SYS-CON MEDIA Authors: Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel, Peter Silva

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Trican Reports Second Quarter Results for 2014

CALGARY, ALBERTA -- (Marketwired) -- 07/29/14 -- Trican Well Service Ltd. (TSX: TCW)

Financial Review


                                    ----------------------------------------
                                     Three months ended   Six months ended
                                     June 30,  June 30,  June 30,  June 30,
($ millions, except per
 share amounts; unaudited)               2014      2013      2014      2013
----------------------------------------------------------------------------
Revenue                                $534.6    $396.6  $1,177.8  $1,015.0
Operating income / (loss)
 (i)                                      1.3     (14.8)     43.7      71.4
Profit / (loss)                         (43.1)    (56.4)    (51.6)    (31.2)
Earnings / (loss) per
 share                       (basic)   ($0.29)   ($0.38)   ($0.35)   ($0.21)
                           (diluted)   ($0.29)   ($0.38)   ($0.35)   ($0.21)
Adjusted profit / (loss)
 (i)                                    (41.2)    (50.4)   ($47.5)    (23.0)
Adjusted profit / (loss)
 per share(i)                (basic)   ($0.28)   ($0.34)   ($0.32)   ($0.15)
                           (diluted)   ($0.28)   ($0.34)   ($0.32)   ($0.15)
Funds provided by / (used
 in) operations(i)                      (11.5)    (29.1)     26.5      28.9
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Notes:

(i) Trican makes reference to operating income/(loss), adjusted profit/(loss) and funds provided by/(used in) operations. These are measures that are not recognized under International Financial Reporting Standards (IFRS). Management believes that, in addition to net income/(loss), operating income/(loss), adjusted profit/(loss) and funds provided by/(used in) operations are useful supplemental measures. Operating income/(loss) provides investors with an indication of net income/(loss) before depreciation and amortization, foreign exchange gains and losses, other income, finance costs and income tax expense. Adjusted profit/(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/(loss), adjusted profit/(loss), and funds provided by/(used in) operations should not be construed as an alternative to net income/(loss) and cash provided/(used in) operations determined in accordance with IFRS as an indicator of Trican's performance. Trican's method of calculating operating income/(loss), adjusted profit/(loss) and funds provided by/(used in) operations may differ from that of other companies and accordingly may not be comparable to measures used by other companies.

SECOND QUARTER HIGHLIGHTS

Consolidated revenue for the second quarter of 2014 was $534.6 million, an increase of 35% compared to the second quarter of 2013. The adjusted consolidated net loss was $41.2 million compared to $50.4 million, and adjusted diluted loss per share was $0.28 compared to $0.34 for the same period in 2013. Funds used in operations were $11.5 million compared to $29.1 million in the second quarter of 2013.

Our Canadian operations generated quarterly revenue of $171.9 million and an operating loss of $8.0 million during the second quarter of 2014. Canadian revenue increased year-over-year by 48% and operating margins improved by 640 basis points as demand for services during the second quarter increased substantially compared to the second quarter of 2013. The second quarter in Canada is typically impacted by spring break-up conditions; however, an improving macro-economic environment for the Canadian pressure pumping market, combined with an extended winter drilling season in April, contributed to the year-over-year increases. Although Canadian operating margins benefitted from higher activity during the second quarter, increased costs combined with weak pricing continued to negatively impact operating income. To improve profitability, a 7% price book increase was released in the second quarter and is expected to be phased-in over the second half of 2014. Given the strong demand expected in Canada during the second half of 2014, we anticipate that pricing improvement initiatives will be successful and expect second half margins to benefit from sequential pricing increases.

Our U.S. operations generated second quarter revenue of $267.6 million, an increase of 33% compared to the second quarter of 2013. Strong demand and operational performance in the Marcellus and Permian regions contributed to the increase in revenue and led to sequential improvements in operating margins. Pricing increases were obtained in both regions late in the second quarter that are expected to benefit U.S. operations in the second half of 2014. Demand for our services continued to be strong in the Bakken region during the second quarter due to strong operational performance. A second crew will be deployed in the Bakken region during the third quarter of 2014 in response to the strong demand in the region. Gains in the Marcellus, Permian and Bakken regions were partially offset by losses relating to the closure of our operating base in Woodward, Oklahoma. The Woodward fracturing crew was re-located to the Permian region during the second quarter and we are currently working to place this crew into an acceptable contract later in 2014. Operations in the Barnett, Oklahoma and Haynesville regions performed below expectations during the second quarter and also had a negative impact on second quarter operating margins. We have recently obtained contracts with customers in the Barnett and Oklahoma regions that are expected to improve utilization and profitability in these regions during the third quarter.

Second quarter revenue for our international operations was $95.1 million, an increase of 20% compared to the second quarter of 2014. The substantial increase in revenue led to a quarterly operating margin of 16.4% for our international operations. Our Russian operations comprise the majority of our international results, and record quarterly revenue was achieved in Russia during the second quarter. A rise in horizontal drilling and completions activity continued to benefit pressure pumping demand in Russia. In addition, our Russian customers were able to catch-up up on work programs that were behind schedule due to cold weather in the first quarter of 2014. Our international operations also benefitted from strong results from our North Sea completions tools business as year-over-year revenue for this division increased by almost 200% during the second quarter. Positive results in Russia and the North Sea were partially offset by operating losses in Algeria and start-up costs in Saudi and Colombia. Active operations commenced in both Saudi Arabia and Colombia during the second quarter, which is expected to improve the financial results for these regions during the second half of 2014.

On July 17, 2014, we increased our Revolving Credit Facility (the "Facility") from $500.0 million to $575.0 million. Commitments for the increase came from both existing and new banks. All other terms and conditions of the Facility remained unchanged, including its current maturity date of October 17, 2017.

In addition, subsequent to the end of the second quarter of 2014, we obtained a commitment from an institutional investor to issue $20 million of senior unsecured notes. The notes will have a ten year maturity, a coupon of 5.75% and will rank equally with all other senior indebtedness. Management expects this note issuance to close and fund during the third quarter of 2014.

MANAGEMENT'S DISCUSSION AND ANALYSIS

OVERVIEW

Headquartered in Calgary, Alberta, Trican has operations in Canada, the U.S., Russia, Kazakhstan, Algeria, Australia, Saudi Arabia, Colombia and Norway. Trican provides a comprehensive array of specialized products, equipment and services that are used during the exploration and development of oil and gas reserves.


COMPARATIVE QUARTERLY INCOME STATEMENTS ($ thousands, unaudited)
----------------------------------------------------------------------------
                                                          Quarter-
                                                             Over-
Three months ended              % of               % of    Quarter       %
 June 30,               2014 Revenue       2013 Revenue     Change  Change
----------------------------------------------------------------------------

Revenue              534,599   100.0%   396,607   100.0%   137,992      35%
Expenses
  Materials and
   operating         498,052    93.2%   384,069    96.8%   113,983      30%
  General and
   administrative     35,264     6.6%    27,352     6.9%     7,912      29%
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Operating
 income/(loss)(i)      1,283     0.2%   (14,814)   (3.7%)   16,097    (109%)
  Finance costs        9,536     1.8%     8,554     2.2%       982      11%
  Depreciation and
   amortization       49,136     9.2%    50,613    12.8%    (1,477)     (3%)
  Goodwill
   impairment              -     0.0%     4,123     1.0%    (4,123)   (100%)
  Foreign exchange
   (gain)/loss         4,992     0.9%    (1,510)   (0.4%)    6,502    (431%)
  Other income        (1,359)   (0.3%)   (1,454)   (0.4%)       95      (7%)
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Loss before income
 taxes               (61,022)  (11.4%)  (75,140)  (18.9%)   14,118     (19%)
Income tax recovery  (17,470)   (3.3%)  (18,751)   (4.7%)    1,281       7%
Non-controlling
 interest               (448)   (0.1%)     (125)    0.0%      (323)    258%
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Net loss             (43,104)    8.1%   (56,264)  (14.2%)   13,160      23%
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(i) see first page of this report

