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INVESTOR UPDATE www.secure-energy.ca | May 2012 | TSX: SES


COMPANY OVERVIEW

2

PROCESSING, RECOVERY & DISPOSAL “PRD” DIVISION

DRILLING SERVICES “DS” DIVISION

Rapid growth of environmental and mid-stream offerings to ensure all customers have a complete solution for oil/gas fluids and solids

Largest supplier of drilling fluids and related services in Western Canada, operating under trade names Marquis Alliance and XL Fluid Systems


GROWTH AND PERFORMANCE Est. March 2007

$800 Mil.

AGGRESSIVE

Organic growth strategies

600

Employees

88% EBITDA Year-over-year

per share growth

15

218%

339%

PRD Facilities

CAGR

2008-2011 Revenue

Year-over-year

Revenue Growth

Opportunity Rich + Strong Balance Sheet + Right People 3

$uccess

Enterprise Value


BOARD OF DIRECTORS Murray Cobbe, Lead Director*

Chairman of Trican Well Service, Director of Pason Systems, Bellatrix Exploration

Dave Johnson*

Chairman of Progress Energy Resources, Director of Pinecrest Energy

Brad Munro*

Former CCS Lead Director, Director of Guide Exploration, 49 North Resource Fund, Winalta

Kevin Nugent, C.A.*

Director of Savanna Energy Services, Trican Well Service, Former CEO of NQL Energy Services

Rene Amirault, President and CEO Secure Energy Services

George Wadsworth, President of Marquis Alliance Drilling Services Division of Secure 4

*Independent Directors


BUSINESS STRATEGY Organic Growth in key underserviced and capacity constrained markets

Expand Complementary and Recycling Services at Facilities

Exploit the Value Chain from Cradle to Grave, focusing on Environmental and Midstream Services

Acquire midstream assets and facilities from producers 5

Acquisitions that complement existing network


SECURE VALUE CHAIN DRILLING

• Drilling fluids • Solids Control • Drilling Waste Management • Drill cuttings to Landfill • Spent mud to FST • Recycling of hydrocarbon drilling mud

Exploit the value chain from cradle to grave, with a focus on environmental and midstream services

COMPLETIONS

• Completion waste to FST • Waste water to FST and SWD • Recycling of frac water • Frac water supply and storage • Water Fracs • Acid Fracs

PRODUCTION

• Treating and terminalling of crude oil • Produced water • Slop oil and tank bottoms • Pipeline spills • Plant maintenance

WELL WORKOVER & PRODUCTION ENHANCEMENT • • • •

6

Swabbing De-waxing Acidization Re-completion fluids

WELL ABANDONMENT & RECLAMATION

• Fluids and cement • Contaminated soil to landfill • Environmental services


PRD DIVISION Oilfield Waste Processing

Recycling Waste Oil

Crude Oil Marketing and Disposal

Drilling Fluids Crude Oil Emulsion Treatment

Recycling Oil Based Muds

Clean Oil Terminalling

Water Disposal Oilfield Landfill Disposal

7

Recycling Frac Water

Aerial shot of Drayton Valley FST


PEMBINA AREA CLASS I & II LANDFILL (“PAL”)

8


PRD FACILITIES FULL SERVICE TERMINALS 1. LA GLACE 2. FOX CREEK 3. DAWSON 4. KOTCHO 5. NOSEHILL 6. OBED 7. SOUTH GP 8. DRAYTON 9. SILVERDALE 10. JUDY CREEK (Dec./12) 11. ROCKYT MTN HOUSE (Dec./12) STAND ALONE WATER DISPOSAL FACILITIES

12. EMERSON 13. BRAZEAU 14. WILD RIVER (Q2/12) LANDFILLS

15. SOUTH GP 16. WILLESDEN GREEN 17. PEMBINA 18. FOX CREEK (Q4/12) 19. SADDLE HILLS (Q4/12)

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SECURE’S “PRD” GROWTH PROFILE

Recent Highlights • Expanded South Grande Prairie FST disposal capacity in Q4 2011 • Acquired Silverdale heavy oil processing Facility in Q4 2011 • Drayton Valley FST fully operational Q4 2011 • Wild River permanent SWD Facility online Q2 2012 • 2 FST’s and 2 Landfills to be constructed in 2012 10

Growth by Facility 16

14 12 10 8 6 4 2 0 2007 2008 2009 2010 SWD

FST

2011

Landfill


DS DIVISION

Drilling Fluids

|

Environmental Services

|

i

i

i

Oil and Water Based Muds

Drilling Waste Management Environmental Sciences

Centrifuge and Tank Rental

Integrated Solutions for Our Customers

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Solids Control


DS DIVISION

Legend Drilling Fluids Stock Points Drilling Fluids Hub Liquid Stock Points MA Lab Facilities Solids Control Rentals

MA Corporate Offices FST OBM Blending Facilities XL Fluids Operations Marquis Alliance Operations

