| Delaware                                                      |   | 84-0811316                       |
|---------------------------------------------------------------|--------|----------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (IRS EmployerIdentification No.) |
|                                                          |   |                             |
| 830 Tenderfoot Hill Road, Suite 310Colorado Springs, CO       |   |  80906                      |
| (Address of principal executive offices)                      |   | (Zip Code)                       |

| Yes  X | No  o |
|------------------|-----------------|

| Large accelerated filer o                                             | Accelerated filer o    |
|----------------------------------------------------------------------------|-----------------------------|
| Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company X |
|                                                                       |                        |

| Yes o | No X |
|------------|------|

|      Class | Outstanding at May 1, 2011 |
|-------------------------------------|----------------------------|
| Common stock, $.005 par value       | 21,778,866                 |

----

|                                                                                                |   |        |
|-----------------------------------------------------------------------------------------------------|--------|-------------|
|                                                                                                |   |   Page |
| Part I – Financial Information                                                                |   |        |
|                                                                                                |   |        |
| Item 1. Financial Statements                                                                        |   |        |
|                                                                                                |   |        |
| Condensed Consolidated Balance Sheets                                                               |   | 3      |
|                                                                                                |   |        |
| Condensed Consolidated Statements of Operations                                                     |   | 4      |
|                                                                                                |   |        |
| Condensed Consolidated Statements of Cash Flows                                                     |   | 5      |
|                                                                                                |   |        |
| Notes to Condensed Consolidated Financial Statements                                                |   | 6      |
|                                                                                                |   |        |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 18          |
|                                                                                                |   |        |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk                                  |   | 32          |
|                                                                                                |   |        |
| Item 4. Controls and Procedures                                                                     |   | 32          |
|                                                                                                |   |        |
|                                                                                                |   |        |
| Part II                                                                                             |   |        |
|                                                                                                |   |        |
| Item 1. Legal Proceedings                                                                           |   | 33          |
|                                                                                                |   |        |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                 |   | 33          |
|                                                                                                |   |        |
| Item 3. Defaults Upon Senior Securities                                                             |   | 33          |
|                                                                                                |   |        |
| Item 4. Reserved                                                                                    |   | 33          |
|                                                                                                |   |        |
| Item 5. Other Information                                                                           |   | 33          |
|                                                                                                |   |        |
| Item 6. Exhibits                                                                                    |   | 34          |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | March 31,   |       |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2011        |       |   | 2010         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (Unaudited) |       |   |         |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |        |       |   |         |   |
| Current Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |        |       |   |         |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $           | 1,956,497  |   |         | $      | 1,637,807 |   |
| Accounts receivable, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |        | 4,714,697  |   |         |   | 4,101,331 |   |
| Prepaid expenses and other current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |        | 808,405    |   |         |   | 681,307 |   |
| Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |        | 240,418    |   |         |   | 300,527 |   |
| Income taxes receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |        | -          |   |         |   | 634,941 |   |
| Deferred tax asset                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |        | 84,707     |   |         |   | 20,041 |   |
| Total current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        | 7,804,724  |   |         |   | 7,375,954 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        |       |   |         |   |   |   |
| Property and Equipment, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |        | 14,151,745 |   |         |   | 14,452,298 |   |
| Non-Competition Agreements, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |        | 360,000    |   |         |   | 420,000 |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |        | 301,087    |   |         |   | 301,087 |   |
| Other Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |        | 56,604     |   |         |   | 71,537 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        |       |   |         |   |   |   |
| TOTAL ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $           | 22,674,160 |   |         | $      | 22,620,876 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        |       |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |        |       |   |         |   |   |   |
| Current Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |        |       |   |         |   |   |   |
| Accounts payable and accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $           | 1,876,393  |   |         | $      | 2,066,353 |   |
| Income taxes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        | 401,393    |   |         |   | - |   |
| Line of credit borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |        | -          |   |         |   | 1,050,000 |   |
| Current portion of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |        | 3,560,768  |   |         |   | 3,107,122 |   |
| Total current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |        | 5,838,554  |   |         |   | 6,223,475 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        |       |   |         |   |   |   |
| Long-Term Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |        |       |   |         |   |   |   |
| Subordinated debt – related party                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |        | 1,700,000  |   |         |   | 1,700,000 |   |
| Long-term debt, less current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        | 8,077,560  |   |         |   | 8,657,675 |   |
| Deferred income taxes, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |        | 1,599,179  |   |         |   | 1,434,282 |   |
| Total long-term liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |        | 11,376,739 |   |         |   | 11,791,957 |   |
| Total liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |        | 17,215,293 |   |         |   | 18,015,432 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        |       |   |         |   |   |   |
| Stockholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |        |       |   |         |   |   |   |
|     Common and preferred stock. $.005 par value      Authorized: 100,000,000 common shares and 10,000,000 preferred shares      Issued: 21,882,466 common shares and -0- preferred shares      Treasury Stock: 103,600 common shares      Issued and outstanding: 21,778,866 common shares and -0- preferred shares          at March 31, 2011 and December 31, 2010 |   |        | 108,894    |   |         |   | 108,894 |   |
| Additional paid-in-capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |        | 5,539,505  |   |         |   | 5,489,823 |   |
| Retained deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |        | (264,926   | )      |         |   | (1,150,011 | ) |
| Accumulated other comprehensive income – investment securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        | 75,394     |   |         |   | 156,738 |   |
| Total stockholders’ equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |        | 5,458,867  |   |         |   | 4,605,444 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |        |       |   |         |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $           | 22,674,160 |   |         | $      | 22,620,876 |   |

