##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form l0-K


|      |  |                                                                                              
|----- |  | ---------------------------------------------------------------------------------------------
|(Mark |  |                                                                                              
|One)  |  |                                                                                              
|þ     |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934     
|     
|      |  | For the Fiscal Year Ended December 31, 2005                                                  
|     
|OR   
|     
|o     |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934.

Commission File No. 000-51435


SUPERIOR WELL SERVICES, INC.


(Exact name of registrant as specified in its charter)


|                                                                    |  |                                         
|------------------------------------------------------------------- |  | ----------------------------------------
|Delaware                                                            |  | 20-2535684                              
|(State or other jurisdiction of
     incorporation or organization) |  | (I.R.S. Employer
    Identification No.)

1380 Rt. 286 East, Suite #121


Indiana, Pennsylvania 15701


(Address of principal executive offices)


(Zip Code)


(Registrants telephone number, including area code)
(724) 465-8904


SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE
ACT:


|                             |  |                       
|---------------------------- |  | ----------------------
|Common Stock, $.01 par value |  | Nasdaq National Market
|(Title of class)             |  | (Exchange)            

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE
ACT:


None


o þ


o þ


þ o


S-K 10-K 10-K. þ


12b-2


o o þ


12b-2 o þ






DOCUMENTS INCORPORATED BY REFERENCE












---



##### 










SUPERIOR WELL SERVICES, INC.


ANNUAL REPORT ON
FORM 10-K


TABLE OF CONTENTS


|         |  |                                                                                           |  |  |    |  |  | 
|-------- |  | ----------------------------------------------------------------------------------------- |  |  | -- |  |  | 
|PART I  
|Item 1.  |  | Business                                                                                  |  |  | 3  | 
|Item 1A. |  | Risk Factors                                                                              |  |  | 10 | 
|Item 2.  |  | Properties                                                                                |  |  | 17 | 
|Item 3.  |  | Legal Proceedings                                                                         |  |  | 17 | 
|Item 4.  |  | Submission of Matters to a Vote of
    Security Holders                                   |  |  | 17 | 
|        
|PART II 
|Item 5.  |  | Market for the Registrants Common
    Equity and Related Stockholder Matters             |  |  | 18 | 
|Item 6.  |  | Selected Financial Data                                                                   |  |  | 19 | 
|Item 7.  |  | Managements Discussion and
    Analysis of Financial Condition and Results of Operations |  |  | 21 | 
|Item 7A. |  | Quantitative and Qualitative Disclosures
    about Market Risk                            |  |  | 35 | 
|Item 8.  |  | Financial Statements and Supplementary
    Data                                           |  |  | 37 | 
|Item 9.  |  | Changes in and Disagreements With
    Accountants on Accounting and Financial Disclosure  |  |  | 50 | 
|Item 9A. |  | Controls and Procedures                                                                   |  |  | 50 | 
|        
|PART III
|Item 10. |  | Directors and Executive Officers of the
    Registrant                                    |  |  | 51 | 
|Item 11. |  | Executive Compensation                                                                    |  |  | 51 | 
|Item 12. |  | Security Ownership of Certain Beneficial
    Owners and Management                        |  |  | 51 | 
|Item 13. |  | Certain Relationships and Related
    Transactions                                        |  |  | 51 | 
|Item 14. |  | Principal Accounting Fees and
    Services                                                |  |  | 51 | 
|        
|PART IV 
|Item 15. |  | Exhibits and Financial Statement
    Schedules                                            |  |  | 52 | 
|EX-23.1 
|EX-31.1 
|EX-31.2 
|EX-32.1 
|EX-32.2 







---



##### Table of Contents






PART I







|        |         
|------- | --------
|Item 1. | Business

Our Company








Our Business Strategy




Expand Our Operations and Market Presence.


Emphasize Our High Value, Single Source Approach.


Pursue Customers Requiring Advanced Fluid Technology for
Higher Pressure Stimulation.


Maintain Our Streamlined Management Structure.


3



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Emphasize Highly Responsive Customer Service.


Our Services and Products




| |                           
| | --------------------------
| | Technical Pumping Services



Stimulation Services.






Nitrogen Services.


4



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Cementing Services.










| |                             
| | ----------------------------
| | Down-Hole Surveying Services





Logging Services.


5



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Perforating Services.


Competition




Customers and Markets






|               |       |         |        |            |         |  |      |         |            |   |         |        |  |            |      |     |         |   |        |         |  |  |      |     |  
|-------------- | ----- | ------- | ------ | ---------- | ------- |  | ---- | ------- | ---------- | - | ------- | ------ |  | ---------- | ---- | --- | ------- | - | ------ | ------- |  |  | ---- | --- | -
|               |       | 2003    |        |            | 2004    |  |      | 2005    |           
|               |       |         |        |            |         |  |      |         |           
|               |       |         |        | Percent of |         |  |      |         | Percent of |   |         |        |  | Percent of |     
|Region         |       | Revenue |        |            | Revenue |  |      | Revenue |            |   | Revenue |        |  | Revenue    |      |     | Revenue |  
|               |       |         |        |            |         |  |      |         |            |   |         |        |  |            |      |     |         |  
|Appalachian    |       | $       | 39,862 |            |         |  | 77.5 | %       |            | $ | 48,433  |        |  |            | 63.7 | %   |         | $ | 71,695 |         |  |  | 54.4 | %  
|Southeast      |       |         | 10,657 |            |         |  | 20.7 |         |            |   | 21,099  |        |  |            | 27.8 |     |         |   | 34,274 |         |  |  | 26.0 |    
|Mid-Continent  |       |         | 799    |            |         |  | 1.8  |         |            |   | 6,509   |        |  |            | 8.5  |     |         |   | 21,073 |         |  |  | 16.0 |    
|Rocky Mountain |       |         |       |            |         |  |     |         |            |   |        |        |  |            |     |     |         |   | 4,691  |         |  |  | 3.6  |    
|               |       |         |        |            |         |  |      |         |            |   |         |        |  |            |      |     |         |  
|               | Total |         | $      | 51,462     |         |  |      | 100     | %          |   | $       | 76,041 |  |            |      | 100 | %       |   | $      | 131,733 |  |  |      | 100 | %
|               |       |         |        |            |         |  |      |         |            |   |         |        |  |            |      |     |         |  



6



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|                           |  |                        |         |  |                   |  |       | 
|-------------------------- |  | ---------------------- | ------- |  | ----------------- |  | ----- | 
|Customer                   |  | Length of Relationship |         |  | % of 2005 Revenue | 
|                           |  |                        |         |  |                   | 
|Atlas America, Inc.        |  |                        | 7 years |  |                   |  | 17.6% | 
|Cheasapeake Energy Corp.   |  |                        | 2 years |  |                   |  | 8.6%  | 
|Geomet Operating Company   |  |                        | 4 years |  |                   |  | 5.6%  | 
|El Paso Production Company |  |                        | 4 years |  |                   |  | 5.6%  | 
|Snyder Brothers, Inc.      |  |                        | 8 years |  |                   |  | 4.4%  | 



Suppliers




|                            |  |                        |         |  |                       |  |       | 
|--------------------------- |  | ---------------------- | ------- |  | --------------------- |  | ----- | 
|                            |  | Length of Relationship |         |  | % of 2005 Purchases   | 
|Raw Materials               |  | with Largest Supplier  |         |  | with Largest Supplier | 
|                            |  |                        |         |  |                       | 
|Fracturing Sand             |  |                        | 8 years |  |                       |  | 12.7% | 
|Nitrogen                    |  |                        | 6 years |  |                       |  | 12.3% | 
|Fracturing and Cementing    |  |                        |         |  |                       |  |       | 
|Chemicals                   |  |                        | 8 years |  |                       |  | 10.5% | 
|Gelling Agents and Breakers |  |                        | 4 years |  |                       |  | 7.2%  | 
|Cement                      |  |                        | 8 years |  |                       |  | 6.2%  | 



|                 |  |                        |         |  |                       |  |       | 
|---------------- |  | ---------------------- | ------- |  | --------------------- |  | ----- | 
|                 |  | Length of Relationship |         |  | % of 2005 Purchases   | 
|Equipment        |  | with Largest Supplier  |         |  | with Largest Supplier | 
|                 |  |                        |         |  |                       | 
|Blenders         |  |                        | 8 years |  |                       |  | 19.3% | 
|Truck Chassis    |  |                        | 7 years |  |                       |  | 10.3% | 
|Frac Trailers    |  |                        | 2 years |  |                       |  | 9.6%  | 
|Truck Chassis    |  |                        | 8 years |  |                       |  | 8.2%  | 
|Nitrogen Pumpers |  |                        | 8 years |  |                       |  | 5.8%  | 
|Engines          |  |                        | 3 years |  |                       |  | 5.3%  | 



Operating Risks and Insurance






| |   |                                                                                       
| | - | --------------------------------------------------------------------------------------
| |  | personal injury or loss of life;                                                      
|
| |  | damage to or destruction of property, equipment, the environment
    and wildlife; and
|
| |  | suspension of operations.                                                             

7



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Safety Program




Environmental Regulation






8



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9



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##### Table of Contents







Employees







Item 1A  Risk Factors


Risks Related to Our Business and Our Industry




| |                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our business depends on domestic spending by the oil and
    natural gas industry, and this spending and our business may be
    adversely affected by industry conditions that are beyond our
    control.





| |   |                                                                                      
| | - | -------------------------------------------------------------------------------------
| |  | the supply of and demand for oil and natural gas and related
    products;           
|
| |  | domestic and worldwide economic conditions;                                          
|
| |  | political instability in oil producing countries;                                    
|
| |  | price of foreign imports of oil and natural gas, including
    liquefied natural gas;
|
| |  | substantial lead times on our capital expenditures;                                  
|
| |  | weather conditions;                                                                  
|
| |  | technical advances affecting energy consumption;                                     
|
| |  | the price and availability of alternative fuels; and                                 
|
| |  | merger and divestiture activity among oil and natural gas
    producers.             



10



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| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | A decline in or substantial volatility of crude oil and
    natural gas commodity prices could adversely affect the demand
    for our services.







| |                                                                                                                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may incur substantial indebtedness or issue additional
    equity securities to finance future acquisitions, which may
    reduce our profitability and result in significant dilution to
    our stockholders. We may not be able to effectively integrate
    the businesses we do acquire, which may result in unforeseen
    operational difficulties and diminished financial
    performance.





| |                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we do not manage the potential difficulties associated
    with rapid expansion successfully, our operating results could
    be adversely affected.





| |   |                                                                         
| | - | ------------------------------------------------------------------------
| |  | lack of sufficient experienced management personnel;                    
|
| |  | increased administrative burden; and                                    
|
| |  | increased logistical problems common to large, expansive
    operations.



11



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| |                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------
| | In order to execute our growth strategy, we may require
    additional capital in the future, which may not be available to
    us.





| |                                                                                                                                                                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We depend on a relatively small number of customers for a
    substantial portion of our revenue. The inability of one or more
    of our customers to meet their obligations or the loss of our
    business with Atlas America, Inc. or GeoMet Operating Company,
    in particular, may adversely affect our financial
    results.







| |                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------
| | The loss of or interruption in operations of one or more
    of our key suppliers could have a material adverse effect on our
    operations.







| |                                                                                                               
| | --------------------------------------------------------------------------------------------------------------
| | Competition within the oilfield services industry may
    adversely affect our ability to market our services.



12



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| |                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may not be able to keep pace with the continual and
    rapid technological developments that characterize the market
    for our services, and our failure to do so may result in our
    loss of market share.





| |   |                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------
| |  | improve our existing services and related equipment;                                                                    
|
| |  | address the increasingly sophisticated needs of our
    customers; and                                                  
|
| |  | anticipate changes in technology and industry standards and
    respond to technological developments on a timely basis.





| |                                                                                                                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our industry has recently experienced shortages in the
    availability of qualified field personnel. Any difficulty we
    experience replacing or adding qualified field personnel could
    adversely affect our business.







| |                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The loss of key members of our management or the failure
    to attract and motivate key personnel could have an adverse
    effect on our business, financial condition and results of
    operations.



