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Trican Reports Third Quarter Results for 2012

CALGARY, ALBERTA -- (Marketwire) -- 11/07/12 -- Trican Well Service Ltd. (TSX:TCW)


Financial Review                                                            
                               ---------------------------------------------
                                       Three months ended  Nine months ended
                                                                            
($ millions, except                                                         
 per share amounts;            Sept 30, Sept 30, June 30,  Sept 30, Sept 30,
 unaudited)                        2012     2011     2012      2012     2011
----------------------------------------------------------------------------
Revenue                          $593.2   $659.1   $418.0  $1,727.5 $1,615.4
Operating                                                                   
 income/(loss) (i)                 71.4    193.6    (28.3)    204.9    417.2
Profit/(loss)                      22.6    111.3    (50.9)     61.2    223.8
Earnings/(loss) per                                                         
 share                  (basic)  $ 0.16   $ 0.76   $(0.35) $   0.42 $   1.54
                      (diluted)  $ 0.16   $ 0.75   $(0.35) $   0.42 $   1.52
Adjusted profit/(loss)                                                      
 (i)                               24.7    114.4    (48.6)     68.4    233.1
Adjusted profit/(loss)                                                      
 per share(i)           (basic)  $ 0.17   $ 0.78   $(0.33) $   0.47 $   1.60
                      (diluted)  $ 0.17   $ 0.77   $(0.33) $   0.47 $   1.58
Funds provided                                                              
 by/(used in)                                                               
 operations(i)                     49.3    174.3    (49.1)    136.7    376.9
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Notes:

(i) Trican makes reference to operating income/(loss), adjusted profit/(loss) and funds provided by/(used in) operations. These are measures that are not recognized under International Financial Reporting Standards (IFRS). Management believes that, in addition to profit, operating income/(loss), adjusted profit/(loss) and funds provided by/(used in) operations are useful supplemental measures. Operating income/(loss) provides investors with an indication of earnings/(loss) before depreciation, foreign exchange gains and losses, other income, taxes and interest. Adjusted profit/(loss) provides investors with information on profit/(loss) excluding one-time non-cash charges and the non-cash effect of stock-based compensation expense. Funds provided by/(used in) operations provide investors with an indication of cash available for capital commitments, debt repayments and other expenditures. Investors should be cautioned that operating income/(loss), adjusted profit/(loss), and funds provided by/(used in) operations should not be construed as an alternative to profit/(loss) and cash flow from operations determined in accordance with IFRS as an indicator of Trican's performance. Trican's method of calculating operating income/(loss), adjusted profit/(loss) and funds provided by/(used in) operations may differ from that of other companies and accordingly may not be comparable to measures used by other companies.

THIRD QUARTER HIGHLIGHTS

Consolidated revenue for the third quarter of 2012 was $593.2 million, a decrease of 10% compared to the third quarter of 2011. Consolidated profit was $22.6 million and diluted profit per share was $0.16 compared to $111.3 million and $0.75 per share for the same period in 2011. Funds provided by operations were $49.3 million compared to $174.3 million in the third quarter of 2011.

Third quarter revenue was $321.9 million for our Canadian operations, which was 13% lower than the third quarter of 2011. Canadian operating margins remained strong at 31% and benefitted from a large Horn River project that was completed early in the quarter. Despite the strong margins, Canadian results were negatively impacted by a decline in drilling and completions activity as the number of active drilling rigs decreased by 28% and well completions were down 31% on a year-over-year basis. Canadian pricing decreased by 6% compared to the third quarter of 2011 due to the drop in demand combined with a continued increase in equipment supply.

U.S. operations third quarter revenue was $198.9 million down 4% compared to the second quarter of 2012. U.S. operating margins decreased to a loss of 11.7% as a percentage of revenue compared to a loss of 10.7% in the second quarter of 2012. U.S. results were significantly impacted by low utilization in July when pricing was being renegotiated with many of our U.S. customers. Our U.S. results improved in August and September due to the pricing increases obtained and progress made on cost cutting initiatives. U.S. pricing increased by 3% in the third quarter of 2012 compared to the second quarter of 2012. Financial results for our U.S. operations improved as the third quarter progressed due to declining guar prices and the commencement of operations in the Bakken where activity levels and demand for our equipment was strong.

International revenue was $72.4 million during the third quarter of 2012, which was a 10% year-over-year decrease and a 2% sequential increase. Our operations in Russia comprise the majority of our international results and revenue and operating income in this region improved sequentially due to increased activity levels from our customers. However, our Russian customers' work programs remain behind schedule and overall revenue is expected to come in below our initial expectations for this region. Russian results were also negatively impacted by a weaker Russian ruble as the average ruble to Canadian dollar exchange rate for the third quarter of 2012 decreased by 8% compared to the third quarter of 2011.

Trican is pleased to announce its entry into Colombia through a joint business arrangement with Independence Drilling S.A. ("Independence"). Independence is a privately held company headquartered in Bogota, Colombia and has extensive experience in the provision of drilling services in the region. We intend to initially provide cementing services in the Colombian market growing over time to become a full service pressure pumping company in the region. We expect to commence operations in Colombia during the first half of 2013.

Capital Budget and Financing Update

Given the weak operating conditions in the U.S. and reduced activity levels in Canada, we have decreased our capital budget by an additional $90 million. The reductions include support equipment and infrastructure initiatives for our North American operations. After these reductions, remaining capital expenditures for all existing capital programs are expected to be approximately $150 to $200 million. We expect to incur approximately $70 to $90 million of these expenditures during the fourth quarter of 2012, with the remainder carried forward into 2013. We have now reduced our original capital budget by over $300 million and we will continue to look at additional reducations on the remaining amount.

Subsequent to September 30, 2012, and subject to final approval by the investor, Trican intends to issue $50 million in senior unsecured notes on a private placement basis. The notes have a seven-year final maturity, five-year average term and a coupon of 4.05%. The notes are unsecured and rank equally with Trican's bank facilities and other outstanding senior notes. Trican intends to use the net proceeds to fund a portion of its 2012 capital program and for general corporate purposes.

Subsequent to September 30, 2012, Trican's syndicate of banks has unanimously agreed to extend the Company's four year revolving credit facility for an additional year. In addition, Trican has received approval to add a new bank to its syndicate and intends to increase its extendible revolving credit facility from $450 million to $500 million.


COMPARATIVE QUARTERLY INCOME STATEMENTS                                     
----------------------------------------------------------------------------
                                                                            
                                                          Quarter-          
($ thousands; unaudited)                                     Over-          
Three months ended                 % of             % of   Quarter       %  
 September 30,             2012 Revenue     2011 Revenue    Change  Change  
----------------------------------------------------------------------------
                                                                            
Revenue                 593,204   100.0% 659,104   100.0%  (65,900)  (10.0%)
Expenses                                                                    
  Materials and                                                             
   operating            493,877    83.3% 441,054    66.9%   52,823    12.0% 
  General and                                                               
   administrative        27,972     4.7%  24,430     3.7%    3,542    14.5% 
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Operating                                                                   
 income/(loss)(i)        71,355    12.0% 193,620    29.4% (122,265)  (63.1%)
  Finance costs           7,696     1.3%   6,057     0.9%    1,639    27.0% 
  Depreciation and                                                          
   amortization          37,270     6.3%  31,474     4.8%    5,796    18.4% 
  Foreign exchange                                                 (2,393.  
   (gain)/loss            1,651     0.3%     (72)   -0.0%    1,723       1%)
  Other (income)/loss       806     0.1%  (1,537)   -0.2%    2,343  (152.4%)
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Profit/(loss) before                                                        
 income taxes            23,932     4.0% 157,698    23.9% (133,766)  (84.8%)
Income tax                                                                  
 expense/(recovery)       1,284     0.2%  46,434     7.0%  (45,150)  (97.2%)
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Profit/(loss) before                                                        
 non-controlling                                                            
 interest                22,648     3.8% 111,264    16.9%  (88,616)  (79.6%)
Non-controlling interest    (94)    0.0%       -     0.0%      (94)    0.0% 
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Profit/(loss)            22,742     3.8% 111,264    16.9%  (88,522)  (79.6%)
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(i) see first page of this report                                           
                                                                            
