Peters and Co' Energy Conference Toronto, Ontario

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Peters and Co. Energy Conference Toronto, Ontario

• Thomas M. Alford, President and CEO
• IROC Energy Services Corp.

September 16, 2009
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Forward Looking Statement

• Except for historical information, this Power
  Point Presentation contains forward-looking
  statements, which may not be based on historical
  fact. 
• Such forward-looking statements involve known and
  unknown risks, uncertainties, and other factors
  which may cause actual results, events or
  developments to be materially different from the
  results, events, developments expressed or
  implied by such forward-looking statements. 
• Such factors include, among other things, risks
  associated with the oil and gas industry
  generally, commodity prices, the ability to
  protect the Corporation's intellectual property,
  long-term capital requirements and IROC's stage
  of development. 
• Each factor should be considered carefully and
  readers are cautioned not to place undue reliance
  on such forward-looking statements.
• IROC assumes no responsibility to up date any of
  the forward looking statements made herein

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Service Industry Overview
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TIMES HAVE BECOME DIFFICULT IN THE OIL AND GAS
SERVICE INDUSTRY IN WESTERN CANADA
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Oilfield Services Operating Environment Rapid
Change

• Negative
• Royalty trust taxation changes have structurally
  changed our business
• Cost of capital increased due to lower valuations
• Mergers created out of necessity take time to
  work through the system and allow for the
  emergence of a vibrant intermediate sector
• Fewer oil companies to deploy capital and drive
  activity
• Alberta government new royalty framework has had
  a significant effect on conventional oil and gas
  service activity
• Pressure on field costs for service companies has
  not abated meaningfully
• Natural gas fundamentals have broken down for
  Canadian producers
• EP Juniors disappearing at an alarming rate
• Services capacity remains far in excess of
  indicated activity
• Positive
• Oil prices have rebounded with heavy oil
  differentials contracting
• Reduction in activity in Canada is now being
  mirrored by lower activity in the United States
  with resulting declines becoming evident in
  production numbers
• Growing well inventory supports base service
  activity
• Beginning to see a rationalization of assets with
  the unwinding of service trusts, mergers and
  recapitalization of some entities
• How much lower can activity go?

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INDUSTRY SPECIFIC

• Too much equipment capacity in Canada geared
  for 30,000 wells with fewer than 10,000 expected
• Most smaller oilfield service companies, private
  and public are struggling to achieve positive
  cash flowhow long can that last
• Traditional asset based lending has effectively
  disappeared with participants pulling back hard
  on its involvement in the business
• Banks continue to support their special
  situations which becomes a drag on stronger
  operators in the industry
• Labor issues already appearing with long term
  implications for our industry
• Asset retirement and movement to international
  markets will assist recovery
• Near term bottom likely reached given that winter
  buys the sector time before Q2 of 2010 rolls
  around
• V shaped recovery will not happen, with further
  difficulty anticipated summer 2010 given gas
  scenario and contracting E and P sector
• Downside limited from here, with significant
  upside given the current valuations evident in
  the Canadian publicly traded oil service
  companiessimply a question of timing

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IROC ENERGY SERVICESCorporate Overview
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Company Profile

• Publicly traded since 2000
• TSXISC 43.7 million shares outstanding
• Market Capitalization of 26.2 million (Sept
  8/09)
• Total Debt of 23mm and net debt of 10.5mm (June
  09)
• NCIB initiated in December 2008 with 650,000
  shares repurchased to date
• Semi annual dividend of 0.03 initiated in May
  2009, currently a 10 yield
• Operating primarily in Western Canada with
  International exposure through our technology
  business
• IROCs Drilling and Production Services include
• Well servicing rigs and equipment Eagle Well
  Servicing
• Oilfield rental services AERO Rental Services
• IROCs Technology Services include
• Manufacture, distribution and installation of
  downhole pressure and temperature measurement
  tools Canada Tech

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• Presently operating 36 newly built service rigs
  in Western Canada with most recent rigs deployed
  in Q1 2009
• Operations centred in Red Deer, Lloydminster,
  Estevan and Grande Prairie
• Growth opportunities remain as we strive to
  achieve optimum operating levels in each of our
  bases
• First rigs built in late 2004 with controlled
  internal growth providing Eagle with the newest
  fleet of equipment in the public markets
• Competitive Advantages
• New equipment adapted to meet the changing needs
  of our customers in the WCSB
• Trained, competent field personnel
• Cost efficiencies achieved from new fleet
• Utilization of new technology provide superior
  product for customer

