Saskatchewan Oil Report - 2012

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Saskatchewan’s oil industry on track for continued growth Fraser Institute: Saskatchewan seen as highly attractive for petroleum investment Kindersley area booms with light and heavy oil production SETI builds capacity for industry training in southeast Saskatchewan Crude-by-rail service steps up to meet demand PTRC leads research into enhanced oil recovery

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907 B Railway Ave Weyburn, SK S4H 0B2 Tel 306 842 5420 Toll Free 1 877 264 2872

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5006 - 18th Street Lloydminster, AB T9V 1V4 Tel 780 875 4700 Toll Free 1 877 264 2872

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Saskatchewan Oil Report 2012

Contents messages — reports — events

Message from the Premier of Saskatchewan – The Honourable Brad Wall.................................................8 Saskatchewan’s oil industry on track for continued growth........................................................................14 Lloydminster’s oil industry a force for change..................................................................................................20 Research at the University of Regina reduces the oilsands footprint.......................................................26 PCP please: the story of a PCP pro...........................................................................................................................30 Kindersley area booms with light and heavy oil production.......................................................................34 SETI builds capacity for industry training in the southeast..........................................................................38 Crude-by-rail service steps up to meet demand..............................................................................................42 Advanced science and advanced protection with Petro-Canada Lubricants.......................................44 Roll on, Saskatchewan!...............................................................................................................................................46 Petroleum Technology Research Centre leads research into enhanced oil recovery.........................50 North Battleford’s competitive advantage attracts business and people..............................................54 AbaData excels as data management tool.........................................................................................................58 Safety comes first in Saskatchewan......................................................................................................................62 Estevan economy hitting on all cylinders...........................................................................................................66 Penta Completions provides entire rod-pumping optimization and design........................................70 Fraser Institute: Saskatchewan seen as highly attractive for petroleum investment...............................74 Pilot vehicle course truly one-of-a-kind..............................................................................................................76 Badger, Great Plains College go extra mile for safety.....................................................................................77 G.L.M. Industries introduces 3-D technology....................................................................................................78 Bakken rocks this stock!.............................................................................................................................................80 The changing face of geosciences in the 21st century..................................................................................82 Pure Energy fosters a culture of opportunity....................................................................................................86 The success of Saskatchewan’s oil industry creates new challenges on the transportation front.................................................................................................................................88 Nordic Oil & Gas poised to make significant impact in Saskatchewan....................................................90 Plan to attend the 20th Annual Williston Basin Petroleum Conference!.................................................92 Energy investing in Saskatchewan: An interview with Tom MacNeil of 49 North Resources...............94 New frontiers: Grit Industries launches new products, new locations..........................................................96 Making the most of the momentum................................................................................................................. 100 Camex gains ground in Saskatchewan............................................................................................................. 102 Stoney Mountain Rentals has the equipment you need for the oil industry...................................... 104 Polycore challenges ‘Give Us Your Worst Well!’............................................................................................... 106 PSAC works to help improve industry image................................................................................................. 109 The Swift Current benefit....................................................................................................................................... 110 The Midwest advantage......................................................................................................................................... 112 APEGS finalizes title changes................................................................................................................................ 114 Gyrodata guides the future................................................................................................................................... 116 Atom-Jet Group: the one-stop shop for every oilfield need.......................................................................... 118 Coil goes live............................................................................................................................................................... 121 RAM Industries Inc.: custom cylinder solutions for the oil and gas industry............................................ 122 Volunteers are key to CAPLA’s success.............................................................................................................. 125 Going the extra mile: A-1 Rent-Alls has extensive variety of large equipment available for North American clients........................................................................................................................................ 126 Stop the guesswork: contact Expro Group Canada Inc................................................................................. 128 Twenty-seven kilometres of FlexPipe Linepipe installed in less than a week.................................... 130 A proud past, a brighter future............................................................................................................................ 132 Clariant and Prairie Petro-Chem focused on growth................................................................................... 135 Sky High: ‘Solutions You Can Trust’...................................................................................................................... 136 GlobalFlow: ‘Integrated Energy Solutions’......................................................................................................... 139 Conquest Equipment Inc. brings real value to the oil industry............................................................... 140 CAPPA: proudly serving production accountants for over 50 years............................................................ 141 Get green with Kenilworth.................................................................................................................................... 142 Exceeding clients’ expectations through excellence................................................................................... 144 Empire Welding & Machining Ltd. proudly celebrates its 25th anniversary....................................... 147 Shaunavon: striving, growing – and open for business.................................................................................. 148 Saskatchewan Hotel & Motel Guide................................................................................................................... 151 Index to advertisers.................................................................................................................................................. 152

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Saskatchewan Oil Report 2012

SASKATCHEWAN Oil Report published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba, Canada R3L 0G5 www.delcommunications.com President & CEO: David Langstaff Publisher: JASON STEFANIK Managing Editor: KATRINA A.T. SENYK katrina@delcommunications.com Advertising Sales Manager: DAYNA OULION dayna@delcommunications.com Advertising Sales Representatives: ROBERT BARTMANOVICH | JENNIFER HEBERT GLADWYN NICKEL | JIM NORRIS COLIN JAMES TRAKALO Production services provided by: S.G. Bennett Marketing Services www.sgbennett.com Art Director: kathy cable Layout & Design: dana jensen Advertising Art: REANNE DAWSON | JULIE WEAVER Photo credit: Barney Creech.

Image courtesy of Summit Liability Solutions Inc. www.summitls.ca © 2012 DEL Communications Inc. All rights reserved. Contents may not be reproduced by any means, in whole or in part, without the prior written permission of the publisher.

While every effort has been made to ensure the accuracy of the information­contained in 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, Manitoba R2L 0G5 Email: david@delcommunications.com PRINTED IN CANADA | 04/2012

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Communications Inc.

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Fastest claim is based on comparing SaskTel 4G network service to Rogers HSPA+ network service, based on SaskTel test of average upload and download speeds in large Saskatchewan centers. Access speed provided by the network operator may vary due to the device being used, network congestion, distance from the cell site, topography, environmental conditions and other factors. Speed on the Internet is beyond the wireless network operator’s control and may vary with your configuration, Internet traffic, website server and management policies, and other factors. 4G not available in all areas.

Message from the Premier of Saskatchewan

The Honourable Brad Wall On behalf of the Government and the people of Saskatchewan, I welcome readers to the 2012 edition of the Saskatchewan Oil Report. This publication is a chronicle of the achievements of the many companies, institutions and communities that contribute to the industry’s growth.

As the pages which follow clearly illustrate, the industry in this province has shown resiliency and adaptability in the face of change; the dynamism of our oil and gas industry is reflective of the broader prosperity and optimism that is transforming the new Saskatchewan.

Independent forecasters have Saskatchewan leading the nation in economic growth this year. We are taking the lead in Canada.

Saskatchewan is an innovating province in a new economy and our government is committed to making the right decisions to keep our province on the path of steady, long-term growth. Researchers continue to advance enhanced oil recovery technologies at the Petroleum Research Technology Centre. We partnered with the federal government and the Saskatchewan Research Council to develop The Pipe Flow Technology Centre, which will lead to the commercialization of new innovations to assist oil, gas and mining companies in improving productivity.

The oil and gas sector is one of our province’s top industries, attracting billions of dollars in investment and accounting for more than 32,000 direct and indirect jobs. The industry contributes greatly to the prosperity of our communities, and is a major reason for our current economic success and enviable quality of life.

The year 2011 was a great year for oil well drilling in Saskatchewan, post8

Saskatchewan Oil Report 2012

ing its second-best year on record. The record that was broken in 2010 was broken again in 2011 for horizontal oil well drilling. There were 1,992 horizontal wells drilled in 2011, an increase of 30 per cent from the previous record set in 2010. Horizontal well drilling has become the standard in the Canadian oil industry and Saskatchewan was a pioneer in the application of these drilling technologies.

The total number of oil wells drilled in Saskatchewan in 2011 was 3,528, just shy of the record set in 1997.

Total Crown petroleum and natural gas rights land sale revenue for the 2011 calendar year amounted to $248.8 million, making 2011 the fourth-best on record.

Also, more than 5,000 oil well licences were issued in 2011.

Our province has consciously adopted a growth agenda, aimed at fostering continued prosperity that will pay for the quality of life Saskatchewan residents appreciate. When I talk to officials in your industry, they say that one of the things they value most is consistency. Your enthusiasm for the prospects you see in our province is encouraging, and this is why we strive to offer a highly stable, predictable and competitive regime for our royalties and taxes. You can continue to count on this in the future.

According to the 2011 Global Petroleum Survey released by the Fraser Institute, Saskatchewan is ranked best in Canada as the place for oil and gas investment. Saskatchewan’s rank as Canada’s preferred province in which to invest is testament to the importance of that stability. Our government is committed to moving Saskatchewan forward, and we will continue to offer the business climate that is essential to keep our province growing.

Saskatchewan leads the nation in growth in wholesale trade, retail sales and nonresidential construction. Average weekly earnings continue to increase, and unemployment remains consistently the lowest or among the lowest in the country.

Our population is at an all-time high of 1,063,535; clearly indicating that thousands of people are moving to, or returning to, our province in search of new opportunities. Our people, expertise, and innovation give Saskatchewan a significant advantage in the ever more competitive and dynamic energy sector.

We are confident that Saskatchewan is well-positioned for further growth, exploration and development. I invite you to read in these pages about the opportunities in our province and to explore this energy powerhouse that is attracting global attention. .

Brad Wall, Premier

We thank our clients, our communities and our employees, all of who have helped us grow to become a leader in the energy services industry.

CES is pleased to announce that it has become part of the Flint Energy team. We look forward to continuing to provide our clients with the same high quality and unparallelled service they’ve come to expect from CES. With our 37 year history in the energy services industry, CES provides a full range of services, including: • Environmental • Oilfield Maintenance • Lease Preparation Services • Hydro-Vac • Pressure Piping Skid • Horizontal Directional • Oilfi eld Construction Packages Drilling • Pipeline Construction • Major Facility • Picker Trucks • Facility Construction Construction • Gravel & Sand Hauling • Mainline Pipeline • Gas Plant Construction Turnarounds • Safety Sales • Insulating & Service • Welding • Pile Driving

(306) 487-2281 www.carsonenergyservices.com

• Lampman Head Office • Alida • Calgary • Carlyle • Emerald Park • Halbrite • Lloydminster • Regina • Saskatoon • Swift Current • Virden • Wainwright • White City

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WITH KENILWORTH

Kenilworth Combustion has made meeting the ever-changing process heating requirements of the Oil and Gas industry easy. Kenilworth’s burner systems are preassembled, function tested and ready for installation BEFORE leaving our shop. At Kenilworth, we believe in reducing install time, down time, emissions, cost and liability for our customers. Also, CSA Field Approval has never been easier with Kenilworth; we can coordinate the required inspections for all of our Process Heater Modules (PHM) and we guarantee a Field Approvable and compliant system... the first time.

The Kenilworth Combustion PHM is a burner system like no other on the market. With a full product line ranging from Under 1MM BTU/Hr (U1), 1MM-5MM BTU/Hr (U1-O5), 5MM-10MM BTU/Hr (O5-U10) Kenilworth Combustion has you covered for any application. With a heating requirement below 1MM BTU/Hr, the Kenilworth Combustion U1 Process Heater Module is the perfect system for almost any application.

The Kenilworth Combustion O1-U5 PHM has been developed with the same attention to ease of installation, reliability, safety and efficiency as the U1 PHM. The O1-U5 comes with a choice of three patented Kenilworth Combustion burners. Also, the O1-U5, as with all Kenilworth Combustion PHMs, is ready for the SCC/CSA field inspection without any worries.

The Kenilworth Combustion O5-U10 PHM comes with a choice of three patented Kenilworth Combustion burners. Kenilworth Combustion is proud to offer the Oil Gas Industry a simple and cost effective solution to its BTEX and Fugitive Emissions challenges. The Kenilworth Combustion BTEX and VRU (Vapour Recovery Unit) Process Heater Modules (PHM) have been developed over the last 10 years and are field proven. Kenilworth Combustion’s BTEX systems have a proven 99.9% destruction rate of BTEX at a fraction of the cost of other systems on the market. Whether you need to reduce your BTEX emissions or want to utilize fugitive tank emissions, Kenilworth Combustion has you covered.

Kenilworth Combustion developed their first tank skim system over 20 years ago.

These fully 316 Stainless Steel Skim Systems were designed with simplicity in mind.

The Kenilworth Combustion Tank Skim System utilizes a reliable single point pivot system free of cables, pulleys and hoses and is free floating. Regular maintenance does not require access to the inside of the tank and combined with an installation time of 4-5 hours, the Kenilworth Combustion Skim System is the clear choice for your Tank Skim System needs.

Take a look at the spec pages online at www.kenilworth.ca and see for yourself how simple your process heating project can be. Check out the conceptual skim install drawings and give us a call to get a quote or to answer any questions you may have.

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MAIN OFFICE 1-780-744-3974 Kenilworth Combustion Main Offi ce

Contact Heine Westergaard 1-780-744-3974

Nomad Electric in Northern Alberta Contact Clint Ferriss 1-780-624-2447

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When it comes to safety, our true colours really shine.

Anyone can offer up pearls of wisdom on the subject of road safety, but few companies live and breathe road safety each and every day. At Northwest Tank Lines there is simply nothing more important. For over 55 years, we have fostered a corporate culture of safety first - in everything we do.

Northwest surpasses regulatory safety standards and exceeds customers’ expectations through exemplary safety performance and through leadership roles with organizations including the Chemistry Industry Association of Canada (as a Responsible CareŽ partner and TransCAER member), and the National Tank Truck Carriers. Annually, Northwest is recognized for safety performance through external safety audits, regulatory safetyperformance statistics, and safety awards.

Like the black pearl, Northwest is unique - and our greatest value lies in our commitment to safety. Visit us at northwesttanklines.com.

12048NWTL_PearlAd_SaskOil.indd 1

12-03-30 12:40 PM

Case Study No. 14: JSK Consulting

“Where we used to rely on multiple programs and mapping systems to compile the data required for our work, we can now find the same information contained within AbaData, saving us both time and money.”

– Stacy Thygesen, JSK Consulting In the energy industry, time is money and few companies can afford to waste either.

That’s why Red Deer-based JSK Consulting relies on up-to-date, accurate information from AbaData for every stage of the work it does in the decommissioning and abandonment of oil and gas pipelines and facilities.

Whether it is estimating the cost of a project, getting a heads-up on underground conflicts, determining regulatory requirements or building valuable maps for on-the-ground field personnel, AbaData is JSK’s tool of choice.

Stacy recommends AbaData to others because the program is reasonably priced, easy to use and program support always exceeds JSK’s expectations.

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“In tight oil, highly efficient horizontal drilling, fracturing and completions are now a reality.”

Here in Saskatchewan, the experts from Halliburton deliver proven methodologies and the industry's largest portfolio of services and technologies to solve even your most complex tight oil challenges. Indeed, no other service company has this kind of track record for squeezing more production and cost out of existing wells—or more fully optimizing new ones.

What’s your tight oil challenge? For solutions, go to Halliburton.com/canadaunconventionals, or contact Bill Connely at 306-461-5600.

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© 2011 Halliburton. All rights reserved.

HALLIBURTON

Staying the course in 2012 Saskatchewan’s oil industry on track for continued growth

By Lisa Fattori Despite record flooding in the spring of 2011, Saskatchewan’s oil industry performed exceptionally well and is on course to enjoy the same success in 2012. Oil and gas sales for the year were more than $1 billion higher than in 2010, and the number of oil wells drilled increased by 29 per cent. In fact, 2011 oil production was 3.5 million barrels greater than in 2010 and the second highest on record, even though there were months of downtime in the heavily flooded southeast, Estevan-Weyburn area.

The industry’s comeback and impressive close to 2011 speaks to the diversity of Saskatchewan’s oilpatch and its producers’ flexibility and deftness in moving operations from one oil play to another.

Saskatchewan’s economic rebound in 2010 gained momentum in 2011, which instilled continued confidence in the province’s oil industry, enabling operators to carry out their capital programs. Oil and gas companies invested $4.5 billion in exploration and development activity, on par with 2010. The industry also provided direct and indirect employment for more than 33,200 people, for a nine per cent increase over 2010 employment figures. Favourable oil prices throughout 2011 contributed to the industry’s prosperity and analysts predict continued strength in prices through 2012.

Canada is the sixth-largest oil producer in the world – with a production level of 3.2 million barrels of oil per day in 2011 – and remains the largest exporter of petroleum to the U.S. In September 2011, Canada exported 2,829 barrels per day (b/p/d), to the U.S., while the second-largest exporter, Saudi Arabia, exported 1,479 b/p/d. Mexico ranked third with 1,192 b/p/d in exports.

Saskatchewan is the second-largest oil producer in Canada and exports 65 to 70 per cent of its annual oil production to the U.S. The province is home to the world-renowned WeyburnMidale carbon capture and storage (CCS) project, which has garnered international acclaim. Saskatchewan is also a leader in the research and development of enhanced oil recovery (EOR) methods, as well as green technologies that increase efficiencies in oil and gas production and reduce the environmental impact of resource development.

A Thriving Economy Economic indicators confirm Saskatchewan’s competitive edge and reputation as the ideal place in which to live, work and conduct business. The province’s population as of January 1, 2012 was 1,067,612, the highest level on record. In the second 14

Saskatchewan Oil Report 2012

quarter of 2011, Saskatchewan saw the largest net inflow of inter-provincial and international migrants since 1971. Unemployment remains low, while job growth continues to be strong.

In January 2012, Statistics Canada reported average weekly earnings of $904.42 for the province, which are the secondhighest in Canada.

Saskatchewan experienced tremendous growth in retail sales, wholesale trade, manufacturing shipments and building permits throughout 2011 and reached new records in the first two months of 2012. Seven independent forecasters rank Saskatchewan first or second in economic growth in Canada for 2012.

Average forecast GDP for the province is 3.0 per cent, ahead of the national average of 2.1 per cent. Saskatchewan’s oil and gas industry accounts for 20.7 per cent of the province’s GDP. Despite increased costs associated with last year’s flooding, the province has maintained a balanced budget in 2011-12. In the Third Quarter Financial Report from Saskatchewan Finance, revenue is forecast to be $11.06 billion, up $271.9 million or 2.5 per cent from Budget. Non-renewable resource revenue is expected to remain strong, accounting for an estimated 24.9 per cent of total revenue for 2011-12. Lower potash revenue and Crown land sales will be partially offset by higher oil revenue. Decreased Crown land sale revenue signals industry’s reallocation of funds toward drilling and exploration to prevent previously purchased land from reverting back to the Crown.

Industry’s focus on working current assets is a positive sign, as it suggests increased production in 2012.

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.

APPLICATIONS • Remote Access • High Speed Internet Process Process • Email and Telephone• Simplified • Simplified • • Detailed Archives

Our service, equipment and enhanced communications systems provide our customers with the necessary tools and data to manage their drilling operations more effectively than ever before.

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Oil revenue is up $61.8 million from the Budget. The upgrade is due to a higher forecast for West Texas Intermediate (WTI) oil prices and a decrease in the light-heavy differential, partially offset by a forecasted higher exchange rate. Oil production is forecast at 156.2 million barrels in 2011-12 as industry rebounds from the drop in production due to flooding in the spring and summer of 2011. At third quarter, the average fiscal-year WTI oil price is also higher, with a forecast of U.S. $96.60, up from the Budget estimate of $93.75.

Breaking Records The boom in drilling activity in 2010 continued throughout 2011, when the industry broke a new record in the drilling of horizontal wells. By year end, 3,528 oil wells had been drilled, up 29 per cent from the 2010 figure and close to the record for drilling set in 1997. Of these wells 1,992 were horizontal, an increase of 30 per cent over the number of horizontal wells drilled in 2010. The number of oil well licenses issued in 2011 was 5,069, up from the 4,225 licenses issued in 2010.

Oil was first discovered in the Bakken Formation in the early 1950s, but it wasn’t until the recent advent of horizontal drilling and hydraulic fracturing techniques that the oil play became economically accessible. Estimated oil in place in Saskatchewan’s portion of the Bakken ranges from 25 billion barrels to 100 billion barrels. Current Saskatchewan Bakken production is estimated at 70,000 bb/s/day, up from 64,600 bb/s/day recorded in December 2010.

The widespread adoption of horizontal drilling is moving into other emerging oil plays, including the Viking and Lower Shaunavon. As of the second week of February 2012, horizontal wells in the Viking play totaled 903, and more than half of these were drilled in 2011. Due to flooding in the Estevan area, the Lower Shaunavon saw increased activity with 238 horizontal wells drilled in 2011 and another 21 added by Feb. 9th, 2012.

Lloydminster had a very good year in 2011 with 814 vertical wells and over 300 horizontal wells.

In Saskatchewan, 91 per cent of the province’s drilling rigs are active compared to Alberta, which has 83 per cent of its rigs working. The Petroleum Services Association of Canada (PSAC) forecasts that 3,739 wells will be drilled in Saskatchewan in 16

Saskatchewan Oil Report 2012

2012, a six per cent increase over 2011. PSAC forecasts British Columbia’s drilling rate to increase three per cent, Alberta’s to increase two per cent and Manitoba’s to increase 14 per cent.

Over-supply and depressed prices continued to plague the natural gas sector in 2011, prompting operators to put their resources into oil production. Accordingly, the vast majority of total wells drilled in Saskatchewan in 2011 were oil wells.

For 2012, PSAC forecasts an average natural gas price of CDN $3.25 mcf (AECO).

The Process Renewal and Infrastructure Management Enhancements (PRIME) project reached an important milestone April 2, 2012 when Saskatchewan oil and gas companies started using the Petroleum Registry of Alberta. PRIME is an Energy and Resources initiative that will modernize oil and gas-related business processes and systems for both government and industry. Including Saskatchewan data on the Petroleum Registry of Alberta is a key component of the project. Operators now have access to a web-based online system for the submission of well and facility infrastructure data, monthly production and pricing information, and royalty taxpayer information. The new reporting system is particularly more convenient for those oil and gas companies that do business in both Saskatchewan and Alberta.

Upcoming PRIME improvements and efficiencies include selfservice information entry and access, which will enable operators to conduct ministry business outside of traditional business hours for 24-7 convenience. Companies may also benefit from reduced penalties for late and/or in-error reports, more accurate and timely information and reduced turnaround times. The broad scope of PRIME encompasses oil and gas royalty and tax billing; well, pipelines and flowline infrastructure; reservoir management; and petroleum tenure and subsurface management.

By the project’s completion in March 2015, legislation, regulation and reporting will be as simplified and efficient as possible, which will make Saskatchewan an easier place for operators to do business.

A Greener Industry Saskatchewan is also making advances in greener operating practices and emerging technologies for a more sustainable, environmentally responsible industry. In June 2011, Energy and

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Resources introduced Upstream Petroleum Industry Associated Gas Conservation Standards designed to reduce emissions from the flaring and venting of associated gas. The new standards will reduce greenhouse gas emissions by as much as 49 per cent. Rather than being flared off, associated natural gas that is rich in ethane, propane and butane can be processed and sold as value-added products such as liquefied petroleum gas.

The new standards will initially apply to new wells and facilities licensed on or after July 1, 2012. Implementation for wells and facilities already licensed prior to that date will not take effect until July 1, 2015.

In January 2012, the Petroleum Technology Research Centre (PTRC)) and University of Regina announced three new cleantechnology oil production projects that could increase the efficiency of oil and gas production and reduce its environmental impact. Two of the projects focus on improved water filtration systems for the treatment of produced water – a process that costs the industry an average of $3 million to $5 million per day. A more cost-effective treatment process to remove contaminants will help reduce production costs and foster enhanced water conservation.

A third project evaluates possible sources of nutrients for Microbial Enhanced Oil Recovery (MEOR) as a means to pump more oil from existing reserves that are in decline. Microbes have the potential to react in a reservoir and create solvents that improve the viscosity of oil. According to a June 2011

18

Saskatchewan Oil Report 2012

report by the Canadian Association of Petroleum Producers, between 2005 and 2010, Saskatchewan heavy oil production declined 36,000 barrels/per day. New microbial applications could improve recovery rates for depressurized, non-producing wells and provide revenue increases of $1.7 million to $3.4 million per well over five years.

Innovation in EOR techniques, including carbon dioxide injection, improves recovery rates of operating wells. New EOR technologies also have the potential to access Saskatchewan’s unconventional oil and gas resources that include natural gas in coal, shale gas, oil sands and oil shale. The Saskatchewan Petroleum Research Incentive (SPRI) is a provincial program that offers industry royalty credits for the demonstration of new technologies that will increase oil and gas production.

Since the incentive was first offered in 1998, 32 projects have been approved. The program is available to operators until March 31, 2015.

Saskatchewan is also home to the Weyburn-Midale CO2 Project – an 11-year PTRC-managed research and development project that measures, monitors and verifies the safe injection and storage of carbon dioxide in two producing oil fields in southeastern Saskatchewan. In addition, the project showcases the successful commercial application of CO2 injection in EOR. With the recent conclusion of the Weyburn-Midale project, local industry and oil companies worldwide can look forward to the dissemination of the project’s findings, and the adoption of Saskatchewan’s CCS model in other jurisdictions.

The official unveiling of the project’s Best Practices Manual occurred at the spring 2012 annual Carbon Capture Utilization & Sequestration Conference in Pittsburgh.

The expertise acquired with the Weyburn-Midale project is being applied to a new initiative by PTRC in partnership with SaskPower. The joint project provides a back-up carbon dioxide storage solution for SaskPower’s Boundary Dam Integrated Carbon Capture and Storage Demonstration Project. The Unit 3 facility at Boundary Dam Power Station in Estevan is a rebuilt coal-fired generation unit with carbon-capture capabilities for EOR purposes. Excess CO2 that is not sold for EOR will

be stored through PTRC’s Aquistore project in a saline reservoir located three kilometres underground. Aquistore is involved as an independent research project to study the safe, deep saline storage of CO2. Phase 1 focuses on seismic studies, monitoring and gathering data; research that will help SaskPower prepare for the commercial operation of the system, which is expected in the first quarter of 2014. SaskPower’s carbon capture initiative and the Aquistore project will provide scientific results about deep saline storage, help meet industry’s demand for CO2 for EOR purposes, and reduce greenhouse gas emissions by approximately one million tonnes per year.

In June 2011, the Fraser Institute’s Global Petroleum Survey named Saskatchewan as the best place in Canada for oil and

gas investment, noting that the province offers investors confidence in a stable, competitive royalty and regulatory structure.

Globally, Saskatchewan ranked eleventh-best in the world, out of the 136 jurisdictions across Canada and around the world that were evaluated in the survey. Such an honoured distinction is testament to the oil industry’s outstanding performance on all levels and Saskatchewan’s role as a world leader in resource development.

“Industry is very optimistic about 2012,” says Energy and Resources Minister Bill Boyd. “We continue to see high oil prices, strong drilling activity and a booming sector that is attracting workers from across Canada and around the world.” .

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19

Lloydminster’s oil industry:

a force for change

By Lyndon McLean

Thorpe Recovery Centre.

Oil production and exploration has long played a part in Lloydminster’s history and growth, creating a symbiotic relationship between industry and community. That relationship is more vital than ever, and industrial companies are making an impact not just economically, but on a profound level for all area residents.

With a population of almost 28,000, the Border City’s location on the Yellowhead Highway creates transportation, warehousing and distribution opportunities for the Lloydminster region. Because it encompasses municipalities in two provinces, it receives many of the benefits, programs and services of both provinces. The oil industry’s success impacts and complements the service, retail, construction, transportation and manufacturing sectors in the region, creating a wealth of opportunity. Several economic development organizations and business development services are dedicated to Lloydminster’s ongoing economic development, and the province of Saskatchewan is committed to creating a positive environment that allows businesses of all sizes to grow and prosper. Low corporate income-tax rates, tax credits, sales tax exemptions, training grants and low utility rates give Lloydminster a true economic advantage.

According to Ward Read, CEO of Lloydminster Economic Development Corporation, Lloydminster’s regional stability in the face of a change to Alberta’s energy royalties’ structure in 2007 is a good example of that advantage. With increased royalty rates to the Alberta government, 20 Saskatchewan Oil Report 2012

companies felt the impact and some business shifted to the Saskatchewan side of the region. In other parts of Alberta, that change would have been more significant, but in the Lloydminster area the overall impact of the royalty restructuring wasn’t felt as strongly.

Many local, regional and multi-national companies – including Canadian Natural Resources Limited, Devon Energy and Weatherford Canada – operate in the Lloydminster area, accounting for over 4,000 employees and billions of dollars in exploration and extraction investment.

And since Husky Oil began production in the region in 1946 and their refinery came online in 1947, the company has been a major presence in the area. The Husky Energy Upgrader has been operating since 1992 and is the main oil facility in the area. According to Husky Energy, its $1.6-billion facility produces 82,000 barrels per day. The company also operates the Meridian Cogeneration Facility, an ethanol plant and an asphalt refinery.

But more than just oil exploration hap-

pens in Lloydminster. The development of new technologies has been an important part of the region’s involvement in the industry, with cavity pumps and horizontal well drilling being developed and perfected in the region. With delays in the Keystone and Gateway pipelines, logistics options such as the new transload facility being built by Canadian Pacific Rail and NuStar Energy gain importance.

This project uses rail to ship heavy oil to the U.S., where refining capacity exists.

Giving Back to the Community Not only has Lloydminster experienced the oil industry’s economic benefits, it has also received a lot from companies.