CANADIAN OPERATIONS                                                         
                                                                            
----------------------------------------------------------------------------
($ thousands, except                                                        
 revenue per job,                                                           
 unaudited)            Sept, 30,    % of Sept 30,    % of June 30,    % of  
Three months ended,         2012 Revenue     2011 Revenue     2012 Revenue  
----------------------------------------------------------------------------
Revenue                  321,948          371,481          140,178          
Expenses                                                                    
  Materials and                                                             
   operating             215,022    66.8% 216,746    58.3% 136,127    97.1% 
  General and                                                               
   administrative          7,095     2.2%   7,813     2.1%   5,222     3.7% 
                       ---------         --------         ---------         
  Total expenses         222,117    69.0% 224,559    60.4% 141,349   100.8% 
Operating                                                                   
 income/(loss)(i)         99,831    31.0% 146,922    39.6%  (1,171)   (0.8%)
Number of jobs             6,368            6,960            3,334          
Revenue per job           50,140           52,766           41,959          
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(i) see first page of this report                                           
                                                                            
Sales Mix                                                                   
----------------------------------------------------------------------------
                                                                            
Three months ended,                            Sept 30,  Sept 30,  June 30, 
(unaudited)                                        2012      2011      2012 
----------------------------------------------------------------------------
% of Total Revenue                                                          
Fracturing                                           68%       67%       57%
Cementing                                            17%       17%       18%
Nitrogen                                              6%        8%        8%
Coiled Tubing                                         4%        4%        6%
Acidizing                                             3%        2%        5%
Other                                                 2%        2%        6%
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Total                                               100%      100%      100%
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Operations Review

Canadian oil and gas activity levels were significantly lower during the third quarter of 2012 compared to the third quarter of 2011. The average number of active drilling rigs during the quarter was 28% lower and the number of wells completed was 31% lower on a year-over-year basis. Despite the reduced activity levels, utilization of our equipment was strong in the early part of the quarter due to the completion of a large Horn River project and a backlog of completions work coming out of the second quarter. However, utilization decreased near the end of the quarter as drilling and completions activity slowed.

Third quarter Canadian pricing decreased by 6% compared to the third quarter of 2011 as continued increases in Canadian pressure pumping equipment supply and reduced demand placed downward pressure on pricing. Trican did not deploy any additional fracturing equipment in Canada during the third quarter of 2012.

Q3 2012 versus Q3 2011

Canadian revenue decreased by 13% compared to the third quarter of 2011 due to a decrease in job count and revenue per job. The job count decreased by 9% due to the decline in year-over-year drilling and completions activity; however, lower activity was partially offset by the large Horn River project that was completed during the third quarter of 2012. Revenue per job decreased by 5% due largely to the 6% price decrease, which was offset slightly by the larger jobs performed in Horn River during the quarter.

Third quarter materials and operating expenses increased to 66.8% of revenue compared to 58.3% in the third quarter of 2011. The 6% year-over-year reduction in our pricing combined with an increase in product costs such as sand, acid and guar has contributed to the lower margins. In addition, lower revenue resulted in reduced operating leverage on our fixed cost structure. General and administrative expenses decreased by $0.7 million compared to the third quarter of 2011 due largely to lower share based and profit sharing expenses.

Q3 2012 versus Q2 2012

Canadian revenue increased by 130% sequentially due to the expected rise in industry activity as spring break-up conditions subsided early in the third quarter. The 79% sequential increase in Canadian rig count and the completion of a large Horn River project contributed to the 91% increase in job count. Revenue per job increased by 19% due largely to the higher proportion of fracturing revenue relative to total revenue, offset partially by a 4% sequential decrease in price.

Materials and operating expenses decreased as a percentage of revenue to 66.8% compared to 97.1% in the second quarter of 2012, due largely to increased operating leverage on our fixed cost structure. General and administrative expenses increased by $1.9 million due mainly to higher share based and profit sharing expenses.


UNITED STATES OPERATIONS                                                    
----------------------------------------------------------------------------
                                                                            
($ thousands, except                                                        
 revenue per job,                                                           
 unaudited)            Sept 30,    % of  Sept 30,    % of June 30,    % of  
Three months ended,        2012 Revenue      2011 Revenue     2012 Revenue  
----------------------------------------------------------------------------
Revenue                 198,881           207,288          206,777          
Expenses(i)                                                                 
  Materials and                                                             
   operating            216,283   108.8%  150,279    72.5% 224,084   108.4% 
  General and                                                               
   administrative         5,768     2.9%    2,474     1.2%   4,825     2.3% 
                       ---------         --------         ---------         
  Total expenses        222,051   111.7%  152,753    73.7% 228,909   110.7% 
Operating                                                                   
 income/(loss)(ii)      (23,170)  (11.7%)  54,535    26.3% (22,132)  (10.7%)
Number of jobs            1,861             1,445            1,915          
Revenue per job         106,962           144,361          108,394          
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(i) Certain prior period expenses have been reclassified from materials and 
operating to general and administrative to conform to the current period    
classification                                                              
                                                                            
(ii) see first page of this report                                          
                                                                            
Sales Mix                                                                   
----------------------------------------------------------------------------
                                                                            
Three months ended,                            Sept 30,  Sept 30,  June 30, 
(unaudited)                                        2012      2011      2012 
----------------------------------------------------------------------------
% of Total Revenue                                                          
Fracturing                                           91%       98%       92%
Cementing                                             6%        1%        5%
Coiled Tubing                                         3%        1%        3%
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Total                                               100%      100%      100%
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Operations Review

Overall pricing for our U.S. operations increased by 3% sequentially as pricing increases were negotiated for many of our fracturing crews under contract. As pricing was being renegotiated in July, U.S. equipment utilization was substantially lower, which had a significant negative impact on U.S. operating margins in July. Utilization levels recovered in August, and we saw a meaningful improvement in the financial performance of our U.S. operations during August and September.

Overall U.S. activity levels were down slightly as the rig count decreased sequentially by 4% in the areas where we operate. The U.S. rig count continued to decline in dry gas regions and was relatively stable in the oil and liquids-rich gas regions. Our Bakken fracturing crew began operations in August and utilization was strong throughout the remainder of the quarter for this crew. Increased activity in the Bakken was more than offset by lower utilization early in the third quarter for our crews under contract when pricing was being renegotiated.

Our U.S. operations currently have 670,000 of fracturing horsepower; however, in addition to the two newly completed crews from our 2012 capital program that have not been manned, we have idled two operating crews during the third quarter of 2012.

Our realized guar price decreased sequentially by approximately 15% in the U.S. during the third quarter of 2012. Guar spot prices decreased substantially more than 15% during the third quarter; however, our third quarter guar usage was primarily driven from higher priced guar purchased during the second quarter and early in the third quarter. Guar usage levels were also down sequentially during the third quarter due to the decrease in activity.

Our U.S. operations continued to focus on many cost cutting measures and we began to see the benefit of these measures during the third quarter of 2012. We continue to focus on optimizing our cost structure and reducing costs wherever practical and expect to see additional benefit from these measures in the fourth quarter of 2012 and into 2013.

We continue to see strong growth for our cementing service line in the U.S., which operates in the Eagle Ford, Permian and Haynesville plays. Cementing revenue represented 6% of total U.S. revenue, and increased by 28% sequentially and 330% year-over-year. We intend to expect the growth of our cementing business in the U.S., as well as our coiled tubing service line, to continue as we move towards becoming a full service pressure pumping company in the U.S.

Q3 2012 versus Q3 2011

2012 third quarter revenue decreased by approximately 4% compared to the third quarter of 2011 for our U.S. operations. The job count increased by 29% while revenue per job decreased by 26%. The job count increase is primarily a result of fracturing, cementing and coiled tubing equipment additions, offset partially by low utilization early in the quarter during price renegotiations. Revenue per job decreased approximately 26% primarily due to pricing pressure in the U.S. market combined with the increase in work performed in the cementing and coiled tubing service lines and an increase in jobs performed in the Permian basin. Revenue per job for the cementing and coiled tubing service lines is typically lower than the fracturing service line and fracturing jobs performed in the Permian Basin are typically smaller relative to other regions resulting in lower revenue per job.

Materials and operating expenses increased to 108.8% from 72.5% as a percentage of revenue. Operating margins were negatively impacted by the decrease in pricing, a significant increase in guar costs, and low utilization in July. Increases in repairs and maintenance and accommodation expenses also contributed to the increase in materials and operating expenses.

