Ensign Inks ADR 1500S Drill Rig Contract for Major Oil and Gas Operator

Ensign Energy Services Inc. ("Ensign" or the "Company") has just signed contracts for two of its new state-of-the-art ADR® 1500S pad drill rigs for a major oil and gas operator in the Montney area of northeast British Columbia. The ADR (Automated Drill Rig) 1500S is Ensign's most powerful next-generation of automated full-sized walking rigs. Ensign will roll out 24 of these new ADR 1500S rigs over the next 18 months.

At an approximate cost of $25mm per rig, these advanced drilling rigs will further expand Ensign's fleet to offer additional resource focused land-based drilling rig solutions for the oil and gas industry. Each rig will generate 50,000 man-hours of work during the construction phase and upon completion, each operating rig will directly and indirectly employ more than 100 workers. The new ADR 1500S drilling rig will continue and further enhance Ensign's contribution to the value chain in future LNG exports from Canada and around the world.

Wayne Kipp, Senior Vice-President of ADR Development notes, "Our customers asked for a more powerful rig to drill long lateral sections in horizontal wells, and a more agile rig to move quickly from pad to pad. The new ADR 1500S delivers just that and more. This advanced rig builds off-line double or triple stands while the rig is in full operation, with the ability to move to new well sites faster than other full-sized drilling rigs."

Ensign's ADR 1500S drilling rigs are designed and constructed in the Company's global rig manufacturing facilities located in Houston, Texas and Nisku, Alberta. Approximately half of Ensign's current global fleet are Automated Drill Rigs. Compared to conventional drilling rigs, the ADR 1500S is safer to operate, offers enhanced controls intelligence, reduced environmental footprint, quick mobility and advanced communications between field and office.

President and COO, Bob Geddes states, "In accelerating the build-out of the industry's most advanced automated rig, Ensign entrenches its position as a leader in directional drilling of deeper and more challenging resource plays. Our commitment to leading edge technology, as highlighted by this newest line of powerful and agile automated drilling rigs, underlines Ensign's strategy to continue to grow its drilling presence around
the world."

Ensign Energy Services Inc. is a global leader in oilfield services, headquartered out of Calgary, Alberta, operating in Canada, the United States and internationally. We are one of the world's top land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators. Our premium services include contract drilling, directional drilling, underbalanced and managed pressure drilling, rental equipment, well servicing and production services. Please visit our website at www.ensignenergy.com.

Source: http://www.ensignenergy.com

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