----

|                                                                                               |   | For the Three Months Ended |          |
|----------------------------------------------------------------------------------------------------|--------|----------------------------|---------------|
|                                                                                               |   | March 31,                  |          |
|                                                                                               |   | 2011                       |          |   | 2010 |   |
|                                                                                               |   | (Unaudited)                |          |   | (Unaudited) |   |
|                                                                                               |   |                       |          |   |   |   |
| Revenues                                                                                           |   | $                          | 9,261,521     |   |   | $ | 5,874,570 |   |
|                                                                                               |   |                       |          |   |   |   |   |   |
| Cost of Revenue                                                                                    |   |                       | 5,797,434     |   |   |   | 4,195,013 |   |
|                                                                                               |   |                       |          |   |   |   |   |   |
| Gross Profit                                                                                       |   |                       | 3,464,087     |   |   |   | 1,679,557 |   |
|                                                                                               |   |                       |          |   |   |   |   |   |
| Operating Expenses                                                                                 |   |                       |          |   |   |   |   |   |
| General and administrative expenses                                                                |   |                       | 748,904       |   |   |   | 485,205 |   |
| Depreciation and amortization                                                                      |   |                       | 1,080,607     |   |   |   | 947,781 |   |
| Total operating expenses                                                                           |   |                       | 1,829,511     |   |   |   | 1,432,986 |   |
|                                                                                               |   |                       |          |   |   |   |   |   |
| Income from Operations                                                                             |   |                       | 1,634,576     |   |   |   | 246,571 |   |
|                                                                                               |   |                       |          |   |   |   |   |   |
| Other (Expense) Income                                                                             |   |                       |          |   |   |   |   |   |
| Interest expense                                                                                   |   |                       | (180,311      | ) |   |   | (190,181 | ) |
| (Loss) gain on disposals of equipment                                                              |   |                       | (44,286       | ) |   |   | 7,125 |   |
| Unrealized derivative gain                                                                         |   |                       | -             |   |   |   | 13,078 |   |
| Interest and other income                                                                          |   |                       | 4,744         |   |   |   | 235,421 |   |
| Total other (expense) income                                                                       |   |                       | (219,853      | ) |   |   | 65,443 |   |
|                                                                                               |   |                       |          |   |   |   |   |   |
| Income Before Income Tax Expense                                                                   |   |                       | 1,414,723     |   |   |   | 312,014 |   |
|                                                                                               |   |                       |          |   |   |   |   |   |
| Income Tax Expense                                                                                 |   |                       | 529,635       |   |   |   | 203,120 |   |
|                                                                                               |   |                       |          |   |   |   |   |   |
| Net Income                                                                                         |   | $                          | 885,088       |   |   | $ | 108,894 |   |
|                                                                                               |   |                       |          |   |   |   |   |   |
| Other Comprehensive Income   Unrealized losses on investment securities, net of tax |   |                       | (81,344       | ) |   |   | - |   |
|                                                                                               |   |                       |          |   |   |   |   |   |
| Comprehensive Income                                                                               |   | $                          | 803,744       |   |   | $ | 108,894 |   |
|                                                                                               |   |                       |          |   |   |   |   |   |
|                                                                                               |   |                       |          |   |   |   |   |   |
| Earnings per Common Share                                                                          |   |                       |          |   |   |   |   |   |
|                                                                                               |   |                       |          |   |   |   |   |   |
| Income Per Common Share – Basic                                                         |   | $                     |  0.04    |   |   | $  |  0.01 |   |
| Income Per Common Share –Fully Diluted                                                  |   | $                     |  0.04    |   |   | $  | 0.01 |   |
|                                                                                               |   |                       |          |   |   |   |   |   |
| Basic weighted average number of common shares outstanding  (on an equivalent basis)     |   |                       | 21,778,866    |   |   |   | 14,519,244 |   |
| Add: Dilutive shares assuming exercise of options and warrants                                     |   |                       |  618,940 |   |   |   | -  |   |
| Diluted weighted average number of common shares outstanding  (on an equivalent basis)   |   |                       | 22,397,806    |   |   |   | 14,519,244 |   |

----

|                                                                             |   | For the Three Months Ended |       |
|----------------------------------------------------------------------------------|--------|----------------------------|------------|
|                                                                             |   | March 31,                  |       |
|                                                                             |   | 2011                       |       |   | 2010 |   |
|                                                                             |   | (unaudited)                |       |   | (unaudited) |   |
| OPERATING ACTIVITIES                                                             |   |                       |       |   |   |   |
| Net income                                                                       |   | $                          | 885,088    |   |   | $ | 108,894 |   |
| Adjustments to reconcile net income to net cash provided by operating activities |   |                       |       |   |   |   |   |   |
| Depreciation and amortization                                                    |   |                       | 1,080,607  |   |   |   | 947,781 |   |
| Loss (gain) on disposal of equipment                                             |   |                       | 44,286     |   |   |   | (7,125 | ) |
| Deferred income taxes                                                            |   |                       | 100,231    |   |   |   | (19,392 | ) |
| Unrealized gain on derivatives                                                   |   |                       | -          |   |   |   | (13,078 | ) |
| Stock-based compensation                                                         |   |                       | 49,681     |   |   |   | - |   |
|     Unrealized loss on available-for-sale securities         |   |                       | 132,679    |   |   |   | - |   |
|     Bad debt expense                                         |   |                       | 345        |   |   |   | - |   |
| Changes in operating assets and liabilities                                      |   |                       |       |   |   |   |   |   |
| Accounts receivable                                                              |   |                       | (613,711   | ) |   |   | (960,903 | ) |
| Income taxes receivable                                                          |   |                       | 634,941    |   |   |   | 222,513 |   |
| Inventories                                                                      |   |                       | 60,109     |   |   |   | 103,629 |   |
| Other current assets                                                             |   |                       | (259,777   | ) |   |   | (414,015 | ) |
| Other non-current assets                                                         |   |                       | 14,934     |   |   |   | 97,034 |   |
| Related party payable                                                            |   |                       | -          |   |   |   | (64,995 | ) |
| Income taxes payable                                                             |   |                       | 401,393    |   |   |   | - |   |
| Accounts payable and accrued expenses                                            |   |                       | (189,960   | ) |   |   | (26,210 | ) |
| Net cash provided (used) in operating activities                                 |   |                       | 2,340,846  |   |   |   | (25,867 | ) |
|                                                                             |   |                       |       |   |   |   |   |   |
| INVESTING ACTIVITIES                                                             |   |                       |       |   |   |   |   |   |
| Purchases of property and equipment                                              |   |                       | (738,191   | ) |   |   | (194,135 | ) |
| Proceeds from sales of equipment                                                 |   |                       | 38,787     |   |   |   | 555,125 |   |
| Net cash (used) provided in investing activities                                 |   |                       | (699,404   | ) |   |   | 360,990 |   |
|                                                                             |   |                       |       |   |   |   |   |   |
| FINANCING ACTIVITIES                                                             |   |                       |       |   |   |   |   |   |
| Net line of credit borrowings                                                    |   |                       | (1,050,000 | ) |   |   | 656,614 |   |
| Proceeds from issuance of long-term debt                                         |   |                       | -          |   |   |   | 1,200,000 |   |
| Distributions to members                                                         |   |                       | -          |   |   |   | (569,244 | ) |
| Repayment of long-term debt                                                      |   |                       | (272,752   | ) |   |   | (1,405,023 | ) |
| Net cash used in financing activities                                            |   |                       | (1,322,752 | ) |   |   | (117,653 | ) |
|                                                                             |   |                       |       |   |   |   |   |   |
| Net Increase in Cash and Cash Equivalents                                        |   |                       | 318,690    |   |   |   | 217,470 |   |
|                                                                             |   |                       |       |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Period                                   |   |                       | 1,637,807  |   |   |   | 148,486 |   |
|                                                                             |   |                       |       |   |   |   |   |   |
| Cash and Cash Equivalents, End of Period                                         |   | $                          | 1,956,497  |   |   | $ | 365,956 |   |

