standard is initially adopted. Future gains or losses are recognized when the asset is derecognized. On January 1, 2007, the note receivable was accounted for at its fair value and the carrying value was reduced by $717. The resulting loss of $717 was charged to opening retained earnings. During the three months ended March 31, 2007, the Corporation recorded interest income of $112 (2006 - $nil) which is included in other expense (income) on the Consolidated Statement of Earnings.

Other comprehensive income

The new standards require that the Corporation present a new Consolidated Statement of Comprehensive Income, which is comprised of net income and the unrealized foreign exchange gain or loss for the period related to the net investment in foreign operations. This statement has been included below the Consolidated Statements of Earnings and Retained Earnings.

4. Operating loan

The Corporation has access to a $20,000 revolving demand operating loan. Canadian dollar advances are available at either the bank's prime rate plus 0.5% or subject to availability at the bank's Bankers' Acceptance rate plus 1.75%, or in combination. US dollar advances are available with interest at the bank's US base rate plus 0.5% per annum. The loan is secured by a general security agreement.

5. Long term debt

The Corporation has a $60,000 extendible revolving term loan facility and a $5,000 non-revolving term loan facility. Advances under the extendible revolving term loan facility are available at one of the bank's prime rate plus 0.5%, or subject to availability, either at the bank's Bankers' Acceptance rate plus 1.75% or the bank's fixed rate, or in combination. The extendible revolving facility is extendible annually at the bank's option. The current extension date of this facility is February 28, 2008. Should this facility not be extended, outstanding amounts will be repayable monthly over a four-year term. The loan is secured by a general security agreement.

The non-revolving term loan facility has been advanced at the bank's prime rate plus 0.75% and is repayable monthly over fifteen years. The loan is secured by mortgages covering all of the Corporation's property.



6. Share Capital

(a) Common shares issued:

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Number of
Shares Amount
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(000's)

Balance, December 31, 2006 and March 31, 2007 15,847 $ 106,002
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(b) Escrow shares:

As at March 31, 2007, the Corporation has one million three hundred and thirty-eight thousand shares (2006 - two million eight hundred and eighty-three thousand) held in escrow that will be released over a period of time ranging from 180 days to three years from the date of closing of the initial public offering, which occurred on February 6, 2006.

(c) Stock options:

The average fair value of options issued in the first quarter of 2007 was $4.25 (2006 - $7.20) per option using the Black-Scholes option pricing model. The compensation cost to the Corporation for the three months ending March 31, 2007 and 2006 was $365 and $201, respectively.



7. Earnings per share

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Three months ended
March 31, March 31,
2007 2006
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Net income available to common shareholders $ 3,830 $ 7,179
Weighted average number of common shares 15,847 14,530

Basic earnings per share $ 0.24 $ 0.49
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Net income available to common shareholders $ 3,830 $ 7,179
Weighted average number of common shares 15,847 14,530
Dilutive effect of stock options 142 700
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Diluted weighted average number of common shares 15,989 15,230

Diluted earnings per share $ 0.24 $ 0.47
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8. Segmented information

The Corporation operates in two main industry segments which operate in two geographic areas. These segments are Completion Services and Drilling Services and provide the following services to oil and gas exploration and production companies:

- Completion Services provides logging and perforating, production testing, multiline and pressure transient analysis services which are performed on new and producing oil and gas wells; and

- Drilling Services provides contract drilling services and equipment rentals.

The segmented amounts are as follows:



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Three months ended Completion Drilling
March 31, 2007 Services Services Corporate Total
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Revenue $ 32,698 $ 13,408 $ - $ 46,106
Income (loss) before
income taxes 3,654 4,240 (2,244) 5,650
Depreciation and
amortization 2,615 547 - 3,162
Capital expenditures 13,466 3,042 - 16,508
Total assets 137,821 61,283 6,814 205,918
Goodwill 745 485 - 1,230
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Three months ended Completion Drilling
March 31, 2006 Services Services Corporate Total
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Revenue $ 31,240 $ 10,847 $ - $ 42,087
Income (loss) before
income taxes 8,312 4,297 (1,424) 11,185
Depreciation and
amortization 1,519 419 - 1,938
Capital expenditures 14,115 4,839 - 18,954
Total assets 106,322 36,300 15,495 158,117
Goodwill 745 485 - 1,230
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The Corporation operates in the following geographic locations:

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United
Three months ended March 31, 2007 Canada States Total
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Revenue $ 37,329 $ 8,777 $ 46,106
Income (loss) before income taxes 5,935 (285) 5,650
Property, plant and equipment 97,352 60,508 157,860
Goodwill 1,230 - 1,230
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United
Three months ended March 31, 2006 Canada States Total
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Revenue $ 37,143 $ 4,944 $ 42,087
Income before income taxes 10,568 617 11,185
Property, plant and equipment 88,535 15,011 103,546
Goodwill 1,230 - 1,230

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9. Supplemental cash flow information

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Three months ended
March 31, March 31,
2007 2006
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Interest paid $ 418 $ 212
Income taxes paid - 738

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Components of change in non-cash
working capital balances:
Accounts receivable $ (4,122) $ (5,198)
Inventory (377) (76)
Prepaid expenses and deposits 105 222
Accounts payable and accrued liabilities 649 136
Income taxes payable 4,112 2,562
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367 (2,354)
Change in non-cash working capital
on investing activities (380) (83)
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$ 747 $ (2,271)
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10. Comparative figures

Certain comparative figures have been reclassified to conform with the current period's financial statement presentation.