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• AERO Rental Services provides newly acquired
  surface pressure control assets, tubulars, power
  swivels and handling equipment
• Based in Western Canada with exposure to both the
  completion, work over and deep drilling sectors
  of the industry
• Quality Equipment Fleet with new or refurbished
  assets
• Competing in market with large multinational
  being the dominant player and a number of
  smaller, like size players scattered across the
  WCSB
• Growth through acquisition likely for this
  division
• Experienced team of pressure control professionals

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• A highly specialized technology company that
  develops, manufactures, distributes and installs
  a wide range of memory gauges and permanent
  monitoring systems for use in harsh operating
  environments around the world
• Continuing development of new products with costs
  absorbed as expenditure incurred
• Focus on pushing limits of existing technology to
  set continuous monitoring as the standard in the
  industry
• Domestic and international expansion
  opportunities as demand for information increases
• Capital spending curtailed in recent quarter is
  showing signs of rebounding as technology is
  applied to mainstream applications

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Recent Financial Performance
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Financial Highlights
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Financial Highlights
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Financial Highlights
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Financial Highlights
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Financial Highlights
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2009 NEW FOCUS
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2008 Looking Back

• Resume service rig build program with deliveries
  of 6 rigs expected before yearend
• Canada Tech, with new products and services and
  markets opening up around the world provides
  opportunity for significant revenue increases
• Increase rental inventory to take advantage of
  operational leverage at Aero Rentals division
• Continue to innovate in the products and services
  that are delivered to the customer across all
  businesses
• Look for opportunity to rationalize
  underperforming assets and redeploy capital into
  existing internal opportunities or acquisitions
• Be proactive on the labor front as demand
  increases as the year goes by

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Accomplishments in Last 12 Months

• Eagle has been preparing for the downturn that
  reared its head in November 2008, with right
  sizing of support staff initiated
• Review of operations undertaken during summer
  2008
• Drilling rig assets sold during September 2008
  for 33.7mm cash which was used to reduce debt
• Safety and communication assets sold in February
  2009 for 3.64mm with 3mm cash received and the
  remainder in a note
• Lease and road construction assets sold in
  February 2009 for 4.8mm with 3.3mm cash
  received and the remainder in a note
• Debt reduction during last year of approximately
  45mm
• Total debt of approximately 19mm and net debt of
  8mm at June 15
• NCIB initiated in December 2008
• Traditional banking facility reduced to 40mm
  with expandable capacity in May 2009
• Introduction of semi annual dividend in May 2009

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Is There Light?

• North American Land Drilling Rig count has
  dropped precipitously with recent signs of
  stability
• Declines beginning to show their teeth with NG
  production dropping in both Canada and the US
• Oil prices bottomed early in Q1 with significant
  recovery to 70/BBL
• Production based activity remains fairly strong
  in oil producing areas
• Alberta government now understands that there is
  a problem but still is at a loss what to domaybe
  time will heal stupidity
• Consolidation and rationalization becoming
  evident and further deals more likely in this
  environment
• Service rigs used for completion, production and
  abandonment with a base of approximately 225,000
  existing wells in WCSB

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Going Forward

• Continue with the right sizing of
  administrative and operating staff to fully
  reflect the size of our operations, taking
  industry conditions into account
• Steep discount to replacement cost typical of
  bottom in cycle
• Dividend and NCIB allows shareholders to benefit
  until inevitable recovery develops
• Relatively strong balance sheet
• Ability to wait for the right opportunity will
  prove valuable
• Grow internally, maintain relative strength and
  push forward once again when the time is right

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Why IROC Energy Services

• Experienced Management Team and Strong Board
• Newest equipment across all business lines
• Ability to attract and retain competent crews
  will drive profitability in coming quarters
• Efficient equipment gives operating advantage to
  both IROC and clients
• Technologically advanced products integrated into
  traditional business lines
• Utilizing cash flow to buy back stock, pay semi
  annual dividend and reinvest through internally
  generated initiatives
• Steady growth from service rigs will be supported
  by potentially significant growth in Canada Tech
  and Aero
• Well positioned financially to take advantage of
  acquisition opportunities and seen as attractive
  merger partner
• Currently trading at a discounted EBITDA
  multiple, discount to book value and significant
  discount to replacement cost

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IROC Energy Services Corp.TSXV ISC43.7 Shares
Outstanding26.2 mm Market Cap. as of Sept 8,
2009