Husky, a major sponsor of the 2008 Saskatchewan Summer Games, also supported the Husky Energy Speed Skating Oval and donated more than $12,000 to help the Prairie North Health Region outfit the Dr. Cooke Extended Care Centre with a track-lifting system that aids residents with limited mobility.

One beneficiary of the industry’s gen-

ADM facilities in Lloydminster.

erosity is Lakeland College. Its Heavy Oil Operations Technician program (HOOT) has received financial support from oil companies to expand training facilities and equipment, and companies have been eager to take in practicum placements and sit on advisory boards. The college has also worked closely with

companies to find out what they need in order to find labour market solutions.

“We’re very fortunate to have these partnerships,” says Kara Johnston, director of Energy, Entrepreneurship & Saskatchewan Programming.

The college is also helping to upgrade employee training. In July 2011, Lake-

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land began discussing power engineering training for upgrader employees with Husky and after just six months, the first part of the second-class program launched for online delivery. “This speaks volumes to the team and the partnership,” says Johnston. Once a program like this is developed, getting funding is easy, she says, but they’re fortunate to have the partners actually help develop relevant and important programming.

The program also allows companies to team build. “It’s win-win,” Johnston says.

Other companies are getting involved in the training as well. Biodiesel producer ADM approached Lakeland about second-class employee training, and CNRL chairman Allan Markin personally donated $200,000, which is going toward fast-tracking fourth-class online curriculum development and also expanding energy programming to include a two-year technology diploma program. Cenovus Energy is also offering ideas to develop that program’s heavy oil curriculum.

Another boon to the college and industry will be a new $15-million training facility with a second boiler. The facility will cut the amount of fourth-class practicum training time in half and allow for third-class training. The number of students will increase from 44 taking fourth class – almost half from Saskatchewan – to 120 students taking fourth and third class, with a total of 200 students, including online participants.

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Lakeland is currently awaiting government approval and starting to approach oil companies for funding, but the target date for opening is Nov 17, 2013 – Lakeland’s 100th anniversary. “We’re very excited about it,” says Phil Allen, vice president of advancement. Allen says institutions have to do more to help address labour concerns in the industry, and increasing the number of workers and helping upgrade current employees is a good start.

The college is also partnering with the Saskatchewan government to educate local First Nations members in the community, working with the Onion Lake Cree Nation on an Introduction to Heavy Oil & Gas program. By providing basic oil and gas training, as well as life-

style training, they’re giving community members skills to work in the oilfield and prepare them for the HOOT program, if they choose. Local industry partners are watching this program closely and have been very supportive of the initiative.

Another organization working closely with the oil industry, the Thorpe Recovery Centre, changes lives in a different way. Along with Husky, Devon, CNRL and a number of other companies have contributed to the treatment centre that helps people beat painful addictions and discover happier, more fulfilling lives. Started in 1975 with two beds, Thorpe recently opened a world-class 72-bed facility just outside Lloydminster. The new centre was designed and built to deal effectively with

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addictions, offering clients a wealth of activities in an environment focused on respect and dignity. Thorpe also works closely with oil companies in doing assessments and testing and helping write drug and alcohol policy, especially for small- to medium-sized companies that may need help with implementation.

According to Thorpe Recovery Centre Board chairman Stan Parke, the centre received support from the industry from the beginning of the new building project. And local companies, including FieldTek and Grit Industries, did their part too. Grit Industries president Wayne King even issued a challenge to other businesses to support the centre.

“We approached companies at a hard time for the oilpatch, in 2008-09, but they came through – and not just financially,” Parke says. “They believed in what Thorpe does. It’s very encouraging.” One company acknowledged that addiction is an issue that affects everyone and that they had to look at their responsibility. “With liability becoming more of an issue, companies want to make sure they’re doing what they can for their employees,” Parke says.

The Thorpe Recovery Centre and Lakeland College are just two of the organizations benefitting from the local oil industry’s efforts to help better the lives of local residents – with great appreciation. “Our community has benefitted greatly from a strong energy sector that has given to improve the region’s health and wellness, education and sport,” says Read. “They’ve been great corporate citizens.” .

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Research at the University of Regina reduces the footprint of the oilsands Large volumes of waste tailings, combined with slow dewatering rates, create serious tailings management issues in the oilsands. The Alberta oilsand deposits possess an estimated 175 billion barrels of mineable heavy crude oil. Spread over a 140,000-square-kilometre area, these reserves currently supply about 1.5 million barrels of oil per day with plans to double oil production by 2018. Oil extraction involves strip mining of the ore and separating the solid materials from bitumen using hot water. This process utilizes three times more water than the oil produced. The generated waste tailings (a mixture of fine and coarse grained particles and liquid) are stored in containment facilities with dykes constructed from the coarse fraction of the slurry. The fine portion of the sludge takes decades to dewater after maturing to a solids content of about 30 per cent in the first two years of deposition in the containment facility.

To date, approximately 750 million cubic metres of mature fine tailings (MFT) are stored on-site in the Athabasca region, and this inventory may reach one billion cubic metres by 2014 if the status quo is maintained.

Many treatment technologies, such as physical, natural, and chemical amendments and different types of co-disposal and co-mixing alternatives, have been developed to address these problems. Most of the methods have attained limited success due to one or more of the following reasons: high operational costs; skilled labour shortage; long-time commitment; low energy-efficiency; low bitumen extraction; inconsistency due to tailings variability; difficulty with the removal of supernatant liquid (water sitting above the sediment); detrimental effects on water quality; and low pumping efficiency.

The recent regulatory criteria (which require a 50 per cent MFT reduction by June 30, 2013) have sparked a resurgence in research and development. Dr. Shahid Azam, an associate professor in Environmental Systems Engineering at the University of Regina, is leading a team of researchers to address the MFT issues.

The team is conducting research to develop a step-wise dewatering method involving polymer addition, centrifugation, and thin lift drying. Conceptually, the synthetic polymers (commercially available chemical reagents) help bind the fine particles to form large clumps that

settle faster under gravity. These particle assemblages are then further dewatered by simulating an increased gravity in the centrifuge. Finally, the centrifuge underflow product, which still retains a certain amount of moisture, is deposited on the ground in thin layers where it loses additional water due to evaporation. “Our interrelated approach requires a fundamental understanding of solid-liquid-polymer interactions under high gravity and during drying,� explains Azam.

This step-wise strategy for accelerated tailings dewatering will help reduce the space required to contain the tailings and increase the stability of the containment facilities, as well as increase waste-water recycling and reduce contamination.

Supported by industrial funding and a state-of-the-art test facility, this research has produced very promising results at the laboratory scale and the team is enthusiastic to scale-up their activities in the field. Overall, this research is a significant step toward meeting the regulatory criteria in a sustainable fashion it provides a cost-effective, environmentally friendly and socially viable solution for the oilsands industry. .

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PCP please From the garage to world leader: the story of a PCP pro Kudu provides persuasive proof that you don’t have to be a huge multinational to be among the best. That is what Calgarybased Kudu has spent over twenty years perfecting – and over 20 patents using Progressing Cavity Pumps (PCP) in the artificial lift field proves it.

Kudu is an ISO-certified oilfield equipment manufacturer widely recognized for its PCPs, and related products and services. A privately held company with a workforce of approximately 300 staff, Kudu has emerged as the world’s second-largest manufacturer and distributor of PCPs. Significantly, Kudu has found a niche as a specialized pump manufacturer in a field where its major competitors typically are subsidiaries of much larger multinational conglomerates.

Certainly, Kudu’s success didn’t come easily. Furthermore, once success arrived, Kudu soon stood on the brink of bankruptcy as the oil industry took a dive in the late 1990s. Kudu founder and chairman Robert Mills along with his son, cofounder and current CEO Ray Mills faced financial ruin. It would have amounted to a cruel reversal and sad ending to what until then had been an uplifting corporate story.

With their track record of innovation in product development and sales, the Mills weren’t about to succumb to this “near-death experience.” With help from National Research Council Technical, the next round focused on process innovation. That meant improving quality and reducing costs by adopting lean production technology, specifically the Toyota Production System (TPS). The latter involves a string of process changes relating to production flows and inventory controls. Along with TPS came adoption of ISO 9001 standards.

30 Saskatchewan Oil Report 2012

Robert Mills, co-founder and chairman of Kudu (left) and his son Ray Mills, co-founder and CEO of Kudu.

Aside from the general economic conditions, other factors contributed to bringing Kudu to the brink of bankruptcy. The company had grown rapidly from a start-up working out of the family garage to a 70,000-square-foot manufacturing facility. In line with popular manufacturing trends at the time, Kudu increasingly outsourced production and supposedly played it safe by building inventories.

As Ray explains: “Everyone was telling us that if you wanted to get your prices down on a particular item, you need to order a large volume. If we found ourselves out of inventory – our solution was to buy more inventory to make sure it didn’t happen again. To control inventory, we tried to forecast demand by ordering material based on forecasts rather than on customer demand.”

Lean production prompted physical changes at the plant, such as installation of overhead bridge cranes to improve product movement and flows. Acquisition over a two-year period of new machining equipment and training staff to run it allowed most production – including untilthen outsourced activities – to be reeled back into the plant. Uniquely among all its competitors, Kudu now does all machining in-house. This, in turn, benefits customers through one-stop shopping and sole-source responsibility.

Where the Action Is Kudu likes to be where the action is by having thirteen field stores throughout Alberta and Saskatchewan. Field service centers located in Estevan, Kindersley, Swift Current, Macklin and Lloydminster are at the epicenter of PCP activity.

“Saskatchewan provides a great opportunity for our products and services.

The business climate is open and ready to take action in this ever-growing industry,” explains Alex Damjanovic, COO Kudu.

Kudu also has offices located in Russia, Romania, Kazakhstan, Oman, the U.S.A. and Australia. Their proximity to oilfield activity enables Kudu to have the knowledge, adaptability and responsiveness tailored to each operation’s needs. Kudu’s PCP specialists are considered the best in the industry and offer solutions that fit uncomplicated wells; customized options are available for a variety of tough conditions, as well.

Kudos for Kudu Kudu has received numerous awards including the Innovation Insights Award for Manufacturing Practices from the National Research Council of Canada. Kudu was also recognized as one of Canada’s Top 50 Best-Managed Private Companies, Calgary Manufacturing Industry’s 2008 Best Employer for medium-sized manufacturers, the Alberta Exporter of

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Kudu Gives Back Whether it’s supporting educational programs, funding sports teams or participating in local activities, Kudu gets involved. Implemented in 2002, the Kudu High School Scholarship program has helped many students progress in their educational careers.

The program is directed to the rural communities in Alberta and Saskatchewan where Kudu has field offices.

Kudu’s proprietary Tough CoatTM has superior resistance to corrosion compared to a typical chrome rotor.

A male and female student achieving the highest marks in their final year of study and enrolled in a full-time science-based program in college or university is awarded $500. Kudu also donated $150,000 in 2007 to Lakeland College in Lloydminster to help fund the new Bill Kondro wing. Kudu’s donation was the second-largest made to Lakeland College.

Committed to Research and Development Kudu’s product development is collaborative in nature. Listening and partnering with customers to support their initiatives and success is the Kudu process. The result is over 20 patents using PCPs in the artificial lift industry and co-operative research

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along with joint technical paper contributions with such majors as Husky, PennWest and Shell.

Though first geared toward heavy-oil production, Kudu PCPs found new applications in medium and light recovery and subsequently in coalbed methane production and gas-well dewatering. Propriety technology such as Tough Coat™ – metal coating that provides improved resistance to corrosion and abrasion compared to a chrome rotor; the PCP Well Manager – maximizes production through automation and optimization; or the thermal package – complete system for temperatures up to 350°, are all examples of Kudu’s successful first-to-market products.

The PCP Well Manager optimizes well production and protects against pump off.

Opportunities for Growth Not surprisingly, Kudu obtained its first foothold in Canada – and particularly in Western Canada’s mature oilfields, where approximately 40 per cent of wells rely on artificial lift. With Canada accounting for 75 per cent of the world market for PCPs, it remains a proving ground for advances in this technology.

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Kindersley area booms

with light and heavy oil production

By Tim Banman

Photos courtesy of the Town of Kindersley: www.kindersley.ca.

Saskatchewan Energy and Resources posted a strong land sale of $28.7 million of Crown petroleum and natural gas rights in 2012, bringing the total to $234.1 million for the 2011-2012 fiscal year. Province-wide, the KindersleyKerrobert area received the second most bids at $7.4 million, followed by the Lloydminster area to the east at $6.1 million.

Two energy companies operating in the region, Allstar Energy Limited and Raging River Exploration Inc., report the Kindersley area to be one of the best locations for oil prospects in Western Canada.

Last fiscal year saw the Kindersley/Kerrobert region post 64,156 acres for exploration licences and around 203,000 acres for leases. Land sales for exploration licences in the region accounted for 24,641 acres while sales for leases amounted to 153,253 acres.

Kindersley heavy oil accounted for 392 wells in 2011, including 355 vertical and 37 horizontal, according to government statistics. Kindersley light oil bore 541 wells. In 2012 before March 8, Kindersley heavy oil accounted for 81 wells drilled and light oil accounted for 126 wells drilled.

Allstar Energy Limited has operated in the Kindersley region since 2001 and also 34 Saskatchewan Oil Report 2012

operates southeast of North Battleford.

The company finished two horizontal wells at Kindersley before break up this year, bringing its total to 17 in the Viking area. Plans to complete another five wells by early April were put on hold due to the spring melt and will resume after the land dries out.

“We’ll get at them as soon as things dry out,” confirmed CEO and president Ashley Drobot.

Allstar produces around 550 BOE per day. 49 North Resources Inc. increased its ownership of All-Star Energy to 100 per cent this year. While 49 North manages the money, Allstar takes care of everything else, from field operations to planning and acquisitions.

“The services in the Kindersley area have been in the oil business for a long time so all the shops are well stocked and understand what producers need,” said Drobot. While Allstar has experienced some service delays, they were “not debilitating.” Drobot expects if oil prices remain strong, Kindersley will continue to flourish for years to come.

At Red Pheasant First Nation, Allstar has completed a 3-D seismic program in the south. Allstar hopes to identify optimal future drilling locations as well as increase

their understanding of the reservoir with the 3-D seismic program. With the recent “Riverside” acquisition of 15,000 acres in the October 2011 crown sale, Allstar has a total acreage in excess of 40,000 acres in west-central Saskatchewan.

Raging River launched on March 15 with an arrangement between Crescent Point Energy Corp. and Wild Stream Exploration Inc. Raging River operates exclusively in the Kindersley area on 120 net sections of land. The company currently has approximately 1,300 bbl/day of light oil production.

Raging River was created from a portion of the existing assets of Wild Stream Exploration. Neil Roszell, former president and CEO of Wild Stream and current president and CEO of Raging River, created the company to focus on light oil development from the Viking formation in the Kindersley area. With the formation of Raging River, shareholders have access to the upside of approximately 300 drilling locations “that we believe will add meaningful value for our shareholders over the next couple of years,” said Roszell. At press time, 20 horizontal wells have been drilled by Raging River in 2012 and plans area in place for another 40 to be complete by the end of the year. While the

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majority of future resource development is light oil, a portion of Raging River’s existing assets are in heavy oil.

Raging River is the third successful venture for the management team that has worked in the area for several years. “Our team truly believes in the Saskatchewan environment and the value that can be created ww there and supporting the communities.” Calling Kindersley the central focus of operations, the company’s business plan includes possible operations in southeast Saskatchewan, southwest Manitoba and eastern Alberta.

“What we find in the Saskatchewan environment is the landowners are very easy to work with. The Saskatchewan government is very favourable in allow-

ing us to conduct our business in a timely fashion,” said Roszell. “We see it as the most favourable environment in Western Canada to operate.”

Roszell attributes the development of oil assets in Saskatchewan to high oil prices and the well-designed royalty regime in Saskatchewan. The Saskatchewan royalty structure provides an encouraging environment in which to operate, said Roszell.

“I believe the Saskatchewan government has recognized that the spin-off benefits from all of the oil activity provides significant economic benefits to the province in addition to paid Crown land sale activity and royalties received by the province,” explained Roszell. .

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Saskatchewan Energy Training Institute Building capacity for industry training in the southeast

The Saskatchewan Energy Training Institute under construction.

With the recent oil boom, Southeast Saskatchewan is the epicentre for the drilling and service sector of the oil and gas industry. There are a number of large petroleum-based producers that maintain the operation of producing oil and gas wells. Coal mining, coal energy and power generation are all centred in Southeast Saskatchewan. The Southeast region is also known and globally recognized for CO2 injection, new technologies in fracture stimulation, and the Bakken formation.

With great anticipation, Southeast Regional College recently opened its new Saskatchewan Energy Training Institute facility in Estevan’s Glen Peterson Industrial Park. This state-of-the-art campus will provide the capacity to deliver specialized training and skill development to meet the labour needs of the various energy sectors and ensure the economic growth of the industry, region and province.

With eleven classrooms, three training labs, a computer resource room, a testing room, and a 250-seat lecture theatre, the 44,000-square-foot building offers the flexibility necessary to deliver a wide range of training. Trades programs like the pre-employment Electrician Cer38 Saskatchewan Oil Report 2012

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tificate require both classroom and lab resources on a regular basis. As such, SETI’s two smaller 2,416-square-foot labs provide the shop space for the hands-on practical training, with adjoining classrooms for theory discussion. Computer labs and dedicated classrooms are also available for full-time academic programs such as Power Engineering Technician, Office Education, and others designed for career advancement in the energy sector.

Increased capacity also accommodates the added need for specialized industry-

related safety training courses during peak training times. For the oil and gas industry, this occurs in the spring with last year’s enrolments pushing 1,800 during the months of March and April. The increased classroom space is a welcome advantage to meet the student numbers that are expected to increase in conjunction with the surge of oil and gas activity in the Bakken area. Furthermore the large three-storey, 4,882-square-foot training lab can accommodate SETI’s mobile Fall Arrest and Confined Space simulators,

thus providing the comfort of training indoors.

The building also showcases a large circular 250-seat lecture theatre with floor-to-ceiling windows and glass doors that can open into the expansive lounge.

Two 70-inch plasma screens accompany a 20-foot-wide projection screen and sound system that can accommodate large groups, industry-related events, or community events.

Although SETI programming has always been highly recognized and valued,

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SETI’s confined space simulator in the large training lab.

Photo credit: David Willberg, Estevan Lifestyles.

employers are very enthusiastic about the benefits of having a new facility.

With a local training option, employees can avoid the time, expense and safety hazards associated with travelling outof-province for specialized courses. Furthermore, SETI’s commitment to flexible and innovative programming will provide a highly educated workforce to advance technologies within the various energy sectors and meet the labour demands within the economy.

The SETI project broke ground in November 2009 with funding from Canada’s Economic Action Plan and the Federal Knowledge Infrastructure Plan. With this new facility and over twenty years of experience in industry training, Southeast Regional College and the Saskatchewan Energy Training Institute are positioned to attract and serve a variety of learners. It

The Saskatchewan Energy Training Institruly is an exciting time for energy traintute is located at 532 Bourquin Road in ing and education in Southeast SaskatchEstevan. . ewan!

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41

Crude-by-rail service steps up to meet demand

By Lisa Fattori

The drive to get product to market has

and in reaching higher-paying markets.

some oil producers and mid-stream com-

Canada’s Class 1 railways are respond-

panies looking to crude-by-rail service as

ing by ramping up service and partner-

a viable solution in expediting delivery

ing to develop transload facilities next to

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rail lines. While pipeline is the traditional and preferred system for moving crude, the roll-out of new pipeline infrastructure isn’t keeping up with record production, particularly in the Bakken play, where Saskatchewan Bakken production is estimated at 70,000 barrels per day.

The oil boom in North Dakota has sparked a surge of activity in building transload facilities and the trend to use dedicated unit trains, with 80 to 100 cars loaded with oil, has caught on in Saskatchewan. While the province has a more accessible pipeline system, when compared with North Dakota, bottlenecks do occur and rail service is picking up the slack to maintain consistent delivery to downstream markets.

“We use much of the Enbridge pipeline system, because it sits strategically where we’re producing and our market is in Chicago on the Enbridge mainline,” says Rene La Prade, senior VP of operations for PetroBakken Energy Ltd. “It’s not our business plan to use rail, but we are using it as an alternative when there

CP’s investment in its U.S. mainline to North Dakota is a successful expansion model that the railway is now rolling out in Saskatchewan. is oil apportionment on the Enbridge system.”

Unlike the time delays involved in locating pipeline and attaining necessary approvals before construction of a pipeline can even begin, infrastructure for rail service is already in place. What’s more, railways have access to coastal markets, such as California, Louisiana and Texas, which can fetch a $30 per barrel premium when compared to Cushing, Oklahoma prices. Crude-by-rail enables producers to make up the difference in cost, by accessing those prefered markets and achieving the highest possible netback.

Since the fall of 2010, Canadian National (CN) has provided truck-to-rail service in Willmar, Saskatchewan, transporting a regular supply of crude oil out of the Bakken. “CN’s network reach gives crude producers and marketers access to the U.S. Gulf Coast, U.S. Midwest, or into Eastern and Western Canada,” says CN spokesperson Warren Chandler in an email. “CN offers a flexible, scalable solution with assets and service to match the oil industry’s evolving needs. The CN network is fluid and has capacity to meet the needs of our customers as production increases. We can ramp up service to daily units train quantity based on customer demand.”

Canadian Pacific (CP) has also expanded service to meet increasing demand.

In North Dakota, the company moved more than 13,000 carloads of crude oil in 2011, which is a huge increase from the 500 carloads that CP transported just two years earlier. In the last two years, CP has invested $100 million in North Dakota, to expand network capacity and enhance rail service to meet increased traffic demands.

CP’s investment in its U.S. mainline to North Dakota is a successful expansion model that the railway is now rolling out in Saskatchewan. In December 2011, the company expanded the transportation of crude-by-rail from the Saskatchewan Bakken formation through a new transload facility, operated by Bulk Plus Logistics in Estevan. These shipments are in

addition to carloads of oil moving on the shortline, Great Western Railway, from a transload facility in Dollard. More recently, CP began shipping crude-by-rail from a new transload facility near Lloydminster to accommodate the initial transload and transportation needs of NuStar Energy LP. “The crude from Estevan is going to eastern Canada, as well as the Midwest

and West Coast of the U.S.,” says Ed Greenberg, spokesperson for CP. “Saskatchewan is a developing area of CP’s energy portfolio and, while we’ve been moving crude out of the province for some time, we’re ramping up service and bringing our North Dakota model to Saskatchewan.” .

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Advanced science and advanced protection with Petro-Canada Lubricants Petro-Canada Lubricants is proud to support Canada’s oil industry In Canada, the oil industry has a life of its own. It breathes global change, pumps success and feels the impact of environmental challenges. At the heart of this business beats the machinery that keeps it running every day. Petro-Canada Lubricants is dedicated to providing high-performance solutions to protect these vital assets across the industry.

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conditions, including severe temperatures, unpredictable weather conditions and unfavourable terrain. Oilsands mining is a key part of the global economy, and as such, there is greater focus on leveraging savings and preventing costly downtime – fundamental aspects of gaining that competitive edge. It takes the finest fluids and greases to meet the extreme demands placed on these machines.

Commitment, Experience and Expertise Petro-Canada has been an integral part of the Canadian oilsands mining industry for over 30 years and we understand the circumstances faced by today’s operations. To our customers, we’re more than just suppliers – we’re partners in helping them meet their business goals.

We know the challenges in finding the right lubricants for the job, which is why we work with our customers to identify the right products across their equipment. And with proven experience working with major OEMs, we make sure your machinery is kept running the way it was designed to. We carry this service leadership and support right through to daily operations, upgrades and change-outs, every step of the way.

Products that Perform It’s this expertise that we put behind our full suite of products, designed to keep operations reliable and efficient. We understand the importance in extending the life of your equipment and minimizing maintenance costs. Whether it’s on-road or off-road equipment, our lubricants are formulated to improve equipment performance, reduce downtime, cut operating costs, and extend equipment life.

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Petro-Canada’s fluids and greases are free from impurities that hinder performance. It all starts with 99.9 per cent pure, crystal-

clear base oils — among the purest in the world. Our base oils are produced from the patented HT Purity process. This severe HydroTreating process removes the impurities found in many conventional products.

These ultra-pure, API Groups II and III base oils are then blended with the highest-performance additives that deliver a clear advantage in our finished products.

Batch processing may be a traditional form of grease manufacturing, but Petro-Canada is anything but old-fashioned. Batch processing allows our crafters to take full advantage of the properties of the ultra-pure base oils. This advanced process produces results far beyond today’s standards: • Exceptional low temperature performance • Long life for maximum equipment durability • Reduced equipment downtime • Cost savings through lower maintenance costs • Increased productivity Proven Performance in the Field At our facility in Mississauga, Ontario, we produce over 350 innovative lubricants, specialty fluids and greases that deliver greater purity, durability, multi-functionality and performance.

We pride ourselves in being the total solution provider, no matter the operational challenges.

One of our standout products in the Canadian oil industry is the VULTREX family of greases for open and enclosed gear lubrication. These products contain synthetic fluids to provide excel-

lent performance for handling some of the harshest operating conditions – from intense summer heat to severe winter cold, and wet or dusty environments.

Customers choose VULTREX OGL time and time again because of its ability to extend shovel component life, which can provide customers with reduced operating costs and savings. Petro-Canada’s VULTREX OGL technology is proven to extend BI 395B shovel component life by an average of 25,000 hours. This translates to time and money saved in replacements and repairs.

VULTREX is among many of our superior products formulated for use in today’s oil mining and drilling operations, including: • PRECISION – Greases for a wide range of equipment • ENDURATEX – Gear oils • DURON – Heavy duty engine oils • HYDREX – Hydraulic fluids These are just a few of our advanced products, but we won’t stop there. Our commitment to innovation will continue to make Petro-Canada an industry leader, now and into the future. .

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Saskatchewan Oil Report 2012

45

Roll on,

Saskatchewan!

Saskatchewan is Canada’s second-largest oil producer and the second-highest mineral producer. We have some of the highest-grade deposits of uranium in the world and unmatched energy resources, with an estimated $50 billion to be invested in capital mining projects over the next 20 years. CNN called Saskatchewan “a hot spot… an asterisk to the entire country when it comes to the economic climate.”1 Saskatchewan also boasts available jobs and an unemployment rate significantly below the national average, both of which fueling a growth to its already adroit labour force. We also have depth in the labour force, with the largest percentage of workers under 25 in Canada. Our central location, access to markets, affordable cost of living and vast sunny skies are shining a global light on the splendour of Saskatchewan.

Despite all the bolstering about Saskatchewan’s energy resources, we should not forget about the industry that developed our work ethic, intelligence and attractive environment. Forty-four per cent of Canada’s cultivated farmland is found in the land of living skies. Saskatchewan is the world’s number-one producer of fertilizer potash and the world’s largest exporter of dried peas, lentils and mustard. We are a major exporter of wheat and flax, as well as Canada’s second-largest cattle producer. Andrew Ross Sorkin, columnist for The New York Times said, “If you care about the world’s food supply, you care – whether you know it or not – about Saskatchewan.”2 Saskatchewan literally feeds and fuels the world. With this in mind, it is clear that preserving our envi46 Saskatchewan Oil Report 2012

ronment should be paramount throughout our economic growth.

Our provincial government is promoting responsible management of our resources through the public review of the Saskatchewan Environmental Code. It is further focused on fueling the economy as demonstrated in the Fraser Institute’s Global Petroleum Survey in 2010, which stated “Saskatchewan has a fiscal regime that encourages investment.”3 In addition to this, we are home to one-third of Canada’s agricultural biotechnology industry performing research in health, agriculture and clean energy. Shining examples of this are ITC’s CO2 capture and storage project, notably the world’s largest, and the Boundary Dam Power station that is one of the first clean coal/carbon capture projects. We all agree that we cannot ruin the resources above the earth to get the resources beneath it.

Sitting atop the Williston basin is Canada’s breadbasket. In fact, 45 per cent of the total area of Saskatchewan is valuable farmland. Sharing this valuable resource is our growing oil and gas extraction sector that in 2010 grew by 20.3 per cent.

This continuous growth is increasing the demand for suitable land for the disposal of drilling waste and increasing the potential impacts on this natural resource.

Industry, government and landowners alike are focused on protecting our natural resources but the traditional methods of managing drilling waste disposal are in dire need of improvement.

The Summit Earth™ Compliance Management System is just such an innovation. Long overdue, this technological ad-

vance ensures that soil and water quality are preserved throughout the disposal of drilling waste on our precious farmland.

This is achieved through a custom GPS guidance and automation system engineered to regulate and control disposal operations by ensuring regulatory guidelines are met. The Summit Earth™ S3-S Navigator is similar to the precision farming equipment utilized today to optimize field management in the agricultural industry. The S3-S Navigator is mounted onto existing drilling waste disposal equipment, where it regulates disposal operations based on compliance parameters entered into the system. The S3-S Navigator is further partnered with custom web-based GIS software and a data entry platform that has been engineered with powerful compliance management, mapping and reporting capabilities. The combined result is the first and only innovation in the drilling waste management industry that is truly engineered to ensure compliance parameters are met. The direct result is the protection of our natural resources and the proper management of these operations through technology and innovation. This not only affects agriculture but also forestry, fishing and hunting which combined, contributed 11 per cent to Saskatchewan’s Gross Domestic Product in 2010. Forecasters continue to believe that Saskatchewan will be among the leading provinces in real GDP growth as commodity prices and global demand continue to increase.