MANAGEMENT'S DISCUSSION AND ANALYSIS

The following management's discussion and analysis ("MD&A") of the consolidated financial condition and results of operations of Pure Energy Services Ltd. (the "Corporation") is dated, and has been prepared taking into consideration information available to May 1, 2007 and should be read in conjunction with the consolidated unaudited financial statements of the Corporation as at and for the three months ended March 31, 2007 and 2006 and should also be read in conjunction with the audited consolidated financial statements and MD&A for the years ended December 31, 2006 and 2005. Additional information relating to the Corporation, including the Corporation's Annual Information Form, is available on SEDAR at www.sedar.com. Unless otherwise indicated, references in this MD&A to "$" or "Dollars" are to Canadian dollars.

Overview

The Corporation is an oilfield services company and currently conducts operations in the Western Canadian Sedimentary Basin ("Canadian Operations"), and in the Rocky Mountain region of the United States ("US Operations") through its wholly-owned subsidiaries, Pure Energy Services (USA), Inc., Ross Wireline Services (2005) Ltd. and Motorworks Drilling Solutions Inc. and its partnership, Pure Energy Services Partnership (the "Partnership"). References to the "Corporation" in this MD&A refers to the Corporation and its subsidiaries and the Partnership. The Corporation currently has two operating segments, the Completion Services segment and the Drilling Services segment, which carry on business through various operating divisions. The Completion Services segment carries on business in both Canada and the United States. The Canadian Completion Services segment conducts operations in the Western Canadian Sedimentary Basin ("WCSB") and is comprised of the Production Testing division, the Logging and Perforating division, the Multiline division and the Pressure Transient Analysis division (the "Canadian Completion Services"). The US Completion Services segment conducts operations in the Rocky Mountain Region of the United States and is comprised of the Production Testing division, the Logging and Perforating division and the Fracturing division (the "US Completion Services"). The Drilling Services segment conducts operations in the WCSB and is comprised of the Quintera Drilling division and the Motorworks Rentals division.

Readers are cautioned that this MD&A contains certain forward-looking information. Please see "Forward-Looking Information" for a discussion concerning the use of such information in this MD&A.



Selected Consolidated Financial Information

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Three Months ended March 31,
($ millions, except per share amounts) 2007 2006
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(unaudited) (unaudited)
Revenue $46.1 $ 42.1
EBITDA (1) 9.3 13.3
Net income 3.8 7.2
Earnings per share
Basic $0.24 $ 0.49
Diluted $0.24 $ 0.47
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(1) EBITDA does not have a standardized meaning prescribed by GAAP.
Management believes that, in addition to net income, EBITDA is a useful
supplemental measure. EBITDA is provided as a measure of operating
performance without reference to financing decisions and income tax
impacts, which are not controlled at the operating management level.
Investors should be cautioned that EBITDA should not be construed as an
alternative to net income determined in accordance with GAAP as an
indicator of the Corporation's performance. The Corporation's method of
calculating EBITDA may differ from that of other corporations and
accordingly may not be comparable to measures used by other
corporations. Please refer to the "Non-GAAP Disclosure" for the
reconciliation to net income.


First Quarter Highlights

The Corporation's 2007 first quarter revenue increased 10% compared to the 2006 first quarter. EBITDA for the 2007 first quarter decreased 30% and net income decreased 47% as compared to the 2006 first quarter. Diluted earnings per share decreased by 49% compared to the 2006 first quarter.

WCSB activity levels experienced during the 2007 first quarter compared to the 2006 first quarter decreased significantly as indicated by a 21% decline in the Petroleum Services Association of Canada's ("PSAC") well count(1) and a 25% decline in the number of active rigs according to the Canadian Association of Oilwell Drilling Contractor's ("CAODC") rig count(2). The Canadian Completion Services segment results reflected this decline in activity with a 15% decline in overall job count and significant reductions in revenue and income before income taxes for this segment.

Reduced industry activity levels also impacted the Drilling Services segment as the Quintera Drilling division experienced a decline in rig utilization from 75% recorded during Q1 2006 to 50% recorded during Q1 2007. The impact of the decline in rig utilization was almost entirely offset by the impact of the growth in the Motorworks Rentals division. The Motorworks Rentals division's revenue increased 173% as the additional rental equipment deployed in 2006 positively impacted the segment's overall results. The Motorworks Rentals division's service facility's operations also contributed in improving margins by reducing expenses and turn-around time relating to motor servicing.

The US Rocky Mountain Region has not experienced a similar decline in activity with the Q1 2007 rig count(3) increasing 4% compared to the Q1 2006 rig. The US Production Testing division experienced a 42% growth in revenue and a seven percentage point increase in income before income taxes as a result of the revenue growth coupled with operational leverage on this division's fixed cost structure.

The US Fracturing division commenced operations in December 2006 after experiencing significant equipment manufacturing delays. An operating loss was generated by this division during the 2007 first quarter as the Corporation's fracturing sand supplier experienced operational delays; however, management is anticipating significant growth for this division during the second half of 2007 as growing customer acceptance combines with consistent deliveries of fracturing sand from the Corporation's fracturing sand supplier and the addition of the second and third fracturing spreads during the year.

