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Trican Reports Fourth Quarter Results for 2013

CALGARY, ALBERTA -- (Marketwired) -- 02/25/14 -- Trican Well Service Ltd. (TSX: TCW) -

Financial Review


                           -------------------------------------------------
                                      Three months ended Twelve months ended
                            Dec. 31,  Dec. 31, Sept. 30,  Dec. 31,  Dec. 31,
($ millions, except per
 share amounts; unaudited)      2013      2012      2013      2013      2012
----------------------------------------------------------------------------
Revenue                     $  552.1  $  485.9  $  548.3  $2,115.5  $2,213.0
Operating income
 (i)                            35.5      35.1      72.7     179.6     240.1
Profit / (loss)                (20.8)     (7.7)      5.7     (45.9)     53.3
Earnings / (loss)
 per share       (basic)    $  (0.14) $  (0.05) $   0.04  $  (0.31) $   0.37
                 (diluted)  $  (0.14) $  (0.05) $   0.04  $  (0.31) $   0.37
Adjusted profit /
 (loss) (i)                     (9.9)     (5.4)      9.7     (31.5)     63.0
Adjusted profit /
 (loss) per
 share(i)        (basic)    $  (0.07) $  (0.04) $   0.07  $  (0.21) $   0.43
                 (diluted)  $  (0.07) $  (0.04) $   0.07  $  (0.21) $   0.43
Funds provided by
 / (used in)
 operations(i)                  30.4     (14.5)     71.1     130.8     126.8
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Notes:

(i) Trican makes reference to operating income, adjusted net income (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 net income (loss), operating income, adjusted net income (loss) and funds provided by (used in) operations are useful supplemental measures. Operating income provides investors with an indication of earnings before depreciation, foreign exchange, taxes and interest. Adjusted net income (loss) provides investors with information on net income (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, adjusted net income (loss), and funds provided by (used in) operations should not be construed as an alternative to net income (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, adjusted net income (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.

FOURTH QUARTER HIGHLIGHTS

Consolidated revenue for the fourth quarter of 2013 was $552.1 million, an increase of 14% compared to the fourth quarter of 2012. The adjusted consolidated loss was $9.9 million compared to $5.4 million, and adjusted loss per share was $0.07 compared to $0.04 for the same period in 2012.

Due to a rise in fracturing intensity per well in Canada, including increased sand usage per well, we have seen increased wear on fluid ends over the past year. As a result, the useful life of a fluid end has decreased and led to a $14.3 million charge to depreciation expense in the fourth quarter of 2013 ($10.7 million net of tax) to write-off fluid ends no longer in use. Effective January 1, 2014, we will change our accounting estimate on the useful life of a fluid end to more accurately reflect current operating conditions. We assessed the useful life of fluid ends in our other operating regions and concluded that no further changes in estimates were required in those regions.

Our Canadian operations earned quarterly revenue of $286.9 million in the fourth quarter of 2013, an increase of 17% compared to the fourth quarter of 2012. Fourth-quarter operating income was $53.1 million, which was up 4% on a year-over-year basis. Canadian revenue increased sequentially by 3% due to the strong demand in October and November; however, operating margins decreased sequentially by 660 basis points. Fourth-quarter margins were negatively impacted by cost increases and pricing declines. Cost increases were driven primarily by higher third-party hauling, fuel, and repairs and maintenance expenses. Canadian fracturing prices decreased by approximately 3% and cementing prices decreased by approximately 1%, on a sequential basis, which also had a negative impact on fourth-quarter operating margins.

Revenue in the fourth quarter of 2013 for our U.S. operations was relatively consistent with the fourth quarter of 2012, but decreased by 4% on a sequential basis. Revenue for our U.S. pressure pumping business was down sequentially, largely due to reduced activity in the Marcellus play. As expected, our key customers in the Marcellus play decreased spending levels as 2013 capital budgets were completed. In addition, winter weather led to reduced industry activity in the Permian play during the fourth quarter of 2013. Lower revenue from our pressure pumping business was partially offset by a 50% increase in revenue for our U.S. completion tools business. Our U.S. operations incurred an operating loss of $8.3 million during the fourth quarter as operating margins were negatively impacted by reduced pressure pumping activity.

Revenue from International operations was $91.8 million compared to $68.0 million in the fourth quarter of 2012. The majority of international revenue is generated by our Russian operations and pressure pumping demand was strong in this region throughout the fourth quarter of 2013. Favorable weather conditions allowed our Russian customers to remain active throughout the quarter and catch-up on 2013 capital spending plans that were behind schedule for most of 2013. Although Russian operating margins improved on a year-over-year basis, continued cost inflation limited the margin increase. Weak results for our Algerian operations and start-up costs in both Saudi Arabia and Colombia also had a negative impact on International operating margins during the fourth quarter of 2013.

MANAGEMENT'S DISCUSSION AND ANALYSIS


COMPARATIVE QUARTERLY INCOME STATEMENTS ($ thousands, unaudited)
----------------------------------------------------------------------------
                                                         Quarter-
                                                            Over-
                                % of               % of   Quarter        %
Three months ended
 December 31,          2013  Revenue      2012  Revenue    Change   Change
----------------------------------------------------------------------------

Revenue             552,144      100%  485,865    100.0%   66,279     13.6%
Expenses
  Materials and
   operating        490,713     88.9%  422,999     87.1%   67,714     16.0%
  General and
   administrative    25,931      4.7%   27,743      5.7%   (1,812)    (6.5%)
----------------------------------------------------------------------------
Operating income(i)  35,500      6.4%   35,123      7.2%      377      1.1%
  Finance costs       8,592      1.6%    8,373      1.7%      219      2.6%
  Depreciation and
   amortization      70,085     12.7%   41,564      8.6%   28,521     68.6%
  Foreign exchange
   gain              (5,968)    (1.1%)  (3,467)    (0.7%)  (2,501)    72.1%
  Other loss /
   (income)             432      0.1%     (560)    (0.1%)     992   (177.1%)
----------------------------------------------------------------------------
Loss before income
 taxes and non-
 controlling
 interest           (37,641)    (6.8%) (10,787)    (2.2%) (26,854)   249.0%
Income tax recovery (16,431)    (3.0%)  (2,957)    (0.6%) (13,474)   455.7%
Non-controlling
 interest              (380)    (0.1%)     (88)    (0.0%)    (292)  (331.8%)
----------------------------------------------------------------------------
Net loss            (20,830)    (3.8%)  (7,742)    (1.6%) (13,088)   169.1%
----------------------------------------------------------------------------
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(i) see first page of this report

CANADIAN OPERATIONS


----------------------------------------------------------------------------
($ thousands, except
 revenue per job,                                             Sept.
 unaudited)              Dec. 31,    % of Dec. 31,    % of      30,    % of
Three months ended,          2013 Revenue     2012 Revenue 2013(ii) Revenue
----------------------------------------------------------------------------
Revenue                   286,869          244,237          279,783
Expenses
  Materials and operating 228,533    79.7% 187,313    76.7% 203,005    72.6%
  General and
   administrative           5,244     1.8%   5,897     2.4%   6,610     2.4%
                         --------         --------         --------
  Total expenses          233,777    81.5% 193,212    79.1% 209,615    74.9%
Operating income(i)        53,092    18.5%  51,025    20.9%  70,168    25.1%
Number of jobs              5,154            5,572            6,082
Revenue per job            55,435           43,545           45,393
----------------------------------------------------------------------------
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(i) see first page of this report

(ii) Certain prior period comparative numbers have been restated to be consistent with the presentation used in Q4 2013

Sales Mix


----------------------------------------------------------------------------
Three months ended,                            Dec. 31,  Dec. 31, Sept. 30,
(unaudited)                                        2013      2012      2013
----------------------------------------------------------------------------
% of Total Revenue
Fracturing                                           67%       61%       70%
Cementing                                            18%       21%       18%
Nitrogen                                              6%        6%        4%
Industrial Services                                   4%        0%        2%
Coiled Tubing                                         3%        5%        3%
Acidizing                                             1%        3%        2%
Other                                                 1%        4%        1%
----------------------------------------------------------------------------
Total                                               100%      100%      100%
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Operations Review

Canadian fracturing and cementing demand was strong in October and November and the early part of December, but decreased substantially in the second half of December. The lower activity in late December was due to reduced customer spending as 2013 drilling and completions budgets came to a close, combined with reduced activity over the holiday season. This decrease was expected and consistent with the previous year.

Canadian revenue increased sequentially by 3% due to the strong demand in October and November; however, operating margins decreased sequentially by 660 basis points. Fourth quarter margins were negatively impacted by cost increases and pricing declines.

A substantial increase in third-party hauling expenses had a meaningful impact on fourth quarter Canadian operating margins. The fracturing job size and the amount of sand pumped per fracturing stage increased sequentially and led to increased hauling requirements for our fracturing service line. As a result, third-party hauling costs increased sequentially by over 70%. In addition, the cost of diesel increased by 12% and repairs and maintenance expenses increased by 12% compared to the third quarter of 2013. Due to the competitive nature of Canadian pressure pumping market, we were unable to recover these cost increases through higher pricing.

There was downward pressure on pricing despite the strong demand that Trican experienced throughout most of the fourth quarter, as the Canadian market remained highly competitive. On a sequential basis, fracturing prices decreased by approximately 3% and cementing prices decreased by approximately 1% negatively impacting fourth-quarter operating margins.

Our Canadian completion tools division continued to grow and achieve increased market penetration during the fourth quarter of 2013. Revenue increased by over 20% on a sequential basis as we continued to see good customer acceptance of our tool portfolio in Canada.

