Western Energy Services Corp. · TSX:WRG

Western Energy Services — Shareholder Meeting (June 2011)

13 slides from Western Energy Services's shareholder meeting presentation, Jun 16, 2011

  1. Slide 1: 2011 Annual General Meeting

    2011 Annual General Meeting WRG.V June 16, 2011

  2. Slide 2: Management Team with a Track Record of Success

    Management Team with a Track Record of Success Management Representatives  Non-executive Chairman of Saxon Energy Services Inc. (resigned effective April Dale E. Tremblay 5, 2011)  Former President, CEO and Director of Saxon Energy Services Inc. CEO & Chairman  Former Vice President Finance and C

  3. Slide 3: Strong Corporate Governance

    Strong Corporate Governance Independent Board Members Murray K. Mullen  CEO and Chairman of the Mullen Group  Director of ShawCor Ltd. Lead Director  Former Director of Precision Drilling Corporation  Director of Mullen Group Ltd. and Horizon North Logistics Inc. Steve C. Grant  Former Director

  4. Slide 4: Summary of Stoneham Transaction

    Summary of Stoneham Transaction  On April 7th, 2011, Western and Stoneham announced that they had entered into a merger agreement, the transaction closed on June 10, 2011 − Stoneham Drilling Trust is a leading deep drilling rig contractor with 19 rigs, all of which are rated to depths >3,000m, with

  5. Slide 5: Q1 2011 – Consolidated Results

    Q1 2011 – Consolidated Results Financial Highlights (Thousands CAD $) Q1 2011 2010 Total Q4 2010 Q3 2010 Q2 2010 Q1 2010 Revenue 55,385 67,543 30,508 19,320 13,397 4,318 EBITDA 20,717 19,556 10,430 5,520 3,058 548 37% 29% 34% 29% 23% 13% Net Income from continuing operations 11,516 27,652 5,822 10,5

  6. Slide 6: Quarterly Revenue & EBITDAs

    Quarterly Revenue & EBITDAs Thousands CAD$ 60,000 55,385 50,000 40,000 30,508 30,000 20,717 19,320 20,000 13,397 10,430 10,000 5,520 4,318 548 3,058 29% 34% 37% 13% 23% 0 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Revenue EBITDA WRG.V 6

  7. Slide 7: Corporate Overview – Post Stoneham Transaction

    Corporate Overview – Post Stoneham Transaction  Common Shares  Basic 1,171.1 Million/58.6 Million (Post consolidation)  Diluted 1,254.6 Million/62.7 Million (Post consolidation)  Current Share Price (as at June 15, 2010) 0.39/$7.80 (Post consolidation)  Market Capitalization(f.d.) $489.3 Millio

  8. Slide 8: Company Snapshot – Business Segments

    Company Snapshot – Business Segments  Contract Drilling Services − Provided through Horizon Drilling Inc.  Production Services − Small to medium size acid and solvent blends, stimulation and remedial products and services, transportation and pumping services − Provided through StimSol Canada Inc.

  9. Slide 9: Company History

    Company History  Recapitalization completed in December 2009 laid foundation for sustainable growth − C$7 million private placement (new board and management subscribed for C$4.8 million) − Conversion of bridge lending facility, debentures and other obligations into common shares − Appointment of n

  10. Slide 10: Company Highlights

    Company Highlights  91% of fleet rated to depths >3,000m High quality modern – Unlocks new basins for better exploitation of conventional reservoirs fleet, well-suited to – 85% of rigs currently directed to oil drilling current environment – Positions WRG well to capture rising day rates following

  11. Slide 11: Leading Deep Driller in the WCSB (by percentage of Rigs)

    Leading Deep Driller in the WCSB (by percentage of Rigs) 100% 2% (1) 15% (3) 16% (13) 17% (34) 90% 8% (3) 32% (17) 80% 37% (46) 42% (30) Percentage of drilling fleet 15% (3) 22% (18) 70% 34% (69) 9% (5) 60% 13% (9) 22% (28) 50% 90% (36) 40% 70% (14) 30% 62% (51) 58% (31) 46% (33) 49% (99) 20% 41% (5

  12. Slide 12: Premier Deep Capacity Fleet Across WCSB

    Premier Deep Capacity Fleet Across WCSB 3 Rigs in the US Horn River Red Earth Oil Focused  85% of WRG rigs dedicated to oil drilling in Q1 2011 Montney Deep Basin Cardium Viking / Bakken WRG.V 12

  13. Slide 13: Outlook

    Outlook  Strong market for oil and natural gas liquids has resulted in customers targeting these specific wells Industry is moving towards − 85% of Western’s rigs are focused on oil drilling drilling wells with increased  During 2010 42% of the wells drilled in western Canada were horizontal wells

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