$5.99 NOVEMBER 2013
Tiffany Armitage
Working in Her Shoes
… after following in her father’s footsteps see ARTICLE ON page 8 PHOTO cOURTESY OF ARMCO
contents features 06 Calgary Women in Energy – New Oil and Gas Education Program Gets Women in Tune with Industry 08 ARMCO – Working In Her Shoes After Following in Her Father’s Footsteps 14 MEDSTAT Off Road Rescue Ambulance – A New Ambulance Keeps Remote Workers Safe 18
NCS Oilfield Services Places Record 60 Stages in Single Torquay Formation Well
20
Western Canadian Wine Consultants – The Best Consultants You’ll Ever Meet
22
Stormhold Energy Ltd. – The Calm Before the Storm
24
Recipe for a Healthy Life – Essential Ingredients Cooking Inc.
26
A Golfer’s Scenic Paradise – Golf Canada’s West Vacations
oilfield hub members at large 17
D & D Machine Works Ltd.
27
Caliber Planning
Canadian copyright 2013 by Leadstone Group Inc. The entire contents of this publication are copyrighted. Any unauthorized reprint or use of this publication is prohibited. No part of this publication may be reproduced in whole or in part without the written permission of the publisher.
Sponsored By
www.OilfieldHUB.com PUBLISHED BY
Publication Number: 42420518 www.LeadstoneGroup.com
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| OilfieldPULSE | November 2013
Departments
oilfield PULSE advertising index
04
OFC
Armco Resource Management Company
17
Logan Completion Systems
27
Data Shapers Inc.
29
Plains Fabrication & Supply
28 32
CEO PAGE: Tip of the Iceberg enert’s Marketing Minute: Z Marketing Has Changed! Plains’ Perspective: Skilled Labour Shortages – A Thing of the Past in Canada
OBC Lamb’s Trucking Ltd.
THE BEAT 30
Rocky Mountain Food and Wine Festival
31
Chris Grabill
COVER | ARMCO See article beginning on page 8.
$5.99 NOVEMBER 2013
Tiffany Armitage
Working in Her Shoes
… after following in her father’s footsteps see ARTICLe ON pAge 8
Kevin Turko
Creative Marketing Heather Beatty Heather.Beatty@LeadstoneGroup.com
Managing editor Andrea.Turko@LeadstoneGroup.com
Andrea Turko
Sales Manager Dave O’Connor Dave.OConnor@LeadstoneGroup.com
Contributing EDITOR Amanda.Lee@LeadstoneGroup.com
Amanda Lee
Member relations Karen.Keith@LeadstoneGroup.com
Karen Keith
Subscriptions Subscriptions@OilfieldPULSE.com
Jeannie Yip
CEO Kevin.Turko@LeadstoneGroup.com
Finance & Admin Finance_Admin@LeadstoneGroup.com
Jeannie Yip
Telephone
1-403-537-6560
Toll Free
1-866-883-8848
For advertising inquiries or editorial submissions please contact: Production@LeadstoneGroup.com
November 2013 | OilfieldPULSE |
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CEO Message
Tip of the
Iceberg
We all suffer from the same affliction. We are constantly striving to strengthen the relationships and build the level of trust between our companies, and the E&P and EPCs we are or want to do business with. After all, that’s what leads to more business, isn’t it! 4
| OilfieldPULSE | November 2013
Yet, in doing so, we still have trouble figuring out why we can’t get that next new customer. We are often frustrated when we have other products and services to offer to our customers, that they don’t order or even seem to know about. We think if our prospects would just take the time to get to know our companies a little bit better, they would surely buy from us. Well, we all suffer the same sales and marketing affliction, whether you’re ......... an Exploration and Production company looking for new investment capital an EPC company looking to expand your Operator client base a Service and Supply company looking for new opportunities to sell into more Exploration and Production companies a Rental company looking for ways to gain a larger share of your Producer’s wallet a Manufacturing company looking for new fabrication work with oil patch Service, Supply and Rental companies Here’s what we are hearing from our new Oilfield HUB members. It’s tough to get noticed, it’s difficult to make contact, it’s hard to get into see someone, and it’s even harder to break into an existing supply chain. Salespeople for service and supply companies are pounding the pavement in downtown Calgary, and doing a very reasonable job getting in front of the right people in established relationships where product sourcing decisions are being made. But at the same time, they quickly realize when orders are not flowing, that the actual buying decisions are also being made by their customer’s people in the field. How do you reach those folks when they need you and your products/services the most? You do a creditable job in Calgary, but can’t be in front every superintendent, field supervisor or their field staff when they are making their vendor selections and purchasing decisions. Worse yet, what happens when you don’t have a sales presence in Calgary or near any of these individuals? Then what?
to all, but likely not strong enough to win over that next new client or order. Sound familiar in your world? Our challenge, how do we educate our customers and prospects about all of the great things we can do, the experience that we have, the expertise we can offer and the entire suite of products and services we can provide? The vast amount of great stuff our customers should know about us, that’s lying below the water line! Interestingly, we suffer a similar fate with our own sales and marketing efforts when approaching new prospects about Oilfield HUB. At times we are met with an immediate dismissal which leaves us shaking our heads. We’re told we are just another directory, or that their advertising budget has been spent, or we’ve tried services like this before and didn’t get any results. So we too are battling old market perceptions when selling the value of the HUB; that darn stuff above the water line! So what’s all below our water line? Hmm! If I’ve left you hanging and wanting more, well that’s the Tip of Our Iceberg. Give us a call. Kevin Turko, CEO Leadstone Group
We coined this, The Tip of the Iceberg effect. It’s all about changing market perceptions and established industry paradigms surrounding the many competitors that have come and gone before us, while still battling current competitors that are offering comparable products and services. This is all the stuff above the water line. The information that is easily accessible
November 2013 | OilfieldPULSE |
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PHOTO cOURTESY OF KEN BEATTY PHOTOGRAPHY
Calgary Women in Energy New oil and gas education program gets women in tune with industry
C algary Women in Energy (CWIE) is an independent non-profit membership society dedicated to promoting, supporting, and empowering professional women in the Energy sector in Calgary, Alberta.
