Ensign to Build Eight Additional Rigs for Its U.S. Market

Ensign Energy Services Inc. says that its wholly owned subsidiary, Ensign United States Drilling Inc. ("Ensign USA"), has commenced the construction of eight additional drilling rigs for the United States market. All of the drilling rigs under construction are supported by long-term commitments with various customers. This investment in new drilling rigs and related equipment will occur throughout 2006 and will be funded from existing working capital, internally generated funds and available credit facilities.

The drilling rigs are comprised of: four new 1,000hp AC electric self-moving drilling rigs for use in Wyoming; two 1,000hp AC electric rigs for use in Wyoming and North Dakota; and two new Automated Drill Rigs ("ADRs") for use in California and Wyoming. These ADRs will be the first developed for the United States market using the Company's proprietary technology developed in the Canadian market. In addition to these eight rigs, Ensign USA is refurbishing two other drilling rigs which have been transferred from the Company's Canadian Drilling division. Upon completion of the new-build program, Ensign USA will operate a fleet of 69 drilling rigs in the United States, one of the largest and most modern fleets in the Rocky Mountain region and California markets.