| Supplemental cash flow information consists of the following: |   |   |    |   |   |   |
|---------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|     Cash paid for interest                |   | $      | 165,951 |   |   | $      | 161,196 |   |
|     Cash paid for taxes                   |   | $      | -       |   |   | $      | - |   |

| Supplemental Disclosure of Investing and Financing Activities: |   |   |   |   |   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Non-cash commitments entered into for leases                   |   | $      | 51,526 |   |   | $      | - |   |

----

----

----

----

|   | Level 1: | Quoted prices are available in active markets for identical assets or liabilities; |
|--------|----------|------------------------------------------------------------------------------------|

|   | Level 2: | Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; or |
|--------|----------|-----------------------------------------------------------------------------------------------------------------------|

|   | Level 3: | Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                   |   |   |     |
|--------------------------------------------------------|--------|--------|----------|
| Non-competition agreements - net, at January 1, 2010   |   | $      | 660,000  |   |
| Amortization for the year ended December 31, 2010      |   |   | (240,000 | ) |
| Non-competition agreements - net, at December 31, 2010 |   |   | 420,000  |   |
| Amortization for the three months ended March 31, 2011 |   |   | (60,000  | ) |
| Non-competition agreements - net, at March 31, 2011    |   | $      | 360,000  |   |

| Twelve Months Ending March 31, |   |   |    |
|--------------------------------|--------|--------|---------|
|                           |   |   |    |
| 2012                           |   | $      | 240,000 |   |
| 2013                           |   |   | 105,000 |   |
| 2014                           |   |   | 15,000  |   |
| Total                          |   | $      | 360,000 |   |
|                           |   |   |    |   |

----

|                         |   | For the period ended, |        |
|------------------------------|--------|-----------------------|-------------|
|                         |   | March 31, 2011        |        |   | December 31, 2010 |   |
|                         |   |                  |        |   |   |   |
| Trucks and vehicles          |   | $                     | 18,592,937  |   |   | $ | 17,957,278 |   |
| Other equipment              |   |                  | 2,885,698   |   |   |   | 2,807,165 |   |
| Buildings and improvements   |   |                  | 1,728,117   |   |   |   | 1,717,618 |   |
| Trucks in process            |   |                  | 1,247,352   |   |   |   | 1,287,536 |   |
| Capitalized truck leases     |   |                  | 455,093     |   |   |   | 455,093 |   |
| Land                         |   |                  | 521,420     |   |   |   | 521,420 |   |
| Disposal wells               |   |                  | 612,939     |   |   |   | 590,802 |   |
| Total property and equipment |   |                  | 26,043,556  |   |   |   | 25,336,912 |   |
| Accumulated depreciation     |   |                  | (11,891,811 | ) |   |   | (10,884,614 | ) |
|                         |   |                  |        |   |   |   |   |   |
| Property and equipment - net |   | $                     | 14,151,745  |   |   | $ | 14,452,298 |   |