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CWIE’s activities revolve around four pillars: 1. Education 2. Mentorship 3. Community Involvement 4. Networking In CWIE’s previous article, we introduced you to the society and its history. This article focuses on the educational component of the group. Often described by members as their favorite CWIE initiative, the monthly technical sessions have become a valuable source for knowledge and current industry happenings. The technical sessions are a judgment-free environment where members can learn about all facets of the energy industry, or, as one of our directors likes to call it, “Education Beyond One’s Cubicle”. Leading experts are invited to share their specialized knowledge on a monthly basis. This provides the opportunity for members to tap into a wealth of experience and gain a better overall understanding of the various areas of the Energy sector. Some of the topics covered this past year include: TransCanada presentation on the Keystone pipeline Downhole cameras and their importance for drilling
In further support of offering CWIE’s members the opportunity to expand their knowledge, we were thrilled to once again offer an "Oil & Gas 101" course free of charge, not just to members, but also to the industry at large. In proud partnership with Suncor, CWIE offered nine weeks of classes that took place over lunch hour for those looking to expand their understanding of a unique energy environment. For the second year in a row, the program was a huge success, and plans are already underway for next year's sessions. One of the highlights this year was an exclusive session with the Alberta Energy Minister, the Honorable Ken Hughes. Over an intimate breakfast, discussions included the initiatives of the Alberta Government to increase awareness of our industry on a global scale and our sector's national economic impact. Our members were honored and humbled by the Minister's candor and genuine interest in CWIE. We extend our gratitude for his enthusiasm and presence.
THE BOARD OF DIRECTORS WITH MINISTER KEN HUGHES
Working in such a diverse industry means we tend to focus on specialized areas. Through the exposure of the various speakers and topics, our members gain a breadth of information, arming us with invaluable knowledge of our ever-changing environment.
operations SAGD operations and their environmental initiatives Roles of EPC’s and EPCM’s in operations
For more information about CWIE, please visit our website at www.cwie.org
IT security risks for major oil and gas companies
and how to mitigate them Sucker-rod pumping basics and well optimization,
which is the role of fracking in drilling operations
Article written by Anne-Marie Rush, CWIE President Carissa de la Vega, Director / Treasurer
November 2013 | OilfieldPULSE |
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Working in Her Shoes AFTER FOLLOWING IN HER FATHER’S FOOTSTEPS
T
iffany Armitage, President of Armco Resource Management Company (ARMCO), runs leading edge manufacturing facilities providing high pressure hose assemblies and fittings with locations in Calgary and Leduc, Alberta, Canada. Transitioning from film set designs to a typically male dominated oil patch supply company surprised not only her peers, but also her father. Tiffany’s dreams were not of manufacturing hose assemblies and working with the oil patch and construction industries. She worked in beautiful downtown Vancouver, B.C. as a film set designer and a personal assistant to movie personalities such as ‘Charlie’s Angels’ actress Kate Jackson. Taking a break between films, Tiffany travelled to Calgary to spend a couple of weeks with her parents. Little did she know, fate and a persuasive father would turn her career into 18 years in manufacturing and the ownership of her own company.
Her initial thoughts were not of oil rigs, heavy trucks, D-10 bulldozers, and men in hard hats. Her father, Dave Armitage, challenged her to learn a “real business” from the bottom up. Soon, she found herself driving trucks delivering 1,000 pound loads of choke and kill and rotary hose to drill sites. She did shipping and receiving, built hydraulic hose assemblies, and swept the floors. After completing a number of finance courses, she moved on to procurement and inventory control, accounting, sales, and finally Operations Manager. After her father’s retirement and sale of his interests, Tiffany decided to venture out on her own. Armed with a five-year plan, a sub-leased building, determination, and an army of friends, welders, electricians, and pipe fitters, ARMCO was born. Her number one plan was to take the lead by using industry leading assembly practices, advanced testing, and data storage. ARMCO is ISO2008 Certified, a member of the American Petroleum Institute (API), Rubber Manufacturers Association (RMA), National Association of Hose and Accessories (NAHAD), and Occupational Health and Safety Advisory Services (OHSAS), and thus dictating only the highest level of standard in both product and production facilities.
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Tiffany showed great confidence, sometimes even putting the cart before the horse. She signed a sub-lease on a building, hired staff, and then went to the bankers. Luckily, the five-year plan she presented pleased and impressed the bankers. Confident after so many years of learning from the bottom up, Tiffany was comfortable in every role. “It may sound funny, but I was never scared. I just knew what I wanted and went after it,” says Tiffany. They say it takes an army to build a village, but in Tiffany’s case (to build her facility), it took a bunch of great friends, dedicated employees, her father, clear direction, and long hours into the night. Within weeks in her shop, ARMCO was manufacturing ARMCO Certified Hose Assemblies and producing custom orders. Business partnerships were forged with leading manufacturers and the backbone was in place and poised for growth. At ARMCO, being a team is also integral to the overall infrastructure. Jeremy Roberts, Operations Manager, has been working with Tiffany for over 12 years. Brandon Greene, who has been with ARMCO since day one, says, “ARMCO is a family. We look after each other, and we are building a bigger and better team every day.” “Belief in the work that we do, the customers we service, and the overall philosophy of the company makes me proud to work at ARMCO. That’s why I’ve been here for so long,” says Shawn Stewart, who became part of the team over four years ago. Some people might ask if this success comes with being a woman and having a different outlook in this male dominated industry. Tiffany says, “No! I am like everyone else. I make efforts to perfect my craft everyday, forge for better and longer relationships with my business partners and vendors, and I know I can do anything my industry peers can do. Being a women just means more is expected, and that is A-OK with me.”