(1) Source - 2007 PSAC Canadian Drilling Activity Forecast April Update

(2) Source - CAODC Average Monthly Drilling Rig Count - Western Canada

(3) Source - Baker Hughes Weekly Rotary Rig Count

(4) Source - Colorado, Oil and Gas Conservation Commission, Wyoming Oil and Gas Conservation Commission and the Utah Division of Oil, Gas and Mining

Results of Operations

Three Months Ended March 31, 2007 Compared to the Three Months Ended March 31, 2006



Canadian Completion Services
Financial Results

Three months Year-Over-Year
ended, Change
($ thousands, March 31, % of March 31, % of
unaudited) 2007 Revenue 2006 Revenue $ Percentage
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Revenue $ 23,921 100% $ 26,296 100% $ (2,375) (9)%
Expenses
Operating 16,307 68.2% 15,421 58.6% 886 6%
Selling,
general and
administrative 2,090 8.7% 1,956 7.4% 134 7%
Depreciation
and amortization 1,571 6.6% 1,203 4.6% 368 31%
Other expense 14 0.1% 21 0.1% (7) (33)%

Income before
income taxes 3,939 16.5% 7,695 29.3% (3,756) (49)%
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Canadian Completion Services Revenue

Revenue for Canadian Completion Services decreased 9% in the 2007 first quarter compared to the 2006 first quarter and was largely attributable to a 15% decline in the job count, which was partially offset by a 7% increase in revenue per job. The job count decline was most prominent in the Logging and Perforating and Multiline divisions. The job count decline is comparable to the decline in industry activity as evidenced by the PSAC well count decline of 21% and the CAODC rig count decline of 25%. An increase in average revenue per job was experienced in all three divisions, with the most significant increases occurring in the Multiline and Logging and Perforating divisions.

The Production Testing division's revenue decreased 3% as a result of a 6% job count decrease partially offset by a 2% increase in average revenue per job. This division's job count only decreased 6% despite the 21% decrease in the PSAC well count because of the division's broad customer base. The marginal increase in average revenue per job related to more work being performed during the 2007 first quarter in the northern regions of the WCSB, where the average revenue per job is higher, as compared to the 2006 first quarter.

The Multiline division's revenue and job count decreased 9% and 27% respectively, which was partially offset by a 25% increase in average revenue per job. The higher average revenue per job was a result of less lower revenue per job gauge work being performed coupled with additional charges relating to new regulatory requirements. The decrease in job count is largely related to the slow down in industry activity and the decrease in the amount of gauge work performed.

The Logging and Perforating division's revenue and job count decreased 15% and 26% respectively, which was partially offset by a 15% increase in average revenue per job. The lower job count is largely a result of the decline in industry activity and a shift towards deeper gas and oil directed drilling activity. Average revenue per job increased as a result of the pricing impact from the shift towards deeper gas and oil directed drilling activity which typically experiences higher revenue per job and lower number of jobs relative to shallow gas directed drilling activity.



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2007 First 2006 First As at
Canadian Completion Services Quarter Quarter December 31,
Unit Complement Average Ending Average Ending 2007(A) 2006
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Production Testing Division 47 47 37 37 49 46
Logging and Perforating Division 20.3 21 18 18 22 20
Multiline Division 16 16 16 16 16 16
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Canadian Completion Services Total 83.3 84 71 71 87 82
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(A) - Expected equipment capacity as at December 31, 2007 based on approved
budgets.


Canadian Completion Services Income before Income Taxes

Canadian Completion Services income before income taxes decreased 49% in the 2007 first quarter compared to the 2006 first quarter as a result of the decrease in revenue combined with the negative effect of leverage on all of the operating divisions' fixed expenses. Also contributing to the decrease in income before income taxes were increases in fuel costs, repairs and maintenance expenses and depreciation expense. Repairs and maintenance expenses increased due to the early commencement of spring repair and maintenance programs during the 2007 first quarter. The 2006 spring repairs and maintenance program did not commence until the second quarter. Depreciation expense has increased due to the capital equipment added during 2006.

The Production Testing division's income before income taxes as a percentage of revenue decreased by approximately nine percentage points due to the negative effect of leverage on fixed expenses combined with higher fuel expense, increased repair and maintenance costs as a result of an earlier spring break up, and an increase in depreciation expense.

The Logging and Perforating division's income before income taxes as a percentage of revenue decreased by approximately twelve percentage points primarily as a result of the negative effect of leverage on fixed expenses, increased repairs and maintenance expenses and an increase in depreciation expense.

The Multiline division's income before income taxes as a percentage of revenue decreased by approximately fourteen percentage points primarily as a result of the negative effect of leverage on fixed expenses, higher fuel costs, increased repairs and maintenance expenses and an increase in depreciation expense.



US Completion Services
Financial Results
Three months Year-Over-Year
ended, Change
($ thousands, March 31, % of March 31, % of
unaudited) 2007 Revenue 2006 Revenue $ Percentage
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Revenue $8,777 100% $4,944 100% $3,833 78%
Expenses
Operating 7,270 82.8% 3,681 74.5% 3,589 98%
Selling, general
and administrative 748 8.5% 330 6.7% 418 127%
Depreciation and
amortization 1,044 11.9% 316 6.4% 728 230%

Income before income
taxes (285) (3.2)% 617 12.5% (902)
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US Completion Services Revenue

Revenue increased 78% in the 2007 first quarter compared to the 2006 first quarter as a result of a significant increase in the Production Testing division's revenue and revenue generated by the Fracturing and Logging and Perforating divisions. The average rig count in the Rocky Mountain Region increased 4% indicating a marginal increase in industry activity levels during the 2007 first quarter relative to the 2006 first quarter.

