Cathedral Energy Services Income Trust

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Cathedral Energy Services Income Trust

• As at November 13, 2008
• TSX CET.UN
• Market Value 275 million
• Units Outstanding 32.6 million
• Current Unit Price 8.44
• Annual Distribution 0.84

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Disclaimer

• Certain statements in this presentation
  including (i) statements that may contain words
  such as anticipate, could, expect, seek,
  may, intend, will, believe, should,
  project, forecast, plan and similar
  expressions, including the negatives thereof,
  (ii) statements that are based on current
  expectations and estimates about the markets in
  which the Trust/Cathedral operations and (iii)
  statements of belief, intentions and expectations
  about developments, results and events that will
  or may occur in the future, constitute
  forward-looking statements and are based on
  certain assumptions and analysis made by the
  Trust/Cathedral. Forward-looking statements in
  this presentation include, but are not limited
  to, statements with respect to future capital
  expenditures, including the amount, nature and
  timing thereof, oil and natural gas prices and
  demand other development trends within the oil
  and natural gas industry business strategy
  expansion and growth of the Trusts/Cathedrals
  business and operations including the
  Trusts/Cathedrals market share and position in
  the oilfield service market and other such
  matters. Such forward-looking statements are
  subject to important risks and uncertainties,
  which are difficult to predict and that may
  affect the Trusts/Cathedrals operations,
  including, but not limited to the impact of
  general economic conditions in Canada and the
  United States industry conditions, including the
  adoption of new environmental, safety and other
  laws and regulations and changes in how they are
  interpreted and enforced volatility of oil and
  natural gas prices oil and natural gas product
  supply and demand risks inherent in the
  Trusts/Cathedrals ability to generate
  sufficient cash flow from operations to meet its
  current and future obligations increased
  competition the lack of availability of
  qualified personnel or labor unrest fluctuation
  in foreign exchange or interest rates stock
  market volatility opportunities available to or
  pursued by the Trust/Cathedral and other factors,
  many of which are beyond the control of the
  Trust/Cathedral. The Trusts/Cathedrals actual
  results, performance or achievements could differ
  materially from those expressed in, or implied
  by, these forward-looking statements and,
  accordingly, no assurance can be given that any
  of the events anticipated by the forward-looking
  statements will transpire or occur, or if any of
  them do transpire or occur, what benefits the
  Trust/Cathedral will derive therefrom. Subject to
  applicable law, the Trust/Cathedral disclaims any
  intention or obligation to update or revise any
  forward-looking statements, whether as a result
  of new information, future events or otherwise.
• All forward-looking statements contained in this
  document are expressly qualified by this
  cautionary statement. Further information about
  the factors affecting forward-looking statements
  is available in the Trusts/Cathedrals current
  Annual Information Form and Annual Report which
  have been filed with Canadian provincial
  securities commissions and are available on
  www.sedar.com.

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Operations

• Directional Drilling Services
• Includes horizontal, directional, multi well pad,
  re-entry, underbalanced, SAGD, and coal bed
  methane drilling
• Percentage of directional and horizontal wells
  increased from 28-30 in Canada to approximately
  40 of all wells drilled. In the U.S. over 50 of
  wells are now drilled horizontally and/or
  directionally
• Plays like the Bakken and the Montney, as well as
  multi-stage fracturing, will continue to expand
  horizontal drilling

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Operations

• Directional Drilling Services (contd)
• Most U.S. resource plays are primarily using
  horizontal drilling technology
• At end of 08 Cathedral will have 98 EM MWD
  systems, 37 of which will be in the U.S. This is
  a total increase of 20 over December 07
• Services provided in Western Canada and Rocky
  Mountain, Williston Basin, Michigan and Texas
  regions of the U.S.