CANADIAN OPERATIONS


----------------------------------------------------------------------------
($ thousands, except revenue per job, unaudited)
                      June 30,    % of  June 30,    % of  March 31,    % of
Three months ended,       2014 Revenue      2013 Revenue       2014 Revenue
----------------------------------------------------------------------------
Revenue                171,937           116,061            353,342
Expenses
  Materials and
   operating           171,763    99.9%  121,446   104.6%   283,280    80.2%
  General and
   administrative        8,213     4.8%    7,443     6.4%     7,543     2.1%
                      ---------         ---------         ---------
  Total expenses       179,976   104.7%  128,889   111.1%   290,823    82.3%
Operating
 income/(loss)(i)       (8,039)   (4.7%) (12,828)  (11.1%)   62,519    17.7%
Number of jobs           3,628             3,096              6,396
Revenue per job         47,568            37,046             55,200
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(i) see first page of this report

Sales Mix


----------------------------------------------------------------------------
Three months ended, (unaudited)           June 30,    June 30,    March 31,
                                            2014        2013        2014
----------------------------------------------------------------------------
% of Total Revenue
Fracturing                                   62%         61%         67%
Cementing                                    19%         14%         19%
Nitrogen                                     7%          5%          6%
Industrial services                          4%          9%          1%
Coiled Tubing                                4%          4%          3%
Acidizing                                    2%          3%          2%
Other                                        2%          4%          2%
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Total                                       100%        100%        100%
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Operations Review

Canadian activity levels in the second quarter of 2014 were up significantly compared to the second quarter of 2013 as demand for Canadian pressure pumping services benefitted from increased customer spending. Customer cash flows have increased throughout the first half of 2014 as Canadian commodity prices and a stronger U.S. dollar have improved the economics of the key Canadian oil and gas plays. The improved cash flows contributed to the year-over-year increase in second quarter activity levels and are also expected to result in higher pressure pumping demand in the second half of 2014. Demand for fracturing services also benefitted from an increase in fracturing intensity per well during the second quarter. We continue to see an increase in sand volumes and fracturing stages per well, which is leading to an increase in fracturing demand.

Cold weather throughout March and early April led to an extended winter drilling season and activity levels in early April were stronger compared to previous years. For the remainder of the second quarter and consistent with expectations, activity was impacted by spring break-up conditions when frozen ground begins to thaw and road bans and weight restrictions limit oil and gas activity levels. The favorable weather conditions in April combined with increased customer spending contributed to a 34% year-over-year increase in the second quarter average Canadian rig count.

Although Canadian operating margins benefitted from higher activity during the second quarter, increased costs combined with weak pricing continued to negatively impact operating income. Our Canadian cost structure increased compared to the second quarter of 2013 due to product and product transportation cost increases, wage inflation, higher diesel prices, and a weaker Canadian dollar. In addition, no significant fixed cost reductions were contemplated in the second quarter in anticipation of the strong second half activity in Canada.

Given the increased cost structure, one of the primary areas of focus in Canada continues to be on raising prices. A new Trican price book was released in mid-May that reflected a 7% price increase. The new price book will be gradually phased-in to our Canadian customer base with full implementation expected by the end of 2014. The new price book had a minimal impact on our second quarter Canadian results as most of the implementation is expected in the second half of 2014.

Our completions tools business in Canada was also negatively impacted by spring break-up during the second quarter, which led to sequential declines in revenue and operating income for this segment of our Canadian operations. However, this business continues to grow and revenue increased by 40% on a year-over-year basis in the second quarter of 2014. We expect continued growth of the Canadian completions tools business in the second half of 2014 with a continued focus on improving and increasing our tool manufacturing capabilities and leveraging off of our Canadian pressure pumping customer base.

Q2 2014 versus Q2 2013

Canadian revenue for the second quarter of 2014 increased by 48% compared to the second quarter of 2013. The job count increased by 17% due to increased customer spending combined with favorable weather conditions early in the second quarter. Revenue per job increased by 28% as larger fracturing job sizes and a higher proportion of fracturing revenue were partially offset by lower pricing.

Materials and operating expenses decreased to 99.9% of revenue compared to 104.6% for the same period in 2013. Increased activity led to improved operational leverage on our fixed cost structure in Canada, which was partially offset by increased costs and lower pricing compared to the second quarter of 2013. General and administrative expenses increased by $0.8 million due largely to higher share-based employee expenses.

Q2 2014 versus Q1 2014

Canadian revenue for the second quarter of 2014 decreased by 51% compared to the first quarter of 2014. The job count decreased by 43%, which compared to the 61% sequential drop in the Canadian rig count during the quarter caused by spring break-up conditions. Revenue per job decreased by 14% largely due to the decrease in fracturing revenue relative to total revenue.

As a percentage of revenue, materials and operating expenses increased to 99.9% compared to 80.2% in the first quarter of 2014. Lower activity levels led to reduced operating leverage on our cost structure, which contributed to most of the operating margin decrease. General and administrative costs increased by $0.7 million due mainly to higher share-based employee expenses.

UNITED STATES OPERATIONS


----------------------------------------------------------------------------
($ thousands, except revenue per job, unaudited)
                                                             March
                       June 30,    % of  June 30,    % of      31,    % of
Three months ended,        2014 Revenue      2013 Revenue     2014 Revenue
----------------------------------------------------------------------------
Revenue                 267,564           201,538          211,040
Expenses
 Materials and
  operating             246,540    92.1%  186,795    92.7% 205,207    97.2%
 General and
  administrative          9,071     3.4%    6,246     3.1%   6,868     3.3%
                      ---------         ---------         ---------
 Total expenses         255,611    95.5%  193,041    95.8% 212,075   100.5%
Operating income
 (loss)(i)               11,953     4.5%    8,497     4.2%  (1,035)   (0.5%)
Number of jobs            3,002             2,208            3,218
Revenue per job          86,387            92,096           61,776
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(i) see first page of this report

Sales Mix


----------------------------------------------------------------------------
Three months ended, (unaudited)           June 30,    June 30,    March 31,
                                            2014        2013        2014
----------------------------------------------------------------------------
% of Total Revenue
Fracturing                                   92%         90%         90%
Cementing                                    6%          7%          6%
Coil Tubing                                  2%          3%          4%
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Total                                       100%        100%        100%
----------------------------------------------------------------------------
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Operations Review

Second quarter results for our U.S. operations benefitted from sequential revenue and operating margin increases for our Marcellus and Permian operations. The first quarter of 2014 was negatively impacted by cold weather in both of these regions, which contributed to sequential utilization improvement. Revenue generated by our Marcellus operations during the second quarter also benefitted from the addition of a fourth fracturing crew in late May. The utilization of this crew was strong upon deployment as demand remained robust in this region. Revenue generated by our Permian operations also benefitted from improved operational performance, which led to utilization increases for all crews in this region.

Improvements in the Marcellus and Permian regions were partially offset by costs incurred in closing our operating base in Woodward, Oklahoma. One fracturing crew had been operating out of Woodward and was transferred to the Permian basin during the second quarter. We are currently working to place this crew into an acceptable contract later in 2014.

Second quarter financial results were also negatively impacted by weak utilization for our fracturing crews operating in the Barnett and Oklahoma regions, and weak pricing and operating margins for our Haynesville fracturing crew. We have recently obtained contracts with customers in the Barnett and Oklahoma regions that are expected to improve utilization and profitability in these regions in the third quarter.

