IPAA OGIS WestIPAA OGIS West

Oil & Gas Investment Oil & Gas Investment

SymposiumSymposium

October, 2005October, 2005

2

Corporate InformationCorporate Information

Julio M. QuintanaJulio M. QuintanaPresident andPresident andChief Executive OfficerChief Executive Officer

Michael C. KearneyMichael C. KearneyExecutive Vice President FinanceExecutive Vice President FinanceChief Financial OfficerChief Financial Officer

Tesco CorporationTesco Corporation11330 Brittmoore Park Drive11330 Brittmoore Park DriveHouston, TX 77041Houston, TX 77041Phone: (713) 849-5900Phone: (713) 849-5900Fax: (281) 249-1070Fax: (281) 249-1070Web: www.tescocorp.comWeb: www.tescocorp.com

Investor Relations ContactInvestor Relations Contact

Kristi RectorKristi Rector(281) 721-3970(281) 721-3970

kristi_rector@tescocorp.comkristi_rector@tescocorp.com

Forward Looking StatementForward Looking StatementThis presentation contains statements that may constitute This presentation contains statements that may constitute “forward-looking statements” within the meaning of the US “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995. These Private Securities Litigation Reform Act of 1995. These statements include, among others, statements regarding statements include, among others, statements regarding expectations of future revenue, activities, capital expenditures, expectations of future revenue, activities, capital expenditures, earnings and technical results. These statements are based on earnings and technical results. These statements are based on current expectations that involve a number of risks and current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: those anticipated. These risks include, but are not limited to: the background risks of the drilling services industry (e.g. the background risks of the drilling services industry (e.g. operational risks; potential delays or changes in plans with operational risks; potential delays or changes in plans with respect to customers’ exploration or development projects or respect to customers’ exploration or development projects or capital expenditures; the uncertainty of estimates and capital expenditures; the uncertainty of estimates and projections relating to levels of rental activities; uncertainty of projections relating to levels of rental activities; uncertainty of estimates and projections of costs and expenses; risks in estimates and projections of costs and expenses; risks in conducting foreign operations (e.g. political and fiscal conducting foreign operations (e.g. political and fiscal instability) and exchange rate fluctuations); uncertainty and instability) and exchange rate fluctuations); uncertainty and risks in technical results and performance of technology; and risks in technical results and performance of technology; and other uncertainties. other uncertainties.

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• Global leader in design and delivery of technology-based Global leader in design and delivery of technology-based solutions for the drilling industrysolutions for the drilling industry• Two segments: Top DrivesTwo segments: Top Drives

Casing ServicesCasing Services

• Founded in 1986; IPO in 1993Founded in 1986; IPO in 1993

• Listed: TSX (TEO)Listed: TSX (TEO)

NASDAQ (TESOF)NASDAQ (TESOF)

• 52 week stock price range 52 week stock price range CAD$10.70-19.90 / US$8.55-16.97CAD$10.70-19.90 / US$8.55-16.97

• 30 day average stock price30 day average stock price CAD$18.02 / US$14.96 CAD$18.02 / US$14.96

• Market Cap (millions)Market Cap (millions) CAD$634 / US$541 CAD$634 / US$541

TESCO at a GlanceTESCO at a Glance

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TOP DRIVESTOP DRIVES• RentalRental

• SalesSales• Aftermarket Sales and ServiceAftermarket Sales and Service

Business SegmentsBusiness Segments

CASING SERVICESCASING SERVICES• Casing RunningCasing Running

ProprietaryProprietary ConventionalConventional

• CASING DRILLINGCASING DRILLING®®

CasingServices

CasingServices

Top Drive Top Drive

$71.5 $20.4$8.4$34.6

RevenueRevenue Segment Operating IncomeSegment Operating Income

11stst 6 Months 6 Months20052005

Millions $ CADMillions $ CADTotal $106.1Total $106.1 Total $28.8Total $28.8

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Calgary, CanadaCalgary, Canada

Houston, Freer, KilgoreHouston, Freer, Kilgore & Carthage, Texas & Carthage, Texas Athens & Jena, LouisianaAthens & Jena, Louisiana