13



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| |                                                                                                                                                                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our operations are subject to inherent risks, some of
    which are beyond our control, and these risks may not be fully
    covered under our insurance policies. The occurrence of a
    significant event that is not covered by insurance could have a
    material adverse effect on our financial condition and results
    of operations.





| |   |                                                                                       
| | - | --------------------------------------------------------------------------------------
| |  | personal injury or loss of life;                                                      
|
| |  | damage to or destruction of property, equipment, the environment
    and wildlife; and
|
| |  | suspension of operations.                                                             







| |                                                                                                                                                                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are subject to federal, state and local regulation
    regarding issues of health, safety and protection of the
    environment. Under these regulations, we may become liable for
    penalties, damages or costs of remediation. Any changes in laws
    and government regulations could increase our costs of doing
    business.





14



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Clean-up




| |                                                                                                                                                                                                                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we fail to develop or maintain an effective system of
    internal controls, we may not be able to accurately report our
    financial results or prevent fraud. As a result, current and
    potential stockholders could lose confidence in our financial
    reporting, which would harm our business and the trading price
    of our common stock.





| |                                                                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are a holding company, with no revenue generating
    operations of our own. Any restrictions on our
    subsidiaries ability to make distributions to us would
    materially impact our financial condition or our ability to
    service our obligations.







| |                                                                                                               
| | --------------------------------------------------------------------------------------------------------------
| | Our indebtedness could restrict our operations and make us
    more vulnerable to adverse economic conditions.



15



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##### Table of Contents







| |   |                                                                                                                                                                                                                   
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | impair our ability to make investments and obtain additional
    financing for working capital, capital expenditures,
    acquisitions or other general corporate purposes;                                       
|
| |  | limit our ability to use operating cash flow in other areas of
    our business because we must dedicate a substantial portion of
    these funds to make principal and interest payments on our
    indebtedness;
|
| |  | limit our ability to borrow funds that may be necessary to
    operate or expand our business;                                                                                                                    
|
| |  | put us at a competitive disadvantage to competitors that have
    less debt;                                                                                                                                      
|
| |  | increase our vulnerability to interest rate increases; and                                                                                                                                                        
|
| |  | hinder our ability to adjust to rapidly changing economic and
    industry conditions.                                                                                                                            





| |                                                                            
| | ---------------------------------------------------------------------------
| | Unionization efforts could increase our costs or limit our
    flexibility.





| |                                                                         
| | ------------------------------------------------------------------------
| | Severe weather could have a material adverse impact on our
    business.





| |   |                                                                                          
| | - | -----------------------------------------------------------------------------------------
| |  | curtailment of services;                                                                 
|
| |  | weather-related damage to equipment resulting in suspension of
    operations;           
|
| |  | weather-related damage to our facilities;                                                
|
| |  | inability to deliver materials to jobsites in accordance with
    contract schedules; and
|
| |  | loss of productivity.                                                                    





| |                                                                  
| | -----------------------------------------------------------------
| | A terrorist attack or armed conflict could harm our
    business.



16



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##### Table of Contents








|        |           
|------- | ----------
|Item 2. | Properties





|                  |  |                 |                 |                                    |         |  |                                  |               |  |  |     | 
|----------------- |  | --------------- | --------------- | ---------------------------------- | ------- |  | -------------------------------- | ------------- |  |  | --- | 
|                  |  |                 |                 | Is the Lease Renewable at Our Sole |         |  | Do We Have an Option to Purchase |              
|Location          |  | Expiration Date |                 |                                    | Option? |  |                                  | the Property? | 
|                  |  |                 |                 |                                    |         |  |                                  |               | 
|Bradford, PA      |  |                 | October, 2006   |                                    |         |  | Yes                              |               |  |  | No  | 
|Cleveland, OK     |  |                 | March, 2009     |                                    |         |  | No                               |               |  |  | Yes | 
|Columbia, MS      |  |                 | December, 2006  |                                    |         |  | No                               |               |  |  | Yes | 
|Mercer, PA        |  |                 | September, 2007 |                                    |         |  | No                               |               |  |  | No  | 
|Wooster, OH       |  |                 | December, 2009  |                                    |         |  | Yes                              |               |  |  | No  | 
|Gaylord, MI       |  |                 | March 2008      |                                    |         |  | Yes                              |               |  |  | Yes | 
|Bossier City, LA  |  |                 | February 2008   |                                    |         |  | Yes                              |               |  |  | No  | 
|Hominy, OK        |  |                 | July 2006       |                                    |         |  | No                               |               |  |  | Yes | 
|Black Lick, PA(1) |  |                 | N/A             |                                    |         |  | No                               |               |  |  | No  | 
|Vernal, UT        |  |                 | August 2005     |                                    |         |  | No                               |               |  |  | No  | 
|Van Buren, AR     |  |                 | May 2009        |                                    |         |  | Yes                              |               |  |  | No  | 






|    |                                 
|--- | --------------------------------
|(1) | The lease is
    month-to-month.






|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders



17



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PART II







|        |                                                                              
|------- | -----------------------------------------------------------------------------
|Item 5. | Market for the Registrants Common Equity and Related
    Stockholder Matters

Market Information for Common Stock




|                                    |                  |      |        |     |       
|----------------------------------- | ---------------- | ---- | ------ | --- | ------
|                                    |                  | High |        | Low
|                                    |                  |      |        |    
|Fiscal Year Ended December 31, 2005 |                  |      |        |    
|                                    | Third Quarter(1) |      | $25.50 |     | $13.00
|                                    | Fourth Quarter   |      | 25.03  |     | 20.53 








|    |                                                                     
|--- | --------------------------------------------------------------------
|(1) | Covers the period from July 29, 2005 through
    September 30, 2005.

Dividend Policy




Securities Authorized for Issuance Under Equity Compensation
Plans




EQUITY COMPENSATION PLAN INFORMATION


|                                                           |  |                   |   |  |                  |  |   |                     |  |  |           | 
|---------------------------------------------------------- |  | ----------------- | - |  | ---------------- |  | - | ------------------- |  |  | --------- | 
|                                                           |  | Number of         |   |  | Weighted-        |  |   | Number of           | 
|                                                           |  | Securities to be  |   |  | Average Exercise |  |   | Securities          | 
|                                                           |  | Issued Upon       |   |  | Price of         |  |   | Remaining Available | 
|                                                           |  | Exercise of       |   |  | Outstanding      |  |   | for Future Issuance | 
|                                                           |  | Outstanding       |   |  | Options,         |  |   | Under Equity        | 
|                                                           |  | Options, Warrants |   |  | Warrants and     |  |   | Compensation Plans  | 
|                                                           |  | and Rights        |   |  | Rights           |  |   | (1)                 | 
|                                                           |  |                   |   |  |                  |  |   |                     | 
|Equity compensation plans approved by our stockholders(2)  |  |                   | 0 |  |                  |  | 0 |                     |  |  | 2,700,000 | 
|Equity compensation plans not approved by our stockholders |  |                   | 0 |  |                  |  | 0 |                     |  |  | 0         | 






|    |                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Excludes securities to be issued upon the exercise of
    outstanding options, warrants and rights.                                                                            
|   
|(2) | Includes options and restricted stock awards granted under the
    2005 Stock Incentive Plan which is further described in
    footnote 10 to our audited financial statements.

18



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Purchases of Equity Securities By the Issuer and Affiliated
Purchases









|        |                        
|------- | -----------------------
|Item 6. | Selected Financial Data



|                                             |                                                                  |                                                           |            |               |                |   |            |        |   |   |            |        |   |      |            |        |   |   |            |   | 
|-------------------------------------------- | ---------------------------------------------------------------- | --------------------------------------------------------- | ---------- | ------------- | -------------- | - | ---------- | ------ | - | - | ---------- | ------ | - | ---- | ---------- | ------ | - | - | ---------- | - | 
|                                             |                                                                  | Superior Well Services, Ltd. and Bradford Resources, Ltd. |            |               |               
|                                             |                                                                  |                                                           |            | Superior Well |               
|                                             |                                                                  | (Partnerships)                                            |            |               | Services, Inc. |  
|                                             |                                                                  |                                                           |            |               |                |  
|                                             |                                                                  |                                                           |            | Year Ended    |               
|                                             |                                                                  | Year Ended December 31,                                   |            |               | December 31,   |  
|                                             |                                                                  |                                                           |            |               |                |  
|                                             |                                                                  | 2001                                                      |            |               | 2002           |   |            | 2003   |   |   | 2004       |        |   | 2005 |           
|                                             |                                                                  |                                                           |            |               |                |   |            |        |   |   |            |        |   |      |           
|                                             |                                                                  | (Unaudited)                                               |            |               |                |   |            |        |   |   |           
|                                             |                                                                  | (In thousands, except income per share information)       |           
|Statements of Income Data:                   |                                                                  |                                                           |            |               |                |   |            |        |   |   |            |        |   |      |            |        |   |   |            |  
|Revenue                                      |                                                                  | $                                                         | 25,496     |               |                | $ | 34,246     |        |   | $ | 51,462     |        |   | $    | 76,041     |        |   | $ | 131,733    |  
|Cost of revenue                              |                                                                  |                                                           | 17,015     |               |                |   | 24,135     |        |   |   | 35,581     |        |   |      | 54,447     |        |   |   | 90,258     |  
|                                             |                                                                  |                                                           |            |               |                |   |            |        |   |   |            |        |   |      |           
|Gross profit                                 |                                                                  |                                                           | 8,481      |               |                |   | 10,111     |        |   |   | 15,881     |        |   |      | 21,594     |        |   |   | 41,475     |  
|Selling, general and administrative expenses |                                                                  |                                                           | 2,811      |               |                |   | 4,723      |        |   |   | 7,609      |        |   |      | 11,339     |        |   |   | 17,809     |  
|                                             |                                                                  |                                                           |            |               |                |   |            |        |   |   |            |        |   |      |           
|Operating income                             |                                                                  |                                                           | 5,670      |               |                |   | 5,388      |        |   |   | 8,272      |        |   |      | 10,255     |        |   |   | 23,666     |  
|Interest expense                             |                                                                  |                                                           | (5         | )             |                |   | (35        | )      |   |   | (78        | )      |   |      | (310       | )      |   |   | (566       | )
|Other (expense) income                       |                                                                  |                                                           | 110        |               |                |   | (7         | )      |   |   | 20         |        |   |      | (148       | )      |   |   | 193        |  
|Income tax expense                           |                                                                  |                                                           |           |               |                |   |           |        |   |   |           |        |   |      |           |        |   |   | 13,826     |  
|                                             |                                                                  |                                                           |            |               |                |   |            |        |   |   |            |        |   |      |           
|Net income                                   |                                                                  | $                                                         | 5,775      |               |                | $ | 5,346      |        |   | $ | 8,214      |        |   | $    | 9,797      |        |   | $ | 9,467      |  
|                                             |                                                                  |                                                           |            |               |                |   |            |        |   |   |            |        |   |      |           
|                                             | Pro Forma income tax expense (unaudited)(1)                      |                                                           |            | (2,310        | )              |   |            | (2,288 | ) |   |            | (3,528 | ) |      |            | (4,249 | ) |   |            |  | 
|                                             |                                                                  |                                                           |            |               |                |   |            |        |   |   |            |        |   |      |           
|                                             | Net income adjusted for pro forma income tax expense (unaudited) |                                                           | $          | 3,465         |                |   | $          | 3,058  |   |   | $          | 4,686  |   |      | $          | 5,548  |   |   |            |  | 
|                                             |                                                                  |                                                           |            |               |                |   |            |        |   |   |            |        |   |      |           
|Net income per common share(2)               |                                                                  |                                                           |            |               |                |   |            |        |   |   |            |        |   |      |            |        |   |   |            |  
|Basic                                        |                                                                  | $                                                         | 0.18       |               |                | $ | 0.16       |        |   | $ | 0.24       |        |   | $    | 0.29       |        |   | $ | 0.49       |  
|Diluted                                      |                                                                  | $                                                         | 0.18       |               |                | $ | 0.16       |        |   | $ | 0.24       |        |   | $    | 0.29       |        |   | $ | 0.49       |  
|Average Shares Outstanding                   |                                                                  |                                                           |            |               |                |   |            |        |   |   |            |        |   |      |            |        |   |   |            |  
|Basic                                        |                                                                  |                                                           | 19,376,667 |               |                |   | 19,376,667 |        |   |   | 19,376,667 |        |   |      | 19,376,667 |        |   |   | 19,317,436 |  
|Diluted                                      |                                                                  |                                                           | 19,376,667 |               |                |   | 19,376,667 |        |   |   | 19,376,667 |        |   |      | 19,376,667 |        |   |   | 19,317,436 |  
|Statements of Cash Flow Data:                |                                                                  |                                                           |            |               |                |   |            |        |   |   |            |        |   |      |            |        |   |   |            |  
|Net cash provided by operations              |                                                                  | $                                                         | 7,319      |               |                | $ | 9,151      |        |   | $ | 6,692      |        |   | $    | 12,899     |        |   | $ | 17,612     |  
|Net cash used in investing                   |                                                                  |                                                           | (3,770     | )             |                |   | (10,288    | )      |   |   | (10,765    | )      |   |      | (19,399    | )      |   |   | (40,961    | )
|Net cash provided by financing               |                                                                  |                                                           | (2,016     | )             |                |   |           |        |   |   | 4,827      |        |   |      | 6,751      |        |   |   | 32,570     |  
|Capital expenditures                         |                                                                  |                                                           | 3,799      |               |                |   | 9,813      |        |   |   | 9,150      |        |   |      | 19,409     |        |   |   | 40,790     |  
|Acquisitions, net of cash acquired           |                                                                  |                                                           |           |               |                |   |           |        |   |   | 2,125      |        |   |      |           |        |   |   |           |  
|Depreciation and amortization                |                                                                  |                                                           | 1,786      |               |                |   | 2,467      |        |   |   | 3,465      |        |   |      | 5,057      |        |   |   | 8,698      |  

