Pipeline News July 2008

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

July 2008

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Volume 1 Issue 2

INSIDE Focus Edition

Drilling Industr y sensitive to envirronm menta al con nce ern ns Page e A3

Summer Golf Tournaments

LET IT FLOW: Well tester Justin Thompson opens a well to Áow north of Kindersley in the Viking formation. This well was recently drilled by Precision for Reece Energy.

Thompson works with Dark J Well Testing, based out of Kindersley.

Photo by Brian Zinchuk

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PIPELINE NEWS July 2008

TransCanada pipeline underway Project involves two complimentary pipes „ By Stephan Burnett Pipeline News Swift Current -When you’re talking pipelines running through Saskatchewan, one of the biggest projects on the go is TransCanada’s $5.2 billion Keystone Pipeline Project.

The pipeline is being converted from a natural gas carrier to an oil pipeline.

TransCanada reports the Canadian portion of the project involves the conversion of approximately 864 kilometres (537 miles) of existing Canadian mainline pipeline facilities from natural gas to crude

oil transmission service and construction of approximately 373 kilometres (232 miles) of pipeline, pump stations and terminal facilities at Hardisty, Alberta.

The U.S. portion of the project includes construction of approximately 2,219 kilometres (1,379 miles) of pipeline and pump stations.

Construction on the existing pipelines started in June.

Shela Shapiro, TransCanada spokesperson, said construction will continue into 2009 in South Dakota, Nebraska, Kansas and Illinois.

Keystone will have initial capacity of 435,000 barrels per day in late 2009, which will be expanded

Weyburn-Estevan leads record June land sale total „ By Geo Lee Pipeline News SE Saskatchewan The June 2008 sale of Crown oil and natural gas rights has produced the third largest single sale in Saskatchewan history, and added to the new record for annual sales set this year.

The June sale raised $142.5 million in revenue for the province.

The year-to-date revenue ďŹ gure for 2008 now stands at $605.4 million, shattering the previous single-year record of $250.3 million set in 2007. It is also the third consecutive sale in excess of $100 million, something that has never happened before in Saskatchewan.

In April, the province set a single-sale record of $256 million in land sale revenues.

The Weyburn-

Estevan area was once again the story of the June sale, taking in nearly $132.5 million of the proceeds.

The KindersleyKerrobert area was next at $7.1 million, followed by the Lloydminster area at $2 million and the Swift Current area at over $900,000.

The June sale also set two additional records.

The ďŹ rst was the highest price paid for a single parcel at just under $39 million. Standard Land Company Inc. purchased this 9,094-hectare exploration licence located south of Lake Alma, near the Canada-United States border.

The second record was the price paid on a per-hectare basis at over $42,550. Windfall Resources Ltd. purchased this 150-hectare parcel,

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located six kilometres north of Stoughton, for more than $6.3 million.

Energy and Resources Minister Bill Boyd said the three sales held to date in 2008 have been the three largest single sales in Saskatchewan's history. “The latest sale is exceeded only by the previous two held earlier this year. Land sales are obviously inuenced by oil and gas prices, but they also provide an excellent barometer of industry conďŹ dence and future activity levels. “Over time, this translates into jobs and other economic activity in Saskatchewan; the province that is already leading the country in economic growth.

It speaks to a positive business climate and the excellent resource

potential that exists in Saskatchewan."

The June sale included 10 exploration licences that sold for $77.2 million and 240 lease parcels that brought in $65.3 million.

Boyd noted three sales remain to be held in 2008, so that the annual record for dollar value of land sales remains a work-in-progress in Saskatchewan. “The bar has been raised to an unheard level this year. It’s a good sign for our province; a sign that investors from across Canada and around the world continue to see this as a good place to be.�

The next sale of Crown petroleum and natural gas dispositions will be August 11, 2008.

Oil sands exploratory permits will be oered at the August sale.

to 590,000 barrels per day in late 2010. Keystone has contracts with shippers totaling 495,000 barrels per day with an average term of 18 years.

The pipeline will be 30 inches in diameter (76 centimetres) to Illinois and 36 inches (91 centimetres) from the Nebraska/Kansas border to Cushing, Oklahoma, and travel a length total of 3456 km or 2148 miles, said Shapiro.

TransCanada reports the pipeline will transport crude oil from Hardisty, Alberta to U.S. Midwest markets at Wood River and Patoka, Illinois and to Cushing, Oklahoma. “The purpose is to transport crude from the Alberta to the U.S. Midwest market and it is basically fulďŹ lling the needs of shippers,â€? said Shapiro.

Depending on land use the pipeline will be buried at a minimum depth of four feet.

Keystone XL TransCanada also reports it is in the planning stages with the proposed Keystone XL Pipeline Project. The project is complementary to the Keystone Pipeline and will serve existing reďŹ neries and markets on the U.S. Gulf Coast in Texas.

TransCanada states the proposed project is an approximate 1,980-mile (3,200-kilometre), 36-inch crude oil pipeline that will begin at Hardisty, Alberta and extend southeast through Saskatchewan, Montana, South Dakota and Nebraska. It would incorporate a portion of the Keystone Pipeline to be constructed through Kansas to Cushing, Oklahoma, before continuing through Oklahoma to a delivery point near existing terminals in Nederland, Texas to serve the Port Arthur, Texas marketplace.

Keystone will be operated as one integrated pipeline system, which will include the proposed Keystone XL pipeline project.

TransCanada has yet to put a dollar ďŹ gure on the investment involved in Keystone XL. Throughout 2008 public consultations and open houses will be held with stakeholders across the Canada and the U.S., industry support will be solicited and aboriginal communities will be engaged while ďŹ nally easement acquisition will begin.

In 2009, environmental applications will be ďŹ led and public hearing processes associated with regulatory applications will be held, along with ongoing public consultations.

2010 will mark the commencement of construction on Keystone XL after regulatory approval is received. Construction is pegged to be completed in 2011. “Keystone XL is a crude oil pipeline that is expected to handle anywhere between 700,000 – 900,000 barrels per day,� said Shapiro.

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PIPELINE NEWS July 2008

A3

Industry sensitive to environmental concerns

By Brian Zinchuk Pipeline News Marsden – It’s not very big – just a couple inches tall. You would never see it from the mammoth Toyota Tundra. Most of humanity would probably never even notice it even if they had their noses rubbed in it. And the cows who do rub their noses in it, grazing in this community pasture, probably have no clue about its significance.

It is a fern, a teeny, tiny, fern, known as Botrychium. It is an S1 (highest level) rare plant species, and it, with a few companions, sits less than a foot from the worn trail used to access several existing and planned for gas and oil wells in the Manitou Sand Hills, south of Marsden. An S1 rating means only a few sightings of the species in the whole province. It was noticed during a walk-through by biologists examining a route for hauling heavy oil.

It’s for plants like this, and critters like the burrowing owl, that companies like X-Terra of Lloydminster and Anzac, Alta., have become a critical part of the oil and gas industry.

X-Terra Environmental Consulting works with oil and gas companies to minimize their impact on the environment. It can be as simple as putting up cattle barriers, or could involve moving a drill site over a few hundred metres and requiring a directional drill. Sometimes, the answer is a frank “No,” as in the provincial Ministry of Environment would never allow it.

Curtis Riou, owner/manager of the Lloydminster location, speaks frequently of the conundrums they face as environmental consultants.

“You’re paid by the oil companies to tell them how to spend more money. That’s sometimes tough for them to swallow,” he says. “I am paid by an oil company to possibly report on them.”

“Any negative can be turned into a positive, by showing our honesty and reaction to the environment.”

For the guys who are working in the field, sometimes it can seem downright unfair. The active sand dune we walk through has numerous quads tracks running through it. Cows grazing in sensitive areas don’t much care what they eat. Riou talks of the common plight of oil and gas, where the surveyor is walking, carrying his gear, while a hunter on a quad will drive by.

“It’s hard to explain to the guy hiking through

“

Any negative can be turned into a positive, by showing our honesty and reaction to the environment - Curtis Riou

”

the snow with the equipment on his back,” acknowledges Chrissy Herman, a biologist with X-Terra.

“Oil and gas is definitely held to a higher standard in areas like this,” says Herman. That’s not just the government’s doing, but a conscious choice of the companies to hold themselves to that standard.

Riou strongly prefers to take the decision makers out on a tour of the site, pointing out exactly what needs to be protected.

“We often say, ‘In Calgary, every map is flat and dry.’ You have to come out and see what we’re dealing with.”

When the answer is a “no,” the most important fallback is straight-forward honesy, according to Riou. That includes reporting spills and mistakes.

Such things are a given, he says, and the Ministry

That little fern near the hand is going to cost some company a few thousand dollars to protect. It’s one of only a few seen in the province each year.

Photo by Brian Zinchuk

of Environment is not unreasonable. Hiding things doesn’t go very far.

“When we propose a project, we have a lot of mitigations,” Riou explains. One might be spreading biodegradable wood chips instead of gravel to make a road. Mulching in some ways has fallen out of favour, and they might propose hand cutting the brush instead, taking a lot more time and money. The big one in the Manitou Sand Hills is winter drilling.

It’s better to come in during the winter, when much of the wildlife is gone and the plants are dor-

mant. Wells can be proven, demonstrating a need for right of ways and workspace. Riou points to one wide cleared right-of-way that led to what would turn out to be a dry hole.

Their purpose is not to stop development, however. As Riou and Herman explain, it’s not about taking a Greenpeace – don’t break a branch – perspective, but rather finding the least amount of environmental impact. They aren’t looking for zero impact.

Herman notes they have a very good working relationship with the provincial regulators.

“You can’t work against an oil company, or you won’t work,” Riou adds.

“The environment is the concern of everyone these days,” he says.

Speaking of the importance of the Manitou Sand Hills, he notes native prairie is dwindling in Saskatchewan.

The Manitou area is 32 (51.5 km) miles east-towest, and 18 miles (29 km) north-to-south. The area is 105,500 acres, or 42,700 hectares. There are three different areas. The first is the prime conservation area, where the province wants to keep it pristine.

Development there simply is not on. The special management area allows oil and gas to be developed, but under strict guidelines. The third is multi-use areas with tame grass and hinterland.

The area has been left alone all these years primarily because it wasn’t really useful for agricultural production, according to Riou. That’s readily apparent by fact it’s only the root networks that are keeping the dunes from looking like the Sahara.

There are several wells, old and relatively new, that are not in current production. Pipelines have not been put in to service them. Several companies are looking at producing oil in the Manitou area, as opposed to just gas. Hauling heavy oil out of this area is going to be one of the biggest issues, because there’s very little to actually build a road out of. Pickups can get in and out, with the occasional use of four wheel drive, but large tankers?

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EDITORIAL

PIPELINE NEWS June 2008

Pipeline News Publisher: Brant Kersey - Estevan Ph: 1.306.634.1015 Fax: 1.306.634.0141

Mission Statement:

Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people.

Editorial Contributions: SOUTHEAST Geoff Lee - Estevan 1.306.634.1015 Lizz Bottrell - Carlyle 1.306.453.2525 SOUTHWEST Stephan Burnett - Swift Current 1.306.778.6952 NORTHWEST Brian Zinchuk - North Battleford 1.306.445.7261 MANITOBA Brent Fitzpatrick - Virden 1.204.748.3931

Associate Advertising Consultants: SOUTHEAST • Estevan 1.306.634.2654 Jan Boyle - Sales Manager Cindy Beaulieu Glenys Dorwart Kristen O’Handley Deanna Tarnes SOUTHWEST • Swift Current 1.306.773.8260 Doug Evjen Andrea Bonogofski NORTHWEST • Lloydminster Daniela Tobler 1.306.825.2038 MANITOBA • Virden - Gail Longmuir 1.204.748-3931 • Estevan - Jan Boyle 1.306.634.2654 To submit a stories or ideas: Pipelines News is always looking for stories or ideas for stories from our readers. To contribute please contact your local contributing reporter.

Subscribing to Pipeline News: Pipeline News is a free distribution newspaper, but in the coming months watch for our online version.

Advertising in Pipeline News: Advertising in Pipeline News is a newer model created to make it as easy as possible for any business or individual. Pipeline News has a group of experienced staff working throughout Saskatchewan and parts of Manitoba, so please contact the sales representative for your area to assist you with your advertising needs.

Special thanks to JuneWarren Publishing and Nickel’s Energy Group for their contributions and assistance with Pipeline News.

Pipeline News Estevan, SK Ph: 306.634.1015 Fax: 306.634.1041 Published monthly by Glacier Ventures International Corporation, Central Office, Estevan, Saskatchewan.

Advertising rates are available upon request and are subject to change without notice.

Conditions of editorial and advertising content: Pipeline News attempts to be accurate, however, no guarantee is given or implied. Pipeline News reserves the right to revise or reject any of all editorial and advertising content as the newspapers’ principles see fit. Pipeline News will not be responsible for more than one incorrect insertion of an advertisement, and is not responsible for errors in advertisements except for the space occupied by such errors.

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All of Pipeline News content is protected by Canadian Copyright laws. Reviews and similar mention of material in this newspaper is granted on the provision that Pipeline News receives credit. Otherwise, any reproduction without permission of the publisher is prohibited. Advertisers purchase space and circulation only. Rights to the advertisement produced

by Pipeline News, including artwork, typography, and photos, etc., remain property of this newspaper. Advertisements or parts thereof may be not reproduced or assigned without the consent of the publisher.

The Glacier group of companies collects personal from our customers in the normal course of business transactions. We use that information to provide you with our products and services you request. On occasion we may contact you for purposes of research, surveys and other such matters. To provide you with better service we may share your information with our sister companies and also outside, selected third parties who perform work for us as suppliers, agents, service providers and information gatherers.

Editorial

Road to prosperity With thanks to Alberta, Saskatchewan has a distinct advantage of how to do things right when it comes to planning the province’s growth and financial benefits from the resource boom.

It is, admittedly, a giddy place to be in, an enviable position from which to administer the windfall of wealth flowing into government coffers. But below the surface are some very large land mines to step around, the least of which is not tripping over Regina’s own bureaucrat feet in its rush to grab the river of money coming into the treasury.

First and foremost is infrastructure.

As our headline suggests (literally), paving the way to long-term prosperity begins with infrastructure. The ability to move our commerce in a safe and efficient manner; to supply our business and private needs with enough power; to provide housing for workers and anyone else who sees Saskatchewan was a good place to live – are basic requirements for growth.

And we are already behind the eight ball. Building roads, power plants and housing all takes time. It requires governments on all levels to communicate and agree on policy to get this fast-tracked.

The amount of taxes derived from oil flowing into government bank accounts amounts to billions of dollars. The petroleum industry is asking for adequate infrastructure to further grow our ability to provide product to

consumers. A side benefit for politicians is better roads and housing which just might translate into votes come election time.

We now have the opportunity to reverse being the laughing stock of Canada when it comes to bad highways. Saskatchewan’s system has never been geared for the amount of traffic we witness today. Improving roads assists the free flow of commerce and sets the stage for further development of not only resources, but it also makes our agricultural base more competitive in world markets. The safety issue cannot be overemphasized.

Trucks are bigger and travel faster than they ever have.

There’s also a lot more of them. Twinning the busiest arteries should begin immediately.

Growth has exacerbated the urgency of meeting the demand for power. SaskPower’s forecast has changed significantly since the early part of the decade. Meeting the demand in a timely fashion will be a challenge, given the tug-of-war between competing forms of fuel. But the province needs to get on with it before it’s too late.

Municipalities are scrambling to provide serviced land for housing. The critical demand for a trained workforce cannot be met if there’s inadequate housing. This long chain has many links to be secured – everything from housing to schools to health care – the list is endless.

Without new infrastructure for the future, we cannot come close to maximizing our potential.

PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR WELCOMED.

PIPELINE NEWS July 2008

A5

Opinion

Hard to squawk about high gas prices From the top of the pile Brian Zinchuk

Heading out on a bus junket “Lunch Learn and Golf ” with the Petroleum Society – Lloydminster section - in mid-May, it wasn’t hard to tell my vehicle from the rest in the parking lot.

It was the tiny little piece of >bleep< Chev Metro that would hardly account for a speed bump compared to a good number of the other rigs in the parking lot.

Indeed, in this parking lot, it effectively was a speed bump.

Loud at highway speeds, uncomfortable and unbearably hot in summer, nonetheless the reliable tin can has been my wheels for 10 years. It didn’t fit in during my pipelining days, and I doubt it will fit in now in my Pipeline News days.

Back when I got it in 1998, it was physically impossible to put $20 of gas into this little miser. Now, not so much. I think I actually cracked the $40 mark in recent weeks.

For me, this was something of a surprise, but to everyone else who works in the patch, that might get you to the corner store.

For them, stopping at the gas station goes something like this: “Fill ‘er up?”

“Nah. Stop at a hundred.”

It’s mighty disingenuous for pretty much anyone reading this newspaper to squawk too much about high fuel prices. If you work in the patch, paying at the pump means paying your own bills. It’s the high price of oil that’s paying our mortgages and financing the big, shiny toys. In southern Ontario they have a saying – buy the car your neighbours built. This is kind of the same thing.

That doesn’t mean on, an individual basis, we might not look at lowering individual operating costs. In my case, I’m more interested in keeping them low.

For example, I was looking at SUVs the other day – something that is tough enough to take onto a right of way without it snapping in half. The ability to be pulled out by a D8 dozer when, not if, it gets stuck is a bonus.

That means a body-on-chassis frame, not a car-like unibody. Four-by-four would probably be a good idea. In other words, I was looking for something that would eat my Metro for breakfast and burp impolitely afterwards.

Looking at fuel mileage ratings, however, had the gulp instead of the burp being the gastro-intestinal sound of choice. My Metro used to consistently get 50 miles to the imperial gallon, but now sees more like 45 (Its sticker said 66 mpg on the highway, but I have never, ever achieved that.) But even the smaller SUVs don’t get great gas mileage. Talking to the dealer, the more realistic mileage on some of these units was 24 mpg, or less. And these were the more efficient, four cylinder varieties.

For a one-tonne duallie driver, mileage in the mid20s would seem like heaven, but the idea of going from one of the most fuel efficient vehicles built in the last decade to something that get’s half the mileage, it’s time for a gut check.

Indeed, this past year I’ve actually had people tell me they were envious of my car. That’s been a surprise.

One even suggested, in jest, we trade – her minivan for my tin can.

At some point, I will have to get something more rugged, more powerful and more comfortable. Having room for the family might be handy, too. My wife tells me that when we eventually do get a new vehicle at some point, be it a minivan or SUV, something has to go.

That something, in her mind, is my cheap little Metro.

But I just can’t stomach the idea of getting rid of such an efficient runabout, even if my paycheque is paid by the high price of oil.

It’s kind of like getting rid of a relative. My uncle Metro was so pleased when I bought a car named after him. I told him the car is just like him - cheap.

Anyhow, I hear you can’t give away a used SUV these days, so maybe that’s the way to go. It looks like no matter what I do, there is only one way to go – to the gas station – to pay my paycheque.

Brian Zinchuk can be reached at brian.zinchuk@sasktel.net.

Oil drilling more fun than dental drilling Ever since I saw the movie, Marathon Man, drilling kind of scares me. That’s one reason I became a runner, just like Dustin Hoffman in the 1976 film. I still have my finishing kick should I bump into Dustin’s torture dentist and I’m asked that famous query, “Is it safe?” Go see the movie, cancel your next dental job and learn to run.

Does oil drilling scare me? Well, not like Hoffman’s Hollywood horror dentist did, but I was apprehensive during my first visit to an oil rig and walking onto the platform to snap some photos. Is it safe?