Ciudad del Carmen, MexicoCiudad del Carmen, Mexico

El Tigre, VenezuelaEl Tigre, Venezuela

Rio de Janeiro, BrazilRio de Janeiro, Brazil

Buenos Aires & Neuquen,Buenos Aires & Neuquen,ArgentinaArgentina

Moscow, RussiaMoscow, Russia

Dubai, UAEDubai, UAE

Beijing, ChinaBeijing, China

Jakarta, IndonesiaJakarta, Indonesia

Perth, AustraliaPerth, Australia

San Mateus & San Mateus & Natal, BrazilNatal, Brazil

950 Employees in 23 countries950 Employees in 23 countries

Global ReachGlobal Reach

TESCO OfficesTESCO Offices

Aberdeen, ScotlandAberdeen, Scotland

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Top DrivesTop Drives

• Invented portable Top DriveInvented portable Top Drive• Created Top Drive rental marketCreated Top Drive rental market• Will rent or sell Top DrivesWill rent or sell Top Drives

HydraulicHydraulic ElectricElectric

• Growing Aftermarket SalesGrowing Aftermarket Sales and Service businessand Service business

Units InstalledUnits Installed Rental MarketRental Market

NOVNOVTESCOTESCO

CanrigCanrig

OtherOther

OtherOther

TESCOTESCO

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Total Offshore RigsTotal Offshore Rigs Total Land RigsTotal Land Rigs

North AmericaNorth America 150 150 2,150 2,150 International International 550 900550 900(Excluding FSU & China)(Excluding FSU & China)

Total Rigs 700 3,050Total Rigs 700 3,050

• Expected offshore replacement / sale market growth of 5% per yearExpected offshore replacement / sale market growth of 5% per year• Expected growth of land rig market 15% per yearExpected growth of land rig market 15% per year• China & FSU are two large markets with minimal complements of top drivesChina & FSU are two large markets with minimal complements of top drives

Top Drive MarketTop Drive Market

Offshore Rigs with Top Drives

95%Land Rigs with Land Rigs with

Top DrivesTop Drives25%25%

Offshore Rigs Offshore Rigs without Top Driveswithout Top Drives

5%5%

Land Rigswithout Top Drives

75%

_______________________Sources: IADC, CAODC, TESCO Research

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Top DrivesTop Drives

$9.5

$20.4

0

5

10

15

20

25

Mil

lio

ns

$ C

AD

Operating Income

1st 6 Months 2004 1st 6 Months 2005

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CASING DRILLINGCASING DRILLING®®

• Integrated – drill entire well with retrievable tool systemIntegrated – drill entire well with retrievable tool system

• Interval – drill selected intervals; retrievable or non-retrievableInterval – drill selected intervals; retrievable or non-retrievable

• Partnership with Baker Hughes for EZCase™ solutionPartnership with Baker Hughes for EZCase™ solution

Casing RunningCasing Running

• Proprietary Casing Running ServiceProprietary Casing Running Service Game changing technologyGame changing technology Quantum leap in safety profileQuantum leap in safety profile Near term growth engineNear term growth engine

• Conventional Casing RunningConventional Casing Running Bo Gray and A&M TubularBo Gray and A&M Tubular N.E. Texas / N. LouisianaN.E. Texas / N. Louisiana Recent SE Asia AcquisitionRecent SE Asia Acquisition

Casing ServicesCasing Services

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Animation of CASING DRILLINGAnimation of CASING DRILLING®® Technology Technology

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CASING DRILLINGCASING DRILLING®® PROCESSPROCESS

CASING DRILLINGCASING DRILLING®® Technology Technology

CONVENTIONAL CONVENTIONAL DRILLING PROCESSDRILLING PROCESS

What is it?What is it?

• Simultaneously drill and case wellsSimultaneously drill and case wells

• Trip bottom hole assemblies byTrip bottom hole assemblies by wireline instead of drill pipewireline instead of drill pipe

• Combines LWD/MWD and rotaryCombines LWD/MWD and rotary steerable technologysteerable technology

• Developed the only commercialDeveloped the only commercial directional system in the marketdirectional system in the market

• Drilled over 1.75 million feet andDrilled over 1.75 million feet and over 240 wellsover 240 wells

• Drilled onshore and offshore,Drilled onshore and offshore, including 30 directional wellsincluding 30 directional wells

• Deployed on both conventionalDeployed on both conventional and “purpose built” rigsand “purpose built” rigs

AdvantagesAdvantages

• Time savingsTime savings

• Material savingsMaterial savings

• Increases production throughIncreases production through reduced reservoir damagereduced reservoir damage

• Solves wellbore instability problemsSolves wellbore instability problems

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Casing RunningCasing Running

TESCO’s technology is a “GameTESCO’s technology is a “GameChanging” technology due to:Changing” technology due to:

