Pure Energy Services Ltd.
TSX : PSV

Pure Energy Services Ltd.

May 12, 2008 09:10 ET

Pure Energy-2008 First Quarter Summary Financial Statements and M D & A

CALGARY, ALBERTA--(Marketwire - May 12, 2008) -

PURE ENERGY SERVICES LTD. (TSX:PSV)

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AND

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE THREE MONTHS ENDED

MARCH 31, 2008


The following is a summary of the interim consolidated financial statements of the Corporation as at and for the three month period ended March 31, 2008 and 2007. A complete copy of the Corporation's interim consolidated financial statements is available on the Corporation's website at www.pure-energy.ca or on SEDAR at www.sedar.com.



PURE ENERGY SERVICES LTD.
Consolidated Balance Sheets

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(Unaudited, stated in thousands of dollars)

March 31, December 31,
2008 2007
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Assets

Current assets
Cash $ 3,199 $ 1,855
Accounts receivable 33,533 22,176
Inventory 2,863 2,915
Deposits and prepaid expenses 1,412 1,514
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41,007 28,460

Property and equipment 161,344 162,291
Intangible assets 2,226 2,315
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$ 204,577 $ 193,066
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Liabilities and Shareholders' Equity

Current liabilities
Operating loan $ 8,401 $ 1,380
Accounts payable and accrued liabilities 13,890 13,539
Income taxes payable 877 274
Current portion of long-term debt 333 333
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23,501 15,526

Long-term debt 40,417 40,500

Future income taxes 6,905 6,973

Shareholders' equity

Share capital 106,452 106,002

Contributed surplus 3,083 2,853


Accumulated other comprehensive loss (3,084) (4,098)
Retained earnings 27,303 25,310
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24,219 21,212

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133,754 130,067
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$ 204,577 $ 193,066
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PURE ENERGY SERVICES LTD.
Consolidated Statements of Income and Retained Earnings

For the three months ended March 31,
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(Unaudited, stated in thousands of dollars, except per share amounts)

2008 2007
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Revenue $ 46,695 $ 46,106

Expenses
Operating 34,089 31,631
Selling, general and administrative 5,297 5,298
Depreciation and amortization 3,810 3,162
Interest on long-term debt 664 293
Other interest 79 196
Foreign exchange loss (gain) 16 (8)
Other income (3) (116)
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43,952 40,456

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Income before income taxes 2,743 5,650

Income taxes
Current expense 626 4,112
Future expense (reduction) 124 (2,292)
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750 1,820

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Net income 1,993 3,830

Retained earnings, beginning of period, as
previously reported 25,310 29,556

Adjustment relating to fair value
accounting of financial instrument - (717)
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Retained earnings, beginning of period, as
re-stated - 28,839
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Retained earnings, end of period $ 27,303 $ 32,669
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Earnings per share
Basic $ 0.13 $ 0.24
Diluted $ 0.13 $ 0.24
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PURE ENERGY SERVICES LTD.
Consolidated Statements of Comprehensive Income and Accumulated Other
Comprehensive Income (Loss)

For the three months ended March 31,
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(Unaudited, stated in thousands of dollars, except per share amounts)

2008 2007
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Net income $ 1,993 $ 3,830

Other comprehensive income, net of tax:
Unrealized gain on translating financial statements
of self-sustaining foreign operations 1,014 8
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Other comprehensive income for the period 1,014 8

Comprehensive income for the period $ 3,007 $ 3,838
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2008 2007
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Accumulated other comprehensive income (loss)
on translation of foreign operations

Balance, beginning of period $ (4,098) $ -
Impact of translating financial statements
of self-sustaining foreign operations on
January 1, 2007 - 241

Unrealized gain (loss) on translation of foreign
operations during the period 1,014 (233)
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Balance, end of period 1,014 8
Total accumulated other comprehensive income (loss)
for the period $ (3,084) $ 8
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PURE ENERGY SERVICES LTD.
Consolidated Statements of Cash Flows

For the three months ended March 31,
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(Unaudited, stated in thousands of dollars, except per share amounts)

2008 2007
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Cash provided by (used in)
Operating activities
Net income $ 1,993 $ 3,830
Items not involving cash:
Depreciation and amortization 3,810 3,162
Future income tax expense (reduction) 124 (2,292)
Stock-based compensation expense 680 365
Gain on sale of equipment (3) (4)
Unrealized foreign exchange loss - 8
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6,604 5,069

Changes in non-cash working capital balances (8,846) 747
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(2,242) 5,816