I did think about running to my car, but then I realized this is not about dentistry movie scenes although drilling in shale is about opening cavities under ground against their will to free up oil.

There’s a lot of mechanical action going on at a rig and my heart did accelerate a notch, but nowhere as high as it does for achy teeth drilling flicks.

I tried to imagine myself as one of the men in my own pictures, but there is no way I could perform any of their jobs. Not for me. Rig work is not in my genes. I need to cruise freely to Tim Hortons one or two times a day to think up these creative columns.

Rig hands work hard for their dough and while it was relatively warm the morning I showed up, I shuddered at the thought of being the derrickhand way up on the windboard when it’s minus 30 or worse. Moiling for oil takes a special bred of cat – one with good balance,

coordination and a sense of teamwork. My hat goes off to those folks.

Even being a water hauler requires more patience that I could muster. Only once did I volunteer to hand out water to joggers when I wasn’t in a footrace myself.

I’ve always been a man on the run – racing the streets in Toronto, New York and Chicago in the 90s. Being stuck on a rig all day won’t work for me.

Working on a rig is serious business and potentially dangerous. Is it safe? The only job I could safely do at a rig is the one I am trained for – to write about it. The downside is, scribes like me don’t get oilmen’s wages. That’s why I buy lottery tickets. No luck yet, but like those rich oil companies I Geoff Lee write about, I’m hoping to take up happy dancing. Six numbers plus the bonus please.

In writing about drilling, I learned that most of the companies in the Bakken are involved with horizontal drilling which is all about pushing a drill bit vertically through the earth's crust for part of the way, then directing it horizontally to capture more of an oil pool. I grimace as the thought of a root canal pops to mind.

What does scare me about oil drilling is the part about the high price of gas at the pumps. Sooner or later if the price continues upward, all of us in the oil patch will be running even to our dental appointments. Wow, what a horror sequel for Dustin Hoffman – Oil Price Man. Is it cheap?

Bakken Forth

Our future is bright Business with Burnett Stephan Burnett

The oil and gas industry in Saskatchewan is hot, hot, hot.

The provincial government reports April's sale of Crown petroleum and natural gas rights has raised an astounding $265 million in revenue for Saskatchewan.

“This not only shattered the previous record of $197 million set in February, but also eclipsed what had been a record for total annual land sale revenue of $250 million in 2007. Prior to the February land sale, the previous record of $85 million for a single sale had stood for 14 years,” the government reports.

So what’s in store for the future? Well, let’s just say our future’s so bright we’re going to have to wear shades.

Saskatchewan Energy and Resources reports “the Weyburn-Estevan area dominated the sale with over $207 million in bonus bids, largely on the strength of the Bakken oil play. The Swift Current area followed with nearly $53 million, largely attributable to industry interest in the emerging Shaunavon oil play.

The Kindersley-Kerrobert area was next at almost $3 million, followed by the Lloydminster area at just over $2 million.”

So what’s driving all this growth?

Some will say it is Alberta’s revised royalty structure, which drew the attention away from our partners to the west and focused the industry on the Land of the Living Skies.

Others will argue that it is the change of government in Saskatchewan and they’re pro-business approach that has set a new high-bar in the history of the province’s relationship with the industry.

Still others will argue that it is simply a reflection of high world demand and higher oil and gas prices.

With India and China continuing to push world demand for raw resources, this is possibly the strongest argument for what is happening in Saskatchewan’s energy sector.

But truth be told, it is a combination of all these factors that is leading to such dynamic growth.

And while it may pain many people at the pumps, the province as a whole will be in a much stronger position – five and 10 years from now -- as a result of the growth in the industry. Is it possible the province might retire its debt within the next 10 to 15 years? What might happen after that? The development of a Saskatchewan Heritage Fund? How about the elimination of the PST? Optimism abounds.

Even with all this growth, Saskatchewan’s industry is set to expand with the development of the province’s oil sands industry in the northwest portion of the province, northwest of the town of La Loche.

Oil Sands Quest is a leading oil sands developer, holding an impressive 508,000 acres in permits in the northwest of the province and 110,000 acres in licenses dubbed the Axe Lake Discovery. The Axe Lake development program schedules its first steam injection for the summer of 2008 and pegs final developmental approval for 2010.

Will the development of Saskatchewan’s oil sands have as much impact in our province as it has on our partners to the west?

Only time will tell but one thing is for certain, our future looks bright.

A6

PIPELINE NEWS July 2008

Skilled immigrants import innovation Geoff Lee Estevan - It’s old hat that oil and gas companies hire skilled immigrant workers offshore, but the newsy part is these employeremployee relationships are proving to be advantageous. That’s the case at SaskArc Industries Inc. in Oxbow and Wa-

“

dian Livestock Services in Lloydminster that led to the hire of four skilled Philipinos, two East Indians and three South Africans to the welding crew.

Two of the Philipinos left recently to join a larger Philipino community in Saskatoon, but the others have brought their families

and hired 10 Germans, one Austrian and two Ukrainians. The company filled openings for positions such as lathe operators, welders and a draftsman. WSS services and sells a range of products including pump jacks, gas compressors and plunger pumps.

“Skilled immigrants

Skilled immigrants bring a high level of education and innovation expertise.

- WSS president David Heier

terflood Service & Sales (WSS) in Estevan.

Both companies chose the immigration route after their search for experienced Canadian journeymen came up empty. SaskArc, a steel fabrication plant, spent over $30,000 in national recruitment ads for specialized welders with not one hire to show for it.

“After our ad campaign, we starting looking outside the box,” said Roberta Taylor, SaskArc’s administrator.

Strange as it sounds, they contracted a recruitment arm of Cana-

over and are purchasing houses having obtained their permanent residency status.

“They want to work.

They see better opportunities here for themselves and for their families,” said Taylor. “They all add insight and diversity to our organization and different ways of doing things. We will hire more if we can, but the process is quite tedious.”

Waterflood sent general manager Bob Siroski to recruiting missions in Germany, a couple of years ago

”

bring a high level of education and innovation expertise,” said WSS president David Heier who says he is 50/50 German-Tr inidadian descent.

One of those new hires is German Katharina Ulbrich who followed her welder husband Karsten a year later on an open permit, to work at WSS processing paperwork for foreign workers.

The couple’s 13 –yearold daughter goes to school in Estevan.

“All of our guys are applying under the Sas-

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katchewan Immigrant Nominee Program, for permanent residency,” said Ulbrich. “To apply, you have to be here

Katharina Ulbrich followed her welder husband, Karsten from Germany for a job at WaterÁood Service and Sales Inc. in Estevan managing the paperwork for other immigrant workers.

for six months and you need a permanent job. If you nominated, it is easy to apply for permanent

and fierce pride are part of the German culture. I wanted these attributes for WSS. Not all Ger-

mans have worked out as hoped as times and culture has changed.

I am very happy with the majority or our immigrant workers. They have spent the time and effort to learn English as a second language and have accepted in large, this Canadian culture.

“WSS has had problems integrating some staff and the root cause is always language barriers. In time our investment of money and effort will pay off.”

Ulbrich has joined Toastmasters and attends company-paid ESL courses at Southeast Regional College with her fellow Europeans twice a week.

“ESL prepares employees to be successful on the job and to understand safety issues,” said Ulbrich. ɸ Page A7

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PIPELINE NEWS July 2008

Migrant workers making their mark Éş Page A6 At SaskArc, Taylor says their workers havenâ&#x20AC;&#x2122;t needed ESL. â&#x20AC;&#x153;All of our workers came with some English speaking ability. At the time, the only place ESL was available was in Estevan. We choose to in-house train

them. The biggest hurdle is that in each culture we donâ&#x20AC;&#x2122;t call things like tools or equipment by the same name. â&#x20AC;&#x153;SaskArc is accredited with the Canadian Welding Bureau and the newcomers have to be licensed. We are progressing. They came with skills in sub-arc welding, but thereâ&#x20AC;&#x2122;s a lot of training as the type of welding we do is quite foreign to them. They have obtained their tickets.â&#x20AC;?

On the job training at WSS included learning imperial measurements, safety procedures, First aid, and meeting ISO API ASME standards.

Both companies agree, settlement is the key to long-term retention of immigrant workers. â&#x20AC;&#x153;WaterďŹ&#x201A;ood is trying to integrate all foreign workers into the community social life,â&#x20AC;? said Ulbrich. â&#x20AC;&#x153;Most of them are members or our in-house social club with monthly activities.â&#x20AC;?

SaskArc started a company baseball team as a way to socialize. â&#x20AC;&#x153;None of the guys had ever played baseball before. They seem happy to be in the community,â&#x20AC;? said Taylor.

Taylor also noted that other immigrant worker issues like housing, driverâ&#x20AC;&#x2122;s licences, banking and establishing credit are being eased thanks to the services referred to by the Southeast Community Settlement Committee South African Wicus Fourie brought his family to Canada for a better based in Estevan. See related job and to escape the high crime rate in their homeland. story on page A17.

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A8

PIPELINE NEWS July 2008

Safe-Tee’s ¿rst lady Oxbow’s Shirley Galloway started Safe-Tee Management over 12 years ago

By Lizz Bottrell of the Carlyle Observer Oxbow - In recent years, women gained substantial credibility and presence in the Saskatchewan oilfield, thanks in part to intelligent and confident women like Shirley Galloway, R.N. Galloway started Safe-Tee Management, an Occupational Health and Safety (OH&S) Consulting Group, out of Oxbow, over twelve years ago.

Her company grew over the years to include seven full-time staff - all of which are women except for one. “All our field people are women,” said Galloway. “We only have one man, and that’s my husband.”

The company grew quickly to encompass clients from Saskatchewan, Manitoba, Alberta, and the North West Territories. “I’m actually heading up to Inuvik next month,” said Galloway. She said she was very excited to head up to the north next month because she’ll have the opportunity to see it in the summertime. “One time I went up there at Halloween and it was -55 without the wind chill.”

Galloway credits Safe-Tee Management’s fast growth to the uniqueness of the company. In fact, the company is the only all-inclusive OH&S Group in all of Saskatchewan. “The reason we grew the way we did is there are a few safety companies in the area, but not an occupational health service,” said Galloway. “My background allows us to encompass the whole OH&S aspect in the workplace. That’s where we made our niche. There are no other companies other than one in Saskatoon that offer the same comprehension we do.”

If the fact that Galloway pioneered an incredibly unique company, employing mostly women is not enough to strike a person, her extensive resume is sure to make a lasting impression. Galloway holds a Bachelor of Science in Bio Chemistry and she’s a Registered Nurse (RN). Right after finishing school in Winnipeg, where she was born and raised, she spent three years in Northern Manitoba as a Nurse Practitioner. After that, she spent 10 years at an inner city health clinic as a Nurse Practitioner. Currently, Galloway is a third of the way through her studies towards a Masters Degree in Occupational Health and Safety.

Galloway’s extensive list of credentials continues with the recent addition of coroner for the area. “My area runs from the Manitoba border up to Carlyle, Glen Ewen, over to Frobisher and sometimes including Estevan, if the coroner is away or needs help,” said Galloway. She didn’t just become coroner by chance. “I was appointed by the Minister of Justice, as a coroner,” said Galloway. The appointment occurred in December of 2007.

The story as to how Galloway ended up in Oxbow is an interesting one. A while back, Galloway and her family started out on a trek from Winnipeg to British Columbia. The family made a stop in Oxbow to visit her husband Jim’s family and never left.

“When we came here that many years ago, no one had ever heard of nurse practitioners in Saskatchewan, so there was nowhere for me to practice,” said Galloway.

She ended up working in Culbertson, Montana as a hospital director for a time. While there, a large part of her duties included working with the American version of OH&S. “As part of my role as the hospital director, I started doing studies in health and safety

which kind of led me to this path,” said Galloway. “After I came back to Saskatchewan I started doing occupational health and safety around here on my own. After two years it got so busy I couldn’t handle working on my own so my husband started with me and we grew from there.”

The company also offers the service of Contract Safety Coordinators (CSC). A CSC helps a company meet safety requirements through implementation of health and safety directives. “Smaller companies may not have resources to hire their own and there are not enough qualified people out there, so they hire us.” said Galloway. “Plus they may not need someone there seven days a week.”

Safe-Tee Management also owns a first aid trailer, which they can bring on-site. “It’s a mobile first aid station that is fully equipped with mega trauma supplies, including an Automatic External Defibrillator, which is used when someone goes into cardiac arrest,” said Galloway. Along with the first aid trailer the company provides a trained medic that can immediately administer a more advanced level of first aid if needed. “No one else has this in Saskatchewan,” said Galloway. “It’s been really popular because people feel a lot more comfortable when they have a trained medic and trained safety coordinators on-site. Jobs that companies generally commission the use of the first aid trailer include oil and gas plant shutdowns, frac jobs, facility builds and construction projects.

“We do health and safety project management,” said Galloway. “We develop and implement project health and safety plans.” Galloway and her employees execute the developed plan, train everyone involved and run safety meetings. Basically, they make sure at the end of the day that everyone goes home healthy and safe.

The company also offers a full range of occupational health services that are mobile. “We have a mobile occupational health trailer and it has an integrated sound booth. “We do hearing testing, fit testing, employee health assessments, blood pressure clinics and flu shot clinics,” said Galloway. Mobile services also include pulmonary function testing and vision screening.

As Galloway’s company continues to grow in the future, she plans to grow herself and her knowledge of OH&S as well. “My number one goal is to finish my masters and take my doctors in OH&S,” said Galloway. When she completes her PhD, she’ll be the second person in Canada to hold that level of degree in occupational health and safety.

“We have a small satellite office in Estevan that we offer training out of,” said Galloway. “Perhaps in the next couple years we’ll expand it. I’d also like to open an occupational health office in Regina. Right now, we’re just getting a plan set up.”

She credits the strong amount of respect she receives in the oil field to her education, credentials and confidence. “Any woman can do it if you’re confident,” said Galloway. “You have to trust your knowledge. You can’t be afraid to walk into any situation. There’s been times when I’ve spoken to an entire room of men and I’m the only woman. It doesn’t bother me because I’m confident. I think that’s the key of being a woman in the oil industry - and there are a lot of us now.”

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A9

Advance Drilling feeds on the global drilling rush Geoff Lee Estevan –Advance Drilling Ltd. could work eight days a week in the Bakken if that were possible. The demand for oil drilling is strong and has helped the Vancouver-based company to become a global name to watch in rig contracting and manufacturing.

In the Bakken, they’ve grown from having one rig working in June 2007 to more than 10 operating rigs and counting in 2008. Advance’s new company called Partner Drilling Ltd. will have four rigs in operation by mid-July including two positioned in Lloydminster.

“We’ve been consistently building our fleet. With all of this Bakken exploration there is a huge demand for more rigs, and being a local drilling contractor - for us - there’s lot of opportunity,” said general manager Ron Mowbray in Estevan. “We’ve got lot of customers who are faithful to us and use us all the time.”

Advance drills in the Bakken for a lengthy list of oil companies including Spectrum Resources Ltd., Midale Petroleums Ltd., TriStar Oil and Gas Ltd., Villanova Energy Corp., T Bird Oil Ltd., and Crescent Point Resources LP, in an expanding swath from Weyburn into Manitoba and from Moosomin to the U.S. border.

“There are also a lot of smaller companies that we drill for all the time,” said Mowbray. “There are a lot of acquisitions going on. A smaller company will sell out to a larger company that keeps the rigs on to drill for them.

The smaller guy may start up again and come back to us for a rig. It seems it’s just going to be an ongoing thing.

“The Bakken is going to drive it for quite awhile and that depends how big a reserve there is. If it pans out, that it’s huge, we could be drilling steady for 10 years. It also wouldn’t surprise me if we

drilled out the Bakken in five years. It depends on how many rigs they bring in. The more rigs, the faster they will drill up the Bakken.”

For the past two years, Advance

assembly and what kind of drills you’ve got,” said Mowbray. “If you’re running lots of drill collars – heavy weight stuff – it makes a lot of difference to your string configuration and your weight.

Advance Drilling Ltd. is a major drilling player in the Bakken and beyond. Advance rigs had the highest utilization rate in western Canada per capita, per rig, the last two years. The company is also building rigs in China and assembling the parts in Estevan and Western Canada for international buyers as the demand for rigs rises. has led the Canadian Association of Oilwell Drilling Contractors’ rig utilization rate. “Our rigs ran the most of any fleet in Southern Saskatchewan or Western Canada per capita per rig,” said field supervisor, Bill Devins who attributes that to good employers and well-made drills and maintenance.

“We haven’t had much technical trouble since most of our drills are state of the art and new stuff within the last three or four years,” he said. “Anything that’s mechanical and steel on steel is going to eventually wear out. Engines and pumps wear out and transmissions sometime fail, but for the most part, the rigs run very well.”

Advance’s rig fleet includes three jackknife-style rigs and the rest are telescopic doubles with deckloads ranging from 135,000 decanewtons to 158,000 decanewtons with a drilling depth of 3,400 metres.

“When you are going with depth, a lot depends on what kind of drilling

“If you are on a horizontal well, we can go further than 3,200. I would say 90 per cent of our work is horizontal drilling.”

With demand for rigs so high in the Bakken and a backlog of rig orders in Alberta, Advance looked to China to built rigs number 6 and 7 quickly.

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“It shows up here as the bare bones and we do our own assembly,” said Mowbray. “We hire local mechanics, hydraulics guys and electricians. We do all of our own installations and lots of modifications to make it exactly as we want it.

“Being a small oil patch, everyone hears what you’re doing. I had guys from North Dakota wanting me to build a couple of rigs for them. From there, it’s been word of mouth. Last year, the company we are involved with in China asked us to take a drilling rig to the Houston Offshore Technology Conference. We got a lot of feedback from that.”

Advance has just shipped a rig made in China and assembled in Estevan, to BrazAlta Resources Corp., a Canadian company operating in Brazil.

“One of the guys in Brazil who does a lot of buying for BrazAlta Corp. and Petrobras knows our work,” said Mowbray. “He knows when we assemble a rig it’s going to run. For that one, the centrepiece, sub and draw works came from China. All of the outbuildings and the rest of the rig is built locally (within Canada). Every customer has their own idea of what they want.”

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A10

PIPELINE NEWS July 2008

Grey Owl spreads its engineering wings

Adam Dinwoodie is the regional manager of Grey Owl Engineering that opens its doors in May to service clients in the oil and gas sector.

By Geoff Lee Estevan – Opportunity knocked for Grey Owl Engineering that opened a shop in Estevan in May to better service existing clients and take on new oil and gas projects. Grey Owl provides complete engineering services for the construction of oil batteries, gas plants, well sites, water treatment systems and regulatory applications. The list goes on.

Company partners Nivandra Patel and Dean Quirk flew in from their Accutech engineering office in Calgary to meet with regional manager Adam Dinwoodie and explain their engineering focus and

vision for southeast Saskatchewan with Pipeline News. The interview took place on June 18 at their new office, currently being renovated at 1206 4th St., with the first question, why Estevan?

“We’ve been in the area for about two years working for clients like EnerPlus Resources, Penn West Energy and Crescent Point Energy,” said Patel. “There was a need for an office here for an engineering company. There is an awful lot of work to be done here. Our clients needed someone who could be hands-on, not in Calgary.”

From Quirk’s point of view, the decision in 2007 to buy and renovate the building on 4th St. has already paid off. “We had an idea that Estevan was going to grow in terms of its oil and gas projects. After we bought the building and positioned ourselves to grow a company here, we ended up with an added bonus. The increased royalty fees in Alberta have lead to added investment in Saskatchewan.”

Grey Owl markets itself as a full service engineering, procurement, construction and management (EPCM) company with a team focus.