19



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|                                    |  |                                                           |        |               |                |   |        |      |  |   |        |  |  |      |        |  |  |   |         | 
|----------------------------------- |  | --------------------------------------------------------- | ------ | ------------- | -------------- | - | ------ | ---- |  | - | ------ |  |  | ---- | ------ |  |  | - | ------- | 
|                                    |  | Superior Well Services, Ltd. and Bradford Resources, Ltd. |        |               |               
|                                    |  |                                                           |        | Superior Well |               
|                                    |  | (Partnerships)                                            |        |               | Services, Inc. |  
|                                    |  |                                                           |        |               |                |  
|                                    |  |                                                           |        | Year Ended    |               
|                                    |  | Year Ended December 31,                                   |        |               | December 31,   |  
|                                    |  |                                                           |        |               |                |  
|                                    |  | 2001                                                      |        |               | 2002           |   |        | 2003 |  |   | 2004   |  |  | 2005 |       
|                                    |  |                                                           |        |               |                |   |        |      |  |   |        |  |  |      |       
|                                    |  | (Unaudited)                                               |        |               |                |   |        |      |  |   |       
|                                    |  | (In thousands, except income per share information)       |       
|Balance Sheet Data (at period end): |  |                                                           |        |               |                |   |        |      |  |   |        |  |  |      |        |  |  |   |         | 
|Cash and cash equivalents           |  | $                                                         | 1,675  |               |                | $ | 538    |      |  | $ | 1,293  |  |  | $    | 1,544  |  |  | $ | 10,765  | 
|Property, plant and equipment, net  |  |                                                           | 11,960 |               |                |   | 19,437 |      |  |   | 26,036 |  |  |      | 40,594 |  |  |   | 72,691  | 
|Total assets                        |  |                                                           | 17,907 |               |                |   | 26,379 |      |  |   | 37,225 |  |  |      | 56,682 |  |  |   | 113,091 | 
|Long-term debt                      |  |                                                           | 86     |               |                |   | 34     |      |  |   | 80     |  |  |      | 11,093 |  |  |   | 1,258   | 
|Partners capital                   |  |                                                           | 15,170 |               |                |   | 18,837 |      |  |   | 30,112 |  |  |      | 33,819 |  |  |   |        | 
|Stockholders Equity                |  |                                                           |       |               |                |   |       |      |  |   |       |  |  |      |       |  |  |   | 91,393  | 
|Other Financial Data:               |  |                                                           |        |               |                |   |        |      |  |   |        |  |  |      |        |  |  |   |         | 
|EBITDA(3)                           |  | $                                                         | 7,566  |               |                | $ | 7,848  |      |  | $ | 11,757 |  |  | $    | 15,164 |  |  | $ | 32,557  | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Historically, we were not subject to federal or state income
    taxes due to the partnership structure. Pro forma income tax
    expense (unaudited) has been computed at statutory rates to
    reflect the pro forma effect on net income for periods prior to
    our holding company restructuring.                                                                                                                                                                                                                                                                                                                       
|   
|(2) | Share and per share data have been retroactively restated to
    reflect our holding company restructuring in connection with our
    initial public offering in August 2005. For the calculations of
    earnings per share for the years ended December 31, 2001
    through 2004, all shares are assumed to have been issued at the
    beginning of the period resulting in 19,376,667 average shares
    outstanding.                                                                                                                                                                                                     
|   
|(3) | We define EBITDA as earnings (net income) before interest
    expense, income tax expense and depreciation and amortization
    This term, as we define it, may not be comparable to similarly
    titled measures employed by other companies and is not a measure
    of performance calculated in accordance with GAAP. EBITDA should
    not be considered in isolation or as a substitute for operating
    income, net income, cash flows provided by operating, investing
    and financing activities or other income or cash flow statement
    data prepared in accordance with GAAP. Our management uses
    EBITDA:



| |   |                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | as a measure of operating performance because it assists us in
    comparing our performance on a consistent basis, since it
    removes the impact of our capital structure and asset base from
    our operating results;
|
| |  | as a measure for planning and forecasting overall expectations
    and for evaluating actual results against such expectations;                                                                                            
|
| |  | to assess compliance with financial ratios and covenants
    included in credit facilities;                                                                                                                                
|
| |  | in communications with lenders concerning our financial
    performance; and                                                                                                                                               
|
| |  | to evaluate the viability of potential acquisitions and overall
    rates of return.                                                                                                                                       



|                                        |                               |                         |        |          |                |   |        |       |  |   |        |        | 
|--------------------------------------- | ----------------------------- | ----------------------- | ------ | -------- | -------------- | - | ------ | ----- |  | - | ------ | ------ | 
|                                        |                               | Year Ended December 31, |       
|                                        |                               |                         |       
|                                        |                               |                         |        | Superior |               
|                                        |                               |                         |        | Well     |               
|                                        |                               | Partnerships            |        |          | Services, Inc. |  
|                                        |                               |                         |        |          |                |  
|                                        |                               | 2003                    |        |          | 2004           |   |        | 2005  | 
|                                        |                               |                         |        |          |                |   |        |       | 
|Reconciliation of EBITDA to Net Income: |                               |                         |        |          |                |   |        |       |  |   |        |       
|Net income                              |                               | $                       | 8,214  |          |                | $ | 9,797  |       |  | $ | 9,467  |       
|                                        | Income tax expense            |                         |        |         |                |   |        |      |  |   |        | 13,826 | 
|                                        | Interest expense              |                         |        | 78       |                |   |        | 310   |  |   |        | 566    | 
|                                        | Depreciation and amortization |                         |        | 3,465    |                |   |        | 5,057 |  |   |        | 8,698  | 
|                                        |                               |                         |        |          |                |   |        |       | 
|EBITDA                                  |                               | $                       | 11,757 |          |                | $ | 15,164 |       |  | $ | 32,557 |       
|                                        |                               |                         |        |          |                |   |        |       | 

20



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

The following discussion and analysis should be read in
conjunction with the consolidated financial statements and notes
thereto included elsewhere in this report. This discussion
contains forward-looking statement that reflect
managements current views with respect to future events
and financial performance. Our actual results may differ
materially form those anticipated in these forward-looking
statements or as a result of certain factors such as those set
forth below under Forward-Looking Statements.


Overview






|                             |               |                         |        |        |      |  |      |       |   |   |        |        |  |  |      |       |   |   |         |         |  |  |      |       |  
|---------------------------- | ------------- | ----------------------- | ------ | ------ | ---- |  | ---- | ----- | - | - | ------ | ------ |  |  | ---- | ----- | - | - | ------- | ------- |  |  | ---- | ----- | -
|                             |               | Year Ended December 31, |       
|                             |               |                         |       
|                             |               | 2003                    |        |        | 2004 |  |      | 2005  |  
|                             |               |                         |        |        |      |  |      |       |  
|                             |               | (Dollars in thousands)  |       
|Revenue:                     |               |                         |        |        |      |  |      |       |   |   |        |        |  |  |      |       |   |   |         |         |  |  |      |      
|Technical pumping services   |               | $                       | 46,159 |        |      |  | 89.7 | %     |   | $ | 68,160 |        |  |  | 89.6 | %     |   | $ | 119,210 |         |  |  | 90.5 | %    
|Down-hole surveying services |               |                         | 5,303  |        |      |  | 10.3 | %     |   |   | 7,881  |        |  |  | 10.4 | %     |   |   | 12,523  |         |  |  | 9.5  | %    
|                             |               |                         |        |        |      |  |      |       |   |   |        |        |  |  |      |       |   |  
|                             | Total revenue |                         | $      | 51,462 |      |  |      | 100.0 | % |   | $      | 76,041 |  |  |      | 100.0 | % |   | $       | 131,733 |  |  |      | 100.0 | %
|                             |               |                         |        |        |      |  |      |       |   |   |        |        |  |  |      |       |   |  





| |                           
| | --------------------------
| | Technical Pumping Services






| |                             
| | ----------------------------
| | Down-Hole Surveying Services



21



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How We Generate Our Revenue




set-up set-up


How We Evaluate Our Operations






| |                                       
| | --------------------------------------
| | Operating Income per Operating Region.





22



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| |                                                            
| | -----------------------------------------------------------
| | Material and Labor Expenses as a Percentage of
    Revenue.









| |                                                                             
| | ----------------------------------------------------------------------------
| | Selling, General and Administrative Expenses as a
    Percentage of Revenue.





| |        
| | -------
| | EBITDA.





| |   |                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | as a measure of operating performance because it assists us in
    comparing our performance on a consistent basis, since it
    removes the impact of our capital structure and asset base from
    our operating results;
|
| |  | as a measure for planning and forecasting overall expectations
    and for evaluating actual results against such expectations;                                                                                            
|
| |  | to assess compliance with financial ratios and covenants
    included in credit facilities;                                                                                                                                
|
| |  | in communications with lenders concerning our financial
    performance; and                                                                                                                                               
|
| |  | to evaluate the viability of potential acquisitions and overall
    rates of return.                                                                                                                                       

How We Manage Our Operations






| |                          
| | -------------------------
| | Service Crew Performance.



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| |                                   
| | ----------------------------------
| | Equipment Maintenance Performance.





| |                          
| | -------------------------
| | Inventory Turnover Rates.





| |                       
| | ----------------------
| | Customer Satisfaction.





| |                    
| | -------------------
| | Safety Performance.