This innovative industry leading system has been developed by Summit Liability Solutions Inc. (Summit). A proud mem-

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ber of Saskatchewan industry for nearly seven years, Summit is Western Canada’s leading environmental service provider with offices in Weyburn, Swift Current, Lloydminster, Calgary and Fort St. John.

Summit is focused on environmental stewardship through innovation, technical proficiency, continuous training and service excellence. The Summit Earth™ Compliance Management System is the pinnacle of achievement for a company who believes there is a better way to service our customers.

When it comes to securing the futurewhether it is for families, communities, or industries certain things need to be in place – materials and resources, businesses to access them, skilled people to run them, investors to support them and strategies to guide them.4 Summit is excited to ‘Roll On’ with Saskatchewan and lead by example with the province in developing and providing the tools and technology to ensure a sustainable future. Please visit our website at www. summitls.ca for a full demonstration of the Summit Earth™ Compliance Management System.

FOOTNOTES: 1 Simon, Mallory. Saskatchewan a jobs ‘hot spot’ in Canada. CNN World, 4 Mar. 2009. 21 Mar. 2012 <http:// articles.cnn.com/2009-03-04/world/ saskatchewan.economy_1_saskatchewan-province-unemployment?_ s=PM:WORLD> 2 Sorkin, Andrew Ross. “Worrying Over China and Food.” The New York Times, 11 Oct. 2010. 21 Mar. 2012 <http:// w w w. n y t i m e s . c o m / 2 0 1 0 / 1 0 / 1 2 / business/12sorkin.html?_r=1&=dbk#> 3 Angevine, Gerry and Miguel Cervantes.

Global Petroleum Survey 2010. Fraser Institute, 24 June 2010. 21 Mar. 2012 <http://www.fraserinstitute.org/research-news/display.aspx?id=16223> 4 Government of Saskatchewan. Media: Saskatchewan has what the world needs. Regina: Enterprise Saskatchewan, 2012. <http://www.enterprisesaskatchewan.ca/media> .

48 Saskatchewan Oil Report 2012

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Petroleum Technology Research Centre leads research into enhanced oil recovery Two of the most pressing problems in the Saskatchewan oilpatch today relate to the production and use of water during extraction processes, and the sharp tailing off of production from oil wells – particularly in the heavy oil areas in the west of the province, and the Bakken formation in the southeast.

The Petroleum Technology Research Centre (PTRC) has been a world-leader in developing enhanced oil recovery technologies that help improve oil production while also lessening environmental impacts. As such, both of these challenges to the Saskatchewan oil industry – water production/use and sharp declines in oil

recovery – are tailor-made for new field trail projects announced by the PTRC in early 2012.

The Western Economic Partnership Agreement (WEPA) has contributed over $800,000 to develop new field-testing technologies through the PTRC and its corporate and research partners. In a twopart program, researchers at the University of Regina will help develop new water filtration methods and ceramic membranes in the lab with the intention of scaling up those technologies for use in field testing.

In the second part of the program, the PTRC is working with several mediumsized companies to actually build and

refurbish water processing and separator units for the field, in order to capture samples, separate the produced fluids in a field setting, and optimize the removal of oil from produced water in real time.

Such in-situ technologies could be scaled up but still remain transportable, offering small- and medium-sized producers the opportunity to eliminate one of the most costly sides of their operations – namely disposing of produced water. If the PTRC’s field testing goes well, it may be possible to use produced water from oil reservoirs for other industrial and agricultural uses rather than be concerned about their safe disposal.

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“Linking the PTRC’s research with INCAS3’s proven technologies should provide exciting new windows for enhanced oil recovery in Saskatchewan,” notes Dr. Malcolm Wilson, CEO of the PTRC.

The PTRC is also working with a Dutch research not-for-profit company – INCAS3 – to test their micro-sensor technologies in heavy oil reservoirs. One of the biggest problems with oil production in the heavy oil zones of Saskatchewan is that initial production from these reservoirs – called cold heavy oil production with sand (CHOPS) – leads to a rapid decline of production in a short period of time. It is suspected that this occurs because the amount of produced sand with the oil leads to channels, or “wormholes”, in the reservoirs that cause the production rates to drop.

The micro-sensors produced by INCAS3 could be fine-tuned to help map these wormholes, thus leading to more focused drilling, waterflooding and other enhanced oil-recovery methods. If the sensors prove their worth in heavy oil locations, they

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might be tried in other sharply falling production zones like the Bakken.

“Linking the PTRC’s research with INCAS3’s proven technologies should provide exciting new windows for enhanced oil recovery in Saskatchewan,” notes Dr. Malcolm Wilson, the CEO of the PTRC. “We’re sure that our research will help significantly increase recovery from resources not just in Saskatchewan, but globally wherever similar reservoirs exist.”

As the PTRC enters its fifteenth year of research in 2013, it is poised to help develop Saskatchewan’s, Canada’s and the world’s hydrocarbon resources with more environmentally sound and economical methods. The company continues to push the boundaries of enhanced oil recovery.

For more information on the PTRC’s EOR research, visit www.ptrc-steps.com. .

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North Battleford’s competitive advantage attracts business and people

By Tim Banman The City of North Battleford is preparing for a residential and commercial boom as its population grows in tandem with rapidly developing oil assets in northeast Saskatchewan.

The City is making sure to have residential, industrial and commercial land available for at the right price, says Denis Lavertu, director of business development. At press time, city council has approved a 39-lot residential subdivision in Fairview Heights, including single and multi-family lots adjacent to newly added playground equipment and courts.

Council will be investing $3 to $4 million in a 14-acre industrial subdivision and another $3 million for commercial land development. The City will also welcome a private 40-lot residential subdivision in Killdeer Park, the first time in decades a private developer has taken on a residential subdivision, says Lavertu.

The City of North Battleford welcomed $74.5 million in value from 131 building permits in 2011, maintaining one of the highest investment levels in years.

54 Saskatchewan Oil Report 2012

The City of North Battleford has taken a proactive view of attracting people to live and work in the city.

The City has taken a proactive view of attracting people to live and work in the city, including obtaining a presence at Toronto’s National Job Fair. North Battleford is the recipient a lot of interprovincial migration and is third among Saskatchewan cities for receiving landed immigrants, explains Lavertu.

“We’re definitely seeing a lot of employers taking advantage of the immigration policies and programs of the Province,” he says. “That’s been highly successful for some of our manufacturers.”

Local educational institutes encourage students to stay by offering chances for youth to try different trades available in North Battleford. The 2011 Statistics Canada census shows an increasingly young population and overall growth of 5.3 per cent, to 13,888 from 2006.

The City plans to open the Credit Union CU Plex this year, featuring an aquatic centre with a wave pool, competition pool and water slide, performing arts theatre, and a field house complete with a running track and a curling rink.

Land values are increasing at a consistent rate and costs for land development and infrastructure increase in tandem with provincial trends, but North Battleford is still one of the most cost-effective places in which to live, work and invest, Lavertu says.

While North Battleford has been criticized for a high mill rate, its low municipal assessment keeps actual individual taxation for businesses as one of the most affordable places to do business in Saskatchewan. A recent Relative Tax Comparison of Saskatchewan Cities

report found North Battleford to offer a competitive advantage over eight cities in the province with the lowest total municipal assessment of communities compared, and in most cases the lowest relative property tax per square foot. The assessment compared Saskatoon, Regina,

Prince Albert, Moose Jaw, Yorkton, Swift Current and Estevan.

North Battleford ranked lowest in residential assessment in eight of 10 housing type comparisons, and 18 of 20 sampled residential properties enjoyed below average total property

taxes. Five of seven commercial property types have the lowest assessment in North Battleford. Large retail outlets compared paid 31 per cent less in average property taxes, while coffee shop franchises compared paid 50 per cent below average. .

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Typhoon - Bi-Directional Reamer

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Cuttings Mobilizer - Debris Management Tool

Designed for maximum performance and easy handling in horizontal or deviated wells, the Cuttings Mobilizer is useful in reducing torque and drag problems by removing cuttings resting on the low side of the wellbore, while strategic placement of clusterite and stabilizer orientation are tailored and built into the tool to assist in reaming operations. Reduction of the ECD (equivalent circulating density) by keeping the wellbore clear of cuttings is one of the major benefits of using the Cuttings Mobilizer.

Antenna Sub - Electrical Gap Sub

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excels as data management tool

When looking for a mapping tool to provide them with current, accurate information on the energy industry, many companies turn to AbaData.

The oilfield information system developed by Abacus Datagraphics out of its Red Deer, Alberta office has become a leader in providing information used by a wide range of industry representatives. AbaData’s clean mapping, coupled with an intuitive interface that allows users a myriad of choices in how information can be accessed, is used both at the field level and in head offices.

In the eight years since the program was released, AbaData has evolved from a tool showing primarily pipelines, wells and basic infrastructure to a comprehensive surface land tool.

And while the program started off as an Alberta-only enterprise, Saskatchewan and British Columbia now feature prominently on AbaData, highlighting a booming resource sector in the three western provinces.

New datasets still get added regularly and reporting and dataacquisition functionality is enhanced to reflect the requests and requirements of its growing pool of users.

The information available on the program ranges from detailed well and pipeline information to soil data, water well locations, wildlife species at risk boundaries and a host of other information critical to working in the oilpatch. The primary goal of the program is to be a one-stop shop for oilfield information.

Perhaps because AbaData does such an effective job making a 58 Saskatchewan Oil Report 2012

wide range of public data available to its users, more and more companies are looking to AbaData to help them manage their proprietary data as well.

AbaData now features a host of custom features to help users track inventories, manage inspection scheduling, map infrastructure and meet regulatory requirements.

Extensive lease, pipeline and facility inspection functionality – developed at the request of a major producer – allows Alberta, Saskatchewan and B.C. employees to manage the inspection requirements of thousands of wells. From any location, they can log in to AbaData and view statistics and reports based on more than 100,000 well inspections they have entered into the system.

Another producer uses AbaData to track pipeline risk, tying its pipeline risk assessment data to the pipelines on AbaData so risk can be managed before issues arise. Colour-coding pipelines on the map based on their assessed risk allow for a more intuitive use of the information, and provides a perspective not available by viewing a spreadsheet.

Utilizing AbaData’s GIS functionality, many subscribers have their pipeline sign locations mapped on AbaData, with data indi-

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As well as providing quick coordinates to any sign location, the mapping helps companies prove they are meeting regulatory requirements for signage.

For companies working to stay in compliance with pressure equipment regulations, AbaData features an equipment management tool. Users can log detailed information about pressure equipment including pressure vessels, tanks and pressure safety valves. Associations can be made from the equipment to physical locations on the map and inspections and inspection scheduling can be entered and managed through the system. Emailing capabilities and task generation let users handle the chain of events from start to finish and reporting tools give them a clear perspective of how a field or facility is performing.

Because of the large amount of information already housed in AbaData, adding different custom functionality – from tracking the environmental assessment

status of a site to viewing emergency re-

a wide range of public information in an

sponse plan resident information – can be

easily accessible way, Abacus sees future

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growth coming from AbaData’s ability to

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enhance the value of users’ proprietary

around the program’s ability to provide

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60 Saskatchewan Oil Report 2012

or service rig.

For more information on our rig moving services or a quote, call 1.800.463.2232

Safety comes first in

Saskatchewan

With vast natural resources, Saskatchewan has developed into an energy giant with the most diverse primary energy resource base in Canada.

The province is the second-largest oil producer in Canada, accounting for 17 per cent of total crude oil production and the third-largest province producing natural gas.

Opportunities in Saskatchewan abound in exploration, extraction, processing and refining. The province has been ranked “best in Canada” for oil and gas investment in the Fraser Institute’s 2011 Global Petroleum Survey. Prospects for 2012 look bright with oil and gas drilling in Saskatchewan expected to increase by 11 per cent this year – the highest percentage increase among the four producing provinces.

Over 30 thousand people work either directly or indirectly in the upstream oil and gas industry in Saskatchewan, and their safety is of prime importance. Workplace injuries can impose a profound emotional and financial toll on victims and their families, on their communities and the places they work.

The Government of Saskatchewan is committed to securing a strong and prosperous province where the health and safety of our residents is a priority and that’s why it works closely with Enform, the official safety association for the petroleum industry.

Both Enform and WorkSafe Saskatchewan, a partnership of 62 Saskatchewan Oil Report 2012

the Ministry of Labour Relations and Workplace Safety and the Workers’ Compensation Board (WCB), share the same vision – no work-related injuries or fatalities. The number of total injury claims fluctuates depending on how active the industry is and the total payroll for the industry in the province, but generally the number of WCB claims in the oil and gas sector has been decreasing over the past few years. In fact, WCB premium rates dropped in 2012.

However, continuous improvement is critical because workplace injuries in the industry are often quite significant. They can involve the loss of a limb or a serious spinal cord or head injury. So, it is important for the industry, through Enform and in collaboration with WorkSafe, to continue to develop safety management systems, implement proper orientation and training, assess and eliminate hazards and mitigate risks.

Overall, including all sectors, Saskatchewan has the secondworst lost-time injury rate in Canada but the province is making progress in improving its safety record. Between 2007 and 2011, there was a 22 per cent decrease in the time loss workplace injury rate in Saskatchewan.

This improvement in safety reflects the province’s increased commitment to both public education and enforcement. For example, there has been a 572 per cent increase in the num-

ber of Occupational Health and Safety (OHS) prosecutions between 2007-08 and 2010-11. OHS has also increased the number of workplace inspections it has conducted each year since 2006-07. The number of inspections in the petroleum sector has risen from 80 in 2007-08 to 165 in 2010-11.

The Government of Saskatchewan has also introduced amendments to The Occupational Health and Safety Act, 1993. This legislation will enhance the duties of employers, supervisors and suppliers as they relate to occupational health and safety.

The amendments will create a duty for prescribed owners to designate a prime

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contractor, and for that prime contractor to coordinate site safety at worksites where there are multiple employers or self-employed persons. In other words, every owner must take care to ensure those they hire are competent and take action when non-compliance of The Occupational Health and Safety Act comes to their attention.

The legislation will also establish procedures related to the creation and greater effectiveness of Occupational Health Committees and health and safety programs.

On the enforcement side, the legislation will increase the investigative authority for Occupational Health Officers in the course of their duties.

In addition, the amendments call for an increase in the maximum fines and range of penalties for Occupational Health and Safety violations.

These changes, when proclaimed, will serve as a significant deterrent to ensure that people will follow the Act, and are consistent with the best practices from other jurisdictions.

Over 500,000 days of productive work are lost each year in Saskatchewan and annual claim costs exceed $200 million.

If we are able to improve safety practices, it will lead to cost savings as a result of reduced workplace injuries and increased overall workplace productivity.

These measures also reinforce Saskatchewan’s perspective that it is the responsibility and effort of workplaces, not government that is the key to supporting everyone’s goal of Mission Zero – eliminating all workplace injuries and fatalities.

For further information, contact: Occupational Health and Safety Division Saskatchewan Ministry of Labour Relations and Workplace Safety Toll-free 1-800-567-7233 1-306-787-4496 (in Regina) .

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Estevan economy hitting on all cylinders

With great business, career and lifestyle opportunities, Estevan is a leader in growth and innovation, providing its residents tremendous facilities, recreation, culture and neighbours. The City and surrounding Rural Municipality of Estevan work together with several development agreements, all aimed to ensure business development is welcome and can happen effectively and efficiently.

The Estevan economy has been hitting on all cylinders since 2008, with coal-fired power generation developing globally innovative solutions at both the Boundary Dam and Shand power stations, oil and gas development advanced with a technology that only eight years ago was unproven, and serving as the regional hub for business service, retail and agriculture.

The energy sector is attracting both people and investment to the area, spurring the demand for the Saskatchewan Energy Training Institute (SETI). SETI, which opened in February 2012 in Estevanâ&#x20AC;&#x2122;s newly developed Glen Peterson Industrial Park, will

66 Saskatchewan Oil Report 2012

provide specialized training for career advancement in the energy sector. The local training opportunities provide the business community a tremendous resource with which to educate their employee base and come at a much-needed time, as projections are for increased development of the local Bakken and other oilfields.

Construction on the Integrated Carbon Capture and Storage Demonstration Project at the Boundary Dam Power Plant is well underway and expected to be complete in 2014. When operational, it will remove one million tonnes of CO2 emissions annually, thus extending use of the projected 300-year supply of locally mined coal and providing a large and consistent supply of CO2 to the local oil industry for enhanced oil recovery. A recent announcement (March 12, 2012) by SaskPower will also see the crown corporation, in partnership with Hitachi Ltd., construct a $60-million Carbon Capture Test Facility at the Shand Power Station in the R.M. of Estevan.

The community’s residents are witnessing increasing career and lifestyle opportunities as the economy and community demographic are becoming increasingly diversified.

As recent developments and activity in the oil and gas, mining and power generation sectors have spurred activity, the local retail, food, accommodation and service sectors have grown significantly to meet the demand of the regions’ increased population and investment climate. New stores, hotels and business have opened up throughout the city’s downtown, mall and northeast box-store areas.

As a community, the residents of Estevan are provided with excellent recreational facilities, including the newly constructed Spectra Place, home to the Junior A Estevan Bruins and serving as a premier events centre that, in its inaugural season, has already hosted Tom Cochrane, Kim Mitchell, Doc Walker, Hedley, Paul Brandt, two School of Hard Knocks MMA events – and which in August 2012, is scheduled to be the final stop in Simple Plan’s ‘Get Your Heart On!’ tour. The impressive new facility features 24 executive suites, a retractable window lounge overlooking the ice surface, and floor boards that can cover the ice surface within a matter of hours, thereby allowing for a gala dinner event to be held the evening prior to an afternoon hockey game. Spectra Place is located within the Souris Valley Aquatic

Noble Well Services Inc. Box 393 • Arcola, Saskatchewan • S0C 0G0 noble.well.services@sasktel.net FIELD SUPERVISOR Chris Nidesh | 306.577.8793 Rig #1: 306.577.8794 | Rig #2: 306.577.8759 Rig #3: 306.575.7997 | Rig #4: 306.577.8734 Rig #5: 306.575.8442 | Rig #6: 306.577.8785

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68 Saskatchewan Oil Report 2012

& Leisure Centre, also home to a six-lane swimming pool with waterslide and sauna, squash courts, a newly restored weight room and outdoor skate park and tennis courts.

Along with minor hockey, baseball and soccer, the community has recently worked together to develop a youth football club catering to children from six years old in flag football to the high school team playing in the Moose Jaw High School Football League. Two local dams provide unlimited fishing, swimming and boating opportunities, while the area also boasts two golf courses, a six-sheet curling rink, the Estevan Art Gallery and Museum, Souris Valley Museum and a great retail sector to meet all your shopping needs.

The most significant concern in recent years has been trying to accommodate the people required to fuel the community’s growth; as such, the City has been a provincial leader in per capita housing starts, with 44 new units already approved for

development in 2012 and the private development of a 118acre parcel of land in a new residential neighbourhood expected in the spring of 2012, where lots and homes will potentially be available in the same year.

Local and outside developers have been impressed with the community’s welcome approach to business development and are encouraged by the opportunities that exist for the coming years in Estevan; meanwhile, the community’s residents are witnessing increasing career and lifestyle opportunities as the economy and community demographic are becoming increasingly diversified. Estevan can provide your business with a number of advantages, including its location relative to highway, rail and airport infrastructure, a successful local business community that prides itself in giving back to the community and a workforce filled with the drive and excitement you’d expect from the Energy Capital of Saskatchewan. .

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69

Penta Completions provides entire rod-pumping optimization and design

By Jacqueline Louie

Penta Completions Supply and Services Ltd. is the only Canadian oilfield company specializing in the sale and service of sucker rods and related equipment. Founded in 1987, the Edmontonbased firm is celebrating its 25 anniversary this year. Originally focused on fibreglass sucker rods, Penta Completions expanded into a complete rod pumping optimization and services organization as directional and horizontal drilling increased well design complexity.

“We’ve earned a national reputation for helping producers design and install anything from a conventional pumping configuration to a highly specialized rod string,” says Penta Completions president Tom Dennehy. “The quality of our people is the key to our success. We are very careful not to sell more than we can service properly.” Penta has offices in Calgary and Estevan as well as Edmonton, with a total of 24 employees.

Rod pumping horizontally drilled wells inherently brings production problems such as rod and tubing wear to the forefront.

“When wellbores are planned, consideration must be given to the cost of drilling and the long term maintenance costs associated with rod pumping the well over the long term. Small changes to the wellbore path can minimize the long-term operating costs and extend the operating life of the well,” says Fred Morrow, contract engineer at Penta.

70 Saskatchewan Oil Report 2012

“Wells can be drilled in such a way that the operational costs will limit the economic life of the well. By designing the wellbore path with production concerns taken into consideration, changes in the wellbore path can increase a well’s economic life by many years,” Morrow says. Most of these changes, such as including a tangent to the curve in the build section of the wellbore plan, add little cost to the original drilling cost.

And the results are well worth it. “We’ve got wells where we’ve run three to four years with no rod or tubing failures,” Morrow notes. “Twenty minutes of conversation before the well is drilled can literally save hundreds of thousands of dollars in maintenance years down the road. And if you don’t do this, you could be on this well every two or three months because you’ve worn a hole in the tubing because of the wellbore path.”

This is where Penta Completions can help. “The service we put behind that product is what ultimately saves the oil companies money down the road,” says Bob Wanner, sales manager at Penta. “We like to be involved with the oil company from the conception of their drilling plan through to the actual completion and follow-up monitoring.”

Many of the companies that Penta works with will come to Penta before drilling the well to ask for feedback on their plan from a rod-pumping perspective; Penta will recommend chang-

es to the wellbore path if necessary. “We’ve been lucky enough to have a close relationship with our clients, which enables us to stay in contact after the well is put on production to monitor how actual pumping conditions compare to the design,” Wanner says.

As Morrow puts it: “What we bring to the table is rod-pumping expertise. The things that we do will increase the life of the downhole pump, limit pumping unit repairs, and increase the average time to failure from months to years. We’ve gone in and optimized rod pumping to where the mean time to failure has been increased by magnitudes.”

The company’s success depends on having well-informed customers, and to this end Penta Completions offers classes that deal with artificial lift, optimizing rod life and the basic economics of producing a rod pump well. “Our expertise is beam lift and sucker rod pumping,” Morrow explains. Since 1992, Penta has offered three-day rod pumping seminars, and the course is now more popular than ever.

Penta provides analysis and optimization recommendations from fluid level and dynamometer testing, along with a full line of steel and fibreglass sucker rods, sinker bars and related accessories. Its services also include long-term monitoring and optimization through cellular accessed pump-off controllers. Penta

72

Saskatchewan Oil Report 2012

specialists will supervise installs to ensure optimal performance and life cycles in rod-pumped oil wells.

The drilling technology that has come into play with horizontal completions will ensure the long-term success of companies like Penta. “Oil companies are now drilling in places they had previously written off as non-productive. All of a sudden, new drilling and completion techniques are breathing new life into the Cardium, as just one example,” Morrow says.

Since drilling-in operations come with an environmental footprint, “this requires a little more expertise in planning the wellbore path,” he explains. “Penta can reduce the costs to get the oil to the surface. We will help design these wellbore paths, which will decrease the maintenance during the economic life of the well.”

Another strength that Penta brings to the table is diagnostic capacity. “We have the ability to verify fluid levels production to increase production potential and equipment loading. Among the new horizontal wells that are being drilled, with proper planning it is now possible to install the pumps deep into the curve and get significantly improved life expectancies from the production equipment. We are installing pumps around the curve and having the run life exceed three years,” Morrow says. .

24 HOUR SER VICE FULL FLUSHBY & PRESSURE SERVICES BODY VACS & SEMI VACS STEAMER/PRESSURE WASHER SERVICES SALTWATER DISPOSAL PUMPING SERVICES TANK STINGING / SLOP HAULING COMBO UNITS Ken McConnell • Owner/Operator Fax: 306-397-2697 Box 238, Edam, Saskatchewan Email: rackenent@hotmail.com

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Saskatchewan Oil Report 2012

73

Saskatchewan seen as highly attractive for

petroleum investment

By Dr. Gerry Angevine, Senior Economist, Fraser Institute – Global Resource Centre

Since 2007, the Fraser Institute’s Global Resource Centre has been undertaking an annual survey of petroleum explorers and developers around the world. The primary objective is to determine which provinces, states, territories and countries are judged by survey participants to pose the lowest barriers to investment in oil and gas exploration and development.

Based on the survey results, jurisdictions are ranked according to their attractiveness for upstream investment. Year-to-year changes in the rankings provide valuable feedback to governments, as when Alberta decided to increase petroleum royalties in 2009 via a so-called “New Royalty Framework,” apparently oblivious to impact that the revenue grab would have on the province’s attractiveness for investment. The survey results also allow companies examining jurisdictions for possible new ventures the

opportunity to corroborate their own information.

The scores from the 2011 survey, which was undertaken from February through April 2011, indicate that Saskatchewan was more highly regarded by investors than any of the other Canadian provinces or territories. Moreover, Saskatchewan was ranked as the eleventh most attractive jurisdiction for upstream petroleum investment out of 135 jurisdictions around the world.

While Saskatchewan moved slightly ahead of Manitoba in comparison with the 2010 standings, there is little apparent difference between the two in terms of their attractiveness for investment. Saskatchewan moved to the top position in Canada only because of a slight deterioration in how Manitoba was perceived by survey respondents compared to the year before.

Manitoba falls just below Saskatchewan in the rankings but the

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difference is insignificant in statistical terms. The scores obtained by both provinces indicate that investors have little concern about entering into exploration or development commitments in Saskatchewan or Manitoba.

By way of comparison, the oil- and gas-producing provinces and territories of Newfoundland and Labrador, Alberta, British Columbia, the Northwest Territories, and would-be shale gas producers New Brunswick and Quebec achieved scores indicative of significant investment barriers and were ranked well below Saskatchewan and Manitoba, as well as Ontario and Nova Scotia, in terms of relative attractiveness.

The rankings are based on the scores received on 17 questions dealing with the commercial environment (e.g., fiscal terms applicable to the oil and gas industry; general taxation; quality of infrastructure; labour availability; and trade barriers); regulatory climate issues (e.g., cost of compliance; regulatory uncertainty, especially in relation to environmental regulation but also regarding administration, interpretation and enforcement; duplication and inconsistency; and legal system fairness); geopolitical risk (e.g., political stability and security of personnel and equipment); and other matters affecting the decision to invest, including disputed land claims and quality of publicly available geological data.

Saskatchewan performed well in the survey largely because the respondents perceived neither the commercial environment nor the regulatory climate there to pose significant barriers to investment. For example, Saskatchewan ranked first in Canada and ninth (out of 135) globally in terms of commercial environment factors, outperforming Ontario, New Brunswick, Manitoba, Nova Scotia, and Alberta and obviously much more attractive in this regard than the remainder of the Canadian jurisdictions, especially Quebec and the Northwest Territories.

Only Manitoba achieved higher marks than Saskatchewan in terms of regulatory issues and there was a large difference between the performances of both provinces, as well as in the remaining provinces and territories, in this regard. In Alberta, British Columbia, New Brunswick, Quebec, and the Northwest Territories, the cost of regulatory compliance and regulatory uncertainty were seen to be of much greater concern than in Saskatchewan,

which penalized those jurisdictions in both the Canadian and the global rankings. While land claim disputes were seen to pose somewhat of a barrier to investment in Saskatchewan, this factor is of much greater concern in other parts of Canada, especially British Columbia and the Northwest Territories. In Quebec and the NWT, regulatory duplication and inconsistency was seen as major negative factor – much more so than in Saskatchewan, Manitoba, or the other Canadian jurisdictions that were ranked.

The 2012 Global Petroleum Survey is now underway. It will be interesting to see whether Saskatchewan and Manitoba can improve upon their 2011 performances, perhaps moving into the top 10 in the global rankings. Also, will Alberta or British Columbia be able to move closer to Saskatchewan and Manitoba in the Canadian comparison? Judging by the extent of the concern over regulatory issues in both Alberta and British Columbia that was indicated by the 2011 survey results, any near-term improvement in those provinces’ scores is likely to be modest at best. .

The full report on the results of the 2011 petroleum survey is available at: http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/global-petroleum-survey-2011.pdf

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Saskatchewan Oil Report 2012

75

Pilot vehicle course truly one-of-a-kind Low on time commitment; high on credibility.

It’s a common theme throughout many of Great Plains College’s industry credit and safety training classes, and the Pilot/Escort Vehicle Operator (PEVO) course is no exception.

The only program of its kind in Western Canada, the college’s PEVO course provides formal training to the drivers who escort in front of and behind oversized loads, alerting other motorists to exercise caution when passing or meeting them. Operators play a critical role in assisting the load driver to manoeuvre wide loads, high loads, and long loads through some very difficult situations.

At the conclusion of the one-day (nine-hour) course, students who pass the final exam receive a Washington Department of Transportation (DOT) certificate. Thanks to a number of reciprocity agreements across the United States, this certificate allows its holder to legally work as a PEVO in 49 of the 50 states.

