IPAA OGIS West

Oil & Gas Investment

Symposium
October, 2005
 Corporate Information
Julio M. Quintana
President and
Chief Executive Officer
Michael C. Kearney
Executive Vice President Finance
Chief Financial Officer
Tesco Corporation
11330 Brittmoore Park Drive
Houston, TX 77041
Phone: (713) 849-5900
Fax: (281) 249-1070
Web: www.tescocorp.com
Forward Looking Statement
This presentation contains statements that may constitute
“forward-looking statements” within the meaning of the US
Private Securities Litigation Reform Act of 1995. These
statements include, among others, statements regarding
expectations of future revenue, activities, capital expenditures,
earnings and technical results. These statements are based on
current expectations that involve a number of risks and
uncertainties, which could cause actual results to differ from
those anticipated. These risks include, but are not limited to:
the background risks of the drilling services industry (e.g.
operational risks; potential delays or changes in plans with
respect to customers’ exploration or development projects or
capital expenditures; the uncertainty of estimates and
projections relating to levels of rental activities; uncertainty of
estimates and projections of costs and expenses; risks in
conducting foreign operations (e.g. political and fiscal
instability) and exchange rate fluctuations); uncertainty and
risks in technical results and performance of technology; and
other uncertainties.
Investor Relations Contact
Kristi Rector
(281) 721-3970
kristi_rector@tescocorp.com 2
 TESCO at a Glance
• Global leader in design and delivery of technology-based
solutions for the drilling industry
• Two segments: Top Drives
Casing Services
• Founded in 1986; IPO in 1993
• Listed: TSX (TEO)
NASDAQ (TESOF)
• 52 week stock price range CAD$10.70-19.90 / US$8.55-16.97
• 30 day average stock price CAD$18.02 / US$14.96
• Market Cap (millions) CAD$634 / US$541

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 Business Segments
TOP DRIVES CASING SERVICES
• Rental • Casing Running
• Sales  Proprietary

• Aftermarket Sales and Service  Conventional

• CASING DRILLING®

Revenue Segment Operating Income

Casing Casing
Services Services
Top Drive $34.6 1st 6 Months Top Drive $8.4
$71.5 2005 $20.4

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Total $106.1 Millions $ CAD Total $28.8
 Global Reach

Moscow, Russia
Aberdeen, Scotland
Calgary, Canada

Houston, Freer, Kilgore Beijing, China

& Carthage, Texas
Athens & Jena, Louisiana
Dubai, UAE
Ciudad del Carmen, Mexico

El Tigre, Venezuela

San Mateus & Jakarta, Indonesia

Natal, Brazil

Rio de Janeiro, Brazil

Perth, Australia

Buenos Aires & Neuquen,

Argentina 5
TESCO Offices
950 Employees in 23 countries
 Top Drives
• Invented portable Top Drive
• Created Top Drive rental market
• Will rent or sell Top Drives
 Hydraulic
 Electric
• Growing Aftermarket Sales
and Service business

Other
Other
Canrig

TESCO NOV
TESCO

Units Installed Rental Market 6

 Top Drive Market

Offshore Rigs Land Rigs

with Top Drives without Top Drives Land Rigs with
95% 75% Top Drives
25%

Offshore Rigs
without Top Drives
5%

Total Offshore Rigs Total Land Rigs

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

Total Rigs 700 3,050

• Expected offshore replacement / sale market growth of 5% per year
• Expected growth of land rig market 15% per year
• China & FSU are two large markets with minimal complements of top drives
_______________________ 7
Sources: IADC, CAODC, TESCO Research
 Top Drives

Operating Income

25 $20.4
Millions $ CAD

20
15 $9.5
10
5
0

1st 6 Months 2004 1st 6 Months 2005

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 Casing Services
CASING DRILLING®
• Integrated – drill entire well with retrievable tool system
• Interval – drill selected intervals; retrievable or non-retrievable
• Partnership with Baker Hughes for EZCase™ solution

Casing Running
• Proprietary Casing Running Service
 Game changing technology
 Quantum leap in safety profile
 Near term growth engine
• Conventional Casing Running
 Bo Gray and A&M Tubular
 N.E. Texas / N. Louisiana
 Recent SE Asia Acquisition

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Animation of CASING DRILLING® Technology

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 CASING DRILLING® Technology
What is it?
CONVENTIONAL CASING DRILLING®
• Simultaneously drill and case wells
DRILLING PROCESS PROCESS
• Trip bottom hole assemblies by
wireline instead of drill pipe
• Combines LWD/MWD and rotary
steerable technology
• Developed the only commercial
directional system in the market
• Drilled over 1.75 million feet and
over 240 wells
• Drilled onshore and offshore,
including 30 directional wells
• Deployed on both conventional
and “purpose built” rigs
Advantages
• Time savings
• Material savings
• Increases production through
reduced reservoir damage
• Solves wellbore instability problems
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 Casing Running
Conventional Proprietary
TESCO’s technology is a “Game
Changing” technology due to:

Safety – Elimination of high risk

“stabber” and power tong positions
Performance – Can rotate casing to
bottom through trouble zones,
improve cementing results
Reliability – Proven performance and
market acceptance
Flexibility – Adapts to all Top Drives
Efficiency – Cost reduction

nual, Labor Intensive

anual, Mechanized
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Animation of Proprietary Casing Running

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 Rapid Acceptance of TESCO’s
Casing Services

Proprietary Casing Running CASING DRILLING®

3,500,000 1,600,000

3,000,000 1,400,000

1,200,000

Cumulative Footage Drilled

2,500,000
Cumulative Footage Run

1,000,000
2,000,000
800,000
1,500,000
600,000

1,000,000
400,000

500,000 200,000

0 0
2002 2003 2004 2002 2003 2004

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 Casing Services

Operating Income
$8.4
10
Millions $ CAD

8
6
4
$2.3

2
0
1st 6 Months 2004 1st 6 Months 2005

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Financial Overview

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 Consolidated Income Statement
Millions $ CAD, except EPS
1st 6
Months 1st 6
Months
2002 2003 2004 2004 2005
$152. $106.
Revenue 4 $185.7 $179.1 $87.7 1

Operating income 1.2 0.1 6.5 1.2 13.1

Net Income (loss) (1.1) (24.4) (7.6) (1.4) 9.0
EPS (Basic and
(0.03) (0.71) (0.22) 0.00 0.26
Diluted)

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 Sheet
Millions $ CAD

Quarters ended 06/30/04 12/31/04 06/30/05

Cash $56.1 $18.9 $18.5

Debt 69.3 17.9 11.5

Net debt 13.2 (1.0) (7.0)

Equity 221.5 219.0 232.1

Debt / Total Cap 23.8% 7.6% 4.7%

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 Improving Free Cash Flow
Millions $ CAD
1st 6 1st 6
Months Months
2002 2003 2004 2004 2005

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

Depreciation 12.1 16.9 18.9 9.4 9.4

Cash Flow 11.0 (7.5) 11.3 8.0 18.4

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

Free Cash Flow (46.6) (31.5) 1.2 4.1 10.5

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

• Refocus Top Drive rental, sales and aftermarket business

• Capture high value offshore market for CASING DRILLING®

• Revolutionize the casing running process

• Instill fiscal discipline throughout the organization

• Improve return on capital employed

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 IPAA OGIS West
Oil & Gas Investment
Symposium
October, 2005