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“I remember meeting Tiffany about six years ago, and I thought how does this petite, attractive women fair in this dog-eat-dog industry? She looks more like a model then someone who can build a rotary drilling hose,” says her now Director of Sales and Marketing, Maria Martiniello. “After working with Tiffany for over a year, I now know the answer. Tiffany has a love of the industry, her customers (she knows them all personally and by name), and the technology. With her passion and drive, success is the only option.” Recently, a pilot show featuring Tiffany and ARMCO called “Working In Her Shoes” was filmed, and it is available for viewing on TELUS OPTIKS (Video on Demand) or via Vimeo (http://vimeo.com/73909135). The show features ARMCO’s in-house equipment and processes, including all the testing and certifications ARMCO does to ensure quality products always leave the shop. Their product lineup includes land and offshore drilling hoses, hydraulic hoses, oilfield products including rotary, Kelly hoses, choke and kills, BOP, Steam, and fracturing hoses. ARMCO provides hose and fitting products to all areas of the petroleum industry, whether it is upstream, downstream, transportation, or recovery sectors. It is also quite diversified and serves the markets needing drilling, well service, transportation, mining, manufacturing, agriculture, and environmental. ARMCO strives to exceed the expectation of their clients as well as the capabilities of their competitors. Through innovation, new product development, quality control, and service excellence, they make every effort to be an exceptional leader in the industry. ARMCO takes pride in their dedication to preserving long-term and profitable business relationships, not just with their clients, but their colleagues, service providers, and community. ARMCO uses engineered conveyance and control products that have a reputation for safe, secure, and rugged performances. They provide testing, certification, and recertification of hose assemblies to meet or exceed industry standards before shipping. This world class hydrostatic test module is capable of 70,000 PSI. ARMCO’s test facility is one of the most advanced in North America. ARMCO certifies assemblies to all major standards including those set out by the Rubber Manufacturers Association (RMA), Department of Transportation (DOT), Certified General Accountants (CGA), American Petroleum
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At ARMCO, being a team is also integral to the overall infrastructure.
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November 2013 | OilfieldPULSE |
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Institute (API), Det Norske Veritas (DNV), Society of Automotive Engineers (SAE), American National Standards Institute (ANSI), and the National Association of Hose and Accessories (NAHAD). All certification information is uploaded to the Internet or onto RFID chips, which can be read by any smartphone. In addition, the shop has a wide array of coupling equipment. Does the apple fall far from the tree? In this case, it didn’t, but that apple has a few tricks it can teach the tree. Tiffany has an amazing appetite, not only to succeed in any job put forth, but also loves a challenge in her personal life. She thrives for any challenge but is also a speed demon. Tiffany and her father Dave have many common interests other than hoses and fittings. Tiffany has introduced her father to skydiving, and they have a common interest in scuba diving. Travelling to destinations known for diving and high-energy activities has been something this pair has shared throughout the years. Tiffany loves to introduce Dave to new and exciting adventures, and he has no problem following in his daughter’s footsteps.
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There is always fun to be had around these two, but the conversation inevitably always goes back to hose and rubber composite, fitting suppliers, and the best way to swage a hose. It has been asked by family members to leave the office conversation away from the dinner table, but to no avail. “Once a hoser always a hoser,” laughs Dave as he winks at his daughter.
MARIA MARTINIELLO, DIRECTOR OF SALES AND MARKETING Armco Resource Management Company
Tiffany loves to introduce Dave to new and exciting adventures, and he has no problem following in his daughter’s footsteps.
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November 2013 | OilfieldPULSE |
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MedStat Off Road Ambulance A new ambulance keeps remote workers safe
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Off Road Rescue The MedStat off-road ambulance features a fully enclosed, all aluminum patient compartment that secures a full size cot and seating for up to two attendants and a driver. The MedStat unit has three base models (MS 100, MS 250, and MS 500) ranging from a basic entry-level product up to a fully loaded high-end version. All these models come with an extensive list of options giving the customer the flexibility to build the MedStat unit that best fits their needs. The MedStat is a great vehicle for industrial complexes a traditional ambulance cannot negotiate. With a width of only 5’ and a height of 7’10”, the vehicle can squeeze into nearly any tight spot. All of the resources of a full sized type II ambulance are still available, but the MedStat also includes a full sized cot, ALS cabinets, heat/air conditioning, electric for monitors, IV holders, and space for two attendants in the patient compartment. With your MedStat 250 set up with all-trail tires, movement around industrial facilities comes with ease, and the 6×6 all-wheel drive with independent suspension will allow you to go places you never thought you could go. The MedStat is the safest UTV based off-road ambulance on the market and has been extensively tested by an independent testing facility (Transportation Research Center). In fully loaded conditions, the MedStat tile table tested to a slope of 24°, and climbed to a maximum slope of 31°, and passed all braking tests with no problems. Christopher Bruce, LLB, MBA President Triple Fox Energy Services Ltd.
November 2013 | OilfieldPULSE |
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Jump On Board The PULSE Interactive Experience! Oilfiel d PUlSe m ag a z haS cre i n e e xc at e d a lUSivel UniqUe y fOr y eB O O k OUr mO Bile de v i c e S!
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In each issue, you’ll find the same colourful content you’ve come to expect with Oilfield PULSE. We take that one step further in the eBook version and put the content into overdrive with exclusive links, videos and features.
We at D&D Machine Works Ltd. would like to thank our customers for their continued support and trust in us to produce and provide quality components and service for their companies. We are looking forward to many successful years to come.
