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Ensign Energy Services Inc. Proxy Solicitation & Information Statement 2020

Apr 9, 2020

42745_rns_2020-04-08_3e38a7b9-737d-49e4-8e8b-316b13d8951c.pdf

Proxy Solicitation & Information Statement

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�ENSIGN�

Management�Information�Circular�

2020�

drilling directional drilling well servicing

Ensign�Management�Information�Circular�|�2020�

NOTICE�OF�THE�ANNUAL�MEETING�OF�SHAREHOLDERS�OF�ENSIGN�ENEGY�SERVICES�INC.�

Date,�Place� The�annual�meeting�(the�“ Meeting ”)�of�the�shareholders�(“ Shareholders ”)�of�Ensign�Energy�Services� and�Time� Inc.�(the�“ Corporation ”)�will�be�held�on�Friday,�May�8,�2020,�at�3:00�p.m.�(Calgary�time)�at�the�Calgary� Petroleum�Club,�319�–�5th�Avenue�S.W.,�Calgary,�Alberta.�The�Meeting�will�have�the�following�purposes:�

  • Items�of� 1. To�receive�the�consolidated�financial�statements�of�the�Corporation�for�the�fiscal�year�ending� Business� December�31,�2019,�together�with�the�auditor’s�report�thereon;�

  • To�set�the�number�of�Directors�of�the�Corporation�at�nine�(9)�and�to�elect�Directors�to�hold�office� until�the�close�of�the�next�annual�meeting;�

  • To�appoint�auditors�of�the�Corporation�for�the�ensuing�fiscal�year�to�hold�office�until�the�close�of� the�next�annual�meeting;��

  • To�approve,�on�a�non�binding�advisory�basis,�the�Corporation’s�approach�to�executive� compensation,�as�described�in�the�Information�Circular;�and��

  • To�transact�such�other�business�as�may�be�properly�brought�before�the�Meeting�or�any� adjournment�thereof.�

The�specific�details�of�the�matters�proposed�to�be�put�before�the�Meeting�are�set�forth�in�the� accompanying�Information�Circular.��

Shareholders�who�cannot�be�present�in�person�at�the�Meeting�are�urged�to�complete,�sign�and�date� the�enclosed�Instrument�of�Proxy.�The�Instrument�of�Proxy�must�be�deposited�with�the�Secretary�of�the� Corporation,�care�of�Computershare�Trust�Company�of�Canada�at�100�University�Avenue,�9th�Floor,� Toronto,�Ontario,�M5J�2Y1,�not�later�than�3:00�p.m.�on�Wednesday,�May�6,�2020.�

Who�Can� Only�Shareholders�of�record�as�of�the�close�of�business�on�March�20,�2020�(the�“ Record�Date ”)�are� Vote� entitled�to�receive�notice�of�the�Meeting.�Shareholders�of�record�will�be�entitled�to�vote�those�Common� Shares�included�in�the�list�of�Shareholders�entitled�to�vote�at�the�Meeting�prepared�as�at�the�Record� Date,�unless�any�such�Shareholder�transfers�his�Common�Shares�after�the�Record�Date�and�the� transferee�of�those�Common�Shares�establishes�that�he�owns�the�Common�Shares�and�demands,�not� later�than�the�close�of�business�10�days�before�the�Meeting,�that�the�transferee’s�name�be�included�in� the�list�of�Shareholders�entitled�to�vote�at�the�Meeting,�in�which�case�such�transferee�shall�be�entitled� to�vote�such�Common�Shares�at�the�Meeting.�

In�light�of�public�health�recommendations�related�to�reducing�the�spread�of�coronavirus�(COVID�19),� we�strongly�encourage�shareholders�to�vote�by�proxy�rather�than�attending�the�Meeting�in�person.� To�this�end,�only��registered��shareholders��and��proxyholders�will�be�permitted�to�attend,�participate�� and��vote��in��the��business��of��the�Meeting. Persons�who�are�not�registered�shareholders�or� proxyholders�who�wish�to�attend�the�Meeting�as�a�registered�guest�should�request�permission�to�attend� in�advance�of�the�Meeting�via�email�to�[email protected],�by���telephone���at�(403)�262�1361�or�by� mail�to�Investor�Relations,�Ensign�Energy�Services�Inc.,�400�–�5[th] �Ave.�S.W.,�Suite�1000,�Calgary,�AB�T2P� 0L6.� Permission�to�attend�as�a�guest�may�be�withheld�if�the�number�of�persons�present�at�the�Meeting� does�not�fit�within�then�current�public�health�recommendations. �Other�persons�not�entitled�or� required�to�be�present�at�the�Meeting�may�be�admitted�only�with�the�consent�of�the�Chair�of�the� Meeting�or�with�consent�of�the�Meeting.�

WE�STRONGLY�ENCOURAGE�ALL�SHAREHOLDERS�TO�VOTE�ELECTRONICALLY�RATHER�THAN� ATTENDING�IN�PERSON.�

drilling directional drilling well servicing

Ensign�Management�Information�Circular�|�2020�

In�the�interest�of�protecting�the�health�and�safety�of�Ensign’s�shareholders,�our�employees�and�our� community,�we�may�adopt�screening�or�other�measures�for�identifying�COVID�19�symptoms�or�risk� factors�as�may�be�recommended�or�required�by�applicable�health�authorities�at�the�Meeting.�We�reserve� the�right�to�refuse�admission�to�a�Shareholder�or�proxyholder�seeking�to�attend�the�Meeting�but�who�we� believe�may�pose�a�health�risk�to�attendees�at�the�Meeting.�In�addition,�attendees�will�be�required�to� practice�social�distancing.�No�food�or�drinks�will�be�served�at�the�Meeting.�

In�order�to�permit�Shareholders�and�proxyholders�to�listen�to�the�Meeting�in�real�time,�without�having� to�attend�in�person,�a�conference�call�of�the�Meeting�will�be�available�as�follows:��

Conference�call�participation:�

  • North�America�Toll�Free:�1�888�231�8191�

  • Local�(Toronto):�647�427�7450�

  • Conference�ID:�9399373�

The�Meeting�will�also�be�able�to�be�heard�over�the�internet,�and�a�recording�of�the�conference�call�and� presentation�materials�will�be�available�for�listening�and�viewing�after�the�Meeting.�You�can�access�the� webcast�URL�to�listen�live�to�the�Meeting,�and�find�a�recording�of�the�conference�call�and�presentation� materials�after�the�Meeting,�through�our�website:��

https://www.ensignenergy.com/presentations

Shareholders�will�not�be�able�to�vote�through�the�conference�call ,�however,�there�will�be�a�question� and�answer�session�following�the�termination�of�the�formal�business�of�the�Meeting�during�which� Shareholders�attending�the�conference�call�can�ask�questions.��

In�light�of�changing�public�health�restrictions�and�recommendations�related�to�COVID�19,�there�may� be�changes�to�the�date,�time�and�location�of�the�Meeting.�Any�such�changes�will�be�communicated�by� news�release�which�will�be�made�available�under�the�Corporation’s�profile�on�SEDAR�at� www.sedar.com .

By�order�of�the�board�of�directors�of�Ensign�Energy�Services�Inc.�

DATED �at�the�City�of�Calgary,�in�the�Province�of�Alberta,�this�20[th] �day�of�March,�2020.�

BY�ORDER�OF�THE�BOARD�OF�DIRECTORS

Robert�H.�Geddes� President�&�Chief�Operating�Officer

Page�|�3�

Ensign�Management�Information�Circular�|�2020�

Important�Notice�regarding�Proxy�Materials�and�Notice�and�Access�Procedures�

The�Corporation�has�elected�to�use�the�notice�and�access�provisions�under�National�Instrument�54�101�and� National�Instrument�51�102�(“ Notice�and�Access ”)�for�distribution�of�the�meeting�materials�to�Shareholders.� Notice�and�Access�allows�the�Corporation�to�post�electronic�versions�of�its�proxy�related�materials�on�the� System�for�Electronic�Document�Analysis�and�Retrieval�(“ SEDAR ”)�and�on�its�website,�rather�than�mailing� paper�copies�to�Shareholders.�Shareholders�will�still�receive�this�Notice�of�Meeting�and�a�form�of�proxy�(or� voting�instruction�form�if�applicable)�and�may�choose�to�receive�a�paper�copy�of�the�meeting�materials�in� accordance�with�the�instructions�set�forth�below.��

The�meeting�materials�will�be�available�on�the�Corporation’s�website�at�www.ensignenergy.com as�of�March� 27,�2020.�The�meeting�materials�will�also�be�available�under�the�Corporation’s�profile�on�SEDAR�at� www.sedar.com as�of�March�27,�2020.�The�use�of�this�alternative�means�of�delivery�is�more�environmentally� friendly�as�it�will�help�reduce�paper�use�and�it�will�also�reduce�the�Corporation's�printing�and�mailing�costs.� Shareholders�are�reminded�to�review�the�meeting�materials�prior�to�voting.��

Any�Shareholder�who�wishes�to�receive�a�paper�copy�of�the�meeting�materials,�at�no�cost�to�them,�may�request� copies�from�the�Corporation�at�400�–�5[th] �Ave.�S.W.,�Suite�1000,�Calgary,�Alberta,�T2P�0L6,�Fax:�(403)�262�8215,� Toll�Free:�1�(877)�262�1361�or�by�email�at�[email protected].�A�Shareholder�may�also�use�this�toll�free� number�to�obtain�additional�information�about�how�Notice�and�Access�works.��

Requests�for�paper�copies�should�be�made�as�soon�as�possible,�but�must�be�received�no�later�than�April�6,� 2020�in�order�to�allow�sufficient�time�for�Shareholders�to�receive�and�review�the�meeting�materials�and�return� the�proxy�form�or�voting�instruction�form�prior�to�the�proxy�deadline.�Shareholders�who�are�unable�to�attend� the�meeting�in�person�are�requested�to�complete,�date�and�sign�the�enclosed�form�of�proxy�(or�voting� instruction�form,�as�applicable)�and�return�it,�in�the�envelope�provided,�to�Computershare�Trust�Company�of� Canada,�100�University�Avenue,�9th�Floor,�Toronto,�Ontario,�M5J�2Y1,�so�that�it�is�received�no�later�than�3:00� p.m.�(Calgary�time)�on�Wednesday�May�6,�2020.�

Page�|�4�

Ensign�Management�Information�Circular�|�2020�

Table�of�Contents�

Table�of�Contents�................................................................................................................................................�5 SECTION�1�–�PROXY�INFORMATION�.....................................................................................................................�7 Attendance�in�Person�...............................................................................................................................................�7 Attendance�by�Conference�Call�or�Webcast�............................................................................................................�8 Record�Date�.............................................................................................................................................................�8 Designation�of�Persons�Other�Than�Those�Set�Forth�in�the�Instrument�of�Proxy�....................................................�8 Beneficial�Holders�of�Shares�....................................................................................................................................�9 Voting�of�Common�Shares�Represented�by�Proxies�................................................................................................�9 Revocation�of�Proxies�............................................................................................................................................�10 SECTION�2�–�PARTICULARS�OF�MATTERS�TO�BE�ACTED�UPON�............................................................................�11 Number�of�Directors�..............................................................................................................................................�11 Election�of�Directors�..............................................................................................................................................�11 Majority�Director�Voting�...............................................................................................................................�18 Committees�...................................................................................................................................................�18 Meetings�of�the�Board�of�Directors�and�its�Committees�During�2019�...........................................................�19 Director�Tenure�..............................................................................................................................................�20 No�Common�Outside�Boards�.........................................................................................................................�20 Director�Equity�Ownership�Requirement�.......................................................................................................�21 Additional�Disclosures�Regarding�Directors�..................................................................................................�23 Appointment�of�Auditors�.......................................................................................................................................�23 Advisory�Vote�on�Executive�Compensation�(“Say�on�Pay”)�...................................................................................�24 SECTION�3�–�COMPENSATION�DISCUSSION�AND�ANALYSIS�................................................................................�25 Letter�to�Shareholders�from�the�Compensation�Committee�.................................................................................�25 Compensation�Discussion�&�Analysis�.....................................................................................................................�27 Board�of�Directors�Oversight�and�the�Compensation�Committee�.........................................................................�27 Compensation�Committee�Mandate�.....................................................................................................................�29 Compensation�Philosophy,�Principles�and�Objectives�...........................................................................................�29 Risk�Considerations�of�Executive�Compensation�...................................................................................................�30 Compensation�Benchmarking�Peer�Group.............................................................................................................�33 Performance�Peer�Group�.......................................................................................................................................�34 2020�Compensation�Program�Design�....................................................................................................................�35 NEO�Compensation�Components�–�Summary�.......................................................................................................�36 NEO�Compensation�Components�–�Detailed�Description�......................................................................................�37 Performance�Graph�...............................................................................................................................................�46 2019�Compensation�and�Pay�Mix�..........................................................................................................................�47 Compensation�Objective�Supported�......................................................................................................................�49 2019�Performance�of�the�NEO’s�............................................................................................................................�51 2019�Annual�Bonus�Calculation�–�Cash�Award�......................................................................................................�53 2019�PSUs�–�Achievement�of�Performance�Metrics�..............................................................................................�54 2019�Stock�Option�Grants�......................................................................................................................................�54 Looking�Ahead�to�2020�..........................................................................................................................................�55 Summary�Compensation�Table�..............................................................................................................................�55 Outstanding�Share�Based�Awards�and�Option�Based�Awards�...............................................................................�58

Page�|�5�

Ensign�Management�Information�Circular�|�2020�

Payout�of�2017�PSU�Awards�...................................................................................................................................�59 Calculation�of�Payout�Multiplier�............................................................................................................................�59 Incentive�Plan�Awards�–�Value�Vested�or�Earned�During�the�Year�........................................................................�60 Pension�Plan�Benefits�.............................................................................................................................................�61 Termination�and�Change�of�Control�Benefits�........................................................................................................�61 Executive�Equity�Ownership�Policy�........................................................................................................................�64 SECTION�4�–�DIRECTOR�COMPENSATION�...........................................................................................................�66 Director�Compensation�Philosophy�and�Objectives�..............................................................................................�66 Non�Management�Directors�–�Retainers�and�Fees:�...............................................................................................�67 Equity�Based�Compensation�–�Directors�DSU�Plan�and�Common�Share�Payment�Plan�........................................�68 2019�Directors�Summary�Compensation�Table�.....................................................................................................�69 Directors�Fees�–�Breakdown�..................................................................................................................................�71 Directors’�Outstanding�Share�Based�Awards�.........................................................................................................�71 Directors’�Incentive�Plan�Awards�–�Value�Vested�or�Earned�During�the�Year�.......................................................�72 SECTION�5�–�STATEMENT�OF�CORPORATE�GOVERNANCE�PRACTICES�..................................................................�74 Director�Independence�..........................................................................................................................................�74 Lead�Director..........................................................................................................................................................�75 Other�Issuer�Directorships�.....................................................................................................................................�75 “In�Camera”�Sessions�of�the�Independent�Directors�.............................................................................................�76 2019�Board�and�Committee�Meeting�Attendance�.................................................................................................�77 Board�Mandate�......................................................................................................................................................�77 Committees�and�Committee�Composition�............................................................................................................�78 Director�Skills�and�Experience�................................................................................................................................�78 Director�Orientation...............................................................................................................................................�80 Director�Education�.................................................................................................................................................�80 Director�Term�Limits�and�Other�Mechanisms�of�Board�Renewal�..........................................................................�82 Diversity�Policy�.......................................................................................................................................................�82 Ethical�Business�Conduct�.......................................................................................................................................�83 Independent�Judgment�of�Directors�......................................................................................................................�84 Nomination�of�Directors�........................................................................................................................................�85 Director�Compensation�..........................................................................................................................................�85 Board,�Board�Member�and�Committee�Assessments�............................................................................................�86 Mandatory�Share�Ownership�.................................................................................................................................�87 Communications�Policy�..........................................................................................................................................�87 Board�Approvals�and�Structure�..............................................................................................................................�87 SECTION�6�–�STOCK�OPTION�PLAN�.....................................................................................................................�88 Equity�Compensation�Plan�Information�As�At�December�31,�2019�.......................................................................�90 SECTION�7�–�OTHER�INFORMATION�...................................................................................................................�91 Voting�Securities�and�Principal�Holders�Thereof�...................................................................................................�91 Interest�of�Informed�Persons�in�Material�Transactions�.........................................................................................�91 Other�Matters�........................................................................................................................................................�91 Additional�Information�..........................................................................................................................................�92 SCHEDULE�1�–�BOARD�OF�DIRECTORS�MANDATE

Page�|�6�

Ensign�Management�Information�Circular�|�2020�

FOR�THE�ANNUAL�MEETING�OF�SHAREHOLDERS��

TO�BE�HELD�ON�FRIDAY,�MAY�8,�2020�

This�Information�Circular�is�dated�March�20,�2020.�

The�information�contained�in�this�Management�Information�Circular�(the�“ Information�Circular ”)�is� furnished�in�connection�with�the�solicitation�of�proxies�by�the�management�of�Ensign�Energy�Services�Inc.� (“ Ensign ”�or�the�“ Corporation ”)�for�use�at�the�2020�Annual�Meeting�(the�“ Meeting ”)�of�the�holders� (“ Shareholders ”)�of�common�shares�of�the�Corporation�(the�“ Common�Shares ”)�to�be�held�at�the�Calgary� Petroleum�Club,�319���5th�Avenue�S.W.,�Calgary,�Alberta,�on�Friday,�the�8[th] �day�of�May,�2020,�at�3:00�p.m.� (Calgary�time),�and�at�any�adjournments�thereof,�for�the�purposes�set�out�in�the�accompanying�Notice�of� the�Annual�Meeting�(the�“ Notice ”).�Although�it�is�expected�that�the�solicitation�of�proxies�will�be�primarily� by�mail,�proxies�may�also�be�solicited�personally�or�by�telephone,�or�other�means�of�communication�by� regular�employees�of�the�Corporation.�The�cost�of�any�such�solicitation�will�be�borne�by�the�Corporation.�

In�light�of�changing�public�health�restrictions�and�recommendations�related�to�COVID�19,�there�may�be� changes�to�the�date,�time�and�location�of�the�Meeting.�Any�such�changes�will�be�communicated�by�news� release�which�will�be�made�available�under�the�Corporation’s�profile�on�SEDAR�at�www.sedar.com .

SECTION�1�–�PROXY�INFORMATION�

Attendance�in�Person��

WE�STRONGLY�ENCOURAGE�ALL�SHAREHOLDERS�TO�VOTE�ELECTRONICALLY�BY�PROXY�RATHER�THAN� ATTENDING�IN�PERSON.

Ensign�acknowledges�and�continues�to�follow�the�restrictions�and�recommendations�regarding�large� gatherings�that�are�currently�in�place�due�to�the�novel�coronavirus�(COVID�19)�pandemic.�While�a� registered�Shareholder�may�attend�the�Meeting�in�person�or�may�be�represented�at�the�Meeting�by�proxy,� in�light�of�public�health�recommendations�to�reduce�the�spread�of�COVID�19,�we�strongly�encourage� registered�Shareholders�to�vote�by�completing�and�submitting�the�enclosed�Form�of�Proxy,�rather�than� attending�the�Meeting�in�person. �Only�registered�shareholders�and�proxyholders�will�be�permitted�to� attend�in�person,�participate�in�and�vote�in�the�business�of�the�Meeting.

In�the�interest�of�protecting�the�health�and�safety�of�Ensign’s�shareholders,�our�employees�and�our� community,�we�may�adopt�screening�or�other�measures�for�identifying�COVID�19�symptoms�or�risk�factors� as�may�be�recommended�or�required�by�applicable�health�authorities�at�the�Meeting.�We�reserve�the�right� to�refuse�admission�to�a�Shareholder�or�proxyholder�seeking�to�attend�the�Meeting�but�who�we�believe� may�pose�a�health�risk�to�attendees�at�the�Meeting.�In�addition,�attendees�will�be�required�to�practice� social�distancing.�No�food�or�drinks�will�be�served�at�the�Meeting.�

Page�|�7�

Ensign�Management�Information�Circular�|�2020�

Attendance�by�Conference�Call�or�Webcast�

In�order�to�permit�Shareholders�and�proxyholders�to�listen�to�the�Meeting�in�real�time,�without�having�to� attend�in�person,�a�conference�call�of�the�Meeting�will�be�available�as�follows:��

Conference�call�participation:�

  • North�America�Toll�Free:�1�888�231�8191�

  • Local�(Toronto):�647�427�7450�

  • Conference�ID:�9399373�

The�Meeting�will�also�be�able�to�be�heard�over�the�internet,�and�a�recording�of�the�conference�call�and� presentation�materials�will�be�available�for�listening�and�viewing�after�the�Meeting.�You�can�access�the� webcast�URL�to�listen�live�to�the�Meeting,�and�find�a�recording�of�the�conference�call�and�presentation� materials�after�the�Meeting,�through�our�website:��

https://www.ensignenergy.com/presentations

Record�Date�

The�persons�entitled�to�attend�and�vote�at�the�Meeting�or�to�be�represented�thereat�by�proxy�are�those� Shareholders�of�record�at�the�close�of�business�on�March�20,�2020�(the�“ Record�Date ”).�Shareholders�of� record�will�be�entitled�to�vote�those�Common�Shares�included�in�the�list�of�Shareholders�entitled�to�vote� at�the�Meeting�prepared�as�at�the�Record�Date,�unless�any�such�Shareholder�transfers�his�or�her�Common� Shares�after�the�Record�Date�and�the�transferee�of�those�Common�Shares�establishes�that�he�or�she�owns� the�Common�Shares�and�demands,�not�later�than�10�days�before�the�Meeting,�that�the�transferee's�name� be�included�in�the�list�of�Shareholders�entitled�to�vote�at�the�Meeting,�in�which�case�such�transferee�shall� be�entitled�to�vote�such�Common�Shares�at�the�Meeting.��

Designation�of�Persons�Other�Than�Those�Set�Forth�in�the�Instrument�of�Proxy��

The�persons�named�in�the�enclosed�Instrument�of�Proxy�to�represent�a�Shareholder�are�directors�or� officers�of�the�Corporation.� A�Shareholder�who�chooses�to�vote�by�submitting�an�Instrument�of�Proxy� has�the�right�to�appoint�a�person,�who�need�not�be�a�Shareholder�of�the�Corporation,�to�represent�such� Shareholder�at�the�Meeting�other�than�the�persons�designated�in�the�Instrument�of�Proxy�furnished� with�this�Information�Circular . Such�right�may�be�exercised�by�inserting�in�the�blank�space�provided�in�the� Instrument�of�Proxy�the�name�of�the�person�to�be�designated�or�by�completing�another�Instrument�of� Proxy�and,�in�either�case,�delivering�the�resulting�Instrument�of�Proxy�to�the�Secretary�of�the�Corporation,� care�of�Computershare�Trust�Company�of�Canada,�100�University�Avenue,�9th�Floor,�Toronto,�Ontario,� M5J�2Y1,�not�later�than�3:00�p.m.�(Calgary�time)�on�Wednesday,�May�6,�2020.��

WE�STRONGLY�ENCOURAGE�ALL�SHAREHOLDERS�TO�VOTE�ELECTRONICALLY�BY�PROXY�RATHER�THAN� ATTENDING�IN�PERSON.

Page�|�8�

Ensign�Management�Information�Circular�|�2020�

Beneficial�Holders�of�Shares��

The�information�set�forth�in�this�section�is�of�significant�importance�to�many�Shareholders�as�a�substantial� number�of�the�Shareholders�do�not�hold�Common�Shares�in�their�own�name.�Shareholders�who�do�not� hold�their�Common�Shares�in�their�own�name�(referred�to�herein�as�“ Beneficial�Shareholders ”)�should� note�that�only�proxies�deposited�by�Shareholders�whose�names�appear�on�the�records�of�the�Corporation� as�the�registered�holders�of�Common�Shares�can�be�recognized�and�acted�upon�at�the�Meeting.��

If�shares�are�listed�in�an�account�statement�provided�to�a�Shareholder�by�a�broker,�then�in�almost�all�cases� those�Common�Shares�will�not�be�registered�in�the�Shareholder's�name�on�the�records�of�the�Corporation.� Such�Common�Shares�will�more�likely�be�registered�under�the�name�of�the�Shareholder's�broker�or�an� agent�of�that�broker.�In�Canada,�the�vast�majority�of�such�shares�are�registered�under�the�name�of�CDS�&� Co.�(the�registration�name�for�The�Canadian�Depository�for�Securities�Limited,�which�acts�as�nominees�for� many�Canadian�brokerage�firms).�Common�Shares�held�by�brokers�or�their�nominees�can�only�be�voted� (for�or�against�resolutions)�upon�the�instructions�of�the�Beneficial�Shareholder.�Without�specific� instructions,�the�broker/nominees�are�prohibited�from�voting�Common�Shares�for�their�clients.�The� Corporation�does�not�know�for�whose�benefit�the�Common�Shares�registered�in�the�name�of�CDS�&�Co.� are�held.��

Applicable�regulatory�policy�requires�intermediaries/brokers�to�seek�voting�instructions�from�Beneficial� Shareholders�in�advance�of�shareholders�meetings.�Every�intermediary/broker�has�its�own�mailing� procedures�and�provides�its�own�return�instructions,�which�should�be�carefully�followed�by�Beneficial� Shareholders�in�order�to�ensure�that�their�Common�Shares�are�voted�at�the�Meeting.�Often,�the�form�of� proxy�supplied�to�a�Beneficial�Shareholder�by�its�broker�is�identical�to�the�form�of�proxy�provided�to� registered�Shareholders.�However,�its�purpose�is�limited�to�instructing�the�registered�Shareholder�how�to� vote�on�behalf�of�the�Beneficial�Shareholder.��

The�majority�of�brokers�now�delegate�responsibility�for�obtaining�instructions�from�clients�to�Broadridge� Financial�Solutions,�Inc.�(“ Broadridge ”).�Broadridge�typically�mails�a�scannable�Voting�Instruction�Form�in� lieu�of�the�Form�of�Proxy.�The�Beneficial�Shareholder�is�requested�to�complete�and�return�the�Voting� Instruction�Form�to�Broadridge�by�mail,�email�or�facsimile.�Alternatively�the�Beneficial�Shareholder�can� call�a�toll�free�telephone�number�to�vote�the�Common�Shares�held�by�the�Beneficial�Shareholder.� Broadridge�then�tabulates�the�results�of�all�instructions�received�and�provides�appropriate�instructions� respecting�the�voting�of�Common�Shares�to�be�represented�at�the�Meeting.�A�Beneficial�Shareholder� receiving�a�Voting�Instruction�Form�cannot�use�that�Voting�Instruction�Form�to�vote�Common�Shares� directly�at�the�Meeting�because�the�Voting�Instruction�Form�must�be�returned�as�directed�by�Broadridge� in�advance�of�the�Meeting�in�order�to�have�the�Common�Shares�voted.��

Voting�of�Common�Shares�Represented�by�Proxies��

The�Common�Shares�represented�by�proxy�will�be�voted�for,�against,�or�withheld�from�voting,�in� accordance�with�the�instructions�of�the�Shareholder�on�any�ballot�that�may�be�called�for,�and�if�the� Shareholder�specifies�a�choice�with�respect�to�any�matter�to�be�acted�upon,�the�Common�Shares�will�be� voted�accordingly.�If�no�choice�is�specified,�the�Common�Shares�represented�by�a�proxy�for�the�Meeting� will�be�voted�for�the�resolution�on�any�particular�resolution.��

Page�|�9�

Ensign�Management�Information�Circular�|�2020�

The�enclosed�Instrument�of�Proxy�confers�discretionary�authority�upon�the�persons�named�therein�with� respect�to�amendments�or�variations�of�any�resolution�voted�upon�at�the�Meeting�and�with�respect�to� other�matters�which�may�properly�be�brought�before�the�Meeting�or�any�adjournment�thereof.�At�the� time�of�printing�this�Information�Circular,�management�of�the�Corporation�knows�of�no�such�amendment,� variation�or�other�matter.��

WE�STRONGLY�ENCOURAGE�ALL�SHAREHOLDERS�TO�VOTE�ELECTRONICALLY�BY�PROXY�RATHER�THAN� ATTENDING�IN�PERSON.

Revocation�of�Proxies��

A�Shareholder�who�has�given�a�proxy�may�revoke�the�proxy,�at�any�time�prior�to�the�exercise�thereof.�If�a� person�who�has�given�a�proxy�attends�personally�at�the�Meeting,�such�person�may�revoke�the�proxy�and� vote�in�person.�In�addition�to�revocation�in�any�other�manner�permitted�by�law,�a�proxy�may�be�revoked� by�instrument�in�writing�executed�by�the�Shareholder�or�by�his�or�her�attorney�authorized�in�writing,�or�if� the�Shareholder�is�a�corporation,�under�its�corporate�seal�by�an�officer�or�attorney�thereof�duly� authorized.�The�revocation�of�proxy�must�be�deposited�with�the�Secretary�of�the�Corporation,�care�of� Computershare�Trust�Company�of�Canada,�100�University�Avenue,�9th�Floor,�Toronto,�Ontario,�M5J�2Y1,� or�at�the�corporate�office�of�the�Corporation�at�400���5th�Avenue�S.W.,�Suite�1000,�Calgary,�Alberta,�T2P� 0L6,�at�any�time�up�to�and�including�the�last�business�day�preceding�the�day�of�the�Meeting,�or�any� adjournment�thereof,�at�which�the�proxy�is�to�be�used,�or�with�the�Chairman�of�such�Meeting�on�the�date� of�the�Meeting�or�any�adjournment�thereof,�and�upon�any�of�such�deposits,�the�proxy�is�revoked.��

Page�|�10�

Ensign�Management�Information�Circular�|�2020�

SECTION�2�–�PARTICULARS�OF�MATTERS�TO�BE�ACTED�UPON�

To�the�knowledge�of�management�of�the�Corporation,�the�only�matters�to�be�placed�before�the�Meeting� are�those�matters�set�forth�in�the�Notice,�namely�to�set�the�number�of�Directors�of�the�Corporation�at� nine�(9),�to�elect�the�Directors�of�the�Corporation�for�the�ensuing�year,�to�appoint�the�Auditors�of�the� Corporation�for�the�ensuing�fiscal�year�and�a�non�binding�advisory�vote�with�respect�to�executive� compensation.��

The�resolutions�relating�to�the�Number�of�Directors,�the�Election�of�Directors�and�the�Appointment�of� Auditors�are�ordinary�resolutions�and�must�be�approved�by�in�excess�of�50%�of�the�votes�cast�by�the� Shareholders,�present�in�person�or�represented�by�proxy,�at�the�Meeting.���

Number�of�Directors�

The�affairs�of�the�Corporation�are�managed�by�a�Board�of�Directors�who�are�elected�annually�for�a�one�(1)� year�term�at�each�annual�meeting�of�Shareholders�and�who�hold�office�until�the�next�annual�meeting,�or� until�their�successors�are�duly�elected�or�appointed�or�until�a�Director�vacates�his�or�her�office�or�is� replaced�in�accordance�with�the�bylaws�of�the�Corporation.�The�Articles�of�the�Corporation�provide�that� the�Board�of�Directors�shall�consist�of�not�less�than�three�(3)�nor�more�than�fifteen�(15)�persons.��

Directors�who�have�celebrated�their�75[th] �birthday�may�not,�unless�the�remaining�Board�members�agree� to�a�specific�exception,�stand�for�election�as�a�Director�of�the�Corporation�(the�“ Director�Retirement� Policy ”).��

The�Board�presently�consists�of�nine�(9)�Directors�and�it�is�proposed�that�the�nine�(9)�current�Directors�be� re�elected�to�serve�on�the�Board�for�the�forthcoming�year.��

Election�of�Directors�

The�following�are�the�names�of�the�nine�(9)�proposed�nominees�for�election�as�Directors�of�the� Corporation:�

ion:
N.MurrayEdwards RobertH.Geddes GaryW.Casswell
JamesB.Howe LenO.Kangas CaryA.Moomjian,Jr.
JohnG.Schroeder GailD.Surkan BarthE.Whitham

The�persons�named�herein�have�been�nominated�for�election�and�have�consented�to�such�nomination.� The�current�Board�of�Directors�recommends�that�each�of�the�nominees�be�elected�to�serve�as�Directors� of�the�Corporation,�to�hold�office�until�the�next�annual�meeting�of�Shareholders�or�until�such�person’s� successor�is�elected�or�appointed.�As�you�will�note�from�the�enclosed�form�of�proxy�or�voting�instruction� form,�shareholders�may�vote�for�each�Director�individually.�In�addition,�the�Corporation�has�adopted�a� majority�director�voting�policy,�described�below.� If�no�choice�is�specified,�the�Common�Shares� represented�by�a�proxy�for�the�Meeting�will�be�voted�FOR�the�election�of�each�of�these�nominees .��

Page�|�11�

Ensign�Management�Information�Circular�|�2020�

The�current�Board�of�Directors�has�confirmed�that�Mr.�N.�Murray�Edwards�will,�subject�to�his�re�election� as�a�Director,�be�re�appointed�by�the�Board�of�Directors�as�Chairman�of�the�Board�of�Directors.�Each�such� Director’s�confirmation�and�Mr.�Edwards’�re�appointment�as�Chairman�are�subject�to�his�or�her�re�election� as�a�Director�by�the�Shareholders�at�the�Meeting.���

The�following�tables�set�forth�selected�information�for�each�of�the�proposed�Directors,�together�with�his� or�her�age,�principal�place�of�residence,�principal�occupation,�principal�directorships�with�other�boards,� date�first�elected�or�appointed�as�a�Director�of�the�Corporation,�whether�the�nominee�qualifies�as� independent,�the�Committee(s)�of�the�Board�on�which�the�nominee�serves,�the�number�of�Common� Shares�beneficially�owned,�or�controlled�or�directed�by�each�proposed�nominee�as�at�March�20,�2020�and� the�attendance�records�for�both�Board�and�Committee�meetings�held�in�2019.�All�nominees�are�currently� Directors�of�the�Corporation.�Certain�of�this�information,�not�being�within�the�knowledge�of�the� Corporation,�has�been�furnished�by�the�respective�nominees.��

==> picture [89 x 112] intentionally omitted <==

N.�Murray�Edwards��

Age:��60�

St.�Moritz,�Switzerland�� Director�since:�October� 1989�

Non�independent�–� management�(Chairman� of�Ensign)

Mr.�Edwards�is�an�investor�and�corporate�director.�Prior�to�December�2015,�he� was�the�President�of�Edco�Financial�Holdings�Ltd,�a�private�management�and� consulting�company.�He�is�currently�a�director�and�Chairman�of�Canadian�Natural� Resources�Limited,�a�publicly�traded�company�and�one�of�the�largest� independent�crude�oil�and�natural�gas�producers�in�the�world,�and�a�director�and� Chairman�of�Magellan�Aerospace�Corporation,�also�a�publicly�traded�company.� He�has�a�B.�Comm.�from�the�University�of�Saskatchewan�(Great�Distinction)�and� an�LL.B.�(Honours)�from�the�University�of�Toronto.�In�2007,�the�business�school� at�the�University�of�Saskatchewan�was�re�named�the�“N.�Murray�Edwards�School� of�Business”�in�recognition�of�his�support�of�the�school.�He�has�been�awarded� several�honorary�Doctor�of�Laws�degrees�from�prominent�Canadian�universities,� including�from�the�University�of�Calgary�(2004),�the�University�of�Saskatchewan� (2011),�and�the�University�of�Toronto�(2013),�in�each�case�in�recognition�of�his� achievements�in�business�and�support�of�educational,�cultural�and�community� organizations�and�institutions.��

Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Attendance: Attendance: Attendance: PublicBoardMemberships: PublicBoardMemberships: PublicBoardMemberships: PublicBoardMemberships:
MemberoftheBoard.
AsChairmanofEnsignandthereforenotan
independentdirector,Mr.Edwardsmayattendall
meetingsofBoardCommitteesbutasanon�voting
participantonly.
7/7(100%) CanadianNatural
ResourcesLimited
MagellanAerospace
Corporation
1988topresent
1995topresent
VotingResultsof2019AGM: NumberofVotes: %ofVotes:
VotesFor 102,150,842 88.03
VotesWithheld 13,891,688 11.97
TotalCompensation
Earnedin2019:(2)
Securities/DSUsHeld(directlyandindirectly)asatMarch20,2020:
Value CommonShares/
DSUs
TotalHoldings(Sharesand
DSUs)
MeetsMinimumShareholding
Requirement(3)
$1,740,238 31,582,085/N/A 31,582,085 Yes
OptionsHeldasatMarch20,2020:
Number AverageWeightedExercisePrice Exercisablein�the�MoneyOption
Value
Un�Exercisablein�the�MoneyOption
Value
737,000 $5.90 $0 $0

Page�|�12�

Ensign�Management�Information�Circular�|�2020�

==> picture [88 x 108] intentionally omitted <==

Robert�H.�Geddes�� Age:��63� Calgary,�Alberta,�Canada� Director�since:��March�2007� Non�independent�–� management�(President�&� Chief�Operating�Officer�of� Ensign)

Mr.�Geddes�has�been�with�the�Ensign�group�of�companies�since�1991�and�is� currently�the�President�&�Chief�Operating�Officer�of�the�Corporation,�a�position� he�has�held�since�January�1,�2007.�He�acted�as�Vice�President�Canadian�Drilling� from�1999�to�2004�and�President�Canadian�Operations,�from�2004�to�December� 31,�2006.�He�is�a�past�chairman�of�the�Canadian�Association�of�Oilwell�Drilling� Contractors�(CAODC),�currently�serves�as�Vice�Chair�of�the�International� Association�of�Drilling�Contractors,�and�is�a�member�of�the�Association�of� Professional�Engineers,�Geologists�and�Geophysicists�of�Alberta�(APEGGA).�He� holds�a�B.Sc.�in�Mechanical�Engineering�from�the�University�of�Alberta.�

Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Attendance: PublicBoardMemberships: PublicBoardMemberships:
MemberoftheBoard.
AsPresident&COOofEnsignandthereforenotan
independentdirector,Mr.Geddesmayattendallmeetings
ofBoardCommitteesbutasanon�votingparticipantonly.
7/7(100%) None
VotingResultsof2019AGM: NumberofVotes: %ofVotes:
VotesFor 115,827,073 99.81
VotesWithheld 215,457 0.19
TotalCompensation
Earnedin2019:(2)
Securities/DSUsHeld(directlyandindirectly)asatMarch20,2020:
Value CommonShares/
DSUs
TotalHoldings(Sharesand
DSUs)
MeetsMinimumShareholding
Requirement(3)
$2,449,554 943,842/N/A 943,842 Yes
OptionsHeldasatMarch20,2020:
Number AverageWeightedExercisePrice Exercisablein�the�MoneyOption
Value
Un�Exercisablein�the�MoneyOption
Value
737,000 $5.90 $0 $0

Page�|�13�

Ensign�Management�Information�Circular�|�2020�

==> picture [95 x 123] intentionally omitted <==

Gary�W.�Casswell�� Age:��67� Montgomery,� Texas,�USA� Director�since:�� December�2017�� Independent

Mr.�Casswell�is�a�retired�businessman�with�over�35�years�of�experience�as�a�senior� executive�in�the�onshore�and�offshore�drilling�industries.�His�industry�career�most� recently�included�tenure�as�the�President�&�Chief�Executive�Officer�of�Northern� Offshore�Ltd,�a�Bermuda�based�offshore�drilling�company,�listed�on�the�Oslo�Bors� stock�exchange.�Prior�to�that,�Mr.�Casswell�acted�as�the�Vice�President�of�Eastern� Hemisphere�Operations�for�Pride�International,�a�Houston,�Texas�based�drilling� company�that�was�acquired�by�Ensco�plc�(now�called�Valaris�plc)�in�2011.�Mr.� Casswell�has�lived�and�worked�extensively�throughout�the�Middle�East,�including� Kuwait,�Saudi�Arabia�and�Oman,�and�has�extensive�experience�in�the�United�States� land�drilling�market.�Mr.�Casswell�currently�serves�as�Chairman�of�the�Board�for� Northern�Drilling�Ltd,�a�Bermuda�based�offshore�drilling�company,�listed�on�the� Oslo�Bors�stock�exchange,�and�as�a�member�of�the�board�of�directors�for�Norther� Ocean�Ltd.,�also�listed�on�the�Oslo�Bors�stock�exchange.�He�obtained�a�Bachelor� of�Science�degree�in�Business�Administration�from�the�University�of�California,� Long�Beach�in�1980�and�is�a�member�of�the�Society�of�Petroleum�Engineers.�

Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Attendance:(6) PublicBoardMemberships: PublicBoardMemberships: PublicBoardMemberships:
MemberoftheBoard
MemberoftheCorporateGovernance,Nominations&Risk
Committee
ChairoftheHealth,Safety&EnvironmentCommittee
7/7(100%)
4/4(100%)
4/4(100%)
NorthernDrillingLtd.
NorthernOceanLtd.
2017topresent
2020topresent
VotingResultsof2019AGM: NumberofVotes: %ofVotes:
VotesFor 115,439,963 99.48
VotesWithheld 602,567 0.52
TotalCompensation
Earnedin2019:(4)
Securities/DSUsHeld(directlyandindirectly)asatMarch20,2020:
Value CommonShares/
DSUs
TotalHoldings(Sharesand
DSUs)
MeetsMinimumShareholding
Requirement(5)(6)
$180,500 40,000/46,953 86,953 N/A

==> picture [76 x 96] intentionally omitted <==

James�B.�Howe� Age:��70� Calgary,�Alberta,� Canada� Director�since:��June� 1987�

Independent

Mr.�Howe�is�President�of�Bragg�Creek�Financial�Consultants�Ltd.,�a�private�financial� consulting�company.�He�brings�extensive�corporate�board�experience�to�Ensign,� including�in�the�oil�and�natural�gas�and�related�service�industries,�together�with� significant�accounting,�finance�and�executive�compensation�expertise.�Over�his�40�year� career,�Mr.�Howe�has�served�as�Chief�Financial�Officer�of�several�public�companies�and� currently�serves�on�the�board�of�directors�and�audit�committee�of�Bengal�Energy�Ltd.,� and�on�the�board�of�directors,�audit�committee�and�compensation�committee�of�Pason� Systems�Inc.�Mr.�Howe�earned�a�B.A.�from�the�Ivey�School�of�Business�at�the�University� of�Western�Ontario�and�is�a�Chartered�Accountant.�He�is�a�member�of�the�Chartered� Professional�Accountants�of�Alberta.�

Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Attendance: Attendance: PublicBoardMemberships: PublicBoardMemberships: PublicBoardMemberships:
MemberoftheBoard
MemberoftheAuditCommittee
ChairoftheCompensationCommittee
7/7(100%)
6/6(100%)
5/5(100%)
BengalEnergyLtd.
PasonSystemsInc.
2005topresent
1997topresent
VotingResultsof2019AGM: NumberofVotes: %ofVotes:
VotesFor 112,771,986 97.18
VotesWithheld 3,270,544 2.82
TotalCompensation
Earnedin2019:(4)
Securities/DSUsHeld(directlyandindirectly)asatMarch20,2020:
Value CommonShares/
DSUs
TotalHoldings(Sharesand
DSUs)
MeetsMinimumShareholding
Requirement(5)
$179,500 468,490/25,916 494,406 Yes

Page�|�14�

Ensign�Management�Information�Circular�|�2020�

==> picture [80 x 96] intentionally omitted <==

Len�O.�Kangas� Age:��71� Red�Deer,�Alberta,� Canada� Director�since:�� June�1990� Independent

Mr.�Kangas�is�a�retired�businessman�and�oilfield�marketing�consultant�with�over�40� years�of�experience�in�oilfield�servicing,�transportation�and�related�businesses.�He�was� the�President�of�Mar�Len�Enterprises�Trucking�&�Rental�Company,�from�1992�until� 2006.�He�has�also�served�on�a�number�of�community�and�non�profit�boards.��

Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Attendance: PublicBoardMemberships:
MemberoftheBoard
ChairoftheCorporateGovernance,Nominations&Risk
Committee
MemberoftheHealth,Safety&EnvironmentCommittee
LeadDirector
7/7(100%)
4/4(100%)
4/4(100%)
None
VotingResultsof2019AGM: NumberofVotes: %ofVotes:
VotesFor 112,907,951 97.30
VotesWithheld 3,134,579 2.70
TotalCompensation
Earnedin2019:(4)
Securities/DSUsHeld(directlyandindirectly)asatMarch20,2020:
Value CommonShares/
DSUs
TotalHoldings(Sharesand
DSUs)
MeetsMinimumShareholding
Requirement(5)
$183,000 79,232/82,044 161,276 Yes

==> picture [81 x 102] intentionally omitted <==

Cary�A.�Moomjian�Jr.�� Age:�72� Frisco,�Texas,�USA�� Director�since:� November�2014�� Independent

Mr.�Moomjian�is�a�former�oil�and�gas�drilling�industry�executive�with�over�40�years� of�international�and�domestic�experience�in�legal,�contractual,�risk�management,� commercial�and�corporate�governance�activities�that�included�negotiation�of�land� and�offshore�drilling�contracts,�oilfield�service�and�supply�agreements,�joint�venture� relationships,�rig�construction�projects,�financings,�mergers�and�acquisitions.�He� acted�as�Vice�President,�General�Counsel�and�Secretary�to�ENSCO�International�Inc.� and�Ensco�plc�(now�called�Valaris�plc)�from�2002�until�2011,�and�prior�to�that�was� Vice�President,�General�Counsel�and�Secretary�of�Santa�Fe�International�Corporation.� He�has�a�B.�A.�( cum�laude )�from�Occidental�College�in�Los�Angeles,�CA�and�a�J.D.�(with� distinction)�from�the�Duke�University�School�of�Law�in�Durham,�North�Carolina.�He� has�been�a�member�of�the�California�and�Texas�State�bar�associations�since�1972�and� 1994�respectively.�He�has�been�a�prominent�member�of�and�contributor�to�the� International�Association�of�Drilling�Contractors�(IADC),�which�named�him� “Contractor�of�the�Year”�in�1996,�and�is�a�recognized�expert�on�drilling�contracts.��

Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Attendance: PublicBoardMemberships:
MemberoftheBoard
MemberoftheCompensationCommittee
MemberoftheCorporateGovernance,Nominations&
RiskCommittee
7/7(100%)
5/5(100%)
4/4(100%)
None
VotingResultsof2019AGM: NumberofVotes: %ofVotes:
VotesFor 115,416,978 99.46
VotesWithheld 625,552 0.54
TotalCompensation
Earnedin2019:(4)
Securities/DSUsHeld(directlyandindirectly)asatMarch20,2020:
Value CommonShares/
DSUs
TotalHoldings(Sharesand
DSUs)
MeetsMinimumShareholding
Requirement(5)
$177,500 362,048/66,434 428,482 Yes

Page�|�15�

Ensign�Management�Information�Circular�|�2020�

==> picture [83 x 103] intentionally omitted <==

John�G.� Schroeder�� Age:��73� Calgary,�Alberta,� Canada� Director�since:�� June�1990� Independent

Mr.�Schroeder�has�over�30�years�of�experience�in�the�oil�and�natural�gas�industry,�with� significant�accounting,�finance,�compliance�and�human�resources�expertise.�He�retired�on� July�31,�2009�from�his�position�as�Vice�President,�Finance�and�Chief�Financial�Officer�of� Parkland�Income�Fund�(now�called�Parkland�Fuel�Corporation),�a�public�petroleum� marketing�income�trust,�following�a�successful�22�year�career�with�that�company�during� which�he�played�a�key�role�in�its�growth.�Prior�to�joining�Parkland,�Mr.�Schroeder�was�Vice� President�Finance�for�Geocrude�Energy�Inc.�and�Vice�President�Finance�and� Administration�for�Pancana�Minerals�Inc.�Mr.�Schroeder�earned�a�B.�Comm.,�with� Honours,�from�the�University�of�Manitoba�and�is�a�Chartered�Accountant.�He�is�a�member� of�the�Chartered�Professional�Accountants�of�Alberta.�

Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Attendance: Attendance: PublicBoardMemberships:
MemberoftheBoard
ChairoftheAuditCommittee
MemberoftheCompensationCommittee
7/7(100%)
6/6(100%)
5/5(100%)
None
VotingResultsof2019AGM: NumberofVotes: %ofVotes:
VotesFor 113,398,185 97.72
VotesWithheld 2,644,345 2.28
TotalCompensation
Earnedin2019:(4)
Securities/DSUsHeld(directlyandindirectly)asatMarch20,2020:
Value CommonShares/
DSUs
TotalHoldings(Sharesand
DSUs)
MeetsMinimumShareholding
Requirement(5)
$185,000 18,376/121,148 139,524 Yes

==> picture [83 x 103] intentionally omitted <==

Gail�D.�Surkan� Age:��72� Red�Deer,� Alberta,�Canada� Director�since:�� March�2006� Independent

Ms.�Surkan�is�a�retired�businesswoman�with�30�years�of�experience�in�economic�and� human�resource�development,�strategic�leadership�and�governance.�She�was�a�four�term� mayor�of�Red�Deer,�Alberta,�from�1992�to�2004.�Ms.�Surkan�was�a�founding�director�of�ATB� Financial,�where�she�served�for�nine�years�and�chaired�the�Human�Resources�Committee.� She�also�served�as�the�chair�of�the�Alberta�Heritage�Foundation�for�Medical�Research�for� four�years.�Ms.�Surkan�has�served�on�the�boards�of�numerous�other�private,�crown� corporation�and�non�profit�organizations.�These�include�Agriculture�Financial�Services� Corporation�and�Canada�West�Foundation�where�she�chaired�the�Governance� Committees.�She�chaired�the�Governance�Committee�for�the�2019�Canada�Winter�Games.� In�addition�to�her�extensive�board�experience,�Ms.�Surkan�has�significant�expertise�in� business�and�organizational�strategy,�executive�recruitment�and�human�resources.�She�has� a�Bachelor�of�Economics�from�the�University�of�Saskatchewan.�Ms.�Surkan�continues�to�be� very�active�at�the�community�level�and�is�an�Honorary�Colonel�(retired)�for�the�20[th] �Field� Regiment�of�the�Canadian�Forces.�

Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Attendance: PublicBoardMemberships:
MemberoftheBoard
MemberoftheCompensationCommittee
MemberoftheCorporateGovernance,Nominations&
RiskCommittee
7/7(100%)
5/5(100%)
4/4(100%)
None
VotingResultsof2019AGM: NumberofVotes: %ofVotes:
VotesFor 115,403,034 99.45
VotesWithheld 639,496 0.55
TotalCompensationEarnedin
2019:(4)
Securities/DSUsHeld(directlyandindirectly)asatMarch20,2020:
Value CommonShares/
DSUs
TotalHoldings(Sharesand
DSUs)
MeetsMinimumShareholding
Requirement(5)
$170,000 55,319/66,479 121,798 Yes

Page�|�16�

Ensign�Management�Information�Circular�|�2020�

==> picture [84 x 107] intentionally omitted <==

Barth�E.� Whitham� Age:��63� Denver,� Colorado,�USA�� Director�since:�� March�2007� Independent

Since�2004,�Mr.�Whitham�has�been�the�President�&�Chief�Executive�Officer�of�Enduring� Resources,�LLC,�a�private�Denver�based�company�with�exploration�and�production� operations�onshore�United�States.�He�also�serves�as�a�director�for�that�company.�In�1991� he�co�founded�Westport�Oil�and�Gas,�which�went�public�as�Westport�Resources�Corp.,�an� upstream�energy�company�listed�on�the�NYSE,�and�served�as�its�President�&�Chief� Operating�Officer�from�1991�until�2004,�when�it�merged�with�Anadarko�Petroleum� Corporation.�He�also�served�on�the�Board�of�Directors�for�Westport�Resources�Corp.�Prior� to�Westport,�Mr.�Whitham�worked�extensively�in�the�upstream�United�States,� international�and�offshore�energy�industry�in�project�planning,�development�and� operations.�He�has�a�B.Sc.�in�Petroleum�Engineering,�an�M.Sc.�in�Economics�from�the� Colorado�School�of�Mines,�and�is�a�Registered�Professional�Engineer.�Mr.�Whitham�serves� on�the�Audit�and�Governance�committee�of�Intrepid�Potash�and�chairs�the�Compensation� committee.�He�is�currently�Board�Chair�of�Children’s�Hospital�Colorado�and�its�Health� System.�He�is�a�past�director�for�the�Society�of�Petroleum�Engineers.�

Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Board/CommitteeMembership:(1) Attendance: PublicBoardMemberships: PublicBoardMemberships:
MemberoftheBoard
MemberoftheAuditCommittee
MemberoftheHealth,Safety&EnvironmentCommittee
7/7(100%)
5/6(83%)
4/4(100%)
IntrepidPotashInc.
QEPResources,Inc.
2008–present
2019–present
VotingResultsof2019AGM: NumberofVotes: %ofVotes:
VotesFor 115,756,924 99.75
VotesWithheld 285,606 0.25
TotalCompensation
Earnedin2019:(4)
Securities/DSUsHeld(directlyandindirectly)asatMarch20,2020:
Value CommonShares/
DSUs
TotalHoldings(Sharesand
DSUs)
MeetsMinimumShareholding
Requirement(5)
$176,500 108,203/0 108,203 Yes

(1) As�at�December�31,�2019.�

(2) For�further�details�on�the�compensation�earned�by�the�Chairman�and�the�President�&�Chief�Operating�Officer�of�the�Corporation,� please�see�the�section�of�this�Information�Circular�entitled�“Compensation�Discussion�and�Analysis”.�

(3) For�further�details�on�the�minimum�shareholding�requirement�for�the�Chairman�and�the�President�&�Chief�Operating�Officer�of�the� Corporation,�please�see�the�section�of�this�Information�Circular�entitled�“Compensation�Discussion�and�Analysis�–�Mandatory� Executive�Share�Ownership�Guidelines”.�

(4) For�further�details�on�the�compensation�earned�by�Directors,�please�see�the�section�of�this�Information�Circular�entitled�“Director� Compensation”.�

(5) For�further�details�on�the�minimum�shareholding�requirement�applicable�to�Directors�who�are�not�members�of�Management,�please� see�the�section�of�this�Information�Circular�entitled�“Director�Equity�Ownership�Requirements”.�

(6) Mr.�Casswell�has�until�December�2022�to�meet�our�share�ownership�requirement.�

Independent ”�in�the�tables�above�refers�to�the�standards�of�independence�established�under�Section�1.2� of�the�Canadian�Securities�Administrators’�National�Instrument�58�101�(Disclosure�of�Corporate� Governance�Practices).��

Page�|�17�

Ensign�Management�Information�Circular�|�2020�

Majority�Director�Voting��

On�March�14,�2008,�the�Board�adopted�a�policy�whereby�the�election�of�director�nominees�by� shareholders�in�an�uncontested�election�shall�be�by�majority�vote.�A�director�nominee�who�receives�less� than�50%�of�the�votes�cast�in�favour�of�the�election�of�the�director�nominee�shall�forthwith�submit�to�the� Board�his�or�her�resignation,�to�take�effect�upon�acceptance�by�the�Board.�The�Board�shall�exercise� discretion�in�considering�any�such�resignation�of�the�director�nominee.�If�it�is�deemed�to�be�in�the�best� interests�of�the�Corporation�and�the�Shareholders,�and�absent�any�extenuating�circumstances�deemed�by� the�Board�to�exist,�the�Board�shall�accept�such�resignation�within�90�days�of�having�received�the� resignation�of�the�director�nominee.��

In�2016,�this�policy�was�updated�to�include�the�following�additional�requirements:��

  • A�director�who�tenders�a�resignation�pursuant�to�the�policy�will�not�participate�in�any�meeting�of� the�board�or�any�sub�committee�of�the�board�at�which�the�resignation�is�considered;�

  • A�news�release�will�be�promptly�issued�with�the�board's�decision�regarding�the�tendered� resignation�of�the�director;�

  • A�copy�of�the�news�release�with�the�board’s�decision�will�be�provided�to�TSX;�and�

  • If�the�board�determines�not�to�accept�a�resignation,�the�news�release�must�fully�state�the�reasons� for�that�decision.��

Committees��

The�Board�of�Directors�currently�has�four�(4)�Committees:�

1. Audit�Committee;�

2. Compensation�Committee;

3. Corporate�Governance,�Nominations�&�Risk�Committee;�and��

4. Health,�Safety�&�Environment�Committee.�

Throughout�2019�and�as�at�March�20,�2020,�the�Board�of�Directors�was�comprised�of�nine�(9)�members,� all�of�whom�are�standing�for�re�election�at�the�Meeting.�Membership�of�the�Board�Committees�(comprised� exclusively�of�independent�Directors)�is�currently�as�follows:�

Page�|�18�

Ensign�Management�Information�Circular�|�2020�

Committees Committees
Independent
Director
Year
Appointed
Audit Compensation Governance,
Nominations
&Risk
Health,Safety
&Environment
Casswell,GaryW. 2017 X Chair
Howe,JamesB. 1987 X Chair
Kangas,LenO. 1990 Chair X
MoomjianJr.,CaryA. 2014 X X
Schroeder,JohnG. 1990 Chair X
Surkan,GailD. 2006 X X
Whitham,BarthE. 2007 X X

Meetings�of�the�Board�of�Directors�and�its�Committees�During�2019��

The�individual�attendance�record�for�meetings�of�the�Board�of�Directors�and�its�committees�is�set�forth�in� the�tables�above�and�in�the�section�of�this�Information�Circular�entitled�“Statement�of�Corporate� Governance�Practices”.�

The�overall�average�attendance�for�all�meetings�of�the�Board�of�Directors�and�its�committees�held�in� 2019�was�99.2%.

Page�|�19�

Ensign�Management�Information�Circular�|�2020�

Director�Tenure�

Other�than�in�connection�with�the�Director�Retirement�Policy,�Ensign�does�not�currently�have�a�policy�for� Director�term�limits.�The�Board�of�Directors�believes�it�is�critical�that�all�Directors�have�a�comprehensive� understanding�of�the�Corporation’s�business,�and�that�such�an�understanding�is�achieved�through�and� enhanced�by�length�of�tenure.�While�new�Directors�may�bring�fresh�perspectives�and�new�experience,� Directors�who�have�served�for�several�years�accumulate�valuable�knowledge�regarding�our�business,� including�industry�trends�and�cycles,�market�conditions�and�geo�political�influences.��

The�nominees�for�election�to�the�Board�of�Directors�include�individuals�having�served�between�two�(2)� and�up�to�33�years�as�a�Director�of�the�Corporation,�as�categorized�below:��

Tenure #ofDirectors Director
0–5years 1 GaryW.Casswell
6–10years 1 CaryA.Moomjian,Jr.
Geddes,RobertH.
11–15years 3 Surkan,GailD.
Whitham,BarthE.
16–20years 0 N/A
Edwards,N.Murray
21+years 4 Howe,JamesB.
Kangas,LenO.
Schroeder,JohnG.

The�average�age�of�the�Corporation’s�Directors�as�of�the�date�of�this�Information�Circular�is�67.9�years.��

No�Common�Outside�Boards��

As�of�the�date�of�this�Information�Circular,�no�two�or�more�of�the�Corporation’s�directors�were�serving� together�on�any�other�board�of�directors.�

Page�|�20�

Ensign�Management�Information�Circular�|�2020�

Director�Equity�Ownership�Requirement�

With�a�view�to�aligning�the�non�management�Directors�interests�with�those�of�the�Shareholders,�the� Corporation�has�implemented�a�requirement�that�such�Directors�acquire�and�hold�Common�Shares�and/or� DSUs�with�a�minimum�aggregate�value�equal�to�three�(3)�times�the�base�annual�cash�and�equity�retainer,� within�five�(5)�years�of�their�initial�appointment�as�a�Director.�

The�minimum�equity�ownership�requirement�for�2019,�based�on�a�multiple�of�three�(3)�times�the�base� annual�cash�and�equity�retainer�as�at�December�31,�2019,�was�Common�Shares�and/or�DSUs�having�a�value� of�$420,000,�an�increase�over�2018�level�of�$378,000.��

Once�the�applicable�threshold�is�met,�further�purchases�are�not�required�if�the�value�of�the�Common� Shares�held�decreases�solely�as�a�result�of�a�decline�in�the�market�value�of�the�Common�Shares.�However,� if�the�value�decreases�for�any�other�reason�(i.e.�sale�of�Common�Shares),�such�Director�would�be�required� to�increase�the�value�of�his�or�her�holdings�to�achieve�the�required�threshold.��

To�avoid�the�need�to�continuously�monitor�and�adjust�the�value�of�holdings�based�on�fluctuations� in�the�market�price�of�the�Common�Shares,�for�purposes�of�the�minimum�equity�ownership� requirement�applicable�to�the�Corporation’s�non�management�Directors,�the�value�of�holdings�is� calculated�based�on�the�greater�of:��

  • i. The�current�market�value�of�the�Common�Shares;��

  • ii. The�market�value�of�the�Common�Shares�as�at�December�31�of�the�immediately�preceding� year;�or�

  • iii. The�acquisition�cost�of�each�Director’s�holdings.��

Throughout�2019�and�as�at�March�20,�2020,�each�Director�being�nominated�for�election�at�the�Meeting,� and�subject�to�the�minimum�equity�ownership�requirement,�has�met�the�minimum�equity�ownership� requirement,�based�on�one�or�more�of�the�permitted�calculation�methods,�as�demonstrated�below:�

2019Requirement:Valueof$420,000 2019Requirement:Valueof$420,000
HoldingsasatDecember31,2019 HoldingsasatMarch20,2020
Name (DSUs+CommonShares) (DSUs+CommonShares) MeetsRequirement(1)(2)
Casswell,GaryW. 58,162 86,953 N/A
Howe,JamesB. 492,073 494,406 Yes–AcquisitionCost
Kangas,LenO. 159,757 161,276 Yes–AcquisitionCost
MoomjianJr.,CaryA. 108,195 428,482 Yes–AcquisitionCost
Schroeder,JohnG. 137,191 139,524 Yes–AcquisitionCost
Surkan,GailD. 120,602 121,798 Yes–AcquisitionCost
Whitham,BarthE. 108,203 108,203 Yes–AcquisitionCost
TOTAL: 1,184,183 1,540,642

(1) Based�on�the�acquisition�cost�of�holdings�that�exceed�both�current�market�value�and�the�equity�ownership�requirement.�

(2) All�Directors�except�for�Mr.�Casswell,�who�was�appointed�to�the�Board�of�Directors�on�December�4,�2017,�have�been�on�the�Board� of�Directors�for�five�(5)�or�more�years�and�are�therefore�subject�to�the�requirement.�

Page�|�21�

Ensign�Management�Information�Circular�|�2020�

As�at�March�20,�2020,�the�non�management�Directors�being�nominated�for�election�at�this�Meeting�hold� an�aggregate�of�1,131,668�Common�Shares�and�408,974�DSUs.�The�Common�Shares�of�the�non� management�Directors�represent�0.69%�of�the�issued�and�outstanding�Common�Shares�as�at�that�date.� Management�Directors�have�separate�share�ownership�requirements.��

Cumulatively,�non�management�and�management�Directors�hold�a�total�of�34,066,569�Common�Shares� representing�20.63%�of�the�issued�and�outstanding�Common�Shares.�

The�Director�equity�ownership�requirement�is�reviewed�periodically�by�the�Corporate�Governance,� Nominations�&�Risk�Committee�to�ensure�that�the�level�is�appropriate�to�demonstrate�commitment�to� Ensign’s�success,�in�view�of�Common�Share�value�and�the�current�level�of�compensation�being�provided� to�non�management�Directors.�

In�addition�to�equity�ownership,�the�following�Directors�(including�the�non�independent�Directors)�hold� convertible�debentures,�issued�March�29,�2018�and�maturing�on�January�31,�2022,�in�the�following� principal�amounts:��

edebentures,issuedMarch
mounts:
29,2018andmaturingonJanuary31,2022,
Director PrincipalAmountofConvertibleDebenture
Edwards,N.Murray $20,000,000
Geddes,RobertH. $200,000
Howe,JamesB. $500,000
Moomjian,CaryA. $250,000
Whitham,BarthE. $5,000,000
TOTAL: $25,950,000

These�convertible�debentures,�of�which�$37,000,000�are�outstanding,�bear�interest�at�7.0%�per�annum,� payable�semi�annually�in�arrears,�on�April�1�and�October�1�of�each�year,�and�are�convertible�at�the�option� of�the�holder�into�Common�Shares�at�any�time�prior�to�the�close�of�business�on�the�maturity�date�upon�at� least�61�days�prior�notice,�at�a�conversion�price�of�$7.00�per�Common�Share.�These�debentures�are� descriebd�in�further�detail�in�the�Corporation’s�financial�statements�for�the�year�ended�December�31,� 2019,�available�on�SEDAR�at www.sedar.com.

Page�|�22�

Ensign�Management�Information�Circular�|�2020�

Additional�Disclosures�Regarding�Directors�

To�the�knowledge�of�the�Corporation,�in�the�last�ten�years,�none�of�the�above�named�nominees�is�or�has� been:�(i)�a�director,�chief�executive�officer�or�chief�financial�officer�of�any�other�issuer�that,�while�that� person�was�acting�in�that�capacity�or�which�resulted�from�an�event�which�occurred�while�that�person�was� acting�in�such�capacity,�was�the�subject�of�a�cease�trade�order�or�similar�order,�or�an�order�that�denied� the�other�issuer�access�to�any�exemptions�under�Canadian�securities�legislation,�for�a�period�of�more�than� 30�consecutive�days;�or�(ii)�a�director�or�executive�officer�of�any�company�that,�while�such�person�was� acting�in�such�capacity,�or�within�one�year�of�that�person�ceasing�to�act�in�that�capacity,�became�bankrupt,� made�a�proposal�under�any�legislation�relating�to�bankruptcy�or�insolvency,�or�was�subject�to�or�instituted� any�proceedings,�arrangement�or�compromise�with�creditors,�or�had�a�receiver,�receiver�manager�or� trustee�appointed�to�hold�its�assets.��

Furthermore,�to�the�knowledge�of�the�Corporation,�in�the�last�ten�years,�no�director�or�officer�of�the� Corporation,�or�a�Shareholder�holding�a�sufficient�number�of�securities�of�the�Corporation�to�affect� materially�the�control�of�the�Corporation,�has�become�bankrupt,�made�a�proposal�under�any�legislation� relating�to�bankruptcy�or�insolvency,�or�became�subject�to�or�instituted�any�proceedings,�arrangement�or� compromise�with�creditors,�or�had�a�receiver,�receiver�manager�or�trustee�appointed�to�hold�his�or�her� assets.�

Appointment�of�Auditors�

The�Shareholders�will�be�asked�to�consider�an�ordinary�resolution�to�appoint�the�firm�of� PricewaterhouseCoopers�LLP�as�auditors�of�the�Corporation,�to�hold�office�until�the�next�annual�meeting� of�the�Shareholders�and�to�authorize�the�Board�of�Directors�to�fix�their�remuneration.��

Total�fees�for�audit�and�audit�related�services�for�the�Corporation’s�fiscal�year�ended�December�31,�2019� were�$1,303,370�(2018�–�$685,350).�For�more�information�relating�to�auditors’�fees,�reference�is�made�to� the�Annual�Information�Form�dated�March�12,�2020,�under�the�heading�“Audit�Committee�Disclosures”,� which�is�hereby�incorporated�by�reference�and�which�can�be�found�on�SEDAR�at� www.sedar.com�or� obtained�free�of�charge�by�any�shareholder�from�the�Corporate�Secretary�of�the�Corporation�at�400�–�5th� Avenue�S.W.,�Suite�1000,�Calgary,�Alberta,�T2P�0L6.�

Page�|�23�

Ensign�Management�Information�Circular�|�2020�

Advisory�Vote�on�Executive�Compensation�(“Say�on�Pay”)��

The�Board�has�resolved�to�hold�a�“Say�on�Pay”�vote�on�the�Corporation’s�approach�to�executive� compensation�at�each�annual�meeting�of�Shareholders.�At�the�Meeting,�Shareholders�will�be�asked�to�cast� an�advisory�vote�on�the�Corporation’s�approach�to�executive�compensation.�Ensign’s�approach�to� compensation�paid�to�its�NEOs�is�described�in�detail�under�the�heading�“Compensation�Discussion�and� Analysis”.�

The�Board�believes�that�this�advisory�vote�will�continue�to�assist�Ensign�in�its�dialogue�with�our� Shareholders�about�governance�and�other�matters�relating�to�executive�compensation.�The�results� of�the�“Say�on�Pay”�vote�will�be�non�binding�on�the�Board. However, the�vote�is�an�important�part� of�our�engagement�with�Shareholders�with�respect�to�executive�compensation .

Shareholders�are�encouraged�to�review�the�discussion�about�Ensign’s�executive�compensation�under�the� heading�“Compensation�Discussion�and�Analysis”�to�cast�an�informed�vote.�

At�the�Meeting,�Shareholders�will�be�asked�to�vote�for�or�against�the�following�non�binding,�advisory� resolution�concerning�Ensign’s�approach�to�executive�compensation:��

“BE�IT�RESOLVED,�on�an�advisory�basis�and�not�to�diminish�the�role�and�responsibilities� of�the�Board�of�Directors�of�Ensign�Energy�Services�Inc.�(“Ensign”)�or�its�committees,� that�the�Shareholders�of�Ensign�accept�the�approach�to�executive�compensation� disclosed�in�Ensign’s�Information�Circular�dated�March�20,�2020�and�delivered�in� advance�of�the�2020�annual�meeting�of�Shareholders.”�

As�this�is�an�advisory�vote,�the�results�will�not�be�binding�upon�the�Board.�However,�the�Board�will�take� the�voting�results�and�other�Shareholder�feedback�into�consideration�when�evaluating�the�Corporation’s� approach�to�executive�compensation,�including�discretionary�awards.�The�Board�and�the�Compensation� Committee�of�the�Board�actively�monitor�trends�relating�to�compensation�and�governance�of� compensation�to�ensure�executive�management�is�aligned�with�Shareholder�interests�and�incentivized�to� act�in�the�best�interests�of�Ensign.�

At�our�annual�meeting�held�in�2019,�90.94%�of�the�shares�voted�were�in�favour�of�our�approach�to� executive�compensation.�

Page�|�24�

Ensign�Management�Information�Circular�|�2020�

SECTION�3�–�COMPENSATION�DISCUSSION�AND�ANALYSIS��

Ensign�strives�to�continually�refine�and�improve�our�compensation�programs�and�associated� disclosure.

