Investor Presentation

AltaCorp – ATB Investor Conference

January 2019

January 2019 Investor Presentation / Cathedral Energy Services 2

Forward Looking Statements

Certain statements in this presentation including (i) statements that contain words such as “anticipate”, “could”, “expect”, “seek”,

“may”, “intend”, “will”, “believe”, “should”, “project”, “forecast”, “plan” and similar expressions suggesting future outcomes, including

the negatives thereof, (ii) statements that are based on current expectations and estimates about the markets in which the

Cathedral operates 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

Cathedral. Forward-looking statements in this presentation include, but are not limited to, high performance directional drilling

services, deliver Better Performance Every Day, proprietary technology, partnership approach with our customers, CLAW motor

developments, focused on new motor models, performance advantages of motors, FUSION MWD developments, efficiency gains,

grow U.S. market share, growth opportunities in U.S. market, focus on U.S. market, pushing price increases, capacity constrained

in U.S. market, any reference to capital expenditures including the amount, nature and timing thereof, executing on operational

improvements, price increases and alternative pricing structures, customers being educated on operating limits, upgrading

equipment, continued focus on commercializing our proprietary technologies, demand for higher performance equipment,

executing on margin improvement opportunities, new capex facilitating revenue and growth opportunities, continued focus on

improving and growing the business, strong balance sheet facilitates future growth opportunities, favorable valuation and financial

metrics relative to industry peers, oil and natural gas prices and demand; and any other statements involving such matters. Such

forward-looking statements are subject to important risks and uncertainties, which are difficult to predict and that may affect

Cathedral’s 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 Cathedral’s 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 Cathedral and other factors, many of which are beyond the control of

Cathedral. Cathedral’s 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 Cathedral will derive from there.

Subject to applicable law, 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 Cathedral’s current Annual Information Form and Annual

Report which have been filed with Canadian provincial securities commissions and are available on www.sedar.com

January 2019 Investor Presentation / Cathedral Energy Services 3

Cathedral Overview

Established 1998

High performance directional drilling

services that deliver

“Better Performance Every Day”

Proprietary technology

Partnership approach with our

customers to help them achieve higher

drilling performance and lower project

costs

North American footprint - 80% of

revenue is U.S. based

January 2019 Investor Presentation / Cathedral Energy Services 4

Cathedral Snapshot

TSX: CET

TTM Financial Performance1

Market Statistics

Recent share price $0.75

52 week high / low $1.84 / $0.66

Shares outstanding (basic) 49.5 million

Valuation Metrics

Current market value $37 million

Enterprise value2 $39 million

Tangible book value per share $2.03

TTM EV/EBITDA multiple 2.8x

Ownership

Insiders 5.6%

Institutions ~40%

Notes: 1. Revenue and EBITDAS are for the 12 months ended Sept 30, 2018

2. Term Debt = $7.0 million, Cash = $4.8 million as at Sept 30, 2018

$156 MillionRevenue

$14 MillionEBITDAS

January 2019 Investor Presentation / Cathedral Energy Services 5

Geographical Focus

January 2019 Investor Presentation / Cathedral Energy Services 6

How we deliver “Better Performance Every Day”

Proprietary MWD

and Motor Platforms

• Experience

• Culture

• Training programs

• Health and Safety Program

Catalyst™ Engineering Services

Financial strength,

equipment fleet,

geographical footprint

Collaborate with our

customers to facilitate

improved drilling

performanceFUSION™ MWD

nDURANCE®

Motors

January 2019 Investor Presentation / Cathedral Energy Services 7

CLAW™ Motor Developments

Focused on new models that deliver specific

performance characteristics targeted at today’s

active programs in higher flow, deeper drilling

environments:

• Higher Rig Flow

• Higher Speed

• Higher Torque

Performance Advantages:

• More torque than standard industry motors

• Able to accommodate higher flow rates

and differential pressure.

• Suitable for drilling single-run wells

(surface shoe to TD)

• Able to leverage higher rig pump rates

January 2019 Investor Presentation / Cathedral Energy Services 8

FUSION™ MWD Developments

FUSION EM – optimized

design and materials enables

longer runs in aggressive

drilling fluids

FUSION EMc2 – integrates a mud-

driven downhole generator which

enables EM to continuously operate

at high power levels without fear of

depleting batteries, losing power

and having to trip • Higher power central data processing

unit (“brain”)

• Ruggedized chassis, latch connectors,

threaded barrel (“backbone”)

• Plug-and-play sensors and telemetry

options

FUSION RP – higher torque

rotary valve reduces industry-

wide jamming tendency and

enables pulse transmission in

higher flow, deeper

applications

FUSION LP – direct

actuated main shaft

capable of generating

large pulses detectable

throughout deeper

drilling operations

January 2019 Investor Presentation / Cathedral Energy Services 9

Recent U.S. Performance Achievements

PERMIAN:Cathedral's new 7" Claw 400 (HS)

delivering new levels of

performance in the Permian. 4,841

ft. drilled in 24hr and 20

continuous stands without any

slides in Wolfcamp formation.

