M&A Quarterly Q4 2014

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1 Number of Transactions Quarterly Deal Statistics Western Canadian Energy and Industrial Services Transactions Q1-213 Q2-213 Q3-213 Q4-213 Q1-214 Q2-214 Q3-214 Q , 1,6 1,2 8 4 Total Disclosed Transaction Value $CAD (Millions) Transactions Total Disclosed Value saw 29 publicly disclosed energy and industrial services transactions involving Western Canadian based companies with an aggregate disclosed value of approximately $72 million. Both the volume and disclosed valuations are lower than Q4 213 (43 publicly disclosed transactions with an aggregate disclosed value of approximately $92 million). We would be happy to discuss specific details on the transactions in the last quarter. Contact information for our team is included on the last page of this newsletter. Market Commentary and Select Transactions Uncertainty and the Current Marketplace With crude prices dropping by over 5% from its highs this summer, market uncertainty is playing into most of the decisions made in Western Canada. For those that live and work here, this won t be the first or the last time we see the highs and lows that come with being a commodity centric economy, but it is painful nonetheless. As one of our industry panelists suggested at our 4 th Annual Energy Services Symposium held on November 2 th, the cure for low oil prices is low oil prices, how long it lasts remains to be seen however. The impact of low oil prices is already being felt. Operators have reduced their 215 capital budgets by anywhere from 15-25% and in some cases by upwards of 75%. Certainly, reduced capital spending will impact drilling activity and the services sector. Canadian rig counts decreased week over week by 8 rigs to 432 for the week ended January 23, and compared to the same period last year rigs were down by 158 rigs or 27%. Sources: Baker Hughes

2 Market Commentary and Select Transactions In the US, rig counts are still above long-term historical levels; however, last week s count at 1,633 rigs represents a decrease of 43 rigs compared to the week prior, and a decrease of 144 rigs or 8% compared to the same period last year. With rig counts continuing to plummet, the waiting game begins as well decline rates and increased oil demand will eventually spur higher commodity prices. The OPEC Effect While we re beginning to see North American activity decline, the same impact has not yet been seen among OPEC members. Over the past three months, members production has remained relatively stable with notable exceptions being Iraq and Libya. Iraq has seen continued resurgence of their oilfield despite falling prices and recent civil unrest. Experts suggest Iraqi production could reach upwards of 4. mmbbl/d in 215, which is 1. mmbbl/d above its historical average for the past 2 years. OPEC Production for the Past 3 Months - 's of Bbl/d October November December Change Nov. to Dec. Algeria 