Well-Site Service Provider ENSERVCO Corporation Reports Third Quarter and Year-to-Date Financial Results

COLORADO SPRINGS, CO--(Marketwire - November 15, 2010) - ENSERVCO Corporation (OTCBB: ASPN), a provider of well-site services to the domestic onshore oil and gas industry, today announced financial results for its third quarter and nine-month period ended Sept. 30, 2010.

For the third quarter, which is generally the Company's slowest fiscal period, revenue increased 14% to $3.4 million from $3.0 million in the same period a year ago. The increase was largely due to increased water hauling revenue, particularly within the Marcellus Shale region where the Company commenced operations in June. Concurrent with the year-over-year revenue growth was a reduction in the cost of revenue, which resulted from a series of cost-control measures instituted in 2009 in response to the industry downturn. The lower cost of revenue led to a $494,000 positive swing in gross profit and a 16% improvement in gross margin, which increased to 14% from a negative 2% in the same quarter last year.

Total operating expenses were $2.0 million versus $1.4 million in the third quarter last year. The increase was primarily due to higher general and administrative expenses associated with the Company's July 27, 2010 merger with Aspen Exploration Corporation, as well as new costs associated with operating as a publicly traded company.

Third quarter loss from operations was $1.6 million versus an operating loss of $1.4 million in the third quarter last year. Net loss was $1.0 million, or $0.05 per diluted share on 19.6 million weighted average shares outstanding, versus a net loss of $1.4 million, or $0.10 per diluted share on 14.5 million weighted average shares outstanding in the year-ago third quarter.

For the nine-month period, revenue increased 8% to $12.6 million from $11.7 million at the nine-month mark last year. Gross margin increased to 20% from 11% during the same period in 2009. Operating loss declined to $2.3 million from $3.0 million in the comparable year-ago period, while net loss declined to $1.7 million, or $0.10 per diluted share on 16.2 million weighted average shares outstanding, from $2.9 million, or $0.20 per diluted share on 14.5 million weighted average shares outstanding.

Mike Herman, chairman and CEO, said, "Our commencement of operations in the Marcellus Shale and our merger with Aspen both represent recent strategic accomplishments that we believe have enhanced our prospects for long-term growth and increased shareholder value.

"We have just entered our first full cold-weather season in the Marcellus, and as expected, we are experiencing a sharp increase in demand for our frac heating and hot oiling services. We have added several heating units to our Marcellus-based fleet and are working aggressively to capture market share in the region. Our efforts to date have helped us establish customer relationships with some of the largest exploration and production companies operating in the Appalachian Basin."

Herman added, "In the coming months, we intend to further expand our equipment fleet to address growing demand, and will continue to explore expansion opportunities within other regions that are benefitting from the increase in domestic drilling activity. One of our long-term objectives is to further diversify the services we offer and the territories where we provide them, which should enhance our financial performance and help mitigate the seasonal fluctuations we currently experience."

About ENSERVCO

Through its two operating subsidiaries, Heat Waves Hot Oil Service and Dillco Fluid Service, ENSERVCO has emerged as one of the energy service industry's leading providers of hot oiling, acidizing and frac heating services. The Company owns and operates a fleet of more than 200 specialized trucks, trailers, frac tanks and related well-site equipment. ENSERVCO operates in Colorado, Kansas, New Mexico, Oklahoma, Pennsylvania, Texas, Utah, West Virginia and Wyoming. ENSERVCO became a public company in July 2010 when it merged with Aspen Exploration Corporation, which is now doing business under the trade name ENSERVCO Corporation. Additional information about the Company is available at www.enservco.com.

Cautionary Note Regarding Forward-Looking Statements

This news release contains information that is "forward-looking" in that it describes events and conditions ENSERVCO reasonably expects to occur in the future. Expectations for the future performance of ENSERVCO are dependent upon a number of factors, and there can be no assurance that ENSERVCO will achieve the results as contemplated herein. Certain statements contained in this release using the terms "may," "expects to," and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks, which are beyond ENSERVCO's ability to predict or control and which may cause actual results to differ materially from the projections or estimates contained herein. Among these risks are those set forth in a Form 10-K filed on September 29, 2010. It is important that each person reviewing this release understand the significant risks attendant to the operations of ENSERVCO. ENSERVCO disclaims any obligation to update any forward-looking statement made herein.

