Enseco Energy Services Corp. Announces Results for the Three and Six Months Ended June 30, 2013

ENSECO ENERGY SERVICES CORP ("Enseco" or the "Company")(TSX VENTURE:ENS)
announces its financial results for the three and six months ended June 30, 2013


Results from Operations



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                                     Three months ended    Six months ended 
                                          June 30,             June 30,     
($ thousands, except per share                                              
 amounts)                                 2013      2012      2013      2012
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Revenue                              $   6,843 $  13,919 $  24,044 $  38,419
Adjusted gross margin (1)            $   1,293 $   3,996 $   6,615 $  13,035
EBITDAS (1)                          $ (1,994) $     154 $   (381) $   4,693
Net income (loss) before tax (1)     $ (3,793) $ (2,138) $ (4,049) $     233
  Per common share - basic           $  (0.17) $  (0.10) $  (0.18) $    0.02
  Per common share - diluted         $  (0.17) $  (0.10) $  (0.18) $    0.01
Net income (loss)                    $ (3,337) $ (2,418) $ (3,737) $   (138)
  Per common share - basic           $  (0.17) $  (0.11) $  (0.19) $  (0.01)
  Per common share - diluted         $  (0.17) $  (0.11) $  (0.19) $  (0.01)
Cash flow before changes in non-cash                                        
 working capital (1)                 $ (1,899) $   (593) $   (472) $   4,299
Cash flow from (used in) operating                                          
 activities                          $   3,860 $   6,099 $   7,661 $   9,766
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(1) See definition within the Non-IFRS Measures section of this press release.

Highlights for the three and six months ended June 30, 2013



--  Q2 2013 was a disappointing quarter. Enseco saw a 37% decline in revenue
    in the 6 months, and 52% decline in revenue in the 3 months ended June
    30, 2013. These declines are due to slower activity levels in the
    industry and an untypically wet spring. 

--  Enseco has spent the last few quarters working to minimize costs in an
    effort to improve gross margins and EBITDAS. The Company continues to
    consider all of its expenses and to restructure its operations. 

--  Enseco has minimized its spending on capital and other items to maintain
    fiscal strength through this period of slower industry activity. 



Outlook

Enseco expects improvement in Q3 and Q4 as work that was delayed due to weather
in the later part of Q2 now gets completed in Q3 and Q4.


Enseco's clients continue to drill but capital spending continues to be
constrained due to weak capital markets.


Management continues to carefully monitor industry activity levels in the
Western Canada and US operating areas to ensure equipment and manpower are
positioned to provide sustainable equipment utilization rates.


The Company will continue to search 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.


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 future revenues, cash flow, gross margins, EBITDAS, cost
management and other financial results; plans to improve utilization rates and
demand for the Company's services; statements as to future economic, industry
and operating conditions, including commodity prices 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. 


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]