1,175 1,19 1, Angola 1,751 1,691 1, Ecuador Iran 3,1 3, 3,5 5 Iraq 3,54 3,9 3, Kuwait 2,831 2,79 2,8 1 Libya Nigeria 1,822 1,733 1, Qatar Saudi Arabia 9,69 9,61 9,63 2 UAE 2,691 2,763 2, Venezuela 2,329 2,323 2,324 1 Total OPEC 3,51 3,114 3, Production in Libya continues to fluctuate due to civil unrest in the country; falling from averages around 1.6 mmbbl/day to a mere.5 mmbbl/day. Despite grumbling from major producers, OPEC members and non-members, Saudi Arabia has been firm on its intention to allow market forces to settle at a market equilibrium price. When that is to occur is up for debate. Sources: Baker Hughes, OPEC January Oil Market Report, EIA

3 Well Count (Thousands) $CAD Billions Market Commentary and Select Transactions With Uncertainty Comes Opportunity As our keynote speaker and leading industry expert, Richard Spears, suggested at our Symposium, the best investments ever made were those in a downturn. Reiterating this point, we believe the current market environment provides some exciting opportunities for value creation. As an example of this, TriWest recently exited their investment in Gardewine in. Selling the business for $17 MM to the Mullen Group. TriWest purchased Gardewine Group, a freight transportation services provider, in 28 during the last downturn from Paul s Hauling. What Should I do Now? To prepare for the eventual rising tide, there are a number of steps that can be taken to best position your business: D Stress test the balance sheet Ensure you have adequate capital in place and the right financial partners to weather the storm. Adequate access to capital will provide financial flexibility to take advantage of opportunities. Talk to your customers and suppliers Reconnect with customers and suppliers to hear what they re doing and defend your company s market share. Plan! Look for areas where efficiencies can be gained and opportunities can be exploited. If you can do a deal, opportunities exist - An acquisition can provide access to new markets, enhanced capabilities, proprietary technologies, and complimentary product offerings. Being Western Canada s leading mid-market corporate finance advisors, we have lived through and worked with many businesses during similar downturns. We understand the anxiety, opportunities and challenges currently being faced by business owners and would be happy to chat and explore how we can help you best weather the storm and come out on top. Western Canadian Total Well Count What Should I do Now? Industry Overview Operating Days (Thousands) Oil Sands Capital Spending $35 $3 $25 $2 $15 $1 $5 $ Sources: CAPP, CAODC Mining & Upgraders In-Situ

