The Bakken Oil Report Inaugural 2011 by DEL Communications Inc.

Harold Hamm, Chairman and CEO of Continental Resources celebrates success of Bakken boom

60 years later, oil still shaping North Dakotaâ&#x20AC;&#x2122;s destiny

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2011 CONTENTS

OIL REPORT 2011

Heading west: The Bakken oil play

The Bakken’s impact: Bringing businesses, people and wealth to North Dakota

Published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba Canada R3L 0G5 www.delcommunications.com President DAVID LANGSTAFF Associate Publisher JASON STEFANIK

60 years later, oil still shaping North Dakota’s destiny

Unlocking the Bakken: How new ideas roused a sleeping giant

Success of Divide County well helped launch current Bakken Boom

Enerplus: Focusing on the Bakken/tight oil play as a growth area

Capital Lodge opens amenity-packed crew facility in Tioga

North Dakota Petroleum Council hosts the 20th Williston Basin Petroleum Conference & Expo

Booming Minot seeks to accommodate oil companies

Bakken Formation represents significant frontier for domestic energy development

Welcome to the new frontier! Frontier Energy Group invests in local Bakken communities

BNSF Railway serves the transportation needs of the Bakken shale market

Production services provided by S.G. Bennett Marketing Services www.sgbennett.com

Moving forward as ND hits record rig count: Enbridge Pipelines (North Dakota) LLC Bakken Expansion Program

Art Director / Design KATHY CABLE

Wanzek builds on 40 years of industrial, civil, oil & gas experience in the Williston Basin

MDU Resources Group celebrates 85 years of service to the Bakken area

Made in America: Don-Nan Pump & Supply

Oilfield Integrators: An industry leader

Badger Daylighting: Proud to be the Bakken’s largest provider of non-destructive hydro-excavating services

Pioneer Drilling offers partnership-based approach to clients

MAC Heaters: ‘Your reliable heat source’

CanElson: Building the drilling leadership of tomorrow

North Dakota Friefighter’s Association: Prospective

Six Gun Hotshot responds to increased demand for hauling services

Badlands Integrity Group: Safety compliance and HR management

Innovative containment system saves the oil industry time and money

Camex oilfield equipment big in the Bakken

Pat’s Off-Road Inc. provides frac heating services to Bakken oilfield production companies

Finally, a GOS navigation solution designed specifically for the U.S. oil and gas industry!

Secondary containment company TCA proud to serve the Bakken industry

Whatever you need, you can trust Brock White to deliver

When support matters, you can trust Peterson Equipment company

Quality Mat Company installs patented, interlocking mats in the Bakken oilfield

100

Calfrac Well Services breaks ground in the Bakken

102

Locally owned Petroleum Services offers many products and services to clients

104

ON THE COVER Cover photo credit: John Nervig Photography 803 - 1st Avenue E., Williston, ND 58801 Email: jcnervig@gmail.com | www.johnnervigphotography.com 4 | BAKKEN OIL REPORT 2011

Managing Editor KATRINA A.T. SENYK katrina@delcommunications.com Toll Free: 1.866.403.5467 Advertising Sales GLADWYN NICKEL DAYNA OULION ANTHONY ROMEO COLIN JAMES TRAKALO __________________________

Advertising Art DERYN BOTHE DANA JENSEN JULIE WEAVER ______________________ © Copyright 2011 DEL Communications Inc. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without prior written consent of the publisher. While every effort has been made to ensure the accuracy of the information contained herein and the reliability of the source, the publisher in no way guarantees nor warrants the information and is not responsible for errors, omissions or statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees.

Publications mail agreement #40934510 Return undeliverable Canadian addresses to: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, MB R3L 0G5 Email: david@delcommunications.com PRINTED IN THE U.S.A. | 09/2011

www.nabors.com

MESSAGE

Montana Governor Brian Schweitzer.

Heading west: The Bakken oil play

astern Montana is on the verge of experiencing one of the nation’s largest energy developments, the Bakken oil and gas field. The largest hydrocarbon play in the continental U.S. in decades, and possibly the largest in history, the Bakken shale formation is found some 10,000 feet below the grassy plains of eastern Montana, western North Dakota, southwest Manitoba, and southern Saskatchewan, and may hold up to 400 billion barrels of light, sweet crude oil. “Landmen” in the oil industry have been filling courthouses across eastern Montana, buying up leases. Why? Because in addition to the oil, when you add up all the facts, Montana is a great place to do business. We have all heard of the growth associated with the Bakken in North Dakota, and now the activity is really starting to move west. Bakken developers are poised to take advantage of Montana’s competitive tax structure. According to the conservative Tax Foundation state rankings, Montana has the sixth-best business tax climate in the nation, number one among Bakken oil states. Those who know the oil industry well will tell you that drilling takes place where the oil is – where the geologic formation is most accessible. The layer of petroleumbearing shale in the Bakken is thicker in 6 | BAKKEN OIL REPORT 2011

North Dakota, and it is also under more

producers. I worked hard to get this on-

natural pressure than in Montana, so that

ramp integrated into the system to provide

play has been producing the most wells and

relief from the bottleneck that has restricted

highest yields. But when those wells drop in

market access for Bakken and other oil

production, exploration is going to move

produced in Montana and North Dakota;

west. If the aggressive leasing going on in

producers will no longer be forced into a

Montana right now is any indication, we are

discounted rate for their product. This on-

starting to see that shift.

ramp means a better price, more oil

Making the move even more attractive,

produced, more money spent on Main

industry has been pleased that Montana has

Street Montana, more taxes paid, more

a lower tax burden per barrel of oil

jobs, and more economic growth.

produced. A recent study conducted by the

Finally, all of Montana’s employers are

Montana Department of Revenue found that

thrilled that we reformed Montana’s

over a four year period from 2005-2009,

workers’ compensation insurance system,

Montana’s average taxes paid per barrel of

saving businesses an average of 20 percent

oil were only $4.89/barrel, while North

on their workers’ comp expenses. In

Dakota’s were $5.27/barrel. That starts to

addition, I once again signed legislation that

add up when you are producing hundreds

reduced the business equipment tax. Both

of thousands, even millions, of barrels of oil.

of these factors will have a positive effect

Authentic producers of oil in the region

on the Bakken’s continued development and

have also affirmed that Montana’s efficient

on the businesses climate and job growth in

administrative structure and regulatory

our state.

environment makes the state a good place

Montana lies within the most important

to do business. A permit application in

energy corridor in the world. We have wind,

Montana takes about 60 days, under the

natural gas, coal, biofuels, solar,

statutorily allowed 75 days, while a permit

geothermal, hydro, and of course, oil.

in North Dakota takes, on average, the

The Bakken formation will increasingly play

statutorily allowed 365 days.

a central role in ending America’s

The construction of the Keystone XL

dependence on overseas oil, saving

pipeline, proposed to run across eastern

American lives and treasure while

Montana, would include a critical on-ramp

increasing our energy security and our

near Baker, Montana for Bakken oil

economic opportunities. ■

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MESSAGE

The Bakken’s impact: Bringing businesses, people and wealth to North Dakota By Andy Peterson, North Dakota Chamber of Commerce president and CEO

or the past six decades, the oil industry has been part of the mix of North Dakota’s economic engine. During the highs and lows of these 60 years of oil development, we have benefited from the jobs, people and wealth this industry has brought to our state. North Dakota’s current low unemployment rate, nearing three percent, and its $1-billion-plus budget surplus have drawn national attention. Business opportunities tied to the Bakken have expanded across the state, bringing with it a growth in investments in education, water projects and infrastructure. Through these years, the North Dakota Chamber of Commerce has been committed to growing and developing the business community across our state. In fact, North Dakota was recently named one of “America’s most pro-business states” according to the Pollina Corporate Top 10 Pro-Business States for 2011. The state was also this year’s most improved state in the business rankings, moving from number 18 to number three in the last three years. Recently, a North Dakota State University study examined the economic impact of oil development in North Dakota between 2005 and 2009. It concluded the petroleum industry nearly tripled in size during these years, and it estimated the

8 | BAKKEN OIL REPORT 2011

direct impact of oil and natural gas development grew from $1.29 billion to $4.9 billion in that time. Further, when the industry’s secondary impacts were factored in, the total business grew from $4.2 billion in 2005 to $12.7 billion in 2009. The study also showed direct employment opportunities in the industry grew significantly from an estimated 5,051 full-time equivalent positions in 2005 to 18,328 positions in 2009. The petroleum industry paid $821.8 million in state and local taxes in 2009, which helped provide property tax relief to all homeowners and support many public services. North Dakota residents also received $559 million in lease and royalty payments in 2009. In the two years since this study, the growth has continued to be even more significant. The current impact and development of the Bakken points to the likelihood that North Dakota is experiencing more than an oil boom, and it is likely this record oil production will continue years into the future. Currently, there are more than 5,000 producing oil wells in the state and up to 2,000 new wells are expected to be drilled in 2011. While this type of growth is not without its struggles, the positives of this strong development keep us optimistically looking toward future expansion and growth.

Andy Peterson, president of the North Dakota Chamber of Commerce. The North Dakota Chamber of Commerce views this as a valuable opportunity to grow and strengthen our state’s business community. During the past state legislative session that adjourned in May, we championed a reduction in corporate income taxes that will attract more business across the state. This was part of a nearly $490 million tax relief package that will continue to share the rewards of our state’s strong economy with North Dakota businesses and citizens alike. We welcome the new people and opportunities of North Dakota’s oil industry. The North Dakota Chamber is committed to working to grow these opportunities to make our state an outstanding place to live, work and do business. The North Dakota Chamber of Commerce is the state’s largest, most influential general business organization. It offers many programs and services to help businesses succeed in North Dakota. For additional information on North Dakota business and job opportunities, please contact the North Dakota Chamber at 1-800-382-1405 or visit www.ndchamber.com. ■

(701) 580-4327 Williston, North Dakota

(800) 873-3002 (EADQUARTERS s (OUSTON 4EXAS

60TH ANNIVERSARY

60 years later, oil still shaping North Dakota’s destiny By Andrea Winkjer Collin

orth Dakota officially became an oilproducing state 60 years ago on April 4, 1951, when a well drilled eight miles south of the Williams County town of Tioga struck black gold. Williston’s legendary newspaper photographer and editor William “Bill” Shemorry recalled that night in his 1991 book on the early days of the Williston Basin, “Mud, Sweat & Oil.” “The telephone rang in my apartment,” he wrote. “My ‘boss,’ Herman Zahl, publisher of the Williston Press-Graphic, was on the line. He sounded excited. ‘Bill,’ he said, ‘The Clarence Iverson well has come in. Get your camera and go out there. Take your hip boots because there’s a lot of snowmelt water.” The time was 7 p.m. Shemorry grabbed his camera gear, hip boots and tripod and headed north on Highway 2 in his 1950 Pontiac coupe. “When I reached the hill just west of Wheelock I could see the glow of a fire in the sky directly to the east,” he wrote. “I wondered if the well was on fire. I passed through Ray and headed east. The light of the fire was getting brighter. There was no problem finding the well site in the dark.” As he approached the well, he found that several hundred interested spectators had gathered along the road. With cars

Oil workers do a Silurian test at a McKenzie County well in 1967. PHOTO CREDIT: WILLIAM SHEMORRY PHOTOGRAPH COLLECTION STATE HISTORICAL SOCIETY OF NORTH DAKOTA.

10 | BAKKEN OIL REPORT 2011

The H.O. Bakken #1 well near Tioga, which was completed September 9, 1951, and which gave the Bakken Formation its name.

60TH ANNIVERSARY

PHOTO CREDIT: WILLIAM SHEMORRY PHOTOGRAPH COLLECTION, STATE HISTORICAL SOCIETY OF NORTH DAKOTA.

Tom Rolfstad, Williston Economic Development director.

Wes Norton, former North Dakota Oil and Gas Division director.

parked all over the shoulders of the road, there was no room to stop. “The drilling rig and surrounding area were lighted by a huge gas flare. It was almost as if it were daylight. The big Loffland Brothers drilling rig stood before me. Its silver derrick was illuminated by the light of the flare and stood out in stark detail against the black night sky. In the foreground was a big pool of snow runoff water which had gathered in a low place. The night was still. Not a breath of wind. A perfect double image of the derrick and flare was reflected.” Shemorry got as close as he could, shooting photographs until his hip boots filled with water. His newspaper, The Williams County Farmers Press, ran Shemorry’s historic photo on the cover of the Thursday, April 5, issue, along with the headline, “Gas, Yes, and Oil, Too!” The headline above the article read: “Iverson Well Pumps 307 Barrels of 55 Gravity Crude Oil During 17 Hour Test, Amerada Reports.” That historic photo appeared in publications around the world, including Life and U.S. News & World Report

Nathan Conway, CEO, Ward Williston.

magazines. It symbolized a new chapter in North Dakota’s history and the beginning of an industry that is now driving not only the economy of the region, but also the nation. FOR 60 YEARS, THE INDUSTRY ADAPTS TO CHALLENGES The excitement of those early years of oil discovery in the Williston Basin resonated through towns and companies across the region. The influx of people to the area brought cultural diversity to western North Dakota. Amerada Oil Company established housing outside of Tioga for its workers, not unlike the man camps found in the area today. Oil companies scrambled to figure out how to get the oil to market. “There were no pipelines,” says Nathan Conway, CEO of Ward Williston, which drilled its first well, the William Gorder #1 in the North Westhope Field near Bottineau in October 1952. By then, 68 wells were operating in the state. Leonard Ward, one of the state’s oil pioneers, recognized the need to meet these infrastructure challenges and started

This photograph, which was published in the Williston Daily Herald, shows the derrick of the Clarence Iverson #1 test well, which was first erected on August 4, 1950. North Dakota’s first oil well produced more than 585,000 barrels of oil in 28 years. PHOTO CREDIT: WILLIAM SHEMORRY PHOTOGRAPH COLLECTION, STATE HISTORICAL SOCIETY OF NORTH DAKOTA.

The excitement of those early years of oil discovery in the Williston Basin resonated through towns and companies across the region. BAKKEN OIL REPORT 2011 | 11

60TH ANNIVERSARY

Bakken family portrait in 1951, from left: Harry, Mary and Henry. PHOTO CREDIT: WILLIAM SHEMORRY PHOTOGRAPH COLLECTION, STATE HISTORICAL SOCIETY OF NORTH DAKOTA.

to Missouri Basin Well Service. “We are proud of being one of the pioneers in the Williston Basin,” says Conway. “We weathered the storms and never left.” Still an exploration and production company, Ward Williston currently operates 150 wells in the Williston Basin, mostly in Bottineau, Renville and Burke counties.

one of the first well service companies. “Rail became a major means of transportation then. Ward Williston transported the first load of oil out of Westhope, and we are seeing history repeat itself with the heavy use of rail today,” says Conway. “Fortunately, a good

network of railroad tracks was already developed to handle the state’s grain transportation and the industry was able to bring in oil cars on those tracks.” Ward Williston continued its well service business in the Williston Basin until recently selling that division of its company

TIOGA, WILLISTON REMAIN IN INDUSTRY’S BULLS-EYE As they were in the early 1950s, two of the towns that remain in the bulls-eye of North Dakota’s oil activity are Tioga and Williston. Boom and bust cycles have driven the industry, and they have impacted the wellbeing of these and other regional towns. A major challenge today in Tioga, the official “Oil Capital of North Dakota,” is not unlike what other communities are facing – housing. Population estimates for the town, which was listed at 1,200 in the 2010 census, is now closer 1,500. Mayor Nathan Germundsen, who has led the city for 14 months, says the town is meeting that challenge with several housing developers. “We have some real nice housing coming to Tioga,” he says. “The developers have been good to work with.” Some new homes will be ready by the end of this year, and Germundsen says other low-to-moderate income units will be complete in the spring. Several older

Aerial view of and Amerada camp for workers outside of Tioga, North Dakota, in the 1950s. PHOTO CREDIT: WILLIAM SHEMORRY PHOTOGRAPH COLLECTION, STATE HISTORICAL SOCIETY OF NORTH DAKOTA.

12 | BAKKEN OIL REPORT 2011

60TH ANNIVERSARY

buildings on Tioga’s Main Street are being renovated into office and retail space, and there are plans for more commercial development on the north end of town. South of town off Highway 40, the cityowned industrial park has attracted offices of many well-established oil companies, which join the large Hess Corporation office complex north of town. “We also are being proactive in addressing infrastructure needs with a master plan, and are working on a new water storage facility and repairs to the lagoon.” A lifelong Tiogan, the 31-year-old Germundsen doesn’t remember the area’s two other boom cycles of the early 1950s and 1980s. But the mayor says he has a good feeling about where Tioga is headed. “A lot of great people are moving here, and when they bring their families it brings more stability. We have a good city commission, and this boom has given us a fresh outlook. It’s exciting and has plenty of challenges, but I’d rather be dealing with these issues instead of those associated with no growth.” Unlike Germundsen, Williston Economic Development director Tom Rolfstad does remember the challenges faced by the area when the bottom dropped out of the 1980s boom. A Williston native, Rolfstad was born the year after oil was discovered in the state. He grew up on what was then the edge of town just north of 11th Street East, in a subdivision developed to house the Amerada Oil staff and other industry workers who came to town. One of the most visible leaders trying to help the region navigate through the challenges and opportunities of the past few years, Rolfstad sees differences with this current oil boom. “These anniversaries are important to celebrate. Oil has been part of our economy for 60 years, but with this new activity in the Bakken, I see a paradigm shift that is pointing to this industry being strong for another 60 years.” Along with the challenges, Rolfstad

But the mayor says he has a good feeling about where Tioga is headed. “A lot of great people are moving here, and when they bring their families it brings more stability. We have a good city commission, and this boom has given us a fresh outlook.

Still producing after 60 years

Exploration and Production ŏ Operator ŏ Enhanced Oil Recovery Joint Ventures ŏ Acquisitions

(248) 594-6622 www.wardwilliston.com “The business of oil since 1952”

BAKKEN OIL REPORT 2011 | 13

60TH ANNIVERSARY

Oil well in Tioga, North Dakota. PHOTO CREDIT: WILLIAM SHEMORRY PHOTOGRAPH COLLECTION, STATE HISTORICAL SOCIETY OF NORTH DAKOTA.

The difference with this oil boom, he says, is the advancement of horizontal drilling and hydraulic fracturing technology. “We always knew there was a lot of oil in the Bakken. We just needed to figure out how to get it out.”

says “the past few years have brought a breath of fresh air here.” One key difference he sees from the 1980s when Williston took a big hit when the boom ended is that more governments, businesses and people from across the state and nation are understanding the significance of this current oil play. “There are more private-sector investors, and the state is stepping forward to shoulder some of the infrastructure risk. They realize that our success can be their success as well.” “Our biggest challenge right now is our rapid growth,” he says. The number of motel rooms has doubled and will soon double again. The city’s population of 12,500 in the 2000 census is now close to 19,000. “We will be at 25,000 before we know it.” In mid-September, the Williston City Commission voted to establish a six-month

moratorium on approving new man camps to allow infrastructure needs to catch up with the demand. “Our ultimate goal is to be a more familyfocused community,” says Rolfstad. “We believe the best employees the oil industry has are those who come home to their families at night.” Rolfstad is also impressed with the quality of the state and regional elected leaders. “We’ve never had a better city commission, and state and local legislators have spent a lot of time listening and caring and addressing our needs.” Likewise, he says the oil companies doing business in the region have been very helpful in understanding this boom. “This is an unconventional oil play, and we are guinea pigs of sorts as we see how it matures and continues to produce. In the

end, how well the oil companies treat us will determine how well we treat them.” INDUSTRY GROWTH TO CONTINUE Wes Norton, the former director of North Dakota’s Oil and Gas Division, now

An early Ward Williston winch truck hauls a heater treater. A winch truck owned by Ward Williston loads a test tank in the 1950s.

14 | BAKKEN OIL REPORT 2011

This Ward Williston water truck from the 1950s.

The cover of the April 5, 1951, Williams County Farmers Press heralds the beginning of a new era in North Dakota’s history. It shows the famous William Shemorry photograph that was published around the world.