Q4 2013 versus Q4 2012

Canadian revenue in the fourth quarter of 2013 increased by 17% compared to the fourth quarter of 2012. Revenue per job increased by 27% as a 17% year-over-year decrease in price was more than offset by larger job sizes for our fracturing and nitrogen service lines. We are continuing to see an increase in fracturing stages per well and more product usage per job, including sand and nitrogen, which has led to the larger job sizes. An increase in fracturing revenue relative to total revenue also contributed to the increase in revenue per job, as fracturing jobs generally have significantly higher revenue per job than other service lines.

The job count decreased by 8% despite the increase in overall Canadian activity. Cementing and fracturing jobs remained relatively stable on a year-over-year basis; however, coiled tubing jobs decreased significantly and contributed to most of the decline in the overall job count. Lower coiled tubing demand also had a negative impact on our nitrogen and acidizing job count as these service lines are closely correlated with coiled tubing. We are continuing to see increased competition for our coiled tubing services in Canada, which is contributing to the decline in job count.

As a percentage of revenue, materials and operating expenses increased to 79.7% from 76.7% in the fourth quarter of 2012. The year-over-year decrease in price and higher third-party hauling and fuel expenses led to lower margins and was partially offset by lower employee costs, as a percentage of revenue, as well as lower guar and repairs and maintenance expenses. General and administrative costs were down $0.7 million largely due to lower share based expenses.

Q4 2013 versus Q3 2013

Canadian revenue increased by 3% on a sequential basis. Fourth-quarter industry activity levels in Canada were relatively consistent with the third quarter despite the large movements in the job count and revenue per job. The job count decreased by 15% due to a change in job type and customer mix. Fracturing job size was much larger sequentially, which led to fewer jobs performed in the fourth quarter of 2013 as the larger jobs are generally more time consuming. In addition, a decrease in coiled tubing jobs and associated nitrogen and acidizing work, contributed to the decline in job count. The shift to larger fracturing jobs in the fourth quarter led to the 22% increase in revenue per job.

Materials and operating expenses increased to 79.7% of revenue compared to 72.6% of revenue in the third quarter of 2013. The reduction in operating margins was due largely to a decrease in price combined with cost increases for third-party hauling, fuel, and repairs and maintenance expenses. General and administrative costs were down $1.4 million due largely to lower profit-sharing and share-based expenses.

UNITED STATES OPERATIONS


----------------------------------------------------------------------------
($ thousands, except
 revenue per job,                                             Sept.
 unaudited)          Dec. 31,     % of  Dec. 31,     % of       30,    % of
Three months ended,      2013  Revenue      2012  Revenue  2013(ii) Revenue
----------------------------------------------------------------------------
Revenue               173,470            173,589            180,401
Expenses
  Materials and
   operating          174,989    100.9%  171,140     98.6%  169,049    93.7%
  General and
   administrative       6,776      3.9%    4,553      2.6%    6,541     3.6%
                     ---------          ---------          --------
  Total expenses      181,765    104.8%  175,693    101.2%  175,590    97.3%
Operating (loss) /
 income(ii)            (8,295)    (4.8%)  (2,104)    (1.2%)   4,811     2.7%
Number of jobs          2,262              1,654              2,284
Revenue per job        68,533            105,077             76,238
----------------------------------------------------------------------------
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(i) see first page of this report

(ii) Certain prior period comparative numbers have been restated to be consistent with the presentation used in Q4 2013

Sales Mix


----------------------------------------------------------------------------
Three months ended,                            Dec. 31,  Dec. 31, Sept. 30,
(unaudited)                                        2013      2012      2013
----------------------------------------------------------------------------
% of Total Revenue
Fracturing                                           88%       90%       88%
Cementing                                             7%        7%        8%
Coiled Tubing                                         5%        3%        4%
----------------------------------------------------------------------------
Total                                               100%      100%      100%
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Operations Review

Activity levels declined on a sequential basis for our U.S. pressure pumping operations during the fourth quarter of 2013. As expected, revenue earned in the Marcellus play declined substantially as our key customers in the region reduced activity levels during the fourth quarter. Declines in the Marcellus play were partially offset by increased revenue earned in the Bakken in the fourth quarter relative to the third quarter of 2013. Revenue earned in the Eagle Ford and Permian plays were relatively flat on a sequential basis; however, fourth quarter activity levels in the Permian region were negatively impacted by winter weather.

Fourth-quarter pricing declined in the Eagle Ford region on a sequential basis as this area remains competitive and over-supplied with pressure pumping equipment. Pricing remained relatively stable in all other U.S. operating regions.

Our U.S. completion tools business continued to show excellent growth with revenue increasing by over 50% on a sequential basis. We continue to see customer acceptance of our completion tools in the U.S. and will look to grow this business and increase profitability throughout 2014.

Q4 2013 versus Q4 2012

Revenue for our U.S. operations decreased slightly as lower pricing for our U.S. pressure pumping business was offset by an increase in our U.S. completion tools revenue. The job count increased by 37% due to year-over-year increases in all service lines including substantial increases in acidizing, nitrogen and cementing as a result of Trican's strategic focus to expand our service offering in the US. Revenue per job decreased by 35% due to a decrease in price combined with a change in job mix. A substantial amount of fracturing work was performed in the Haynesville region in the fourth quarter of 2012, and fracturing jobs in this region are generally larger due to the high pumping pressure and rate required to fracture the wells. No work was performed in the Haynesville region during the fourth quarter of 2013.

As a percentage of revenue, materials and operating expenses increased to 100.9% of revenue compared to 98.6% in the same period of the prior year. Year-over-year operating margins were negatively impacted by lower pricing, which was partially offset by lower costs due to cost cutting measures implemented throughout 2013 and higher margins associated with the U.S. completions tools business. An increase in the cost of diesel also had a negative impact on fourth quarter operating margins. General and administrative expenses increased by $2.2 million due largely to increased overhead costs associated with the growth of the U.S. completion tools business and one-time administrative expenses.

Q4 2013 versus Q3 2013

Revenue decreased by 4% on a sequential basis for our U.S. operations. The job count decreased by 1%, sequentially, due to declines in fracturing and cementing activity, offset partially by increases in acidizing and nitrogen jobs. Revenue per job fell by 10% due largely to changes in customer mix and price decreases in the Eagle Ford region.

As a percentage of revenue, materials and operating expenses increased to 100.9% compared to 93.7% in the third quarter of 2013. Operating margins were negatively impacted by the reduced activity in the Marcellus play. The Marcellus play was our most profitable region in the third quarter of 2013; therefore, lower activity in this region had a meaningful impact on fourth quarter operating margins. Improved profitability for our U.S. completion tools business partially offset the impact of lower Marcellus activity. General and administrative expenses increased slightly by $0.2 million as increased overhead costs associated with the growth of the U.S. completion tools business were partially offset by lower share-based expenses.

INTERNATIONAL OPERATIONS


----------------------------------------------------------------------------
($ thousands, except
 revenue per job,                                             Sept.
 unaudited)              Dec. 31,    % of Dec. 31,    % of      30,    % of
Three months ended,          2013 Revenue     2012 Revenue     2013 Revenue
----------------------------------------------------------------------------
Revenue                    91,805           68,039           88,161
Expenses
  Materials and operating  80,556    87.7%  57,941    85.2%  71,523    81.1%
  General and
   administrative           4,434     4.8%   4,216     6.2%   4,176     4.8%
                         --------         --------         --------
  Total expenses           84,990    92.6%  62,157    91.4%  75,699    85.9%
Operating income(i)         6,815     7.4%   5,882     8.6%  12,462    14.1%
Number of jobs              1,074              951            1,232
Revenue per job            82,872           68,586           69,180
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(i) see first page of this report

Sales Mix


----------------------------------------------------------------------------
Three months ended,                            Dec. 31,  Dec. 31, Sept. 30,
(unaudited)                                        2013      2012      2013
----------------------------------------------------------------------------
% of Total Revenue
Fracturing                                           84%       82%       81%
Coiled Tubing                                         6%        9%       10%
Cementing                                             5%        6%        5%
Nitrogen                                              2%        1%        2%
Other                                                 3%        2%        2%
----------------------------------------------------------------------------
Total                                               100%      100%      100%
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Operations Review

The majority of international revenue is generated by our Russian operations and pressure pumping demand was strong in this region throughout the fourth quarter of 2013. Favorable weather conditions allowed our Russian customers to remain active throughout the quarter and catch up on 2013 capital spending plans that were behind schedule for most of 2013. Although Russian operating margins improved on a year-over-year basis, continued cost inflation limited the margin increase.

Weak results for our Algerian operations had a significant impact on international operating margins during the fourth quarter of 2013. Asset impairment write-downs on inventory and equipment were recorded during the fourth quarter relating to our Algerian cementing operations that were shut down earlier in the year. The asset write-downs, combined with weak results for our coiled tubing operations in Algeria, negatively impacted fourth-quarter international operating margins by 250 basis points.

We expect to begin coiled tubing operations in Saudi Arabia and cementing operations in Colombia during the first half of 2014. As a result, we incurred start-up costs in both regions during the fourth quarter compared to the third quarter of 2013 and the fourth quarter of 2012, which had a negative impact on fourth-quarter operating margins.

There was minimal revenue growth for our Australian operations in the fourth quarter of 2013 on both a sequential and year-over-year basis. We remain optimistic about the long-term growth opportunities in the region and are committed to growing our Australian cementing business during 2014.

We continue to see good demand for our completion tools in the North Sea and will look to grow this business in 2014.