Stable regional demand combined with strong operational performance, led to sequential improvements in revenue and operating margins for our Bakken operations. We will be deploying a second crew into this region during the third quarter of 2014. Activity remained stable for our two fracturing crews operating in the Eagle Ford basin.

U.S. pricing levels are trending up in high activity areas such as the Permian and Marcellus plays. Pricing improvements were obtained in both regions late in the second quarter and are expected to benefit third quarter financial results. Product and product transportation cost increases were noted during the second quarter, but these were largely passed on to customers across all regions. Cost flow-through aside, pricing remains competitive in all other operating regions and remained relatively flat sequentially during the second quarter of 2014.

Revenue and operating income decreased sequentially for the U.S. Completion Tools division as one of our major customers reduced activity levels during the second quarter. Despite the lower financial results, we were able to expand our customer base for this division during the second quarter, which is expected to have a favorable impact on operating margins going forward. We also focused on improving manufacturing and supply-chain capabilities during the second quarter that will allow us to respond to increasing U.S. demand for our completion tools technology. Overall, we are pleased with the customer acceptance of this technology in the U.S. and expect financial results to improve for this division over the second half of 2014.

Q2 2014 versus Q2 2013

U.S. revenue in the second quarter of 2014 was up 33% compared to the second quarter of 2013. Revenue per job decreased by 6% due to pricing reductions and a change in fracturing job mix, which was partially offset by a stronger U.S. dollar relative to the Canadian dollar. The job count increased by 36% due largely to increased fracturing activity in the Marcellus, Permian and Bakken regions.

As a percentage of revenue, materials and operating expenses decreased to 92.1% from 92.7%. Increased operational leverage due to higher revenue was largely offset by lower average pricing, costs relating to the closure of the Woodward base, and higher product transportation costs. General and administrative costs increased by $2.8 million due largely to increased share-based compensation, office and insurance costs.

Q2 2014 versus Q1 2014

On a sequential basis, U.S. revenue increased by 27%. Revenue per job increased by 40% due to an increase in fracturing job size combined with a change in customer mix. Fewer jobs per crew were completed due to the substantial increase in fracturing job sizes. As a result, the job count decreased by 7% despite the increased activity levels.

Materials and operating expenses decreased to 92.1% from 97.2% due to increased operational leverage on our fixed cost structure from higher activity. This was partially offset by costs relating to the closure of the Woodward base and higher product transportation expenses. General and administrative expenses increased by $2.2 million due mainly to increased share-based compensation costs.

INTERNATIONAL OPERATIONS


----------------------------------------------------------------------------
($ thousands, except revenue per job, unaudited)

                       June 30,    % of  June 30,    % of March 31,    % of
Three months ended,        2014 Revenue      2013 Revenue      2014 Revenue
----------------------------------------------------------------------------
Revenue                  95,099            79,007            78,835
Expenses
  Materials and
   operating             74,066    77.9%   70,723    89.5%   73,299    93.0%
  General and
   administrative         5,469     5.8%    4,637     5.9%    5,256     6.7%
                      ---------         ---------         ---------
  Total expenses         79,535    83.6%   75,360    95.4%   78,555    99.7%
Operating (loss)
 income(i)               15,564    16.4%    3,647     4.6%      280     0.3%
Number of jobs            1,225               962               966
Revenue per job          75,917            76,235            73,520
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(i) see first page of this report

Sales Mix


----------------------------------------------------------------------------
Three months ended, (unaudited)           June 30,    June 30,    March 31,
                                            2014        2013        2014
----------------------------------------------------------------------------
% of Total Revenue
Fracturing                                   79%         83%         85%
Coiled Tubing                                9%          8%          6%
Cementing                                    6%          5%          5%
Nitrogen                                     4%          2%          2%
Other                                        2%          2%          2%
----------------------------------------------------------------------------
Total                                       100%        100%        100%
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Operations Review

Our international operations include the financial results for operations in Russia, Kazakhstan, Algeria, Australia, Saudi Arabia, Colombia and Norway.

Our Russian operations comprise the majority of our international results and activity levels in Russia were strong during the second quarter of 2014. Increased horizontal drilling and completions activity in Russia contributed to strong utilization for our pressure pumping fleet during the quarter. In addition, our Russian customer base was able to catch-up on programs that were behind schedule due to cold weather throughout most of the first quarter.

An additional fracturing fleet was deployed in Russia during the second quarter using existing spare capacity in the region. The additional crew combined with strong demand led to record quarterly revenue during the second quarter for our Russian operations.

We are continuing to monitor the conflict in the Ukraine and the impact that existing and potential economic sanctions may have on our Russian operations. Currently, the impact on our Russian operations has been minimal and we do not anticipate any disruptions to our Russian business throughout the remainder of 2014 based upon the sanctions that have been imposed to date. However, we will continue to monitor this situation closely as it does raise additional business risks in the region. The potential financial impact, if any, to Trican from existing and additional economic sanctions in the future is unknown at this time.

Second quarter financial results were strong in Kazakhstan for our two fracturing crews operating in the region and remained relatively consistent with the first quarter of 2014. Our Algerian operations incurred an operating loss during the second quarter due to continued weak utilization in the region.

Revenue for our Australian business increased sequentially by 15% during the second quarter. We continued to focus on expanding our customer base and increasing work volumes with existing customers during the quarter.

We began active operations in both Colombia and Saudi Arabia during the second quarter with positive operational results. We are currently offering cementing services in Colombia and coiled tubing and industrial services in Saudi Arabia. Both regions incurred operating losses in the second quarter; however, both Colombia and Saudi Arabia are expected to generate positive operating cash-flows in the second half of 2014 as utilization increases.

Second quarter financial results were strong for the Norwegian Completion Tools division for the second consecutive quarter. Customer acceptance of the technology, combined with strong operational execution, led to a year-over-year revenue increase of almost 200% for this international division.

Q2 2014 versus Q2 2013

Second quarter revenue in 2014 for our international operations increased by 20% compared to the second quarter of 2013. The job count increased by 27% due largely to higher activity in Russia, and to a lesser extent, higher activity in Saudi, Colombia and Australia. Revenue per job decreased by less than 1% as a decrease in fracturing revenue relative to total revenue was offset by an increase in job size. The increase in horizontal completions and multi-stage fracturing for our Russian operations led to an increase in job size for all pressure pumping service lines in the region.

As a percentage of revenue, materials and operating expenses decreased to 77.9% from 89.5% compared to the second quarter of 2013. International operating margins benefitted from increased activity in Russia and higher margins in Norway, offset partially by operating losses in Algeria. General and administrative costs increased by $0.8 million due largely to an increase in share-based employee costs in Russia.

Q2 2014 versus Q1 2014

International revenue increased by 21%, sequentially, due largely to job count increases in Russia and, to a lesser extent, increased activity in Saudi Arabia and Colombia. The revenue per job increased by 3% due to larger job sizes in Russia, which was offset by less fracturing revenue relative to total revenue.

Materials and operating expenses decreased to 77.9% compared to 93.0% in the first quarter of 2013 due largely to increased operational leverage on our fixed cost structure in Russia. General and administrative costs were up $0.2 million due to increased share-based expenses.