The Amerada Hove well south of Tioga in June 1979. PHOTO CREDIT: WILLIAM SHEMORRY PHOTOGRAPH COLLECTION, STATE HISTORICAL SOCIETY OF NORTH DAKOTA.

known as the Department of Mineral Resources, began his career as a petroleum geologist in the state in 1960. He retired in 1998. A year and a half ago, he predicted the state’s rig count would increase to 150 within two to three years. However, the fact that a historic high of 200 rigs was reached in late August, ahead of his projections, doesn’t surprise him. “If there were more rigs available, there would be even more drilling.” The difference with this oil boom, he says, is the advancement of horizontal drilling and hydraulic fracturing technology. “We always knew there was a lot of oil in the Bakken. We just needed to figure out how to get it out.” Norton was a teenager living near Mandan when the Clarence Iverson #1 well came in. “It was an exciting time. But, even in the 1960s, we never thought North Dakota would be one of the country’s top oilproducing states.” Now number four in the country, Norton predicts that one day North Dakota will become the second, behind only Texas. ■

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www.bradymartz.com BAKKEN OIL REPORT 2011 | 15

MONTANA PETROLEUM ASSOCIATION

Unlocking the Bakken How new ideas roused a sleeping giant By David A. Galt, Montana Petroleum Association

PHOTO COURTESY OF THE MONTANA BOARD OF OIL AND GAS CONSERVATION.

of new discovery than of application of new

discovery of the oil field initially called it the

ideas, new drilling techniques and new

“Sleeping Giant” on his maps.

technology. And while much of the most

he Billings-based geologist who is credited with the break-through

Today, that field in Richland County,

The Bakken is a success story born less

recent U.S. Bakken activity has been in

Montana is better known as Elm Coulee, a

North Dakota, the opportunity Findley helped

play that, through 2010, has produced more

unlock in Richland County bodes well for the

than 105 million barrels of oil.

Montana oil and gas industry – and for all

But geologist Richard Findley’s initial map may still be the more apt description of

Montanans – for decades to come. The Bakken is one of many

the Bakken oil play evolution. For decades, it

hydrocarbon-producing formations in the

was a sleeping giant. And no one knew quite

Williston Basin, a sedimentary basin

how to get it moving.

covering parts of Montana, North and South

No more. 16 | BAKKEN OIL REPORT 2011

Dakota and two Canadian provinces. It’s

about 360 million years old and fairly thin as strata go, less than 150 feet at its thickest and encountered about two miles below the prairie lands at the surface. Geologists have known there was a lot of oil in the Bakken formation for more than half a century. Oil was first discovered in the Williston Basin in 1953 by geologist J.W. Nordquist. Oil companies have drilled through the Bakken for decades using traditional vertical wells, and a good bit of oil has been extracted that way. But as thin and deep and hard as the Bakken shale is, the real opportunity there was never going to be realized with vertical wells. Several things needed to happen for the Bakken to be fully appreciated. By 1974, during the oil “crisis” of that time, the Bakken attracted some attention as the United States began to reconsider its increasing reliance on foreign oil sources. But it was not until the mid-nineties that the U.S. Geological Survey assessed the formation. Geologist J.W. Price, the Denver-based geologist who conducted the field assessment for the USGS in the nineties, suggested the Bakken shale held between 271 billion and 503 billion barrels of oil, an astonishing number. But Price died before his work could be peer-reviewed, so it was never published. Nevertheless, it accelerated interest in the area. The problem in the Bakken was getting

MONTANA PETROLEUM ASSOCIATION

PHOTO COURTESY OF SM ENERGY.

the oil out, and doing so in a commercially viable way. Initially, Price’s unpublished work in 1995 estimated the amount of oil technically recoverable from the Bakken was about 151 million barrels. Horizontal drilling, which had been in use since the 1980s, held promise for unlocking more of the Bakken. In the early 1990s, a horizontal play targeted the upper Bakken shale, mostly in North Dakota, but available technology limited the length of the horizontal laterals to a few hundred feet. Although the play was generally considered uneconomic, it set an early precedent for future horizontal drilling in the Bakken. Richard Findley’s work built on that base, and rising oil prices helped with the economics. In interviews published in the magazine Geo ExPro, Findley recounted mapping what he called Sleeping Giant (Elm Coulee) “as a possible continuous accumulation over 64 kilometers long and seven kilometers wide.” After being less than overwhelmed with 18 | BAKKEN OIL REPORT 2011

some initial wells that were drilled, Findley worked with Lyco Energy Corp. and Halliburton to bring a marriage of horizontal drilling and hydraulic fracturing to the tight oil layer of the Bakken. Hydraulic fracturing techniques are used to liberate oil from rock and provide the porosity needed for production. The practice has been part of oilfield operations since the 1920s in cased, vertical wells, but only in the last decade or so have those techniques been developed to allow operators to efficiently apply this technology to horizontal wellbores. The Findley group’s first horizontal well, the Burning Tree State, spudded in March 2000, drilled 500 meters laterally along the middle Bakken member, according to the Geo ExPro account. Then the Halliburton trucks arrived with sand, water and diesel power, and the fracing process began. The well started the boom that is still growing. Lyco, the early player, was bought by Enerplus Resources in 2005, and since

then, the company has increased its operations in “Sleeping Giant” to 200 wells. In less than a decade, the horizontal drilling and fracing techniques used in the Bakken have been refined to the point that oil company representatives from other countries routinely come here to learn from the companies working the Bakken oil play. Wells are now often drilled several thousand feet laterally and successfully fracked with several stages. Moreover, as a Marathon Oil executive pointed out in an interview with the Associated Press, the time it takes to drill a well in the Bakken “has dropped from 55 days four years ago, to 20 days now.” In 2008, USGS raised its estimates of technically recoverable oil in the Bakken to more than 3.65 billion barrels, or nearly 25 times the 1995 estimate. USGS will begin a new assessment this October. Richard Findley told Geo ExPro that since the 2008 USGS reevaluation, “frac technology has advanced and, combined with the potential of the Three Forks Formation (below the Bakken), I believe their assessment is greatly understated.” Robust oil prices, continuing improvements in drilling technology and the price efficiencies that would come from completion of TransCanada’s XL pipeline all will play important parts in determining just how big the Bakken will become, but the ripple economic benefits for citizens in North Dakota and Montana are already reaching well beyond the Bakken. Montana’s first oil and gas lease sale for fiscal year 2012, which occurred early in September, generated $7.9 million in lease

MONTANA PETROLEUM ASSOCIATION

sales on school trust lands – the fourthlargest auction since the 1970s. The Great Falls Tribune noted in its report on the sale that going into the 2012 receive $5 million in oil and gas lease revenue. With just the first sale completed, and three more to go, the state is already $3 million ahead of its projection. Leases were sold in 20 counties across the state, an indication that interest in duplicating recent successes in oil production in northeast Montana is spreading to central Montana, according to state and industry officials. Public schools will get the money from the lease sales.

IMAGE COURTESY OF THE MONTANA PETROLEUM ASSOCIATION.

fiscal year, Montana was projected to

It is through those contributions – from support for community schools, to job creation, to greater energy independence, and by finding innovative solutions for old problems – that the promise of the Bakken years to come. About the Author: David A. Galt is executive director of the Montana Petroleum Association, a trade association whose members include oil and natural gas producers, gathering and pipeline companies, petroleum refineries and service providers and consultants. Reach him via email at dave@montanapetroleum.org or by phone at 406-442-7582. ■

IMAGE COURTESY OF THE MONTANA PETROLEUM ASSOCIATION.

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CONTINENTAL RESOURCES

Success of Divide County well helped launch current Bakken Boom Harold Hamm, chairman and CEO of Continental Resources.

uring this year’s 60th anniversary of oil discovery in North Dakota, the significance of another well, located 40 miles north of the state’s first Clarence Iverson #1, is also being recognized. In March 2004, Continental Resources’ Robert Heuer 1-17R in Divide County was the first commercially successful well in the North Dakota Bakken to be both horizontally drilled and fracture stimulated. “After many failed attempts, this one proved that a Bakken well could be a commercial success,” says Harold Hamm,

chairman and CEO of Continental Resources. “It helped usher in a new era in the American oil industry by unleashing the development of the enormous Bakken oil field.” In the seven years since the Robert Heuer 1-17R was completed, oil activity in the Bakken and its adjacent fields has reenergized North Dakota’s economy. On August 26, for the first time in its history, the state reached 200 active drilling rigs. The count had been rising steadily since October 5, 2010, when it broke the previous high

record of 147 active drilling rigs that was set in October 1981. Hamm says the significance of unlocking the potential of the Bakken resonates far beyond North Dakota’s borders. “Its success reversed a 40-year decline in American oil production and has helped reduce America’s dependence on imported oil. It is dispelling the myth that America is running out of oil.” In July, Continental Resources placed a monument at the Robert Heuer 1-17R well site, and Hamm brought together a number

Harold Hamm, second from left of the monument, with past and current crew at the Robert Heuer 1-17R in July. 20 | BAKKEN OIL REPORT 2011

CONTINENTAL RESOURCES

The Robert Heuer 1-17R well north of Tioga, North Dakota. of current and former crew members to commemorate its significance. The company has also placed a monument 15 miles northwest of the well at the Divide County Historical Society’s Pioneer Village in Crosby. Placing the monument at the Crosby park that honors the county’s pioneers is fitting, since Hamm is one of the pioneers in North Dakota’s current oil boom. After most oil companies left North Dakota when the activity of the early 1980s ended, Hamm drilled his first vertical Bakken well in 1989. He was the only operator in the world experimenting with horizontal drilling in the Cedar Hills prospect area in southwestern North Dakota when he started leasing in 1993, and he started drilling in the Red River B formation in 1995. Today, 22 years later, Continental Resources operates 24 rigs in North Dakota and owns the most leased acreage. The

company is the top oil producer in the

members working on the Robert Heuer 1-

Williston Basin and the second-largest

17R in 2004, Atkins joined in the

producer in the Rocky Mountain Region.

commemoration at the well site in July.

Russ Atkins is the area supervisor for

“Back in 2004, none of us thought it

the company’s operations in North Dakota

would become what it has,” Atkins recalls.

and Montana, and works out of the Sidney,

“At that time, the Montana Bakken was really

Montana office. As one of the crew

firing up around Richland County. But

L ea der ship Continental Resources is at the forefront of the exploration and production of oil and natural gas resources in the United States and is the second largest producer of crude oil in the Rocky Mountain region. Using the l at e st t echnology in hor i z ont al dr illing , we are lea ding the development of key oil and natural ga s resources in the continent al U.S., including the Woodford resource play in Oklahoma and the most sought-after oil play in the nation, the Bakken resource play in North Dakota and Montana. We are growing aggressively and are on track to triple the size of our company from 2009 to 2014. We have built a consistent record of success, finding significant new crude oil and natural gas resources, harvesting them in an environmentally responsible manner and investing in the communities where we work and operate. With our excellent, growing team of employees, we are leading the way to an even brighter future.

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BAKKEN OIL REPORT 2011 | 21

CONTINENTAL RESOURCES

Harold Hamm wanted to go into the North Dakota Bakken.” Atkins says Continental Resources’ big activity in the region then was at Cedar Hills near Baker, Montana. “It was our most ambitious effort to date, with 200,000 acres. I considered this Robert Heuer 1-17R job to be one of those wildcat wells that you have to do in the business. We drilled a short lateral 2,600- to 2,700-feet long, similar to what we had been doing in Montana. We fracked the well on March 2, 2004, and Harold Hamm was on location.” He says the first well flow tests did not show much. “We kept messing around with it and there were only traces of oil. But on March 8, it started flowing like crazy. Then it would slow down, and then flow some more. By today’s standards it was not much oil. But, back then 35 to 40 barrels a day was big.”

“This is what started it all in the North Dakota Bakken. In my world of petroleum engineering, this is ‘spindle top.’ It is an important part of history. I will always consider it very cool that I was able to be part of it.” All this time it remained a tight hole, Atkins says. “People were standing guard keeping the curious away. Harold had ordered complete secrecy. It was another six to eight months later when the well really started screaming. Then we knew we needed to hold on – it was going to get wild!” Since 2004, Atkins has watched the North Dakota Bakken continue to grow. The Robert Heuer 1-17R continues to produce today, and Atkins estimates Continental Resources has drilled some 150 wells in

Divide County alone. “We are still drilling new wells and the field hasn’t yet been completely defined. It’s going to be big for a long time.” Even though he has drilled hundreds of wells in his career, Atkins will always consider the Robert Heuer 1-17R, to be special. “This is what started it all in the North Dakota Bakken. In my world of petroleum engineering, this is ‘spindle top.’ It is an important part of history. I will always consider it very cool that I was able to be part of it.” ■

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Enerplus: Focusing on the Bakken/tight oil play as a growth area Dana Johnson, president of Enerplus USA.

The advent of horizontal drilling with hydraulic fracturing technology has enabled the Bakken resource to be unlocked economically.

hese are exciting times at Enerplus. The company is celebrating 25 years as a successful oil and gas producer and is positioning itself for the next quarter-century by forging ahead on major growth projects. It has built significant land positions in some of the most economic plays in North America, including the immense Bakken/tight oil play. “We’re interested in plays like the Bakken that offer scope, repeatable development, lower geological risk and strong upside potential. The Bakken produces a high-quality, light crude oil that attracts a good price. It all translates into great netbacks that will maximize the profitability of our business,” says Dana Johnson, president of Enerplus’s U.S. operations. “This play has and will continue to be a centerpiece of our growth strategy as it provides top-tier economics and long-term production, reserves and cash flow.” 24 | BAKKEN OIL REPORT 2011

Enerplus has certainly built a strong foundation for growth in the Bakken. It holds over 230,000 net acres of undeveloped Bakken land in both Canada and the U.S. Currently, growth is focused on Fort Berthold, in western North Dakota, where Enerplus holds 75,000 net acres of undeveloped land. The company is aiming to vault production in Fort Berthold from about 6,000 barrels oil equivalent per day (boe/day) currently to more than 20,000 boe/day by 2014. “This will require a lot of drilling and all the activity that goes with it,” says Johnson. “And while the weatherman hasn’t been our friend in recent months, we are ramping up activities with four operated rigs currently running at Fort Berthold. We’re looking to drill 26 horizontal wells at Fort Berthold during the remainder of 2011, targeting the Bakken and Three Forks formations.” Enerplus also continues to be a key Bakken player in Montana. In 2005, Enerplus acquired a strong initial position and built a knowledge base from its early position in the Elm Coulee play. Since then, it has drilled more than 150 wells in its Sleeping Giant field in Montana, with 2011 production expected to average about 8,000 barrels a day. In total, Enerplus expects to invest about $250 million in development activities in North Dakota and Montana this year alone. But the Bakken is not only a compelling

proposition to advance the company’s growth prospects, it’s also a dream job for the highcaliber team of geoscientists, engineers and land experts that Enerplus has assembled to execute the Bakken plan. “Our technical and business success is the result of an integrated team of professionals. Everyone brings something to the table here,” explains Johnson. “At Enerplus, professionals have the opportunity to get in on the ground floor of world-class resource plays. To help them succeed, we created a ‘Technical Chief’ role that brings in seasoned industry experts in geology and geophysics, reservoir engineering, as well as production and completions engineering. Our chiefs mentor project teams and promote the use of technologies that are both ‘tried-and-true’ and leading-edge to helping unlock our resource plays like the Bakken.” “Delivering results from great plays like the Bakken creates interesting jobs,” says Johnson. “I encourage candidates to check out the careers section of our website at www.enerplus.com to see all of our available positions.” “We’re a strong, growing company involved in exciting plays throughout North America. We have succeeded for over 25 years by investing wisely in new opportunities and developing them with skill and expertise. That’s a foundation upon which we can build.” ■

Enerplus is a successful North American oil and gas producer with a high-quality asset base in key plays like the Bakken in both North Dakota and Montana. We have a 25-year history and are actively investing in our assets for the future. We are committed to the responsible development of energy resources that ensures the health and safety of our workers, respects the environment and builds positive, long-term relationships in the community.

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CAPITAL LODGE

Capital Lodge opens amenity-packed crew facility in Tioga By Lisa Fattori

he recent boom in drilling activity in the Bakken region has led to significant shortages in housing and infrastructure in North Dakota communities. Housing the crews that work for oil and gas companies is particularly challenging, as it requires specially designed lodgings that are centrally located and that can be constructed quickly. Newly founded Capital Lodge LLC is meeting this need by developing three new facilities that cater to workers in the oil and gas industry. The company’s first crew lodging facility is situated in Tioga, North Dakota, just 6.3 miles east of Ray on Highway 2. Encompassing 80 acres, the Tioga crew facility opened for occupancy October 1st, and has a grand opening scheduled for early November. The first phase of construction began in July, with subsequent phases planned to accommodate a total capacity of 2,500 people. The idea to provide comfortable accommodations with the amenities of home was the brainchild of Capital Lodge’s four founding partners – Myer Stabinsky, Randy Baker, Chad Hansen and Kenny Lobell – all of whom had worked in the construction industry in the area, and who were familiar with the extensive travel times involved in getting to and from work. “Randy and I were staying in Bismark and working in Watford 26 | BAKKEN OIL REPORT 2011

City, which was a three-hour drive, just one way,” says Myer Stabinsky, managing partner for Capital Lodge LLC. “We knew the demand was there, and so purchased land in Tioga, which is in the heart of the Bakken.” Far from a “man camp,” the Capital Lodge facility offers extensive amenities so that lodgers have plenty of recreational and entertainment venues to enjoy during downtime. A focal point of the facility is a domed common area, complete with a swimming pool, hot tubs and a movie theatre. Lodgers also have the opportunity to play video arcade games, air hockey, foosball, volleyball and horseshoes, and there is a fully-equipped fitness center, where people can work out. The 900-footlong recreational center can be extended to house four pools, 64 hot tubs and four movie theatres by the facility’s final phase of development. “Before we designed this facility, we talked to a lot of people in different camps to find out what they like and don’t like,” Stabinsky says. “The general consensus was that they’d like to see bigger rooms and showers, and better food and amenities. A lot complained that there was nothing to do. Capital Lodge has a larger facility, so we’re able to offer these extensive amenities.” Also high on the wish-lists of

interviewed workers was the preference for Southern-style cooking, and Capital Lodge’s Tiago facility accommodates this special request. The facility’s dining room is modeled after a Las Vegas-style buffet, and has dedicated cooking stations for Southern cuisine, pizza and sandwiches, as well as an omelette station on weekends. There are indoor and outdoor dining areas and a 24hour snack bar. Living quarters at the Tioga facility are comprised of 32-foot by 76-foot modular units that can accommodate a maximum of 12 people. Three different room designs, for two single beds, two double beds or one double bed, include a common area and a four-piece bathroom with a five-foot shower. Each modular unit has seven bedrooms and a roomy common living/dining area with a kitchenette, which offers approximately 140-square-feet of shared space. In the future, if the facility is turned into a permanent subdivision, units can be removed to create required roadways, and remaining units would require very few retrofits to turn the space into a standard home. Capital Lodge has partnered with Morgan Chase Management, a professional lodging management company, to market the Capital Lodge campuses and manage the day-to-day operations of the facilities.