Q4 2013 versus Q4 2012

International revenue increased by 35% due largely to an increase in Russian revenue. The job count rose by 13% due to increases in Russian cementing and fracturing activity that benefited from more favorable weather conditions compared to the fourth quarter of 2012. Revenue per job increased by 21% due to larger fracturing and cementing jobs for our Russian service line and increased fracturing revenue relative to total revenue. Completion tools activity also contributed to the year-over-year increase in international revenue as this service line was not offered internationally in 2012.

As a percentage of revenue, materials and operating expenses increased to 87.7% from 85.2%. Increased operating leverage from higher revenue was more than offset by increased product costs in Russia, operating losses in Algeria, and increased start-up costs in Colombia and Saudi Arabia. General and administrative expenses increased by $0.2 million due largely to increased overhead costs in Colombia and Saudi Arabia as we prepared to begin active operations in the first half of 2014.

Q4 2013 versus Q3 2013

International revenue in the fourth quarter of 2013 increased sequentially by 4%. Revenue per job increased by 20% due to an increase in fracturing revenue relative to total revenue and an increase in fracturing and cementing job size in Russia. The job count decreased by 13% due largely to a sequential decrease in Russian activity as the third quarter is typically the most active quarter in Russia.

Materials and operating expenses increased to 87.7% from 81.1% due partially to a change in customer and job mix in Russia that resulted in lower operating margins. Operating losses in Algeria and increased start-up costs in Colombia and Saudi Arabia also contributed to the decline in operating margins. General and administrative expenses increased by $0.3 million due largely to increased overhead costs in Colombia and Saudi Arabia as we prepared to begin active operations in the first half of 2014.

CORPORATE


----------------------------------------------------------------------------
($ thousands, except
 revenue per job,                                            Sept.
 unaudited)           Dec. 31,     % of Dec. 31,     % of      30,     % of
Three months ended,       2013  Revenue     2012  Revenue     2013  Revenue
----------------------------------------------------------------------------
Expenses
  Materials and
   operating             6,635      1.2%   6,603      1.4%   5,835      1.1%
  General and
   administrative        9,477      1.7%  13,077      2.7%   8,904      1.6%
                      ---------         ---------         ---------
  Total expenses        16,112      2.9%  19,680      4.1%  14,739      2.7%
Operating loss(i)      (16,112)          (19,680)          (14,739)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(i) see first page of this report

Q4 2013 versus Q4 2012

Corporate expenses in the fourth quarter of 2013 were down $3.6 million compared to the fourth quarter of 2012. Reductions in profit sharing, share-based compensation expense and professional fees contributed to the majority of the decrease. The lower professional fees were due to i-TEC acquisition costs that were incurred during the fourth quarter of 2012.

Q4 2013 versus Q3 2013

Corporate expenses increased sequentially by $1.4 million due largely to an increase in donation expenses in the fourth quarter of 2013.

OTHER EXPENSES AND INCOME

Finance costs in the fourth quarter of 2013 increased by $0.2 million on a year-over-year basis due to slightly higher average interest rates on the notes payable and revolving credit facility. Other loss was $0.4 million in the quarter versus income of $0.6 million for the same period in the prior year. Other loss/income is largely comprised of gains and losses on disposal of property and equipment and interest income earned on cash balances.

Depreciation and amortization expense for the fourth quarter of 2013 includes a $14.3 million charge for accelerated depreciation on fluid ends in Canada. $9.5 million of this adjustment ($7.2 million net of tax) relates to the first three quarters of 2013, and has been excluded from adjusted net income for the fourth quarter of 2013.

Depreciation and amortization expense for the fourth quarter of 2013 also includes $3.1 million in amortization on the intangible assets relating to the purchase of i-TEC. The purchase date of this transaction was January 11, 2013 and the amortization period began on this date. The purchase price accounting was not finalized until the fourth quarter of 2013; therefore, a catch-up entry was required to ensure that adequate amortization had been recorded as of December 31, 2013. $2.1 million of this adjustment ($1.6 million net of tax) relates to periods prior to October 1, 2013 and has been excluded from adjusted net income for the fourth quarter of 2013.

Excluding these one-time charges, depreciation and amortization increased by $11.1 million, on a year-over-year basis, due to an increase in the average balance of capital assets subject to depreciation, primarily in North America.

The foreign exchange gain of $6.0 million in the quarter versus a gain of $3.5 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. In particular, the value of the U.S. dollar increased by 3.2% relative to the Canadian dollar, which led to foreign exchange gains on net U.S. dollar assets.


COMPARATIVE ANNUAL INCOME STATEMENTS
----------------------------------------------------------------------------
($ thousands;
 unaudited)                                                  Year-
                                                             Over-
                              % of                % of        Year       %
Year ended
 December 31,         2013 Revenue        2012 Revenue      Change  Change
----------------------------------------------------------------------------

Revenue          2,115,472   100.0%  2,213,400   100.0%    (97,928)     (4%)
Expenses
 Materials and
  operating      1,826,221    86.3%  1,870,889    84.5%    (44,668)     (2%)
 General and
  administrative   109,701     5.2%    102,443     4.6%      7,258       7%
----------------------------------------------------------------------------
Operating
 income(i)         179,550     8.5%    240,068    10.8%    (60,518)    (25%)
 Finance costs      34,497     1.6%     30,497     1.4%      4,000      13%
 Depreciation
  and
  amortization     222,403    10.5%    152,837     6.9%     69,566      46%
 Foreign
  exchange
  (gain)/loss       (4,859)   (0.2%)       408     0.0%     (5,267) (1,291%)
 Goodwill
  impairment,
  net                4,123     0.2%          -       -       4,123       -
 Other income       (1,612)   (0.1%)    (1,837)   (0.1%)       225     (12%)
----------------------------------------------------------------------------
Income before
 income taxes
 and non-
 controlling
 interest          (75,002)   (3.5%)    58,163     2.6%   (133,165)   (229%)
Income tax
 (recovery) /
 expense           (28,303)   (1.3%)     4,824     0.2%    (33,127)   (687%)
Non-controlling
 interest             (845)   (0.0%)      (335)   (0.0%)      (510)   (152%)
----------------------------------------------------------------------------
Net (loss) /
 income            (45,854)   (2.2%)    53,674     2.4%    (99,528)   (185%)
----------------------------------------------------------------------------
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(i) See first page of this report

CANADIAN OPERATIONS


----------------------------------------------------------------------------
                                                                Year-Over-
Year ended December 31,                 % of               % of       Year
($ thousands, except
 revenue per job,
 unaudited)                     2013 Revenue       2012 Revenue     Change
----------------------------------------------------------------------------
Revenue                    1,021,426          1,139,474                (10%)
Expenses
 Materials and operating     794,459    77.8%   804,429    70.6%        (1%)
 General and
  administrative              26,167     2.6%    26,352     2.3%        (1%)
                          ----------         ----------
 Total expenses              820,626    80.3%   830,781    72.9%        (1%)
Operating income(i)          200,800    19.7%   308,693    27.1%       (35%)
Number of jobs                21,287             22,427                 (5%)
Revenue per job               47,553             50,486                 (6%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(i) See first page of this report

Canadian revenue for 2013 decreased by 10% compared to 2012. Revenue per job decreased by 6% due to a 22% decline in average annual pricing, which was partially offset by larger fracturing job sizes and an increase in fracturing revenue relative to total revenue. Job count decreased by 5% due largely to a drop in coiled tubing activity, which also negatively impacted associated service lines, including nitrogen and acidizing.

As a percentage of revenue, materials and operating expenses increased to 77.8% from 70.6% in the prior year. The pricing decline had a significant negative impact on operating margins and was partially offset by cost decreases including reductions in operating salaries, profit sharing expenses, product costs, and travel expenses. General and administrative expenses were relatively consistent on a year-over-year basis as reductions in profit sharing expense were offset by increased share based expenses.

UNITED STATES OPERATIONS


----------------------------------------------------------------------------
                                                                Year-Over-
Year ended December 31,                 % of              % of        Year
($ thousands, except
 revenue per job,
 unaudited)                     2013 Revenue      2012 Revenue      Change
----------------------------------------------------------------------------
Revenue                      764,962           797,783                  (4%)
Expenses
 Materials and operating     716,029    93.6%  803,677   100.7%        (11%)
 General and
  administrative              26,046     3.4%   19,808     2.5%         32%
                          ----------         ----------
 Total expenses              742,075    97.0%  823,485   103.2%        (10%)
Operating income /
 (loss)(i)                    22,887     3.0%  (25,702)   (3.2%)       189%
Number of jobs                 8,789             7,110                  24%
Revenue per job               83,220           112,471                 (26%)
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----------------------------------------------------------------------------

(i) See first page of this report

U.S. revenue for 2013 decreased by 4% as a rise in cementing and completion tools revenue were more than offset by pricing declines for the fracturing service line. The job count for 2013 increased substantially for cementing as we continued to grow this service line in the US. The job count also increased for the fracturing service line, although revenue per fracturing job decreased as we performed smaller jobs in 2013 compared to 2012. Revenue per job was also negatively impacted by lower pricing realized in 2013 compared to 2012.

Materials and operating expenses decreased to 93.6% of revenue in 2013 compared to 100.7% in 2012. Cost-cutting initiatives and a substantial reduction in the price of guar led to higher operating margins on a year-over-year basis. These improvements were partially offset by lower pricing in 2013 compared to 2012. General and administrative expenses increased by $6.2 million in 2013 versus 2012. Overhead costs associated with the new completions tools business combined with an increase in share based employee costs led to a significant portion of the increase.

