Ensign Resource Service Group Inc'

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Ensign Resource Service Group Inc.
September 2001
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Disclaimer

• This presentation contains forward-looking
  statements based upon current expectations that
  involve a number of business risks and
  uncertainties. The factors that could cause
  results to differ materially include, but are not
  limited to, national and economic conditions, oil
  and natural gas prices, weather conditions and
  the ability of oil and gas companies to raise
  capital or other unforeseen conditions which
  could impact on the use of services supplied by
  the Corporation.

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2001 First Half Highlights

• Year over year increase in the demand for
  services
• Growth in the area of special equipment and
  services
• A well established financial foundation for
  future growth
• Completion of 3-for-1 stock split effective May
  31, 2001
• Foundation created for Arctic drilling

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Positioned for Tomorrow
Core Strengths

• Diverse operations
• Opportunistic growth strategy
• Commitment to safety and customer service
• Financial discipline

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Diverse Operations
Canadian Drilling - 1991
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Diverse Operations
Canadian Drilling - 2001
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Diverse Operations
Canadian Well Servicing - 1991
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Diverse Operations
Canadian Well Servicing - 2001
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Diverse Operations
Manufacturing and Production Services - 2001
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Diverse Operations
United States Drilling - 1994
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Diverse Operations
United States Drilling - 2001
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Opportunistic Growth Strategy

• Continued consolidation
• Accretive acquisitions
• Exploit new technology
• Managed growth

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Opportunistic Growth Strategy
Top Five in Canadian Drilling
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Opportunistic Growth Strategy
Top Five in Canadian Well Servicing
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Opportunistic Growth Strategy
Top Five in U.S. Drilling
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New Frontiers

• Initiatives for the future in the Canadian North

• Arctic Ensign Drilling Ltd.
• A working agreement on Inuvialuit lands
• Gwichin Ensign Oilfield Services Inc.
• A working agreement on Gwichin lands

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New Frontiers
ENSIGN RESOURCE SERVICE GROUP INC.
Initiatives in the Canadian North
Working agreements on land
Gwichin settlement area Inuvialuit settlement
region
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Commitment to Safety Personnel Development

• People, their skills and knowledge are one of our
  strongest assets
• Recruitment, training and personnel development
  programs will ensure
• Adequately trained staff
• The ability to meet staffing requirements
• The work force we require to continue growth
• We embrace our responsibility to provide a safe
  working environment

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Commitment to Customer Service
Assist our customers in solving industry
challenges

• In-house engineering expertise
• Design and construction of specialty equipment
• Equipment maintained to highest standards

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Financial Summary Outlook
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Capitalization - ESI

• Common 73,750,000
• Market Capitalization 960 million
• Dividends (policy began in September 1995)
• 1999 0.1542 per share
• 2000 0.1717 per share

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Debt-to-Equity
December 31 (millions)
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Revenue
Year ended December 31 (millions)
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EBITDA
Year ended December 31 (millions except per
share data)
Per Share 0.13 0.30 0.74 0.66 0.89 2.25
1.62 1.11 2.18
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Income
Year ended December 31 (millions except per
share data)
Per Share 0.08 0.16 0.35 0.30 0.42 1.10 0.72 0.42
1.19
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Return on Equity
Year ended December 31 (percent)
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Q2 Summary
(millions except per share data)
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Balance Sheet
As at June 30, 2001 (millions except as noted)

• Cash 36.9 Current Liabilities 134.6
• Other Current Assets 174.6 Long-term Debt 0.0
• Capital Assets 405.0 Future Income Taxes 86.2
• Shareholders Equity 395.7
• 616.5 616.5
• Working Capital 76.9

Long-term Debt to Equity 0.0
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For the Future
Continue to deliver shareholder value by

• Continued emphasis on profitable growth strategy
• Increased efficiencies and optimizing assets
• Maintaining financial flexibility
• Seeking opportunities to grow
• Technically
• Geographically
• Through acquisitions and
• By expansion of our current asset base.