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SECURE INVESTOR PRESENTATION May 2010 www.secure-energy.ca TSX: SES

Secure Energy Services - Investor Presentation

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Investor Presentation - May 2010

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Page 1: Secure Energy Services - Investor Presentation

SECURE INVESTOR PRESENTATION

May 2010

www.secure-energy.ca TSX: SES

Page 2: Secure Energy Services - Investor Presentation

VISION & MISSION STATEMENTS

VISION

Energy Services company that grows to an enterprise value of over $1 billion

MISSION

• Provide customer driven solutions that are cost effective

• Exceed our customers’ service and value expectations

• Have a fun and entrepreneurial culture

• Develop leaders at work and in the community

• Ensure profitable growth and become an industry leader

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Page 3: Secure Energy Services - Investor Presentation

HISTORY

• Assembled Executive team with treating and disposal

experience late 2006 and 2007

• Over $155 million equity raised since inception

• Over 80 employees in the field and 20 in head office

• Secure’s first facility opened October 2007

• Secure’s network has grown to 10 facilities in Western

Canada

• IPO completed and listed on the TSX March 30, 2010

• Current Market Cap value approx. $230 million 3

Page 4: Secure Energy Services - Investor Presentation

EXECUTIVE TEAM

Rene Amirault, President and Chief Executive Officer 29 years experienceIOL, CCS, Consultant

Nick Wieler, V.P. Finance 20 years experience IOL, Newalta, CCS

Karen Myrheim, V.P. Sales & Marketing24 years experience, CCS, Enerland, Triumph EPCM

Gary Perras, V.P. Operations15 years experience, Sask Energy, CCS

Dan Steinke, V.P. Business Development25 years experience, Koch, CCS, SCF Partners

Gord Getzinger, Sr. Sales and Marketing Manager20 years experienceNelson Bros., Trottier Trucking, CCS

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Page 5: Secure Energy Services - Investor Presentation

BOARD OF DIRECTORS

Rene Amirault

President & CEO of Secure Energy Services Inc.

Murray Cobbe (Lead Director) Executive Chairman of Trican Well Service Ltd.

Dave JohnsonExecutive Chairman of Progress Energy Resources Corp.

Brad MunroFormer CCS lead director, Director of Galleon, 49 North Resource Fund, Winalta,

Kevin Nugent C.A.Former CEO of NQL Energy Services Inc., Director of Savanna & Trican

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Page 6: Secure Energy Services - Investor Presentation

CORE SERVICES

Secure Energy Services is a Western Canadian

Company that provides:

• Crude Oil Emulsion Treatment

• Clean Oil Terminaling

• Crude Oil Marketing and Storage

• Oilfield Waste Processing

• Produced and Waste Water Disposal

• Oilfield Solids Disposal

• Tank and Truck Wash

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Page 7: Secure Energy Services - Investor Presentation

SECURE LOCATIONS & PROPOSED FACILITIES

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*

* PAL (recent acquisition)

Page 8: Secure Energy Services - Investor Presentation

FULL SERVICE TERMINAL (FST)

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Page 9: Secure Energy Services - Investor Presentation

STAND-ALONE WATER DISPOSAL FACILITY (SWD)

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Page 10: Secure Energy Services - Investor Presentation

CLASS II OILFIELD LANDFILL

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Page 11: Secure Energy Services - Investor Presentation

SECURE VALUE CHAIN

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Page 12: Secure Energy Services - Investor Presentation

WESTERN CANADA PRODUCING OIL & GAS WELLS

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Page 13: Secure Energy Services - Investor Presentation

AB & BC OIL & GAS WATER PRODUCTION

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Page 14: Secure Energy Services - Investor Presentation

WELLS DRILLED VS DIRECTIONAL DRILLING

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Page 15: Secure Energy Services - Investor Presentation

BUSINESS STRATEGY

• Exploit the value chain from cradle to grave focusing on

disposal and treating energy services

• Organic growth in key under serviced and capacity constrained markets

• Add environmental recycling services at existing plants

• Increase mid-stream offerings

• Acquire small independents

• Acquire surplus assets and facilities from producers

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Page 16: Secure Energy Services - Investor Presentation