The Production Testing division produced its highest quarterly revenue during the quarter with revenue and job count increasing 42% and 45% compared to Q1 2006, respectively. The job count increase was partially offset by a 2% decrease in this division's average revenue per job. The 42% job count increase is significantly higher than the 4% increase in rig count and was largely driven by solid utilization of the 6 units added since Q1 2006 representing a 40% increase in unit capacity. Average revenue per job decreased marginally as a result of a reduction in under-balanced drilling ("UBD") revenue per job which was partially offset by increases in fracturing flow-back and testing revenue per job.

The Fracturing division's revenue for the 2007 first quarter increased 255% over the 2006 fourth quarter. The Fracturing division commenced commercial operations in December 2006 and successfully completed several large, technical jobs in the 2007 first quarter. The division received delivery of the second fracturing spread near the end of the first quarter, commissioned it in April 2007 and the spread is now fully operational. Q1 2007 activity levels did not meet management's expectations due to delays in the start up of the Corporation's fracturing sand supplier's operations. Management anticipates the majority of these operational delays will be resolved during the 2007 second quarter and, as a result, the Fracturing division will begin to consistently receive commercial quantities of fracturing sand once these operational delays are resolved.

The US Logging and Perforating division's revenue for the 2007 first quarter decreased 28% compared to the 2006 fourth quarter. Management believes that the revenue growth in this division will increase as customer acceptance continues to strengthen and synergies are developed with the Fracturing division.



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2007 First 2006 First As at
US Completion Services Quarter Quarter December 31,
Unit Complement Average Ending Average Ending 2007(A) 2006
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Production Testing Division 21 21 15 15 22 21
Logging and Perforating Division 2 2 - - 2 2
Fracturing Division(B) 1 1 - - 3 1
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US Completion Services Total 24 24 15 15 27 24
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(A) - Expected equipment capacity as at December 31, 2007 based on approved
budgets.
(B) - A fracturing spread is made up of several pieces of specialized
equipment.


US Completion Services Income before Income Taxes

US Completion Services income before income taxes decreased by $0.9 million in the 2007 first quarter as compared to the 2006 first quarter as a result of the operating loss incurred by the Fracturing division, an increase in administrative expenses associated with the growth of the US corporate office in Denver, an increase in depreciation and amortization expenses, and a small operating loss incurred by the Logging and Perforating division. The increased expenses were partially offset by the significant increase in the Production Testing division's income before income taxes.

The US Production Testing division produced a quarterly record for income before income taxes during Q1 2007. This record was a result of record quarterly revenue combined with a seven percentage point increase in the division's income before income taxes as a percentage of revenue. Solid margins were generated by the production testing equipment and were partially offset by a decrease in the margins generated by the UBD equipment. The production testing equipment margins increased as a result of positive leverage on this division's fixed cost structure due to the solid utilization of the additional equipment capacity. The production testing equipment experienced decreases in salaries and wages, repairs and maintenance and other unit expenses as a percentage of revenue. These decreases were partially offset by increases in travel and accommodation and subsistence expenses. The UBD equipment margins decreased largely as a result of the reduction in UBD revenue per job.

A significant operating loss was recorded by the Fracturing division due to lower than expected revenue levels. Management expects the Fracturing division's results will significantly improve once the Corporation starts to consistently receive sufficient quantities of fracturing sand necessary to increase the utilization of the fracturing equipment.

US administrative expenses have increased as a result of growth in the administrative infrastructure required to support the current and future growth of the US operations.

Depreciation and amortization expense has increased as a result of the additional equipment deployed in US Completion Services coupled with amortization of the Fracturing and Logging and Perforating divisions' deferred pre-operating costs.



Drilling Services
Financial Results
Three months Year-Over-Year
ended, Change
($ thousands, March 31, % of March 31, % of
unaudited) 2007 Revenue 2006 Revenue $ Percentage
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Revenue $13,408 100% $10,847 100% $2,561 24%
Expenses
Operating 8,054 60.1% 5,639 52.0% 2,415 43%
Selling, general
and administrative 586 4.4% 492 4.5% 94 19%
Depreciation and
amortization 547 4.1% 419 3.9% 128 31%
Other income (19) (0.1)% - 0.0% (19)

Income before income
taxes 4,240 31.6% 4,297 39.6% (57) (1)%
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Drilling Services Revenue

Drilling Services revenue increased 24% in the 2007 first quarter compared to the 2006 first quarter largely as a result of the significant growth of the Motorworks Rentals division and a slight increase in average revenue per day for the Quintera Drilling division.

The Quintera Drilling division's average revenue per day increased by 6% during the 2007 first quarter relative to the 2006 first quarter due to an increase in ancillary revenue, which was partially offset by a decrease in drilling day rates. An average of 9.6 drilling rigs operated during the 2007 first quarter at an average utilization rate of 50% compared to an average of 6.0 drilling rigs operating during the 2006 first quarter at an average utilization rate of 75%. Utilization levels decreased largely as a result of the industry activity slowdown experienced during the quarter which is comparable to the 25% decrease in the CAODC active rig count.

The Motorworks Rentals division's revenue in the 2007 first quarter increased 173% as a result of a significant increase in utilization and equipment capacity.



----------------------------------------------------------------------------
2007 First 2006 First As at
Drilling Services Quarter Quarter December 31,
Unit Complement Average Ending Average Ending 2007(A) 2006
----------------------------------------------------------------------------

Drilling rigs 9.6 10 6 6 10 9
Mud motors 57 57 25.7 33 60 56
----------------------------------------------------------------------------
(A) - Expected equipment capacity as at December 31, 2007 based on approved
budgets.


