CALGARY, May 11, 2009 (Canada NewsWire via COMTEX) ----Overview

Ensign Energy Services Inc. (the "Company") reports net income of $72.7 million ($0.47 per common share) for the first quarter of 2009, a decline of 11 percent compared with the first quarter of 2008. EBITDA (as defined below) totaled $128.4 million ($0.84 per common share) for the three months ended March 31, 2009 compared with EBITDA of $171.1 million ($1.12 per common share) for the three months ended March 31, 2008, a decline of 25 percent. The decrease in financial performance quarter-over-quarter reflects declining activity levels in the Company's Canada and United States geographic segments as the industry-wide slow down and economic downturn negatively impacted equipment utilization rates and heightened competition across all business lines. Partially offsetting the reduced North America results was a slight improvement in the results generated by the Company's international operations.

The Company's earnings are highly dependent upon crude oil and natural gas commodity prices which drive the level of cash flow realized by the Company's customers and, in turn, demand for the oilfield services provided by the Company. The sharp decline in the global economy which began in the latter half of 2008 and the ongoing recessionary conditions present in the first quarter of 2009 continued to drag down crude oil and natural gas commodity prices. West Texas Intermediate ("WTI") crude oil averaged US$43.08/barrel in the first quarter of 2009, which represents a decline of 27 percent from US$58.73/barrel in the fourth quarter of 2008 and a 56 percent decline from US$97.90/barrel in the first quarter of 2008. Similarly, natural gas prices as quoted on NYMEX averaged US$4.89/mmbtu for the first quarter of 2009, down from US$6.94/mmbtu in the fourth quarter of 2008 and US$8.03/mmbtu in the first quarter of 2008, declines of 30 percent and 39 percent, respectively.

In reaction to these sharp declines in commodity prices, reduced access to credit and lingering economic uncertainty, the Company's customers have either delayed or cancelled portions of their drilling programs, focusing on developing only the projects with the highest returns. Operators have curtailed capital expenditures pending improved commodity pricing which will be substantially dependent upon an economic recovery, increasing levels of demand for crude oil and natural gas, and rationalization of current high inventory levels and excess production capacity, particularly in the North American natural gas market.

While the Company's geographic diversity and advancement of its Automated Drill Rig ("ADR(TM)") technology have somewhat countered the effects of the severe downturn in the market, the impact of the global economic crisis is ultimately far-reaching and has negatively impacted activity levels in all of the Company's geographic segments.

   <<
   -------------------------------------------------------------------------
   FINANCIAL AND OPERATING HIGHLIGHTS
   ($thousands, except per share data and operating information)
   -------------------------------------------------------------------------
   Three months ended March 31
   -------------------------------------------------------------------------
   2009        2008    % change
   -------------------------------------------------------------------------
   Revenue                                  400,420     472,184         (15)
   -------------------------------------------------------------------------
   EBITDA(1)                                128,415     171,055         (25)
   EBITDA per share(1)
   Basic                               $     0.84  $     1.12         (25)
   Diluted                             $     0.84  $     1.11         (24)
   -------------------------------------------------------------------------
   Adjusted net income(2)                    70,149      92,661         (24)
   Adjusted net income per share(2)
   Basic                               $     0.46  $     0.61         (25)
   Diluted                             $     0.46  $     0.60         (23)
   -------------------------------------------------------------------------
   Net income                                72,686      81,796         (11)
   Net income per share
   Basic                               $     0.47  $     0.53         (11)
   Diluted                             $     0.47  $     0.53         (11)
   -------------------------------------------------------------------------
   Funds from operations(3)                  82,005     124,241         (34)
   Funds from operations per share(3)
   Basic                               $     0.54  $     0.81         (33)
   Diluted                             $     0.54  $     0.80         (33)
   -------------------------------------------------------------------------
   Weighted average shares
   - basic (000s)                          153,135     153,054           -
   Weighted average shares
   - diluted (000s)                        153,191     154,357          (1)
   -------------------------------------------------------------------------
   Drilling
   Number of marketed rigs
   Canada
   Conventional                           158         157           1
   Oil sands coring/coal bed methane      28          31         (10)
   United States                             76          76           -
   International(4)                          44          48          (8)
   Operating days
   Canada                                 5,136       8,532         (40)
   United States                          2,875       4,917         (42)
   International                          1,968       2,367         (17)
   -------------------------------------------------------------------------
   Well Servicing
   Number of marketed rigs/units
   Canada                                   108         118          (8)
   United States                             18          14          29
   Operating hours
   Canada                                31,649      44,971         (30)
   United States                          9,536       8,802           8
   -------------------------------------------------------------------------
   
   (1) EBITDA is defined as "income before interest expense, income taxes,
   depreciation and stock-based compensation expense". Management
   believes that in addition to net income, EBITDA and EBITDA per share
   are useful supplemental measures as they provide an indication of the
   results generated by the Company's principal business activities
   prior to consideration of how these activities are financed, how the
   results are taxed in various jurisdictions or how the results are
   impacted by the accounting standards associated with the Company's
   stock-based compensation plan. EBITDA and EBITDA per share as defined
   above are not recognized measures under Canadian generally accepted
   accounting principles and accordingly may not be comparable to
   measures used by other companies.
   
