Enseco Energy Services Corp. Announces Results for Quarter Ending June 30, 2011

Enseco Energy Services Corp. ("Enseco" or the "Company") (TSX VENTURE:ENS)
announces its financial results for the three months ended June 30, 2011.


Operational Highlights 

Despite wet weather prolonging the spring breakup throughout Western Canada and
North Dakota this year, Enseco revenues increased 33% to $10.6 million from the
same time period last year.


Enseco opened a new MWD repair and maintenance facility in April 2011. The
companies MWD technicians have made a number of significant improvements to the
MWD downhole tools. These enhancements have resulted in increased service
quality, quicker turnaround of equipment and almost eliminated the need for
third party rental equipment.


Enseco paid down its principal debt by approximately $1.3 million this quarter
from cash flows. With strong activity and margins forecast, Enseco continues to
execute its business plan to use increasing cash flows to aggressively pay down
its loans and borrowings. 


Enseco increased its dedicated North Dakota frac flowback fleet from 7 to 9
units with a 10th unit scheduled for startup in October.




                                                         Three months ended 
                                                                    June 30,
                                                           2011        2010 
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Revenue from continuing operations                    $  10,596   $   7,953 
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Revised gross margin from continuing operations (1)       2,858       2,833 
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EBITDAS from continuing operations (1)                     (416)       (495)
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Net income (loss) from continuing operations             (3,149)     (2,573)
 Per common share - basic and diluted                 $   (0.02)  $   (0.02)
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Net loss from discontinued operations                         -        (184)
 Per common share - basic and diluted                 $    0.00   $   (0.00)
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Total net income (loss)                                  (3,149)     (2,757)
 Per common share - basic and diluted                 $   (0.02)  $   (0.02)
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Cash flow from/(used in) continuing operations,                             
before changes in non-cash working capital items (1)       (416)       (495)
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Cash flow from/(used in) continuing operations, after                       
changes in non-cash working capital items                 6,686       6,189 
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Cash flow from/(used in) discontinued operations              -        (173)
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(1) See definition within the Non-IFRS measures section                     



Outlook

Activity levels in Enseco's operating areas of Western Canada and the North
Dakota and Rocky Mountain regions of the United States continue to be very
strong, particularly following the wet spring quarter. It is expected that
demand for Enseco's services in both divisions will be at record levels
throughout the rest of the year.


Continued emphasis on resource play horizontal drilling will keep demand for
both directional drilling services and production testing flow back services at
a premium this year.


With the engineering improvements and reductions in rebuild times now available
through Enseco's in-house Measurement while Drilling lab, it is expected that
its rental requirements will remain minimal as activity continues to grow
throughout the year. 


With the increased revised gross margins, strong activity, minimal rentals and
reduced repair costs, it is expected that Enseco will realize stronger revised
gross margins throughout the remainder of the year. 


At the time of this press release, Enseco is expecting record results for the
month of August.


Share Consolidation and Option Grants

Enseco is also pleased to announce that its Board of Directors has decided to
proceed with the consolidation the Company's issued and outstanding common
shares on the basis of ten (10) pre-consolidated shares for one (1)
post-consolidated share, as more particularly described in the Company's
information circular - proxy statement dated April 4, 2011, which was approved
by the Company's shareholders on May 9, 2011. Enseco does not intent to change
its name in conjunction with the consolidation.


Enseco believes that the consolidation will benefit the Company on a go forward
basis by: (i) generating greater investor interest, (ii) increasing liquidity
for shareholders, and (iii) enabling the Company to be better able to respond to
the demands of the capital markets. The Company currently has 195,983,719 common
shares outstanding, which after giving effect to the proposed consolidation,
would result in the Company having approximately 19,598,372 common shares
outstanding. Completion of the consolidation is subject to the final acceptance
of the TSX Venture Exchange.


Enseco also announces that its Board of Directors has approved the grant of an
aggregate of 6,900,000 stock options to various officers, employees and
consultants of the Company. The options will have an exercise price equal to the
closing market price of the Company's common shares on the date that is five
trading days after the Company has released its June 30, 2011 financial
statements. The options will vest at the rate of one third per year commencing
on the grant date and will expire five years thereafter. Executive officers of
the Company will receive an aggregate of 1.4 million of the options granted.


ABOUT ENSECO ENERGY SERVICES CORP. 

Enseco is a premier supplier of directional drilling and production testing
services operating throughout the Western Canadian Sedimentary Basin and select
markets in the United States, with operations in the Bakken, Cardium, Viking,
Montney and Green River resource plays as well as a corporate and sales office
located in Calgary. Enseco is led by an experienced management team with a focus
on continued value creation through accretive acquisitions and organic growth. 


For further information please contact: 

Enseco Energy Services Corp. 