Our Industry




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##### Table of Contents







Our Growth Strategy






|               |       |         |        |            |         |  |      |         |            |   |         |        |  |            |      |     |         |   |        |         |  |  |      |     |  
|-------------- | ----- | ------- | ------ | ---------- | ------- |  | ---- | ------- | ---------- | - | ------- | ------ |  | ---------- | ---- | --- | ------- | - | ------ | ------- |  |  | ---- | --- | -
|               |       | 2003    |        |            | 2004    |  |      | 2005    |           
|               |       |         |        |            |         |  |      |         |           
|               |       |         |        | Percent of |         |  |      |         | Percent of |   |         |        |  | Percent of |     
|Region         |       | Revenue |        |            | Revenue |  |      | Revenue |            |   | Revenue |        |  | Revenue    |      |     | Revenue |  
|               |       |         |        |            |         |  |      |         |            |   |         |        |  |            |      |     |         |  
|Appalachian    |       | $       | 39,862 |            |         |  | 77.5 | %       |            | $ | 48,433  |        |  |            | 63.7 | %   |         | $ | 71,695 |         |  |  | 54.4 | %  
|Southeast      |       |         | 10,657 |            |         |  | 20.7 |         |            |   | 21,099  |        |  |            | 27.8 |     |         |   | 34,274 |         |  |  | 26.0 |    
|Mid-Continent  |       |         | 799    |            |         |  | 1.8  |         |            |   | 6,509   |        |  |            | 8.5  |     |         |   | 21,073 |         |  |  | 16.0 |    
|Rocky Mountain |       |         |       |            |         |  |     |         |            |   |        |        |  |            |     |     |         |   | 4,691  |         |  |  | 3.6  |    
|               |       |         |        |            |         |  |      |         |            |   |         |        |  |            |      |     |         |  
|               | Total |         | $      | 51,462     |         |  |      | 100     | %          |   | $       | 76,041 |  |            |      | 100 | %       |   | $      | 131,733 |  |  |      | 100 | %
|               |       |         |        |            |         |  |      |         |            |   |         |        |  |            |      |     |         |  





Our Results of Operations




25



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|                             |                                     |                         |       |        |        |   |        |        |        |   |        |         |         | 
|---------------------------- | ----------------------------------- | ----------------------- | ----- | ------ | ------ | - | ------ | ------ | ------ | - | ------ | ------- | ------- | 
|                             |                                     | Year Ended December 31, |      
|                             |                                     |                         |      
|                             |                                     | 2003                    |       |        | 2004   |   |        | 2005   |       
|                             |                                     |                         |       |        |        |   |        |        |       
|                             |                                     | (In thousands)          |      
|Statement of Operations Data |                                     |                         |       |        |        |   |        |        |        |   |        |        
|Revenue:                     |                                     |                         |       |        |        |   |        |        |        |   |        |        
|                             | Technical pumping services          |                         | $     | 46,159 |        |   | $      | 68,160 |        |   | $      | 119,210 |        
|                             | Down-hole surveying services        |                         |       | 5,303  |        |   |        | 7,881  |        |   |        | 12,523  |        
|                             |                                     |                         |       |        |        |   |        |        |       
|                             |                                     | Total revenue           |       |        | 51,462 |   |        |        | 76,041 |   |        |         | 131,733 | 
|Expenses:                    |                                     |                         |       |        |        |   |        |        |        |   |        |        
|                             | Cost of revenue                     |                         |       | 35,581 |        |   |        | 54,447 |        |   |        | 90,258  |        
|                             | Selling, general and administrative |                         |       | 7,609  |        |   |        | 11,339 |        |   |        | 17,809  |        
|                             |                                     |                         |       |        |        |   |        |        |       
|                             |                                     | Total expenses          |       |        | 43,190 |   |        |        | 65,786 |   |        |         | 108,067 | 
|                             |                                     |                         |       |        |        |   |        |        |       
|Operating income             |                                     | $                       | 8,272 |        |        | $ | 10,255 |        |        | $ | 23,666 |        
|                             |                                     |                         |       |        |        |   |        |        |       



| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2005 Compared to Year Ended
    December 31, 2004



| |         
| | --------
| | Revenue.







26



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##### Table of Contents







| |                 
| | ----------------
| | Cost of Revenue.





| |                                              
| | ---------------------------------------------
| | Selling, General and Administrative Expenses.





| |                  
| | -----------------
| | Operating Income.





| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2004 Compared to Year Ended
    December 31, 2003



| |         
| | --------
| | Revenue.



27



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| |                 
| | ----------------
| | Cost of Revenue.





| |                                              
| | ---------------------------------------------
| | Selling, General and Administrative Expenses.





| |                  
| | -----------------
| | Operating Income.



28



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Items Impacting Comparability of Our Financial
Results






| |                                
| | -------------------------------
| | Changes in Our Legal Structure.







| |                         
| | ------------------------
| | Public Company Expenses.



Liquidity and Capital Resources




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##### Table of Contents







| |                                   
| | ----------------------------------
| | Financial Condition and Cash Flows



| |                     
| | --------------------
| | Financial Condition.





| |                            
| | ---------------------------
| | Cash flows from operations.





| |                                         
| | ----------------------------------------
| | Cash flows used in investing activities.





| |                                      
| | -------------------------------------
| | Cash flows from financing activities.



30



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##### Table of Contents





| |                     
| | --------------------
| | Capital Requirements





| |   |                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | expansion capital expenditures, such as those to acquire
    additional equipment and other assets to grow our
    business; and                                                                                              
|
| |  | maintenance or upgrade capital expenditures, which are capital
    expenditures made to extend the useful life of partially or
    fully depreciated assets or to upgrade the operational
    capabilities of existing assets.







|                              |  |       |        |           |        |   |        |           |  |   |           |  |  |       |     |  |  |   |     | 
|----------------------------- |  | ----- | ------ | --------- | ------ | - | ------ | --------- |  | - | --------- |  |  | ----- | --- |  |  | - | --- | 
|                              |  |       |        | Less Than |        |   |        |           |  |   | After 5   | 
|Contractual Cash Obligations  |  | Total |        |           | 1 Year |   |        | 1-3 Years |  |   | 4-5 Years |  |  | Years |    
|                              |  |       |        |           |        |   |        |           |  |   |           |  |  |       |    
|Long term and short term debt |  | $     | 1,437  |           |        | $ | 179    |           |  | $ | 278       |  |  | $     | 260 |  |  | $ | 720 | 
|Operating leases              |  |       | 4,030  |           |        |   | 1,305  |           |  |   | 2,045     |  |  |       | 680 |  |  |   |    | 
|Purchase obligations          |  |       | 34,200 |           |        |   | 34,200 |           |  |   |          |  |  |       |    |  |  |   |    | 
|                              |  |       |        |           |        |   |        |           |  |   |           |  |  |       |    
|Total revenue                 |  | $     | 39,667 |           |        | $ | 35,684 |           |  | $ | 2,323     |  |  | $     | 940 |  |  | $ | 720 | 
|                              |  |       |        |           |        |   |        |           |  |   |           |  |  |       |    



| |                               
| | ------------------------------
| | Off-Balance Sheet Arrangements





| |                                
| | -------------------------------
| | Description of Our Indebtedness





31



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##### Table of Contents



Recent Accounting Pronouncements


Consolidation of Variable Interest Entities.


Share-Based
Payment.


Critical Accounting Policies








| |                    
| | -------------------
| | Revenue Recognition





32



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| |                              
| | -----------------------------
| | Property, Plant and Equipment





| |                                
| | -------------------------------
| | Impairment of Long-Lived Assets







| |   |                                                                                         
| | - | ----------------------------------------------------------------------------------------
| |  | changes in general economic conditions in regions in which our
    services are located;
|
| |  | the price of crude oil and natural gas;                                                 
|
| |  | our ability to negotiate favorable sales arrangements; and                              
|
| |  | our competition from other service providers.                                           





| |                  
| | -----------------
| | Intangible Assets





| |                       
| | ----------------------
| | Contingent Liabilities



33



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##### Table of Contents







| |                   
| | ------------------
| | Insurance Expenses



out-of


Forward-Looking Statements and Risk Factors


10-K




| |   |                                                                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a decrease in domestic spending by the oil and natural gas
    exploration and production industry;                                                                                                                                         
|
| |  | a decline in or substantial volatility of crude oil and natural
    gas commodity prices;                                                                                                                                                   
|
| |  | the loss of one or more significant customers;                                                                                                                                                                                              
|
| |  | the loss of or interruption in operations of one or more key
    suppliers;                                                                                                                                                                 
|
| |  | the incurrence of significant costs and liabilities in the
    future resulting from our failure to comply with new or existing
    environmental regulations or an accidental release of hazardous
    substances into the environment; and
|
| |  | other financial, operational and legal risks and uncertainties
    detailed from time to time in our Securities and Exchange
    Commission filings.                                                                                        

10-K.


34



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##### Table of Contents








|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures about Market
    Risk

Quantitative and Qualitative Disclosures about Market Risk




Interest Rate Risk.


Concentration of Credit Risk.


Commodity Price Risk.


35



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|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














|                                    | 
|----------------------------------- | 
|/s/ Schneider Downs &
    Co., Inc. | 
|                                   
|Pittsburgh, Pennsylvania            | 
|March 6, 2006                       | 

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SUPERIOR WELL SERVICES, INC. AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS


|                                                                                      |                                                                                                      |                            |        |              |                 |   |         |         |        | 
|------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------- | -------------------------- | ------ | ------------ | --------------- | - | ------- | ------- | ------ | 
|                                                                                      |                                                                                                      |                            |        | December 31, |                
|                                                                                      |                                                                                                      | December 31,               |        |              | 2005            |  
|                                                                                      |                                                                                                      | 2004                       |        |              | (Superior Well  |  
|                                                                                      |                                                                                                      | (Partnerships)             |        |              | Services, Inc.) |  
|                                                                                      |                                                                                                      |                            |        |              |                 |  
|                                                                                      |                                                                                                      | (In thousands, except      |       
|                                                                                      |                                                                                                      | per share data)            |       
|Current Assets:                                                                       |                                                                                                      |                            |        |              |                 |   |         |        
|                                                                                      | Cash and cash equivalents                                                                            |                            | $      | 1,544        |                 |   | $       | 10,765  |       
|                                                                                      | Trade accounts receivable, net of $134 allowance in 2005                                             |                            |        | 11,292       |                 |   |         | 23,381  |       
|                                                                                      | Inventories                                                                                          |                            |        | 1,835        |                 |   |         | 3,761   |       
|                                                                                      | Prepaid expenses and other current assets                                                            |                            |        | 336          |                 |   |         | 1,157   |       
|                                                                                      | Deferred income taxes                                                                                |                            |        |             |                 |   |         | 303     |       
|                                                                                      |                                                                                                      |                            |        |              |                 |  
|                                                                                      |                                                                                                      | Total current assets       |        |              | 15,007          |   |         |         | 39,367 | 
|Property, Plant and Equipment:                                                        |                                                                                                      |                            |        |              |                 |   |         |        
|                                                                                      | Land                                                                                                 |                            |        | 320          |                 |   |         | 420     |       
|                                                                                      | Building and improvements                                                                            |                            |        | 961          |                 |   |         | 1,842   |       
|                                                                                      | Equipment and vehicles                                                                               |                            |        | 53,347       |                 |   |         | 84,184  |       
|                                                                                      | Construction in progress                                                                             |                            |        | 792          |                 |   |         | 8,760   |       
|                                                                                      |                                                                                                      |                            |        |              |                 |  
|                                                                                      |                                                                                                      |                            | 55,420 |              |                 |   | 95,206  |        
|                                                                                      | Accumulated depreciation                                                                             |                            |        | (14,826      | )               |   |         | (22,515 | )     
|                                                                                      |                                                                                                      |                            |        |              |                 |  
|Total property, plant and equipment, net                                              |                                                                                                      |                            | 40,594 |              |                 |   | 72,691  |        
|Intangible assets, net of accumulated amortization of $380 and
    $665, respectively |                                                                                                      |                            | 1,045  |              |                 |   | 760     |        
|Other assets                                                                          |                                                                                                      |                            | 36     |              |                 |   | 273     |        
|                                                                                      |                                                                                                      |                            |        |              |                 |  
|Total assets                                                                          |                                                                                                      | $                          | 56,682 |              |                 | $ | 113,091 |        
|                                                                                      |                                                                                                      |                            |        |              |                 |  
|Current Liabilities:                                                                  |                                                                                                      |                            |        |              |                 |   |         |        
|                                                                                      | Accounts payable-trade                                                                               |                            | $      | 4,240        |                 |   | $       | 7,737   |       
|                                                                                      | Notes payable                                                                                        |                            |        | 3,955        |                 |   |         |        |       
|                                                                                      | Current portion of long-term debt                                                                    |                            |        | 1,860        |                 |   |         | 179     |       
|                                                                                      | 401(k) plan contribution and withholding                                                             |                            |        | 651          |                 |   |         | 911     |       
|                                                                                      | Accrued wages and health benefits                                                                    |                            |        | 665          |                 |   |         | 841     |       
|                                                                                      | Other accrued liabilities                                                                            |                            |        | 399          |                 |   |         | 1,185   |       
|                                                                                      |                                                                                                      |                            |        |              |                 |  
|                                                                                      |                                                                                                      | Total current liabilities  |        |              | 11,770          |   |         |         | 10,853 | 
|Long-term debt                                                                        |                                                                                                      |                            | 11,093 |              |                 |   | 1,258   |        
|Deferred income taxes                                                                 |                                                                                                      |                            |       |              |                 |   | 9,587   |        
|Partners capital                                                                     |                                                                                                      |                            | 33,819 |              |                 |   |         |        
|                                                                                      |                                                                                                      |                            |        |              |                 |  
|Total liabilities and partners capital                                               |                                                                                                      | $                          | 56,682 |              |                 |   |        |        
|                                                                                      |                                                                                                      |                            |        |              |                 |  
|Stockholders Equity:                                                                 |                                                                                                      |                            |        |              |                 |   |         |        
|                                                                                      | Common stock, voting, par $.01 per share,
    70,000,000 shares authorized, 19,376,667 shares issued |                            |        |              |                 |   |         | 194     |       
|                                                                                      | Additional paid-in capital                                                                           |                            |        |              |                 |   |         | 91,944  |       
|                                                                                      | Retained deficit                                                                                     |                            |        |              |                 |   |         | (745    | )     
|                                                                                      |                                                                                                      |                            |        |              |                 |  
|                                                                                      |                                                                                                      | Total stockholders equity |        |              |                 |   |         |         | 91,393 | 
|                                                                                      |                                                                                                      |                            |        |              |                 |  
|Total liabilities and stockholders equity                                            |                                                                                                      |                            |        |              |                 | $ | 113,091 |        
|                                                                                      |                                                                                                      |                            |        |              |                 |  