In Canada, the pilot escort vehicle operator is not yet regulated by the Department of Transportation, but federal legislation passed in June 2004 defines the responsibilities of employers to provide due diligence in protecting workers. Employers may

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Choose from our regular course offerings: • Confined Space Entry • Detection and Control of Flammable Substances • Fall Protection for Rig Work/Fall Rescue for Rig Work • First Aid/CPR/AED • GODI/Hours of Service/Fatigue Management • Ground Disturbance • H2S Alive • Power Mobile Equipment Operator • Safety Management & Regulatory Awareness for Wellsite Supervision (SARA)/ SARA Refresher

• Safety Program Development/SECOR Refresher To register or find out about these current listings and more, visit greatplainscollege.ca/courses or call 1-888-382-7972.

Education with ENERGY! 76 Saskatchewan Oil Report 2012 Sk Oil Report - GPC ad Feb 2012.indd 1

3/23/2012 2:56:14 PM

be charged and fines imposed under the Criminal Code if found negligent.

Additionally, provincial Occupational Health and Safety regulations state that an employee must be competent, and the PEVO program is designed to meet or exceed both provincial and federal OH&S legislation.

“The course material has been established to provide our students with the most comprehensive Pilot/Escort Vehicle Operator training in North America,” says instructor Warren MacNaughton.

The oil and gas industry requires the use of these operators daily. From rig moves to large vessels and equipment, PEVOs provide an important service to the carriers and the motoring public.

Safety is a top priority.

“The government has endorsed it and provided that feedback through their vehicle weights and dimensions committees because they find it to be the most comprehensive course around,” states MacNaughton, who has been teaching the course for 12 years. “And industry and stakeholders continue to support the program because it provides much-needed training they’re not going to get anywhere else.”

Course material includes learning: • regulations, restrictions, and requirements around oversized loads and their pilot vehicles • responsibilities of organizations involved with oversized load movement • manoeuvering the oversized load • use and maintenance of emergency equipment • responding to breakdowns and accidents • and unique industry requirements The arrangements with the Washington DOT were made specifically to take advantage of the widespread recognition of the certification, and the reputation of its provider. The program also incorporates the four western provinces in Canada and informs participants of what is expected while operating in other jurisdictions.

It’s a busy day but one MacNaughton knows is hitting the mark.

“You know [the students appreciate it] when you get a standing ovation at the end of the day from the 18 or so people who are in the class,” he said. “There’s definitely a lot of detail here.”

Demand for the program continues to grow, but course dates are limited and fill up quickly.

For more information on the Pilot/Escort Vehicle Operator course, or to register, visit www.greatplainscollege.ca or call Lyla Cooper at 778-5478. .

Badger, Great Plains College go extra mile for safety You don’t become “North America’s largest provider of nondestructive excavating services” by doing the bare minimum for your clients.

Or your own employees, for that matter.

“Our safety manual is pretty extensive,” states Kyle Hoffman, an area manager with Badger Daylighting.

“It’s way above the minimum safety regulations and Badger gets a lot of work just based off of that safety manual itself.

“Our guys all have extensive training. Badger has an online orientation course that’s continually updated, which all of our first-time employees go through. And if a worker has been here awhile and something new is added or updated, they have to take that module again.”

Part of Badger’s answer to the safety question – particularly around ground-disturbance training – for the past couple of years has been Great Plains College’s Energy Training Centre.

Ground disturbance is defined by legislation as “a work operation or activity on or under the existing surface resulting in a disturbance or displacement of the soil or ground cover, with

the exception of routine road maintenance, agricultural tilling to a depth of less than 450 millimetres below the surface, handdigging to a depth of no more than 300 mm so long as it doesn’t permanently remove cover over any structure located below the surface of the ground.”

Hoffman says the quality of customer service, convenience of the custom training options, and broad recognition of the safety tickets themselves have all contributed to a healthy relationship with the college.

“The biggest thing is the service is great there,” says Hoffman.

“Sometimes in training, guys just rush through it. Well it’s nice to get guys in right away but if they’re going to get in there, then let’s do it right and spend some time on the course. The instructors from the college were great.

“The other great thing is that the ground disturbance course is global. That’s the industry standard. A lot of oil companies in particular want to see that – they don’t want to see what’s offered through just whomever.” .

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77

G.L.M. Industries introduces

3-D technology

Technology in Saskatchewan’s oil and gas landscape is changing rapidly and companies like G.L.M. Industries are not passing up the opportunity to be first out of the gate when it comes to designing production equipment.

G.L.M. Industries’ manager of information technology Stephen Rikley suggests

the use of 3-D modeling technology is going to change the way they do business, thus providing the opportunity to put product performance and clarity at the beginning of the bid process.

“Our 3-D modeling, computer stress simulation software and the tank configurator can design and configure a tank to

your specs in a matter of minutes – eliminating guesswork – and stress tested to meet the highest standards,” he says.

“We have raised the level of sophistication.”

Saskatchewan is Canada’s secondlargest oil producer and the fifth-largest producer among all American states and Canadian provinces. This represents a significant opportunity for storage-related products, and G.L.M.’s Battleford, Sask. facility will be sure to benefit from an increased level of sophistication in their sales and design department.

“The drafting and design team had to be equipped with better tools that would allow for accurate designing, innovation, elimination of errors and time savings, and reduced costs,” Rikley explains.

With so many requests for custom fabrication today there is sometimes risk associated with building a product that is new to the organization. The integrated simulation software is capable of predicting possible failure and accurate placement of loads for proof of concept decisions to eliminate risk and make design changes quick and easy.

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78 Saskatchewan Oil Report 2012

“This will help our design teams to understand how the product could fail and to better choose the right materials under real-world conditions,” says Rikley.

In addition to increased design control, the 3-D modeling brings a new level of standardization to G.L.M. that will reconfigure their entire sales process, focusing on the most important people – the customers.

“Our sales people will be able to take our virtual design team to the client’s office where the salesperson and the customer will be able to pick out options and customize the tank on the spot,” Rikley says.

This process improvement will speed up the typical estimating and engineering process, allowing G.L.M. to move custom designs into fabrication more quickly and resulting in reduced lead times for customers.

Trevor Hunt, vice president of sales and marketing, describes the bid stages of any project as being riddled with technical clarifications and misinterpretation of the project requirements.

“In projects with a high degree of complexity, the engineering phase often takes longer than the actual fabrication time of the tank,” he explains. “Introducing the tank configurator and the modeling software to the bid design stage will allow us

to drastically shorten the engineering time required after a project is awarded.”

It is Hunt’s expectation that by working with the customer in creating the model up-front, they can be assured that the tank will be designed and built to their exact specifications.

“They will have the opportunity to review the model as part of their decision making process,” says Hunt.

With hopes to introduce the software in the very near future, G.L.M. Industries feels it will create a new aspect to their customer relationships and an invaluable visual component for clients.

“You’re going to see a whole new, innovative way to design and build a tank to your needs,” states Rikley. .

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Saskatchewan Oil Report 2012

79

Bakken rocks this stock!

Propelled by its energy and resource focus on the region, Integrity stock fund aims to deliver results to investors

By Katrina A.T. Senyk

North Dakota is currently fourth in U.S. oil production – behind only Texas, Alaska and California – with 6,500 wells producing roughly the same output as California’s 100,000 wells. And analysts predict North Dakota could soon surpass 1.2 million barrels per day, meaning the state could approach top oil-producer status.

In May 2011, Secretary of the Interior Ken Salazar announced that the U.S. Geological Survey would be updating its 2008 estimate of undiscovered, technically recoverable oil and gas in the U.S. portion of the Bakken formation, a valuable domestic petroleum- and natural gas-rich area that covers 200,000 square miles in sections of North Dakota, Montana, Saskatchewan and Manitoba.

Add to this the fact that more and more companies are entering the basin as time goes on, making for competitive lease ground and drilling pricing and housing shortages among other things, and you have the recipe for major oil industry intrigue.

Enter Robert Walstad, co-lead portfolio manager of Integrity Viking’s Williston Basin/Mid-North America Stock Fund, which invests in companies that are participating in, or benefitting from, resource development in the Williston Basin and MidNorth America regions.

Walstad evinces a fervent conviction that the area stretching from his home state of North Dakota down to Texas will in future generate additional new discoveries of oil and natural gas as a result of new drilling techniques and technologies, which have allowed companies to unlock more of the resources from the Williston Basin. Many companies operating there “are realizing that they are sitting on tons and tons of oil – more than they had expected,” he explains. “Naturally, we are delighted to take advantage of this opportunity.”

“I was in Houston just last week for the NAPE Expo, and I had the opportunity to visit with CEOs of several of our portfolio companies – one of whom indicated that they’d be moving an additional 19 drilling rigs into the Bakken region in 2012,” Walstad said, during an exclusive interview with the Saskatchewan Oil Report. “This speaks well for future development in the area.”

“I am excited that this unique fund, and its special focus, is doing so well,” Walstad enthuses. “The Williston Basin/Mid-North America fund is an unusual opportunity for investors who may have previously overlooked this tremendously resource-rich area.”

80 Saskatchewan Oil Report 2012

Williston Basin/Mid-North America Stock Fund (ICPAX) Top 25 holdings as of December 31, 2011 Kodiak Oil & Gas Corp.

6.19% National Oilwell Varco Inc. 5.58% Oasis Petroleum 4.79% Hess Corp.

4.61% CARBO Ceramics Inc. 3.93% Baker Hughes Inc. 3.93% Halliburton Company 3.66% Cameron Intl Corp.

3.52% Whiting Petroleum Corp.

3.41% Lufkin Industries Inc. 3.26% Continental Resources Inc. 3.26% Basic Energy Services Inc. 2.63% C&J Energy Services Inc. 2.53% Oil States Intl Inc. 2.25% Dresser-Rand Group Inc. 1.99% Patterson-Uti Energy Inc. 1.96% MDU Resources Group Inc. 1.86% RPC Inc. 1.79% GeoResources Inc. 1.75% Newfield Exploration 1.62% Tesoro Corp.

1.62% Canadian Pacific Railway 1.62% Enbridge Inc. 1.60% Kinder Morgan Inc. 1.59% Weatherford Intl Ltd. 1.57%

Big movers and shakers in the Bakken region are Continental Resources, Inc., Whiting Petroleum Corp., MDU Resources Group, Hess Corp. and Brigham Exploration Company (the latter of which Walstad uses as an example of a company that will “bring a lot more oil out of the ground than most people now expect” – and receive good prices for the oil, too), among other notables. What do these firms all have in common? Integrity Viking’s fund invests in each of these companies – as well as in scores of others involved with the oil and gas, minerals, agriculture and related businesses in this happening region.

Because the Williston Basin/Mid-North America Stock Fund normally invests in common stocks of companies engaged in natural resources-related activities in a limited geographical sector, the Fund’s performance largely depends on the overall economic condition of that industry and geographical sector.

Additionally, diplomatic, political or economic developments in foreign countries could potentially adversely impact the Fund’s investment in securities of foreign companies. .

Robert Walstad tours a drilling site in the northwest North Dakota portion of the Bakken oil play.

• Fund invests in companies participating in the

It’s no wonder why in 2011, the Williston Basin/Mid-North America fund was the top 12-month performer (for the second time in a row, no less) in The Wall Street Journal’s quarterly Winners’ Circle survey of diversified U.S.-stock mutual funds. This fund is definitely one to watch!

• ND is the 3rd largest U.S. oil-producing state.

• Top 25 holdings as of 3/30/2012*

Disclaimer The Williston Basin/Mid-North America Stock Fund is sold by prospectus only. Investors should carefully consider the investment objectives, risks, and charges and expenses of the investment company before investing. The prospectus contains this and other information about the investment company. You may obtain a prospectus at no cost from your financial adviser or at www.integrityvikingfunds.com. Please read the prospectus carefully before investing.

Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Diversification does not assure a profit nor protect against loss in a declining market.

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development and production of oil and related industries of the resource-rich Williston Basin/ Mid-North America region.

National Oilwell Varco Inc. Kodiak Oil & Gas Corp.

Oasis Petroleum Hess Corp.

CARBO Ceramics Inc. Whiting Petroleum Corp.

Halliburton Company Cameron Intnl. Corp.

TransCanada Corp.

Continental Resources Inc. Oil States Intl. Inc. Weatherford Intnl. Ltd. Lufkin Industries Inc. CF Industries Holdings Inc. Baker Hughes, Inc. Northern Oil and Gas, Inc. Basic Energy Services Key Energy Services Inc.

MDU Resources Group Inc. Agrium Inc. Flotek Industries Inc. Nabors Industries Dresser-Rand Group Inc. Schlumberger Ltd. Caterpillar Inc.

LEARN HOW YOU CAN INVEST TODAY! Contact Your Financial Representative

Or call us at 800-276-1262 or visit www.IntegrityVikingFunds.com *The portfolio may or may not hold and is not restricted to the companies listed above.

Because the Fund normally invests in common stocks of companies engaged in natural resourcesrelated activities in a limited geographical region, the Fund’s performance largely depends on the overall economic condition of that industry and geographical region. Additionally, diplomatic, political or economic developments in foreign countries could adversely impact the Fund’s investment in securities of foreign companies.

The Fund is sold by prospectus only. An investor should consider the investment objectives, risks, and charges and expenses of the investment company carefully before investing. The prospectus contains this and other information about the investment company. You may obtain a prospectus at no cost from Integrity Funds Distributor, LLC your financial adviser or at www.integrityvikingfunds.com. 1 Main St. N • Minot, ND 58703 800-276-1262 • Member: FINRA Please read the prospectus carefully before investing.

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Saskatchewan Oil Report 2012

81

The changing face of geosciences in the

21st century

What you need to know to survive The Changing Geosciences World It wasn’t long ago (at least it seems like just yesterday) that the domestic upstream oil and gas industry was still in the exploration phase – looking for new reserves, exploring for new play concepts and enhancing technology to find new resources.

Our geosciences disciplines were generally isolated disciplines that got together as technical teams but operated as generalists within their silos. The majority of geoscientists were involved in the exploration side of the business, and we spent our time and energy looking for new and yet undiscovered resources.

Now, the industry compass has swung around to other directions. Today, the most hydrocarbons being “discovered” are by the drill bit as unconventional resource. The new resource plays are based on resources that we’ve known existed in the ground for years – we just couldn’t economically get them to the surface. The “mining” of oil and gas (oil shale, tight gas, heavy bitumen) is now a materials-handling process rather than true exploration. Much of our current technology advancement is in the area of horizontal drilling, rock mechanics and induced fracturing – all designed to assist in the extraction of hydrocarbons from known areas and to bring the resource to market.

The Geoscientist of Today For the benefit of the undergrad student peering into the looking glass, trying to get a glimpse of our industry, I have classified today’s geoscientist into three broad classifications.

• The Explorationist: There are still a myriad of small to mediumsized companies in the exploration game, and they are doing a great job of finding oil (since natural gas is a four-letter word today). Geoscientists still play a vital role in finding these resources, and many senior geologists and geophysicists can be found at the helm or in the management team of most small outfits. They have a general knowledge of many aspects of their respective fields – seismic including acquisition, processing and interpretation, and geology – depositional environments, core and cutting analysis and play-making, having all cut their teeth early in their careers with large oil companies or major service companies.

• The Exploitationist: If you “follow the money” however, you find that most investment dollars are flowing into the unconventional resources. These geoscientists work as part of an integrated team to develop unconventional resources. They possess more specific knowledge of resource extraction tech82 Saskatchewan Oil Report 2012

By Larry Herd, CSEG President

nology and apply geology and geophysics to rock mechanics, pore connectivity and fracture analyses.

• The Specialist: One segment of our discipline, which I believe is a growing component, is the geoscientist who excels in a specific field of geology or geophysics. These are the ones most likely to speak at technical luncheons, and who understand and do research in a specific narrow field of study. They are the technical leaders in whatever field they work in, and are usually, but not always, found in major service or oil and gas companies.

A Primer for the Gen-Y Geophysicist What do you need to know to survive once you “get there”?

Well, here are my credentials: I graduated from the University of Manitoba in 1978 and am a full-fledged stereotypical baby boomer. My parents are classical “builders” (traditionalists) and my children (a relative term) are generation Y. I have managed a service company of baby boomers, gen-X and gen-Y staff for many years and I have at least a cursory understanding of the issues. For my sources of information, I flagrantly plagiarize from reliable Internet sources like Wikipedia and various blogs, rely on innuendo and hearsay, discuss issues with my peers over beverages and read the odd professional management article. All in all: sound and reliable sources of fully pedigreed information – see note of apology at the end of the article.

Kids these days... “They waste time chatting with co-workers.

They show up for work in shorts and T-shirts. They plug in their music, text on their phone and try to work at the same time. And

then they take the afternoon off to go skiing.” (Overheard in a management meeting.)

Welcome to the “Age of Entitlement”, the brave new world of generation Y. Gen-Yers value positive reinforcement, autonomy, positive attitudes, diversity, money and technology. They have grown up in prosperous and tranquil times and as a result, have a very optimistic outlook on life. They demand more input into their learning regimen, crave supportive feedback and lots of variety in the workplace and expect good salaries to spend on multitasking gadgets. They are the generation of “multi-taskers” and utilize technology to read, listen, type and talk all at the same time.

Why Understanding the Generation Gap is Important to the Gen-Yer You (the gen-Yer) need to understand the relational working environment in which you (hopefully) find yourself. I call it the “Totem Pole Concept of Corporate Hierarchy” – chances are that when you start into your new role as a young geoscientist, you will be at the bottom of the totem pole. Your boss will likely be a gen-Xer and his or her boss will likely be a baby boomer. If you think your boss doesn’t understand you – try talking to his or her boss!

Gen-Xers believe in investing in their own development rather than in their organization’s and they embody the entrepreneurial spirit. They are cautious about investing in relationships with employers because experience has shown that these relationships are not reliable. To a gen-Xer, this may mean two-week’s notice. They usually have clear goals and prefer managing their own time and solving their own problems rather than having them managed by a supervisor. This generation works hard but they would rather find quicker, more efficient ways of working so that they have more time for fun. While the baby boomers worked hard to move up the ladder, gen-Xers are working hard so that they can have more time to balance work and life responsibilities. When communicating with this generation, use email and texting as your primary tool, and talk in short soundbites to keep their attention. Keep them in the loop and ask them for feedback regularly.

Baby boomers, who coined the phrase “workaholic”, value peer competition. They work hard because they view it as necessary to climb the ladder of success, which is a fundamental belief. Boomers are the “show me” generation and body language is important when communicating. When dealing with boomers, answer questions thoroughly and expect to be pressed for the details, and present options to demonstrate flexibility in your thinking. They embrace the team approach to business and as long as you perform to their standards, they will accept you as an equal. They don’t appreciate rules for the sake of having rules, and they are not afraid of challenging “the system”. Baby boomers have strong principles and will fight for a cause if they believe in it.

Supportive Tips to Gen-Yers As a guideline to help you, the gen-Yers: • Experience does count. Learn from others’ experiences.

• If you don’t know – ask. If you don’t get an answer, ask again.

• Continue to network – your bosses may not understand, but your network of peers is an invaluable tool for both you and the company for which you work.

• Technology is a tool, not an answer. Use the technology to its fullest but remember that technology only assists in the creation of knowledge. Auto-picking the 3-D seismic survey on a workstation provides the data picks but doesn’t tell you how to interpret the trap.

Supportive Tips to Gen-Y Bosses and their Corporations As a guideline to help the supervisors of Gen-Yers: • Don’t manage; mentor. Don’t assign; explain. They thrive on learning through mentorship.

• Use action words, and challenge them at every opportunity.

• Don’t dictate; solicit. Gen-Yers appreciate interaction, and resent being talked-down to.

• Don’t ignore; respond. Gen-Yers have little patience for bosses who don’t respond. Email is preferred.

• Don’t conceal, communicate. Provide an open-door policy and make sure you talk to your gen-Yers. Seek their feedback and provide them with feedback regularly.

• Use humour and create a fun learning environment. Don’t take yourself too seriously.

• Encourage risk-taking. Encourage them to break the rules so that they can explore new ways of learning.

As a leader of a corporation whose employees span the three generations, you might consider restructuring leadership across the generations, providing compensation, benefits and incentives to satisfy each generation. The traditional boomer’s “onesize-fits-all” strategy won’t work. Stop trying to communicate using the standard company line – effective corporate communications must now include multiple formats and styles.

Closing note: the Scale-up Challenge As an industry, we are facing an incredible dilemma. Our brain trust demographic is retiring, and we have a small group to fill their shoes. While the job market should be running full throttle to replace us, the rapidly departing baby boomers and early genSaskatchewan Oil Report 2012

83

Xers, hiring is still subjected to the whims of the ebb and flow of oil economics. Yesterday, all of the new grads were offered jobs; today, there are many who go without an interview. As soon as the industry regains its traction and needs to fire on all cylinders, where are the experienced talent to drive business forward? We had better figure out more ways to keep our young people enthused about the geosciences or we wonâ&#x20AC;&#x2122;t have replacements coming in our stead.

Authorâ&#x20AC;&#x2122;s note: An apology to my sources (Sharyn Devereux, Catherine Jones, Shane Austin, Jennifer Blanchard and Ray Williams); I have mutilated this discussion so much over the years so as to make all references from reputable sources indistinguishable from my own. If you recognize any of the text as direct quotes, I will just plead ignorance so I ask your indulgence.

About the author: Larry Herd is the president of RPS Boyd PetroSearch, a geophysical consulting arm of RPS Energy, and is also the 2011-2012 president of the Canadian Society of Exploration Geophysicists. .

Please recycle this magazine when you are done.

84 Saskatchewan Oil Report 2012

Pure Energy:

fostering a culture of opportunity Pure Energy is a Western Canadian company that is proud to service the Saskatchewan market. Since its inception in 2001, Pure Energy has grown to become one of the largest frac flowback and cased-hole wireline service providers in Canada; the company also operates in six of the U.S. states, including North Dakota. Pure Energyâ&#x20AC;&#x2122;s growth has been based on three fundamental principles: commitment to our customers; commitment to our employees; and commitment to the communities in which we operate.

With field locations in Estevan and Swift Current, we provide frac flowback services (testing), cased-hole wireline (electricline and slickline), swabbing and well optimization solutions to Saskatchewanâ&#x20AC;&#x2122;s major resource plays. Since beginning operations over ten years ago, we have made significant investments in equipment and personnel to service the Williston Basin in both Saskatchewan and North Dakota.

Culture of Opportunity We have developed a culture of opportunity and growth for our employees. Our Superior Value program is a company-wide initiative that fosters both personal and professional growth for our employees, including job skills and personal skills training.

The Superior Value program also provides employees with a clear career path for advancement within the company.

Our culture has been a key factor in attracting, developing and retaining employees. It provides locally based employees with the opportunity to live and advance in the communities they call home.

Commitment to Customers We focus on bringing innovative solutions to monitor and optimize oil and gas production for our customers through the introduction of new technologies and the achievement of efficiencies which result in cost savings. As one of the largest suppliers of frac flowback and cased-hole wireline services in Canada, we have the equipment complement necessary to meet our customersâ&#x20AC;&#x2122; needs. Though we are a large service provider, we still operate and have the ability to react quickly and effectively to meet changing customer requirements and market conditions.

As the oil and gas industry changes, we strive to develop and implement new technologies to keep up with the changing market. We have introduced fibre-optic technology that allows you to image the downhole completion, stimulation and production environment in order to optimize production and significantly reduce field development costs. This in-well technology com86 Saskatchewan Oil Report 2012

bines temperature and acoustic data to give a dynamic flow profiling, frac optimization and completion diagnostic insights that no other technique can offer.

Commitment to the Local Community We recognize that a key to developing a successful business in any market is the engagement of local people in our operations. This includes both the hiring and training of locals and the use of local suppliers for our business needs. Our Superior Value program provides employees with the opportunity to establish a career in their local community.

To find out more about any of the product lines of Pure Energy Services, please visit our website at www.PureEnergyServices. com or call our head office at 403.262.4000. Pure Energy Services Ltd. is listed on the TSX under the PSV trading symbol. .

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The success of Saskatchewan’s oil industry creates new challenges on the transportation front

By Gary Leach, Executive Director of SEPAC

Saskatchewan’s economy has been on a roll the last few years thanks to the province’s resource sector, principally potash and crude oil. Unlike the potash sector, which is dominated by large multinational corporations, the Saskatchewan oil and gas industry has a healthy contingent of junior and mid-sized Canadian independent producers. Many of these smaller oil producers have their home base in communities such as Kindersley, Wey-

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88 Saskatchewan Oil Report 2012

burn and Estevan. Their investment and operations create jobs and pay taxes to local municipal governments. In fact, the industry as a whole is a huge contributor to the provincial treasury via royalties and land sale bonuses estimated to be $1.6 billion and $220 million, respectively.

Saskatchewan is fortunate that it is primarily an oil-producing province (unlike British Columbia, whose hydrocarbon energy endowment is almost entirely based on natural gas) given the large gap in value between crude oil and natural gas on an energy equivalency basis. In fact, the Saskatchewan government expects that natural gas royalties will fall to only $12.5 million in the next fiscal year (from $18 million in the prior year) and drilling for new gas wells will be almost at a standstill. This large value gap is expected to continue for a number of years, and is the reason for a major shift in capital spending in Western Canada, from dry natural gas to crude oil and liquids-rich gas.

This shift is transforming the Western Canadian energy industry and elevating Saskatchewan’s profile as a major player in North America’s emergence as the world’s fastest-growing source of oil and gas production.

However, this North American success story on the production side has brought its own challenges. Key among those challenges is the lack of transportation capacity to move the growing volumes of crude oil from Saskatchewan, Alberta and North Dakota to downstream markets. A number of options other than pipelines, such as rail cars, tanker trucks and barges, are being employed but are often difficult and expensive to access, particularly for smaller Saskatchewan-based producers. A shortage of takeaway pipeline capacity from Canada to the world’s largest refining complex on the U.S. Gulf Coast has caused large discounts on the selling price of Canadian crudes, which is costing producers and Canadian governments losses in the hundreds of millions of dollars. That means it is costing Saskatchewan residents millions of dollars, too.

SEPAC will continue to urge the Saskatchewan, Alberta and federal governments to continue to make market diversification and new pipeline capacity a high priority. Saskatchewan producers only get to sell a barrel of crude oil once so it is critical to sell that barrel at the highest value possible.

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Nordic Oil and Gas poised to make significant impact in Saskatchewan

It’s no secret that the Western Canadian economy is fuelled by the energy sector.

While Alberta remains the driving force, what may surprise some is that much of the oil is under regions that aren’t necessarily known as major oil producers – Saskatchewan and Manitoba. The reason for this is simple: the Bakken oil formation occupies about 200,000 square miles (520,000 km2) of the subsurface of the Williston Basin, underlying parts of Montana, North Dakota, Saskatchewan and Manitoba. About a quarter of the Bakken Formation lies in Saskatchewan, with a much smaller portion jutting into Manitoba.

According to the U.S. Geological Survey (USGS), there may be as many as 503 billion barrels of oil in the Bakken formation – a natural geological phenomenon in the region – and estimates say that anywhere from three to 50 per cent of it is recoverable by currently available technology.

Roy Schneider of Saskatchewan Energy and Resources states the following about the Bakken Formation: “As recently as 2004, production was 278,540 barrels; then in 2007, we were nudging up against five million barrels – the exact figure was 4,965,000 barrels.

“Given that about 25 per cent of the Bakken is in Saskatchewan, it stands to reason that 25 per cent of the oil is, too,” he added.

Winnipeg-based Nordic Oil and Gas Ltd., has been active in Saskatchewan since late 2002, when it completed 14 kilometres of seismic surveys on lands in the east-central part of the province it had acquired when it finalized a transaction with Western Warner Oils Limited. That transaction saw Nordic acquire, among other things, 42 sections of land in Preeceville.

90 Saskatchewan Oil Report 2012

Today, Nordic Oil and Gas Ltd. has an 80 per cent interest in 31,999 gross acres of P&NG leases in the Preeceville/Endeavour region, and also has 138,000 acres of exploration permits in the region.

However, on May 26, 2011, Nordic finalized an agreement to obtain a seismic option from a major international U.S.based oil company that will lead to the drilling of a new test well in the Weyburn region of southeast Saskatchewan – the very heart of the Sask. portion of the Bakken formation.

The deal called for Nordic to purchase three existing 2-D seismic lines totaling approximately 15.7 kilometres. This has subsequently been completed and following analysis of the seismic, indications of seismic highs on all three formations were discovered.

“An untested look-a-like feature to the nearby Union Jack Oil Field has been identified. This feature not only indicates oil potential from the Midale/Frobisher formation but also indicates potential from the untested deeper Bakken and Red River formations,” states Donald Benson, Nordic president and CEO. Producing oil wells from the nearby Union Jack Midale Oil Field had initial production of up to 75 bbls/day. Production profile rates from the Midale/Frobisher formation from a nearby Weir Hill well indicate production of 105 bbls/d.

“We have identified four potential locations for drilling,” adds Benson. “With the recent development of oil production from the Bakken formation in the nearby Weyburn area (approximately seven km away), the potential to develop this formation is quite promising. From the geological data available in the area, indications are that the Bakken sands on the Nordic land are very similar to those found in the Weyburn area.”

Later in 2011, Nordic acquired a further 320 acres of land approximately one mile from the original land acquisition. This new land has current production in the adjoining quarter section, and Nordic has identified two locations which indicate that the adjoining formation extends over these lands. The company has already obtained seismic and has identified that there is potential for production from the Midale/Frobisher, the current producing formation next to Nordic, along with potential in the Bakken and the Red River formations.