|                                                                                                                                                                                                                                                   |   | For the period ended, |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|-----------|
|                                                                                                                                                                                                                                                   |   | March 31,2011         |      |   | December 31, 2010 |   |
|                                                                                                                                                                                                                                                   |   |                  |      |   |   |   |   |   |
| Term Loan entered into as part of the debt refinancing in June 2010.                                                                                                                                                                                   |   | $                     | 9,049,383 |   |   | $ | 9,049,383 |   |
|                                                                                                                                                                                                                                                   |   |                  |      |   |   |   |   |   |
| Notes payable to stockholder, subordinated to all bank debt, fixed interest at 3% compounding annually, interest paid in arrears December 31st of each year, due in December 2018.                                                                     |   |                  | 1,700,000 |   |   |   | 1,700,000 |   |
|                                                                                                                                                                                                                                                   |   |                  |      |   |   |   |   |   |
| Notes payable to equipment finance companies, interest at 2.97% to 4.74%, due in monthly principal and interest installments through January 2012, secured by equipment.                                                                               |   |                  | 166,037   |   |   |   | 227,273 |   |
|                                                                                                                                                                                                                                                   |   |                  |      |   |   |   |   |   |
| Note payable to the seller of Heat Waves, interest at 8%, due in installments in January and May 2009, secured by land.  The note was garnished by the Internal Revenue Service (“IRS”) in 2009 and is due on demand.            |   |                  | 377,000   |   |   |   | 386,000 |   |
|                                                                                                                                                                                                                                                   |   |                  |      |   |   |   |   |   |
| Mortgage payable to a bank, interest at 8%, due in monthly payments through May 2012 with a balloon payment of $229,198 on June 15, 2012, secured by land, guaranteed by one of the members.                                                           |   |                  | 268,059   |   |   |   | 276,326 |   |
|                                                                                                                                                                                                                                                   |   |                  |      |   |   |   |   |   |
| Note payable to the seller of Hot Oil Express, non-interest bearing, due in annual installments of $100,000 through March 2011, unsecured. Imputed interest is not significant. (The Company purchased fixed assets from Hot Oil Express during 2008.) |   |                  | 100,000   |   |   |   | 100,000 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |           |       |   |              |   |       |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|-------------------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | March 31, 2011 |       |   | December 31, 2010 |   |
| Mortgage payable to a bank, interest at 8%, payable in monthly payments through August 2012 with a balloon payment of $141,707 on September 1, 2012, secured by land.                                                                                                                                                                                                                                                                                                                                                                                          |   |           | 153,913    |   |              |   | 155,980    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |           |       |   |              |   |       |   |
| Notes payable to a vehicle finance company, interest at fixed rates from 6.19% to 10.25%, due in monthly installments through August 2015, secured by vehicles, guaranteed by one of the stockholders.                                                                                                                                                                                                                                                                                                                                                         |   |           | 191,700    |   |              |   | 154,763    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |           |       |   |              |   |       |   |
| Capital leases entered into with a leasing company in order to purchase trucks and trailers, interest at a fixed rate of 5%.  Truck lease term of 24 months, due in monthly installments through September 2012.  Trailer lease term of 36 months, payments due in monthly installments through September 2013.                                                                                                                                                                                                                            |   |           | 365,888    |   |              |   | 411,072    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |           |       |   |              |   |       |   |
| Equipment Loan entered into with an original principal balance of $1,000,000, payable in two consecutive interest only payments, beginning 12/23/2010, forty-seven monthly consecutive principal and interest payments of $23,290.52, beginning 2/23/2011, and one final principal and interest payment of $23,315.49 due on 1/23/2015.  Interest at Prime plus 1% with a 5.5% floor, collateralized by equipment purchased with the equipment loan, guaranteed by the subsidiaries and stockholders of the Company, subject to financial covenants. |   |           | 962,348    |   |              |   | 1,000,000  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |           |       |   |              |   |       |   |
| Other notes payable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |           | 4,000      |   |              |   | 4,000      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |           |       |   |              |   |       |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |           | 13,338,328 |   |              |   | 13,464,797 |   |
| Less current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |           | (3,560,768 | )      |              |   | (3,107,122 | )      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |           |       |   |              |   |       |   |
| Long-term debt, net of current portion                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $              | 9,777,560  |   |              | $      | 10,357,675 |   |

| Twelve Months Ending March 31, |   |   |       |
|--------------------------------|--------|--------|------------|
|                           |   |   |       |
| 2012                           |   | $      | 3,560,768  |   |
| 2013                           |   |   | 2,787,086  |   |
| 2014                           |   |   | 2,385,839  |   |
| 2015                           |   |   | 2,432,321  |   |
| 2016                           |   |   | 472,314    |   |
| Thereafter                     |   |   | 1,700,000  |   |
|                           |   |   |       |   |
| Total                          |   | $      | 13,338,328 |   |

----

|                        |   | Year ended December 31, 2010 |    |
|-----------------------------|--------|------------------------------|---------|
|                        |   | Amortized Cost               |    |   | Unrealized Gains in Accumulated Other Comprehensive Income |   |   | Unrealized Losses in Accumulated Other Comprehensive Income |   |   | Sales of Securities |   |   | Fair Value |   |
|                        |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Common Stock - Mutual Funds |   | $                            | 306,364 |   |   | $ | 454,090 |   |   | $ | (58,163 | ) |   | $ | (336,505 | )  |   | $ | 365,786 |   |

|                        |   | Three months ended March 31, 2011 |    |
|-----------------------------|--------|-----------------------------------|---------|
|                        |   | Amortized Cost                    |    |   | Unrealized Gains in Accumulated Other Comprehensive Income |   |   | Unrealized Losses in Accumulated Other Comprehensive Income |   |   | Sales of Securities |   |   | Fair Value |   |
|                        |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Common Stock - Mutual Funds |   | $                                 | 365,786 |   |   | $ | 27,786 |   |   | $ | (160,465 | ) |   | $ | - |   |   | $ | 233,107 |   |

|                  |   | Year ended December 31, 2010 |    |
|-----------------------|--------|------------------------------|---------|
|                  |   | Level 1                      |    |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                  |   |                         |    |   |   |   |   |   |   |   |   |   |
| Marketable Securities |   | $                            | 365,786 |   |   | $ | - |   |   | $ | - |   |   | $ | 365,786 |   |

|                  |   | Three months ended March 31, 2011 |    |
|-----------------------|--------|-----------------------------------|---------|
|                  |   | Level 1                           |    |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                  |   |                              |    |   |   |   |   |   |   |   |   |   |
| Marketable Securities |   | $                                 | 233,107 |   |   | $ | - |   |   | $ | - |   |   | $ | 233,107 |   |