“What sets us apart from other EPCM companies is that we create a team of people that sticks with the clients throughout many projects,” said Dinwoodie. “We’re going to have a team assembled so the client isn’t paying to retrain new faces all the time.

“We’re here to do expansions and take on smaller projects. We’ll be helping with new batteries, pipelines and gas plants and also assisting clients with upgrades and code violations. We can also take on smaller projects including Saskatchewan Energy and Resources’ changes regarding tank inspections and flaring. As the regulations become more stringent, we’re willing to help companies with bringing facilities up to code.”

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Dinwoodie, who hails from nearby Minton, began his career as an agricultural engineer. He spent five years oversees engineering agricultural installations and returned to Canada to work for Enbridge.

He was project manager for Enbridge’s Alida to Cromer capacity expansion project.

“Just as that job was the completed, the partners approached me about managing this field office,” said Dinwoodie. “The partners feel there’s a lot of opportunities in southeast Saskatchewan with the way the Bakken play in coming round.”

Dinwoodie has hired his first batch of local employees including project coordinators Jade Cable, and Carmon Lindquist, administrator Jamie LeMesurier and draftsman Peter Malek. More staff will be hired as business expands.

“Since we opened our doors we’ve had requests for numerous small certification type projects like pump packages and even some metal fabrication companies have come to us with an idea and want to know how to tackle it,” said Dinwoodie.

“We don’t have every specialist on staff, but we have alliances with a lot of other people in Calgary that can help. If you have a very complicated process question, we have outsource people who can do that.”

Grey Owl has links with engineering specialists, civil engineers and electrical/instrumentation firm in western Canada.

In the Bakken, Grey Owl can do hydraulic calculations, flow calculations, through treaters and freewater knockouts and engineering around the basic process of a battery.

“We supply the design services and the engineering services the procurement and the construction and management services,” explained Dinwoodie.

“Our speciality is oil and gas engineering.”

Grey Owl Engineering is a parent company of Accutech Engineering based in downtown Calgary.

Grey Owl bought the assets of Accutech five years and Quirk says they are “slowly changing the name to Grey Owl. “An owl represents wisdom,” added Patel.

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WaterĂ&#x20AC;ood says thanks for award of excellence Â&#x201E; By GeoďŹ&#x20AC; Lee Estevan â&#x20AC;&#x201C; WaterďŹ&#x201A;ood Service and Sales Inc. threw a party at the Perfect Inns and Suites in Estevan on June 17 to applaud community groups that helped the company win the 2008 Training for Excellence Award for workplace literacy and essential skills.

The award from the Saskatchewan Labour Market Commission was presented to WaterďŹ&#x201A;ood

in Regina on June 11 in recognition of its innovative solutions to upgrading the literacy skills of its new immigrant workforce. WaterďŹ&#x201A;ood has hired up to 15 skilled workers oďŹ&#x20AC;shore in recent years and plans to hire more.

The award recognized their community partnership workplace programs that support the development of essential workplace skills includ-

ing reading text, document use, numeracy, writing, oral communication, working with others, and thinking skills. â&#x20AC;&#x153;Because we had so many immigrant workers, there was a lot of additional training at work, additional orientation and ESL training (English as a second language),â&#x20AC;? said Bob Siroski, WaterďŹ&#x201A;oodâ&#x20AC;&#x2122;s general manager. â&#x20AC;&#x153;The process takes months to get people up

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to speed. Communication at ďŹ rst was slow, but as we progressed and people developed a conďŹ dence level, the process sped up. â&#x20AC;&#x153;We also worked with Southeast Regional College for ESL training, volunteers for tutoring and we worked with the Southeast Community Settlement Committee, church groups and other volunteer organizations.

Itâ&#x20AC;&#x2122;s a big commitment for the employer and employees. All of the training was in-house.â&#x20AC;?

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than 80 companies nominated in the category.

Ulbrich and company president Peter Heier also thanked representatives from the Southeast Community Settlement Committee, the Southeast Regional Library, Church of Christ, volunteers and Toastmasters International among others.

Siroski added that his company can also oďŹ&#x20AC;er help to other companies going through the process.

WaterĂ ood Service and Sales Inc. won a 2008 Award of Excellence for workplace literacy and essentials skills presented by the Saskatchewan Labour Market Commission in Regina. Left to right are: Michel Cyrenne - Estevan & District Board of Tourism, Trade and Commerce; Pam Gunnlaugson - Estevan Literacy Group, Tamara Bloor - Southeast Community Settlement Committee, Katharina Ulbrich - WaterĂ ood Service and Sales Ltd., Peter Heier - WaterĂ ood Service and Sales Inc., Heliana de Souza-Wagner - Southeast Regional College, Greg Salmers - Southeast Regional Library and Bob Siroski - WaterĂ ood Service and Sales.

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WaterďŹ&#x201A;oodâ&#x20AC;&#x2122;s skilled immigrant worker program is managed by Katharina Ulbrich who is also an immigrant worker from Germany.

Ulbrich acted as the master of ceremonies and thanked WaterďŹ&#x201A;oodâ&#x20AC;&#x2122;s community partners that made the award possible most notably, Heliana de Souza-Wagner, a labour force development coordinator and ESL instructor at southeast college who nominated WaterďŹ&#x201A;ood. There were more

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A12

PIPELINE NEWS July 2008

PIPELINE NEWS July 2008

Blackstock outshoots Blackstock Father and son duke it out at Estevan OTS Golf Tournament Story and photos by Geoff Lee Estevan – Like father like son. Twenty-four year-old Brett Blackstock, who works for Enbridge, won the 51st annual Estevan OTS golf tournament carding a 4 under par 67 on the final round.

He played in a grouping that included his dad 15 - time champion Scott Blackstock. Scott, the president of Sebco Coring Ltd., played the final 18 holes in 2 over par and wound up third behind Nolan Rohatyn who fired an even par 71. Fourth place finisher and four-time tournament champ Scott Dutton, shot a 74.

It was the first time in the history of the event played at Woodlawn Golf and Country Club, that a father and son duked it out in the top grouping of the 36-hole championship.

“It’s about time,” kidded Brett when asked how he felt about the win. “It feels good to win my dad’s event. The best part is playing in the final group and beating my dad. My putter was working well. My only bad hole was the 18th and I bogeyed the 14th.”

The event included defending champion Rick Pesola who works for Carson Welding & Maintenance. He told the Pipeline News, earlier that day, he hadn’t played enough to be competitive. “This is only my fourth time out this year,” he said during a beer break at the third hole. “I can’t find the time. I’ve been laying too much pipe.”

The competition included a 36-hole masters division won by TS & M Supplies Ltd. retiree Dale Fox who finished with an 80. The masters first flight winner was Darryl Henry with an 88 score. There were 14 flight winners in the 18-hole competition plus championship flight winner Mike Verity who fired a 73. Prizes were awarded to the top four finishers in each flight.

The remaining flight winners and score were: Tom Copeland 84, Billy Dorr 87, Ryan Benjamin 90, Dallas Cobham 91, Mitch Cosier 92, Tim Fey 94, Brad Friars 96, Bob Sir ski 98, Bob Speers 101, Brian Chicane 103, Gil Black stock 105, Trent Heifer 109, Jonathan Lake 115 and Steve Glaser.

The respective flight winners and scores in the 36-hole championship round that Brett Black stock won were: Pat Messier 71, Dan McCredie 74, Tony Heath 79, Brad Dutton 80, Omar Marsh 84, Shawn Larson 83, Chad Farr 82, Jeff Yank 84, Dan Pratt 90, Marlin Forbes 90, Dan Subside 85 and Manuel Abound 104.

The 51st annual event was played out under sunny skies and light breezes and attracted about 350 golfers who provided the area with a mini economic boom.

The day the event kicked off, Jim Wilson, president of the Woodlawn course said, “The OTS tournament is the largest event of the year for the club. It’s a great revenue stream for us. We’ve hosted it for 51 years. The course conditions are great.”

Ditto the pre-event enthusiasm from OTS vice-president Jeff Mosley, the chair of the tournament and MC of the BBQ and dance.”The tournament does a have a large impact on the community,” he said. “It brings a fair number of people to town. We get good support from local businesses too. Everyone comes through in a big way.”

OTS president Greg Kallis also said the event has an effect on everyone. “The whole economy is booming. We receive excellent community support. It helps that the industry is doing well. People spend money from restaurants and hotels to cabs. A lot of people bring their families and campers. The dollar impact would be up there.”

The donor prize list for 2008 read like a phone directory for the regional oil and gas industry and included a lengthy list of hole prizes.

No one won the hole in one cash prizes valued up to $6,000.

The Estevan OTS event is the largest golf tournament in the circuit for the oil and gas industry. In addition to Kallis and Mosley, the 2008 organizing committee included Terry House, Lindsey Roy, Trevor Goetz, Norm Mack, and Bernie Bjorndalen.

Nolan Rohatyn of Carson Welding and Maintenance chips his ball on hole 15.

Jim Wilson of Wil-Tech Industries tee’s off on hole 1.

Brett Blackstock talks with Chris Klovin of Ensign during their round.

Jim Ehrmantraut tee’s off at the Àrst.

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Head OfÀce: 738 6th Street Estevan, Sask.

Phone 634-3411 or 634-7361 Fax: 634-6694 JIM MERKLEY Glen Ewen 483-7633

Estevan: Ray Frehlick Residence: 634-2107; Cellular: 421-1880 Wayne Hein Residence: 634-0002; Cellular: 421-9555 Calgary: Chuck Haines OfÀce: 403-237-7323; Cellular: 403-860-4660

IAN SCOTT Oxbow, Sask.

Cell: 421-6662

JASON LING Carlyle, Sask.

Cell: 421-2683

GERALD SMITH Cell: 421-2408

A13

A14

PIPELINE NEWS July 2008

Token of Appreciation Barrie Lischka accepts a CertiÀcate of Appreciation from Desk and Derrick member, Kassie Block. The Desk and Derrick Club of Southeast Saskatchewan had the opportunity to attend a tour of Carson Welding and Maintenance in Lampman on June 9th. The Desk and Derrick Club promotes the education and professional development of the individuals employed in, or afÀliated with the petroleum, energy and allied industries. Submitted photo.

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PIPELINE NEWS July 2008

A15

Business is up in downhole jobs Â&#x201E; By GeoďŹ&#x20AC; Lee Estevan â&#x20AC;&#x201C; You could say Directional Plus is part of the growing underground oil economy in the Bakken formations. Thatâ&#x20AC;&#x2122;s because they provide horizontal and directional drilling services to area oil companies with downhole tools for locating oil pay zones.

The parts may be largely out of sight, but not out mind by clients in the Bakken where 90 per cent of drilling is horizontal. The Estevan shop is kept hopping repairing, rebuilding and inspecting their stock of directional drilling components like motors, nonmagnetic drill collars (monels) and mechanical drilling jars, rented on a daily basis. â&#x20AC;&#x153;We had as many as 18 diďŹ&#x20AC;erent rigs working with tools out of our shop at one time last year and we anticipate it will be that busy again this summer,â&#x20AC;? said Estevan shop manager Bill Froese.

Petrobank Energy, Crescent Point Energy Resources LP, Arc Resources Ltd., and Tundra Oil & Gas in Manitoba, are among Directionalâ&#x20AC;&#x2122;s main customers tapping into Bakken oil with horizontal drilling. Directional Plus is one of the largest directional drilling tool suppliers in southeast Saskatchewan. â&#x20AC;&#x153;A lot more of your producing zone is opened to production with horizontal drilling,â&#x20AC;? said Froese. â&#x20AC;&#x153;Instead of have a metre or two of zone open with vertical drilling, youâ&#x20AC;&#x2122;ve got 1,000 or 1,200 metres of zone open, drilling horizontally 90 degrees. We wouldnâ&#x20AC;&#x2122;t have the same amount of oil activity today without horizontal drilling.â&#x20AC;?

All of Directionalâ&#x20AC;&#x2122;s business is derived from rentals of its the high-tech tools that steer the drill bit below the earth's surface to a pre-determined target including its measurement-while-drilling or MWD technology and its positive displacement mud motors. MWDs are installed in the drill string and also record real time temperature. ɸ Page A16

Travis Berday and Shane Allan prepare to torque some components of a mud motor on the Directional Plus Torquemaster machine.

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PIPELINE NEWS July 2008

A15

Business is up in downhole jobs Â&#x201E; By GeoďŹ&#x20AC; Lee Estevan â&#x20AC;&#x201C; You could say Directional Plus is part of the growing underground oil economy in the Bakken formations. Thatâ&#x20AC;&#x2122;s because they provide horizontal and directional drilling services to area oil companies with downhole tools for locating oil pay zones.

The parts may be largely out of sight, but not out mind by clients in the Bakken where 90 per cent of drilling is horizontal. The Estevan shop is kept hopping repairing, rebuilding and inspecting their stock of directional drilling components like motors, nonmagnetic drill collars (monels) and mechanical drilling jars, rented on a daily basis. â&#x20AC;&#x153;We had as many as 18 diďŹ&#x20AC;erent rigs working with tools out of our shop at one time last year and we anticipate it will be that busy again this summer,â&#x20AC;? said Estevan shop manager Bill Froese.

Petrobank Energy, Crescent Point Energy Resources LP, Arc Resources Ltd., and Tundra Oil & Gas in Manitoba, are among Directionalâ&#x20AC;&#x2122;s main customers tapping into Bakken oil with horizontal drilling. Directional Plus is one of the largest directional drilling tool suppliers in southeast Saskatchewan. â&#x20AC;&#x153;A lot more of your producing zone is opened to production with horizontal drilling,â&#x20AC;? said Froese. â&#x20AC;&#x153;Instead of have a metre or two of zone open with vertical drilling, youâ&#x20AC;&#x2122;ve got 1,000 or 1,200 metres of zone open, drilling horizontally 90 degrees. We wouldnâ&#x20AC;&#x2122;t have the same amount of oil activity today without horizontal drilling.â&#x20AC;?

All of Directionalâ&#x20AC;&#x2122;s business is derived from rentals of its the high-tech tools that steer the drill bit below the earth's surface to a pre-determined target including its measurement-while-drilling or MWD technology and its positive displacement mud motors. MWDs are installed in the drill string and also record real time temperature. ɸ Page A16

Travis Berday and Shane Allan prepare to torque some components of a mud motor on the Directional Plus Torquemaster machine.

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A16

PIPELINE NEWS July 2008

Horizontal drilling leads to success Éş Page A15 â&#x20AC;&#x153;The surveying equipment with the MWDs gives you data on your angle and your true vertical depth,â&#x20AC;? said Froese. â&#x20AC;? You can steer it in any direction. Itâ&#x20AC;&#x2122;s like a compass and gives you angle. You can steer it from zero to 90 degrees, left and right and wherever you want to go.â&#x20AC;?

Directional supplies all the tools, mud motors, monels and the people and the technology under the supervision of Greg Toles, directional drilling coordinator. â&#x20AC;&#x153;All of the training is done in the ďŹ eld by the employees I send out,â&#x20AC;? said Toles. â&#x20AC;&#x153;I will hire a driller oďŹ&#x20AC; a rig and our staďŹ&#x20AC; will train him to become a directional driller. The rig will have a directional driller and a MWD operator who runs the tools that indicate what angle and direction they are drilling.â&#x20AC;?

The information is fed from the tool in

the ground to a computer at the rig site and decoded to allow for changes in angle or depth.

Toles added the main focus of horizontal and direction drilling these days is â&#x20AC;&#x153;going farther and â&#x20AC;&#x2DC;doing longer legsâ&#x20AC;&#x2122; to expose more wellbore.â&#x20AC;?

Also whatâ&#x20AC;&#x2122;s new is growing use of PDC drill bits with no moving parts. â&#x20AC;&#x153;Most companies are using the PDC bits for the curve and the lateral,â&#x20AC;? said Froese.â&#x20AC;? They have four to ďŹ ve blades on them with diďŹ&#x20AC;erent size carbide cutters on the face. They are a much more aggressive bit.â&#x20AC;?

Directional Plus is a division of Calgary-based Cathedral Energy Services Income Trust and operates in the Canada and the United States.

The companyâ&#x20AC;&#x2122;s repair shop in Estevan has 20 employees, all but one hired locally.

Apprentice inspector Susan Mack air dries motor parts in preparation for further inspector.

Directional Plus shop manager Bill Froese points to the adjusting nut on a mud motor allowing for a three degree bend. The end piece is the bit box.

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PIPELINE NEWS July 2008

A17

Oilpatch provides work for skilled immigrants

By Geoff Lee They say you can never go home again. That’s okay with the skilled immigrant workers Pipeline News spoke with at SaskArc Industries Inc. and Waterflood Service and Sales Ltd. as they continue to settle into new careers and communities.

SaskArc welder Orlanda Vestal was recruited from the Philippines in 2006 and he says he just bought a house in the Oxbow area a few weeks ago.

What amazes his most is when his wife gave birth to their third child in

Canada they didn’t have to pay.

“The big advantage for my family is healthcare is free,” he said. “I have a secure job and I can achieve everything I want in life here.” Vestal’s wife works at Mick’s Stop N Shop, his 12 year-old daughter is an honour student and babysits to earn money, while his 18 year-old son works at Mick’s after school and aspires to take a journeymen’s welding course in his dad’s footsteps.

About his trade Vestal said, “My government sent me to Japan for ex-

perience in welding.”

When he first reported to SaskArc, his impression was positive. “They have complete equipment. It’s different here. You have to have all of your tickets.”

Wicus Fourie is another SaskArc welder hired from South Africa.

He arrived in June 2007 with his wife and kids. “I was from a small town and crime was ‘hectic’ there,” he said. “I didn’t feel safe and I didn’t want my kids to deal with that.

I am very happy here and earn more money. I bought a house. I enjoy

WE’RE THINKING BIG • Pipeline Construction • Facilities Construction and Installation • Horizontal and Directional Drilling • Environmental Reclamation and Remediation • Plant and Facilities Maintenance Mike Brasseur, Division Manager (306) 634-4554 (306) 634-4664 Cell: (306) 461-8111 Email: mbrasseur@bcpl.ca Web: bigcountryenergy.com

the safety.”

What he likes about SaskArc is that he gets an appraisal every six months. “I like to know where I am standing so I can improve,” he said. “In South Africa, we never had a business manager talk to us on the floor.

Here you get recognition.

You get recognition for a job well done. The people have been very helpful.”

In South Africa Fourie’s wife had to work full-time to help the family get by. “Now she stays home with the kids. It’s a real treat for her,” said Fourie.

Rebuilding an old Audi takes machinist Frank Rygalski back to his native Germany in spirit, but other than missing the Autobahn and forests, he said he feels comfortable working at Waterflood in Estevan since arriving with his wife in August 2007.

The couple has bought a horse but not a house. “First, we need our permanent residency,”said Rygalski who machines parts for equipment like pumps and crank arms.

His wife works in town at Murray GM. Asked why he came to Canada, Rygalski said, “I quit my job in Germa-

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ny to come to Canada for easier living. “Taxes are very high in Germany. I don’t want to go back.”

In Germany, Rygalski was a lathe operator

Uwe Linder from Germany. and a supervisor. Waterflood has hired more than a dozen skilled Europeans like him in the past couple of years for vacancies that can’t be filled in Canada.

“I feel very comfortable at Waterflood,” he said. “If I have a question, people answer right away.

Rygalski was hired at a German job fair attended

by Waterflood’s general manager, Bob Siroski.

“When I arrived, Waterflood rented an apartment for us. I knew very little English, but we have a company paid ESL course twice a week

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job fair in Germany in 2006, but it took until January 2007 before he stepped off the plane in Regina. He was an unemployed mechanical engineer in eastern Germany where the jobless rate is over 20 per cent. “I found a temporary job in Hamburg while I waited to hear from (president) Dave (Heier).”

