Ensign Expands U.S. Oilfield Services Division

Ensign Energy Services says that its wholly owned subsidiary, Ensign United States Drilling Inc., has acquired Action Oil Field Services, Inc. and Action Energy Services (collectively referred to as "Action Services") from Petro-Canada Resources (USA) Inc. The transaction, which closed on November 30, 2005, expands the Company's suite of oilfield services to include well servicing in the Rocky Mountain region of the United States. Action Services owns and operates eight well servicing rigs, one swabbing unit and 10 vacuum/fluid hauling trucks in Colorado; and three coalbed methane drilling rigs and other related equipment in Wyoming. The purchase price, which was not disclosed in accordance with the agreement, will be funded from existing working capital.

This acquisition represents the entry by the Company into the United States well servicing market. Ensign is currently the third largest well servicing contractor in Canada and performs workover services through its international division. Action Services also provides the Company with additional capability in the drilling of shallow coalbed methane wells in Wyoming. All key operations personnel associated with Action Services are expected to remain with the Company.