Investing activities
Purchases of property and equipment (2,256) (16,508)
Note receivable - 473
Proceeds from the sale of equipment 28 161
Changes in non-cash working capital balances (1,224) (380)
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(3,452) (16,254)
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Financing activities
Operating loan 7,021 (107)
Issuance of long-term debt - 12,500
Repayment of long-term debt (83) (83)
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6,938 12,310
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Increase (decrease) in cash 1,244 1,872
Effect of translation on foreign currency cash and
cash equivalents 100 -
Cash, beginning of period 1,855 437
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Cash, end of period $ 3,199 $ 2,309
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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 9, 2008 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, 2008 and 2007 and should also be read in conjunction with the audited consolidated financial statements and MD&A for the years ended December 31, 2007 and 2006. 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 which 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. ("Pure USA"), 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 refer 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 ("Drilling Services") 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) 2008 2007
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(unaudited) (unaudited)
Revenue $ 46.7 $ 46.1
EBITDA (1) 7.3 9.3
EBITDAS (1) 8.0 9.7
Net income 2.0 3.8
Earnings per share
Basic $ 0.13 $ 0.24
Diluted $ 0.13 $ 0.24
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(1) EBITDA and EBITDAS do not have standardized meanings prescribed by GAAP. Management believes that, in addition to net income, EBITDA and EBITDAS are useful supplemental measures. EBITDA and EBITDAS are provided as measures of operating performance without reference to financing decisions and income tax impacts, which are not controlled at the operating management level. EBITDAS also excludes stock based compensation expense as it is also not controlled at the operating management level. Investors should be cautioned that EBITDA and EBITDAS should not be construed as alternatives to net income determined in accordance with GAAP as an indicator of the Corporation's performance. The Corporation's method of calculating EBITDA and EBITDAS 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.

Highlights and Outlook

The Corporation's revenue for the 2008 first quarter increased $0.6 million compared to the 2007 first quarter. The Corporation's income before income taxes for the 2008 first quarter decreased $2.9 million compared to the 2007 first quarter. During the quarter, the Corporation recognized one-time expenses of $0.8 million relating to stock based compensation costs and severance obligations.

Revenue and overall job count for the Canadian Completion Services segment decreased 23% and 18%, respectively, which were reflective of decreased industry activity in the WCSB, as evidenced by the decline in the natural gas well count of 20% reported by the Petroleum Services Association of Canada ("PSAC") (1) and the 5% decline in the number of active rigs reported by the Canadian Association of Drilling Contractors ("CAODC") (2).

(1) Source - 2008 PSAC Canadian Drilling Activity Forecast April Update

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

In the past 12 to 15 months, the Corporation has transferred, or designated for transfer, a significant amount of equipment from its Canadian Completion Services segment to the US Operations. The Corporation has also taken steps to analyze and address the cost structure for its Canadian Completion Services segment. As a result, the Canadian Completion Services segment is right-sized, from both a cost structure and equipment and personnel complement perspective, for the current industry activity levels and the increase in industry activity levels expected in the latter part of 2008 and in 2009.

Notwithstanding the decreased industry activity levels generally experienced in the WCSB, Drilling Services' revenue for the 2008 first quarter increased 10% compared to the 2007 first quarter as a result of higher than anticipated drilling rig utilization by the Quintera Drilling division. The Quintera Drilling division has received commitments for drilling services following break-up. As a result, management anticipates continued strong utilization and financial results from the Quintera Drilling division for the balance of 2008.

During the 2008 first quarter, natural gas prices increased as a result of decreases in North American natural gas storage levels and LNG imports. In the WCSB, provided that the increased natural gas prices are sustained, the increased prices and the further clarity received on the Alberta Royalty structure should provide incentive for oil and gas producers to drill and complete natural gas wells, leading to increased activity levels for Canadian Operations in the second half of 2008 and in 2009.

Activity levels in the US Rocky Mountain region have not declined in the same manner as experienced in the WCSB, with the 2008 first quarter rig count increasing 2% compared to the first quarter 2007 rig count(3). Revenue for the US Operations increased 56% for the 2008 first quarter compared to the 2007 first quarter. All of the US Operations' operating divisions experienced increased revenues.

(3) Source - Baker Hughes Weekly Rotary Rig Count, Colorado Oil and Gas Conservation Commission, Wyoming Oil and Gas Conservation Commission and the Utah Division of Oil, Gas and Mining

The US Production Testing division continued to experience high demand and utilization for its services. The Corporation has expanded its production testing operations in North Dakota and plans to transfer additional production testing units to North Dakota from its Canadian Operations. In the 2008 first quarter, the Corporation agreed to locate its North Dakota operations in Minot, North Dakota. As a result, the Corporation has received grants and tax incentives from the City of Minot and the State of North Dakota for its North Dakota operations.

The Fracturing division's revenue for the 2008 first quarter increased by 217% as compared to the 2007 first quarter as a result of the commencement of services under the previously reported customer contracts and commitments for fracturing services in March 2008. Since the commencement of these services, the Fracturing division has experienced positive income before income taxes. Management anticipates that utilization of the Corporation's first two fracturing spreads will continue to increase during 2008 as scheduling for drilling and completion services is finalized by its customers. It is expected that the Corporation's third fracturing spread will become operational in the second half of 2008.

Management has been advised that the reconstruction of the sand processing facilities of Legacy Resources, the Corporation's primary fracturing sand supplier, remains on schedule and that, such reconstruction is over 90% complete. The Corporation has commenced receiving deliveries of fracturing sand contracted from Legacy. In addition, the Corporation continues to receive material quantities of fracturing sand from its other fracturing sand suppliers.