“It’s a difficult decision when you are close to 50, but I figured I am young enough to do it. I plan to stay. I am working on my provincial immigrant nominee program to apply for permanent residence.”

Meanwhile, Linder’s girlfriend will arrive soon on a work permit and he is happy to have found his favorite head cheese sauerkraut in the local supermarket. He also bought a house in Bienfait last year and plans to move up to Estevan.

He said when you come to Canada, you have no credit history. “It’s difficult to get by the first step. I don’t know why they don’t accept European credit history. I got a card by depositing $1,000 with a $1,000 credit limit, then I asked for higher limit. I bought a house and proved I can pay the mortgage. Everyone who comes after me has fewer problems getting credit cards.”

Although Linder learned English in school he said, “That was 25 years ago. It doesn’t matter to me if my English isn’t perfect. If you are afraid of the language, you will never learn. At work, you only try to say what you need to. We start ESL again in the fall at the (Southeast) college.”

A18

PIPELINE NEWS July 2008

Texalta establishing footprint in Bakken Bakken - Texalta Petroleum Ltd. and their partners will ramp up their drilling program on more of their Saskatchewan properties in the near future.

The company is actively promoting farmout and participations in several deep prospects in the greater Willmar/ Carlyle area. The successful conclusion of these

eďŹ&#x20AC;orts will result in deep drilling before year end.

Meanwhile, one horizontal development well has been completed at Queensdale and placed on production as of May

16. After 12 hours of swab testing, the well produced at a rate of four cubic metres per hour of which 40 per cent was oil; the remainder load ďŹ&#x201A;uid.

This short term test indicates a rate of 10 bbls of oil per hour. Two further horizontal wells

are being proposed with partners and oďŹ&#x20AC;set land owners.

At West Wildwood, one horizontal oďŹ&#x20AC;set well is programmed and timing is dependent on joint land negotiations.

At Wordsworth, one horizontal well was drilled on the north side

of the prospect area during May. This well has been suspended. Preparations are underway for another well on the south side of the project area adjacent to the so-called 2-23 discovery well. Information courtesy of www.dailyoilbulletin. com

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PIPELINE NEWS July 2008

A19

Weatherford Àies Àag to hail Estevan Geoff Lee Estevan - No one is quite sure how many purposes Weatherford Canada Partnership accomplished by flying its flag over the Estevan Shopper’s Mall parking lot on May 29, but everyone who attended could count at least one.

Officially, the event was tagged as a day for Weatherford to showcase its oilfield services equipment and new technologies and throw a staff BBQ open to the public, but it mushroomed to include a $100,000 cheque presentation to the new Estevan Event Centre. It also attracted a strong core of corporate employees to town for the Oilmen’s Golf Tournament. The refreshment tent was packed with visitors by noon.

“The event is an opportunity to give our customers a hands-on one-on-one with our technical professionals and to showcase the different services and products that we offer,” said Pamela Hollinger, manager of community and public relations. “Weatherford is also big on building relationships with the communities where we work.”

Roy Amstrong, who oversees Weatherford’s fishing and re-entry services group in Calgary, got his start with Weatherford in Estevan and he’s amazed at the company’s local growth. “It’s grown over the last 28 years from a handful of

people to over 70 people,” he said. “With continuous growth, there’s potential to see the number of employees reach 100. Overall drilling is up over 32 per cent this year in southeast Saskatchewan. It’s keeping everyone hopping.”

Weatherford operates seven divisions including fishing and rentals, completion, wellhead, wire line, Weatherford BMW, directional services and ESP or down hole pumps. ɸ Page A20

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PIPELINE NEWS July 2008

Weatherford gives back to Estevan Éş Page 19 When asked which division is experiencing the most growth, Armstrong said, â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m not sure you can single one out. They are all very capable people. We cover all of southeast Saskatchewan and Manitoba, but the Bakken area is giving us good growth.â&#x20AC;?

Steve Butler, Estevanâ&#x20AC;&#x2122;s ďŹ shing tool supervisor added, â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve increased our rental equipment and with increased activity our ďŹ shing has also picked up. Weâ&#x20AC;&#x2122;re brought in a couple of new employees.â&#x20AC;?

Armstrong said ďŹ nding employees is always an issue but stressed, â&#x20AC;&#x153;We try to hire local people. Weâ&#x20AC;&#x2122;ve

Steve â&#x20AC;&#x153;Smokieâ&#x20AC;? Sweazey, representing the corporate wellhead group from Calgary.

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transferred a few people to Estevan who were originally from here at one time or another. In the oil and gas industry, if you havenâ&#x20AC;&#x2122;t worked in Estevan, itâ&#x20AC;&#x2122;s surprising.

It seems everyone passes through Estevan.â&#x20AC;?

Aside from the golf tournament, Armstrong said what brought him to town for the demo was the people. â&#x20AC;&#x153;It was always a pleasure to work with people from this area. They are straight up and honest. Events like this will make it better for the customer since we educate our employees what we have to oďŹ&#x20AC;er. â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s a lot of new technology coming out. The thru-tubing group is most aďŹ&#x20AC;ected. We are getting into the selective frac equipment that is being run down hole. We are doing a lot of work on the tubing side. Our completion group has the biggest potential for growth when comes to that.â&#x20AC;?

Weatherfordâ&#x20AC;&#x2122;s ďŹ&#x201A;agship of new equipment is its two prototype extended reach deployment units for public display. Each is designed to speed up and logging and intervention operations in deviated and horizontal oil and gas wells and have been recently been ďŹ eld tested in Manitoba with much success.

About the golf played May 20 to June 1, Armstrong wouldnâ&#x20AC;&#x2122;t miss it for wild horses. He was the president of the Estevan OilďŹ eld Technical Services group for over 10 years and he said, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s a great bunch of golfers. It would take a lot to keep me from back coming back.â&#x20AC;?

Armstrong also had the honour of presenting Waterfordâ&#x20AC;&#x2122;s $100,000 cheque to Estevan Civic Centre fundraising chair, Kim Anderson and Estevan deputy mayor, Lori Carr during the noon BBQ. â&#x20AC;&#x153;The cheque is on behalf of all of our employees their families in the area,â&#x20AC;? explained Armstrong. â&#x20AC;&#x153;They are going to be using the facilities and hopefully, $100,000 is a good impact on what they are trying to do here in Estevan.â&#x20AC;? â&#x20AC;&#x153;This is huge,â&#x20AC;? said Anderson moments before the cheque presentation. Companies like Weatherford realize it means a lot to them to have facilities in the city to entice their employees to come here. So their donating shows us theyâ&#x20AC;&#x2122;re going to be in Estevan for a long time to come, and they want to support everything thatâ&#x20AC;&#x2122;s in place.â&#x20AC;?

The cheque helped push the fundraising over the original goal of $6 million to $6,249,500, but Anderson and his group has since raised the bar to $8 million before construction starts.

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Bakken oilÂżeld encourages development in Carlyle Â&#x201E; By Lizz Bottrell of Carlyle Observer Down in the southeast corner of Saskatchewan sits the town of Carlyle. To an outsider, this community of over 1,200, works and ďŹ&#x201A;ows just like any other small town in Saskatchewan, but that is all starting to change.

Carlyle is situated right in the middle of Saskatchewan's Bakken oil formation, which, according to the 2000 U.S. Geological Survey, could hold as much as 413 billion barrels of oil. Even if the predictions are oďŹ&#x20AC; a few billion barrels, the Bakken would still put Saudi Arabia's Ghawar, the world's largest oilďŹ eld, which has produced around 55 billion barrels, to shame. The Bakken is so large, surveyors have yet to locate its actual edges.

The goldmine of an oilďŹ eld has oil companies buying up land faster than the oil is being pumped

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out of the ground, all in anticipation of what's to come. New rigs arrive weekly in order to keep up with the growing demand for oil production in the area bringing with them, more people.

Carlyle's position in the Bakken makes it the perfect choice for anyone moving into the area. There's only one small problem, any house, apartment, or commercial building for sale or rent is swiped up even quicker than oil companies can buy up the land.

The Town of Carlyle currently has a residential development underway, however, although it's a start, it's still not enough to meet the growing demands of newcomers to the area. Further, limited space for commercial development can become troublesome for new companies wanting to settle in Carlyle.

That's where Carlyle resident, Harold Ross, comes into play. Beginning July 1, Ross plans to begin selling commercial and residential lots for development to meet the growing demand for property in Carlyle. ɸ Page A22

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A22

PIPELINE NEWS July 2008

More lot space available in Carlyle Éş Page A21 The lots, located on the west side of Carlyle just off of highway 13, are starting at $55,000 per

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acre.

The new development includes 11, 1.1 acre residential lots in the southwest corner corner of the development, all with a view of the Moose Mountains. â&#x20AC;&#x153;We plan to build a dirt birm to block the acreages off from the industrial area,â&#x20AC;? said Ross. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll plant trees at the top of it to block the view [of the commercial development].

All theyâ&#x20AC;&#x2122;ll be able to see is outside to the Moose Mountains.â&#x20AC;?

Although the 11 residential lots will likely all be spoken for quite quickly, it could be months before anyone can actually move into a house. A lot of development is required, including all utilities and of course construction of a home, which wouldn't be an issue if people could actually find contractors.

With the recent oil boom in the area, contractors are sparse as they are either already busy with numerous projects or they have left to join the oil

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Alongside the residential lots, Ross is also offering forty commercial lots, varying in size from one to four acres, to help entice new businesses to Carlyle. Some of the lots offer prime position, situated alongside a service road parallel to the busy highway 13. â&#x20AC;&#x153;We have eight four acre lots facing the highway,â&#x20AC;? said Ross. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s perfect for anyone hauling in equipment because theyâ&#x20AC;&#x2122;re able to ignore the main entrance,â&#x20AC;? said Ross. Instead of using the main highway, companies can use the service road, saving them a lot of time while avoiding traffic.

Since Carlyle will continue to grow in the years to come, the new development should help ease some of the congestion for the time, while attracting more business to the area.

One business which would greatly help new residents to the area of Carlyle would be a nice, big hotel. Many people coming into the area to work in the oilfield have used hotels in the past as a temporary place of residence. It may not be the best long term solution, but it would definitely help out in the short term.

Even Ross acknowledges the importance of another hotel going up in Carlyle. â&#x20AC;&#x153;My ideal thing Iâ&#x20AC;&#x2122;d like to see is a hotel to go in there in the corner lot,â&#x20AC;? said Ross. He also sees the hotel as a great option because it attracts people off the highway and into Carlyle; however, he would be happy seeing any business in that location.

Anyone who purchases a lot is responsible for roads into the lot as well as sewer, water and electrical. All the services exist along the roads already in place so the owner is only responsible for utilities into his or her property. As the development grows, the streets will all be fully developed.

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PIPELINE NEWS Saskatchewan’s Petroleum Monthly

B-Section July 2008

Stoughton anxious over oil boom

By Geoff Lee

Laredo Well Services is one of many oil and gas companies Áocking to do business in the Stoughton area of the Bakken oil play. Pictured is Laredo crew working at a well site just east of Stoughton at the turnoff to Forget.

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Stoughton –Stoughton lies at the epicentre of the Bakken oil play that is beginning to dominate the conservations of the day by rooted town folk and newcomers alike.

Topics range from employment opportunities and available residential, commercial and industrial lots, to housing and the town’s ability to manage growth. There is still a lot of farm related chat too.

“If you get the crop, the prices are very good,” said Mayor Don Knibbs, who grew up on a local farm and moved back to Stoughton after spending a few retirement years in Weyburn.

“Last year was the best this community has ever seen for prices. It’s a farming community and there are benefits for the farmer having mineral rights too.

“Stoughton is a great place to raise kids and for parents to have good jobs. We have a great new school, lots of recreational facilities and a new retirement home.”

Stoughton has also built a new curling rink recently and revitalized the pool and skating rink thanks to additional funds raised from the emerging oil and gas economy.

Stoughton’s population continues to rise from 653 in the 2006 census to more than 800 today as the Bakken play takes hold.

“A lot of people who left the area and have done well, have come back to town to have a good lifestyle,” said Tom Sangster, chair of Stoughton’s Economic Development Committee.

“Stoughton is exploding,” commented Judith Riddell, executive director of Cornerstone Regional Economic Development Authority in Carlyle. “Every community in the area has been impacted. Retailers are doing well, but some businesses can’t find employees.

“Other problems include lack of living accommodations and we may even have a water shortage.

The oil and gas industry use a lot of water.”

In 2004, there were only 24 Bakken wells drilled and in 2007, that figure jumped to 311. In the first three and half months of 2008, 148 more wells had been drilled. There are now over 40 drilling rigs operating in the Stoughton area alone. You can see them from the highways in the area.

Riddell reports since 2006, the province has raised more than $200M in land sales for 27 townships comprising the RMs of Brock covering Arcola ($71.2M), Tecumseh, which encompasses Stoughton ($128.9) and Moose Mountain including Carlyle ($2.75M).

In the June sale of Crown oil and gas rights, Windfall Resources Ltd. purchased a 150-hectare parcel of land six kilometres north of Stoughton for $6.3 million at a record $42,550 per hectare. ɸ Page B2 Nickle’s Energy Group Suite 300, 999 8 Street SW Calgary, Alberta, Canada T2R 1N7 Phone: (403) 209-3500 • Toll Free: 1-800-387-2446 Fax: (403) 245-8666• E-mail: info@nickles.com www.nickles.com NICKLE’S ENERGY GROUP PRODUCTS AND WEBSITES Daily Oil Bulletin Canadian Oil Register Rig Locator Nickle’s P.O.S.T. Report Energy Analects Energy Evolution DOB Magazine Oil and Gas Statistics Quarterly Petroleum Explorer Weekly Energy Bulletin New Technology Magazine

Nickle’s Energy Group is owned by Business Information Group, a leading Canadian information company.

www.dailyoilbulletin.com www.canadianoilregister.com www.nickles.com/rig www.nickles.com/post www.energyanalects.com www.energyevolution.ca www.dobmagazine.nickles.com www.datacentral.nickles.com/statsq www.explorer.nickles.com www2.canadianoilregister.com/web www.ntm.nickles.com

B2

PIPELINE NEWS July 2008

Stoughton amid its wonder years ɺ Page B1 “One of the benefits is the buzz we’ve got going,” said Riddell who attended the Global Petroleum Show in Calgary June 10-12 to promote the southeast Saskatchewan area to would-be investors.

“On a broad spectrum it’s the southeast area where industry has grown along with the demand for commercial and industrial properties.

Smaller homes that may have sold for $10,000 in the Stoughton area five years ago, have sold for $90,000.”

As a member of the Saskatchewan Urban Municipalities Association, Stoughton Mayor Don Knibbs recently attended a course on how to manage a boom economy.

“We went through all the processes of managing the boom, but the end result, which I didn’t like, was a crash,” he said. “You have to manage it step by step and not go overboard but it’s inevitable that it will end.

“The biggest change in the past few years is

population growth. We’re looking a total population of 1,200 in a few years. I see people here every day that I don’t recognize.

“We are getting calls from people in B.C. and Alberta about jobs, investments and real estate. We got a call recently from a guy in Montreal who just bought a house in the area. A lot of older homes are selling like hotcakes.

The market has probably tripled from a couple of years ago.”

“What the town needs is new building lots,” said Sangster. Any residential, commercial or industrial property that was available has been bought up.”

Mayor Knibbs reports council recently approved the sale of a chunk of serviced land at the north end of town to an Alberta developer, Winalta Inc., to build 17 new homes on lots serviced by the town. The first home is nearly complete. ”Our part is to pay for the water and sewer services,” said Knibbs.

“We’re not realtors, so we had a chance to go

with this developer and get some new housing quickly.”

The town has also made a commitment to annex some RM land for future residential, commercial and industrial development. Opportunities abound.

“One of the things I am trying to encourage is the development of new buildings,” said Sangster.

“A lot of companies have a lot of equipment that has to be kept indoors in the winter.”

Sangster tested the market himself by partnering in the construction a new truck wash built with four shop bays that were snapped up.

Sangster also sees investment opportunities for someone wanting to set up an industrial and farm tire shop along with new franchise restaurants and clothing stores.

“We are the centre of the Bakken play. We’ve been a town that’s never been the focus of the oil and service industry like Estevan and Weyburn,”

said Sangster. “We can draw some of that service industry to set up shop

here.

“We still have a small town lifestyle which I

think can be attractive to young people and their families.”

Mayor Don Knibbs and Tom Sangster, chair of the Stoughton Economic Development Committee.

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PIPELINE NEWS July 2008

B3

REDA is a gold mine of business information Carlyle – If you want to set up or grow a business in Stoughton, start by mining the nuggets of resources from Cornerstone REDA at the town office in Carlyle

or visit www.creda.sk.ca online. REDA can provide small business loans of up to $15,000 through its Regional Small Business Loans Association.

REDA’s mission is to

facilitate and enhance business and economic development in a catchment area that stretches from the Manitoba border, west to Stoughton and south to Estevan.

According to Judy Riddell, executive director of REDA, Stoughton acquired $14,600 for a feasibility study that led to the construction of a new $2.4 million feed mill called Stoughton

Feed Processing Inc. in 2004. REDA has made loans to three other small businesses in Stoughton and more may be coming as the area booms.

Stoughton’s REDA representatives are Borden

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The boom in economic activity in the Stoughton area led to a new job for town clerk Sheila Guillemin who is kept busy with paperwork.

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Stoughton is in the epicentre of the Bakken oil play. Advance Drilling Ltd. has an active rig just south of the community on Highway 47.

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REDA is also a partner in Bizpal an online service providing businesses with one-stop access to permit and licence information for all levels of government. Go to www.bizpal.gov.sk.ca to cut document research time and get into business quickly.

REDA has launched the Newhope Legacy Community Foundation with charity status as an investment option for local individuals to donate or dedicate personal, family or inherited funds to establish a revenue pool to fund community project goals. Community Foundations collect, invest and distribute funds that might otherwise go to projects in larger centres.

Cornerstone REDA is one of the partner groups with office space at the Business Enterprise Centre in Estevan.

BEC has a wealth of information and access to programs and services from the provincial and federal governments and financial institutions.

BEC is the place to go for one-stop business registration.

B4

PIPELINE NEWS July 2008

Innovative fracing drives Packers Plus growth

“

We are the pioneers of stimulating different zones.

- Rob Peloquin

By Geoff Lee Estevan – Fracing is us. This unofficial slogan neatly sums up the sole business function of Packers Plus Energy Services Inc. in Estevan.

Packers has been fracing for five years, but its business and the Bakken drilling boom took off when the company successfully tested its proprietary StackFRAC multi-stage fracturing system with Petrobank.

The system allowed for multiple fracs with proven production increases.

Other oil companies jumped on the bandwagon and the rest is history.

“The Bakken formation is so tight that it has to be fraced,” said sales manager, Rob Peloquin.

“Fracing increases production. What it does for the zone and for oil companies is huge because a good part of the drilling is Bakken licences.”

Fracing materials are a blend of gel, sand and water applied under pressure through frac ports in the system to create large artificial fractures extending from a wellbore, allowing oil to flow to the wellbore.

“If you have a Bakken well that hasn’t been fraced it will make next to nothing for oil pro-

Sales manager Rob Peloquin says sales of his company’s StackFRAC system have been substantial since the company successfully proved its capability to substantially increase oil production with multiple fracs two years ago.

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duction,” said Peloquin.

“If you look at a standard frac and how it was done in the past, we have probably increased production three times through stackfracing. We are the pioneers of stimulating different zones.”