   (2) Adjusted net income is defined as "net income before stock-based
   compensation expense, tax-effected using an income tax rate of 35%".
   Adjusted net income and adjusted net income per share are useful
   supplemental measures as they provide an indication of the results
   generated by the Company's principal business activities prior to
   consideration of how the results are impacted by the accounting
   standards associated with the Company's stock-based compensation
   plan, net of income taxes. Adjusted net income and adjusted net
   income per share as defined above are not recognized measures under
   Canadian generally accepted accounting principles and accordingly may
   not be comparable to measures used by other companies.
   
   (3) Funds from operations is defined as "cash provided by operating
   activities before the change in non-cash working capital". Funds from
   operations and funds from operations per share are measures that
   provide shareholders and potential investors with additional
   information regarding the Company's liquidity and its ability to
   generate funds to finance its operations. Management utilizes these
   measures to assess the Company's ability to finance operating
   activities and capital expenditures. Funds from operations and funds
   from operations per share are not measures that have any standardized
   meaning prescribed by Canadian generally accepted accounting
   principles and accordingly may not be comparable to similar measures
   used by other companies.
   
   (4) Includes workover rigs.
   
   
   
   Revenue and Oilfield Services Expense
   
   Three months ended March 31
   ----------------------------
   ($ thousands)                   2009        2008      Change    % change
   -------------------------------------------------------------------------
   Revenue
   Canada                     181,114     260,450     (79,336)        (30)
   United States              127,704     139,315     (11,611)         (8)
   International               91,602      72,419      19,183          26
   ----------------------------------------------------
   400,420     472,184     (71,764)        (15)
   Oilfield services
   expense                     259,797     287,464     (27,667)        (10)
   ----------------------------------------------------
   140,623     184,720     (44,097)        (24)
   ----------------------------------------------------
   Gross margin                   35.1%       39.1%
   -------------------------------------------------------------------------
   >>
   
   

Revenue for the first quarter of 2009 totaled $400.4 million, a decline of 15 percent from revenue of $472.2 million recorded in the first quarter of 2008. For the three months ended March 31, 2009 gross margin totaled $140.6 million (35.1 percent of revenue) compared with $184.7 million for the three months ended March 31, 2008 (39.1 percent of revenue), a decline of 24 percent.

   <<
   Canada
   ------
   >>
   
   

The oilfield services industry in Canada experienced a slow-down across all services and business lines in the first quarter of 2009 and revenue realized from this segment declined 30 percent compared with the first quarter of 2008. The challenges present in the Canadian oilfield services market, which include an oversupply of equipment in a mature, high-cost basin, were only further exasperated by depressed commodity prices and declining economic conditions. A majority of the Company's customers announced reduced 2009 drilling budgets and, as a result, oilfield services activity in the Western Canada Sedimentary Basin ("WCSB") experienced a sharp decline. Although attractive resource plays in northeastern British Columbia and southeastern Saskatchewan remain a focus for several of the Company's customers, development in those areas has also tempered pending any meaningful, sustainable increase in natural gas and crude oil commodity prices.

The Company's Canadian oilfield services segment saw its drilling operating days and well servicing hours decline 40 percent and 30 percent, respectively, in the first quarter of 2009 compared with the first quarter of 2008. Looking back to the first quarter of 2006, a time of peak activity levels for the Canadian industry, drilling operating days recorded by the Company in Canada in the first quarter of 2009 have decreased 57 percent and well servicing hours have decreased by 54 percent over this same period. While Canada remains a core market for the Company, these dramatic declines highlight the challenges inherent in the Canadian industry and the importance of the Company's strategic growth initiatives underway to expand its geographic reach and to deploy its ADR(TM) technology abroad.

In ongoing efforts to control costs and maintain its drilling rig fleet in the most cost-effective manner, the Company decommissioned five drilling rigs in Canada in the first quarter of 2009. The Company will retain the serviceable components from these drilling rigs to support the remainder of its drilling rig fleet.

   <<
   United States
   -------------
   >>
   
   

The impact of declining economic conditions and depressed commodity prices began to take its toll on the Company's United States oilfield services segment most notably in the first quarter of 2009. While signs of a slow-down in United States oilfield services activity were evident in the fourth quarter of 2008, activity levels declined sharply in the first quarter of 2009. The average number of active drilling rigs in the Rocky Mountain region of the United States was down each month in the first quarter of 2009 compared with the first quarter of 2008, with the largest decline of 47 percent, down to 180 active drilling rigs, occurring in the month of March. The Company's California operations also experienced a reduction in demand and operating activity levels in the first quarter of 2009 compared with the same period of 2008. Total drilling operating days for the United States oilfield services segment totaled 2,875 for the first three months of 2009, a decline of 42 percent from the corresponding period of 2008. The United States well servicing division achieved an increase in operating hours of eight percent in the first quarter of 2009 compared with the first quarter of 2008 as the division benefited from the addition of two well servicing rigs to its fleet of equipment in the first quarter of 2009, offset by the retirement of one well servicing rig.