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SUPERIOR WELL SERVICES, INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF INCOME


|                                                     |  |                          |        |      |                |   |        |                 |  |   |         |  
|---------------------------------------------------- |  | ------------------------ | ------ | ---- | -------------- | - | ------ | --------------- |  | - | ------- | -
|                                                     |  | Years Ended December 31, |       
|                                                     |  |                          |       
|                                                     |  |                          |        | 2005 |               
|                                                     |  | 2003                     |        |      | 2004           |   |        | (Superior Well  | 
|                                                     |  | (Partnerships)           |        |      | (Partnerships) |   |        | Services, Inc.) | 
|                                                     |  |                          |        |      |                |   |        |                 | 
|                                                     |  | (In thousands, except    |       
|                                                     |  | per share data)          |       
|Revenue                                              |  | $                        | 51,462 |      |                | $ | 76,041 |                 |  | $ | 131,733 |  
|Cost of revenue                                      |  |                          | 35,581 |      |                |   | 54,447 |                 |  |   | 90,258  |  
|                                                     |  |                          |        |      |                |   |        |                 | 
|Gross profit                                         |  |                          | 15,881 |      |                |   | 21,594 |                 |  |   | 41,475  |  
|Selling, general and administrative expenses         |  |                          | 7,609  |      |                |   | 11,339 |                 |  |   | 17,809  |  
|                                                     |  |                          |        |      |                |   |        |                 | 
|Operating income                                     |  |                          | 8,272  |      |                |   | 10,255 |                 |  |   | 23,666  |  
|Interest expense                                     |  |                          | (78    | )    |                |   | (310   | )               |  |   | (566    | )
|Other (expense) income                               |  |                          | 20     |      |                |   | (148   | )               |  |   | 193     |  
|                                                     |  |                          |        |      |                |   |        |                 | 
|Income before income taxes                           |  |                          | 8,214  |      |                |   | 9,797  |                 |  |   | 23,293  |  
|Income taxes                                         |  |                          |        |      |                |   |        |                 |  |   |         |  
|Current                                              |  |                          |        |      |                |   |        |                 |  |   | 4,542   |  
|Deferred                                             |  |                          |        |      |                |   |        |                 |  |   | 9,284   |  
|                                                     |  |                          |        |      |                |   |        |                 | 
|                                                     |  |                          |        |      |                |   |        |                 |  |   | 13,826  |  
|                                                     |  |                          |        |      |                |   |        |                 | 
|Net income                                           |  | $                        | 8,214  |      |                | $ | 9,797  |                 |  | $ | 9,467   |  
|                                                     |  |                          |        |      |                |   |        |                 | 
|Pro forma data (unaudited):                          |  |                          |        |      |                |   |        |                 |  |   |         |  
|Historical income before taxes                       |  | $                        | 8,214  |      |                | $ | 9,797  |                 |  |   |         |  
|Pro forma income tax expense                         |  |                          | 3,528  |      |                |   | 4,249  |                 |  |   |         |  
|                                                     |  |                          |        |      |                |   |        |                 | 
|Net income adjusted for pro forma income tax expense |  | $                        | 4,686  |      |                | $ | 5,548  |                 |  |   |         |  
|                                                     |  |                          |        |      |                |   |        |                 | 
|Earnings per common share:                           |  |                          |        |      |                |   |        |                 |  |   |         |  
|Basic and fully diluted                              |  |                          |        |      |                |   |        |                 |  | $ | 0.49    |  
|                                                     |  |                          |        |      |                |   |        |                 | 
|Pro forma basic and fully diluted (unaudited)        |  | $                        | 0.24   |      |                | $ | 0.29   |                 |  |   |         |  
|                                                     |  |                          |        |      |                |   |        |                 | 



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SUPERIOR WELL SERVICES, INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL AND
STOCKHOLDERS EQUITY


|                                                                                                          |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   |         |       | 
|--------------------------------------------------------------------------------------------------------- | -------------------------- | -------------- | ------- | ----------- | ---------------------------- | - | --- | ----------- |  | - | ---------- | - |  | ------- | --- |  | -------- | - | ------ | ----- |  | - | ---- | - |  | - | ------- | ----- | 
|                                                                                                          |                            | Partnerships   |         |             | Superior Well Services, Inc. |  
|                                                                                                          |                            |                |         |             |                              |  
|                                                                                                          |                            |                |         | Accumulated |                              |   |     |             |  |   | Additional |   |  |        
|                                                                                                          |                            | Partners      |         |             | Comprehensive                |   |     | Less: Notes |  |   | Common     |   |  | Paid-in |     |  | Retained |   |        |      
|                                                                                                          |                            | Capital        |         |             | Income (Loss)                |   |     | Receivable  |  |   | Stock      |   |  | Capital |     |  | Deficit  |   |        | Total | 
|                                                                                                          |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       | 
|                                                                                                          |                            | (In thousands) |        
|BALANCE, DECEMBER 31, 2002                                                                                |                            | $              | 18,924  |             |                              | $ |    |             |  | $ | (87        | ) |  | $       |    |  |          | $ |       |       |  | $ |     |   |  | $ | 18,837  |      
|Net income prior to reorganization                                                                        |                            |                | 8,214   |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   | 8,214   |      
|Unrealized losses on interest rate swaps                                                                  |                            |                |         |             |                              |   | (56 | )           |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   | (56     | )    
|                                                                                                          |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       | 
|                                                                                                          | Total comprehensive income |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   |         | 8,158 | 
|                                                                                                          |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       | 
|Contributions                                                                                             |                            |                | 5,600   |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   | 5,600   |      
|Distributions to partners                                                                                 |                            |                | (2,492  | )           |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   | (2,492  | )    
|Collection of notes receivable                                                                            |                            |                |         |             |                              |   |     |             |  |   | 9          |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   | 9       |      
|                                                                                                          |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       | 
|BALANCE, DECEMBER 31, 2003                                                                                |                            |                | 30,246  |             |                              |   | (56 | )           |  |   | (78        | ) |  |         |    |  |          |   |       |       |  |   |     |   |  |   | 30,112  |      
|Net income prior to reorganization                                                                        |                            |                | 9,797   |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   | 9,797   |      
|Unrealized losses on interest rate swaps                                                                  |                            |                |         |             |                              |   | 58  |             |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   | 58      |      
|                                                                                                          |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       | 
|                                                                                                          | Total comprehensive income |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   |         | 9,855 | 
|                                                                                                          |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       | 
|Distributions to partners                                                                                 |                            |                | (6,158  | )           |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   | (6,158  | )    
|Collection of notes receivable                                                                            |                            |                |         |             |                              |   |     |             |  |   | 10         |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   | 10      |      
|                                                                                                          |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       | 
|BALANCE, DECEMBER 31, 2004                                                                                |                            |                | 33,885  |             |                              |   | 2   |             |  |   | (68        | ) |  |         |    |  |          |   |       |       |  |   |     |   |  |   | 33,819  |      
|Net income prior to reorganization                                                                        |                            |                | 10,212  |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   | 10,212  |      
|Net (loss) after reorganization                                                                           |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       |  |   | (745 | ) |  |   | (745    | )    
|                                                                                                          |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       | 
|                                                                                                          | Net income for 2005        |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   |         | 9,467 | 
|Other                                                                                                     |                            |                |         |             |                              |   | (2  | )           |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   | (2      | )    
|                                                                                                          |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       | 
|                                                                                                          | Total comprehensive income |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   |         | 9,465 | 
|                                                                                                          |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       | 
|Distributions to partners                                                                                 |                            |                | (13,719 | )           |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   | (13,719 | )    
|Collection of notes receivable                                                                            |                            |                |         |             |                              |   |     |             |  |   | 68         |   |  |         |     |  |          |   |        |       |  |   |      |   |  |   | 68      |      
|Reorganization effected through contribution of partnership
    interests to Superior Well Services, Inc. |                            |                | (30,378 | )           |                              |   |     |             |  |   |            |   |  |         | 141 |  |          |   | 30,237 |       |  |   |      |   |  |   |        |      
|Issuance of common stock in connection with initial public
    offering                                   |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         | 53  |  |          |   | 61,707 |       |  |   |      |   |  |   | 61,760  |      
|                                                                                                          |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       | 
|BALANCE, DECEMBER 31, 2005                                                                                |                            | $              |        |             |                              | $ |    |             |  | $ |           |   |  | $       | 194 |  |          | $ | 91,944 |       |  | $ | (745 | ) |  | $ | 91,393  |      
|                                                                                                          |                            |                |         |             |                              |   |     |             |  |   |            |   |  |         |     |  |          |   |        |       | 