CAPITAL LODGE

“We saw many people sleeping in their cars and trucks, so it was very apparent where the need was. Capital Lodge facilities and their extensive amenities create a sense of normalcy for crew workers and provide all of the comforts of home.” Services include management of the dining room and amenities, 24-hour security, laundry services, maid services and carwash with vacuum services. Morgan Chase Management, together with Capital Lodge, consulted with the neighboring towns to find out how the facility could help support town services. In case of fire, for example, laneways between modular units were designed wide enough to accommodate a pump truck, and Morgan Chase Management is looking into providing a shuttle service to and from local communities to lessen the traffic volumes in these areas. “When we started our research, we didn’t just look at what workers wanted in a facility; it was equally important to find out what the local communities wanted, and to

minimize the facility’s impact on those communities,” says Richard Brown, director of operations for Morgan Chase Management. “We wanted to create an environment that is safe and secure, yet increases the economic prosperity of neighboring communities. It requires a fine balancing act, so that the workers within the facility and the people of the communities are all happy.” In August, the North Dakota State Land Department awarded $53.5 million through the Oil and Gas Impact Grant Fund for infrastructure development in fast-growing areas of the state, including Watford City, Tioga and Arnegard – a clear indication that the high demand for accommodations in these areas shows no sign of abating. In addition to its Tioga location, Capital Lodge is

planning a similar-sized facility in Watford City, and a smaller, single-family housing subdivision in Arnegard, which will cater to executives and their families, as well as teachers, doctors and other professionals all looking for permanent housing. Sales at the company’s Tioga facility have been brisk, with leases secured for close to 500 beds and more modular units already ordered. “In March and April, we spent a lot of time driving around and looking at the areas that were most in need of housing,” Brown says. “We saw many people sleeping in their cars and trucks, so it was very apparent where the need was. Capital Lodge facilities and their extensive amenities create a sense of normalcy for crew workers and provide all of the comforts of home.” ■ BAKKEN OIL REPORT 2011 | 27

ND PETROLEUM COUNCIL

20th Williston Basin Petroleum Conference & Expo By Kari Cutting, Vice President, North Dakota Petroleum Council

Clarence Cazalot, Marathon Oil Corporation chairman, president and CEO, was among the keynote speakers of the 2010 Williston Basin Petroleum Conference held in Bismarck, North Dakota.

tâ&#x20AC;&#x2122;s an exciting time for North Dakota, particularly in the Williston Basin where the Bakken and Three Forks shale plays continue to produce great results and capture the attention of the region and the country. For those interested in learning more about this valuable resource, the 20th annual Williston Basin Petroleum Conference & Expo to be held May 22-24, 2012 will provide the perfect opportunity. The conference will be held at the Civic Center in Bismarck, North Dakota. The North Dakota Petroleum Council will host the event along with the North Dakota Department of Mineral Resources and the Saskatchewan Ministry of Energy and Resources. Attendance for this international conference is anticipated to exceed 3,500 individuals. The Williston Basin Petroleum Conference & Expo began in 1992. The conference goal has been to provide an outstanding line-up of presenters at a great venue for local, regional, national and international industry leaders to gather and exchange new ideas and technology. In recent years, information exchanges have led to more efficient oil drilling and completion methods being implemented in the Bakken and Three Forks formations. The conference has grown throughout the years to become

More than 300 expo booths and outdoor exhibit spaces will be part of the 2012 Williston Basin Petroleum Conference. 28 | BAKKEN OIL REPORT 2011

ND PETROLEUM COUNCIL

Typical outdoor exhibits include pumpjacks, workover rigs, portable housing units, and other large equipment.

equipment. Past years’ outdoor exhibits have included workover rigs, housing units, construction equipment and industry related equipment and materials.

one of the most important events in North America for the oil and gas industry. The Williston Basin Petroleum Conference & Expo is held annually, with locations alternating between Saskatchewan and North Dakota. Every year, this conference brings together a wide array of

Registration information will be available online February 1, 2012, at www.ndoil.org. Please contact the North Dakota Petroleum Council with questions at 1-701-223-6380 or via email at ndpc@ndoil.org. ■

North Dakota and Saskatchewan announce the

Annual Williston Basin Petroleum Conference

May 22-24, 2012 x Civic Center x Bismarck, North Dakota

industry representatives, regulators and political leaders from across the United States and Canada, all with a vested interest in the Williston Basin. As always, the technical presentations will be a highlight of the conference, as industry experts from across North America share information on

for oil.org er d n . w ww d oth Visit vel an the a r t l , as hote details es. event e approach renc confe

all the hot topics surrounding the Williston

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The conference will include more than 75 presenters covering a wide array of topics such as the latest technology, engineering, geology, drilling, hydraulic fracturing techniques, pipelines and marketing. A Bakken/Three Forks Core Workshop will be offered on two occasions: Tuesday, May 22 and Thursday, May 24. In years’ past, these presentations have been of interest to many conference attendees and resulted in a fantastic turnout. The conference will also feature a CEO panel with participants Harold Hamm, Continental Resources chairman and CEO; N O R T H

Bud Brigham, Brigham Exploration Company

D A K O TA

PETROLEUM C O U N C I L

chairman and CEO; and Jim Volker, Whiting Petroleum chairman and CEO. The conference will feature an expo comprised of more than 275 indoor booths and 25 exhibits of large demonstrations and BAKKEN OIL REPORT 2011 | 29

PROFILE

MINOT

Booming Minot seeks to accommodate oil companies By Aaron Orlowski

s the largest city in the booming Bakken basin, Minot has transformed from a minor city in one of the least populous regions of the country to a central hub of the most significant new oil development in the United States. Minot’s comparative size and ideal location have brought oil companies – and significant development. “It’s helped really bolster our local economy,” says Jerry Chavez, president of the Minot Area Development Corporation. “And we see that with the addition of probably about 30 companies that in the last two-and-a-half years have elected to call Minot home,” including Hess Corporation,

Haliburton, Hunt Energy, Enbridge and Key Energy. In order to handle the oil companies that want to set up shop in Minot, city administrators are planning to continue centralizing industry in a dedicated industrial park. Large tracts of land that can house multiple companies will help the city cope with sprawl. The city’s plan is “to continue with an industrial park development so we are able to meet the needs of these companies as they come into Minot,” explains Chavez. “And we recognize that a park development is a good model in this community.” A common complaint in oil boom areas is

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that oil workers aren’t integrated into the community and the transient men – since few women work in oilfield jobs – damage local cities and towns more than they benefit them. But oil companies in Minot are looking to reverse that stereotype. “Many of these companies are looking for long-term commitments from employees,” Chavez states. “Not only workers, but also their families, come to live in this community.” Though the city itself is not in the heart of the Bakken basin – that heart is further west – many oil companies have chosen to set up bases in Minot because of the large array of services available there. Minot’s many amenities include an array of shopping venues, a regional hospital that employs more than 2,800 people – the most of any private business in Minot – Minot State University and an airport with now nine daily flights. Minot International Airport used to have only three flights daily, all to Minneapolis. Presently, there are seven daily flights to Minneapolis and two to Denver, with a third to be added in December. June through August, the airport set records in number of boardings each month, a trend city manager David Waind expects to continue. “A lot of that we would credit to oil impact,” says Waind. “It appears our numbers continue to grow each month.” Once they arrive, oilfield workers need a place to live, however, and lack of housing

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MINOT

and hotel space has put a strain on Minot’s housing market. “Housing is in short demand,” says Chavez. But, he adds, “We’re a community with infrastructure underneath, so we can put up homes relatively quickly.” The spring flooding wrecked swathes of housing in downtown Minot, but city administrators say that the oil development and skyrocketing housing prices have given locals hope that rebuilding will not only be healing but also lucrative. “Those properties will hopefully continue to see some growth in value as much as anything because of the pressure of growth in housing,” says Waind. “The hope is that the market here, which has been generated in great part by oil development, will continue.” This demand has caused housing in Minot to be more expensive than in the rest of the country. In the first quarter of 2011, the cost of living for housing was seven percent higher than the national average. Other costof-living indicators were significantly lower than national averages. “[The oil boom] has had a tremendous impact in terms of the housing market and the lack of housing. The apartment vacancy rate is near zero here. The competition for

the available spaces is very high and thus the rent is very high,” Waind explains. “We’re in the middle of a tough situation trying to get housing built, in order to meet that need.” The demand for housing is only matched by an equally low unemployment rate – and correspondingly high wages. At 2.7 percent, Minot’s unemployment is both lower than North Dakota’s three-percent rate and the nationwide rate of 9.1 percent. Though the potential labor pool in Minot is large – over 33,000 within commuting distance, out of nearly 70,000 people total, including the Air Force base and the university – the competition for workers has forced businesses to boost wages: a positive result for workers, but a difficult adjustment for businesses. “What we’ve tended to see is our employee wages increase,” says Chavez. “There’s a benefit to even the local folks with wages increasing. Obviously it helps. They have more disposable dollars and those dollars filter through the community.” The entire city feels the secondary effects of increased business. “We are a very strong economy, compared to the rest of the country,” says Chavez.

“Retail sales are in record-setting paces and have been for years. Every year surpasses the previous year,” Waind says. Hotel access, though currently limited, has been increasing and is slated to rise further. Currently, 1,900 hotel rooms are available, says Chavez, but Minot will have 13 hotels going forward. The spring floods that swept through downtown Minot, and drew the attention of a national audience to the fourth-largest city in North Dakota, have only further strained an already oil boom-stretched town. But oil companies, far from standing by the wayside, have stepped in to help rebuild downtown, giving time, expertise and money. Oil giant Hess Corporation donated $1 million to North Dakota flood relief efforts, in addition to other company’s charitable donations. Oil companies collaborated with barbecues to feed evacuees, hauled in semitruck loads of water and lent equipment to help fight the flood, says Chavez. “They saw this as an opportunity to lend some expertise in some areas,” says Chavez, in addition to the financial assistance. Actor Josh Duhamel, originally from Minot, raised flood-relief money by organizing a benefit concert by the Black Eyed Peas, of which his wife Fergie is a member. They, too,

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raised $1 million. The band is working on setting up a system both fair and equitable for dispersing the funds, says Waind. A voucher system is in the works for home renovations, water heaters and similar necessary items. Though city administrators recognize the money isn’t that much per evacuated resident, every bit

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helps for the devastated community. Not only celebrities are assisting – North Dakotans and people nationwide are contributing to the revival of the city integral to continued oil development in the region. “People are appreciative of friends and neighbors around the country,” says Waind.

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“People helping, rolling up their sleeves and helping.” ■

EERC

Bakken Formation represents significant frontier for domestic energy development New web-based Bakken Decision Support System to help users to see vital geological and production info By Darren D. Schmidt, P.E., Senior Research Advisor, Energy & Environmental Research Center (EERC)

nconventional oil, also referred to as

Energy Outlook 2011 forecasts domestic

8.5 million bpd. Therefore, tight oil has the

“tight” oil, sources such as the Bakken

production of all unconventional liquids at

potential to become a major component of

Formation represent a significant frontier for

1.95 to 5.42 million barrels per day (bpd) in

domestic oil production while contributing

domestic energy development. The U.S.

2035. This volume is in relation to current

greatly to the U.S. economy. Tight oil is

Energy Information Administration’s Annual

total crude oil and liquid fuels production at

produced in a similar manner to that of unconventional shale gas, which hit a critical mass in 2008, resulting in jobs, investment, and a secure supply of domestic energy. Today, tight oil produced from shale formations is driving industry investment, and unlike natural gas, additional domestic production offsets imports while maintaining strong pricing. Currently oil prices are expected to hover in the range of $80 to $100/bbl or more over the next two to three years. The growth of oil production from shale plays can be attributed to strong prices coupled with technological developments in multistage hydraulic fracturing and better geological understanding of the source rocks and surrounding formations that contribute to the production of tightly held hydrocarbons.

The EERC’s new web-based Bakken Decision Support System can be found at www.undeerc.org/Bakken/. 34 | BAKKEN OIL REPORT 2011

EERC

IMAGE COURTESY: THE ENERGY INFORMATION ADMINISTRATION BASED ON DATA FROM VARIOUS PUBLISHED STUDIES. UPDATED: MAY 9, 2011. WWW.EIA.GOV/OIL_GAS/RPD/SHALE_GAS.PDF.

the new infrastructure demands on the state

provide development history and identify

of North Dakota and eastern Montana is the

for oil production and transportation and the

areas of low or high production. Monthly

largest tight oil play in the United States,

needs for supporting the influx of people and

well production data are downloadable

producing over 300 million bbl to date. The

services.

through a subscription service to the North

The Bakken and Three Forks formations

U.S. Geological Survey, which estimated the Bakken Formation to contain 3.65 billion

The Energy & Environmental Research

Dakota Department of Mineral Resources,

Center (EERC) at the University of North

and the provision of additional well

Dakota has developed and launched a web-

completion data is planned for future

based geographic information system (GIS),

release. The website provides the latest

the “Bakken Decision Support System”

news feeds regarding oil and gas activity for

(BDSS). The BDSS conveniently assembles

the region. Educational material regarding

data for the Bakken and Three Forks

petroleum geology and oil and gas

Formations into a GIS application that

development is built into the application,

700,000 bbl/day in the next four to seven

enables the user to visualize geological and

along with relevant supporting publications.

years, surpassing both Alaska and

production information. Provided analytical

The website is publicly accessible at

California’s production, with Texas remaining

tools support the evaluation and

www.undeerc.org/bakken and was made

the highest-producing state. The growth in

interpretation of geological properties such

possible through support of the U.S.

North Dakota has been described as the

as thickness, depth, structure, and organic

Department of Energy’s National Energy

world’s largest construction project given

content. Production data can be utilized to

Technology Laboratory (NETL). ■

barrels of technically recoverable oil in 2008, is currently working to revise the projected resource potential. In North Dakota alone, 2010 production exceeded 85 million bbl. The North Dakota Department of Mineral Resources forecasts production to grow from the current 350,000 bbl/day to over

BAKKEN OIL REPORT 2011 | 35

FRONTIER ENERGY GROUP, LLC

Welcome to the new frontier! Frontier Energy Group invests in local Bakken communities By Jill Schettler

il first sputtered up from the Bakken region in 1951. And through the years, the black gold rush of the Badlands has encouraged multiple evolutions in homegrown innovation and technology, resulting in prosperity for its communities. In 2010 a confident industry player, Frontier Wellhead & Supply, underwent a significant evolution. A new name, Frontier Energy Group, LLC, and a fresh, new logo assured the Bakken community that the oilfield service provider was poised for the future and yet very much rooted in its rich history. To complete the facelift, the company adopted a new slogan to seal the deal: “Dedicated to the life of your well.” But for Frontier Energy Group, LLC, there is an equally important dual meaning

Frac tree.

Interior of Frontier shop.

36 | BAKKEN OIL REPORT 2011

to the company’s new slogan, and that is a genuine dedication to community. “Our business is focused on building from the great reputations of our subsidiaries while looking ahead at the company’s future,” says Don Eberhart, CEO at Frontier Energy Group, LLC. “And even though the company has grown leaps and bounds, we’re invested in the local communities in which our employees live and work.” The one-stop oilfield services provider is a direct reflection of community for Eberhart. “From our prospective, in order to have the best employees, it’s important to solidify our relationship with the community,” says Eberhart. “The communities will provide housing, entertainment, and good resources – all of those things are really important to what Frontier is.” From its opening 25 years ago in 1986 in Watford City, North Dakota, to the recent “tweets” of 2011, Frontier Energy Group, LLC, has evolved with the times, never straying from their communal roots. It’s the people, reiterates Eberhart; the people make the company. Soon approaching its 25th anniversary, the company can be proud of its rapid growth. Beginning as one location with a single employee and then developing to 16 locations with 125 employees (which is expected to double in the next few months), Frontier is proud of their dedication to the

FRONTIER ENERGY GROUP, LLC

growing needs of its 500 customers, and is

Frontier (Frontier Wellhead & amp, Frontier

pleased of their customersâ&#x20AC;&#x2122; reciprocation.

Slickline, Frontier Hot Oil, LLC); CO-based

Though headquarters is currently based

Cable (Cable, Inc., Cable Wellhead); and Luft

in Phoenix, AZ, the companyâ&#x20AC;&#x2122;s operations

Machine. Among the many products and

base remains in Watford City, the origin city

services are a broad range of API 6A and

of Frontier. The brand has grown to provide

API 6D Conventional Completion Systems

a range of services to companies of all sizes

(new and refurbished); installation and

through three main brands: ND-based

maintenance services; frac manifolds;

equipment rentals; wireline and slickline services, including wellhead equipment sales and installation; frac equipment rental; wireline and slickline services; fishing and rental tools; and now includes oilfield fabrication. If you need an old piece of nostalgia, chances are Frontier has it, says Eberhart. Their old boneyard has been known to have extra hard-to-get supplies on hand. â&#x20AC;&#x153;We had a call about a year ago from somebody looking for a part that they couldnâ&#x20AC;&#x2122;t find anywhere else in the country,â&#x20AC;? reflects Eberhart. â&#x20AC;&#x153;None of their suppliers had it, none of the big guys had it; and we had two of the parts sitting in our boneyard.â&#x20AC;? The Bakken has been dubbed â&#x20AC;&#x153;Americaâ&#x20AC;&#x2122;s new frontier.â&#x20AC;? And with that new frontier comes a fast-growing Frontier brand. Itâ&#x20AC;&#x2122;s a company that knows success is built on relationships. When asked what can be attributed to the success of the company, Eberhart makes the following list: fast feedback, being open 24/7, willing to go the extra mile, resourcefulness and dedication to employees and customers. â&#x20AC;&#x153;That is the Frontier way,â&#x20AC;? says Eberhart. â&#x2013;

DEL

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BNSF RAILWAY

BNSF Railway serves the transportation needs of the Bakken shale market

s U.S. oil exploration enters a new chapter with the Bakken Shale, BNSF Railway is along for more than just the ride. BNSF is providing effective transportation options for the growing Bakken Shale market. The Berkshire Hathaway-owned railroad is using its capacity and strategic location of its network to transport crude by rail. BNSF currently runs unit trains of sweet crude from the Bakken region to other parts of the country. “We believe our service brings value to the market,” said BNSF director of industrial products Michael Bruce. “It’s important for us to provide our customers the capacity and flexibility to serve multiple geographic markets.” BNSF’s footprint is convincing, as the railroad touts a 32,000-mile network that stretches from the Mississippi River to the West Coast. How well positioned is BNSF in the Bakken region? BNSF operates nearly 1,000 miles of its rail infrastructure that

40 | BAKKEN OIL REPORT 2011

extends through 16 of the top 19 oilproducing counties in central and western North Dakota. In addition, BNSF serves 61 stations in the Bakken region, including major North Dakota locations such as Williston, Minot, Stanley, Dickinson, Mandan, and also Glendive, Mont. CRUDE-BY-RAIL GROWTH BNSF’s network and its willingness to collaborate on developing optimal shipping solutions have contributed to this growing trend. What’s been the primary driver of the crude-by-rail opportunity? The industry’s pipeline network isn’t growing fast enough to move crude to destinations such as Cushing, Okla. and St. James, La, which serve the Midwest and Gulf markets. Simply put – existing pipelines cannot accommodate the growing volumes of crude that are being produced. In addition, rail offers the flexibility to easily divert the crude to other markets that aren’t served by pipelines.

“Our focus has been on helping enable our customers to reach these new markets through an efficient transportation solution,” Bruce said. “We work with shippers to determine their specific needs, then customize a solution to meet those needs.” BNSF’s first unit train of crude moved out of the Bakken region on Dec. 31, 2009. Since then, volumes have increased at a steady pace. In 2010 alone, BNSF shipped enough rail cars into and out of the Bakken region to stretch more than 500 miles. “Recent technological developments are allowing producers to increase their output from each well,” Bruce said. Preparations are already underway to accommodate that growth. Today, BNSF serves 30 facilities in the Bakken region. And an additional 18 Bakken-area facilities are currently in development. In less time than it will take potential customers to build loading infrastructure and secure railcars, BNSF will be capable of hauling nine daily unit trains – each consisting of 81,000 barrels of crude. Unit trains of crude can take a day to load, but often they are filled in less than 24 hours because of production efficiencies designed – with BNSF’s input – into the facilities. More than just transportation, BNSF provides best-practices consulting on rail-served facility development. MORE THAN JUST CRUDE Before the first barrel is pumped from a new well, BNSF is on-site, having transported inbound loads of drilling

BESTin the

BAKKEN

Who can ship 730,000 barrels of crude out of the Bakken every day? BNSF. EXPERTISE > Nobody knows the Bakken like BNSF. As the transportation leader in the region, we are successfully hauling increasing amounts of crude, LPG, sand and OCTG through 30 facilities on the BNSF today. And an additional 18 Bakken-area facilities are currently under development. In less time than it will take potential customers to build loading infrastructure and secure railcars, BNSF will be capable of hauling 9 daily unit trains — each consisting of 81,000 barrels of crude.