Focus on leading resource plays in the Canadian WCSB and Northern US Markets

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Innovative and Patented Technologies leveraged to serve the expanding Deep/Horizontal, SAGD Drilling Markets


DS DIVISION Integrated Process for Recycling Oil Based Mud (“OBM”) OBM Blended at Facility

SES facility processes and treats waste

OBM waste delivered to SES facility

Innovative Recycling of OBMs through the combined technologies and resources of Secure and Marquis Alliance:

OBM used to drill well

o

Oil can be recovered from multiple sources: •

Cuttings sent to landfill

‘Spent’ Oil Based Muds

OBM Waste Generated

o

OBM blending facilities will be built at strategic FST locations South GP

Synergies

13

Recycle Oil

Drayton Valley

Reduce Transportation Costs Integrated Solutions to Manage Fluids & Solids

OBED Fox Creek


BUSINESS DRIVERS Western Canada Drilling Activity 30,000

90.0%

25,000

75.0%

20,000

60.0%

15,000

45.0%

Resource plays are the focus of E&P Companies now more than ever (Bakken, Cardium, Deep Basin, Duvernay, Montney, Viking) Trend towards

10,000

30.0%

5,000

15.0%

-

with longer horizontal legs means record meters drilled

0.0% 2001

2002

Total Wells Completed

2003

2004

2005

2006

2007

Total Metres Drilled (000s metres)

Sources: Daily Oil Bulletin

Greater volumes of drilling waste and completion fluids 14

Deeper Wells

2008

2009

2010

2011

Hz/Directional Wells as % of all Wells Drilled

Customers demand very

specialized drilling muds

in greater volumes for technically challenged wellbores


BUSINESS DRIVERS Total Producing Wells in Western Canadian Sedimentary Basin continue to climb

Treatment and Disposal Services

Western Canada Producing Oil & Gas Wells

for Oil & Gas bi-products continue to be in high demand

250,000

Regulatory and Environmental Standards are pushing

150,000

215,400 200,000

Tighter

E&P companies to outsource waste and water handling

133,400

100,000

50,000

0

Crude Oil Source: Canadian Association of Petroleum Producers (CAPP) *2011 data estimate: IHS Accumap

15

Natural Gas


BUSINESS DRIVERS WCSB Oil & Gas Wells Associated Water Production 3,000,000

Maturing Oil and Gas Reservoirs with

2,500,000

mounting water-cuts 2,000,000

1,500,000

Produced water increasing

1,000,000

8% per year

500,000

0 2001 Source: IHS Accumap

16

2002

2003

2004

2005

2006

2007

2008

2009

Water produced from Gas Wells (cubic metres/month) Water produced from Oil Wells (cubic metres/day)

2010

2011


2012 REVENUE MARKET SHARE Producers continue to

Production Bi-Products

outsource their water

continue to grow as the conventional WCSB matures

and waste handling needs

10%

21% 52% 13%

Secure CCS Other Source: Internal estimates

17

Newalta

4%

Oil & Gas Producers

2012 Revenue estimated $1.6 Billion/Year


PROFITABLE GROWTH 218% CAGR of Revenue

Track Record of Profitable Growth $0.80

from 2008-2011

$0.70

$ per Diluted Share

$0.60

CAGR EBITDA/Share 2008-2011 = 241%

$0.50 $0.40 $0.30 $0.20 $0.10 $0.00 ($0.10) 2007

2008 EBITDA per share

2009

2010

2011

Net Earnings per share

*Revenue figures exclude oil purchase and resale

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FINANCIAL RESULTS Quarter Ended March 31, 2012 Comparison* PRD Division Revenue Drilling Services Division Revenue** Total Revenue*** EBITDA EBITDA per Share: Basic Diluted

Q1/12 34,066 81,360 115,426 32,559 $ $

* All amounts in thousands, except per share amounts. ** Includes revenue from acquisition date of June 1, 2011. *** Revenue excludes oil purchase & resale.

119% Q1 YOY EBITDA

per share growth 19

0.36 0.35

Q1/11 20,423 20,423 10,702 $ 0.17 $ 0.16

% Change 67% 465% 204% 112% 119%


BALANCE SHEET STRENGTH March 31, 2012

($MMs)

Positive Working Capital Long Term Debt

89.5 119.0

Cash & Available Debt*

78.8

R12 EBITDA **

91.1

Consolidated Debt to EBITDA Ratio

1.45

Long Term Debt to Equity Substantial room on our debt covenants

32%

* $200 million 3 year term credit facility. ** Based on 12 month proforma contribution of Marquis Alliance & XL Fluids.