The United States oilfield services segment generated revenue of $127.7 million in the first quarter of 2009 compared with revenue of $139.3 million recorded in the first quarter of 2008, a decline of eight percent. Long-term contracts, predominantly for the new ADRs added to the United States equipment fleet over the past several years, have provided some protection from the overall downturn in the industry and declining spot market prices for the Company's services. The comparability of quarter-over-quarter revenue for the United States segment is also impacted by foreign exchange rates. The average Canadian/United States dollar foreign exchange rate at which United States dollar results are translated to Canadian dollars for presentation purposes was 1.2453 in the first quarter of 2009 compared with 1.0041 in the first quarter of 2008.

The United States 2009 new-build program is progressing as planned. During the first quarter of 2009, one new ADR(TM) was placed in service and an additional four ADRs are under construction with anticipated delivery dates spanning the second and third quarters of 2009. The new builds will operate in the Rocky Mountain and California regions under term contracts which will provide a measure of stability to the Company's earnings over the remainder of 2009. Following completion of the 2009 new-build program, the Company will have a total of 33 drilling rigs committed under term contracts in the United States.

   <<
   International
   -------------
   >>
   
   

Revenue recorded by the international oilfield services segment totaled $91.6 million for the three months ended March 31, 2009, an increase of 26 percent over the same period of 2008. The Company is expanding the reach of its ADR(TM) technology and, as previously announced, is constructing six ADRs for the international market. Two of the six ADRs were placed in service in the first quarter of 2009 in the Middle East and contributed to the period-over-period improvement in revenue through its operations and mobilization charges. The strengthening of the United States dollar relative to the Canadian dollar presentation currency has also contributed to the increase in revenue quarter-over-quarter.

The increase in activity levels in the Middle East attributable to the addition of two new ADRs in the first quarter of 2009 is offset by declines in operating activity in other regions compared with the first quarter of 2008. Two drilling rigs that operated in Thailand and Qatar in the first quarter of 2008 were idle in the first quarter of 2009, and are currently being bid for future contracts. Operating activity levels have declined significantly in Argentina; three drilling rigs and two workover rigs were idle at the end of the first quarter of 2009. First quarter activity levels in Venezuela have been negatively impacted as the national oil company strives to reduce costs in light of current reduced levels of crude oil commodity prices. As well, activity levels in Gabon have declined in the first quarter of 2009 compared with the first quarter of 2008, as the Company prepares to replace the drilling rig previously operating in that country with a newly constructed ADR(TM)-350. The new ADR(TM)-350 for Gabon is expected to commence operations in the second quarter of 2009.

   <<
   Depreciation
   
   Three months ended March 31
   ----------------------------
   ($ thousands)                   2009        2008      Change    % change
   -------------------------------------------------------------------------
   Depreciation                  28,940      28,253         687           2
   -------------------------------------------------------------------------
   >>
   
   

Depreciation expense totaled $28.9 million for first quarter of 2009 compared with $28.3 million for the first quarter of 2008. The change in depreciation is due to the introduction of new, higher valued equipment to the Company's drilling rig fleet over the course of 2008 and the first quarter of 2009, offset by a decrease in consolidated operating activity levels in the first quarter of 2009 compared with the first quarter of 2008. In addition, effective July 1, 2008, the Company began applying a depreciation charge for drilling and well servicing rigs that have not operated within the last 12 months based on the estimated useful life of such equipment, resulting in additional depreciation in the first quarter of 2009 compared with the first quarter of 2008.

   <<
   General and Administrative Expense
   
   Three months ended March 31
   ----------------------------
   ($ thousands)                   2009        2008      Change    % change
   -------------------------------------------------------------------------
   General and administrative    12,208      13,665      (1,457)        (11)
   % of revenue                    3.0%        2.9%
   -------------------------------------------------------------------------
   >>
   
   

General and administrative expense totaled $12.2 million (3.0 percent of revenue) for the first quarter of 2009 compared with $13.7 million (2.9 percent of revenue) for the first quarter of 2008, a decline of 11 percent. The decline in general and administrative expense reflects the Company's efforts to control costs during periods of declining activity levels.

Stock-Based Compensation Expense

   <<
   Three months ended March 31
   ----------------------------
   ($ thousands)                   2009        2008      Change    % change
   -------------------------------------------------------------------------
   Stock-based compensation      (3,902)     16,716     (20,618)       (123)
   -------------------------------------------------------------------------
   >>
   
   

Stock-based compensation expense arises from the intrinsic value accounting associated with the Company's stock option plan, whereby the liability associated with stock-based compensation is adjusted for the effect of granting and vesting of employee stock options and changes in the underlying price of the Company's common shares. For the quarter-ended March 31, 2009, the stock based compensation recovery results from the decrease in the price of the Company's common shares from $13.22 at December 31, 2008 to $10.92 at March 31, 2009.

   <<
   Interest Expense
   
   Three months ended March 31
   ----------------------------
   ($ thousands)                   2009        2008      Change    % change
   -------------------------------------------------------------------------
   Interest                         729       1,937      (1,208)        (62)
   -------------------------------------------------------------------------
   >>
   
   

Interest expense is incurred on the Company's operating lines of credit and promissory note payable. The decrease in interest expense on a quarter-over-quarter basis is due to lower balances outstanding on the Company's operating lines of credit during the first quarter of 2009 compared with the first quarter of 2008, as well as declining interest rates over this period.