Tioga 52

Stanley

Williston

Minot

S nowden

STRATEGICALLY POSITIONED > With nearly 1,000 miles of rail lines in the Bakken region, our network is perfectly positioned to serve you. In fact, we touch 16 of the top 19 oil-producing counties in Central and Western North Dakota.

Lake Sakakawea 83 85

Beulah Glendive 94

Dickinson

Mandan

Ready to extract more information? It’s at bnsf.com/bakken.

CUSTOM SOLUTIONS > BNSF is also a driver of innovative solutions designed to meet our customers’ specific needs. Our experts can guide you, so that you can capitalize on the efficiencies of rail.

BNSF RAILWAY

materials, including drilling pipe, mud, sand and clay. And with increased demand for frac sand, new discussions are under way for keeping job sites in steady supply. In June, BNSF hosted a forum with shippers, receivers, transloaders and shortline representatives to discuss plans for how BNSF can best meet their needs amid the increasing sand volume levels. The concept of transporting unit trains of sand was addressed.

42 | BAKKEN OIL REPORT 2011

“It’s important for us to streamline this supply chain model,” said group vice president of industrial products Dave Garin. “Growth is happening so fast that we have to find a way to increase our delivery capacity.” The answer to that challenge is through a shift from individual carloads of frac sand to unit trains of frac sand. It’s a concept in to which BNSF customers are buying. Earlier this summer, BNSF moved its first unit train of sand into the Bakken region.

BNSF is resolved to meet a high level of expectations from its customers in the Bakken Shale. BNSF has a team of experts that works with customers who are investing in the Bakken to maximize the efficiencies of rail. The company takes that investment seriously. “Our customers have a lot at stake in this Bakken play,” Bruce said. “It’s up to us to deliver, and we’re in a good position to do so.” ■

trusted d to deli deliver ver e INTEGRITY, INTEG GRITY, KN KNOWLEDGE NOWLEDG GE & STRENGTH STRENGTH

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ENBRIDGE

Enbridge Pipelines (North Dakota) LLC Bakken Expansion Program Moving forward as ND hits record rig count

n some areas of the state, you probably don’t even know you’ve seen them. Maybe from the road as you’re driving, while you’re working outside or hunting; those wide, grassy paths cut through fields, too distinctly for Mother Nature’s work. In other areas, you may see crews outfitted in the signature yellow vest and white hard hat, feverishly working amid piles of topsoil and pipe. At first glance, these areas seem like great places for hunting or snowmobiling, or possibly a new country road is under construction. But a closer look will reveal yellow and white markers noting that these areas are actually the right-of-way across private and public property for an underground system of petroleum pipelines. Enbridge Pipelines (North Dakota) LLC

The Enbridge North Dakota system provides shippers the transportation needed out of the Bakken and Three Forks formations.

(“EPND”) is a gathering system that feeds into the Enbridge mainline at Clearbrook, Minn. EPND has been transporting crude oil and other liquid petroleum for more than 60 years. This system is part of the world’s largest petroleum pipeline system, with more than 8,500 miles of pipeline, and is made up of pipe ranging from eight inches to 48 inches in diameter. Enbridge’s North Dakota System is a key component of the Upper Midwest’s energy supply network. These pipelines supply us all with the gasoline, diesel, jet fuel

and other petroleum products on which we depend. In fact, depending on where you live, there is a 50 to 75 percent chance the fuel in your car or truck was made from petroleum transported by Enbridge to regional refineries. Even many of the planes that cross above us use fuel from crude oil delivered on the Enbridge system. At Enbridge, our job is to transport a variety of crude oil and natural gas liquids, but we do not own the materials we transport. Petroleum transported through our North Dakota system comes from the

Pipelines markers indicate where underground pipelines are located and provide emergency contact information to Enbridge’s control center. 44 | BAKKEN OIL REPORT 2011

ENBRIDGE

Bakken and Three Forks formations located

adding critical pipeline infrastructure that

Bakken and Three Forks formations located

in the western portion of North Dakota and

will allow EPND’s system to grow right

in Montana, North Dakota, Manitoba and

the northeast corner of Montana. On August

along with the state’s increasing oil

Saskatchewan by 145,000 barrels per day

26, North Dakota’s rig count hit an all-time

production.

(bpd). Made up of several separate, yet

The Bakken Expansion Program will

high of 200 rigs drilling in the state. Enbridge’s Bakken Expansion Program is

increase crude oil pipeline capacity from the

complementary projects, the Bakken Expansion Program includes the Bakken

R D ER O B STEEL AND RECYCLING, INC 2703 West Towne St. Glendive, MT 59330 1 800 423 5219 406-377-4398 Fax 406-377-8635

13896 W. Front St. Williston, ND 58801 1 800 820 5493 701-572-5493 Fax 701-572-8487

4251 MT Hwy 16 Plentywood, MT 59254 406-765-2624 701-572-5493 Fax 406-765-2724

Customer Service is Our #1 Priority BAKKEN OIL REPORT 2011 | 45

ENBRIDGE

Construction along the Beaver Lodge Loop Project and the Bakken Pipeline Expansion Project is well under way. The Bakken Expansion Program is scheduled to go into service in 2013. Pipelines Expansion Project and the Beaver Lodge Loop Project. The Bakken Pipeline Expansion Project – when combined with a similar project in Canada – will provide an additional 125,000 bpd of capacity to the 25,000 bpd incremental capacity added by the Portal Link Reversal Project that was reactivated and reversed in spring 2011. The U.S. component includes expanding Line 26 by constructing two new pumping stations and replacing an 11-mile segment of the existing 12-inch-diameter pipeline between Kenaston and Lignite, North Dakota. On the Canadian side of the border, 77 miles of 16-inch diameter pipeline will be constructed from a new terminal near Steelman, Saskatchewan, to the Enbridge Pipelines Inc. mainline Terminal near Cromer, Manitoba.

The Beaver Lodge Loop Project primarily involves upgrading existing facilities and installing 55 miles of new pipeline. This pipeline will be laid along the existing route where Enbridge has been operating since the mid-1960s from the Beaver Lodge Station near Tioga, ND, to the Berthold ND Station. Construction along the Bakken Expansion routes began in early August and will continue into spring 2012. Currently, you will find construction crews working in all stages of the pipeline construction process along the Bakken Expansion Project. These crews are busy grading the right-of-way, carefully stripping topsoil, stringing, bending, and welding the pipe before they can coat and prepare the pipe to be lowered into the trench.

C.H. ROBINSON

W O R L D W I D E, I N C.

Call our Montana office

888-832-2874

46 | BAKKEN OIL REPORT 2011

Enbridge’s system of pipelines has been providing our region with the fuel we all need to live, work and play for more than 60 years, and we are continuing to look toward the future of oil production. Those same crews you thought were constructing roads or snowmobile paths are actually building the much-needed infrastructure to safely transport North Dakota’s crude oil. To learn more about Enbridge and our pipeline system, visit www.enbridgeUS.com.

One of the largest third party logistics companies would like to help you with all of your transportation needs on the Bakken project. We offer Flatbed, Van, Over Dimensional, Heavy Equipment, LTL (less than truckload) services.

ENBRIDGE

Enbridge Pipelines (North Dakota) LLC Committed to safe operations, environmental stewardship and social responsibility. RECOGNIZE THE WARNING SIGNS OF A PIPELINE LEAK! • • • • • •

Pooled liquid on the ground An unusual petroleum or rotten egg odor Oily sheen on water surfaces A roaring, blowing or hissing sound Discolored vegetation or snow A light-colored vapor cloud near the pipeline

WHAT TO DO IF YOU SUSPECT A LEAK! • Turn off the ignition of your vehicle and walk away – upwind if possible.

• Leave the area. Warn others to leave and stay away. • Call 911 from a safe location. If possible, also call the Enbridge emergency number: 888-838-4545. • Avoid using any ignition sources – cell phones, pagers, smoking materials, flashlights, keyless entry remotes or motor vehicles. • Don’t touch or go near any liquid you think may have come from a pipeline. • Never attempt to operate pipeline valves. It could prolong an incident or even cause another leak. ■

BAKKEN OIL REPORT 2011 | 47

WANZEK CONSTRUCTION

Wanzek builds on 40 years of industrial, civil, oil & gas experience in the Williston Basin and additions to its workforce, Wanzek, a Mastec company, is now the largest North Dakota-based heavy industrial contractor in the United States. And on Sept. 14, 2011, Wanzek celebrated its 40th anniversary in business.

Left to right: Rush Waite, senior vice president; Kevin Gourde, chief financial officer; James G. Henry, president; Tom Griffin, vice president of EPC; and Jason Kaufman, vice president of Business Development.

anzek Construction is all over the

in the Williston Basin for its own and

Williston Basin in western North

subcontractors’ workers.

Dakota, moving equipment and materials

“The Williston Basin has provided

and completing industrial and civil projects

Wanzek an excellent opportunity put more

for regional and global customers.

than four decades of heavy industrial and

Wanzek’s commitment to work in the

civil construction experience to work in

Bakken goes well beyond the norm for a

developing much-needed oil and gas

construction firm, says Tom Griffin, vice

supplies for the nation,” Griffin says. “We

president of construction. The Fargo, ND-

have all the expertise that regional and

based company recently opened offices in

global companies need to put themselves in

Minot, ND and Houston to better serve its

a position to extract the resources, and with

customers engaged in extracting oil from the

our local connections and dedication to

Bakken Formation. In addition, Wanzek is the

safety, we can place our customers in a

first – and so far the only – construction

stronger position to succeed.”

company to build, equip and furnish a camp 48 | BAKKEN OIL REPORT 2011

With the opening of the two new offices

CRANES AND CAPABILITIES In the Bakken, Wanzek is working in primarily providing two services: moving and placing equipment with its cranes and constructing above-grade civil and mechanical infrastructure work. The first Wanzek crane rolled into the Williston Basin in 2007. Since then, Wanzek cranes and operators have completed dozens of projects for 43 different companies. The equipment has ranged from boom trucks to crawlers with 80- to 275ton capacities that have executed lifts of various types of equipment in daily, weekly, monthly and yearly rental arrangements. In terms of heavy industrial and civil work, Wanzek has completed projects involving earthwork, concrete, structural steel, equipment setting, process piping, power piping and electrical and instrumentation/controls. Projects have ranged from well pad development to construction of pump and compressor stations, rail terminal projects, to LPG trans loading facilities and gas plants. Wanzek also has the capability and experience to complete mass site work for oilpad development once the drilling operations have been completed.

Wanzek Construction has assembled a talented group of construction professionals with a focus on project execution. From pre-construction services through commissioning and start up of complex projects with a vigilant focus on safety, quality, cost, and schedule. Our professionals have an average of 20+ years experience in the oil and gas industry, building all types of facilities; compressor stations, crude oil pump stations, loading and unloading terminals, and gas storage. With an impressive equipment ďŹ&#x201A;eet, Wanzek has all the iron to get it done. If your project requires rapid response and involves a tight schedule, adverse weather or difďŹ cult site conditions, we deliver.

wanzek.com | 701.282.6171

WANZEK CONSTRUCTION

2 1 â&#x20AC;&#x201D; Setting rebar â&#x20AC;&#x201C; Maple River Dam, ND. 2 â&#x20AC;&#x201D; Cooling tower foundation â&#x20AC;&#x201C; Spiritwood, ND. 3 â&#x20AC;&#x201D; Gasifier project â&#x20AC;&#x201C; Benson, MN. 4 â&#x20AC;&#x201D; Crane service â&#x20AC;&#x201C; Grand Forks, ND.

THE REAL ASSETS All told, Wanzek has more than 125 direct-hire craft and staff people working on various projects in the Williston Basin. To help retain those employees and attract the additional qualified workers needed in the Williston Basin, the company began construction on an employee housing

complex near Tioga, ND in July 2011. When it is completed, the complex will comprise 179 lots, each with a threebedroom mobile home, yard and parking space. In addition, there will be a movie room, exercise and weight facilities and an on-site store for use by all the complexâ&#x20AC;&#x2122;s residents. The homes will be furnished with

TRILOGY TRILO GY O OILFIELD ILFIELD LLTD. TD

standard kitchen appliances, dishes and tableware, full-size beds in each room, an energy-efficient washer/dryer set, living room furniture, a 40-inch, flat-screen TV and satellite TV service. Wanzek will

Â&#x2021;Â&#x192;Â&#x2020; ĆĽÂ&#x2026;Â&#x2021; Č&#x201E; Â&#x201D;Â&#x2018;Â&#x2DC;Â&#x2018;Â&#x2022;Â&#x2013; Phone: 1-780-753-6097 sales@trilogyrentals.ca

provide cleaning services twice a week, as

Â&#x2021;Â&#x203A;Â&#x201E;Â&#x2014;Â&#x201D;Â? Phone: 1-306-842-3322 weyburn@trilogyrentals.ca

first phase of the project in September and

well as snow removal, lawn care and road maintenance. Wanzek completed the 83 lots in the

Ç˛Â&#x2018;ĆĄÂ&#x2021;Â&#x201D;Â&#x2039;Â?Â&#x2030; Â&#x201D;Â&#x2021;Â?Â&#x2013;Â&#x192;Â&#x17D; Â&#x2019;Â&#x192;Â&#x2026;Â?Â&#x192;Â&#x2030;Â&#x2021;Â&#x2022; Â&#x2C6;Â&#x2018;Â&#x201D; Â&#x2122;Â&#x2021;Â&#x17D;Â&#x17D; Â&#x2026;Â&#x2018;Â?Â&#x2019;Â&#x17D;Â&#x2021;Â&#x2013;Â&#x2039;Â&#x2018;Â?Â&#x2022; Â&#x192;Â?Â&#x2020; Â&#x2122;Â&#x2018;Â&#x201D;Â?Â&#x2018;Â&#x2DC;Â&#x2021;Â&#x201D;Â&#x2022;Çł

expects to finish the remaining 96 lots in October 2011. â&#x20AC;&#x153;It costs money and time to train good

Â&#x2039;Â?Â&#x2020;Â&#x2021;Â&#x201D;Â&#x2022;Â&#x17D;Â&#x2021;Â&#x203A; Phone: 1-306-460-4799 kindersley@trilogyrentals.ca

people, people with the skill sets that Wanzek, our subcontractors and our customers need to get the job done right,â&#x20AC;? Griffin states. â&#x20AC;&#x153;As a company, weâ&#x20AC;&#x2122;ve always done everything in our power to attract and retain a stable and dependable workforce,

Â&#x2122;Â&#x2122;Â&#x2122;Ç¤Â&#x2013;Â&#x201D;Â&#x2039;Â&#x17D;Â&#x2018;Â&#x2030;Â&#x203A;Â&#x201D;Â&#x2021;Â?Â&#x2013;Â&#x192;Â&#x17D;Â&#x2022;Ç¤Â&#x2026;Â&#x192;

and with the unique housing challenges in the Williston Basin, weâ&#x20AC;&#x2122;re going a little further.â&#x20AC;? â&#x2013;

50 | BAKKEN OIL REPORT 2011

MDU RESOURCES

‘The Bakken is our backyard’ MDU Resources Group celebrates 85 years of service to the Bakken area has been in the oil and natural gas business in Montana and North Dakota since the 1930s. The company continues to expand its presence in the Bakken, where it has been adding drilling rigs to increase its oil production. This year Fidelity will invest about $85 million on its oil and gas-producing properties in the North Dakota portion of the Bakken, and is expanding into the Montana side with the purchase of 20,000 net exploratory acres in Richland County. CONSTRUCTION Knife River Corp. – MDU Resources Group’s construction materials and contracting company – has opened an office in Williston, ND and business has been A Montana-Dakota Utilities Co. gas crew works to install new natural gas service lines to homes in Williston, ND. The utility has been busy working to keep up with the growing population related to the Bakken oil boom.

t’s been nearly 60 years since geologists discovered a promising oil play beneath Henry Bakken’s farm in northwestern North Dakota. While it may have taken awhile for the Bakken to truly start rockin’, MDU Resources Group Inc. has long believed in the people and possibilities in the area. The company this year marked its 85th year of service to the region, where it first provided electricity for Henry Bakken’s neighbors in Tioga in 1926. Since then, MDU Resources Group has

52 | BAKKEN OIL REPORT 2011

grown into an energy, construction and utility company that operates in 44 states. It is the largest publicly traded company headquartered in North Dakota or Montana, the states the Bakken straddles. MDU Resources is taking advantage of having the Bakken in its backyard. Its companies are producing oil and natural gas, building roads, heating homes and powering businesses throughout the Bakken.

booming in the Bakken, where heavy truck traffic has deteriorated the network of roads. This autumn Knife River is working on a $33 million project to resurface and widen North Dakota Highway 8, an artery in the heart of the oilpatch between Stanley and New Town. The company also is paving several county and city roads in the region. In Williston, where developers can’t build housing fast enough to satisfy the influx of people, Knife River is handling the underground utility installation in a major subdivision and is performing curb and gutter projects. The company also is seeing

OIL AND NATURAL GAS PRODUCTION Fidelity Exploration & Production Co.

tremendous demand for its supplies of asphalt, aggregate and ready-mix.

MDU RESOURCES

At left, Curtis Bennett talks to Bill Hains, both with Knife River Corp., about the progress on a 24-mile stretch of North Dakota Highway 8 that Knife River is repaving. UTILITIES Montana-Dakota Utilities Co. provides natural gas or electricity â&#x20AC;&#x201C; and sometimes both â&#x20AC;&#x201C; to about 67,000 customers in the Bakken area. The company is working diligently to keep up with load demand in the region, which goes beyond serving the workers who keep flockinâ&#x20AC;&#x2122; to the Bakken. The largest gain in electric demand has been commercial and industrial users. The utility has gained load growth by hooking up oil wells, pumping stations, switch heaters, backup generation, business parks, industrial parks and more. On the natural gas side, Montana-Dakota last year installed 560 new services and more than 60,000 feet of pipeline. Its Williston division is adding 13 positions to help keep up with the work. PIPELINE AND ENERGY SERVICES Williston Basin Interstate Pipeline Co. owns and operates the most extensive interstate natural gas pipeline in the Bakken. The company has been a major player in the region for more than 50 years, and continues to grow its business there. This year Williston Basin is adding horsepower to a major compressor station in the Bakken, which will allow the company to transport more gas on its system. It is adding an interconnect point with a third-party

pipeline near Belfield, ND, which will be its 13th with Bakken-area natural gas producers â&#x20AC;&#x201C; more than any other interstate pipeline company. Williston Basin also is constructing a 12-mile pipeline near Watford City, ND, to move gas from a new natural gas processing plant. Bitter Creek Energy Services has expanded the menu of services it provides in the Bakken. In addition to building and operating gathering pipelines and compression facilities, Bitter Creek provides cathodic protection, leak detection, water hauling and natural gas measurement services. IN FOR THE LONG HAUL It took 60 years for the Bakken to boom. If that seems like a long time, consider that the rock layers which hold all that oil have been there for about 360 million years. Time is relative. MDU Resources was a strong company and good neighbor in Montana and North Dakota long before the Bakken was rockinâ&#x20AC;&#x2122;. Its employees work hard every day to continue that tradition. The company enjoys its success in the Bakken and looks forward to 85 more years of delivering value for its customers and shareholders. MDU Resources companies are built on a foundation more solid than all that shale and dolomite two miles underground. â&#x2013;

Considering a building project, call the Miller team. Commercial, Healthcare, Worship, Senior Housing, Funeral Homes

BAKKEN OIL REPORT 2011 | 53

DON-NAN PUMP & SUPPLY

Made in America By Norman Emerson

Jon Yoda seen here manually compensating computer control for a twin-grip centralist grinding machine at the Don-Nan Plunger facility.