SafetySafety – Elimination of high risk – Elimination of high risk

““stabber” and power tong positions stabber” and power tong positions

PerformancePerformance – Can rotate casing to – Can rotate casing to

bottom through trouble zones, bottom through trouble zones,

improve cementing resultsimprove cementing results

ReliabilityReliability – Proven performance and – Proven performance and

market acceptancemarket acceptance

FlexibilityFlexibility – Adapts to all Top Drives– Adapts to all Top Drives

EfficiencyEfficiency – Cost reduction – Cost reduction

Manual, Labor IntensiveManual, Labor Intensive MechanizedMechanized

ProprietaryProprietaryConventionalConventional

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Animation of Proprietary Casing RunningAnimation of Proprietary Casing Running

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Rapid Acceptance of TESCO’sRapid Acceptance of TESCO’sCasing ServicesCasing Services

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Cu

mu

lati

ve F

oo

tag

e R

un

2002 2003 20040

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Cu

mu

lati

ve F

oo

tag

e D

rill

ed

2002 2003 2004

Proprietary Casing RunningProprietary Casing Running CASING DRILLINGCASING DRILLING®®

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Casing ServicesCasing Services

$2.3

$8.4

0

2

4

6

8

10

Mil

lio

ns

$ C

AD

Operating Income

1st 6 Months 2004 1st 6 Months 2005

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Financial OverviewFinancial Overview

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Consolidated Income StatementConsolidated Income Statement

20022002 20032003 20042004

11stst 6 6 Months Months

20042004

11stst 6 6 MonthsMonths

20052005

RevenueRevenue$152.$152.

44 $185.7$185.7 $179.1$179.1 $87.7$87.7$106.$106.

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Operating incomeOperating income 1.2 1.2 0.10.1 6.56.5 1.21.2 13.113.1

Net Income (loss)Net Income (loss) (1.1)(1.1) (24.4)(24.4) (7.6)(7.6) (1.4)(1.4) 9.09.0

EPS (Basic and EPS (Basic and Diluted)Diluted) (0.03)(0.03) (0.71)(0.71) (0.22)(0.22) 0.000.00 0.260.26

Millions $ CAD, except EPSMillions $ CAD, except EPS

Note: Pre-tax restructuring charges of $28.1 million and $4.9 million in FY 2003 and FY 2004, respectively.Note: Pre-tax restructuring charges of $28.1 million and $4.9 million in FY 2003 and FY 2004, respectively.

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Strong Balance SheetStrong Balance Sheet

Quarters endedQuarters ended 06/30/0406/30/04 12/31/0412/31/04 06/30/0506/30/05

CashCash $56.1$56.1 $18.9$18.9 $18.5$18.5

DebtDebt 69.369.3 17.9 17.9 11.511.5

Net debt Net debt 13.213.2 (1.0) (1.0) (7.0)(7.0)

EquityEquity 221.5 221.5 219.0219.0 232.1 232.1

Debt / Total CapDebt / Total Cap 23.8%23.8% 7.6%7.6% 4.7%4.7%

Millions $ CADMillions $ CAD

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Improving Free Cash FlowImproving Free Cash Flow

20022002 20032003 20042004

11stst 6 6 MonthsMonths

20042004

11stst 6 6 MonthsMonths 20052005

Net Income (loss)Net Income (loss) $(1.1)$(1.1) $(24.4)$(24.4) $(7.6)$(7.6) $(1.4)$(1.4) $9.0$9.0

DepreciationDepreciation 12.112.1 16.916.9 18.918.9 9.49.4 9.49.4

Cash FlowCash Flow 11.011.0 (7.5)(7.5) 11.311.3 8.08.0 18.418.4

Capital ExpenditureCapital Expenditure (57.6)(57.6) (24.0)(24.0) (10.1)(10.1) (3.9)(3.9) (7.9)(7.9)

Free Cash FlowFree Cash Flow (46.6)(46.6) (31.5)(31.5) 1.21.2 4.14.1 10.510.5

Millions $ CADMillions $ CAD

Note: Pre-tax restructuring charges of $28.1 million and $4.9 million in FY 2003 and FY 2004, respectively.Note: Pre-tax restructuring charges of $28.1 million and $4.9 million in FY 2003 and FY 2004, respectively.

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• Refocus Top Drive rental, sales and aftermarket businessRefocus Top Drive rental, sales and aftermarket business

• Capture high value offshore market for CASING DRILLINGCapture high value offshore market for CASING DRILLING®®

• Revolutionize the casing running processRevolutionize the casing running process

• Instill fiscal discipline throughout the organizationInstill fiscal discipline throughout the organization

• Improve return on capital employedImprove return on capital employed

Vision Going Forward Vision Going Forward

IPAA OGIS WestIPAA OGIS West

Oil & Gas Investment Oil & Gas Investment

SymposiumSymposium

October, 2005October, 2005