   <<
   Income Taxes
   
   Three months ended March 31
   ----------------------------
   ($ thousands)                   2009        2008      Change    % change
   -------------------------------------------------------------------------
   Current income tax            45,678      43,346       2,332           5
   Future income tax            (15,716)       (993)    (14,723)      1,483
   ----------------------------------------------------
   29,962      42,353     (12,391)        (29)
   ----------------------------------------------------
   Effective income
   tax rate (%)                  29.2%       34.1%
   -------------------------------------------------------------------------
   >>
   
   

The effective income tax rate for the three months ended March 31, 2009 was 29.2 percent compared with 34.1 percent for the three months ended March 31, 2008. The decline in effective income tax rate quarter-over-quarter is due to ongoing income tax rate reductions in Canada (which phase in income tax rate reductions each year until 2012) and due to a greater proportion of international income being generated in lower rate jurisdictions.

The relative increase in current income tax and the future income tax recovery in the first quarter of 2009 primarily results from partnership timing differences. Taxable income generated by Canadian partnerships was a significant component of the future income tax liability as at December 31, 2008. These future income tax liabilities decline as taxable income generated by Canadian partnerships declines, resulting in a recovery in future income tax.

Financial Position

The following chart outlines significant changes in the consolidated balance sheet from December 31, 2008 to March 31, 2009:

   <<
   ($ thousands)               Change   Explanation
   -------------------------------------------------------------------------
   Cash and cash equivalents    4,157   See consolidated statement of
   cash flows.
   Accounts receivable        (23,971)  Decrease due to a decrease in
   operating activity levels in the
   first quarter of 2009 compared with
   the fourth quarter of 2008.
   Inventory and other           (662)  Decrease due to normal course
   consumption of operating supplies
   and spare parts.
   Property and equipment      43,581   Increase due to the new-build
   construction program, offset by
   depreciation.
   Accounts payable and       (44,441)  Decrease due to a decrease in
   accrued liabilities                 operating activity levels in the
   first quarter of 2009 compared with
   the fourth quarter of 2008.
   Operating lines of credit  (36,502)  Decrease due to net repayments of
   the operating line of credit held by
   the United States segment.
   Stock-based compensation    (3,905)  Decrease due to a decline in the
   price of the Company's common shares
   as at March 31, 2009 compared with
   December 31, 2008.
   Income taxes payable        37,572   Increase due to the current income
   tax provision for the period, net of
   tax instalments.
   Dividends payable                -   No change as dividends for the
   fourth quarter of 2008 and first
   quarter of 2009 were both declared
   at a rate of $0.085 per
   common share.
   Future income taxes        (14,827)  Decrease due to the current period
   future income tax recovery arising
   from a decrease in partnership
   timing differences.
   Shareholders' equity        85,208   Increase due to the impact of net
   income for the period and the impact
   of foreign exchange rate
   fluctuations on net assets of
   foreign self-sustaining
   subsidiaries, net of dividends
   declared in the period.
   -------------------------------------------------------------------------
   
   
   Working Capital and Funds from Operations
   
   Three months ended March 31
   ---------------------------
   ($ thousands, except
   per share data)                2009        2008      Change    % change
   -------------------------------------------------------------------------
   Funds from operations         82,005     124,241     (42,236)        (34)
   Funds from operations
   per share                $     0.54  $     0.81  $    (0.27)        (33)
   Working capital(1)           131,897     107,024      24,873          23
   -------------------------------------------------------------------------
   
   (1) Comparative figure as of December 31, 2008.
   >>
   
   

Funds from operations totaled $82.0 million ($0.54 per common share) in the first quarter of 2009 compared with funds from operations of $124.2 million ($0.81 per common share) recorded in the first quarter of 2008, a decline of 34 percent. The decrease in funds from operations is due to the deterioration of market conditions in the Company's Canadian and United States geographic segments in the first quarter of 2009 compared with the first quarter of 2008, partially offset by increased contributions from international operations and the newly constructed ADRs placed in operation under term contracts in the first quarter of 2009. The significant factors that may impact the Company's ability to generate funds from operations in future periods are outlined in the "Risks and Uncertainties" section of the Management's Discussion and Analysis contained in the Company's 2008 Annual Report.

The Company does not take its strong balance sheet for granted and continued to look for opportunities to reduce costs and conserve cash during the first quarter of 2009. During the first quarter of 2009, the Company increased its working capital to $131.9 million, up $24.9 million from December 31, 2008, an enviable achievement given the difficult economic environment and market conditions present in the first quarter of 2009.

   <<
   Investing Activities
   
   Three months ended March 31
   ----------------------------
   ($ thousands)                   2009        2008      Change    % change
   -------------------------------------------------------------------------
   Net purchase of
   property and equipment      (46,094)    (33,544)    (12,550)         37
   Net change in
   non-cash working capital     19,830      (3,249)     23,079        (710)
   ----------------------------------------------------
   Cash used in
   investing activities        (26,264)    (36,793)     10,529         (29)
   -------------------------------------------------------------------------
   >>
   
   

During the first quarter of 2009, net purchases of property and equipment totaled $46.1 million, an increase of 37 percent over $33.5 million in the first quarter of 2008. The net purchase of property and equipment relates predominantly to the Company's new-build program as all other non-critical capital expenditures were tightly controlled or suspended during the first quarter of 2009. Additional details regarding the new-build program are provided in the "New Builds" section below.