Member at large
Now in our 40th year of operation, D&D Machine Works continues to partner with our customer’s research and development teams to design and prove new or existing products using the latest in solid modeling and CAD/CAM technology. The ability to perform these services resides in the talents and highly developed skills of our employees: our most important asset. Our commitment to exceptional customer service, quality products, and on time delivery is shown in many long-term relationships with our customers. D & D Machine Works is “Your Machining Solution Center” with expertise in CNC machining, manual machining, manufacturing hydraulic cylinders, welding, and fabrication. We are a certified CWB (47.1) welding shop offering full access to quality added services such as laser and water jet cutting, heat treating, and surface finishing such as anodizing, nickel plating, powder coating, liquid nitriding, and hard chrome plating. D&D Machine Works services the oil and gas industry along with a wide range of other industries including but not exclusive to; telecommunications, agriculture, food processing, earth moving, transportation, and primary manufacturing. We currently operate from 60,000 square feet of floor space located on 6 plus acres of land in southern Alberta. Our modern facilities have excellent access from all parts of Canada and the United States for facilitating the shipping process.
HUB Search: https://hub.oilfieldhub.com/p/DDMachine
DDMachine
To easily locate our members in OilfieldHUB.com, enter their HUB Search Name in the Oilfield HUB Search Engine
#850, 635-8th Avenue SW Calgary, Alberta T2P 3M3 Phone: 403.930.6810 Fax: 403.930.6811
www.loganinternationalinc.com
November 2013 | OilfieldPULSE |
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NCS Oilfield Services Places Record 60 Stages in Single Torquay Formation Well
Successful completion demonstrates effectiveness of Multistage Unlimited Half-Straddle technology.
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NCS Oilfield Services, an independent technology and services company specializing in multistage completions, announced the successful placement of 60 stages in a single well completion, once again demonstrating the reliability of its Multistage Unlimited TM system. The July project marks a new record for the company by completing its largest number of stages for a single wellbore in Canada.
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Our goal is to help operators accelerate time to production as efficiently and effectively as possible,” said Eric Schmelzl, NCS Vice President of Strategic Business. “A successful multistage completion like this 60-stage operation is a win-win for our clients, their investors, and the
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industry as a whole.
The multistage completion was accomplished on a 4.5” cemented lateral, targeting the Torquay formation. Using the NCS Half-Straddle option that pumps frac volumes down the coiled tubing, the job placed 639.5 tonnes of proppant in 120 hours. The completion operation reached a total measured depth (TMD) of 5725m (18,782 ft) and a true vertical depth (TVD) of 2401m (7,877 ft), utilizing 59 NCS frac sleeves and one abrasive cut. Sixteen sandoffs were successfully circulated clean without incident, or significant lost time.
About NCS Oilfield Services NCS Oilfield Services currently offers its Multistage Unlimited systems in Canada, the United States, Australia, Russia, Argentina and China. The company has a record of more than 3,000 multistage completions, successfully placing over 470,000 tonnes of proppant. The company’s proprietary Multistage Unlimited technology eliminates perforating, plugs, balls and baffles, and incorporates coiled tubing to deliver advantages not available from ordinary methods. Eric G. Schmelzl, P.Eng VP Strategic Business NCS ENERGY SERVICES
“The Multistage Unlimited Half-Straddle option offers operators a highly efficient technique that reduces the overall job time as well as fluid requirements. The method also often eliminates the need for a highpressure frac tree, because the coiled tubing contains the treatment friction pressures, isolating that component of the treating pressure from the wellhead equipment,” added Schmelzl.
November 2013 | OilfieldPULSE |
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Western Canadian Wine Consultants
W
The Best Consultants You’ll Ever Meet! estern Canadian Wine Consultants (WCWC) is a unique creation that is becoming a hot commodity for a fresh approach to hosting corporate wine tasting events this fall.
Stephen Hart, creator of WCWC, started with some help from a friend, Curtis Litun, to create a superb educational wine and spirit company that mixes the passion for wine and creativity, with a top notch experience. With Hart looking after operations and Litun taking care of sales and marketing, the company is booming in its infancy of four months. “It is catered 100 % to what the guests want in an event,” Hart said. WCWC originally started from the idea of an education program for restaurants, and snowballed into hosting corporate events for up to 500 people.
Hart, currently a Corporate Sommelier at Ric’s Grill, has a certificate from the International Sommelier Guild, as well as a certificate to teach through the Society of Wine Educators. Litun has a background in hospitality and marketing, and is also a certified Sommelier. In September, WCWC put together a Scotch tasting event for a BMW investors group, which has now come to be a monthly event. WCWC has also started up other monthly events, such as hosting events for members of Hockey Night in Canada wives. WCWC is planning events for companies such as Telus, WestJet and Shell in November, as well as partnering with the Okanagan Wine Festival. WCWC is also looking to partner with DIRTT, a company that creates environmentally friendly interiors. “The level of creativity incorporated in our events is incomparable with some of the other events held in Calgary.” Hart explained, “It’s because of the staff that I found, who have passion for what they do.”
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WCWC focuses on corporate events, wine marketing and app development, all of which help bring people one step closer to understand the complex world of wine. With the company’s creator coming from some of the most prestigious resorts in Canada such as Relais & Châteaux, it’s bound to have some of the highest standards in the industry. “The reason I’m doing this is that I’m passionate about wines, events, and education. I believe sharing knowledge and being hospitable is a reflection of me.” Devon Patterson western canadian wine consultants
Pairing wine with people It is often thought that wine has to be paired with food, but as a Corporate Sommelier and creator of Western Canadian Wine Consulting (WCWC) I also pair wines with people. It takes a lot of experience dealing with different people and wine to actually pull this off. Factors that are taken into account are how the guests present themselves, attire, profession, age, and gender. A lot of what I do is based on just having plain old fashion good judgment, education and experience of working with guests. It’s almost a sense you develop to read the guest, and to me it is becoming rather fascinating to see how well some sommeliers can please a guest so much, with only a few questions. It’s an interesting aspect of selling and psychology. But, like anything you do for a while, you start to notice trends: baby boomers these days are looking for more of a novelist experience and tend to drink a little more interesting wines like Barolo or Chianti. Something that has a good story behind it and isn’t necessarily drank everyday. The younger ladies these days are into Prosecco or sweeter sparkling wines, or fun bubbly patio wines. As a Sommelier secret, again, not always true but a good indication of people’s budget, are their wedding rings – at least with the ladies. This is one indicator that helps me decide where to start at asking prices. People can change their clothing day-to-day, but wedding rings are pretty consistent. At the end of the day, there are no laws regarding what people will drink or what they will spend, but with my job, it is fun to do research and understand who is drinking what in what areas of town, and then seeing how accurate I was, and how well I was able to read the guest. STEPHEN HART western canadian wine consultants
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The level of creativity incorporated in our events is incomparable with some of the other events held in Calgary.