Looking at the company’s Preeceville/ Endeavour property, Nordic’s belief that there is oil in the Preeceville area dates back to October 2007, when it engaged the services of Petro-Find Geochem Ltd. to undertake hydrocarbon soil gas surveys in its most northerly permit in Townships 40, Ranges 4 and 5 W2 in Preeceville. During the course of sampling, Petro-Find discovered oil seeps.

Laboratory analysis on the oil seeps confirmed the presence of oil in the samples received. Altogether, evidence of 34 seeps was found; they are interpreted to be leakages from faults intersecting oil reservoirs at depth.

During the summer of 2008, Nordic Oil & Gas drilled two exploratory wells in the region in search of oil. The first well showed strong indications of the presence of oil during the drilling – an oil film and droplets of oil in the drilling fluid coming over the shaker were found, and that some oil staining was seen on some samples that were taken. Furthermore, some samples had good porosity. However, due to the intersection of faults, the well deviated and the drilling tools became lodged in the hole and could not be dislodged. As a result, the well was abandoned.

A second well was drilled nearby and Nordic again discovered oil in two formations. Unfortunately, following the completion of the perforating and testing, it was determined that the well does not have any production capabilities.

“While we were disappointed that we were unable to bring either of these wells into commercial production, we nevertheless remain undeterred about the potential for a major oil discovery in the region,” says Benson.

Nordic returned to the Preeceville/Endeavour area in late 2010 when it drilled a new exploration well. Shortly after the company entered the Red River formation at around 890 metres, signs of oil began coming over the shaker. Over the course of the drilling of the next 100 metres, a dozen oil samples were retrieved and were sent to a major laboratory in Calgary, Alberta for further analysis. Logging was also completed shortly thereafter and the logs were interpreted and analyzed by Nordic’s team of geologists.

All samples taken from the well showed the presence of hydrocarbons. In addition, the well logs also suggested that hydrocarbons were present, along with very good dolomite porosity – as high as 21 per cent. Given these results, four separate intervals were selected for perforating.

At the completion of perforating, Nordic had collected in excess of 100 samples, which all were sent to the laboratory in Calgary for analysis. The lab findings were then sent to Petro-Find Geochem – the company that made the initial discovery of the oil seeps in the region in 2008 – to evaluate the BTEX concentrations. Following analysis of 11 of the fluid samples, they were found to exhibit significantly high concentrations of benzene, indicative of oil accumulations.

According to Paul Lafleur, president of Petro-Find Geochem, “Analysis of 11 fluid samples exhibit significantly high concentrations of benzene indicative of oil accumulations.

“Of particular significance is swab PB26Z (combined swab for intervals 937939.5, 927-930, 917-920.5) which shows a benzene level of 2.55 ppm plus significant concentrations of toluene, ethyl benzene, and xylene,” Lafleur adds. “It is

believed that the well penetrated either a new pool, or the edge of an oil pool in the Red River formation. The abnormally high concentration of C8-C10 (2.8 ppm) in this sample supports this finding.”

In mid-summer, Nordic undertook an acid squeeze on the well; however, the downhole setting tool used to acidize the zones did not perform properly, thereby preventing the company from undertaking its scheduled acidizing on the well the way it had planned.

“We ran in the tool and attempted to circulate through the wash tool to gain circulation prior to pumping acid; however, the valve kept closing,” stated the workover consultant. “As such, we pulled the isolation tool to surface, unable to perform a selective acid job with the valve not being able to stay open.”

At present, Nordic is looking at other options to complete this well, including the possibility of cutting a window in the casing and drilling into the prospective formation laterally using nitrogen rather than re-attempting the failed acid job.

In addition to this oil play at Preeceville/Endeavour, Nordic also has a Colorado Shale Gas resource play there. Analysis of the four wells drilled by our predecessor has shown that Nordic has up to 11 billion cubic feet (BCF) of shale gas per section.

“A major Canadian energy company has recently completed a test of shallow, shale gas in northern Alberta at a depth of 250 metres to 290 metres, utilizing horizontal drilling, which gives Nordic the confidence that this method should work at Endeavour,” Benson states. “As such, we are currently licensing a new well for the drilling of a vertical shallow gas well to prove up a shale gas discovery. The well license application is in and we have spoken with a drilling company about drilling the well in late May or early June.

“These are busy times for Nordic Oil and Gas Ltd., and we are optimistic that by focusing much of our attention on Saskatchewan, we will be rewarded with successful drilling programs,” he concludes. .

Located in Weyburn, Stewart Steel is a full service metal fabricating and coating shop ideally positioned to serve the drilling, well servicing, and production companies in Southeast Saskatchewan from their 44,000 sq. ft. facility.

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Weyburn, Saskatchewan, Canada (306) 842-4411 Saskatchewan Oil Report 2012

91

Plan to attend the 20th Annual Williston Basin Petroleum Conference!

By Ron Ness, president, North Dakota Petroleum Council

More than 300 expo booths and outdoor exhibit spaces will be part of the 2012 Williston Basin Petroleum Conference.

92 Saskatchewan Oil Report 2012

It’s a time of great excitement in the Williston Basin as the Bakken and Three Forks resource plays continue to produce growing results and garner national and global attention. For those of you interested in learning more about this valuable resource – from geology and productionenhancing technology to development impacts, transportation, supply and business development opportunities – you won’t want to miss the 20th Annual Williston Basin Petroleum Conference.

Slated for May 22 to 24, 2012, this international conference is expected to attract more than 3,500 individuals to the Bismarck (N.D.) Civic Center.

Every year, this conference brings together a wide array of industry representatives, regulators and political leaders from across the United States and Canada, all with a vested interest in the Williston Basin. As always, technical presentations will be the highlight of the conference as industry experts from across North America share information on all the hot topics surrounding the Williston Basin.

Created in 1992, this international partnership between the North Dakota Petroleum Council, North Dakota Department of Mineral Resources and the Saskatchewan Ministry of Energy and Resources alternates locations between North Dakota and Regina, Saskatchewan.

The conference goal is 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, these information exchanges have lead to more efficient drilling and completion methods being implemented in the Bakken and Three Forks formations.

The event will include more than 70 presenters discussing a wide array of topics. A Bakken/Three Forks/Tyler Core workshop will also be offered by the North Dakota Geological Survey on three occasions during the conference.

Registration and additional conference details are available online at www.wbpcnd.org.

We hope to see you there!

Some of the 2012 keynote speakers include Jack Gerard, American Petroleum Institute president and CEO; Greg Hill, Hess Corporation executive vice president and president, Worldwide Exploration & Production; and David Hobbs, IHS CERA chief energy strategist. The conference will also feature a CEO panel with participants Harold Hamm, Continental Resources chairman and CEO; David Roberts, Marathon Oil executive vice president and COO; and Jim Volker, Whiting Petroleum chairman and CEO. The conference will feature an indoor and outdoor expo comprised of more than 300 exhibits, large demonstrations and equipment. .

20

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

Annual Williston Basin Petroleum Conference

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Saskatchewan Oil Report 2012

93

Energy investing in Saskatchewan:

Tom MacNeill Q A Q Q A A Q

Source: Brian Sylvester of The Energy Report. Interview excerpt republished with permission.

Tom MacNeill doesn’t have to go far to find the most unique early-stage energy companies to invest in. The president and CEO of Saskatchewan-based investment firm 49 North Resources, MacNeill is bullish on his own backyard and says of the province’s resources, “You name it; we’ve got it.” In an exclusive interview MacNeill did with The Energy Report in February 2012, he explained why Saskatchewan resource plays trump their Alberta or Ontario counterparts.

Brian Sylvester: Even some of the most successful small-cap resource investors were schooled in 2011. What did you learn from last year’s ups and downs?

Tom MacNeill: We were definitely reminded of the nature of resource investments. Liquidity absolutely vanished in 2008, but by the time it reappeared in 2009 and 2010, investors had decided they wanted to keep their hands on their cash. Oil entered and exited 2011 at roughly the same price, but at times it had been much higher and much lower. That spooked investors. It became evident that most of the investors who were still comfortable with equity investments preferred dividend paying structures. It’s been a very edgy time.

We were reminded that investors were walking on thin ice. The companies that stepped up and started increasing distributions from their oil and gas production were well served. Those that did not, were not. There’s been a bifurcation in the market. The entire capped energy index is down relative to most of the broader indexes for the simple reason that investors were withdrawing money from the sector even though one barrel (bbl) of oil was about $100 throughout the year.

94 Saskatchewan Oil Report 2012

Will the legacy of 2011 be the split between those companies that brought in dividends and those that didn’t?

TM: It’s one of the legacies. A lot of companies die in the aftermath of an event like the 2008 downturn. However, not enough undeserving companies died off because they had just completed financings and had millions of dollars in their treasuries that enabled them to weather the storm. We didn’t have enough of a rout.

Going into 2011, there were still a bunch of these Johnny-come-latelies and investors got wise. They started to watch the burn rate and what management was doing. It was a wakeup call. It was a really bad year in ‘08, it was OK in ‘09 and ‘10, and then ‘11 levelled as investors became objective. I believe that investors are more objective this year than they have been in five years.

Your company doesn’t just invest in resource companies; it also instills management teams and brings in consultants with specific expertise. It’s an investor and a partner.

TM: We’ve had to be a little bit of everything within 49 North. We act as in-house management for developing companies. We provide seed capital and later-stage capital. We’ve got 25-plus of the best geoscientists in Saskatchewan on staff in one of our subsidiary companies, Northrim Exploration Ltd. That enterprise works with most of the senior players working in the province developing oil and gas, potash, and other sedimentary resources and is moving into hard rock mining consultation. We also have substantial connections within the junior resource capital market and investment banking community worldwide.

A

We had to develop it that way for the simple reason that we had no capital market in Saskatchewan. Where government used to hold business back, it is now very supportive. The resource business is now wide open. It’s a tremendous opportunity for us and anybody who wants to invest in the province, because it’s like Alberta was in the ‘40s and ‘50s.

Saskatchewan certainly shares some of the same commodities with Alberta.

TM: We view ourselves as much better off than Alberta from a geological perspective. The Western Canadian Sedimentary Basin overlays almost all of Alberta, meaning there’s really no hardrock mining with the exception of some coal mining and some other assets in the Rockies. Alberta is very much an “energy only” resource province.

Saskatchewan is the opposite. The sedimentary basin covers the southern half, but the northern half is exposed Precambrian shield. We’ve got all of the mining prospectivity and assets that you would find in Ontario and other hard-rock jurisdictions, plus all of the oil and gas that you find in Alberta, and a sea of potash and other natural resources. You name it; we’ve got it. The neatest part is that it’s mostly still in the ground. There are 27 active mines in the province, but we should have a multiple of that given our resource base.

Q

What macroeconomic trends are going to continue to drive energy commodities?

TM: Oil acts a lot like gold in that it’s a good parking lot for rampant money printing in the U.S. One thing that can quell inflation in the short term is a high oil price, since it slops up many of the newly printed dollar bills in an asset that is used almost immediately. This seems

A

counter-intuitive, but it takes time for the inflationary effect of high oil prices to bleed into higher asset prices. So in the short term, it actually helps the money printers because all over the world, oil is traded in U.S. currency, thus distributing the new liquidity worldwide. The U.S. is the only country with this advantage, which creates some ironic economic activity to which that investors should pay attention. As long as the U.S. keeps printing money, there’s going to be a high oil price. If the liquidity being added actually creates economic development, there will be rampant inflation. Usually that’s a tap that can’t be turned off, which could lead to much higher oil and gold prices. We view the coming five-year period as very interesting and probably very lucrative for resource investors, especially in gold and energy.

Q

What energy commodities are you most bullish on this year?

TM: We’re focusing on heavy oil and coal (for conversion to crude oil), but our backyard is unique. There are 20 to 40 billion barrels (Bbbl) of heavy oil in place in west-central Saskatchewan. There are also staggering quantities of light oil as well in Saskatchewan, but I’m not as interested in that. Everyone knows about the Bakken shale and other tight light oil plays now being developed using modern multi-staged fracturing, but very few follow heavy oil development.

My interest is tied to the recycle ratio, which is the net profit/bbl divided by acquisition and development costs/bbl. The ratio for light oil in Saskatchewan averages somewhere around two, meaning if a company puts $1 million (M) into acquiring and developing an average well, it will get $2M out of it. But heavy oil in Saskatchewan can have a recycle ratio as high as five.

That’s not true of everywhere in the world. We have two heavy oil upgraders in Saskatchewan that have been consistently adding capacity, so we’ve got a real blessing here in that we can develop our heavy oil fields and achieve higher netbacks than elsewhere because of that very unique refining capacity in our backyard.

A

Q A

What are some of the companies benefiting from that?

TM: Most of the companies that are developing these heavy oil assets that are in production are very large already and beyond our scope, such as Canadian Natural Resources LTD. (CNQ;TSX) and Baytex Energy Corp. (BTE.UN:TSX). We’re sponsoring private companies in this space. However, Baytex is coming up with ingeneous ways to drill multiple lateral wells from one drill pad and get enormous production out of thin-formation, heavy oil projects. They also pay a pretty decent dividend yield as well. That’s the kind of story we’re looking for, but we’re looking for it at a very early stage when a company has a prospective heavy oil development field and is investing its first $1 to $5M in the project.

Q A

Are any of your private oil plays expected to go public?

TM: Probably. Allstar Energy Ltd., in west-central Saskatchewan, is a light oil producer that is converting into a heavy oil producer as well. We’ve actually taken that one in-house and made it a subsidiary company. Had the capital markets been a little bit more buoyant over the last nine months, we might have entertained taking that company public sometime last year. At some point, given it’s growth potential, its capital needs will outstrip our ability to supply it and we’ll have to take the training wheels off and take it public.

That could be in 2012 or 2013 depending on how development goes.

We also sponsor Admiralty Oil Ltd., a very early-stage light oil development in southeastern Saskatchewan. It will probably go public if it has some success this year.

Q

You said you are bullish on coal. What are some of your holdings in that space?

TM: There are two that we really like, which are both developing coal-to-liquid technology. We view coal as just another long carbon chain that can be converted into a shorter carbon chain to make heavy crude. These two enterprises are going about it in different ways.

NuCoal, a private company in southern Saskatchewan, will use full gasification to convert coal into transportation fuels at the mine site. It’s a multibillion-dollar

project. The company has control of one of the largest coal resources in the world and it could possibly go public sometime in the next 12 to 18 months.

Westcore Energy Ltd. (WTR:TSX.V), which we have an approximate 25 per cent stake in, has a significant thermal coal resource that it’s developing on the Saskatchewan-Manitoba border. It is working with Quantex Energy in Calgary, which has a proprietary technology developed at the University of West Virginia. Quantex tested some of Westcore’s coal and determined that it’s perfectly adequate for converting into heavy or light crude depending on the extent of processing.

It appears it will cost about $40-50/bbl of oil for the conversion technology. It will probably cost approximately $200M to build an initial 10,000 bbl/day conversion facility. Given that the process appears to convert coal to heavy crude at a ratio of three to four bbl crude from each ton of coal, there’s an almost endless potential supply of heavy crude oil for the refiners in Saskatchewan. Now that is an exciting energy story.

A

Q A

It does sound exciting. Do you have some parting thoughts on the energy space?

TM: The energy space should be an exciting one. If the governments keep adding liquidity, the resulting competitive devaluation of currencies will be inflationary and good for commodity prices. Or perhaps the world is going to get a little bit better – also good for commodity prices.

It’s a bit of a win-win situation over the next five years if investors are patient.

Investors have to make sure that they stick to certain criteria. Look at management first, not the project, because the best project in the world can be screwed up by bad management. A marginal project can be made wonderful by good management.

Tom MacNeill is the founder, president and CEO of 49 North Resources Inc., a Canadian resource investment company headquartered in Saskatchewan.

The Energy Report is a Streetwise Reports publication.

Read The Energy Report online at www.theenergyreport.com. .

Saskatchewan Oil Report 2012

95

New frontiers

Grit Industries launches new products, new locations Grit Industries Inc. of Lloydminster is an exciting place to visit these days. There’s a buzz among the management and staff of this creative company headquartered on the Alberta/Saskatchewan border. Along with the introduction of several exciting new products for the oil industry, Grit is expanding with the acquisition of a 92,000-square-foot manufacturing facility in North Battleford, Saskatchewan.

Company founder Wayne King is careful to note that Grit is keeping its strong roots in Lloydminster and the heavy oil industry but is executing a much-needed expansion to deal with continued increase in demand for its innovative products. “We are introducing several technologies into the light oil market in Alberta and Saskatchewan. There is a need and an opportunity to heat light oil without the requirement for pressure vessels and treating facilities,” King states.

Expansion of Manufacturing Facilities Grit has acquired the former Peak Manufacturing plant at 100 Canola Avenue in the Parsons Industrial Park at North Battleford, Sask. Driven by high levels of customer demand for its products and services, Grit has outgrown capacity in its existing facilities in Lloydminster. To meet growing demand, this new facility is well suited to Grit’s needs and will be utilized for all aspects of Grit manufacturing and product assembly as well as for ongoing research and development efforts.

Grit Industries Inc. sees this opportunity as a key step in the company’s future and views North Battleford as a great place for its team to live, work and play. Grit currently operates a manufacturing facility in the McMillan Industrial Park in North Battleford which will be consolidated with the new facility in the Parsons Industrial Park.

The Grit Industries group of companies currently employs approximately 130 people and has a network of distributors across North America. It is anticipated that the North Battleford facility will be supported by approximately 75 staff consisting of a complementary group of welders, gas fitters, assemblers, plasma and equipment operators, yard people, safety and quality control specialists, electricians, general labour and management. Grit’s current group of engineers, drafting, purchasers and administrative staff will continue to expand with the business.

Grit Industries Inc., which was founded in 1985 by president and CEO Wayne King, operates several divisions including Cold Weather Technologies, A-Fire Burner Systems, Secondary Containment, Fabrication and Sand Control Systems.

96 Saskatchewan Oil Report 2012

Left to right: Ian Hamilton, Mayor of North Battleford; Hon. Brad Wall, Premier of Saskatchewan; and Wayne King, president and CEO of Grit Industries, attend the press conference in North Battleford announcing Grit Industries Inc.’s expansion into the city.

Progress is well underway for a new shop in Lloydminster that will house the A-Fire division, as well as a significant inventory depot for secondary containment and other Grit products. An adjoining office complex will serve as head office and home to the sales and administration group. Specialized welding and research and development will form key functions for the company in its new Lloydminster location. Sand Control Systems will continue to operate out of the adjacent building.

In addition to its head office in Lloydminster, Alberta, Grit Industries Inc. operates additional facilities in North Battleford, Sask., Wabasca, Alb. and a sales office in Chicago, Illinois. Grit’s distributor network stretches across all of North America. Grit has significant export sales into the U.S.A. and is currently engaged in a pilot project in the United Kingdom through its Cold Weather Technologies division. Grit’s specialty-fabricated products are shipped and in place in markets all over the world.

Always the Innovator Since inception in the ‘80s, Grit has been particularly adept at finding niche applications and applying technology to industry in an effort to make production and distribution more efficient and safer, all while keeping a watchful eye on the environment.

Many of Grit’s products lead the industry in providing lower emissions than convention products; this capability has led to introduction of Grit’s natural gas heating technology in Europe, where regulations are tighter than North America.

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King claims to have obtained “a Masters degree from the University of Hard Knocks.” Growing up on a farm in Alberta provided him with a base founded in practicality; these early beginnings are evident in the vast array of products developed and produced by the company.

The A-Fire Integral Flame Arrestor is an example of recent developments. This new product was introduced to bring together several technologies and allow simplified field installation of heating system components. Grit used its in-house staff of electricians, instrumentation techs and gasfitters to blend components into a single unit that has taken the oil industry by storm.

The flame arrestor, hot box and burner management system are all integrated into a single component. Every unit is constructed in Grit’s secure, quality-controlled shop. This popular and innovative product will continue to be produced under the watchful eye of Grit’s engineering staff to ensure that it will continue to meet industry codes and at the same time continue evolving to meet customer demand.

Grit’s strong background in the heating of heavy oil and natural gas with its unique heat-driven loop technology led to entry into the light oil heating market. The introduction of the steamheated vertical heater-treater is the latest industry-driven solution developed and marketed by Grit Industries, and applications abound everywhere – from the traditional Canadian Prairies market to the entire Bakken oilfield. This new application of Grit’s proven and safe technology can be used anywhere burner

Cold Weather Technologies on-site oil treating.

tubes are a prohibited device. Grit is developing a strong presence in the U.S.A.’s light oil market and is also working with its U.S. partners to bring new services to its familiar territories south of the border.

The oil and gas industry continues to change at a pace that makes industry veterans smile in amazement. Grit Industries keeps pace and looks forward to the next innovation that is always just around the corner.

Grit’s remarkable history and its vast display of innovation is showcased online at www.gritindustries.com. .

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100 Saskatchewan Oil Report 2012

According to the recently released 2011 Census figures, Weyburn is the fastest-growing city over ten thousand in the province, at a rate of 11 per cent. Throughout the growth of the past few years, Weyburn has worked hard to maintain a community that is not only beautiful, but which is also adding amenities as quickly as it is adding residents.

Although there were moments when the housing market became a bit of a concern, the City of Weyburn was proactive in their work and hired the Canadian Association of Homebuilders to perform a Housing Needs and Demands Assessment and a Housing Plan to ensure that the needs of the people were met.

The work done by this third-party illustrated the growth potential, and the community now has its sights set on a population in excess of 20,000.

The business community clearly shares this vision as investors are lining up for many projects. Private developers have plans in place to create hundreds of new residential properties in the next couple years. Retail development and expansion is continuing at an unprecedented pace, with new expansions and businesses being announced regularly, and the industrial sector has recognized the opportunity to locate in the centre of one of the most prosperous energy and food producing regions in North America.

All of this investment into the community has made Weyburn the city of choice for new residents relocating to southeast Saskatchewan. Corporate home to the Sun Country Health Region, Southeast Regional College, Cornerstone School Division, and the Saskatchewan operations centre for the likes of Cenovus, Enerplus, Crescent Point and more – Weyburn is a white-collar city with a quality of life that other communities envy. As the city grows at top pace, it has maintained its commitment to lifestyle and is still constructing paved walking trails all around; through-

out Weyburn, new recreation facilities are being added, a new high school has just started construction, and a new hospital is in the works.

Add to all of this the amenities in the immediate region, and it’s easy to see why people are flocking to Weyburn. The community is surrounded by recreation opportunities including the Weyburn Golf Club – home of PGA Pro Graham Delaet. In a quick half-hour drive, one can find three regional parks offering everything from boating and fishing to indoor swimming, golfing and more. Stretch that drive to only one hour, and now you’ve found the home of the Saskatchewan Roughriders. Only an hour

from Regina, Weyburn has access to an international airport, the Canadian Football League, and major concerts, sporting and cultural events.

So the question no longer is “why Weyburn” but rather, “why not?”. The opportunity for big-city growth and amenities while offering a quality of life that is clean and green is only a small part of why Weyburn really is The Opportunity City. Come and discover the opportunities waiting for you. .



Saskatchewan Oil Report 2012 101

Camex

gains ground in Saskatchewan

Aerial of Camex’s facility in Alberta.

Camex quickly garnered a reputation for building high-end performance trucks and trailers, solving problems quickly and 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 manufacturing facilities and inventory yards.

With a global focus, Camex strives to be the leading source for specialized oilfield transportation equipment. By fully understanding client needs, Camex provides unique and innovative transportation solutions that allow customers to maximize their potential in a competitive world market.

In 1992, company founder Pat Wilson started Camex Equipment Sales and Rentals Inc. to serve oilfield transportation industries across Canada, America and Mexico. 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.

102 Saskatchewan Oil Report 2012

Sales to Saskatchewan Oilplays Continue to Rise “Camex has been selling to Saskatchewan oil exploration and production companies in the Viking, Lower Shaunavon and Bakken oilplays for the last 15 years – but since the start of 2009 and continuing on into 2012, sales to that area have increased dramatically,” states Tom Huyghe, sales manager at Camex Equipment. “Our customers are telling us they really value our equipment because it is built to handle the extreme environmental conditions and because of the durability, fit and finish and added features of our trucks and trailers.”

“Rig-moving companies and oilfield service contractors in Saskatchewan are pretty amazed at the breadth and scope of the equipment we have on the ground at our facility in Nisku,” continues Huyghe. “Customers are able to fill their equipment

requirements today, go to work tomorrow and immediately start generating revenue.”

“Inventory is key to our 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 fluid handling to construction equipment... Camex not only offers the most comprehensive line-up of inventory, but provides the financial services and aftersales support to back it up,” Huyghe says.

Camex’s new and used equipment includes heavy-spec bed trucks, winch 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 that permit them to shop for equipment with confidence, and which make their purchasing decisions easier,” adds Wally Taschuk, director of sales and marketing, Camex Equipment.

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 develop-

ing unique transportation solutions for radically different terrain and extreme environmental conditions. New or used 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, Western Star, Freightliner and Peterbilt. Camex represents Scona, Peerless, Deloupe, Doepker and a number of other trailer manufacturers as well.

Camex offers a fully stocked parts department for quick turnaround and timely repairs. “Our technicians are highly skilled at fabrication, repairs and installation. Camex is a fully certified manufacture and repair facility for vacuum trucks, picker trucks and tank units. Our technicians are trained and licensed to perform CVIP inspections, hydro tests and re-certifications,” affirms Taschuk.

“As the oil and gas industry continues to change, we look forward to tackling the new challenges as they arise in a fast-paced and exciting environment, bringing on new products and suppliers to ultimately become the ‘one-stop transportation shop,’ ” says Taschuk.

Camex Equipment Sales & Rentals Inc. main headquarters are located at 1511 Sparrow Drive in Nisku, AB. Call 780.955.2770. .

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Saskatchewan Oil Report 2012 103

Stoney Mountain Rentals has the equipment you need for the oil industry

By Katrina Senyk Stoney Mountain Rentals may not be a family business but the Lamontagnes have been working in the oil industry for many years – Ernest Lamontagne was first, followed by his three brothers and then by most of their sons and cousins. During those years, many different careers have been encompassed, from oil rigs and service rigs, gas plant operation and environmental engineering to company consulting and directional drilling.

So it came as no surprise when two days after graduating from high school in 1981, company owner Brad Lamontagne found himself working knee-deep in mud on his first 12-hour rig move from Alida, Saskatchewan to Waskada, Manitoba.

“There may only be a handful of days that I didn’t look forward to going to work. The Saskatchewan oilpatch has been good place to earn a living,” he says.

“The first man I met told me to go to school and my reply was, ‘I am just here to see what my dad did for the last 22 years,’ ” Lamontagne recalls. “He told me that if I got my first paycheque I would never go to school. He was right; after 31 years of roughneck to driller, I’m still working in this industry – though now as my own boss.”

In 2003, Lamontagne and James “Stoney” Johnstone created Stoney Mountain Rentals Ltd. (in French, Lamontagne means “The Mountain”). “We started with a rental loader on Advance #3. I later bought the company name and expanded into heavy weight drill pipe, a pipe spinner and a rig telephone system. Over the course of time, I chose to keep just the HWDP portion of the business,” Lamontagne explains.

“In 2009, I was asked by Dennis Hodge of Tristar Oil and Gas to build a reamer that would not need jars or a bumper-sub to get in and out of their wells successfully – with a lower chance of getting stuck in the well bore,” Lamontagne says.

“From the very first drawing, I could see that this concept made a lot of sense.”

The first reamer was built in Oklahoma City, Oklahoma at JA Oilfield; later, the reamers were built in Lloydminster, Alberta at Metaltek Machining. “They are engineered at Bar Engineering and hard-surfaced at Creative Carbide Leduc,” he states.

“With only one customer and an unproven tool, we proceeded very cautiously. We soon found that it worked very well. But it was still hard to get new work because, as I was told, ‘This is just too radical to suggest to the upper offices in Calgary’ or ‘we can’t use you because the frac-liner companies won’t allow it,’ ” Lamontagne explains.

Service hands now say the liner goes in better with a Stoney Mountain reamer. “We currently have very loyal customers who promote the reamer as much as we do,” Lamontagne smiles.

The company’s motto is to treat everyone they meet with courtesy and respect – a policy that has evidently paid off.

“Our big break was landing work with Penn West in Waskada, Man. By the summer of 2010, I could see that I would have to leave the oil rigs to manage my company full-time. And with more time on my hands to promote the company, rentals picked up,” Lamontagne states.

Stoney Mountain Rentals Ltd., which presently services seven companies on a regular basis and several more on a job-by-job basis, has recently expanded and is now operating in North Dakota. The company has made safety its number-one objective.

“We are in the final stages of obtaining SECOR and are proud of our no-injury record,” he says.

“As the owner/operator, my weekdays are divided between promoting the firm, cleaning and painting used equipment, and book work,” Lamontagne says. “It has been very fulfilling for me, converting an idea from a drawing into a successful working tool – to ultimately creating a busy rental company.” .

DTD

HEMPEL (CANADA) INC. MANUFACTUER OF PROTECTIVE COATINGS

• TANK COATINGS (INTERNAL/EXTERNAL) • PIPE COATINGS • HIGH PERFORMANCE COATING SYSTEMS

www.hempel.com 780.554.9037 104 Saskatchewan Oil Report 2012

• • • •

OILFIELD SERVICES

Pickers Winch Trucks Bed Trucks Highway Tractors

• Tank Moving • Hydraulic Tank Cradle • Oilfield Hauling • Heavy Hauling

DANIEL GATES MANAGER

SWIFT CURRENT, SASKATCHEWAN

Bus: (306) 773-4944

Cell: (306) 741-2623

Fax: (306) 778-3784

CLUTCHED REAMER

156mm to 159mm wells | 200mm wells | 222mm wells

Ltd.