Letter�to�Shareholders�from�the�Compensation�Committee��

Fellow�Shareholders,��

We�are�pleased�to�present�Ensign’s�Compensation�Discussion�&�Analysis�(“ CD&A ”)�with�respect�to�the� compensation�paid�to�our�Named�Executive�Officers�in�2019.�This�section�will�help�you�understand�our� compensation�philosophy,�practices�and�approach�to�executive�compensation,�both�in�2019�and�for�the� current�year.�

Beginning�in�2016,�the�Board�of�Directors�has�annually�offered�Shareholders�an�advisory�vote�on�executive� compensation.�Although�we�are�continually�reviewing�and�refining�our�compensation�program�design,�we� specifically�consider�the�outcome�of�such�advisory�votes�in�determining�whether�and�when�further� improvements�could�be�made�to�certain�elements�of�our�compensation�program�design�and�disclosure.� The�results�of�each�prior�advisory�vote�have�been�carefully�considered,�as�will�the�results�from�our�2020� Meeting.�

The�most�recent�significant�improvements�made�to�our�medium�and�long�term�compensation�programs� were�implemented�in�2017.�At�that�time:�we�implemented�a�“Performance�Share�Unit�Plan”�(the�“ PSU� Plan ”);�we�re�aligned�the�weighting�of�medium�and�long�term�compensation�such�that�more�emphasis�is� now�placed�on�PSUs�than�on�stock�options;�we�amended�our�stock�option�plan�to�include�a�“double� trigger”�applicable�to�NEOs;�we�re�aligned�the�weightings�assigned�to�metrics�used�to�calculate�our�short� term�incentives�for�NEOs;�and�we�implemented�a�cap�on�the�annual�aggregate�payments�calculated� pursuant�to�our�Annual�Bonus�Plan�and�PSU�Plan.�These�improvements�to�medium�and�long�term� executive�compensation�were�adopted�to�increase�the�emphasis�on�performance�based�vesting�and� reinforce�the�link�between�pay�and�performance�for�our�key�executives.�We�are�pleased�that�Shareholders� responded�positively�to�those�improvements�and�consequently,�the�changes�have�remained�in�place�since� implementation�in�2017.�

Since�2016,�the�Compensation�Committee�has�placed�a�fixed�cap�on�the�total�amount�of�any�payout� under�the�Annual�Bonus�Plan�at�3%�of�EBITDA�(as�adjusted).�A�fixed�cap�on�the�total�amount�of�any� payout�under�the�PSU�Plan�has�been�set�at�2%�of�EBITDA�(as�adjusted)�of�the�final�year�of�each�award.� The�first�tranche�of�PSUs�awarded�pursuant�to�the�PSU�Plan�matured�on�December�31,�2019.�

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Ensign�Management�Information�Circular�|�2020�

We�have�also�continued�our�focus�on�improving�the�disclosure�related�to�our�compensation�programs.� We�believe�our�comprehensive�disclosure�demonstrates�a�transparent�link�between�pay�and�corporate� performance,�which�is�significantly�based�upon�performance�relative�to�designated�peer�companies.��

On�an�annual�basis,�we�review�our�compensation�peer�group,�our�performance�peer�group,�the� compensation�and�disclosure�practices�of�our�peers,�as�well�as�the�outcome�of�realized�pay�in�a�year.�We� make�adjustments�as�appropriate�to�ensure�that�our�compensation�program�continues�to�be�competitive,� is�aligned�with�the�interests�of�Shareholders�and�meet�our�objectives�of�attraction�and�retention�of�our� top�talent.���

Considering�the�changes�to�our�compensation�programs�implemented�for�the�2017�year,�together�with� the�persistent�challenges�being�experienced�in�our�industry,�which�since�2015�have�significantly�impacted� the�Corporation’s�financial�performance�and�which�continue�to�drive�efficiencies�in�the�way�we�conduct� business,�we�did�not�make�any�significant�adjustments�to�our�compensation�programs�in�2019.�However� the�recent�and�evolving�impact�of�the�novel�coronavirus�(COVID�19)�outbreak�upon�global�commerce�and� energy�demand,�dramatic�commodity�price�declines,�and�related�market�disruptions,�have�caused�us�to� implement�significant�wage�reductions,�which�will�become�effective�on�April�1,�2020.�These�wage� reductions�will�impact�all�of�our�senior�managers,�including�the�NEOs,�our�board�of�directors,�as�well� certain�other�groups�of�employees.���

Other�than�as�described�above,�we�do�not�currently�intend�to�changes�to�the�design�of�our�compensation� programs�2020.�We�believe�that�the�compensation�programs�we�refined,�changed�and�implemented�in� 2017�are�generally�achieving�our�objectives�of�appropriate�pay�outcomes,�retention,�attraction,�market� competitiveness�and�an�alignment�with�corporate�performance.�In�the�event�that�any�adjustments�are� necessary�or�desirable,�the�Compensation�Committee�will�continue�to�use�its�experience�and�collective� judgment�in�making�any�such�adjustments.���

We�live�in�challenging�times�and�will�continue�to�assess�ongoing�developments�that�impact�our�industry� and�our�company.�As�a�Committee,�we�will�continue�to�monitor�trends�in�executive�compensation�and� review�our�compensation�programs�to�ensure�they�remain�competitive�and�aligned�with�the�best�interests� of�the�Shareholders.�

Submitted�by�members�of�the�Compensation�Committee,�all�of�whom�are�independent.�

James�B.�Howe�(Chair)�� Cary�A.�Moomjian,�Jr.�� John�G.�Schroeder�� Gail�D.�Surkan

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Ensign�Management�Information�Circular�|�2020�

Compensation�Discussion�&�Analysis��

This�Compensation�Discussion�and�Analysis�(“ CD&A ”)�describes�the�compensation�programs�and�practices� applicable�to�the�following�executive�officers�of�the�Corporation�who�are�classified�as�“Named�Executive� Officers”�pursuant�to�National�Instrument�51�102�(each�a�“ NEO ”�and�collectively,�the�“ NEOs ”)�for�all�or�a� part�of�the�2019�year:��

Geddes,RobertH. President&ChiefOperatingOfficer
Gray,MichaelR. ChiefFinancialOfficer
Connors,ThomasJ. ExecutiveVicePresidentCanadianOperations
Conway,BrentJ. ExecutiveVicePresidentInternationalOperations
Nuss,MichaelR. ExecutiveVicePresidentUnitedStatesOperations
Edwards,N.Murray Chairman

References�in�this�CD&A�to�our�“ Executive�Management�Committee ”�means,�collectively,�the�NEOs�listed� above.�As�described�further�in�the�section�of�this�Information�Circular�entitled�“Statement�of�Corporate� Governance�Practices”,�the�Corporation�does�not�have�a�named�Chief�Executive�Officer�(“ CEO ”).��

Board�of�Directors�Oversight�and�the�Compensation�Committee�

The�Board�of�Directors�recognizes�the�importance�of�appointing�knowledgeable�and�experienced� individuals�to�the�Compensation�Committee�in�general�and,�in�particular,�to�appoint�those�who�have�the� necessary�background�in�executive�compensation�and�risk�management�to�fulfill�the�Compensation� Committee’s�obligations�to�the�Board�of�Directors�and�Shareholders.�

The�Compensation�Committee�is�currently�comprised�of�James�B.�Howe�(Chairman),�Cary�A.�Moomjian�Jr.,� John�G.�Schroeder�and�Gail�D.�Surkan,�all�of�whom�served�on�the�Committee�during�the�entire�year�ended� December�31,�2019.�Mr.�Howe�served�as�Chairman�of�the�Compensation�Committee�throughout�2019�and� continues�in�this�role�as�of�the�date�hereof.��

All�members�of�the�Compensation�Committee�are�independent�directors�who�have�the�experience�and� knowledge�required�with�respect�to�compensation,�specifically�in�connection�with�executive� compensation�programs�and�levels,�and�other�human�resources�matters�including�succession� planning,�talent�development,�recruitment,�employee�retention�and�employee�engagement.�

Two�members�of�the�Compensation�Committee�also�sit�on�our�Audit�Committee.�Two�members�of�the� Compensation�Committee�also�sit�on�our�Corporate�Governance,�Nominations�&�Risk�Committee.�This� assists�in�bringing�important�risk�management�and�risk�assessment�perspectives�to�our�compensation� programs,�philosophy�and�practices.

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Ensign�Management�Information�Circular�|�2020�

Committee
Member RelevantSkillsandExperience
Howe,JamesB. Mr.HowehasbeenamemberofEnsign’sCompensationCommitteesince1998,andhasactedasChairman
(Committee
Chairman)
since2004.Mr.HowealsocurrentlyservesonthecompensationcommitteeofPasonSystemsInc.,a
Canadianpubliccompany.AsaCharteredAccountantandexperiencedpubliccompanydirector,hehas
significantfinancialexpertisein,andin�depthexposureto,thedesign,implementationandevaluationof
alternativestrategiesandbestindustrypracticestoperformance�basedcompensationprograms,inthe
energyindustryingeneralandintheoilfieldservicessectorspecifically.
MoomjianJr., Mr.MoomjianwasappointedtotheCompensationCommitteeinDecember2014.Hebringsover40years
CaryA. ofindustryexperience,including18yearsofexperienceinexecutivecompensation,totheCommittee.
From1994to2011,inhisformerrolesasVicePresident,GeneralCounselandSecretaryofEnscoplc,
ENSCOInternationalInc.,andSantaFeInternationalCorporation,heparticipatedinallmeetingsofthe
boardsofdirectorsandcommitteesofthoseissuers,includingcompensationcommittees.Whileserving
asVicePresident,GeneralCounselandSecretaryofthosecompanies,Mr.Moomjiandevelopedadepth
andbreadthofunderstandingofcompensationprograms,design,evaluation,issuesandtrends,and
relatedgovernanceandbestpracticesconsiderations,inthecontextofanoilfieldservicesprovider.
Further,havingservedasadepartmentheadofanoilfieldservicescompanybetween1983and2011,he
hashadcomprehensiveexperiencewithhumanresourcesmanagement.Suchexperienceincludes
successionplanning,employeeretention,performancereview,cashandincentivecompensation
administrationaswellaspersonneltraininganddevelopment.
Schroeder, Mr.SchroederhasbeenamemberofEnsign’sCompensationCommitteesince1998.AsaChartered
JohnG. AccountantandafinanceexecutiveontheseniormanagementteamofParklandIncomeFund(nowcalled
ParklandFuelCorporation),apublicpetroleummarketingcompany,Mr.Schroederwasresponsiblefor
thehumanresourcesfunctionfor20years.Thisincluded,togetherwiththePresidentandCEO,
responsibilityoverthedesignandevaluationofcompensationplansforexecutivesandsenioremployees.
Further,asalong�servingmemberofEnsign’sCompensationCommittee,Mr.Schroederisexperiencedin
thedesign,evaluation,modificationandbestpracticesgenerallyastheyrelatetocompensationpractices
foracorporationofthesizeandscopeofEnsign.
Surkan,GailD. Ms.SurkanhasbeenamemberofEnsign’sCompensationCommitteesince2007andshebrings
approximately15yearsofexperienceinhumanresourcesplanning,inparticularinexecutiverecruitment,
executivecompensation,successionplanningandemployeeengagement,toEnsign’sCompensation
Committee.InherformercapacityastheMayorofRedDeerandChairoftheAlbertaHeritageFoundation
forMedicalResearch,andinthenumerousboardpositionsshehasheldwithcrowncorporations,non�
profitorganizationsandprivatecompanies,shehashadextensiveexperiencewithoversightofhuman
resourcesfunctions,includingcompensationplanningandevaluation,andtheretentionaspects
associatedwithemployeeandexecutivecompensation.Morespecifically,Ms.SurkanchairedtheHuman
ResourcesCommitteeforATBFinancialforanumberofyearsandledtheCEOrecruitmentteamsforboth
theCityofRedDeerandtheAlbertaHeritageFoundationforMedicalResearchduringhertenurewith
thoseorganizations.

The�Board�of�Directors�believes�that�the�members�of�the�Compensation�Committee�have�the�knowledge�and� experience�to�effectively�perform�their�responsibilities.

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Compensation�Committee�Mandate��

The�mandate�of�the�Compensation�Committee�of�the�Board�of�Directors�includes�the�following:�

  • i. Establishing�and�reviewing�the�Corporation's�executive�compensation�philosophy;�

  • ii. Administering�compensation�policies�and�programs,�including�salaries,�bonuses�and�equity� compensation�plans,�which�reflect�the�executive�compensation�philosophy;�

  • iii. Reporting�to�the�Board�of�Directors�and�submitting�compensation�recommendations�to�the�Board� of�Directors�for�approval;�

  • iv. Performing�a�review�of�the�Corporation's�senior�management�and�the�steps�being�taken�to�assure� the�succession�of�qualified�senior�management�at�the�Corporation;��

  • v. Periodically�reviewing�and�approving�grants�or�awards�pursuant�to�the�Corporation's�Stock�Option� Plan,�and�other�equity�based�award�programs�as�may�be�established�from�time�to�time,�under� which�Common�Shares�may�be�acquired�or�awarded�to�eligible�participants;��

  • vi. Reviewing�the�administration�of�any�equity�plans�the�Board�may�establish;�and��

  • vii. Reviewing�and�monitoring�risks�associated�with�the�Corporation’s�compensation�and�human� resources�programs�and�practices,�including�succession�planning�and�retention.�

In�approving�any�element�of�compensation,�the�Compensation�Committee�considers�recommendations� from�management.��

Compensation�Philosophy,�Principles�and�Objectives��

Compensation�levels�and�programs�for�NEOs�are�designed�and�implemented�to�align�with�the� Corporation’s�annual�and�long�term�growth�objectives,�and�the�enhancement�of�shareholder�value�driven� by�the�following�principles�and�objectives:�

  • i. Provide�market�competitive�compensation�to�attract�and�retain�qualified�individuals;�

  • ii. Maintain�a�pay�for�performance�philosophy�by�delivering�a�meaningful�proportion�of�total� compensation�using�variable�pay�tied�to�corporate,�business�unit,�safety�and�personal� performance;�

  • iii. Provide�incentives�linked�to�financial�performance�and�enhanced�shareholder�returns�relative�to� our�peers,�as�well�as�operating�results�and�non�financial�metrics�measured�by�the�health,�safety� and�environmental�performance�of�the�Corporation;��

  • iv. Provide�incentives�which�support�appropriate�risk�taking�in�support�of�the�short�term�and�long� term�goals�of�the�Corporation,�reflective�of�our�risk�tolerance;��

  • v. Consistency�with�Ensign’s�vision�of�growth�through�collaborative�learning,�achieving�the�potential� of�our�people�and�technology�and�creating�excellence;�and��

  • vi. Consistency�with�Ensign’s�values�of�integrity,�teamwork�and�learning.�

The�compensation�programs�at�Ensign�are�intended�to�reward�strong�performance.�Employees,� including�NEOs,�maximize�their�compensation�when�annual�operating�and�financial�goals�are� achieved,�when�annual�safety�performance�goals�are�achieved,�when�progress�is�made�in�executing� Ensign’s�growth�strategy,�and�when�strong�relative�total�shareholder�return�and�return�on�capital� employed�are�achieved.��

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Risk�Considerations�of�Executive�Compensation�

The�committees�of�the�Board�assist�the�Board�in�monitoring�the�most�significant�risks�facing�the� Corporation,�including�strategic,�operational�and�reputational�risks,�which�build�upon�management’s�risk� assessment�and�mitigation�processes.�Specifically,�the�Compensation�Committee:�

  • i. Assists�the�Board�in�monitoring�the�risks�associated�with�the�Corporation’s�compensation� programs�and�practices,�including�the�retention�of�key�senior�management�personnel;�

  • ii. Reviews�from�time�to�time�the�risk�implications�of�the�Corporation’s�compensation�programs,� including�specifically�compensation�risks�as�they�relate�to�the�Corporation’s�strategic�plans,�other� desired�performance�measures,�overall�corporate�performance�and�risk�management�principles;� and�

  • iii. Periodically�undertakes�a�formal�review�of�the�risk�implications�of�the�design�of�the�Corporation’s� compensation�policies�for�senior�executives�and�succession�plans�for�such�senior�personnel.�

In�reviewing�and�prior�to�approving�the�Corporation’s�compensation�programs�or�compensation�being� provided�pursuant�to�such�programs,�risks�are�considered.�The�Compensation�Committee�believes�that� the�Corporation’s�compensation�policies�do�not�create�an�environment�where�an�executive�or�any� individual�is�encouraged�to�take�excessive�risk.��

The�compensation�offered�by�Ensign�is�designed�to�reward�prudent�business�judgment�and� appropriate�risk�taking�over�both�the�short�term�and�the�long�term,�without�creating�risk�that�could� reasonably�be�likely�to�have�a�material�adverse�impact�on�the�Corporation.

The�Compensation�Committee�reviews�incentive�programs�on�an�annual�basis.�The�Compensation� Committee�also�models�and�adjusts�programs,�targets�and�measures�as�needed�to�ensure�optimal� alignment�with�the�Corporation’s�strategic�plans.�The�Compensation�Committee�also�reviews�and� considers�the�results�of�the�Shareholder’s�advisory�votes�on�executive�compensation,�and�other�input� from�the�investor�and�corporate�governance�constituencies.�As�a�result�of�these�reviews,�significant� adjustments�were�made�to�our�compensation�programs�in�2017,�described�in�detail�elsewhere�herein,� which�remain�in�place�today.���

Key�oversight�procedures�and�risk�mitigation�features�to�support�managing�compensation�risk�are�as� follows:�

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Oversight�Procedures�and�Risk�Mitigation�Features�

“At�Risk”�Compensation :��

  • A�significant�portion�of�Ensign's�NEO�compensation�is�“at�risk”,�consisting�of�the�annual�cash�bonus,�annual� Performance�Share�Unit�grants�(which�began�in�2017),�and�awards�of�stock�options.�PSUs�are�“at�risk”�and� “medium�term”,�as�they�cliff�vest�at�the�end�of�a�three�year�period.�Stock�options�are�“at�risk”�and�“long� term”,�as�options�do�not�fully�vest�until�the�end�of�the�fifth�(5[th] )�year�following�the�date�of�the�grant.��

  • Since�the�final�value�of�the�PSUs�is�dependent,�in�whole�or�in�part,�upon�the�price�of�the�Common�Shares�at� the�end�of�the�applicable�vesting�period,�and�thus�is�linked�to�the�achievement�of�medium�and�long�term� value�creation,�the�Compensation�Committee�believes�that�the�motivation�for�executives�to�take� inappropriate�action�or�excessive�risk�that�may�be�beneficial�to�them�from�the�standpoint�of�their� compensation,�at�the�expense�of�Ensign�and�its�Shareholders,�is�limited.��

  • Furthermore,�the�Compensation�Committee�may�apply�discretion�to�adjust�the�size�of�the�cash�bonus.�This� discretion�would�only�be�used�sparingly�following�a�comprehensive�assessment�of�corporate�performance� and�the�accomplishments�of�each�executive.�Although�this�discretionary�power�may�be�exercised� judiciously�by�the�Compensation�Committee,�it�nonetheless�discourages�undue�risk�taking.�Such�discretion� has�not�been�used�in�more�than�five�(5)�years,�except�with�respect�to:�(i)�the�suspension�in�2016�and� subsequent�termination�in�2017�of�a�“Performance�Share�Award”�program,�which�impacted�all�eligible� employees�including�NEOs;�and�(ii)�the�election�offered�to�senior�executives�to�receive�their�2016�annual� cash�bonus�in�Common�Shares�at�a�50%�premium�over�the�value�of�the�cash�bonus.��

  • Since�2016,�in�light�of�persistent�economic�and�market�challenges�facing�the�Corporation�and�our�industry� around�the�globe,�the�Compensation�Committee�has�set�a�fixed�cap�for�the�payout�of�the�Annual�Bonus� Plan�(cash�bonus)�in�each�year�at�3%�of�EBITDA�(as�adjusted).�This�cap�remains�in�place�for�each�annual� period�until�otherwise�determined�by�the�Compensation�Committee.

Executive�Equity�Ownership�Policy

  • Ensign’s�executive�equity�ownership�policy�(described�in�detail�below)�is�intended�to�discourage�excessive� risk�taking.�This�policy�promotes�an�alignment�of�long�term�interests�between�the�Corporation’s�executives� and�those�of�its�Shareholders.�

Anti�Hedging :��

  • The�Corporation’s�policies�prohibit�directors�and�officers�of�the�Corporation�from�purchasing�any�financial� instrument�that�is�designed�to�hedge�or�offset�any�decrease�in�the�market�value�of�the�Common�Shares.�

Compensation�Recoupment�(“Clawback”)�Policy :��

  • A�Compensation�Recoupment�Policy�was�implemented�in�2014,�which�provides�the�Compensation� Committee�the�authority�to�direct�the�Corporation�to�seek�reimbursement�from�a�NEO�of�some�or�all�of�the� incentive�compensation�paid�to�such�NEO�in�the�event�of�an�accounting�restatement�resulting�from� misconduct�by�a�NEO.��

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Succession�Planning:�

  • The�Compensation�Committee�reviews�the�Corporation’s�succession�planning�and�implementation� progress,�at�a�minimum�on�a�semi�annual�basis.�Succession�planning�is�also�frequently�considered�in�the�in� camera�discussions�of�the�Board�of�Directors,�as�well�as�by�the�Corporate�Governance,�Nominations�&�Risk� Committee�in�the�context�of�its�quarterly�review�of�enterprise�risks.�

  • The�Corporation�has�developed�a�strong�culture�of�developing�its�employees�and�promoting�from�within.� The�majority�of�our�NEOs�attained�their�current�positions�through�prior�positions�within�the�Corporation,� assuming�increasing�responsibility�as�they�progressed�and�demonstrated�excellent�leadership�skills.�In�2019,� folowing�completion�of�the�Trinidad�Acquisition,�we�augmented�our�NEO�group�by�retaining�the�former� Trinidad�CEO�to�serve�as�our�Executive�Vice�President�of�International�Operations.�

  • Members�of�senior�management�review,�on�an�annual�basis,�each�key�management�position,�evaluating� the�qualification,�experience�and�leadership�competencies�needed�to�succeed�in�the�position.�The�results� of�that�evaluation�drive�management’s�decisions�regarding�identification�of�candidates�for�succession�and� the�desired�developmental�steps�to�be�undertaken�for�such�candidates.��

  • The�Compensation�Committee�receives�reports,�at�a�minimum�annually,�on�the�progression�and� development�of�the�executives�and�members�of�senior�management�being�considered�for�future�executive� roles�and�on�succession�planning�more�generally�throughout�the�management�levels�of�the�Corporation.� The�Executive�Management�Committee�makes�succession�recommendations�for�senior�management� positions�to�the�Compensation�Committee�for�their�review,�consideration�and�approval.

Corporate�Operating�Structure:�

  • As�described�in�further�detail�in�the�“Statement�of�Corporate�Governance�Practices”,�the�Corporation�does� not�have�a�named�CEO.�The�duties�and�responsibilities�normally�associated�with�the�role�of�CEO�are� delegated�by�the�Board�of�Directors�to�the�Executive�Management�Committee,�composed�primarily�of�the� NEOs.�This�structure,�which�has�been�in�place�throughout�the�Corporation’s�history,�limits�the�ability�of�any� one�individual�to�unduly�influence�the�direction�of�the�Corporation�and�enables�the�continuation�of�strong� leadership�in�the�event�of�the�departure�of�a�member�of�the�Executive�Management�Committee.�

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Ensign�Management�Information�Circular�|�2020�

Compensation�Benchmarking�Peer�Group�

Ensign�compares�its�executive�compensation�to�the�compensation�provided�to�executives�in�comparable� positions�by�a�comparator�group�of�Canadian�oilfield�service�companies�in�primarily�the�contract�drilling� and�well�servicing�lines�of�business.�The�comparator�group�is�further�refined�on�the�basis�of�size,� complexity,�operating�regions�and�style�of�operation.�The�companies�in�this�comparator�group�compete� with�Ensign�for�executive�personnel�and�therefore�provide�a�useful�and�relevant�benchmark�for�the� Compensation�Committee�in�its�evaluation�of�the�Corporation’s�executive�compensation�programs.��

For�2019,�Ensign�looked�to�the�following�companies�in�benchmarking�executive�compensation:��

PayPeerName: Sector
EnsignEnergyServicesInc. OilandGasDrilling
CalFracWellServicesLtd. OilandGasEquipment&Services
ShawCorLtd. OilandGasEquipment&Services
TotalEnergyServicesCorp. OilandGasDrilling
SecureEnergyServicesInc. OilandGasEquipment&Services
PrecisionDrillingCorporation OilandGasDrilling
TricanWellServiceLtd. OilandGasEquipment&Services

For�benchmarking�purposes,�we�review�peer�company�proxy�materials�and�participate�in�third�party� compensation�surveys,�which�provides�relevant�data�regarding�our�selected�peer�group.��

Because�Ensign�is�a�complex,�global�enterprise�with�multiple�geographical�operating�units,�the� Compensation�Committee�also�looks�at�selected�energy�services�companies�outside�Canada,�primarily�in� the�United�States,�to�ensure�that�executive�compensation�reflects�the�international�scope�of�Ensign’s� operations.�From�time�to�time,�Ensign�reviews�and�evaluates�compensation�and�compensation�programs� disclosed�by�the�following�oilfield�service�companies�that�are�either�US�based�or�have�a�significant� presence�in�the�United�States:��

UnitedStates:
PayPeerName: Sector
UnitCorporation OilandGasDrilling
Valarisplc OilandGasDrilling(offshore)
NaborsIndustriesLtd. OilandGasDrilling
Patterson�UTIDrillingCompany,LLC OilandGasDrilling
Helmerich&Payne,Inc. OilandGasDrilling

In�addition�to�benchmarking�against�peer�groups�as�described�above,�in�2019�the�Corporation�participated� in�selected�compensation�surveys,�and�purchased�certain�published�results�in�order�to�assist�in� benchmarking�against�its�peers�in�the�various�geographic�locations�in�which�it�operates.�

The�Corporation�does�not�anticipate�making�significant�changes�to�its�compensation�benchmarking�peer� group�for�2020,�however,�a�normal�course�review�takes�place�each�year.�

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Ensign�Management�Information�Circular�|�2020�

Performance�Peer�Group�

With�the�adoption�of�a�PSU�program�in�2017,�we�now�also�look�to�a�performance�peer�group�to�benchmark� the�metrics�we�have�chosen�in�connection�with�the�PSU�Plan.��

Our�performance�peer�group�is�made�up�of�companies�in�our�industry�sector�(primarily�land�based�drilling,� completion�and�production�services�peers),�with�similar�risk�profiles�as�ours,�and�with�whom�we�compete� for�investors.�Our�performance�peer�group�is�somewhat�different�from�our�compensation�peer�group�(see� above),�which�is�focussed�on�comparable�companies�with�whom�we�compete�for�executive�talent.��

The�Compensation�Committee�reviews�the�performance�peer�group�annually�for�relevance�and�ongoing� measurement�similarities.�The�key�issues�and�principles�we�consider�in�establishing�our�performance�peer� group�are�the�following:�

  • Which�peer�group�companies�operate�in�the�same�industry�sector,�and�are�of�similar�size�to� Ensign?�Land�based�drilling�operations,�and�completions�and�production�services,�are�the�primary� considerations.�

  • Do�we�compete�with�the�peer�group�company�for�investor�dollars?�On�this�basis,�our�performance� peer�group�should�include�a�majority�of�Canadian�listed�peers.��

  • Size�is�considered�to�be�less�important�than�business�similarity�and�risk�profile.�

  • The�best�peers�will�have�historical�price�performance�that�is�reasonably�well�correlated�to� Ensign’s.���

  • Aim�to�select�at�least�10�performance�peers�to�foster�the�validity�of�results�and�have�some�(but� not�total)�overlap�with�the�compensation�peer�group�so�that�pay�outcomes�are�likely�to�be� directionally�aligned�with�corporate�performance.��

For�2019,�following�a�review�of�business�profiles,�revenues,�EBITDA,�assets,�employees�and�market� capitalization,�the�following�performance�peers�were�selected:

2019PERFORMANCEPEERS 2019PERFORMANCEPEERS
CANADIAN�BASEDPERFORMANCEPEERS:
1. PrecisionDrillingCorporation
2. TotalEnergyServicesInc.
3. WesternEnergyServicesCorp.
4. PasonSystemsInc.
5. AkitaDrillingLtd.
6. SecureEnergyServicesInc.
US�BASEDPERFORMANCEPEERS:
1. Patterson�UTIDrillingCompany,LLC
2. Helmerich&Payne,Inc.
3. NaborsIndustriesLtd.
TOTALPERFORMANCEPEERS=9

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Ensign�Management�Information�Circular�|�2020�

Adjustments�will�be�made�as�needed�to�respond�to�changes�in�our�industry�to�ensure�that�each�year’s� performance�is�compared�against�a�representative�group�of�companies.�

2020�Compensation�Program�Design�

As�noted�elsewhere�in�this�CD&A,�in�2017,�the�Compensation�Committee�implemented�significant�changes� to�certain�elements�of�our�compensation�programs�in�order�to�better�achieve�alignment�between�pay�and� performance,�ensure�the�appropriate�and�competitive�compensation�of�our�senior�executives,�and� provide�additional�transparency�regarding�the�metrics�used�in�measuring�outcomes.��

As�mentioned�above�in�the�Letter�to�Shareholders,�wage�reductions�will�be�implemented�on�April�1,�2020� which�will�impact�all�of�our�non�field�personnel�globally,�including�the�NEOs.�This�step�became�necessary� in�light�of�the�recent�and�evolving�impact�of�the�novel�coronavirus�(COVID�19)�outbreak�upon�global� commerce�and�energy�demand,�dramatic�commodity�price�declines,�and�related�market�disruptions.� Specifically,the�base�annual�compensation�of�to�our�NEOs�has�been�reduced�(effective�April�1,�2020)�as� follows:��

  • By�12.5%�(Mssrs.�Gray,�Connors,�Conway�and�Nuss);�

  • By�20%�(Mr.�Geddes);�and��

  • By�40%�(Mr.�Edwards).�

No�additional�changes�are�currently�being�contemplated�for�2020,�however�the�Compensation�Committee� will�continue�to�use�its�experience,�collective�judgment�and�discretion�in�implementing�further�changes� that�may�be�necessary�or�desirable�in�light�of�changing�business�conditions.�The�Compensation�Committee� has�maintained�the�cap�on�the�aggregate�payment�of�any�future�annual�cash�bonus,�including�for�2020,�at� 3%�of�EBITDA�(as�adjusted),�and�the�cap�on�the�aggregate�payment�of�any�PSU�award�at�2%�of�EBITDA�(as� adjusted)�achieved�in�the�final�year�of�the�term�of�each�award.�These�caps�will�remain�in�place�until� changed�by�the�Compensation�Committee.�

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Ensign�Management�Information�Circular�|�2020�

NEO�Compensation�Components�–�Summary��

The�Corporation�recognizes�the�importance�of�attracting,�developing�and�retaining�top�quality�talent�and� is�committed�to�paying�for�individual�and�team�performance�in�the�context�of�strong�operating�results�and� achievement�of�financial�and�non�financial�metrics.�Since�2017,�the�Corporation's�compensation�program� for�NEOs�has�consisted�of�four�(4)�main�components,�as�follows:��

Performance
Component Description Form Period PerformanceOrientation
FIXED: Basesalaryor Cash 1year Fixedpayforperformingdaytodayresponsibilities.
BasePay annual
consulting
fee
Evaluatedbasedonpastandexpectedfuturecontribution,levelof
responsibilityandvaluetotheorganization.
Reflectsthemarketvalueoftheposition,aswellasexperience,
expertise,education,timeintherole,andinternalequity
considerations.
Reviewedonanannualbasis,adjustedbasedonoutcomeof
review.
Increasesreflectjobperformanceandpromotions.For2019,
certainincreasestoNEObaseannualcompensationalsoreflected
theincreasedsizeandscopeofEnsign’sbusinessasaresultofthe
acquisitionofTrinidadDrillingLtd.inlate2018.
ATRISK: AnnualBonus Cash 1year Tiedtotheachievementofannualcorporateanddivisional
Short�term
incentive
Plan objectives,includingfinancial,health,safetyandenvironmental
objectivesandstrategicobjectives.Levelandobjectivesreviewed
onanannualbasis,adjustedbasedonoutcomeofreview.
Theaggregatemaximumpayoutamount(includingpayoutsto
NEOs)withrespecttotheAnnualBonusPlaniscappedat3%ofthe
Corporation’sEBITDA(asadjusted)fortheyear.
ATRISK: Performance Cash 3year Rewardsrelativesharepriceperformanceandreturnoncapital
Medium� ShareUnit performance employed.Fullyat�riskwitha0%to200%oftargetpayout.
term Plan cycle(cliff Performancecriteriaarebasedonrelativetotalshareholderreturn
incentive vestatendof
term)
andreturnoncapitalemployed.Theaggregatemaximumpayout
amountofthePSUs(includingpayoutstoNEOs)iscappedatat2%
oftheCorporation’sEBITDA(asadjusted)inthefinalyearofthe
termofeachaward.
ATRISK: StockOption Stock 1/5thof Designedtofocusexecutiveofficereffortsonsustainably
Long�term
Incentive
Plan Options awardvest
eachyear
over5years,
increasingshareholdervalueandreturnsoveraperiodofyears.
Deliversvalueonlyifsharepriceappreciates.
fulltermof
upto6years
Grantlevelsaredeterminedwithreferencetorole,responsibilities,
individualperformance,andperformanceoftheCorporation
overall,aswellastheapplicabledivisioninwhichanemployeeis
employedandpeergroupgrantlevels.
Previousgrantsarenottakenintoaccountwhenconsideringnew
grants.

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Ensign�Management�Information�Circular�|�2020�

NEO�Compensation�Components�–�Detailed�Description�

Total�compensation�for�NEOs�at�Ensign�is�reviewed�for�competitiveness�and�compared�to�the� Corporation’s�peer�group�for�the�achievement�of�established�levels�of�performance.

