----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

|   | For the Quarterly Period Ended March 31, 2011 |
|--------|-----------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

|   | For the transition period from            to |
|--------|----------------------------------------------------------------------------------------------------------|

|                                                          |                                |
|---------------------------------------------------------------|-------------------------------------|
| Alberta                                                       | 76-0419312                          |
| (State or Other Jurisdiction ofIncorporation or Organization) | (I.R.S. EmployerIdentification No.) |
|                                                          |                                |
| 3993 West Sam Houston Parkway NorthSuite 100Houston, Texas    | 77043-1221                          |
| (Address of Principal Executive Offices)                      | (Zip Code)                          |

----

| Large Accelerated Filer    ̈ | Accelerated Filer   x | Non-Accelerated Filer    ̈ | Smaller Reporting Company    ̈ |
|-------------------------------------------------|--------------------------------------|-----------------------------------------------|---------------------------------------------------|

----

TABLE OF CONTENTS

|                               |                                                                                        |    |
|------------------------------------|---------------------------------------------------------------------------------------------|---------|
|                               |                                                                                        | Page    |
| PART I—FINANCIAL INFORMATION |
|                               |                                                                                        |    |
|    Item 1.          | Financial Statements                                                                        |  1 |
|    Item 2.          | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 11      |
|    Item 3.          | Quantitative and Qualitative Disclosures About Market Risk                                  | 18      |
|    Item 4.          | Controls and Procedures                                                                     | 19      |
|                               |
| PART II—OTHER INFORMATION    |
|                               |                                                                                        |    |
|    Item 1.          | Legal Proceedings                                                                           | 20      |
|    Item 1A.         | Risk Factors                                                                                | 20      |
|    Item 6.          | Exhibits                                                                                    | 20      |

| TESCO CASING DRILLING®                        |   | = CASING DRILLING       |
|----------------------------------------------------|--------|-------------------------|
| TESCO’s Casing Drive System                  |   | = CDSTM or CDS     |
| TESCO’s Multiple Control Line Running System |   | = MCLRSTM or MCLRS |

| Trademark                                   |   | Country of Registration |
|---------------------------------------------|--------|-------------------------|
| TESCO®                                 |   | United States, Canada   |
| TESCO CASING DRILLING®                 |   | United States           |
| CASING DRILLING®                       |   | Canada                  |
| CASING DRILLINGTM                      |   | United States           |
| Casing Drive SystemTM                  |   | United States, Canada   |
| CDSTM                                  |   | United States, Canada   |
| Multiple Control Line Running SystemTM |   | United States, Canada   |
| MCLRSTM                                |   | United States, Canada   |

----

----

Item 1. 

|                                                                                                                                                                             |   |      |           |         |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|----------------|--------------|--------|
|                                                                                                                                                                             |   | March 31, |           | December 31, |   |
|                                                                                                                                                                             |   | 2011      |           | 2010         |   |
|                                                                                                                                                                             |   |      |           |         |   |   |   |
| Assets                                                                                                                                                                           |   |      |           |         |   |   |   |
| Current assets                                                                                                                                                                   |   |      |           |         |   |   |   |
| Cash and cash equivalents                                                                                                                                                        |   | $         | 46,833         |         | $      | 60,603 |   |
| Accounts receivable trade, net of allowance for doubtful accounts of $1,133 and $865 as of March 31, 2011 and December 31, 2010, respectively                                    |   |      | 86,692         |         |   | 72,971 |   |
| Inventories, net                                                                                                                                                                 |   |      | 69,635         |         |   | 59,190 |   |
| Income taxes recoverable                                                                                                                                                         |   |      | 2,481          |         |   | 2,343 |   |
| Deferred income taxes                                                                                                                                                            |   |      | 5,351          |         |   | 8,110 |   |
| Prepaid and other assets                                                                                                                                                         |   |      | 24,894         |         |   | 22,768 |   |
|                                                                                                                                                                             |   |      |           |         |   |   |   |
| Total current assets                                                                                                                                                             |   |      | 235,886        |         |   | 225,985 |   |
| Property, plant and equipment, net                                                                                                                                               |   |      | 180,861        |         |   | 182,686 |   |
| Goodwill                                                                                                                                                                         |   |      | 29,394         |         |   | 29,394 |   |
| Deferred income taxes                                                                                                                                                            |   |      | 13,387         |         |   | 12,690 |   |
| Intangible and other assets, net                                                                                                                                                 |   |      | 3,813          |         |   | 4,153 |   |
|                                                                                                                                                                             |   |      |           |         |   |   |   |
| Total assets                                                                                                                                                                     |   | $         | 463,341        |         | $      | 454,908 |   |
|                                                                                                                                                                             |   |      |           |         |   |   |   |
| Liabilities and Shareholders’ Equity                                                                                                                                  |   |      |           |         |   |   |   |
| Current liabilities                                                                                                                                                              |   |      |           |         |   |   |   |
| Accounts payable                                                                                                                                                                 |   | $         | 27,063         |         | $      | 23,785 |   |
| Deferred revenues                                                                                                                                                                |   |      | 13,931         |         |   | 11,987 |   |
| Warranty reserves                                                                                                                                                                |   |      | 1,927          |         |   | 1,698 |   |
| Income taxes payable                                                                                                                                                             |   |      | 1,459          |         |   | 3,433 |   |
| Accrued and other current liabilities                                                                                                                                            |   |      | 32,233         |         |   | 32,289 |   |
|                                                                                                                                                                             |   |      |           |         |   |   |   |
| Total current liabilities                                                                                                                                                        |   |      | 76,613         |         |   | 73,192 |   |
| Other liabilities                                                                                                                                                                |   |      | 1,168          |         |   | 1,168 |   |
| Deferred income taxes                                                                                                                                                            |   |      | 3,359          |         |   | 4,879 |   |
|                                                                                                                                                                             |   |      |           |         |   |   |   |
| Total liabilities                                                                                                                                                                |   |      | 81,140         |         |   | 79,239 |   |
|                                                                                                                                                                             |   |      |           |         |   |   |   |
| Commitments and contingencies (Note 9)                                                                                                                                           |   |      | –– |         |   | –– |   |
|                                                                                                                                                                             |   |      |           |         |   |   |   |
| Shareholders’ equity                                                                                                                                                       |   |      |           |         |   |   |   |
| Common shares; no par value; unlimited shares authorized;  38,149 and  38,058 shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively |   |      | 197,953        |         |   | 196,431 |   |
| Retained earnings                                                                                                                                                                |   |      | 148,747        |         |   | 143,737 |   |
| Accumulated comprehensive income                                                                                                                                                 |   |      | 35,501         |         |   | 35,501 |   |
|                                                                                                                                                                             |   |      |           |         |   |   |   |
| Total shareholders’ equity                                                                                                                                                 |   |      | 382,201        |         |   | 375,669 |   |
|                                                                                                                                                                             |   |      |           |         |   |   |   |
| Total liabilities and shareholders’ equity                                                                                                                                 |   | $         | 463,341        |         | $      | 454,908 |   |