----

|                                                                         |   | Three Months Ended March 31, |    |
|------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                         |   | 2011                         |    |   | 2010 |   |
|                                                                         |   |                         |    |   |   |   |
| Computed expected tax expense                                                |   | $                            | 481,006 |   |   | $ | 106,085 |   |
|                                                                         |   |                         |    |   |   |   |   |   |
| Increase (reduction) in income taxes resulting from:                         |   |                         |    |   |   |   |   |   |
|     State and local income taxes, net of federal impact  |   |                         | 73,093  |   |   |   | - |   |
|     Deferred Tax Liabilities due to Change in Tax Status |   |                         | -       |   |   |   | 100,629 |   |
|     Nondeductible differences                            |   |                         | (27,945 | ) |   |   | - |   |
|     Other                                                |   |                         | 3,481   |   |   |   | (3,594 | ) |
|                                                                         |   |                         |    |   |   |   |   |   |
| Provision for income taxes                                                   |   | $                            | 529,635 |   |   | $ | 203,120 |   |

| Twelve Months Ending March 31, |   |   |
|--------------------------------|--------|--------|
|    2012         |   | $      | 148,650 |
|    2013         |   |   | 38,500 |
|    2014         |   |   | 20,000 |
| Total                          |   | $      | 207,150 |

| Capitalized Trucks              |   | $      | 218,807 |    |
|---------------------------------|--------|--------|---------|---------|
| Capitalized Trailers            |   |   | 236,286 |    |
| Less: Accumulated Depreciation  |   |   | (34,623 | )  |
| Net Assets Under Capital Leases |   | $      | 420,470 |    |

----

| Twelve Months Ending March 31,              |   | Minimum Lease Payment |     |
|---------------------------------------------|--------|-----------------------|----------|
|    2012                      |   | $                     | 200,173  |   |
|    2013                      |   |                  | 142,534  |   |
|    2014                      |   |                  | 42,239   |   |
| Total minimum lease payments                |   |                  | 384,946  |   |
| Less: Interest                              |   |                  | (19,057  | ) |
| Net minimum lease payments                  |   |                  | 365,889  |   |
| Less: Current portion                       |   |                  | (186,489 | ) |
| Long-term portion of minimum lease payments |   | $                     | 179,400  |   |

----

----

|                                   |   | Number of Shares |      |   | Weighted-Average Exercise Price |   |   | Weighted-Average Remaining Contractual Term |   |
|----------------------------------------|--------|------------------|-----------|--------|---------------------------------|--------|--------|---------------------------------------------|--------|
|                                   |   |             |      |   |                            |   |   |                                        |   |   |   |   |
| Outstanding at June 30, 2010*          |   |             | 490,431   |   |                            | $      | 0.96   |                                        |   |   | 4.01 |   |
|    Granted              |   |             | 1,975,000 |   |                            |   | 0.49   |                                        |   |   |   |   |
|    Exercised            |   |             | -         |   |                            |   | -      |                                        |   |   |   |   |
|    Forfeited or Expired |   |             | -         |   |                            |   | -      |                                        |   |   |   |   |
|                                   |   |             |      |   |                            |   |   |                                        |   |   |   |   |
| Outstanding at December 31, 2010       |   |             | 2,465,431 |   |                            | $      | 0.58   |                                        |   |   | 3.33 |   |
|    Granted              |   |             | -         |   |                            |   | -      |                                        |   |   |   |   |
|    Exercised            |   |             | -         |   |                            |   | -      |                                        |   |   |   |   |
|    Forfeited or Expired |   |             | -         |   |                            |   | -      |                                        |   |   |   |   |
|                                   |   |             |      |   |                            |   |   |                                        |   |   |   |   |
| Outstanding at March 31, 2011          |   |             | 2,465,431 |   |                            | $      | 0.58   |                                        |   |   | 3.08 |   |
|                                   |   |             |      |   |                            |   |   |                                        |   |   |   |   |
|  Exercisable at June 30, 2010     |   |             | 140,431   |   |                            | $      | 2.14   |                                        |   |   | 2.57 |   |
| Exercisable at December 31, 2010       |   |             | 1,298,764 |   |                            | $      | 0.49   |                                        |   |   | 3.33 |   |
| Exercisable at March 31, 2011          |   |             | 1,298,764 |   |                            | $      | 0.49   |                                        |   |   | 3.08 |   |

|                           |   | Number of Shares |       |   | Weighted-Average Grant-Date Fair Value |   |
|--------------------------------|--------|------------------|------------|--------|----------------------------------------|--------|
|                           |   |             |       |   |                                   |   |   |   |
| Nonvested at June 30, 2010*    |   |             | 350,000    |   |                                   | $      | 0.41 |   |
|    Granted      |   |             | 1,975,000  |   |                                   |   | 0.34 |   |
|    Vested       |   |             | (1,158,333 | )      |                                   |   | 0.47 |   |
|    Forfeited    |   |             | -          |   |                                   |   | - |   |
|                           |   |             |       |   |                                   |   |   |   |
| Nonvested at December 31, 2010 |   |             | 1,166,667  |   |                                   | $      | 0.34 |   |
|    Granted      |   |             | -          |   |                                   |   | - |   |
|    Vested       |   |             | -          |   |                                   |   | - |   |
|    Forfeited    |   |             | -          |   |                                   |   | - |   |
|                           |   |             |       |   |                                   |   |   |   |
| Nonvested at March 31, 2011    |   |             | 1,166,667  |   |                                   | $      | 0.34 |   |

----

|   | • | future capital requirements and uncertainty of obtaining additional funding on terms acceptable to us; |
|--------|---------|--------------------------------------------------------------------------------------------------------|

|   | • | a decline in oil or natural gas production or oil or natural gas prices, the impact of price volatility in the oil and natural gas industries and the impact of general economic conditions on the demand for the services we offer to the oil and natural gas industries; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | activities of our competitors, many of whom have greater financial resources than we have; |
|--------|---------|--------------------------------------------------------------------------------------------|

|   | • | geographical diversity of our operations and the difficulties inherent in managing such geographically diverse operations; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------|

|   | • | ongoing U.S. and global economic uncertainty; |
|--------|---------|-----------------------------------------------|

|   | • | our ability to generate sufficient cash flows to repay our debt obligations; |
|--------|---------|------------------------------------------------------------------------------|

|   | • | availability of borrowings under our credit facility; |
|--------|---------|-------------------------------------------------------|

|   | • | unanticipated increases in the cost of our operations; |
|--------|---------|--------------------------------------------------------|

|   | • | historical incurrence of losses; |
|--------|---------|----------------------------------|

|   | • | reliance on limited number of customers and creditworthiness of our customers; |
|--------|---------|--------------------------------------------------------------------------------|

|   | • | increases in interest rates and our failure to hedge against possible interest rate increases; |
|--------|---------|------------------------------------------------------------------------------------------------|

|   | • | our ability to retain key members of our senior management and key technical employees, and conflicts of interests with respect to our directors; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | our level of indebtedness; |
|--------|---------|----------------------------|