A�detailed�description�of�each�of�the�four�(4)�elements�of�NEO�compensation�for�2019�is�below.�Please�see� the�“Summary�Compensation�Table”�for�details�regarding�overall�executive�compensation�awarded�to� NEOs�in�2019�and�the�table�entitled�“Outstanding�Share�Based�and�Option�Based�Awards”�for�details�on� grants�of�stock�options�and�PSUs�to�the�NEOs�in�2019.�

The�Compensation�Committee�retains�the�ability�to�exercise�discretion�to�ensure�that�compensation�and� incentive�plan�designs�achieve�the�intended�results�and�avoid�unintended�consequences.�In�determining� whether�discretion�is�warranted,�the�Compensation�Committee�comprehensively�assesses�each�element� of�the�compensation�package�provided�to�executives,�the�overall�compensation�package�provided�to�each� executive,�the�performance�of�the�Corporation�(financial�and�non�financial)�and�individual�performance.� This�discretionary�power�is�exercised�sparingly�and�judiciously�by�the�Compensation�Committee.��

As�noted�above,�other�than�with�respect�to:�(i)�the�suspension�in�2016�and�subsequent�termination�in� 2017�of�a�“Performance�Share�Award”�program,�which�impacted�all�eligible�employees�including�NEOs;� and�(ii)�the�election�offered�to�senior�executives�to�receive�their�2016�annual�cash�bonus�in�Common� Shares�at�a�50%�premium�over�the�value�of�the�cash�bonus;�no�other�adjustments�from�the�set�formulas� were�made�with�respect�to�any�NEOs�in�2019�or�in�any�of�the�past�five�(5)�years.��

  1. Base�Compensation�(salary�or�annual�consulting�fee) :�The�Compensation�Committee�typically� reviews�and�approves�base�compensation�for�the�upcoming�year�in�December�of�the�prior�year�and� makes�adjustments�as�necessary�to�reflect�changes�in�economic�circumstances,�market�conditions�and� competitive�practices.��

Effective�January�1,�2015,�in�response�to�swiftly�changing�adverse�market�conditions,�the�NEOs� accepted�a�10%�reduction�in�base�annual�compensation�(implemented�along�with�a�reduction�in� Director�compensation,�as�further�discussed�below).�Such�action�was�taken�by�the�NEOs�and�the�Board� of�Directors�to�demonstrate�leadership�and�emphasize�the�importance�of�controlling�costs�during�an� unstable�period�for�the�industry.�Base�compensation�remained�largely�at�the�2015�levels,�in�light�of� then�prevailing�industry�and�economic�conditions,�except�with�respect�to�promotions�and�relocations,� until�August�2018�when�half�of�the�2015�rollbacks�were�reinstated�for�all�employees,�including�NEOs.��

Effective�January�1,�2019,�certain�NEOs�received�increases�to�their�base�annual�salaries,�in�part�due�to� the�acquisition�of�control�over�Trinidad�Drilling�Ltd.�in�the�fourth�quarter�of�2018�and�the� corresponding�increase�in�the�size�and�scope�of�the�Corporation�and�the�corresponding�duties�and� responsibilities�of�certain�NEOs.�These�increases�were�also�due�in�part�to�modest�improvements�in�the� industry�outlook�at�that�time�for�2019.��

As�noted�above,�wage�reductions�will�be�implemented�effective�April�1,�2020�which�will�impact�all�of� our�non�field�personnel�globally,�including�the�NEOs�whose�base�annual�compensation�will�be�reduced� by�12.5%�(Mssrs.�Gray,�Connors,�Conway�and�Nuss),�20%�(Mr.�Geddes)�and�40%�(Mr.�Edwards).�This� step�became�necessary�in�light�of�the�recent�and�evolving�impact�of�the�novel�coronavirus�(COVID�19)� outbreak�upon�global�commerce�and�energy�demand,�dramatic�commodity�price�declines,�and�related� market�disruptions.�This�reduction�in�base�annual�compensation�will�also�be�reflected�in�the�annual� bonus�plan�(described�below),�as�earned�base�compensation�in�a�year�is�the�denominator�used�for�the�

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Ensign�Management�Information�Circular�|�2020�

calculation�of�annual�bonuses�in�each�year.�For�the�PSU�Plan�(described�below),�the�annual�base� compensation�before�the�reduction�discussed�above�is�the�denominator�used�to�generate�grant� amounts.��

  1. Annual�Bonus�Plan�(“ABP”): �Ensign’s�ABP�is�a�short�term�incentive�plan�designed�so�that�NEOs�have� all�or�a�high�portion�of�their�potential�annual�cash�bonus�compensation�linked�to�overall�corporate� financial�results�and�the�achievement�of�safety�and�strategic�goals,�rather�than�to�individual�business� unit�or�geographical�segment�results.�The�potential�ABP�payout�grid�varies�from�“entry�level”�up�to�the� NEO�levels,�increasing�in�accordance�with�role�responsibilities�and�influence�on�corporate�goal� achievement.�The�ABP�is�designed�to�recognize�achievements�measured�over�a�one�year�period,�and� provides�an�opportunity�for�employees,�including�NEOs,�to�earn�a�target�annual�cash�bonus�based�on� meeting�corporate�performance�objectives�in�key�areas:��

Annual�Bonus�Plan�–�Metrics��

1. Corporate ThiscomponentoftheannualbonususesthekeyfinancialmetricofEBITDA(as ThiscomponentoftheannualbonususesthekeyfinancialmetricofEBITDA(as
financial adjusted)asapercentageoftheannualapprovedbudget.TheBoardofDirectors
performance: approvesannualbudgets,whichdefineoperating,financial,safetyandother
EBITDA(as corporategoalsfortheCorporation(whichincludesallofitsoperatingdivisions).
adjusted)vs.
approved2019
budget
OverallcorporatefinancialperformanceisbasedontheCorporation’sconsolidated
financialresults,whileeachoperatingdivisionhasspecificfinancialperformance
targetsbasedonitsownapprovedannualbudgettoensure“lineofsight”forthe
50%or75%ofNEO employeesinthatdivision.
annualbonus Aminimumthresholdforcorporateearnings(80%oftarget)mustbemetinorderto
receiveanannualbonus.Themaximumbonusisachievedat120%oftarget.
2. Corporate TheAssetEfficiencyRatioisafinancialmetricdevelopedbyEnsigntoreflectthe
financial returnoncapitalinvestedwithrespecttoitsassets.TheratioapplicabletoNEOs
performance: measurestheadjustedafter�taxcashflowgeneratedbyEnsignonaconsolidated
AssetEfficiency basis,dividedbytheaveragevalueoftheassetsandequipmentutilizedbyEnsignin
Ratio(AER) theyear.
30%or45%ofNEO AminimumAERof15%achievestheminimumthresholdforachievementofabonus
annualbonus basedonthismetric;anAERrateof25%achievesthemaximumbonusachievement
basedonthismetric.
3. Safety: ThiscomponentoftheAnnualBonusPlanisdesignedtoincentivizeongoingpositive
10%or15%ofNEO behaviourtoreduceoreliminateincidentsandinjuries.
annualbonus TheHealth,Safety&EnvironmentCommitteeapprovesannualobjectivescomprised
ofacombinationof:
o
Leadingindicators(2019weighting=75%)–composedofaminimumofthree
(3)keybehavior�basedperformanceindicators;and
o
Laggingindicators(2019weighting=25%)–totalrecordableinjuryrates,to
promoteyear�over�yearimprovement;
onbothadivisionalandacorporatebasis.
Threshold,targetandstretchtargetsaresetandalignedwithapointssystem.
4. StrategicGoals: TheBoardofDirectorsannuallyapprovesstrategicgoalsandobjectivesfortheNEOs,
10%or15%ofNEO insomeorallofthefollowingareas:
annualbonus o
BalanceSheetManagement
o
DebtCovenantCompliance
o
SafetyandTraining
o
Systems
o
BusinessDevelopment
o
Innovation/Technology
Threshold,targetandstretchtargetsaresetandalignedwithapointssystem.

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Ensign�Management�Information�Circular�|�2020�

The�annual�cash�bonus�varies�based�on�the�degree�to�which�financial,�non�financial�and�strategic� objectives�meet�or�exceed�the�established�targets.�If�all�objectives�are�met�or�exceeded,�NEOs�are� eligible�for�an�annual�cash�bonus�for�2019�at�a�set�level�of�up�to�either�100%�or�150%�(depending�on� the�NEO’s�role)�of�their�base�compensation,�as�follows:�

LEVEL1A–MAXIMUM100%ANNUALBONUSLEVEL(1) LEVEL1A–MAXIMUM100%ANNUALBONUSLEVEL(1) LEVEL1A–MAXIMUM100%ANNUALBONUSLEVEL(1) LEVEL1A–MAXIMUM100%ANNUALBONUSLEVEL(1)
1.FinancialPerformance 2.AssetEfficiencyRatio 3.Safety(vs.2019Safety 4.StrategicBonus
[50%] (AER)[30%] Targets)[10%] [10%]
BITDA(as
adjusted)as
a%of2019
Budget
Bonus%of
2019Base
Comp.
AER% Bonus%of
2019Base
Comp.
HSEPoints Bonus%of
2019Base
Comp.
Strategic% Bonus%of
2019Base
Comp.
Below80% 0.00% Below15% 0.00% Below80PTS 0.00% Below20PTS 0.00%
At80% 5.00% At15% 3.00% At80PTS 1.00% At20PTS 5.00%
At85% 11.25% At16.25% 6.75% At85PTS 2.25%
At90% 17.50% At17.50% 10.50% At90PTS 3.50% At30PTS 6.25%
At95% 23.75% At18.75% 14.25% At95PTS 4.75%
At100% 30.00% At20.00% 18.00% At100PTS 6.00% At40PTS 7.50%
At105% 35.00% At21.25% 21.00% At105PTS 7.00%
At110% 40.00% At22.50% 24.00% At110PTS 8.00% At50PTS 8.75%
At115% 45.00% At23.75% 27.00% At115PTS 9.00%
At120% 50.00% At25+% 30.00% At120PTS 10.00% At60PTS 10.00%
LEVEL1–MAXIMUM150%ANNUALBONUSLEVEL(2)
1.FinancialPerformance 2.AssetEfficiencyRatio 3.Safety(vs. 2019Safety 4.StrategicBonus
[50%] (AER)[30%] Targets)[10%] [10%]
EBITDA(as
adjusted)as
a%of2019
Budget
Bonus%of
2019Base
Comp.
AER% Bonus%of
2019Base
Comp.
HSEPoints Bonus%of
2019Base
Comp.
Strategic% Bonus%of
2019Base
Comp.
Below80% 0.00% Below15% 0.00% Below80PTS 0.00% Below20PTS 0.00%
At80% 7.50% At15% 4.50% At80PTS 1.50% At20PTS 5.00%
At85% 16.88% At16.25% 10.13% At85PTS 3.38%
At90% 26.25% At17.50% 15.75% At90PTS 5.25% At30PTS 7.50%
At95% 35.63% At18.75% 21.38% At95PTS 7.13%
At100% 45.00% At20.00% 27.00% At100PTS 9.00% At40PTS 10.00%
At105% 52.50% At21.25% 31.50% At105PTS 10.50%
At110% 60.00% At22.50% 36.00% At110PTS 12.00% At50PTS 12.50%
At115% 67.50% At23.75% 40.50% At115PTS 13.50%
At120% 75.00% At25+% 45.00% At120PTS 15.00% At60PTS 15.00%

(1) This�bonus�level�applied�in�2019�to�Messrs.�Connors�and�Conway.�

(2) This�bonus�level�applied�in�2019�to�Messrs.�Geddes,�Edwards,�Gray�and�Nuss.

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Ensign�Management�Information�Circular�|�2020�

For�2019,�certain�NEOs�(being�Mr.�Geddes,�Mr.�Edwards,�Mr.�Gray�and�Mr.�Nuss)�were�eligible� for�an�annual�cash�bonus�at�a�set�level�of�up�to�150%�of�their�base�compensation,�and�certain� NEOs�(being�Mr.�Connors�and�Mr.�Conway)�were�eligible�for�an�annual�cash�bonus�at�a�set�level� of�up�to�100%�of�their�base�compensation.��

In�2019,�on�a�consolidated�basis,�the�Corporation’s�EBITDA�(as�adjusted)�achieved�approximately�85%� of�the�approved�annual�budget�for�the�year,�resulting�in�an�annual�cash�bonus�payout�to�the�NEOs� based�on�this�metric.��

As�desribed�elsewhere,�since�2016,�the�Compensation�Committee�has�used�its�authority�to�set�a�fixed� cap�on�the�aggregate�payout�under�the�Annual�Bonus�Plan,�including�payments�to�NEOs,�at�a� maximum�of�3%�of�EBITDA�(as�adjusted).�The�total�payout�pursuant�to�the�ABP�for�2019�to�all�of� Ensign’s�eligible�employees,�including�NEOs,�was�1.1%�of�EBITDA�(as�adjusted),�and�as�such�did�not� result�in�excess�of�3%�of�EBITDA�(as�adjusted)�and�therefore�it�was�not�necessary�to�roll�back�the� calculated�payments�to�the�level�of�the�cap.�This�cap�remains�in�place�for�future�years,�until�specifically� removed�or�modified�by�the�Compensation�Committee.�

The�Compensation�Committee�reviews�and�approves�the�final�proposed�annual�cash�bonus�payments� to�NEOs,�and�may,�where�appropriate,�adjust�such�bonus�payments�following�a�comprehensive� assessment�of�corporate�performance�and�the�accomplishments�of�each�NEO.�No�such�adjustments� impacting�NEO�bonuses�have�been�made�in�more�than�five�(5)�years,�except�with�respect�to:�(i)�the� suspension�in�2016�and�subsequent�termination�in�2017�of�a�“Performance�Share�Award”�component� of�the�Annual�Bonus�Plan,�which�impacted�all�eligible�employees�including�NEOs;�and�(ii)�the�election� offered�to�senior�executives�to�receive�their�2016�annual�cash�bonus�in�Common�Shares�at�a�50%� premium�over�the�value�of�the�cash�bonus;�described�in�further�detail�in�the�Summary�Compensation� Table�below.�

The�ABP�is�subject�to�annual�review�by�the�Compensation�Committee,�and�in�particular�the�annual� safety�and�strategic�metrics�are�considered�and�approved.��

For�2020,�the�strategic�metrics�approved�with�respect�to�the�NEOs�are�largely�related�to�financial� objectives,�which�remain�the�Corporation’s�priority�following�the�acquisition�of�Trinidad�Drilling� Ltd.�in�late�2018,�which�substantially�increased�the�size�and�scope�of�Ensign’s�global�operations� and�footprint.�These�strategic�metrics�for�2020�specifically�relate�to�capital�expenditure� management,�debt�reduction�and�the�operational�achievement�of�certain�operational�objectives� across�our�global�fleet.��

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Ensign�Management�Information�Circular�|�2020�

  1. Performance�Share�Units�(“PSUs”) :�The�Compensation�Committee�has�implemented�a�Performance� Share�Unit�Plan,�intended�to�provide�an�incentive�that�will�enable�the�Corporation�to�achieve�its� medium�and�long�term�objectives,�and�allow�the�Corporation�to�attract�and�retain�quality�personnel.��

The�first�grant�of�PSUs�pursuant�to�this�plan�occurred�in�2017.�Grants�of�PSUs�are�approved�by�the� Compensation�Committee�annually�on�or�before�April�1�of�each�year.�The�minimum�thresholds� pursuant�to�the�PSU�Plan�for�the�2017�awards�have�been�met�and�as�such,�the�first�payout�pursuant� to�the�PSU�Plan�is�in�2020.

Performance�Share�Units�(“PSUs”)��

FormofAward Cashpayment.
WhoParticipates SeniorexecutivesoftheCorporation(vicepresidentlevelandabove).Directorsarenot
eligibletoreceivePSUsunlessheorsheisalsoanofficeroremployeeoftheCorporation.
TargetAward Adollaramountisdeterminedbasedonapercentageofbaseannualsalary,whichisused
Amount todetermineanumberofPSUsbasedonthevolumeweightedaveragetradingpriceof
Ensign’sCommonSharesoverthe10dayspriortothegrantdate.Thetargetamountof
theawardisaPSUvalueof100%ofthePSUgrant.
Dividends Dividendsareaccruedonoutstanding,unvestedPSUs,andaccumulateintheformof
additionalPSUs.
Vesting AwardsofPSUscliff�vestattheendofathree(3)yearperformanceperiod,whichaligns
withcalendaryearsbeginningtheyearofthegrant.ExtendingtherealizationofPSUs
overathree(3)yearperiodisintendedtoencouragecorporateperformanceandstock
priceappreciation.IfanemployeeleavesemploymentwiththeCorporationforany
reason(otherthanincertainlimitedcircumstances,includingterminationof
employmentconcurrentlywithorfollowingachangeofcontrol),unvestedPSUsare
forfeited.
Payout Cashsettlement,basedonaformulathatincludesrelativetotalshareholderreturnand
returnoncapitalemployed,calculatedineachyearoftheterm(20%weightingperyear)
andoverthefullterm(40%weightingofthefulltermaverage).
Anyafter�taxpaymentistobeusedtopurchaseCommonSharesiftherecipient’s
minimumshareholdingrequirementhasnotyetbeenmet.
Performance ThevalueatvestingofthePSUswilldependonEnsign’sstockpriceandcorporate
Measures performance,asmeasuredbymetricsincludingtheCorporation’srelativetotal
shareholderreturn(TSR)andreturnoncapitalemployed(ROCE)relativetoitspeer
group,overthethree�yearvestingperiod.Futurerealizedvaluesatthetimeofvesting
willreflectstockpriceperformance,reinvesteddividendaccruals,andachievementof
performancecriteria,allasmeasuredoverthevestingperiod.
TheaggregatepayoutpursuanttoeachPSUgrantiscappedatamaximumof2%of
EBITDA(asadjusted),inthefinalyearofeachthree�yearterm.Thiscapremainsinplace
untilspecificallyremovedormodifiedbytheCompensationCommittee.

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Ensign�Management�Information�Circular�|�2020�

NEOs�and�other�key�corporate�and�operational�employees�at�the�vice�president�level�and�above�are� eligible�to�receive�grants�of�PSUs.�Grant�amounts�for�2019�were�determined�using�base�salaries�and�a� multiplier�based�on�role:�

Title MultipleofBaseSalary(todeterminegrantvalue)
President&ChiefOperatingOfficer BaseSalaryx150%=grantvalue(1)
Chairman
DivisionalPresident BaseSalaryx75%=grantvalue
ExecutiveVicePresident
ChiefFinancialOfficer
SeniorVicePresident BaseSalaryx50%=grantvalue
VicePresident
  • (1) In�2019,�for�PSU�grants�to�the�President�&�Chief�Operating�Officer�and�to�the�Chairman,�the� multiple�of�base�salary�used�was�increased�from�125%�to�150%.�This�is�largely�due�to�the�increased� size,�scope�and�complexity�of�the�Corporation’s�operations,�and�related�integration�workload,�as�a� result�of�the�acquisition�of�Trinidad�Drilling�Ltd.�in�late�2018�and�the�corresponding�impact�on�those� roles.��

The�calculated�grant�value�is�then�divided�by�the�Corporation’s�volume�weighted�average�share�price� over�the�10�trading�days�prior�to�the�grant�date,�to�determine�the�final�number�of�units�granted.�

Any�eventual�payment�amount�a�NEO�may�ultimately�receive�depends�on�our�three�year�TSR�relative� to�the�performance�peer�group�(67%�weighting),�our�relative�return�on�capital�employed�(33%� weighting),�and�our�share�price�at�the�end�of�the�vesting�period.�We�believe�relative�TSR�and�return� on�capital�employed�compared�to�our�peers�are�important�measures�of�performance,�because�they� reflect�our�ability�to�outperform�companies�affected�by�similar�market�conditions�and�our�ability�to� efficiently�use�our�capital�over�time.��

At�the�end�of�the�three�year�performance�period,�a�multiplier�ranging�from�0–2.0x�is�calculated�by� ranking�our�three�year�TSR�against�the�TSR�of�the�performance�peer�group�(adjusted�to�reflect� dividends�paid�over�the�period),�and�our�three�year�ROCE�relative�to�our�performance�peer�group,� using�the�scales�below.�The�performance�multipliers�between�the�thresholds�described�will�be� calculated�on�a�sliding�scale.��

RelativeTSRRanking(67%weighting) Multiplier
MaximumPerformanceLevel 75%orhigher 2.0timespayout
TargetPerformanceLevel 50%(median) 1.0timespayout
ThresholdPerformanceLevel 35% 0.4timespayout
BelowThresholdPerformanceLevel Below35% 0payout
ROCE(33%weighting) Multiplier
MaximumPerformanceLevel 75%orhigher 2.0timespayout
TargetPerformanceLevel 50% 1.0timespayout
ThresholdPerformanceLevel 35% 0.4timespayout
BelowThresholdPerformanceLevel Below35% 0payout

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Ensign�Management�Information�Circular�|�2020�

The�overall�performance�multiplier�is�calculated�for�each�one�year�performance�period�in�the�term,� and�an�average�performance�multiplier�is�calculated�for�the�entire�term:��

PerformanceMultiplierFormula
20% Year1 67%weightingxRelativeTSRsharemultiplier0�2.0)+(33%weightingxROCE
weighting sharemultiplier0�2.0)=Year1PerformanceMultiplier
20% Year2 (67%weightingxRelativeTSRsharemultiplier0�2.0)+(33%weightingxROCE
weighting sharemultiplier0�2.0)=Year2PerformanceMultiplier
20% Year3 (67%weightingxRelativeTSRsharemultiplier0�2.0)+(33%weightingxROCE
weighting sharemultiplier0�2.0)=Year3PerformanceMultiplier
40% Years1�3 (67%weightingxRelativeTSRsharemultiplier0�2.0)+(33%weightingxROCE
weighting sharemultiplier0�2.0)=Years1�3PerformanceMultiplier
=PerformanceMultiplieroverthefullTerm

From�this,�the�total�payout�of�PSUs�on�maturity�is�determined�in�accordance�with�the�following� formula:�

NumberofPSUs
granted+
dividends
accumulated
overthe3�year
term
X Performance
multiplieroverthe
fullterm0�2.0x
X 10�dayvolume
weightedaverage
priceofESIshareson
theTSXoverthe10
tradingdayspriorto
theDec.31maturity
date
= PSUpayout,
subjectto
capof2%of
EBITDA(as
adjusted)

The�amount�that�NEOs�and�other�PSU�award�recipients�ultimately�may�receive�will�depend�on�the� number�of�units�including�dividend�reinvestment�over�the�three�year�term,�our�three�year�relative� TSR�and�ROCE�as�compared�with�our�performance�peer�group�and�our�share�price�at�the�end�of�the� term�of�the�award.��

The�aggregate�payout�of�all�PSUs�is�capped�at�2%�of�EBITDA�(as�adjusted)�for�the�final�year�of�the�term� of�each�award.�

  1. Option�Based�Awards�–�Stock�Options :�The�Compensation�Committee�periodically�awards�stock� options�to�NEOs�and�other�qualifying�employees�for�the�purpose�of�providing�an�incentive�that�will� foster�achievement�of�the�Corporation’s�long�term�objectives�and�allow�the�Corporation�to�attract� and�retain�quality�personnel.��

The�Compensation�Committee�considers�proposals�from�the�Executive�Management�Committee�for� awards�of�stock�options�to�NEOs�and�other�qualifying�employees�on�an�individual�basis.��

Stock�appreciation�rights�(SARs)�are�provided�to�certain�employees�residing�outside�of�Canada�and�the� United�States,�in�lieu�of�stock�options,�and�are�subject�to�the�same�general�conditions�and�restrictions� as�stock�options.�As�all�of�our�NEOs�currently�reside�in�North�America,�SARs�are�not�currently�awarded� to�any�of�our�NEOs.��

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Ensign�Management�Information�Circular�|�2020�

Beginning�with�stock�options�granted�in�2018,�the�Compensation�Committee�implemented�a�cap�on� the�aggregate�number�of�stock�options�and�SARs�that�may�be�approved�by�the�Compensation� Committee�in�any�fiscal�year�of�1%�of�the�Corporations’�issued�and�outstanding�Common�Shares.��

StockOptionPlan
FormofAward OptionsonCommonShares,whichareissuedfromtreasury.
WhoParticipates OfficersandemployeesoftheCorporation.Directorsarenoteligibletoreceivestock
optionsunlessheorsheisalsoanofficeroremployeeoftheCorporation.
ExercisePrice TheclosingpricefortheCorporation’sCommonSharesonthelasttradingday
precedingthedatetheoptionsweregranted.
Vesting 20%peryearoveraperiodoffive(5)years.
Term Expireattheendofthesixth(6th)yearfollowingthegrantdate.
Payout Uponexerciseofastockoption,theholderreceivesoneCommonShareforeachstock
optionexercised.Theholderofstockoptionsmayelecttoreceiveacashpayment,in
lieuofCommonShares,equaltothedifferencebetweenthestockoptionexercise
priceandthemarketpriceoftheCorporation’sCommonSharesontheTSXonthe
dateofexercise.
Termination Unvestedstockoptionsareforfeitedonthedateofcessationofemployment,
whetherduetoterminationwithoutcause,terminationwithcause,resignation,
retirementordeath.Vestedoptionsoutstandingasatthedateofcessationof
employmentmaybeexercisedinthe90daysfollowingtheeffectivedateofthe
cessationofemployment.
ChangeofControl Thevestingofstockoptionsinachangeofcontrolscenariowilldependonwhether
theNEOisactuallyorconstructivelyterminatedfollowingachangeofcontrolevent
(“doubletrigger”).
Restrictions Nooneperson,northeNEOsasagroup,mayholdstockoptionsexceeding5%ofthe
Corporation’soutstandingCommonShares.
Re�Pricing TheCorporationdoesnotre�priceout�of�the�money,orother,stockoptions.

Further�to�a�comprehensive�review�of�compensation�programs�undertaken�in�2016,�and�the� subsequent�implementation�of�the�PSU�Plan�in�2017,�grants�of�stock�options�to�NEOs�beginning�in� 2017�have�been�at�lower�numbers�than�historical�pre�2016�grant�amounts.�

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Ensign�Management�Information�Circular�|�2020�

5. Other�Compensation:��

Other�Compensation�Elements

Employee ForCanada�basedemployees,theCorporationalsoprovidesan“EmployeeSavingsPlan”,
SavingsPlan: wherebyemployeescanelecttocontribute,basedonyearsofservice,upto5%oftheir
regularearningstoasavingsplan.
Ensigncontributes,onamatchingbasis,bywayofthepurchaseofCommonShares
acquiredeachpayperiodthroughtheTSX.TheCommonSharesvestinfavourof
participatingemployeesasto50%intheyearfollowingtheyearinwhichthecontribution
wasmade,and50%inthenextyear.
CertainalternativeplansareprovidedbytheCorporationtoemployeesinjurisdictions
outsideofCanada.
Benefitsand Ensignprovidesstandardbenefitsaspartofacompetitivecompensationpackage.We
Perquisites: limittheuseofperquisitesforourexecutives,aswedonotthinktheyshouldbea
significantelementofcompensationbeyondwhatisappropriatetokeepEnsign
competitive.
TheCorporationdoesnothave:

EmploymentcontractswithanyofitsNEOsorotherexecutives;

Separatechangeincontrolagreements;or

Executivepensionorretirementplans.

Page�|�45�

Ensign�Management�Information�Circular�|�2020�

Performance�Graph��

The�following�performance�graph�illustrates�Ensign’s�five�year�cumulative�shareholder�return,�as� measured�by�the�closing�price�of�Ensign’s�Common�Shares�at�the�end�of�each�financial�year,�assuming�an� initial�investment�of�$100�on�December�31,�2014,�compared�to�the�S&P/TSX�Composite�Index�and�the�TSX� Oil�&�Gas�Equipment�&�Services�Index,�assuming�the�reinvestment�of�dividends,�where�applicable.��

==> picture [479 x 196] intentionally omitted <==

----- Start of picture text -----

160
140
120
100
80
60
40
20
0
2014 2015 2016 2017 2018 2019
Ensign�Energy�Services�Inc. S&P/TSX�Composite�Index TSX�Oil�&�Gas�Equipment�&�Services�Index
----- End of picture text -----

2014 2015 2016 2017 2018 2019
EnsignEnergyServicesInc. 100 75 102 75 60 91
S&P/TSXCompositeIndex 100 92 111 121 110 136
TSXOil&GasEquipment&
ServicesIndex
100 61 85 72 51 36

The�December�31,�2014�starting�point�in�the�performance�graph�reflected�a�period�of�softening�in�the� oilfield�services�markets,�which�had�begun�earlier�that�year�and�increased�through�year�end.�Due�primarily� to�an�oversupply�of�equipment�in�North�American�markets,�activity�levels�in�oilfield�services�began�to� decline�and�our�share�price�dropped�significantly�in�the�last�half�of�2014�as�the�outlook�worsened�due� primarily�to�falling�oil�and�gas�commodity�prices.��

Steep�declines�in�energy�commodity�prices�continued�throughout�2015,�as�energy�supply�and�demand� fundamentals�remained�imbalanced.�The�continued�decrease�in�our�share�price�in�2015�reflected�a�decline� in�operating�revenue�of�40%�as�compared�with�2014,�reflective�of�the�challenged�commodity�prices�and� corresponding�weak�demand�for�oilfield�services.��

Continued�low�commodity�prices�prolonged�the�period�of�challenged�operating�and�financial�results�across� the�energy�sector�into�2016.�However,�oil�and�natural�gas�prices�began�to�stabilize�and�slowly�recover� throughout�the�year,�such�that�notwithstanding�a�further�decline�in�operating�revenue�of�38%�in�2016�as� compared�to�2015,�our�share�price�began�a�modest�recovery�over�the�year.�

Although�our�financial�results�for�2017�improved�as�compared�with�2016�and�2015,�and�the�modest� recovery�of�crude�oil�and�natural�gas�prices�continued�throughout�the�year,�our�share�price,�together�with�

Page�|�46�

Ensign�Management�Information�Circular�|�2020�

the�share�prices�of�our�Canadian�peers,�declined�somewhat.�This�was�due,�in�part,�to�an�imbalance� between�rig�supply�and�customer�demand�resulting�in�drilling�and�services�contracts�being�negotiated�at� lower�rates�and�for�shorter�terms�than�the�preceeding�contracts.�Moreover,�ongoing�uncertainties�in� Canada�regarding�pipeline�access�for�both�oil�and�gas�and�energy�supply�and�demand�fundamentals� adversely�impacted�oifield�service�companies�operating�in�Canada.��

In�2018,�production�in�the�United�States�increased,�resulting�in�some�downward�pressure�on�global�crude� oil�prices,�which�was�somewhat�off�set�by�OPEC�supply�cuts�that�took�effect�during�the�year.�Compounding� this�effect,�by�the�latter�part�of�2018,�the�price�differential�between�WTI�spot�prices�and�lower�Canadian� oil�spot�prices�increased�to�wider�levels�than�historical�differentials.�Although�there�was�some�narrowing� of�this�differential�in�the�latter�part�of�2018,�the�resulting�moderate�activity�levels�in�Canada�negatively� impacted�our�overall�activity�levels.��

In�the�aggregate,�although�our�2018�financial�results�were�again�improved�year�over�year,�our�share�price� (and�the�share�prices�of�many�oilfield�services�companies�and�our�Canadian�peers,�in�particular)�continued� to�be�negatively�impacted�by�these�macro�economic�conditions.��

Crude�oil�prices�modestly�improved�early�in�2019�over�the�2018�exit,�due�in�part�to�additional�production� cuts�announced�by�OPEC�and�other�select�non�OPEC�countries�in�late�2018.�However�average�crude�oil� prices�generally�were�slightly�lower�throughout�the�year�as�compared�with�2018.��

Operating�activity�overall�in�Canada�was�modestly�lower�in�2019�as�compared�with�2018,�in�part�due�to� the�price�differential�between�WTI�spot�prices�and�lower�Canadian�oil�spot�prices,�which�continued�to� demonstrate�significant�volatility.�In�the�aggregate,�although�our�2019�financial�results�were�again� improved�year�over�year,�our�share�price�(and�the�share�prices�of�many�oilfield�services�companies�and� our�Canadian�peers,�in�particular)�continued�to�be�negatively�impacted�by�these�macro�economic� conditions.�

2019�Compensation�and�Pay�Mix��

The�following�pie�charts�show�the�respective�actual�pay�mixes�as�between�fixed�and�variable� compensation�achieved�for�each�of�the�NEO’s�for�2019�and�2018.�As�indicated,�historically�most�of�our� NEOs’�compensation�has�been�delivered�through�variable�compensation.��

The�pie�charts�demonstrate�fairly�consistent�proportions�of�total�pay�granted�to�or�received�by�NEOs�in� the�form�of�variable�compensation.�In�2018�and�in�2019,�the�compensation�provided�to�NEOs�included�the� four�(4)�elements�described�above,�being�base�salary,�annual�cash�bonus,�a�grant�of�PSUs�and�a�grant�of� stock�options�(of�less�than�historical�grant�levels).��

For�a�breakdown�of�all�elements�of�actual�compensation�paid�in�2019,�please�refer�to�the�“Summary� Compensation�Table”.���

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Ensign�Management�Information�Circular�|�2020�

2019�

==> picture [198 x 130] intentionally omitted <==

----- Start of picture text -----

Robert�H.�Geddes
Fixed
34%
Variable
66%
----- End of picture text -----

Michael�R.�Gray

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----- Start of picture text -----

Fixed
37%
Variable
63%
----- End of picture text -----

Thomas�J.�Connors

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----- Start of picture text -----

Variable Fixed
49% 51%
----- End of picture text -----

2018�

Robert�H.�Geddes

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----- Start of picture text -----

Fixed
34%
Variable
66%
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Michael�R.�Gray

==> picture [87 x 85] intentionally omitted <==

----- Start of picture text -----

Fixed
Variable
43%
57%
----- End of picture text -----

Thomas�J.�Connors

==> picture [86 x 86] intentionally omitted <==

----- Start of picture text -----

Fixed
Variable
46%
54%
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Brent�J.�Conway

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----- Start of picture text -----

Variable
Fixed
47%
53%
----- End of picture text -----

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----- Start of picture text -----

N/A�
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Ensign�Management�Information�Circular�|�2020�

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----- Start of picture text -----

2019� 2018�
Michael�R.�Nuss Michael�R.�Nuss
Fixed
Variable Fixed Variable
44%
48% 52% 56%
N.�Murray�Edwards
N.�Murray�Edwards
Fixed Fixed
29% 31%
Variable Variable
71% 69%
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Compensation�Objective�Supported��

Base�salaries�reflect�Ensign’s�goal�of�retaining�and�attracting�qualified�individuals.�Base�salary� determination�for�the�NEOs�is�based�primarily�on�past�and�expected�future�contribution,�value�to�the� organization,�market�competitiveness�and�individual�performance.�Industry�challenges�and�outlook�as� well�as�general�economic�conditions�in�the�regions�in�which�Ensign�operates,�factors�which�customarily� affect�Common�Share�performance,�are�also�considered�in�determining�base�salary�levels.��

In�early�2015,�in�response�to�the�challenging�industry�outlook�which�began�in�mid�2014�and�was�ongoing� at�that�time,�the�NEOs�accepted�a�10%�reduction�in�base�salary�or�annual�consulting�fee,�coinciding�with� a�period�of�lower�performance�for�the�Common�Shares.�This�reduction�largely�remained�in�place�until�mid� 2018,�although�certain�adjustments�had�been�made�previously�to�reflect�promotions�and�increases�in� responsibility.��

In�August�2018,�certain�NEOs�who�had�had�their�salaries�rolled�back�in�January�2015,�and�had�not� otherwise�received�an�increase�since�early�2015,�received�an�increase�equal�to�half�of�the�amount�of�the� 2015�roll�back.�The�result�was�that�effective�as�of�January�1,�2019,�all�employees�(including�NEOs)�who� had�received�a�salary�rollback�in�2015,�and�who�had�not�otherwise�received�an�increase�since�early�2015,� had�their�annual�base�salary�restored�to�the�pre�2015�level.�

Through�the�industry�downturn�beginning�in�2015,�the�proportion�of�variable�compensation�earned�and� paid�decreased�substantially�as�compared�with�fixed�elements�of�compensation.�In�2018�and�2019,�in�part� due�to�modest�improvements�in�industry�conditions,�with�the�majority�of�compensation�granted�to�most� of�our�NEOs�was�again�being�derived�from�variable�compensation.��

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Ensign�Management�Information�Circular�|�2020�

In�2019,�as�in�2018,�no�variable�compensation�benefit�was�realized�by�the�NEOs�from�the�exercise�of�stock� options�or�from�any�PSU�award�(the�first�tranche�of�which�vested�on�December�31,�2019).��

The�pie�charts�(which�reflect�compensation�paid�as�well�as�compensation�granted�but�not�paid)�generally� reflect�fairly�consistent�total�compensation�in�2019�as�compared�with�2018,�although�the�reported�totals� for�NEOs�who�were�paid�in�US�dollars�(Mr.�Nuss)�are�higher�in�2018�than�in�2019�in�part�due�to�the�year� end�exchange�rates�used,�of�CAD�$1.00�=�USD�$1.30�for�2019�amounts,�and�CAD�$1.00�=�USD�$1.36�for� 2018�amounts.��

Mr.�Gray’s�total�compensation�in�2019�was�higher�than�in�2018�due�to�a�merit�and�responsibility�based� salary�increase�in�the�year,�which�had�a�corresponding�impact�on�his�achieved�annual�cash�bonus.�Further,� Mr.�Geddes,�Mr.�Gray�and�Mr.�Edwards�each�earned,�in�2019,�an�extraordinary�one�time�bonus�of� $200,000,�in�connection�with�the�completion�on�April�10,�2019,�of�the�final�refinancing�steps�related�to� the�acquisition�of�Trinidad�Drilling�Ltd.,�as�described�in�further�detail�below�under�“2019�Annual�Bonus� Calculation�–�Cash�Award”.��

These�outcomes�for�both�2019�and�2018�reflect�the�Corporation’s�compensation�philosophy�of�delivering� a�meaningful�proportion�of�total�compensation�to�NEOs�using�variable�pay,�such�that�in�years�such�as� these�where�the�Corporation�experiences�very�challenging�market�conditions�and�prolonged�poor� economic�fundamentals,�variable�pay�declines�significantly.�The�Corporation’s�compensation�program�is� structured�to�achieve�significantly�increased�variable�pay�during�years�of�stronger�financial,�safety�and� relative�share�price�performance.�

Ensign’s�ABP�pays�out�when�certain�minimum�thresholds�are�met�for�corporate�earnings,�safety�results� and�the�achievement�of�strategic�objectives�over�a�one�year�period.�Value�from�PSUs�is�realized�when� Ensign’s�performance�relative�to�its�performance�peer�group�on�the�metrics�of�total�shareholder�return� and�return�on�capital�employed�are�at�or�above�a�threshold�level,�and�where�Ensign’s�share�price� appreciates�over�the�medium�term.�Lastly,�value�is�realized�from�stock�options�when�Ensign’s�share�price� appreciates�over�the�long�term.��

The�annual�and�long�term�incentives�are�variable�or�at�risk�compensation,�which�are�awarded� based�on�corporate�and�business�unit�performance.�The�relative�weighting�of�these�elements�varies� by�level�within�the�Corporation,�where�the�most�senior�individuals,�including�the�NEOs,�have�the� highest�proportion�of�compensation�at�risk.�This�is�intended�to�ensure�alignment�between�an� individual’s�ability�to�influence�business�unit�and�corporate�results,�and�the�degree�to�which�his�or� her�compensation�is�affected�by�those�results.�

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Ensign�Management�Information�Circular�|�2020�

2019�Performance�of�the�NEO’s�

In�late�2018,�Ensign�was�successful�in�acquiring�one�of�its�peers,�Trinidad�Drilling�Ltd.�This�significant� acquisition�is�the�largest�in�Ensign’s�history�–�the�size�of�our�global�drilling�rig�fleet�nearly�doubled� and�our�geographic�footprint�expanded.�The�integration�of�Trinidad’s�operations�into�Ensign�was� well�underway�by�the�end�of�2018�and�continued�throughout�2019.�The�achievement�of�operational,� cost�and�revenue�synergies,�initiated�in�late�2018,�were�achieved�throughout�2019�and�will�be� ongoing�as�necessary.��

Each�of�Ensign’s�NEOs�was�impacted�throughout�2019�by�this�late�2018�acquisition.�

Ensign�also�achieved�success�in�a�number�of�other�aspects�in�2019,�including�with�respect�to�our� financial�and�safety�performance,�and�we�continue�to�be�well�positioned�to�capitalize�on�business� opportunities,�even�as�the�overall�market�environment�continues�to�experience�significant� challenges.