CORPORATE


----------------------------------------------------------------------------
($ thousands,
 unaudited)
                                                             March
                      June 30,     % of June 30,     % of      31,     % of
Three months ended,       2014  Revenue     2013  Revenue     2014  Revenue
----------------------------------------------------------------------------
Expenses
  Materials and
   operating             5,683      1.1%   5,413      1.4%   6,491      1.0%
  General and
   administrative       12,511      2.3%   9,026      2.3%  12,869      2.0%
                      ---------         ---------         ---------
  Total expenses        18,194      3.4%  14,439      3.6%  19,360      3.0%
Operating loss(i)      (18,194)          (14,439)          (19,360)
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(i) see first page of this report

Q2 2014 versus Q2 2013

Corporate expenses for the second quarter of 2014 increased by $3.8 million compared to the second quarter of 2013 due largely to an increase in the accrual for share-based employee expenses. Trican's share price increased by approximately 23% during the second quarter of 2014 compared to a decrease of approximately 6% during the second quarter of 2013.

Q2 2014 versus Q1 2014

Sequentially, corporate expenses decreased by $1.2 million as an increase in share-based employee expenses was more than offset by lower profit sharing expenses due to the decrease in second quarter consolidated operating income.

OTHER EXPENSES AND INCOME

Finance costs for the second quarter of 2014 increased by $1.0 million compared to the same period in 2013 due to higher average debt balances. Depreciation and amortization decreased slightly by $1.5 million compared to the same period last year as capital additions have been minimal for the last twelve months.

Foreign exchange losses of $5.0 million have been recorded in the second quarter of 2014, compared to gains of $1.5 million for the same period in 2013. This change is largely due to the net impact of fluctuations in the U.S. dollar and the Russian ruble relative to the Canadian dollar. Other income for the second quarter of 2014 was relatively consistent with the second quarter of 2013. Other income is mainly comprised of interest income earned on cash balances and gains on asset sales.



COMPARATIVE YEAR-TO-DATE INCOME STATEMENTS ($ thousands, unaudited)
----------------------------------------------------------------------------
                                                          Quarter-
                                                             Over-
Six months ended                 % of               % of   Quarter       %
 June 30,               2014  Revenue       2013 Revenue    Change  Change
----------------------------------------------------------------------------

Revenue            1,177,816      100% 1,014,983     100%  162,833      16%
Expenses
  Materials and
   operating       1,066,329     90.5%   886,094    87.3%  180,235      20%
  General and
   administrative     67,800      5.8%    57,539     5.7%   10,261      18%
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Operating income(i)   43,687      3.7%    71,350     7.0%  (27,663)    (39%)
  Finance costs       19,763      1.7%    16,535     1.6%    3,228      20%
  Depreciation and
   amortization      101,887      8.7%    97,672     9.6%    4,215       4%
  Goodwill
   impairment, net         -      0.0%     4,123     0.4%   (4,123)   (100%)
  Foreign exchange
   (gain)/loss         2,700      0.2%    (3,236)   (0.3%)   5,922    (183%)
  Other income        (3,963)    (0.3%)   (3,524)   (0.3%)    (439)     12%
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Income/(loss)
 before income
 taxes               (76,700)    (6.5%)  (40,220)   (4.0%) (36,480)     91%
Income tax
 expense/(recovery)  (24,038)    (2.0%)   (9,024)   (0.9%) (15,014)    166%
Non-controlling
 interest             (1,077)    (0.1%)     (296)   (0.0%)    (781)   (264%)
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Net Income/(loss)    (51,585)    (4.6%)  (30,900)   (3.1%) (20,685)     67%
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(i) see first page of this report

CANADIAN OPERATIONS


----------------------------------------------------------------------------
($ thousands, except revenue
 per job, unaudited)
                                                                   Period-
                                                                     Over-
                                June 30,    % of  June 30,    % of  Period
Six months ended,                   2014 Revenue      2013 Revenue  Change
----------------------------------------------------------------------------
Revenue                          525,279           454,774              16%
Expenses
  Materials and operating        455,043    86.6%  362,919    79.8%     25%
  General and administrative      15,756     3.0%   14,312     3.1%     10%
                               ---------         ---------         ---------
  Total expenses                 470,798    89.6%  377,231    82.9%     25%
Operating income(i)               54,481    10.4%   77,543    17.1%    (30%)
Number of jobs                    10,024            10,051              (0%)
Revenue per job                   52,438            44,819              17%
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(i) see first page of this report

Canadian revenue for the six months ended June 30, 2014, was 16% higher than the same period in 2013. A significant portion of this increase arose in the second quarter of 2014 when fracturing and cementing activity levels were up substantially compared to the second quarter of 2013. Increased second quarter activity was partially offset by lower year-over-year pricing. Revenue has also benefitted from larger fracturing job sizes as we continue to see a trend in Canada towards increased sand volumes and more fracturing stages per well.

As a percentage of revenue, materials and operating expenses increased to 86.8% from 79.8% compared to the same period in 2013. Increased activity levels, which led to improved operating leverage on our cost structure, was more than offset by lower pricing and increased costs. Higher product costs, wage inflation, increased diesel costs and a weaker Canadian dollar have all contributed to the higher cost structure. General and administrative expenses increased by $1.4 million due largely to increased share-based costs.

UNITED STATES OPERATIONS


----------------------------------------------------------------------------
($ thousands, except revenue
 per job, unaudited)
                                                                   Period-
                                                                     Over-
                                June 30,    % of  June 30,    % of  Period
Six months ended,                   2014 Revenue      2013 Revenue  Change
----------------------------------------------------------------------------
Revenue                          478,604           412,223              16%
Expenses
  Materials and operating        451,747    94.4%  373,008    90.5%     21%
  General and administrative      15,939     3.3%   12,729     3.1%     25%
                               ---------         ---------         ---------
  Total expenses                 467,686    97.7%  385,738    93.6%     21%
Operating income/(loss)(i)        10,918     2.3%   26,486     6.4%     59%
Number of jobs                     6,220             4,243              47%
Revenue per job                   73,655            97,660             (25%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(i) see first page of this report

U.S. revenue for the first six months of 2014 increased by 16% compared to the first six months of 2013. The job count increased by 46% due to substantially higher fracturing activity in the Marcellus, Permian and Bakken regions. The addition of a fourth fracturing crew during the second quarter, combined with strong utilization, contributed to the increase in the Marcellus region. A substantial increase in utilization for our fracturing crews operating in the Permian and Bakken plays led to job count growth in these regions. These increases were offset partially by decreased utilization for our fracturing crews in the Haynesville and Oklahoma regions. Revenue per job decreased by 25% due to pricing reductions and a change in fracturing job mix, which was partially offset by a stronger U.S. dollar.

As a percentage of revenue, materials and operating expenses increased to 94.4% from 90.5%. An increase in product and product transportation costs combined with lower pricing led to the decrease in operating margins. These factors were partially offset by an increase in operating leverage on our fixed cost structure caused by higher revenue. General and administrative costs increased by $3.2 million due largely to increased share-based and insurance expenses.

INTERNATIONAL OPERATIONS


----------------------------------------------------------------------------
($ thousands, except revenue                                        Period-
 per job, unaudited)                                                  Over-
                                June 30,    % of  June 30,    % of   Period
Six months ended,                   2014 Revenue      2013 Revenue   Change
----------------------------------------------------------------------------
Revenue                          173,934           149,118               17%
Expenses
  Materials and operating        147,365    84.7%  139,107    93.3%       6%
  General and administrative      10,725     6.2%    8,485     5.7%      26%
                               ---------         ---------         ---------
  Total expenses                 158,090    90.9%  147,592    99.0%       7%
Operating income(i)               15,844     9.1%    1,526     1.0%     938%
Number of jobs                     2,191             1.876               17%
Revenue per job                   77,178            76,235                1%
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(i) see first page of this report

International revenue increased by 17% during the first half of 2014 compared to the same period in 2013. An increase in Russian activity contributed to the majority of the increase. Russian activity benefitted from a rise in horizontal drilling and completions activity, which has led to an increase in pressure pumping demand in the region. Increased activity in Norway, Colombia, Saudi Arabia and Australia also contributed to the rise in international revenue. Revenue per job remained relatively flat on a year-over-year basis.

