Overview of Results:

— Technicoil achieved solid results in the first quarter of 2009, a period overshadowed by the continued retraction in economic activity and reduced access to capital. A broad service offering and geographic diversity enabled the corporation to achieve the following results for the three month period ended March 31, 2009

— Continued to strengthen the corporation’s balance sheet, reducing long-term debt including current portion by CAD5.7 million (or 26%) to CAD16.6 million, and net debt represented by long-term debt net of working capital by CAD1.9 million (or 29%) to CAD4.7 million, relative to December 31, 2008

— An improvement in the well servicing division revenue of CAD0.5 million was more than offset by a CAD0.9 million reduction in revenue generated by the Drilling Division

— Achieved record first quarter operating hours and revenue for the well servicing division of 13,544 hours and CAD13.3 million, respectively, largely as a result of the focused expansion of the corporation’s services into the Montney and Horn River resource plays and an increase in other non-fracturing services. Operating hours and revenue increased from 12,432 hours and CAD12.8 million, respectively, in the comparable 2008 period

— Rig utilization of the well servicing division improved to 58% in the first quarter of 2009 in comparison with 53% for the same period of the prior year. Since December 2005, the only quarter to surpass this utilization rate was the fourth quarter of 2008

— Drilling rig utilization averaged 40% in comparison with average industry utilization of 36%

— Funds-flow from operations was CAD3.2 million for the first quarter of 2009 in comparison with CAD4.7 million for the same period of the prior year

— Completed construction of the corporation’s ninth conventional service rig, a free standing mobile double rig capable of servicing wells 4,000 meters deep, which began operations in March 2009

— The corporation was awarded the Canadian association of oilwell drilling contractors (CAODC) safety leadership award and the chairman of the board shield award, recognizing Technicoil’s achievements in safety in 2008

The economic environment in the first quarter of 2009 was challenging. Industry drilling rig utilization in the Western Canadian sedimentary basin (WCSB) fell considerably in the quarter, averaging only 36%, the lowest first quarter utilization rate since 1992. With the continued weakness in commodity prices and limited access to capital, the majority of exploration and production companies adjusted their capital spending plans for 2009 to limit capital investment to cash flow.

Service companies, including Technicoil, experienced significant pricing pressure resulting in lower charge-out rates. To respond to the weak economic environment, the corporation implemented a number of significant initiatives including: non-rig workforce reduction of about 10%, salary freeze for permanent employees, and a realignment of internal reporting functions resulting in a more responsive and efficient operation. For field operations, the corporation will be implementing wage reductions in the second quarter of 2009 following the announcement by the CAODC recommending members reduce the wages paid to rig workers by about 10%.

Entering the second quarter of 2009, the corporation has a strong balance sheet, a desirable product offering and a team focused on generating solid returns to shareholders. Capital investment will be curtailed, and maintenance and discretionary spending will be directed only towards those initiatives necessary to sustain operational efficiency.

Financial and Operating Results

Revenue:

The corporation generated revenue of CAD17 million in the first quarter of 2009 in comparison with CAD17.5 million for the comparable period of the prior year. Record first quarter revenue for the well servicing division of CAD13.3 million, representing an increase in comparison with the first quarter of 2008 of CAD0.5 million, was more than offset by a decline in revenue for the Drilling Division of CAD0.9 million.

Operating hours for the well servicing division increased by 9% in the first quarter of 2009 compared with the same period of the prior year, contributing to the increase in revenue for this division. An increase in conventional service work performed by the coiled tubing rig fleet, including activity in the Montney and Horn River resource plays, accounts for the increase in operating hours. The drilling division experienced a reduction in utilization rates with a resultant decline in operating days. The corporation’s drilling rig utilization rate of 40% compares favorably to the industry drilling rig utilization rate which averaged 36% (source: CAODC).

Gross Margin:

Gross margin for the first quarter of 2009 was CAD4.7 million, or 28% of revenue, in comparison with CAD6.2 million, or 35% of revenue for the three months ended March 31, 2008. Downward pressure on charge-out rates, customers more aggressively managing costs associated with capital and service programs, and the impact of labor rate increases which were implemented in the second half of 2008, contributed to the reduction in gross margin percentage in comparison with the first quarter of the prior year. The corporation was, however, able to maintain the gross margin percentage close to with the fourth quarter of 2008.

While higher labor costs contributed to the margin erosion in the first quarter of 2009 for both divisions, wage reductions for field workers to be implemented in the second quarter of 2009 will help alleviate the margin erosion in future periods provided that charge-out rates are maintained at current levels. Also contributing to the lower gross margin% was higher maintenance costs for the service rig fleet which historically have been deferred until the slower spring break-up season. The corporation utilized crew standby and non-operating days to perform routine maintenance on the fleet during the quarter to maintain quality standards.

General and Administrative Expense:

General and Administrative (G&A) expense was CAD0.9 million for the three months ended March 31, 2009, consistent with the same period of the prior year. As a percentage of revenue, G&A expense increased from 4.9% of revenue in the first quarter of 2008 to 5.1% largely as a result of the marginal reduction in revenue. In comparison with the first quarter of 2008, compensation expense was lower by CAD0.2 million primarily due to lower employee incentive compensation expense, legal costs increased by CAD0.2 million for general corporate matters and litigation, while other charges remained consistent.

Depreciation and Amortization:

Depreciation and amortization expense of CAD2.4 million for the first quarter of 2009 compares with CAD2.3 million for the same period of the prior year. The increase in depreciation expense is a result of the capital program from 2008 and the completion of the ninth conventional service rig in March 2009. During the quarter the corporation disposed of some redundant pressure control equipment for proceeds of CAD0.1 million resulting in a loss on sale of CAD0.1 million.

Other Items:

The corporation recorded a provision for bad debt expense of CAD0.2 million in the first quarter of 2009. No similar charge was recorded in the first quarter of 2008.

Interest expense was CAD0.2 million in the first quarter of 2009 compared with CAD0.4 million in the same period of the prior year.