----

|   | • | impact of environmental, health and safety, and other governmental regulations, and of current or pending legislation; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------|

|   | • | effect of seasonal factors; |
|--------|---------|-----------------------------|

|   | • | further sales or issuances of common stock; and |
|--------|---------|-------------------------------------------------|

|   | • | our common stock’s limited trading history. |
|--------|---------|---------------------------------------------------|

|   | ● | southwestern Kansas and northwestern Oklahoma, |
|--------|---------|------------------------------------------------|

|   | ● | northeastern Utah, |
|--------|---------|--------------------|

|   | ● | northern New Mexico, |
|--------|---------|----------------------|

|   | ● | southern Wyoming and Colorado (D-J Basin and Niobrara formation), and |
|--------|---------|-----------------------------------------------------------------------|

|   | ● | northwestern West Virginia and southwest Pennsylvania in the Marcellus Shale region. |
|--------|---------|--------------------------------------------------------------------------------------|

----

----

|                                |   | For the Three Months Ended |      |   |              |   |
|-------------------------------------|--------|----------------------------|-----------|--------|-------------------|--------|
|                                |   | March 31,                  |      |   |              |   |
|                                |   | 2011                       |      |   | % of Revenue |   |   | 2010 |   |   | % ofRevenue |   |   | Increase (Decrease) |   |
|                                |   | (Unaudited)                |      |   |              |   |   | (Unaudited) |   |   |   |   |   |   |   |
|                                |   |                       |      |   |              |   |   |   |   |   |   |   |   |   |   |
| Revenues                            |   | $                          | 9,261,521 |   |              |   | 100% |   |   | $ | 5,874,570 |   |   |   | 100% |   |   | $ | 3,386,951 |   |
| Cost of Revenue                     |   |                       | 5,797,434 |   |              |   | 63% |   |   |   | 4,195,013 |   |   |   | 71% |   |   |   | 1,602,421 |   |
| Gross Profit                        |   |                       | 3,464,087 |   |              |   | 37% |   |   |   | 1,679,557 |   |   |   | 29% |   |   |   | 1,784,530 |   |
|                                |   |                       |      |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Expenses                  |   |                       |      |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative expenses |   |                       | 748,904   |   |              |   | 8% |   |   |   | 485,205 |   |   |   | 8% |   |   |   | 263,699 |   |
| Depreciation and amortization       |   |                       | 1,080,607 |   |              |   | 12% |   |   |   | 947,781 |   |   |   | 16% |   |   |   | 132,826 |   |
| Total operating expenses            |   |                       | 1,829,511 |   |              |   | 20% |   |   |   | 1,432,986 |   |   |   | 24% |   |   |   | 396,525 |   |
|                                |   |                       |      |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from Operations              |   |                       | 1,634,576 |   |              |   | 18% |   |   |   | 246,571 |   |   |   | 4% |   |   |   | 1,388,005 |   |
| Other (Expense) Income              |   |                       | (219,853  | )      |              |   | (2%) |   |   |   | 65,443 |   |   |   | 1% |   |   |   | (285,296 | ) |
| Income Before Income Tax Expense    |   |                       | 1,414,723 |   |              |   | 16% |   |   |   | 312,014 |   |   |   | 5% |   |   |   | 1,102,709 |   |
|                                |   |                       |      |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income Tax Expense                  |   |                       | 529,635   |   |              |   | 6% |   |   |   | 203,120 |   |   |   | 3% |   |   |   | 326,515 |   |
| Net Income                          |   | $                          | 885,088   |   |              |   | 10% |   |   | $ | 108,894 |   |   |   | 2% |   |   | $ | 776,194 |   |

| EBITDA:                                                                                         |   |   |      |   |   |   |      |   |   |
|-------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|     Net Income                                                              |   | $      | 885,088   |   |   | $      | 108,894   |   |   | $ | 776,194 |   |
|     Add Back:                                                               |   |   |      |   |   |   |      |   |   |   |   |   |
| Interest Expense                                                                                |   |   | 180,311   |   |   |   | 190,181   |   |   |   | (9,870 | ) |
|            Provision for income taxes    |   |   | 529,635   |   |   |   | 203,120   |   |   |   | 326,515 |   |
|            Depreciation and amortization |   |   | 1,080,607 |   |   |   | 947,781   |   |   |   | 132,826 |   |
| EBITDA                                                                                          |   | $      | 2,675,641 |   |   | $      | 1,449,976 |   |   | $ | 1,225,665 |   |

| Income Per Common Share:         |   |   |   |   |   |    |   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|---------|--------|--------|
| Basic                                                                    |   | $      | 0.04   |   |   | $  | 0.01   |   |
| Fully Diluted                                                       |   | $      | 0.04   |   |   | $       | 0.01   |   |