----

Table of Contents

|                                     |   |                                |           |   |   |
|------------------------------------------|--------|-------------------------------------|----------------|--------|--------|
|                                     |   |   Three Months Ended March 31, |
|                                     |   | 2011                                |           | 2010   |   |
| Revenue                                  |   |                                |           |   |   |
| Products                                 |   | $                                   | 37,193         |   | $      | 27,959 |   |
| Services                                 |   |                                | 68,429         |   |   | 58,137 |   |
|                                     |   |                                |           |   |   |   |   |
|                                     |   |                                | 105,622        |   |   | 86,096 |   |
| Operating expenses                       |   |                                |           |   |   |   |   |
| Cost of sales and services               |   |                                |           |   |   |   |   |
| Products                                 |   |                                | 25,059         |   |   | 21,601 |   |
| Services                                 |   |                                | 57,741         |   |   | 49,042 |   |
|                                     |   |                                |           |   |   |   |   |
|                                     |   |                                | 82,800         |   |   | 70,643 |   |
| Selling, general and administrative      |   |                                | 11,728         |   |   | 10,776 |   |
| Research and engineering                 |   |                                | 2,885          |   |   | 1,639 |   |
|                                     |   |                                |           |   |   |   |   |
| Total operating expenses                 |   |                                | 97,413         |   |   | 83,058 |   |
|                                     |   |                                |           |   |   |   |   |
| Operating income                         |   |                                | 8,209          |   |   | 3,038 |   |
|                                     |   |                                |           |   |   |   |   |
| Other expense (income)                   |   |                                |           |   |   |   |   |
| Interest expense                         |   |                                | 286            |   |   | 55 |   |
| Interest income                          |   |                                | –– |   |   | (22 | ) |
| Foreign exchange losses                  |   |                                | 186            |   |   | 120 |   |
| Other expense (income)                   |   |                                | 28             |   |   | (358 | ) |
|                                     |   |                                |           |   |   |   |   |
| Total other expense (income)             |   |                                | 500            |   |   | (205 | ) |
|                                     |   |                                |           |   |   |   |   |
| Income before income taxes               |   |                                | 7,709          |   |   | 3,243 |   |
| Income tax provision                     |   |                                | 2,699          |   |   | 1,038 |   |
|                                     |   |                                |           |   |   |   |   |
| Net income                               |   | $                                   | 5,010          |   | $      | 2,205 |   |
|                                     |   |                                |           |   |   |   |   |
|                                     |   |                                |           |   |   |   |   |
| Earnings per share:                      |   |                                |           |   |   |   |   |
| Basic                                    |   | $                                   | 0.13           |   | $      | 0.06 |   |
| Diluted                                  |   | $                                   | 0.13           |   | $      | 0.06 |   |
| Weighted average number of shares:  |   |                                |           |   |   |   |   |
| Basic                                    |   |                                | 38,076         |   |   | 37,759 |   |
| Diluted                                  |   |                                | 38,753         |   |   | 38,710 |   |