As part of the Total Quality Control Plan, Matt Corbitt takes a micrometer measurement just before sending parts off for inspection. 56 | BAKKEN OIL REPORT 2011

on Carruth is president, CEO, and owner of Don-Nan Pump & Supply Company, a company that manufactures, builds, and services subsurface pumps, tubing anchors and gas separators for the upstream oil and gas industry. Founded by Vernon Carruth (Don’s father) in 1962, Vernon named the company after his two children, Don and Nancy. Today, one of DonNan’s wholesale facilities rests on the western bank of the Williston Basin in Poplar, Montana. While the formerly small company now boasts seven service centers, three wholesale warehouses, and an API-certified manufacturing plant equipped with state-ofthe-art machines, Don Carruth is quick to note that the company struggled during the first 10 years of its inception. His father started the company because, as Carruth says, “Frankly, there were no jobs being

offered in 1962 in [Midland, TX]. We’ve always had a steady growth. Even during downturns in the industry, and we’ve always grown. But, we did it very, very conservatively – and we never over-extended ourselves.” After doing work for his father during his teen years, Carruth soon left the business to serve his country in the U.S. Navy. After a couple of years in the Navy, Carruth returned home and began working as an auto mechanic; just a few years later, Carruth began working for himself, having opened his own mechanic shop. He quickly built up a steady clientele. “I didn’t have any long-term goals set up. I just kind of walked through doors as they opened up,” he says. All the while, Don-Nan Pump & Supply Company was chugging along, slowly increasing its business. However, with the increased business and operating seven days a week, Vernon needed assistance from a source he knew he could trust to dedicate time toward long workweeks. With Vernon’s health in question and knowing the amount of life-savings that had been poured into the family business, Vernon viewed Don’s incredible work ethic and mechanical acuity as the best option for the company. After Carruth rejoined Don-Nan Pump & Supply Company in 1976, his father passed away just a little over a year later. “That was probably the hardest time of my life, taking over a business at 29 and losing your father

DON-NAN PUMP & SUPPLY

Don Carruth.

at the same time,” says Carruth. He is quick to comment that his mother, Dorothy, was just as vital to the survival of the company, contributing more and more of her work hours within the company. After taking over the company for his father, Carruth never lost his faith; he only worked harder. “There were two of us working the business,” explains Carruth. “Chuck [Schlagal] would break down [pumps] all day long for me when I’d run the fields, and then I’d come in and repair pumps well into the night,” he says. When Carruth speaks of Chuck Schlagal, the longest-working employee for the company still working there today, there is no doubt a certain fondness exists for his long-time coworker and friend. Over the years, Carruth’s tireless work ethic helped steer Don-Nan Pump & Supply Company into direct competition with

industry giants that had been established much longer than Don-Nan. With the company’s 50th anniversary coming soon in 2012, the oil and gas industry’s eyes and ears outside of west Texas are slowly becoming aware of this sound and solid pump company that manufactures a complete line of tubing anchors, gas separators, and subsurface sucker rod and tubing pumps. When asked about the secret of his success, Don gives a direct, but gentle, sorry-to-disappoint-you reply of “There are no trade secrets. There’s just hard work. You’ve got to be willing to sacrifice a lot of facets of your life that you don’t really like doing. But in order to be successful and grow the company, you have to sacrifice some things,” he says. Plain and simple, Don-Nan Pump & Supply Company did not succeed overnight. This story is close to 50 years in the making of a slow and steady growth. “Do the job right, be honest with your customers, and always keep in mind that without the customer, you don’t have a business,” Carruth confides. Born before the age of 1,000 channels, fantasy sports, smart electronics, or the

popular mobile gaming app called “Angry Birds”, it’s not surprising that Carruth has always held an intrigue for the mechanics of an object: what makes it work, how it works, and how can it be improved. Today, there are no signs of slowing down as Carruth still has his hands deeply entrenched in the innovative parts creation sector of the business, and unofficially serves as the head of technical support for his customers and employees. At this moment, the idea of shuffleboard, canasta and lemonade sounds more like penny fiction for the man who cannot even imagine retirement. Don Carruth began his career working for his father, Vernon; then worked for his country; and finally worked for himself; whether one views him through a macro-economic lens or a family lens, he is still working for all three – and that’s just the way he wants it. ■

DIAMOND b OILFIELD TRUCKING, INC. Serving The Oilﬁeld For All Your Transportaion

Needs and Service Work • Hauling Crude Oil and Water TERMINALS | Plentywood • Westhope • Tioga • Williston 406.765.1376 • 24 Hours • Toll Free 1.800.376.1376 212 W. Cactus Street | Plentywood

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Steve Bowman Cell | 406.765.7954 | President Victor Lawson Cell | 406.765.7687 | Vice President Daryl Sorenson Cell | 406.765.8563 | Operations Manager Ole Hagen | 701.263.5571 | Westhope Manager BAKKEN OIL REPORT 2011 | 57

OILFIELD INTEGRATORS

An industry leader

ilfield Integrators was formed in 2010. The mission of the company is to provide integrated solutions to address three concerns in the oil and gas industry: production, security and safety management. Oilfield Integrators offers oil companies numerous solutions including engineering and design, video surveillance, license-plate recognition software and full automation and control, as well as electrical contracting services. As an integrator, this company has a broad range of expertise to offer their customers and their staff understand the production, security and safety needs of the oil and gas industry. Oilfield Integrators is “construction-toproduction” capable; this means that the company has the products and ability to 58 | BAKKEN OIL REPORT 2011

provide the engineering and design, electricity, technologies, IT infrastructure, and the communications to deliver a turn-key solution. Being a part of their projects from the early stage of design is what helps distinguish the company from their competition; it also allows them to better understand their customers’ needs. Oilfield Integrators can provide design ideas to assist their customers in creating better solutions, around-the-clock efficiencies, and a safer, more secure work environment. Their staff take pride in their ability to not only work with solutions that have already been designed and implement them in their own way, but also to design new solutions that will benefit the customer. Oilfield Integrators solves problems in the oil and gas industry by using technology and providing oil and gas companies the information they need to increase revenues, decrease costs and also manage day-to-day risk. Recently, Oilfield Integrators was asked to design a ticketing system for one of their customers that operates salt-water disposal sites. Currently, there is no out-of-box solution that is offered on the market that provides enough information to accommodate the needs they had; Oilfield Integrators designed a solution that gives this customer exactly what they required. Oilfield Integrators hosts this application along with their WellHawk solution using video surveillance and a custom-designed solution. This solution will dramatically reduce the office workload by automating the invoicing for the client, thus providing them with accurate information and speeding up the process of invoicing. This will also hasten cash flow and increase profits for the client’s company.

The WellHawk solution, a product of Oilfield Integrators, is a software application that works with any SCADA system that a customer has or chooses to use. The server is hosted and managed at a secure data center so that the customer can concentrate on what they do best, saving them the startup cost as well as the maintenance cost on managing any IT infrastructure. WellHawk is not only a solution that can be deployed in North Dakota and Montana; it is also a solution that will work globally. Oilfield Integrators has built the software application this way because the energy industry is not a local industry; it is a global one. Once a connection to the Internet is established via a Smartphone, PC tablet, PC, etc., and a layout for the individual location is designed, the customer has the power to control and monitor each facility from anywhere in the world as if they were at the location. This helps to reduce operating costs as well as prevents events that could lead to equipment damage or spills that are costly to clean up. Oilfield Integrators is a very wellrounded, well-thought-out business that employs the right people to make sure their solutions work for their customers. They are not afraid to take on any challenge that their clients offer to them and are 100-percent dedicated to exceeding every customer’s expectations. The company prides itself on being a pioneer in technology specifically for the oil and gas industry and is constantly looking to improve processes that lead to fewer headaches and ultimately more profits for their clients. Solving problems, adding value and exceeding their customers’ expectations is the overall focus for Oilfield Integrators at the end of each and every day. ■

BADGER DAYLIGHTING

Badger Daylighting: Proud to be the Bakken’s largest provider of non-destructive hydro-excavating services

adger Daylighting has grown to be North America’s largest hydro excavation service provider, with over 450 trucks and crews, by simply offering its customer base “The Best Truck and Best Crew” available in the industry – all the while providing true value in what they do. With the same devotion, Badger has become the Bakken’s largest provider of nondestructive hydro-excavating services. Servicing the Bakken since 2007, Badger has grown to include operation centers in Dickinson, Minot, and Williston. Badger’s key technology is the Badger Hydrovac System, a hydro-vacuum excavation truck that is used primarily for digging safely in areas with buried pipes and cables. However, the advantages of Badger’s services don’t stop there: from cleaning mud tanks on drilling rigs, cleaning up oil spills, flood debris clean-up, digging through frozen ground in conditions down to minus 40 degrees Fahrenheit, to excavating at distances more than 400 feet away from the truck, the strength and versatility of Badger’s hydrovac service gives options to the oilfield that are safe, affordable, and productive. In the Bakken, Badger typically works for contractors, operators, and facility owners in the petroleum industry. The three main uses for the Badger Hydro Vac in the oilfield are for safe digging applications, tank/vessel cleaning, and drilling rig cleaning. Operators and drillers use Badger every day to clean mud tanks, frac tanks, flow-back tanks and other drill rig-based vessels. What most of the operators and drillers have found is that the vacuum system of the Badger unit is the best out there for their time-sensitive purposes. Where in the past, most of these companies would have used a straight vac truck to pull solids from these tanks and found it would take longer than they could afford, with the Badger unit, solids can be cleaned out of these vessels in half of the time. The Badger unit has an on-board 60 | BAKKEN OIL REPORT 2011

WE DELIVER:

Badger Daylighting is a leading provider of nonͲdestructive hydrovac excavation services. Badger is committed to providing customers with the best hydrovac truck staffed by motivated and qualified Operators. Badger’s hydrovac technology is unsurpassed. We design and build our own equipment; the Badger Hydrovac System. Using invaluable field experience, Badger continually improves the safety and efficiency of the truck. Equipped with the best truck and an awardͲwinning H&S program, Badger’s commitment to you, the Customer, is firmly set on four key pillars of strength: Safety, Productivity, Versatility, and Service. With over 400 trucks on the road, Badger is wellͲpositioned to deliver on its commitment whenever and wherever you may need it. Experience the BADGER Advantage today.

SAFETY PRODUCTIVITY What Can BADGER do for You?

Kiewit Contractor Safety Award (July 2009)

ᅚ Hydro Excavation

ᅚ Potholing

ᅚ Drill Rig Cleaning

ᅚ Drill Mud Removal

ᅚ Trenching

ᅚ Culvert Clean Out

ᅚ Vessel Cleaning

ᅚ Test Holes

ᅚ Environmental Clean Up ᅚ Cathodic Protection ᅚ Frac Tank Clean Up

ᅚ Pole Holes

ᅚ Pit to Pit Clean Up

ᅚ Caissons

ᅚ Sand Trap Clean Out

ᅚ And Much More ...

VERSATILITY SERVICE

24 Hour Dispatch: (855) RIG-CLEAN (855) 744-2532

BADGER DAYLIGHTING

pressurized water system and uses patented wash wands for spoil break up for cleaning applications. Each Badger unit can have multiple wash wands for any type of cleaning application on drilling rigs, including the entire derrick. With the cost to operate a rig being what it is, it is vital that drillers have quick access to efficient vacuum trucks such as Badger.

62 | BAKKEN OIL REPORT 2011

Contractors and operators use Badger for a whole host of safe and efficient digging applications. As the infrastructure of the Bakken continues to get more congested, the use of hydro excavation will continue to play a vital role as the safest and most-efficient way to dig around existing infrastructure. Uniquely, Badger units are born, bred, and made for cold-weather digging; every

Badger truck has the ability to heat the water to dig through any North Dakota or Montana permafrost. Typical applications include slot trenches, caissons, piling holes, and daylighting existing utilities. Many of the contractors and operators have adopted the method of hydro-excavation to be the primary means of digging to protect human life, and make Badger their first call when ramping up a project. Availability of services is one of the toughest obstacles for companies operating in the Bakken to overcome. Knowing this, Badger has strategically positioned crews, equipment and housing around the Bakken field for easier access to the more remote locations where drilling and construction activities are taking place. Badger is rolling new equipment into the Bakken each month to keep up with their growing demand, and there is no limit to their growth. With the challenges presented by the influx of workers coming in from out-of-state and short-term employees, it is important to have a proper health and safety program for the benefit and welfare of all. Badger has been recognized for its industry-leading health and safety program, providing customers with the added assurance that their projects will be completed on time and without incident. Badger participates in several safety consortiums which are common today. Badger’s core leadership team in the Bakken consists of native residents who are veterans of the oil and gas industry. The average leadership position consists of over 15 years of oil and gas field work experience. Badger also employees full-time safety managers, fleet managers, and mechanics that allow them to be on site, on time, and perform safely. Badger’s experience provides its customers with the “Best Truck and Best Crew”, allowing for top-notch service. Badger performs what is needed on any given project. Operating 24hours, seven days per week, Badger can be reached via telephone at 855-RIG-CLEAN (855-744-2532). ■

MEMBER

PIONEER DRILLING COMPANY

Pioneer offers partnership-based approach to clients sure we stay focused on the achievement of their goals.” To help ensure Pioneer delivers on promises to its clients, the company provides resources, knowledge and training to empower its employees to make the right decisions. Safety is a cornerstone of Pioneer’s culture that permeates every level of the company. Recently Pioneer has undertaken a major safety initiative to further solidify and build upon its safety culture; Pioneer engaged JMJ Associates, a leading international safety consultant, to help with this initiative. “Our new safety program enhances our existing safety efforts to obtain an injury-free work environment,” adds Locke. “We focus on our employees’ attitudes and behaviors to create a culture where our employees can work safely every day.”

“O

ur goal is to provide the highest level of service and performance to our drilling and production services clients and, most importantly, to do it in a manner where those working at our locations are safe,” says Stacy Locke, president and CEO of Pioneer Drilling Company. “In addition, our clients value our partnership-based approach because it assures them that we are invested in their success,” he explains. “We listen to our clients and collaborate with them to make

64 | BAKKEN OIL REPORT 2011

DRILLING SERVICES DIVISION Pioneer has established positions in unconventional and in key shale plays such as Bakken, Eagle Ford, Marcellus, Niobrara, and Denver, Permian, and Uinta Basins. Currently, there are nine Pioneer drilling rigs working in the Bakken. “We are very excited about our newbuild program, with six new-builds scheduled for early 2012 delivery,” says Locke. “Four of the new-builds are planned for the Bakken Shale and we have multiyear contracts for them.” Pioneer’s new-builds have state-ofthe-art equipment and technological capabilities that enhance the rigs’ safety and efficiency. All of the rigs are fully-

automated AC electric rigs equipped with 500-ton built-in top drives, iron roughnecks, automatic catwalks and walking systems for pad drilling. They are designed for a crane-free rig up for mobilization flexibility. The Driller has a climate-controlled cabin where the rig systems are monitored and the hoisting, rotating and pumping systems are controlled. The four Bakken new-builds have 2,000 horse-power LeTourneau mud pumps and 7,500-psi fluid heads that increase flexibility for down-hole operations. “We are proud of the caliber of work our drilling rigs are doing in the Bakken,” says Skip Locken, vice president and division manager. “We have two rigs that drilled 14-day wells, and one rig drilled a well in 13.2 days. These are outstanding accomplishments, considering the industry average in the Bakken is approximately 20 days, with some wells taking as long as 30 days.” In addition, Pioneer’s drilling rigs have earned safety milestones, with 27 active rigs that have achieved over one year of working time without a recordable incident. “The crews deserve the credit,” adds Locken, “because none of this success would happen without them. This is a team effort, with our management, our engineers, our rig crews and our operators. Our rigs have excellent leadership and our rig crews are highly experienced.”

THE BAKKEN N SERVICE LEADER LEA ADER Dedicated to staying on o the cutting edge of drilling d technology, aggressive technology y, our aggres ssive new build program m includes rigs that are quick-movingg and environmentally sensitive. seensitive. 210.828.7689 Phone: 210.828.76 689

The highest quality The q contract services,, withh new American services manufacturedd 400-600 HPclass rigs andd pump packages capable p of working w g at depths p of 20,000 fee feet. et.

Phone: 70 701.572.1020 01.572.1020

The latest wireless The wireless tools for cased and op open-hole pen-hole services services,, radial and sta standard andard cement bond loggingg casing calipers calipers,, production lo logging, ogging, pipe recovery, recovery y, andd a full range of perforating sy systems. ystems.

Phone: 406.652.4400

Phone: 701.572.1087

UNSURPASSED UNSURPAS SSED SERVICE. THE T BEST PEOP PEOPLE. PLE. PREMIUM EQUIPMENT E WWW.PIONEERDRLG.COM WW WW.PIONEERDRLG.C COM

PIONEER DRILLING COMPANY

WELL SERVICES Pioneer’s fleet of well service/workover rigs is one of the newest and most highly capable fleets in the industry. Pioneer has established positions in unconventional and in key shale plays such as Bakken, Eagle Ford, Fayetteville, Haynesville, Marcellus, and Tuscaloosa Marine Shale. Pioneer has 10 well services rigs in the Bakken and continues to grow its presence there. Some of the well service rigs operate as 24-hour rigs. The entire fleet is 550 to 600 horsepower rigs that are equipped with mud pump and tank packages, swivels and laydown machines. Committed to its people and to its quality of client service, Pioneer operates a Training Center in Williston where it conducts various on-going safety trainings and a three-day “New Hire Orientation” for all of its new hires.

GeoResources, Inc.,, through its wholly owne owned ed subsidiary G3 Operating, LLC, conducts c exploration an and d production operations pr rimarily in the Williston Basin. B primarily The Company als so operates core propert ties in the also properties southwest Gulf Coast through its whollyy owned S Bay Operating,, LLC. subsidiary Southern GeoResources s, Inc. is traded on the Nasdaq. N GeoResources, 1407 W West est Dakota Parkwayy | Suite 1B | PO Box 1505 | Williston, Williston, ND 58802

701.572.2020 70 1.572.2020

66 | BAKKEN OIL REPORT 2011

WIRELINE SERVICES Pioneer is one of the oldest and the largest wireline companies operating in the Bakken. Operating under the company name Penkota, it has been in the business continually for over 30 years. With its long and proud history, Pioneer/Penkota offers a wide range of services to its clients. In addition to pumpand-shoot services, it also provides specialty logging for cement and casing evaluation, pipe recovery, and conventional and tubing conveyed perforating. Backed by its long record of outstanding performance, Pioneer/Penkota continues to prove its commitment to client services with its expertise and knowledge base that enable it to work efficiently to help clients meet their production goals. Currently, Pioneer/Penkota operates 15 wireline units between their Williston and Dickinson locations, and plans to add more units in the future. Outside the Bakken, the company has 21 other wireline districts and is well-established in the Bakken, Barnett, Eagle Ford, Haynesville, Marcellus, and Niobrara shales. ■

MAC HEATERS

MAC Heaters: “Your reliable heat source” MAC HEATERS –

field causing lost production and revenue.