Drilling Services Income before Income Taxes

Drilling Services income before income taxes in the 2007 first quarter marginally decreased compared to the 2006 first quarter. The marginal decrease is the result of the negative effect of leverage on the Quintera Drilling division's cost structure which was largely offset by the Motorworks Rentals division's increase in income before income taxes, despite reduced industry activity levels.

The Quintera Drilling division experienced lower utilization rates during the 2007 first quarter compared to the 2006 first quarter and, coupled with increases in wages, fuel, repairs and maintenance, subsistence and equipment rental expenses resulted in an eleven percentage point decrease in income before income taxes for the division.

The Motorworks Rentals division's income before income taxes increased by eleven percentage points despite reduced industry activity levels. Strong equipment utilization coupled with a 122% increase in the average number of mud motors operating during the quarter resulted in greater economies of scale and positive leverage on this division's fixed costs. The fully operational service facility reduced operating expenses and provided for quicker motor servicing turnaround time resulting in higher equipment utilization during the quarter.



Corporate
----------------------------------------------------------------------------
Corporate Services
Financial Results % of
Three months ended, March 31, Consolidated March 31,
($ thousands, unaudited) 2007 Revenue 2006
----------------------------------------------------------------------------
Expenses
Selling, general and
administrative $ 1,874 4.1% $ 1,243
Interest on long-term debt 293 0.6% 212
Other interest 196 0.4% -
Foreign exchange (gain) / loss (8) (31)
Other expense / (income) (111) (0.2)% -

Loss before income taxes (2,244) (4.9)% (1,424)
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Corporate Services Year-Over-Year Change
Financial Results % of
Three months ended, Consolidated
($ thousands, unaudited) Revenue $ Percentage
----------------------------------------------------------------------------
Expenses
Selling, general and administrative 3.0% $ 631 51%
Interest on long-term debt 0.5% 81 38%
Other interest 196
Foreign exchange (gain) / loss 23
Other expense / (income) (111)

Loss before income taxes 3.4% (820) 58%
----------------------------------------------------------------------------


Corporate expenses for the 2007 first quarter increased 58% compared to the 2006 first quarter relative to a 10% increase in consolidated revenue for the same comparative periods. SG&A expenses increased $631,000 or 51%, primarily as a result of higher salaries and wages expenses, an increase in professional fees related to compliance with Multilaterial Instrument 52-109 and an increase in insurance expense. A $164,000 increase in stock based compensation expense also contributed to the increase. Interest expense increased as a result of higher debt balances carried during the 2007 first quarter compared to the 2006 first quarter.

Income Tax Expense

The 2007 first quarter income tax expense provision decreased relative to the 2006 first quarter provision largely due to the decrease in income before income taxes. The current income tax expense and the future income tax recovery recorded during the quarter was a result of the 2006 Partnership income included in taxable income during the 2007 first quarter.



Capital Expenditures

----------------------------------------------------------------------------
('000's) Three months ended March 31,
2007 2006
----------------------------------------------------------------------------
Canadian Completion Services $ 1,794 $ 4,514

US Completion Services 11,224 9,346

Drilling Services 3,042 4,839

Corporate 448 250
----------------------------------------------------------------------------
Total Capital Expenditures $ 16,508 $ 18,949
----------------------------------------------------------------------------


The Canadian Completion Services 2007 first quarter capital expenditures represent the purchase of real property, payments relating to a mini-logger, and sustaining capital.

The US Completion Services 2007 first quarter capital expenditures represent payments relating to the second fracturing spread, progress payments relating to the third fracturing spread, and sustaining capital.

The Drilling Services 2007 first quarter capital expenditures represent payments relating to rigs nine and ten, and additional support equipment for the Motorworks Rentals division.

Liquidity and Capital Resources

Cash Provided by Operating Activities for the Three Months Ended March 31, 2007

Cash received for services performed exceeded cash payments related to operating expenses and interest expense during the quarter ended March 31, 2007 by $5.8 million.



Working Capital

----------------------------------------------------------------------------
($ thousands) As at March 31, 2007 As at December 31, 2006
----------------------------------------------------------------------------
Current assets $ 39,988 $ 36,734
Current liabilities 29,750 27,429
----------------------------------------------------------------------------
Working capital $ 10,238 $ 9,305
----------------------------------------------------------------------------


The increase in working capital was largely a result of the $4.1 million increase in accounts receivable, a reduction of the operating loan balance, and minor increases in other current asset balances which were offset by an increase in income taxes payable and accounts payable and accrued liabilities.

Financing

The Corporation's primary sources of financing are bank debt and equity issuances. In March 2007, the Corporation amended its loan agreement increasing the extendible revolving term loan facility from $50,000 to $60,000 and to extend the extension date under the facility to February 28, 2008, maintaining all other terms and conditions as the existing facility.

As at May 1, 2007, the Corporation had 15,847,031 common shares and 1,554,360 stock options outstanding.