----

Table of Contents

|                                                                              |   |                         |           |   |   |   |
|-----------------------------------------------------------------------------------|--------|------------------------------|----------------|--------|--------|--------|
|                                                                              |   | Three Months Ended March 31, |           |
|                                                                              |   | 2011                         |           |   | 2010   |   |
| Operating Activities                                                              |   |                         |           |   |   |   |
| Net income                                                                        |   | $                            |  5,010    |   |   | $      | 2,205 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                         |           |   |   |   |   |   |
| Depreciation and amortization                                                     |   |                         | 9,267          |   |   |   | 8,779 |   |
| Stock compensation expense                                                        |   |                         | 2,477          |   |   |   | 1,524 |   |
| Bad debt expense (recovery)                                                       |   |                         | 250            |   |   |   | (562 | ) |
| Deferred income taxes                                                             |   |                         | 497            |   |   |   | (102 | ) |
| Amortization of deferred financing costs                                          |   |                         | 46             |   |   |   | 87 |   |
| Loss (gain) on sale of operating assets                                           |   |                         | (171           | )      |   |   | 79 |   |
| Changes in operating assets and liabilities:                                      |   |                         |           |   |   |   |   |   |
| Accounts receivable trade, net                                                    |   |                         | (13,971        | )      |   |   | (10,021 | ) |
| Inventories                                                                       |   |                         | (10,445        | )      |   |   | 3,481 |   |
| Prepaid and other current assets                                                  |   |                         | (2,126         | )      |   |   | (3,014 | ) |
| Accounts payable and accrued liabilities                                          |   |                         | 5,163          |   |   |   | 6,101 |   |
| Income taxes payable (recoverable)                                                |   |                         | (2,067         | )      |   |   | (1,217 | ) |
| Other noncurrent assets and liabilities, net                                      |   |                         | 36             |   |   |   | –– |   |
| Net cash provided by (used in) operating activities                               |   |                         | (6,034         | )      |   |   | 7,340 |   |
|                                                                              |   |                         |           |   |   |   |   |   |
| Investing Activities                                                              |   |                         |           |   |   |   |   |   |
| Additions to property, plant and equipment                                        |   |                         | (8,148         | )      |   |   | (2,540 | ) |
| Proceeds on sale of operating assets                                              |   |                         | 325            |   |   |   | 390 |   |
| Other, net                                                                        |   |                         | –– |   |   |   | (5 | ) |
| Net cash used in investing activities                                             |   |                         | (7,823         | )      |   |   | (2,155 | ) |
|                                                                              |   |                         |           |   |   |   |   |   |
| Financing Activities                                                              |   |                         |           |   |   |   |   |   |
| Repayments of debt                                                                |   |                         | –– |   |   |   | (8,600 | ) |
| Proceeds from exercise of stock options                                           |   |                         | 132            |   |   |   | 112 |   |
| Excess tax benefit associated with equity compensation                            |   |                         | (45            | )      |   |   | –– |   |
| Net cash provided by (used in) financing activities                               |   |                         | 87             |   |   |   | (8,488 | ) |
|                                                                              |   |                         |           |   |   |   |   |   |
| Change in cash and cash equivalents                                               |   |                         | (13,770        | )      |   |   | (3,303 | ) |
| Net cash and cash equivalents, beginning of period                                |   |                         | 60,603         |   |   |   | 39,930 |   |
| Net cash and cash equivalents, end of period                                      |   | $                            | 46,833         |   |   | $      | 36,627 |   |
|                                                                              |   |                         |           |   |   |   |   |   |
| Supplemental cash flow information                                                |   |                         |           |   |   |   |   |   |
| Cash payments for interest                                                        |   | $                            | 71             |   |   | $      | 82 |   |
| Cash payments for income taxes                                                    |   |                         | 4,784          |   |   |   | 2,088 |   |
| Cash received for income tax refunds                                              |   |                         | 458            |   |   |   | 214 |   |
| Property, plant and equipment accrued in accounts payable                         |   |                         | 811            |   |   |   | –– |   |

----

Table of Contents

|                                      | Common stock shares |   | Common shares |    | Retained earnings |   | Accumulated comprehensive income |   | Total  |    |
|-------------------------------------------|---------------------|--------|---------------|---------|-------------------|--------|----------------------------------|--------|--------|---------|
| For the three months ended March 31, 2011 |                |   |          |    |              |   |                             |   |   |    |   |   |   |   |
| Balance at January 1, 2011                | 38,058              |   | $             | 196,431 |              | $      | 143,737                          |   | $      | 35,501  |   | $ | 375,669 |   |
| Components of comprehensive income        |                |   |          |    |              |   |                             |   |   |    |   |   |   |   |
| Net income                                | —             |   |          | — |              |   | 5,010                            |   |   | — |   |   | 5,010 |   |
| Total comprehensive income                |                |   |          |    |              |   |                             |   |   |    |   |   | 5,010 |   |
| Issuance and exercises under stock plans  | 91                  |   |          | 1,522   |              |   | —                          |   |   | — |   |   | 1,522 |   |
| Balances at March 31, 2011                | 38,149              |   | $             | 197,953 |              | $      | 148,747                          |   | $      | 35,501  |   | $ | 382,201 |   |
|                                      |                |   |          |    |              |   |                             |   |   |    |   |   |   |   |
|                                      |                |   |          |    |              |   |                             |   |   |    |   |   |   |   |
| For the three months ended March 31, 2010 |                |   |          |    |              |   |                             |   |   |    |   |   |   |   |
| Balance at January 1, 2010                | 37,750              |   | $             | 189,966 |              | $      | 136,692                          |   | $      | 35,501  |   | $ | 362,159 |   |
| Components of comprehensive income        |                |   |          |    |              |   |                             |   |   |    |   |   |   |   |
| Net income                                | —             |   |          | — |              |   | 2,205                            |   |   | — |   |   | 2,205 |   |
| Total comprehensive income                |                |   |          |    |              |   |                             |   |   |    |   |   | 2,205 |   |
| Issuance and exercises under stock plans  | 32                  |   |          | 2,152   |              |   | —                          |   |   | — |   |   | 2,152 |   |
| Balances at March 31, 2010                | 37,782              |   | $             | 192,118 |              | $      | 138,897                          |   | $      | 35,501  |   | $ | 366,516 |   |
|                                      |                |   |          |    |              |   |                             |   |   |    |   |   |   |   |