BUILT TO PERFORM, BUILT TO LAST

In order to meet the demand of these

MAC is known for some of the safest,

industries and their clients, MAC recently

most reliable and easy-to-operate heaters

expanded its facilities. MAC purchased a

in the industry, and has a wide range of

building in Bismarck, ND – now their

heaters to fit most every need. “MAC

corporate headquarters – and also has a

Heaters are proudly manufactured right here in North Dakota, with mid-western values and a desire to exceed our customers’ expectations every day,” JT enthuses. MAC offers heaters ranging from

top-notch assembly line. “This new facility now allows us to produce heaters more rapidly quickly and efficiently in order to meet and capture the demands of the industries. MAC has

210,000 BTU/hour, all the way up to

doubled, if not tripled, our square footage,

4,200,000 BTU/hour. MAC’s line of heaters

laborers and production to meet these

provide a safe, reliable heat source for any

demands,” JT says.

situation where heat is needed for

MAC’s offices across the U.S.A. provide

personnel quarters, equipment warm-ups,

sales, leasing and service support for all

water flooding stations, mining, pipeline

their customers’ needs. “MAC recently

construction, airlines, warehouse and

expanded several departments. We now

supply depots, loading docks, construction

have our own leasing division and

heating, maintenance or mechanic shop

service/AMP division. So if purchasing is

AC Heaters, in business for nearly

heating, paint and coatings applications,

not in your budget, then give us a call and

three decades, continues to evolve

dehumidification – the list goes on. All MAC

let’s talk about what size heater will fit your

and grow with their clients’ needs and demands. In 1983, MAC Heaters started a production facility in Glenburn, ND. “As many of our clients in the Bakken oilfield already know, this area of North Dakota can produce some of the most extreme

heaters are portable and can be moved where heat is needed. MAC has listened to their clients’ needs from the beginning, setting the company apart from competitors. “If our current production models are not what you are

needs and the leasing option that will fit your budget. “Our expansion into the service side of things now enables our customers to give us a call – we’ll come out and take care of

looking for, let us know and we can build

any and all of their field service

temperature variations,” says JT Anderson.

one that will meet and exceed your

requirements, from a simple service/oil

“The extremes in temperature prove the

expectations,” JT affirms. MAC takes pride

change to a complete overhaul or

resilience of our products and technology –

in engineering the best quality product, and

refurbishment of an older unit. Here at

and build strong character in our

will take the extra steps necessary to

MAC, we try and make every step as easy

employees, too!”

ensure there will be no breakdowns in the

as possible,” he concludes. ■

68 | BAKKEN OIL REPORT 2011

MAC HE HEATERS A TERS S BUILDS IND INDUSTRIAL DUSTRIAL AIR AIR HHEATERS EATERS FOR A NUMBER NUMBER B OF INDUSTRIES INDUSTRIIES AIR HEATERS

We’ve been in business for We’ve f almost three decades, growingg out of Glenburn, North Dakota, where the windd chill can get to -60 deg FF,, or 1105 05 deg F! We We suspect the extremes of temperature temperaature not only test our technology, technologyy, but it builds stronger character, character h , too.

Quality Sets Uss Apart from the Restt Our commitment to quality qualitty is what makes us unique. Midwestern Midweestern values, an honest desire to exceed expectations, expectattions, and our depth of experience all a contribute to the ﬁne products we sell today today.. W Wee have heaters ranging in size from frrom 210,000 BTU/HR to 4,200,000 BTU/HR for all types of applications. MAC, Inc. iss a leader in quality and line of MAC heaters. customer service with a dependable d

Your Y oour Reliable H Heat Source The MAC line of heaters provide p a safe, reliable heat source for any situation where heat is needed for personnel personnnel or equipment including, water flooding flooding stations, mining, pipeline construction, warehouse w and supply depots, loading loading docks, and heavy equipment heating. MAC MAC, C, Inc. was established, in 1983 in Glenburn, G North Dakota specializing in the desig design, gn, development and production of custom-built, forced air heating units. For ov over er two decades MAC, Inc. has gained gaained wide acceptance serving a variety of industries industries with a reliable heat supply in extreme environmental conditions. MACs are kn known nown for their reliability, reliability, simplicityy and maintenance free features. W Wee now have a facility in Glenburn, ND which is where the company evolved from to its most recent expansion into a top notchh manufacturing facility here in Bismarck, ND wh which ich is now our corporate headquar headquarters. rters. W Wee have doubled laborers if not tripled in square footage and doubled our labore ers to produce enough Wee are expanding heaters to meet the demand dem mand of our clients. W expannding to add a full line along service operation to assist assisst our customers out in the field alo ong with a fully stocked aftermarket parts operation operattion on hand in Bismarck, ND. So now when a customer needs parts, we can get them out in a timely fashion elim eliminating minating as much down time as possible.

Ofﬁces across the Ofﬁ th USA. USA 1-800--272-4604 Leasing now available. available. Call 1-800-272-4604 to inquire abou ut our leasing programs. prograams. about

AIR HEATERS 1-800-272-4604 www.macheaters.com

2106 East Indiana Indiana A Avenue, vvenue, Bismarck, N ND, USA. 58504

www.macheaters.com www w.macheatters.com | 1.800.272.4604 1.800.2722.4604

CANELSON

CanElson: Building the drilling leadership of tomorrow

anElson Drilling Inc. (“CanElson”) commenced operations in late 2008 with one rig that it had constructed and commitments for multi-well drilling programs in Alberta. With a strategy based on four geographical platforms for growth in North America – Western Canada, North Dakota, Texas and Mexico – CanElson has since has expanded its operations and grown significantly. In addition to constructing its own drilling rigs, the company has expanded its fleet of drilling and service rigs through acquisition. Since the late 1970s, the CanElson Drilling Inc. management team has founded and built three highly successful Canadian oil and gas contract drilling companies; it is now on

70 | BAKKEN OIL REPORT 2011

track to do the same with CanElson Drilling Inc. CanElson currently operates in the Western Canadian Sedimentary Basin (WCSB), the United States and Mexico. The target resource throughout the areas in which CanElson works is either oil or liquids-rich natural gas. The WCSB operations are currently focused in Alberta, Saskatchewan and Manitoba and the entire fleet is comprised of small footprint, ultraheavy telescoping double rigs (“teledouble”). The United States operations are currently focused in the the Bakken resource play of North Dakota and the Wolfberry play of the Permian Basin of Texas. CanElson’s Mexico operations are conducted through a joint venture company, Diavaz CanElson de Mexico, S.A. de C.V. (“DCM”), of which CanElson holds a 50-percent ownership interest, and is currently focused in the Ebano-Panuco-Cacalilao fields of the Misantla-Tampico Basin of Mexico. CanElson currently operates 33 rigs: four drilling rigs in North Dakota; 19 drilling rigs in the WCSB; six (net: five) drilling rigs in Texas; and two (net: one) drilling rigs and two (net: one) service rigs in Mexico. CanElson’s owned drilling rig fleet has an average age of less than five years, and is capable of drilling horizontal and conventional and unconventional resource wells with depth ranges from 1,500 metres to 6,700 metres. These four operating platforms provide

Experience, leadership, performance. Since it was established in late 2008, CanElson Drilling Inc. has grown quickly to become one of Canada’s premier drilling contractors. In addition to building its own drilling rigs, the company is expanding its fleet of drilling and service rigs through acquisition. CanElson now operates a fleet of 33 rigs (30 net). With operations in Western Canada, West Texas, North Dakota and Mexico, CanElson Drilling Inc. is setting new standards for rig utilization. With right-sized, purpose-built rigs built for horizontal and resource play drilling and experienced, well-trained crews, the company is achieving new records for cost-effective, efficient drilling operations.

Suite 700, 808 - 4th Avenue SW, Calgary, AB, Canada T2P 3E8 Phone 403.266.3922 Fax 403.266.3968 www.CanElsonDrilling.com TSX: CDI

CANELSON

CanElson with flexibility and diverse opportunities for growth. In North Dakota, Alberta, and Saskatchewan, CanElson’s drilling rigs are right-sized for the exploration industry’s current focus on deeper horizontal resource plays, including the Bakken, Spearfish, Shaunavon, Viking, Cardium, Montney, Cadotte, Cadomin, Dunvegan, etc. In the mature oilfields of Texas, where drilling rigs can operate year-round, CanElson’s customers are appreciating the cost efficiencies of technologically-advanced tele-double drilling equipment that can move

in one-third the time and cost of conventional triple drilling rigs, while drilling the wells faster too. And in Mexico, CanElson’s joint venture with a prominent Mexican player in that country’s oil and gas industry presents exciting opportunities for the application of Canadian resource play drilling techniques to help bring new production on-stream more quickly. Building on these strengths, CanElson’s experienced senior leadership team is positioned for success by building the drilling leadership of tomorrow. ■

Maximum Uptime Means Optimal Production Global Artiﬁcial Lift’s value is in our performance, and now, with a new operation in Minot, North Dakota, we’re at the ready with reliable ESPs and the innovative Q-Max* Gas Bypass system. Let us show you we can help you optimize production and reduce well interventions in these challenging Bakken wells. Value delivered, guaranteed!

We sell performance, with experience you can trust and equipment you can count on. *Mark of Global Artiﬁcial Lift.

(307) 202-2754 globaloilﬁeldservices.com 72 | BAKKEN OIL REPORT 2011

BUSINESS B USINESS S SALES ALES | M M&A &A | C CONSULTING ONSULTING | FFINANCING INANCIN & BUSINESS INTRODUCTIONS

! n e k k a B n i 1 #

John Suprock, Business Broker, Managing Member, Realtor® | P: 406.880.3697 | E: broker@oilfieldbiz.com Kathy Sturgeon, Licensed Assistant | P: 406.728.9410 | E: info@oilfieldbiz.com Zac Griffin, Business Broker, Realtor® | P: 406.868.9366 | E: zac@oilfieldbiz.com

OFFICE: 406.728.9410 FAX: 406.728.9479

www.oilﬁeldbiz.com

ABOUT US Today, electronic drilling information is an essential part of the oil and gas industry, and with RigManager being a world-wide provider of an industry leading solution, it's a perfect fit. RigManager has developed hardware and software solutions, with secure internet access that provides the foundation of drilling information management. RigManager electronic data solutions are used to create meaningful data analysis, increased productivity, improved customer satisfaction and a strengthened competitive advantage. RigManager was founded in 2003 by a small group from Calgary Alberta, Canada. Since RigManager's commencement, our engineers, developers and field staff have been devoted to the development and deployment of an open platform hardware/software combination in which the software solution monitors, stores and distributes data from modern drilling rigs to where ever it is needed. Our open approach provides unrivalled flexibility to adapt to changes in and requests from the industry. RigManager’s vision is to provide the most complete and interpretive electronic data using up-to-the-minute network communications.

RigManager provides the foundation of drilling information management with our next generation Electronic Drilling Recorder (EDR) and top-notch drilling instrumentation for drilling rigs. Coupled with our superior service, RigManager provides state-of-the-art computer hardware and proprietary software that is very flexible, customizable and accurate, along with the most reliable sensors available.

SERVICE & SUPPORT RigManager Services Ltd. provides fast, quality 24/7 technical support for issues relating to the equipment or installation work we’ve provided. We understand that your instrumentation and communications are important and we do our best to resolve issues timely. Our technicians are on standby 24/7.

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NDFA

North Dakota Firefighter’s Association: Prospective By Renee Loh, Executive Director

orth Dakota has worked very hard to leverage local resources for new

venture creation. With the current success of the oil industry in the state, North Dakota has achieved the status as the fourthlargest oil producing state in the nation! This year as we look at the 60th

fire fighters! As a result, some of the

Bakken area is different and in many cases,

responding firefighters are employed in the

every situation is new. The NDFA

oilfields as members of the oilpatch

understands that public service is noble

workforce. North Dakota has made, and

and these firefighters are putting their lives

will continue to make, important

at risk every time they respond to oilfield

contributions to the U.S. energy security as

emergencies. These firefighters stand in

the nation continues its thirst for oil and

the heat/rain, bitter cold/snow, and

natural gas. From a national security

unrelenting winds to protect people who

vantage, production here rather than

have met with a danger. It is vital that these

relying on other war-torn oil producing

firefighters know their strategic, tactical

nations is in the best interest of the nation.

and planning responsibilities so that they

North Dakota firefighters face greater risks and dangers than ever before as they respond to incidents. As firefighters continue to respond for services such as EMS, automobile extrication, structural collapse, trench rescue, hazardous materials response, and oilfield emergencies, it is vital that firefighters

anniversary of striking oil at a farm near

continue to train and learn the latest

Tioga, the North Dakota Firefighter’s

techniques. The mantra of the NDFA is that

Association (NDFA) takes time to reflect on

“training is power” and that to remain safe,

the changes that have been in the state’s

firefighters must stay on top of their

fire service.

training. The North Dakota Firefighter’s

This surge in oil production has

Association is aware of the dangers and

positively impacted North Dakota

has geared training in areas such as oilfield

firefighters in many ways. North Dakota’s

emergencies, bio-fuel emergencies, big rig

record oil production has had a tremendous

extrication and other pertinent classes that

impact on the economy, revenue and high-

will assist firefighters as they respond to

paying jobs – 96 percent of the fire service

these disasters.

in North Dakota is comprised of volunteer 76 | BAKKEN OIL REPORT 2011

Every response in the energy-rich

can respond to critical fire and life-saving protocols. Therefore, there has been a noticeable increase in requests for oilfield training classes. Rob Knuth, state training director of the NDFA, has remarked that the training opportunities that the NDFA has developed

NDFA

over the past year are a direct result of the recent oil activities. Knuth feels that the “Responding to Oil Field Emergencies” class is a cooperative effort between the NDFA and the Oil and Gas Producing Counties Association. The curriculum was designed and developed by Williston State College, with the partnership of NDFA providing

Every response in the energy-rich Bakken area is different and in many cases, every situation is new. The NDFA understands that public service is noble and these firefighters are putting their lives at risk every time they respond to oilfield emergencies.

certified fire instructors with oilfield experience to take these necessary classes Jasper Engineering & Equipment Co Co..

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numerous live-fire props that simulate multiple aspects of oilfield emergencies to include a “boil over” simulator. That way, students can receive realistic hands-on training. “The main purpose for this class is conditioning firefighters to the situations that may arise on any given site,” Knuth says. To serve these requests, the NDFA has brought in national instructors from different parts of the nation to work with the firefighters at regional fire schools using live-burn props where the firefighters can attend four-hour classes followed by live burns at the different live-burning grounds located throughout the state of North Dakota. The North Dakota Department of Transportation has reported that according to official accident reports in the Northwest part of North Dakota, there have been 167 recorded accidents for commercial accidents that occurred during the timeframe of August 10, 2010 to August 10, 2011. Additional reports from Dickinson show that 57 commercial accidents were recorded for that area during this same timeframe.

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The NDFA has additionally brought heavy extrication training into the state as a BAKKEN OIL REPORT 2011 | 77

NDFA

result of the increase in these types of accidents and the associated traffic with commercial vehicles traveling North Dakota roadways. The heavy extrication training program is designed to supplement the existing extrication program that deals with standard passenger vehicles. Taking the small-vehicle approach to heavy-vehicle extrication can be very dangerous and put

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The heavy extrication class deals with trailers requiring different techniques to stabilize and secure the vehicle. Therefore, this course takes students through construction, new vehicle technology, stabilization and rescue from various scenarios involving real vehicles and realworld incidents. The students who take this class actually work with vehicles that have been involved in accidents. As a result of this vital class that was taught by Advanced Rescue Solutions, the NDFA will now have a cadre of instructors to go throughout the state and teach these new techniques. It is important to remember that every day firefighters in the state respond to different situations! North Dakota’s current oil boom and the resultant tremendous oil activity has created new training techniques that have been identified and incorporated for the benefit of the valued firefighters. The NDFA is dedicated to proactively providing the quality training needed for firefighters to

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survive these incidents. The most vital component is that these individuals knowingly respond safely and effectively to these incidents so that they can go back home to their family, homes and communities after an incident. ■

78 | BAKKEN OIL REPORT 2011

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SIX GUN HOTSHOT

Six Gun Hotshot responds to increased demand for hauling services By Lisa Fattori

or three years, Six Gun Hotshot LLC has provided expert hauling services at competitive prices, by friendly staff who are committed to meeting deadlines. Owned and operated by Brandon and Ashley Miller, and Jody Cooper, the company has experienced tremendous growth. As a result, Six Gun Hotshot is moving to new, larger premises and is hiring additional drivers to better serve its customers. “Customers appreciate our honesty, which is one of the reasons why we’ve grown so quickly,” says Jody Cooper, coowner of Six Gun Hotshot LLC. “We pride ourselves on being on time, and offering fair pricing. People always comment about how clean our trucks are and that our drivers are very presentable and professional. People can call us at any time of the day or night and we’ll go out of our way to get the job done and make our customers happy.” Six Gun Hotshot’s fleet of vehicles includes two semis and eight hotshot pickup trucks, which are one-ton trucks with 32-foot to 40-foot trailers. Within the next two years, the company has plans to expand its fleet to five semis and 15 hotshot pickups. Six Gun Hotshot specializes in hauling materials to and from oil rigs, including metals, piping, casing tools and directional tools. All employees are experienced and fully certified CDL drivers. The company services a wide geographical area, including northwestern North Dakota, eastern Montana, Wyoming, Texas and Utah. Even when business was slow for other

80 | BAKKEN OIL REPORT 2011

companies, Six Gun Hotshot garnered a loyal following of clients that include H&P Drilling, Marathon Oil Company, Tony Metz, Scientific Directional Tools and Pathfinder Energy. “By the grace of God, we continued to grow even when there was a slowdown in the industry,” says Brandon Miller, coowner of Six Gun Hotshot LLC. “We’re so thankful to God for answering our prayers and sending us such loyal customers.” Originally from Oregon, Jody Cooper and Brandon Miller grew up on ranches. Miller created Six Gun Hotshot with only one truck, and Cooper added another truck to the company’s operations one year later, when he became a partner of the company. Given the increased drilling activity in the Bakken area, Six Gun Hotshot became incredibly busy catering to oil and gas companies. Today, Six Gun Hotshot is on approximately 95 percent of the oil drilling and production companies’ vendor lists. “I came to North Dakota to help out Brandon, because he was so busy,” Cooper says. “Every time we added another truck, we became even busier. Just in the last few years, I’ve seen a lot more people come to the area. The economy is very good in North Dakota right now, with the oil industry continuing to create new jobs.”

The company logo for Six Gun Hotshot is comprised of two six guns in an X, with a cowboy hat and a wild rag. The emblem pays homage to Cooper’s and Miller’s background as ranchers. Among those in the oil and gas industry, it is a recognizable symbol that represents honesty, commitment and expertise. Open 24 hours a day, Six Gun Hotshot offers round-the-clock service for hauling jobs both large and small. The dedication and hard work of the company’s drivers has paid off, with more and more contracts by satisfied customers. North Dakota is now home for both Cooper and the Millers, who have put down roots in the area to raise their families and be contributing members of their community. “As much as we love our jobs, we’re very committed to family,” Cooper says. “Through prayer, perseverance and the grace of God, we are here.” Six Gun Hotshot can be reached at 701-260-3620 or email sixgunhotshot@hotmail.com. The company’s address is P.O. Box 1780, Dickinson, North Dakota, 58602. ■

Among those in the oil and gas industry, Six Gun Hotshot’s logo is a recognizable symbol that represents honesty, commitment and expertise.