INTERNATIONAL OPERATIONS


----------------------------------------------------------------------------
                                                                Year-Over-
Year ended December 31,                 % of               % of       Year
($ thousands, except
 revenue per job,
 unaudited)                     2013 Revenue       2012 Revenue     Change
----------------------------------------------------------------------------
Revenue                      329,084            276,143                 19%
Expenses
 Materials and operating     291,186    88.5%   238,967    86.5%        22%
 General and
  administrative              17,095     5.2%    14,486     5.2%        18%
                          ----------         ----------
 Total expenses              308,281    93.7%   253,453    91.8%        22%
Operating income /
 (loss)(i)                    20,803     6.3%    22,690     8.2%        (8%)
Number of jobs                 4,182              4,007                  4%
Revenue per job               75,861             65,027                 17%
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(i) See first page of this report

International revenue increased by 19% due to increases in both job count and revenue per job. The job count increased by 4% due to an increase in fracturing activity in Russia, and to a lesser extent, increased cementing activity in Australia. Revenue per job increased by 17% due to larger fracturing job sizes in Russia combined with an increase in fracturing revenue relative to total revenue.

As a percentage of revenue, materials and operating expenses increased by 200 basis points due primarily to increased product costs in Russia. General and administrative costs increased by $2.6 million due largely to costs associated with the international completion tools business, which did not exist in 2012, and increased overhead costs in Saudi Arabia and Colombia.

CORPORATE


----------------------------------------------------------------------------
                                                                Year-Over-
Year ended December 31,                 % of               % of       Year
($ thousands, except
 revenue per job,
 unaudited)                    2013  Revenue      2012  Revenue     Change
----------------------------------------------------------------------------
Expenses
 Materials and operating     24,547      1.2%   23,814      1.1%         3%
 General and
  administrative             40,393      1.9%   41,799      1.9%        (3%)
                          ----------         ----------
 Total expenses              64,940      3.1%   65,613      3.0%        (1%)
Operating income /
 (loss)(i)                  (64,940)           (65,613)                 (1%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(i) See first page of this report

Our 2013 Corporate expenses decreased slightly by $0.7 million compared to 2012. Lower professional fees and profit sharing expenses were partially offset by increased share-based expenses. Professional fees were lower due largely to acquisition fees relating to the purchase of i-TEC in 2012.

OTHER EXPENSES AND INCOME

Our 2013 finance costs increased by $4.0 million relative to 2012 due to increased average debt levels and an increase in average interest rates. Foreign exchange gains of $4.9 million have been recognized in 2013 compared to losses of $0.4 million in 2012. The 2013 gain is due to the net impact of fluctuations in the U.S. dollar and Russian ruble relative to the Canadian dollar. Other income was $1.6 million compared to $1.8 million in the same period in 2012. Other income is largely comprised of net gains on disposal of property and equipment and interest income earned on cash balances.

Excluding the one-time adjustments relating to fluid-ends in Canada and the amortization of intangible assets acquired in the i-TEC acquisition, depreciation and amortization expense for 2013 increased by $52.2 million compared to 2012. A large portion of the equipment built as part of our 2011 and 2012 capital budgets became active, and subject to deprecation, beginning in the middle of 2012. Therefore, our average depreciable asset base is significantly larger in 2013 compared to 2012.

LIQUIDITY AND CAPITAL RESOURCES

Operating Activities

Funds provided by operations was $30.4 million in the fourth quarter of 2013 compared to funds used in operations of $14.5 million in the fourth quarter of 2012 largely as a result of less taxes paid. Funds provided by operations for the year ended December 31, 2013 was $130.8 million compared to $126.8 million in 2012. A decrease in operating income and an increase in interest paid was offset by lower taxes paid, which resulted in only a small increase in funds provided by operations.

Investing Activities

Capital expenditures for the year ended December 31, 2013 were $107.8 million compared to $444.5 million in 2012. North American expansion initiatives in 2011 and 2012 led to large capital budgets for those years, which resulted in large capital expenditures in 2012. The North American pressure pumping market became over-supplied with equipment in 2012 and therefore, the capital budget for 2013 was substantially smaller than in previous years. The 2013 capital budget was directed primarily towards maintenance capital requirements.

There were no significant changes made to our 2013 capital budget during the fourth quarter of 2013. Capital expenditures for the fourth quarter were $21 million and approximately $80 million to $90 million of remaining capital expenditures are expected to be carried forward into 2014.

The initial 2014 capital budget is $32.7 million. Management is confident that this budget, combined with carryover capital expenditures from 2013, properly maintains Trican's global equipment fleet and infrastructure at a very high standard. Trican regularly reviews its capital equipment requirements and will continue to follow its policy of adjusting the capital budget on a quarterly basis to reflect changing operating conditions and capital equipment needs.

During the first quarter of 2013, Trican closed the previously announced acquisition of i-TEC in exchange for cash consideration of $29.7 million and 2.4 million Trican common shares valued at $30.3 million at January 11, 2013.

Financing Activities

Trican currently pays a semi-annual dividend of $0.15 per share. During 2013, $44.3 million in dividend payments were made and we expect approximately $44.0 million in dividend payments to be made in 2014.

During the year ended December 31, 2013, Trican repaid $42.3 million on its $500 million revolving credit facility. As at December 31, 2013, the Company had available unused committed bank credit facilities in the amount of $307.5 million plus cash and trade and other receivables of $63.9 million and $452.0 million respectively, for a total of $823.4 million available to fund the cash outflows relating to its financial obligations. The Company believes it has sufficient funding through the use of these sources to meet foreseeable financing requirements. On October 17, 2013, Trican extended its revolving credit facility by an additional year to 2017.

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") that expires on March 7, 2014. During the year ended December 31, 2013, there were no common shares purchased through the NCIB.

OUTLOOK

Canadian Operations

We currently expect the number of wells drilled in Canada in 2014 to be relatively consistent with wells drilled in 2013. We also believe that fracturing intensity per well will continue to increase in 2014 and lead to an increase in year-over-year fracturing demand in 2014. Fracturing intensity per well is expected to increase due to a rise in fracturing stages per well as we continue to see an increase in multi-stage horizontal wells drilled in Canada relative to vertical wells. In addition, we expect to see an increase in fracturing job size. Commodity prices are currently higher than originally forecast for the Canadian market. This, combined with a lower Canadian dollar relative to the US dollar, is expected to result in increased cash flow for our customers, which normally results in increased activity in the basin. We will continue to monitor changes to our customers' spending and budgets as the year progresses.

Drilling and completions activity is expected to increase in the Duvernay play during 2014 based on discussions with our customers. We also expect that there will be a marginal increase in LNG-related drilling next year, although we expect the majority of LNG-related drilling will occur beyond 2014. Duvernay and LNG-related activity both present significant growth prospects for the pressure pumping industry over the next several years; however, we expect a significant amount of pressure pumping demand to continue to be generated from activity in the Montney and Cardium plays during 2014.

Canadian pressure pumping activity levels began slowly in the first half of January 2014; however, demand has been strong since then and we expect our fracturing and cementing equipment to be fully utilized until spring break-up conditions occur. Assuming that we do not experience an early spring break-up, we expect first quarter operating margins to increase slightly relative to the fourth quarter of 2013 due to increased utilization; however, we expect first quarter margins to be down relative to the first quarter of 2013 due to lower pricing, increased costs and the low activity levels in early January.

First quarter pricing has been relatively consistent on a sequential basis and we expect it to remain stable throughout the quarter; however, the first quarter in Canada generally represents peak activity levels. Canadian pricing levels for the second half of 2014 will be dependant on the demand for pressure pumping equipment in the region as we head into the summer drilling season. We will continue to look for opportunities to increase pricing if activity levels remain high during the second half of the year.

U.S. Operations

The U.S. pressure pumping market remains very competitive and over-supplied with equipment in most operating regions; however, we are starting to see signs of improving fundamentals in the Permian and Marcellus plays. The horizontal rig count continues to increase in the Permian, which is leading to an increase in fracturing demand. In addition, improving natural gas prices have led to increased optimism for 2014 demand increases in the Marcellus play.

We expect our three fracturing crews in the Marcellus play to be well utilized in the first quarter of 2014, which is expected to contribute to sequential improvements in revenue and operating income for our U.S. operations. While cold weather in the region has affected Marcellus activity levels this winter, which will have a negative effect on first quarter results, we are encouraged by our customers' outlook on a full year basis. Given the improving fundamentals in this region, we currently expect the utilization of our existing Marcellus crews to remain strong throughout 2014. We will continue to monitor activity levels in this region and will consider deploying additional horsepower in the Marcellus region if market conditions continue to improve.

We are seeing an increase in activity in the Permian play and improved long-term demand as our customers move towards more horizontal drilling in this region. That being said, the level of competition in the Permian play remains high as there are many fracturing companies operating in the region. We will continue to focus on service quality and improved utilization for our three fracturing crews in this area, and we will look to increase pricing when utilization remains high for a period of time. We believe that increasing utilization in the Permian region will be a key factor in improving the financial results of our U.S. operations and will continue to be a strategic focus for Trican.

We expect fracturing demand to remain stable in the Eagle Ford, Bakken, and Oklahoma regions and we will continue to focus on improving utilization and decreasing costs, where possible, for our operations in these areas. Activity levels remain low in the dry gas plays, including the Haynesville and Barnett shale plays, and we do not to expect pressure pumping demand to increase in these regions during 2014. However, given the recent increase in natural gas prices, we will continue to monitor activity levels in these regions and react accordingly if industry conditions improve.

Increased sequential activity in the Marcellus and the Permian plays are expected to lead to increased revenue and operating income in the first quarter of 2014 compared to the fourth quarter of 2013. In addition, we expect our U.S. completion tools business to maintain a strong level of profitability and contribute to improvements in sequential U.S. operating results. However, we do not expect improvements in 2014 first quarter financial results compared to the first quarter of 2013 due largely to lower year-over-year pricing.