Both the Canadian Completion Services and the Drilling Services segments remain strong franchises. Management is confident that the Canadian Operations are well positioned to take advantage of the increase in industry activity levels which are expected to occur in the WCSB in the latter part of 2008 and in 2009.

Management is encouraged by the financial results achieved by the US Logging and Perforating and Fracturing divisions during the latter part of the first quarter and believes that the financial results of both divisions will continue to improve as the Corporation starts to receive its contractual commitments of fracturing sand on a regular and frequent basis.

The Corporation will continue to investigate growth and expansion opportunities, both organic and by acquisition. In addition, the Corporation will consider transferring additional equipment from the Canadian Operations to the US Operations, depending on customer demand in both the WCSB and the US Rocky Mountain region.

Results of Operations

Three Months Ended March 31, 2008 Compared to the Three Months Ended March 31, 2007



Canadian Completion Services

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Canadian Completion Services
Financial Results
Three Months ended, Year-Over-Year Change
($ thousands, March 31, % of March 31, % of
unaudited) 2008 Revenue 2007 Revenue $ Percentage
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Revenue $18,338 $23,921 $(5,583) (23%)
Expenses
Operating 12,897 70.3% 16,307 68.2% (3,410) (21%)
Selling, general
and
administrative 1,610 8.8% 2,090 8.7% (480) (23%)
Depreciation
and amortization 1,469 8.0% 1,571 6.6% (102) (6%)
Other expense (3) - 14 0.1% (17) (121%)

Income before
income taxes 2,365 12.9% 3,939 16.5% (1,574) (40%)
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Canadian Completion Services Revenue

Revenue for the Canadian Completion Services segment decreased 23% in the 2008 first quarter compared to the 2007 first quarter. The decrease was attributable to an 18% decline in job count and a 6% decrease in average revenue per job. The job count decline was relatively consistent with the overall decline in natural gas industry activity as evidenced by the PSAC natural gas well count decline of 20%.

The Production Testing division's revenue decreased 17% as a result of a 16% decrease in job count and a 1% decrease in average revenue per job. The decrease in average revenue per job was largely the result of increased competitive pressures; however, it was largely offset by a larger percentage of the overall job count occurring in the northern locations where average revenue per job is typically higher. As a result of the slowdown, management has transferred two more units to the US Production Testing division where utilization levels are significantly higher.

The Multiline division's revenue decreased 33% as a result of a 27% decrease in job count and an 8% decrease in average revenue per job. The decrease in job count and average revenue per job resulted from the slow down in industry activity causing a larger percentage of the overall job count to shift towards production related services and away from completion related services, which typically have lower average revenue per job.

The Logging and Perforating division's revenue decreased 26% as a result of a 20% decrease in job count and an 8% decrease in average revenue per job. The lower job count resulted from the decline in industry activity and increased competition. Average revenue per job decreased as a result of reduced prices caused by increased competition.



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2008 2007 As at
Canadian Completion Services First Quarter First Quarter December 31,
Unit Complement Average Ending Average Ending 2008(A) 2007
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Production Testing Division 40.3 39 47.0 47 35 41
Logging and Perforating
Division 21.0 21 20.3 21 21 21
Multiline Division 16.0 16 16.0 16 16 16
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Canadian Completion Services
Total 77.3 76 83.3 84 72 78
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(A) - Expected equipment capacity as at December 31, 2008 based on approved
budgets.


Canadian Completion Services Income before Income Taxes

Income before income taxes for the Canadian Completion Services segment decreased 40% in the 2008 first quarter compared to the 2007 first quarter primarily as a result of the decrease in revenue combined with a decrease in margin percentage for the Multiline and Logging and Perforating divisions. Depreciation expense decreased as a result of equipment being transferred to the US Completion Services segment. The Canadian Completion Services segment overhead decreased 26% primarily as a result of a decrease in head count.

The Production Testing division's income before income taxes as a percentage of revenue increased slightly in the 2008 first quarter compared to the 2007 first quarter despite the decrease in revenue. Wages and benefits, job supplies, and subsistence all decreased as a percentage of revenue as a result of operating efficiencies achieved during the quarter. Depreciation expense also decreased as a result of equipment being transferred to the US Production Testing division.

The Logging and Perforating division's income before income taxes as a percentage of revenue decreased by approximately six percentage points in the 2008 first quarter compared to the 2007 first quarter primarily as a result of the decrease in revenue. Unit expenses, job supplies and base expenses all decreased more, on a percentage basis, than the percentage decrease in revenue. These operating efficiencies were entirely offset by increases in wages and benefits, repairs and maintenance and depreciation expense.

The Multiline division's income before income taxes as a percentage of revenue decreased by approximately twelve percentage points in the 2008 first quarter compared to the 2007 first quarter primarily as a result of the decrease in revenue. Wages and benefits, unit expenses, and repairs and maintenance expenses all decreased significantly on a dollar basis; however the decrease was not as great in percentage terms as the decrease in revenue.