General and administrative costs increased by $3.3 million due largely to an increase wage, travel, and office expenses.

Q3 2012 versus Q2 2012

Third quarter revenue in 2012 decreased 4% relative to the second quarter of 2012 for our U.S. operations. The job count decreased by 3% largely as a result of low utilization in the early part of the third quarter while pricing was being renegotiated. These decreases were partially offset by a job count increase in the cementing service line and the start-up of our Bakken fracturing crew. Revenue per job decreased by 1% primarily as a result of an increase in work from the cementing service line and increased work performed in the Permian basin. These factors were partially offset by a 3% increase in pricing.

Materials and operating expenses remained relatively consistent at 108.8% of revenue compared to 108.4% in the second quarter of 2012. Operating margins benefitted from a 3% increase in pricing, a 15% decrease in the realized price of guar, and cost cutting measures, which led to reductions in freight and unit costs. These factors were offset by low utilization in July during price renegotiations.

General and administrative expenses increased by approximately $0.9 million due to increases in insurance and office expenses.


INTERNATIONAL OPERATIONS                                                    
                                                                            
----------------------------------------------------------------------------
($ thousands, except                                                        
 revenue per job,                                                           
 unaudited)             Sept 30,    % of Sept 30,    % of  June 30,    % of 
Three months ended,         2012 Revenue     2011 Revenue      2012 Revenue 
----------------------------------------------------------------------------
Revenue                   72,375           80,335            71,020         
Expenses                                                                    
  Materials and                                                             
   operating              59,202    81.8%  68,481    85.2%   60,523    85.2%
  General and                                                               
   administrative          3,590     5.0%   3,770     4.7%    2,985     4.2%
                       ---------         --------         ---------         
  Total expenses          62,792    86.8%  72,251    89.9%   63,508    89.4%
Operating income(i)        9,583    13.2%   8,084    10.1%    7,512    10.6%
Number of jobs             1,057            1,388             1,057         
Revenue per job           64,873           54,686            62,506         
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(i) see first page of this report                                           
                                                                            
Sales Mix                                                                   
                                                                            
----------------------------------------------------------------------------
Three months ended,                            Sept 30,  Sept 30,  June 30, 
(unaudited)                                        2012      2011      2012 
----------------------------------------------------------------------------
% of Total Revenue                                                          
Fracturing                                           80%       76%       76%
Coiled Tubing                                        10%       11%       13%
Cementing                                             6%        8%        8%
Nitrogen                                              2%        5%        2%
Other                                                 2%        0%        1%
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Total                                               100%      100%      100%
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Operations Review

Our International operations include the financial results for our operations in Russia, Kazakhstan, Algeria, and Australia. Our operations in Russia comprise the majority of our international results, and revenue and operating income in this region improved sequentially due to increased activity levels from our customers. However, our Russian customers' work programs remain behind schedule and overall revenue is expected to be below our initial expectations for this region.

Horizontal drilling and completions activity has increased in Russia during 2012. Approximately 10% of our Russian fracturing revenue was from horizontal wells during the third quarter compared to 3% in the third quarter of 2011. We believe this trend will continue and result in increased pressure pumping demand in Russia.

Customer delays in Kazakhstan led to lower sequential revenue in the region, although we continue to produce solid operating margins in this region. We continue to see improved results for our Algerian operations as year-over-year margins improved substantially. We are also continuing to grow and establish our cementing business in Australia and had an 80% sequential increase in revenue for our cementing and environmental service lines in Australia during the third quarter of 2012.

Q3 2012 versus Q3 2011

International revenue decreased by 10% compared to the third quarter of 2011. Job count decreased by 24% as our customers' work programs in Russia are behind schedule relative to 2011. Activity for our cementing and coiled tubing service lines in Russia was particularly slow and contributed to the majority of the job count decrease. This was partially offset by increased activity in Australia. Revenue per job increased by 19% due largely to Russian pricing increases and the rise in fracturing revenue relative to total revenue as fracturing jobs generally have significantly higher revenue per job than other service lines. These factors were partially offset by an 8% year-over-year decline in the value of the Russian ruble relative to the Canadian dollar.

Materials and operating expenses as a percentage of revenue decreased to 81.8% compared to 85.2% in the third quarter of 2011. Increased fracturing activity as a percentage of total activity contributed to the improved margins as fracturing work is typically performed at higher margins. A reduction in repairs and maintenance also factored into the margin improvement. General and administrative costs were relatively consistent on a year-over-year basis.

Q3 2012 versus Q2 2012

Revenue for our International operations increased by 2% on a sequential basis. The number of jobs completed in the third quarter was consistent with the second quarter of 2012 as increases in Russia and Australia were offset by sequential decreases in Kazakhstan and Algeria. Kazakhstan revenue was lower due to reduced customer activity levels that are expected to be made up in the fourth quarter. Algeria revenue was lower due to overall reduced activity levels in the region due to Ramadan. Revenue per job increased sequentially by 4% due to a higher proportion of fracturing revenue relative to total revenue, which was offset partially by lower revenue per job in Russia caused by a 5% weakening of the ruble relative to the Canadian dollar.

Materials and operating expenses as a percentage of revenue decreased to 81.8% from 85.2% on a sequential basis. Increased fracturing activity as a percentage of total activity contributed to the improved margins as fracturing work is generally performed at higher margins. Improved operational leverage on our fixed cost structure also contributed to the higher third quarter margins. General and administrative expenses increased by $0.6 million due largely to higher share based expenses.


CORPORATE                                                                   
----------------------------------------------------------------------------
($ thousands,                               Sept                            
 unaudited)            Sept 30,     % of     30,     % of June 30,     % of 
Three months ended,        2012  Revenue    2011  Revenue     2012  Revenue 
----------------------------------------------------------------------------
Expenses                                                                    
  Materials and                                                             
   operating              5,907      1.0%  5,548      0.8%   4,895      1.2%
  General and                                                               
   administrative         8,981      1.5% 10,373      1.6%   7,569      1.8%
                       ---------         --------         ---------         
  Total expenses         14,888      2.5% 15,921      2.4%  12,464      3.0%
Operating loss(i)       (14,888)         (15,921)          (12,464)         
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(i) see first page of this report                                           

Q3 2012 versus Q3 2011

Corporate expenses decreased by $1.0 million from the same quarter last year due primarily to lower profit sharing expenses. These factors were partially offset by increased share unit and salary expenses.

Q3 2012 versus Q2 2012

Corporate expenses increased by $2.4 million on a sequential basis due largely to higher profit sharing and share unit expenses.

OTHER EXPENSES AND INCOME

Finance costs for the third quarter of 2012 increased by $1.6 million on a year-over-year basis mainly due to interest on the existing private placement debt and revolving credit facility. Depreciation and amortization increased by $5.8 million in the third quarter of 2012 compared to the same period last year, due primarily to capital additions relating to our capital expansion program.

The foreign exchange loss of $1.7 million in the quarter versus a gain of $0.1 million in the same quarter last year was due to the net impact of fluctuations in the U.S. dollar and Russian ruble relative to the Canadian dollar. Other loss was $0.8 million in the quarter versus income of $1.5 million for the same period in the prior year. The third quarter other loss was a result of losses on disposal of equipment, which was offset partially by interest income on a loan to an unrelated third party and interest income earned on cash balances.

INCOME TAXES

Trican recorded an income tax expense of $1.3 million in the quarter versus $46.4 million for the comparable period of 2011. The decrease in tax expense is largely attributable to lower taxable income.