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SUPERIOR WELL SERVICES, INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                            |                                               |                                           |                                 |        |                |       |       |                 |         |        |        |         |         |        | 
|--------------------------------------------------------------------------- | --------------------------------------------- | ----------------------------------------- | ------------------------------- | ------ | -------------- | ----- | ----- | --------------- | ------- | ------ | ------ | ------- | ------- | ------ | 
|                                                                            |                                               | Year Ended December 31,                   |                                
|                                                                            |                                               |                                           |                                
|                                                                            |                                               |                                           |                                 | 2005   |               
|                                                                            |                                               | 2003                                      |                                 |        | 2004           |       |       | (Superior Well  |        
|                                                                            |                                               | (Partnerships)                            |                                 |        | (Partnerships) |       |       | Services, Inc.) |        
|                                                                            |                                               |                                           |                                 |        |                |       |       |                 |        
|                                                                            |                                               | (In thousands)                            |                                
|Cash flows from operations:                                                 |                                               |                                           |                                 |        |                |       |       |                 |         |        |        |        
|                                                                            | Net income                                    |                                           | $                               | 8,214  |                |       | $     | 9,797           |         |        | $      | 9,467   |        
|Adjustments to reconcile net income to net cash provided by
    operations: |                                               |                                           |                                 |        |                |       |       |                 |         |        |        |        
|                                                                            |                                               | Deferred income taxes                     |                                 |        |               |       |       |                 |        |        |        |         | 9,284   |       
|                                                                            |                                               | Depreciation and amortization             |                                 |        | 3,465          |       |       |                 | 5,057   |        |        |         | 8,698   |       
|                                                                            |                                               | Loss on disposal of equipment             |                                 |        | 31             |       |       |                 | 185     |        |        |         | 280     |       
|                                                                            |                                               | Changes in assets and liabilities:        |                                 |        |                |       |       |                 |         |        |        |         |         |       
|                                                                            |                                               | Trade accounts receivable                 |                                 |        | (2,131         | )     |       |                 | (4,273  | )      |        |         | (12,089 | )     
|                                                                            |                                               | Inventory                                 |                                 |        | (38            | )     |       |                 | (1,096  | )      |        |         | (1,926  | )     
|                                                                            |                                               | Prepaid expenses and other current assets |                                 |        | (493           | )     |       |                 | 438     |        |        |         | (821    | )     
|                                                                            |                                               | Accounts payable                          |                                 |        | (2,364         | )     |       |                 | 2,113   |        |        |         | 3,497   |       
|                                                                            |                                               | 401(k) plan contribution and withholding  |                                 |        | 118            |       |       |                 | 263     |        |        |         | 260     |       
|                                                                            |                                               | Accrued wages and health benefits         |                                 |        | (97            | )     |       |                 | 287     |        |        |         | 176     |       
|                                                                            |                                               | Other accrued liabilities                 |                                 |        | (13            | )     |       |                 | 128     |        |        |         | 786     |       
|                                                                            |                                               |                                           |                                 |        |                |       |       |                 |        
|                                                                            |                                               |                                           | Net cash provided by operations |        |                | 6,692 |       |                 |         | 12,899 |        |         |         | 17,612 | 
|Cash flows from investing:                                                  |                                               |                                           |                                 |        |                |       |       |                 |         |        |        |        
|                                                                            | Expenditure for property, plant and equipment |                                           |                                 | (9,150 | )              |       |       | (19,409         | )       |        |        | (40,790 | )      
|                                                                            | Expenditure for acquisition                   |                                           |                                 | (2,125 | )              |       |       |                |         |        |        |        |        
|                                                                            | Proceeds (expenditures) for other assets      |                                           |                                 |       |                |       |       |                |         |        |        | (239    | )      
|                                                                            | Notes receivable advances (repayments)        |                                           |                                 |       |                |       |       |                |         |        |        | 68      |        
|                                                                            | Proceeds from notes receivable                |                                           |                                 | 510    |                |       |       | 10              |         |        |        |        |        
|                                                                            |                                               |                                           |                                 |        |                |       |       |                 |        
|                                                                            |                                               | Net cash used in investing                |                                 |        | (10,765        | )     |       |                 | (19,399 | )      |        |         | (40,961 | )     
|Cash flows from financing:                                                  |                                               |                                           |                                 |        |                |       |       |                 |         |        |        |        
|                                                                            | Principal payments on long-term debt          |                                           |                                 | (178   | )              |       |       | (188            | )       |        |        | (12,236 | )      
|                                                                            | Proceeds from long-term borrowings            |                                           |                                 |       |                |       |       | 12,880          |         |        |        | 720     |        
|                                                                            | Proceeds from notes payable                   |                                           |                                 | 1,897  |                |       |       | 217             |         |        |        | 10,511  |        
|                                                                            | Payments on notes payable                     |                                           |                                 |       |                |       |       |                |         |        |        | (14,466 | )      
|                                                                            | Net proceeds from initial public offering     |                                           |                                 |       |                |       |       |                |         |        |        | 61,760  |        
|                                                                            | Partners contributions                       |                                           |                                 | 5,600  |                |       |       |                |         |        |        |        |        
|                                                                            | Distributions to partners                     |                                           |                                 | (2,492 | )              |       |       | (6,158          | )       |        |        | (13,719 | )      
|                                                                            |                                               |                                           |                                 |        |                |       |       |                 |        
|                                                                            |                                               | Net cash provided by financing            |                                 |        | 4,827          |       |       |                 | 6,751   |        |        |         | 32,570  |       
|                                                                            |                                               |                                           |                                 |        |                |       |       |                 |        
|Net increase in cash and cash equivalents                                   |                                               |                                           | 755                             |        |                |       | 251   |                 |         |        | 9,221  |        
|Cash and cash equivalents, beginning of period                              |                                               |                                           | 538                             |        |                |       | 1,293 |                 |         |        | 1,544  |        
|                                                                            |                                               |                                           |                                 |        |                |       |       |                 |        
|Cash and cash equivalents, end of period                                    |                                               | $                                         | 1,293                           |        |                | $     | 1,544 |                 |         | $      | 10,765 |        
|                                                                            |                                               |                                           |                                 |        |                |       |       |                 |        
|Supplemental disclosure of cash flow data:                                  |                                               |                                           |                                 |        |                |       |       |                 |         |        |        |        
|                                                                            | Interest paid                                 |                                           | $                               | 83     |                |       | $     | 310             |         |        | $      | 587     |        
|                                                                            | Income taxes paid                             |                                           |                                 |       |                |       |       |                |         |        | $      | 5,156   |        



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SUPERIOR WELL SERVICES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




|   |             
|-- | ------------
|1. | Organization











|   |                                           
|-- | ------------------------------------------
|2. | Summary of Significant Accounting Policies



| |                      
| | ---------------------
| | Basis of Presentation







| |                          
| | -------------------------
| | Estimates and Assumptions



41



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| |                          
| | -------------------------
| | Cash and Cash Equivalents





| |                          
| | -------------------------
| | Trade Accounts Receivable





| |                              
| | -----------------------------
| | Property, Plant and Equipment









| |                    
| | -------------------
| | Revenue Recognition





| |            
| | -----------
| | Inventories





| |                  
| | -----------------
| | Insurance Expense

out-of


42



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##### Table of Contents





| |             
| | ------------
| | Income Taxes

Accounting for Income
Taxes.




| |                              
| | -----------------------------
| | Interest Rate Risk Management





| |                                    
| | -----------------------------------
| | Fair Value of Financial Instruments









| |                  
| | -----------------
| | Intangible Assets





| |                             
| | ----------------------------
| | Concentration of Credit Risk





| |                                    
| | -----------------------------------
| | Weighted average shares outstanding



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| |                 
| | ----------------
| | Reclassification





| |                         
| | ------------------------
| | Recently Issued Guidance







|   |                                    
|-- | -----------------------------------
|3. | Notes Receivable  Limited Partners





|   |     
|-- | ----
|4. | Debt



44



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|                                                                                                                                                                                                                          |                                     |      |        |        |      |   |       |       | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------- | ---- | ------ | ------ | ---- | - | ----- | ----- | 
|                                                                                                                                                                                                                          |                                     | 2004 |        |        | 2005 |  
|                                                                                                                                                                                                                          |                                     |      |        |        |      |  
|Notes payable due through December 2010, collateralized by
    specific buildings and equipment                                                                                                                           |                                     | $    | 127    |        |      | $ | 292   |      
|Mortgage notes payable to a bank with interest at the
    banks prime lending rate minus 1%, payable in monthly
    installments of $7,111 plus interest through January 2019,
    collateralized by real property       |                                     |      | 826    |        |      |   | 1,145 |      
|Note payable to a bank with interest at LIBOR plus 1.2%, due in
    monthly installments of $142,857 plus interest and a balloon
    payment of $3.4 million due January 2010, collateralized by
    all of the equipment |                                     |      | 12,000 |        |      |   |      |      
|                                                                                                                                                                                                                          |                                     |      |        |        |      |  
|                                                                                                                                                                                                                          |                                     |      | 12,953 |        |      |   | 1,437 |      
|                                                                                                                                                                                                                          | Less  Payments due within one year |      |        | 1,860  |      |   |       | 179   | 
|                                                                                                                                                                                                                          |                                     |      |        |        |      |  
|                                                                                                                                                                                                                          | Total                               |      | $      | 11,093 |      |   | $     | 1,258 | 
|                                                                                                                                                                                                                          |                                     |      |        |        |      |  





|   |             
|-- | ------------
|5. | Note Payable





|   |             
|-- | ------------
|6. | Income taxes





45



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##### Table of Contents





|                                 |                 |                   |       |       |                    |   |        |       |       | 
|-------------------------------- | --------------- | ----------------- | ----- | ----- | ------------------ | - | ------ | ----- | ----- | 
|                                 |                 | As of the Date of |       |       | For the Year Ended |  
|                                 |                 | Reorganization    |       |       | December 31, 2005  |  
|                                 |                 |                   |       |       |                    |  
|Current:                         |                 |                   |       |       |                    |   |        |      
|                                 | State and local |                   |       |       |                    |   | $      | 852   |      
|                                 | U.S. federal    |                   |       |       |                    |   |        | 3,690 |      
|                                 |                 |                   |       |       |                    |  
|                                 |                 | Total current     |       |       |                    |   |        |       | 4,542 | 
|Deferred:                        |                 |                   |       |       |                    |   |        |      
|                                 | State and local |                   | $     | 1,421 |                    |   | $      | 1,667 |      
|                                 | U.S. federal    |                   |       | 7,156 |                    |   |        | 7,617 |      
|                                 |                 |                   |       |       |                    |  
|                                 |                 | Total deferred    |       |       | 8,577              |   |        |       | 9,284 | 
|                                 |                 |                   |       |       |                    |  
|Provision for income tax expense |                 | $                 | 8,577 |       |                    | $ | 13,826 |      
|                                 |                 |                   |       |       |                    |  



|                                                          |  |              |        |  
|--------------------------------------------------------- |  | ------------ | ------ | -
|                                                          |  | December 31, |       
|                                                          |  | 2005         |       
|                                                          |  |              |       
|Deferred tax assets:                                      |  |              |        |  
|Accrued expenses and other                                |  | $            | 252    |  
|Allowance for doubtful accounts receivable                |  |              | 51     |  
|                                                          |  |              |       
|Total deferred tax assets                                 |  |              | 303    |  
|                                                          |  |              |       
|Deferred tax liabilities:                                 |  |              |        |  
|Depreciation differences on property, plant and equipment |  |              | (9,587 | )
|                                                          |  |              |       
|Total deferred                                            |  |              | (9,587 | )
|                                                          |  |              |       
|Net deferred taxes                                        |  | $            | 9,284  |  
|                                                          |  |              |       



|                                                                                              |  |              |        |  
|--------------------------------------------------------------------------------------------- |  | ------------ | ------ | -
|                                                                                              |  | Year         |       
|                                                                                              |  | Ended        |       
|                                                                                              |  | December 31, |       
|                                                                                              |  | 2005         |       
|                                                                                              |  |              |       
|Income before income taxes                                                                    |  | $            | 23,293 |  
|Statutory U.S. income tax rate                                                                |  |              | 35     | %
|                                                                                              |  |              |       
|Tax expense using statutory U.S. income tax rate                                              |  | $            | 8,153  |  
|State income taxes less federal income tax benefit, related to
    post reorganization income |  |              | 621    |  
|Deferred income taxes established at date of reorganization                                   |  |              | 8,708  |  
|Tax effect of pre-tax income prior to reorganization not subject
    to income taxes          |  |              | (3,574 | )
|Other                                                                                         |  |              | (82    | )
|                                                                                              |  |              |       
|Income tax expense                                                                            |  | $            | 13,826 |  
|                                                                                              |  |              |       
|Effective income tax rate                                                                     |  |              | 59     | %
|                                                                                              |  |              |       

46



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|   |            
|-- | -----------
|7. | 401(k) Plan





|   |                           
|-- | --------------------------
|8. | Related-Party Transactions











|   |                              
|-- | -----------------------------
|9. | Commitments and Contingencies









47



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##### Table of Contents





|    |                     
|--- | --------------------
|10. | Stock Incentive Plan





|    |                 
|--- | ----------------
|11. | Subsequent event



|                     |  |                               |     |  
|-------------------- |  | ----------------------------- | --- | -
|                     |  | Percentage of Total Number of |    
|                     |  | Restricted Shares as to Which |    
|Number of Full Years |  | Forfeiture Restrictions Lapse |    
|                     |  |                               |    
|Less than 1 year     |  |                               | 0   | %
|1 year               |  |                               | 15  | %
|2 years              |  |                               | 30  | %
|3 years              |  |                               | 45  | %
|4 years              |  |                               | 60  | %
|5 years or more      |  |                               | 100 | %