The Corporation, through the conduct of its operations, has undertaken certain contractual obligations. As at March 31, 2007, the Corporation's contractual obligations were as follows:



----------------------------------------------------------------------------
Payments Due by Period
----------------------------------------------------------------------------
Contractual Less than 1 - 3 4 - 5 After
Obligations ('000's) Total 1 Year Years Years 5 Years
----------------------------------------------------------------------------
Long-term debt
obligations (1) $ 26,083 $ 781 $ 11,417 $ 10,969 $ 2,916

Purchase obligations 14,584 14,584 - - -

Operating leases 8,978 3,442 3,902 1,155 479
----------------------------------------------------------------------------
Total Contractual
Obligations $ 49,645 $ 18,807 $ 15,319 $ 12,124 $ 3,395
----------------------------------------------------------------------------
(1) Long-term debt obligations represent balances outstanding under the
extendible revolving loan facility and the non-revolving loan facility
and the obligations in the table above assumes the revolving facility
is not renewed in 2008.


Cash Requirements

----------------------------------------------------------------------------
As at March 31, 2007
----------------------------------------------------------------------------
Committed capital expenditures $ 16,644

Uncommitted capital expenditures 14,670
----------------------------------------------------------------------------

Remaining capital budget $ 31,314
----------------------------------------------------------------------------
----------------------------------------------------------------------------


The Corporation has committed to spend $16.6 million which represents the capital expenditures necessary to complete capital projects currently underway and provided for under the Corporation's capital budget. The remaining $14.7 million is uncommitted and represents projects not yet started under the Corporation's capital budget.

The Corporation has historically financed its capital expenditures with funds from operations, equity issuances and debt. As at March 31, 2007, the Corporation has available debt capacity of $38.5 million on its extendible revolving term loan facility.

Accounting Policies

The Corporation prepares its financial statements in accordance with GAAP. Except as discussed below, accounting policies have been applied consistently during all periods included in the financial statements. Certain information of the previous period has been reclassified to conform to the presentation adopted in the current year.

Change in Accounting Policy

Significant changes in economic facts and circumstances have indicated that the Corporation's foreign operations in the United States require reclassification from integrated to self-sustaining operations. The Corporation's foreign operations in the US grew significantly and will no longer require day-to-day financial assistance from the Corporation. As a result, the Corporation has prospectively changed to the current rate method of foreign currency translation from the temporal method for consolidating its US operations. The exchange gain or loss attributable to current rate translation of non-monetary and monetary items as of the date of the change has been included as part of accumulated other comprehensive income, a separate component of shareholder's equity.

Accounting Pronouncements

On January 1, 2007, the Corporation adopted the CICA's new accounting requirements for financial instruments and other comprehensive income. Under these new rules the Corporation is required to measure financial assets and liabilities at fair value and include a new section in Shareholders' Equity, called Other Comprehensive Income, to report unrealized foreign exchange gains or losses on the net investment in foreign operations.

The new rules require the note receivable to be measured at fair value using the effective interest method with any adjustment of the previous carrying amount recognized as an adjustment to opening retained earnings. Future gains or losses will be recognized as the note receivable is collected. On January 1, 2007, the note receivable was re-measured at fair value and the resulting loss of $717 was charged to opening retained earnings. During the three months ended March 31, 2007, the Corporation recorded interest income of $110 on the note which is included in other expense (income) on the consolidated statement of earnings.

Internal Controls over Financial Reporting

There have been no changes in the design of the Corporation's internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Corporation's internal controls over financial reporting during the quarter ending March 31, 2007.

Business Risks

A complete discussion on business risks faced by the Corporation may be found under "Risk Factors" in the Corporation's Annual Information Form dated March 8, 2007 which is available under the Corporation's profile at www.sedar.com.

Seasonality

Equipment utilization in the Canadian Operations is affected by weather conditions to varying degrees, with geographic location and type of service being a factor. The Canadian Operations tend to be more active during the winter months from November to March as the movement of heavy equipment is easier over frozen ground since many wellsite locations are only accessible during the winter months. The Canadian Operations typically experience the lowest levels of equipment utilization during April and May; however, field operations located in northern British Columbia and northern Alberta typically experience reduced activity levels throughout the summer months. All services provided by the Canadian Operations are affected by wet weather and road bans; however, the impact on the Drilling Services segment is typically more pronounced due to increased challenges encountered when moving drilling rigs.

The weather does not have as significant an impact on equipment utilization in the US Operations. Access to wellsite locations is not typically dependent on ground conditions in the US Rocky Mountain region. As a result, oilfield services industry activity in the US Rocky Mountain region does not tend to be seasonal in nature.

Outlook

The Canadian Completion Services and Drilling Services segments' Q1 2007 financial results were negatively impacted by reduced industry activity levels in the WCSB relative to the record activity levels experienced over the past few years. The medium term outlook is more positive for these segments as the outlook for natural gas prices has improved. However, management still anticipates that the middle six months of 2007 will be financially challenging as we expect relatively lower activity levels to persist during this time period. Management remains confident that the Canadian Completion Services and Drilling Services segments will continue to hold their own during the low activity level period and will be in a position to take advantage of any future activity increases as these operating segments are experienced and established in the market place.

The US Completion Services segment's Q1 2007 financial results were mixed. On the positive side, the Production Testing division has continued to increase revenue and margins and is now considered to be established in the US Rocky Mountain region marketplace. Management is very proud of this accomplishment. The US Completion Services segment has worked very hard taking this division from an organic start up in a new market to an established production testing service provider in the US Rocky Mountain region.

On the negative side, the growth of the Fracturing division continues to be hampered by delays - this time relating to fracturing sand supply. The latest delay negatively impacted the division's Q1 2007 financial results. That being said, the outlook for this division is more positive. The Fracturing division completed 23 jobs during the quarter despite the intermittent supply of fracturing sand. A number of these jobs were highly technical and provided the division with the opportunity to show the high quality of service the personnel and new equipment can provide to the customers in the US Rocky Mountain region. Management is seeing progress from our fracturing sand supplier with the first delivery of sand being shipped recently and is optimistic that the supplier will be able to consistently provide us with commercial quantities of sand in the near future. Management is confident the Fracturing division will start to realize the financial growth expected of it once this last piece of the puzzle is put into place.