BADLANDS INTEGRITY GROUP

Badlands Integrity Group: Safety compliance and HR management

TRAINING

safety, environmental and human resource

in-house training, as well as go to their

store carries the basics, like coveralls, safety

expertise to clients. This expertise helps

clients’ workplaces in order to reduce

glasses, gloves and hard hats, as well as

their clients reduce human resource

downtime. Our trainers take the time to

first-aid supplies, winter FRC clothing, jeans

administrative costs by 20 to 30 percent –

explain all necessary safety procedures and

and shirts. We have made it a point to

guaranteed. Badlands Integrity also helps

to ensure compliance with all OSHA and

ensure the safety of our clients’ employees,

their clients achieve up to a 75-percent

Federal DOT safety standards. Among the

and that each and every one of them comes

increase in revenue. This guaranteed

many classes that Badlands Integrity offers

home safe.

performance is unique to the industry.

are OSHA 10, MSHA, First-Aid/CPR, H2S

adlands Integrity Group is the industry leader in providing outsourced health,

Badlands Integrity Group has

Badlands has several trainers who do

(Hydrogen Sulfide) and many other classes.

increase revenue and profit. Their safety

hazards that exist in the Bakken. The FRC

HR SERVICE-PAYROLL-DRUG TESTING (URINALYSIS, BREATHALYZER AND

established a track record of helping their clients reduce administrative costs and

and employees are being made aware of the

DOT COMPLIANCE AND DOT AUDITS Drivers’ logs; IFTA (quarterly taxes);

HAIR FOLLICLE) Badlands Integrity Group understands

training can reduce workers’ compensation

driver qualification files; MVR and criminal

the need that some companies have to

costs and in-house training costs and

background checks.

ensure that their equipment meets safety standards and that their employees follow a

minimize the risk of safety fines, violations and lawsuits. The headache and paperwork

VENDOR MANAGEMENT

strict safety program, as well. With this in

associated with these and other human

(PEC AND ISNETWORK)

mind, Badlands Integrity Group is a 24-hour,

resource functions that Badlands Integrity

At Badlands, their staff understand that

seven-days-a-week safety company: when

Group offers expertise in frees up business

finding the time to keep these databases up-

a company has a recordable incident that

owners and management so they can focus

to-date and in good standing is a time-

requires urinalysis, a breathalyzer or even a

their attention on the core of their business,

consuming and often a nerve-racking

hair follicle test, they can call us and we can

the part that really makes them money.

experience. It is their understanding of this

promptly dispatch one of our technicians to

We at Badlands Integrity Group are

that allows them to be proactive with these

the location. Badlands Integrity Group prides

dedicated to the safety of all those who

accounts, and to ensure that all protocols

itself on the dedication to safety and their

choose to work in the Bakken area. Our

are followed. To be able to keep these

clients.

office is staffed with people who not only

accounts up-to-date ensures that those

help those in the area of safety but who

contractors will call our clients when help is

kind business. Not only are we owned by

actively seek out companies who would

needed in the Bakken.

women, but we are also a one-stop, one-call company that you can depend on when it

benefit from our services. In our office, companies can come in and find help with training; DOT compliance

Badlands Integrity Group is a one-of-a-

FULL FRC RETAIL STORE We sometimes hear stories in the news

comes to safety in the Bakken area. With everything under one roof, our customers

and audits; vendor management (PEC and

of accidents of one form or another when it

enjoy the peace-of-mind knowing that

ISNetwork); full FRC retail store; HR service

comes to working in the oil industry. With

Badlands Integrity Group covers their

and payroll; and drug testing (urinalysis,

new OSHA requirements on fire-resistant

immediate needs, and can look ahead and

breathalyzer and hair follicle).

clothing (FRC) and equipment, contractors

anticipate their future needs. ■

82 | BAKKEN OIL REPORT 2011

BADLANDS INTEGRITY GROUP, LLC HES and Human Resource Experts

Badlands Integrity Group is the industry leader in providing outsourced Health, Safety, Environmental, and Human Resource expertise to our clients. This expertise helps our clients reduce their Human Resource administrative cost 20-30% guaranteed. And, it can help our clients achieve up to a 75% increase in revenue. This guaranteed performance is unique to the industry.

Safety Equipment Safety Compliance DOT Compliance DOT and NON-DOT Drugâ&#x20AC;?and Alcohol Testing Human Resource Job Bank Over 500 Training Courses

We are able to provide the most value and innovation per your dollar spent.

Everything in one location.

366 - 21st Street East | Dickinson, ND 58601 Office: 701-483-6559 | Fax: 701-483-6342

www.badlandsintegrity.com

SURETUF

Innovative containment system saves the oil industry time and money By Lisa Fattori

loydminster-based Suretuf Secondary Containment Partnership is recognized

as a leading specialist in containment systems. The Suretuf product is a patented design that is both durable and flexible, and provides oil industry professionals with enhanced value and greater convenience in meeting their secondary containment requirements. Suretuf’s slide-in legs and pin-together panels make the set-up, dismantling and transportation of the system quick and easy. The panels are secured by three drop pins rather than eight to 24 bolts, which saves an

incredible amount of time. All panels and ridge caps are made with 14-gauge plate. Support legs are made with 11-gauge plate, and three 1/16-inch plate is used for all pin holders. Standard heights are 36 inch and 44 inch, but Suretuf will custom-build a containment system to meet customers’ specific needs. All components are finished with corrosion-resistant paint that helps to extend the life of the system. “This is a very durable containment system that was designed to meet the rigors of the oilpatch,” says Clayton Gessner, owner and manager of Suretuf Secondary Containment Partnership. “You can take it and move it to another site several times. I’ve seen companies use Suretuf containment systems on third and fourth sites, and the system’s as strong as ever.” Suretuf’s floating leg system keeps the containment system square and level with the base, so that there are no gaps between the walls and the ground. There is no digging required to secure the legs, thus saving on both time and ground disturbance. The system’s square top edge prevents any safety hazards and creates a straight edge down all four sides for a clean, finished appearance. The top-mounted 40-mm liner

Suretuf’s floating leg system keeps the containment system square and level with the base, so that there are no gaps between the walls and the ground. 84 | BAKKEN OIL REPORT 2011

is fastened using tek-screws, which eliminates the need for caulking and bolting the liner to the wall. Suretuf Containments also offers crossover stairs for easy access to the inside and outside of the containment wall. The company’s 24 inch by 24 inch-square Sting Door is durable, spacious and easy to install. Liner accessories and textiles include a geotextile, which acts as an extra barrier between the sand and liner, to protect the liner so that it lasts longer. Fire-retardant liners, liner tape, liner welding and all sizes of pipe boots are also available. The company’s installation crews are COR-certified, are listed with HSE and I.S. Networld, and possess the required safety tickets and safety equipment. Customers are not charged for overtime, and there are no fuel surcharges or shop charges. Suretuf products are also used in the mining industry to contain tailings ponds, and in agriculture for grain storage. The company is a fabricator of oil storage tank parts, as well as parts for the mining and agriculture industries. “Our sales are one-and-a-half times what they were last year, and our containment systems are selling extremely well in Saskatchewan,” Gessner says. “We are looking at expanding our market into North Dakota and Montana. Whether or not secondary containments are required, it’s good due diligence for an oil company to use them.” ■

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CAMEX

Camex oilfield equipment big in the Bakken

ABOUT CAMEX

transportation solutions that let customers

With a global focus, Camex strives to be the leading source of specialized oilfield

maximize their potential in a competitive world market.

transportation equipment. By fully

Company founder Pat Wilson started

understanding client needs, Camex

Camex Equipment Sales and Rentals Inc. to

provides unique and innovative

service the oilfield transportation industries

of Canada, America and Mexico in 1992. With a shortage of new and quality equipment available, it was a natural progression for Camex to evolve from an equipment provider to a leading manufacturer of oilfield transportation equipment. Camex quickly garnered a reputation for solving problems quickly and for conducting business with honesty and integrity. Camex works off the key principle that when it comes to finding a solution for a client, nothing is impossible. Today, Camex occupies 15 acres of land, housing extensive inventory yards and manufacturing facilities. SALES TO THE BAKKEN RAMP UP IN 2011 “Camex has been selling to oil exploration and production companies in the Bakken oil play for the last four to five

Strathmore, AB | Lloydminster, AB | Saskatoon, SK | Alida, SK

Leading the way in safety, environmental stewardship and efficiency. WIRELINE CORING • CONVENTIONAL CORING • DIRECTIONAL CORING • CORE HAULING

Over 15,000 metres cored at 98% recovery. 86 | BAKKEN OIL REPORT 2011

CAMEX

Camex vacuum truck.

Camex crane trucks.

years, but since the start of 2011, sales to that area have increased dramatically,” states Wally Taschuk, director of sales and marketing, Camex Equipment. “Our customers are telling us they really value our equipment because it is built to handle similar environmental conditions and because of the quality, fit and finish and added features of our trucks and trailers.” “Our North Dakota customers are experiencing tremendous upswings in business as far east as Maxbass, west to

With the largest selection of NEW & USED on-site inventory, Camex provides a one-stop shop for all your oilfield equipment needs. Bed Trucks Winch Trucks Picker Trucks Heavy Haul Trailers Vacuum Trucks Water Trucks Fuel/Lube Trucks Construction Equipment

Watford City, and back north past Tioga. These are real hotbeds of activity, with no signs of slowing up,” adds Tom Huyge, sales manager at Camex. “Rig-moving companies and oilfield service contractors in the Bakken are pretty amazed at the breadth and scope of the equipment we have on the ground at our facility in Nisku,” continues Taschuk. “Customers are able to fill their equipment requirements today, go to work tomorrow and immediately start generating revenue.”

Camex bed truck. Inventory is key to Camex’s business strategy – with over 65 million dollars of on-site inventory, clients can fully outfit their company from complete rig-moving packages to tank and vacuum trucks for oilfield service and liquid handling to construction equipment. Camex not only offers the most comprehensive line-up of inventory, but also provides the financial services, after-sales support and technical training to back it up. Camex new and used equipment

View over 700 New & Used Trucks and Trailers on-site or on-line at www.camex.com

CAMEX Custom Rig-Ups Heavy-Spec Oilfield Equipment

...and more

Camex Equipment Sales & Rentals Inc. 1511 Sparrow Drive Nisku, Alberta, Canada T9E 8H9

High-end Vacuum Trucks & Vacuum Trailers

Scissorneck Trailers

Heavy-Spec Bed Trucks

Heavy-Duty Picker Trucks

Texas Bed Winch Trucks

T/A & Tri Winch Trucks

Extendable Trailers BAKKEN OIL REPORT 2011 | 87

CAMEX

includes heavy-spec bed trucks; winch Camex Texas bed truck.

trucks; picker trucks; lowboy trailers; oilfield floats; pipe trailers; fluid-handling trucks, such as vacuum trucks and trailers, tank trucks and fuel/lube trucks; plus an array of construction equipment. “Customers the world over regularly seek out our website (www.camex.com), which features detailed product descriptions and extensive photos and enables them to shop for equipment with confidence and

MID-PLAINS DISTRIBUTING LARGEST DISTRIBUTOR OF TECO-WESTINGHOUSE ELECTRIC MOTORS IN THE UPPER MIDWEST Single Phase | Three Phase | Open Drip | TEFC | Fractional

make their purchasing decisions easier,” says Taschuk. CAMEX FOCUSED ON PROVIDING ‘ONE-STOP SHOPPING’ To support one-stop equipment shopping, Camex provides full custom design and manufacturing services for all types of oilfield transportation equipment, as well as vacuum tank and water tank rig-ups. Camex specializes in designing and

Explosion Proof | Premium Efﬁcient | Severe Duty | IEC

developing unique transportation solutions

Metric | Close Coupled Pump | Medium Voltage | AC or DC

for radically different terrain and extreme environmental conditions. New or used

Custom Built | Vertical Hollow Shaft | Oil Well Pump

equipment can be rigged up to customer specifications in short order to meet budgets and project timelines. Camex has body builder agreements in place with major truck manufacturers such as Kenworth,

MARATHON • BALDOR • RELIANCE • US EMERSON • SIEMENS • LAFERT • STERLING

Western Star, Freightliner, and Peterbilt. Camex is a fully certified manufacture and repair facility for vacuum trucks, picker

VARIABLE FREQUENCY DRIVES/SOLID STATE STARTERS/MOTOR CONTROL CENTERS

trucks and tank units, offering a fully stocked parts department for quick turnaround and timely repairs. Camex technicians are highly skilled at fabrication,

Warehouses in Bismarck | Dickinson | Fargo | Williston

repairs and installation, and are trained and licensed to perform CVIP inspections, hydro tests and re-certifications. “As the oil and gas industry continues to change, we look forward to tackling the new

46 North 23rd Street, Fargo, North Dakota 58102 Toll Free: 1-866-478-4266 Local: 1-701-478-4266 Email: midplains@integraonline.com

challenges as they arise in this fast-paced and exciting environment and bringing out new products and suppliers to ultimately become the ‘one-stop transportation shop’,” concludes Taschuk. ■

88 | BAKKEN OIL REPORT 2011

TIME TO DO BETTER T TIME FOR REFORM

HEAD HE AD O OFFICE, FFICE, CALGARY, AB Ph: P h: 4 403.539.6219 03.539.62 Fx: 403.237.7873 CROOKED C ROOKED C CRE CREEK, RE AB Ph: P h: 7 780.814.4124 80.814.41 Fx: 780.957.2871 RED R ED DEER, DEER, A AB B Ph: P h: 4 403.348.7301 03.348.73 Fx: 403.342.5152 TOLL T OLL F FREE REE Ph: P h: 1 1.877.539.6219 .877.539.6

ITâ&#x20AC;&#x2122;S IN THE NAME We are experienced enough to know the weakness of our industry and are dedicated to raising the industry benchmark for quality, competency and safety. Our clients deserve nothing less than a revolution in the way underbalanced drilling, managed pressure drilling and production testing services are provided. That revolution is Reform.

WWW.REFORMENERGY.COM WWW W..REFORM

PAT’S OFF-ROAD

Pat’s Off-Road Inc.: Providing frac fluid heating services to Bakken oilfield production companies work, and in their employees. They believe the success they have is due to having good hard-working people in the company. “We are in a recession and have an opportunity here in the Bakken to bring hardworking people to our company, people who leave their homes for weeks at a time. These are the people who make the difference,” says Paul and Cale Kaupp, brothers and owners of Pat’s Off-Road. at’s Off-Road Inc. has been providing

industry. Their business is based on

frac fluid heating services to oilfield

maintaining cutting-edge equipment, strong

production companies in the Bakken for

employee support, and providing

over four years and is backed by over thirty

exceptional customer service.

years of experience and knowledge in the

Pat’s Off-Road takes pride in their

The company has a dedicated crew, all of whom want to ensure customers’ needs are addressed. The company’s employees take equal responsibility in all aspects of getting the job done. There is no totem pole here; just good people helping each other to succeed as a group. Everyone at Pat’s Off-Road makes sure a new hire fits into this type of career. With shops spread across North America, every shop shares each other’s responsibilities. Shuffling equipment and operators on short notice enables each shop to maximize on customer care. This kind of respect shown between all employees is the backbone of success for the company. Pat’s Off-Road and their one-of-a-kind patented mega-heaters pack a big punch in a compact package. Built in-house, quality assurance is maintained to the highest degree. The research and development department is constantly moving forward to improve the already dependable design to burn more efficiently and heat better. “With

90 | BAKKEN OIL REPORT 2011

PAT’S OFF-ROAD

Pat’s Off-Road and their one-of-a-kind patented mega-heaters pack a big punch in a compact package. Built in-house, quality assurance is maintained to the highest degree. our design features, we are able to build a unit on a truck that is extremely agile on a tight location, and yet is able to outperform a cumbersome trailer-mounted unit,” says Paul. Fuel efficiency and emissions are of great importance to the environment and the company. The trucks need to be reliable when a frac is on the line; reliability is what Pat’s Off-Road provides. Pat’s Off-Road is dedicated to its hard-working employees, their families, and the communities in which they do business. Pat’s Off-Road contributes to the communities that support the oilfield, and all the good it brings. “We know the oilfield can be taxing on the communities at times, but it provides hard-working, good people with a means to provide for their families,” says Cale. “We must take care of our community, our industry and everyone working in it to stay out of hard times.” ■

BAKKEN OIL REPORT 2011 | 91

SITEFINDER GPS

Finally, a GPS navigation solution designed specifically for the U.S. oil and gas industry! progression.” With the Canadian iPhone product already in the marketplace, an American version will be coming out in the near future. The OilTrax Smartphone app branches off SiteFinder’s current OilTrax product developed and licensed for Garmin GPS devices. The days of looking at a map and navigating by memory are long gone; the app offers an instant mapping solution for those hard-to-find places. “Customers are able to use OilTrax to get to that oil or gas well that is in the middle of nowhere,” says Abraham. With in-cab navigation, OilTrax continues as a mainstay for vehicles out in the Canadian oilpatch, with 200+ retailers buying in as suppliers. Providing OilTrax as a smartphone app now means an improved service with additional features for the mobile customer. “What we’ve done is

iteFinder GPS has been providing

to be bringing their navigation solutions to

navigation solutions to the Canadian

individuals and companies working in the

marketplace for over five years, and has

U.S. oil and gas industry.

just announced that they are now entering

In addition to Garmin GPS-compatible

taken it to another level,” says Abraham. “We’ve progressed from paper maps to digital maps, and now to real-time online content.”

the American marketplace by launching

software, SiteFinder has also recently built

their OilTrax navigation software,

and released an OilTrax Canada iPhone

users to have information with them at all

compatible with Garmin GPS units, for

app. “We are now putting our popular

times. We also have the potential for 3-D

regions across the United States.

OilTrax software on connected devices, this

services as the app becomes more refined.

The OilTrax smartphone app allows

For years SiteFinder GPS has been

allows us to get real-time updates to your

Integral OilTrax services are still the focus,

known as a leading supplier of licensed

phone,” says Allen Abraham, president of

such as: navigating LSD locations, oilfield

Garmin GPS-compatible software for the

SiteFinder GPS. “Developing OilTrax as a

POI addresses and coordinates; searching

Canadian oilfields, and is extremely excited

smartphone product is a natural

for well sites, facilities and oil and gas data.

92 | BAKKEN OIL REPORT 2011

SITEFINDER GPS

The end-user also has the option of using OilTrax to search and route to a location but view the area or route using satellite imagery instead of a conventional map; not to mention, access to overlay oilfield data, POIs, highway cameras, and other supplementary data. OilTrax app users also have the ability to link up with others, allowing the product to act as a safety measure. “You know the saying, ‘there’s safety in numbers’ – well, this gives you those numbers,” explains Abraham, who hopes that the product will aid safety in the industry. Companies who INDUSTRIAL SITE DEVELOPMENT

purchase the product can even have customized mapping, focusing on areas or information pertinent to their daily activities. “As the developer of the OilTrax product, we control the content of the product. This allows us to insert custom data, when required, for customers who have specific needs,” Abraham concludes.

Mass Grading and Excavation | Soil Correction | Well Pad Construction Storm Water Retention/Settling Pond Construction and Underground Utilities Landﬁll Construction and Closure Sub-grade Prep for Rail Lines, Tanks, and Conveyance Systems Contaminated Soil Cleanup and Site Remediation Foundation Solutions including Piling, Drilled Piers, and Soil Retention

For additional information regarding SiteFinder GPS’s specialty GPS-based mapping products, please visit

LOCATIONS Minot, North Dakota Minneapolis, Minnesota

www.sitefindergps.com.

Alberta, Canada Duluth, Minnesota

– WITH FILES FROM DANIELLA PONTICELLI. ■

Field Services

Work Force Housing • Sales • Rental • Leasing

Work Force Housing Services • Transportation • Installation • Service & Repair

Work Force Housing Supply • Skirting • Steps • Installation Materials

701-842-2676

503 - 3rd Avenue S.W., Watford City, ND 58854 NDsales@TJTusa.com

www.TJTUSA.com BAKKEN OIL REPORT 2011 | 93

TCA MARKETING

Secondary containment company TCA proud to serve the Bakken industry Left: Secondary containment systems in the Stoughton area, just west of Carlyle.

One of the challenges we have

TCA

Marketing Ltd. has been a leading supplier of secondary

containment systems in the western Canadian oil and gas industry for the past ten years. As a family-owned and operated business with a home office in Taber, Alberta, we felt the opportunity to grow our business has never been better than now. We have recently teamed with a southern Alberta manufacturing company to produce our own line of secondary containment products. All of the components of our containment systems are Canadian, made by our skilled Canadian labor force. Local manufacturing, combined with local design and engineering, has allowed us to answer our clients’ ever-changing containment needs. Currently, TCA is providing producers with containment solutions for everything from small pop tanks to large tank farm construction. Our 94 | BAKKEN OIL REPORT 2011

site-specific designs, along with a wide range of liner products, help us to provide the solutions needed in today’s environmentally influenced oil industry. The help of local engineering and design has aided in some challenging sites. We are able to approach our clients with a design that is already approved, allowing them to focus on the site design. Additionally, TCA offers professional installation of all of our products. Our crews are experienced in everything from the assembly of the system to the construction of tank foundation rings. We also offer specialized liner installations and repairs, allowing the customer the option to repair or replace. TCA has had a longstanding relationship with Nilex Inc., which provides us with all of our liner and fabric products. We are stocking standard size containment systems in Carlyle, along with liners and geotextile fabrics.

encountered in the industry is the demand for an easy-to-assemble and easy-to-move containment system. We spent a few months with our manufacturer and engineers in order to minimize the number of fasteners in our containment walls; we tried a lot of scenarios but kept going back to bolts (a bolted connection has always been a reliable way of maintaining the integrity of the containment systems). We have changed from using 22 bolts in a standard 45” wall to using six bolts. The bolts are 5/8”, thereby allowing the installer to handle them easily and quickly. The initial response of the new design has been great; people love it. It allows the user to move the system more rapidly, without the concern of losing the smaller bolts that were previously used. For further information, please visit us online at http://www.tcamarketing.com. ■

TCA provides engineered steel containment solutions for the Western Canadian Oil and Gas Industry

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0H |

&AX

BROCK WHITE

Whatever you need, you can trust Brock White to deliver throughout the Upper Midwest United

North American green erosion blankets.