International

We expect to see a year-over-year increase in Russian and Kazakhstan oil and gas industry activity and a continued increase in horizontal multi-stage well completions during 2014. Management is currently estimating 2014 revenue to increase by 5% relative to 2013. The estimated revenue increase is based on consistent pressure pumping activity levels combined with a 7% increase in pressure pumping revenue per job, partially offset by a small decrease in completion tool revenue. The Russian and Kazakhstan markets remain competitive and we expect 2014 pricing improvements to only cover inflationary cost increases. As a result, we expect 2014 Russian and Kazakhstan operating margins to improve slightly in 2014 relative to 2013, due to the expected increase in activity. First quarter activity in Russia and Kazakhstan is expected to be down sequentially due to extreme cold weather that is typically experienced through the early part of the year.

We expect revenue growth and improved profitability in 2014 for the international completions tools business relative to 2013. We continue to see good customer acceptance of our tools in the North Sea market and will look to expand our international customer base during 2014.

We expect to see improved utilization and profitability for our Australian cement crews in 2014 relative to 2013; however, the improvements are expected to be modest as the Australian market continues to develop slowly. We will continue to focus on expanding market share through sales and marketing initiatives and by offering high service quality and technical solutions to the Australian customer base.

Algeria continues to be a challenging market and if we do not see improvements in utilization for our two coiled tubing crews operating in the region during 2014, we will consider redeploying those assets into a more profitable region.

We expect to begin active operations in both Colombia and Saudi Arabia in the first half of 2014. We are optimistic about the growth prospects in both these regions and will continue to focus on establishing our market presence in these regions throughout 2014.

NON-IFRS DISCLOSURE

Adjusted net income, 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 net income and funds provided by operations have been reconciled to net income 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.


----------------------------------------------------------------------------
                                      Three months ended Twelve months ended
----------------------------------------------------------------------------
                            Dec. 31,  Dec. 31, Sept. 30,  Dec. 31,  Dec. 31,
                                2013      2012      2013      2013      2012
----------------------------------------------------------------------------
Adjusted net (loss) /
 income                      ($9,873)  ($5,375)   $9,693  ($31,490)  $63,028
Deduct:
 Fluid end depreciation
  adjustment (net of $2.4
  million tax recovery)(i)     7,153         -         -         -         -
 Intangible amortization
  adjustment (net of $0.5
  million tax recovery)(ii)    1,595         -         -         -         -
 Goodwill impairment               -         -         -     4,123         -
 Non-cash share-based
  compensation expense         2,209     2,455     1,840     8,096     9,689
 Loss on deposit with
  vendor (net of $0.7
  million tax recovery)            -         -     2,145     2,145         -
----------------------------------------------------------------------------

(Loss) / profit for the
 period (IFRS financial
 measure)                   ($20,830)  ($7,830)   $5,708  ($45,854)  $53,339
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(i) Depreciation and amortization expense for the fourth quarter of 2013 includes a $14.3 million charge for accelerated depreciation on fluid ends in Canada. $9.5 million of this adjustment ($7.2 million net of tax) relates to periods prior to October 1, 2013 and has been excluded from adjusted net income for the fourth quarter.

(ii)Depreciation and amortization expense for the fourth quarter includes $3.1 million in amortization on the intangible assets relating to the purchase of i-TEC. The purchase price accounting was not finalized until the fourth quarter of 2013; therefore, a catch-up entry was required to ensure that adequate amortization had been recorded as of December 31, 2013. $2.1 million of this adjustment ($1.6 million net of tax) relates to periods prior to October 1, 2013 and has been excluded from adjusted net income for the fourth quarter.


----------------------------------------------------------------------------
                                   Three months ended   Twelve months ended
----------------------------------------------------------------------------
                       Dec. 31,   Dec. 31,  Sept. 30,   Dec. 31,   Dec. 31,
                           2013       2012       2013       2013       2012
----------------------------------------------------------------------------
Funds provided by /
 (used in) operations $  30,380  $ (14,525) $  71,087  $ 130,815  $ 126,757
Adjustments
 Depreciation and
  amortization          (70,085)   (41,564)   (54,646)  (222,403)  (152,837)
 Amortization of debt
  issuance costs           (216)      (208)      (216)      (864)      (813)
 Stock-based
  compensation           (2,209)    (2,455)    (1,840)    (8,096)    (9,689)
 Loss / (gain) on
  disposal of
  property and
  equipment                  15       (352)      (585)      (293)    (2,423)
 Net finance costs       (8,122)    (7,824)    (9,111)   (32,749)   (28,285)
 Unrealized foreign
  exchange (gain) /
  loss                       (1)     4,863     (2,984)     5,593         50
 Asset impairments,
  net                                    -     (2,870)    (6,993)         -
 Income tax recovery
  / (expense)            16,431      2,957      2,847     28,303     (4,824)
 Interest paid           12,956      8,373      6,182     34,794     24,278
 Income tax paid /
  (recovered)                21     42,697     (2,156)    26,039    100,312
----------------------------------------------------------------------------

Profit / (loss) (IFRS
 financial measure)   $ (20,830) $  (8,038) $   5,708  $ (45,854) $  53,339
----------------------------------------------------------------------------
----------------------------------------------------------------------------


----------------------------------------------------------------------------
                                   Three months ended   Twelve months ended
----------------------------------------------------------------------------
                       Dec. 31,   Dec. 31,  Sept. 30,   Dec. 31,   Dec. 31,
                           2013       2012       2013       2013       2012
----------------------------------------------------------------------------
Operating income      $  35,500  $  35,123  $  72,702  $ 179,550  $ 240,068
Add:
 Administrative
  expenses               26,064     23,083     28,730    114,836    108,289
Deduct:
 Depreciation expense   (70,085)   (41,564)   (54,646)  (222,403)  (152,837)

----------------------------------------------------------------------------

Gross profit / (loss)
 (IFRS financial
 measure)             $  (8,521) $  16,642  $  46,786  $  71,983  $ 195,520
----------------------------------------------------------------------------
----------------------------------------------------------------------------


CONSOLIDATED STATEMENT OF FINANCIAL POSITION


(Stated in thousands)
As at December 31,                                      2013           2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ASSETS
Current assets
  Cash and cash equivalents                    $      63,869  $     113,506
  Trade and other receivables                        459,210        437,038
  Current tax assets                                   5,186            647
  Inventory                                          232,898        211,794
  Prepaid expenses                                    34,407         33,002
----------------------------------------------------------------------------
                                                     795,570        795,987
Property and equipment                             1,374,212      1,458,562
Intangible assets                                     44,285         10,081
Deferred tax assets                                  122,745         76,302
Other assets                                          17,360         11,898
Goodwill                                              59,475         43,689
----------------------------------------------------------------------------
                                                   2,413,647  $   2,396,519
----------------------------------------------------------------------------
----------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
  Bank loans                                   $           -  $       9,119
  Trade and other payables                           301,920        228,788
  Contingent consideration                                 -          2,860
  Deferred consideration                                 650              -
  Current tax liabilities                                 14          7,853
  Current portion of loans and borrowings             79,770              -
----------------------------------------------------------------------------
                                                     382,354        248,620

Loans and borrowings                                 593,786        694,972
Deferred tax liabilities                              87,005         77,012

Shareholders' equity
  Share capital                                      559,723        527,860
  Contributed surplus                                 63,074         55,352
  Accumulated other comprehensive loss                (1,020)       (24,100)
  Retained earnings                                  725,172        815,700
----------------------------------------------------------------------------
Total equity attributable to equity holders of
 the Company                                       1,346,949      1,374,812
Non-controlling interest                               3,553          1,103
----------------------------------------------------------------------------
                                               $   2,413,647  $   2,396,519
----------------------------------------------------------------------------
----------------------------------------------------------------------------


CONSOLIDATED STATEMENT OF
 COMPREHENSIVE INCOME
(Stated in thousands,
 except per share                                       Twelve       Twelve
 amounts)               Three Months Three Months       Months       Months
                           Ended Dec    Ended Dec    Ended Dec    Ended Dec
                                 31,          31,          31,          31,
For the year ended
 December 31,                   2013         2012         2013         2012
----------------------------------------------------------------------------

Revenue                      552,144      485,865    2,115,472    2,213,400
Cost of sales                560,665      463,378    2,043,489    2,017,880
----------------------------------------------------------------------------
Gross profit                  (8,521)      22,487       71,983      195,520
Administrative expenses       26,066       28,928      114,836      108,289
Other expense                    900          (10)         136          375
----------------------------------------------------------------------------
Results from operating
 activities                  (35,487)      (6,431)     (42,989)      86,856
Finance income                  (470)        (550)      (1,748)      (2,212)
Finance costs                  8,592        8,374       34,497       30,497
Foreign exchange (gain)
 / loss                       (5,968)      (3,468)      (4,859)         408
Goodwill impairment, net           -            -        4,123            -
----------------------------------------------------------------------------
(Loss) / profit before
 income tax                  (37,641)     (10,787)     (75,002)      58,163
Income tax (recovery)
 /expense                    (16,431)      (2,957)     (28,303)       4,824
----------------------------------------------------------------------------
(Loss) / profit for the
 year                        (21,210)      (7,830)     (46,699)      53,339
----------------------------------------------------------------------------

Other comprehensive
 income
  Unrealized loss /
   (gain) on hedging
   instruments                   616          207          717         (898)
  Foreign currency
   translation gain /
   (loss)                     14,411       10,311       23,797       (2,193)
----------------------------------------------------------------------------
Total comprehensive
 (loss) / income for the
 year                         (7,415)       2,274      (23,619)      52,044
----------------------------------------------------------------------------