A StackFRAC system allows custom stimulation of the entire wellbore and cuts completion time to as little as one day. As the sales brochure states, “This innovative, field-proven system greatly increases the effectiveness of fracturing operations by mechanically isolating selective intervals designated for treatment and producing a distributed placement of stimulation fluids throughout the desired area.”

The key parts of the system are the open hole packers, another Packers Plus innovation.

“A packer is an isolation tool that hydraulically sets the system in place,” said Peloquin.

“Rubber elements go up against the rock in formation. If the rock is tight where you get isolation, these things work

incredibly well. It’s a perfect system for the Bakken.”

Packers Plus over-

sees the installation after rig crews remove their drill string. An open hole reamer cleans out the

wellbore to the outside diameter of a Packers Plus system. ɸ Page B11

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PIPELINE NEWS July 2008

Colonia ¿rst quarter revenue soars in Bakken Midale - What a difference a year makes for Colonia Energy Corp.

Focusing its activities on the area of Florence South in southeastern Saskatchewan has paid off the Calgary-based oil and natural gas producer.

Over the past year, the company has assembled an inventory of prospects focused primarily in three main areas of the Williston basin: Midale prospective acreage in the immediate area of Florence South, Bakken prospective acreage in the emerging southeastern Saskatchewan Bakken fairway, and several Mississippian Charles formation prospects in northwestern North Dakota.

Revenue for the three months ended March 31, 2008 was $1.2 million, up an astounding 401 per cent from $239,195 reported for the first quarter 2007 while cash flow from operations was $811,915, almost 10 times the year prior. Net earnings climbed to $354,836 for the quarter from a loss of $27,119 in the first quarter of 2007.

Colonia’s production for the first quarter 2008 averaged 154 bbls consisting of 118 boepd a day of light sweet oil, 196 million cubic feet a day of gas and three bbls per day of natural gas liquids.

The majority of Colonia's production base consists of high quality 40 degree API sweet crude which received an average price of $98.06 per barrel for the quarter while the average price received per barrel oil of total production was $85.67.

Colonia also reported that, in its Florence South land base, two 37.5 per cent working interest wells were drilled and placed on regular production through the company's central battery facilities.

The first of these wells came on-stream in late January at a rate in excess of 100 barrels of oil per day and the second commenced production in late March at

initial rates of 30 barrels of oil per day.

In mid-May, the company drilled an additional 50 per cent working interest oil well on its Florence South acreage, with indicated productive capability in excess of 100 barrels of oil per day.

In addition to continuing its growth through the drill bit, Colonia said its strong balance sheet enables it to selectively review both property acquisitions and corporate combinations.

Information courtesy www.dailyoilbulletin.com

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PIPELINE NEWS July 2008

An Advance rig manager oils the Àow, moves the crew Geoff Lee Stoughton – In another life, Dave Shewchuk, the relief rig manager and a driller on Advance

Drilling Ltd.’s number 6 rig might have been a wagon train master. He knows how to set up and break camp as it were, and move on to the next

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drill site.

The Pipeline News caught up with him at modern day encirclement on Heward Road, the morning of day eight of a 12-day drill with oil and conversation set to flow.

The coffee pot was brewing too. It was a day off for Devin Hala, the regular full-time “push” (short for tool push) as rig managers are called.

A rig manager, I learned from Shewchuk, is in charge of the drill-

ing crews, the equipment and the overall drilling operation that a company like Advance runs 24/7 on three shifts. A fourth crew is on days off.

“We have to send a morning report to our office and to make sure the rig is running good and that everyone is doing everything they are supposed to,” said Shewchuk of his role. “It’s also our job to look after the safety of our guys. Out here, all of our drillers are

Geologist Kelly Schell looks through a microscope to evaluate “cuttings” from a mud sample to tell him what part of the formation the drill is in. Schell is contracted to Crescent Point Resources Ltd.

really experienced so it helps a lot.”

Shewchuk is on call

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round the clock and if there’s an issue on his shift, he might phone field supervisor Bill Devins in Estevan for help. Devins monitors all of the rig vitals with his Paceon data system and he oversees field safety.

“We have an excellent safety record,” said Devins. “I attribute that to the good hands we’ve got. We’ve had lots of good personnel coming our way.”

An Advance 6 drill crew includes a derrickhand, two floorhands, a motorhand and a driller like Shewchuk.

When wearing his relief rig manager’s hat, Shewchuk says the most frantic times are moving days. “You have to line up all of your cats, backhoes and trucks and make sure everything is ready to go when the rig is torn out.

“As long as it’s dry, it’s really good. If it’s wet, you need extra cats. On a close move, it only takes a couple of hours. With us drilling for Crescent Point, we mostly never move more than four or five miles. Usually, when we are drilling it’s pretty ɸ Page B7 laid back.”

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PIPELINE NEWS July 2008

B7

Moving the crew Advance Drilling Rig continued Éş Page B6

gone from home all the time.â&#x20AC;?

Shewchuk lives in Storthoaks and the day Pipeline News visited rig 6, Shewchukâ&#x20AC;&#x2122;s wife and three kids were still snoozing in his trailer during a rare family stay over.

According to Advanceâ&#x20AC;&#x2122;s general manager Ron Mowbray, it wasnâ&#x20AC;&#x2122;t always that way when it came to the type of horizontal drilling done in the Bakken. â&#x20AC;?Years ago, youâ&#x20AC;&#x2122;d shudder if you heard you were doing a directional because you knew the tools would be failing and youâ&#x20AC;&#x2122;d be tripping in and out of the hole,â&#x20AC;? said Mowbray. â&#x20AC;&#x153;Now, all of the companies - your mud companies and stuďŹ&#x20AC; have such good products that make it easy. It runs like clockwork.â&#x20AC;?

Advance rigs employ ďŹ ve-man crews and also have an available geologist like Kelly Schell whose job it is to ensure the crew steers the drill into the best â&#x20AC;&#x153;payâ&#x20AC;? and to report to the government and Crescent Point on his evaluation of the well. â&#x20AC;&#x153;You want to stay in the best porosity and drill to get the best well. Youâ&#x20AC;&#x2122;re trying to track the diďŹ&#x20AC;erent parts of the zone and pay areas,â&#x20AC;? said Schell.

A drill bit cuts the Above:

â&#x20AC;&#x153;My kids want to baby and he doesnâ&#x20AC;&#x2122;t know see me so the wife brings what he thinks yet.â&#x20AC;?

The scenery has them up for the night,â&#x20AC;? said Shewchuk. â&#x20AC;&#x153;My son (two and a half ) loves coming out and seeing the blocks go up and down and my little girl (sheâ&#x20AC;&#x2122;s six) likes playing on the computer. We also have a

changed for the next family visits, as rig number 6 is already hard at work

drilling at another location for Crescent Point.

Wagons west!

Two of the main tasks for the rig Ă oorhands are torqueing pipe for drilling and unlatching the rig Ă oor to allow for another section of pipe.

Left: Relief rig manager Dave Shewchuk who is a driller when full-time rig supervisor Devin Hala is off, paused for this photograph while explaining the role of a rig manager to Pipeline News.

rock and the mud system circulates it to the surface for Schell to analyze and determine if the drill is in the target area. He examines dried samples taken every ďŹ ve to 10 metres.

Aside from Schell, thereâ&#x20AC;&#x2122;s a water hauler, a vac hauler, two directional hands and an engineer in camp.

During drilling, Shewchuk ensures his crew is ready for their next connections and keeping the rig clean and safe. He has been in the business for 11 years starting as a roughneck for Big Sky and working his way up. Heâ&#x20AC;&#x2122;s been â&#x20AC;&#x153;relief pushingâ&#x20AC;? for Hala for three years when heâ&#x20AC;&#x2122;s not drilling. About the job, he said, â&#x20AC;&#x153;The money is great. Itâ&#x20AC;&#x2122;s a good job.

The worst part is, you are

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PIPELINE NEWS July 2008

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Midale - Painted Pony Petroleum Ltd. has corralled 82,500 acres of land in southeast Saskatchewan where the Calgary-based company is drilling on a number of fronts for light, sweet oil in Midale, Frobisher, Alida and Birdbear zones.

Painted Pony has also drilled 19 (7.35 net) Bakken horizontal wells to date: 13 (4.5 net) were producing as of April and ďŹ ve (2.6 net) additional wells are to be completed and put on production.

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second, third and fourth quarters, and is currently drilling three (1.1 net) wells.

Its ďŹ rst-quarter output to March 31, 2008, reached 13,480 bbls of light crude oil, of which approximately 58 per cent was produced during March. Crude oil sales were from 13 gross wells (4.5 net wells) in the Midale, Kisbey and Alameda areas.

Like other companies in the Bakken, Painted Pony is using multi-stage frac technology to improve production, reduce water production, increase recoverable reserves and improve economics in the Bakken (see Pipeline News story on Packers Plus).

Painted Pony is also busy in Kisbey, near Stoughton, where it has drilled 10 (2.75 net) Bakken horizontal wells to date and there is the possibility for 15 (3.5 net) more development wells in the last three quarters

of the year.

A central battery and gathering system scheduled to be constructed by the end of the second quarter is expected to lower transportation and operating costs.

The company reports a recently completed saltwater disposal well will also lower costs and a gas plant planned for early 2009 could add 15 per cent more production and reserves.

During the ďŹ rst quarter of 2008, Painted Pony drilled 11 (3.74 net) horizontal operated wells targeting the Bakken with a 100 per cent success rate. To date, the company has drilled a total of 19 (7.35 net) horizontal operated wells targeting the Bakken.

At Midale, Saskatchewan, the company has drilled nine (4.6 net) Bakken horizontal wells with the potential for 18 (10.8) more in the last three quarters of 2008.

Information courtesy www.dailyoilbulletin.com

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PIPELINE NEWS July 2008

RM police panned

By Brian Zinchuk Lone Rock – Not everyone is pleased with the idea of a municipal police force for the RM of Wilton, which Pipeline News profiled in our June edition. Nadine Bexson takes issue with the way she has been dealt with by the Wilton Police Service, and its entire existence.

Bexson and her husband operate Flame Enterprises, a small oil and water hauling firm based in the hamlet of Lone Rock, just southeast of Lloydminster and in the RM of Wilton. Their property was the one mentioned in last month’s story as an unsightly property that was cleaned up.

“The way they’ve treated us is just wrong,” she says.

A civil lawsuit has ensued as a result, she says.

Bexson takes issue with the way Wilton Police Chief Mark Chupik handles enforcement as well as the RM’s maintenance of roads. Some things are a cop out, no pun intended, as she says roads on the Alberta side of the border run with full loads.

The Wilton Police Service was founded in 2006 primarily to make sure the roads in the RM are not pounded to smithereens by overweight trucks, and to enforce traffic safety.

When asked if it was acceptable for trucks to run overweight, Bexson says, “No, it’s not. You try your best not to be overweight. The majority of these truckers are trying to make a living.”

She says the Wilton Police Service is spending too much time worrying about cats and has been bullying truckers. “I think they need to worry about the big problems,” she says.

Chupik responds by saying the matter is before the courts, and can’t comment on Bexson’s complaints at this time.

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PIPELINE NEWS July 2008

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Twelve of thirteen new houses due to oil

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By Brian Zinchuk

Maidstone â&#x20AC;&#x201C; â&#x20AC;&#x153;Oil, oil, oil, oil...â&#x20AC;?

Thatâ&#x20AC;&#x2122;s how Maidstone general contractor Rodney MarďŹ&#x201A;eet describes the reasons behind the new housing on the northeast corner of Maidstone. As he points to each of the 13 houses on the cul-desac, all but one are there because of oil-related employment. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re turning

down jobs that ten years ago we would have given our eye teeth for,â&#x20AC;? he says, putting down his tool belt to go for lunch.

In 2007, Maidstone issued 12 residential housing permits totalling $1.7 million, and one commercial permit worth $150,000. For the ďŹ rst ďŹ ve months of 2008, there were seven residential permits worth $1.1 million in total, and a commercial

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Don Wildeman, the townâ&#x20AC;&#x2122;s administrator, says there is a private developer who is looking to expand another 37 lots for the community. Thereâ&#x20AC;&#x2122;s also another eight-unit trailer court subdivision that will go on sale this summer. Thatâ&#x20AC;&#x2122;s a substantial number for a community with a population close to 1250. â&#x20AC;&#x153;He can start a basement and the house will be sold,â&#x20AC;? Wildeman says of the developer. â&#x20AC;&#x153;We have zero vacancy in town.â&#x20AC;?

While there was some concern about Maidstoneâ&#x20AC;&#x2122;s prospects when Highway 16 was diverted around the north end of town, the sustained strength of the oilpatch seems to have dampened any effects. Indeed, right beside the new houses sits a new integrated health facility â&#x20AC;&#x201C; Maidstone Health Complex. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re a really fast growing town. We canâ&#x20AC;&#x2122;t keep up with demand,â&#x20AC;? says Wildeman.

When town ofďŹ ce staďŹ&#x20AC; is asked what percentage of the community works either directly or indirectly with the oilpatch, the question has them stumped. â&#x20AC;&#x153;I canâ&#x20AC;&#x2122;t think of anybody who doesnâ&#x20AC;&#x2122;t,â&#x20AC;? is the reply. Perhaps the fact Mayor Valorie Kenyon works at the CNRL battery just north of town is indicative of the importance of heavy oil to the community.

Indeed, Barb Campbell, manager of the Sandpiper Motel says the loss of having Highway 16 running right past the motel didnâ&#x20AC;&#x2122;t have much effect. â&#x20AC;&#x153;Our business is 99 per cent oil,â&#x20AC;? she says. â&#x20AC;&#x153;Thatâ&#x20AC;&#x2122;s our biggest business â&#x20AC;&#x201C; crews and the odd construction worker.â&#x20AC;? â&#x20AC;&#x153;These guys stay long term and they get priority.â&#x20AC;?

PIPELINE NEWS July 2008

B11

Packers Plus excelling in Bakken formation Éş Page B4 â&#x20AC;&#x153;The hole conditions are great for us because of the OD (outside diameter) tools that we have,â&#x20AC;? said Peloquin. â&#x20AC;&#x153;When we do a clean out and put our system in the ground, our failure rate is slim to none. The Bakken is agreeable with how we run our system.â&#x20AC;?

Packers Plus designs

its systems in Calgary and has sold the majority of multiple frac tools used in the Bakken. Surprisingly, the system stays in ground after use as itâ&#x20AC;&#x2122;s too costly to pull out. â&#x20AC;&#x153;The system has to be designed to add future use to the well,â&#x20AC;? added

Curtis Dixon cleans the inside of a frac tool sold to oil companies in the Bakken. Packers Plus moved into a new building on Highway 39 west last month to keep up with business.

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Packers Plus was launched by Peloquin and Tim Fisher in 2000.

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PIPELINE NEWS July 2008

Penn West uses tech to boost production Estevan - Penn West Energy Trust has its sights set on

horizontal drilling and CO2 as ways to boost the trust’s enhanced oil

recovery (EOR) efforts in southeast Saskatchewan. At the company’s

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recent annual meeting, president and chief operating officer Murray Nunns was quoted as saying, “Our resource plays involve tight sands, gas shales, tight oil and coalbed methane (CBM). We think this is the logical direction for Penn West for the next couple of years.”

Nunns said Penn West’s tight oil play in southwest Saskatchewan is an example of the future direction of the trust, noting the horizontal, multi-stage frac play targeting the Lower Shaunavon formation is set to evolve

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into a strong producing asset.

The company has plans for 35 wells this year. Nunns added that the success from the 2008 program will add approximately 300 drilling locations for 2009 and beyond for the company.

Using horizontal technology, Penn West is achieving initial rates of between 200 and 300 bbls per day.

Penn West is the second largest producer in Saskatchewan at about 45,000 bbls of oil equivalent per day.

It hopes to increase output in southeast Saskatchewan, where it has several smaller light oil fields which produce about 15,000 bbls per day, by adding to its current EOR program.

Penn West is also hoping to partner with the Saskatchewan gov-

ernment and SaskPower that are developing a CO2 capture project at the Boundary Dam (plant) near Estevan.

Penn West envisions using captured CO2.

SaskPower plans to spend $1.4 billion to replace one of six aging units at the 860 megawatt (MW ) Boundary Dam plant with a new 100 MW clean coal unit which would capture CO2, reducing greenhouse gas (GHG) emission effectively to zero.

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In other news, Penn West assimilated its acquisitions of Canetic and Vault Energy Trust, adding over 75,000 BOE of production to the company.

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PIPELINE NEWS July 2008

B13

Hey Girls...

Just wanna have fun!?

Oil wives Club of Estevan new executive for 2008-2009

Join the Oil Wives club of Estevan, a social club for women whose significant others work in the oil patch.

We understand relocation and how hard it may be to meet people in a new town.

With our long established â&#x20AC;&#x153;Links of Friendshipâ&#x20AC;? via over 30 clubs in B.C., Alberta and Saskatchewan, you will always have a group of friends wherever the patch may take you and your family.

Our motto is â&#x20AC;&#x153;Fostering Friendshipâ&#x20AC;? and we meet every third Thursday of the month... just to have fun and a meal.

Come out and meet with women who share similar interests and take the opportunity to make life-long friendships.

For more information call Cindy Beaulieu at 634-4970 or Connie Spencer at 634-1012

Back L-R: Marie Hoffort - Treasurer, Susan Mack - Membership, Lynn Hagen - Social Services, Maxine Devins - Progtram, Lori Gonas - Secretary, tina Hauck - Reservations, Erin Gervais - Program Front L-R: Cindy Beaulieu - Past President, Kelly McConnell - Vice-President, Connie Spencer - President

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B14

PIPELINE NEWS July 2008

Motorhands, derrickhands and drillers Swift Current -Workers registered as apprentices in the patch may be referred to as either Rig Technicians 1, 2 or 3, but theyâ&#x20AC;&#x2122;re more commonly known as the motorhand, the derrickhand and the driller.

Along with having physical strength and stamina, rig technicians should also possess a desire and an aptitude to work with machinery.

Normally an apprentice will spend at least a year in each position. The full term of apprenticeship is three years including a minimum of 1,500 hours of on-the-job training and four weeks (30 hours per week) of technical training each year.

Motorhands According the Alberta Learning Information

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Service and industry training service Enform, motorhands maintain all the rig engines and transmission and heating systems. They also provide regular maintenance to diesel electric generators and hydraulic systems.

The motorhand has some paperwork to do while maintaining all the equipment logs and monitoring inventory levels for fuels, oil ďŹ lters lubes and greases.

The motorhands work under the direction of the derrickhand and the driller while also supervising, training and working with the ďŹ&#x201A;oorhands. The motorhand is also actively involved in rig-up and tearout.

Derrickhands Derrickhands operate and maintain drilling ďŹ&#x201A;uid systems and pumps during drilling. They also mix ďŹ&#x201A;uid chemicals and additives and handle drill string.

They have a little paperwork to do as well when monitoring and recording mud ďŹ&#x201A;ows. They work under the direction of the driller and also participate in rigup and tear-out.

Drillers Drillers supervise the rig crews and the operation of the drilling equipment, ensuring that everyone work safely and eďŹ&#x192;ciently. The drillers report directly to the rig managers. They also operate the draw-

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works, rotary equipment and pumps and supervise the assembly of drill string. The drillerâ&#x20AC;&#x2122;s responsibilities also includes keeping a record of drilling progress and communicating with well-site supervisors. The driller always keep a keen eye on operations and introduces any procedures, which may help the crew work more safely and eďŹ&#x192;ciently.