COMPETITIVE ADVANTAGES

• Lower cost structure than competitors

• Field relationships – Consultants, Truckers, Oil & Gas

Producers

• Customer driven invoicing and daily reports

• Regulatory knowledge and ability to get timely approvals

• Executive teams’ experience throughout the energy

cycle

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Page 17: Secure Energy Services - Investor Presentation

LATEST DEVELOPMENTS

• Increased capacity at Kotcho, B.C. FST (Horn River market)

• Re-completed Drayton (Brazeau) Disposal Well and started construction on the facility

• Drilled and completed disposal well at Dawson B.C. (Montney Area) and facility construction started

• Acquired PAL Drayton Class I & II Landfill

• Submitted application for Heritage Landfill to serve Dawson, B.C. market area. Approval anticipated in Q3 of 2010

• Drayton FST in regulatory stage 17

Page 18: Secure Energy Services - Investor Presentation

2010 YTD FINANCIAL RESULTS (MM$)

Q1/2010 Q1/2009

Revenue $12.2 $6.4

Expenses (4.6) (2.2)

Operating Margin $7.6 $4.2

G & A (1.2) (1.1)

EBITDA $6.4 $3.1

Funds from Operations $6.4 $3.1

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Page 19: Secure Energy Services - Investor Presentation

March 31st, 2010 BALANCE SHEET (MM$)

Current Assets $ 59.9 Cash, A/R, Inventory, Prepaid

Assets $ 75.4 Plant & Equipment

$ 11.7 Assets under construction

$ 4.3 Other (Intangible, goodwill, FIT)

Total Assets $151.3

Liabilities $ 6.5 A/P

$ 0.2 Lease Obligations

$ 3.2 ARO

$ 0.0 Long Term Debt

Shareholders' Equity $141.4

Total Liabilities/Equity $151.319

Page 20: Secure Energy Services - Investor Presentation

BORROWING CAPACITY

ATB Corporate Bank

Loan Facility Max. $35 million

Prime plus 1.5% to 2.5%*

*(rate is based on Funded Debt to EBITDA level, adjusted quarterly)

Multi-use Facility Operating, letters of credit, Capex,

Acquisitions

Renewal April 2011

Major Covenants Debt to T-12 EBITDA: < 3.5 to 1.0

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Page 21: Secure Energy Services - Investor Presentation

CAPITAL PLANS (MM$)

Projects / Acquisitions for 2010

Dawson SWD and other services 15.0

Brazeau Water Disposal 5.0

Drayton FST 25.0

Facility Expansions 12.0

PAL acquisition 11.7

Total Capex $ 68.7

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Page 22: Secure Energy Services - Investor Presentation

SUMMARY

• Market growing with increased wells and byproducts as the conventional basin matures

• Environmental Recycling services to complement existing facility base

• Profitable growth will come from mostly organic and timely acquisitions

• Track record with ten facilities executed on schedule and on budget

• Experienced team that knows how to deliver throughout the oil and gas cycle

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Page 23: Secure Energy Services - Investor Presentation

FORWARD LOOKING STATEMENTS

• Certain statements contained in this presentation regarding 2010 construction plans, capital expenditures, future facilities and expansions of services constitute "forward-looking statements". Such statements reflect the current views of Secure with respect to future events and are subject to certain risks, uncertainties and assumptions, including, without limitation, general market conditions, commodity prices, interest rates and exchange rates, seasonality of operations, growth, acquisition strategy, integration of businesses into Secure's operations, potential liabilities from acquisitions, dependence on senior management, regulation, landfill operations, competition, risk of pending and future legal proceedings, employees, labour unions, fuel costs, access to industry and technology, insurance, future capital needs, debt service and sales of additional common shares.

• Many other factors could also cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements and readers are cautioned that the foregoing list of factors is not exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from the projections described herein. The forward-looking statements in this presentation are expressly qualified by this cautionary statement. Secure does not undertake any obligation to update or revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

• The forward-looking statements in this document are provided for the limited purpose of enabling potential

investors to evaluate an investment in the shares of Secure. Readers are cautioned that such statements

may not be appropriate, and should not be used, for other purposes.

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