   <<
   Financing Activities
   
   Three months ended March 31
   ----------------------------
   ($ thousands)                   2009        2008      Change    % change
   -------------------------------------------------------------------------
   Net (decrease)
   increase in operating
   lines of credit             (36,502)      7,676     (44,178)       (576)
   Issue of capital stock             -         300        (300)       (100)
   Dividends                    (13,016)    (12,628)       (388)          3
   Net change in
   non-cash working capital          -           5          (5)       (100)
   ----------------------------------------------------
   Cash used in
   financing activities        (49,518)     (4,647)    (44,871)        966
   -------------------------------------------------------------------------
   >>
   
   

The Company decreased the utilized balance of its operating lines of credit by a net $36.5 million in the first quarter of 2009, largely owing to the United States oilfield services segment which generated operating cash flow in excess of its capital expenditure needs. As of March 31, 2009, the operating lines of credit are primarily being used to fund the new-build program and to support international operations. Aside from a $20 million promissory note due July 2011, the Company has no long-term debt.

In the first quarter of 2009, the Company declared dividends in the amount of $13.0 million ($0.085 per common share), an increase of three percent over dividends of $12.6 million ($0.0825 per common share) declared in the first quarter of 2008. All dividends paid by the Company subsequent to January 1, 2006 qualify as an eligible dividend, as defined by subsection 89(1) of the Canadian Income Tax Act ("ITA").

The Board of Directors of the Company has declared a dividend of $0.085 to be payable July 2, 2009 to all Common Shareholders of record as of June 22, 2009. The dividend is pursuant to the quarterly dividend policy adopted by the Company. Pursuant to subsection 89 (14) of the ITA, the dividend being paid is designated as an eligible dividend, as defined in subsection 89 (1) of the ITA.

New Builds

As previously disclosed, the Company is expanding its global fleet of state-of-the-art ADR(TM) drilling rigs. As of May 11, 2009, four ADRs have been completed and eight remain under construction pursuant to the Company's world-wide rig construction program, which consists of 12 ADRs and seven well servicing rigs. Of the 12 ADRs included in the 2009 construction program, two are ADR(TM)-250 models, two are ADR(TM)-300 models, four are ADR(TM)-350 models and four are ADR(TM)-500 models. Upon completion of this new-build program, the Company will have a total of 60 ADRs in its fleet. The well servicing rig new-build program consists of four well servicing rigs for the Canadian market and three well servicing rigs for the United States market, of which three have been delivered as of May 11, 2009. The Company has no current plans to build additional rigs upon completion of the current new-build program.

The new-build delivery schedule, by geographic area, is as follows:

   <<
   Actual           Forecast
   ------------------------------------------------
   Q1 2009     Q2 2009     Q3 2009       Total
   -------------------------------------------------------------------------
   ADRs
   United States                    1           1           3           5
   International                    2           4           -           6
   ------------------------------------------------
   Total                            3           5           3          11
   -------------------------------------------------------------------------
   Well Servicing Rigs
   Canada                           -           3           1           4
   United States                    2           -           -           2
   ------------------------------------------------
   Total                            2           3           1           6
   -------------------------------------------------------------------------
   >>
   
   

Outlook

The global economic recession, reductions in available levels of credit and significantly lower prices for crude oil and natural gas have all conspired to negatively impact the demand for oilfield services, particularly in North America. The Company's first quarter operating and financial results were down significantly from the prior year. The dynamics of the market would dictate that financial results will continue to decline from the prior year, as operating margins continue to fall in line with demand in markets that are oversupplied by companies and equipment. There is a need for rationalization within the oilfield services industry at a level that properly addresses the new reality.

Our Canadian operations began 2009 with weak levels of activity in a first quarter that weather-wise provided some very good operating conditions. The demand just was not there to take advantage of the good weather conditions. Utilization was lower than the prior year and the "spring break up" period started early for the Canadian market as operators curtailed winter operations sooner than what would be considered normal for the industry. Current utilization levels in Canada are at recent historic lows for this time of year. Activity levels are expected to improve into the summer as road bans in key operating areas are lifted; however, the activity will be reflective of the current lingering recessionary conditions and the oversupply of oilfield service equipment in a market that has been decimated by weak oil and natural gas fundamentals and commodity prices.

The United States oilfield services market is also driven by the similar fundamentals that hurt the Canadian market. A major difference for the Company is that we have more desirable high technology ADR(TM) rigs subject to contractual commitments in our United States operations compared to our Canadian operations. Such contractual coverage provides a modicum of protection from the downturn in the industry; however, the contracts are only as good as the counter-parties. We are fortunate to be partnered with good operators who will work with us through the downturn in activity. The bottom line is that we expect to get our fair share of the work going forward, supported by our advanced technology and broad array of support services.

The international oilfield services market faces different challenges in various regions, but activity levels are ultimately determined by crude oil and natural gas prices, and the local costs of production. Current commodity price levels are below many economic thresholds which have resulted in delays with respect to future work. Our existing contracts are holding up well, but there are reduced opportunities for new work in many areas serviced by the Company. A bright spot for the Company is the introduction of the new ADRs that are being deployed into the international operations in early 2009. These new rigs will have a positive impact on the financial results for our international operations.