The Stoney Mountain Rentals Ltd. clutched reamer was developed for Dennis Hodge at Tristar Oil and Gas in early 2009 to reduce the chance of getting stuck in well bore dog legs. Stoney Mountain Rentals has continued to refine this original design, specifications, and manufacturing process to make it more durable and efficient.

Stoney Mountain Rentals has continued to grow dispite a depressed market in 2009, with Tristar selling out to Petrobakken and competing with larger companies that discourage competitor’s reamers being run with their packer systems.

For rental information and availability, please contact:

It is due to this innovative reamer design and our responsive customer service that Stoney Mountain Rentals has grown and established a loyal client base.

Brad Lamontagne

We are currently working with Penn West Energy Trust, Legacy Oil and Gas ND Inc., Magellan Res. Ltd., Atikwa Resources Inc., Fairbourne Energy Ltd., Kinwest 2008 Ltd., Reliable Energy Ltd., Renegade Petroleum Ltd., Black Gold Energy Ltd., Questerre Energy Corp., Surge Energy Inc. and Westman Exploration Ltd. Other clients include Petrobakken, Tundra Oil and Gas Partnership, Molopo Canada Inc., Rife Resources Ltd. and Pinecrest Energy Inc.

Phone: (306) 577-9818 Fax: (306) 739-2263 email: smrltd@sasktel.net

Stoney Mountain Rental’s reamers have been used on Interra Energy Services, Packers Plus, Baker Hughes and Sure Teck’s down-hole completion systems.

Stoney Mountain Rentals Ltd. is ISNworld verified

Built and engineered in Canada.

Manufactured by Metaltek Machining • Certification of Compliance from BAR Engineering Co. Ltd.

Owner/Operator

PO Box 213, 309 Walter Street Wawota, SK S0G5A0

Safety is our first priority and we are working towards getting SECOR accreditation.

Polycore challenges ‘Give Us Your Worst Well!’

Oil companies are always looking at ways to maximize profits. One profit-maximizing strategy always on the forefront is reducing costs through technological advancements. How to decrease the costs associated with downhole tubing failures – failures that typically result in lost production, service rig/workover costs and downhole tubing replacement! – is one of the most prominent issues facing oil and gas companies today.

With the dynamic slogan “Give Us Your Worst Well”, Polycore Tubular Linings Corporation (Polycore) keeps its promise with just such a cost-saving technology. Polycore’s thermoplasticlined tubing eliminates rod-on-tubing wear and corrosion in producing wells; it is also utilized to mitigate corrosion in injection and disposal wells. Thermoplastic-lined tubing might seem new to some people; however, it has been around for over 30 years.

Polycore’s thermoplastic liners are mechanically inserted and bonded to the inside of downhole tubing; there is no adhesive or bonding agent (such as glue or cement) utilized. This allows Polycore’s thermoplastic-lined tubing to be utilized in not only new tubing, but also in used, inspected yellow-, blue-, and greenband tubing. In beam or PC-pumping oil wells, the thermoplastic liner creates a barrier between the steel tubing and the friction-creating rods. Polycore eliminates internal wear and corrosion of the steel, leaving the tube in virtually the same condition as when it was initially ran downhole. In addition, Polycore’s liners are extremely smooth, which reduces friction, pump power requirements and accessories (such as tubing or rod rotators) while increasing production volumes, injection rates and pump performance.

106 Saskatchewan Oil Report 2012

Polycore eliminates internal wear and corrosion of the steel, leaving the tube in virtually the same condition as when it was initially ran downhole.

The method of using plastics inside downhole tubing to mitigate corrosion and erosion has been widely used since the late 1950s in North America. As drilling and production of oil and gas increased across North America, the need to transport these fluids became a priority. Existing pipelines were addressed to meet the increase in demand and then concerns began to arise over their integrity. Utilizing the existing pipelines was far more practical and cost-efficient than building new pipelines. To make the most of the pipelines already in the ground, producers found that they could install a thermoplastic lining that created a corrosion-free barrier to extend the life of the existing pipe.

In 1990, Bill Jackson, founder of Western Falcon in West Texas, connected the lining of pipelines with downhole tubing. Jackson understood that if producers were having issues with fluids in the pipelines, then thermoplastics should be able to address the same issues downhole. Polycore, the brand name chosen

by Jackson for Western Falcon’s initial product, was the first HDPE thermoplastic liner to be installed as a single joint system for downhole applications. In 2000, the Western Falcon company was acquired from Jackson and in 2005, the company expanded into Canada as Polycore Tubular Linings Corporation.

“If you were to look at a joint of our lined tubing, a lot of people would say that it looks quite simple; but in fact, it’s really a science. When you take our plant tour and watch our staff, the precision

and skill required is astounding,” says Mat Davis, senior account manager for Polycore and one of the first two employees to start with the company in 2005.

“Every joint of tubing, whether new or used, starts by getting the standard API coupling removed, threads cleaned and API thread gauged, and any damaged or unsuitable threads are repaired.

Once the bare tubing is prepared, it is moved to our lining machine to have our thermoplastic liner installed by a unique process. The pre-extruded thermoplastic, which is larger in outside diameter (OD) than the inside diameter of the downhole tubing, is temporarily reduced in OD and inserted inside the tubing. The lined tubing joint is then run through a conveyor oven at elevated temperatures to allow the thermoplastic to completely expand. Once out of the oven, the ends of the thermoplastic are moulded around the specially prepared pin ends.

An extended-length internally coated coupling is then installed and the pipe is ready to be used,” Davis explains.

Polycore, through its U.S. counterpart Western Falcon, researches and develops new thermoplastic technologies and holds multiple product patents. In conjunction with its thermoplastic liners, Polycore also has a line of modified premium connections for aggressive speciality applications. This has given Polycore the ability to develop and modify their products to meet the ever-changing oil and gas industry.

Poised atop 40 acres in Bow Island, Alberta sits the Polycore Thermoplastic Lin-

Peak performance to handle any curve in your well.

Keep your wells running longer by maximizing production and reducing workovers. Polycoreâ&#x20AC;&#x2122;s thermoplastic lined tubing eliminates rod on tubing wear and corrosion in your toughest wells.

403-444-5545

www.polycore.ca

ing Plant and Tubular Management Facility, which is fully integrated. “We have a great group of very skilled people work-

ing here in Bow Island,” states John Jenkins, general manager of Polycore.

“We chose Bow Island not only because of the proximity to all of Alberta – it’s also the gateway to Saskatchewan and Manitoba, as well. Our yard functions as both a thermoplastic lining facility and as a tubular management facility for oil and gas companies. We are able to offer our customers casing and tubing storage along with tubing repair. As well we offer cleaning, straightening, thread repair,

Safety Innovation

Service

Regina, SK: 306-721-4848 Saskatoon, 306-652-3614 Calgary, SK: AB: 403 243-8080 Edmonton, AB: 780-665-3905 Lethbridge, AB: 403 328-2321

People You Can Count On 108 Saskatchewan Oil Report 2012

www.canadianuniform.com

coupling supply and on-site independent third-party EMI inspection.”

With producers continuing to push the envelope to recover oil and gas in Western Canada, the demand has been placed on more and more on service companies to develop technologies that help increase production, save downtime and reduce costs. Producers are now leaning towards more efficient drilling methods such as horizontal, monobore wells and multistage fracturing. As this technology changes, pumps are being landed at deeper depths and at higher angles, increasing the chances of tubing failures due to rod wear. Secondary and tertiary methods of recovery are also on the rise, increasing the number of corrosive water injection/disposal wells and polymer floods. With the utilization of Polycore’s thermoplastic lined tubing, producers are able to see these demands met.

The Polycore product has gained a tremendous amount of traction across Western Canada, as well as in the U.S. through their sister company Western Falcon. “Our products have been installed in wells from north-eastern B.C. to south-western Manitoba, ranging from corrosive injection/disposal wells to heavily deviated rod-pumping oil wells,” explains Dennis Carmichael, managing director of Polycore.

“It’s amazing when we can take a producer’s well, that averages a three- to six-month run life for bare tubing, and increase it to in excess of five years after our Polycore products are installed,” Carmichael enthuses.

The goal of every oil company is to keep their wells producing; if a well isn’t producing, it is costing the company money, time and valuable resources.

Polycore thermoplastic lined tubing reduces the need for service rigs at producers’ wells – something we know every oil company will be grateful about!

Polycore Tubular Linings Corporation P: 403-444-5545 W: www.polycore.ca E: mdavis@polycore.ca .

PSAC works to help improve

industry image

In the wake of increasing prices at the pump, do people ask you how prices get set? What about all this talk regarding fracing?

Do you know enough about the drilling technique to respond to the increasingly difficult questions about just how safe it really is?

What about other aspects of Canada’s oil and gas industry, including its safety record and the diversity of career opportunities in the oilpatch? Do you know much about those aspects of the industry?

Industry employees are asked questions like this every day and often find they may not have the answers at their fingertips. This was feedback that the Petroleum Services Association of Canada (PSAC) received in a survey of its member company employees, and so PSAC launched PatchWorks in direct response to that feedback to help them better understand and explain the many facets of the complex oil and gas industry.

PatchWorks is a series of short, monthly articles that provide information, facts and statistics to industry employees. In just a single page, each issue of PatchWorks answers a commonly asked question about the oilpatch, provides examples and points readers to more information.

PatchWorks is just one piece of a broader public outreach program that PSAC developed in recognition that there was work to be done to improve industry’s image and better demonstrate that industry takes seriously the need to operate in a responsible way. Also a part of that program is Community Partners, an industry-wide infield courtesy program designed to strengthen relationships between the upstream oil and gas industry and community members, one person at a time.

Community Partners focuses worker attention on local concerns related to oil and gas activity in the field, reminding everyone to do things like reduce dust, drive safely and close gates, and ultimately treat community members and their property with respect.

At the heart of the Community Partners program is a simple message – we heard you. PSAC conducted another survey of residents in communities across Western Canada, who identi-

fied increased communication, community livability and environmental protection as being key areas for improvement. The program is currently supported by other industry associations including CAPP, CAODC, CAGC, SEPAC, CEPA and Energy Services BC, and has also received support from each of the provincial governments in the western provinces.

“When we launched our public outreach program, we knew how important it was to develop practical tools and initiatives that would signal to people that we heard them and take seriously our efforts to improve industry’s record and image,” explains Mark Salkeld, president and CEO of PSAC. “The increasing support and participation in the program by companies and individuals tells us we got this right, and we will continue down the path of creating meaningful opportunities to engage in a positive way with the public.”

While these are two initiatives among many that industry has undertaken with the goal of improving relations with local communities and the public-at-large, there is work to be done. PSAC will continue to promote these programs and, also, the record of the industry which continues to see improvements in its operational and environmental performance, in which PSAC members play a leadership role.

To find out more about Community Partners or join the growing list of companies supporting the program, please visit www. communitypartners.ca.

To read PatchWorks or to subscribe to the publication, visit www.oilandgasinfo.ca.

PSAC is the national trade association representing the service, supply and manufacturing sectors within the upstream petroleum industry. PSAC represents a diverse range of close to 260 member companies, employing more than 60,000 people and contracting almost exclusively to oil and gas exploration and production companies. PSAC member companies represent over 80 per cent of the business volume generated in the petroleum services industry. .

Saskatchewan Oil Report 2012 109

The Swift Current

benefit

The City of Swift Current is committed to being a leader and partner of the community to ensure sustainable growth and prosperity while enhancing service levels.

Swift Current provides residents with a safe, healthy and happy place to live and work. It provides a sense of belonging and enriches lives; it’s where life makes sense. Swift Current is a healthy, safe and stable community of which residents can be proud; a community home to reliable and effective services and fiscal responsibility.

Swift Current is enjoying sustained growth for many of the same reasons as the province of Saskatchewan: opportunity; a positive and welcoming environment for investment; excellent quality of life; a safe and caring community; and an ideal place to raise a family.

The City is securing its share of provincial prosperity that is being experienced now and into the future. In 2011, Swift Current City Council unanimously voted for the 2011-2013 Strategic Plan as a roadmap to developing Swift Current.

Well Optimization Sales & Services P.O. Box 4, Midale, SK S0C 1S0 Phone: (306) 458-2367 or (306) 861-1001 Fax: (306) 458-2373 • Email: 247enterprisesltd@sasktel.net

110 Saskatchewan Oil Report 2012

• Fluid Levels • Dynamometers • Pressure Surveys • Foam Depressions • Equipment Sales Rentals & Repairs • Repairs done on all models including: Sonolog Echometer, DX, etc.

• Major parts & supplies in stock at all times

The 2012 Budget supports the Strategic Plan and aims to achieve its goals.

The City has invested in significant capital projects over the past number of years, including the new Regional Hospital, an expanded Credit Union iPlex, a wastewater treatment plant, a water treatment plant, and property development to ensure an inventory of residential, commercial and industrial lots.

2011 was an extremely good year for economic development in Swift Current. The City received over $2.2 million in commercial and residential lot sales.

There were $52 million in building permits issued, which resulted in the thirdbest year in Swift Current’s history. It represented a 155 per cent increase over 2010 values and included housing projects focused on affordable senior rentals, affordable family rentals, condominiums and single-family units.

The trend over the past number of years has been very positive and given the strong manufacturing, tourism, agriculture, energy, retail and service sectors, 2012 is sure to be another exciting year.

Regional Hospital entrance.

We look forward to working with our partners to continue the growth of our vibrant downtown core, the completion of two new hotels, a strip mall, further commercial development in the area north of

the casino, and welcoming new industrial businesses to our Munroe Industrial Park.

The optimism and confidence in our economy is strong; the infrastructure required to accommodate new busi-

nesses and families is in place; and our area structure plans for future growth have been put into motion. Swift Current is truly the ideal place in which to live, work, invest, visit and play. .

The City of Swift Current Where Life Makes Sense

Swift Swift Currentâ&#x20AC;&#x2122;s Currentâ&#x20AC;&#x2122;s newest newest Industrial Park Park has has Industrial land available available at at land $80,000 per per acre! acre! $80,000 Affordability Accessibility Education Health

Security Recreation Culture Environment

FOR MORE INFORMATION ON SWIFT CURRENT OPPORTUNITIES CALL: MARTY SALBERG - Director of Business Development Phone: (306) 778-2700 Fax: (306) 778-2194 Email: m.salberg@swiftcurrent.ca

www.swiftcurrent.ca Saskatchewan Oil Report 2012 111

The Midwest

advantage

Established in 1949, Midwest has a long-standing commitment to provide “Service Beyond Boundaries”. Midwest Surveys’ key business cornerstone is to provide consistent, premium service to all of our clients, both large and small companies. We are more than willing to do the extra work to ensure our clients are taken care of.

With having over 60 years of experience in the oil and gas industry throughout Western Canada, Midwest has performed a large spectrum of geomatics services while meeting budget and deadline requirements with quality results. At Midwest Surveys, we celebrate our history of service around Western Canada, while embracing the geomatics technologies of the future.

Midwest boasts 10 offices and 80 fully equipped crews across Saskatchewan, Alberta and British Columbia. Our offices are strategically located near major oil and gas plays so that we can service you effectively and efficiently. In Saskatchewan, our Estevan and Regina offices are readily available to service the Bakken area and we are also qualified to follow that work into Manitoba. Our Maple Creek office (with support staff in Swift Current) is very experienced in the Lower Shaunavon and Viking areas. Our Lloydminster office is readily available to also service the Viking, Birdbear and other heavy oil formations as well as the Cold Lake oilsands.

We have 41 professional designations in house, 22 ALSs, 10 SLSs, seven CLSs, two BCLSs and five professional engineers.

This experience and knowledge enables our staff to foresee any problems ahead so you can plan accordingly, before the crews are sent out! Furthermore, Midwest is committed to effective health, safety and environmental programs. Today, that commitment is stronger than ever, ensuring that Midwest Surveys meets or exceeds the standards set by our clients, the industry, and local regulatory groups. Midwest has an industry-leading 112 Saskatchewan Oil Report 2012

safety record and procedures; as well as an industry-leading linedetection process and track record. Midwest prides itself on being environmentally conscious.

Midwest Surveys is 100 per cent employee owned. As employees, we genuinely care about our clients and their business.

We understand that your success is our success. We pride ourselves on being a well-established ethical company that sets high values when it comes to serving our customers and the quality of product and services we provide. We are committed to provide “Service Beyond Boundaries”!

Our services include: • Surveys of wellsites, access roads, battery and compressor sites • Construction and legal services • Route selection, line location • Highway, river, and pipeline crossings • Survey, topographical, and three dimensional virtual plans • Pipeline construction and integrity surveys • Virtual Survey solutions • Powerline surveys • Geographic information systems • Alternative energy We’re HIRING! At Midwest we are always looking for qualified office and field staff to join our team. Our compensation and unique benefits program are industry competitive – but our commitment to our employees doesn’t stop there. We have an education assistance program, growth and opportunities for advancement across ten offices in Western Canada. Safety is always a top priority and our proactive monitoring, reporting, and recognition program keep employee safety at the forefront.

These are all important reasons to join our team; however, we know that people want more than a job. We would like to think that Midwest’s friendly, casual atmosphere makes our fast-paced industry fun. After-hours and lunch-time gatherings, camping trips, golfing and other activities help provide a sense of community for employees and their families.

For your Saskatchewan and Manitoba projects, please contact: Jill Burridge, SLS Client Relations and Marketing Manager Tel: 403.244.7471, Email: jillb@midwestsurveys.com .

Service Beyond Boundaries

Midwest Surveys

Providing outstanding professional land surveying and geomatics services across Western Canada since 1949.

The Association of Professional Engineers and Geoscientists of Saskatchewan (APEGS) finalizes title changes

‘Engineering Licensee’ and ‘Geoscience Licensee’ In October 2010, the Association of Professional Engineers and Geoscientists of Saskatchewan (APEGS) Council passed a motion endorsing title changes for Limited Members. The changes were ratified by the membership at the May 7, 2011 Annual Membership Meeting. The final step before implementing the new titles was publication of The Engineering and Geoscience Professions Act and Bylaw changes in The Saskatchewan Gazette on August 26, 2011. The new titles, “Engineering Licensee” and “Geoscience Licensee”, replace the titles “Limited Member (Engineering)” and “Limited Member (Geoscience)”.

professional geoscientist. Members with restricted licences may

What is a Restricted Licence?

The restricted licence is an official authorization to engage in the practice of professional engineering or professional geoscience within a specific, strictly limited, field of practice. It is intended to give practice rights to individuals who do not have the academic qualification for registration as a professional engineer or professional geoscientist but who can carry out specific engineering or geoscience functions based on a combination of education and experience.

Persons who are issued a restricted licence become members of APEGS and receive the rights and privileges of membership.

They are entitled to engage in the practice of professional engineering or professional geoscience within an approved field of practice without being supervised by a professional engineer or

the required experience must be supervised by a professional en-

offer consulting engineering or geoscience services, provided the services offered fall within the field of the restricted licence.

Those wishing to offer consulting engineering or geoscience services, must submit a Notice of Intent to Consult (see the APEGS website under Registration, Permission to Consult).

What are the Qualifications for a Restricted Licence?

There are varying categories for qualification, each requiring a combination of education and experience. At least five years of gineer or professional geoscientist, and the professional member must endorse the experience reports submitted with the application.

For Further Information More detailed information is contained in the Guide to Engineering and Geoscience Licensee Applicants, found on the APEGS website under Registration, Licensee. Questions can be directed by email to either Patti Kindred, P.Eng., director of education and compliance, at: pkindred@apegs.sk.ca or Tina Maki, P.Eng., director of registration, at tmaki@apegs.sk.ca; or by phone at 525-9547, toll free 1-800-500-9547. .

Elad Geological Consulting Ltd. Geological Well Site Supervision Laboratory Studies dwright@sasktel.net

(306) 536-7226 Regina, Saskatchewan

114 Saskatchewan Oil Report 2012

CONTRACTOR • SAND • GRAVEL • ROCK • EXCAVATION BACKHOE • TRACKHOE • LOADER SERVICES P.O. Box 609 Stoughton, Saskatchewan S0G 4T0 Del Coderre Bus: 306-457-3131 Fax: 306-457-3244

Cell: 306-577-7219 Res: 306-457-3173 Email: coderre@sasktel.net

www.coderre.sasktelwebsite.net

ENGINEERING LICENSEE GEOSCIENCE LICENSEE You may already qualify for registration with the Association of Professional Engineers and Geoscientists of Saskatchewan (APEGS) A suitable combination of education and experience may enable you to become an Engineering Licensee or a Geoscience Licensee with APEGS. Licensees are full members of APEGS and have the right to independently practice professional engineering or professional geoscience within a specified scope of practice.

Contact APEGS for information on how to register:

1-800-500-9547 306-525-9547

www.apegs.sk.ca

Gyrodata guides the future Data-density logging enhances rod-guide program design and pump placement for increased production Recently in the Williston Basin of Canada, a large operator had a group of five wells encountering a high work-over rate (every 40 to 45 days, at an average cost of $50,000).

Increasing problems and costs associated with rod and tubing wear, pump failures and the subsequent increase in work-overs led the company to re-examine its program and find solutions. These wells were selected, in which to run data-density log through the vertical sections.

NEED INTEGRATED SOLUTIONS? JUST ASK GOLDER.

Since 1980, Golder in Saskatoon has been supplying integrated engineering, environmental and social services for exploration, development, and production activities. Now with a new office in Estevan, we are better located to provide local assistance on all our southern clients’ projects. From upstream to downstream, Golder has the right people and solutions for any stage of your project.

Engineering Earth’s Development, Preserving Earth’s Integrity.

Canada + 800 414 8314 solutions@golder.com www.golder.com

116 Saskatchewan Oil Report 2012

Data-density logging can provide essential information for the implementation of optimum artificial lift operations for the life cycle of a well.

Things wearing out prematurely?

Perhaps your tubing and rods are taking some unexpected turns. Let Gyrodata give you a definitive survey – with unmatched data density throughout your wellbore.

The logging system utilized a high-

Gyrodata’s Earth Rate Gyro technology is the most accurate wellbore positioning and surveying technology available.

accuracy continuous-rate gyroscopic system that logs on-the-move and can resolve the wellbore profile to increments

Reduce uncertainty, call

as small as 30 centimetres compared to the much greater spacing of earlier conventional surveys (typically >30 metres).

The logs were conducted down 73-millimetre tubing on electric wireline.

The logs identified numerous changes in wellbore profiles and areas of micro doglegs that were not evident from previous surveys. The logs also identified some operational problems when tubing had not been landed correctly, and some

Phone: 403 640 7755 Fax: 403 640 7758

gregb@gyrodata.com Greg Belbin 403 813 2665

discrepancies in bottom-hole location were revealed.

Overall statistics will show a dramatic decrease in work-over requirements, repair and replacement costs and in shut-in

FEDOR RUDNITSKI, P.Eng., President

Drilling • Construction • Workovers Oilwell Completions • Production Management

production. In conclusion, it was found that data-density logging can provide essential information for the implementation of optimum artificial lift operations for the life cycle of a well.

For more information, please visit www.gyrodata.com. .

• Preparation of well license applications (Saskatchewan and Manitoba), drilling programs and cost estimates.

• Preparation of completion and workover programs.

• Supervision of drilling and service rigs.

• Supervision of facility work including setting up single well batteries and pipeline / facility installations.

• Contract Operating

P.O. Box 273 Alameda, SK. S0C 0A0 Office: (306)489-2193 • Fax: (306)489-2098 Cell: (306)483-8104 • Res: (306)483-2731 armada.resources@sasktel.net Saskatchewan Oil Report 2012 117

Atom-Jet Group – the one-stop shop for every oilfield need Celebrating 50 years of experience in sales, service, manufacturing and repair, Atom-Jet Group is positioned to continue to grow and expand their relationships with clients the oil and gas industry. With a diversified portfolio of with divisions, the organization provides their clients a solution-based approach to business, driven by their corporate vision of “Leadership Through Innovation”.

Offering a broad scope of industrial services, Atom-Jet Group is proud to provide a “one-stop shop” benefit to their clients, including precision machining and advanced manufacturing services, a division dedicated to structural steel and metal fabrication and a commercialgrade powder-coat paint facility.

With an international presence in Russia, Eastern Europe, Australia and throughout North America, the Agriculture Division of Ground Engagement Tools and Hydraulic Solutions has led the industry introducing innovative products – a direct result of Atom-Jet Group’s commitment to research and development.

Expansion into custom carbide brazing and the recent addition of the AJILity Lift, a device used to assist disabled individuals continue employment, help further their commitment to innovation.

This defined business strategy earned the company a Business Excellence Award in 2009 and ranked Atom-Jet Group as one of Manitoba’s Top 50 Fastest Growing Companies over the last decade. Guided by non-negotiable core values that define the organization, Atom-Jet Group places key importance on corporate citizenship. This fact exemplified upon receipt of the Lieutenant Governor General’s Award for Outstanding Contribution to the Community.

A Range of Services With two plants in Brandon, Manitoba and over 50,000 square feet of operating space, Atom-Jet Group employs nearly 100 skilled trades and senior management. The company collaborates with clients on every aspect of the job to deliver a superior product. From custom machining to general repair to mass production, Atom-Jet is the only stop for any client’s oilfield needs.

Atom-Jet Group specializes in tank manufacturing – personal, industrial or municipal. Well known for custom solutions in hydro-vac trucks, they can also provide immediate delivery on industrial waste handling equipment and potable water systems – backed with a full line of

With its state-of-the-art free-standing single and double service rigs, and an industry leading operations team, Eagle rises above the rest when it comes to efficient,functional well servicing.

Phone: 306.634.8235 Toll Free: 1.877.346.9710 www.eaglerigs.com We are proud to be a part of the Estevan Community 118 Saskatchewan Oil Report 2012

replacement parts and a knowledgeable service team. Full welding services are also available, both in-house and on-site structural steel and other metal fabrication, along with mechanical installation services. The paint facility boasts both powder coat and wet paint options, including industrial sandblasting on a commercial scale.

Atom-Jet Group operates the largest custom machine shop in Western Manitoba. The division is fully equipped with a variety of conventional machining tools, as well as state-of-the-art multi-axis CNC machines fully capable of handling almost any request: “one-of-a-kind” parts, driveline and hydraulic cylinder repair, align boring, production machining, and custom fabrication – all CWB accredited and approved by ISO Quality Assurance management.

Atom-Jet Group’s custom carbide application covers a variety of areas and needs. What started with in-house brazing, forming and welding opened the door for carbide applications in agriculture, forestry, oil and gas and other industries over the last 25 years. They can also assist with the design and manufacturing for any high-wear situations application.

The Atom-Jet Group Advantage Atom-Jet was founded with a vision of creativity, quality workmanship and fair dealings – a philosophy still embraced in the organization today. The Atom-Jet Group Advantage is a result of that belief which led the company to focus on four essential areas crucial to their success: • Reliability – “On Time, Every Time” service has become a mantra at AtomJet Group. They understand the importance of timeliness and the potential negative impact that can occur on the

ATOM-JET AGRICULTURE | ATOM-JET CUSTOM BRAZING | AJILITY LIFT | ATOM-JET MACHINING | GLENDALE INDUSTRIES | GLENDALE POWDER COATING

ATOM JET GROUP GROUP S

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2

MACHINING & ADVANCED MANUFACTURING | STRUCTURAL STEEL & METAL FABRICATION | INDUSTRIAL SERVICE TANKS

SANDBLASTING | POWDER COAT PAINTING | CUSTOM CARBIDE BRAZING | GROUND ENGAGEMENT TOOLS | HYDRAULICS

LEADERSHIP THROUGH

INNOVATION 1-800-573-5048 | www.atomjet.com

bottom-line as a result of missed deadlines.

• Quality Assurance – Atom-Jet Group is committed to the highest standards.

Consistent and methodical internal audit procedures, ongoing training and certifications held by Atom-Jet Group divisions – including CWB, COR, ISO 9001-2008, ISNetworld, CTEA and CRN – ensure a positive and professional working relationship with clients.

• Innovation – Proud to be at the leading edge of the industry, Atom-Jet Group

is prepared to invest in innovation. Research and development is a key element in the company’s growth and development that represents their vision as an organization. Over the last five years, they’ve introduced seven new products to the marketplace.

• Team – Atom-Jet Group knows a successful organization is built on the foundation of a solid team. That’s why their primary goal is attracting, developing and retaining the best talent through global recruiting drives and challenging their employees, all while

fostering a collaborative, mutually supportive environment.

Atom-Jet Group works to these high standards every day, with a mission to be a reliable resource to all customers by consistently providing innovative solutions to improve productivity and profitability. These core values and wealth of experience provide their clients the Atom-Jet Advantage.

Visit www.atomjet.com or call 1-800-573-5048. .

th Annivers ary 5 2

EMPIRE

WELDING & MACHINING LTD. Box 1565, 10022 Thatcher Avenue, North Battleford, SK, Canada

P: 306-446-3444 • F: 306-446-3999 • Toll Free: 1-888-446-3444

www.ewam.ca

120 Saskatchewan Oil Report 2012

Coil

goes live

As the oil and gas industry continues to gravitate towards horizontal wells with complex multistage completions, new and more efficient methods of logging and completing wells must be found. Enter E-Coil as the best solution for any of your E-Line logging needs on horizontal or deviated wells.