 Condensed Consolidated Statements of Operations

                          For the Three Months      For the Nine Months
                                  Ended                     Ended
                              September 30,             September 30,
                        ------------------------  ------------------------
                            2010         2009         2010         2009
                        -----------  -----------  -----------  -----------
                        (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)

  Revenues              $ 3,406,290  $ 2,981,924  $12,626,500  $11,661,914

  Cost of Revenue         2,960,385    3,030,517   10,102,887   10,353,931
                        -----------  -----------  -----------  -----------

  Gross Profit              445,905      (48,593)   2,523,613    1,307,983
                        -----------  -----------  -----------  -----------

  Operating Expenses
  General and
   administrative
   expenses               1,031,883      457,237    1,878,011      884,479
  Depreciation and
   amortization             993,977      907,694    2,918,670    3,390,861
                        -----------  -----------  -----------  -----------
  Total operating
   expenses               2,025,860    1,364,931    4,796,681    4,275,340
                        -----------  -----------  -----------  -----------

  Income (Loss) from
   Operations            (1,579,955)  (1,413,524)  (2,273,068)  (2,967,357)
                        -----------  -----------  -----------  -----------

  Other (Expense) Income
  Interest expense         (177,553)    (150,675)    (551,794)    (490,757)
  Gain (loss) on
  disposals of
  equipment                 (19,200)       3,906      (12,075)      12,602
    Interest and other
     income                 108,996          337      192,360        5,491
                        -----------  -----------  -----------  -----------
  Total other (expense)     (87,757)    (146,432)    (371,509)    (472,664)
                        -----------  -----------  -----------  -----------

    Income (Loss) Before
     Income Tax (Expense)
     Benefit             (1,667,712)  (1,559,956)  (2,644,577)  (3,440,021)

  Income Tax (Expense)
   Benefit                  661,913      116,887      962,374      572,961
                        -----------  -----------  -----------  -----------

  Net Income (Loss)     $(1,005,799) $(1,443,069) $(1,682,203) $(2,867,060)
                        ===========  ===========  ===========  ===========

Other Comprehensive
 Income (Loss)
Unrealized gains
 (losses) on investment
 securities, net of tax      37,168            -     (484,296)           -
                        -----------  -----------  -----------  -----------
Comprehensive Income
 (Loss)                 $  (968,631) $(1,443,069) $(2,166,499) $(2,867,060)
                        ===========  ===========  ===========  ===========



    Earnings per Common
     Share - Basic and
     Diluted Income (Loss)
     Per Common Share   $    (0.05)  $    (0.10)  $    (0.10)  $     (0.20)

      Weighted average
       number of common
       shares outstanding
       (presented on an
       equivalent
       basis)            19,648,325   14,519,244   16,247,725   14,519,244



Proforma Information
 (presented for the
 nine months ended
 September 30, 2010
 and 2009)
Proforma Revenues       $12,626,500  $11,661,914

Proforma Net Income
 (Loss)                 $(2,085,040) $(3,901,231)

Income (Loss) Per
 Common Share - Basic
 and Diluted            $     (0.13) $     (0.18)

Weighted average number
 of common shares
 outstanding             16,247,725   21,778,866




Condensed Consolidated Balance Sheets

                                                September 30,  December 31,
                                                ------------  -------------
                                                    2010          2009
                                                ------------  -------------
                                                (Unaudited)
                         ASSETS
Current Assets
Cash and cash equivalents                       $    905,858  $     148,486
Accounts receivable, net                           1,970,299      2,131,592
Prepaid expenses and other current assets            882,551        262,076
Inventories                                          328,698        309,927
Income taxes receivable                              351,348        385,192
Deferred tax asset                                    62,715         82,435
                                                ------------  -------------
Total current assets                               4,501,469      3,319,708

Property and Equipment, net                       14,414,949     16,452,812
Non-Competition Agreements, net                      480,000        660,000
Goodwill                                             301,087        301,087
Other Assets                                         152,347         97,034
                                                ------------  -------------

TOTAL ASSETS                                    $ 19,849,852  $  20,830,641
                                                ============  =============

              LIABILITIES AND MEMBERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities        $  1,487,378  $   1,276,071
Line of credit borrowings                            370,000      1,339,507
Current portion of long-term debt                  2,397,077      1,132,412
                                                ------------  -------------
Total current liabilities                          4,254,455      3,747,990
                                                ------------  -------------

Long-Term Liabilities
Related party payables                                     -        199,995
Subordinated debt - related party                  1,700,000        500,000
Long-term debt, less current portion               8,215,642     10,692,516
Interest rate swaps                                        -        140,733
Deferred income taxes, net                         1,099,349      2,468,984
                                                ------------  -------------
Total long-term liabilities                       11,014,991     14,002,228
                                                ------------  -------------
Total liabilities                                 15,269,446     17,750,218
                                                ------------  -------------

Commitments and Contingencies

Equity
    Common stock. $.005 par value
     Authorized: 50,000,000 shares
     Issued and outstanding: 21,778,866 at
     September 30, 2010  and -0- at
     December 31, 2009                               108,894              -
Additional paid-in-capital                         5,440,142              -
Retained earnings                                 (1,005,798)             -
      Accumulated other comprehensive loss -
       investment securities                          37,168              -
Members' equity                                                   3,080,423
                                                ------------  -------------
Total equity                                       4,580,406      3,080,423
                                                ------------  -------------

TOTAL LIABILITIES AND EQUITY                    $ 19,849,852  $  20,830,641
                                                ============  =============

Contact Information: CONTACT: Geoff High Pfeiffer High Investor Relations, Inc. 303-393-7044