Materials and operating expenses decreased to 84.7% of revenue compared to 93.3% of revenue in the same period of 2013. An increase in Russian revenue led to improved operational leverage, which contributed to the majority of the margin improvement. Strong margins for the completion tools business in Norway also led to margin improvement. Continued weakness in Algeria and start-up costs in Saudi Arabia and Colombia offset a portion of the Russian and Norwegian gains. General and administrative costs increased by $2.2 million due largely to an increase in share-based employee expenses.

CORPORATE


----------------------------------------------------------------------------
($ thousands, unaudited)                                            Period-
                                                                      Over-
                               June 30,     % of June 30,     % of   Period
Six months ended,                  2014  Revenue     2013  Revenue   Change
----------------------------------------------------------------------------
Expenses
 Materials and operating         12,174      1.0%  12,076      1.2%       1%
 General and administrative      25,380      2.2%  22,013      2.2%      15%
                               ---------         ---------         ---------
 Total expenses                  37,555      3.2%  34,089      3.4%      10%
Operating loss(i)               (37,555)          (34,089)               10%
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(i) see first page of this report

Corporate costs are up $3.4 million for the first six months of 2014 compared to the same period in 2013 due largely to increased share-based expenses.

OTHER EXPENSES AND INCOME

For the six months ended June 30, 2014, finance costs increased by $3.2 million compared to the same period in 2013 due to increased debt balances. Depreciation and amortization increased by $4.2 million compared to the same period last year due to capital additions related to our capital expansion program.

Foreign exchange losses of $2.7 million have been recorded for the six months ended June 30, 2014, compared to gains of $3.2 million for the same period in 2013. This change is due to the net impact of fluctuations in the U.S. dollar and the Russian ruble relative to the Canadian dollar. Other income for the first half of 2014 was $4.0 million compared to $3.5 million for the same period of 2013. Other income is largely comprised of gains on asset sales and interest income on cash balances.

LIQUIDITY AND CAPITAL RESOURCES

Operating Activities

Funds used in operations decreased to $11.5 million for the second quarter of 2014 compared to $29.1 million for the same period in 2013. The decrease was due largely to a smaller consolidated net loss.

At June 30, 2014, Trican had working capital of $511.4 million compared to $413.2 million at the end of 2013. The increase is due to additional cash combined with higher U.S. activity, which has led to more U.S. inventory and trade accounts receivable. These were offset partially by repayment of US$75 million in current debt at the end of June.

Investing Activities

Capital expenditures for the second quarter of 2014 totaled $24.3 million, compared with $30.0 million for the same period in 2013. Capital expenditures for the six months ended June 30, 2014, were $41.0 million compared to $61.0 million in the same period of 2013. Capital expenditures continue to decrease on a year-over-year basis due to declines in our 2013 and 2014 capital programs relative to 2012.

During the second quarter of 2014, no significant changes were made to our 2014 capital budget. Remaining expenditures on approved capital budgets are expected to be approximately $60 million to $70 million.

Financing Activities

As at July 29, 2014, Trican had 149,612,995 common shares and 9,746,173 employee stock options outstanding.

During the first six months of 2014, Trican withdrew net $133.1 million on its $500.0 million revolving credit facility. The balance of the facility at June 30, 2014, was $345.0 million leaving $155 million of available debt under the facility. In addition, during the second quarter of 2014, Trican repaid $75 million of private placement notes.

On July 17, 2014, Trican exercised the Accordion feature of its Revolving Credit Facility and increased it from $500.0 million to $575.0 million. All other terms and conditions of the Revolving Credit Facility remained unchanged, including its current maturity date of October 17, 2017. At July 29, 2014, $230 million was available under the Facility.

Subsequent to the end of the second quarter of 2014, Trican obtained a commitment from an institutional investor to issue $20 million of senior unsecured notes. The notes will have a 10 year maturity, a coupon of 5.75% and will rank equally with all other senior indebtedness. The transaction is expected to close and fund during the third quarter of 2014.

During the first quarter of 2014, Trican 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 12, 2015. There were no common shares purchased through the NCIB during the first half of 2014.

Trican currently pays a semi-annual dividend of $0.15 per share. During the first quarter of 2014, $22.3 million in dividend payments were made. During the second quarter of 2014, Trican accrued $22.4 million in dividends that will be paid during the third quarter of 2014.

OUTLOOK

Canadian Operations

Demand for pressure pumping services is expected to be strong in Canada during the second half of 2014. Strong demand is expected to be driven by cash flow increases for Canadian customers and a continued increase in fracturing intensity per well. We expect the strongest demand to be generated from the Montney, Cardium and Deep Basin plays. Drilling and completions activity is also expected to increase in the Duvernay play during the second half of 2014 compared to the second half of 2013.

We expect to complete a large Horn River project with a 60,000 horsepower crew over the first five to six weeks of the third quarter. Approximately 33% of the horsepower used on this project will run on engines fuelled by a combination of natural gas sourced on site and diesel. Using natural gas in a conventional diesel engine has quickly evolved and we are optimistic that the most recent technology has led to a product design that is well suited for our service conditions. This is an exciting development for our industry and we will continue to actively participate in this development with our engine manufacturers. We are also using our proprietary recycled water fracturing fluid in the Horn River this year, which will significantly reduce the fresh water used on this project. Third quarter operating margins are expected to benefit from the Horn River work given the strong utilization anticipated over the duration of this project.

We expect to complete two small projects in the Liard basin during the third quarter. These will be the first fracturing projects completed by Trican in the Liard basin and reflects potential long-term customer interest in this region in light of Canadian LNG export opportunities.

Significant increases to our cost structure have negatively impacted operating margins over the last several quarters and pricing increases are required to achieve acceptable operating margins in Canada. As a result, pricing improvements will continue to be a key area of focus for our Canadian management team for the remainder of 2014. Given the strong demand expected in Canada during the second half of 2014, we anticipate that pricing improvement initiatives will be successful and expect second half margins to benefit from sequential pricing increases.

We expect to deploy a new fracturing crew into the Canadian market during the fourth quarter of 2014. The crew size is expected to be 20,000 to 25,000 horsepower and the equipment will be drawn from our existing inactive fleet.

U.S. Operations

Activity in the third quarter of 2014 is expected to remain strong in the Marcellus play, which is our most profitable U.S. region. Pricing improvements obtained at the end of the second quarter combined with a full quarter of activity from the fourth Marcellus crew are expected to result in sequential increases in revenue and operating income for this region.

We also expect financial results to continue to improve in the Permian region. Strong and growing demand in the Permian region, improvements in service quality and strategic sales initiatives have led to recent price increases, which are expected to positively impact third quarter results. In addition, we will continue to focus on increasing utilization and reducing costs, both of which are required to achieve acceptable return on capital in this region.

Due to strong operational performance, demand for our services in the Bakken region is increasing. As a result, we will be adding a second crew to this region during the third quarter of 2014, which is expected to result in stronger regional operating margins for our Bakken operations. The equipment for this crew will be drawn from our existing idle U.S. operating fleet.

To meaningfully advance our financial performance in the U.S., underperforming regions such as Barnett, Haynesville and Oklahoma must improve. New contracts have recently been obtained for fracturing crews in the Oklahoma and Barnett regions, and if operational execution is strong, sequential financial improvements are expected in these regions. In addition, we will continue to focus on increasing the utilization of the Haynesville crew through discussions with customers operating in Eastern Texas.