US Completion Services

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US Completion Services
Financial Results
Three months ended Year-Over-Year Change
($ thousands, March 31, % of March 31, % of
unaudited) 2008 Revenue 2007 Revenue $ Percentage
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Revenue $13,662 $8,777 $4,885 56%
Expenses
Operating 11,639 85.2% 7,270 82.8% 4,369 60%
Selling, general
and administrative 945 6.9% 748 8.5% 197 26%
Depreciation
and amortization 1,469 10.8% 1,044 11.9% 425 41%

Income (loss)
before income
taxes (391) (2.9%) (285) (3.2%) (106) 37%
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US Completion Services Revenue

Revenue for the US Completion Services segment increased 56% in the 2008 first quarter compared to the 2007 first quarter as a result of increases in all three operating divisions, with the largest increase occurring in the Fracturing division.

The Production Testing division's revenue increased 23% as a result of a 51% increase in job count, which was partially offset by an 18% decrease in average revenue per job. The job count increase is the result of an increase in utilization levels arising from additional units under contract and a 27% increase in unit count in the 2008 first quarter compared to the 2007 first quarter. Average revenue per job decreased as a result of a larger proportion of work being performed under contract coupled with a decrease in the amount of under-balanced drilling services performed in the 2008 first quarter compared to the 2007 first quarter.

The Fracturing division's revenue increased by 217% in the 2008 first quarter compared to the 2007 first quarter, and increased 52% compared to the 2007 fourth quarter. The Fracturing division commenced the provision of services under its previously reported contracts and commitments late in the 2008 first quarter. Management anticipates continued increases in the utilization of the fracturing equipment as services under these contracts and commitments are scheduled and deliveries of the contracted volumes of fracturing sand from its sand supplier commence during the 2008 second quarter.

The US Logging and Perforating division's revenue increased 110% in the 2008 first quarter compared to the 2007 first quarter, and increased 15% compared to the 2007 fourth quarter. Equipment utilization increased by approximately twenty four percentage points during the 2008 first quarter compared to the 2007 first quarter as a result of synergies experienced with the Fracturing division and the work derived from previously disclosed contracts and commitments. Utilization levels continue to improve each quarter; however management believes there is still room for further increases before achieving full utilization. Management anticipates that the expected increase in utilization of the fracturing spreads will also have a further positive impact on the utilization of the logging and perforating units through the provision of complementary logging and perforating services.



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2008 2007 As at
US Completion Services First Quarter First Quarter December 31,
Unit Complement Average Ending Average Ending 2008(A) 2007
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Production Testing Division 26.7 28 21.0 21 32 26
Logging and Perforating
Division 3.0 3 2.0 2 3 3
Fracturing Division(B) 3.0 3 1.0 1 3 3
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US Completion Services Total 32.7 34 24.0 24 38 32
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(A) - Expected equipment capacity as at December 31, 2008 based on approved
budgets.
(B) - A fracturing spread is made up of several pieces of specialized
equipment.


US Completion Services Income before Income Taxes

Income before income taxes for the US Completion Services segment decreased by $0.1 million in the 2008 first quarter compared to the 2007 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, and an increase in depreciation and amortization expenses.

The US Production Testing division's income before income taxes increased by 6% in the 2008 first quarter compared to the 2007 first quarter. This percentage increase was lower than the percentage increase in revenue due to increases in repairs and maintenance expense, wages and benefits, unit expenses, and depreciation expense. Repairs and maintenance and depreciation expenses increased as a result of the equipment added since the 2007 first quarter. Wages and benefits as a percentage of revenue increased as a result of hiring additional field staff to operate the additional equipment transferred to the US Production Testing division from Canada combined with the commencement of operations in North Dakota.

A significant operating loss was recorded by the Fracturing division in the 2008 first quarter due to low utilization of the fracturing equipment during the quarter. However, the Fracturing division realized positive income before income taxes during March as a result of a significant increase in activity levels due to the commencement of work performed under its previously disclosed customer contracts and commitments.

The US Logging and Perforating division's income before income taxes improved from a small operating loss recorded during the 2007 first quarter to positive income before income taxes during the 2008 first quarter. The increase in revenue generated from the previously disclosed contracts and commitments resulted in improved income before income taxes.

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 have increased as a result of the additional equipment deployed in US Completion Services, transfers from the Canadian Operations, and the amortization of the Fracturing and Logging and Perforating divisions' deferred pre-operating costs.



Drilling Services

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Drilling Services
Financial Results
Three months ended, Year-Over-Year Change
($ thousands, March 31, % of March 31, % of
unaudited) 2008 Revenue 2007 Revenue $ Percentage
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Revenue $14,696 $13,408 $1,288 10%
Expenses
Operating 9,553 65.0% 8,054 60.1% 1,499 19%
Selling, general
and administrative 669 4.6% 586 4.4% 83 14%
Depreciation
and amortization 758 5.2% 547 4.1% 211 39%
Other income - - (19) (0.1%) (19) (100%)

Income before
income taxes 3,716 25.3% 4,240 31.6% (524) (12%)
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Drilling Services Revenue

Revenue for the Drilling Services segment increased 10% in the 2008 first quarter compared to the 2007 first quarter, notwithstanding the decrease in drilling activity in the WCSB as evidenced by the 5% decrease in the CAODC active rig count.