(Loss) / profit
 attributable to:
Owners of the Company        (20,830)      (7,741)     (45,854)      53,674
Non-controlling interest        (380)         (89)        (845)        (335)
----------------------------------------------------------------------------
(Loss) / Profit for the
 year                        (21,210)      (7,830)     (46,699)      53,339
----------------------------------------------------------------------------

Total comprehensive
 (loss) / income
 attributable to:
Owners of the Company         (6,570)       2,363      (22,774)      52,379
Non-controlling interest        (845)         (89)        (845)        (335)
----------------------------------------------------------------------------
Total comprehensive
 (loss) / income for the
 year                         (7,415)       2,274      (23,619)      52,044
----------------------------------------------------------------------------

Earnings per share
----------------------------------------------------------------------------
  Basic                        (0.14)       (0.05)       (0.31)        0.37
  Diluted                      (0.14)       (0.05)       (0.31)        0.37
----------------------------------------------------------------------------
Weighted average shares
 outstanding - basic         148,916      146,450      148,815      146,620
Weighted average shares
 outstanding - diluted       148,916      146,450      148,815      146,690
----------------------------------------------------------------------------


CONSOLIDATED STATEMENT OF
 CASH FLOWS
                                  Three       Three      Twelve      Twelve
                                 Months      Months      Months      Months
                              Ended Dec   Ended Dec   Ended Dec   Ended Dec
                                    31,         31,         31,         31,
(Stated in thousands;
 unaudited)                        2013        2012        2013        2012
----------------------------------------------------------------------------
Cash Provided By/ (Used In):
Operations
 Profit/(loss) for the
  period                     $  (21,210) $   (7,830) $  (46,699) $   53,339
 Charges to income not
  involving cash:
  Depreciation and
   amortization                  70,085      41,564     222,403     152,837
  Amortization of debt
   issuance costs                   216         208         864         813
  Stock-based compensation        2,209       2,455       8,096       9,689
  (Gain)Loss on disposal of
   property and equipment           (15)        352         293       2,423
  Net Finance Costs               8,122       7,824      32,749      28,285
  Unrealized foreign
   exchange (gain)/loss               1      (4,863)     (5,593)        (50)
  Asset impairments, net              -           -       6,993           -
  Income tax
   expense/(recovery)           (16,431)     (2,957)    (28,303)      4,824
----------------------------------------------------------------------------
                                 42,977      36,753     190,803     252,160
 Change in inventories            4,365       6,704     (15,874)    (39,471)
 Change in trade and other
  receivables                   (37,137)     96,141     (13,251)    167,427
 Change in prepayments            2,894      10,444         138      (1,463)
 Change in trade and other
  payables                        7,037     (70,701)     70,950     (67,688)
----------------------------------------------------------------------------
Cash generated from
 operating activities            20,136      79,341     232,766     310,965

 Interest paid                  (12,956)     (8,373)    (34,794)    (24,278)
 Income tax paid                    (21)    (42,697)    (26,039)   (100,312)
----------------------------------------------------------------------------
                                  7,159      28,271     171,933     186,375

Investing
 Interest received                  387         250       1,155       1,163
 Purchase of property and
  equipment                     (20,871)    (58,688)   (107,761)   (444,550)
 Proceeds from the sale of
  property and equipment          1,790       1,848       6,520       3,325
 Purchase of other assets        (2,400)          -      (7,000)          -
 Payments received on loan
  to an unrelated third
  party                               -        (250)          -         (24)
 Business acquisitions                -           -     (29,663)          -
----------------------------------------------------------------------------
                                (21,094)    (56,840)   (136,749)   (440,086)

Financing
 Net proceeds from issuance
  of share capital                   44           -       1,174       1,289
 Repurchase and cancellation
  of shares under NCIB                -           -           -     (10,011)
 (Repayment)/Issuance of
  loans and borrowings            2,582      85,946     (42,317)    279,331
 Dividend paid                        -           -     (44,304)    (29,300)
----------------------------------------------------------------------------
                                  2,626      86,946     (85,447)    241,309

Effect of exchange rate
 changes on cash                    819         795         626          51
----------------------------------------------------------------------------

Increase / (decrease) in
 cash and cash equivalents      (10,490)     58,173     (49,637)    (12,349)
Cash and cash equivalents,
 beginning of period             74,359      55,333     113,506     125,855
----------------------------------------------------------------------------
Cash and cash equivalents,
 end of period               $   63,869  $  113,506  $   63,869  $  113,506
----------------------------------------------------------------------------

SELECTED NOTES TO THE 2013 CONSOLIDATED FINANCIAL STATEMENTS

BUSINESS ACQUISITIONS

Effective January 11, 2013, Trican acquired all of the issued and outstanding shares and discharged the existing debt of Petro Tools Holding AS, the holding company for i-TEC and its subsidiaries (collectively "i-TEC"), for consideration of $60.6 million, which is made up of cash of $29.7 million, 2,381,381 Trican common shares, issued at $12.73 per share, and deferred consideration of $0.7 million. In conjunction with the acquisition, Trican has agreed to pay contingent consideration of up to U.S. $45 million subject to agreed upon financial targets for i-TEC for the year ended December 31, 2013. Trican has determined the acquisition date fair value of the contingent consideration to be nil. All of i-TEC's earnings have been included in Trican's condensed consolidated statement of comprehensive income since January 11, 2013.

The acquisition date fair values have been accounted as follows:



----------------------------------------------------------------------------
Fair value of acquired net assets:
  Net working capital (including cash)                            $   7,003
  Property and equipment                                                908
  Deferred tax liability                                            (11,735)
  Intangible assets                                                  41,894
  Goodwill1                                                          22,558
----------------------------------------------------------------------------
                                                                  $  60,628
----------------------------------------------------------------------------
Financed as follows:
  Cash                                                            $  29,663
  Shares issued out of treasury                                      30,315
  Deferred consideration                                                650
----------------------------------------------------------------------------
                                                                  $  60,628
----------------------------------------------------------------------------

TRADE AND OTHER RECEIVABLES


                                                December 31,   December 31,
(Stated in thousands)                                   2013           2012
----------------------------------------------------------------------------
Trade receivables                              $     453,729  $     434,568
Allowance for doubtful accounts                       (5,265)        (4,085)
Loans and other receivables                           20,109         17,222
----------------------------------------------------------------------------
Total                                          $     468,573  $     447,705
----------------------------------------------------------------------------
Non-current                                    $       9,363  $      10,667
Current                                        $     459,210  $     437,038
----------------------------------------------------------------------------

INVENTORY


                                                  December 31,  December 31,
(Stated in thousands)                                     2013          2012
Chemicals and consumables                        $     106,071 $      93,502
Coiled tubing                                           21,674        19,669
Parts                                                  105,153        98,623
----------------------------------------------------------------------------
                                                 $     232,898 $     211,794
----------------------------------------------------------------------------
----------------------------------------------------------------------------

PROPERTY AND EQUIPMENT


                            Land and              Fixtures and
(stated in thousands)      buildings    Equipment     fittings        Total
----------------------------------------------------------------------------
Cost
Balance at January 1,
 2012                    $    99,100  $ 1,518,796  $    38,023  $ 1,655,919
Additions                     14,781      424,127        3,535      442,443
Disposals                        (27)     (18,529)         (92)     (18,648)
Effect of movements in
 exchange rates                 (457)      (7,710)        (167)      (8,334)
----------------------------------------------------------------------------
Balance at December 31,
 2012                    $   113,397  $ 1,916,684  $    41,299  $ 2,071,380

Acquisitions through
 business combinations             -          908            -          908
Additions                     22,377       68,301        5,926       96,604
Disposals                     (2,492)     (46,136)      (1,959)     (50,587)
Effect of movements in
 exchange rates                3,441       50,086        1,169       54,696
----------------------------------------------------------------------------
Balance at December 31,
 2013                    $   136,723  $ 1,989,843  $    46,435  $ 2,173,001
----------------------------------------------------------------------------

Accumulated Depreciation
Balance at January 1,
 2012                    $    18,927  $   433,199  $    25,463  $   477,509
Depreciation                   4,011      141,031        3,398      148,440
Disposals                          -      (12,587)           -      (12,587)
Effect of movements in
 exchange rates                  (20)        (498)         (26)        (544)
----------------------------------------------------------------------------
Balance at December 31,
 2012                    $    22,918  $   561,065  $    28,835  $   612,818

Depreciation                   8,142      199,823        6,252      214,217
Disposals                       (828)     (41,162)        (914)     (42,904)
Effect of movements in
 exchange rates                  565       13,454          639       14,658
----------------------------------------------------------------------------
Balance at December 31,
 2013                    $    30,798  $   733,180  $    34,812  $   798,789
----------------------------------------------------------------------------

Carrying amounts
At December 31, 2012     $    90,479  $ 1,355,619  $    12,464  $ 1,458,562
At December 31, 2013     $   105,926  $ 1,256,663  $    11,623  $ 1,374,212
----------------------------------------------------------------------------

Included within equipment are assets held under finance lease with a gross value of $53.2 million (2012 - $53.7 million) and accumulated depreciation of $28.8 million (2012 - $18.4 million). The lease obligations are secured by the leased equipment. At December 31, 2013, Trican had $50.5 million in idle equipment and $150.4 million in assets under construction which have not been depreciated. At December 31, 2013, there were no impairment losses recognized (2012 - nil).

Included in other expense in the consolidated statement of comprehensive income is a $2.9 million loss relating to the write-down of unsecured deposits with an insolvent vendor. In addition, at December 31, 2013, Trican has $8.8 million in assets under construction with this vendor included in property and equipment in the statement of financial position. Trican believes that it currently has legal title to these assets and is confident in its ability to defend this position. At December 31, 2013 the Company is the physical custodian of these assets.

