Ensign Energy Services Inc. announces expansion of its international oilfield
services division

CALGARY , Dec. 31 /CNW/ - Ensign Energy Services Inc . ("Ensign" or the "Company") is pleased to announce that it has acquired all of the stock of FE Services Holdings, Inc. ("Foxxe"), a private company with headquarters in Houston , Texas. Foxxe owns and operates six (6) drilling rigs in Mexico as "Foxxe Energy Services". The transaction, which is effective December 31, 2009 , marks the expansion of the Company's international oilfield services operations into Mexico . The purchase price, which was not disclosed in accordance with the agreement with Foxxe, has been funded from existing working capital and available lines of credit.

Mexico contains significant onshore oil reserves and the state-owned oil company, PEMEX, has taken steps in recent years to reverse a declining production profile for the country. The increase in investment in onshore oilfield services has resulted in a number of foreign contractors relocating drilling equipment to Mexico over the past couple of years to meet the increased levels of demand. Ensign views the Foxxe opportunity as an excellent entry point into this major land drilling market. Ensign expects to leverage off of Foxxe's existing contracts and operating expertise in this new region for the Company. Upon completion of the proposed transaction, Ensign's international oilfield services operations will be comprised of 55 drilling and workover rigs.

All of Foxxe's drilling rigs were newly constructed within the last two years and are capable of drilling to depths of approximately 10,000 feet. The drilling rigs are currently contracted and operating in the Chicontepec and EPC fields in Mexico . Under the leadership of the Foxxe management team led by James Stewart , Foxxe has quickly developed a reputation for high-quality, efficient drilling performance delivered in a safe manner. Ensign is pleased that all key personnel associated with the Foxxe operations have indicated their willingness to remain with Ensign upon completion of the transaction.

Ensign Energy Services Inc . is an international oilfield services contractor based in Calgary , Alberta. Ensign's Common Shares (symbol: ESI) are publicly traded through the facilities of the Toronto Stock Exchange.

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For further information: Glenn Dagenais, Executive Vice President Finance and Chief Financial Officer, [phone]