The pressures facing the industry are unprecedented in the recent history of the Company. We have taken many difficult steps, including staff reductions and wage rollbacks, to ensure that the Company is able to face the challenges that lie ahead. We are carefully controlling our capital expenditures; and managing our balance sheet to ensure that our financial strength is maintained. Our strong balance sheet and established geographic diversification puts us in better shape compared to many other oilfield service companies, but we do not take that for granted. We continue to focus on cost control and cash management to ensure that we will have the resources available to continue to grasp continually emerging market opportunities supported by our advanced technologies, as well as to take advantage of rationalization opportunities that we believe will occur in the oilfield services industry as we move through the phases of this cyclical downturn.

Risks and Uncertainties

This document contains forward-looking statements based upon current expectations that involve a number of business risks and uncertainties. The factors that could cause results to differ materially include, but are not limited to, political and economic conditions, crude oil and natural gas prices, foreign currency fluctuations, weather conditions and the ability of oil and natural gas companies to raise capital or other unforeseen conditions which could impact on the use of the services supplied by the Company.

Conference Call

A conference call will be held to discuss the Company's first quarter results at 2:00 p.m. MDT (4:00 p.m. EDT) on Monday, May 11, 2009. The conference call number is 1-800-732-0232. A taped recording will be available until May 18, 2009 by dialing 1-877-289-8525 and entering reservation number 21299215 followed by the number sign. A live broadcast may be accessed through the Company's web site at www.ensignenergy.com.

Ensign Energy Services Inc. is an international oilfield services contractor and is listed on the Toronto Stock Exchange under the trading symbol ESI.

   <<
   CONSOLIDATED BALANCE SHEETS
   As at March 31, 2009 and December 31, 2008
   (Unaudited, in thousands of dollars)
   
   March 31   December 31
   2009          2008
   ------------- -------------
   Assets
   
   Current assets
   Cash and cash equivalents                     $    100,062  $     95,905
   Accounts receivable                                336,515       360,486
   Inventory and other                                 60,162        60,824
   Future income taxes                                    196         1,040
   ---------------------------
   
   496,935       518,255
   
   Property and equipment                           1,754,162     1,710,581
   ---------------------------
   
   $  2,251,097  $  2,228,836
   ---------------------------
   ---------------------------
   
   Liabilities
   
   Current liabilities
   Accounts payable and accrued liabilities      $    191,643  $    236,084
   Operating lines of credit                          132,941       169,443
   Current portion of stock-based compensation            716         3,538
   Income taxes payable                                26,722       (10,850)
   Dividends payable                                   13,016        13,016
   ---------------------------
   
   365,038       411,231
   
   Promissory note payable                             20,000        20,000
   
   Stock-based compensation                                20         1,103
   
   Future income taxes                                229,680       245,351
   ---------------------------
   
   614,738       677,685
   ---------------------------
   
   Shareholders' Equity
   
   Capital stock (note 3)                             169,485       169,485
   Accumulated other comprehensive income (loss)       23,955        (1,583)
   Retained earnings                                1,442,919     1,383,249
   ---------------------------
   
   1,636,359     1,551,151
   ---------------------------
   
   $  2,251,097  $  2,228,836
   ---------------------------
   ---------------------------
   
   See accompanying notes to the consolidated financial statements.
   
   
   
   CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
   For the three months ended March 31, 2009 and 2008
   (Unaudited, in thousands of dollars, except per share data)
   
   Three months ended March 31
   2009          2008
   ------------- -------------
   Revenue
   Oilfield services                             $    400,420  $    472,184
   
   Expenses
   Oilfield services                                  259,797       287,464
   Depreciation                                        28,940        28,253
   General and administrative                          12,208        13,665
   Stock-based compensation                            (3,902)       16,716
   Interest                                               729         1,937
   ---------------------------
   
   297,772       348,035
   ---------------------------
   
   Income before income taxes                         102,648       124,149
   
   Income taxes
   Current                                             45,678        43,346
   Future                                             (15,716)         (993)
   ---------------------------
   
   29,962        42,353
   ---------------------------
   
   Net income for the period                           72,686        81,796
   
   Retained earnings - beginning of period          1,383,249     1,174,195
   
   Dividends (note 3)                                 (13,016)      (12,628)
   ---------------------------
   
   Retained earnings - end of period             $  1,442,919  $  1,243,363
   ---------------------------
   ---------------------------
   
   Net income per share (note 3)
   Basic                                         $       0.47  $       0.53
   Diluted                                       $       0.47  $       0.53
   ---------------------------
   ---------------------------
   
   See accompanying notes to the consolidated financial statements.
   