INTANGIBLE ASSETS AND GOODWILL


                                                                      Total
(stated in                 Patents and Non-compete               intangible
 thousands)       Goodwill   know-how   agreements CBM process       assets
----------------------------------------------------------------------------
Cost
Balance at
 January 1,
 2012           $   43,706  $        - $    23,455  $    8,503  $    31,958
Effect of
 movements in
 exchange rates        (17)          -        (462)         (3)        (465)
----------------------------------------------------------------------------
Balance at
 December 31,
 2012           $   43,689           - $    22,993  $    8,500  $    31,493
----------------------------------------------------------------------------

Balance at
 January 1,
 2013           $   43,689           - $    22,993  $    8,500  $    31,493
Acquisition
 through
 business
 combinations       22,558      41,894           -           -       41,894
Effect of
 movements in
 exchange rates          -           -       1,436           -        1,436
----------------------------------------------------------------------------
Balance at
 December 31,
 2013           $   66,247  $   41,894 $    24,429  $    8,500  $    74,823
----------------------------------------------------------------------------

Amortization
 and impairment
 losses
Balance at
 January 1,
 2012           $        -  $        - $    13,927  $    4,038  $    17,965
Amortization             -           -       2,992         849        3,841
Effect of
 movements in
 exchange rates          -           -        (394)          -         (394)
----------------------------------------------------------------------------
Balance at
 December 31,
 2012           $        -           - $    16,525  $    4,887  $    21,412
----------------------------------------------------------------------------

Balance at
 January 1,
 2013           $        -  $        - $    16,525  $    4,887  $    21,412
Impairment           6,312           -           -           -            -
Amortization             -       4,189       3,146         850        8,185
Effect of
 movements in
 exchange rates        460           -         941           -          941
----------------------------------------------------------------------------
Balance at
 December 31,
 2013           $    6,772  $    4,189 $    20,612  $    5,737  $    30,538
----------------------------------------------------------------------------

Carrying
 amounts
At December 31,
 2012           $   43,689           - $     6,468  $    3,613  $    10,081
At December 31,
 2013           $   59,475  $   37,705 $     3,817  $    2,763  $    44,285
----------------------------------------------------------------------------

----------------------------------------------------------------------------

TRADE AND OTHER PAYABLES


December 31,
(Stated in thousands)                             December 31,  December 31,

                                                          2013          2012
----------------------------------------------------------------------------
Trade payables                                         160,098       112,141
Accrued liabilities                                     53,888        40,803
Liabilities for cash-settled arrangements               19,443        14,800
Dividend payable                                        22,338        21,968
Finance lease obligations                               11,938        13,275
Other payables                                          34,215        25,801
----------------------------------------------------------------------------
Total trade and other payables                   $     301,920 $     228,788
----------------------------------------------------------------------------

LOANS AND BORROWINGS

Bank loans

The Company's Russian subsidiary has a US $20 million (Canadian equivalent of $21.3 million) demand revolving facility with a large international bank. This facility is unsecured, bears interest at LIBOR plus a premium, as determined by the bank, plus 2.75% and has been guaranteed by the Company. As at December 31, 2013, there was nothing drawn on this facility (December 31, 2012 - $9.1 million).


Long term debt                                  December 31,   December 31,
(Stated in thousands)                                   2013           2012
----------------------------------------------------------------------------
Notes payable                                  $     456,935  $     430,408
Finance lease obligations                             25,904         36,324
Revolving credit facilities                          212,625        255,693
Hedge receivable                                      (9,970)        (5,059)
----------------------------------------------------------------------------
Total                                          $     685,494  $     717,366
Current portion of finance lease obligations
 (1)                                                  11,938         13,275
Russian demand revolving credit facility                   -          9,119
Current portion of long-term debt                     79,770              -
----------------------------------------------------------------------------
Non-current                                    $     593,786  $     694,972
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1) Current portion of finance lease obligations is included in trade and other payables.

Trican has a $500.0 million four-year extendible revolving credit facility ("Revolving Credit Facility") with a syndicate of banks. The Revolving Credit 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. On October 17, 2013, the Revolving Credit Facility was extended by an additional year to 2017.

The Revolving Credit 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 December 31, 2013.

SHARE CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS

Share capital

Authorized:

The Company is authorized to issue an unlimited number of common shares, issuable in series. The shares have no par value. All issued shares are fully paid.


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, December 31, 2012                       146,450,177  $     527,860
Exercise of stock options                             86,488          1,174
Reclassification from contributed surplus on
 exercise of options                                       -            374
Shares issued for acquisition                      2,381,381         30,315
----------------------------------------------------------------------------
Balance, December 31, 2013                       148,918,046  $     559,723
----------------------------------------------------------------------------
----------------------------------------------------------------------------

EARNINGS PER SHARE


(Stated in thousands, except
 share and per share amounts)
                     Three months Three months  Twelve months  Twelve months
                     Ended Dec.31 Ended Dec.31   Ended Dec.31   Ended Dec.31
Basic Income Per
 Share                       2013         2012           2013           2012
----------------------------------------------------------------------------
Net (loss)/income
 available to
 common
 shareholders       $     (20,830)      (7,741) $     (45,854) $      53,674
Weighted average
 number of common
 shares               148,916,011  146,450,177    148,815,362    146,619,743
Basic (loss) /
 income per share   $       (0.14)       (0.05) $       (0.31) $        0.37
----------------------------------------------------------------------------

Diluted Income Per
 Share                                                   2013           2012
----------------------------------------------------------------------------
Net (loss)/income
 available to
 common
 shareholders       $     (20,830)      (7,741) $     (45,854) $      53,674
Weighted average
 number of common
 shares               148,916,011  146,450,177    148,815,362    146,619,743
Diluted effect of
 stock options                  -            -              -         70,515
----------------------------------------------------------------------------
Diluted weighted
 average number of
 common shares        148,916,011  146,450,177    148,815,362    146,690,258
Diluted
 (loss)/income per
 share              $       (0.14)       (0.05) $       (0.31) $        0.37
----------------------------------------------------------------------------

At December 31, 2013, all of the outstanding options have been excluded from the diluted weighted average number of common shares as the Company ended the year at a net loss.

INCOME TAXES


                    Three months Three months  Twelve months  Twelve months
(Stated in
 thousands)         Ended Dec.31 Ended Dec.31   Ended Dec.31   Ended Dec.31
                            2013         2012           2013           2012
----------------------------------------------------------------------------
Current tax
 expense/(recovery)
  Current year             7,779       21,366  $      16,836  $     104,997
  Adjustment for
   prior years                 -            -         (1,401)           546
  Recognition of
   previously
   unrecognized tax
   losses                      -            -         (1,675)             -
----------------------------------------------------------------------------
                           7,779       21,366  $      13,760  $     105,543
----------------------------------------------------------------------------
Deferred tax
 expense/(recovery)
  Deferred tax
   recovery
   recognized in the
   current year          (24,210)     (24,323) $     (42,282) $    (100,474)
  Adjustment for
   prior years                 -            -            219           (245)
----------------------------------------------------------------------------
                         (24,210)     (24,323) $     (42,063) $    (100,719)
----------------------------------------------------------------------------
Total tax
 (recovery)/expense      (16,431)      (2,957) $     (28,303) $       4,824
----------------------------------------------------------------------------

The income tax expense differs from that expected by applying the combined federal and provincial income tax rate of 25.26% (2012 - 25.17%) to income before income taxes for the following reasons:


(Stated in thousands)
For the year ended December 31,                           2013         2012
----------------------------------------------------------------------------
Expected combined federal and provincial income
 tax                                               $   (18,946) $    14,639
Statutory and other rate differences                   (15,862)     (18,489)
Non-deductible expenses                                  6,898        5,719
Stock-based compensation                                 2,045        2,439
Translation of foreign subsidiaries                        (85)          59
Adjustments related to prior years                      (1,182)         301
Recognition of previously unrecognized tax losses       (1,675)           -
Changes to deferred income tax rates                       517           19
Capital and other foreign tax                              (18)         175
Other                                                        5          (38)
----------------------------------------------------------------------------
                                                   $   (28,303) $     4,824
----------------------------------------------------------------------------

The change in the combined Federal and Provincial statutory tax rate in Canada from 2012 to 2013 is due to an increase in the British Columbia provincial tax rate from 10% to 11% effective April 1, 2013.

Deferred Tax Balances

The components of the deferred tax asset and liability are as follows:


(Stated in thousands)
For the year ended December 31,                            2013        2012
----------------------------------------------------------------------------
Deferred tax assets:
----------------------------------------------------------------------------
Goodwill                                             $   35,507  $   36,297
Non-capital loss carry forwards                         156,470      91,504
Property, equipment and other assets                    (73,077)    (53,942)
Other                                                     3,845       2,443
----------------------------------------------------------------------------
                                                     $  122,745  $   76,302
Deferred tax liabilities:
----------------------------------------------------------------------------
Non-capital loss carry forwards                      $        -  $    1,707
Property, equipment and other assets                    (38,902)    (38,088)
Partnership deferral                                    (41,031)    (42,362)
Other                                                    (7,072)      1,731
----------------------------------------------------------------------------
                                                     $  (87,005) $  (77,012)
----------------------------------------------------------------------------

Included in the above tax pools are $428.4 million (2012 - $262.6 million) of gross non-capital losses that can be carried forward to reduce taxable income in future years. These losses are predominantly in the U.S. and expire between 2029 and 2033. Deferred tax assets are recognized only to the extent it is considered probable that those assets will be recoverable. This involves an assessment of when those deferred tax assets are likely to reverse, and a judgment as to whether or not there will be sufficient taxable profits available to offset the tax assets when they do reverse. This requires assumptions regarding future profitability and is therefore inherently uncertain.

