Enseco Energy Services Corp. Announces Results for the Three Months Ended March 31, 2014

ENSECO ENERGY SERVICES CORP (TSX VENTURE:ENS) ("Enseco" or the "Company") (May
23, 2014) announces its financial results for the three months ended March 31,
2014.


Results from Operations



----------------------------------------------------------------------------
                                               Three months ended March 31, 
($ thousands, except per share amounts)              2014              2013 
----------------------------------------------------------------------------
Revenue                                   $        23,035   $        17,201 
Gross margin                              $         4,726   $         3,872 
Gross margin %                                         21%               23%
Adjusted gross margin (1)                 $         6,286   $         5,322 
Adjusted gross margin %                                27%               31%
EBITDAS (1)                               $         2,433   $         1,613 
EBITDAS %                                              11%                9%
Net income (loss) before tax (1)          $           476   $          (259)
  Per common share - basic                $          0.02   $         (0.01)
  Per common share - diluted              $          0.02   $         (0.01)
Net income (loss)                         $           476   $          (401)
  Per common share - basic                $          0.02   $         (0.02)
  Per common share - diluted              $          0.02   $         (0.02)
Cash flow before changes in non-cash                                        
 working capital (1)                      $         2,489   $         1,427 
Cash flow from (used in) operating                                          
 activities                               $        (5,243)  $         3,801 
----------------------------------------------------------------------------
 (1)See definition within the Non-IFRS Measures section of this press       
 release                                                                    



Highlights for the three months ended March 31, 2014



--  Q1 2014 was a very encouraging quarter. In recent months, Enseco has
    increased its sales presence in nearly every division and this quarter
    has seen a 34% increase in quarterly revenue compared to the prior year
    period. Each of the four divisions achieved an increase in their sales
    for the period, with USA Directional showing the largest improvements. 
    
--  A large percentage of equipment rentals were required due to the
    increase in sales activity. The Company will work to reduce these
    equipment rentals with owned assets. Efforts are also focused on
    reducing repair costs to improve the gross margin and EBITDAS of each
    division. 
    
--  The USA Directional division continues to create pace setting drilling
    records in a number of new areas in which it is now operating and its
    service quality continues to improve as more equipment is being serviced
    internally through the USA MWD facility and the Canadian motor shop. 
    
--  The Canadian Testing division continues to work for many of the larger
    E&P companies and has set new records for the number of staff working in
    the field throughout the quarter which translates into greater revenue
    for the division. 
    
--  In the Canadian Directional division, where nearly 100% of the motor and
    MWD fleet are serviced and repaired internally, enhancements have
    resulted in continuous service quality improvements. 



Outlook

Enseco expects the increase in re venue to continue through Q3 and Q4 as its
sales force continues to create new opportunities and its operations group
continue to focus and increase the level of service quality provided to their
clients.


Indications are that Enseco's clients are expanding their drilling and
completion programs through the remainder of 2014.


Management continues to work to secure the assets required to promote the
revenue growth and monitor costs to increase profitability while monitoring
operating areas to ensure equipment and manpower are positioned to provide
sustainable equipment utilization rates.


The Company will continue to search for new opportunities to grow the company
while looking for efficiencies and cost reductions to increase its gross margins
and EBITDAS. It is expected that the pursuit of these opportunities, accompanied
by initiatives to both improve margin efficiency, and reduce debt levels, will
continue to improve the Company's financial performance going forward.


Filings

Enseco has filed with Canadian securities regulatory authorities its unaudited
interim consolidated financial statements for the three months ended March 31,
2014 and accompanying management' discussion and analysis ("MD&A "). These
filings are available under Enseco's SEDAR profile at www.sedar.com.


About Enseco Energy Services Corp.

Enseco is a premier supplier of directional drilling, production testing and
frac flowback services operating throughout the Western Canadian Sedimentary
Basin and select markets in the United States, Our corporate office is located
in Calgary and sales offices are located in both Calgary and Denver. Enseco is
led by an experienced management team with a focus on continued value creation
through accretive acquisitions and organic growth.


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 future business strategy, focus, marketing and other plans;
expectations regarding the future performance of the Company's USA Directional
Drilling and Canadian Testing operations, the benefits from the Company's MWD
facilities and Canadian motor shop, including increased reliability; and
expectations regarding future revenues, cash flow, gross margins, EBITDAS,
efficiencies and cost reductions, future debt levels, sales and services, and
other financial results and industry activity levels; 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.


The information and statements contained in this press release that are not
historical facts are forward- looking statements. Forward-looking statements
(often, but not always, identified by the use of words such as "seek", "plan",
"continue", " estimate", "project", "predict", "potential", "targeting ",
"intend", "could", "might", "should", "believe", "expect", "may", "anticipate"
or "will" and similar expressions) may include plans, expectations, opinions, or
guidance that are not statements of fact. 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.


Forward-looking information concerning the nature and timing of growth within
the various business divisions is based on the current budget of the Company
(which is subject to change), factors that affected the historical growth of
such business divisions, sources of historic growth opportunities and
expectations relating to future economic and operating conditions.
Forward-looking information concerning the future competitive position of the
Company's business divisions is based upon the current competitive environment
in which those business divisions operate, expectations relating to future
economic and operating conditions, current and announced build programs and
other expansion plans of other organizations that operate in the energy service
business. Forward-looking information concerning the financing of future
business activities is based upon the financing sources on which the Company has
historically relied and expectations relating to the continued cooperation of
the Company's lender and future economic and operating conditions.
Forward-looking information concerning future economic and operating conditions
is based upon historical economic and operating conditions, opinions of
third-party analysts respecting anticipated economic and operating conditions.


With respect to forward-looking statements contained in this press release,
Enseco has made assumptions regarding commodity prices and royalty regimes,
availability of skilled labor, 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. Adjusted gross margin from
continuing operations equals gross margin, plus interest on debt, other charges
and interest expense, depreciation and amortization, stock-based compensation,
impairment loss/recovery, and loss on sale of equipment. Cash flow means cash
flows provided by continuing operations before changes in non-cash working
capital items.


EBITDAS, adjusted gross margin from continuing operations, and cash flows from
continuing operations before changes in non-cash working capital items are not
recognized measures under International Financial Reporting Standards ("IFRS").
Management believes that in addition to net losses, EBITDAS and cash flows, 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, that EBITDAS and cash
flows from continuing operations before changes in non-cash working capital
items 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 operating losses, EBITDAS and cash flows from continuing operations
before changes in non-cash working capital items may differ from other
organizations and, accordingly, such measures may not be comparable to measures
used by other organizations. For reconciliation to the appropriate IFRS measure,
see our MD&A.


Neither the TSX Venture Exchange nor its Regulation Service Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Enseco Energy Services Corp.
Kent Devlin, CEO
403-806-0088


Enseco Energy Services Corp.
Blair Layton, CFO
403-806-0088
[e-mail]