Revenue for the Quintera Drilling division increased by 9% in the 2008 first quarter compared to the 2007 first quarter as a result of increased utilization levels and a broadening of the division's customer base. An average of 10.0 drilling rigs operated during the 2008 first quarter at an average utilization rate of 62% compared to an average of 9.6 drilling rigs operating during the 2007 first quarter at an average utilization rate of 50%.

Revenue for the Motorworks Rentals division increased 12% in the 2008 first quarter compared to the 2007 first quarter. Average revenue per job increased due to an increase in the amount of directional drilling services performed. Mud motor utilization increased as a result of an increased customer base and quicker service time for mud motors as a result of internal servicing.



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2008 2007 As at
Drilling Services First Quarter First Quarter December 31,
Unit Complement Average Ending Average Ending 2008(A) 2007
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Drilling rigs 10.0 10 9.6 10 10 10
Mud motors 59.0 59 57.0 57 59 59
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(A) - Expected equipment capacity as at December 31, 2008 based on approved
budgets.


Drilling Services Income before Income Taxes

Income before income taxes decreased by 12% in the 2008 first quarter compared to the 2007 first quarter primarily due to increased operating expenses as a result of the additional directional drilling work performed by the Motorworks Rentals division coupled with increases in subsistence expense and depreciation expense.

The Quintera Drilling division's income before income taxes decreased by 7% in the 2008 first quarter compared to the 2007 first quarter. Wages and benefits, subsistence expense and depreciation expense all increased as a percentage of revenue. Wages and benefits increased as a percentage of revenue as a result of the reduction in drilling rig day rates. Depreciation expense increased as a result of the increase in utilization of the drilling rigs.

The Motorworks Rentals division experienced a significant decrease in income before income taxes as a result of an increase in equipment rental expenses, subcontractor expenses, and salaries and wage expenses. Equipment rental and subcontractor expenses increased due to an increase in the amount of directional drilling services performed. Salaries and wages increased due to an increase in head count.



Corporate

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Corporate Services
Financial Results % of % of
Three months ended, Consol- Consol- Year-Over-Year Change
($ thousands, March 31, idated March 31, idated
unaudited) 2008 Revenue 2007 Revenue $ Percentage
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Expenses
Selling, general
and
administrative $1,394 3.0% $1,509 3.3% $(115) (8%)
Stock-based
compensation
expense 680 1.5% 365 0.8% 315 86%
Depreciation 114 0.2% - - 114 100%
Interest on
long-term debt 664 1.4% 293 0.6% 371 127%
Other interest 79 0.2% 196 0.4% (117) (60%)
Foreign exchange
(gain) / loss 16 - (8) - 24 -
Other expense /
(income) - - (111) (0.2%) 111 100%

Loss before income
taxes 2,947 6.3% 2,244 4.9% 703 31%
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Corporate expenses for the 2008 first quarter increased 31% compared to the 2007 first quarter relative to a 1% increase in consolidated revenue for the same comparative periods. Stock-based compensation expense increased $0.3 million or 86%, primarily as a result of a one-time increase in stock based compensation expense of $0.5 million. Interest expense increased $0.3 million as a result of higher debt balances carried during the 2008 first quarter compared to the 2007 first quarter.

Income Tax Expense

The 2008 first quarter income tax expense provision decreased relative to the 2007 first quarter provision largely due to the decrease in income before income taxes and a decrease in the current income tax and future income tax rates in Canada.



Capital Expenditures

Three months ended March 31,
($ thousands) 2008 2007
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Canadian Completion Services $ 1,235 $ 1,794
US Completion Services 761 11,224
Drilling Services 242 3,042
Corporate 18 448

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Total Capital Expenditures $ 2,256 $ 16,508
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The Corporation has significantly reduced its capital expenditure program in response to the WCSB activity slowdown and the reduction in profitability experienced during the past year.

The Canadian Completion Services 2008 first quarter capital expenditures represent progress payments relating to the construction of a new facility and sustaining capital.

The US Completion Services 2008 first quarter capital expenditures represent payments relating to additional capital required to support the growth of the US segment.

The Drilling Services 2007 first quarter capital expenditures represent progress payments relating to rig eleven 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, 2008

Cash payments related to operating expenses and interest expense exceeded cash received for services performed during the quarter ended March 31, 2008 by $2.2 million.



Working Capital

----------------------------------------------------------------------------
As at As at
($ thousands) March 31, December 31,
2008 2007
----------------------------------------------------------------------------

Current assets $ 41,007 $ 28,460
Current liabilities 23,501 15,526
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Working capital $ 17,506 $ 12,934
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Working capital increased by $4.6 million in the 2008 first quarter compared to December 31, 2007. The increase in current assets of $12.5 million primarily relates to the increase in accounts receivable of $11.4 million and the increase in cash of $1.3 million.

The increase in current liabilities of $8.0 million primarily relates to an increase in the Corporation's operating loan of $7.0 million, and increase in accounts payable and accrued liabilities of $0.4 million and an increase in income taxes payable of $0.6 million.