   
   
   CONSOLIDATED STATEMENTS OF CASH FLOWS
   For the three months ended March 31, 2009 and 2008
   (Unaudited, in thousands of dollars)
   
   Three months ended March 31
   2009          2008
   ------------- -------------
   
   Cash provided by (used in)
   
   Operating activities
   Net income for the period                     $     72,686  $     81,796
   Items not affecting cash:
   Depreciation                                      28,940        28,253
   Stock-based compensation, net of cash paid        (3,905)       15,185
   Future income taxes                              (15,716)         (993)
   ---------------------------
   
   Cash provided by operating activities before
   the change in non-cash working capital             82,005       124,241
   Net change in non-cash working capital (note 5)     (2,066)      (70,881)
   ---------------------------
   
   79,939        53,360
   ---------------------------
   Investing activities
   Net purchase of property and equipment             (46,094)      (33,544)
   Net change in non-cash working capital (note 5)     19,830        (3,249)
   ---------------------------
   
   (26,264)      (36,793)
   ---------------------------
   Financing activities
   Net (decrease) increase in operating lines of
   credit                                            (36,502)        7,676
   Issue of capital stock                                   -           300
   Dividends (note 3)                                 (13,016)      (12,628)
   Net change in non-cash working capital (note 5)          -             5
   ---------------------------
   
   (49,518)       (4,647)
   ---------------------------
   
   Increase in cash and cash equivalents during
   the period                                          4,157        11,920
   
   Cash and cash equivalents - beginning of period     95,905         1,940
   ---------------------------
   
   Cash and cash equivalents  - end of period    $    100,062  $     13,860
   ---------------------------
   ---------------------------
   Supplemental information
   Interest paid                                 $        461  $      1,983
   Income taxes paid                             $      8,107  $     37,869
   ---------------------------
   ---------------------------
   
   See accompanying notes to the consolidated financial statements.
   
   
   
   CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
   For the three months ended March 31, 2009 and 2008
   (Unaudited, in thousands of dollars)
   
   Three months ended March 31
   2009          2008
   ------------- -------------
   
   Net income for the period                     $     72,686  $     81,796
   Other comprehensive income
   Foreign currency translation adjustment             25,538        34,712
   ---------------------------
   Comprehensive income for the period           $     98,224  $    116,508
   ---------------------------
   ---------------------------
   
   See accompanying notes to the consolidated financial statements.
   
   
   
   CONSOLIDATED STATEMENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME
   For the three months ended March 31, 2009 and 2008
   (Unaudited, in thousands of dollars)
   
   Three months ended March 31
   2009          2008
   ------------- -------------
   Accumulated other comprehensive loss -
   beginning of period                          $     (1,583) $    (97,588)
   Foreign currency translation adjustment             25,538        34,712
   ---------------------------
   Accumulated other comprehensive income (loss) -
   end of period                                $     23,955  $    (62,876)
   ---------------------------
   ---------------------------
   
   See accompanying notes to the consolidated financial statements.
   
   
   
   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
   For the three months ended March 31, 2009 and 2008
   (Unaudited, in thousands of dollars, except share and per share data)
   
   The interim consolidated financial statements have been prepared in
   accordance with Canadian generally accepted accounting principles
   ("Canadian GAAP"), and include the accounts of Ensign Energy Services
   Inc. and its subsidiaries and partnerships (the "Company"), substantially
   all of which are wholly-owned. The interim consolidated financial
   statements have been prepared following the same accounting policies and
   methods of computation as the consolidated financial statements for the
   year ended December 31, 2008. The disclosures provided below are
   incremental to those included with the annual consolidated financial
   statements. These interim consolidated financial statements should be
   read in conjunction with the consolidated financial statements and the
   notes thereto in the Company's annual report for the year ended December
   31, 2008.
   
   1.  Recent accounting pronouncements
   
   The Canadian Institute of Chartered Accountants ("CICA") Accounting
   Standards Board ("AcSB") confirmed in February 2008 that International
   Financial Reporting Standards ("IFRS") will replace Canadian GAAP in 2011
   for profit-oriented Canadian publicly accountable enterprises. As the
   Company will be required to report its results in accordance with IFRS
   starting in 2011, the Company is assessing the potential impacts of this
   changeover and developing its plan accordingly. When finalized, it will
   include project structure and governance, resourcing and training, and an
   analysis of key differences between IFRS and Canadian GAAP.
   
   As of January 1, 2011, the Company will be required to adopt the
   following CICA Handbook sections:
   
   (a) CICA Handbook Section 1582 "Business Combinations" will replace the
   existing business combinations standard. The new standard requires
   assts and liabilities acquired in a business combination and
   contingent consideration to be measured at fair value as at the date
   of the acquisition. Acquisition costs that are currently capitalized
   as part of the purchase price will be recognized in the consolidated
   statement of income. The adoption of this standard will impact the
   accounting treatment of future business combinations.
   
   (b) CICA Handbook Section 1601 "Consolidated Financial Statements" and
   Section 1602 "Non-controlling Interests" will replace the former
   consolidated financial statements standard. These standards establish
   the requirements for the preparation of consolidated financial
   statements and the accounting for a non-controlling interest
   (previously referred to as minority interest) in a subsidiary. The
   new standard requires non-controlling interest to be presented as a
   separate component of equity and requires net income and other
   comprehensive income to be attributed to both the parent and non-
   controlling interest. The adoption of this standard is not expected
   to have a material impact on the Company's consolidated financial
   statements.
   
   2.  Seasonality of operations
   
   The Company's Canadian oilfield services operations are seasonal in
   nature and are impacted by weather conditions that may hinder the
   Company's ability to access locations or move heavy equipment. The
   lowest activity levels are experienced during the second quarter of
   the year when road weight restrictions are in place and access to
   wellsites in Canada is reduced.
   