----

Table of Contents

----

Table of Contents

|                            | March 31,2011 |   | December 31,2010 |   |
|---------------------------------|---------------|--------|------------------|--------|
| Prepaid taxes other than income | $             | 10,987 |             | $      | 9,597 |   |
| Deposits                        |          | 4,851  |             |   | 3,055 |   |
| Prepaid insurance               |          | 2,962  |             |   | 3,791 |   |
| Other prepaid expenses          |          | 2,427  |             |   | 3,218 |   |
| Restricted cash                 |          | 1,627  |             |   | 1,502 |   |
| Deferred job costs              |          | 1,029  |             |   | 234 |   |
| Non-trade receivables           |          | 1,011  |             |   | 1,371 |   |
|                            | $             | 24,894 |             | $      | 22,768 |   |
|                            |          |   |             |   |   |   |

|                                      | March 31,2011 |   | December 31,2010 |   |
|-------------------------------------------|---------------|--------|------------------|--------|
| Accrued payroll and benefits              | $             | 12,158 |             | $      | 16,009 |   |
| Accrual for foreign withholding tax claim |          | 5,073  |             |   | 5,022 |   |
| Accrued taxes other than income taxes     |          | 12,397 |             |   | 9,937 |   |
| Other current liabilities                 |          | 2,605  |             |   | 1,321 |   |
|                                      | $             | 32,233 |             | $      | 32,289 |   |
|                                      |          |   |             |   |   |   |

|             | March 31,2011 |   | December 31,2010 |   |
|------------------|---------------|--------|------------------|--------|
| Raw materials    | $             | 37,594 |             | $      | 33,228 |   |
| Work in progress |          | 4,555  |             |   | 1,837 |   |
| Finished goods   |          | 27,486 |             |   | 24,125 |   |
|             | $             | 69,635 |             | $      | 59,190 |   |
|             |          |   |             |   |   |   |

|                           | March 31,2011 |     | December 31,2010 |   |
|--------------------------------|---------------|----------|------------------|--------|
| Land, buildings and leaseholds | $             | 20,956   |             | $      | 20,896 |   |
| Drilling equipment             |          | 277,465  |             |   | 273,996 |   |
| Manufacturing equipment        |          | 6,295    |             |   | 6,112 |   |
| Office equipment and other     |          | 24,183   |             |   | 22,818 |   |
| Capital work in progress       |          | 13,187   |             |   | 11,630 |   |
|                           |          | 342,086  |             |   | 335,452 |   |
| Less: Accumulated depreciation |          | (161,225 | )                |   | (152,766 | ) |
|                           | $             | 180,861  |             | $      | 182,686 |   |
|                           |          |     |             |   |   |   |

----

Table of Contents

|                                          | March 31,2011 |   | March 31,2010 |   |
|-----------------------------------------------|---------------|--------|---------------|--------|
| Cost of sales and services                    | $             | 8,852  |          | $      | 8,528 |   |
| Selling, general & administrative expense |          | 404    |          |   | 245 |   |
| Research and engineering                      |          | 11     |          |   | 6 |   |
|                                          | $             | 9,267  |          | $      | 8,779 |   |
|                                          |          |   |          |   |   |   |

|                         | Three Months EndedMarch 31, 2011 |   |
|------------------------------|----------------------------------|--------|
| Balance, January 1, 2011     | $                                | 1,698  |   |
| Charged to expense, net      |                             | 230    |   |
| Deductions                   |                             | (1     | ) |
| Balance, March 31, 2011 | $                                | 1,927  |   |
|                         |                             |   |   |

|                                                                   | Three Months EndedMarch 31, |   |
|------------------------------------------------------------------------|-----------------------------|--------|
|                                                                   | 2011                        |   | 2010 |   |
| Basic weighted average number of shares outstanding               |                        | 38,076 |   |   | 37,759 |   |
| Dilutive effect of stock-based compensation                            |                        | 677    |   |   | 951 |   |
| Diluted weighted average number of shares outstanding                  |                        | 38,753 |   |   | 38,710 |   |
|                                                                   |                        |   |   |   |   |   |
| Anti-dilutive options excluded from calculation due to exercise prices |                        | 1,047  |   |   | 680 |   |
|                                                                   |                        |   |   |   |   |   |

|                             | Three Months EndedMarch 31, |   |
|----------------------------------|-----------------------------|--------|
|                             | 2011                        |   | 2010 |   |
| Current tax provision            |  $                     | 2,202  |   |  $ | 1,133 |   |
| Deferred tax provision (benefit) |                        | 497    |   |   | (95 | ) |
| Income tax provision             |  $                     | 2,699  |   |  $ | 1,038 |   |
|                             |                        |   |   |   |   |   |