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November 2013 | OilfieldPULSE |
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The calm before the STORM I have always been a strong opinionated person to say the least, so in reading this, you may be offended. However, you may realize the truth behind the person, and possibly understand my position, as President/ CEO of Stormhold Energy Ltd. Leadership starts with full comprehension of what that specific term means as CEO and how you can employ it to protect the company and yourself. Back in 2009, when Stormhold Energy Ltd. was founded, our small startup company emerged instantly as a major land holding entity in east central Alberta. At that time, our brilliant Premier Mr. Ed Stelmach, who held this title in Alberta from 2006 to 2011, raised the royalties that oil and gas producers would owe the government from producing wells. This strategy was an effort to capture more of the revenue that was being lost through the tax optimized energy trusts. However, the energy producing establishment banded together to boycott the province’s land sales in 2009 in an attempt to force a revision in the policy by depriving the government of any revenue from land sales. Our story, which will certainly become part of Canadian history based on our land position, was outside of our partners in Calgary due to the fact we were not the “gum” under the shoe of the so-called Calgary Oil Industry Leaders. We took the opportunity and ran with it, angering a lot of our colleagues and business associates along the way. Needless to say, I didn’t give a crap due to my competitive nature and willingness to succeed. At the time, Stormhold Energy Ltd. acquired 295 sections of mineral rights over 188,800 acres of prime resource opportunity. As of today, having released some 65 sections, Stormhold Energy Ltd. still holds over 230 sections and over 150,000 acres with 19 plus zones in the same area of Halkirk and Stettler, Alberta. I have been asked many questions, and with hesitation, I have answered honestly and to the best of my ability. But frankly, I didn’t care to answer or share our story until today, with outsiders.
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In all honesty, I enjoy looking into the eyes of competitors who have over paid and have followed the so-called ‘Industry Leaders’ with deep pockets of Shareholder Capital, who do not care whether they followed the Corporate Governance or Company policies. Having said that, I have been asked and gracefully answered: Who raised $13.5 million? How could more oil exist right under the noses of the established major producers in an area that has had over 4,500 wells drilled and produced 900 million barrels of oil? How was this land position acquired without debt, banking relationships, and any external financial help? How could the price of our land position increase from $1.3 million in 2009 to today’s going rate of $300 plus million in 2013? How is it that a tiny company, with no banking relationships to speak of, could be in a position to become a medium sized oil and gas producer in such a short period of time? Pondering whether to answer or not, I hesitate trying my best to make the person asking the question as nervous and uncomfortable as possible. This strategic approach as I call it, is to get the edge on our opponent and gain additional joint venture interest from the geologists, geophysicists, and CEOs who know everything there is to know in the area. At the same time, they look star struck while reviewing our technical data we have worked so hard to compile. I believe companies should surround themselves with hardworking industry influences, dedicated professionals, and technical experts, which we have within our contract consulting personnel. Stormhold Energy Ltd. seized the opportunity to acquire a substantial land position in east central Alberta, even though we made a lot of people mad
during the process of obtaining a great land package. We are amidst companies producing upwards of 100,000 BOED, such as Crescent Point, Apache, Harvest Energy, EnCana, Devon, PennWest and Husky to name a few.
daily, or even yearly during Annual General Meetings (AGM), don’t realize the capital involved to battle constantly, nor the capital involved moving the company forward while fighting their stupidity.
Keep in mind, two of the above companies made us an offer we had to refuse due to the fact they requested all of our acreage and data at a price far below industry standard. That kind of deal was not in our best interest.
At times, my response is simply: NO. The $20,000.00 you invested in 2010 is not still in our account and did not drill our first well. These experts seem to think our technical team and management seek only minimal compensation working 16 hour days and countless weekends to feed our families. They do not realize the dedicated man hours involved and the countless struggles it takes to increase the company’s position, while being rewarded with criticism.
In 2010, we implemented a strategic drilling program targeting deeper formations based on years of technical data acquired and industry expert opinions. We think of ourselves as a ‘deep play’ with low hanging fruit – low cost shallow Viking and Mannville targets as well. It is safe to say we have more technical data in the area than most, if not all, privately held companies of mutual interest.
That being said, we move forward and welcome more positive comments that assist our vision and mandate. Our team and legal counsel are second to none, and are truly dedicated professionals who always work in the best interest of all.
Looking back, what was exciting for Stormhold Energy Ltd. at the time, turned into a challenge as our past partners did not meet the drilling obligations they committed to. As President and CEO, I had the harsh job to not only end the tarnished relationships with the joint venture partners, but I also had to inform our shareholders.
Today, Stormhold Energy Ltd. is a simpler and more agile company. Compared to previous years, our position has strategically increased due to our ongoing technical data and resource development our team continuously calculates on a weekly and monthly basis.
In one of the most challenging economic environments in decades, we acted swiftly and decisively to adjust our cost structure and working capital to market conditions, while continuing to invest in our future.
We have tackled many hurdles without sacrificing our longerterm strategic ambitions. We continued to invest in technical support and innovation that reassess our resources within our area of mutual interest. We continue to work with industry leaders and technical specialists who complement our position.