The pay According to the Canadian Association of Oilwell Drilling Contractors (CAODC) in October 2007: Motorhands are paid a base wage of $26.50 an hour plus a living or subsistence allowance (from $50 a day when in camp to $140 a day where there is no camp) Derrickhands on drilling rigs are paid a base wage of $31 an hour plus a living or subsistence allowance as mentioned above.

Drillers earn a base wage of $37.25 an hour plus a living allowance (as above).

Driller apprentices may take an interprovincial exam in the ďŹ nal period of their apprenticeship training to earn a Red Seal (a certiďŹ cation recognized in most parts of Canada).

Experienced rig technicians may move into rig management or other management positions in the drilling industry. Specialist companies may hire them as mud technicians or directional drillers, or move into drilling-related equipment sales, rig training, regulatory or safety positions.

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PIPELINE NEWS July 2008

B15

Leasehands and Ă&#x20AC;oorhands: what to expect If youâ&#x20AC;&#x2122;re looking to get onto a drilling rig chances are really high that youâ&#x20AC;&#x2122;re going to start out as a leasehand or ďŹ&#x201A;oorhand.

According to the Alberta Learning Information Service and the industryâ&#x20AC;&#x2122;s training service, Enform, leasehands and ďŹ&#x201A;oorhands perform general labourer duties on rigs that drill for oil and gas wells.

Leasehands are the most junior members of the drilling crew, performing such duties as loading and unloading trucks, performing housekeeping activities -- like cleaning ice from walkways -â&#x20AC;&#x201C; and putting things away and cleaning tools. Leasehands also watch for hazards along travel routes and provide assistance to other crew members.

Like the name states, a ďŹ&#x201A;oorhand spends a lot of time working on the rig ďŹ&#x201A;oor. Most often there are two ďŹ&#x201A;oorhands but sometimes on smaller rigs there is only one.

The ďŹ&#x201A;oorhands are most often pictured using power tongs to connect and disconnect drill pipe as it is lowered or raised from the hole.

The ďŹ&#x201A;oorhands also help out in laying casing into a well after it has been drilled and catch samples of drilled cuttings to be analyzed. They also clean and maintain the equipment and assist other members of the crew.

Leasehands and ďŹ&#x201A;oorhands work outside year round and are subject to extreme weather conditions. Most rigs operate year round but employment is often seasonal for leasehands and ďŹ&#x201A;oorhands. Winter is the busiest season for drilling activity, so if youâ&#x20AC;&#x2122;re thinking of getting into the industry be prepared for some pretty frosty days.

According to the Canadian Association of Oilwell Drilling Contractors, the average salary for lease hands and ďŹ&#x201A;oorhands runs between

$21 and $24.50 per hour.

Annually, leasehands and ďŹ&#x201A;oorhands can make up to $70,000 a year but the

average annual salary is closer to $50,000 a year.

The work performed by leasehands

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PIPELINE NEWS Saskatchewan’s Petroleum Monthly

C-Section July 2008

There’s strength in Swift Current City growing like never before

By Stephan Burnett Swift Current - Swift Current’s economic development officer Marty Salberg nods his head and agrees that the city is facing the perfect storm: a stronger agricultural sector and a booming oil and gas economy.

Last year, in 2007, in excess of $70 million in building permits were issued “and that’s far in excess of anything in the history of the city,” he says.

For many years, the energy sector has been important to the City of Swift Current and with the increased oil and gas activity there are more and more Albertans looking to relocate to here.

“We sold more residential lots last year than in the history of the city,” says Salberg, explaining that while 70 lots were sold last year, another 90 are becoming available this year with 50 coming open by this summer.

“From the business side we’re seeing a lot of oil and gas companies looking into the possibility of relocating to Swift Current,” he says.

The City and Salberg are working hard to accommodate both the residential build-up as well as the industrial interest.

Close to two years ago the City sold most of its industrial properties but now there’s another 10 acres dedicated to industrial zoning, 2.5 of which is dedicated to an oil and gas endeavour with another 50 acres coming on board through the development of the Munroe Industrial Park.

“It’s in an ideal location with easy access only a couple miles from the TransCanada Highway and it should be available in late-summer to early-fall,” says Salberg.

And while the energy sector is very important to the city, the agricultural sector is also on the upswing.

“We have a lot of good farmers and ranchers in the area and Swift Current is a service centre for the entire region,” he says.

Investments being made From the service sector to manufacturing: Salberg points out that Modus Structures has expanded from Crossfield, Alta. and purchased a 100,000 sq. ft. facility to produce modular structures destined for Fort McMurray.

“They’re going to be in the 150-employee range, so that bodes well,” says Salberg.

From the commercial perspective there are new box stores taking advantage of the regional economy and a location on the TransCanada Highway, new motels being built, and a new casino and performing arts centre opening by the end of 2008, which will require an additional 250 employees.

With Swift Current growing like never before, Salberg admits there are a few challenges within his job but adds, “they’re good challenges to have.” ɸ Page C2

“

Last year, in 2007, in excess of $70 million in building permits were issued, that’s far in excess of anything in the history of the city

”

- Marty Salberg

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PIPELINE NEWS July 2008

‘Speedy Creek’ moving fast

“

It’s very important that the premier has spoken about holding the line on royalty rates. That’s given the oil and gas industry the impression that Saskatchewan is a place to do business - Marty Salberg

ɺ Page C1 With increasing deSwift Current’s economic development ofÀcer Marty Salberg mands for workers the City stands outside city hall in Swift Current. has put a lot of thought into how to attract more people.

Those thoughts have led to investments of $35 million in a new hospital, $15 million in a waste-water treatment facility and another $15 million in the Credit Union i-plex Arena, which includes a six-sheet curling facility as well as auditorium Construction along the TransCanada Highway, includes a new ho- space. tel and casino.

Salberg adds developers are underway constructing new multi-unit structures to help alleviate housing demands.

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at some of the lowest rates in Western Canada. “But when you add in the education portion it makes it a bit more challenging,” he says.

Charging ahead Swift Current is growing faster than it’s ever grown before and Salberg adds there’s no end in sight to the growth.

Still, even though Swift Current’s economic freight train is running down the tracks, the City is not resting on its laurels, as they attended the Global Petroleum Show this June in Calgary.

While highlighting the city to potential investors, Salberg says the administration’s goal is to “do what we can to provide business with what they need to succeed.

“We pride ourselves on having very little red tape and having a very quick

process on permits and land sales. That’s our job, without a doubt.”

To top it all off Swift Current is a community with virtually no crime, more park space per capita than any other city in the province and an excellent school system.

The icing on the cake?

Swift Current is the home riding for Saskatchewan Premier Brad Wall.

“It’s very important that the premier has spoken about holding the line on royalty rates. That’s given the oil and gas industry the impression that Saskatchewan is a place to do business,” says Salberg.

While the premier has to look after the entire province, “he’s fully aware of the assets held within the southwest, he’s pro-business and he’s marketing the province as a whole to areas outside the province.

“At the end of the day private business will develop the resources in the Swift Current region. We can succeed in Swift Current and employees and families can lead a very successful life here.”

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PIPELINE NEWS July 2008

She keeps on trucking

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Gull Lake entrepreneur operates 364 days a year

By Stephan Burnett

Arlene Kirwan stands in front of one of her water trucks a few miles south of Gull Lake.

Gull Lake - Arlene Kirwan has been trucking potable water to rigs in the Gull Lake-Shaunavon region for 15 years.

Along the way Arlene’s husband Ken has also helped out. Thus, the duo came up with the name K & A Enterprises.

Ken’s primary job now is working as a landman for Husky while Arlene has done most of the trucking.

“I’m full-time and my husband drives on his days off. I fill up the trailer for them to cook and shower and for drinking water,” she says.

She obtains the water from any papered sources, which states the water is safe.

Despite driving big trucks, Arlene says she doesn’t need a Class 1 driver’s license.

“I have a Class 4 license because I’m an EMT. I don’t need my air brake endorsement because I’m only running single-axis trucks,” she says.

Badger Enterprises growing with the times

By Stephan Burnett Shaunavon - Richard White the owner of Badger Enterprises has been in business with the company for 14 years.

“We essentially started out doing reclamation and expanded into pipefitting, hydrovacs, vactrucks, steamer trucks and the big picker,” says White White was a journeyman welder when he made the switch into reclamation, now the company boasts 12 full-time workers, most of whom work as truck drivers.

E

NORW

Over the years White says ’97 was a busy year and ’98 when prices went down was pretty tough. “’97 was very busy and my most significant year. We purchased three steamers that year and two crew trucks,” he says.

“It was a big step out we went from two guys to 20 guys in one year and I had a partner then Dave Wand. I bought him out in 2001.”

In 1999 business started picking up and since 2000 White says activity in the patch has

been pretty consistent.

Still, one thing that has changed in that times is the price of oil and the price at the pumps.

“I’m glad I’m working close to home. For employees fuel prices are pretty tough now,” says White.

And higher input costs can’t automatically be passed on to the customer.

“Some of the companies are tied into a contract and we can’t change it,” he explains.

Still business seems to be perking along.

“I believe right now there’s six rigs in the area and by late fall there will be a dozen in the area. I see the activity continuing in this area. It looks pretty good for the next two to five years.”

Arlene says the level of business is pretty steady right now with lots of drilling rigs in the area. She adds the higher cost of fuel has not really had an impact on her business as the cost of water has risen with the higher inputs.

The size of her business has also begun to grow.

“I’ve had two trucks until recently, I just bought another one. That’s good because if one breaks down I still have another,” she says.

There were times in the past when the truck broke down that she not only had to get it fixed, but after fixing it, she would have to stay up all night to get her water run completed.

Arlene adds it was just by accident that she got into the business, when one of her neighbours said she could take it over.

“I never thought I’d be able to do it to begin with and I never would have applied for it,” she says. “But we’ve been very fortunate to have the oil around here so we can live the good life on the farm.”

Mud on the leases is one of Arlene’s least favorite experiences.

“I hate the rain,” she says. “You drive on the lease and sit there and start getting towed around.”

Still there’s only been two occasions in the past 15 years when Arlene had to call home to say she couldn’t make it because it was storming too badly.

Even after all these years in the business Arlene still hasn’t lost her drive. She still works 364 days a year.

“I don’t work Christmas day but other than that it’s 364 days a year, seven days a week.”

This year Arlene didn’t even get a break in the spring.

“You can usually expect a break during spring break-up but this year they got permission to keep going,” she says.

These days you see a lot of smaller companies coming in to drill, Arlene says, whereas in the past the major oil companies played a large role in the region.

She concludes, “There’s quite a few companies that have sensitive projects where they only drill in the winter. But mostly they don’t shut down so I have to go rain or shine.”

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PIPELINE NEWS July 2008

Shaunavon eyes ethanol Organizers says region perfect for plant

Karri Sachkowski, corporate secretary for Cypress Agri Energy. Sits behind her desk at her ofÀce in Shaunavon.

By Stephan Burnett Shaunavon - The idea for an ethanol plant

for Shaunavon and area got started in 2002.

“It was part of the economic development committee and town of Shaunavon’s 10-year plan, and ethanol came up,” says Karri Sachkowski, corporate secretary for Cypress Agri Energy.

Cypress Agri Energy is the corporation representing the development of the ethanol plant.

In doing research on the ethanol, enterprise organizers found the Shaunavon region would be a perfect for an ethanol plant “because

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of high freight costs and lots of good water and the railway that goes through here,” she says.

Once the idea evolved and the research was done, a corporation was formed, a feasibility study was completed and a business plan was put together.

The plans are to develop a 150 million litre / year plant.

The corporation has already secured 130 shareholders, having provided another offering memorandum in September of 2007.

“We also recently applied to a federal program, the Eco ABC program and provincially we’ve applied to the Sask Bio program,” says Sachkowski.

“They give a percentage of funding for the amount raised through the community and farmers,” she says.

Overall the corporation needs $150 million to get the ethanol plant up and running.

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The project is currently in the fundraising stages.

“We’re looking for a financial partner and we have been meeting with potential senior debt providers,” says Sachkowski.

The financing for the plant has been made more challenging as a result of the credit crunch in the States and because of the lack of familiarity with ethanol plants in Western Canada.

Still, Cypress Agri Energy is targeting a fall sod turning for the project although Sachkowski adds that will depend on efforts to secure debt financing and additional equity investment.

Sachkowski adds profitability of the plant will be reliant on grain prices.

“You’re going to have up and down years depending on the commodities market,” she says.

When gathering research on the plant, Sachkowski says the group went on tours, some of them south of the border, to view the operation of ethanol plants in the U.S. -- with the one operational difference being “they use corn.”

After having completed several tours organizers began looking for a technology provider and elected to go with ICM, based out of Kansas. The engineer on the project is North American Construction (NAC) based out of Morriston, Ontario.

While ICM is the industry-leading technology provider for ethanol, NAC recently completed an ethanol plant in Ontario, says Sachkowski.

Once underway the ethanol plant is expected to provide 36 full-time jobs.

The job will include a mixture of grain handlers, as well as instrumentation people and several different levels of administration.

“As far as what it will do for our community, there are so many spinoffs for the trucking and the hospitality industry … as you can imagine and it’s an exciting time.”

Oil Wives Club nurtures belonging

Liz Johnson and Ad Hyswick, both long-time members of the Swift Current Oil Wives Club recently spent some time sharing their memories about the club.

By Stephan Burnett Swift Current - It was Jan. 28, 1959 when Liz Johnson attended the South Side Café for a meeting in Swift Current.

The café has long since gone but the club she joined remains to this day.

The club she joined then was the Swift Current Oil Wives Club, although she had already been a member of the Carnduff Oil Wives Club since 1956.

“I was there for 2 1/2 years and then we moved to Swift Current when the girls called about a coffee and I went to it.

“There were 18 girls who attended,” says Johnson.

In order to become a member 85 per cent of your income had to be derived from the production of oil, she explains.

Since the late 1950s when Liz joined the rules have been relaxed. Now members can derive their income either from oil or gas.

She explains the club was for social activities.

With the men away at work for such long periods of time it was appropriate for the wives to get together to cultivate friendships and generate a sense of camaraderie.

“Bonny Burnsworth was our first President and I was the first Vice President. They were later transferred and I had to move to President,” she says.

From Swift Current, Liz and her husband Mel were transferred to Calgary and then on to Olds, AB where she lived for 34 years.

While in Olds, the other club members sent Liz’s name into the umbrella association – the Association of Oil Wives Club (AOWC) – “and I was on that for seven years,” she says.

“In Olds we did the banquet for the bonspiels.

We use to do big banquets for the Oil Men’s Bonspiels,” says Liz. Being a member of the club was “wonderful. I didn’t know a soul in Olds,” she says.

Along the way Liz has received her 25 year and 50 year pin from AOWC, along with a life membership.

Liz’s friend and fellow long-time members of the Swift Current Oil Wives Club, Ad Hyswick, explains that the club has it’s own constitution and bylaws.

All the meeting minutes had to be sent into the association.

“And they were fussy,” says Liz, “Oh, yes,” adds Ad, “All the I’s had to be dotted and the T’s had to be crossed.”

Along with dotting all the I’s and crossing all the T’s the club has a creed, a blessing and song, which is recited at the beginning of every meeting.

“A smile, a handclasp, a word of welcome are the links in our claim of friendship. This we believe,” reads the creed.

All of the meetings are dinner meetings, says Ad, while producing an invitation from 1964 for a dinner, which cost $1.75.

Along with many local events the club also featured annual conventions.

“The first convention I attended was in Regina in 1966 and then I had 35 years of perfect attendance at the conventions,” says Liz. “It’s meant a lot to me to belong.”

PIPELINE NEWS July 2008

C5

Rig 28 and the patch pros Rig manager and consultant lead experienced crew

OilÀeld consultant Elliot Smith keeps an eye on what’s happening down hole.

By Stephan Burnett Shaunavon – As a light sun shower lets up, 10 km northwest of Shaunavon, Lakota Drilling’s Rob Hemsing says the nine-to-five life is not for him.

The affable rig manager for Lakota Rig 28 adds the oilpatch was the right career choice for him.

Hemsing’s father and two uncles ran the drilling company that Lakota later bought in May 2005. Being a second-generation oilman has no doubt been an advantage to Hemsing while adjusting to the life of a rig manager.

Hemsing, who is originally from Rolling Hills.

Alta. and now hangs his hat in Chestermere, Alta., says there’s no set rotation to his work. His workers however do a shift of two weeks in and one week out. While at work they pull 12-hour shifts, but that’s not exactly how it works for him.

“For myself there’s no set rotation. I sometimes do three to four weeks before taking some time off.

I just took a month off, so that was good. I simply take what’s available,” he

says.

Hemsing’s been working on the job in the oilpatch for a little over12 years and during that time the one aspect that has changed more than any other is attention to safety.

“I have to make sure the guys go home in one piece, but the equipment is safer and the engineering has played a big role in that. The job is not really as hard as it used to be,” he says.

Overall the rig manager’s job is to take care of the drilling rig company’s interests on the site.

“Basically I take care of the rig and the guys,” he says.

On a typical day Hemsing gets up and does a motor report, checks in with the guys to make sure things are going well, checks issues involving preventative maintenance and keeps in constant dialogue with the rig consultant.

The most recent project was the replacement of a catwalk.

“It really varies on a day-to-day basis,” he says.

“If everything is going well it can be good but if not it can work out to be a very long day,” he says.

Along with running the crew and keeping an eye on safety, Hemsing can also take care of things in the mechanical department.

“I’m not a licensed mechanic but I can get things done and I’m qualified to run the equipment and make sure the oil company isn’t abusing the rig.”

Hemsing quickly adds most oil companies

are good to work with, “there’s a lot of coordinating and passing ideas between each other to improve safety,” he says, explaining that he and consultant Elliot Smith act as lateral partners on the site.

“I’m from ground up and he’s from the ground down and we help each other out. He’s got a lot of years of tool pushing experience.”

Along with the partnership with the consultant, Hemsing also relies on driller Kip McCarroll.

“He’s got a little over 10 years experience and he keeps an eye on things when I’m not around,” he says. Along with McCarroll, the rest of the team pulling an active shift includes derrick hand Justin Wilson, motorhand Joel Kleinsasser and floor hands Chris Isberg and Terry Nagy.

The consultant Elliot Smith has been around

the patch for quite a few years.

“I started working with the rigs in 1979 for Tri-City which later sold to Ensign and one-anda-half years ago I started consulting with Benchmark.”

With oil hovering around the $135 a barrel mark, Smith agrees that it’s boom times in the patch, “and there’s no telling how high it might go,” he adds.

Smith, who hails from Two Hills, Alta. says he does a three weeks in and one week out rotation.

The crew worked right through spring break this year. The Bench Road, providing access to the site, stayed hard, special permits were acquired and work continued.

“This is a very experienced crew. They’re scattered from all over. From Calgary, a few from Estevan and a couple from

Shaunavon.”

Smith says the job of the consultant is to make sure all the paperwork is done on time and to supervise activities on the rig.

“It’s basically supervision and taking care of orders and all the service and I call Pam (Kirwan) when I need to get test done on the mud and I take care of all the communications between Calgary

and here,” he says.

Pam Kirwan is contracted to look after the drilling waste management on the site and to ensure there is suitable disposal for fluids and solids.

It is also Kirwan’s job to test drill fluids for salinity, to supervise the vac truck and to meet with landowners to find suitable locations for water and for spray fluids.

Water gushes through the end of the pipe as Lakota’s Chris Isberg watches.

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PIPELINE NEWS July 2008

Greenslade 55 and growing Company president sees a window for growth in the Shaunavon region

By Stephan Burnett

Shaunavon - Greenslade Consulting has been in business for 55 years.

“It was started by my dad who had been doing welding,” Grant Greenslade, president of the company says.