4 $CAD/bbl $CAD/MMBtu $CAD (Thousands) $CAD (Thousands) $CAD (Millions) Average Rig Count WCSB Land Sales 6, 5, 4, 3, 2, 1, Industry Overview Western Canada Active Rig Count (Q4) % 6% 5% 4% 3% 2% 1% % Rig Utilization $35 BC AB Sask Manitoba Average Revenue per Fracking Job Average Active Drilling Rigs Average Utilization Drilling Rig Rates per Operating Day $35 $3 $25 $2 $15 $1 $3 $25 $2 $15 WTI, WCS, and Par Prices $12 Canyon Calfrac Commodity Price Overview CanElson Precision Western Trinidad Savanna AECO and Henry Hub Prices $6. $1 $4. $8 $6 $2. $4 $. Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 WTI WCS Par Henry Hub AECO Sources: Natural Resources Canada, S&P Capital IQ, CAPP, CAODC, Baker Hughes, Company Reports and Press Releases

5 Select Companies Operating in the Canadian OFS Sector As at Jan 26, 215 Share Dividend Market Enterprise TTM EBITDA EV/EBITDA Price/ Net Debt/ Ticker Price Yield Cap Value Revenue EBITDA Margin TTM 214E 215E Book TTM EBITDA (%) ($mm) ($mm) ($mm) ($mm) (%) (x) (x) (x) (x) (x) Drilling & Equipment CanElson Drilling Inc. TSX:CDI $ % % 3.9x 3.7x 5.1x.8x.4x CWC Energy Services Corp. TSXV:CWC $ % % 6.2x 5.2x 5.2x.6x 2.2x Ensign Energy Services Inc. TSX:ESI $ % 1,56 2,231 2, % 4.3x 4.2x 5.2x.7x 1.4x Essential Energy Services Ltd. TSX:ESN $ % % 3.6x 3.4x 4.3x.5x 1.x High Arctic Energy Services Inc TSX:HWO $ % % 3.5x 3.5x 3.1x 1.3x NM Hyduke Energy Services Inc. TSX:HYD $ (6) NM NM NM NM.7x NM Leader Energy Services Ltd. TSXV:LEA $ % 15.2x NM NM NM 14.8x McCoy Global Inc. TSX:MCB $ % % 3.8x 3.1x 3.1x 1.x NM Pason Systems Inc. TSX:PSI $ % 1,488 1, % 6.9x 5.1x 6.3x 3.4x NM PHX Energy Services Corp. TSX:PHX $ % % 4.7x 4.1x 5.2x 1.x 1.6x Precision Drilling Corporation TSX:PD $ % 1,956 3,192 2, % 4.2x 4.x 4.6x.8x 1.6x Savanna Energy Services Corp. TSX:SVY $ % % 3.6x 3.4x 4.6x.2x 2.1x Total Energy Services Inc. TSX:TOT $ % % 4.9x 4.5x 5.4x 1.1x.5x Trinidad Drilling Ltd. TSX:TDG $ % % 3.8x 3.9x 4.4x.5x 1.4x Western Energy Services Corp. TSX:WRG $ % % 3.8x 3.7x 4.8x.7x 1.3x Xtreme Drilling and Coil Services Corp. TSX:XDC $ % 3.4x 3.5x 3.7x.4x 1.5x Mean 24.4% 5.x 3.9x 4.7x.9x 2.5x Median 23.8% 3.9x 3.8x 4.7x.7x 1.4x Production & Completion Bri-Chem Corp. TSX:BRY $ % 9.5x 4.7x 4.4x.4x 6.9x Calmena Energy Services Inc. TSX:CEZ $ % 11.9x NM NM.x 11.3x Canadian Energy Services & Technology Corp. TSX:CEU $ % 1,24 1, % 1.7x 9.1x 8.6x 2.4x 2.3x Cathedral Energy Services Ltd. TSX:CET $ % % 4.2x 3.6x 5.5x.6x 1.7x Computer Modelling Group Ltd. TSX:CMG $ % % 2.3x NM 18.9x 14.2x NM Enerflex Ltd. TSX:EFX $ % 1,232 1,572 1, % 1.6x 7.5x 5.9x 1.3x 2.3x Enseco Energy Services Corp. TSXV:ENS $ % 1.4x NM NM.1x 9.6x Estrella International Energy Services Ltd TSXV:EEN $ % 7.3x NM NM.2x 2.1x Great Prairie Energy Services Inc. TSXV:GPE $ NM NM 2.8x 3.1x.9x.x Logan International Inc. TSX:LII $ % 5.3x 4.4x 5.8x.6x 1.3x LoneStar West Inc TSXV:LSI $ % 13.6x 9.2x 5.6x 1.5x 2.6x MatRRix Energy Technologies Inc. TSXV:MXX $ % 4.3x 2.9x 3.8x.6x NM Raise Production Inc TSXV:RPC $ (1) NM NM NM NM 1.8x NM Strad Energy Services Ltd. TSX:SDY $ % % 3.4x 3.2x 3.8x.9x.9x ZCL Composites Inc. TSX:ZCL $ % % 7.4x 6.4x 5.4x 1.5x NM Mean 14.7% 9.1x 5.4x 6.4x 2.4x 3.7x Median 12.3% 9.5x 4.5x 5.5x.9x 2.3x Oilfield & Facility Construction