With recent improvements in operational execution, pricing increases, new contracts, and equipment deployed to high profitability areas, we were pleased with the progress made by our U.S. pressure pumping business during the second quarter. We still have significant improvements to make in the U.S. and must continue to execute on our strategic initiatives to achieve acceptable financial and operational results in this region in the future.

International Operations

With a strong second quarter making up for weak first quarter results, our annual 2014 outlook for Russia has not changed. We continue to expect revenue to increase by approximately 5% relative to 2013 with modest improvements in operating margins. When combined with year-over-year revenue growth in the North Sea, Australia, Colombia, and Saudi, overall international revenue for 2014 is expected to increase by approximately 10%.

We expect to grow our Saudi Arabia and Colombia operations during the second half of 2014 as we continue to establish our operations in these regions. In addition, we will continue to focus on expanding our cementing customer base in Australia and expect to achieve modest growth in this market over the second half of 2014.

Our Algerian operations continue to incur operating losses at current utilization levels. If utilization does not improve over the second half of 2014, we will consider exiting this region upon completion of our current customer commitments, which are expected to be fulfilled by the end of 2014.

We expect our North Sea completions tools business to continue to achieve good financial results over the second half of 2014. We will also focus on growing our manufacturing and supply-chain capabilities and expanding our customer base over the second half of 2014 in order to position this business for future growth.

NON-IFRS DISCLOSURE

Adjusted net income/(loss), operating income and funds provided by/(used in) operations do not have any standardized meaning as prescribed by IFRS and, therefore, are considered non-IFRS measures.

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


----------------------------------------------------------------------------
(thousands; unaudited)          Three months ended        Six months ended
----------------------------------------------------------------------------
                           June 30,  June 30, March 31,  June 30,  June 30,
                               2014      2013      2013      2014      2013
----------------------------------------------------------------------------
Adjusted net income/(loss) ($41,175) ($50,407)  ($6,330) ($47,505) ($23,027)
Deduct:
 Goodwill impairment              -     4,123         -         -     4,123
 Non-cash share-based
  compensation expense        1,929     1,859     2,151     4,080     4,047
----------------------------------------------------------------------------

Profit/(loss) for the
 period (IFRS financial
 measure)                  ($43,104) ($56,389)  ($8,481) ($51,585) ($31,197)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(thousands; unaudited)          Three months ended        Six months ended
----------------------------------------------------------------------------
                           June 30,  June 30, March 31,  June 30,  June 30,
                               2014      2013      2013      2014      2013
----------------------------------------------------------------------------
Funds provided by/(used
 in) operations            ($11,532) ($29,073) $37, 999   $26,465   $28,883
Charges to income not
 involving cash
 Depreciation and
  amortization              (49,137)  (50,613)  (52,751) (101,887)  (97,672)
 Amortization of debt
  issuance costs               (216)     (216)     (216)     (432)     (432)
 Stock-based compensation    (1,929)   (1,859)   (2,151)   (4,080)   (4,047)
  Gain/(loss) on disposal
   of property and
   equipment                    480      (183)       90       570       277
 Net finance costs           (8,830)   (7,984)   (9,816)  (18,646)  (15,516)
 Unrealized foreign
  exchange gain / (loss)     (6,609)    5,282     2,773    (3,836)    8,578
 Goodwill impairment, net         -    (4,123)        -         -    (4,123)
 Income tax
  recovery/(expense)         17,470    18,752     6,568    24,038     9,025
 Interest paid               14,103    12,865     5,659    19,762    15,656
 Income tax paid              3,096       763     3,365     6,461    28,174
----------------------------------------------------------------------------

Profit/(loss) for the
 period (IFRS financial
 measure)                  ($43,104) ($56,389)  ($8,481) ($51,585) ($31,197)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
(thousands; unaudited)          Three months ended        Six months ended
----------------------------------------------------------------------------
                           June 30,  June 30, March 31,  June 30,  June 30,
                               2014      2013      2013      2014      2013
----------------------------------------------------------------------------
Operating income             $1,283  ($14,814)  $42,404   $43,687   $71,349
Add:
 Administrative expenses     37,597    29,252    33,989    71,586    60,041
Deduct:
 Depreciation expense       (49,136)  (50,613)  (52,751) (101,887)  (97,672)
----------------------------------------------------------------------------

Gross profit/(loss) (IFRS
 financial measure)        ($10,256) ($36,175)  $23,642   $13,386   $33,718
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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," "intend", "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 include, among others:


--  The expectation that a 7% price book increase released in Canada during
    the second quarter will be phased-in over the second half of 2014;
--  The expectation that pricing improvement initiatives in Canada will be
    successful and that second half margins will benefit from sequential
    pricing increases;
--  The expectation that contracts with customers in the Barnett and
    Oklahoma regions will improve utilization and profitability in these
    regions during the third quarter of 2014;
--  The expectation that financial results for Saudi Arabia and Colombia
    will improve during the second half of 2014;
--  The expectation that improved cash flows for our Canadian customers will
    result in higher Canadian pressure pumping demand in the second half of
    2014;
--  The expectation that the Canadian completions tools business will
    continue to grow in the second half of 2014 with a continued focus on
    improving and increasing our tool manufacturing capabilities and
    leveraging off of our Canadian pressure pumping customer base;
--  The expectation that pricing improvements obtained in both the Permian
    and Marcellus regions late in the second quarter will benefit third
    quarter 2014 financial results;
--  The expectation that a growing customer base for the U.S. completion
    tools division will have a favorable impact on operating margins for
    this business going forward;
--  The expectation that remaining expenditures on approved capital budgets
    will be approximately $40 million to $50 million;
--  The expectation that the issuance from an institutional investor of $20
    million of senior unsecured notes will close and fund during the third
    quarter of 2014;
--  The expectation that demand for pressure pumping services will be strong
    in Canada during the second half of 2014 and will be driven by cash flow
    increases for Canadian customers and a continued increase in fracturing
    intensity per well;
--  The expectation that the strongest demand in Canada over the second half
    of 2014 will be generated from the Montney, Cardium and Deep Basin
    plays;
--  The expectation that drilling and completions activity will increase in
    the Duvernay play during the second half of 2014 compared to the second
    half of 2013;
--  The expectation to complete a large Horn River project with a 60,000
    horsepower crew over the first five to six weeks of the third quarter of
    2014;
--  The belief that using natural gas in a conventional diesel engine has
    quickly evolved and that the most recent technology has led to a product
    design that is well suited for our service conditions;
--  The expectation that the use of our proprietary recycled water
    fracturing fluid in the Horn River will significantly reduce the fresh
    water used on the Horn River project in 2014;
--  The belief that third quarter operating margins will benefit from the
    Horn River work given the strong utilization anticipated over the
    duration of this project;
--  The expectation to complete two small projects in the Liard basin during
    the third quarter;
--  The expectation that pricing improvements will continue to be a key area
    of focus for our Canadian management team for the remainder of 2014;
--  The expectation to deploy a new fracturing crew into the Canadian market
    during the fourth quarter of 2014;
--  The expectation that activity in the third quarter of 2014 will remain
    strong in the Marcellus region;
--  The expectation that pricing improvements obtained at the end of the
    second quarter combined with a full quarter of activity from the fourth
    Marcellus crew are will result in sequential increases in revenue and
    operating income for the Marcellus region;
--  The expectation that financial results will continue to improve in the
    Permian region;
--  The expectation that strong and growing demand in the Permian region,
    improvements in service quality and strategic sales initiatives will
    positively impact third quarter results;
--  The expectation that the second Bakken fracturing crew will result in
    stronger regional operating margins for our Bakken operations;
--  The expectation that Russian revenue will increase by approximately 5%
    relative to 2013 with modest improvements in operating margins;
--  The expectation that international revenue for 2014 will increase by
    approximately 10% relative to 2013;
--  The expectation that our Saudi Arabia and Colombia operations will grow
    during the second half of 2014 as we continue to establish our
    operations in these regions;
--  The expectation to achieve modest growth in Australia over the second
    half of 2014;
--  The expectation that if utilization does not improve over the second
    half of 2014, we will consider exiting Algeria upon completion of our
    current customer commitments, which are expected to be fulfilled by the
    end of 2014;
--  The expectation that our North Sea completions tools business will
    achieve good financial results over the second half of 2014.