Deferred tax liabilities of $5.6 million (2012 - $5.0 million) have not been recognized on the unremitted earnings of the Company's foreign subsidiaries to the extent that the Company is able to control the timing of the reversal of the temporary differences, and it is probable that the temporary differences would not reverse in the foreseeable future.

OPERATING SEGMENTS

The Company operates in Canada and the U.S. along with a number of international regions, which include Russia, Kazakhstan, Algeria, Australia, Saudi Arabia, Colombia and Norway. 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, acidizing, reservoir management, industrial
    cleaning and pipeline, and completion systems and downhole tool
    services, which are performed on new and existing oil and gas wells.
--  U.S. operations provides cementing, fracturing, coiled tubing, nitrogen,
    acidizing and completion systems and downhole tool services, which are
    performed on new and existing oil and gas wells.
--  International operations provides cementing, fracturing, coiled tubing,
    acidizing, nitrogen, and completion systems and downhole tool 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. Transactions between the segments are recorded at cost and have been eliminated upon consolidation.


                                      Canadian United States  International
                                    Operations    Operations     Operations
Revenue                          $   1,021,426 $     764,962  $     329,084
Gross profit/(loss)                    137,768       (50,537)        11,605
Finance income                               -             -              -
Finance costs                                -             -              -
Impairment                               2,870             -          4,123
Tax expense/(recovery)                  11,961       (39,054)        (1,210)
Depreciation and amortization           89,716       103,096         27,284
Assets                                 963,234     1,070,487        332,041
Goodwill                                45,248             -         14,227
Property and equipment                 523,594       728,609        104,943
Capital expenditures                    32,020        53,532         21,528
----------------------------------------------------------------------------
Year ended December 31, 2012
Revenue                          $   1,139,474 $     797,783  $     276,143
Gross profit/(loss)                    286,271       (77,379)        11,363
Finance income                               -             -              -
Finance costs                                -             -              -
Tax expense/(recovery)                  46,884       (43,471)           883
Depreciation and amortization           53,810        71,683         26,422
Assets                                 910,888     1,109,657        323,134
Goodwill                                22,690             -         20,999
Property and equipment                 534,235       797,841        111,632
Capital expenditures                   137,477       258,363         41,666


                                     Corporate          Total
Revenue                          $           -  $   2,115,472
Gross profit/(loss)                    (26,853)        71,983
Finance income                          (1,748)        (1,748)
Finance costs                           34,497         34,497
Impairment                                   -          6,993
Tax expense/(recovery)                       -        (28,303)
Depreciation and amortization            2,307        222,403
Assets                                  47,885      2,413,647
Goodwill                                     -         59,475
Property and equipment                  17,066      1,374,212
Capital expenditures                       681        107,761
--------------------------------------------------------------
Year ended December 31, 2012
Revenue                          $           -  $   2,213,400
Gross profit/(loss)                    (24,735)       195,520
Finance income                          (2,212)        (2,212)
Finance costs                           30,497         30,497
Tax expense/(recovery)                     528          4,824
Depreciation and amortization              922        152,837
Assets                                  52,840      2,396,519
Goodwill                                     -         43,689
Property and equipment                  14,854      1,458,562
Capital expenditures                     7,044        444,550

FORWARD-LOOKING STATEMENTS

This document contains certain forward-looking information and financial outlook 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. Forward-looking information and financial outlook 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 information and financial outlook are identified by the use of terms and phrases such as "anticipate," "achieve", "achievable," "believe," "estimate," "expect," "intention", "plan", "planned", and other similar terms and phrases. This forward-looking information and financial outlook speak only as of the date of this document and we do not undertake to publicly update this forward-looking information and financial outlook except in accordance with applicable securities laws. This forward-looking information and financial outlook includes, among others:


--  The expectation that coil tubing operations will commence in Saudi
    Arabia in the first half of 2014;
--  The expectation that cementing operations will commence in Colombia in
    the first half of 2014;
--  The intention to grow our Australian cementing business in 2014;
--  The intention to grow our completion tools business in 2014;
--  The expectation that Trican's 2014 capital budget will be approximately
    $80 - $90 million;
--  The belief that Trican has sufficient funding to meet foreseeable
    borrowing requirements;
--  The expectation that the number of wells drilled in Canada in 2014 will
    be relatively consistent with 2013 levels;
--  The belief that fracturing intensity per well will continue to increase
    in 2014 and will lead to an increase in year-over-year fracturing demand
    in 2014 in Canada;
--  The expectation that fracturing intensity per well will increase due to
    a rise in fracturing stages per well and the expectation that the number
    of multi-stage horizontal wells drilled in Canada will increase relative
    to vertical wells;
--  The expectation that fracturing jobs will increase in size in Canada;
--  The expectation that cash flow from our Canadian customers will increase
    due to an expected lower Canadian dollar and higher than forecasted
    commodity prices;
--  The expectation that drilling and completions activity in Duvernay will
    increase in 2014;
--  The expectation that there will be marginal increase in LNG related
    drilling in 2014 in Canada;
--  The expectation that a significant amount of pressure pumping demand
    will continue to be generated from activity in Montney and Cardium in
    2014;
--  The expectation that our fracturing and cementing equipment in Canada
    will be fully utilized until spring break-up;
--  The expectation that first quarter operating margins in Canada will
    increase slightly relative to the fourth quarter in 2013 due to
    increased utilization;
--  The expectation that Canadian margins in the first quarter of 2014 will
    decrease to the levels in the first quarter of 2013 due to lower pricing
    and increased costs combined with a slow start in January of 2014;
--  The expectation that pricing in Canada will remain stable in the first
    quarter of 2014;
--  The intention to increase pricing levels in Canada if activity and
    demand remain strong during the second half of 2014;
--  The expectation that our three fracturing crews in the Marcellus will be
    well utilized in the first quarter of 2014 and contribute sequential
    improvements in U.S. revenue and operating income;
--  The expectation that the utilization of our existing crew in Marcellus
    will be strong in 2014;
--  The intention to monitor activity levels in the Marcellus play and
    deploy additional horsepower if market conditions continue to improve in
    that region;
--  The intention to continue focusing on service quality and improved
    utilization of our three fracturing crews in the Permian basin;
--  The belief that pricing in the Permian basin will increase when
    utilization remains high over a period of time;
--  The belief that increased utilization in the Permian will be a key
    factor in improving the financial results of our U.S. operations and
    will continue to be a strategic focus for Trican;
--  The expectation that fracturing demand will remain stable in the Eagle
    Ford, Bakken and Oklahoma regions;
--  The expectation that Trican will continue to improve utilization and
    decrease costs in the Eagle Ford, Bakken and Oklahoma regions;
--  The expectation that pressure pumping demand in the dry gas plays in
    U.S. will not increase in 2014;
--  The intention to continue monitoring the activity levels in the U.S. dry
    gas plays and react accordingly;
--  The expectation that increased sequential activity in the Marcellus play
    and the Permian play will lead to increased revenue and operating income
    in the first quarter in 2014 compared to the fourth quarter of 2013;
--  The expectation that our U.S. completion tools business will maintain
    strong levels of profitability and contribute to improvements in
    sequential U.S. operating results;
--  The expectation that there will be no improvements in the U.S. financial
    results during the first quarter of 2014 compared to the first quarter
    of 2013 due to lower year over year pricing;
--  The expectation that there will be a year over year increase in Russian
    and Kazakhstan oil and gas industry activity and a continued increase in
    horizontal multi-stage well completions during 2014;
--  The expectation that 2014 revenue for Russia and Kazakhstan will be 5%
    higher compared to 2013 and that the increase is based on consistent job
    count combined with a 7% increase in pressure pumping revenue per job,
    partially offset by a small decrease in pressure pumping revenue;
--  The expectation that 2014 pricing improvements will only cover
    inflationary cost increases in Russia and Kazakhstan;
--  The expectation that 2014 Russian and Kazakhstan operating margins will
    improve slightly in 2014;
--  The expectation that first-quarter activity in Russia and Kazakhstan
    will decrease compared with the fourth quarter in 2013 due to extreme
    cold weather;
--  The expectation of revenue growth and improved profitability in 2014 for
    the international completion tools business;
--  The intention to expand our international customer base in 2014;
--  The expectation to see improved utilization and profitability for our
    Australian cement crews in 2014;
--  The intention to expand market share in Australia through sales and
    marketing activities as well as offering high service quality and
    technical solutions;
--  The belief that, if there is no improvement in the utilization for our
    two coiled tubing crews in Algeria, Trican will consider redeploying
    those assets into more profitable regions;
--  The intention to continue establishing our market presence in Colombia
    and Saudi Arabia in 2014;
--  The intention to become a full service pressure pumping company in
    Colombia over time;
--  The expectation that the acquisition of i-TEC will provide growth
    opportunities and enhance our other pressure pumping service lines.

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 21, 2013. 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).

Contacts:
Trican Well Service Ltd.
Dale Dusterhoft
Chief Executive Officer
[email protected]

Trican Well Service Ltd.
Michael Baldwin
Senior Vice President, Finance & CFO
[email protected]

Trican Well Service Ltd.
Gary Summach
Director of Reporting and Investor Relations
[email protected]

Trican Well Service Ltd.
2900, 645 - 7th Avenue S.W.
Calgary, Alberta T2P 4G8
(403) 266-0202
(403) 237-7716 (FAX)
www.trican.ca

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