COMPARATIVE YEAR-TO-DATE INCOME STATEMENTS                                  
----------------------------------------------------------------------------
                                                                            
                                                                            
($ thousands;                                               Year -          
 unaudited)                                                  Over-          
Nine months ended                % of               % of    Year -       %  
 Sept 30,                2012 Revenue       2011 Revenue    Change  Change  
----------------------------------------------------------------------------
                                                                            
Revenue             1,727,535     100% 1,615,433   100.0%  112,102     6.9% 
Expenses                                                                    
  Materials and                                                             
   operating        1,447,890    83.8% 1,124,777    69.6%  323,113    28.7% 
  General and                                                               
   administrative      74,700     4.3%    73,427     4.5%    1,273     1.7% 
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Operating income(i)   204,945    11.9%   417,229    25.8% (212,284)  (50.9%)
  Finance costs        22,123     1.3%    13,484     0.8%    8,639    64.1% 
  Depreciation and                                                          
   amortization       111,273     6.4%    90,133     5.6%   21,140    23.5% 
  Foreign exchange                                                          
   (gain)/loss          3,876     0.2%      (300)    0.0%    4,176 1,392.0% 
  Other income         (1,277)   -0.1%    (4,580)   -0.3%    3,303   (72.1%)
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Profit before                                                               
 income taxes          68,950     4.0%   318,492    19.7% (249,542)  (78.4%)
Provision for                                                               
 income taxes           7,781     0.5%    94,726     5.9%  (86,945)  (91.8%)
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Profit before non-                                                          
 controlling                                                                
 interest              61,169     3.5%   223,766    13.9% (162,597)  (72.7%)
Non-controlling                                                             
 interest                (246)    0.0%       (20)    0.0%     (226)   11.3% 
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Profit                 61,415     3.6%   223,786    13.9% (162,371)  (72.6%)
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(i) see first page of this report                                           
                                                                            
CANADIAN OPERATIONS                                                         
                                                                            
----------------------------------------------------------------------------
                                                                     Year-  
($ thousands, except revenue per                                     Over-  
 job, unaudited)                  Sept 30,    % of Sept 30,    % of   Year  
Nine months ended,                    2012 Revenue     2011 Revenue Change  
----------------------------------------------------------------------------
Revenue                            895,237          865,663              3% 
Expenses                                                                    
  Materials and operating          617,114    68.9% 544,144    62.9%    13% 
  General and administrative        20,453     2.3%  21,588     2.5%    (5%)
                                 ---------         --------         --------
  Total expenses                   637,567    71.2% 565,732    65.4%    13% 
Operating income(i)                257,670    28.8% 299,931    34.6%   (14%)
Number of jobs                      16,855           18,151             (7%)
Revenue per job                     52,781           46,772             13% 
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(i) see first page of this report                                           

Revenue for the nine months ending September 30, 2012, for our Canadian operations was 3% higher compared to the same period in 2011. Revenue per job increased by 13% due to larger job sizes combined with a 4% increase in price. Job size benefitted from a higher proportion of fracturing revenue relative to total revenue and an increase in the average cement and fracturing job size due to the increase in horizontal drilling activity. Job count decreased by 7% due largely to a 10% decrease in year to date average Canadian rig count.

As a percentage of revenue, materials and operating expenses increased to 68.9% from 62.9% for the comparable period in 2011. Increased pricing was more than offset by higher product and employee costs. General and administrative costs were down $1.1 million due mainly to lower share based and profit sharing expenses.


UNITED STATES OPERATIONS                                                    
                                                                            
----------------------------------------------------------------------------
                                                                     Year-  
($ thousands, except revenue per                                     Over-  
 job, unaudited)                 Sept 30,    % of  Sept 30,    % of   Year  
Nine months ended,                   2012 Revenue      2011 Revenue Change  
----------------------------------------------------------------------------
Revenue                           624,194           523,244             19% 
Expenses                                                                    
  Materials and operating         632,537   101.3%  370,918    70.9%    71% 
  General and administrative       15,255     2.4%    8,720     1.7%    75% 
                                 ---------         --------         --------
  Total expenses                  647,792   103.8%  379,638    72.6%    71% 
Operating income(i)               (23,598)   (3.8%) 143,606    27.4%  (116%)
Number of jobs                      5,456             3,570             53% 
Revenue per job                   114,712           147,005            (22%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) see first page of this report                                           

U.S. revenue for the nine months ended September 30, 2012 increased 19% relative to the same period in 2011. Job count increased 53% largely due to the significant fracturing capacity additions and expansion of the cementing and coiled tubing service lines. Revenue per job declined by 22% largely as a result of the decrease in fracturing pricing experienced during the first nine months of 2012 as well as an increase in work performed in the cementing and coiled tubing service lines and smaller jobs typically performed in the Permian basin.

Materials and operating expenses as a percentage of revenue increased to 101.3% from 70.9% relative to the same period in 2011. This increase is largely attributed to the decline in pricing and the significant increase in guar costs. The $6.5 million increase in general and administrative expenses is largely attributable to an increase in travel, office and employee expenses.


INTERNATIONAL OPERATIONS                                                    
                                                                            
----------------------------------------------------------------------------
                                                                     Year-  
($ thousands, except revenue per                                     Over-  
 job, unaudited)                  Sept 30,    % of Sept 30,    % of   Year  
Nine months ended,                    2012 Revenue     2011 Revenue Change  
----------------------------------------------------------------------------
Revenue                            208,104          226,526             (8%)
Expenses                                                                    
  Materials and operating          181,027    87.0% 194,134    85.7%    (7%)
  General and administrative        10,270     4.9%  10,972     4.8%    (6%)
                                 ---------         --------         --------
  Total expenses                   191,297    91.9% 205,106    90.5%    (7%)
Operating income(i)                 16,807     8.1%  21,420     9.5%   (22%)
Number of jobs                       3,056            3,721            (18%)
Revenue per job                     63,919           58,292             10% 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) see first page of this report                                           

International revenue was down 8% for the nine months ended September 30, 2012, compared to the same period in 2011. The number of jobs completed is down 18% due to a reduction in our Russian customers' 2012 activity levels, in particular for the coiled tubing and cementing service lines. Revenue per job is up 10% as a 5% weakening of the Russian ruble relative to the Canadian dollar was more than offset by pricing increases and a higher proportion of fracturing revenue relative to total revenue.

Materials and operating expenses as a percentage of revenue increased to 87.0% compared to 85.7% in 2011. Pricing increases were more than offset by reduced operating leverage on our fixed cost structure combined with increased product costs. General and administrative expenses decreased by $0.7 million due largely to lower share based expenses.


CORPORATE                                                                   
                                                                            
----------------------------------------------------------------------------
                                                                     Year-  
                                                                     Over-  
($ thousands, unaudited)      Sept 30,     % of  Sept 30,     % of    Year  
Nine months ended,                2012  Revenue      2011  Revenue  Change  
----------------------------------------------------------------------------
Expenses                                                                    
  Materials and operating       17,211      1.0%   15,581      1.0%     10% 
  General and administrative    28,721      1.7%   32,147      2.0%    (11%)
                              ---------         ----------         ---------
  Total expenses                45,932      2.7%   47,728      3.0%     (4%)
Operating loss(i)              (45,932)           (47,728)              (4%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) see first page of this report                                           

Corporate expenses decreased $1.8 million from the same period last year due to a lower profit sharing costs and shared based expenses. These decreases were partially offset by increased salary expenses and a $1.0 million charitable donation to the Alberta Children's Hospital.

OTHER EXPENSES AND INCOME

For the nine months ended September 30, 2012, finance costs increased by $8.6 million compared to the same period in 2011 largely due to interest on the existing private placement debt and revolving credit facility. Depreciation and amortization increased by $21.1 million compared to the same period last year, due primarily to capital additions relating to our capital expansion program.

Foreign exchange losses of $3.9 million have been recorded for the nine months ended September 30, 2012 compared to gains of $0.3 million for the same period in 2011. This change is due to the net impact of fluctuations in the U.S. dollar and Russian ruble relative to the Canadian dollar. Year-to-date other income was $1.3 million versus $4.6 million for the same period in the prior year. Other income is mainly comprised of interest income on a loan to an unrelated third party and interest income earned on cash balances, offset partially by losses on disposal of equipment.

INCOME TAXES

Trican recorded income tax expense of $7.8 million for the nine months ended September 30, 2012, versus $94.7 million for the comparable period of 2011. The decrease in tax expense is primarily attributable to lower earnings.

LIQUIDITY AND CAPITAL RESOURCES

Operating Activities

Funds provided by operations was $49.3 million for the third quarter of 2012 compared to $174.3 million for the same period in 2011. The decrease was due largely to lower earnings.

At September 30, 2012, Trican had working capital of $519.7 million compared to $621.2 million at the end of 2011. The decrease is due to lower cash on hand as we continue to execute our 2012 capital budget.