48



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|    |                                            
|--- | -------------------------------------------
|12. | Quarterly Financial Information (Unaudited)



|                                             |                                                                  |                                        |        |        |         |   |        |         |   |   |         |   |  |   |        |   | 
|-------------------------------------------- | ---------------------------------------------------------------- | -------------------------------------- | ------ | ------ | ------- | - | ------ | ------- | - | - | ------- | - |  | - | ------ | - | 
|                                             |                                                                  | 2005(1)                                |       
|                                             |                                                                  |                                        |       
|                                             |                                                                  | First                                  |        |        | Second  |   |        | Third   |   |   | Fourth  |  
|                                             |                                                                  | Quarter                                |        |        | Quarter |   |        | Quarter |   |   | Quarter |  
|                                             |                                                                  |                                        |        |        |         |   |        |         |   |   |         |  
|                                             |                                                                  | (In thousands, except income per share |       
|                                             |                                                                  | information)                           |       
|Revenue                                      |                                                                  | $                                      | 26,025 |        |         | $ | 29,585 |         |   | $ | 34,934  |   |  | $ | 41,189 |  
|Cost of revenue                              |                                                                  |                                        | 17,380 |        |         |   | 21,404 |         |   |   | 24,051  |   |  |   | 27,423 |  
|                                             |                                                                  |                                        |        |        |         |   |        |         |   |   |         |  
|Gross profit                                 |                                                                  |                                        | 8,645  |        |         |   | 8,181  |         |   |   | 10,883  |   |  |   | 13,766 |  
|Selling, general and administrative expenses |                                                                  |                                        | 3,281  |        |         |   | 3,585  |         |   |   | 4,743   |   |  |   | 6,200  |  
|                                             |                                                                  |                                        |        |        |         |   |        |         |   |   |         |  
|Operating income                             |                                                                  |                                        | 5,364  |        |         |   | 4,596  |         |   |   | 6,140   |   |  |   | 7,566  |  
|Interest expense                             |                                                                  |                                        | (159   | )      |         |   | (224   | )       |   |   | (169    | ) |  |   | (14    | )
|Other (expense) income                       |                                                                  |                                        | 10     |        |         |   | 29     |         |   |   | 246     |   |  |   | (92    | )
|Income tax expense                           |                                                                  |                                        |       |        |         |   |       |         |   |   | (10,860 | ) |  |   | (2,966 | )
|                                             |                                                                  |                                        |        |        |         |   |        |         |   |   |         |  
|Net income                                   |                                                                  | $                                      | 5,215  |        |         | $ | 4,401  |         |   | $ | (4,643  | ) |  | $ | 4,494  |  
|                                             |                                                                  |                                        |        |        |         |   |        |         |   |   |         |  
|                                             | Pro Forma income tax expense (unaudited)                         |                                        |        | (2,262 | )       |   |        | (1,804  | ) |   |         |   |  |   |        |   | 
|                                             |                                                                  |                                        |        |        |         |   |        |         |   |   |         |  
|                                             | Net income adjusted for pro forma income tax expense (unaudited) |                                        | $      | 2,953  |         |   | $      | 2,597   |   |   |         |   |  |   |        |   | 
|                                             |                                                                  |                                        |        |        |         |   |        |         |   |   |         |  
|Net income per common share(2)               |                                                                  | $                                      | 0.15   |        |         | $ | 0.13   |         |   | $ | (0.24   | ) |  | $ | 0.23   |  
|Basic                                        |                                                                  | $                                      | 0.15   |        |         | $ | 0.13   |         |   | $ | (0.24   | ) |  | $ | 0.23   |  
|Diluted                                      |                                                                  |                                        |        |        |         |   |        |         |   |   |         |   |  |   |        |  
|Average Shares Outstanding                   |                                                                  |                                        |        |        |         |   |        |         |   |   |         |   |  |   |        |  
|Basic                                        |                                                                  |                                        | 19,377 |        |         |   | 19,377 |         |   |   | 19,232  |   |  |   | 19,377 |  
|Diluted                                      |                                                                  |                                        | 19,377 |        |         |   | 19,377 |         |   |   | 19,232  |   |  |   | 19,377 |  

49



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|                                             |                                                                  |                                        |        |       |         |   |        |         |   |   |         |        |   |   |        |        |  
|-------------------------------------------- | ---------------------------------------------------------------- | -------------------------------------- | ------ | ----- | ------- | - | ------ | ------- | - | - | ------- | ------ | - | - | ------ | ------ | -
|                                             |                                                                  | 2004(1)                                |       
|                                             |                                                                  |                                        |       
|                                             |                                                                  | First                                  |        |       | Second  |   |        | Third   |   |   | Fourth  |       
|                                             |                                                                  | Quarter                                |        |       | Quarter |   |        | Quarter |   |   | Quarter |       
|                                             |                                                                  |                                        |        |       |         |   |        |         |   |   |         |       
|                                             |                                                                  | (In thousands, except income per share |       
|                                             |                                                                  | information)                           |       
|Revenue                                      |                                                                  | $                                      | 15,665 |       |         | $ | 16,877 |         |   | $ | 20,738  |        |   | $ | 22,761 |       
|Cost of revenue                              |                                                                  |                                        | 11,467 |       |         |   | 11,765 |         |   |   | 14,678  |        |   |   | 16,537 |       
|                                             |                                                                  |                                        |        |       |         |   |        |         |   |   |         |       
|Gross profit                                 |                                                                  |                                        | 4,198  |       |         |   | 5,112  |         |   |   | 6,060   |        |   |   | 6,224  |       
|Selling, general and administrative expenses |                                                                  |                                        | 2,368  |       |         |   | 2,299  |         |   |   | 3,040   |        |   |   | 3,632  |       
|                                             |                                                                  |                                        |        |       |         |   |        |         |   |   |         |       
|Operating income                             |                                                                  |                                        | 1,830  |       |         |   | 2,813  |         |   |   | 3,020   |        |   |   | 2,592  |       
|Interest expense                             |                                                                  |                                        | (31    | )     |         |   | (72    | )       |   |   | (68     | )      |   |   | (139   | )     
|Other (expense) income                       |                                                                  |                                        | 11     |       |         |   | (141   | )       |   |   | 9       |        |   |   | (27    | )     
|Income tax expense                           |                                                                  |                                        |       |       |         |   |       |         |   |   |        |        |   |   |       |       
|                                             |                                                                  |                                        |        |       |         |   |        |         |   |   |         |       
|Net income                                   |                                                                  | $                                      | 1,810  |       |         | $ | 2,600  |         |   | $ | 2,961   |        |   | $ | 2,426  |       
|                                             |                                                                  |                                        |        |       |         |   |        |         |   |   |         |       
|                                             | Pro Forma income tax expense                                     |                                        |        | (785  | )       |   |        | (1,128  | ) |   |         | (1,109 | ) |   |        | (1,227 | )
|                                             |                                                                  |                                        |        |       |         |   |        |         |   |   |         |       
|                                             | Net income adjusted for pro forma income tax expense (unaudited) |                                        | $      | 1,025 |         |   | $      | 1,472   |   |   | $       | 1,852  |   |   | $      | 1,199  |  
|                                             |                                                                  |                                        |        |       |         |   |        |         |   |   |         |       
|Net income per common share(2)               |                                                                  |                                        |        |       |         |   |        |         |   |   |         |        |   |   |        |       
|Basic                                        |                                                                  | $                                      | 0.05   |       |         | $ | 0.08   |         |   | $ | 0.10    |        |   | $ | 0.06   |       
|Diluted                                      |                                                                  | $                                      | 0.05   |       |         | $ | 0.08   |         |   | $ | 0.10    |        |   | $ | 0.06   |       
|Average Shares Outstanding                   |                                                                  |                                        |        |       |         |   |        |         |   |   |         |        |   |   |        |       
|Basic                                        |                                                                  |                                        | 19,377 |       |         |   | 19,377 |         |   |   | 19,377  |        |   |   | 19,377 |       
|Diluted                                      |                                                                  |                                        | 19,377 |       |         |   | 19,377 |         |   |   | 19,377  |        |   |   | 19,377 |       






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | All quarters reflect reclassification of certain repair and
    vehicle expenses associated with our shop operations, uniform
    cleaning expenses and maintenance expenses from Selling,
    general and administrative expenses into Cost of
    revenue in order to better segregate the expense items
    between those more closely related to serving our customers
    versus those expenses, which in nature are not directly related
    to servicing customers. The reclassifications had no impact on
    operating income for any of the periods presented.
|   
|(2) | Share and per share data have been retroactively restated to
    reflect our holding company restructuring. For the calculations
    of earnings per share for 2004 and the first and second quarters
    of 2005, all shares are assumed to have been issued at the
    beginning of the period resulting in 19,376,667 average shares
    outstanding.                                                                                                                                                                                                                    






|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements With Accountants on
    Accounting and Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

13a-15(b), 13a-15(e) 15d-15(e)


50



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##### Table of Contents








PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant








|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation








|         |                                                                   
|-------- | ------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management








|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions








|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accounting Fees and Services



51



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##### Table of Contents






PART IV







|         |                                            
|-------- | -------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules.





|                                                                                                                     |  |      |       | 
|-------------------------------------------------------------------------------------------------------------------- |  | ---- | ----- | 
|                                                                                                                     |  | Page
|                                                                                                                     |  |     
|Report of Independent Registered Public Accounting Firm                                                              |  |      | 36    | 
|Consolidated Balance Sheets                                                                                          |  |      | 37    | 
|Consolidated Statements of Income                                                                                    |  |      | 38    | 
|Consolidated Statements of Changes in Capital and
    Stockholders Equity                                           |  |      | 39    | 
|Consolidated Statements of Cash Flows                                                                                |  |      | 40    | 
|Notes to Consolidated Financial Statements                                                                           |  |      | 41-50 | 
|Consolidated Quarterly Financial Information (included in
    Note 12 of Notes to Consolidated Financial Statements) |  |      | 49    | 



|                                                |  |      |    | 
|----------------------------------------------- |  | ---- | -- | 
|                                                |  | Page
|                                                |  |     
|Schedule II  Valuation and Qualifying Accounts |  |      | 57 | 





| |    |     |  |                                                                                                                                                                                                                                    
| | -- | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 3  | .1  |  | Amended and Restated Certificate of Incorporation (incorporated
    by reference to Exhibit 3.1 to Form 8-K filed on
    August 3, 2005).                                                                                          
|
| | 3  | .2  |  | Amended and Restated Bylaws (incorporated by reference to
    Exhibit 3.2 to Form 8-K filed on August 3, 2005).                                                                                                                    
|
| | 4  | .1  |  | Specimen Stock Certificate representing our common stock
    (incorporated by reference to Exhibit 4.1 to Registration
    Statement on Form S-1/A (Registration No. 333-124674)
    filed on June 24, 2005).                      
|
| | 10 | .1* |  | Registration Rights Agreement dated as of July 28, 2005 by
    and among the Company and the stockholders signatory thereto
    (incorporated by reference to Exhibit 10.1 to Form 8-K
    filed on August 3, 2005).               
|
| | 10 | .2* |  | 2005 Stock Incentive Plan (incorporated by reference to
    Exhibit 10.1 to Form 10-Q filed on September 1,
    2005).                                                                                                             
|
| | 10 | .3* |  | Form of Restricted Stock Agreement for Employees without
    Employment Agreements (filed as Exhibit 4.1 to the
    Companys Registration Statement on Form S-8
    (Registration No. 333-130615) filed on December 22,
    2005).
|
| | 10 | .4* |  | Form of Restricted Stock Agreement for Executives with
    Employment Agreements (filed as Exhibit 4.2 to the
    Companys Registration Statement on Form S-8
    (Registration No. 333-130615) filed on December 22,
    2005).  
|
| | 10 | .5* |  | Form of Restricted Stock Agreement for Non-Employee Directors
    (filed as Exhibit 4.3 to the Companys Registration
    Statement on Form S-8 (Registration No. 333-130615)
    filed on December 22, 2005).                     
|
| | 10 | .6* |  | Employment Agreement between David E. Wallace and Superior
    Well Services, Inc., dated August 3, 2005 (incorporated by
    reference to Exhibit 10.2 to Form 8-K filed on
    August 3, 2005).                                  
|
| | 10 | .7* |  | Employment Agreement between Jacob B. Linaberger and
    Superior Well Services, Inc., dated August 3, 2005
    (incorporated by reference to Exhibit 10.3 to Form 8-K
    filed on August 3, 2005).                               
|
| | 10 | .8* |  | Employment Agreement between Thomas W. Stoelk and Superior
    Well Services, Inc., effective as of June 1, 2005
    (incorporated by reference to Exhibit 10.4 to Form 8-K
    filed on August 3, 2005).                          