We did this to make sure we emerge as a stronger, wellpositioned company to capitalize on future economic growth, while at the same time raising additional capital to expedite our drilling program. The effects of our actions became increasingly visible as we dissolved our joint venture partnerships, which consolidated our land position.
As a sign of confidence in our future, we have evaluated our large land position and continued to grow our resources. Our goal, which we have never strayed from, is to provide a sustainable company that brings the best value to our shareholders, while respecting our industry partners.
Despite our efforts of advancing our business plan to produce from multiple zones potential and sell our assets, we ran into what I call a “minority challenged shareholder dispute.” Let me say this: everyone is an expert in business, but yet most don’t have an entrepreneurial bone in their body, or they would have done what we did themselves years ago. What frustrates me the most, is the lack of respect the work and dedication of taking our small company from $375.00 to the potential of $300 million has earned. Not to mention the $110 million offer to purchase the company outright, just months ago. I tell most, if not all, our critics to feel free going to the local Alberta Registries and give it a go on your own; I would be happy to invest in your opportunity and criticize every move you make. These criticisms take away from our day to day activities and become a distraction at most. These experts who criticize
Our board and shareholders have set our mandate to develop and increase our asset base that will bring the upmost value to our team. Overcoming challenges in the oil and gas industry in Calgary, Alberta comes with rewards and frustration, yet determination prevails. I enjoy the stresses of Calgary business, and I will always fight for what I believe in. Protecting our team from outside distractions weighs heavily on a person, yet a positive outcome is very rewarding. Our industry is damaged and corrupted to say the least, and I have experienced it firsthand. Please follow my column next month as I will touch on the Calgary elite oil and gas leaders, and how they influence market conditions and company stock transactions. CHADD RADKE, PRESIDENT/CEO STORMHOLD ENERGY LTD.
November 2013 | OilfieldPULSE |
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Recipe For A Healthy Life Essential Ingredients Cooking Inc. Jessica Willott, Red Seal Chef, RHN
Jessica Willott is a personal chef and nutritionist who was born and raised on Vancouver Island, B.C. She spent her childhood years playing in her mom’s garden and developed her love for food and seasonal eating as she grew up. Her summers were spent on the West Coast of B.C. cooking on her dad’s salmon fishing boat. This gave her an early respect and appreciation for the abundance of fresh, quality seafood, meat, and produce that the region has to offer. After graduating high school, Jessica attended the Culinary Arts Program at Vancouver Island University, where she went on to achieve her Red Seal Certification in Culinary Arts. She has spent a majority of her career working at some of Vancouver Island’s top restaurants, such as Sooke Harbor House, Café Brio, and most recently, as Executive Chef for the Dolphins Resort and Great Northern Ski Lodge. Jessica has also spent extensive time in Italy and Spain. She was inspired by their simple, flavourful, fresh cuisine as well as the relaxed European way of life. Jessica spent two years in Vancouver attending the Canadian School of Natural Nutrition to become an RHN (Registered Holistic Nutritionist). Working alongside an established nutritionist, she gained an understanding of the importance of a clean, wholesome, balanced diet
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and the incredible effects it can have on health. Through this training, a whole new world of food, recipes, cooking, and preparation techniques have emerged. Now, Jessica calls Calgary home and has recently created Essential Ingredients Cooking, a Personal Chef and Nutrition Consulting company. She specializes in whole foods cooking, a process of maintaining the natural integrity of the product, while always keeping health in mind. She’s thrilled to now be teaching cooking classes at ATCO Blueflame Kitchen, as well as working as a culinary educator with the Calgary Weight Management Centre. Jessica has aligned herself with some of the top restaurant and health professionals in the city in order to deliver the best possible product to her clients. She looks forward to sharing her passion for food and life with all the great people here!
Why We Need Omega 3’s I am sure we have all heard that Omega 3’s, EPA, DHA and essential fatty acids are important to include in our diets. But if you’re anything like me, unless you understand it and can apply it to your life, it’s just another health fad that will soon be pushed aside. Being a fisherman’s daughter, raised on Vancouver Island I had an endless supply of fresh, delicious seafood within my reach at all times. I have to say, pulling out the salmon sandwich at the lunch table in elementary school didn’t make me the most popular, but it did keep my pelt nice and shiny! When I transitioned from chef to chef / nutritionist, I started asking questions about the science behind food, I started to understand what I should be including in my diet and why. Your unique needs and body makeup determines what types of foods you should be eating, and how often. So now about our delicious fatty friend, Omega 3, aka essential fatty acids (EFAs). The reason these are known as EFAs is because our bodies can’t produce them, we must get them through our diets. EFAs can play a role in reducing inflammation, increasing brain function, healthy skin, hair and nails as well as regulating blood clotting and building cell membranes.
Pan Seared Wild Salmon
1 - 30 oz (approx.) side wild salmon, skin on 1 Tbsp. grape seed oil ½ tsp. fine sea salt ½ tsp. black pepper Remove scales from salmon using a scaler or French knife. Rinse skin over cold water to get rid of excess scales. Pat dry and remove any pin bones if needed. Cut your salmon into 5-6 oz portions making sure your salmon is very dry. Heat a heavy bottomed pan over high heat. Season your salmon on both sides. Add grape seed oil to pan. Sear salmon skin side down first, cook until skin is crispy and browned. Flip salmon over and turn off pan. The residual heat of the pan will cook the salmon through – you want a bit of pink in the middle so your salmon stays very moist.
The most absorbable, and I feel the tastiest way to get my EFAs, is through food. The richest sources of EFA’S are wild salmon, sardines, tuna, mussels, and trout. Vegetarian sources being flax seeds, walnuts, and pumpkin seeds. If you aren’t able to include these in your diet on a daily basis, you may want to consider supplementation. Keep in mind when you supplement, be sure to check with your doctor first to ensure no contraindications with your current medication or health conditions. Here is a recipe for one of my favourite Omega 3 rich meals. This meal was inspired by Scott Beaton of Catch Restaurant; however, I lightened things up a bit using a light pesto, instead of the hollandaise originally served with this dish. The skin on salmon is providing our EFAs and protein, the lentils are providing fiber, and B vitamins, and the twist on the classic pesto sauce contains antioxidant rich mint, basil, and parsley. JESSICA WILLOTT, RHN ESSENTIAL INGREDIENTS INC.