Investing Activities

Given the weak operating conditions in the U.S. and reduced activity levels in Canada, we have decreased our capital budget by an additional $90 million. The reductions include support equipment and infrastructure initiatives for our North American operations. After these reductions, remaining capital expenditures for all existing capital programs are expected to be approximately $200 to $250 million. We expect to incur approximately $70 to $90 million of these expenditures during the fourth quarter of 2012, with the remainder carried forward into 2013.

Capital expenditures for the third quarter of 2012 totaled $81.7 million compared with $158.0 million for the same period in 2011. Capital expenditures for the nine months ended September 30, 2012, were $386.0 million compared to $415.6 million for the same period in 2011.

Financing Activities

As at November 6, 2012, Trican had 146,450,177 common shares and 6,494,453 employee stock options outstanding.

In the second quarter of 2012, Trican entered into an uncommitted shelf agreement that could allow for the issuance of up to U.S.$100 million in senior unsecured notes. Subsequent to the third quarter of 2012, and subject to final approval by the investor, Trican intends to issue $50 million in senior unsecured notes from this shelf agreement. The notes have a seven-year final maturity, five-year average term, and a coupon of 4.05%. The notes are unsecured and rank equally with Trican's bank facilities and other outstanding senior notes. Trican intends to use the net proceeds to fund a portion of its 2012 capital budget and for general corporate purposes.

Subsequent to September 30, 2012, Trican's syndicate of banks has unanimously agreed to extend the Company's four year revolving credit facility for an additional year. In addition, Trican has received approval to add a new bank to its syndicate and intends to increase its extendible revolving credit facility from $450 million to $500 million.

The Company received approval from the Toronto Stock Exchange to purchase its own common shares, for cancellation, in accordance with a Normal Course Issuer Bid ("NCIB") for the one year period of March 2, 2012 to March 2, 2013. During the three months ended September 30, 2012, no common shares were purchased under the NCIB. During the nine months ended September 30, 2012, 755,400 common shares were purchased at a cost of $10.0 million, of which $2.7 million was charged to Share Capital and $7.3 million to retained earnings.

OUTLOOK

Canadian Operations

We expect Canadian 2012 fourth quarter revenue to decrease relative to the third quarter of 2012. Early fourth quarter drilling and completions activity is expected to remain consistent with activity levels seen in the third quarter; however, activity levels are expected to decrease near the end of the quarter as we move into the holiday season and our customers complete their 2012 budgets. We also expect pricing to decrease sequentially in the fourth quarter due to additional pressure pumping supply in Canada combined with the expectation of reduced activity levels near the end of the quarter. We expect these factors to result in a reduction in fourth quarter 2012 operating margins in Canada.

We expect 2013 first quarter activity levels to be strong in Canada based on current commodity prices and an expectation that 2013 producer budgets will be consistent with 2012. We will continue to monitor the capital budgets and cash flows of our customers, keeping in mind that any year-over-year additions or reductions in capital spending by our customers will increase or decrease Canadian rig count.

U.S. Operations

Financial results for our U.S. Operations have gradually improved since July as a result of a reduction in guar expenses, the partial impact of cost cutting initiatives and a modest improvement in equipment utilization and pricing. We believe these trends will be maintained as we expect guar price reductions to continue and expect to make further progress on our cost cutting initiatives. We have experienced some cost relief relating to product, freight, unit, wage and base expenses and expect more meaningful cost reductions in these areas in the fourth quarter of 2012 and into 2013. However, the U.S. pressure pumping market remains oversupplied and very competitive, and we expect any improvements in operating margins will be gradual and dependent on a relatively stable pricing environment.

Despite the recent weakness in the U.S. market, we remain confident in our ability to manage our business through the current downturn. We will continue to focus on cost cutting initiatives and improving our operational efficiency in the U.S., and believe that these efforts are necessary to get our U.S. financial results back to an acceptable level. We still believe in the long-term potential of the U.S. pressure pumping market, and remain confident that with our people, management team, technology and operational excellence, we will emerge from the downturn as a stronger company. International Operations

Year-to-date 2012 results for our International operations have been below expectations due to slower than expected activity levels from our Russian customers and a 5% weakening of the Russian ruble relative to the Canadian dollar. We expect strong activity levels in Russia in the early part of the fourth quarter as our customers work towards meeting 2012 spending and production targets; however, consistent with previous years, we expect activity levels to decrease near the end of the fourth quarter as we move into the holiday season and face challenging weather conditions in western Siberia.

Contracts for 2013 work in Russia are currently being tendered and we expect to have greater visibility on our 2013 outlook in Russia by the end of the year.

Our operations in Algeria are improving and we are establishing our work programs and our customer base in Australia. However, we do not expect operations in these regions to have a meaningful impact on our operating results for the remainder of 2012.

NON-IFRS DISCLOSURE

Adjusted profit, operating income and funds provided by operations do not have any standardized meaning as prescribed by IFRS and, therefore, are considered non-IFRS measures.

Adjusted profit and funds provided by operations have been reconciled to profit and operating income has been reconciled to gross profit, being the most directly comparable measures calculated in accordance with IFRS. The reconciling items have been presented net of tax.


----------------------------------------------------------------------------
(thousands; unaudited)               Three months ended    Nine months ended
----------------------------------------------------------------------------
                           Sept 30,  Sept 30,  June 30,   Sept 30,  Sept 30,
                               2012      2011      2012       2012      2011
----------------------------------------------------------------------------
Adjusted profit/(loss)    $  24,716 $ 114,352 $ (48,612) $  68,403 $ 233,141
Deduct:                                                                     
 Non-cash share-based                                                       
  compensation expense        2,068     3,088     2,248      7,234     9,375
----------------------------------------------------------------------------
                                                                            
Profit/(loss) (IFRS                                                         
 financial measure)       $  22,648 $ 111,264 $ (50,860) $  61,169 $ 223,766
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                        
------------------------------------------------------------------------
(thousands; unaudited)           Three months ended   Nine months ended 
------------------------------------------------------------------------
                       Sept 30,  Sept 30,  June 30,  Sept 30,  Sept 30, 
                           2012      2011      2012      2012      2011 
------------------------------------------------------------------------
Funds provided                                                          
 by/(used in)                                                           
 operations           $  49,682 $ 174,284 $ (49,057)$ 136,726 $ 376,895 
Charges to income not                                                   
 involving cash                                                         
 Depreciation and                                                       
  amortization           37,270    31,474    38,171   111,273    90,133 
 Stock-based                                                            
  compensation            2,068     3,088     2,248     7,234     9,375 
 Loss/(gain) on                                                         
  disposal of property                                                  
  and equipment           1,736    (1,075)      282     2,071    (1,047)
 Unrealized foreign                                                     
  exchange (gain)/loss    1,160        98     3,460     4,813      (884)
 Income tax                                                             
  expense/(recovery)      1,284    46,434   (25,139)    7,781    94,726 
 Income tax paid        (16,484)  (16,999)  (17,219)  (57,615)  (39,174)
------------------------------------------------------------------------
                                                                        
Profit/(loss) (IFRS                                                     
 financial measure)   $  22,648 $ 111,264 $  50,860 $  61,169 $ 223,766 
------------------------------------------------------------------------
------------------------------------------------------------------------
                                                                        
----------------------------------------------------------------------------
(thousands; unaudited)             Three months ended     Nine months ended 
----------------------------------------------------------------------------
                       Sept 30,   Sept 30,   June 30,   Sept 30,   Sept 30. 
                           2012       2011       2012       2012       2011 
----------------------------------------------------------------------------
Operating                                                                   
 income/(loss)        $  71,355  $ 193,620  $ (28,255) $ 204,945  $ 417,229 
Add:                                                                        
  Administrative                                                            
   expenses              28,408     25,814     20,582     79,361     77,116 
Deduct:                                                                     
  Depreciation expense  (37,270)   (31,474)   (38,171)  (111,273)   (90,133)
                                                                            
----------------------------------------------------------------------------
                                                                            
Gross profit                                                                
 /(loss)(IFRS                                                               
 financial measure)   $  62,493  $ 187,960  $ (45,844) $ 173,033  $ 404,212 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                
                                                                            
