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					Investor Presentation
March 2010

TSX-BWT



FirstEnergy Conference
New York – March 2010




                         1   1
General Summary

 Blackwatch Energy Services (BWT.TO)
  TSX Exchange
 Shares Outstanding Basic: 240,132,035
                        Fully Diluted: 242,686,384
 Market Capitalization $288.2M (1)
 Share Price Range (52 week) $0.035 - $1.520

    Trusted on August 14, 2006
    Converted to corporation December 31, 2008
    Re-Capitalization and New Management June 2008
NOTE (1): March 5, 2010
                                                     2
BlackWatch Energy Services Corp.

Key Personnel
 Hank Swartout
    Chairman of BlackWatch, former Executive Chairman and Founder of Precision Drilling
     Corporation
 Bruce Chernoff
    Chairman of Harvest Energy Trust and President and Director of Caribou Capital Corp., a
     private investment management company
 John Brussa
    Partner of Burnet, Duckworth & Palmer LLP. Chairman of Penn West Energy Trust
 Paul Hudson
    President of Premier Integrated Services, Mexico. Former President and Founder of Premier
     Drilling Services and Meyer & Associates of Reynosa, Mexico. Resides in Mexico.
 David Rain
    Vice President and Director of Caribou Capital Corp.
 John King, President and CEO
    Former President of the Evaluation, Drilling and Intervention Division of Weatherford
     International Ltd.; prior to Senior Vice President, Precision Drilling Ltd.

                                                                                                 3
Markets and Strategic
Geographical Focus


             Calgary


                Houston
   Reynosa                         Tripoli

                                             Dubai


        Colombia          Brazil




 Business Development Activities
 Country Head Office
 Middle East and North Africa Regional Headquarters
 Canadian Operations Head Office and Corporate Headquarters   4
                 Why International Markets?

                                                            Seismic intensive
                                Finding                     Well count low
                 Exploration     Drill for elephants …     Reservoir evaluation intensive                    Low Service Intensity
                                                            Efficiencies less critical
                                                            Well types vertical                               Technology Intensive
                                                            No production maintenance
Conventional




                                Productivity
                                 Infill drilling …         Well count increases and spacing decreases        INTERNATIONAL STRATEGY
                                                            Stimulation services prevalent
                 Exploitation                               Production Maintenance activities increase
                                Producibility               Focus on efficiencies                             High Service Intensity
                                 Directional drilling …    Well profiles expand (directional & horizontal)
                                 Well stimulation          Service volumes increase in all areas             Efficiency vs Technology
                                                            Fracturing for reservoir stimulation
Unconventional




                                Recovery
                                                            Traditional exploitation model not applicable     CANADIAN STRATEGY
                                 Surface mining
                  Resource       Heavy oil                 Less wells more reservoir contact (mining)
                                                            Reservoir evaluation limited                      Manufacturing Model
                                 Shale gas
                                                            Fracturing for reservoir drainage                            vs
                                 CBM
                                                            Limited production maintenance                    Oilfield Service Model
                                 Unconventional
                                                                                                                                        5
Strategic Growth
                                  Strategic Thinking

  Western Executive Management           Organic         Adaptive Technical Services
                                         Growth

    Practical Implementation                                 Regional Philosophies

                                     Select Regional
        Operational Efficiency                               NOC Driven
                                    Growth Platforms

Performance Technologies                                          Local Knowledge

                                  Performance/Efficiency
                                      North American
                                 Service Delivery Platform



  Start-Up Situations                                               Technology Applications

                    Corporate Acquisitions         Asset Acquisitions
                                                                                              6
Functional Organization for Execution

                                  Finance    HR     IT      Legal

                                                                                                             Mexico
                                            Corp Admin                                       Latin America   Colombia
                                                                                                             Brazil
                         Safety




                                                                     Markets
                                                                                                             Canada
                         Branding            Executive                                       North America
                                                                                                             United States
                         IR
                                                                                             Middle East/    North Africa
                                            Service Lines                                                    Arabian Gulf
                                                                                             North Africa




Contract   Directional        Managed       Engineering                        Stimulation      Surface      Frac Fluids
                              Pressure                        Wireline
Drilling    Services                           And                             Evaluation      Completion    Management
                               Drilling      Planning                                           Rentals




           Well Construction                                   Frac Support and Management
                                                                                                                        7
  Well Construction Services

   Key to Well Construction
 is the ability to integrate
Reservoir Information




                                   Engineering & Planning
                                 is a critical organizational
                               capability
Frac Support and Management
   Evolving Rig Fleet and
   Geographical Distribution
 BlackWatch has announced
   three significant
   transactions since its re-
   capitalization in June 2009
 Throughout the period
   BlackWatch has added key
   engineering, managerial and
   international personnel




Canada:
• Rig Nos.:   101-110 (1300-1700m):    Self-Propelled (carrier) hydraulic single, equipped with Top Drive and Pipe Handling.
• Rig Nos.:   111 (3400m)              AC Electric Tele-Double equipped with Top Drive, Hydraulic Walking System and Pipe Handling.
Mexico:
• Rig Nos.:   835, 836, 837. (3600m)   Mechanical Super Single, equipped with Top Drive and Pipe Handling.
• Rig Nos.    736, 737, 738. (4000m)   DC Electric Triple, single piece sub, equipped with Top Drive and moving system.
Libya:
• Rig Nos.:   28, 29. (4000m)          Mechanical Triple with single piece sub.