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 "Risk Factors" in our Annual Information Form dated March 21, 2014. 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).


CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Stated in thousands; unaudited)                  June 30,     December 31,
                                                      2014             2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
ASSETS
Current assets
 Cash and cash equivalents                        $108,135          $63,869
 Trade and other receivables                       467,516          459,210
 Current tax assets                                 12,934            5,186
 Inventory                                         246,980          232,898
 Prepaid expenses                                   33,308           34,407
----------------------------------------------------------------------------
                                                   868,873          795,570
Property and equipment                           1,308,409        1,374,212
Intangible assets                                   40,242           44,285
Deferred tax assets                                141,968          122,745
Other assets                                        13,563           17,360
Goodwill                                            59,475           59,475
----------------------------------------------------------------------------
                                                 2,432,530       $2,413,647
----------------------------------------------------------------------------
----------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
 Bank loans                                        $15,255               $-
 Trade and other payables                          342,175          301,920
 Deferred consideration                                  -              650
 Current tax liabilities                                 -               14
 Current portion of loans and borrowings                 -           79,770
----------------------------------------------------------------------------
                                                   357,430          382,354

Loans and borrowings                               707,398          593,786
Deferred tax liabilities                            83,696           87,005

Shareholders' equity
 Share capital                                     571,956          559,723
 Contributed surplus                                64,193           63,074
 Accumulated other comprehensive loss               (5,775)          (1,020)
 Retained earnings                                 651,150          725,172
----------------------------------------------------------------------------
Total equity attributable to equity holders of
 the Company                                     1,281,524        1,346,949
Non-controlling interest                             2,482            3,553
----------------------------------------------------------------------------
                                                 2,432,530       $2,413,647
----------------------------------------------------------------------------
----------------------------------------------------------------------------

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

                                  Three Months             Six Months
                                 Ended June 30,          Ended June 30,

(Stated in thousands, except
 per share amounts;
 unaudited)                        2014        2013        2014        2013
Three months ended June 30,
----------------------------------------------------------------------------

Revenue                         534,599    $396,607   1,177,816  $1,014,983
Cost of sales                   544,855     432,782   1,164,430     981,265
----------------------------------------------------------------------------
Gross (loss)/profit             (10,256)    (36,175)     13,386      33,718
Administrative expenses          37,597      29,252      71,586      60,041
Other income                       (653)     (1,391)     (2,846)     (2,505)
----------------------------------------------------------------------------
Results from operating
 activities                     (47,200)    (64,036)    (55,354)    (23,818)
Finance income                     (706)        (63)     (1,117)     (1,019)
Finance costs                     9,536       8,554      19,763      16,535
Foreign exchange loss /
 (gain)                           4,992      (1,510)      2,700      (3,236)
Goodwill impairment, net              -       4,123           -       4,123
----------------------------------------------------------------------------
Loss before income tax          (61,022)    (75,140)    (76,700)    (40,221)
Income tax recovery             (17,470)    (18,751)    (24,038)     (9,024)
----------------------------------------------------------------------------
Loss for the period             (43,552)   ($56,389)    (52,662)   ($31,197)
----------------------------------------------------------------------------

Other comprehensive (loss) /
 income

Unrealized gain / (loss) on
 hedging instruments                (49)        (57)     (1,583)         43
Foreign currency translation
 differences                     (8,023)      7,616      (3,166)     14,645
----------------------------------------------------------------------------
Total comprehensive loss for
 the period                     (51,624)   ($48,830)    (57,411)   ($16,509)
----------------------------------------------------------------------------

Loss attributable to:
Owners of the Company           (43,104)    (56,264)    (51,585)    (30,901)
Non-controlling interest           (448)       (125)     (1,077)       (296)
----------------------------------------------------------------------------
Loss for the period             (43,552)   ($56,389)    (52,662)   ($31,197)
----------------------------------------------------------------------------

Total comprehensive loss
 attributable to:
Owners of the Company           (51,176)    (48,840)    (56,334)    (16,509)
Non-controlling interest           (448)         10      (1,077)          -
----------------------------------------------------------------------------
Total comprehensive loss for
 the period                     (51,624)   ($48,830)    (57,411)   ($16,509)
----------------------------------------------------------------------------



Loss per share
----------------------------------------------------------------------------
  Basic                          ($0.29)     ($0.38)     ($0.35)     ($0.21)
  Diluted                        ($0.29)     ($0.38)     ($0.35)     ($0.21)
----------------------------------------------------------------------------
Weighted average shares
 outstanding - basic            149,129     148,845     149,029     148,720
Weighted average shares
 outstanding - diluted          149,129     148,845     149,029     148,720
----------------------------------------------------------------------------

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                 Three Months             Six Months
                                 Ended June 30,           Ended June,

(Stated in thousands;
 unaudited)                        2014        2013        2014        2013
----------------------------------------------------------------------------
Cash Provided By / (Used
 In):
Operations
  Loss for the period          ($43,552)   ($56,389)    (52,662)   ($31,197)
  Charges to income not
   involving cash:
    Depreciation and
     amortization                49,136      50,613     101,887      97,672
    Amortization of debt
     issuance costs                 216         216         432         432
    Stock-based compensation      1,929       1,859       4,080       4,047
    Loss on disposal of
     property and equipment        (480)        184        (570)       (277)
    Net finance costs             8,830       7,984      18,646      15,516
    Unrealized foreign
     exchange loss / (gain)       6,609      (5,282)      3,836      (8,578)
    Goodwill impairment, net          -       4,123           -       4,123
    Income tax recovery         (17,470)    (18,751)    (24,038)     (9,025)
----------------------------------------------------------------------------
                                  5,218     (15,443)     51,611      72,713
  Change in inventories         (11,509)     (2,805)    (17,572)    (16,008)
  Change in trade and other
   receivables                  119,281     187,997     (26,259)     87,159
  Change in prepayments          (4,072)     (1,091)      1,014       1,748
  Change in trade and other
   payables                     (29,364)    (44,857)     45,286      28,163
----------------------------------------------------------------------------
Cash provided by operating
 activities                      79,554     123,801      54,080     173,775

  Interest paid                 (14,103)    (12,865)    (19,762)    (15,656)
  Income taxes paid              (3,096)       (763)     (6,461)    (28,174)
----------------------------------------------------------------------------
                                 62,355     110,173      27,857     129,945

Investing
  Payments received on a
   loan to unrelated third
   party                          1,235         155       2,850         155
  Purchase of property and
   equipment                    (24,316)    (30,045)    (41,032)    (61,031)
  Proceeds from the sale of
   property and equipment           506       1,761       1,096       2,690
  Purchase of other assets            -           -           -      (4,600)
  Payment of deferred
   consideration                      -           -        (650)          -
  Business acquisitions               -           -           -     (31,009)
----------------------------------------------------------------------------
                                (22,575)    (28,129)    (37,736)    (93,795)

Financing
  Net proceeds from issuance
   of share capital               9,024         906       9,272         906
  Funds received from bank
   loans                          4,151           -      15,255           -
  Funds drawn on revolving
   credit facility               40,658           -     133,107      26,354
  Repayment of long-term
   debt                         (80,483)   (103,000)    (80,483)   (103,000)
  Dividend paid                       -           -     (22,338)    (21,968)
----------------------------------------------------------------------------
                                (26,650)   (102,094)     54,813     (97,708)