Financing

The Corporation's primary sources of financing are bank debt and equity issuances. The Corporation has a $20 million revolving demand operating loan, a $5 million non-revolving term loan facility and a $60 million extendible revolving loan facility. The revolving demand operating loan is repayable upon demand. The non-revolving term loan facility is repayable monthly over 15 years.

The extendible revolving loan facility is renewable annually at the option of the lender. If this facility is not extended, the amounts outstanding thereunder will be transferred to a four year term facility, repayable monthly. During the 2008 first quarter, the Corporation received confirmation from its lender of the extension of the revolving loan facility's renewal date from June 30, 2008 to June 30, 2009.

As at May 9, 2008, the Corporation had 15,897,031 common shares and 1,269,690 stock options outstanding.

The Corporation, through the conduct of its operations, has undertaken certain contractual obligations. As at March 31, 2008, the Corporation's contractual obligations were as follows:



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Payments Due by Period
----------------------------------------------------------------------------
Contractual Obligations Less than 1 - 3 4 - 5 After
($ thousands) Total 1 Year Years Years 5 Years
----------------------------------------------------------------------------

Long-term debt obligations (1) $ 40,750 $ 333 $ 14,354 $ 18,917 $ 7,146
Purchase obligations 28,252 13,139 13,886 1,227 -
Operating leases 12,126 3,666 6,305 1,847 308
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Total Contractual Obligations $ 81,128 $ 17,138 $ 34,545 $ 21,991 $ 7,454
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(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 2009.

Cash Requirements

----------------------------------------------------------------------------
As at March 31, 2008 ($ thousands)
----------------------------------------------------------------------------
Committed capital expenditures $ 8,493
Uncommitted capital expenditures 10,307
----------------------------------------------------------------------------
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2008 expected capital expenditures $ 18,800
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The Corporation has committed to spend $8.5 million which represents the capital expenditures necessary to complete capital projects currently underway and provided for under the Corporation's 2008 capital expenditure program. The remaining $10.3 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, 2008, the Corporation has available debt capacity of $23.5 million on its extendible revolving term loan facility.

Fair value of financial instruments

The Corporation's financial instruments as at March 31, 2008 and 2007 include cash, accounts receivable, accounts payable and accrued liabilities, and bank debt. The fair value of cash, accounts receivable, and accounts payable and accrued liabilities approximate their carrying amounts due to their short-terms to maturity.

Bank debt bears interest at a floating market rate and accordingly the fair market value approximates the carrying value.

Off Balance Sheet Arrangements

The Corporation has not entered into any off-balance sheet arrangements.

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.

Changes in Accounting Policies

On January 1, 2008, the Corporation adopted new Canadian accounting standards for financial instruments, inventories and capital disclosures. The new standards have been adopted on a prospective basis with no restatement of prior periods.

Financial Instruments

The Corporation has exposure to the following risks from its use of financial instruments:

- Credit risk

- Liquidity risk

- Market risk

The Corporation's risk management policies are established to identify and analyze the risks faced by the Corporation, to set appropriate risk limits and controls, and to monitor risks and adherence to market conditions and the Corporation's activities.

Credit risk

Credit risk is the risk of financial loss to the Corporation if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Corporation's receivables from customers.

The Corporation's exposure to credit risk is influenced mainly by the individual characteristics of each customer. A substantial portion of the accounts receivable are with customers who are dependent upon the oil and gas industry, and are subject to normal industry credit risks. The Corporation does not typically obtain collateral from its customers; however, the Corporation does have the ability to place a lien on a customer's well in the event of non-payment.

The Corporation has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Corporation's standard payment and delivery terms and conditions are offered. The Corporation's review includes review of trade references, financial statement review, review of payment history (credit check), debt analysis (bank references) and input from management. Extending credit to existing customers will continue as long as existing customers have an acceptable payment history. Customers that fail to meet the Corporation's benchmark creditworthiness may transact with the Corporation only on a prepayment basis.

Approximately 25% percent of the Corporation's revenue is attributable to sales transactions with a single customer. However, geographically there is no concentration of credit risk.

The carrying amount of accounts receivable represents the maximum credit exposure. The Corporation establishes an allowance for doubtful accounts that represents an estimate of incurred losses in respect of trade and other receivables. Customers with balances over 60 days are reviewed by management on a weekly basis, and if necessary, an allowance may be set up, or alternatively, the Corporation may place a lien on the customer's well.

There was no change in the Corporation's allowance for doubtful accounts in the first quarter of 2008, and there were no liens placed on any wells.

Liquidity risk

Liquidity risk is the risk that the Corporation will not be able to meet its financial obligations as they fall due. The Corporation's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Corporation's reputation.

In managing liquidity risk, the Corporation prepares annual capital expenditure budgets, which are regularly monitored and updated as considered necessary. Further, the Corporation utilizes authorizations for capital expenditures to further manage its capital expenditure program.

The Corporation also has access to a wide range of funding at competitive rates. As at March 31, 2008, the Corporation had available unused committed bank credit facilities in the amount of $35,099 plus cash and accounts receivable in the amount of $3,199 and $33,533, respectively, for a total of $71,831 available to fund the cash outflows relating to its financial liabilities. The Corporation believes it has sufficient funding through the use of these facilities to meet foreseeable borrowing requirements.