States. The central office and warehouse is located at 2575 Kasota Avenue in St. Paul, MN. Other locations can be found in St. Cloud, Rochester, Elk River, Duluth and Eagan, and Brainerd, MN; Sioux Falls, SD; and Appleton, Wausau and Green Bay, WI (BW Supply). Additionally, Brock White Company LLC has a Canadian subsidiary, Brock White Canada Company, which includes 11 locations in Canada: Winnipeg, Manitoba; Regina and Saskatoon, Saskatchewan; Thunder Bay, Ontario; Edmonton, Calgary and Lloydminster, Alberta; and Prince George, Burnaby and Langley, British Columbia. Brock White Canada distributes similar product lines as the United States

rock White Company LLC, a leading

Dakota construction and oilpatch markets

distributor of construction materials

since starting business in 1954. In 2010,

headquartered in St. Paul, MN, was

Brock White Company opened a new branch

incorporated in 1954 to provide specialty

office in Minot, ND. The Minot branch

products to concrete and masonry

operates in close association with Brock

construction markets in the Upper Midwest

Whiteâ&#x20AC;&#x2122;s existing branch in Bismarck, which

United States. These products include hand

was opened in 1982. As well, they have a

tools; specialty chemicals; waterproofing

Fargo office, which was opened in 1986.

dependable service, Brock White can help

materials; caulking; insulation; geotextile

The Minot office carries Brock Whiteâ&#x20AC;&#x2122;s full

ensure the most successful outcomes to

fabrics; erosion control; highway sealants;

line of construction materials including

your projects.

concrete; masonry accessories; concrete

concrete and masonry supplies, geotextiles

repair and restoration materials and

and erosion control materials, decorative

coatings; and landscaping accessories, as

concrete products, forming hardware and

We carry a full line of construction

well as fireplace and masonry products

ICFs. The Minot and Bismarck offices have

materials so we can simplify your ordering,

such as brick, natural stone and cultured

tailored their products to service the needs

streamline deliveries and provide you with

stone (through select locations).

of the oilfield market.

one-source accountability. Having local

Brock White has served the North 96 | BAKKEN OIL REPORT 2011

As well, Brock White has 14 locations

offices, and distributes commercial roofing systems, insulation and pipe, and mechanical insulation products. HELPING YOU DO YOUR BEST WORK With high-quality materials and a company-wide commitment to responsive,

YOUR SOURCE. YOUR RESOURCE

branches gives us a better understanding of

BROCK WHITE

the specific needs and construction

Propex Geotex 350ST.

challenges of each local market. KNOWLEDGE IS OUR BEST PRODUCT With more than 55 years of experience in the industry, we know more about solving any problems you may face. From our delivery drivers to our sales reps to our office staff, weâ&#x20AC;&#x2122;ll provide extensive support to help build and maintain your reputation for expert workmanship and reliability. WHATEVER IT TAKES Whatever you need, you can trust Brock White to deliver. HELPING BUILD YOUR SUCCESS! This is what it is all about. Providing the goods and service level that will help you do your best work and help you build your success in the construction and oilfield industries. â&#x2013;

Piferâ&#x20AC;&#x2122;s

AUCTION & REALTY

Serving North Dakota, South Dakota, Montana & Minnesota

â&#x20AC;&#x153;Ranked as the #4 real estate auction company in Americaâ&#x20AC;? - Land Report Magazine (March 2011)

Corporate Office 1506 29th Ave S Moorhed, MN 56560 Kevin Pifer CEO/Auctioneer 701.238.5810

877.700.4099

Č&#x160;Čą Â&#x160;Â&#x2014;Â?Čą Â&#x17E;Â&#x152;Â?Â&#x2019;Â&#x2DC;Â&#x2014;Â&#x153; Č&#x160;Čą Â?Â&#x203A;Â&#x2019;Â&#x152;Â&#x17E;Â&#x2022;Â?Â&#x17E;Â&#x203A;Â&#x160;Â&#x2022;Čą Â&#x17E;Â&#x152;Â?Â&#x2019;Â&#x2DC;Â&#x2014;Â&#x153; Č&#x160;Čą Â&#x2019;Â&#x2014;Â&#x17D;Â&#x203A;Â&#x160;Â&#x2022;Čą Â&#x17E;Â&#x152;Â?Â&#x2019;Â&#x2DC;Â&#x2014;Â&#x153; Č&#x160;Čą Â&#x2019;Â&#x;Â&#x17D;Â&#x153;Â?Â&#x2DC;Â&#x152;Â&#x201D;Čą Â&#x17E;Â&#x152;Â?Â&#x2019;Â&#x2DC;Â&#x2014;Â&#x153; Č&#x160;Čą Â&#x160;Â&#x2014;Â?Čą Â&#x160;Â&#x2014;Â&#x160;Â?Â&#x17D;Â&#x2013;Â&#x17D;Â&#x2014;Â? Č&#x160;Čą Â&#x17D;Â&#x160;Â&#x2022;Čą Â&#x153;Â?Â&#x160;Â?Â&#x17D;

Piferâ&#x20AC;&#x2122;s Gets Results! Bowman, ND Office 3 1st Street NW Bowman, ND 58623

701.523.7366

Andy Mrnak Realtor/Auctioneer 701.206.1095

Jim Sabe Auction Associate 701.523.6283

Call today to book your auctions & listings! View all auctions & listings at www.pifers.com

Alan Butts

Realtor 701.400.8858

www.pifers.com

Bismarck, ND Office 120 West Sweet Ave Bismarck, ND 58502

701.400.8858

877.700.4099 BAKKEN OIL REPORT 2011 | 97

PETERSON EQUIPMENT

When support matters, you can trust Peterson Equipment Company By Jim Grewe

s someone who frequently travels through the Bakken oilfields of North

Dakota, eastern Montana and Saskatchewan, it’s easy to be overwhelmed by the opportunities for success. I was introduced to the Bakken in the middle of last winter, by a customer who “needed a Snowcat now” and didn’t care what it cost. Our staff did our best to meet those demands. This experience began to repeat itself over and over again – all too common of an experience for those who do business in the oilfields. It is important to build a good reputation that stands on consistent business; not a flash-in-the-pan company that will be here today and gone tomorrow. During the busy times in the Bakken, you want to choose suppliers that will be there for the long haul. It is often easy to buy a

98 | BAKKEN OIL REPORT 2011

piece of equipment from some buddy down the street who can give you a screamin’ deal; but when it matters, a relationship with a supplier is imperative. What is it your suppliers are willing to do for you? In today’s business climate, they are willing to do just about anything: drive through the night to deliver a part; spend hours on the phone with technical advice; even buy you a beer. Building a relationship with your suppliers will prove to be well worth your while when it counts. A good Snowcat supplier is a major advantage in the oilfields when the snow starts to fall. The ability of a Snowcat to take you places no other equipment can reach is unmatched; this also means reliability and dependability are a must. Peterson Equipment Company has been in the Snowcat business for over 40 years; we sell Snowcats, and that is it. Sorry, no ski lifts,

front-end loaders, or 50 other types of equipment. Just Snowcats. Peterson Equipment has years of experience in the oilfields, and can supply nearly everyone with what they need. Whether that need is a brand-new Formatic or Pistenbully Snowcat, a used Bombardier, Tucker, or Thiokol, we have the machines to get the job done – and we stand behind every machine we sell. For further information, please visit www.oilfieldsnowcats.com. About the Author: Jim Grewe is the general manager of Peterson Equipment Company (PEC). PEC is the largest dealer of Pistenbully and Formatic Snowcats in the U.S.A., and specializes in custom applications including the oil, gas, Antarctic, and much more. Contact Jim by email at: jgrewe@petersonequipment.com or on Twitter: @fireinred. ■

WHERE PROGRESS MEETS PRESERVATION Providing cultural resource inventories and GPR services throughout the Great Plains, our services include: • NEPA & NHPA compliance assistance • Archaeological inventories • Native American consultation • Architectural history

Have a project? Contact us. 301 - 1st Street N.E., Suite 201 Mandan, ND 58554

701-663-5521 info@bcarch.org

• Preservation compliance • Interpretive planning • Interdisciplinary GIS mapping and geoprocessing analysis

QUALITY MAT

Quality Mat Company installs patented, interlocking mats in the Bakken oilfield

uality Mat Company – based in Beaumont, Texas, with offices in

Killdeer, North Dakota and Houston, Texas – supplies the world with the mats that revolutionized the industry. Joe Penland, founder of Quality Mat, first began to put timbers together to form mats in the early 1070s. With over 300,000 new and used mats in stock throughout the United States, Quality Mat has grown to be the world’s largest supplier of mats. Our mats are made from furnituregrade oak and other hardwoods, steel fasteners or bolts, and are assembled in our field-proven, patented configurations. Quality Mat pioneered the mat industry in 1981 by installing the first drilling location built from the patented interlocking oilfield mat. Built of 100-percent natural material, 100 | BAKKEN OIL REPORT 2011

these mats allow an efficient solution to access challenges in remote locations and environmentally sensitive areas, without damaging the native soil and land. Our patented interlocking mat is the environmentally friendly solution to preserving nature. In our 38 years of business, Quality Mat has matted some of the harshest environments on earth. These mats provide a safe work area by creating a stable work surface. We like to say, “If a bird can land on it, we can mat it.” Currently, Quality Mat is installing these patented interlocking mats in the Bakken oilfield for major suppliers in North Dakota. The oilfield mat is bolted with three layers of lumber, making it six-inches thick; solid boards in the center layer ensure maximum

strength in sub-zero conditions. No one builds a stronger mat than Quality Mat Company. Our goal is to have over 200,000 mats in North Dakota by the close of 2012, in order to be able to supply the growing demand. Quality Mat is committed to giving back a large percentage of its profits to many charities throughout the United States. We support many wonderful organizations, such as the Julie Rogers Gift of Life Program, which provides free mammograms; Girl’s Haven; Boy’s Haven; The 100 Club; Texas Children’s Hospital; and M.D. Anderson Hospital, in an effort to fight cancer. In an unprecedented cancer awareness effort that spans from Beaumont, Texas to Bismarck, North Dakota, Quality Mat Company is attaching Breast Cancer Awareness Ribbons on the sides of railcars carrying our mats. It is our sincere hope that this will generate cancer awareness across the company. For further information, please call us toll free at 1-800-227-8159. ■

CALFRAC WELL SERVICES

Calfrac Well Services breaks ground in the Bakken Brings outstanding track record in unconventional oil plays Calfrac pumping proppant in the Rockies.

– is the biggest change Calfrac has seen in

the world’s most exciting energy basins.

years, we have been very focused on shale

Active in Canada, the U.S., Russia, Mexico,

opportunities in North America,” notes

Argentina, and most recently Colombia,

Calfrac senior vice-president, corporate

Calgary-headquartered Calfrac is a

development, Tom Medvedic. “Recently there

pressure-pumping firm whose primary

is significant momentum directed toward the

service line is fracturing, although the

oil part of the business. We are very much

company also offers coiled tubing and

seeing diversification from a commodity

cementing services.

perspective, and the same technologies

alfrac Well Services is a leading oilfield service provider positioned in some of

recent years. “Over the last three to five

The move toward unconventional resources – initially targeting tight gas and shale gas opportunities through horizontal drilling and multi-stage fracturing technology 102 | BAKKEN OIL REPORT 2011

used in shale gas are now being applied to the oil-producing formations.” This trend is not exclusive to the oil shales, he adds. “Plays such as the Permian

Basin in the U.S., which has been producing for decades and was thought to be in terminal decline as far as conventional production goes, have been completely revitalized through the use of horizontal drilling and multi-stage fracking.” Oil and gas companies are now looking at many of their reservoirs through a different lens and asking where else they can apply this technology to existing plays, with the hopes of repeatability through the experiences of some of the other plays. “It’s a fairly sizable shift in the business,” Medvedic says, noting that the move toward the oil part of the business has highlighted a renewed focus on chemistry: “The products we pump downhole. It has really brought companies that are strong in chemical development – which has been a hallmark for Calfrac and its dedicated laboratory facility in northeast Calgary – to the forefront in these developing oil plays.” Calfrac has established strong relationships with customers, working with them jointly to provide custom-tailored solutions for the resource base. “A lot of these areas are heterogeneous rock, so you can’t offer off-the-shelf solutions,” Medvedic notes. “Having the ability to work together with our customer base to closely nurture strong relationships allows Calfrac to develop custom-based solutions for our customers’ specific requirements.” As the industry has evolved more and

CALFRAC WELL SERVICES

more to the unconventional side of the business, the service aspect has become more critical. Five years ago, for example, completion costs were only 10 to 15 percent of overall well costs; now, however, completion costs make up anywhere from 30 to 50 percent of total well costs. The number of frac stages per horizontal leg has also increased dramatically, leading to greater service intensity per well. “The completion side of the business has really become a focal point in the success or failure of many of these unconventional projects. What that has done has been to forge some very strong relationships with our customer base and Calfrac’s engineering teams in developing custom solutions,” Medvedic says. “The other important aspect is a real focus on the deployment of ‘green chemistry’, environmentally friendly fluid systems. We have deployed 12 different systems in the last 18 months in both Canada and the U.S. that continue to improve the environmental footprint.” “At Calfrac, we partner with our customers to provide environmentally friendly, cost-effective solutions. Calfrac’s continual focus on chemistry, specifically green chemistry, is a huge part of our business, as we believe industry is going to continue the trend toward the tighter, more unconventional reserves.” Calfrac uses many different fluid systems that have been tailored to each formation’s specific geology. SlickWater was designed for formations with less permeability. For more permeable formations, the company uses foamed and cross-linked water systems. Execution in these resource plays relies on the latest equipment and technology; equally important are well-trained, wellqualified people, plus good health, safety and environment programs, the right commodities, and logistics. Since its inception in 1999, Calfrac has enjoyed a proven track record in each of these areas.

Calfrac rigging up for another multi-stage frac project.

“In the U.S., we are still in the very early stages of incorporating this technology in oil and shale development. We believe there will be many applications to this, and that it will continue to become more and more efficient through the passage of time and the improvement of technology,” Medvedic concludes. ■

BAKKEN OIL REPORT 2011 | 103

PETROLEUM SERVICES

Locally owned Petroleum Services offers many products and services to clients in the Bakken

“N

in the oilfield since the late ‘70s. He well

Services from the beginning, and it’s one

remembers the oilfield before the Bakken.

Service is what we are all about.

that serves a business and an owner well.

Mike often quips, “I’m painting my picture,”

Petroleum Services operates fairly, with

Petroleum Services, a locally owned oilfield

meaning that he has a plan and a vision for

the willingness to do what it takes to get

service company established in 2003, is

how this company will look. We at Petroleum

the job done professionally. Service is in

built on integrity, honesty and a strong work

Services have built a team of employees

our name and we proudly earn our name

ethic.

who take pride in the work they do each

every day.

ever Quit!” It’s a motto that has described Mike Palmer Petroleum

Mike Palmer, company owner, has been

day; we believe that how you work is a large part of who you are.

Petroleum Services has much to offer clients in the oil industry. We provide safe

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and dependable hot-shot and trucking services throughout the United States and Canada, and have bed trucks and winch trucks for rig moving services as well as vacuum trucks available. Our welding team has 50 years of combined experience, and can fabricate to meet most clients’ needs. We offer a full line of new drilling bits in addition to our retipping services. We are proud to bring Petroleum Services’ Mud Motors to the Williston Basin, which can cut many hours and costs off the average drilling time. The motors are adjustable and one motor can drill both the vertical and the curve sections of the

CALL NOW! 104 | BAKKEN OIL REPORT 2011

O homes are mold, Our mold insect, insect fire fire, sound and tornado resisresis tant ta ant due to ICF (insulating (insulating concrete form) form m) and steel construcconstrucenergyy star star,, award creating ttion. ion. We We are an energ award winning winning builder crea ting square uare feet and up. b beautiful homes from 1,800 to 5,000 sq www.energyefficienthealthyicfhomes.com, C Check us out aatt www .energyefficientheaalthyicfhomes.com, builder,r, Ken TTrever tthen hen call the builder rever direct aatt 248-884-7960. L get started building your beautiful dream Lets d home TODAY! TODAAYY!

hole. Petroleum Services is an agent for CaseTech float equipment as well as Downhole Stabilization. Our breakout machine can torque and breakdown connections up to 30,000 psi. Drilling pipe can be straightened at our shop or on

PETROLEUM SERVICES

location. We also supply rental equipment including pipe racks and other drilling rig necessities. Please check us out on the web at www.PetroleumServicesAndTools.com. Thank you for the opportunity to serve you! ■

701-572-2487 01 2 2 8

° Hot Shot & Trucking ° Hot Trucking ° Float ° Equippment Float Equipment ° Drill D ill Bi Bits ° Rental ° Equipment Rental Equipment ° Stabilizers ° Stabilizers & Reamers ° Vac ° Truck Vac Truck ° Breakout ° M Breakout Machine ° Pipe ° Straigghtening Pipe Straightening ° P.S. ° S Mud Motors Motors P..S. ° Welding ° Welding & Fabrication

www.PetroleumServicesAndTools.com www w..PeetroleumSSerrvicesAndTTools.com o BAKKEN OIL REPORT 2011 | 105

INDEX TO ADVERTISERS

AE2S American Steel Span Inc.

C.H. Robinson Worldwide, Inc.

Badger Daylighting Corp.

Calfrac Well Services Ltd.

Badlands Integrity Group, LLC

Camex Equipment Sales & Rentals Inc.

Energy Efficient Healthy Homes

Basic Energy Services

CanElson Drilling Inc.

Enerplus

Beaver Creek Archaeology Inc.

Capital Lodge

Bert Baxter Transport Ltd.

Continental Resources

BNSF Railway

Derrick Equipment Company

Border Steel and Recycling, Inc.

Diamond B Oilfield Trucking, Inc.

Brady Martz & Associates

Brock White

Do All Metal Fabricating Ltd.

IBC

Don-Nan Pump & Supply

Eagle Welding & Petroleum Equipment

103

Enbridge Pipelines (North Dakota) LLC

9 57 62

Frontier Energy Group, Inc.

Georesources Inc.

Global Oilfield Services

Graco Oilfield Services

Halliburton

Heat Hawg Inc.

Jasper Engineering & Equipment Co.

Mac Inc.

Mid-Plains Distributing

Millennium Directional Services Ltd.

Miller Architects & Builders

Monson Corporation

Nabors Well Services Co.

Neset Consulting Service

North Dakota Petroleum Council

Oilfield Integrators

PCS Business Brokers

Pat’s Off-Road Inc.

Peterson Equipment Company

Petroleum Services And Tools

105

Pierce RV

Pifer’s Auction & Realty

Pioneer Drilling Company

65 47 101

Redline Well Control

Reform Energy Services

Rig Manager Services Ltd. Rocking Horse Energy Services

74, 75 86

Rocky Mountain Rod

Schlumberger

Six Gun Hotshot LLC

Steamboat Energy Consultants

Suretuf Secondary Containment Partnership

TCA Marketing

TJT International

Thru Tubing Solutions

Train ND Northwest

Trilogy Oilfield Ltd.

Veit & Company Inc.

Wallwork Truck Center

Wanzek Construction

Ward Williston Oil Company Whiting Petroleum Corporation

106 | BAKKEN OIL REPORT 2011

90 54, 55

MVTL Laboratories, Inc.

Quality Mat Company

www.enerplus.com

25, 106 79

Power Fuels

Through our donations of time and resources, Enerplus is building relationships with our neighboring communities.

45 104

Farmers Union Oil

MDU Resources Group, Inc.

At Enerplus, we embrace our responsibility to our employees and the communities where we live, work and operate. We are committed to creating stronger relationships through volunteer involvement and contributions to non-profit and community based organizations.

Essential Coil & Stimulation Services

Kotana Communications Inc.

COMMUNITY, STEWARDSHIP AND ENGAGEMENT

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