Braised French Lentils
Three Herb Pesto
Drain and rinse your lentils after soaking. Place lentils, thyme, onion, and salt in a medium-sized pot and cover completely with cold water. Bring water to a boil, and then reduce to a simmer. When lentils are tender (about 20 mins) drain into a colander and set aside.
Combine all ingredients in a food processor except for oil and puree. Slowly drizzle in olive oil. Season to taste.
1 cup French lentils, soaked in 4 cups water overnight 1 bunch thyme, tied 1 onion, quartered 2 tsp. sea salt 2 tsp. grape seed oil 1 carrot, diced small 1 stalk celery, diced small ½ cup shallots, diced small 2-3 cups chicken stock 1 lemon, juiced
1 cup fresh mint leaves 1 cup fresh basil leaves 1 cup fresh Italian parsley ¼ cup pistachios, toasted 2 cloves garlic 2 Tbsp. fresh lemon juice 1 tsp. honey ¼ cup extra virgin olive oil ½ tsp. sea salt ¼ tsp. black pepper
Sauté carrots, celery, and shallots in grape seed oil over medium heat for about 5 minutes. Add lentils and a cup of chicken stock. Allow stock to reduce, stirring often. Continue to add stock as needed until lentils are tender and flavorful. Add lemon juice and check seasonings – add salt and pepper as needed.
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A GOLFER’S SCENIC PARADISE
Golf Canada’s West Vacations The spectacular topography in Western Canada means golfers can enjoy a vast array of stunning golf courses to choose from when planning a golf vacation. From the Canadian Rockies to Whistler and Victoria, BC, golfers can enjoy their rounds on mountain courses, next to flowing rivers, overlooking majestic lakes, and along coastal waters. With a golf season that runs throughout the calendar year, Victoria, on Vancouver Island, offers great golf as well as being a vibrant harbour city with enough non-golf related activities to fill the day and night hours. Moving into the southern interior of British Columbia, the Okanagan region’s semi-arid climate ushers golfers onto their awaiting greens by April and stretching their season into October. The Canadian Rockies, blessed with soaring mountain peaks and glacier waters, has
http://www.golfcanadaswest.com/gc_eagle_ranch
Eagle Ranch – Invermere, British Columbia
http://www.golfcanadaswest.com/wildstone-golf-course
Wildstone – Cranbrook, British Columbia
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a season running from May to the first couple of weekends in October, usually winding up on the Thanksgiving weekend. The focus is always golf, when and where to play, but no golfer makes arrangements for their buddy trip or weekend getaway without taking care of where they are going to rest their heads. From full service deluxe hotels to suite style condo properties, Western Canada has an option sure to suit your needs. Give Golf Canada’s West a call at 1-877-323-3633 or visit them online at www.golfcanadaswest.com to book your next Western Canadian golf vacation. CHRIS SMITH GOLF CANADA'S WEST VACATIONS
Fairmont Chateau Whistler – Whistler, British Columbia http://www.golfcanadaswest.com/gc_chateau_whistler
Nicklaus North – Whistler, British Columbia http://www.golfcanadaswest.com/gc_nicklaus
Predator Ridge – Vernon, British Columbia http://www.golfcanadaswest.com/gc_predator
Bear Mountain Course – Victoria, British Columbia
http://www.golfcanadaswest.com/gc_bear_mtn
VISION – WE PROTECT PEOPLE. Caliber supports the programs of our clients and the ongoing management of their assets while ensuring public and employee safety.
Member at large
PLANNING – WE HELP OUR CLIENTS PROTECT LIVES, THE ENVIRONMENT AND PROPERTY BY CREATING EFFECTIVE, ACCURATE, USER FRIENDLY MANAGEMENT PROGRAMS USING THE BEST PEOPLE, IDEAS AND TECHNOLOGIES AVAILABLE. Since 1996, Caliber’s trained professionals have provided Emergency Management Solutions to our clients throughout Canada and the United States. Our plans are developed to address the unique characteristics of each client’s operations, and then they are tested with Field or Tabletop Exercises. Incident Command Training, Custom Mapping, Resident Consultations, Ground Truthing and Emergency Callout Systems are just part of the suite of services available. PROTECTION – WE PROVIDE CUSTOMIZED SERVICES THAT KEEP PEOPLE SAFE, ASSETS PROTECTED, AND WORKPLACES DRUG AND ALCOHOL FREE. Our uniformed security personnel are experienced in the oil and gas industry and provide full security and medical services on location - no matter how remote. We have the necessary training and certifications, plus the people skills, to be part of our client’s teams. We can also provide Drug and Alcohol Detection Canine Teams, Fire Protection and Rescue Services. COMMUNITY – CALIBER IS DEDICATED TO MAKING A REAL DIFFERENCE IN PEOPLE’S LIVES AND IN OUR COMMUNITY.
Giving back to the community is a big part of what makes Caliber special. We volunteer our time to help out local groups. We give blood. We care. HUB Search:
https://hub.oilfieldhub.com/p/Caliber
Caliber
To easily locate our members in OilfieldHUB.com, enter their HUB Search Name in the Oilfield HUB Search Engine
CUSTOM SOFTWARE APPLICATIONS FOR THE OIL AND GAS INDUSTRY From Concept to Next Generation “CKR Global has been working with Data Shapers since late 2007. Our clients require a high level of confidence in the stability and security of our applications. Data Shapers has been able to accommodate our requirements and our clients, professionally and effectively throughout the years.”