Successful oil and gas production begins by acquiring crucial wellbore data and taking this data to adhere to every wellbore’s specific need, ensuring optimal oil and gas production while minimizing cost and liabilities. Downhole data is collected by using a variety of logging sensors which are deployed into the wellbore. Successfully deploying these tools is no longer an issue with the advancements of E-coil.

E-coil (or electric coil tubing) involves taking electric wire-line and installing it into coil tubing for deployment, creating a quick and cost-effective way to complete horizontal wells. With the real-time logging capabilities, decision time is minimized. Logging capabilities include: • CBL (Cement Bond Log).

• CHAT (Cased Hole analysis tool).

• PFT (Pressure – Flow – Temperature).

• CNL (Compensated Neutron Log).

• GR-CCL (Gamma Key – Collar Locator).

E-coil also allows for perforating and bridge-plug services including perforating multiple zones, plugging and perforating in a single run and setting tool services such as bridge plugs and WR plugs. Up to seven intervals can be perforated on a single run at virtually any depth. The inherent safety advantages of ELine make E-Coil perforating a much safer and cheaper alternative to Tubing Conveyed Perforating. The advancement of multiservice head designs allows for circulating and other flow-thru capabilities as per the specific needs of each job.

Coil tubing has become a valuable medium for successfully deploying logging and perforating tools as well as doing clean-

outs, scraper/magnet runs, etc. Companies like Big Guns Energy Services and Sidewinder Coil Services have brought together technology, experience and expertise in order to build a partnership that ensures the knowledge and experience from both wireline and coil tubing can help E&P companies take advantage of all the information is available through the advancement of E-coil.

Besides experience and expertise, Big Guns Energy Services and Sidewinder Coil Services brings state-of-the-art wire-line and coil tubing units with 80,000 pounds push/pull injectors and 3,800-metre measured depth capability on two-inch coil tubing.

Together, they make the business of producing oil and gas less complex and expensive, and more informed and productive.

Stig Gjerlaug, Sidewinder Coil Services Inc. 306-891-6668 Email: stig@sidewindercoil.com Website: www.sidewindercoil.com Kelly Melby, Business Development Manager Big Guns Energy Services Inc. Email: kelly@bigguns.ca D: (403) 206-6141 | C: (403) 952-0112 | O: (403) 294-1444 Suite 600, 640 8th Ave. S.W. Calgary, Alberta T2P 1G7 .

Saskatchewan Oil Report 2012 121

RAM Industries Inc.:

custom cylinder solutions for the oil and gas industry RAM Industries Inc. was established in 1973 in Yorkton, Saskatchewan. In its early years, the company focused on the production of hydraulic and pneumatic cylinders serving manufacturers across the prairie provinces. Four expansions and almost forty years later, cylinder design and manufacturing are still the company’s core business and expertise.

RAM cylinders now supply a much more diverse range of users in industries that include oil and gas, construction, mining, forestry, transportation, agriculture, material handling and industrial equipment across North America.

As a custom manufacturer, RAM establishes a close technical rapport with every customer to share ideas and gather critical information regarding the cylinder’s fit and performance requirements.

Within the oil and gas industry, this relationship is often with project managers, engineering consultants or teams, branch operations, service shops, rig sites, endusers, and entrepreneurs developing new applications to serve this dynamic market in Canada, United States and Mexico.

RAM Industries is very versed in cylinder applications within the oil and gas industry, providing cylinders that operate on drilling and exploration equipment, oil and gas production equipment, service equipment, and accessories such as power torque wrenches, pipe handling equipment, grapples and rig walking systems.

RAM does manufacture cylinders from pre-engineered cylinder drawings; however, more often complete design services are the norm. Cylinder designs by RAM may originate from something as simple as a hand sketch of a customer’s conceptual idea or new product innovation, which is very common in this growing industry. RAM also offers the technical expertise to deliver cylinder solutions for other specific needs, such as cost-reduction projects, design changes for cylinder performance improvement, reverse engineering for replacement or repair cyl122 Saskatchewan Oil Report 2012

inders, and re-engineering foreign-based cylinders to North American dimensional and material standards.

Engineering services using 3-D modeling files shared via the Internet provide customers with critical dimensions and simulated images of their custom cylinder design. This service is beneficial to design verification, Customer pre-approval, and integration of the engineering file into the customers’ equipment design plan.

On-site visits, engineering meetings, technical support, and prototype services are also available to ensure cylinder fit and function testing before full production.

RAM produces a diverse mix of cylinder designs and sizes to the oil and gas industry. While any customization is available, examples of common known cylinders produced by RAM include: • Welded double- and single-acting cylinders • Mechanical locking stabilizer cylinders • Levelling cylinders • Mast-raising cylinders • Scoping cylinders • Custom-design telescoping cylinders • Position sensor (smart) cylinders • Catwalk cylinders • Large-bore cylinders • Long-stroke cylinders • Dog-house cylinders • Pipe tub cylinders • Hydraulic wrench cylinders

• Indexing cylinders • Make-up/break-out cylinders • Heavy-duty cylinders • BOP cylinders • Hydraulic pump jack cylinders RAM’s manufacturing facility, equipment mix, and production flow are setup to ensure order requirements of one or thousands of cylinders per delivery are easily accommodated. This gives all customers the advantage of receiving the exact number of cylinders needed, timed specifically for their installation. RAM’s company-wide ERP and bar-coding system tracks design, material and production progress. The system provides the RAM team with a reliable means of ensuring promised delivery dates are met while maintaining cost and quality standards expected by its cylinder customers.

RAM continues to add capabilities and expertise to meet the cylinder needs of customers. In 2012, RAM expanded its manufacturing facility by over 40 per cent to accommodate new CNC machines, increased crane capacity and greater production resources. The

RAM INDUSTRIES INC. PO Box 5007, 33 York Rd E., Yorkton, SK, S3N 3Z4 Canada T: 1-877-799-1005 F: (306) 786-2651

estimating@ramindustries.com MEMBER

www.ramindustries.com

Your first choice reliable supplier of ISO 9001 certified custom design hydraulic cylinders and precision machining

building addition has given RAM the ability to handle new cylinder lines, increased volume, more sophisticated

machining, and larger-sized cylinders.

An active capital equipment acquisition program, particularly in CNC machining,

also offers customers a reliable source of custom-machined components with the same quality and delivery performance as its custom-cylinder production.

RAM Industries Inc. has maintained ISO 9001 certification since December 2000 for cylinder manufacturing and custom-machining services. This dedication to quality continues today with the companyâ&#x20AC;&#x2122;s commitment to test every cylinder produced before shipping. RAM is also experienced accommodating quality requirements to API (American Petroleum Institute) standards, material mill certifications, certification of compliance or meeting customer-specific specialty testing prerequisites. Every RAM customer receives after-sales support, installation guidance, parts, and warranty services as part of its ongoing commitment to every relationship.

The RAM name is synonymous with delivering quality custom cylinder solutions for the oil and gas sector. For more information, contact: RAM Industries Inc. PO Box 5007 Yorkton SK S3N 3Z4 Toll Free: 877-799-1005 Fax: 306-786-2651 Email: estimating@ramindustries.com www.ramindustries.com .

124 Saskatchewan Oil Report 2012

Volunteers are key to CAPLA’s success

By T. Cathy Miller, CEO

At the Canadian Association of Petroleum Land Administration (CAPLA), we know that our success and achievements are defined by our amazing CAPLA volunteers who are always ready and willing to provide their expertise and knowledge to help our industry and their fellow members. CAPLA volunteers represent us in the oil and gas industry, and they carry CAPLA’s message and reputation farther than any marketing efforts ever will.

CAPLA recently launched a number of new initiatives and we bolstered some existing committees by adding new volunteers – with the net result that CAPLA’s volunteer ranks more than doubled in the past year!

Our new projects include: the Knowledge Bank Refresher committee, which

is building an online resource of individuals who will provide information and support in their specific area of knowledge; an IT and Systems Education Development sub-committee that will identify knowledge gaps and then find or develop resources required to provide that deliverable to our membership; and the social media team, which is ensuring that CAPLA has a strong online and social media presence in today’s world.

Plans are underway right now to also launch a new Mentorship Program pilot project this year. This will be an opportunity for senior land personnel who have a depth of knowledge and experience to inspire and coach the future leaders of our industry.

And we are working on introducing a Toastmasters program that will help our

members to sharpen their communication and leadership skills in a supportive setting. Joining the CAPLA Toastmasters Club will help our members to build their confidence while they learn to present their ideas more effectively.

We know that without our volunteers, CAPLA would not exist. We extend a big thank you to all of our volunteers who provide their talent, ideas, skill, experience, energy and commitment.

We value every contribution of time and knowledge that we so generously receive from CAPLA volunteers, and we would also like to take this opportunity to thank the companies who support their employees’ volunteer involvement.

CAPLA volunteers are the best! .

CAPLA: a great resource for people who work in the oil and gas industry CAPLA was incorporated in November 1993. CAPLA serves individuals and organizations involved in petroleum land asset management. The majority of our 2,700 members are comprised of mineral and surface administrators, contract analysts, supervisors, landmen, team leads and land managers.

CAPLA provides an environment that allows our members to meet the challenges ahead. Our main goals are to bring together the different personnel involved in the land asset management function, establish standards of excellence, open lines of communication and gain recognition for the land asset management discipline within the petroleum industry.

Benefits of Becoming a CAPLA Member When you become a member of CAPLA, you will be able to benefit from the many resources that are available to you

through our website and organization such as: • Educational programs and learning tools • Networking opportunities such as events and seminars • Professional development opportunities • Certification of professional standards • The CAPLA employment marketplace; current job postings • Corporate discounts • NEXUS, CAPLA’s quarterly magazine • E-bulletins • Roster of 2,700 members Active CAPLA membership is $175.00 annually. This membership is for a member active in the land asset management field as an employee, independent contractor, or anyone with an enthusiastic interest in petroleum land administration and management.

Saskatchewan Oil Report 2012 125

Going the extra mile

A-1 Rent-Alls has extensive variety of large equipment on hand for clients across North America

By Katrina Senyk

For over half a century, A-1 Rent-Alls has been providing rental equipment – not only to Saskatchewan firms, but also to companies located across Canada and the U.S. Since the company’s establishment in 1955, the company has greatly expanded from its initial offering of small tool and gardening equipment rentals.

A-1 Rent-Alls now provides construction equipment rentals, industrial equipment, ground-thaw units, big diesel heaters, forklifts, boom lifts, generators, light towers and zoom booms, as well as laser levels and site trailers, toilets and toilet trailers, fencing and garbage bins, compaction equipment, tampers, large rollers and padfoots, and more.

“We are a member of ISNetworld – the global resource for connecting corporations with safe, reliable suppliers and contractors. It’s a prerequisite for most sites,” company owner Dave Wright explains.

Besides providing the oil industry with a complete line of equipment, A-1 also provides WHMIS training, fall protection, confined space, skidsteer, aerial lift and scaffold training as well as lift operation and other required job-site training.

But A-1 Rent-Alls is about more than just a comprehensive selection of equipment for rent or sale. A-1 employees pride themselves on efficient, friendly and personable service.

“We are willing to go the extra mile for our clients,” affirms Dave.

Desiree Wright, A-1 Party Store manager, concurs. “We have always had the saying, ‘One Call Rents All’ and I believe we have achieved and stood behind a good part of that. When a customer needs something from us, it is very rare that we have to turn them away,” she explains.

In 1991, A-1 Rent-Alls founded The Party Store in order to access the developing special-events market and be able

232 12th Avenue, Estevan, SK S4A 1E2

Garth Hoffort - Land Manager Sheila Guenther - Operations Manager

Surface:

Services offered:

Wellsite acquisitions Pipeline right-of-ways Damage settlements Third party agreements Rental reviews

Minerals:

Freehold lease acquisitions Crown lease acquisitions Locate missing title owners All related administration Confidentiality

Phone: 306.634.5614 Fax: 306.634.9131 Email: surfaceland@watsonlandservices.com or mineralland@watsonlandservices.com

126 Saskatchewan Oil Report 2012

to cater to customers’ staff functions, corporate BBQs and any other event needs A-1’s customers might have. The Party Store rents tents of all sizes for any kind of event and has an industrial tent structure rental and sales division that serves the petrochemical industry.

“We have an extensive swingstage and scaffold division as well as rigging,” says Dave.

“We also provide a complete line of large and small storage structures, as well as welding tents, for rent or for sale,” Desiree adds.

Though the company is 100 per cent locally owned and operated, A-1 has the capability and experience to manage projects on the West Coast, as far east as Winnipeg – and has even helped out a Goodyear store as far south as Daytona Beach, Florida.

A-1 Rent-Alls continually expands their inventory so as to ensure the equipment customers are looking for is always readily available.

“If we don’t have what you’re looking for, please let us know. We can check to see if we’ll be receiving it in the near future – or we’ll happily try to order it in for you,” Dave says.

For more information or to request a price sheet via email, visit the website at www.rent1.net or call 306-352-1440.

Reach A-1 The Party Store at 306-359-1440. .

RENTALS, SALES, SERVICE OILFIELD EQUIPMENT

• Wheel & Track Skidsteers • Backhoes & Mini Excavator • Forklifts/Zoom Booms • Light Towers • Generators • Bridge Work Platform • Scaffolding • Fence Rentals • Air Compressors • Boom & Scissor Lift • Surveying & Lasers • Plate Tampers & Diamond Core Drills

• Concrete Equipment • Conveyors • Dehumidifiers • Swing Stages • Heaters/Fans • Pumps • Gators • Toilet Trailer • Trailers • Site Trailers • Tent & Welding Structures • Traffic Signs • Ground Thaw Equipment • Welders • Portable Toilets • SAFETY TRAINING

Scaffolding forkliftS BoBcatS

SASKATCHEWAN DEALER FOR: • Genie • Skyjack • Husqvarna • Bartell • Wacker • Stone • Kubota

Visit us at: www.rent1.net Toll Free: 1-888-322-7368 1270 Halifax St., Regina, SK

352-1440

After Hours Emergency - Dave: 536-7861 • Frank: 535-9590 • Tom: 539-7278

Stop the guesswork The age of technology has brought about many changes in how an operator collects information to optimize production.

Few inventions have been as influential and revolutionary as the downhole video camera. Understanding the tremendous value of this service, Expro has identified itself as a global leader in downhole video technology. Expro’s highly skilled Canadian team is equipped with the product line, incomparable service standards, and experience to best assist customers in achieving their unique objectives.

Seeking to view fluid entry? Our realtime, full-motion video services utilize a cutting-edge fibre-optic telemetry system. The system uses a patented optical fibre cable to transmit video information from the downhole camera to surface, producing distortion-free transmission of clear, sharp images. The system captures even the most subtle movements, making it a perfect solution for examining perforations and viewing production.

Live broadcasts have been captured at depths over 5,000 metres and viewed in real time!

Looking to examine mechanical problems such as a fish, casing damage or lengthy pipe inspection? The HawkEyeIII electric line video system transmits an image every second, making it perfectly suited for the viewing of a motionless mechanical failure. The robust video system incorporates a 1-11/16 backlight camera, and operates on virtually any single or multi-conductor wireline cable.

Due to this versatility, the system has overcome traditional cable limitations, and allows video surveying of wells with corrosive fluid conditions, high-temperature and high-pressure. The HawkEye can successfully assist operators who wish to examine the location and orientation of plugs, whipstocks, and windows in multilateral completions.

Examining the pipe wall, BOP stack or openhole formation fractures? The latest addition to Expro’s downhole video services is the ViewMax, which incorporates a second side-view camera in the patented backlight camera system. Operators can switch between down-view and side-view, and rotate the camera to

ENER-TEST WELL SERVICING AND RENTALS LTD. Serving S.E. Saskatchewan and Western Manitoba P d ti TTesting Production ti • Well W ll Testers T t Frac Flowback • Well-Bore Bleedoff Gas Flaring • Rig Matting Call us at

(306) 861-3635

128 Saskatchewan Oil Report 2012

get a circumferential view of the casing, pipe, or openhole. These close-up images assist our customers in identifying the causes of failures in their wells. ViewMax is compatible with either the fibre optic video system, or the HawkEye series of electric line cameras, making is an extremely versatile tool.

Requiring casing inspection? In addition to downhole camera systems, Expro offers a variety of casing integrity inspection options. Our extensive caliper services include 24-, 40-, and 60-arm electronic Sondex tools. These tools can be run on memory or real-time surface readout to suit customers’ applications and can be deployed via mechanical slickline, electric line, conventional and smart coil.

Caliper services can be run in conjunction with Expro’s MTT tool, to identify metal thickness and external corrosion.

New to Canada, the Kinley line of mechanical calipers offer virtually unlimited temperature and pressure ratings, making them the perfect tool for thermal and critical well applications. Expro has also combined video and caliper investigation with a unique combination tool, CalVid. CalVid allows operators to inspect casing visually with a 40-arm caliper and camera combination, giving you surface read-out caliper/camera service in a single entry.

Investigating production and zone contribution? Expro also offers a full suite of specialty and standard production logging tools. Our production logging services allow operators to effectively measure zonal contribution in vertical, deviated, and horizontal completions. Our horizontally focused MAPS array tools offer a unique tool design with circumferentially mounted sensors. This means you are able to measure individual phase hold ups and velocities, resulting in superior reservoir management.

For further information, please contact Expro Group Canada Inc: 403-532-0873 .

For operations, call 403-885-4054 For Sales or information, call 403-532-0873

Twenty-seven kilometres of FlexPipe Linepipe installed in less than a week in SE Saskatchewan Project Overview A Saskatchewan-based oil and gas company needed an innovative solution to consolidate infrastructure and mitigate oil production transportation costs and delays. The company had been operating two oil batteries as well as satellite facilities over an area of approximately 10 kilometres; this fragmented infrastructure hindered production and increased hydrocarbon transportation costs. Flexpipe Systems approached the company with a plan to consolidate their infrastructure with Flexpipe Linepipe, the most cost-effective, efficient and reliable pipeline system on the market today.

The response was to install 27 kilometres of three- and fourinch FlexPipe Linepipe with a plow in order to connect the main battery sites with the satellite facilities and their corresponding gathering systems. Local Flexpipe Systems composite pipelining expert Luke Guest, who is based in Lampman, was involved with the pre-planning and construction kickoff meetings to help the client realize the strategic benefits and value composite pipelines offer in the construction process. During the installation, the Flexpipe representative was on site to ensure a smooth install for the entirety of the project. Because of the ease of installation and onsite expertise, the project was completed in four-and-ahalf days.

Flexpipe Systems was able to demonstrate its excellent customer service and product advantages. The company continues to use Flexpipe Systems products for various oil and gas applications in the areas they operate.

Flexpipe Systems has successfully installed over 50 million feet of Flexpipe products. To find out how we can be the solution to your next pipeline project, visit www.flexpipesystems.com.

• Trades programs...our students are being prepared for you.

• We can customize training for your business needs.

• Safety Training.

North Battleford

Meadow Lake

www.nwrc.sk.ca 130 Saskatchewan Oil Report 2012

Project Details Project Scope: Battery tie-in Location: SE Sask Application: Oil Pipe: FlexPipe Linepipe 3” FP301, 4” FP301 Length: 27 kilometres Year: 2011 The Flexpipe Advantage Field installation service and support: • A team of expert field technicians are available to provide onsite support for project installations.

• Flexpipe Systems’ products are easy to install and require little right-of-way, reducing environmental disturbance during installation.

• Less crews and manpower are required to install Flexpipe Systems’ products, reducing overall project costs.

Long-term savings: • Flexpipe Systems’ products can streamline production, reducing associated project costs such as transportation.

• Flexpipe Systems’ products are corrosion-resistant and eliminate the need for corrosion maintenance programs, reducing pipeline life-cycle costs.

Exceeding customer expectations: • Flexpipe Systems provides total customer support through project consultations and application reviews. .

Most Versatile Pipeline FlexFacts Number 35: Over 50 million feet of FlexPipe LinepipeTM have been successfully installed and are operating reliably.

Number 46: FlexPipe HT LinepipeTM is suitable for use in applications with temperature excursions as high as 200째F (93째C).

Keep your eye on the prize. The versatile product lines of FlexPipe, FlexCord and FlexPipe HT will make you the champion of linepipe dependability. When you want award winning, tried and tested products with proven reliability on your site, you need Flexpipe Systems on your team.

Proudly modernizing pipelines. Again.

It Pays to be Flexible. www.flexpipesystems.com www.shawcor.com

A proud past,

a brighter future

Swagelok Central Canada is an authorized Swagelok sales and service centre supplying Swagelok® products and services to Saskatchewan, Manitoba and northwestern Ontario. Our organization provides the highest quality fluid system products, services and solutions to our customers. Our goal is to build a mutually beneficial working relationship with our customers while providing the best value possible.

For 65 years now, Swagelok has established the benchmark for fluid system product and service reliability, availability and performance. We stand by the core values upon which Swagelok was founded and built: • Customer Focus - Everything that we do every day at Swagelok is focused on improving service to you as our customer.

• Quality - Extraordinary quality is our promise. We design and manufacture products to the highest standard, without exception.

• Integrity - Integrity is about doing the right thing, every time, with courage and character.

• Respect - We are committed to a culture in which people are trusted and treated fairly.

• Continuous improvement - The art of changing for the better.

• Innovation - The attempt to bring new ideas into practice.

ranty. No one knows the inner workings of fluid system components better than Swagelok — or how they best work together; that’s because Swagelok has been designing and manufacturing fluid system components for 65 years; no other company offering assembly services can say the same.

Whether you have a preliminary drawing or just the glimmer of an idea, it’s never too early to consult with our fluid system experts. From quote to delivery, we can provide the detailed support you need: • CAD drawing • P&ID • Component selection (including sourcing the best parts from other suppliers, as needed) • Bill of materials • Professional services, such as bending and welding • Testing to guarantee the system • Professional packaging and delivery You’ll find no higher quality or expertise anywhere. Swagelok custom assemblies can meet specifications for any industry, no matter how demanding.

You trust our components; now trust our experts to create the best fluid system assembly you can have.

Swagelok Pre-Engineered Subsystems Swagelok now offers a series of predesigned and preassembled subsystems for use in all types of plants and facilities where fluids are being processed. Use Swagelok pre-engineered subsystems to create fully documented fluid sampling and control systems and bring consistency to your operations. Easy-to-install and operate, these subsystems offer the high quality and support you expect from Swagelok.

The latest innovations that we have put into practice are Swagelok® Custom Solutions.

With our custom assemblies, we’re able to tailor our products by taking the highest-quality components and combining them with industry-leading engineering and technology. The results are fluid system assemblies that are put together by Swagelok certified technicians and which have the Swagelok lifetime war132 Saskatchewan Oil Report 2012

to analyzer, minimizing pressure drop for fastest response time. Interlocking handles help prevent incorrect sequence of operation.

• Field Station Modules preconditions a gas sample at the extraction point.

These are highly configurable to match

• Calibration and Switching Modules are highly configurable units built with Swagelok modular platform component (MPC) products that perform final conditioning of sample before analysis.

• Fast Loop Modules are designed for handling long transport lines from tap

process conditions and can mount directly to process nozzles.

• Sample Probe Modules offer a wide range of probes for various applications with probes and valves that interlock to protect equipment and improve safety of operations. .

DEL

Communications Inc.

At Pyramid Corporation, our pride and professionalism is shown in our dedication to quality and development. Pyramid is an expanding corporation with offices in Canada and the U.S. and is strategically placed to meet the electrical and instrumentation service needs of the oil, gas, pulp paper,

TOLL FREE: 1-800-955-2988 www.pyramidcorporation.com

mining, petro chemical, wood products and manufacturing industries.

Pyramid Area offices are in a position to service the industrial E/I workload in Saskatchewan. Please see applicable Pyramid locations below: ◆ ◆ ◆ ◆ ◆ ◆ ◆ ◆

Join us on Facebook!

134 Saskatchewan Oil Report 2012

◆

Estevan, SK Carnduff, SK Swift Current, SK Saskatoon, SK Lloydminster, AB Provost, AB Medicine Hat, AB Coronation, AB Bonnyville, AB

PH. 306.634.6022 PH. 306.482.3233 PH. 306.773.5935 PH. 306.668.5284 PH. 780.875.6644 PH. 780.753.4700 PH. 403.527.2585 PH. 403.578.2584 PH. 780.826.4227

DEL Communications Inc. has in excess of 100 years combined experience working for you.

We offer outstanding personal service and quality in the areas of: CREATIVE DESIGN ADVERTISING SALES TRADE PUBLICATIONS QUALIFIED SALES & EDITORIAL TEAM

Suite 300, 6 Roslyn Road Winnipeg, Manitoba R3L 0G5 Toll Free: 1.866.831.4744 www.delcommunications.com

Clariant and Prairie Petro-Chem:

focused on growth

In April 2011, global specialty-chemicals company Clariant acquired Prairie PetroChem, an Estevan, Saskatchewan-based company with about 40 employees and a 40-year history of serving the southern Saskatchewan and southern Manitoba market. The acquisition, which integrated Prairie Petro-Chem into Clariant’s oil services business line while allowing it to retain its name, significantly enhanced Clariant’s presence in Canada and the Bakken shale. Nearly a year later, both companies are pleased with the progress of the acquisition according to Blane Fichter, assistant general manager for Prairie Petro-Chem.

As a facet of the company’s integration, staff at Prairie Petro-Chem met with existing customers to answer questions and explain what the integration meant for the company’s capabilities and service offerings. Initially concerned, customers began to realize that by joining Clariant, Prairie Petro-Chem had access to more resources and expanded geographic reach.

“Our customers have been asking us, ‘What other things, now that you’re bigger, can you help us with?’ ” Fichter states.

The answer to that question, Fichter says, is quite a lot. “Gaining the technical expertise that comes with a larger company, improving the quality of facilities, and adding production facilities and manufacturing plants has advantages both technically and economically,” he says, adding that Prairie Petro-Chem can now compete for larger contracts that it would have been unable to secure before joining Clariant.

Jubal Slayer, technical coordinator, relocated from Houston, Texas to Prairie Petro-Chem’s headquarters in Estevan to oversee the company’s transition into the

Clariant family. Change has been implemented gradually at Prairie Petro-Chem, Slayer emphasized, and employees are on board with the new structure. Slayer says Clariant has learned from experience that parties in an acquisition can take time to gel, but that this one has been remarkably smooth.

“Certainly, whenever one company acquires another, there’s always a fear of redundancies. But that hasn’t happened here,” Slayer states. “That’s definitely been a positive.”

In 2012, Prairie Petro-Chem is focused on growth: growing its customer-base in northern Saskatchewan and establishing

Regina (306) 525-2777

a larger presence in Alberta, particularly in Calgary. Business has increased and sales have steadily climbed upward, and Fichter says that trend should continue.

As Prairie Petro-Chem adjusts to life as a member of Clariant’s large, international network, it maintains a commitment to local customers and providing excellent, customized solutions.

“Our customers expect a high level of service,” says Fichter. “As a Clariant company, we have the resources and capabilities to continue to exceed their expectations.” .

•

Saskatoon (306) 931-4448

Winacott Equipment Group located in Regina & Saskatoon, are dealers for New & Used Western Star Trucks, Hyundai Construction Equipment, Doepker & Cancade Trailers.

Winacott Equipment Group carries a full line of parts for the equipment we sell and our certified technicians are qualified to handle all your service needs.

We carry all major brands of engine parts for Detroit, Cummins, Mercedes and Caterpillar, we also carry a full line of heavy-duty drive train parts, Fuller transmissions, Eaton & Meritor cluches, Spicer & Meritor driveline components, Detroit & Dana axles and parts.

We are proud to be a member of the Saskatchewan Oil & Petroleum Industry.

www.winacott.ca Saskatchewan Oil Report 2012 135

SkyHigh –

A Division of Skyway Canada ‘Solutions You Can Trust’: scaffold sales, rentals and service Skyway Canada has been safely supporting its customers since 1967.

SkyHigh - a Division of Skyway Canada, is a trusted provider of safe, cost-effective scaffold and shoring solutions across Western Canada and Ontario. Skyway is a single-source solutions provider offering scaffolding, swing stage and shoring, engineering, design, erection and dismantling services; project management and control; and cost control and billing systems. Tailored management solutions can be integrated with clients’ internal systems, ensuring accuracy, efficiency

and timely reporting.

SkyHigh’s approach is to develop the right solution for every project, to ensure safety, production efficiency, cost-effectiveness and on-time completion. What makes SkyHigh unique is our experience and expertise in the design, engineering, delivery and maintenance of our systems. We have set the highest industry standards for safety and quality. We are a safe company – not just a company with a safety manual. Our vision for this company is to be the safest, smartest scaffolding company in Canada.

“Over 10 years in business”

Allied Cathodic Services L.P. is providing the following cathodic protection services:

• Design • Installation

• Maintenance • Material Sales

Box 1338, Estevan, SK S4A 2K9

Ph: 306-634-4493 • Fax: 306-634-4476 Email: alliedcathodic@sasktel.net 136 Saskatchewan Oil Report 2012

The company, which is Canadian owned and operated, has 165 full-time employees and 1,100 employees in the field, with SkyHigh branches in Saskatoon, Regina, Winnipeg, Brandon and Edmonton; and Skyway branches in Toronto, Sarnia, Thunder Bay, Edmonton, Calgary, Bonnyville, Whitecourt and Grande Prairie.

Skyway Canada was established in Toronto in 1967 in order to supply contractors and the commercial market in southern Ontario. In 1996, Skyway expanded to Sarnia in order to better serve Ontario’s industrial market; and in 1998 the company established itself in Alberta.