Obviously, management has been disappointed with the equipment manufacturing and fracturing sand delivery delays experienced by the Fracturing division to date. The Corporation commenced operations in the WCSB in 2001 providing production testing and logging and perforating services. It started providing multiline services in the WCSB in 2003 and production testing services in the US Rocky Mountain region in 2004. All of these divisions have become established service providers in their respective markets. Management remains confident that the US Fracturing division will also become an established service provider in the US Rocky Mountain region.



Summary of Quarterly Results
----------------------------------------------------------------------------
($ millions, except per share amounts, 2007 2006
unaudited) Q1 Q4 Q3 Q2 Q1
----------------------------------------------------------------------------
Revenue $ 46.1 $ 34.9 $ 35.4 $ 22.9 $ 42.1
Net income / (loss) 3.8 2.8 3.3 (0.2) 7.2
Earnings / (loss) per share
Basic $ 0.24 $ 0.17 $ 0.21 $ (0.02) $ 0.49
Diluted $ 0.24 $ 0.17 $ 0.20 $ (0.02) $ 0.47
----------------------------------------------------------------------------

----------------------------------------------------------------------------
($ millions, except per share amounts, 2005
unaudited) Q4 Q3 Q2
----------------------------------------------------------------------------
Revenue $ 35.3 $ 26.7 $ 15.6
Net income / (loss) 5.7 2.9 (0.5)
Earnings / (loss) per share
Basic $ 0.47 $ 0.26 $ (0.05)
Diluted $ 0.45 $ 0.25 $ (0.05)
----------------------------------------------------------------------------


Q1 2007

- Weaker industry activity levels continued in the WCSB resulting in a reduction in revenue and operating results for the Canadian Completion Services and Drilling Services segments.

- The Drilling Services' Motorworks Rentals division substantially increased revenue due to strong equipment utilization during the quarter combined with significant growth in rental equipment capacity and its fully operational service facility.

- The Drilling Services segment added rig 10, a deeper double rig, to its rig fleet.

- The US Completions Services' Production Testing division produced record quarterly revenue and income before income taxes during the quarter.

- The US Completion Services' Fracturing division completed 23 jobs during the quarter and received delivery of its second fracturing spread. Fracturing sand delivery delays resulted in an operating loss during the quarter.

Q4 2006

- Weaker industry activity levels continued in the WCSB resulting in a reduction in revenue and operating results for the Canadian Completion Services and Drilling Services segments.

- The US Fracturing division commenced operations in December 2006 with one fracturing spread.

- Drilling Services' Motorworks Rentals division substantially increased revenue due to the significant growth in rental equipment and the opening of its service facility.

- The Canadian Completion Services segment added one mini-logger to its Logging and Perforating division and five production testing units to its Production Testing division.

- The US Completion Services segment added one production testing unit to its Production Testing division.

- The Drilling Services segment added rig 9, a deeper double rig, to its rig fleet and 21 mud motors to its drilling rental fleet.

Q3 2006

- Weaker industry activity levels, particularly in the shallow gas directed regions, were experienced in the WCSB during the quarter as a result of lower natural gas prices, reducing revenue and operating results for the Canadian Completion Services and Drilling Services segments.

- Weak operating results were experienced in the US Completion Services segment as the Production Testing division's operating results improved relative to the second quarter levels, but remained below management's expectations and the Logging and Perforating division recorded an operating loss.

- The Canadian Completion Services segment added one mini-logger to its Logging and Perforating division and three production testing units to its Production Testing division.

- The US Completion Services segment added three production testing units to its Production Testing division.

- The Drilling Services segment adds rig 8, a single rig, to its rig fleet and 2 mud motors to its drilling rental fleet.

Q2 2006

- The results for the quarter reflected the impact of spring break-up, which historically hampers activity in the Canadian Completion Services and Drilling Services segments.

- Weak operating results were experienced in the US Completion Services segment as the Production Testing division's operating results were reduced due to additional costs related to the recruitment and training of staff and an operating loss recorded by the Logging and Perforating division.

- The Canadian Completion Services segment added one production testing unit to its Production Testing division.

- The US Logging and Perforating division commenced operations with two electric line wireline units.

- The Drilling Services segment added 12 mud motors to its drilling rental fleet.

Q1 2006

- New corporate quarterly highs for revenue, EBITDA, net income and earnings per share were established, exceeding the previous record set during Q4 2005.

- Strong industry activity levels in the WCSB resulted in strong equipment utilization for an expanded equipment fleet and combined with a favourable pricing environment resulting in record financial results for the Canadian Completion Services and Drilling Services segments.

- Good utilization for an expanded US Production Testing equipment fleet resulted in improved US Completion Services financial results.

- The US Completion Services segment added two production testing units to its Production Testing division.

- The Drilling Services segment added rig 7, a single rig, to its rig fleet and 13 mud motors to its drilling rental fleet.

Q4 2005

- New corporate quarterly highs for revenue, EBITDA, net income and earnings per share were established, exceeding the previous record set during Q3 2005.

- Strong industry activity levels in the WCSB resulted in strong equipment utilization for an expanded equipment fleet and combined with a favourable pricing environment resulting in record financial results for the Canadian Completion Services and Drilling Services segments.