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Corporation's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on risk.

Currency risk

As the Corporation operates primarily in Canada and the United States, fluctuations in the exchange rate between the U.S./Canadian dollar can have a significant effect on the fair value or future cash flows of the Corporation's financial assets and liabilities.

The Canadian operations are exposed to currency risk on foreign currency denominated financial assets and liabilities with adjustments recognized as foreign exchange gains and/or losses in the consolidated statement of operations.

The U.S. operations with a domestic functional currency expose the Corporation to currency risk on the translation of the U.S. operations' financial assets and liabilities to Canadian dollars for consolidation. Adjustments arising when translating the U.S. operations into Canadian dollars are reflected in the consolidated statements of other comprehensive income as unrealized gains or losses on translating financial statements of self-sustaining foreign operations.

For the quarter ended March 31, 2008, fluctuations in the value of the Canadian dollar would have had the following impact on net income and other comprehensive income:



Impact to
Impact to Comprehensive
(Stated in thousands) Net Income Other Income
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1% increase in the value of the US dollar - $ 276
1% decrease in the value of the US dollar - $(276)


Management does not use any derivative instruments to hedge this risk. The Corporation had no forward exchange rate contracts in place as at or during the period ended March 31, 2008.

Interest rate risk

Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. The Corporation manages its exposure to interest rate risk through a combination of fixed and variable rate borrowing facilities that are available if required. An increase or decrease in interest expense for each one percent change in interest rates on variable rate debt would have amounted to $408 during the three months ended March 31, 2008. As at March 31, 2008, all of its borrowings were at variable rates.

The Corporation had no interest rate swap or financial contracts in place as at or during the period ended March 31, 2008.

Inventories

The new standard replaces the previous inventories standard and requires inventory to be valued on a first-in, first-out or weighted average basis, which is consistent with the Corporation's current accounting policy. The new standard allows the reversal of previous write-downs to net realizable value when there is a subsequent increase in the value of the inventories. The adoption of this new standard did not have a material impact on the Corporation's consolidated financial statements.

Capital Disclosures

The Corporation's capital structure is comprised of Shareholders' Equity plus Long-Term Debt. The Corporation's objective when managing its capital structure is to preserve the financial flexibility to maintain investor, creditor and market confidence and to sustain future growth and development of the Corporation.

The Corporation's capital management policies are aimed at:

- maintaining an appropriate balance between short-term debt, long-term debt and equity;

- maintaining sufficient undrawn committed credit capacity to provide liquidity;

- ensuring ample covenant room to draw on the credit lines as required; and

- maintaining a level of leverage with sufficient room for increases when necessary.

The Corporation monitors its capital structure and short-term financing requirements using non-GAAP financial metrics consisting of Net Debt to Capitalization and Net Debt to Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA"). The metrics are used to steward the Corporation's overall debt position as measures of the Corporation's overall financial strength.

The Corporation operates in a cyclical industry and as a result has experienced significant fluctuations in historical financial results during past cycles. The industry cyclicality and fluctuations in financial results are expected to continue in the future.

Management is focused on the future growth of the Corporation. Management expects to experience short-term breaches in the Corporation's capital management financial targets due to its growth focus and industry cyclicality. Management is willing to tolerate these short-term breaches as long as its expectation of future financial performance is sufficient to reduce the breaches in its capital management financial targets below its stated targets in the near future.

The Corporation attempts to maintain a Net Debt to Capitalization ratio of less than 40%. As at March 31, 2008, the Corporation's net debt to capitalization ratio was 15% (December 31, 2007 - 17%).

The Corporation monitors Net Debt to EBITDA on a trailing and forward basis. The Corporation typically targets Net Debt to EBITDA of less than 2.5 times. As at March 31, 2008, Net Debt to EBITDA was 4.9 times (December 31, 2007 - 4.1 times) calculated on a trailing twelve-month basis.

The Corporation's Net Debt to EBITDA ratio of 4.9 times is currently higher than the target maximum of 2.5 times largely as a result of the deterioration of the Corporation's EBITDA during the past year. Management believes the EBITDA deterioration is largely a result of bottom-of-the-cycle WCSB industry activity levels combined with costs associated with the establishment of the Fracturing division in the US Rocky Mountain region. Recognizing deteriorating industry conditions during 2007, the Corporation has reduced its capital investment program in 2008 to accelerate the recovery of the Net Debt to EBITDA ratio to target levels as industry conditions improve. Management expects the Corporation's future financial performance will reduce its Net Debt to EBITDA ratio below 2.5 times in the near future.

The Corporation's capital management objectives, evaluation measures, definitions and targets have remained unchanged over the periods presented. The Corporation is subject to certain financial covenants in its credit facility agreement and is in compliance with all financial covenants.