                                               September 30,   December 31, 
(Stated in thousands; unaudited)                        2012           2011 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ASSETS                                                                      
Current assets                                                              
  Cash and cash equivalents                       $   55,333     $  125,855 
  Trade and other receivables                        526,390        607,672 
  Current tax assets                                     330          1,553 
  Inventory                                          215,385        173,515 
  Prepaid expenses                                    42,989         31,996 
----------------------------------------------------------------------------
                                                     840,427        940,591 
Property and equipment                             1,433,856      1,178,410 
Intangible assets                                     10,938         14,662 
Deferred tax assets                                   67,571         33,369 
Other assets                                          11,120          6,445 
Goodwill                                              43,611         43,706 
----------------------------------------------------------------------------
                                                  $2,407,523     $2,217,183 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Current liabilities                                                         
  Bank loans (note 3)                             $   11,310     $        - 
  Trade and other payables                           278,729        287,689 
  Contingent consideration (note 2)                    2,827          2,867 
  Current tax liabilities                             27,886          3,363 
  Current portion of long-term debt (note 3)               -         25,425 
----------------------------------------------------------------------------
                                                     320,752        319,344 
                                                                            
Loans and borrowings (note 3)                        602,751        400,256 
Deferred tax liabilities                              91,853        132,031 
                                                                            
Shareholders' equity                                                        
  Share capital (note 4)                             527,860        529,062 
  Contributed surplus                                 52,897         45,894 
  Accumulated other comprehensive income             (34,204)       (22,805)
  Retained earnings                                  845,407        813,238 
----------------------------------------------------------------------------
Total equity attributable to equity holders of                              
 the Company                                       1,391,960      1,365,389 
Non-controlling interest                                 207            163 
----------------------------------------------------------------------------
                                                  $2,407,523     $2,217,183 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes to the consolidated                                  
 financial statements.                                                      
                                                                            
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                              
                                                                            
                                  Three     Three                           
                                 Months    Months  Nine Months  Nine Months 
                                  Ended     Ended   Ended Sept   Ended Sept 
(Stated in thousands, except   Sept 30,  Sept 30,          30,          30, 
 per share amounts; unaudited)     2012      2011         2012         2011 
----------------------------------------------------------------------------
                                                                            
Revenue                        $593,204  $659,104   $1,727,535   $1,615,433 
Cost of sales                   530,711   471,144    1,554,502    1,211,221 
----------------------------------------------------------------------------
Gross profit                     62,493   187,960      173,033      404,212 
Administrative expenses          28,408    25,814       79,361       77,116 
Other loss/(income)               1,280      (536)         385       (2,256)
----------------------------------------------------------------------------
Results from operating                                                      
 activities                      32,805   162,682       93,287      329,352 
Finance income                     (474)   (1,001)      (1,662)      (2,324)
Finance costs                     7,696     6,057       22,123       13,484 
Foreign exchange loss/(gain)      1,651       (72)       3,876         (300)
----------------------------------------------------------------------------
Profit before income tax         23,932   157,698       68,950      318,492 
Income tax expense (note 6)       1,284    46,434        7,781       94,726 
----------------------------------------------------------------------------
Profit for the period            22,648   111,264       61,169      223,766 
----------------------------------------------------------------------------
                                                                            
Profit attributable to:                                                     
Owners of the Company            22,742   111,284       61,415      223,786 
Non-controlling interest            (94)      (20)        (246)         (20)
----------------------------------------------------------------------------
Profit for the period          $ 22,648  $111,264   $   61,169   $  223,766 
----------------------------------------------------------------------------
                                                                            
Other comprehensive income                                                  
  Unrealized gain/(loss) on                                                 
   hedging instruments              663      (522)       1,105       (1,069)
  Foreign currency translation                                              
   differences                  (13,908)   13,000      (12,504)       8,667 
----------------------------------------------------------------------------
Total comprehensive income for                                              
 the period                    $  9,403  $123,742   $   49,770   $  231,364 
----------------------------------------------------------------------------
                                                                            
Total comprehensive income                                                  
 attributable to:                                                           
Owners of the Company             9,497   123,778       50,016      231,400 
Non- Controlling interest           (94)      (36)        (246)         (36)
----------------------------------------------------------------------------
Total comprehensive income for                                              
 the period                    $  9,403  $123,742   $   49,770   $  231,364 
----------------------------------------------------------------------------
                                                                            
                                                                            
Earnings per share (note 5)                                                 
----------------------------------------------------------------------------
  Basic                        $   0.16  $   0.76   $     0.42   $     1.54 
  Diluted                      $   0.16  $   0.75   $     0.42   $     1.52 
----------------------------------------------------------------------------
Weighted average shares                                                     
 outstanding - basic            146,432   146,299      146,677      145,482 
Weighted average shares                                                     
 outstanding - diluted          146,446   147,866      146,773      147,261 
----------------------------------------------------------------------------
See accompanying notes to the consolidated financial statements.            
                                                                            
CONSOLIDATED STATEMENT OF CASH FLOWS                                        
                                                                            
                                        Three     Three      Nine      Nine 
                                       Months    Months    Months    Months 
                                        Ended     Ended     Ended     Ended 
                                     Sept 30,  Sept 30,  Sept 30,  Sept 30, 
(Stated in thousands; unaudited)         2012      2011      2012      2011 
----------------------------------------------------------------------------
Cash Provided By/ (Used In):                                                
Operations                                                                  
    Profit for the period           $  22,648 $ 111,264 $  61,169 $ 223,766 
    Charges to income not involving                                         
     cash:                                                                  
      Depreciation and amortization    37,270    31,474   111,273    90,133 
      Amortization of debt issuance                                         
       costs                              202       173       605       173 
      Stock-based compensation          2,068     3,088     7,234     9,375 
      Loss/(gain)on disposal of                                             
       property and equipment           1,736    (1,075)    2,071    (1,047)
      Net Finance Costs                 7,223     5,056    20,461    11,160 
      Unrealized foreign exchange                                           
       (gain)/loss                      1,160        98     4,813      (884)
      Income tax expense                1,284    46,434     7,781    94,726 
----------------------------------------------------------------------------
                                       73,591   196,512   215,407   427,402 
  Change in inventories                   198   (14,050)  (46,175)  (50,830)
  Change in trade and other                                                 
   receivables                       (107,637) (223,218)   71,288  (226,349)
  Change in prepayments                (3,761)  (14,592)  (11,907)  (20,096)
  Change in trade and other payables    9,856    66,625     3,013    73,467 
----------------------------------------------------------------------------
Cash generated from operating                                               
 activities                           (27,753)   11,277   231,626   203,594 
                                                                            
  Interest paid                       (13,128)   (2,575)  (15,905)   (4,659)
  Income tax paid                     (16,484)  (16,999)  (57,615)  (39,174)
----------------------------------------------------------------------------
                                      (57,365)   (8,297)  158,106   159,761 
                                                                            
Investing                                                                   
  Interest received                       203       311       913     1,462 
  Purchase of property and equipment  (81,707) (157,964) (385,862) (415,645)
  Proceeds from the sale of property                                        
   and equipment                          798     1,941     1,477     2,428 
  Payments received on loan to an                                           
   unrelated third party                    -     1,714       226     4,425 
  Business acquisitions                     -    (9,372)        -    (9,372)
----------------------------------------------------------------------------
                                      (80,706) (163,370) (383,246) (416,702)
                                                                            
Financing                                                                   
  Net proceeds from issuance of                                             
   share capital                          181    16,882     1,289    32,123 
  Repurchase and cancellation of                                            
   shares under NCIB                        -         -   (10,011)        - 
  Funds received from bank loans            -         -    11,310         - 
  Funds drawn on revolving credit                                           
   facility                           154,261             207,500           
  Issuance of long-term debt, net of                                        
   financing fees                           -         -         -   295,824 
  Repayment of long-term debt               -         -   (25,425)        - 
  Dividend paid                       (21,957)   (7,284)  (29,302)  (14,516)
----------------------------------------------------------------------------
                                      132,485     9,598   155,361   313,431 
                                                                            
Effect of exchange rate changes on                                          
 cash                                    (350)    2,392      (743)    1,415 
----------------------------------------------------------------------------
                                                                            