In 2005, Skyway acquired SkyHigh Scaffold to expand its operations into northern Ontario, Saskatchewan and Manitoba. In Saskatchewan and Manitoba, the company operates as SkyHigh – a Division of Skyway Canada. SkyHigh Scaffold had built a good reputation with the SkyHigh name and these acquisitions have provided Skyway Canada with a strong market presence from Alberta through to Ontario.

SkyHigh is currently supplying all of the scaffold labour and all materials for the Consumers’ Co-operative Refineries Limited (CCRL) expansion in Regina. SkyHigh was chosen as the scaffold contractor of choice thanks to its Track-RITE system for managing cost, schedule and productivity.

Skyway’s proprietary Track-RITE Project Control System keeps labour and equipment costs and worker productivity in plain view, on a real-time basis so expenses and project progress can be reviewed daily.

With Track-RITE, every scaffold build is uniquely identified and tracked in a da-

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138 Saskatchewan Oil Report 2012

tabase, so the customer maintains complete visibility over every aspect of the project. On repeat jobs, such as annual maintenance shutdowns, Track-RITE’s data mining capacity is particularly valuable. When the next scheduled event approaches, it’s easy to go back to the data to compare previous estimates and actual, and obtain solid information with which to plan the next project.

In Alberta, Skyway and SkyHigh are focusing on oilsands opportunities; and in Saskatchewan, on opportunities associated with potash mine expansions.

Oil-based opportunities are going to start to take off in Saskatchewan as well in the near future and Saskatchewan is going to enjoy a very robust economy for the next three to four years.

Because of this, SkyHigh is putting resources into place in Saskatchewan, in order to better support industry and contractors. As projects in Saskatchewan and Alberta heat up, one of the major challenges will be the requirement for additional labour. SkyHigh operates on the belief that if you bring the skill sets needed then the company will support you, empower you and help you grow your career. SkyHigh wants SkyHigh to be the place to work for scaffolders.

In addition, the company has formed strategic alliances with a variety of other contractors, in order to provide a complete range of services to large industrial plants. SkyHigh/Skyway combines its services with mechanical and insulation contractors, thereby forming a comprehensive team. Skyway’s Strategic Alliance Services bring together best-in-class organizations representing the complete breadth of industrial specialization, thus ensuring a true singlesource solution is available to customers.

Safety Standards: At SkyHigh, safety is our business and it’s demonstrated in everything we do. Our full-time corporate health and safety managers are specialists in occupational health and safety and ensure our products and our people are in full compliance with all current standards. We employ local site health and safety coordinators whose job is to ensure that every system on every job site is safe. Our exten-

sive and continuous health and safety training programs are mandatory for all employees; all Skyway employees are trained and tested annually. In addition to our people and our processes, all Skyway equipment meets Canadian safety standards and is regularly maintained in compliance with those standards. All personal safety equipment is supplied and mandatory at all Skyway sites. Skyway is ISO 900-certified.

Industrial Sector Solutions: SkyHigh’s industrial sector solutions are specifically tailored to the needs of every customer. With extensive industry experience across a wide variety of applications, SkyHigh delivers flexible, innovative and highly efficient systems. Our tailored management solutions, including estimating, inventory control, project management, billing and logistics processes can be integrated with our clients’ internal systems, ensuring accuracy, efficiency and timely reporting.

Responsive, customer-driven solutions make Skyway a value-added partner in industrial applications across Canada.

Commercial Sector Solutions: SkyHigh is the single-source solution for access, shoring and safety systems in a wide variety of commercial construction, restoration and production applications. With the most extensive inventories of the widest range of products and accessories, SkyHigh can engineer and supply systems expertly tailored to any job. Our full-service capabilities, including erection, on-site maintenance, teardown and cartage deliver turnkey efficiency for any project. We’ve earned our reputation for reliability through more than 40 years of experience – experience that delivers value-added ontime, cost-effective solutions.

SkyHigh – a Division of Skyway Canada. Solutions you can trust – since 1967.

For more information please contact Terry Haunn, Vice President – Business Development, Skyway Canada Limited T: (780) 413.8007 F: (780) 413.8012 E: terry.haunn@skywaycanada.ca www.skywaycanada.ca .

Global Flow:

‘Integrated Energy Solutions’

Formerly known as the Maverick Group of Companies, GlobalFlow was incorporated just about 10 years ago.

“We have went through many changes over the course of our ten years,” says Bruce McKenna, sales manager at GlobalFlow. “We started building fully automated metering skids for the shallow gas areas in southern Alberta and Saskatchewan, installing all of the electrical and instrumentation with our own field people.”

“As our oil and gas industry has changed dramatically, so have we. Within the last year we have consolidated all of our operating companies into GlobalFlow and its three business units, Automation-Controls-Process Equipment.

We specialize in offering ‘Integrated En-

ergy Solutions’. Through our automation group we offer project management, design and field installation with highly qualified SCADA technicians. We offer commissioning, programming, integration and ongoing support. We also have a full-panel construction shop dedicated to constructing with the highest-value components and assembly techniques.

“Our controls division offers electrical and instrumentation maintenance and construction through locations across the Western Canadian Basin in B.C., Alb., Sask. and Manitoba. With a full line-up of highly qualified electrician and instrumentation techs we are satisfying the current demands that the patch has to offer. Our process equipment division in the last year has ex-

panded their footprint into the market by adding on 28,000 square feet in a new facility. The addition of crane capacity, welding capacity and a 10-acre lot has certainly had a huge impact on our clients’ needs for vessels, separator packages process equipment of all sorts.

“By combining GlobalFlow’s expertise and offerings under one umbrella, we offer a synergistic value to producers that no one else does. We are able to send out equipment from our process facility that is ‘project completed’. This certainly has proven to save producers valuable time and money by using our ‘Integrated Energy Solutions,’ ” concludes McKenna. .

Saskatchewan Oil Report 2012 139

Conquest Equipment Inc. brings real value to the

oil industry

Conquest Equipment is a leading supplier of used heavy-con-

in Oxbow, Saskatchewan, there are also locations in Calgary, Al-

struction equipment in Western Canada, specializing in both

berta and Abbotsford, B.C.

equipment sales and rentals. Operating out of their head office

The company was originally founded as a steel fabrication company in 1990; in 2007 they formed a new company to grow their heavy-equipment line, well-known in the industry today as Conquest Equipment. Conquest employees strive to give their personal best in every relationship, whether creating a new home for a great piece of equipment or doing a short-term rental to help a client out of a bind; this has created their legendary reputation for integrity and excellent customer service.

All equipment is thoroughly inspected by qualified mechanics to be certain that it is in top condition prior to being offered for sale or rent, and all equipment is backed by their Conquest Protect3 policy. Knowing that the equipment is covered by a full warranty and a money-back guarantee gives every client peaceof-mind in the buying process and enables them to purchase with complete confidence.

Conquestâ&#x20AC;&#x2122;s rental fleet includes a wide range of available equipment, giving customers the leading-edge to expand their business without having to put up excess capital or limit their cashflow.

Conquest places the highest value on long-lasting, positive business relationships. Conquest knows that they would never be where they are today without their valued and trustworthy customers, and looks forward to continuing to work with both existing and new customers in the future.

Call 306-483-2500 for a quote today! .

140 Saskatchewan Oil Report 2012

CAPPA: proudly serving production

accountants for over 50 years What is a Production Accountant?

Production Accountants perform the accounting tasks relating to volumes of oil, gas and water that are separated from the well effluent. Every month, production accountants determine each party’s share of production from the wells, each party’s volumes held in inventory at the facility and each party’s share of products that are sold from the facility.

What’s New at CAPPA 2011 marked the 50th year that CAPPA has been an association. We are very proud to have reached that important milestone. Since we are volunteer-based, it is a tremendous accomplishment. We couldn’t have done it without the great work of our volunteers.

While we do promote social and networking opportunities for our members, we also have committees that look at new regulations and procedures that may impact our business and we ensure that our members are well-informed. We do this through an online magazine called RECAP. This is the primary way we keep our members up-to-date on all of CAPPA’s business.

We also offer a comprehensive certificate program that is widely viewed in the industry as a minimum requirement to work as a production accountant. Our seminar programs are also very well-attended as these cater to a specific topic that will help production accountants in their day-to-day work.

CAPPA Objectives Are: • To strengthen the profession of production accounting.

• To provide a forum for the people interested in the compiling and reporting of production statistics in the oil and gas industry.

• To represent this section of the industry in a technical and procedural capacity when dealing with other organizations or government agencies.

• To develop an education program designed to assist the individual member, the company, and the industry as a whole in efficient production accounting practices and procedures.

• To promote a cordial relationship among all members of the association.

CAPPA Member Privileges • Online RECAP magazine • Up-to-date industry information • Preferred pricing for educational luncheons and seminars • Conferences • Social events

Our members have access to extra website content including: • CAPPA Job Board • Salary survey results • Membership surveys • Materials from CAPPA presentations CAPPA Program Overview What can a CAPPA Certificate do for you? A CAPPA Certificate opens doors in the oil and gas industry and leads to a career in production accounting.

What is involved in taking the CAPPA program? The program consists of five levels (45 hours per level) plus 100 hours of registry (government reporting) modules.

What are the prerequisites? A high school diploma, but accounting courses or an accounting diploma would be an asset.

If you would like more information on our education programs or you would like to volunteer for CAPPA, please visit us on our website at www.cappa.org. We look forward to hearing from you! .

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hotrodsoilfieldservices.com Saskatchewan Oil Report 2012 141

Get green

with Kenilworth

Looking Back...

Looking Forward...

1954 GMC

2007 Kenworth 1966 International

142 Saskatchewan Oil Report 2012

Kenilworth Combustion has made meeting the ever-changing process heating requirements of the oil and gas industry easy. Kenilworthâ&#x20AC;&#x2122;s burner systems are preassembled, function-tested and ready for installation before leaving our shop.

At Kenilworth, we believe in reducing install time, downtime, emissions, cost and liability for our customers. Also, CSA field approval has never been easier with Kenilworth; we can coordinate the required inspections for all of our Process Heater Modules (PHM) and we guarantee a field approvable and compliant system â&#x20AC;&#x201C; the first time.

The Kenilworth Combustion PHM is a burner system like no other on the market. What once took days now takes hours, and combined with the additional option to have Kenilworth Combustion supply a CSA field approval, it makes Kenilworth Combustion a one-stop for all of your burner system needs. With a full product line ranging from under one millimetre Btu/Hr (U1), one mm to five mm Btu/hr (U1-O5), five mm to 10 mm Btu/ hr (O5-U10), Kenilworth Combustion has you covered for any application.

With a heating requirement below one mm Btu/hr, the Kenilworth Combustion U1 Process Heater Module is the perfect system for almost any application. The U1 PHM comes in two specific configurations, one for low gas pressure (max five psi) and one for higher gas pressure (max. 30 psi) and power consumption down to 0.5 amp. The U1 is designed to run on two dissimilar Btu value fuels (propane and solution gas) without any orifice changes required. Both come with everything you would expect from Kenilworth Combustion products including safety, reliability and efficiency.

The Kenilworth Combustion O1-U5 PHM has been developed with the same attention to ease of installation, reliability, safety and efficiency as the U1 PHM. The concept is simple; have a system de-

signed for one to five mm Btu/hr that is preassembled and function tested before it leaves the Kenilworth Combustion facility. The O1-U5 comes with a choice of three patented Kenilworth Combustion burners. Also, the O1-U5, as with all Kenilworth Combustion PHMs, is ready for the SCC/CSA field inspection without any worries.

The Kenilworth Combustion O5-U10 PHM has been developed with the same attention to ease of installation, reliability, safety and efficiency as all other PHMs. The concept is simple; have a system designed for five to ten mm Btu/hr that is preassembled and function tested before it leaves the Kenilworth Combustion facility. The O5-U10 comes with a choice of three patented Kenilworth Combustion burners. Also, the O5-U10, as with all Kenilworth Combustion PHMs, is ready for the SCC/CSA field inspection without any worries.

Kenilworth Combustion is proud to offer the oil and gas industry a simple and cost effective solution to its BTEX and Fugitive Emissions challenges. The Kenilworth Combustion BTEX and VRU (Vapour Recovery Unit) Process Heater Modules (PHM) have been developed over the last 10 years and are field-proven. The BTEX and VRU PHMs come preassembled, function tested and ready for CSA Field Approval. Kenilworth Combustion’s BTEX systems have a proven 99.9 per cent destruction rate of BTEX at a fraction of the cost of other systems on the market. Whether you need to reduce your BTEX emissions or want to utilize fugitive tank emissions, Kenilworth Combustion has you covered.

Kenilworth Combustion developed their first tank skim system over 20 years ago. These fully 316 Stainless Steel Skim Systems were designed with simplicity in mind. The Kenilworth Combustion Tank Skim System utilizes a reliable single point pivot system free of cables, pulleys and hoses and is free floating. Regular maintenance does not require access to the inside of the tank and combined with an installation time of four to five hours, the Kenilworth Combustion Skim System is the clear choice for your Tank Skim System needs.

Take a look at the spec pages online at www.kenilworth.ca and see for yourself how simple your process heating project can be. Check out the conceptual skim install drawings and give us a call to get a quote or to answer any questions you may have. .

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Saskatchewan Oil Report 2012 143

Exceeding clientsâ&#x20AC;&#x2122; expectations through excellence Southern Plains Energy provides production testing and optimization services to the oil industry Southern Plains Energy Inc. (SPE) provides production testing services to areas stretching from northern B.C. to southern Saskatchewan; services include spot testing, two- and three-phase testing, data capture and management, website and satellite reporting (GlobalEye), and more.

Southern Plains Energy is able to supply all of your well-completion requirements, from blow-back tank rentals and blow-back crews to electronic flowprover tests. The electronic prover uses a data logger, which we can configure many different ways to record all the data required, from one-minute readings to one-hour readings. The reports can be accessed online (PTX) with Excel export and graphing functionality.

We can also supply separator test shacks to complete the test with a multipoint report, using an electronic flow control valve to regulate and/or control flow on the well, using flow rate, pressure or differential pressure. The separator shacks will electronically record casing pressure, flow rate, static pressure, differential pressure and produced water.

This can also be viewed on a web-based SCADA system by simply logging onto our website with proper name and password protection.

Spot Gas Flow Testing SPEâ&#x20AC;&#x2122;s spot-flow testing service uses state-of-the-art flow-testing equipment to provide precise flow measurement data. Your well database is built specifically for your application and maintained with your specific well information. The database is transferred to a pocket PC, from which the field tech then accesses previous tests and comments archived in the database. Locations are also programmed previously to avoid errors in 144 Saskatchewan Oil Report 2012

LSDs. The tests are all synced and data is compiled on a central software program; test data and well information can be viewed in any preference and exported into any accounting software already used within your company. All database data and WTX tools can be accessed through the web, and data can be viewed and exported from your desktop.

Spot-flow testing software and equipment are ERCB (EUB) approved. Southern Plains safety requirements not only meet, they exceed industry expectations; and all field technicians are safety-orientated and fully ticketed.

acquisition and processes, analyzes the data and then displays the results; reports can be conformed to your needs and preferences.

Southern Plains can obtain fluid levels for your oil wells with a build-up test, whereby gas-free foam suppression can be calculated. For gas wells, fluid levels can be acquired with spot-flow testing; this will improve your swab programs and optimization projects, yet another way in which Southern Plains can effectively help you to optimize your production.

Data management diagram.

Fluid Level Shots The echometer is a computerized instrument for acquiring acoustic liquid fluid-level data, acoustic pressure transient data and dynamometer data. Superior state-of-the-art sigma-delta technology digitizes the signals from various transducers. The computer controls data

Water-to-Gas Ratio Test and Casing Vent Build-up Southern Plains Energy can also do your water/gas ratio testing. We can do water/gas testing on a per-well basis or group meter. With a wide line of separation packages and water turbines, we have the separator for your specific application. SPE, which will pinpoint your

Serving the oil & gas services industry. industry.

Production Testing Services: • Spot Gas Flow Testing • 2 and 3 Phase Testing • P-Tank Production Testing • Fluid Level Shots • Water To Gas Ratio Test & Casing Vent and Build Up • Well Completion Services • Data Capture & Management • Web & Satellite Reporting Northern British Columbia to Southern Saskatchewan

Exceeding our clients’ expectations through excellence, learning, and innovation.

Southern Plains Energy Inc. Bay 3, 2200 South Highway Drive SE Redcliff, Alberta Phone: (888) 526-9668 Fax: (403) 526 6897 info@southernplainsenergy.com www.southernplainsenergy.com

Spot-flow testing software and equipment are ERCB (EUB) approved. Southern Plains safety requirements not only meet, they exceed industry expectations; and all field technicians are safety-orientated and fully ticketed. water production into your gathering system, has mobile units that can easily be installed (separating into pipeline or tanks), with flow control options available as well.

Southern Plains can supply data for all of your build-up testing requirements.

Reports are sent to you, graphed and formatted to be easily imported and analyzed. Digital deadweights or data loggers can be installed to collect digital data on your perforation projects for build-up testing.

Intermitters and Optimizers The “Intermitter” uses a flow computer to monitor and control the well.

The unit is configured to flow the well or shut it in, building up enough pressure to bring fluid to the surface; this proactive flow control allows the unit to take action before water loading becomes a major problem and operator intervention is required. When installed and functioning, positive results will be immediately provided; unproductive wells can again be profitable.

Southern Plains has taken wellhead production optimization to a new level using innovative flow control technology. Maximizing production with minimal operator intervention is now achievable.

The “Optimizer” monitors pressure on velocity strings and casing, as well as flow

rates, and automatically adjusts valves to maximize flow rates. This means production can be optimized while ensuring that the well remains dewatered. Units can be set up with onsite technical support – or utilize the GlobalEye satellite-based monitoring, a gas measurement system that operates in an unmanned mode.

Pre-defined thresholds for changes in the variables being monitored can call out field staff if a site visit is necessary, and a complete log of production data and history can be downloaded as required.

For more information, please visit www.southernplainsenergy.com or call 403.526.9668. .

Dependable, cost-effective solutions to meet your drilling program demands Serving Western Canada and North Dakota Personal service, professional performance Highly skilled, experienced personnel State-of-the-art technology & equipment Positive pulse & electromagnetic MWD Committed to your success

Complete Directional Drilling Services

www.millenniumdirectional.com 146 Saskatchewan Oil Report 2012

Carlyle, SK Ph: (306) 453-2533

Calgary, AB Ph: (403) 264-8206

Empire Welding & Machining Ltd. proudly celebrates its 25th anniversary Empire Welding & Machining Ltd., now celebrating its 25th anniversary, has a lot to offer in the oil and gas industry. From the company’s inception in 1986, we have always done due diligence to maintain the highest standards in integrity, and put as much time and effort into a clients’ products as we do into our products.

We operate out of an approximately 15,000-square-foot facility and maintain several pieces of equipment, including 12-foot by ¼-inch brake, 10-foot by ¼-inch shear, 120-ton iron worker, hydraulic presses, roll, a round and square pipe bender, several mig-welding stations, stick welders, hoists, forklifts inside and outside, blast and paint department,

a one-ton truck, a 38-foot goose neck trailer and a 25-foot trailer for pickups and deliveries, a lathe, a mill, several drill presses, an assembly department and an inventory-control department.

We also do our own in-house designing with our state-of-the-art software SolidWorks, with which we can design, simulate and stress test, and provide very detail drawings and manuals of any component, part or finalized unit we work on.

We have extensive expertise in prototyping, custom-building and manufacturing. To complement the mentioned functions, we also pride ourselves on being knowledgeable in hydraulics, electrical wiring, switches, speeds, seals, material

grades ferrous and none-ferrous and so on. We do our best to keep on top of regulations that pertain to the items we are building.

We will provide you the client with a well-maintained set of notes of our discussions, changes, updates, photos and time tracking, scheduling and delivery dates as set out at the time of orders being built for delivery.

From time to time, we take on the impossible and make it possible! We welcome a representative of your company to come out and visit our facility; allow us to give you a tour around, to meet our staff and what we are all about. You won’t be disappointed! .

Please Contact for a Distributor near you.

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www.ifrworkwear.ca 574389_IFR.indd 1

Saskatchewan Oil Report 2012 147 14/03/12 11:24 PM

Shaunavon:

striving, growing – and open for business The Town of Shaunavon has been experiencing a recent surge of investment, both commercially and residentially. Whether the attraction is the result of the low cost of living or untapped natural resources, the community and outside region are feeling energized.

“Our community and region has been working hard to continue to support the development of new business. In today’s world, you have to establish regional uniqueness based on unique ideas on how to promote investment in your community,” states Jay Meyer, administrator of the Town of Shaunavon.

“Many oil companies moved to the area and have been a great addition to our community,” states Richard Whyte, town councillor and businessman. “Whether they’re new hotel projects, infrastructure improvements or lot development, our community is

Toll Free: 1-888-847-7778 Office: 306-672-3062 Fax: 306-672-4427 Email: dynamicreso@gmail.com

working to grow with the industry and its needs,” Whyte says.

In many of southwest Saskatchewan’s communities, the oilpatch is booming with a dramatic increasing in drilling. This increased oil activity, undoubtedly, has increased employment opportunities – both within the oilpatch as well as in various servicerelated industries.

In the autumn of 2011, the community of Shaunavon opened the Crescent Point Wickenheiser Centre, a $14-million recreational facility. After one complete season in the facility, it proved to be a successful endeavour. The complex has hosted many provincial hockey games, as well as two Western Hockey League games. The community also opened up a new golf clubhouse in the spring of 2011; the Rock Creek Golf clubhouse was completely built by volunteers and has been appraised at nearly $1 million in value.

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Gull Lake • Estevan • Carlyle • Kindersley and Lloydminster

148 Saskatchewan Oil Report 2012

In the autumn of 2011, the community of Shaunavon opened the Crescent Point Wickenheiser Centre, a $14-million recreational facility.

“We are trying to keep up with the demands of our people as we see the growth of our region,” states Whyte. “It’s great to see the people and the oil industry work together to get projects like these completed.”

With over 100 businesses to serve residents and the surrounding area, Shaunavon’s business district is incredibly vigorous. A strong, diversified economy brings with it ample opportunity to succeed in small or large business; the active oil industry has provided just such a positive environment for growth in almost all areas of the commercial sector.

Additionally, Shaunavon’s population base has grown by more than 20 per cent in population the past year and serves a market area of over 10,000 people throughout the southwest region of the province. The Town of Shaunavon Chamber of Commerce is very progressive and influential, and has over 100 members who sponsor several events throughout the year. The local chamber understands the importance of working together. Hence their slogan: “We are better together!” – a slogan the oil industry and the community has proven works. .

Town of

GROWING ECONOMICALLY

Thanks to the strength of the activity in the Oil & Gas Industries in our area.

GROWING SOCIALLY Thanks to generous donations from our Oil & Gas Companies toward our facilities & community organizations.

GROWING PHYSICALLY

Growing

with You!

With the development of a new residential subdivision and the creation of new industrial lots.

306-297-2605 • www.shaunavon.com

41091193/SWOG12

Saskatchewan Oil Report 2012 149

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150 Saskatchewan Oil Report 2012

Saskatchewan Hotel & Motel Guide Choice hotels when your crews are on the road.

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306.268.2175 Saskatchewan Oil Report 2012 151

Index to advertisers 24-7 Enterprises Ltd. 49 North Resources Inc. A-1 Rent-Alls

110 31 127

Cara-Dawn Transport Carson Energy Services Ltd. City of North Battleford

130 9 55

Flexpipe Systems G.L.M. Industries L.P.

131 79

GB Contract Inspection Ltd.

124 143

Abacus Datagraphics

12

City of Swift Current

111

Girard Bulk Service Ltd.

Absolute Locating

52

Classic Vacuum Truck Ltd.

150

GlobalFlow 39

Ace Instruments Ltd.

17

ClearStream Energy Holdings

Alliance Pipeline

53

Conquest Equipment

Allied Cathodic Services L.P. Annugas Compression Consulting Ltd.

136 19

37 140

Golder Associates

116

Graham Construction & Engineering Inc.

IFC

D & G Polyethylene Products Ltd.

84

Grassland Environmental Ltd.

35

D & D Oilfield Rentals

48

Great Plains College

76

Grimes Sales & Service Co. Ltd.

43 97

APEGS 115

Days Inn - Swift Current

Armada Resources Ltd.

Diamond Shelters/Dueck’s Mechanical Inc.

85

Grit Industries Inc.

57

Do All Industries Ltd.

66

Gyrodata 117

119

DTD Oilfield Services

104

H2O Innovation

Halliburton 13

Arrival Oil Tools Inc. Atom-Jet Group

117

151

Bert Baxter Transport Ltd.

32

Dynamic Resources Ltd.

148

Big Country Energy Services

73

E.C.S. Safety Services Ltd.

44

Big Muddy Inn

56

Elad Geological Consulting Ltd.

114

Hempel (Canada) Inc.

104

Empire Welding & Machining Ltd.

120

Hot Rod’s Oilfield Services Inc.

141

Brandt 59

Ener-Test Well Servicing and Rentals Ltd.

128

IFR Workwear Inc.

147

Brock White Construction Materials

Essential Coil & Stimulation Services

50

Impact Oilfield Management Team

75

103

Estevan Chamber of Commerce

67

Integrity Viking Funds

81

89

Estevan Meter Sales & Service

124

Iroc Energy Services

108

Expro Group Canada Inc.

129

Irontech Rig Repair & Manufacturing Inc.

22

63

Fast Trucking Service Ltd.

142

JNE Welding

65

Brady Oilfield Services LP

Camex Equipment Sales & Rentals Inc. Canadian Energy Services Canadian Linen & Uniform Service Canadian Western Bank

151

Heat Hawg

143

51

81

118

Please support who helped make this 152 Saskatchewan Oil Report 2012

Index to advertisers Karam 74

North West Regional College

Kenilworth Combustion

10

Northwest Tank Lines Inc.

11

Shaunavon Economic Development Committee

149

Kenosee Inn Resort Hotel

151

Northern Bridge & Mat Ltd.

99

Sidewinder Coil Services

154

Kilo Technologies Ltd.

49

Outlaw Oilfield Hauling Ltd.

24

Skyway Canada Limited

137

Kramer Energy

78

Palliser Land Ltd.

35

Smith Bits

138

Kudu 28-29

Penta Completions

71

Southeast Regional College

41

Leader Inn

Petro Canada

23

Southern Plains Energy Inc.

145

151

130

Lloydminster Economic Development

21

Polycore Tubular Linings

Marmit Plastics Inc.

33

Prairie Mud Service

69

SEREDA 101

Metra Equipmwnt Inc.

72

Prairie Storm Construction Ltd.

88

Stewart Steel

MGI Securities

25

Praxair 26

Stoney Mountain Rentals

PTI Group Inc.

61

Summit Liabilities Solutions

Pure Energy Services Ltd.

87

Suretuf Containments

Midwest Surveys Millennium Land Ltd. Millennium Directional Service Ltd.

113 35

107

Sasktel 7

Spectra Credit Union

4

91

Swagelok Central Canada

105 3 47

146

Pyramid Corporation

134

133

Morley Muldoon Transport Ltd.

60

RL Supervision Ltd.

75

Tanner Bit Service

18

MRC | Midfield

36

Racken Enterprises Ltd.

73

The Telsec Group

100

NAL Resources

5

RAM Industries Inc.

122

TSl Industries

98

150

United Centrifuge Ltd.

OBC 27

Neptune Pump Services

26

Ranger Land Services Ltd.

Neset Consuting Service

52

RigManager 15

University of Regina

Noble Well Services Inc.

68

Rocking Horse Energy Services

78

W.H. Coderre & Sons Construction Ltd.

114

Norbertâ&#x20AC;&#x2122;s Manufacturing

42

Roughrider Rigging Ltd.

77

Watson Land Services (1994) Ltd.

126

Norseman Structures

40

Royal Bank of Canada

64

Winacott Equipment Group

135

North Dakota Petroleum Council

93

Saskatchewan Ministry of Energy & Resources

IBC

ZCL Composites Inc.

45

the advertisers publication possible.

Saskatchewan Oil Report 2012 153

MINIMIZE COST AND INCREASE PRODUCTION WITH E-COIL • CBL (Cement Bond Log)

• GR-CCL (Gamma Key – Collar Locator)

• CHAT (Cased Hole analysis tool)

• Perforating

• PFT (Pressure – Flow – Temperature) • WR/ Bridge plugs • CNL (Compensated Neutron Log) Coil sizes range from 1 ½ inch to 2 inch with depth capabilities up to 3800 meters of 2 inch and has a 80,000 lbs push/pull injector.

1.306.891.6668

WWW.SIDEWINDERCOIL.CA 154 Saskatchewan Oil Report 2012

Kelly Melby Big Guns Energy Services Inc. Suite 600, 640 - 8th Ave. SW, Calgary, AB T2P 1G7 D: (403) 206-6141 C: (403) 952-0112 O: (403) 294-1444 E: kelly@bigguns.ca

24 Hour Service

Be Safety Smart From The Start

Solids Control And Dewatering Equipment • Centrifuge • Polymer Tanks • Shale Bins

• Dewatering Tanks • Premix Tanks • EZ Load Hydra Lift System

C.O.R. Certified www.unitedcentrifuge.ca Phone: (306) 842-2378 Fax: (306) 842-2403 Email: unitedcentrifuge@sasktel.net Shop 1560, New City Garden Road, Weyburn, Saskatchewan S4H 2L5