----

Table of Contents

| ·   | Non-exclusive irrevocable worldwide and royalty free cross licenses with respect to all the patents asserted by Weatherford in the Marshall Case and by us in the Houston Case, as well as certain other U.S. and foreign equivalents and counterparts; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

| ·   | Weatherford has agreed to purchase for five years 67% of its worldwide top drive requirements from us, as long as we can meet production requirements, and to designate us as a preferred provider of after-market sales and service for top drives.  The prices we charge Weatherford will be equal to or lower than the prices we charge to any other customer of similar volume of purchases and/or services. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                          |   | Three Months Ended March 31, 2011 |   |
|-------------------------------|--------|-----------------------------------|--------|
|                          |   | TopDrive                          |   | TubularServices |   | CASINGDRILLING |   | Research &Engineering |   | Corporate andOther |   | Total |   |
| Revenues                      |   | $                                 | 70,449 |   | $ | 32,288 |   | $ | 2,885 |   | $ | — |   | $ | — |   | $ | 105,622 |   |
| Depreciation and amortization |   |                              | 2,625  |   |   | 4,575 |   |   | 1,147 |   |   | 11 |   |   | 909 |   |   | 9,267 |   |
| Operating income (loss)       |   |                              | 21,658 |   |   | 1,806 |   |   | (3,113 | )  |   | (2,885 | )  |   | (9,257 | )  |   | 8,209 |   |
| Other expense                 |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 500 |   |
| Income before income taxes    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 7,709 |   |
|                          |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                          |   | Three Months Ended March 31, 2010 |   |
|-------------------------------|--------|-----------------------------------|--------|
|                          |   | TopDrive                          |   | TubularServices |   | CASINGDRILLING |   | Research &Engineering |   | Corporate andOther |   | Total |   |
| Revenues                      |   | $                                 | 52,086 |   | $ | 31,297 |   | $ | 2,713 |   | $ | — |   | $ | — |   | $ | 86,096 |   |
| Depreciation and amortization |   |                              | 2,391  |   |   | 4,608 |   |   | 1,029 |   |   | 6 |   |   | 745 |   |   | 8,779 |   |
| Operating income (loss)       |   |                              | 12,357 |   |   | 3,516 |   |   | (2,764 | )  |   | (1,639 | )  |   | (8,432 | )  |   | 3,038 |   |
| Other expense (income)        |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (205 | ) |
| Income before income taxes    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 3,243 |   |
|                          |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                           | Three Months EndedMarch 31, |    |
|--------------------------------|-----------------------------|---------|
|                           | 2011                        |    | 2010 |   |
| United States                  |  $                     | 42,368  |   |  $ | 42,147 |   |
| South America                  |                        | 16,149  |   |   | 6,884 |   |
| Canada                         |                        | 11,708  |   |   | 7,008 |   |
| Asia Pacific                   |                        | 10,065  |   |   | 10,544 |   |
| Russia                         |                        | 9,793   |   |   | 2,995 |   |
| Europe, Africa and Middle East |                        | 7,828   |   |   | 7,012 |   |
| Mexico                         |                        | 7,711   |   |   | 9,506 |   |
| Total                          |  $                     | 105,622 |   |  $ | 86,096 |   |
|                           |                        |    |   |   |   |   |

|                           | March 31,2011 |    | December 31,2010 |    |
|--------------------------------|---------------|---------|------------------|---------|
| United States                  |  $       | 57,895  |             |  $ | 60,706 |   |
| Mexico                         |          | 28,650  |             |    | 29,582 |   |
| Russia                         |          | 22,287  |             |    | 21,583 |   |
| Asia Pacific                   |          | 22,004  |             |    | 22,137 |   |
| South America                  |          | 19,412  |             |    | 19,131 |   |
| Europe, Africa and Middle East |          | 15,702  |             |    | 16,083 |   |
| Canada                         |          | 14,911  |             |    | 13,464 |   |
| Total                          |  $       | 180,861 |             |  $ | 182,686 |   |
|                           |          |    |             |    |   |   |

----

Table of Contents

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|---------|----------------------------------------------------------------------------------------------|

| ·   | Top Drives - top drive sales, top drive rentals and after-market sales and services; |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | Tubular Services – proprietary and conventional tubular services; |
|--------------------|-------------------------------------------------------------------------|

| ·   | CASING DRILLING – proprietary CASING DRILLING technology; and |
|--------------------|---------------------------------------------------------------------|

| ·   | Research and Engineering – internal research and development activities related to our proprietary tubular services, CASING DRILLING technology and top drive model development. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                     | Average Rig Count(1)                                            |   | Increase (Decrease)                                            |
|--------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|--------|----------------------------------------------------------------|
|                                                                                                                     | First Quarter 2011                                              |   | First Quarter 2010                                             |   | First Quarter 2011 to First Quarter 2010 |
| U.S.                                                                                                                     |      1,716                             |   | 1,345                                                          |   | 371 |   | 28% |
| Canada                                                                                                                   |         587             |   |         470            |   | 117 |   | 25% |
| Latin America (includes Mexico)                                                                                          |         410             |   |         378            |   |           32 |   | 8% |
| Asia Pacific (includes China)                                                                                            |         273             |   |         257            |   |           16 |   | 6% |
| Middle East                                                                                                              |         283             |   |         260            |   | 23 |   | 9% |
| Europe (includes Russia)                                                                                                 |           118 |   |           88 |   | 30 |   | 34% |
| Africa                                                                                                                   | 82                                                              |   |           80 |   | 2 |   | 3% |
| Worldwide                                                                                                                |      3,469                             |   |      2,878                            |   |         591 |   | 21% |
|                                                                                                                     |                                                            |   |                                                           |   |   |   |   |
| (1)  Source:     Baker Hughes Incorporated worldwide rig count; averages are monthly. |
|                                                                                                                     |

