Mr. Garnet Amundson reports

ESSENTIAL ENERGY SERVICES ENTERS INTO BOUGHT DEAL FINANCING

Essential Energy Services Ltd. has entered into an agreement with a syndicate of underwriters led by Raymond James Ltd. and Peters & Co. Ltd., and including TD Securities Inc., Cormark Securities Inc., Canaccord Genuity, Clarus Securities, PI Financial and HSBC Securities (Canada) Inc., pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 15,384,615 common shares at 65 cents per share for gross proceeds of approximately $10-million. Essential has also granted the underwriters an option to purchase an additional 2,307,692 shares at the issue price to cover overallotments, if any, and for market stabilization purposes, for additional gross proceeds of up to approximately $1.5-million. The overallotment option is exercisable in whole or in part at any time until 30 days after the closing of the offering.

The offering will be completed by way of short form prospectus in all provinces of Canada except Quebec, and on a private placement basis in the United States pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended. The offering is subject to customary conditions, including, without limitation, the approval of the Toronto Stock Exchange, and is expected to close on or about Oct. 12, 2016.

The net proceeds of the offering are expected to be used to partially repay outstanding indebtedness, which may be redrawn and used to finance capital expenditures, acquisitions, organic growth initiatives, working capital and for general corporate purposes.

We seek Safe Harbor.