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Operations

• Directional Drilling Technology
• MWD systems provide well bore inclination,
  azimuth, temperature, pressure, gamma ray levels
  and bottom hole assembly orientation
• Positive Pulse
• Negative Pulse
• Electro-Magnetic (EM)
• G1 (1st generation)
• G2 (2nd generation) increased power capacity and
  bi-directional communication
• G3 (3rd generation) enhanced transmission,
  formation impedance matching and auto rotation
  sensors, will have superior depth capability
  battery management greater depth reduced cost

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Operations
Directional Drilling Technology (contd)

• The Electric Dipole Measurement While Drilling
  tool (EM MWD) is a wireless system which utilizes
  low frequency signals to communicate to the
  surface. As with other systems, simply install
  the tool in the BHA, drive a ground stake near
  the rig, and begin receiving data

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Operations

• Directional Drilling Technology Mud Motors
• High performance motors
• New technologies
• Hard rubber stators
• Even wall power sections
• Both designed to provide additional horsepower
  and torque capabilities to the drill bit
• Current fleet size at 430 mud motors

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Operations

• Directional Drilling Activity
• Canada
• Market share varies between 14-18
• Active in S.E. Saskatchewan market which is being
  driven by Bakken activity
• Increased activity in British Columbia resource
  plays
• Significant activity in under balanced market
• Most activity is continuous programs
• Push to move G3 EM MWD technology into new areas
  where it has not been offered previously
• 20 of activity utilizing our Remote Drilling
  System

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Operations

• Directional Drilling Activity (contd)
• U.S.
• Market share nominal approximately 3-4
• Activity primarily in the Rocky Mountain region
  with growing activity in North Dakota, Michigan,
  Oklahoma and Texas
• 90 of activity is continuous with utilization
  rates that will approximate 80
• Currently 33 systems 4 more systems to be added
  in balance of 2008
• Establishment of Remote Drilling System

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Operations

• Production Testing
• Provides personnel and equipment for all types of
  production testing activities including
• Production flow tests to determine size and
  production of reservoirs
• Deliverability of gas wells
• Flowbacks after well stimulation (to flare or
  inline)
• Vapor recovery during workover and abandonment
  operations
• Focus on high-end testing market including
  critical sour service work

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Operations

• Production Testing (contd)
• Canada
• Currently has 20 high pressure production testing
  units
• 3 additional units to be added in 2008 Q4
• U.S.
• Currently has 7 active production testing units
  with 4 additional units on order
• Three year contracts
• Additional demand from clients

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Operations

• Wireline Services
• Provide cased hole logging and perforating,
  complete slickline services, casing integrity
  inspection logging and downhole camera services
• Canada
• 14 slickline units
• 9 electric line (eline) units
• Services provided in Western Canada from field
  locations in Red Deer, Whitecourt, Grande
  Prairie, Grande Cache, Vegreville, Drayton
  Valley, Calgary, Medicine Hat, and Provost
• U.S.
• 2 electric line units based in Casper, Wyoming
• 3 electric line units based in Dickinson, North
  Dakota

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Financial
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Financial
EBITDAS per diluted unit
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By Division
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By Country
2007 Fiscal Year (millions)
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Financial
(millions)
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Outlook

• Strong management and operations teams
• Strong underlying business
• Strong balance sheet
• Net debt at end of 2008 Q3 9.9 million
• State-of-art equipment/technology
• Advancement in EM MWD capabilities - expand
  markets/increased market share
• Remote access monitoring including use for
  vertical applications
• Market Conditions
• Oil prices current decline in price longer
  term fundamentals are positive
• Gas prices current decline in price longer
  term fundamentals are positive
• Storage levels are close to being in balance with
  the 5 year average
• Reduced Canadian supply and year to date
  reduction in LNG supply

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Outlook

• Outlook (contd)
• Growth
• Will focus on expanding overall capacity
• Expand U.S. bases and operations
• Strategic acquisitions related to current
  business lines
• International
• Bidding on South America opportunities
• Progress being made

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Please visit us

• www.cathedralenergyservices.com