Goodwill and Other Intangible Assets

In February 2008, the Canadian Institute of Chartered Accountants issued Section 3064, Goodwill and Intangible Assets, replacing Section 3062, Goodwill and Other Intangible Assets and Section 3450, Research and Development Costs. The new Sections establish standards for the recognition, measurement, presentation and disclosure of goodwill and intangible assets. The new Section will be applicable to the Corporation on January 1, 2009. The Corporation is currently assessing the impact of this new Section on its consolidated financial statements.

Internal Controls over Financial Reporting

Disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in reports filed with, or submitted to, securities regulatory authorities is recorded, processed, summarized and reported within the time periods specified under Canadian securities laws. The information is accumulated and communicated to management, including the chief executive officer and the chief financial officer, to allow timely decisions regarding required disclosure.

During the quarter ending March 31, 2008, 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.

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 19, 2008 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 well-site 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 well site 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.



Summary of Quarterly Results

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($ millions, except
per share amounts, 2008 2007 2006
unaudited) Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2
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Revenue $46.7 $31.0 $31.5 $ 16.5 $46.1 $34.9 $35.4 $ 22.9
Net income / (loss) 2.0 1.1 0.9 (9.3) 3.8 2.8 3.3 (0.2)
Earnings / (loss)
per share
Basic $0.13 $0.07 $0.05 $(0.58) $0.24 $0.17 $0.21 $(0.02)
Diluted $0.13 $0.07 $0.05 $(0.58) $0.24 $0.17 $0.20 $(0.02)
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Q1 2008

- The quarter reflects reduced activity levels for the Canadian Completions segment resulting in reduced financial results. Despite reduced activity levels, the Canadian Production Testing division's income before income taxes was consistent with the 2007 first quarter as a percentage of revenue.

- The Drilling Services segment had a strong quarter in terms of revenue; however increased operating expenses resulted in a decrease in income before income taxes.

- The US Segment continues to grow its revenue base as the Fracturing and Logging and Perforating divisions' results continue to improve. The contracts entered into in late 2007 have increased utilization, and as a result both divisions experienced positive income before income taxes in the month of March.

- Two Production Testing units were transferred from the Canadian division to the US Production Testing division.

- Corporate services recorded a one-time increase in stock based compensation expense of $0.5 million relating to option cancellations.

Q4 2007

- The quarter reflects weak financial results largely attributable to: weak Canadian industry activity resulting in considerably lower Canadian Completion Services and Drilling Services financial results; the US Fracturing division's operating loss; the goodwill impairment of $1.2 million; and a significant contingent loss relating to an overtime claim in US Completion Services.

- The Corporation also recorded a $1.6 million future tax recovery relating to the Canadian government's substantively enacted corporate income tax rate reductions.

- The quarter also reflects positive operating results including: fracturing service contract and commitment awards that are expected to significantly increase the Fracturing division's equipment utilization; the execution of a revised sand supply agreement and receipt of US$4.9 million relating to repayment of the note receivable and reimbursement of certain operating expenses; increased equipment utilization and solid financial results for the US Production Testing division; improved financial results in the US Logging & Perforating division; and a strong financial contribution by the CCS Specialty Logging group in a weak operating market.

Q3 2007

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

- US Completion Services' Production Testing division produced another quarterly record for revenue and income before income taxes.

- US Completion Services' Fracturing division's financial results continue to be hampered by fracturing sand supply.

- Sale of rig 1 for proceeds of $5 million. The proceeds have been used to commence the construction of rig eleven.

- One-time severance and termination costs of $0.7 million were recorded during the quarter.

Q2 2007

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

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

- US Completion Services' Fracturing division's financial results continue to be hampered by fracturing sand supply.

- Corporate segment recorded an allowance for loan impairment increasing the net loss by $4.2 million as a result of the deterioration in the credit quality of the Corporation's fracturing sand supplier.

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.

Non-GAAP Disclosure

EBITDA and EBITDAS do not have standardized meanings 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 and EBITDAS are useful supplemental measures. EBITDA and EBITDAS are provided as measures of operating performance without reference to financing decisions and income tax impacts, which are not controlled at the operating management level. EBITDAS also excludes stock based compensation expense as it is also not controlled at the operating management level. The following is a reconciliation of EBITDA and EBITDAS, as used in this MD&A, to net income, being the most directly comparable measure calculated in accordance with GAAP.



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Three Months ended March 31,
($ millions, except per share amounts) 2008 2007
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(unaudited) (unaudited)

EBITDAS $ 8.0 $ 9.7

Deduct:

Stock based compensation expense 0.7 0.4

EBITDA $ 7.3 $ 9.3
Deduct:
Depreciation and amortization 3.8 3.2
Interest expense 0.8 0.5
Income taxes (1) 0.7 1.8
Net income (GAAP financial measure) 2.0 3.8

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(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, except to the extent required by 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 19, 2008 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
    Email: kdelaney@pure-energy.ca
    or
    Pure Energy Services Ltd.
    Michael Baldwin
    Chief Financial Officer
    (403) 262-4000
    Email: mbaldwin@pure-energy.ca
    or
    Pure Energy Services Ltd.
    #300, 1010 - 1st Street S.W.
    Calgary, Alberta T2R 1K4
    (403) 262-4000
    (403) 262-4005 (FAX)
    Website: www.pure-energy.ca