----

Table of Contents

| ·   | Increased revenue from $86.1 million in the first quarter of 2010 to $105.6 million in the first quarter of 2011; |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | Increased operating results from $3.0 million in the first quarter of 2010 to $8.2 million in the first quarter of 2011; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | Growth in our top drive backlog from 18 units with potential revenue value of $25.9 million at March 31, 2010 to 43 units with potential revenue value of $57.4 million at March 31, 2011; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We remained debt-free as all cash requirements were funded from cash provided by operating activities; and |
|--------------------|------------------------------------------------------------------------------------------------------------|

| ·   | Although we used $6.0 million of cash and cash equivalents to fund operating activities during the first quarter of 2011, we did so to build inventory and in order to meet anticipated customer demand. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                             | Wells drilled (1)Years ended December 31, |
|--------------------------------------------------------------------------------------------------|------------------------------------------------|
|                                                                                             | 2011                                           |   | 2010 |   | 2009 |   | 2008 |
|                                                                                             | (forecast)(1)                                  |   |   |   |   |   |   |
| U.S.                                                                                             | 50,392                                         |   | 45,617 |   | 37,204 |   | 54,749 |
| Canada                                                                                           | 11,163                                         |   | 10,912 |   | 8,010 |   | 18,661 |
| Latin America                                                                                    | 5,506                                          |   | 5,450 |   | 4,531 |   | 5,243 |
| Europe, Africa, Middle East (including Russia)                                                   | 11,867                                         |   | 11,359 |   | 10,519 |   | 11,429 |
| Far East (including China)                                                                       | 23,942                                         |   | 23,802 |   | 23,655 |   | 22,490 |
| Worldwide                                                                                        | 102,870                                        |   | 97,140 |   | 83,919 |   | 112,572 |
|                                                                                             |                                           |   |   |   |   |   |   |
| (1)  Source:     Report by World Oil magazine, February 2011. |
|                                                                                             |

| ·   | Top Drive - Based upon existing drilling and bidding levels, current economic forecasts and size of our product sale backlog, we expect our top drive order rate and rental activity to continue to moderately increase in 2011.   We consider a product sale as backlog when the customer has signed a purchase contract, submitted the purchase order and, if required by the purchase agreement, paid a non-refundable deposit. Revenue from services are recognized as the services are rendered, based upon agreed daily, hourly or job rates. Accordingly, we have no backlog for services. Our outstanding backlog was 43 units at March 31, 2011 compared to 25 units at December 31, 2010.   Our customers have maintained their focus on lowering project costs, which continues to put downward pressure on our sales prices on selected product offerings.  However, we expect international demand for our top drive rental services will expand, following the increase experienced in North America in 2010.  As such, we intend to grow our rental fleet of top drives in 2011. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Tubular Services - We expect our CDS proprietary casing business to continue to grow moderately in 2011 and our conventional casing activities to grow slightly as the market recovers.  We will continue to focus our efforts on the expansion of our proprietary casing service offerings. In addition, we continue to expand our tubular services activities in most major unconventional shale regions in North America and selected international locations to further expand our global foot print.  Furthermore, we expect drilling activity in the Gulf of Mexico to return in 2011, which will improve demand for our MCRLS proprietary services.  We continue to develop relationships with new and existing customers in both our Tubular Services and CASING DRILLING segments. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | CASING DRILLING – We expect improvement in our CASING DRILLING revenue and operating results in 2011 based on signed contracts and current bidding activity.  We plan to maintain our CASING DRILLING infrastructure around the world while optimizing headcount in locations with higher demand and streamlining internal processes. We believe that our CASING DRILLING business will be a valuable part of our future operations. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                            | Three Months Ended March 31, |    | Increase/(Decrease) |
|---------------------------------|------------------------------|---------|---------------------|
|                            | 2011                         |    | 2010                |   | 2011 to 2010 |
| Segment revenue                 |                         |    |                |   |   |   |   |   |   |   |
| Top Drive                       | $                            | 70,449  |                | $ | 52,086 |   | $ | 18,363 |   | 35% |
| Tubular Services                |                         | 32,288  |                |   | 31,297 |   |   | 991 |   | 3% |
| CASING DRILLING                 |                         | 2,885   |                |   | 2,713 |   |   | 172 |   | 6% |
| Consolidated revenue            | $                            | 105,622 |                | $ | 86,096 |   | $ | 19,526 |   | 23% |
|                            |                         |    |                |   |   |   |   |   |   |   |
| Segment operating income (loss) |                         |    |                |   |   |   |   |
| Top Drive                       | $                            | 21,658  |                | $ | 12,357 |   | $ | 9,301 |   | 75% |
| Tubular Services                |                         | 1,806   |                |   | 3,516 |   |   | (1,710 | ) | (49%) |
| CASING DRILLING                 |                         | (3,113  | )                   |   | (2,764 | ) |   | (349 | ) | 13% |
| Research and engineering        |                         | (2,885  | )                   |   | (1,639 | ) |   | (1,246 | ) | 76% |
| Corporate and other             |                         | (9,257  | )                   |   | (8,432 | ) |   | (825 | ) | 10% |
| Consolidated operating income   |                         | 8,209   |                |   | 3,038 |   |   | 5,171 |   | 170% |
| Other expense (income)          |                         | 500     |                |   | (205 | )  |   | 705 |   | (344%) |
| Income before income taxes      |                         | 7,709   |                |   | 3,243 |   |   | 4,466 |   | 138% |
| Income tax provision            |                         | 2,699   |                |   | 1,038 |   |   | 1,661 |   | 160% |
| Net income                      | $                            | 5,010   |                | $ | 2,205 |   | $ | 2,805 |   | 127% |
|                            |                         |    |                |   |   |   |   |   |   |   |