In more recent years, Greenslade Consulting takes over basically where the rig manager leaves off, taking on tasks such as battery completions, workovers and abandonments.

“We cater to the small companies. In the small

“

We have five drilling rigs in the region now and I would expect to see 12 by Christmas - Grant Greenslade

”

companies there’s a mentality where every dollar counts and that’s not the way it is with the big companies,” he says.

There was a time when Greenslade had moved away from the family business. He worked for SaskPower for a while and went to university to attain his Bachelor of Science degree.

“I wanted to become an accountant,” says Greenslade but in the end, he decided the life of an accountant was not for him.

“I moved back in 1992,” he says.

Greenslade is now active throughout the southwest region of the province while picking up the occasional job in Alberta.

“Right now we have 14 employees not counting office staff,” he says.

Greenslade Consulting president Grant Greenslade sits behind his desk at his ofÀce in Shaunavon.

Greenslade adds the higher oil prices have brought about increased activity within the Shaunavon region. The higher oil prices pushed action on higher risk wells, along with completion techniques that produced greater flow. Fracturing the well to produce greater flow from the resource was one of the techniques involved, he says.

The techniques used to increase flow have allowed production in the Shaunavon region to take off. That activity has been noticeable over the last two years and especially over the past year.

“We have five drilling rigs in the region now and I would expect to see 12 by Christmas,” he adds.

The increased activity in the oilfield has also created some favorable conditions within the town.

“The housing market has basically doubled, but that’s the tip of the iceberg. We’ve seen some of the highest-cost land sold in this area. There were (mineral rights for) sections that went for $3.5 million,” he says. “That’s unprecedented around here.”

Also within the town Greenslade states the King’s Hotel has added another 10 rooms and there’s talk of other expansions.

“There’s still lots available. People are going to come here and entrepreneurs will come as well.

There’s a window for growth here.”

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PIPELINE NEWS July 2008

C7

Easier than falling off a tank

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Marsden – There may be ladders on the side of those big black tanks in heavy oil country, but that doesn’t necessarily mean they want people on top of these tanks when it comes time to move them. Pipemaster Oilfield Services of Marsden is currently manufacturing two products that do away with having to climb up top, and risk falling off.

Pipemaster manufacturers a self-loading tank trailer that has an arm meant to do away with climbing onto the tank. The saddle of the trailer is topped by a hydraulic arm that reaches over and grabs the top of the tank. It can extend or retract and change its angle as needed. Once the top of the tank is secured, it’s tipped over on its side, and ready to roll.

Otherwise, “Somebody has to climb to the top of the tank, walk across the roof and to tie chains to pull it over,” says Hal Wright, president of Pipemaster.

“It’s unsafe, for one thing.”

With this system, nobody has to get off the ground.

“We’re the only guys that build them, as far as I know,” says Wright.

The design was patented by Murray McDonald of Lloydminster, and Pipemaster builds them under licence.

They’ve built nine in the past eight years, but things are picking up. “What helped the most is Husky made it their preferred Hal Wright is the president of Pipe- method of moving tanks,” Wright master OilÀeld Services, which builds explains. That happened in early the trailers at its Marsden shop.

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They can produce a trailer in one and half to two months, Wright says. Both tandem axle and tri-axle models are offered. Wright says, “I’ve hauled up to 25-ft. wide, 32-ft. wide, 3000-barrel. capacity.”

Current clients operating this model tank hauler include Bry-Tan, Ridgid and T-Bar 1 in Lloydminster, L & L Oilfield in Marshall and Jaspers in Provost.

They’ve also installed the arm on some B & R Eckels units.

Lugging it A newer design is a lifting lug, meant to be welded to the top corners of the tank. With an angular trap, a sorting hook can be guided by way of a tag line to catch the lug when lifting with a picker truck. This again means no one has to go up top to hook up.

Wright says he’s talked to a few tank manufacturers about it. One declined, but another has shown interest, he says. Their manufacturing process makes it a little difficult to implement as it stands, however.

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PIPELINE NEWS July 2008

Breaking loose in the Viking

By Brian Zinchuk Kindersley - Precision Drilling rig No. 239 must be doing something right, because Reece Energy officials can’t say enough about how pleased they’ve been with the rig during their current drilling program.

“We’re seeing fantastic results out of the Viking formation,” says Wayne Deschner, Kindersley area foreman for Reece. “This area is going to break loose.”

Precision is sinking horizontal multi-stage frac holes, with eight to 14 stages each.

It’s a pattern similar to what is being used in the Bakken play, according to Deschner.

He says Reece is at the forefront of using the technique in the Kindersley area.

Their current drilling program calls for nine holes to be drilled north of Kindersley. Reece’s small light oil battery is being expanded to handle the additional inflow.

Reece has been public for three years now, and trades on the Toronto Venture Exchange under the symbol RXR. The company has a capitalization of $150 million, with 34 million fully-diluted shares. One quarter are owned by CEO Lorne Swalm,

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and another four per cent to other management. Around 7 to 8 per cent is owend by Hesparian Capital, and the rest is in broad distribution across Canada and internationally. Swalm says there’s healthy trading, with about 100,000 shares trading each day.

While its head office is in Medicine Hat, its operations are primarily in the Kindersley area and Southeast Saskatchewan.

Why Medicine Hat? Well, Swalm voted with his feet a few years ago, and moved out of what was then a NDP dominated Saskatchewan and one he says was unfriendly to business. Now, he doesn’t have too many kind words for current Alberta Premier Ed Stelmach, but a move back is not in the cards, with a well-established operation in Medicine Hat. “I would have never left if the current government had got in before I uprooted.

“Now with the changes in Alberta, and the change in government in Saskatchewan, Saskatchewan is booming,” Swalm says. Now he’s gathering up money from the rest of Canada to invest in Saskatchewan, he adds.

When asked what stands out the most about the junior company, Swalm responds, “We’re well-financed. We’ve got very little debt, the ability to raise money, and nice cash flow.”

He adds Reece has “great plans and projects bearing fruit.”

“We’ve been picking up land steady for one-and-a-half years,” he says, both crown land and freehold. “In the last year, we’ve put together net over 50 sections of ‘Bakken prospective lands.’”

Of that, half is with another company, and they are sharing a drilling rig working the Bakken play this summer. It’s all centred within 20 minutes of each other, just north of Weyburn, Swalm explains.

The other project is in the Viking formation, north of Kindersley and south of Dodsland.

“We have an area that has gas, and an area that ahs oil. We’re exploiting the oil part.”

With gas rising in price, he says they are thinking of drilling a little bit of gas, “whereas a couple months ago, it was none.”

They have a total of about 80 wells producing, about 35 of which are gas. Two are heavy oil, the rest are light. Reece has the equivalent of 19 staff, with ten in head office and nine in the field. “That number will be going up by 3-4 by the end of the year,” Swalm Precision Drilling rig No. 239 has been showing says, looking for geologists good results for Reece Energy with its horizontal drilling in the Viking formation. to battery operators.

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PIPELINE NEWS July 2008

C9

Winalta closes North Battleford plant

By Brian Zinchuk North Battleford – A North Battleford plant that manufactured recreational vehicles for decades before making a recent switch to oilfield camp facilities will be shutting its doors come September.

The plant has operated under several names and owners over the years – Vanguard, Peak Manufacturing and most recently, Winalta. Its specialty had been making campers under names like Terry, Kodiak, Vanguard and Frontier.

But the rising Canadian dollar was driving the RV manufacturing business into the ground. When Winalta purchased the plant in 2006, campers were abandoned as a product line, and the plant switched to manufacturing skid trailers for the oilpatch.

At the time, it was hoped money could be made in the oilpatch, with a lot more potential than the RV business.

The switch started with an interim line of heavy-duty campers/offices called Bruiser, but it was soon abandoned. More recently, the yard has been full of large skid-mounted trailers. While Winalta will remain in the business of building such trailers, they will no longer be doing it in North Battleford, according to a June 10 press release. Ninety-one employees are affected.

Winalta Inc. announced it will consolidate its North Battleford, Saskatchewan manufacturing facility to its Acheson, Alberta facility, located near Edmonton. Winalta will continue to produce its current industrial product line and expects increased efficiencies and profitability with the use of a single manufacturing facility.

Production at the North Battleford plant, which constructs industrial trailers, wellsite and camp units, will be totally integrated into the Acheson facility

by September 7th, 2008 and as such will cease operations at that time. Sumex Investment Banking has been retained to assist in the divesture of the North Battleford facility.

“The steps being taken today are a reflection of Winalta’s continued strategy to optimize production and maximize profitability. As demand of narrower 16 ft. wide homes has been shifting to the larger 20 and 22 ft. wide homes; utilization of the Acheson facility’s 16 ft. wide line for industrial units is now possible. We have focused a significant amount of our attention to production efficiencies at Winalta and consolidation of the two facilities will help optimize

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production and reduce costs,” says Winalta Inc. President and Chief Executive Officer Artie Kos. Austin Fraser, director of investor relations and communications, noted that quality of the product coming out of North Battleford was high, and indeed, was put on display during the recent Calgary Global Oil Show.

Fraser elaborates the key factor was the idle capacity at the Edmontonarea plant. Indeed, the North Battleford plant had a profitable first quarter in 2008, the first in a while. The plant has twice been sold out of bankruptcy in the past.

Fraser says the best case scenario is for the facility to be sold with the workforce in place. They are shopping it around, and have had previous expressions of interest that had not carried through.

The Saskatchewan government and United Food and Commercial Workers Union have been served notice of the pending plant closure that affects less than 100 employees. “We have great employees at the North Battleford plant, and this decision is not reflective of their skill, dedication and capabilities. This move is a prudent business decision for Winalta and gives us the opportunity to generate growth that allows our overall organization to thrive,” Kos says.

A labour shortage in the Battlefords may provide opportunities for the laid off workers, with skilled tradespeople in high demand in the community. “Those 91 will be absorbed real fast,” says Les Watch, president of Western Weld, a manufacturer located in the same industrial park as the North Battleford Parsons Industrial Park. “Without a doubt in my mind. There’s so many people looking for workers right now, both in housing and manufacturing.

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PIPELINE NEWS July 2008

Gilby: Nearly 40 years in heavy oil Lloydminster - He’s usually only in the office in the afternoons, but you’ll probably have to carry him out in a box before Lloydminster engineer Doug Gilby calls it quits.

“It’s the old story. You’ll have to carry me out of here. I don’t think I’ve ever come to work where I didn’t enjoy coming to work,” he says.

Gilby is the senior partner for BAR Engineering, based out of Lloydminster’s Glenn E. Neilson Industrial Park. The only remaining partner of the trio that started the firm in 1981, the engineer has been active in the Lloydminster oilpatch for nearly 40 years.

Before completing his degree, Gilby ran cats building leases in the early 1960s.

Graduating with a mechanical engineering degree in 1969 from the University of Saskatchewan, Gilby went to work with Halliburton in Lloydminster. “I’ve been here the whole stretch,” he says of Lloydminster.

Asphalt country In his early days, the Lloydminster region’s oil production was closely linked to asphalt production, according to Gilby. Exploration and drilling happened year-round, but production only went hard in the asphalt season, from May to October. The local refinery could make some diesel, but otherwise, “It was mainly asphalt country. Everybody was geared to the asphalt season.”

In 1973, Gilby went to Husky to work as a production engineer.

“The biggest shift has come in production,” he says, changing from beam-type pumping to progressive cavity pumps. “That really changes the whole area as far as the productivity.”

“It got to where there were areas – Frog Lake, Onion Lake, Luseland area – where oil was too heavy.

“Three to four cubic metres a day was a decent well.”

PC pumps meant a substantial increase in volume he says. Now a decent well produces 10, 15 or 20 cubic metres a day, he says.

In 1975 thermal plays started to be thought about, according to Gilby. “I was involved in Husky’s Aberfeldy steam flood.

“It was experimental at the time. It served a lot of purposes in that they got a lot of experience doing that,” he explains, adding, “It wasn’t very successful.”

But older, failed plays have potential now, he notes. “We’ll be going back into things like that in the future with $125 oil.”

The Pike’s Peak play north of Maidstone was a nice surprise. He notes that in 1978, “we designed that to have a five year life. It’s still producing remarkably well today.”

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Doug Gilby Outsourced opportunity The change in pumps also meant dealing with substantially more sand. There was a need for facilities that could handle sand. The changes in technology meant there was an opportunity for engineers to deal with the new model of heavy oil production.

For years and years, companies tried to stop sand production, using screens or gravel to hold the sand back. “What you did was hold production back,” Gilby explains.

It was a time when engineering became an outsourced operation.

Ron Wilhelm, Barry Ranger and Gilby formed BAR Engineering in 1981. Ranger left after a few years, and Wilhelm passed away in 2001, leaving Gilby as the sole founding partner. The current partners include Neil Noble and Kent Smith.

“There was nobody in heavy oil, no heavy oil consulting companies when we started,” Gilby says.

Their first major batteries were for Elan at Cactus Lake.

This period saw a dalliance in owning several wells with his partner. Those wells were spread from Maidstone to Macklin and Wainwright. It did not go well. At the time, they were getting $185 per cubic metre. Now it’s more around $625, he says, but in February, 1986, it was much less. “We got $45 per cubic metre.”

“That used to be the way things happened here. Oil would be hardly worth anything in the winter, then some in summer. They sold out in 1995 to a progenitor of what is now Baytex.

“We got some local people together, both some existing production, and at Wainwright drilled a few wells.” When they got out, he acknowledges it was, “certainly not the high point.”

The 1990s were not easy. “We fought our way through the 1990s,” he says. But getting out of producting opened other doors. A major expansion happened in 1995.

“It was one of those hurry up, let’s get it done,” things, he says.

The company also used to operate for several companies, including Halvar Oil, Piute Petroleum and Buttes Resources.

Time to think There were no eureka moments, where the company came up with some startling innovation. “I’d like to tell you yes, but no,” he says.

But most of their innovation came during slow periods. “When things would be slow was when we’d probably make the most money, coming up with ideas that would make money in the end. You’d have time to think,” he said.

His strength was the field work, while his partner handled more of the engineering end, Gilby says.

Over the years, there has been room from growth. “We are a production facilities design group. ” Gilby says. They do pipeline work, have an electrical division, municipal division and civil structural division. BAR Engineering currently employs around 60.

Their work includes SAGD facilities and treating batteries. “Husky, of course, is one of our major clients.”

“SAGD facilities are now our strength.”

Son joins firm There are two more company names on the side of the building. Shield Wireline and SonaDyne were both started in the early 1980s, shortly after the formation of BAR Engineering.

While SonaDyne is a pretty small operation with just one person providing liquid levels in wells, Shield now employs approximately 15 people. His son, Trevor Gilby, also an engineer, now runs it. Shield does production testing and bottom hole pressure survey.

Trevor had spent several years working in BC coal mines before his father convinced him to come back and be part of the business, Gilby says.

In recent years, Gilby has stepped back to a state of semi-retirement. During that time, BAR has expanded into municipal engineering and purchased PFM Engineering, adding a civil and structural component. It’s not too hard to cede control, “When you’ve got some good people like we have,” he says.

There is one challenge facing the industry, Gilby says. The oil industry needs to figure out how to reuse salt water in thermal processes instead of fresh water.

PIPELINE NEWS July 2008

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RM of Eldon implements multi-trip permits

By Brian Zinchuk Maidstone – The RM map may show a tight web of gas lines just to the north of Maidstone, but make no mistake,

heavy oil is where it’s at with the RM of Eldon No. 471.

Eldon surrounds Maidstone, and is intersected by Highway 16 in its southern portion.

RM of Eldon Administrator Ken Reiter and Reeve Garry Taylor may have a millstone in front of the RM ofÀce, but the big money in this RM these days is from heavy oil.

According to its reeve, Garry Taylor, one third of the Saskatchewan side of the Lloydminster oilpatch is in Eldon.

“Some places had close to 500 trucks a day,” he notes of the heavy oil traffic.

There are 17 miles (27.3 km) of recently paved municipal roads in the RM, and plans to do another eight miles (12.9 km) this year.

There are eight batteries spread throughout the RM. A large portion of the northern edge is owned by Thunderchild First Nation, some of which is under reserve status.

“Transportation is our main thing. We have to have so much infrastructure.

Our roads are our pipelines to the batteries.

“Our roads are a financial pipeline for the province for the royalties of oil,” Taylor says.

Taylor says $75 million in royalties were collected by the

province two years ago, when oil was substantially lower.

RM Administrator Ken Reiter says the biggest issue facing the RM is the “negative road impact.”

The RM’s annual budget is $9.9 million, of which $7.1 million goes to transportation.

Most road allowances are developed, as op-

posed to dirt buffalo trails. The RM operates six graders, and a number of loaders, backhoes and scrapers. “[On] a good rainy day, we’ll spend more on grave in one day than some RMs’ yearly budget,” says Taylor.

The RM does get some money out of the provincial Roads to Resources program, but

not enough, according to the reeve. “Do we get some out it? Yes. Do we get our fair share? No.” he says. “We’ve got 138 km of road with over 100 heavy trucks a day.”

This year’s roadwork includes paving of Highway 684. “It’s expensive to do, but it’s going to save us a lot of money,” he says. ɸ Page C14

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PIPELINE NEWS July 2008

From one truck to ten ... in a year

Fast paced growth for Tierra Alta Story and photo by Brian Zinchuk

Lloydminster – On June 28, 2007, Tierra Alta The oil around Lloydminster is very similar tion engineer from Venezuela. She’s spending had one truck based in Lloydminster. to Venezuela, he says. There they try to hold the several weeks here learning about local producBy June 28, 2008, that one truck had turned sand back, using gravel packs. That method has tion. into ten, plus a welder and “We were the first coma bander. Tierra Alta has pany to actually manufacbeen growing at a pheture there,” Rowan says. nomenal rate, identifying Tierra Alta started in a niche market that, acCanada in the spring of cording to company rep2006. In Lloydminster, resentatives, was in subthey are distributing prodstantial need of servicing. uct. That grew into another While progressive cavity venture – servicing coiled pumps and artificial lift rod. systems are their princiRowan notes the coiled pal lines, Tierra Alta has rod manufacturers had run gotten into the coiled rod into a brick wall on sales unservicing business in a til more servicing capability big way. came online. “You can’t get “I just brought back it out of the hole with a serour ninth truck from vice rig or flushby.”

Edmonton,” Jeff Taylor There was a need to sersaid when Pipeline News vice the established base alstopped by the Lloyready in the field, he adds. dminster location. He “We identified an opexpected a tenth by the portunity to bring on trucks time of printing. that can help with servicing Ryan Rowan handles coiled rod,” Taylor says. technical sales support.

The benefits to coiled On a new coiled rod servicing truck that just arrived are, from left, Greg Brown, Tierra Alta has a Jeff Taylor, Irama Qunitero and Ryan Rowan of Tierra Alta, Lloydminster. rod include working in de110,000 sq.-ft. manufacviated well tubing and less turing facility in Mararestriction to flow. caibo, Venezuela making PC pumps. Why there? long gone out of vogue locally. “They don’t know Taylor says they see opportunities in Estevan Several founding members had worked overseas, how to deal with it,” Rowan says of sand produc- and Peace River. They cover pretty much the enand they wanted an opportunity to make equip- tion in Venezuela. tire western sedimentary basin, with a truck in ment in Venezuela for local use. “The global marAs if to punctuate the point, another head Swift Current, Peace River, Christina Lake and ket is too big to ignore,” says Rowan. pops in the door. It’s Irama Quintero, a produc- several working out of Lloydminster on that day.