| Weighted average number of common shares outstanding(used to calculate basic and diluted income per share)        |   |   |       |   |   |   |       |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Basic                                                                                                                                                |   |   | 21,778,866 |   |   |   | 14,519,244 |   |
| Fully Diluted                                                                                                                                        |   |   | 22,397,806 |   |   |   | 14,519,244 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | For the Three Months Ended |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | March 31,                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2011                       |   |   | 2010 |
| BY SERVICE OFFERING:                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       |   |   |   |
| Fluid Management (1)                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       |   |   |   |
|     Closed Locations (6)                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                          | - |   |   | $ | 44,376 |
|     Continuing Locations (6)                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                       | 2,369,036 |   |   |   | 1,348,880 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       | 2,369,036 |   |   |   | 1,393,256 |
| Well Enhancement Services (2)                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                       |   |   |   |   |   |
|      Closed Locations (6)                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                       | - |   |   |   | 451,169 |
|      Continuing Locations (6)                                                                                                                                                                                                                                                                                                                                                                                                             |   |                       | 6,657,366 |   |   |   | 3,749,188 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       | 6,657,366 |   |   |   | 4,200,357 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       |   |   |   |   |   |
| Well Site Construction and Roustabout Services                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                       | 235,119 |   |   |   | 280,957 |
| Total Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                          | 9,261,521 |   |   | $ | 5,874,570 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       |   |   |   |   |   |
| Enservco has also determined that an understanding of the diversity of its operations by geography is important to an understanding of its business operations. Enservco only does business in the United States, in what it believes are three geographically diverse regions. The following table sets forth revenue information for the Company’s three geographic regions during the three month periods ending March 31, 2011 and 2010:  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | For the Three Months Ended |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | March 31,                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       | 2011 |   |   |   | 2010 |
| BY GEOGRAPHY:                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                       |   |   |   |   |   |
| Eastern USA Region (3)                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                          | 4,686,710 |   |   | $ | 1,894,739 |
| Rocky Mountain Region (4)                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                       |   |   |   |   |   |
|     Closed Locations (6)                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                       | - |   |   |   | 441,869 |
|     Continuing Locations (6)                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                       | 1,768,544 |   |   |   | 1,170,831 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       | 1,768,544 |   |   |   | 1,612,700 |
| Central USA Region (5)                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                       |   |   |   |   |   |
|     Closed Locations (6)                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                       | - |   |   |   | 53,676 |
|     Continuing Locations (6)                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                       | 2,806,267 |   |   |   | 2,313,455 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       | 2,806,267 |   |   |   | 2,367,131 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                       |   |   |   |   |   |
| Total Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                          | 9,261,521 |   |   | $ | 5,874,570 |

|   | (1) | Water hauling/disposal and frac tank rental. |
|--------|-----|----------------------------------------------|

|   | (2) | Services such as frac heating, acidizing, hot oil services, and pressure testing. |
|--------|-----|-----------------------------------------------------------------------------------|

|   | (3) | Consists of operations and services performed in the southern region of the Marcellus Shale formation (southwestern Pennsylvania and northern West Virginia). Heat Waves is the only Company subsidiary operating in this region. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Consists of Western Colorado and Northeastern Utah.  Heat Waves is the only Company subsidiary operating in this region. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Consists of Southwestern Kansas, Northwestern Oklahoma, Eastern Colorado and Northern New Mexico.  Both Dillco and Heat Waves engage in business operations in this region. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Closed locations are those locations where services have been discontinued as of March 31, 2011.  Open locations are those where services are continuing. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (1) | a reduction in labor costs due to policies enacted restricting overtime and unbillable “shop” time; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (2) | a decrease in worker’s compensation insurance premiums due to a decrease in our experience modification factor arising from an increased attention to worker safety and therefore a reduction in the number of accidents; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | a decrease in equipment insurance expenses resulting from renewing policies at lower rates; and |
|--------|-----|-------------------------------------------------------------------------------------------------|

|   | (4) | obtaining discounts through major vendors for heavily used goods such as diesel and propane. |
|--------|-----|----------------------------------------------------------------------------------------------|

----

----

|                                                                                            |   | For the Three Months Ended |      |   |   |   |
|-------------------------------------------------------------------------------------------------|--------|----------------------------|-----------|--------|--------|--------|
|                                                                                            |   | March 31,                  |      |   |   |   |
|                                                                                            |   | 2011                       |      |   | 2010   |   |   | Increase (Decrease) |   |
|                                                                                            |   |                       |      |   |   |   |   |   |   |
| Net Income                                                                                      |   | $                          | 885,088   |   |   | $      | 108,894 |   |   | $ | 776,194 |   |
| Add Back:                                                                                       |   |                       |      |   |   |   |   |   |   |   |   |   |
| Interest Expense                                                                                |   |                       | 180,311   |   |   |   | 190,181 |   |   |   | (9,870 | ) |
|            Provision for income taxes    |   |                       | 529,635   |   |   |   | 203,120 |   |   |   | 326,515 |   |
|            Depreciation and amortization |   |                       | 1,080,607 |   |   |   | 947,781 |   |   |   | 132,826 |   |
| EBITDA                                                                                          |   |                       | 2,675,641 |   |   |   | 1,449,976 |   |   |   | 1,225,665 |   |
| Add Back (Deduct):                                                                              |   |                       |      |   |   |   |   |   |   |   |   |   |
| Stock-based compensation                                                                        |   |                       | 49,681    |   |   |   | - |   |   |   | 49,681 |   |
| (Gain) loss on disposal of equipment                                                            |   |                       | 44,286    |   |   |   | (7,125 | ) |   |   | 51,411 |   |
| Unrealized derivative gain                                                                      |   |                       | -         |   |   |   | (13,078 | ) |   |   | 13,078 |   |
| Interest and other income                                                                       |   |                       | (4,744    | )      |   |   | (235,421 | ) |   |   | 230,677 |   |
|  Adjusted EBITDA*                                                                          |   | $                          | 2,764,864 |   |   | $      | 1,194,352 |   |   | $ | 1,570,512 |   |

