Mr. Trevor Russell reports

ENSIGN ENERGY SERVICES INC. - ANNOUNCES THE CLOSING OF THE ACQUISITION OF CITADEL DRILLING LTD.

Ensign Energy Services Inc. has completed the acquisition of all of the issued and outstanding shares of Citadel Drilling Ltd. for consideration of $65-million (U.S.) (subject to adjustments). All closing conditions were satisfied. Ensign financed the purchase price with cash on hand and available credit facilities.

Robert Geddes, Ensign's president and chief operating officer, commented on the acquisition: "We are thrilled to welcome our new employees to the Ensign team and look forward to the smooth integration of both field and office employees. With our now expanded high-spec drilling fleet in the U.S. Permian area, we look forward to leveraging these strong assets and the combined knowledge and experience of our highly trained work force in the continuing delivery of high-quality performance, safety and service to our customers."

About Ensign Energy Services Inc.

Ensign is a global leader in oilfield services, headquartered out of Calgary, Alta., operating in Canada, the United States and internationally. Ensign is one of the world's top land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators. Ensign's premium services include contract drilling, underbalanced and managed pressure drilling, rental equipment, well servicing, and production services.

Ensign's common shares are publicly traded through the facilities of the Toronto Stock Exchange under the trading symbol ESI.

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