                                                                                                                                      10
 Directional Drilling Services

 Latin American Operations                             Drilling Tools

                                                    Standard Drilling Motors
 Platform for growth with                        Performance Drilling Motors
  experienced management                                  Drilling Jars
                                                   Non-magnetic Drill Collars
 Solid Technology toolbox                         Non-magnetic Flex Collars
                                                   Integral Blade Stabilizers
                                                  All crossover's combination




Measurement While Drilling & Logging While           Directional Drilling
Drilling Equipment
                                                       Directional Wells
                                                       Horizontal Wells
- Thunder™ Pulse Positive MWD   Positive Pulse
                                                          Relief Wells
- Thunder™ Pulse Negative MWD   Negative Pulse
                                                         Re-entry Wells
- Lightning™ EMMWD              Electromagnetic     Vertical Control Drilling
- Vibration Sensors                                       Corrections
- Gamma Ray                                          Single Shot Kick Offs
- Resistivity                                          CBM applications
- Pressure While Drilling                         Offshore Multi Well Platform


                                                                                 11
Canada Operations

                                                                          SERVICE LINES:
 Contract Drilling Focused on Shallow Oil
 Frac Management & Monitoring Strategic Initiative                       Contract Drilling

    Pump-down horizontal perforating
    Microseismic                                                             Wireline
    Frac Fluids Supply & Recover Logistics Mgmt
                                                             Frac Mgmt
                                                                             Surface
                                                                 &
                                                                            Completion
   Strategic     Re-positioning traditional service lines    Monitoring
                                                                             Rentals
  Initiatives:   to capitalize on resource play trends.

                                                                           Frac Fluids
                                                                           Management
                 Industry over built and pricing leverage
 Challenges:     weak. Drilling assets generally leveraged
                 to shallow drilling.

                                                                                              12
US Operations
                                          SERVICE LINES:

                                            Directional
 Strong Mid-Continent Customer Base         Services

 Marcellus Expansion in 2010




   Strategic     Introducing new market
  Initiatives:   tailored technology



 Challenges:     Pricing environment
                 remains weak




                                                          13
Mexico Operations

 Nationalization of rig crews drives improved           SERVICE LINES:
  profitability
                                                           Contract
 New projects drive demand for additional rigs            Drilling

 Directional services qualified for Pemex contracts
 Opportunity to combine contract drilling and             Directional
                                                            Services
  directional services to IPM contractors

   Strategic
  Initiatives:   Introduction of additional BlackWatch
                 service lines directly with Pemex


 Challenges:     Ongoing uncertainty related to Pemex
                 spending patterns



                                                                         14
Middle East & North Africa Operations

 Execute option for additional rigs to be deployed      SERVICE LINES:
  to new regional market
                                                           Contract
 Sell additional BlackWatch services “inside”             Drilling
  existing contract
 Local JV partner in key markets can facilitate entry
 Regional management and work force key to
  success

   Strategic     Alignment with NPS provides MENA
  Initiatives:   “turbocharger” for BlackWatch’s
                 growth


                 Barriers to entry extremely high in
 Challenges:
                 MENA markets

                                                                      15
Libyan Transaction
Libya Rig Acquisition:
 (2X) 1000 hp Triples under contract to Waha (Libyan NOC) + drill pipe + camps + rig
  related accessories
 $21M in cash – approximately 4-5X Cash Flow
 Libyan Workforce: 108 Field Staff + Tripoli based country management team
 BlackWatch’s Libyan incorporation results in 5 year tax holiday plus 3 year extension
  option
Purchase Option For Three Additional Rigs:
 $22M option to purchase (1X) 1000 hp Triple (identical to Libyan rigs) as well as (2X)
  750 hp Dbls (carrier based) + drill pipe + camps + rig accessories
 In consideration for option BlackWatch will trade underutilized Canadian assets with a
  net book value of C$2.5M
 Blackwatch evaluating opportunities to re-deploy to new MENA markets

  Strategic      Ongoing vendor relationship and strategic alignment can
 Initiatives:    accelerate BlackWatch’s MENA growth
                                                                                           16
Financial Highlights




                       17
Capitalization Trend
                                                                    Mar 10
                                                                     Libya
                                    Sept 09
                                  $86.3m Equity
                                   Mexico Rigs

                                                                      Jan 1, 10
                                                                     Pan American
               June 11/09
               $10m Equity
                Sub debt




   1) Asset Base consists of Capital Assets and Goodwill
   2) Net debt consists of Net monetary working capital less debt
                                                                                    18
Financial Highlights


                                2009e    2010e    2011e

 Revenue ($MM)                  $ 47.9   $121.3   $137.4

 Gross Margin ($MM)             $ 19.6   $ 38.9   $ 46.5

 EBITDA ($MM)                   $ 15.2   $ 29.1   $ 36.1

 Net Earnings ($MM)             $ 4.1    $ 12.6   $ 19.1

 Cash Flow ($MM)                $ 9.4    $ 28.7   $ 36.1



 NOTE: First Energy Estimates

                                                           19
BlackWatch Energy Services Corp.


 ♦ “Buy, Grow and Build” versus “Buy and Sell”
 ♦ Fully engaged management committed to building a world class
   Canadian organization
 ♦ Regionally experienced manpower and local knowledge
 ♦ Engineering and Technology applications coupled with market
   tailored equipment
 ♦ Favorable timing




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