Phone: 403-537-6560
Toll Free: 1-866-883-8848
www.DataShapers.com November 2013 | OilfieldPULSE |
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Optimize Your Business Marketing Strategy With 5 Modern Steps Marketing has changed significantly over the past 20 years, specifically in advertising.
The variety of media is huge. The typical consumer ‌ well there really is no typical consumer anymore. If you think you could get access to your target market using solely the media (radio, TV, and newspaper), you are mistaken. The internet has taken over market share from all those.
In the past, if a business wanted to advertise, it would contact various suppliers of advertising media, such as the local newspaper, radio station or TV network. The business would then talk to an advertising sales person, who would walk them through the process of getting their ad out to customers.
I think the biggest difference in marketing now, mainly advertising, is the power and control has shifted to the business owner.
Then, good advertising sales people would discuss things like matching the right target market to the business based on time of day, or positioning the advertisement correctly in a newspaper. Even poor advertising sales people would at least try to sell you the largest package (aka more exposure) in their media kit. Either way, these advertising sales people would control the amount of marketing access, which actually was a good thing for the typical business owner. As well, using any of the three mediums mentioned earlier, an average business would get access to the typical consumer, as most people read the paper, watched some TV, and listened to the local radio station.
Now, things are very different.
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You may think this is a good thing; unfortunately, your typical business owner is not a marketing expert. They do not understand targeting and the repetitive nature of advertising. As well, many marketing myths are not prevalent. Chief among them is the belief, all you need to do is create a pretty website and people will find your business and become your customer. Another myth is social media is simply a matter of creating a Facebook page and making a couple posts a week on it. Neither of these marketing strategies will yield any results for the typical business. The internet has taken over as the primary advertising media, and you need to use it effectively.
Here are 5 tips to help you market your business effectively : 1 Invest in marketing. Think ROI (Return on Investment). Run the numbers.
Determine a realistic new sales target you want to gain by your marketing strategies, and then determine a budget that works within those targets. Track monthly.
2 Realize the internet, primarily your website, is not a stand-alone marketing strategy, and it has to have on-going marketing activity. That may mean updating content, adding blog
posts or videos, or it may be ongoing SEO (Search Engine Optimization) efforts. It may also mean using traditional media to drive traffic to your website or effectively using social media to attract new visitors to your website.
3 R ealize you need expert advice. Find someone who can understand your business, your
4 Education and training are the key to
on-going success. Marketing is about activity, and you need someone
to actively market your business. You and your staff need to be knowledgeable about how the latest marketing strategies work. Your marketing expert should help with the knowledge transfer.
5 At the end of the day, good marketing can only bring the customer to you.
You still need to do two key things: provide high
quality product or service and build a relationship. Therefore, work with your marketing expert to build a customer relationship plan. Jack Zenert, VP Sales and Marketing Beacon News
objectives, and is willing to work with you to develop lasting on-going strategies. Look at the long term ROI of hiring this type of expertise.
Where customers and suppliers become partners
in success
November 2013 | OilfieldPULSE |
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Rocky Mountain Food and Wine Festival
Fun and games at the Rocky Mountain Food and Wine Festival held in October.
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e t a l a P r u o Y y f Satis Chris Grabill in The Beat! experien Stay tuned for the culinary
ces of
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PLAINS’ Perspective
Skilled Labour Shortages A thing of the past in Canada 32
| OilfieldPULSE | November 2013
In my opinion, Canada has done a little bit of damage to itself in the past few months. The problem stems from the government and the media taking the message and overcooking it. The message from Canadian industry was, that we (especially in Alberta) have a skilled labour shortage. Is that message incorrect? The short answer is: not entirely. We do have a shortage in some areas, but that shortage isn’t going to threaten our country or the province. The labour shortage is a variable of business in general. In Canada (as in every country), we have several business issues / variables. They can be complicated – such as having an ever-increasing list of government regulations inconsistent from province to province. They can be uncontrollable – for instance, moving freight through a blizzard. Or they can be simple – something along the lines of deciding whether to attend a conference or a customer meeting. Variables in business are ever changing, but across businesses there may be consistencies that we share. The Canadian industry finally got together on one of these issues: labour. It seems all the stars aligned and everyone realized this was a consistent variable that could become an increasing problem, one that could eventually venture into the “uncontrollable” realm of variables, and so we started talking about it. I think industry has finally managed to do a good job of relating information to the government and the media. The government and the media started listening, and somehow the labour problem translated into the industry, government, and media turning on the air raid siren that has blasted throughout the country over the past year. We have oversaturated the world with what amounts to this single variable we have to deal with. Even I have added my voice to the chorus, but now we need to collectively take a step back.
November 2013 | OilfieldPULSE |
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All variables may change, but they will never go away. However, there will always be issues to deal with and problems to solve. To those who helped get the message out, I want to thank and congratulate you. It was a job well done. Now, we have to focus on the nation. Every country and every industry has a varying range of difficulties to deal with, and because we have announced one single common issue to the world, we are being inundated internationally with offers of help. As a result, the oil industry stands to lose Canadian business by the bucket-full. The point I would like to make is: Canadian companies are open for business. We have massive amounts of open capacity. Don’t allow yourself to be fooled into thinking we cannot handle the work. We are a nation so good at collaboration, we have pulled together to keep a single variable from getting out of control. This is something to celebrate.
Going forward, we are light years ahead of the other countries not capable of handling internal issues with the same level of strength, determination, and openness as us. To any country that may feel our industries are weak and our businesses understaffed, I have just one message: you couldn’t be more wrong. Our unified voice should make it abundantly clear how effective our nation is at handling issues. We are open to any competition and requirements our customers have. The strength of our collective voice is proof of that. Tom McCaffery, General Manager Plains Fabrication
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| OilfieldPULSE | November 2013
What’s all the HUBbub about? Changing the way you buy in the oil and gas industry! Better manage and reduce expenses surrounding the sourcing and life cycle management of your services, supplies and rentals.
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