(Decrease)/increase in cash and cash                                        
 equivalents                           (5,936) (159,677)  (70,522)   57,905 
Cash and cash equivalents, beginning                                        
 of period                             61,269   298,640   125,855    81,058 
----------------------------------------------------------------------------
Cash and cash equivalents, end of                                           
 period                             $  55,333 $ 138,963 $  55,333 $ 138,963 
----------------------------------------------------------------------------
See accompanying notes to the consolidated financial statements.            
                                                                            
Selected Notes to Condensed Consolidated Interim Financial Statements       
 (Unaudited)                                                                
                                                                            
For the three and nine months ended September 30, 2012 and 2011             
                                                                            
NOTE 3 - LOANS AND BORROWINGS                                               
                                                                            
Long term debt                                                              
                                                                            
                                                     September              
As at                                                      30, December 31, 
(Stated in thousands)                                     2012         2011 
----------------------------------------------------------------------------
Notes payable                                       $  376,841   $  412,646 
Finance lease obligations                               37,505       26,766 
Revolving credit facility                              205,274            - 
Bank loans                                              11,310            - 
Hedge receivable                                        (4,154)      (4,903)
----------------------------------------------------------------------------
Total                                                  626,776      434,509 
Current portion of finance lease obligations (1)       (12,715)      (8,828)
Russian demand revolving credit facility               (11,310)           - 
Current portion of long-term debt                            -      (25,425)
----------------------------------------------------------------------------
Non-current                                         $  602,751   $  400,256 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Current portion of finance lease obligations is included in trade and   
    other payables.                                                         

On October 18, 2011, Trican entered into a new $450 million four year extendible revolving credit facility (the "New Facility") with a syndicate of banks. On October 18, 2012, Trican extended the New Facility by an additional year. The New Facility, which replaced the previous $250 million three year extendible facility, is unsecured and bears interest at the applicable Canadian prime rate, U.S. prime rate, Banker's Acceptance rate or at LIBOR plus 50 to 325 basis points, dependent on certain financial ratios of the Company. The New Facility requires Trican to comply with certain financial and non-financial covenants that are typical for this type of arrangement. Trican was in compliance with these covenants at September 30, 2012.

Notes payable

The Notes payable require the Company to comply with certain financial and non-financial covenants that are typical for this type of arrangement. At September 30, 2012, the Company was in compliance with these covenants (2011 - in compliance). During the quarter ended June 30, 2012, Trican repaid U.S. $25.0 million in notes payable.

NOTE 4 - SHARE CAPITAL

Share capital

Authorized:

The Company is authorized to issue an unlimited number of common and preferred shares, issuable in series. The shares have no par value.


Issued and Outstanding - Common Shares:                                     
----------------------------------------------------------------------------
                                                       Number of            
(stated in thousands, except share amounts)               Shares     Amount 
----------------------------------------------------------------------------
Balance, January 1, 2012                             146,916,859  $ 529,062 
Exercise of stock options                                288,718      1,289 
Reclassification from contributed surplus on exercise                       
 of options                                                    -        231 
Shares repurchased and cancelled under NCIB             (755,400)    (2,722)
----------------------------------------------------------------------------
Balance, September 30, 2012                          146,450,177  $ 527,860 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

All issued shares are fully paid.

Normal Course Issuer Bid

The Company received approval from the Toronto Stock Exchange to purchase its own common shares, for cancellation, in accordance with a Normal Course Issuer Bid ("NCIB") for the one year period of March 2, 2012 to March 2, 2013. During the nine months ended September 30, 2012, 755,400 common shares were purchased at a cost of $10.0 million, of which $2.7 million was charged to Share Capital and $7.3 million to retained earnings.


NOTE 5 - EARNINGS PER SHARE                                                 
                                                                            
(Stated in thousands,                                                       
 except share and per   For the three months ended For the nine months ended
 share amounts)                      September 30,             September 30,
Basic earnings per share         2012         2011         2012         2011
----------------------------------------------------------------------------
Profit attributable to                                                      
 owners of the company   $     22,742 $    111,284 $     61,415 $    223,786
Weighted average number                                                     
 of common shares         146,431,602  146,299,022  146,676,555  145,482,252
Basic earnings per share $       0.16 $       0.76 $       0.42 $       1.54
----------------------------------------------------------------------------
                                                                            
Diluted earnings per                                                        
 share                           2012         2011         2012         2011
----------------------------------------------------------------------------
Profit attributable to                                                      
 owners of the company   $     22,742 $    111,284 $     61,415 $    223,786
Weighted average number                                                     
 of common shares         146,431,602  146,299,022  146,676,555  145,482,252
Diluted effect of stock                                                     
 options                       14,444    1,566,739       96,275    1,779,133
----------------------------------------------------------------------------
Diluted weighted average                                                    
 number of common shares  146,446,046  147,865,761  146,772,830  147,261,385
Diluted earnings per                                                        
 share                   $       0.16 $       0.75 $       0.42 $       1.52
----------------------------------------------------------------------------

At September 30, 2012, 5.8 million (2011 - 5.3 million) options were excluded from the diluted weighted average number of ordinary shares calculation as their effect would have been anti-dilutive.


NOTE 6 - INCOME TAXES                                                       
                                                                            
(Stated in thousands)                                                       
Nine months ended September 30,                              2012       2011
----------------------------------------------------------------------------
Current income tax expense                              $  84,177  $  39,903
Deferred income tax (recovery)/expense                    (76,396)    54,823
----------------------------------------------------------------------------
                                                        $   7,781  $  94,726
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The net income tax provision differs from that expected by applying the combined federal and provincial income tax rate of 25.17% (2011 - 26.64%) to income before income taxes for the following reasons:


                                                                            
(Stated in thousands)                                                       
Nine months ended September 30,                             2012       2011 
----------------------------------------------------------------------------
Expected combined federal and provincial income tax    $  17,354  $  84,847 
Statutory and other rate differences                     (15,678)     6,905 
Non-deductible expenses                                    6,658      6,018 
Translation of foreign subsidiaries                         (740)        15 
Changes to deferred income tax rates                           -     (3,925)
Capital and other foreign tax                                 45        608 
Other                                                        142        258 
----------------------------------------------------------------------------
                                                       $   7,781  $  94,726 
----------------------------------------------------------------------------
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NOTE 9 - OPERATING SEGMENTS

The Company operates in Canada and the U.S. along with a number of international operations. The international regions include Russia, Algeria, Kazakhstan, Australia and Saudi Arabia. Each geographic region has a General Manager that is responsible for the operation and strategy of their region's business. Personnel working within the particular geographic region report to the General Manager; the General Manager reports to the corporate executive.

The Company provides a comprehensive array of specialized products, equipment, services and technology to customers through three operating divisions:


--  Canadian operations provides cementing, fracturing, coiled tubing,
    nitrogen, geological, and acidizing services, which are performed on new
    and existing oil and gas wells, and industrial services. 
--  U.S. operations provides cementing, fracturing, coiled tubing, nitrogen,
    and acidizing services which are performed on new and existing oil and
    gas wells. 
--  International operations provides cementing, fracturing, coiled tubing,
    and nitrogen services which are performed on new and existing oil and
    gas wells. 

Information regarding the results of each geographic region is included below. Performance is measured based on Revenue and Gross profit as included in the internal management reports which are reviewed by the Company's executive management team. Each region's Gross profit is used to measure performance as management believes that such information is most relevant in evaluating regional results relative to other entities that operate within the industry.