- The Canadian Completion Services Multiline division experienced stronger operating results as it began to make meaningful inroads into the deep critical sour market. Stronger operating results continued in fiscal 2006.

- The US Completion Services segment revenue and income before income taxes increased significantly as equipment capacity additions and strong industry activity levels combined to produce increased results.

- Motorworks Drilling Solutions Inc. was acquired during the quarter, introducing the Corporation to the Drilling Rentals business.

- The Canadian Completion Services segment added three production testing units to its Production Testing division.

- The US Completion Services segment added three production testing units to its Production Testing division.

- The Drilling Services segment added rigs 5 and 6, a single and a double rig, respectively to its rig fleet.

Q3 2005

- New corporate quarterly highs for revenue, EBITDA, net income and earnings per share were established.

- Strong industry activity levels in the WCSB resulted in strong equipment utilization for an expanded equipment fleet and combined with a favourable pricing environment resulting in record financial results for the Canadian Completion Services and Drilling Services segments.

- The US Completion Services segment revenue and income before income taxes increased significantly as equipment capacity additions and strong industry activity levels combine to produce increased results.

- The Canadian Completion Services segment added one electric line wireline unit to its Logging and Perforating division and three combination wireline units to its Multiline division.

- The US Completion Services segment added four production testing units to its Production Testing division.

Q2 2005

- The results for the quarter reflected the impact of spring break-up, which historically hampers activity in the Canadian Completion Services and Drilling Services segments. The WCSB experienced a significant amount of precipitation in June 2005 which negatively impacted the financial results for the Canadian segments during the quarter.

- The US Completion Services segment experienced an increase in utilization, recording meaningful levels of revenue and income before income taxes.

- Ross Wireline Services Ltd. was acquired during the quarter adding three slickline wireline units to the Multiline division.

- The Canadian Completion Services segment added one electric line wireline unit to its Logging and Perforating division and two production testing units to its Production Testing division.

- The US Completion Services segment added one production testing unit to its Production Testing division.

Non-GAAP Disclosure

EBITDA does not have a standardized meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other issuers. Management believes that, in addition to net income, EBITDA is a useful supplemental measure. EBITDA is provided as a measure of operating performance without reference to financing decisions and income tax impacts, which are not controlled at the operating management level. The following is a reconciliation of EBITDA, as used in this MD&A, to net income, being the most directly comparable measure calculated in accordance with GAAP.



----------------------------------------------------------------------------
Three Months ended March 31,
($ millions, except per share amounts) 2007 2006
----------------------------------------------------------------------------
(unaudited) (unaudited)

EBITDA $9.3 $ 13.3
Deduct:
Depreciation and amortization 3.2 1.9
Interest expense 0.5 0.2
Income taxes (1) 1.8 4.0
Net income (GAAP financial measure) 3.8 7.2
----------------------------------------------------------------------------
(1) Income taxes consist of current income taxes and future income taxes.


Forward-Looking Statements

Certain statements in this MD&A may constitute "forward-looking information" which involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. When used in this MD&A, such information uses such words as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate" and other similar terminology. This information reflects the Corporation's current expectations regarding future events and operating performance and speaks only as of the date of this MD&A. Forward-looking information involves significant risks and uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, including, but not limited to, the factors discussed below. Although the forward-looking information contained in this MD&A is based upon what management of the Corporation believes are reasonable assumptions, the Corporation cannot assure investors that actual results will be consistent with this forward-looking information. This forward-looking information is provided as of the date of this MD&A, and, subject to applicable securities laws, the Corporation assumes no obligation to update or revise such information to reflect new events or circumstances.

In particular, this MD&A contains forward-looking information pertaining to the following: capital expenditure programs; financing of the Corporation's activities including capital expenditures, supply and demand for oilfield services and industry activity levels, commodity prices, dependence on suppliers, dependence on personnel, collection of accounts receivable, expectations regarding market prices and costs, expansion of services in Canada and the United States and competitive conditions.

The Corporation's actual results could differ materially from those anticipated in the forward-looking information as a result of the following factors: general economic conditions in Canada and the United States; demand for oilfield services during drilling and completion of oil and natural gas wells; volatility in market prices for oil and natural gas and the effect of this volatility on the demand for oilfield services generally; competition; liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas operations; sourcing, pricing and availability of raw materials, consumables, component parts, equipment, suppliers, facilities, and skilled management, technical and field personnel; ability to integrate technological advances and match advances of competition; availability of capital; uncertainties in weather and temperature affecting the duration of the oilfield service periods and the activities that can be completed; changes in legislation and the regulatory environment, including uncertainties with respect to implementing the Kyoto Protocol; and the other factors considered under "Risk Factors" in the Corporation's Annual Information Form dated March 8, 2007 which is available under the Corporation's profile at www.sedar.com.

Contact Information

  • Pure Energy Services Ltd.
    Kevin Delaney
    President and CEO
    (403) 262-4000
    (403) 262-4005 (FAX)
    Email: kdelaney@pure-energy.ca
    or
    Pure Energy Services Ltd.
    Michael Baldwin
    Chief Financial Officer
    (403) 262-4000
    (403) 262-4005 (FAX)
    Email: mbaldwin@pure-energy.ca
    or
    Pure Energy Services Ltd.
    #300, 1010 - 1st Street S.W.
    Calgary, Alberta T2R 1K4
    Website: www.pure-energy.ca