Aecon Group Inc. TSX:ARE $ % 597 1,18 2, % 9.2x 5.9x 4.7x 1.x 3.8x Badger Daylighting Ltd. TSX:BAD $ % % 9.1x 8.1x 7.5x 4.2x 1.x Bird Construction Inc. TSX:BDT $ % , % 9.7x 7.x 6.1x 2.9x NM Cordy Oilfield Services Inc. TSXV:CKK $ (7) NM NM NM NM.1x NM Dalmac Energy Inc. TSXV:DAL $ % 2.7x NM 2.8x.4x 1.9x Enterprise Group, Inc. TSX:E $ % 4.2x 2.9x 2.1x.5x 1.4x Finning International Inc. TSX:FTT $ % 3,915 5,23 6, % 7.1x 7.1x 7.1x 1.9x 1.8x Gemini Corp. TSXV:GKX $ % 8.4x 5.4x 4.5x 1.1x.9x Macro Enterprises Inc. TSXV:MCR $ % 3.1x 3.5x 1.9x.6x.6x North American Energy Partners Inc. NYSE:NOA $ % % 4.9x 4.6x 4.9x.6x 2.4x Petrowest Corporation TSX:PRW $ % 5.x 4.6x 3.5x 1.4x 1.6x ShawCor Ltd. TSX:SCL $ % 2,414 2,85 1, % 8.9x 7.8x 7.2x 2.5x 1.2x Toromont Industries Ltd. TSX:TIH $ % 2,146 2,276 1, % 9.7x 9.5x 8.9x 3.4x.6x Mean 12.8% 6.8x 6.x 5.1x 1.6x 1.5x Median 12.5% 7.7x 5.9x 4.8x 1.1x 1.4x

6 Select Companies Operating in the Canadian OFS Sector As at Jan 26, 215 Share Dividend Market Enterprise TTM EBITDA EV/EBITDA Price/ Net Debt/ Ticker Price Yield Cap Value Revenue EBITDA Margin TTM 214E 215E Book TTM EBITDA (%) ($mm) ($mm) ($mm) ($mm) (%) (x) (x) (x) (x) (x) Pressure Pumping Calfrac Well Services Ltd. TSX:CFW $ % 813 1,452 2, % 5.x 4.1x 5.9x 1.x 2.2x Canyon Services Group, Inc. TSX:FRC $ % % 6.4x 4.2x 5.4x 1.2x.6x GASFRAC Energy Services, Inc. TSX:GFS $ (24) NM NM NM NM.2x NM Trican Well Service Ltd. TSX:TCW $ % 78 1,487 2, % 8.3x 5.6x 7.4x.6x 3.9x Mean 12.2% 6.6x 4.6x 6.2x.7x 2.3x Median 13.2% 6.4x 4.2x 5.9x.8x 2.2x Transportation & Logistics Aveda Transportation and Energy Services Inc. TSXV:AVE $ % 5.1x 4.5x 3.2x.6x 2.9x Gibson Energy Inc. TSX:GEI $ % 3,46 4,64 8, % 9.7x 9.2x 8.6x 2.1x 2.4x Mullen Group Ltd. TSX:MTL $ % 1,881 2,252 1, % 7.7x 7.7x 8.6x 2.1x 1.3x TransForce Inc. TSX:TFI $ % 2,879 4,37 3, % 11.1x 9.9x 7.2x 3.x 3.2x Mean 12.7% 8.4x 7.8x 6.9x 2.x 2.5x Median 12.9% 8.7x 8.4x 7.9x 2.1x 2.7x Environmental & Waste Management Canadian Oil Recovery & Remediation Enterprises Ltd. TSXV:CVR $ (2) NM NM NM NM 2.8x NM Formation Fluid Management Inc. TSXV:FFM $ () NM NM NM NM 1.4x NM New West Energy Services Inc. TSXV:NWE $ % 8.9x NM NM.3x 6.9x Newalta Corporation TSX:NAL $ % 858 1, % 8.2x 7.2x 8.9x 1.3x 2.8x RDX Technologies Corporation TSXV:RDX $ (8) NM NM NM NM.4x NM Secure Energy Services Inc. TSX:SES $ % 1,82 2,143 2, % 11.3x 1.1x 9.5x 2.3x 1.8x Mean 11.% 9.5x 8.6x 9.2x 1.4x 3.8x Median 9.1% 8.9x 8.6x 9.2x 1.3x 2.8x Exploration & Geophysical Divestco Inc. TSXV:DVT $ % 5.6x NM NM.4x 4.1x Pulse Seismic Inc. TSX:PSD $ % % 7.3x NM 6.x 2.7x.4x Tesla Exploration Ltd. TSX:TXL $ % 6.2x NM NM.4x 3.9x Mean 3.9% 6.4x NM 6.x 1.2x 2.8x Median 9.5% 6.2x NM 6.x.4x 3.9x Camps & Catering Black Diamond Group Limited TSX:BDI $ % % 3.7x 3.9x 4.3x 1.1x.8x CERF Incorporated TSXV:CFL $ % % 11.5x 4.8x 3.5x.7x 3.7x Civeo Corporation NYSE:CVEO $ % 415 1,8 1, % 2.6x 2.7x 5.9x.3x 1.4x Horizon North Logistics Inc. TSX:HNL $ % % 5.x 4.3x 4.7x.9x 1.9x WesternOne Inc. TSX:WEQ $ % % 9.3x 7.3x 5.6x 1.1x 6.x Mean 23.