   3.  Capital Stock
   
   Authorized
   Unlimited common shares
   Unlimited preferred shares, issuable in series
   
   Outstanding
   Number of
   Common Shares        Amount
   ---------------------------------------------------------------------
   Balance at January 1, 2009                 153,135,006  $    169,485
   Issued under employee stock option plan              -             -
   ----------------------------
   Balance at March 31, 2009                  153,135,006  $    169,485
   ---------------------------------------------------------------------
   
   Options
   
   A summary of the status of the Company's stock option plan as of
   March 31, 2009, and the changes during the three-month period then
   ended, is presented below:
   
   Weighted
   Average
   Number of      Exercise
   Options         Price
   ---------------------------------------------------------------------
   Outstanding at January 1, 2009              10,445,962  $      18.09
   Granted                                         11,000         11.33
   Exercised for shares                                 -             -
   Exercised for cash                              (5,000)       (10.50)
   Forfeited                                      (50,000)       (22.70)
   ---------------------------------------------------------------------
   Outstanding at March 31, 2009               10,401,962  $      18.06
   ---------------------------------------------------------------------
   Exercisable at March 31, 2009                4,442,162  $      14.64
   ---------------------------------------------------------------------
   
   
   Options Outstanding             Options Exercisable
   ---------------------------------------------------------------------
   Average
   Vesting  Weighted              Weighted
   Remain-   Average               Average
   Options ing (in  Exercise     Options  Exercise
   Exercise Price   Outstanding   years)    Price Exercisable     Price
   ---------------------------------------------------------------------
   $9.45 to $11.33    2,021,162    0.05  $  10.50   1,947,762  $  10.50
   $13.50 to $18.85   1,884,700    0.83     14.13   1,238,800     13.80
   $19.88 to $23.33   6,496,100    2.10     21.56   1,255,600     21.90
   ----------------------------------------------------
   10,401,962    1.47  $  18.06   4,442,162  $  14.64
   ---------------------------------------------------------------------
   
   Common share dividends
   
   During the three months ended March 31, 2009, the Company declared
   dividends of $13,016 (2008 - $12,628), being $0.085 per common share
   (2008 - $0.0825 per common share).
   
   Net income per share
   
   Net income per share is calculated by dividing net income by the
   weighted average number of common shares outstanding during the
   period. Diluted net income per share is calculated using the treasury
   stock method, which assumes that all outstanding stock options are
   exercised, if dilutive, and the assumed proceeds are used to purchase
   the Company's common shares at the average market price during the
   period.
   
   The weighted average number of common shares outstanding for the
   three months ended March 31, 2009 and 2008 are as follows:
   
   2009          2008
   ------------- -------------
   Weighted average number of common shares
   outstanding - basic                       153,135,132   153,054,171
   Weighted average number of common shares
   outstanding - diluted                     153,190,735   154,357,359
   ------------- -------------
   
   Stock options of 8,424,600 (2008 - 4,890,500) were excluded from the
   calculation of diluted weighted average number of common shares
   outstanding, as the options' exercise price was greater than the
   average market price of the common shares for the period.
   
   4.  Segmented information
   
   The Company operates in three geographic areas within one industry
   segment. Oilfield services are provided in Canada, the United States
   and internationally. The amounts related to each geographic area are
   as follows:
   
   Three months ended March 31, 2009
   ---------------------------------------------------------------------
   United      Inter-
   Canada      States    national       Total
   ---------------------------------------------------------------------
   Revenue               $  181,114  $  127,704  $   91,602  $  400,420
   Property and
   equipment, net       $  820,558  $  540,148  $  393,456  $1,754,162
   Capital expenditures,
   net                  $    1,047  $   21,903  $   23,144  $   46,094
   Depreciation          $   14,410  $    9,000  $    5,530  $   28,940
   ---------------------------------------------------------------------
   
   Three months ended March 31, 2008
   ---------------------------------------------------------------------
   United      Inter-
   Canada      States    national       Total
   ---------------------------------------------------------------------
   Revenue               $  260,450  $  139,315  $   72,419  $  472,184
   Property and equipment,
   net                  $  789,545  $  357,530  $  325,208  $1,472,283
   Capital expenditures,
   net                  $    2,168  $   10,617  $   20,759  $   33,544
   Depreciation          $   14,974  $    6,656  $    6,623  $   28,253
   ---------------------------------------------------------------------
   
   5.  Supplemental disclosure of cash flow information
   
   The net change in non-cash working capital for the three months ended
   March 31, 2008 and 2007 is determined as follows:
   
   2009          2008
   -------------- -------------
   Net change in non-cash working capital
   Accounts receivable                    $      23,971  $    (80,211)
   Inventory and other                              662          (774)
   Accounts payable and accrued liabilities     (44,441)        1,378
   Income taxes payable                          37,572         5,477
   Dividends payable                                  -             5
   -------------- -------------
   $      17,764  $    (74,125)
   -------------- -------------
   Relating to
   Operating activities                   $      (2,066) $    (70,881)
   Investing activities                          19,830        (3,249)
   Financing activities                               -             5
   -------------- -------------
   $      17,764  $    (74,125)
   -------------- -------------
   -------------- -------------
   
   6.  Prior period amounts
   
   Certain prior period amounts have been reclassified to conform to the
   current period's presentation.
   >>
   
   

%SEDAR: 00001999E

SOURCE: Ensign Energy Services Inc.

Glenn Dagenais, Executive Vice President Finance and Chief Financial Officer, (403)
   262-1361
   

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