The�Board�of�Directors�believes�that�Ensign�continues�to�compare�favourably�to�its�peer�group�on�the�key� metrics�of�balance�sheet,�capital�structure,�return�on�invested�capital�and�cash�flow.�Specific�measures� have�been�put�into�place�to�monitor�achievement�of�corporate�strategy,�including�return�on�invested� capital,�total�shareholder�return,�annual�growth�targets,�reliability�and�cost�targets.�

Progress�generally�continues�to�be�made�towards�the�Corporation’s�health,�safety�and�environmental� performance�goals�on�employee�development,�recordable�injuries,�energy�efficiency,�environmental� stewardship�and�reliability.�Our�focus�on�and�commitment�towards�behaviour�based�training,�in�particular� for�inexperienced�personnel,�has�resulted�in�sustained�improvements.�Our�NEOs�continued�to�provide� outstanding�leadership�in�focusing�on�operational�excellence,�capital�discipline�and�strategic�direction.�In� 2019�the�Corporation�specifically�achieved�the�following:

2019�Achievements�

Integrationof WeacquiredTrinidadinlate2018to:(i)growourhigh�qualityrigfleet;(ii)expandourpresence WeacquiredTrinidadinlate2018to:(i)growourhigh�qualityrigfleet;(ii)expandourpresence
Trinidad inactiveU.S.andinternationalmarkets;(iii)increaseouroverallsizeandscalewithinthe
DrillingLtd. industrybynearlydoublingourrigfleetandbecomingthethirdlargestdrillingrigprovider
(“Trinidad”) globally(asmeasuredbyfleetsize);(iv)expandourcustomerbase;and(v)takeadvantageof
materialcostsavingsandoperationalandscale�basedsynergies.Throughout2019,Trindad’s
globaloperationswereintegratedintoEnsign’sexistingoperationalstructurewhile
maintainingoverallsafetyincidentratesathistoriclows.
Financial RelatedtotheacquisitionofTrinidad:
  • We�redeemed�all�of�our�outstanding�USD�$200�million�in�senior�guaranteed�notes,� comprised�of�USD�$100�million�of�3.97%�notes�due�February�22,�2019,�and�USD�$100� million�of�4.54%�notes�due�February�22,�2022;�

  • We�repurchased�the�outstanding�US$350�million�of�Trinidad�senior�notes�due� February�15,�2025;�and�

  • We�entered�into�a�note�indenture�with�respect�to�the�issue�of�senior�notes�in�the� principal�amount�of�USD�$700�million,�due�2024�and�bearing�interest�at�9.25%.�

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Ensign�Management�Information�Circular�|�2020�

These�refinancing�steps�have�provided�us�with�the�resources�and�the�flexibility�required�to� continue�to�service�our�operational�needs.�

Financial Throughongoingprudentcostmanagement,wedeclaredtotaldividendsin2019totalling
$0.42perCommonShare.
Financial Weachievedgeneralandadministrativeexpenseof3.45%ofrevenuein2019,alevelthat
remainsexceptionalinourpeergroup.
Safety In2019,Ensignachievedaglobal“TotalRecordableInjuryRate”(TRIR)of1.05,representing
slightlymorethanonerecordableincidentper100full�timeworkersduring2019,anhistoric
lowfortheCorporation,whileexperiencinga43%increaseinexposurehoursresultingfrom
theTrinidadintegration.Theresultisanoutcomeofhavingastrongfocusonleadingindicators
suchasleadershipvisits,operationalexcellencemeetingsandtheimplementationofeffective
correctiveandpreventativemeasures.
Safety In2019wesuccessfullyintegratedallTrinidadrigstocoreHSEprocesses.Inaddition,were�
launchedanupgradedversionofourGlobalRiskManagementSystem(GRMS).Thenew
versionofGRMSisfunctionalinallouroperatinglanguages(English,SpanishandArabic)and
supportsaconsistentdeliveryofkeyHSEprocesses,suchasincidentreportingand
investigations,BehaviorBasedSafety(BBS),observationtrendingandJobSafetyAnalysis(JSA).
Operations Successfullyupgradedandspuddedthreedrillingrigsintotwonewcountries–two2)drilling
rigsinKuwait(throughajointventureofwhichtheCorporationisa60%partner)andone(1)
drillingriginBahrainwhichis100%ownedbyEnsign.
Innovation/ TheEnsignEdge®rigcontrolssystemwereinstalledonapproximately50drillingrigsinour
Technology fleetbytheendof2019.ThesesystemsincludeoneormoreofControls,ControlsPlus,
Analytics/Historian,andthefullRigOperatingSystem.Totheendof2019,theEnsignEdge®
hascaptureddatafrom8,818totalwells,95milliontotalfeetofdrillingand51billiondata
records.
Training AspartoftheTrinidadacquisition,Ensignexecutedonopportunitiestoconsolidatelearning
managementsystems(LMSs),ultimatelygoingfromfour(4)differentsystemsintooneglobal
platformcalled“Elevate”.Inaddition,Ensignmergedits“GlobalSkillsStandard”(GSS)with
Trinidad’sEssentialSkillsTraining(TEST)program,establishingaminimumbaselevelof
competencyforEnsignfieldcrewsworldwide.Fullimplementationacrosstheentiredrillingrig
fleetisplannedfor2020.

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2019�Annual�Bonus�Calculation�–�Cash�Award��

As�described�in�the�section�above�entitled�“Executive�Compensation�Components�–�Detailed�Description”,� for�the�2019�year,�Ensign�rewarded�the�NEOs�and�other�ABP�participants�based�on�the�performance� achieved�versus�annual�approved�targets,�as�follows:�

Together,�the�achievement�in�2019�of�financial�and�safety�metrics�resulted�in�a�total�annual�cash� bonus�pursuant�to�the�ABP�of�between�24%�and�41%�of�earned�base�salary�for�the�NEOs�(depending� on�bonus�level�and�the�proportion�of�the�annual�bonus�which�is�based�on�corporate�consolidated� results�as�compared�with�divisional�results).

Metrics Metrics 2019Achievement
Financial In2019,onaconsolidatedbasis,theCorporation’sEBITDA(asadjusted)achieved
Performance approximately85%oftheapprovedannualbudgetfor2019,resultinginanannualcash
bonuspayouttotheNEOsbasedonthismetric.
Asset Efficiency In2019,onaconsolidatedbasis,theAERratiowaslessthan15%,resultinginnoannualcash
Ratio bonuspaidtoNEOsbasedonthismetric.
Safety Safetyperformancemetricsonaconsolidatedbasisin2019achievedapproximately112
Performance pointsoutofatargetof100andastretchof120.Dependingonbonuslevel,splitsbetween
corporateanddivisionalresults,andothersafetygoals,NEOsachievedacashbonusof
between9.9%and12.6%forthisbonuscomponent.
StrategicGoals Fourpre�approvedstrategicgoalsweresetfortheNEOgroupin2019.Onewaspartially
achieved,twowereachievedandonewasexceeded.Thisresultedintheachievementofa
cashbonusofeither11.9%or8.4%forNEOs,dependingonbonuslevel,onthismetricfor
theyear.

Governance�of�the�financial�performance�criteria�and�metrics�is�comprehensive.�Reviews�of�measures,� weightings,�targets�and�performance�results�are�conducted�at�various�times�of�the�year�by�the�appropriate� divisional,�corporate�and�Compensation�Committee�levels�before�being�approved�by�the�Board�of� Directors.�Annual�safety�goals�for�each�division�are�reviewed�by�the�Health,�Safety�&�Environment� Committee�(“ HSE�Committee ”)�of�the�Board�of�Directors,�to�ensure�alignment�with�the�objectives�of�that� Committee.�

In�the�2019�year,�the�Compensation�Committee�approved�the�payment�of�an�extraordinary,�one�time� bonus�for�each�of�four�(4)�key�members�of�the�Executive�Management�Committee,�three�(3)�of�whom�are� NEOs�(Mr.�Geddes,�Mr.�Gray�and�Mr.�Edwards),�in�the�amount�of�$200,000�each.�This�bonus�was�approved,� only�after�the�completion,�on�April�10,�2019,�of�the�final�refinancing�steps�related�to�the�acquisition�of� Trinidad�Drilling�Ltd.,�to�recognize�and�reward�the�efforts�and�achievements�of�each�of�these�specific� individuals�in�connection�with�this�acquisition�and�the�related�refinancing�transactions.�

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Ensign�Management�Information�Circular�|�2020�

2019�PSUs�–�Achievement�of�Performance�Metrics��

The�inaugural�grant�of�PSUs�under�the�PSU�Plan�took�place�in�2017�and�those�awards�matured�on� December�31,�2019�and�are�payable�in�2020.�As�described�above,�the�performance�metrics�used�to� calculate�any�eventual�payout�of�PSUs�are�based�upon�relative�total�shareholder�return�and�return�on� capital�employed,�as�measured�against�our�performance�peer�group.�For�2019,�the�following�performance� metrics�were�achieved:��

2019PerformanceMultiplier 2019PerformanceMultiplier
Component 2019
RelativeTSRRank 24.9%
RelativeTSRMultiplier(67%weighting) 0.0x
ROCEActual 58.8%
ROCEMultiplier(33%weighting) 1.352x
CombinedMultiplier 0.446x

2019�Stock�Option�Grants��

NEOs�and�certain�other�employees�are�eligible�to�receive�grants�of�stock�options.�Grants�of�stock�options� are�recommended�by�the�Executive�Management�Committee�to�the�Compensation�Committee�for�review� and�approval.�Options�are�not�guaranteed�to�be�granted�annually�or�on�a�pre�determined�schedule,�but� are�granted�at�the�discretion�of�the�Compensation�Committee,�having�regard�to�market�cycles,� recruitment,�retention,�competitive�compensation,�roles,�responsibilities�and�individual�performance,�as� balanced�by�the�number�of�options�available�and�the�requirement�to�restrict�the�volume�of�outstanding� options�below�acceptable�dilution�thresholds.��

The�NEOs�received�the�following�stock�option�grants�in�2019:�

Name March2019Grant
StockOptions
Geddes,RobertH. 95,000
Gray,MichaelR. 28,500
Connors,ThomasJ. 28,500
Conway,BrentJ. 28,500
Nuss,MichaelR. 28,500
Edwards,N.Murray 95,000

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Ensign�Management�Information�Circular�|�2020�

Looking�Ahead�to�2020��

Base�salaries�for�NEOs�in�2020�initially�were�to�have�remained�at�2019�levels,�however�as�descibed� elsewhere�in�this�Information�Circular,�effective�April�1,�2020,�a�significant�wage�roll�back�will�be� implemented�which�will�impact�all�of�our�non�field�personnel�globally,�including�the�NEOs.�Specifically,the� base�annual�compensation�of�to�our�NEOs,�at�the�suggestion�of�Mr.�Edwards�and�Mr.�Geddes,�have�been� reduced�(effective�April�1,�2020)�as�follows:��

  • By�12.5%�(Mssrs.�Gray,�Connors,�Conway�and�Nuss);�

  • By�20%�(Mr.�Geddes);�and��

  • By�40%�(Mr.�Edwards).�

This�step�became�necessary�in�light�of�the�recent�and�evolving�impact�of�the�novel�coronavirus�(COVID� 19)�outbreak�upon�global�commerce�and�energy�demand,�dramatic�commodity�price�declines,�and�related� market�disruptions.�Elements�of�variable�compensation�remain�unchanged�in�2020,�although�reductions� to�base�annual�compensation�will�have�the�effect�of�reducing�potential�annual�bonus�plan�payments�and� will�reduce�the�number�of�PSUs�granted,�as�those�grants�take�place�on�April�1�of�each�year�and�will� therefore�be�basd�on�the�reduced�salaries.�In�light�of�recent�dramatic�declines�in�the�price�of�crude�oil�and� the�anticipated�impact�on�activity�levels�for�the�remainder�of�the�year,�the�Compensation�Committee�will� make�further�adjustments�as�necessary�to�the�compensation�of�NEOs�and�all�other�employees.�We�do�not� expect�the�design�of�our�compensation�programs�to�change�materially�in�2020.��

Summary�Compensation�Table�

The�following�table�sets�forth�for�the�year�ended�December�31,�2019�information�concerning�the� compensation�paid�or�payable�to�the�executive�officers�of�the�Corporation�whose�total�compensation� exceeded�$150,000�and�who�met�the�requirements�to�be�classified�as�“Named�Executive�Officers”� pursuant�to�National�Instrument�51�102.�As�described�further�in�the�Statement�of�Corporate�Governance� Practices,�the�Corporation�does�not�have�a�named�Chief�Executive�Officer.�Specific�aspects�of�this� compensation�are�covered�in�greater�detail�in�subsequent�tables.�

The�total�cash�and�non�cash�compensation�paid�or�awarded�to�the�NEOs�over�the�past�three�(3)�years�is� detailed�in�the�following�table.�Amounts�earned,�but�not�paid,�are�reflected�in�the�year�in�which�the� compensation�was�earned.��

All�amounts�are�in�Canadian�dollars.�With�respect�to�those�NEOs�who�are�paid�in�United�States�dollars�(Mr.� Nuss),�the�translation�to�Canadian�dollars�was�at�the�December�31,�2019�rate�of�USD�$1�=�CAD�$1.30.��

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Ensign�Management�Information�Circular�|�2020�

NameandPrincipal
Position
Year
Salary
($)
Share�
Based
Awards
(PSUs)($)
(3)
Option�
Based
Awards(4)
($)
Non�Equity
IncentivePlan
Compensation
Annual
IncentivePlans
(5)
($)
Allother
Comp.(6)
($)
TotalComp.
($)
Geddes,RobertH.
President&Chief
OperatingOfficer
2019
2018
2017
700,000
586,000
573,740
1,050,000
717,175
717,175
86,450
115,700
238,500
485,303
412,147
328,933
127,801
51,103
43,087
2,449,554
1,882,125
1,901,435
Gray,Michael
ChiefFinancialOfficer
2019
2018
2017
325,000
262,000
220,000
243,750
195,000
165,000
25,935
44,500
79,500
332,462
123,988
84,086
26,218
17,301
11,000
953,365
642,789
559,586
Connors,ThomasJ.
ExecutiveVicePresident
CanadianOperations
2019
2018
380,000
370,000
284,438
277,500
25,935
44,500
90,167
128,649
32,476
20,999
813,016
841,648
Conway,BrentJ.
ExecutiveVicePresident
InternationalOperations
2019
400,000
300,000
25,935
117,424
92,004
935,363
Nuss,MichaelR.(1)
ExecutiveVicePresident
UnitedStatesOperations
2019
2018
2017
513,500
497,420
456,250
384,197
351,120
342,891
25,935
44,500
79,500
152,651
297,824
139,930
93,166
53,673
47,438
1,169,449
1,244,537
1,066,009
Edwards,N.Murray(2)
Chairman
2019
2018
2017
0
0
0
750,000
503,800
503,800
86,450
115,700
238,500
403,788
289,525
231,068
500,000
425,432
403,040
1,740,238
1,334,457
1,376,408
(1) Mr.Nuss’baseannualsalaryin2019wasUSD$395,000.Forreportingpurposes,theUSdollarportionofallcompensationelementsf
Nuss(whoreceivesallofhiscompensationinUSdollars)weretranslatedatthefollowingexchangerates:
Date
ExchangeRate
December31,2019
USD$1.00=CAD$1.30
December29,2018
USD$1.00=CAD$1.36
December30,2017
USD$1.00=CAD$1.25

(1) Mr.�Nuss’�base�annual�salary�in�2019�was�USD�$395,000.�For�reporting�purposes,�the�US�dollar�portion�of�all�compensation�elements�for�Mr.� Nuss�(who�receives�all�of�his�compensation�in�US�dollars)�were�translated�at�the�following�exchange�rates:�

(2) Mr.�Edwards�is�not�an�employee�of�the�Corporation�and�does�not�receive�a�salary.�However,�he�and�a�controlled�corporation�provide�ongoing� management�services�and�strategic�advice�to�Ensign�and�thus�Mr.�Edwards�meets�the�definition�of�a�NEO.�Mr.�Edwards’�controlled�corporation� receives�an�annual�consulting�fee�for�the�costs�it�incurs�on�behalf�of�and�for�services�it�provides�to�the�Corporation,�included�in�the�column� “All�other�compensation”.�When�awarded,�Mr.�Edwards�may�personally�receive�variable�compensation�amounts,�for�example�pursuant�to�the� Annual�Bonus�Plan,�the�Stock�Option�Plan,�the�PSU�Plan�or�such�other�compensation�awards�or�plans�as�may�be�approved�by�the�Compensation� Committee�from�time�to�time.�

(3) Share�based�awards :�Share�based�awards�represent�the�grant�date�fair�value�of�PSU�awards.�US�dollar�amounts�(Mr.�Nuss)�were�converted� to�Canadian�dollars�on�the�grant�date�using�the�following�exchange�rates:�2017�awards�–�1.25x;�2018�awards�–�1.28x;�2019�awards�–�1.30x.��

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Ensign�Management�Information�Circular�|�2020�

  • (4) Option�based�awards :�The�grant�date�fair�value�of�option�based�awards�granted�to�NEOs�pursuant�to�the�Stock�Option�Plan�is�calculated�for� compensation�disclosure�purposes�using�the�Black�Scholes�option�pricing�model�with�the�following�assumptions:�
GrantDateFair
Value
March2019
$0.91
Black�ScholesOptionPricingModel–Assumptions
AverageRiskFree
InterestRate
AverageExpected
Life
ExpectedVolatility
1.68%
5years
40.0%
April2018
$0.89
2.02%
5years
40.0%
March2017
$1.59
1.26%
5years
40.0%

The�fair�value�for�compensation�disclosure�purposes�differs�from�accounting�fair�value,�as�the�option�based�awards�are,�under�IFRS�2,� considered�to�be�compound�financial�instruments�and�accounted�for�as�cash�settled�awards.�Accordingly,�these�awards�are�re�valued�at�every� quarter�end.��

  • (5) Annual�Incentive�Plans:�Annual�incentive�plans:� Annual�incentive�plans�include�the�cash�bonus�amounts�earned�under�the�Annual�Bonus� Plan.�Cash�bonus�awards�are�paid�to�the�NEOs�in�cash�in�April�or�May�following�the�year�in�which�they�were�earned�and�accrued.�Because�of� the�timing�of�the�payments�of�these�bonuses�relative�to�the�date�of�this�Information�Circular,�prior�year�numbers�are�adjusted�as�appropriate� to�reflect�actual�final�payment�amounts.�The�2017�figures�represent�the�calculated�cash�bonus,�rolled�back�from�the�actual�bonus�achieved,� following�the�application�of�the�cap�on�the�aggregate�payment�at�3%�of�EBIDTA�(as�adjusted),�as�discussed�elsewhere�in�this�Information� Circular.�The�2019�figures�reported�for�Mr.�Geddes,�Mr.�Gray�and�Mr.�Edwards�also�include�an�extraordinary,�one�time�bonus�of�$200,000..� This�bonus�was�approved,�only�after�the�completion,�on�April�10,�2019,�of�the�final�refinancing�steps�related�to�the�acquisition�of�Trinidad� Drilling�Ltd.,�to�recognize�and�reward�the�efforts�and�achievements�of�each�of�these�specific�individuals�in�connection�with�this�acquisition� and�the�related�refinancing�transactions.�

  • (6) All�other�compensation :��

  • (i)� Canadian�Employee�Savings�Plan:�This�includes�Common�Shares�that�have�vested�during�the�year�to�the�benefit�of�NEOs�who�elect�to� participate�in�the�Corporation’s�“Employee�Savings�Plan”�for�Canadian�based�employees.�Up�to�5%�of�a�participating�employee’s�base� salary�is�matched�in�cash�contributions�made�by�the�Corporation,�used�to�purchase�Common�Shares�on�the�TSX�on�behalf�of�the�NEO,� which�vest�to�the�benefit�of�each�NEO�equally�over�two�years�each�February�1.�The�value�of�the�vested�shares�is�derived�by�multiplying� the�Common�Share�price�on�the�vesting�date�by�the�number�of�Common�Shares�vesting�to�the�benefit�of�the�NEO�on�that�date.�

  • (ii) Benefits:�Our�global�benefits�programs�offer�competitive�comprehensive�coverage�and�cost�sharing.�Benefits�programs�offered�to� NEO’s�are�the�same�benefits�as�are�offered�to�all�employees�in�the�applicable�region.��

  • (iii) Perquisites:�Our�executives�receive�limited�perquisites�consistent�with�our�industry�peers�and�which�form�a�part�of�their�competitive� compensation�packages.�The�availability�of�some�perquisites�varies�by�position.�

  • (iv) The�amounts�reported�as�“all�other�compensation”�for�each�NEO�include�the�following:�

    • Mr.�Geddes:�The�employer�match�pursuant�to�the�Canadian�Employee�Savings�Plan,�a�vehicle�allowance,�parking,�the�employer� portion�of�benefit�premiums,�club�memberships,�a�housing�amount�(to�cover�the�cost�of�a�secondary�residence�for�Mr.�Geddes�in� Houston,�which�represents�the�significant�portion�of�time�he�is�required�to�spend�in�Houston)�and�an�executive�health�program.�

    • Mr.�Gray:�The�employer�match�pursuant�to�the�Canadian�Employee�Savings�Plan,�parking,�the�employer�portion�of�benefit� premiums,�a�club�membership�and�an�executive�health�program.��

    • Mr.�Connors:�A�vehicle�allowance,�parking,�the�employer�portion�of�benefit�premiums,�a�club�membership,�a�gym�membership� and�an�executive�health�program.�

    • Mr.�Conway:�A�$50,000�country�allowance�paid�to�Mr.�Conway�with�respect�to�his�responsibilities�over�the�Corporation’s� operations�in�Latin�America,�the�Middle�East�and�Australia,�a�vehicle�allowance,�parking,�the�employer�portion�of�benefit� premiums�and�a�club�membership.�

    • Mr.�Nuss:�A�USD�$30,000�country�allowance�paid�to�Mr.�Nuss�with�respect�to�his�responsibilities�over�the�Corporation’s�operations� in�Latin�America�(this�country�allowance�will�be�discontinued�at�the�end�of�2020�as�these�responsibilities�fully�transition�to�Mr.� Conway),�a�vehicle�allowance,�the�employer�portion�of�benefit�premiums,�employer�contribution�to�a�401(k)�plan�and�a�club� membership.���

    • Mr.�Edwards:�The�consulting�fee�described�in�Note�2�above.�Mr.�Edwards�does�not�receive�any�additional�perquisites�or�benefits� from�the�Corporation.��

Page�|�57�

Ensign�Management�Information�Circular�|�2020�

Outstanding�Share�Based�Awards�and�Option�Based�Awards�

The�following�table�sets�forth�for�each�NEO�all�option�based�and�share�based�awards�outstanding�as�at� December�31,�2019.�

Name Option�BasedAwards Share�BasedAwards(PSUs) Share�BasedAwards(PSUs) Share�BasedAwards(PSUs)
GrantDate
(dd/mm/yyyy)
#ofSecurities
Underlying
Unexercised
Options(1)(2)
(#)
Option
Exercise
Price($)
Option
Expiration
Date
(dd/mm/yyyy)
Valueof
Un�
Exercised
in�the�
Money
Options(3)
($)
Plan
Year
Numberof
sharesor
unitsof
sharesthat
havenot
vested(#)
Marketor
payoutvalue
ofshare�
basedawards
thathavenot
vested(4)
Marketor
payoutvalue
ofvested
share�based
awardsnot
paidoutor
distributed
Geddes,
RobertH.
Total:
03/12/2014
02/12/2015
10/03/2017
05/04/2018
12/03/2019
200,000
250,000
150,000
130,000
95,000
825,000
10.37
7.30
7.98
5.60
5.69
31/12/2019
31/12/2020
31/12/2021
31/12/2022
31/12/2023
0
0
0
0
0
0
PSU
PSU
PSU
2017
2018
2019
141,444
146,115
204,131
491,690
$403,115
$416,428
$581,774
$1,401,317
��
��
��
Gray,
MichaelR.
Total:
02/12/2015
10/03/2017
05/04/2018
12/03/2019
20,000
50,000
50,000
28,500
7.30
7.98
5.60
5.69
31/12/2020
31/12/2021
21/12/2022
31/12/2023
0
0
0
0
PSU
PSU
PSU
2017
2018
2019
32,542
39,729
47,388
$92,744
$113,227
$135,055
$341,026
��
��
��
148,500 0 119,659
Connors,
ThomasJ.
Total:
03/12/2014
02/12/2015
10/03/2017
05/04/2018
12/03/2019
75,000
100,000
50,000
50,000
28,500
303,500
10.37
7.30
7.98
5.60
5.69
31/12/2019
31/12/2020
31/12/2021
31/12/2022
31/12/2023
0
0
0
0
0
0
PSU
PSU
PSU
2017
2018
2019
47,686
56,537
55,298
159,521
$135,905
$161,130
$157,598
$454,633
��
��
��
Conway,
BrentJ.
Total:
12/03/2019 28,500
5.69
31/12/2023
0 PSU
2019
32,894 $93,749
$166,221
$259,970
��
��
28,500 0 PSU
2019
58,323
0 91,217
Nuss,
MichaelR.
Total:
03/12/2014
02/12/2015
10/03/2017
05/04/2018
12/03/2019
100,000
100,000
50,000
50,000
28,500
328,500
10.37
7.30
7.98
5.60
5.69
31/12/2019
31/12/2020
31/12/2021
31/12/2022
31/12/2023
0
0
0
0
0
0
PSU
PSU
PSU
2017
2018
2019
67,626
71,536
74,692
213,854
$192,734
$203,878
$212,872
$609,484
��
��
��
Edwards,
N.Murray
Total:
03/12/2014
02/12/2015
10/03/2017
05/04/2018
12/03/2019
200,000
250,000
150,000
130,000
95,000
825,000
10.37
7.30
7.95
5.60
5.69
31/12/2019
31/12/2020
31/12/2021
31/12/2022
31/12/2023
0
0
0
0
0
0
PSU
PSU
PSU
2017
2018
2019
99,361
102,643
145,808
347,812
$283,179
$292,531
$415,553
$991,263
��
��
��

(1) Composed�of�the�number�of�unexercised�options�as�at�December�31,�2019.�

(2) The�securities�underlying�the�options�granted�are�Common�Shares.�The�options�granted�vest�at�the�rate�of�20%�per�year,�on�a�cumulative� basis.�For�more�information,�see�the�section�entitled�“Stock�Option�Plan”.�

(3) All�option�values�have�been�determined�based�on�the�closing�price�for�Common�Shares�of�$2.85�on�December�31,�2019.�“In�the�money”� means�that�the�exercise�price�for�the�option�is�more�than�$2.85.��

(4) PSU�values�are�based�on�the�closing�price�for�Common�Shares�of�$2.85�on�December�31,�2019,�and�assume�a�payout�multiplier�of�1.0x.� PSUs�granted�in�2017�vested�on�December�31,�2019,�PSUs�granted�in�2018�vest�on�December�31,�2020�and�PSUs�granted�in�2019�vest�on� December�31,�2021.�The�value�of�all�PSU�awards�assumes�a�payout�multiplier�of�1.0x.��

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Ensign�Management�Information�Circular�|�2020�

Payout�of�2017�PSU�Awards��

The�2017�award�of�PSUs�vested�on�December�31,�2019�and�were�paid�out�between�March�15,�2020�and� April�15,�2020.�The�table�below�shows�the�difference�between�the�grant�value�and�the�payout�value�for� each�NEO,�illustrating�the�at�risk�nature�of�these�awards.�The�NEOs�received�a�final�PSU�payout�that�was� 48%�of�the�grant�value�of�the�award.��

#of #of FullTerm
PSUs PSUsat 2017 2018 2019 Combined
Grant Granted Maturity Multiplier Multiplier Multiplier Multiplier FinalPSU Payout%of
Name Value(1) (2) (3) (20%) (20%) (20%) (40%) Payout(4) GrantValue
Geddes,RobertH. $717,175 110,675 144,453 0.758 1.469 0.348 0.859 $343,996 48%
Gray,Michael $165,000 25,463 33,234 0.758 1.469 0.348 0.859 $79,143 48%
Connors,ThomasJ. $241,787 37,313 48,701 0.758 1.469 0.348 0.859 $115,974 48%
Conway,BrentJ. N/A N/A N/A N/A N/A N/A N/A N/A N/A
Nuss,MichaelR.(5) $342,891 52,915 69,065 0.758 1.469 0.348 0.859 $164,469 48%
Edwards,N.Murray $503,800 77,747 101,475 0.758 1.469 0.348 0.859 $241,650 48%
  • (1) Grant�values�are�determined�by�role.�Mr.�Geddes�and�Mr.�Edwards�received�a�PSU�grant,�in�2017,�having�a�value�of�125%�of�their�2017�base� annual�compensation;�Mssrs.�Gray,�Connors�and�Nuss�received�a�grant�having�a�value�of�75%�of�their�2017�base�annual�compensation.��

(2) The�number�of�PSUs�initially�granted�were�based�on�the�grant�value�divided�by�the�volume�weighted�average�price�of�the�Corporation’s� shares�for�the�10�trading�days�prior�to�the�grant�date�of�August�25,�2017,�being�$6.28.��

  • (3) The�number�of�PSUs�that�matured�at�the�end�of�the�three�year�term�of�the�award�includes�additional�PSUs�received�as�reinvested�dividend� equivalents.��

(4) The�volume�weighted�average�price�of�the�Corporation’s�shares�for�the�10�trading�days�prior�to�the�maturity�date�of�December�31,�2019�was� $2.77.��

  • (5) The�PSU�payout�for�Mr.�Nuss�was�converted�back�to�USD�at�the�same�rate�his�base�salary�was�converted�into�CAD�on�the�award�date�of� August�25,�2017,�being�CAD�$1.00�=�USD�$1.25.�

Calculation�of�Payout�Multiplier��

For�the�2017�PSU�awards�which�matured�on�Decmeber�31,�2019,�our�three�year�average�TSR�and�ROCE� for�the�performance�period�from�January�1,�2017�to�December�31,�2019,�relative�to�our�PSU�Performance� Peer�Group�and�weighted�as�to�20%�in�each�individual�year�and�40%�for�the�average�over�the�three�year� period,�resulted�in�an�overall�award�multipier�of�0.859x,�as�demonstrated�below:�

PSUMultiplier
Component 2017 2018 2019 3YrAvg
RelativeTSRRank 43.10% 71.60% 24.90%
RelativeTSRMultiplier(67%) 0.724x 1.864x 0.000x 0.86x
ROCEActual 45.70% 41.70% 51.40%
ROCEMultiplier 0.828x 0.668x 1.056x 0.851x
CombinedMultiplier 0.758x 1.469x 0.348x 0.859x

The�Compensation�Committee�reviewed�and�approved�the�multipliers�in�each�year�of�the�award�and�at� the�end�of�the�three�year�performance�period,�and�believes�that�the�payouts�are�appriopriate�in�light�of�

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Ensign�Management�Information�Circular�|�2020�

original�grant�values,�market�conditions�during�the�applicable�years�included�in�the�performance�period,� our�relative�share�price�performance�and�our�relative�return�on�capital�employed�over�the�three�year�term� of�these�awards.��

Incentive�Plan�Awards�–�Value�Vested�or�Earned�During�the�Year�

The�following�table�sets�forth,�for�each�NEO,�the�value�of�option�based�and�share�based�awards�which� vested�during�the�year�ended�December�31,�2019,�and�the�value�of�non�equity�incentive�plan� compensation�earned�during�the�year�ended�December�31,�2019.�

Option�BasedAwards Share�BasedAwards Non�EquityIncentivePlan
–ValueVestedDuring –ValueVested Compensation–Value
Name theYear($)(1)(2) DuringtheYear($)(3) EarnedDuringtheYear($)(4)
Geddes,RobertH. 0 403,115 485,303
Gray,MichaelR. 0 92,745 332,462
Connors,ThomasJ. 0 135,905 90,167
Conway,BrentJ. 0 0 117,424
Nuss,MichaelR. 0 192,734 152,651
Edwards,N.Murray 0 283,179 403,788
  • (1) Includes�options�which�vested�pursuant�to�the�Stock�Option�Plan�during�2019.���

  • (2) Option�based�awards :�Options�vest�at�the�rate�of�20%�per�annum.�Each�option�based�award�has�a�set�vesting�date�of�July�1� in�each�year.�As�such,�one�fifth�of�the�options�granted�to�each�NEO�in�2014,�2015,�2017,�2018�and�2019�vested�and�became� exercisable�in�2019.�The�value�of�option�based�awards�is�calculated�based�on�the�difference�between�the�market�value�of� the�Common�Shares�underlying�the�options�on�the�vesting�date�(July�2,�2019,�being�the�first�trading�day�following�the�vesting� date�of�July�1,�2019�–�$4.12)�and�the�exercise�price�of�the�options,�and�reflects�the�aggregate�value�realized�had�the�vested� options�been�exercised�on�the�vesting�date.

