HSE Completes First Convertible Debenture Closing, Announces $4.3 Million
2011 Capital Program, Provides Oilfield Activity Update

CALGARY, Dec. 21 /CNW/ -

Convertible Debenture Financing

HSE Integrated Ltd. ("HSE" or the "Company") announces that the Company has completed the first closing of its $2 million 10% convertible debenture financing announced November 9, 2010 with total proceeds of $1.925 million. A second closing will take place January 15, 2011 at which time it is anticipated the offering will be fully subscribed. The use of proceeds will be applied to the Company's 2011 capital program.

2011 Capital Program

On December 13, 2010 the Board of Directors approved a $4.3 million capital program for 2011. Approximately half the funds will be used to purchase health and safety equipment to expand business in Western Canada, Central Canada, Atlantic Canada and the United States and $1.5 million is allocated to replace and upgrade the existing capital asset rental fleet. The remainder is designated for Information Technology hardware and software to improve operating efficiency in several areas.

Oilfield Activity Update

The Oilfield segment of the Company's business continues to show strong year-over-year growth in the United Sates and Western Canada, a trend that was documented in the third quarter operating results released November 9, 2010. There has been a sharp increase in oil drilling because of the application of extended reach horizontal drilling and multi-stage fracturing to oil-bearing reservoirs. Many of the reservoirs being exploited are water-sensitive thus respond better to fracturing with hydrocarbon-based frac fluids. An asset class that is performing particularly well in Canada compared to 2009 is firefighting protection services for hydrocarbon fracturing well completion operations. Based on customer input for the winter drilling season which is already underway, HSE expects this level of activity to continue through to spring breakup in 2011.

About HSE

HSE is an integrated, national supplier of industrial Health, Safety and Environmental services. From its head office in Calgary, Alberta, it serves its clients from field service locations in Alberta, British Columbia, Saskatchewan, Ontario, Nova Scotia, New Brunswick, Newfoundland-Labrador and Michigan. HSE also operates in Texas through a jointly owned company called Boots & Coots HSE Services LLC. HSE trades on the TSX under the symbol "HSL".

For further information:

David Yager, Chairman & CEO 
Telephone: [phone]
E-Mail: [email protected]

Lori McLeod-Hill, Chief Financial Officer
Telephone: [phone]
E-Mail: [email protected]