Essential Energy Services Announces 2014 Capital Budget

Essential Energy Services Ltd. (TSX:ESN) ("Essential" or the "Company")
announces the 2014 capital budget of $50 million comprised of $33 million of
growth capital and $17 million of maintenance capital. 


"Given the anticipated demand from our customers for long-reach coil tubing, and
the challenges the service industry has faced delivering this equipment to the
market, Essential has entered into long-term build programs with two leading
fabricators to deliver deep coil tubing rigs in 2014, 2015 and 2016," said
Garnet Amundson, President and Chief Executive Officer. 


2014 Capital Budget

Essential's 2014 growth capital spending is anticipated to consist primarily of
the following:




--  Three Generation IV masted deep coil tubing rigs, built by Option
    Industries Inc. ("Option"); 
--  One Generation III masted deep coil tubing rig, built by National
    Oilwell Varco ("NOV"); 
--  One quintiplex fluid pumper; 
--  One rod rig; and 
--  Rental equipment.



With a coil diameter of 2 5/8", the Generation III rigs can reach 4,900 meters
and the Generation IV rigs can reach 6,400 meters. 


"We are excited about the new Generation III and Generation IV masted deep coil
tubing rigs," said Mr. Amundson. "By the end of 2014 we will have seven new
state-of-the-art Generation III/IV deep masted coil rigs. These rigs have the
capability to work on long-reach horizontal wells and are well-suited to work in
deep, high pressure basins including the Montney, Horn River and Duvernay which
are expected to supply proposed liquefied natural gas ("LNG") export facilities
in British Columbia." 


The 2014 capital budget is expected to be funded from operating cash flow and as
required, the credit facility. Essential will monitor industry conditions into
2014 and may adjust the capital program if appropriate.


2015 Capital Plans

In addition to the coil tubing rigs in the 2014 capital budget, Essential has
arrangements to build one Generation III masted deep coil tubing rig and three
Generation IV masted deep coil tubing rigs to be delivered in 2015 and 2016. The
2014 capital budget includes deposits that will be required for the 2015 build
program.


2013 Capital Spending

Essential has increased its announced 2013 capital spending budget from $45
million to $50 million to include deposits and progress payments payable in 2013
for the 2014 build program. The $50 million estimated 2013 capital spend is
expected to include $37 million for growth capital and $13 million for
maintenance capital. In the third quarter, Essential took delivery of one
Generation III deep masted coil tubing rig from Surefire Industries
("Surefire"). Surefire was placed into receivership in September 2013 so
Essential will not take delivery of the remaining two coil tubing rigs that it
had placed deposits on in 2011. 


 In the fourth quarter, 2013, Essential expects to take delivery of:



--  One Generation III deep masted coil tubing rig from NOV; 
--  Two Generation IV deep masted coil tubing rigs from Option; 
--  Two mobile free standing, all period double service rigs, one of which
    is SAGD capable; and 
--  One rod rig. 



Equipment Count 

Essential anticipates the following equipment count after completion of 2013 and
2014 capital spending plans: 




---------------------------------------------------------------------------
                                                           Timing          
               2012     2013 Net  Forecast      2014           of  Forecast
             Actual Additions(1) Dec 31/13 Additions Additions(2) Dec 31/14
---------------------------------------------------------------------------
Coil tubing -                                                              
 deep            27            3        30         3   Q2, Q3, Q4        33
---------------------------------------------------------------------------
Coil tubing -                                                              
 other           19          (1)        18         0                     18
Coil tubing -                                                              
 total           46            2        48         3                     51
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
Nitrogen                                                                   
 pumpers         13            2        15         0                     15
---------------------------------------------------------------------------
Fluid pumpers    18            0        18         1           Q3        19
---------------------------------------------------------------------------
Service rigs     55            0        55         0                     55
---------------------------------------------------------------------------
Rod rigs         14          (1)        13         1           Q4        14
---------------------------------------------------------------------------

1.  2013 additions are net of the following retirements: two deep coil
    tubing rigs, four service rigs and two rod rigs.  
2.  Delivery of one coil tubing rig from the 2014 build program is expected
    in Q2/15.



ABOUT ESSENTIAL 

Essential is a growth-oriented, dividend paying corporation that provides
oilfield services to producers in western Canada for producing wells and new
drilling activity. Essential operates the largest coil tubing well service fleet
in Canada with 45 coil tubing rigs and a fleet of 54 service rigs. Essential
also sells, rents and services downhole tools and equipment including the Tryton
Multi-Stage Fracturing System. Further information can be found at
www.essentialenergy.ca.


READER ADVISORY 

This news release contains forward-looking statements and forward-looking
information within the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and
similar expressions are intended to identify forward-looking information or
statements. In particular, this news release contains forward-looking statements
including expectations regarding current year capital spending, future capital
spending, in-service dates of new equipment, capabilities of the new equipment,
expectations regarding supply areas for proposed LNG facilities, customer demand
and the type of oilfield services required, possible future adjustments to the
budget and plans to fund the capital spending with operating cash flow and the
credit facility. 


Although the Company believes that the expectations and assumptions on which
such forward-looking statements and information are reasonable, undue reliance
should not be placed on the forward-looking statements and information because
the Company can give no assurance that such statements and information will
prove to be correct. Since forward-looking statements and information address
future events and conditions, by their very nature they involve inherent risks
and uncertainties. 


Actual results could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to: the risks
associated with the oilfield services sector (e.g. demand, pricing and terms for
oilfield services; current and expected oil and natural gas prices; exploration
and development costs and delays; reserves discovery and decline rates; pipeline
and transportation capacity; weather, health, safety and environmental risks);
competition, and uncertainties resulting from potential delays or changes in
plans with respect to development projects or capital expenditures and changes
in legislation, including but not limited to tax laws, royalties, incentive
programs and environmental regulations; stock market volatility and the
inability to access sufficient capital from external and internal sources; the
ability of the Company's subsidiaries to enforce legal rights in foreign
jurisdictions; general economic, market or business conditions; global economic
events; changes to Essential's financial position and cash flow; the
availability of qualified personnel, management or other key inputs; currency
exchange fluctuations; changes in political and security stability; and other
unforeseen conditions which could impact the use of services supplied by the
Company. Accordingly, readers should not place undue reliance on the
forward-looking statements. Readers are cautioned that the foregoing list of
factors is not exhaustive.


Additional information on these and other factors that could affect the
Company's financial results are included in reports on file with applicable
securities regulatory authorities and may be accessed through the SEDAR website
(www.sedar.com) for the Company. The forward-looking statements and information
contained in this news release are made as of the date hereof and the Company
undertakes no obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws.


The TSX has neither approved nor disapproved the contents of this press release.

FOR FURTHER INFORMATION PLEASE CONTACT: 
Essential Energy Services Ltd.
Garnet K. Amundson
President and CEO
[phone]
[e-mail]


Essential Energy Services Ltd.
Karen Perasalo
Investor Relations
[phone]
[e-mail]