  • (3) Share�based�awards�(PSUs):� The�share�based�awards�outstanding�as�of�December�31,�2019�were�the�2017,�2018�and�2019� PSU�grants.�The�2017�grant�vested�December�31,�2019�and�are�payable�in�cash�in�2020.�The�2018�and�2019�grants�vest�on� December�31,�2020�and�December�31,�2021�respectively,�and�are�payable�in�cash�on�or�before�March�15,�2021�and�March� 15,�2022�respectively.�The�value�of�PSUs�for�this�purpose�is�calculated�based�on�the�market�value�of�the�Common�Shares� underlying�the�2017�award�of�PSUs�on�the�maturity�date�of�such�award�(being�December�31,�2019�–�$2.85),�and�assumes�a� multiplier�of�1.0x.

  • (4) Non�Equity�Incentive�Plan�Compensation :�Non�equity�incentive�plan�compensation�earned�for�the�2019�year�by�NEOs� includes�the�annual�cash�bonus,�as�well�as�the�one�time�extraordinary�bonus�of�$200,000�in�the�case�of�Mr.�Geddes,�Mr.� Gray�and�Mr.�Edwards,�described�further�above.�The�exchange�rate�used�to�convert�the�bonus�awarded�to�Mr.�Nuss�in�USD� is�as�of�December�31,�2019�(USD�$1.00�=�CAD�$1.30).��

None�of�the�Corporation’s�NEOs�realized�any�benefit�from�the�exercise�of�stock�options�in�the�year�ended� December�31,�2019.�

Page�|�60�

Ensign�Management�Information�Circular�|�2020�

Pension�Plan�Benefits�

The�Corporation�does�not�have�a�pension�plan�or�provide�other�retirement�plan�benefits.�

Termination�and�Change�of�Control�Benefits�

Ensign�does�not�have�written�employment�agreements�in�place�with�any�of�its�NEOs�which�provide�for� incremental�payments,�payables�or�benefits�upon�termination�(whether�voluntary,�involuntary�or� constructive),�resignation,�retirement,�a�change�in�control�of�the�Corporation�or�a�change�in�a�NEO’s� responsibilities.�Upon�termination�of�employment�for�any�reason,�such�executives�(as�with�other� employees)�would�be�entitled�to�benefits�for�a�severance�period�to�be�determined,�pursuant�to�applicable� law,�at�the�time�of�termination,�depending�upon�length�of�service,�age,�salary�level�and�a�number�of�other� factors.�

The�specific�provisions�of�the�Corporation’s�Stock�Option�Plan,�and�the�PSU�Plan�(which�was�implemented� in�2017),�govern�the�treatment�of�unvested�and�vested�Options�and�PSUs,�and�the�PSA�and�the�Employee� Savings�Plan�govern�the�treatment�of�unvested�shares�held�in�these�plans�on�the�cessation�of�employment,� including�on�a�change�of�control�(please�see�the�section�entitled�“Stock�Option�Plan”�below,�and�the� section�entitled�“Executive�Compensation�Components”�above,�for�further�details).�Depending�on�the� conditions�of�termination,�we�treat�NEOs�and�other�employees�as�follows:��

Page�|�61�

Ensign�Management�Information�Circular�|�2020�

Termination AnnualBonus Employee PerformanceShare
Type Payment Plan StockOptions SavingsPlan(1) Units
Resignation Allsalaryand Cashbonusis Vestedstock Unvestedshares MaturedPSUswhichhave
benefitprograms forfeited. optionsmustbe heldintrustare notyetbeenpaidasoflast
cease. exercisedwithin90 forfeited. dayofemploymentarepaid
days;unvested inthenormalcourse.
stockoptionsare UnmaturedPSUsare
forfeited. forfeited.
Termination Allsalaryand Cashbonusis Vestedstock Unvestedshares MaturedPSUswhichhave
without benefitprograms forfeited. optionsmustbe heldintrustare notyetbeenpaidasoflast
Cause cease. exercisedwithin90 forfeited. dayofemploymentarepaid
Severanceprovided days;unvested inthenormalcourse.
onanindividual stockoptionsare UnmaturedPSUswill
basispursuantto forfeited. matureonapro�rated
applicablelaw, basis,usingdaysof
whichinmost employmentwithinthe
jurisdictionsreflects Termrelativetothedaysin
lengthofservice, theTerm.
position,age,salary UnmaturedPSUsare
levelandother forfeited.
applicablefactors.
Termination None.Allsalaryand Cashbonusis Vestedstock Unvestedshares MaturedPSUswhichhave
withCause benefitprograms forfeited. optionsmustbe heldintrustare notyetbeenpaidasoflast
cease. exercisedwithin90 forfeited. dayofemploymentarepaid
days;unvested inthenormalcourse.
stockoptionsare UnmaturedPSUsare
forfeited. forfeited.
Retirement Allsalaryandbenefit Cashbonusispaid Vestedstock Unvestedsharesheld MaturedPSUswhichhave
(ageplus programscease. onapro�ratabasis. optionsmustbe intrustvestinan notyetbeenpaidasoflast
yearsof exercisedwithin90 acceleratedmanner, dayofemploymentare
serviceatthe days;unvested asattheretirement paidinthenormalcourse.
timeof stockoptionsare date. UnmaturedPSUsare
retirementis forfeited. subjecttoforfeiture.
equaltoor
greaterthan
65).
Deathor Allsalaryandbenefit Cashbonusispaid Vestedstock Unvestedsharesheld AllunmaturedPSUsmature
Disability programscease onapro�ratabasis. optionsmustbe intrustvestinan inanacceleratedmanner
(exceptforthe exercisedwithin90 acceleratedmanner asofthedateofdeathor
payoutofapplicable days;unvested (onthedateof permanentdisability.
lifeinsurance stockoptionsare death).
benefits). forfeited.
Changeof Notrigger. Notrigger. Noaccelerated Noaccelerated Noacceleratedvesting
Control vestingunless vestingunless unlessemploymentisalso
employmentisalso employmentisalso terminated.
terminated. terminated.

(1) The�Canadian�Employee�Savings�Plan�is�an�employee�benefit�plan�available�to�employees�resident�in�Canada�only.�Similar� plans�may�be�in�place�for�the�benefit�of�employees�in�the�Corporation’s�other�jurisdictions�of�operation.�

No�other�incremental�payments,�payables�and�benefits�are�triggered�by,�or�result�from,�a�change�of�control� scenario�for�compensation.�If�any�of�the�NEOs�were�terminated�following�a�change�of�control,�such� executives�would�be�entitled�to�salary,�annual�bonus�and�other�compensatory�benefits�for�a�severance�

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Ensign�Management�Information�Circular�|�2020�

period�to�be�determined�at�the�time�of�such�change�of�control,�depending�upon�length�of�service,�age,� salary�level�and�a�number�of�other�factors.��

In�March�2017,�the�Compensation�Committee�adopted�certain�amendments�to�the�Stock�Option�Plan� (discussed�in�further�detail�in�the�section�below�entitled�“Stock�Option�Plan”).�The�amended�Stock�Option� Plan�added�a�“double�trigger”�with�respect�to�the�accelerated�vesting�of�options�upon�a�change�of�control.� Upon�a�change�of�control,�substitute�or�replacement�options�on�similar�terms�will�be�provided�to� participants.�Only�where�this�replacement�does�not�or�will�not�occur�upon�the�occurrence�of�the�change� of�control�for�any�reason,�would�outstanding�Options�vest�automatically.�The�replacement�stock�options� will�vest�immediately�if�the�executive�is�terminated�without�cause�or�is�constructively�terminated�within� 12�months�following�the�change�of�control.�Similar�change�in�control�provisions�are�applicable�to�PSUs.�

Page�|�63�

Ensign�Management�Information�Circular�|�2020�

Executive�Equity�Ownership�Policy��

With�a�view�to�further�aligning�management’s�interests�with�those�of�the�Shareholders,�the�Corporation� has�implemented�a�policy�that�the�executive�officers�and�senior�managers�at�the�levels�listed�below�hold� the�level�of�equity�(being�Common�Shares�or�share�grants�or�units�having�the�same�economic�interest�as� Common�Shares)�outlined�below:�

ExecutiveLevel OwnershipRequirement
Chairman 4timesannualconsultingfee
President&ChiefOperatingOfficer 4timesbasesalary
ChiefFinancialOfficer,ExecutiveVicePresidents 2timesbasesalary
andDivisionalPresidents
SeniorVicePresidentsandVicePresidents 1timesbasesalary

Executive�officers�and�senior�managers�to�whom�this�policy�applies�must�reach�the�minimum�required� level�of�equity�ownership�within�five�(5)�years�of�their�date�of�promotion�or�appointment�to�the�executive� officer�or�senior�manager�level�position.�In�calculating�equity�ownership�for�officers,�the�aggregate�value� of�Common�Shares�or�share�grants�or�units�having�the�same�economic�interest�as�Common�Shares�is�used� (including�PSUs�at�target,�but�excluding�the�value�of�any�exercisable�and�vested�stock�options).�The� minimum�requirement�for�the�levels�noted�above�fluctuates�yearly�based�on�salary�changes�and�changes� to�the�price�of�the�Common�Shares.��

In�order�to�avoid�the�need�to�continuously�monitor�and�adjust�holdings�based�on�fluctuations�in� the�market�price�of�the�Common�Shares,�for�the�purposes�of�the�minimum�equity�ownership� requirement�applicable�to�the�Corporation’s�members�of�management,�the�value�of�equity� holdings�is�calculated�based�on�the�greater�of:��

  • i. The�current�market�value�of�the�Common�Shares;��

  • ii. The�market�value�of�the�Common�Shares�as�at�December�31�of�the�immediately�preceding� year;�and��

  • iii. The�acquisition�cost�of�such�Common�Shares.�

Once�the�applicable�threshold�is�met,�further�purchases�or�acquisitions�are�not�required�if�the�value�of�the� Common�Shares�held�decreases�solely�as�a�result�of�a�decline�in�the�trading�price�of�the�Common�Shares.� However,�if�the�value�decreases�for�any�other�reason�(i.e.�sale�of�Common�Shares),�such�member�of� Management�is�required�to�increase�the�value�of�his�or�her�investment�to�the�required�threshold.��

Due�to�the�suspension�in�2016�and�subsequent�termination�in�2017�of�the�Corporation’s�Performance� Share�Award�program,�which�historically�had�been�an�element�of�compensation�through�which�the� minimum�shareholding�requirement�was�intended�to�be,�in�part,�satisfied,�the�Compensation�Committee� has�determined�that�PSUs�currently�will�be�counted,�at�target,�towards�the�achievement�of�the�minimum� shareholding�requirement.�However,�for�any�executive�subject�to�this�requirement�who�has�not�met�his� or�her�requirement�through�ownership�of�actual�Common�Shares,�the�after�tax�proceeds�of�any�PSU� payment�(the�first�of�which�has�occurred�in�2020,�for�awards�granted�in�2017�and�which�matured�on�

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December�31,�2019)�must�be�used�to�purchase�Common�Shares,�such�that�the�applicable�ownership�level� is�ultimately�met�through�ownership�of�actual�Common�Shares.�

As�of�December�31,�2019,�all�of�the�executive�officers�and�senior�managers�subject�to�this�policy�have� satisfied�their�ownership�requirements,�other�than�those�senior�managers�who�are�within�the�five�(5)�year� time�period�during�which�such�senior�managers�have�to�accumulate�these�holdings.�The�table�below� summarizes�the�share�ownership�levels�for�each�of�the�current�NEOs�as�of�March�20,�2020.��

AsofDecember31,2019,alloftheexecutiveofficersandseniormanagerssubjecttothispolicyhave
satisfiedtheirownershiprequirements,otherthanthoseseniormanagerswhoarewithinthefive(5)year
timeperiodduringwhichsuchseniormanagershavetoaccumulatetheseholdings.Thetablebelow
summarizestheshareownershiplevelsforeachofthecurrentNEOsasofMarch20,2020.
AsofDecember31,2019,alloftheexecutiveofficersandseniormanagerssubjecttothispolicyhave
satisfiedtheirownershiprequirements,otherthanthoseseniormanagerswhoarewithinthefive(5)year
timeperiodduringwhichsuchseniormanagershavetoaccumulatetheseholdings.Thetablebelow
summarizestheshareownershiplevelsforeachofthecurrentNEOsasofMarch20,2020.
NameandPrincipalPosition
OwnershipRequirement
MeetsRequirement
Ownershipas
atMarch20,
2020(#)(1)
MultipleofCurrent
BaseCompensation
(CAD$)
Requirement
(CAD$)
Geddes,RobertH.
President&ChiefOperating
Officer
943,842
4x$700,000
$2,800,000
Yes–AcquisitionCost
Gray,MichaelR.
ChiefFinancialOfficer
123,408
2x$325,000
$650,000
N/A(2)
Connors,ThomasJ.
ExecutiveVicePresidentCanadian
Operations
169,695
2x$380,000
$760,000
N/A(3)
Conway,BrentJ.
ExecutiveVicePresident
InternationalOperations
125,000
2x$400,000
$800,000
N/A(4)
Nuss,MichaelR.
ExecutiveVicePresidentUnited
States&LatinAmerican
Operations
125,843
2x$500,500(5)
$1,001,000
N/A(6)
Edwards,N.Murray
Chairman
31,582,085
4x$500,000
$2,000,000
Yes–AcquisitionCost,
December31,2019valueand
March20,2020value

(1) Includes�Common�Shares�beneficially�owned,�controlled�or�directed�by�the�NEO.�

(2) Mr.�Gray�has�until�October�2021,�being�5�years�from�his�appointment�to�the�office�of�Chief�Financial�Officer,�to�meet�the�requirement.��

(3) Mr.�Connors�has�until�August�2021,�being�5�years�from�his�appointment�to�the�office�of�Executive�Vice�President,�to�meet�the� requirement.�He�currently�meets�the�requirement�for�his�prior�position�of�Senior�Vice�President,�based�on�the�acquisition�cost�of�his� shares�and�the�inclusion�of�his�PSUs�at�target�(currently�permitted�by�our�policy,�as�described�above).�

(4) Mr.�Conway�has�until�December�2023,�being�5�years�from�his�appointment�to�the�office�of�Executive�Vice�President,�International� Operations,�to�meet�the�requirement.�

(5) For�reporting�purposes�and�consistency�throughout�this�Information�Circular,�current�base�compensation�levels�paid�in�US�dollars�(Mr.� Nuss�=�USD�$395,000)�have�been�translated�at�the�exchange�rate�on�December�31,�2019,�being�USD�$1.00�=�CAD�$1.30.�

(6) Mr.�Nuss�has�until�August�2021,�being�5�years�from�his�appointment�to�the�office�of�Executive�Vice�President,�United�States�&�Latin� American�Operations,�to�meet�the�requirement.�He�currently�meets�the�requirement�for�his�prior�position�of�Senior�Vice�President,� based�on�the�acquisition�cost�of�his�shares�and�the�inclusion�of�his�PSUs�at�target�(currently�permitted�by�our�policy,�as�described� above).�

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SECTION�4�–�DIRECTOR�COMPENSATION�

Director�Compensation�Philosophy�and�Objectives��

In�2019,�all�non�management�Directors�of�the�Corporation�received�a�comprehensive�compensation� package�comprised�of�both�cash�and�equity�compensation,�as�follows:��

  • i. An�annual�retainer�in�the�form�of�a�cash�retainer;��

  • ii. An�annual�equity�retainer�in�the�form�of�deferred�share�units�(“ DSUs ”)�or�Common�Shares� pursuant�to�the�“Directors�Deferred�Share�Unit�and�Common�Share�Payment�Plan”�(described�in� detail�below);��

  • iii. Committee�chair�and�committee�member�cash�retainers;�and��

  • iv. Meeting�fees.��

Compensation�programs�and�levels�for�non�management�Directors�are�designed�to�attract�and�retain�high� quality�individuals�who�possess�experience�and�capabilities�appropriate�for�the�demands�of�the� Corporation’s�board,�and�to�align�the�interests�of�the�non�management�Directors�with�the�Shareholders.��

In�addition,�the�remuneration�package�for�Directors�is�intended�to�compensate�these�individuals�for�their� time�commitment,�the�discharge�of�their�responsibilities�and�the�accountabilities�of�serving�as�a�Director� of�the�Corporation.�

The�Corporate�Governance,�Nominations�&�Risk�Committee�(the�“ CGNR�Committee ”)�and�the�Board�of� Directors�as�a�whole�review�director�compensation�on�an�annual�basis�for�its�adequacy�in�light�of�the� foregoing�factors,�as�well�as�for�competitiveness�against�the�Corporation’s�peer�group.��

For�the�2019�year,�director�fees�had�been�restored�to�their�pre�2015�levels,�in�response�to�the� cautious�optimism�in�improving�market�conditions�that�prevailed�at�that�time�in�the�oilfield�services� industry.���

In�response�to�the�expected�impact�of�the�COVID�19�global�pandemic�on�commerce�and�energy� demand,�the�recent�rapid�deterioration�in�commodity�prices�and�related�market�disruptions,�on� March�20,�2020�the�Board�of�Directors�unanimously�agreed�to�a�20%�reduction�on�all�cash�retainers� and�a�40%�reduction�to�the�equity�retainer�(from�$100,000�per�year�to�$60,000�per�year).�These� reductions,�like�the�reductions�to�the�base�annual�compensation�for�NEOs,�will�come�into�effect�on� April�1,�2020.�These�measures�are�being�taken�to�demonstrate�leadership�in�a�period�of�uncertainty,� and�to�emphasize�the�importance�of�controlling�costs�at�all�levels�of�our�company.�

The�Board�of�Directors�continues�to�monitor�evolving�industry�conditions�and�may�make�further� adjustments�to�Director�compensation�as�may�be�deemed�appropriate�under�the�circumstances.��

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Non�Management�Directors�–�Retainers�and�Fees:��

Director�compensation�for�2019�as�compared�with�2018,�and�current�2020�compensation,�is�as�follows:�

CompensationDescription 2020(1)(2) 2019 2018(6)
BaseRetainer $34,000 $40,000 $33,667
BaseEquityRetainer(DSUor DSUsorCommon DSUsorCommon DSUsorCommon
CommonShareRetainer) Sharesvaluedat Sharesvaluedat Sharesvaluedat
$70,000 $100,000 $84,167
AuditCommitteeChairRetainer $12,750 $15,000 $12,625
CompensationCommitteeChair $8,500 $7,500 $7,500
Retainer
CommitteeChairperson $6,375 $7,500 $6,313
Retainer–othercommittees
LeadDirectorRetainer $8,500 $10,000 $8,417
CommitteeMemberRetainer(3) $3,000 $3,000 $2,525
AuditCommitteeMember $4,250 $5,000 $4,208
Retainer(3)
BoardandCommitteeMeeting $1,500 $1,500 $1,307
Attendance(4)
TravelAllowance(5) $1,500/day $1,500/day $1,500/day

(1) 2020�values�reflect�director�fees�at�2019�levels�from�January�1,�2020�until�March�31,�2020,�and�then�a�20%�reduction,� effective�April�1,�2020,�on�all�cash�retainers�over�the�remainder�of�the�year�(including�the�base�cash�retainer,�committee� chair�retainers,�committee�member�retainers�and�the�Lead�Director�retainer),�and�a�40%�reduction,�also�effective�April�1,� 2020,�on�the�base�equity�retainer�over�the�remainder�of�the�year.��

(2) The�next�regular�annual�review�of�non�management�Director�compensation�is�scheduled�to�take�place�in�November�2020.�

(3) Committee�chairs�do�not�also�receive�a�committee�member�retainer�for�the�same�committee.�

(4) Includes�meetings�held�in�person�and�by�telephone�conference�call;�includes�attendance�at�strategic�planning�sessions�with� members�of�the�Corporation’s�senior�management,�if�any,�held�in�the�year.�

(5) The�full�amount�of�the�travel�allowance�day�rate�is�paid�where�a�Director�flies�to�or�from�outside�North�America�to�attend�a� meeting.�Half�the�day�rate�($750)�is�paid�where�a�Director�flies�to�or�from�a�meeting�within�North�America,�where�the�flight� time�is�equal�to�or�greater�than�two�hours.�Out�of�pocket�expenses�are�also�reimbursed.��

(6) 2018�values�reflect�the�reversal,�effective�August�1,�2018,�of�half�of�the�20%�fee�reduction�implemented�in�January�2015.The� remainder�of�this�fee�reduction�was�re�instated�effective�January�1,�2019,�restoring�director�compensation�to�pre�2015�levels� for�the�2019�year.��

All�fees�(other�than�the�equity�retainer,�which�is�credited�or�paid�quarterly)�are�paid�to�Directors�annually,� in�December�of�the�year�in�which�the�fees�are�earned.�Fees�are�pro�rated�for�partial�service.�Where� applicable,�DSUs�are�credited�to�a�DSU�account�maintained�for�the�eligible�Director�on�a�quarterly�basis�and� Common�Shares�are�purchased�on�the�open�market�by�the�Corporation�on�a�quarterly�basis�and�are� transferred�to�each�eligible�Director.�Once�the�applicable�minimum�equity�holding�requirement�has�been�

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met�by�a�Director,�such�Director�can�elect�to�take�up�to�a�maximum�of�60%�of�the�equity�retainer�in�cash� instead�of�DSUs�or�Common�Shares.�

The�equity�component�of�the�annual�retainer�for�Directors�is�intended�to�ensure�an�alignment�of� interests�between�the�Directors�who�are�not�also�full�time�employees�of�the�Corporation,�and�those� of�the�Shareholders.

Equity�Based�Compensation�–�Directors�DSU�Plan�and�Common�Share�Payment�Plan�

The�Board�of�Directors�believes�that�equity�based�compensation�for�Directors�provides�for�greater� alignment�of�interests�between�Directors�and�Shareholders.�As�such,�non�management�Directors�receive� equity�based�compensation�in�the�form�of�Deferred�Share�Units�(notional�shares)�or�Common�Shares.�

Effective�January�1,�2011,�the�CGNR�Committee�implemented�a�deferred�share�unit�plan.�This�plan,�called� the�“Directors�Deferred�Share�Unit�and�Common�Share�Payment�Plan”�(the�“ DSU�Plan ”),�applies�to�non� management�Directors�of�the�Corporation.��

Pursuant�to�the�DSU�Plan,�eligible�Directors�may�be�awarded�DSUs,�or�may�elect�instead�to�receive�up�to� 100%�of�the�award�in�Common�Shares,�in�such�numbers�as�may�be�awarded�by�the�CGNR�Committee�from� time�to�time.�An�election�to�receive�Common�Shares�in�lieu�of�DSUs�lasts�for�one�year�and�once�made,�is� irrevocable�for�such�year.�If�a�Director�elects�to�receive�Common�Shares,�these�Common�Shares�are� purchased�on�the�open�market,�on�a�quarterly�basis,�at�the�prevailing�market�price�on�the�TSX�for�the� Common�Shares.�

DSUs�are�credited�quarterly�to�a�DSU�account�for�each�eligible�Director,�at�a�fair�market�value�based�upon� the�volume�weighted�average�trading�price�of�the�Common�Shares�on�the�TSX�for�the�five�(5)�trading�days� immediately�prior�to�the�date�the�DSUs�are�credited.�The�DSUs�may�not�be�redeemed�until�a�Director�has� ceased�to�hold�any�position�with�the�Corporation.�Following�the�date�the�eligible�Director�ceases�to�hold� any�position�with�the�Corporation,�he�or�she�will�have�until�July�1�of�the�following�calendar�year�to�redeem� his�or�her�awards�in�exchange�for�a�cash�payment�equal�to�the�number�of�DSUs�held�multiplied�by�the� volume�weighted�average�trading�price�of�the�Common�Shares�on�the�TSX�for�the�five�(5)�trading�days� immediately�prior�to�the�date�of�settlement,�adjusted�for�dividends.��

DSUs�are�regarded�as�equivalent�to�Common�Shares�for�the�sole�purpose�of�evaluating�a�Directors’� shareholdings�in�connection�with�the�minimum�shareholding�requirement�applicable�to�Directors.�Once� any�applicable�minimum�equity�holding�requirement�was�met�by�a�Director,�such�Director�can�elect�to� take�up�to�a�maximum�of�60%�of�the�equity�retainer�in�cash�instead�of�DSUs�or�Common�Shares.��

The�CGNR�Committee�may�amend,�suspend�or�terminate�the�DSU�Plan�at�any�time.��

Effective�January�1,�2019,�the�CGNR�Committee�increased�the�equity�retainer�to�$100,000�per�year,�which� represented�a�full�reinstatement�of�this�element�of�comepnsation�to�pre�2015�levels.�Effective�April�1,� 2020,�this�has�been�reduced�to�$60,000�per�year,�for�an�annualized�base�equity�retainer�of�$70,000.�

Approximately�49%�of�non�management�Directors�total�compensation�in�2019�was�paid�through�the� issuance�of�DSUs�or�Common�Shares,�and�the�remaining�51%�was�paid�in�cash.��

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2019�Directors�Summary�Compensation�Table�

The�following�table�sets�forth,�for�the�year�ended�December�31,�2019,�information�concerning�the� compensation�paid�to�Directors�(other�than�Directors�who�are�also�NEOs,�being�Robert�H.�Geddes�and�N.� Murray�Edwards,�whose�compensation�information�is�provided�in�Section�3�–�Compensation�Discussion� and�Analysis).��

The�Corporation�does�not�provide�any�non�equity�incentive�plan�compensation�to�non�management� Directors.��

Name FeesEarned
($)
Non�Cash
Retainer
($)(1)
Non�CashRetainer
ElectedtoBe
TakeninCash($)(1)
AllOther
Comp($)(2)
TotalComp
($)
Casswell,GaryW. 73,000 100,000 0 7,500 180,500
Howe,JamesB. 79,500 40,000 60,000 0 179,500
Kangas,LenO. 83,000 70,000 30,000 0 183,000
Moomjian,Jr.,CaryA. 70,000 100,000 0 7,500 177,500
Schroeder,JohnG. 85,000 100,000 0 0 185,000
Surkan,GailD. 70,000 100,000 0 0 170,000
Whitham,BarthE. 72,000 100,000 0 4,500 176,500
TOTAL: 532,500 610,000 90,000 19,500 1,252,000
  • (1) “ Non�cash�retainer ”�includes�the�DSU�or�Common�Share�award�component�of�the�Directors�annual�retainer,�pursuant�to�the� DSU�Plan.�The�equity�retainer�values�reported�in�the�table�above�have�been�rounded�to�total�$100,000.�Actual�values,�without� rounding�(due�to�the�calculation�methods�for�the�DSU�and�Common�Shares�awarded),�are�shown�in�the�tables�immediately� below.���

  • (i) DSUs:�Eligible�(non�employee)�Directors�who�received�DSUs�in�2019�were�credited�such�DSUs�at�the�end�of�each�fiscal� quarter.�Mr.�Casswell,�Mr.�Schroeder�and�Ms.�Surkan�received�100%�of�their�equity�retainer�in�DSUs;�Mr.�Kangas�elected� to�receive�70%�of�his�quarterly�equity�retainer�in�DSUs,�with�30%�paid�in�cash�(as�to�40%�DSUs�in�each�of�Q1�and�Q1,� and�100%�DSUs�in�each�of�Q3�and�Q4);�Mr.�Moomjian�elected�to�receive�50%�of�his�quarterly�retainer�in�DSUs�and�50%� in�Common�Shares;�and�Mr.�Howe�elected�to�receive�40%�of�his�quarterly�equity�retainer�in�DSUs,�with�60%�paid�in� cash.��

DSUs–100%(Casswell,Schroeder,Surkan) DSUs–100%(Casswell,Schroeder,Surkan)
QuarterEnded BasePrice($) DSUsCredited(#) ValueofDSUs($)
31�Mar�19 5.4120 4,619 24,998
30�Jun�19 4.4263 5,648 25,000
30�Sep�19 3.0315 8,247 25,000
31�Dec�19 2.8297 8,835 25,000
TOTAL: 27,349 99,998
DSUs–70%Election(Kangas)
QuarterEnded BasePrice($) DSUsCredited(#) ValueofDSUs($)
31�Mar�19 5.4120 1,848 10,001
30�Jun�19 4.4263 2,259 9,999
30�Sep�19 3.0315 8,247 25,000
31�Dec�19 2.8297 8,835 25,000
TOTAL: 21,189 75,000

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DSUs–50%Election(Moomjian) DSUs–50%Election(Moomjian)
QuarterEnded BasePrice($) DSUsCredited(#) ValueofDSUs($)
31�Mar�19 5.4120 2,310 12,501
30�Jun�19 4.4263 2,824 12,500
30�Sep�19 3.0315 4,123 12,500
31�Dec�19 2.8297 4,417 12,500
TOTAL: 13,674 50,001
DSUs–40% Election(Howe)
QuarterEnded BasePrice($) DSUsCredited(#) ValueofDSUs($)
31�Mar�19 5.4120 1,848 10,001
30�Jun�19 4.4263 2,259 9,999
30�Sep�19 3.0315 3,299 10,000
31�Dec�19 2.8297 3,534 10,000
TOTAL: 10,940 40,000
  • (ii) The�pricing�of�the�DSUs�paid�to�Directors�who�received�their�equity�retainer�in�the�form�of�DSUs�in�2019�is�based�on�the� volume�weighted�average�trading�price�of�the�Common�Shares�on�the�TSX�for�the�five�(5)�trading�days�prior�to�the�date� the�DSUs�are�credited.�

  • (iii) Common�Shares:�Eligible�(non�employee)�Directors�who�elected�to�receive�Common�Shares�in�2019�were�paid�such� Common�Shares�at�the�end�of�each�fiscal�quarter.�Mr.�Whitham�received�100%�of�his�equity�retainer�in�Common�Shares,� and�Mr.�Moomjian�elected�to�receive�50%�of�his�quarterly�retainer�in�DSUs�and�50%�in�Common�Shares.