|                                                                                                                                   | Three Months Ended March 31, |   | Increase/(Decrease)  |
|----------------------------------------------------------------------------------------------------------------------------------------|------------------------------|--------|---------------------------|
|                                                                                                                                   | 2011                         |   | 2010                      |   | 2011 to 2010 |
| Top Drive revenue                                                                                                                      |                         |   |                      |   |   |   |   |   |   |   |
| Sales                                                                                                                                  | $                            | 24,962 |                      | $ | 17,076 |   | $ | 7,886 |   | 46% |
| Rental services                                                                                                                        |                         | 33,257 |                      |   | 24,127 |   |   | 9,130 |   | 38% |
| After-market sales and services                                                                                                        |                         | 12,230 |                      |   | 10,883 |   |   | 1,347 |   | 12% |
|                                                                                                                                   | $                            | 70,449 |                      | $ | 52,086 |   | $ | 18,363 |   | 35% |
|                                                                                                                                   |                         |   |                      |   |   |   |   |   |   |   |
| Top Drive operating income                                                                                                             | $                            | 21,658 |                      | $ | 12,357 |   | $ | 9,301 |   | 75% |
|                                                                                                                                   |                         |   |                      |   |   |   |   |   |   |   |
| Number of top drive sales:                                                                                                             |                         |   |                      |   |   |   |   |   |   |   |
| New                                                                                                                                    |                         | 17     |                      |   | 12 |   |   | 5 |   | 42% |
| Used or consignment                                                                                                               |                         | 1      |                      |   | 2 |   |   | (1 | ) | (50%) |
|                                                                                                                                   |                         | 18     |                      |   | 14 |   |   | 4 |   | 29% |
|  End of period number of top drives in rental fleet:                                                                              |                         | 125    |                      |   | 117 |   |   | 8 |   | 7% |
| Rental operating days (a)                                                                                                              |                         | 6,870  |                      |   | 5,373 |   |   | 1,497 |   | 28% |
| Average daily operating rate                                                                                                           | $                            | 4,841  |                      | $ | 4,490 |   | $ | 351 |   | 8% |
|                                                                                                                                   |                         |   |                      |   |   |   |   |   |   |   |
|  (a)  Defined as a day that a unit in our rental fleet is under contract and operating; does not include stand-by days  |
|                                                                                                                                   |

----

Table of Contents

|                              | Three Months Ended March 31, |   | Increase/(Decrease) |
|-----------------------------------|------------------------------|--------|---------------------|
|                              | 2011                         |   | 2010                |   | 2011 to 2010 |
| Tubular Services revenue          |                         |   |                |   |   |   |   |   |   |   |
| Proprietary                       | $                            | 24,529 |                | $ | 25,788 |   | $ | (1,259 | ) | (5%) |
| Conventional                      |                         | 7,759  |                |   | 5,509 |   |   | 2,250 |   | 41% |
|                              | $                            | 32,288 |                | $ | 31,297 |   | $ | 991 |   | 3% |
|                              |                         |   |                |   |   |   |   |   |   |   |
| Tubular Services operating income | $                            | 1,806  |                | $ | 3,516 |   | $ | (1,710 | ) | (49%) |
|                              |                         |   |                |   |   |   |   |   |   |   |
| Number of proprietary jobs        |                         | 820    |                |   | 797 |   |   | 23 |   | 3% |
|                              |                         |   |                |   |   |   |   |   |   |   |

----

Table of Contents

|                           | Three Months Ended March 31, |          | Increase/(Decrease) |
|--------------------------------|------------------------------|---------------|---------------------|
|                           | 2011                         |          | 2010                |   | 2011 to 2010 |
| CASING DRILLING revenue        | $                            | 2,885         |                | $ | 2,713 |   | $ | 172 |   | 6% |
| CASING DRILLING operating loss | $                            |   (3,113 | )                   | $ | (2,764 | ) | $ | 349 |   | 13% |
|                           |                         |          |                |   |   |   |   |   |   |   |

|                             | Three Months Ended March 31, |   | Increase/(Decrease) |
|----------------------------------|------------------------------|--------|---------------------|
|                             | 2011                         |   | 2010                |   | 2011 to 2010 |
| Research and engineering expense | $                            | 2,885  |                | $ | 1,639 |   | $ | 1,246 |   | 76% |
|                             |                         |   |                |   |   |   |   |   |   |   |