Effect of exchange rate
 changes on cash                   (401)        856        (668)        438
----------------------------------------------------------------------------

Increase / (decrease) in
 cash and cash equivalents       12,729     (19,194)     44,266     (61,120)
Cash and cash equivalents,
 beginning of period             95,406      71,580      63,869     113,506
----------------------------------------------------------------------------
Cash and cash equivalents,
 end of period                  108,135     $52,386     108,135     $52,386
----------------------------------------------------------------------------

SELECTED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

LOANS AND BORROWINGS

Long term debt



                                                  June 30,     December 31,
                                                      2014             2013
----------------------------------------------------------------------------
Notes payable                                     $378,617         $456,935
Finance lease obligations                           19,230           25,904
Revolving credit facilities                        344,984          212,625
Hedge receivable                                    (9,427)          (9,970)
----------------------------------------------------------------------------
Total                                              733,404          685,494
Current portion of finance lease obligations
 (1)                                                10,751           11,938
Russian demand revolving credit facility            15,255                -
Current portion of loans and borrowings                  -           79,770
----------------------------------------------------------------------------
Non-current                                        707,398         $593,786
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Current portion of finance lease obligations is included in trade and
    other payables.

On June 30, 2014 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 July 17, 2014, Trican added two additional banks to its banking syndicate and increased its Revolving Credit Facility from $500.0 million to $575.0 million. On October 17, 2013 the Revolving facility was extended by one additional year to until 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 June 30, 2014 (2013 - in compliance).

Notes payable

On June 22, 2014, Trican repaid US$ 75 million retiring its 2007 Series B Senior Notes.

The Notes payable require the Company to comply with certain financial and non-financial covenants that are typical for this type of arrangement. At June 30, 2014, the Company was in compliance with these covenants (2013 - in compliance).

LOSS PER SHARE


                              For the three months     For the six months
                                     ended,                  ended
                                    June 30,                June 30,
Basic earnings per share           2014        2013        2014        2013
----------------------------------------------------------------------------
Loss available to common
 shareholders                  ($43,104)   ($56,264)   ($51,585)   ($30,901)
Weighted average number of
 common shares              149,129,488 148,845,211 149,028,946 148,720,011
Basic loss per share             ($0.29)     ($0.38)     ($0.35)     ($0.21)
----------------------------------------------------------------------------

                               For the three months      For the six months
                                     ended June 30,          ended June 30,
Diluted earnings per share         2014        2013        2014        2013
----------------------------------------------------------------------------
Loss available to common
 shareholders                  ($43,104)   ($56,264)   ($51,585)   ($30,901)
Weighted average number of
 common shares              149,129,488 148,845,211 149,028,946 148,720,011
Diluted effect of stock
 options                              -           -           -           -
----------------------------------------------------------------------------
Diluted weighted average
 number of common shares    149,129,488 148,845,211 149,028,946 148,720,011
Diluted loss per share           ($0.29)     ($0.38)     ($0.35)     ($0.21)
----------------------------------------------------------------------------

INCOME TAXES

(Stated in thousands)


Three months ended June 30,                               2014         2013
----------------------------------------------------------------------------
Current income tax expense                             ($4,596)    ($10,982)
Deferred income tax recovery                           (12,874)      (7,769)
----------------------------------------------------------------------------
                                                      ($17,470)    ($18,751)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Stated in thousands)


Six months ended June 30,                                   2014        2013
----------------------------------------------------------------------------
Current income tax expense                              ($1,408)      $1,440
Deferred income tax recovery                            (22,630)    (10,464)
----------------------------------------------------------------------------
                                                       ($24,038)    ($9,024)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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 who is responsible for the operation and strategy of his 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 provide cementing, fracturing, coiled tubing,
    nitrogen, geological, acidizing, reservoir management, industrial
    cleaning and pipeline, and completion systems and downhole tool
    services. These services are performed on new and existing oil and gas
    wells and industrial facilities.
--  U.S. operations provide cementing, fracturing, coiled tubing, nitrogen,
    acidizing, industrial cleaning, completion systems and downhole tool
    services. These services are performed on new and existing oil and gas
    wells and industrial facilities.
--  International operations provide cementing, fracturing, coiled tubing,
    acidizing, nitrogen, industrial cleaning, completion systems and
    downhole tool services. These services are performed on new and existing
    oil and gas wells and industrial facilities.

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.



                                  United
                   Canadian       States International
                 Operations   Operations    Operations Corporate      Total
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three months ended June 30,
 2014
Revenue            $171,937     $267,564       $95,098        $-   $534,599
Gross
 profit/(loss)      (15,620)      (2,058)       14,025    (6,603)   (10,256)
Finance income            -            -             -      (706)      (706)
Finance costs             -            -             -     9,536      9,536
Tax expense/
(recovery)          (12,939)      (6,331)        1,800         -    (17,470)
Depreciation
 and
 amortization        17,465       23,617         7,137       917     49,136
Assets              857,379    1,144,328       380,742    50,081  2,432,530
Goodwill             45,248            -        14,227         -     59,475
Property and
 equipment          469,466      698,737       123,457    16,749  1,308,409
Capital
 expenditures         4,475        6,797        12,710       334     24,316
----------------------------------------------------------------------------
Three months ended June 30,
 2013
Revenue            $116,062     $201,538       $79,007         -   $396,607
Gross
 profit/(loss)      (24,068)      (7,272)        1,324    (6,159)   (36,175)
Finance income            -            -             -      ($63)       (63)
Finance costs             -            -             -     8,554      8,554
Tax expense/
(recovery)          (10,928)      (7,261)         (562)        -    (18,751)
Depreciation
 and
 amortization        18,141       24,724         7,001       747     50,613
Assets              850,519    1,117,887       334,074    50,103  2,352,583
Goodwill             62,492            -        14,226         -     76,718
Property and
 equipment          565,050      758,916       105,917    14,563  1,444,446
Capital
 expenditures        10,838       13,793         5,414         -     30,045

                                  United
                   Canadian       States International
                 Operations   Operations    Operations Corporate      Total
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Six months ended June 30,
 2014
----------------------------------------------------------------------------
Revenue            $525,279     $478,604      $173,933        $- $1,177,816
Gross
 profit/(loss)       36,702      (21,812)       12,585   (14,089)    13,386
Finance income            -            -             -    (1,117)    (1,117)
Finance costs             -            -             -    19,763     19,763
Tax expense/
(recovery)           (5,495)     (19,425)          882         -    (24,038)
Depreciation
 and
 amortization        36,426       49,497        14,051     1,913    101,887
Capital
 expenditures         9,025        9,033        20,719     2,255     41,032
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Six months ended June 30,
 2013
----------------------------------------------------------------------------
Revenue            $453,642     $412,223      $149,118       $ - $1,014,983
Gross
 profit/(loss)       56,257       (5,325)       (3,915)  (13,299)    33,718
Finance income            -            -             -    (1,019)    (1,019)
Finance costs             -            -             -    16,535     16,535
Tax expense/
(recovery)            3,066      (10,508)       (1,582)        -     (9,024)
Depreciation
 and
 amortization        34,824       47,631        13,994     1,223     97,672
Capital
 expenditures        24,151       29,356         7,524         -     61,031
----------------------------------------------------------------------------

The Corporate division does not represent an operating segment and is included for informational purposes only. Corporate division expenses consist of salary expenses, stock-based compensation and office costs related to corporate employees, as well as public company costs.

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

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

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

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

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