----

|                                             |   | For the Three Months Ended |       |   |        |   |
|--------------------------------------------------|--------|----------------------------|------------|--------|-------------|--------|
|                                             |   | March 31,                  |       |   |        |   |
|                                             |   | 2011                       |       |   | 2010        |   |   | Increase (Decrease) |   |
|                                             |   | (Unaudited)                |       |   | (Unaudited) |   |   |   |   |
|                                             |   |                       |       |   |        |   |   |   |   |
| Net cash provided (used) in operating activities |   | $                          | 2,340,846  |   |        | $      | (25,867 | ) |   | $ | 2,366,713 |   |
| Net cash (used) provided in investing activities |   |                       | (699,404   | )      |        |   | 360,990 |   |   |   | (1,060,394 | ) |
| Net cash used in financing activities            |   |                       | (1,322,752 | )      |        |   | (117,653 | ) |   |   | (1,205,099 | ) |
| Net Increase in Cash and Cash Equivalents        |   |                       | 318,690    |   |        |   | 217,470 |   |   |   | 101,220 |   |
|                                             |   |                       |       |   |        |   |   |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Period   |   |                       | 1,637,807  |   |        |   | 148,486 |   |   |   | 1,489,321 |   |
|                                             |   |                       |       |   |        |   |   |   |   |   |   |   |
| Cash and Cash Equivalents, End of Period         |   | $                          | 1,956,497  |   |        | $      | 365,956 |   |   | $ | 1,590,541 |   |

|                                                        |   | March 31,   |       |   | December 31, |   |       | Increase   |   |
|-------------------------------------------------------------|--------|-------------|------------|--------|--------------|--------|------------|------------|--------|
|                                                        |   | 2011        |       |   | 2010         |   |       | (Decrease) |   |
|                                                        |   | (Unaudited) |       |   |         |   |       |       |   |
|                                                        |   |        |       |   |         |   |       |       |   |
| Current Assets                                              |   | $           | 7,804,724  |   |         | $      | 7,375,954  |       |   | $ | 428,770 |   |
| Total Assets                                                |   |        | 22,674,160 |   |         |   | 22,620,876 |       |   | $ | 53,284 |   |
| Current Liabilities                                         |   |        | 5,838,554  |   |         |   | 6,223,475  |       |   | $ | (384,921 | ) |
| Total Liabilities                                           |   |        | 17,215,293 |   |         |   | 18,015,432 |       |   | $ | (800,139 | ) |
| Working Capital (Current Assets net of Current Liabilities) |   |        | 1,966,170  |   |         |   | 1,152,479  |       |   | $ | 813,691 |   |
| Stockholders’ equity                                  |   |        | 5,458,867  |   |         |   | 4,605,444  |       |   | $ | 853,423 |   |

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|   | 1. | An increase of cash by $1.6 million due to a) approximately $0.4 million remaining from the $1.0 million draw on the new equipment loan facility with our primary lender which was entered into in order to fund capital expenditures in late 2010 and early 2011 (the accompanying increase in our debt is reflected on our balance sheet as a long term liability), b) approximately $0.7 million received from customers due to the high monthly revenues in December 2010 and Q1 2011, and c) approximately $0.6 million from the receipt of Aspen and Dillco Income Tax refunds in Q1 2011; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | An increase in accounts receivable of $1.6 million due primarily to the revenues earned from our heating and water hauling operations initiated in the Marcellus Shale region in late 2010 and early 2011; |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | An increase of $130,000 in prepaid expenses and other currents assets resulting primarily due to the Heat Waves & Dillco insurance renewal in Q1 2011 (an increase of $280,000) offset by a decrease of $135,000 in the value of investments acquired during the Merger Transaction due to unrealized losses at March 31, 2011; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | An decrease in the related party payables balance of $135,000 due to a final payment of the balance during the period; and |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

|   | 5. | A decrease in the outstanding balance on our revolving line of credit of approximately $2.0 million. |
|--------|----|------------------------------------------------------------------------------------------------------|

|   | 1. | A decrease in the income tax receivable balance of approximately $200,000 due to the Dillco tax refund received in early 2011; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | An increase in accounts payable of approximately $340,000 due to the timing of expenses incurred during the beginning of the heating season (e.g. propane, diesel, travel, and other cost of goods in late 2010 and early 2011); |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | An increase in income taxes payable of $400,000 due to the provision for income taxes recognized in 2011; |
|--------|----|-----------------------------------------------------------------------------------------------------------|

|   | 4. | An increase in accrued expenses of approximately $290,000 due to a) the accrual related to the  2010 - 2011 manager and hourly bonus plans, which was enacted November 2010 of approximately $110,000,      b) accrued interest on our subordinated debt of approximately $60,000, and c) an increase in accrued payroll and vacation of approximately $120,000 due to timing of year-end and additional employees hired in the second half of 2010; and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | An increase in the current portion of long-term debt of $2.5 million due to a) approximately $200,000 for the current portion of long-term debt associated with the $1.0 million draw on the equipment loan, and b) an increase of approximately $2.3 million in the current portion of long-term debt as a result of principal that will become due beginning in July of 2011 on the Company’s $9.1 million term loan with our primary lender. (There were no current maturities at March 31, 2010 on this term loan as payments are interest only until June 2, 2011. Beginning July 2011, fixed monthly payments for this term loan begin and a one-time $1 Million dollar pay-down is required.) |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Level 1: | Quoted prices are available in active markets for identical assets or liabilities; |
|--------|----------|------------------------------------------------------------------------------------|

|   | Level 2: | Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; or |
|--------|----------|-----------------------------------------------------------------------------------------------------------------------|

|   | Level 3: | Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------|

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| Exhibit No. |   | Title                                                                                                                                                                                                               |
|-------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                                                                |
| 31.1        |   | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Michael Herman, Chief Executive Officer).                                                                                             |
| 31.2        |   | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rick D. Kasch, Chief Financial Officer).                                                                                              |
| 32          |   | Certification Pursuant to 18 U.S.C. §1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Michael D. Herman, Chief Executive Officer, and Rick D. Kasch, Chief Financial Officer). |

|                         |                                       |
|------------------------------|--------------------------------------------|
|                         |                                       |
|                         | ENSERVCO CORPORATION                       |
|                         |                                       |
|                         |                                       |
|                         |                                       |
|                         |                                       |
| Date:  May 6, 2011 | /s/ Michael D. Herman                      |
|                         | Michael D. Herman, Chief Executive Officer |
|                         |                                       |
|                         |                                       |
| Date:  May 6, 2011 | /s/ Rick D. Kasch                          |
|                         | Rick D. Kasch, Chief Financial Officer     |
|                         |                                       |
|                    |                                       |
|                         |

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