----

Table of Contents

|                                           | Three Months Ended March 31, |   | Increase/(Decrease) |
|------------------------------------------------|------------------------------|--------|---------------------|
|                                           | 2011                         |   | 2010                |   | 2011 to 2010 |
| Corporate and other expenses                   | $                            | 9,257  |                | $ | 8,432 |   | $ | 825 |   | 10% |
| Corporate and other expenses as a % of revenue |                         | 9%     |                |   | 10% |   |   |   |   | (1%) |
|                                           |                         |   |                |   |   |   |   |   |   |   |

|                         |  Three Months Ended March 31, |    |  Increase/(Decrease) |
|------------------------------|------------------------------------|---------|---------------------------|
|                         |  2011                         |    |  2010                |   |  2011 to 2010 |
| Other expense (income)       |                               |    |                      |   |   |   |   |   |   |   |
| Interest expense             | $                             | 286     |                      | $  | 55 |   | $  | 231 |   | 420% |
| Interest income              |                               | — |                      |   | (22 | ) |   | 22 |   | (100%) |
| Foreign exchange losses      |                               | 186     |                      |   | 120 |   |   | 66 |   | 55% |
| Other expense (income)       |                               | 28      |                      |   | (358 | ) |   | 386 |   | 108% |
| Total other expense (income) | $                             | 500     |                      | $  | (205 | ) | $  | 705 |   | 344% |
|                         |                               |    |                      |   |   |   |   |   |   |   |

|                      | Three Months Ended March 31, |   | Increase/Decrease |
|---------------------------|------------------------------|--------|-------------------|
|                      | 2011                         |   | 2010              |   | 2011 to 2010 |
| Effective income tax rate |                         | 35%    |              |   | 32% |   |   | 3% |   | 9% |
|                      |                         |   |              |   |   |   |   |   |   |   |

----

Table of Contents

|           | March 31,2011 |           | December 31,2010 |   |
|----------------|---------------|----------------|-----------------------|--------|
| Cash           | $             | 46,833         |                  | $      | 60,603 |   |
| Long term debt |          | –– |                  |   | –– |   |
| Net cash       | $             | 46,833         |                  | $      | 60,603 |   |
|           |          |           |                  |   |   |   |

----

Table of Contents

| Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
|--------------|-------------------------------------------------------------|

----

Table of Contents

|  Item 4. | Controls and Procedures. |
|--------------------|--------------------------|

----

Table of Contents

| Item 1. | Legal Proceedings. |
|--------------|--------------------|

| Item 1A. | Risk Factors. |
|---------------|---------------|

|  Item 6. | Exhibits. |
|--------------------|-----------|

----

Table of Contents

|   |                                |                                                                                         |
|--------|-------------------------------------|----------------------------------------------------------------------------------------------|
|   | TESCO CORPORATION                   |
|   |                                |                                                                                         |
|   | By:                                 | /s/    JULIO M. QUINTANA         |
|   |                                | Julio M. Quintana,President and Chief Executive Officer                                      |
|   |                                |
|   | Date:   May 09, 2011 |
|   |                                |
|   | TESCO CORPORATION                   |
|   |                                |                                                                                         |
|   | By:                                 | /s/    ROBERT L. KAYL            |
|   |                                | Robert L. Kayl,Senior Vice President and Chief Financial Officer                             |
|   |                                |
|   | Date:   May 09, 2011 |

----

Table of Contents

|             |   |                                                                                                                                                                                                                                                                                                         |
|------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit No. |   | Description                                                                                                                                                                                                                                                                                                  |
| 3.1*             |   | Articles of Amalgamation of Tesco Corporation, dated December 1, 1993 (incorporated by reference to Exhibit 4.1 to Tesco Corporation’s Registration Statement on Form S-8 (File No. 333-139610) filed with the SEC on December 22, 2006)                                                     |
|             |   |                                                                                                                                                                                                                                                                                                         |
| 3.2*             |   | Amended and Restated By-laws of Tesco Corporation (incorporated by reference to Exhibit 3.1 to Tesco Corporation’s Current Report on Form 8-K filed with the SEC on May 22, 2007)                                                                                                                      |
|             |   |                                                                                                                                                                                                                                                                                                         |
| 4.1*             |   | Form of Common Share Certificate for Tesco Corporation (incorporated by reference to Exhibit 4.3 to Tesco Corporation’s Registration Statement on Form S-8 filed with the SEC on November 13, 2008)                                                                                               |
|             |   |                                                                                                                                                                                                                                                                                                         |
| 4.2*             |   | Shareholder Rights Plan Agreement between Tesco Corporation and Computershare Trust Company of Canada, as Rights Agent, Amended and Restated as of May 20, 2008 (incorporated by reference to Exhibit 10.1 to Tesco Corporation’s Current Report on Form 8-K filed with the SEC on May 22, 2008)       |
|             |   |                                                                                                                                                                                                                                                                                                         |
| 31.1             |   | Rule 13a-14(a)/15d-14(a) Certification, executed by Julio M. Quintana, President and Chief Executive Officer of Tesco Corporation                                                                                                                                                                            |
|             |   |                                                                                                                                                                                                                                                                                                         |
| 31.2             |   | Rule 13a-14(a)/15d-14(a) Certification, executed by Robert L. Kayl, Senior Vice President and Chief Financial Officer of Tesco Corporation                                                                                                                                                                   |
|             |   |                                                                                                                                                                                                                                                                                                         |
| 32               |   | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, executed by Julio M. Quintana, President and Chief Executive Officer of Tesco Corporation and Robert L. Kayl, Senior Vice President and Chief Financial Officer of Tesco Corporation |

|   | * | Incorporated by reference to the indicated filing |
|--------|---|---------------------------------------------------|

----