Common�Shares�(Whitham)�

QuarterEnded BasePrice($) CommonShares(#) ValueofCommonShares
($)
31�Mar�19 5.90 4,257 25,116
30�Jun�19 4.25 5,911 25,122
30�Sep�19 3.00 8,375 25,125
31�Dec�19 2.83 8,828 24,983
TOTAL: 27,371 100,346
CommonShares–50% Election(Moomjian)
QuarterEnded BasePrice($) CommonShares(#) ValueofCommonShares
($)
31�Mar�19 5.90 2,096 12,366
30�Jun�19 4.25 2,912 12,376
30�Sep�19 3.00 4,125 12,375
31�Dec�19 2.83 4,414 12,492
TOTAL: 13,547 49,609

(iv) The�aggregate�value�of�the�Common�Shares�paid�to�Directors�who�elected�to�receive�their�equity�retainer�in�the�form� of�Common�Shares�in�2019�is�based�on�the�acquisition�price�of�the�Common�Shares�on�the�TSX.�In�certain�instances,�as� a�consequence�of�the�Common�Shares�being�purchased�on�the�open�market,�the�Common�Share�credit�date�may�differ� from�the�trade�settlement�date.��

(2) “ All�other�compensation ”�includes�the�travel�allowance�amounts�paid�to�certain�Directors�in�2019.��

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Ensign�Management�Information�Circular�|�2020�

Directors�Fees�–�Breakdown��

The�following�table�sets�forth�a�detailed�breakdown�of�the�fees�earned�by�our�Directors�(other�than� Directors�who�are�also�NEOs,�being�Robert�H.�Geddes�and�N.�Murray�Edwards,�whose�compensation� information�is�provided�in�Section�3�–�Compensation�Discussion�and�Analysis),�for�the�year�ended� December�31,�2019:�

ecember31,2019:
Retainer Board Committee Travel Equity Other
Fees(1) Meetings Meetings Allowance Retainer(2) (3) Total
Name ($) ($) ($) ($) ($) ($) ($)
Casswell,GaryW. 50,500 10,500 12,000 7,500 100,000 0 180,500
Howe,JamesB. 52,500 10,500 16,500 0 40,000 60,000 179,500
Kangas,Len.O. 60,500 10,500 12,000 0 70,000 30,000 183,000
Moomjian,Jr.,CaryA. 46,000 10,500 13,500 7,500 100,000 0 177,500
Schroeder,JohnG. 58,000 10,500 16,500 0 100,000 0 185,000
Surkan,GailD. 46,000 10,500 13,500 0 100,000 0 170,000
Whitham,BarthE. 48,000 10,500 13,500 4,500 100,000 0 176,500
TOTAL: 361,500 73,500 97,500 19,500 610,000 90,000 1,252,000

(1) Retainer�amounts�reported�include�the�annual�base�cash�retainer�plus�cash�retainer�amounts�for�committee�chairs�and� committee�membership.��

(2) See�Note�1�to�the�Directors�Summary�Compensation�Table for�a�description�of�the�calculation�of�the�equity�retainer,� comprised�of�DSUs�or�Common�Shares�credited�or�paid�to�Directors�in�2019.�Subject�to�qualifying�conditions,�certain� Directors�elected�to�take�a�portion�of�their�annual�equity�retainer�in�cash,�or�split�between�DSUs�and�Common�Shares.�

(3) Non�cash�retainer�elected�to�be�taken�in�cash.�

Directors’�Outstanding�Share�Based�Awards��

The�following�table�sets�forth�as�at�December�31,�2019�information�concerning�all�share�based�awards� outstanding�for�all�of�our�Directors,�other�than�Directors�who�are�also�NEOs�(whose�compensation� information�is�provided�in�Section�3�–�Compensation�Discussion�and�Analysis).����

Share�BasedAwards
MarketorPayoutValue MarketorPayoutValue
#ofSharesorUnitsof ofShare�BasedAwards ofVestedShare�Based
SharesThatHaveNot ThatHaveNotVested AwardsNotPaidOutor
Name Vested(1)(#) ($) Distributed(2)($)
Casswell,GaryW. 0 0 85,893
Howe,JamesB. 0 0 41,362
Kangas,LenO. 0 0 79,689
Moomjian,Jr.,CaryA. 0 0 55,792(3)
Schroeder,JohnG. 0 0 107,827
Surkan,GailD. 0 0 91,733
Whitham,BarthE. N/A N/A N/A(3)

(1) Although�DSUs�vest�immediately�upon�being�credited�to�a�participant’s�account,�in�accordance�with�the “Directors�Deferred� Share�Unit�and�Common�Share�Payment�Plan”,�DSUs�cannot�be�redeemed�until�after�retirement�or�other�separation�of� service�of�the�Director.�

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  • (2) Calculated�based�on�the�closing�price�of�the�Common�Shares�on�December�31,�2019�of�$2.85�multiplied�by�the�accumulated� number�of�DSUs�credited�to�the�Director�on�such�date,�including�DSU�equivalents�issued�in�lieu�of�cash�dividends�paid�on�the� underlying�Common�Shares,�for�the�period�from�the�grant�date�to�December�31,�2019�(being�a�total�of�162,209�DSUs:� Casswell�–�30,138;�Howe�–�14,513;�Kangas�–�27,961;�Moomjian�–�19,576;�Schroeder�–�37,834;�and�Surkan�–�32,187).���

  • (3) Pursuant�to�the�DSU�Plan,�Mr.�Moomjian�elected�to�receive�50%�of�his�equity�retainer�in�Common�Shares�and�50%�of�his� equity�retainer�in�DSUs,�and�Mr.�Whitham�elected�to�receive�Common�Shares�in�lieu�of�DSUs�in�2019.��

The�Corporation�has�not�granted�options�to�non�management�Directors�since�2007�and�the�amended� Stock�Option�Plan�approved�by�Shareholders�at�the�annual�and�special�meeting�of�the�Shareholders�held� on�May�20,�2009�no�longer�permits�any�such�grants�to�Directors.��

Directors’�Incentive�Plan�Awards�–�Value�Vested�or�Earned�During�the�Year�

The�only�share�based�awards�granted�by�the�Corporation�are�pursuant�to�the�“Directors�Deferred�Share� Unit�and�Common�Share�Payment�Plan”,�instituted�in�2011�by�the�Corporation�for�Directors�who�are�not� also�full�time�employees�of�the�Corporation.�All�of�these�awards�vested�on�their�credit�or�payment�date.� DSUs�expire�on�July�1�of�the�calendar�year�immediately�following�the�year�in�which�a�holder�ceases�to�be� a�Director.�The�value�excludes�dividend�equivalents�credited�to�such�Director’s�DSU�account�and�dividends� paid�on�Common�Shares�during�the�year�ended�December�31,�2019.�

aidonCommonSharesduringthe yearendedDecember31,2019.
Name Share�BasedAwards–ValueVestedDuringtheYear($)(1)
Casswell,GaryW. 99,357
Howe,JamesB. 39,745
Kangas,LenO. 69.993
Moomjian,Jr.,CaryA. 98,586(2)(49,678DSUsand48,908CommonShares)
Schroeder,JohnG. 99,357
Surkan,GailD. 99,357
Whitham,BarthE. 98,920(2)
  • (1) DSUs :�Calculated�based�on�the�closing�price�of�the�Common�Shares�on�the�credit�date,�multiplied�by�the�number�of�DSUs� credited.�In�2018,�Mr.�Moomjian�elected�to�receive�50%�of�his�quarterly�equity�award�in�DSUs�and�50%�in�Common�Shares,� Mr.�Howe�elected�to�take�40%�of�his�quarterly�equity�retainer�in�DSUs�(the�remaining�60%�was�paid�in�cash);�and�Mr.�Kangas� elected�to�take�70%�of�his�overall�annual�equity�retainer�in�DSUs�(the�remaining�30%�was�paid�in�cash),�as�to�40%�DSUs�in� each�of�the�first�and�second�quarters�of�2019,�and�100%�DUSs�in�each�of�the�third�and�fourth�quarters�of�2019.�
DSUs–100%Election(Casswell,Schroeder,Surkan): DSUs–100%Election(Casswell,Schroeder,Surkan):
CreditDate ClosingPrice($) DSUsCredited(#) ValueVested($)
31�Mar�19 5.35 4,619 24,712
30�Jun�19 4.29 5,648 24,230
30�Sep�19 3.06 8,247 25,236
31�Dec�19 2.85 8,835 25,180
TOTAL: 27,349 99,357

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DSUs–70%Election(Kangas) DSUs–70%Election(Kangas)
CreditDate ClosingPrice($) DSUsCredited(#) ValueVested($)
31�Mar�19 5.35 1,848 9,887
30�Jun�19 4.29 2,259 9,691
30�Sep�19 3.06 8,247 25,236
31�Dec�19 2.85 8,835 25,180
TOTAL: 21,189 69,993
DSUs–50%Election(Moomjian)
CreditDate ClosingPrice($) DSUsCredited(#) ValueVested($)
31�Mar�19 5.35 2,310 12,359
30�Jun�19 4.29 2,824 12,115
30�Sep�19 3.06 4,123 12,616
31�Dec�19 2.85 4,417 12,588
TOTAL: 13,674 49,678
DSUs–40%Election(Howe)
CreditDate ClosingPrice($) DSUsCredited(#) ValueVested($)
31�Mar�19 5.35 1,848 9,887
30�Jun�19 4.29 2,259 9,691
30�Sep�19 3.06 3,299 10,095
31�Dec�19 2.85 3,534 10,072
TOTAL: 10,940 39,745

(2) Common�Shares :�Mr.�Whitham�elected�to�receive�Common�Shares�in�lieu�of�DSUs�in�2019.�Mr.�Moomjian�elected�to�receive� 50%�of�his�quarterly�equity�retainer�in�DSUs�and�50%�in�Common�Shares.�As�a�consequence�of�the�Common�Shares�being� purchased�on�the�open�market,�the�Common�Share�credit�or�award�date�may�differ�from�the�trade�settlement�date.� Calculated�based�on�the�closing�price�of�the�Common�Shares�on�the�award�date,�multiplied�by�the�number�of�Common�Shares� awarded.��

COMMONSHARES(Whitham): COMMONSHARES(Whitham):
AwardDate ClosingPrice($) CommonShares(#) Valuevested($)
31�Mar�19 5.35 4,257 22,775
30�Jun�19 4.29 5,911 25,358
30�Sep�19 3.06 8,375 25,628
31�Dec�19 2.85 8,828 25,160
TOTAL: 27,371 98,920
COMMONSHARES–50%Election(Moomjian): COMMONSHARES–50%Election(Moomjian):
AwardDate ClosingPrice($) CommonShares(#) Valuevested($)
31�Mar�19 5.35 2,096 11,214
30�Jun�19 4.29 2,912 12,492
30�Sep�19 3.06 4,125 12,623
31�Dec�19 2.85 4,414 12,580
TOTAL: 48,908

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SECTION�5�–�STATEMENT�OF�CORPORATE�GOVERNANCE�PRACTICES�

National�Instrument�58�101�entitled�“Disclosure�of�Corporate�Governance�Practices”�(“ NI�58�101 ”)� requires�that�if�management�of�an�issuer�solicits�proxies�from�its�security�holders�for�the�purpose�of� electing�directors,�that�certain�prescribed�disclosure�respecting�corporate�governance�matters�be� included�in�its�management�information�circular.�The�Toronto�Stock�Exchange�(“ TSX ”)�also�requires�listed� companies�to�provide,�on�an�annual�basis,�the�corporate�governance�disclosure�which�is�prescribed�by� NI�58�101.�

The�Board�of�Directors�of�Ensign�is�responsible�for�the�overall�stewardship�and�governance�of�the� Corporation,�and�has�put�in�place�standards�and�benchmarks�by�which�that�responsibility�can�be� measured.�

Director�Independence��

The�Board�of�Directors�of�Ensign�has�determined�that�a�majority�of�Directors�(seven�of�the�nine�Directors)� standing�for�election�are�considered�to�be�independent�within�the�meaning�of�NI�58�101.�

The�CGNR�Committee�and�the�Board�reviews�annually�the�relationship�that�each�Director�has�with�the� Corporation�(either�directly,�or�as�a�partner,�shareholder�or�officer�of�an�organization�that�has�a� relationship�with�the�Corporation).�Following�this�review,�only�those�Directors�who�the�Board�and�the� CGNR�Committee�affirmatively�determine�have�no�direct�or�indirect�material�relationship�with�the� Corporation�will�be�considered�independent�directors.�

The�following�table�illustrates�the�independence�status�of�each�Director�nominee:�

Director IndependenceStatus BasisforDeterminationofNon�Independence
Edwards,N.Murray Non�independent AsasignificantshareholderandasChairmanofthe
(Chairman) Corporation,Mr.Edwardshassubstantialinfluencefrom
theBoardofDirector’sperspectiveontheCorporation's
businessapproach,strategies,practicesandculture.
Geddes,RobertH. Non�independent Mr.Geddes,President&ChiefOperatingOfficerofthe
Corporation,isnotconsideredtobeanindependent
directorduetohiscurrentroleasanofficerofthe
Corporation.
Casswell,GaryW. Independent N/A
Howe,JamesB. Independent N/A
Kangas,LenO. Independent N/A
(LeadDirector)
Moomjian,Jr.CaryA. Independent N/A
Schroeder,JohnG. Independent N/A
Surkan,GailD. Independent N/A
Whitham,BarthE. Independent N/A

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As�noted�above,�the�Board�of�Directors�has�determined�that�the�Chairman�of�the�Board�of�Directors,�N.� Murray�Edwards,�is�not�an�independent�director.�The�Board�of�Directors,�in�conjunction�with�the�CGNR� Committee�has�developed�a�broad�mandate�for�the�CGNR�Committee�(of�which�Mr.�Edwards�is�not�a� member),�which�includes�managing�and�developing�a�more�effective�board�and�ensuring�that�the�Board� of�Directors�can�function�independently�of�management.��

The�Corporation’s�bylaws�do�not�permit�a�second�or�casting�vote�by�the�Chairman�in�the�event�of�a�tie.��

To�provide�additional�leadership�to�its�independent�Directors,�the�Board�of�Directors�encourages�all� Directors�to�add�agenda�items�to�any�Board�of�Directors�meeting�or�to�the�meeting�of�any�committee.� Further,�the�Chairman�of�the�CGNR�Committee�(who�currently�is�also�the�Lead�Director)�acts�as�the�chair� for�the�“in�camera”�session�of�each�Board�of�Directors�meeting,�during�which�the�independent�Directors� are�provided�with�an�opportunity�to�express�views�in�the�absence�of�members�of�management.��

Lead�Director��

On�March�14,�2013,�the�Board�of�Directors�accepted�a�recommendation�of�the�CGNR�Committee�and� approved�the�establishment�of�a�lead�director�role,�which�would�be�assumed�by�the�Chair�of�the�CGNR� Committee,�who�is�an�independent�director�or,�at�the�discretion�of�the�independent�directors,�by�another� independent�director.�This�provides�the�independent�directors�flexibility�in�determining�who�is�best�to� lead�the�independent�directors�as�circumstances�dictate.��

The�Lead�Director�is�charged�with�providing�independent�leadership�to�the�Board�in�circumstances� where�the�non�independent�Chairman�could�potentially�be�in�conflict,�or�at�any�other�time�the�Board� determines�that�leadership�of�a�Lead�Director�is�appropriate.�Mr.�Kangas�currently�serves�as�Lead� Director.

Other�Issuer�Directorships��

There�is�no�formal�limit�placed�on�the�number�of�public�corporation�directorships�that�a�Director�may� have.�However�the�Corporation’s�Directors�are�encouraged�to�consult�with�the�CGNR�Committee�when� considering�any�appointment�to�the�board�of�another�public�company,�so�that�such�Committee�may� ensure�that�the�Director’s�other�commitments,�including�to�such�other�proposed�public�board,�do�not� interfere�with�the�time�commitment�required�by�the�Corporation’s�Board�of�Directors.�Moreover,�the� Corporation’s�Code�of�Integrity,�Business�Ethics�and�Conduct�prohibits�a�Director�from�acting�as�a�director,� officer�or�in�any�other�role�of�any�other�entity�engaged�in�the�oil�and�gas�drilling�and/or�service�business� and�which�competes�directly�or�indirectly�with�any�activity�of�the�Corporation.��

In�addition�to�the�foregoing,�the�Board’s�mandate�does�not�specifically�prohibit�interlocking�Board� positions.�The�Board�prefers�to�examine�each�situation�on�its�own�merits�with�a�view�to�examining�material� relationships�which�may�affect�a�Director’s�independence.�There�are�no�current�interlocking�Board� memberships�among�our�Directors.�

The�CGNR�Committee�is�of�the�view�that�each�Director�was�in�2019,�and�will�be�for�2020,�able�to�devote� the�time�and�resources�necessary�for�the�proper�discharge�of�his�or�her�duties�as�a�Director.�The�table� below�sets�forth�the�current�directorships�of�other�issuers�held�by�Ensign’s�Director�nominees:�

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NameofDirector NamesofOtherReportingIssuers
Casswell,GaryW. NorthernDrillingLtd.(OsloBors)
NorthernOceanLtd.(OsloBors)
Edwards,N.Murray CanadianNaturalResourcesLimited(TSX,NYSE)
MagellanAerospaceCorporation(TSX)
Howe,JamesB. BengalEnergyLtd.(TSX)
PasonSystemsInc.(TSX)
Whitham,BarthE. IntrepidPotashInc.(NYSE)
QEPResources,Inc.(NYSE)

“In�Camera”�Sessions�of�the�Independent�Directors��

The�agenda�for�each�Board�of�Directors�meeting�and�each�committee�meeting,�whether�regularly� scheduled�or�specially�convened,�includes�an�“in�camera”�session�which�takes�place�towards�or�at� the�end�of�each�such�meeting.�

The�“in�camera”�session�includes�only�the�independent�Directors,�absent�the�Directors�who�are�members� of�management,�being�Robert�H.�Geddes,�the�President�&�Chief�Operating�Officer�of�the�Corporation,�N.� Murray�Edwards,�the�Corporation’s�Chairman,�and�any�other�member�of�management�present�at�such� Board�of�Directors�or�committee�meeting.��

The�Lead�Director�acts�as�chairperson�of�each�“in�camera”�session�of�the�Board�of�Directors.�The�Lead� Director�or�chairperson�of�each�“in�camera”�session�reports�any�items�of�business�that�arose�or�resolutions� passed�during�such�session�to�the�Corporate�Secretary�of�the�Corporation�immediately�following�each� such�“in�camera”�session.�

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2019�Board�and�Committee�Meeting�Attendance��

The�overall�average�attendance�for�all�meetings�of�the�Board�of�Directors�and�its�committees�held�in�2019� was�99.2%.�The�specific�attendance�record�of�each�Director�for�all�Board�of�Directors�meetings�and� meetings�of�any�committee�of�the�Board�of�Directors�for�the�financial�year�ended�December�31,�2019�is� set�forth�below:�

meetingsofanycomm
setforthbelow:
itteeoftheB oardofDire ctorsforthe financialyeare ndedDecember 31,2019is
Corporate
Governance, Health,Safety
Boardof Audit Comp. Nominations& &Environment
Directors Committee Committee RiskCommittee Committee Overall
Director Meetings(2) Meetings(2) Meetings(2) Meetings(2) Meetings(2) Attendance
Edwards,N.Murray(1) 7/7 ��� ��� ��� ��� 100%
Geddes,RobertH.(1) 7/7 ��� ��� ��� ��� 100%
Casswell,GaryW. 7/7 ��� ��� 4/4 4/4 100%
Howe,JamesB. 7/7 6/6 5/5 ��� ��� 100%
Kangas,LenO. 7/7 ��� ��� 4/4 4/4 100%
Moomjian,Jr.,CaryA. 7/7 ��� 5/5 4/4 ��� 100%
Schroeder,JohnG. 7/7 6/6 5/5 ��� ��� 100%
Surkan,GailD. 7/7 ��� 5/5 4/4 ��� 100%
Whitham,BarthE. 7/7 5/6 ��� ��� 4/4 94%

(1) As�members�of�management,�Mr.�Edwards�and�Mr.�Geddes�may�attend,�and�in�practice�do�regularly�attend,�committee� meetings�but�do�not�serve�on�any�of�the�Committees�of�the�Board�of�Directors.��

(2) In�camera�meetings�without�Directors�who�are�also�members�of�management�were�held�at�the�end�of�each�Board�and� Committee�meeting�that�took�place�in�2019.�Directors�in�attendance�at�each�of�the�meetings�indicated�in�this�table�were� also�in�attendance�for�the�in�camera�portion�of�such�meetings.��

Board�Mandate��

The�Board�of�Directors�has�the�obligation�to�oversee�the�conduct�of�the�business�of�the�Corporation�and� to�supervise�senior�management�who�are�responsible�for�the�day�to�day�conduct�of�the�business.�A�copy� of�the�mandate�of�the�Board�of�Directors�is�included�in�Schedule�1�at�the�end�of�this�Information�Circular.��

The�Corporation’s�corporate�governance�guidelines�state�that�the�Board�of�Directors�is�responsible�for�the� stewardship�of�the�Corporation�and�supervising�the�management�of�the�business�and�affairs�of�the� Corporation.�Accordingly,�the�Board�of�Directors,�through�its�quarterly�meetings�and�meetings�of�its� committees,�and�through�its�directions�to�management�and�policies�and�resolutions�of�the�Board,� regularly�reviews�and�supervises�the�business�and�affairs�of�the�Corporation.�In�addition,�the�Board�of� Directors,�in�conjunction�with�senior�management,�determines�the�limits�of�management’s�authority�and� responsibility�and�establishes�and�monitors�the�corporate�objectives�which�management�is�responsible� for�meeting.�

The�Board�of�Directors�has�developed�written�position�descriptions�for�the�Chairman�of�the�Board�of� Directors�and�the�Chairman�of�each�Committee�of�the�Board�of�Directors.�

The�Corporation�does�not�have�a�named�CEO.�This�role�is�delegated�by�the�Board�of�Directors�to�the� Executive�Management�Committee,�currently�composed�of�the�senior�executives�of�the�Corporation� acting�in�the�following�capacities:�Chairman,�President�&�Chief�Operating�Officer,�Chief�Financial�Officer�

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and�Executive�Vice�President.�Collectively,�these�positions�carry�the�responsibilities�normally�associated� with�a�CEO.��

Committees�and�Committee�Composition��

The�Board�of�Directors�currently�has�four�(4)�standing�committees:�the�Audit�Committee,�CGNR� Committee,�the�Compensation�Committee�and�the�HSE�Committee.�All�Committees�are�composed�entirely� of�independent�Directors.��

The�CGNR�Committee,�which�is�composed�entirely�of�independent�Directors,�reviews�the�makeup�of�the� Board�and�its�Committees�on�an�annual�basis.�This�Committee�then�acts�as�a�nominating�committee�to� consider�if�and�when�new�directors�are�to�be�proposed�as�additions�to,�or�to�fill�vacancies�of,�the�Board�of� Directors,�having�regard�to�the�competencies,�skills�and�personal�qualities�of�the�candidates�and�the� members�of�the�Board�of�Directors�and�their�perception�of�the�needs�of�the�Corporation.�

The�Board�of�Directors�periodically�considers�whether�additional�committees�are�required�or�whether�the� mandates�of�existing�committees�should�be�expanded�to�include�additional�areas�of�responsibility�and� consideration.��

Director�Skills�and�Experience�

Directors�are�only�nominated�if�they�have�an�appropriate�mix�of�skills,�knowledge�and�business�experience,� and�a�history�of�achievement.�This�experience�is�critical�for�the�Board�to�provide�effective�oversight�and� support�our�future�growth.��

The�CGNR�Committee�has�developed�a�skills�and�experience�matrix,�which�is�used�to�assess�the� composition�of�the�Board�and�as�a�tool�to�assist�in�the�assessment�and�recruitment�of�potential�candidates� for�the�Board�of�Directors.

In�addition�to�the�identified�skills�and�experience�qualifications,�candidates�must�exhibit�the�highest� degree�of�professionalism,�integrity,�values�and�independent�judgment.

The�age�and�gender�of�current�and�prospective�Directors�are�also�considered�in�the�matrix.�The�objective� is�to�maintain�a�sufficient�range�of�skills,�expertise,�experience�and�diversity�necessary�to�enable�the�Board� as�a�whole�to�carry�out�its�responsibilities�effectively.�

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Ensign�Management�Information�Circular�|�2020�

Skills&Experience Edwards
Geddes
Casswell
Howe
Kangas
Moomjian
Schroeder
Surkan
Whitham
Edwards
Geddes
Casswell
Howe
Kangas
Moomjian
Schroeder
Surkan
Whitham
Edwards
Geddes
Casswell
Howe
Kangas
Moomjian
Schroeder
Surkan
Whitham
Edwards
Geddes
Casswell
Howe
Kangas
Moomjian
Schroeder
Surkan
Whitham
Edwards
Geddes
Casswell
Howe
Kangas
Moomjian
Schroeder
Surkan
Whitham
Edwards
Geddes
Casswell
Howe
Kangas
Moomjian
Schroeder
Surkan
Whitham
Edwards
Geddes
Casswell
Howe
Kangas
Moomjian
Schroeder
Surkan
Whitham
Edwards
Geddes
Casswell
Howe
Kangas
Moomjian
Schroeder
Surkan
Whitham
Edwards
Geddes
Casswell
Howe
Kangas
Moomjian
Schroeder
Surkan
Whitham
BoardofDirectorExperience:Priororcurrentexperienceas
aboardmemberofamajororganization(public,privateor
non�profit).
X X X X X X X X X
SeniorLeadershipExperience:Experiencedrivingstrategic
insightanddirection,achievinginnovationandgrowthina
private,publicorgovernmentalinstitution.
X X X X X X X X X
StrategicPlanning:Experiencewithplanning,evaluatingand
implementingastrategicplan;demonstratedabilitytofocus
onlongertermgoalsandstrategicoutcomes.
X X X X X X X X
IndustrySpecialist:Experienceinoilfieldservicesoroiland
gasexplorationandproduction;knowledgeofcustomers,
markets,operationalchallenges,strategies,regulatory
mattersandtechnology.
X X X X X X X X
FinancialExpertise:Executiveexperienceinfinancial
accounting,reportingandknowledgeofotherconsiderations
andissuesassociatedwithauditingrequirementsofpublic
companies;experienceincorporatefinancewith
demonstratedknowledgeofdebtandequitymarkets,M&A
activities,tax,investorrelationsandinsurance.
X X X X
InternationalExperience:Seniorexecutiveexperienceinan
organizationwithglobaloperations;understandingof
cultural,politicalandregulatoryrequirementsoutsideof
NorthAmerica.
X X X X X
Compensation:Executiveorboardcompensationcommittee
experience,leadingtoathoroughunderstandingof
compensation,benefits,incentives,equityandperquisites.
X X X X X X X X
HumanResources:Executiveorboardexperiencein
attracting,promoting,developingandretainingpersonnel,
includingsuccessionplanningandtalentmanagement
X X X X X X
Health,Safety,Environment:Understandingofindustry
regulationsandrequirementsrelatedtoworkplacehealth,
safetyandenvironment.
X X X X X X
Legal:Experienceinlitigation,contracts,internationallegal
systemsandsecurities/capitalmarketsregulatory
framework.
X
RiskManagement:Experienceintheprocessofidentifying
andmanagingprincipalcorporaterisks.
X X X X X X X X X
SecuritiesandCapitalMarkets:Experienceindomesticand
cross�bordertransactions(includingdebt,equityand
financingtransactions),includingstructure,regulatory
complianceanddisclosureobligations.
X X X X X

Page�|�79�

Ensign�Management�Information�Circular�|�2020�

Director�Orientation��

Under�the�Corporation’s�orientation�program,�senior�management,�along�with�certain�Directors,�provide� orientation�to�new�Directors.�In�addition,�new�Directors�are�provided�background�material�regarding�the� Corporation�that�include,�among�other�things,�details�on�the�Corporation’s�financial�operating�results,� investor�presentations,�philosophy�and�policies,�corporate�management�and�legal�structure,�a�list�of�all� corporate�divisions�and�their�principal�business�activities�and�industry�information.�Field�visits�are� arranged�as�appropriate.��

The�most�recent�orientation�of�a�new�Director�took�place�in�the�fall�of�2017,�before�Mr.�Casswell�joined� the�Board�on�December�4,�2017.�Mr.�Casswell�was�provided�extensive�materials�and�met�with�members� of�management�and�certain�members�of�the�Board�of�Directors�in�Calgary,�Alberta,�to�familiarize�himself� with�our�industries,�geographic�regions�of�operation,�assets�and�equipment,�financial�results,�debt� structure�and�balance�sheet,�vision�and�strategies,�policies,�governance�practices,�compensation� structure,�succession�planning,�insurance�program,�and�our�budgeting�and�forecasting�processes.�

Director�Education��

At�regularly�scheduled�meetings,�the�Board�of�Directors�receives�and�discusses�reports�concerning�the� operations�and�financial�results�of�the�Corporation�and�each�of�its�business�segments.�These�reports� provide�Directors�ongoing�operational�information�relevant�to�market�conditions�and�trends�impacting� short�and�long�term�divisional�results�and�are�important�in�the�Board�of�Directors’�ability�to�provide� strategic�direction.��

Quarterly�presentations�are�held�on�topics�relevant�to�the�Directors’�understanding�of�the� Corporation’s�business�or�their�role�as�a�Director,�and�to�educate�and�inform�them�of�relevant�matters� including�in�the�following�areas:�industry�changes,�requirements�and�standards,�business�trends,� challenges�and�opportunities,�corporate�governance�and�legal�trends�and�issues,�market�analyses,�and� technological�developments�relevant�to�the�industry.

Board�of�Directors�meetings�have�occasionally�been�held�at�divisional�offices�to�allow�for�a�tour�of�the� facilities�and�improve�the�Directors’�general�knowledge�of�the�Corporation’s�business.�Field�visits�are�also� periodically�undertaken�by�Directors.�

Further,�strategic�planning�sessions�are�periodically�held�with�the�Board�of�Directors�and�senior�executives.� These�sessions�provide�intensive�additional�detailed�operational,�market�and�business�activity�information� to�the�Directors.�A�specific�focus�of�these�sessions�is�to�provide�a�briefing�on�strategic�issues�affecting�the� Corporation,�including�a�review�of�the�competitive�environment,�industry�trends,�and�the�Corporation’s� performance�relative�to�its�peers,�and�to�provide�a�forum�for�a�review�of�the�Corporation’s�perceived� strengths,�weaknesses,�opportunities�and�threats.��

During�2019,�the�following�continuing�education�presentations,�strategy�sessions,�site�visits�and�related� events�were�held�for�or�attended�by�all�or�some�of�the�Directors:�

Page�|�80�

Ensign�Management�Information�Circular�|�2020�

Date Topic Presenter/Host Attendees
March6 Kuwaitmarketentry/ BrentConway(ExecutiveVice AllDirectors
operationalupdate President)
May9 Cybersecurity RonTolton(DirectorInformation AllDirectors
ReviewofBondOffering Technology)
InvestorPresentationand MichaelGray(ChiefFinancialOfficer),
LessonsLearned BobGeddes(President&Chief
OperatingOfficer)
July31 RigMinder–businessoverview GregWard(President,RigMinder AllDirectors
Permianoperations–pre�and� OperatingLLC)
postacquisition NialShepherd(VicePresident,
Operations),TomHorton(Vice
President,Sales)
November6 TechnologyUpdate BobGeddes(President&Chief AllDirectors
OperatingOfficer)
InvestorRelationsUpdate NicoleRomanow(InvestorRelations)
CapitalStructureOverview MichaelGray(ChiefFinancialOfficer)

Further,�Management�provides�quarterly�reports�to�the�HSE�Committee�regarding�current�issues,�trends,� regulatory�requirements,�risk�areas�and�compliance�programs.�Also�in�2019,�certain�directors,�being�Mr.� Howe�and�Mr.�Moomjian,�participated�in�all�or�a�portion�of�a�webinar�series�hosted�by�U.S.�law�firm�Hunton� Andrews�Kurth�LLP�addressing�executive�compensation�issues.�Mr.�Moomjian�participated�in�other�legal� continuing�education�activities�in�compliance�with�Texas�State�Bar�requirements�and�acquired�information� on�industry�compliance,�governance�and�contracting�issues�as�a�member�of�the�Ethics�&�Compliance�and� Contracts�Committees�of�the�International�Association�of�Drilling�Contractors.�

Directors�are�also�encouraged�to�identify�their�continuing�education�needs�through�a�variety�of�means,� including�discussions�with�management�and�at�Board�and�Committee�meetings.�Course�and�conference� attendance�on�topics�relevant�to�a�Director’s�knowledge�and�skill�set�are�encouraged�and�periodically� attended.�Management�also�periodically�provides�Directors�newsletters�and�corporate�or�outside�reports� relevant�to�the�Corporation’s�business�or�their�committee�responsibilities.�Directors�also�periodically� conduct�site�visits.��

Representatives�of�the�external�auditor�of�the�Corporation�are�present�at�all�meetings�of�the�Audit� Committee,�providing�a�forum�for�discussion�of�any�emerging�trends,�requirements�and�issues�related� to�accounting�and�audit�matters.�Further,�all�Directors�are�invited�to�attend,�and�in�practice�do�attend,� each�meeeting�of�the�Audit�Committee.�The�CGNR�Committee�receives�regular�updates�on�corporate� risks,�governance�trends�and�best�practices�from�Management.�The�Compensation�Committee�receives� semi�annual�reports�from�Management�regarding�compensation�programs�and�trends,�succession� planning�and�leadership�development�programs.