% 6.4x 4.6x 4.8x.8x 2.8x Median 17.5% 5.x 4.3x 4.7x.9x 1.9x Large Cap NYSE Oilfield Majors (Sorted by EV) Schlumberger Limited NYSE:SLB $ % 133, ,39 56,259 15, % 9.x 8.4x 1.3x 2.8x.4x Halliburton Company NYSE:HAL $ % 43,658 5,522 38,66 8, % 5.9x 5.5x 7.7x 2.2x.7x Baker Hughes Incorporated NYSE:BHI $ % 31,683 34,656 28,432 5, % 6.3x 5.9x 7.8x 1.4x.5x National Oilwell Varco, Inc. NYSE:NOV $ % 3,891 29,837 27,592 5, % 5.8x 5.3x 5.6x 1.2x NM Weatherford International plc NYSE:WFT $ ,558 2,766 16,682 2, % 8.x 5.6x 6.4x 1.1x 3.5x Transocean Ltd. NYSE:RIG $ % 7,422 17,159 1,535 4,25 4.3% 4.x 3.8x 5.1x.4x 2.x Cameron International Corporation NYSE:CAM $ ,893 14,683 12,37 1, % 7.9x 7.3x 7.6x 1.8x 1.2x Ensco plc NYSE:ESV $ % 8,484 14,388 5,792 2, % 5.1x 4.9x 5.3x.6x 1.9x FMC Technologies, Inc. NYSE:FTI $ ,15 12,169 8,758 1, % 8.5x 7.5x 7.3x 3.4x.6x Noble Corp. NYSE:NE $ % 5,269 11,969 5,271 2, % 4.7x 4.8x 6.x.6x 2.x Nabors Industries Ltd. NYSE:NBR $ % 4,14 8,826 7,49 1, % 4.5x 4.x 4.5x.6x 2.2x Helmerich & Payne, Inc. NYSE:HP $ % 8,661 8,312 4,158 1, % 4.8x NM 4.8x 1.4x NM Diamond Offshore Drilling, Inc. NYSE:DO $ % 5,591 7,52 3,97 1, % 5.6x 5.2x 4.9x 1.x 1.x Mean 27.2% 6.3x 5.7x 6.7x 1.4x 1.5x Median 22.4% 5.9x 5.5x 6.4x 1.2x 1.6x

7 Recent Transactions Sequeira Partners acted as exclusive advisor for the following transactions that closed in the quarter: Our Team Aroon Sequeira, CA, CBV, ICD.D Advisor to in its acquisition of Advisor to in sourcing minority equity capital from Mark McRae, CA, CBV Julie Afanasiff, CA, CBV Ken Tarry, MBA ext. 21 Kellie Manchester, CFA ext. 22 Founded in 24, Strike is a leading oilfield services and construction company based in, Alberta and servicing the oil and gas industry in Western Canada. Currently 41 employee-shareholders and over 9 employees in multiple locations from north east British Columbia to central Saskatchewan provide services to a "who's who" list of energy clients. New Wave Energy Services Group specializes in full service on-site frac fluid storage and handling. Founded in late 211, New Wave has grown through the acquisition of complimentary businesses and now has operations throughout North America. The company is headquartered in with operations currently in Canada, North Dakota, Oklahoma, Colorado and Texas. Wendy Baragar wbaragar@sequeirapartners.com Scott Acheson, CA sacheson@sequeirapartners.com Jordan Mannas, CA, CFA jmannas@sequeirapartners.com Erica McGuinness, CA emcguinness@sequeirapartners.com ext. 23 About Us With offices in, and, Sequeira Partners is focused on sell-side M&A services to mid-market energy and industrial service companies. We welcome your thoughts or comments on the newsletter or any inquiries as to how we could assist you or your business with its transaction needs. 179, 999 West Hastings Street, BC, V6C 2W , 4445 Trail NW, AB, T6H 5R , th Street SW, AB, T2R 1J