Mr. Michael Gray reports

ENSIGN ENERGY SERVICES INC. ANNOUNCES COMPLETED TERM LOAN AGREEMENT AND PROVIDES UPDATE ON CREDIT FACILITY

Ensign Energy Services Inc. has completed a $369.0-million term credit facility with its syndicate of lenders. Concurrently, the company has amended and extended the existing $900.0-million revolving credit facility agreement with its syndicate of lenders.

The term facility matures three years after it is drawn and provides Ensign exposure to favourable rate terms and leverages near-term free cash flow generation. Ensign intends to use the proceeds from the term facility and available liquidity to redeem its outstanding 9.25 per cent senior notes due April 15, 2024, on or before Dec. 31, 2023. The term facility is subject to 30-per-cent amortization in the first year, 30-per-cent amortization in the second year and 40-per-cent amortization in the third year.

The maturity date of the credit facility has been extended for three years to October, 2026. The amended and extended credit facility also provides Ensign with continued access to revolver capacity and near-term flexibility in a constructive market.

The amendments to the credit facility includes a reduction of the facility by $50.0-million at the end of the second quarter of 2024, a $75.0-million reduction at the end of the fourth quarter of 2024 and a further reduction of $75.0-million by the end of the second quarter of 2025. The final size of the credit facility will be $700.0-million.

The company reaffirms its debt reduction for 2023, targeted to be approximately $200.0-million. As of June 30, 2023, Ensign's total debt, net of cash, was reduced by $112.5-million since Dec. 31, 2022. Furthermore, Ensign's target debt reduction for the period beginning 2023 to the end of 2025 is approximately $600.0-million. If industry conditions change, this target could be increased or decreased.

The term facility and amended credit facility agreement will be made available on SEDAR+.

About Ensign Energy Services Inc.

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

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