Page�|�81�

Ensign�Management�Information�Circular�|�2020�

Director�Term�Limits�and�Other�Mechanisms�of�Board�Renewal��

Ensign’s�Board�has�not�adopted�a�policy�for�term�limits�for�Directors.�A�Director�Retirement�Policy�has� been�in�place�for�a�number�of�years,�which�requires�that�Directors�who�have�celebrated�their�75[th] �birthday� may�not,�unless�the�remaining�Board�members�agree�to�a�specific�exception,�stand�for�re�election�as�a� Director�of�the�Corporation.��

See�“Director�Tenure”�above�for�additional�disclosure�and�background�regarding�Ensign’s�decision�to� refrain�from�implementing�a�policy�for�term�limits�for�Directors.�See�“Directors�Skills�and�Experience”� above�regarding�the�skills,�experience�and�other�attributes�considered�by�the�CGNR�Committee�in� connection�with�the�nomination�process�of�the�Board.��

Diversity�Policy�

Ensign�is�committed�to�advancing�women,�and�other�individuals�representing�a�diversity�of� backgrounds�into�leadership�roles�through�its�talent�management,�learning�development,�and� succession�planning�processes.�In�support�of�this�commitment,�on�March�1,�2018,�the�CGNR� Committee�recommended,�and�the�Board�adopted,�a�diversity�policy�for�the�Board.�It�provides�that� the�CGNR�Committee,�which�is�responsible�for�recommending�director�nominees�to�the�Board,�will� consider�candidates�on�merit,�based�on�a�balance�of�skills,�background,�experience�and�knowledge.� In�identifying�the�highest�quality�directors,�the�Committee�will�take�into�account�diversity� considerations�such�as�gender,�age�and�ethnicity,�with�a�view�to�ensuring�that�the�Board�benefits� from�a�broader�range�of�perspectives�and�relevant�experience.�

Ensign’s�Board�of�Directors�supports�the�objectives�of�increasing�diversity�on�boards�of�directors�and�at� the�executive�levels�of�issuers,�and�recognizes�that�gender�and�other�diversity�characteristics�and� backgrounds�provides�a�depth�and�breadth�of�viewpoints�and�perspectives.�In�early�2018,�the�Board�of� Directors�adopted�a�written�“Board�Diversity�Policy”,�which�outlines�the�Corporation’s�commitment�to� promoting�a�diverse�board,�in�particular�with�respect�to�gender�diversity�and�the�identification�and� nomination�of�women�directors.��

The�Board�Diversity�Policy�reiterates�Ensign’s�commitment�to�a�merit�and�qualifications�based�method�of� selecting�Directors.�In�considering�candidates�for�both�Board�and�executive�officer�appointments,�the� Board�considers�primarily�skill,�knowledge,�experience,�business�requirements,�gender,�age�and�individual� character,�as�it�believes�this�approach�is�in�the�best�interests�of�Shareholders.�These�characteristics�in�the� current�Board�are�also�considered,�to�ensure�that�a�range�of�characteristics�and�qualities�are�present�in� the�Board�as�a�whole.�By�continuing�to�foster�opportunities�for�development�and�promotion�at�all�levels� of�the�Corporation,�Ensign’s�objectives�of�diversity�are�continually�being�pursued.��

The�Corporation�has�not�adopted�specific�targets�regarding�the�representation�of�women�on�its�Board�of� Directors.�While�diversity�is�an�important�consideration,�the�Corporation�cannot�make�a�commitment�to� select�a�Board�candidate�whose�gender�is�a�decisive�factor�above�all�other�considerations.�However�even� before�the�adoption�of�the�Board�Diversity�Policy,�it�considered�the�level�of�representation�of�women�on� the�Board�in�identifying�and�nominating�candidates�for�election�or�re�election�to�the�Board.��

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Ensign�Management�Information�Circular�|�2020�

In�accordance�with�this�policy,�the�CGNR�Committee�considers�the�level�of�representation�of�women�on� the�Board�by�overseeing�the�selection�process�and�ensuring�that�sufficent�numbers�of�women�and�other� diverse�candidates�are�included�in�the�slate�of�candidates�for�Board�of�Directors�consideration.�The�slate� of�candidates�is�maintained�in�the�context�of�the�skills�matrix�developed�for�the�Board�of�Directors� (described�above)�and�planned�retirements�in�accordance�with�our�Director�Retirement�Policy�(also� described�above).��

Currently,�one�(1)�of�the�nine�(9)�Directors�on�the�current�Board,�and�being�proposed�for�re�election,�is�a� woman�(11%).�Two�(2)�of�Ensign’s�current�officers�at�the�vice�president�level�and�above�are�women�(8%),� one�(1)�of�whom�serves�on�the�Corporation’s�Senior�Executive�Committee,�which�is�currently�composed� of�eight�(8)�senior�executives.��

Ethical�Business�Conduct��

The�Corporation�has�developed�a�code�of�conduct�(the�“ Code�of�Conduct ”)�that�includes�such�topics�as� employment�standards,�conflicts�of�interest,�and�the�treatment�of�confidential�information�and�trading�in� the�Corporation's�shares,�to�foster�conduct�of�the�Corporation's�business�in�a�consistently�legal�and�ethical� manner.�Each�Director,�all�employees,�contractors�and�consultants�are�required�to�abide�by�the�Code�of� Conduct�as�a�condition�of�their�employment�or�engagement�with�the�Corporation.�The�Corporation�has� also�developed�a�comprehensive�anti�bribery�and�anti�corruption�policy�(the�“ ABC�Policy ”)�aimed�at� preventing�and�monitoring�corruption,�and�educating�our�workforce�with�respect�to�our�commitment�to� full�compliance�with�legal�and�ethical�standards�in�this�regard.��

The�CGNR�Committee�periodically�reviews�the�Corporation's�Code�of�Conduct�and�ABC�Policy�to�ensure� they�address�appropriate�topics�and�comply�with�regulatory�requirements.�Any�recommended�changes� are�submitted�to�the�Board�of�Directors�for�approval.�The�CGNR�Committee�concluded�a�regularly� scheduled�review�of�the�Code�of�Conduct�in�2019,�and�certain�amendments�to�the�prior�version�of�the� Code�of�Conduct�were�adopted.�The�next�regularly�scheduled�review�of�the�Code�of�Conduct�is�scheduled� to�take�place�in�the�third�quarter�of�2022.�The�next�regularly�scheduled�review�of�the�ABC�Policy�will�take� place�in�2020.��

Ensign�provides�all�employees�access�to�an�employee�handbook�that�includes�links�to�the�full�text�of�the� Code�of�Conduct�and�the�ABC�Policy�on�the�Corporation’s�intranet.�As�part�of�our�new�employee�on� boarding�process,�all�new�employees�must�complete�a�Code�of�Conduct�e�learning�module,�and�new� employees�in�roles�that�potentially�may�be�exposed�to�corruption�or�bribery�(based�on�function�and/or� location�of�employmenty),�must�also�complete�an�ABC�Policy�e�learning�module.�Existing�employees�as� well�as�all�members�of�the�Board�of�Directors�are�required�to�complete�these�modules�on�either�an�annual� basis�(office�personnel�and�Directors)�or�every�three�(3)�years�(field�personnel).��

==> picture [77 x 74] intentionally omitted <==

Since�2015,�each�Director�and�employee�has�been�required�to�complete,�on�an� annual�basis,�an�e�training�module�on�the�Code�of�Conduct.�This�e�training�module� contains�an�acknowledgement�of�understanding�of�the�training�and�the�Code�of� Conduct.��

Page�|�83�

Ensign�Management�Information�Circular�|�2020�

The�Code�of�Conduct�also�requires�Directors�and�employees�to�disclose�any�real�or�perceived�conflict�of� interest�as�they�arise.�A�link�to�the�conflict�of�interest�disclosure�form�is�also�included�in�the�e�training� module.�

The�Code�of�Conduct�e�training�module,�the�three�year�review�cycle�of�the�Code�of�Conduct�itself,�the� annual�acknowledgments�and�conflict�of�interest�disclosures,�and�the�ABC�Policy,�are�all�overseen�by�the� CGNR�Committee.��

In�addition�to�the�foregoing,�the�Corporation’s�Business�Ethics�Hotline�provides�a�procedure�for�the� submission�of�information�by�any�Director,�officer�or�employee�relating�to�possible�violations�of�the�Code� of�Conduct,�the�ABC�Policy�or�any�other�policy.�Reports�can�also�be�made�directly�to�the�Chairman�of�the� Audit�Committee.��

==> picture [77 x 82] intentionally omitted <==

Since�2015,�Ensign�has�had�in�place�an�independent�third�party�“Business�Ethics� Hotline”�service�provider�for�the�purpose�of�receiving�reports�of�violations�of�the� Code�of�Conduct�or�any�other�policy.�Reports�can�be�made�anonymously�and� confidentially�online,�by�email,�by�mail�and�by�phone�in�over�150�languages.� Reports�also�can�still�be�made�directly�to�the�Chairman�of�the�Audit�Committee.�

The�Chairman�of�the�Audit�Committee�oversees�investigations�of�alleged�breaches�of�the�Code�of�Conduct� together�with�management�where�appropriate.�The�Chairman�of�the�Audit�Committee�reports�on� Business�Ethics�Hotline�activity�to�the�Board�of�Directors�on�a�quarterly�basis.��

No�material�change�reports�were�filed�in�2019�or�in�2020�up�to�the�date�hereof�pertaining�to�any�conduct� of�a�Director�or�executive�officer�that�constitutes�a�departure�from�the�Code�of�Conduct.�

The�Code�of�Conduct�is�available�on�the�Corporation’s�website�(www.ensignenergy.com),�on�SEDAR�at� www.sedar.com,�or�by�contacting�the�Corporate�Secretary�of�the�Corporation�at�400�–�5th�Avenue�S.W.,� Suite�1000,�Calgary,�Alberta,�T2P�0L6.�

Independent�Judgment�of�Directors��

Directors�who�are�a�party�to�or�are�a�director�or�an�officer�of�a�person�who�is�a�party�to�a�material�contract� or�material�transaction�or�a�proposed�material�contract�or�proposed�material�transaction�are�required�to� disclose�the�nature�and�extent�of�their�interest�and�not�to�vote�on�any�resolution�to�approve�the�contract� or�transaction.�Such�Directors�excuse�themselves�from�that�portion�of�the�meeting.�If�required,�an� independent�committee�may�be�formed�to�deliberate�on�such�matters�in�the�absence�of�the�interested� party.��

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Ensign�Management�Information�Circular�|�2020�

Nomination�of�Directors��

The�CGNR�Committee�is�responsible�for�identifying�and�recommending�to�the�board�new�candidates�for� nomination�to�the�Board�of�Directors,�having�regard�to�the�competencies,�skills�and�personal�qualities�of� the�candidates�and�the�members�of�the�Board�of�Directors,�diversity,�and�a�perception�of�the�needs�of�the� Corporation.�From�time�to�time�the�CGNR�Committee�will�make�recommendations�to�the�Board�of� Directors�as�to�the�appropriate�size�of�the�Board�of�Directors.�In�addition,�the�CGNR�Committee�will�review� annually�and�recommend�to�the�Board�of�Directors�the�nomination�of�directors�for�election�at�the�annual� meeting�of�shareholders,�the�appointments�to�each�committee�of�the�Board�of�Directors�and�any�changes� to�the�terms�of�reference�of�such�committees.�

The�CGNR�Committee�of�the�Board�of�Directors�maintains�a�“skills�matrix”�to�assist�in�identifying�and� evaluating�potential�new�members�of�the�Board�of�Directors�against�existing�skills�and�experience�on�the� Board.�The�“skills�matrix”�is�reviewed�and�updated�by�the�CGNR�Committee�on�an�ongoing�basis.��

See�the�section�of�this�Information�Circular�above�called�“Director�Skills�and�Experience”,�where�the� current�skills�matrix�is�disclosed.

Director�Compensation��

The�CGNR�Committee�and�the�Board�of�Directors�periodically�reviews�the�adequacy�and�structure�of� Directors’�compensation�to�ensure�that�the�level�of�compensation�reflects�the�responsibilities,�time� commitment�and�risks�involved�in�being�an�effective�director.�For�further�details,�please�see�the�subsection� of�this�Information�Circular�entitled�“Director�Compensation”.�

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Ensign�Management�Information�Circular�|�2020�

Board,�Board�Member�and�Committee�Assessments��

Regular�assessments�of�the�efficiency�of�the�Board,�its�committees�and�individual�Directors�are� conducted.�

The�responsibility�for�assessing�the�effectiveness�of�the�Board�of�Directors�as�a�whole,�the�committees�of� the�Board�of�Directors�and�the�contribution�of�individual�Directors�has�been�included�in�the�mandate�of� the�CGNR�Committee.�Assessments,�including�Director�peer�assessments,�are�conducted�in�alternating� years�by�the�CGNR�Committee,�as�follows:�

yearsby theCGNRCommittee,asfollows:
Year1: PeerReview Outcome
AssessmentsbyallDirectorsoftheirownperformanceaswellastheperformanceof � Fullresponsesare
theotherDirectors,directedprimarilyatthefollowing: reviewedbythe
EffectivenessoftheChairoftheBoardofDirectorsandCommitteeChairs; CGNRCommittee.
ContributionsofindividualDirectorstotheBoardofDirectorsasawholeand � Asummaryreportis
toCommittees; providedbytheChair
TheapparentpreparationofindividualDirectorsforBoardofDirectorsand
Committeemeetings;and
oftheCGNR
Committeetothefull
BoardofDirectors.
TheconductofindividualDirectorsinBoardofDirectorsandCommittee
meetings.
� TheCGNR
CommitteeChair
Year2: BoardReview followsupwith
individualDirectors
AssessmentbyallDirectorsoftheoverallfunctioningoftheBoardofDirectorsandits
Committees,andself�assessmentofpersonalcontributions,specifically:
onanymattersof
concernraisedinthe
Review,approvalandmonitoringofstrategicandoperatingplans; assessmentandtakes
Corporatecomplianceandcontrols; action,as
Reviewandapprovalofmanagementperformanceandcompensation; appropriate.
Reviewofsuccessionplanning;
Adviceandcounseltomanagement;
SelectionandevaluationofBoardcandidates;
Boardpracticesgenerally;and
Committeestructureandperformance.

Assessments�are�conducted�in�the�form�of�a�confidential�on�line�questionnaire,�aimed�at�facilitating� fulsome�responses,�including�qualitative�responses�and�comments,�and�providing�assurance�as�to�the� anonymity�of�the�responses�provided.�The�Chair�of�the�CGNR�Committee�compiles�the�results�of�the� annual�assessments,�including�any�qualitative�comments,�and�provides�a�formal�report,�in�a�summary� form,�to�this�Committee�and�to�the�Board�of�Directors�as�a�whole.��

Areas�of�concern�and�suggestions�for�improvement�raised�by�Directors�in�the�assessments,�whether�with� respect�to�individual�Directors,�the�Board�of�Directors�as�a�whole�or�its�Committees,�are�highlighted�and� reviewed�by�the�CGNR�Committee.�Trends�are�observed�and�strategies�for�improvement�are�discussed,� with�review�and�follow�up�by�the�entire�Board�of�Directors.�Meetings�are�held�between�the�Chair�of�the� CGNR�Committee�and�individual�Directors�(on�an�as�needed�basis)�to�address�any�issues�of�concern� brought�forth�in�the�above�assessments.���

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Ensign�Management�Information�Circular�|�2020�

Mandatory�Share�Ownership��

The�Corporation�has�adopted�mandatory�share�ownership�policies�that�apply�to�Directors�and�senior� officers�of�the�Corporation.�Please�see�the�sections�of�this�Information�Circular�entitled�“Election�of� Directors”,�“Director�Equity�Ownership�Requirement”�and�“Compensation�Discussion�and�Analysis�– Executive�Equity�Ownership�Policy”,�for�details�on�requirements�for�mandatory�equity�ownership�for� Directors�and�senior�officers,�respectively.���

As�at�December�31,�2019,�each�Director�and�senior�officer�subject�to�this�policy�meets�the�applicable� requirement�pursuant�to�these�policies.��

Communications�Policy�

The�Board�has�a�disclosure�policy�wherein�it�has�delegated�the�communications�function�to�the�senior� management�of�the�Corporation.�The�President�&�Chief�Operating�Officer�or�the�Chief�Financial�Officer� generally�handle�shareholder�communications.�They�also�are�responsible�for�all�communications�from�and� to�the�Corporation's�shareholders,�other�stakeholders�and�the�public�generally.�

Board�Approvals�and�Structure�

In�addition�to�maintaining�the�powers�it�must�retain�by�statute,�significant�business�activities,�actions�and� communications�proposed�to�be�taken�or�submitted�for�consideration�by�the�Corporation�are�subject�to� approval�by�the�Board�of�Directors.��

Annual�capital�and�operating�budgets�and�significant�changes,�long�range�plans,�the�annual�management� information�(proxy)�circular,�the�annual�information�form,�major�changes�in�the�organizational�structure� of�the�Corporation,�annual�and�quarterly�financial�statements,�major�acquisition�and�disposition� transactions,�major�financing�transactions�involving�the�issuance�of�shares,�debt�securities�and�other� securities,�major�banking�relationships,�dividends,�long�term�contracts�with�significant�cumulative� financial�commitments,�appointment�of�officers�and�succession�plans�for�Directors�and�senior�officers�are� all�subject�to�approval�by�the�Board�of�Directors.�

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SECTION�6�–�STOCK�OPTION�PLAN�

In�1997,�the�Shareholders�approved�the�establishment�of�a�stock�option�plan�(the�“ Plan ”).�Pursuant�to�the� Plan,�the�Corporation�is�permitted�to�grant�options�(“ Options ”)�from�time�to�time�to�officers�and�other� employees�of�the�Corporation�and�its�subsidiaries.�Since�the�initial�approval�of�the�Plan,�periodic� amendments�have�been�made,�as�follows:��

  • In�2001,�the�Shareholders�approved�an�amendment�to�the�Plan�to�provide�all�current�option�holders� the�right�to�elect�to�receive�Common�Shares�or�a�direct�cash�payment�in�exchange�for�Options� exercised.�This�amendment�to�the�Plan�was�designed�to�balance�the�need�for�a�long�term� compensation�program�to�retain�employees�and�the�concerns�of�shareholders�regarding�the�dilution� caused�by�stock�options.���

  • In�2005,�the�Shareholders�approved�an�amendment�to�the�Plan�to�delete�the�reference�to�a�maximum� number�of�Common�Shares�issuable�or�reserved�pursuant�to�the�Plan,�and�provide�the�maximum� number�of�Common�Shares�issuable�pursuant�to�the�Plan�shall�be�equal�to�10%�of�the�outstanding� Common�Shares.�Any�increase�in�the�issued�and�outstanding�Common�Shares�will�result�in�an�increase� in�the�available�number�of�Common�Shares�issuable�under�the�Plan,�and�any�exercise�of�Options�will� make�new�grants�available�under�the�Plan.���

  • In�2009,�the�Shareholders�again�approved�certain�amendments�to�the�Plan,�which�were�proposed�by� the�Board�of�Directors�in�light�of�trends�in�corporate�governance�and�the�objective�of�providing� principled�executive�compensation.�The�primary�amendments�approved�by�Shareholders�on�that�date� were:�(i)�to�prescribe�a�fixed�maximum�number�of�Common�Shares�of�15,300,000�to�be�set�aside�and� reserved�for�the�granting�of�stock�options�under�the�Plan;�(ii)�to�fix�the�number�of�Common�Shares� issuable�under�the�Plan�in�any�calendar�year�at�2%�of�the�then�outstanding�Common�Shares;�(iii)�to� eliminate�the�eligibility�of�non�management�members�of�the�Board�of�Directors�to�receive�grants�of� stock�options;�(iv)�to�extend�the�expiry�date�of�a�stock�option�which�would�otherwise�expire�during�a� blackout�period�for�a�period�of�10�business�days�after�the�blackout�period�ends;�and�(v)�to�provide�for� the�Board�of�Directors�to�amend,�modify�or�discontinue�the�Plan�or�any�stock�options�granted� thereunder.�Shareholder�approval�is�required�to:�(a)�increase�the�maximum�number�of�15,300,000� Common�Shares�reserved�for�issuance;�(b)�reduce�the�exercise�price�of�or�cancel�and�re�issue�any� stock�option;�(c)�extend�the�expiry�dates�on�any�outstanding�stock�option;�(d)�allow�non�management� directors�to�be�eligible�for�the�grant�of�stock�options;�(e)�permit�transfers�(or�assignments)�of�stock� options�except�for�estate�settlement�purposes;�or�(f)�increase�the�number�of�Common�Shares�issuable� to�insiders�beyond�the�current�restrictions.��

  • On�March�10,�2017,�in�connection�with�the�ongoing�re�design�of�the�Corporation’s�executive� compensation�plans,�the�Compensation�Committee�approved�certain�“housekeeping”�amendments� to�the�Plan.�Shareholder�approval�of�these�amendments�is�not�required.��

The�Plan�specifies�that�in�the�event�of�a�change�of�control�of�the�Corporation,�Options�granted�to� executive�officers�do�not�automatically�vest�unless�the�employment�of�such�executive�officer�is�also� actually�or�constructively�terminated�within�12�months�of�the�change�of�control�event.�

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Other�features�of�the�current�Plan�are�as�follows:�

  • Eligible�participants�include�officers�and�key�employees�of�the�Corporation.�

  • The�number�of�Common�Shares�issuable�(or�reserved�for�issuance)�to�insiders�will�not�exceed�5%�of� the�outstanding�Common�Shares.�

  • The�number�of�Common�Shares�issuable�(or�reserved�for�issuance)�to�any�one�optionee�will�not�exceed� 5%�of�the�outstanding�Common�Shares.�

  • The�number�of�Common�Shares,�together�with�all�of�the�Corporation's�other�previously�established�or� proposed�share�compensation�arrangements:��

  • issuable�(or�reserved�for�issuance)�to�insiders�at�any�time�will�not�exceed�10%�of�the�outstanding� Common�Shares;�

  • which�may�be�issued�to�insiders�within�a�one�year�period�will�not�exceed�10%�of�the�outstanding� Common�Shares;�and�

  • which�may�be�issued�to�any�one�insider�and�such�insider's�associates�within�a�one�year�period�will� not�exceed�5%�of�the�outstanding�Common�Shares.���

  • The�exercise�price�of�Options�granted�will�be�the�closing�price�per�Common�Share�on�the�Toronto� Stock�Exchange�on�the�last�trading�day�preceding�the�date�of�grant�of�the�Options.���

  • Options�granted�pursuant�to�the�Plan�have�a�term�not�exceeding�10�years�and�have�generally�been� issued�on�the�basis�of�vesting�equally�over�five�(5)�years.���

  • In�case�of�cessation�of�employment�of�an�optionee,�Options�are�exercisable�within�90�days�from�such� cessation.���

  • In�case�of�death�of�an�optionee,�Options�may�be�exercised�by�the�personal�representatives�of�heirs�of� the�deceased�optionee�within�90�days�from�the�date�of�death.�

  • Options�are�non�assignable.���

The�Board�of�Directors�believes�that�granting�of�stock�options�is�and�should�be�used�by�the�Corporation�to� augment�the�overall�compensation�package�offered�to�its�employees.�The�Corporation�has�a�long�standing� policy�of�awarding�stock�options�to�executive�officers�and�employees,�assisting�the�Corporation�in� providing�compensation�packages�that�are�competitive�with�its�industry�peer�group.��

The�Plan�also�constitutes�a�principal�component�in�the�compensation�arrangements�for�the�executives� and�employees�of�the�Corporation,�aiding�in�the�recruitment�and�retention�of�skilled,�knowledgeable�and� dedicated�staff.�The�Board�of�Directors�believes�this�established�policy�of�awarding�stock�options�aligns� executives�and�employees�with�shareholders�and�meets�the�Corporation’s�business�objectives,�specifically� those�of�retention�and�competitive�compensation,�balanced�by�the�overriding�principle�that�outstanding� options�and�the�ability�to�grant�additional�options�should�be�restricted�to�levels�below�acceptable�dilution� thresholds.�

The�Board�of�Directors�is�of�the�view�that�the�Options�provide�an�incentive�to�all�recipients�to�ensure� they�are�striving�to�maximize�shareholder�value.

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Equity�Compensation�Plan�Information�As�At�December�31,�2019��

#�of�Securities�to�be� Weighted�Average� #�of�Securities�Remaining� Issued�Upon�Exercise�of� Exercise�Price�of� Available�for�Future� Outstanding�Options,� Outstanding�Options,� Issuance�Under�Equity� Plan�Category� Warrants�and�Rights� Warrants�and�Rights� Compensation�Plans� Equity�compensation� 5,408,900� $6.53� 9,477,500� plans�approved�by� security�holders� Equity�compensation� Nil� Nil� Nil� plans�not�approved�by� security�holders��

The�Stock�Option�Plan�is�the�only�equity�compensation�plan�of�the�Corporation.�From�time�to�time,�stock� appreciation�rights�(“ SARs ”)�are�granted�to�certain�employees�of�the�Corporation�in�lieu�of�stock�options,� where�such�employee’s�jurisdiction�of�residence�or�taxation�makes�the�receipt�of�stock�options� undesirable.�All�SARs�granted�are�subject�to�the�same�general�conditions�and�restrictions�as�set�forth�in� the�Stock�Option�Plan,�with�the�exception�of�any�right�or�ability�to�exercise�the�SAR�for�Common�Shares� (SARs�may�only�be�exercised�for�cash).�The�number�of�securities�to�be�issued�upon�exercise�of�outstanding� Options,�as�of�December�31,�2019,�represented�3.32%�of�the�total�number�of�Common�Shares�issued�and� outstanding�as�of�that�date�(2018�–�3.76%).���

In�2019,�1,337,600�Options�were�granted�pursuant�to�the�Plan�(2018�–�1,358,700).�This�represented�0.82%� of�the�issued�and�outstanding�Common�Shares�as�of�December�31,�2019�(2018�–�0.87%).�The�stock�option� annual�grant�rate�over�the�past�three�(3)�years�is�as�follows:�

OptionsGrantedDuringtheYearasa
#ofCommonSharesIssuedand #ofOptionsGranted %ofIssuedandOutstanding
Year OutstandingasatJanuary1 DuringtheYear CommonSharesfortheYear
2019 163,118,758 1,337,600 0.82%
2018 157,074,616 1,358,700 0.87%
2017 157,074,616 2,064,750 1.31%

Ensign’s�annual�burn�rate�(as�described�in�Section�613(p)�of�the�TSX�Company�Manual)�for�the�past�three� (3)�years,�calculated�by�dividing�the�number�of�stock�options�granted�in�the�fiscal�year�by�the�weighted� average�number�of�outstanding�shares�for�the�year,�is�as�shown�in�the�table�above.�The�burn�rate�is�subject� to�change�from�time�to�time�based�on�the�number�of�options�granted�and�the�total�number�of�Common� Shares�issued�and�outstanding.�As�noted�elsewhere�in�this�Information�Circular,�commencing�in�2018,�the� annual�award�of�stock�options�(and�including�stock�appreciation�rights)�that�may�be�approved�by�the� Compensation�Committee�in�any�fiscal�year�will�be�capped�at�1%�of�the�Corporations’�issued�and� outstanding�Common�Shares�as�of�the�end�of�each�fiscal�year.��

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Ensign�Management�Information�Circular�|�2020�

SECTION�7�–�OTHER�INFORMATION�

Voting�Securities�and�Principal�Holders�Thereof��

The�record�date�for�determination�of�the�holders�of�Common�Shares�entitled�to�notice�of�and�to�vote�at� the�Meeting�is�March�20,�2020.�As�at�March�20,�2020�there�were�163,118,758�Common�Shares�issued�and� outstanding.�Each�Shareholder�or�his�or�her�proxy�represented�at�the�Meeting�will�be�entitled�to�one�vote� for�each�Common�Share�held�by�such�Shareholder.��

The�following�are�the�only�parties�known�to�the�Directors�and�senior�officers�of�the�Corporation�to� beneficially�own,�directly�or�indirectly�or�exercise�control�or�direction�over,�more�than�10%�of�the� outstanding�voting�securities�of�the�Corporation�as�at�March�20,�2020:���

NumberofVotingSecurities,Owned, PercentageofOutstandingVoting
DirectlyorIndirectly,orOverWhichControl SecuritiesSoOwned,Controlled
Name orDirectionisExercised orDirected
Edwards,N.Murray 31,582,085CommonShares 19.36%
St.Moritz,Switzerland

Interest�of�Informed�Persons�in�Material�Transactions��

Management�of�the�Corporation�is�not�aware�of�any�material�interest,�direct�or�indirect,�of�any�Director� or�officer�of�the�Corporation,�any�nominee�for�director�of�the�Corporation,�or�any�person�beneficially� owning,�directly�or�indirectly,�more�than�10%�of�the�Corporation's�voting�securities,�or�any�associate�or� affiliate�of�any�such�person�in�any�material�transaction�during�2019�or�in�any�material�proposed� transaction�which�in�either�case�has�materially�affected�or�would�materially�affect�the�Corporation�or�any� of�its�subsidiaries.��

Other�Matters��

Management�of�the�Corporation�knows�of�no�amendment,�variation�or�other�matter�to�come�before�the� Meeting�other�than�those�set�forth�in�the�Notice.�If�other�matters�properly�come�before�the�Meeting,�the� accompanying�proxy�will�be�voted�on�such�matters�in�accordance�with�the�best�judgment�of�the�person� or�persons�voting�the�proxy.�

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Additional�Information��

Additional�information�relating�to�the�Corporation�is�available�on�SEDAR�at www.sedar.com.

Financial�information�is�provided�in�the�Corporation’s�comparative�consolidated�financial�statements�and� management’s�discussion�and�analysis�(“ MD&A ”)�for�the�fiscal�year�ended�December�31,�2019.�� Shareholders�may�request�copies�of�the�Corporation’s�consolidated�financial�statements�and�MD&A�by� contacting:�

ENSIGN�ENERGY�SERVICES�INC.�

400�–�5th�Avenue�S.W.,�Suite�1000� Calgary,�Alberta�T2P�0L6�

Attention:�Corporate�Secretary� Telephone�(403)�262�1361� Fax�(403)�262�8215� Website:� www.ensignenergy.com

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Schedule�1 Mandate�of�the�Board�of�Directors�

drilling

directional drilling well servicing

SCHEDULE�1�

ENSIGN�ENERGY�SERVICES�INC.� (THE�"CORPORATION")�

MANDATE�OF�THE�BOARD�OF�DIRECTORS�

Role�and�Objectives:

The�Board�of�Directors�(the�“ Board ”)�of�Ensign�Energy�Services�Inc.�(the�“ Corporation ”)�is�responsible�for� the�stewardship�of�the�Corporation.�In�discharging�its�responsibility,�the�Board�will�exercise�the�care,� diligence�and�skill�that�a�reasonably�prudent�person�would�exercise�in�comparable�circumstances�and�will� act�honestly�and�in�good�faith�with�a�view�to�the�best�interests�of�the�Corporation.�In�general�terms,�the� Board�will:�

  • (a) review,�discuss�and�approve�the�Corporation’s�strategic�planning�and�organizational� structure,�including�in�consultation�with�senior�management�of�the�Corporation�where� appropriate;�

  • (b) supervise�the�management�of�the�business�and�affairs�of�the�Corporation�while�delegating� to�senior�management�the�responsibility�for�day�to�day�management�of�the�Corporation,� with�the�goal�of�achieving�the�Corporation’s�principal�objectives�as�defined�by�the�Board;�

  • (c) discharge�the�duties�imposed�on�the�Board�by�applicable�laws,�the�constating�documents� of�the�Corporation,�this�Mandate�and�the�committee�mandates;�and�

  • (d) for�the�purpose�of�carrying�out�the�foregoing�responsibilities,�take�all�such�actions�as�the� Board�deems�necessary�or�appropriate.�

Meetings

  1. The�agenda�of�the�Board�meeting�will�be�prepared�by�the�chairperson�of�the�Board�(the�“ Chair ”),� working�with�the�secretary,�and,�whenever�reasonably�practicable,�circulated�to�each�director� prior�to�each�meeting.�

  2. The�Board�shall�meet�at�least�four�times�per�year�and/or�as�deemed�appropriate�by�the�Chair.�

  3. Minutes�of�all�Board�meetings�shall�be�taken�by�the�secretary�of�the�meeting.�The�minutes�of�the� meetings�shall�accurately�record�the�discussions�of�and�decisions�made�by�the�Board�and�shall�be� distributed�to�all�directors.�

  4. The�President�or�his�or�her�designates�may�be�present�at�all�meetings�of�the�Board.�

  5. Vice�Presidents�and�such�other�staff�as�appropriate�to�provide�information�to�the�Board�shall� attend�meetings�at�the�invitation�of�the�Board.�

Delegation

  1. Subject�to�limits�set�out�in�the� Business�Corporations�Act �(Alberta),�the�Board�may�delegate�its� duties�to,�and�receive�reports�and�recommendations�from,�any�committee�of�the�Board.�

  2. Subject�to�limits�set�out�in�the� Business�Corporations�Act �(Alberta)�and�other�applicable�laws�and� stock�exchange�rules,�delegate�to�the�officers�of�the�Corporation�powers�to�manage�the�business� and�affairs�of�the�Corporation.�

Mandate�and�Responsibilities�of�the�Board:�

The�Board’s�primary�roles�are�overseeing�both�corporate�performance�and�the�quality,�depth�and� continuity�of�management�required�to�meet�the�Corporation’s�strategic�objectives.�Without�limiting�the� generality�of�the�foregoing,�the�Board’s�principal�duties�include�the�following:�

Strategic�Direction,�Operating�and�Capital�Plans:

  1. Oversee,�review,�question�and�approve�the�mission�of�the�Corporation�and�its�strategy,�objectives� and�goals,�taking�into�account�the�opportunities�available�to�the�Corporation,�the�potential�risks� it�faces�and�the�Corporation’s�risk�appetite.�

  2. Approve�the�annual�operating�and�capital�plans�proposed�by�management.�

  3. Review�progress�towards�the�achievement�of�the�goals�established�in�the�strategic�planning� process�and�the�operating�and�capital�plans�and�revise�and�alter�the�Board’s�direction�to� management�in�light�of�changing�circumstances.�

  4. Approve�issuances�of�additional�common�shares�or�other�securities�to�the�public.�

Risk�Management :�

  1. Oversee�the�Corporation’s�systems�for�effectively�identifying,�monitoring�and�managing�the�risks� it�faces�with�a�view�to�achieving�a�proper�balance�between�the�risks�incurred�and�the�potential� returns�to�the�Corporation�and�the�long�term�sustainability�of�the�Corporation.�

  2. Approve�policies�and�procedures�designed�to�ensure�that�the�Corporation�acts�responsibly�and�in� compliance�with�applicable�laws,�rules�and�regulations.�

Management�and�Organization :

  1. Appoint�the�President�and�approve�the�position�description�and�annual�performance�goals�and� compensation�of�the�President.�

  2. Evaluate�the�performance�of�the�President�at�least�annually.�

  3. Establish�the�limits�of�management’s�authority�and�responsibility�in�conducting�the�Corporation’s� business.�

  4. Oversee�the�appointment�of�all�other�executive�officers�of�the�Corporation.�

  5. Oversee�succession�planning�processes�for�the�President�and�senior�management�of�the� Corporation.�

  6. Approve�any�proposed�significant�change�in�the�management�organization�structure�of�the� Corporation.�

  7. Approve�all�retirement�plans�for�officers�and�employees�of�the�Corporation.�

  8. Generally�provide�advice�and�guidance�to�management.�

Communications�and�Reporting :

  1. Review�the�communications�policy�for�the�Corporation,�including�with�respect�to�shareholders,� employees,�customers,�financial�analysts,�governments�and�regulatory�authorities,�the�media�and� other�stakeholders.�

  2. Oversee�management’s�process�for�the�timely,�accurate�and�complete�disclosure�of� developments�that�have�a�significant�and�material�impact�on�the�Corporation.�

  3. Oversee�timely,�accurate�and�regular�disclosure�and�reporting�of�the�financial�performance�of�the� Corporation�to�shareholders,�other�security�holders�and�regulators�in�accordance�with�applicable� laws�and�accounting�standards.�

  4. Monitor�and�support�the�Corporation’s�investor�relations�activities�and�its�stakeholder� engagement�policies�and�practices,�including�the�processes�for�receiving�feedback�from� shareholders.��

  5. Report�annually�to�shareholders�on�the�Board’s�stewardship�for�the�preceding�year.�

Finances�and�Controls :

  1. Monitor�the�appropriateness�of�the�Corporation’s�capital�and�financial�structure�and�approve� changes�to�that�structure.�

  2. Oversee�management’s�institution�and�maintenance�of�the�integrity�of�internal�control�and� information�systems,�including�maintenance�of�all�required�records�and�documentation.�

  3. Delegate�to�senior�management�the�authority�for�expenditures�and�transactions,�subject�to� specified�limits�beyond�which�Board�approval�would�be�required.�

Corporate�Responsibility�and�Ethics :

  1. Support�a�culture�of�integrity�and�responsible�stewardship.��

  2. Satisfy�itself,�to�the�extent�feasible,�the�integrity�of�the�President�and�other�senior�management� and�that�such�individuals�promote�a�culture�of�integrity�throughout�the�Corporation.�

Governance :

  1. Approve�the�Corporation’s�approach�to�corporate�governance,�including�this�Mandate,�the� mandates�of�the�Board’s�committees�and�the�position�descriptions�for�the�Chair,�the�Lead� Director,�the�President�and�committee�chairs�and�facilitate�the�continuity,�effectiveness�and� independence�of�the�Board,�including�by:��

  2. (a) Overseeing�succession�planning�for�the�Board�and�selecting�nominees�for�election�to�the� Board;�

  3. (b) Approving�the�appointment�of�directors�to�the�audit�committee�and�the�other� committees�of�the�Board�approved�by�the�Board�from�time�to�time;�

  4. (c) Conducting�regular�(and�not�less�than�annual)�assessments�of�the�Board�as�a�whole,�the� committees�of�the�Board,�the�contribution�of�each�individual�director�and�the�Chair,�Lead� Director�and�committee�chairpersons,�in�each�case�by�reference�to�this�Mandate,�the� applicable�committee�mandate�and/or�the�applicable�position�description;�

  5. (d) Reviewing�the�orientation�and�education�programs�for�new�directors;�and�

  6. (e) Approving�the�Corporation’s�approach�to�director�compensation�and�protection.�

  7. Oversee�structures�and�procedures,�including�the�appointment�of�a�Lead�Director�(if�applicable),� to�enable�the�Board�to�exercise�independent�judgment�and�make�decisions�on�director� independence.�

  8. Delegate�to�the�Board�committees�oversight�of�specific�matters�while�retaining�ultimate� responsibility�for�those�delegated�matters.�

  9. Approve�the�Corporation’s�approach�to�director�compensation�and�protection.�

  10. Enforce�Board�policy�respecting�confidentiality�of�the�Corporation’s�proprietary�information�and� Board�deliberations.�

General :�

  1. Review�and�reassess�the�adequacy�of�this�Mandate�periodically�and�as�it�deems�appropriate,�and� recommend�changes.�The�performance�of�the�Board�shall�be�evaluated�with�reference�to�this� Mandate�annually.