Lane Roberts, President and CEO 

Blair Layton, CFO

FORWARD-LOOKING STATEMENTS

Certain information and statements contained in this press release constitute
forward-looking information, including, but not limited to: statements
concerning Enseco's ability to comply with its credit facility covenants, the
benefits to be achieved with respect to Enseco's MWD laboratory; anticipated
growth in the Company's businesses; expectations regarding future revenues, cash
flow and margins, rental requirements and other financial results; expectations
regarding drilling activity levels and drilling programs, the benefits of and
completion of the proposed consolidation, and general industry conditions and
demand for the Company's services. Although management of the Company believes
that the expectations reflected in such forward looking statements are
reasonable, it can give no assurance that such expectations will prove to have
been correct. Accordingly, readers should not place undue reliance upon any of
the forward-looking information set out in this press release. Readers should
review the cautionary statement respecting forward-looking information that
appears below. All of the forward looking statements of the Company contained in
this press release are expressly qualified, in their entirety, by this
cautionary statement.


Forward-looking statements are based upon the opinions, expectations and
estimates of management as at the date the statements are made and are subject
to a variety of risks and uncertainties and other factors that could cause
actual events or outcomes to differ materially from those anticipated or implied
by such forward-looking statements. These factors include, but are not limited
to, such things as changes in industry conditions (including the levels of
capital expenditures made by oil and gas producers and explorers), the credit
risk to which the Company is exposed in the conduct of its business,
fluctuations in prevailing commodity prices or currency and interest rates, the
competitive environment to which the various business divisions are, or may be,
exposed in all aspects of their business, the ability of the Company's various
business divisions to access equipment (including parts) and new technologies
and to maintain relationships with key suppliers, the ability of the Company's
various business divisions to attract and maintain key personnel and other
qualified employees, various environmental risks to which the Company's business
divisions are exposed in the conduct of their operations, inherent risks
associated with the conduct of the businesses in which the Company's business
divisions operate, timing and costs associated with the acquisition of capital
equipment, the impact of weather and other seasonal factors that affect business
operations, availability of financial resources or third-party financing and the
impact of new laws or changes in administrative practices on the part of
regulatory authorities. The various risks to which Enseco is exposed are
described in additional detail in the Company's Annual Information Form under
the heading "Risk Factors" which is available on SEDAR at www.sedar.com.


With respect to forward-looking statements contained in this press release,
Enseco has made assumptions regarding commodity prices and royalty regimes,
availability of skilled labour, timing and amount of capital expenditures,
future foreign exchange rates, interest rates, the impact of increasing
competition, conditions in general economic and financial markets, effects of
regulation by governmental agencies, and future operating costs.


Management has included the above summary of assumptions and risks related to
forward-looking information provided in this press release in order to provide
shareholders with a more complete perspective on Enseco's future operations and
such information may not be appropriate for other purposes. Enseco's actual
results, performance or achievement could differ materially from those expressed
in, or implied by, these forward-looking statements and, accordingly, no
assurance can be given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what benefits that
the Enseco will derive there from. Readers are cautioned that the foregoing
lists of factors are not exhaustive. These forward-looking statements are made
as of the date of in this press release and Enseco disclaims any obligation to
update publicly any forward-looking statements, whether as a result of new
information, future events or results or otherwise, other than as required by
applicable securities laws.


NON-IFRS MEASURES

EBITDAS means earnings before interest, taxes, depreciation and amortization,
and stock-based compensation and is equal to earnings before income taxes from
continuing operations plus interest on debt, other charges and interest expense,
depreciation and amortization, stock-based compensation, unrealized foreign
exchange loss, and loss on sale of equipment. Cash flow means cash flows
provided by continuing operations before changes in non-cash working capital
items. Revised gross margin is calculated as revenues less direct costs.
EBITDAS, cash flows from continuing operations before changes in non-cash
working capital, and revised gross margin are not recognized measures under
IFRS. Management believes that in addition to net losses, EBITDAS, cash flows
from continuing operations before changes in non-cash working capital, and
revised gross margin are useful supplemental measures as they provide an
indication of the results generated by the Company's primary business activities
prior to consideration of how those activities are financed, amortized or how
the results are taxed in various jurisdictions as well as the cash generated by
the Company's primary business activities. Readers should be cautioned, however,
EBITDAS, cash flows from continuing operations before changes in non-cash
working capital, and revised gross margin should not be construed as an
alternative to net losses determined in accordance with IFRS as an indicator of
Enseco's performance. Enseco's method of calculating EBITDAS, cash flows from
continuing operations before changes in non-cash working capital, and revised
gross margin may differ from other organizations and, accordingly, EBITDAS, cash
flows from continuing operations before changes in non cash working capital, and
revised gross margin may not be comparable to measures used by other
organizations. See the Non-IFRS section in the Company's Management's Discussion
and Analysis for a reconciliation of these non-IFRS measures to the Company's
Financial Statements.