                                  United                                    
(Stated in           Canadian     States International                      
 thousands)        Operations Operations    Operations Corporate      Total 
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Three months ended September                                                
 30, 2012                                                                   
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Revenue             $ 321,948 $  198,881  $     72,375 $       - $  593,204 
Gross profit/(loss)    93,758    (31,946)        6,554    (5,873)    62,493 
Finance income              -          -             -      (474)      (474)
Finance costs               -          -             -     7,696      7,696 
Tax                                                                         
 expense/(recovery)    17,289    (16,972)          976        (9)     1,284 
Depreciation and                                                            
 amortization          13,880     16,544         6,696       150     37,270 
Assets                903,794  1,130,052       322,453    51,224  2,407,523 
Goodwill               22,690          -         6,695    14,226     43,611 
Property and                                                                
 equipment            529,353    773,920       115,079    15,504  1,433,856 
Capital                                                                     
 expenditures           6,183     67,487         1,844     6,193     81,707 
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Three months ended September                                                
 30, 2011                                                                   
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Revenue             $ 371,481 $  207,288  $     80,335 $       - $  659,104 
Gross profit/(loss)   145,635     42,181         6,009    (5,865)   187,960 
Finance income              -          -             -     1,001      1,001 
Finance costs               -          -             -     6,057      6,057 
Tax expense            31,505     13,604         2,150      (825)    46,434 
Depreciation and                                                            
 amortization          10,472     14,937         5,882       183     31,474 
Assets                834,635    791,171       246,901   229,931  2,102,638 
Goodwill               22,690          -        20,791         -     43,481 
Property and                                                                
 equipment            439,123    514,796        90,410     9,720  1,054,049 
Capital                                                                     
 expenditures          60,920     93,354         3,110       580    157,964 
Goodwill                                                                    
 expenditures               -          -         6,565         -      6,565 
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                                  United                                    
(Stated in           Canadian     States International                      
 thousands)        Operations Operations    Operations Corporate      Total 
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Nine months ended September                                                 
 30, 2012                                                                   
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Revenue            $  895,237  $ 624,194    $  208,104 $       - $1,727,535 
Gross profit/(loss)   241,237    (59,015)        7,763   (16,952)   173,033 
Finance income              -          -             -    (1,662)    (1,662)
Finance costs               -          -             -    22,123     22,123 
Tax                                                                         
 expense/(recovery)    42,334    (35,106)          243       310      7,781 
Depreciation and                                                            
 amortization          38,734     52,755        19,525       259    111,273 
Capital                                                                     
 expenditures         111,776    241,200        26,693     6,193    385,862 
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Nine months ended September                                                 
 30, 2011                                                                   
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Revenue            $  865,663  $ 523,244    $  226,526 $       - $1,615,433 
Gross profit/(loss)   292,074    113,148        15,059   (16,069)   404,212 
Finance income              -          -             -     2,324      2,324 
Finance costs               -          -             -    13,484     13,484 
Tax expense            58,159     34,261         2,355       (49)    94,726 
Depreciation and                                                            
 amortization          32,716     39,378        17,551       488     90,133 
Capital                                                                     
 expenditures         128,115    273,704        12,303     1,523    415,645 
Goodwill                                                                    
 expenditures               -          -         6,565         -      6,565 
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The Corporate division does not represent an operating segment and is included for informational purposes only. Corporate division expenses consist of salary expenses, stock-based compensation and office costs related to corporate employees, as well as public company costs.

FORWARD-LOOKING INFORMATION

The MD&A contains certain forward-looking statements and other information based on Trican's current expectations, estimates, projections and assumptions that were made by the Company in light of information available at the time the statement was made. Statements and other information that address expectations or projections about the future, and other statements and information about the Company's strategy for growth, expected and future expenditures, costs, operating and financial results, future financing and capital activities are forward-looking statements. Some forward-looking statements are identified by the use of terms and phrases such as "anticipate," "achieve", "achievable," "believe," "estimate," "expect," "intend", "plan", "planned", and other similar terms and phrases. These statements speak only as of the date of this document and we do not undertake to publicly update these forward-looking statements except in accordance with applicable securities laws. These forward-looking statements include, among others:


--  Remaining capital expenditures for the 2012 capital program are expected
    to be approximately $70 to $120 million; 
--  Trican intends to use the net proceeds from the issuance of senior
    unsecured notes to fund a portion of its 2012 capital program and for
    general corporate purposes;  
--  We intend to consider removing additional U.S. fracturing crews from
    service if warranted by deteriorating market conditions; 
--  We expect a more meaningful U.S. operating margin improvement during the
    fourth quarter of 2012 as a result of the significant decrease in guar
    prices; 
--  We expect to see additional benefit from cost cutting measures in the
    U.S. in the fourth quarter of 2012 and into 2013; 
--  We intend to continue to focus on growing our cementing business in the
    U.S., as well as our coiled tubing service line, as we move towards
    becoming a full service pressure pumping company in the U.S.; 
--  Our Russian customers' work programs remain behind schedule and overall
    revenue is expected to come in below our initial expectations for this
    region; 
--  We believe the trend towards more horizontal drilling and completions
    work in Russia will continue and result in increased pressure pumping
    demand in the region; 
--  Expectation that activity levels will increase in Kazakhstan during the
    fourth quarter of 2012; 
--  We expect our Canadian 2012 fourth quarter revenue to decrease relative
    to the third quarter of 2012; 
--  Early fourth quarter drilling and completions activity in Canada is
    expected to remain consistent with activity levels seen in the third
    quarter; however, activity levels are expected to decrease near the end
    of the quarter as we move into the holiday season and our customers
    complete their 2012 budgets; 
--  We expect Canadian pricing to decrease sequentially in the fourth
    quarter due to additional pressure pumping supply in Canada combined
    with the expectation of reduced activity levels near the end of the
    quarter; 
--  We expect a reduction in fourth quarter 2012 operating margins in
    Canada; 
--  We expect 2013 first quarter activity levels to be strong in Canada
    based on current commodity prices and an expectation that 2013 producer
    budgets will be consistent with 2012; 
--  We have seen the price of guar decline recently and expect this trend to
    improve our operating margins during the fourth quarter of 2012; 
--  We expect any improvements in U.S. operating margins will be gradual and
    dependent on a relatively stable pricing environment; 
--  If the U.S. operating environment deteriorates any further, we intend to
    examine shutting down additional U.S. fracturing crews until market
    conditions improve; 
--  We anticipate seeing additional benefit in the U.S. from cost cutting
    measures in the fourth quarter of 2012 with the most meaningful
    improvements in product, freight, unit, wage and base expenses; 
--  Despite the recent weakness in the U.S. market, we remain confident in
    our ability to manage our business through the current downturn; 
--  We expect strong activity levels in Russia in the early part of the
    fourth quarter as our customers work towards meeting 2012 spending and
    production targets; however, consistent with previous years, we expect
    activity levels to decrease near the end of the fourth quarter as we
    move into the holiday season and face challenging weather conditions in
    western Siberia; 
--  Contracts for 2013 work in Russia are currently being tendered and we
    expect to have greater visibility on our 2013 outlook in Russia by the
    end of the year; and 
--  We do not expect operations in Australia and Algeria to have a
    meaningful impact on our operating results for the remainder of 2012. 

Forward-looking information and financial outlook is based on current expectations, estimates, projections and assumptions, which we believe are reasonable but which may prove to be incorrect. Trican's actual results may differ materially from those expressed or implied and therefore such forward-looking information and financial outlook should not be unduly relied upon. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the Company's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate its business in a safe, efficient and effective manner; the performance and characteristics of various business segments; the effect of current plans; the timing and costs of capital expenditures; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its products and services.

Forward-looking information and financial outlook is subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks and uncertainties include: fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; weather conditions; regulatory changes; the successful exploitation and integration of technology; customer acceptance of technology; success in obtaining issued patents; the potential development of competing technologies by market competitors; and availability of products, qualified personnel, manufacturing capacity and raw materials. The foregoing important factors are not exhaustive. In addition, actual results could differ materially from those anticipated in forward-looking information and financial outlook provided herein as a result of the risk factors set forth under the section entitled "Risks Factors" in our Annual Information Form dated March 22, 2012. Readers are also referred to the risk factors and assumptions described in other documents filed by the Company from time to time with securities regulatory authorities.

Additional information regarding Trican including Trican's most recent annual information form is available under Trican's profile on SEDAR (www.sedar.com).

Requests for shareholder information should be directed to Dale Dusterhoft, Michael Baldwin or Gary Summach.

Contacts:
Trican Well Service Ltd.
Dale Dusterhoft
Chief Executive Officer
(403) 266 - 0202
(403) 237 - 7716 (FAX)
[email protected]

Trican Well Service Ltd.
Michael Baldwin
Vice President, Finance & CFO
(403) 266 - 0202
(403) 237 - 7716 (FAX)
[email protected]

Trican Well Service Ltd.
Gary Summach
Director of Reporting and Investor Relations
(403) 266 - 0202
(403) 237 - 7716 (FAX)
[email protected]

Trican Well Service Ltd.
2900, 645 - 7th Avenue S.W.
Calgary, Alberta T2P 4G8
www.trican.ca

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