2018

One run 11,467' curve and lateral

drilled with the 7" nDURANCE

CLAW in 156 drilling hrs with a TD

at 20,102 ft.

2018

One run curve and lateral drilled to

18,958 ft. with FUSION EMc2 High

Output Telemetry in the Permian.

2018

Another 7" CLAW success, drilling

to 4,489 ft. in 24 hours in the

Wolfcamp.

2018

Another successful run with the

nDURANCE 7" CLAW, drilling a

one run curve and lateral (11,366

ft. interval) with a TD at 19,696 ft.

in Spraberry.

2018

ROCKIES:RECORD RUN: The fastest well

recorded in the North Piceance,

6 day well spud to release.

2018

Our new 7.25" motor delivers

15% improvement in the

Niobrara, drilling a 8.5"

monobore to 12,070 ft. setting a

24 hr drilling record.

2018

MID CON:Utilizing the 5" CLAW, Cathedral

drills a 4,909 ft. lateral in 53.25

hrs with a TD of 12,640 ft. -- a

new level of performance in the

challenging Mississippi Lime.

2018

Cathedral's first successful one

run lateral to TD utilizing the

proprietary CLAW 250 (XT)

motor in Kingfisher County.

2018

Record for faster conventional

lateral in Meramec with our

nDURANCE Claw 250 (XT). 2

mile lateral in 67.75 drilling

hours.

2018

January 2019 Investor Presentation / Cathedral Energy Services 10

2018 YTD Overview

Following a strong 2017, Cathedral had a challenging first half of

2018

– Escalating costs (repairs, transport and labor)

– Customer and job mix impacted margins

– Extraordinary events in U.S. impacted Q2

Based on corrective actions taken in early Q2, Q3 financial results

improved

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3

EBIT

DAS

% o

f Rev

enue

Reve

nue

Revenue and EBITDAS(CAD)

US Rev Can Rev EBITDAS % of Revenue

January 2019 Investor Presentation / Cathedral Energy Services 11

2018 YTD Results

$118 MillionRevenue

$8.6 Million

EBITDAS

2018 – Q3 YTD Financial Performance

$7.0 Million

TERM DEBT

Day Rates Flattening

$4.8 Million

CASH

Targeted 2018 CapEx of $19 Million

Net CapEx after Lost in Hole Equipment Proceeds estimated at $6.5 million

-

2,000

4,000

6,000

8,000

10,000

12,000

2016Q3

2016Q4

2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

2018Q3

DD Revenue Day Rates

Cdn DR (CND) US DR (USD)

-

500

1,000

1,500

2,000

2,500

3,000

2016Q3

2016Q4

2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

2018Q3

DD Activity Days

Canada US

U.S. Activity Levels Improving

January 2019 Investor Presentation / Cathedral Energy Services 12

2018 Q3 Highlights

Closed Washington PA facility

– Efficiency gains by moving PA infrastructure to more active U.S. districts

– U.S. Northeast activity to be supported out of OKC

YTD CapEx of $13 million

– To end of October had deployed 92 – 7” / 7.25” Claw motors in U.S.

market

Technology

– Rolled out Cathedral Linear Pulse MWD tool

• High LCM tolerance and capable of higher pulse transmission speeds

– Continued design upgrades on FUSION EM and Dual Telemetry

platforms

• Enhanced vibration damping, High Torque rotary pulser, downhole power

generator, shorter string length

– Motor RPM sensor

• To augment downhole analytics capabilities

January 2019 Investor Presentation / Cathedral Energy Services 13

Summary

Growth opportunities in U.S. market we can capitalize on based on

our differentiated technology

Executing on margin improvement opportunities

New CapEx facilitating revenue and growth opportunities

Strong balance sheet facilitates future growth opportunities

Favorable valuation and financial metrics relative to industry peers

January 2019 Investor Presentation / Cathedral Energy Services 14

Contact Information

Scott MacFarlane, President and CEO

– Direct: 403.444.3534

– Email: smacfarlane@cathedralenergyservices.com /or/

smacfarlane@catnrg.com

January 2019 Investor Presentation / Cathedral Energy Services 15

Thank you