20

Yes


2012 CAPITAL BUDGET Capital Expenditures by Year

DRILLING DIVISION: $21MM Growth Capital: $14MM Expansion Capital: $2MM Sustaining Capital: $2MM Acquisitions: New West Drilling Fluids Assets $3MM

PRD DIVISION: $98 MM • Growth Capital: $80MM • Expansion Capital: $16MM • Sustaining Capital: $2MM

250 200

$MM

• • • •

300

150 3

100 6

50 0

Total Capital Budget: $119MM (est.) 21

187

12

59 23

10 2007

2008

2009

Organic

95

116

52 2010

2011

2012 (est.)

Acquisitions


SUMMARY Environmental and Midstream Services Exploiting the Value Chain from cradle to grave

Facility Expansion Opportunity rich from organic growth

Strong Balance Sheet Expand through accretive acquisition opportunities

Employer of Choice Based on leadership, corporate values and team culture

Entrepreneurial Culture “Help the Customer� Attitude Driven to be Better Stay Focused and Keep it Simple

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FORWARD-LOOKING STATEMENTS AND INFORMATION •

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This presentation contains forward-looking statements pertaining to: general market conditions; the oil and natural gas industry; activity levels in the oil and gas sector, including drilling levels; commodity prices for oil, NGLs and natural gas; demand for the Corporation's services; expansion strategy; the 2012 capital program; the amounts of the PRD and DS divisions' 2012 capital budgets and the intended use thereof; debt service; capital expenditures; completion of facilities; future capital needs; access to capital; acquisition strategy; the balance of the Corporation's capital spending on new full service terminals and landfills; and oil purchase and resale revenue. Forward-looking information concerning expected operating and economic conditions are based upon prior year results as well as assumptions that increases in market activity and growth will be consistent with industry activity and growth levels in similar phases of previous economic cycles. Forward-looking information concerning the availability of funding for future operations is based upon assumptions that sources of funding which the Corporation has relied upon in the past will continue to be available to the Corporation on terms favorable to the Corporation and that future economic and operating conditions will not limit the Corporation's access to debt and equity markets. Forward-looking information concerning the relative future competitive position of the Corporation is based upon assumptions that economic and operating conditions, including commodity prices, crude oil and natural gas storage levels, interest rates, the regulatory framework regarding oil and natural gas royalties, environmental matters, the ability of the Corporation to successfully market its PRD (as defined herein) services in the Western Canadian Sedimentary Basin (“WCSB”) and its DS division (as defined here) in the Western Canadian Sedimentary Basin, Eastern Canada, the Rocky Mountain region (consisting of Colorado, Wyoming, Montana and Utah), North Dakota and India will lead to sufficient demand for the Corporation's services, that the current business environment will remain substantially unchanged, and that, present and anticipated programs and expansion plans of other organizations operating in the energy service industry will result in increased demand for the Corporation's services. Forward-looking information concerning the nature and timing of growth is based on past factors affecting the growth of the Corporation, past sources of growth and expectations relating to future economic and operating conditions. Forward-looking information in respect of the costs anticipated to be associated with the acquisition and maintenance of equipment and property are based upon assumptions that future acquisition and maintenance cost will not significantly increase from past acquisition and maintenance costs. Many of these factors, expectations and assumptions are based on management's knowledge and experience in the industry and on public disclosure of industry participants and analysts relating to anticipated exploration and development programs of oil and natural gas producers, the effect of changes to regulatory, taxation and royalty regimes, expected industry equipment utilization in the WCSB, Eastern Canada, the Rocky Mountain region, North Dakota and India, and other matters. The Corporation believes that the material factors, expectations and assumptions reflected in the forward-looking statements and information are reasonable; however, no assurances can be given that these factors, expectations and assumptions will prove to be correct. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, including, but not limited to, those factors discussed below and under the heading "Risk Factors" and those discussed in the Corporation's MD&A of the audited December 31, 2011 financial statements and the most recent Information Circular and quarterly reports, material change reports and news releases. The Corporation cannot assure investors that actual results will be consistent with the forward-looking statements and readers are cautioned not to place undue reliance on them. Although forward-looking statements contained in this presentation are based upon what the Corporation believes are reasonable assumptions, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements in this document are expressly qualified by this cautionary statement. Unless otherwise required by law, Secure does not intend, or assume any obligation, to update these forward-looking statements. Certain supplementary measures in this presentation do not have any standardized meaning as prescribed under IFRS and, therefore, are considered non-GAAP measures. These measures are described and presented in order to provide information regarding the Corporation’s financial results, liquidity and its ability to generate funds to finance its operations. These measures should not be used as an alternative to IFRS measures because they may not be consistent with calculations of other companies. These nonGAAP measures, and certain operational definitions used by the Corporation, are further explained in Corporation's MD&A of the audited December 31, 2011 financial statements. Expansion, growth or acquisition capital are capital expenditures with the intent to expand or restructure operations, enter into new locations or emerging markets, or complete a business acquisition. Sustaining capital refers to capital expenditures in respect of capital asset additions, replacements or improvements required to maintain ongoing business operations. The determination of what constitutes sustaining capital expenditures versus expansion capital involves judgment by management.


Investor Presentation May 2012