52



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| |    |      |  |                                                                                                                                                                                                                                                                                                 
| | -- | ---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 10 | .9*  |  | Employment Agreement between Rhys R. Reese and Superior
    Well Services, Inc., dated August 3, 2005 (incorporated by
    reference to Exhibit 10.5 to Form 8-K filed on
    August 3, 2005).                                                                                                  
|
| | 10 | .10* |  | Employment Agreement between Fred E. Kistner and Superior
    Well Services, Inc., dated August 3, 2005 (incorporated by
    reference to Exhibit 10.6 to Form 8-K filed on
    August 3, 2005).                                                                                                
|
| | 10 | .11* |  | Indemnification Agreement between David E. Wallace and
    Superior Well Services, Inc., dated August 3, 2005
    (incorporated by reference to Exhibit 10.7 to Form 8-K
    filed on August 3, 2005).                                                                                          
|
| | 10 | .12* |  | Indemnification Agreement between Jacob B. Linaberger and
    Superior Well Services, Inc., dated August 3, 2005
    (incorporated by reference to Exhibit 10.8 to Form 8-K
    filed on August 3, 2005).                                                                                       
|
| | 10 | .13* |  | Indemnification Agreement between Thomas W. Stoelk and
    Superior Well Services, Inc., dated August 3, 2005
    (incorporated by reference to Exhibit 10.9 to Form 8-K
    filed on August 3, 2005).                                                                                          
|
| | 10 | .14* |  | Indemnification Agreement between Rhys R. Reese and
    Superior Well Services, Inc., dated August 3, 2005
    (incorporated by reference to Exhibit 10.10 to
    Form 8-K filed on August 3, 2005).                                                                                            
|
| | 10 | .15* |  | Indemnification Agreement between Fred E. Kistner and
    Superior Well Services, Inc., dated August 3, 2005
    (incorporated by reference to Exhibit 10.11 to
    Form 8-K filed on August 3, 2005).                                                                                          
|
| | 10 | .16* |  | Indemnification Agreement between Mark A. Snyder and
    Superior Well Services, Inc., dated August 3, 2005
    (incorporated by reference to Exhibit 10.12 to
    Form 8-K filed on August 3, 2005).                                                                                           
|
| | 10 | .17* |  | Indemnification Agreement between David E. Snyder and
    Superior Well Services, Inc., dated August 3, 2005
    (incorporated by reference to Exhibit 10.13 to
    Form 8-K filed on August 3, 2005).                                                                                          
|
| | 10 | .18* |  | Indemnification Agreement between Charles C. Neal and Superior
    Well Services, Inc., dated August 3, 2005 (incorporated by
    reference to Exhibit 10.14 to Form 8-K filed on
    August 3, 2005).                                                                                          
|
| | 10 | .19* |  | Indemnification Agreement between John A. Staley, IV and
    Superior Well Services, Inc., dated August 3, 2005
    (incorporated by reference to Exhibit 10.15 to
    Form 8-K filed on August 3, 2005).                                                                                       
|
| | 10 | .20* |  | Indemnification Agreement between Anthony J. Mendicino and
    Superior Well Services, Inc. dated August 30, 2005.                                                                                                                                                                              
|
| | 10 | .21  |  | Fifth Amended and Restated Promissory Note dated March 31,
    2005 (incorporated by reference to Exhibit 10.8 to
    Registration Statement on Form S-1/A (Registration
    No. 333-124674) filed on July 15, 2005).                                                                           
|
| | 10 | .22  |  | Credit Agreement dated June 3, 2004 by and between Bradford
    Resources, Ltd. and Citizens Bank of Pennsylvania (incorporated
    by reference to Exhibit 10.9 to Registration Statement on
    Form S-1/A (Registration No. 333-124674) filed on
    July 15, 2005).                         
|
| | 10 | .23  |  | Second Amendment to Credit Agreement dated January 31, 2005
    by and between Bradford Resources, Ltd. and Citizens Bank of
    Pennsylvania (incorporated by reference to Exhibit 10.10 to
    Registration Statement on Form S-1/A (Registration
    No. 333-124674) filed on July 15, 2005).
|
| | 10 | .24  |  | Second Amended and Restated Stand By Term Loan Note dated
    January 31, 2005 (incorporated by reference to
    Exhibit 10.11 to Registration Statement on Form S-1/A
    (Registration No. 333-124674) filed on July 15, 2005).                                                               
|
| | 10 | .25  |  | Guaranty and Suretyship Agreement dated June 3, 2005 by
    Superior Well Services, Ltd. (incorporated by reference to
    Exhibit 10.12 to Registration Statement on Form S-1/A
    (Registration No. 333-124674) filed on July 15, 2005).                                                     
|
| | 10 | .26  |  | Guaranty and Suretyship Agreement dated June 3, 2005 by
    Allegheny Mineral Corporation (incorporated by reference to
    Exhibit 10.13 to Registration Statement on Form S-1/A
    (Registration No. 333-124674) filed on July 15, 2005).                                                    
|
| | 10 | .27  |  | Guaranty and Suretyship Agreement dated June 3, 2005 by
    Armstrong Cement & Supply Corporation (incorporated by
    reference to Exhibit 10.14 to Registration Statement on
    Form S-1/A (Registration No. 333-124674) filed on
    July 15, 2005).                                        
|
| | 10 | .28  |  | Guaranty and Suretyship Agreement dated June 3, 2005 by
    Glacial Sand & Gravel Company (incorporated by
    reference to Exhibit 10.15 to Registration Statement on
    Form S-1/A (Registration No. 333-124674) filed on
    July 15, 2005).                                                
|
| | 10 | .29  |  | Guaranty and Suretyship Agreement dated August 22, 1997 by
    Allegheny Mineral Corporation (incorporated by reference to
    Exhibit 10.16 to Registration Statement on Form S-1/A
    (Registration No. 333-124674) filed on July 15, 2005).                                                 

53



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| |    |      |  |                                                                                                                                                                                                                                                                                    
| | -- | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 10 | .30  |  | Credit Agreement, dated as of October 18, 2005, among
    Superior Well Services, Inc., Superior Well Services, Ltd., and
    Bradford Resources, Ltd. and Citizens Bank of Pennsylvania
    (incorporated by reference to Exhibit 10.1 to Form 8-K
    filed on October 24, 2005).
|
| | 21 | .1** |  | Subsidiaries of the Registrant
    Superior GP, L.L.C.-organized in the State of Delaware
    Superior Well Services, Ltd.-organized in the State of
    Pennsylvania
    Bradford Resources, Ltd.-organized in the State of Pennsylvania                                          
|
| | 23 | .1** |  | Consent of Schneider Downs & Co., Inc.                                                                                                                                                                                                                                             
|
| | 24 | .1** |  | Power of Attorney (included on signature page hereto)                                                                                                                                                                                                                              
|
| | 31 | .1** |  | Sarbanes-Oxley Section 302 certification of David E.
    Wallace for Superior Well Services, Inc. for the
    December 31, 2005 Annual Report on Form 10-K.                                                                                                                        
|
| | 31 | .2** |  | Sarbanes-Oxley Section 302 certification of Thomas W.
    Stoelk for Superior Well Services, Inc. for the
    December 31, 2005 Annual Report on Form 10-K.                                                                                                                        
|
| | 32 | .1** |  | Sarbanes-Oxley Section 906 certification of David E.
    Wallace for Superior Well Services, Inc. for the
    December 31, 2005 Annual Report on Form 10-K.                                                                                                                        
|
| | 32 | .2** |  | Sarbanes-Oxley Section 906 certification of Thomas W.
    Stoelk for Superior Well Services, Inc. for the
    December 31, 2005 Annual Report on Form 10-K.                                                                                                                        






|   |                                                         
|-- | --------------------------------------------------------
|*  | Management contract or compensatory plan or arrangement.
|** | Filed herewith.                                         

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##### Table of Contents



SIGNATURES


th




| |                             
| | ----------------------------
| | SUPERIOR WELL SERVICES, INC.



| |     |                     
| | --- | --------------------
| | By: | /s/ Thomas W. Stoelk

| |                                           
| | ------------------------------------------
| |                                           
| | Thomas W. Stoelk                          
| | Vice President and Chief Financial Officer
| | (principal financial officer)             





|                                           |  |                                                                                     |  |               |  | 
|------------------------------------------ |  | ----------------------------------------------------------------------------------- |  | ------------- |  | 
|Signature                                  |  | Title/Capacity                                                                      |  | Date         
|                                           |  |                                                                                     |  |              
|                                          
|/s/ David E. WallaceDavid E. Wallace       |  | Chief Executive Officer and Chairman of the Board (principal
    executive officer) |  | March 7, 2006
|                                          
|/s/ Jacob B. LinabergerJacob B. Linaberger |  | President                                                                           |  | March 7, 2006
|                                          
|/s/ Thomas W. StoelkThomas W. Stoelk       |  | Vice President & Chief Financial Officer (principal
    financial officer)          |  | March 7, 2006
|                                          
|/s/ Rhys R. ReeseRhys R. Reese             |  | Executive Vice President, Chief Operating Officer &
    Secretary                   |  | March 7, 2006
|                                          
|/s/ Fred E. KistnerFred E. Kistner         |  | Vice President and Controller (principal accounting officer)                        |  | March 7, 2006
|                                          
|/s/ David E. SnyderDavid E. Snyder         |  | Director                                                                            |  | March 7, 2006
|                                          
|/s/ Mark A. SnyderMark A. Snyder           |  | Director                                                                            |  | March 7, 2006
|                                          
|/s/ Charles C. NealCharles C. Neal         |  | Director                                                                            |  | March 7, 2006

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##### Table of Contents



|                                             |  |                |  |               |  | 
|-------------------------------------------- |  | -------------- |  | ------------- |  | 
|Signature                                    |  | Title/Capacity |  | Date         
|                                             |  |                |  |              
|                                            
|/s/ John A. Staley, IVJohn A. Staley, IV     |  | Director       |  | March 7, 2006
|                                            
|/s/ Anthony J. MendicinoAnthony J. Mendicino |  | Director       |  | March 7, 2006

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##### Table of Contents



Schedule II.


Valuation and Qualifying Accounts


|                                                       |  |            |   |                      |  |  |            |  |                |           |        |  |  |   |         | 
|------------------------------------------------------ |  | ---------- | - | -------------------- |  |  | ---------- |  | -------------- | --------- | ------ |  |  | - | ------- | 
|Col. A                                                 |  | Col. B     |   | Col. C               |  |  | Col. D     |  |                | Col. E    |       
|                                                       |  |            |   |                      |  |  |            |  |                |           |       
|                                                       |  | Balance at |   |                      |  |  |            | 
|                                                       |  | Beginning  |   | Additions Charged to |  |  |            |  | Balance at End |          
|Description                                            |  | of Period  |   | Costs and Expenses   |  |  | Deductions |  |                | of Period |       
|                                                       |  |            |   |                      |  |  |            |  |                |           |       
|2003  Allowance for uncollectible accounts receivable |  | $          |  |                      |  |  | 79,300     |  |                |           | 79,300 |  |  | $ |        | 
|2004  Allowance for uncollectible accounts receivable |  | $          |  |                      |  |  | 5,300      |  |                |           | 5,300  |  |  | $ |        | 
|2005  Allowance for uncollectible accounts receivable |  | $          |  |                      |  |  | 144,200    |  |                |           | 10,200 |  |  | $ | 134,000 | 

57