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PIPELINE NEWS July 2008

Change in permit regulations in RM of Eldon ɺ Page C11 But the transition to pavement has resulted in the RM becoming something of a miniature department of highways. A pothole patrol is now required, for instance.

Whereas its neighbour to the west, the RM of Wilton, has gone to the extraordinary step of setting up its own police force to protect its roads, that option doesn’t fly in Eldon. Reeve Gary Taylor says it was considered in the late 1990s.

“After it was considered, no” he says.

Multi-trip permits This spring, the RM of Eldon changed its truck permitting policy. Now nondivisible loads such as service rigs can receive a multi-trip permit that is good until the end of the year, as opposed to a permit for each trip.

The new policy has had an interesting result. “All of a sudden, there’s an awful lot more trucks on, getting permits,” Taylor says.

One issue is road bans, or lack thereof. The RM does not bring in its own

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overall road bans in the spring, except for some localized instances.

“We’re trying to work with the oil companies. Not for them, and not against them. We’re putting the onus on the oil companies to prove they can abide by the law.

“If they can’t prove that to us, then road bans will be going on, and they will be losing bucks.”

Reiter says they calculated a savings of $5.5 to $7.5 million per road ban season for oil companies because the RM does not have an overall road ban policy. That was calculated when oil was at $60/bbl.

The biggest positive of all the oil activity in the RM? “Our young people have jobs. Our young people have jobs and are staying,” Taylor says. “Our schools are filled with kids.”

The RM has seen about a half dozen new homes started so far this year, and at least a dozen in 2007.

Taylor, a farmer, notes there is a drawback for the ag sector, however. It’s hard for a farmer to compete with oil sector wages when looking for hired help.

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PIPELINE NEWS July 2008

Lloydminster scholarships available to students

By Brian Zinchuk Lloydminster - The Lloydminster Section of the Petroleum Society is making several awards to students from a high school in Lloydminster or surrounding areas.

The Lloydminster Heavy Oil Section of the Petroleum Society donates these awards to worthy candidates to recognize personal development, academic achievement and contribution to school and community.

The scholarships are intended to financially assist students who will be continuing their education in a post secondary institute and who are majoring in science or engineering with a relationship to the petroleum industry. The applicant must be in full-time attendance and a member of the current year's graduating class.

At the time of awarding the scholarship the applicant must be enrolled full-time in a post secondary program of studies at a university, college or technical school.

The application deadline is Aug. 29, 2008.

Application forms and more information can be found at http://www.petsocheavyoil.org/ scholarshipinfo.htm

Black gold girl

By Brian Zinchuk Lloydminster – Completing her chemical engineering degree at the University of Saskatchewan’s College of Engineering, in 2007, Lindsay Mann is getting a chance to pursue her interests in science and math.

That’s because the production engineer with Husky Energy in Lloydminster is now responsible for approximately 170 producing wells and another 150 shut-in wells, and there’s plenty of both involved in making those wells as profitable as possible.

Those shut in wells look tempting when the price of oil keeps rising, and part of Mann’s job is looking to start up wells for added production. Her area of responsibility is primarily heavy oil wells in the Lashburn district.

“It’s a great team environment,” she says of working with Husky. “People are always looking at innovation.”

“I want to get into all different areas of production and enhanced oil recovery,” she says of her future plans.

When not at work, Mann is into several sports. She plays volleyball, basketball, soccer and golf, and enjoys running.

Mann originally hails from North Battleford.

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PIPELINE NEWS July 2008

Marsden opens lots fuelled by boom

By Brian Zinchuk Marsden – A survey crew could be found marking out the boundaries of new industrial lots on the north side of Marsden, a little village of about 276, 40 minutes southeast of Lloydminster.

A new fire hall is going up, replacing the diminutive one on the south side of the highway. Marsden is setting itself up to take part in the oil-fueled Saskatchewan boom.

Joanne Loy, administrator for both the village and the RM of Manitou Lake notes with frustration the calls she has had in recent years, turning away prospective new residents.

“In the last two years, I probably turned away 20 phone calls on people looking for lots.”

That’s going to change. The village is opening up 10 serviced lots on the west side this year, and plans another 10 to 12 next year. At the same time, industrial lots are being opened, with hope the oilpatch will scoop them up.

“We’ve had an oil company express an inSurveyors from North Battleford’s Tri-City terest for building and Surveys mark out new commercial lots in office there, but nothing the village of Marsden on June 19. Ten resis finalized,” Loy says. idential lots are slated to open this year, “We still have four inanother 10 to 12 next year. dustrial lots available for

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“Because the pipeline is booming and mills are closing in Northern Saskatchewan, we’re opening up a residential subdivision,” she says.

Up until now, they’ve sold 10 lots over the last eight years. “We don’t have any left to sell.

The village is already a bedroom community for Lloydminster, with Loy estimating over 25 per cent of the local workforce commuting to Lloyd. That percentage is increasing.

“It’s the growth in the patch, and housing costs in Lloyd,” she says.

In comparison, the lots opening this year are expected to run in the $10,000 to $12,000 range, a sharp discount from what one might pay in Lloydminster.

“And that’s serviced,” she adds.

Next year’s lots are expected to run around $20,000, but will be larger.

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Flush By

Steamer

Pressure

Safety Watch

Vacuum

Tank Cleaning

St.Walburg & Lloydminster

780.871.0723 24 hr Dispatch

Phone: (780) 875-7022 Fax: (780) 875-7095

780.871.0782

Darren Castellan, Owner

Fax Resumés

• Steel, Poly & Fiberglass • Quality Control Manual & Procedure Pipeline • Safety Manual • Certified “B” Pressure Welders

& Promotional Products

For All Your Fabrication & Pipeline Needs -

One Call Can Take Care of it all from Well Head to Tie ins.

• • • • • • • •

Track Hoes Rubber Tire Hoes Cat Side Boom Portable Welding Units 4 Ton Picker Maintenance Truck Oilfield Maintenance & General Repair

• • • • • • • •

Grader Tractor Cultivator & Harrows Full Fabrication Shop Complete Iron Stock Skid & Tank Fabrication Seperator Packages Poly Fusion Equipment & Truck

Office (306) 463-3879 1015 - 9th Ave. W. Kindersley, SK www.dancinoilfield.com dancinltd@sasktel.net

Check Out our Huge Selection of Promotional Products to be Embroidered!

• Hoodies • Sweaters • •Caps • Coveralls • Jackets •

Proud to have embroidered the Lions Club Border Bike Rally Clothing!

PHONE IN ORDERS WELCOME! 4006 - 50th Avenue Lloydminster, AB Toll Free: 1-888-875-9288

Rugged Work & Footwear

#3 - 602 Circle Drive E. Saskatoon, SK Toll Free: 1-877-653-4800

C18

PIPELINE NEWS July 2008

Let’s not go splat, shall we?

Kindersley – “No keys.”

That’s very important advice from Clark Johnston as he personally dumps his pockets onto the table. When you’re strapping on a fall protection harness, having keys in your pocket might not be a good idea if you end up hanging from the harness.

Johnston, of Kin-Kerr Training, provides fallprotection training for Prairie West Regional College, soon to be Great Plains Community College.

The program is part of the Energy Training Institute (ETI) in Kindersley.

After tugging on the lifeline to make sure it is secure, he climbs up a derrick simulator, with a platform 16-ft. (4.9 m) off the ground. Once he ties off to the frame, he steps out on the platform, and assumes a Superman pose leaning off the edge of the platform.

The harness he’s wearing is designed for derrickmen, tying off behind them so they can reach out without falling.

The platform was built in late 2007 to accommodate fall protection training. It’s designed to emulate work platforms and methods for both drilling and service rigs and conforms to Enform requirements for fall protection training. More importantly, the simulator is portable, allowing ETI to take it on location for training. This is important, because while they can accommodate up to 15 people per training course, many companies can’t spare that many people off-site at the same time. By going on location, they can accommodate smaller groups for the two-day training sessions.

“That was the main driving reason behind our

decision to build it,” says Willi McCorriston, program coordinator for ETI.

Fall protection instructor Clark Johnston scales a model derrick used for fall protection training.

Trades Training North West Regional College offers a variety of programs to get employees into the trades.

Check out the selection of programs at

www.nwrc.sk.ca Programs are also designed to meet your training needs.Get NWRC working for you.

Meadow Lake Campus has the following programs starting in the fall: • Heavy Equipment & Truck & Transport Technician • Welding • Electrician • Automotive Mechanic (Tri-trades) • Heavy Duty Mechanic (Tri-trades)

CODY 780-645-0040 JEFF 780-645-0301 DISPATCH 780-808-5012

1000 TRAILERS IN STOCK

Drive a Little Save A Lot!

Davidson, SK

1-800-213-8008 www.fasttoysforboys.com

Office Trailer Insulated, 110 volt pkg, A/C 13,500, 25,000 BTU, furnace, converter, RV door, windows, 50 AMP service, spray on floor liner, cabinet

$$

12,499 12,499

6.5 x 14 Dump • Gooseneck • Slide-out ramps • Scissor lift

$$

6,699 6,699 16’ Car Hauler

• Slideout ramps • 2 x 7,000 lb

$$

3,599

32’ Gooseneck High Boy • 2 x 10,000 lb.

• 5’ Dovetail • Speed jacks

$$

8,999

Features • 4 ton picker with 25’ boom 2,500 - 8,000 lbs lift • 30’ flat deck trailer • 18,000 lbs payload • 2007 Dodge 1 ton dually

6.5 x 12 Dump • Ramps • 2 x 5,200 lb • 3 way gate

$$

5,899 5,899

We Can Haul/Tow/Lift: • Farm equipment tractors, headers, balers • Vehicles (Dead or Alive) • Engine Parts • 36’ pipe and tubing

20’ Goose Neck Car Hauler • 2 x 7,000 lb • Fold up ramps

$$

3,699 3,699

16’ Tilt Deck • Full tilt • 2 x 5,200 lb • Hydraulic tilt

$$

4,499

Financing & Leasing Options Available!

Alberta residents Don’t Pay PST

OILFIELD SERVICES

RC 100 SERVICES

Spill clean-ups Chiv hanging Abandonment clean-ups Pump & Short Tool Hauls • 50’ PC/stroke pumps • Burner tubes

• 100 hp skid steer on rubber tracks • Minimal ground disturbance 3.5 lbs/sq. inch • Lease/yard/road leveling • 18 km/hr • Bush removal

• • • •

PIPELINE NEWS July 2008

C19

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

Over 35,000 circulation

targeting the Oil and Gas Sector!

YOUR ADVERTISING TEAM

SE Saskatchewan and SW Manitoba

Jan Boyle

Cindy Beaulieu

Glenys Dorwart

Kristen O’Handley

Deanna Tarnes

Sales Manager 21 Years Experience

16 Years Experience

15 Years Experience

8 Years Experience

3 Years Experience

SE Sask and SW Manitoba - for all of your advertising needs contact: Ph: 306.634.2654 Fax: 306.634.3934 Email: adsales@estevanmercury.ca

SW Saskatchewan SW Sask - for all of your advertising needs contact: Ph: 306.773.8260 Fax: 306.773.0504

Doug Evjen

Andrea Bonogofski

Sales Manager

abonogofski@prairiepost.com

devjen@prairiepost.com

2 Years Experience

4 Years Experience

NW Saskatchewan and NE Alberta NW Sask - for all of your advertising needs contact: Ph: 306.825.2038 Fax: 306.825.2038 Email: pipelinenews@shaw.ca

Daniela Tobler Sales Manager

C20

PIPELINE NEWS July 2008

Baker Petrolite wins Unity Golf Tourney Unity – There sun was shining on the 84 golfers who took part in the Unity Oilpersons Golf Tournament on June 13.

The championship CCS Energy Services Flight saw Baker Petrolite come in first, Loric Insulators second and Sweet R7’s third.

The TransGas First Flight went to Gomar, followed by the CCS Sluggers and RE Line Trucking.

The RE Line Trucking Second Flight was won by Winterhawk, with Sander Oilfield coming in next and then Marsden Magic.

In the Loric Industrial Third Flight, Nexen came out on top, followed by BMW Weatherford and TransGas.

There are water hazards, but this takes the cake. Unity’s Oilpersons Golf Tournament on June 13 had golfers use one fairway for two holes, as the water level of the nearby lake has swallowed one of the fairways.

“We do things right automatically”

SEE US FOR...

Allison Transmission Light & Heavy Duty Transfer Case Clutch Differentials Light & Heavy Duty Rebuilds & Exchange Units

Largest inventory of parts and exchange units in the midwest

Custom Building Imports

Highest Quality...Best Prices...

Sheldon Ducherer of Ducherer Builders, Unity lets Áy at the Unity Oilpersons Golf Tournament on June 13.

Lanny Hallett of L & A Welding in Marsden sends off a putt during the Unity Oilerpersons Golf Tournament.

GUARANTEED!

FOR SALE

OILFIELD SERVICES COMPANY

We’ll have you back on the road in no time!

• 4 Tridem Vac Trucks • 3 Pressure Trucks • 3 Body Vac Trucks

Serious inquries please call

780-871-1238

We’re not sure if this team had an unfair advantage, but Gary Tuffs, golÀng with Winterhawk Coleville has earned a reputation as a top notch golfer. Until recently he used to run the North Battleford Golf and Country Club, but has joined his family working in the oilpatch.

3912 - 44th Street, Hwy. 16 East, Lloydminster

Phone

(306) 825-4454 Fax (306) 825-3170

PIPELINE NEWS July 2008

C21

Dancin: No layoffs, no serious injuries, and a tight-knit group With several inches of rain putting the kybosh on Àeld work in mid-June, Kindersley’s Dancin puts in some shop work. Dan Kosolofski, right, and his wife Cindy note that in 12 years of business, they’ve never laid an employee off or had a seriPhoto by Brian Zinchuk ous injury.

We do Canada wide parts search for those HARD TO FIND PARTS. Need something, CALL!

WRECKING OVER 2000 CARS, TRUCKS...LOTS OF 4X4’S North of SPCA on grid road. Lloydminster (780) 871-0482

CALL TOLL FREE 1-877-903-3325

WE ARE NOW TAKING ALL • Metal • Cars • Trucks • Farm Scrap • • Washers • Dryers • Fridges • Stoves • Industrial Scrap • Dealing in all Metals! Copper, Aluminium, Brass, Lead, etc.

We also pick-up scrap cars with our own tow truck or you can deliver!

Sea-Can Container Rentals

645-B Allis Loader Has grapple & bucket.

Unit runs good.

20.5x25 tires.

40 ft., clean, water proof, rodent resistance.

$

$

2,500

4010 John Deere Loader Tractor Diesel.

Runs good.

$

4,000

Older IHC Forklift Runs not bad.

$

3,500

$

5,500 down

and transfer lease payments $275 for 4 years. Call Bill.

TH TRAI IS IS NELER W!

22,000

plus delivery charge.

Long term rentals preferred.

(forklift) Runs not bad.

Needs a little TLC.

5ft beaver tail, spring loaded ramps.

FINANCING IS IN PLACE.

$

400/mo.,

Older IHC Loader

40ft35 ft.Trailer 5th Wheel working deck,235-85-16 tires,

Wrecking 1989 Ford 1 Ton Very good 7.3 diesel auto.

2 wheel dr. or sell complete

$

3,800

Wrecking 1995 GMC Good 6.5 turbo diesel, auto.

4x4.

WE SHIP PARTS ANYWHERE

Wrecking 2004 Ford F350SD

Wrecking 2005 Ford 250SD

Good 6 litre, auto, 4x4 on dually unit has 90,000 km

Auto, 4x4 (red), unit has 16,000 km, good 5.4 engine.

Bob Cat Diesel

Wrecking 1997 Ford

Runs good.

Model 825.

Needs a little TLC

4.2, auto., clean truck, 2 wheel dr.

$

5,000

WE SHIP PARTS ANYWHERE

By Brian Zinchuk Kindersley – Talking with Dan Kosolofski of Dancin Oilfield Services in Kindersley one thing becomes readily apparent: he firm he co-owns with his wife Cindy is not typical for the oilpatch.

The conversation covers a lot of ground on the importance of family and stability, as well as having a strong, close knit workforce. And while others may have jumped at opportunities to expand substantially, the Kosolofskis have purposely kept their company small.

One quote stands out in particular. “Basically, I’ve never laid an employee off,” Dan says.

That’s a rare thing to hear in a business where seasonal layoffs are commonplace. To accomplish this, their pay rates might not be as extravagant as some other companies, but the cheque, and work, is always there, year round.

That doesn’t mean there isn’t a constant flow of resumes coming in. Dan says there’s an average of five a week. But “shipjumpers,” as he refers to them, aren’t doing themselves any favours by contantly pursuing a few more bucks an hour and subsistence pay for working away from home. When you add up all the time spent not working, sometimes three or four months a year, he says those shipjumpers will end up making less than his staff in the long run. About 25 per cent of those resumes are from the same people, applying each spring and fall.

“It’s about lifestyle – what lifestyle do you want?”

Dancin Oilfield Services has been around since the mid-1990s. They do fabrication, pipeline, dirt work, and a wide variety of other services. “We do a lot of work directly with dirt, building leases, reclamation work, pulling liners,” Dan says. The pipeline work became prominent four years ago, the majority in the two to six-inch range. They do some fibreglass and poly pipe as well, but contract out plow trenching to companies like Dwight’s Trenching of Battleford.

When things are slow, they make trailers with portapotties and garbage bins.

Subscribing to the motto “one call can take care of it all,” whatever services they don’t provide inhouse, they will bring in through sub contractors, such as hydro-vac, vac and pressure trucks. “If you need something, I will find it for you.”

Being able to provide a wide range of services comes from having a workforce that can handle all sorts of work. “We’re very diversified, but the guys are very diversified.”

“The bigger you get, the less direct contact you have with each guy and each project.”

“We’ve had lots of opportunities to grow really big, really fast,” he says, but then explains they have forced the company to stay small.

Dancin’s workforce of about 14 is quite tightknit, he says. “They know each other as much outside of work as inside.”

The relationship is close enough that each employee is welcome at his supper table, and expects the reverse is also true. “These guys don’t work so much for me, as with me.”

If it sounds a little homey, maybe it is. They keep close to Kindersley, with most of their work within 50 miles.

OFFICE Consultant’s Dream.

In secluded spot.

Unusual scenery.

A little coffee shop to call your own.

10 minutes from anywhere.

Large Furnished Executive in Lloydminster

Country

Jim 808-1280 or 808-2233

C22

PIPELINE NEWS July 2008

RACE TO THE BORDER . . .

JET SKI JS800A8F

2008 TERYX 750 4x4

2008 MULE 610 4X4

2008 MULE 3010 Trans 4x4

As low as *3.97% APR OAC for 12 months

As low as *3.97% APR OAC for 12 months

As low as *3.97% APR OAC for 12 months

KLX250T9F

2008 BRUTE FORCE 650 4x4i

2008 KSF450B8F

As low as *1.97% APR OAC for 12 months

As low as *3.97% APR OAC for 12 months

As low as *3.97% APR OAC for 12 months

2008 NINJA ZX-6R

2008 NINJA ZX-14

2008 VULCAN 1600 NOMAD

As low as *1.97% APR OAC for 12 months

As low as *1.97% APR OAC for 12 months

As low as *1.97% APR OAC for 12 months

2008 VULCAN 900 CUSTOM

2008 JS800A8F

2008 JT1500B8F

As low as *1.97% APR OAC for 12 months

As low as *1.97% APR OAC for 12 months

As low as *1.97% APR OAC for 12 months

*APR Annual Percentage Rate, OAC on approved credit, see instore for details

Highway 16 West, Lloydminster, AB

(780) 872-7004 HOURS: Monday - Friday 9:00 am - 6:00 pm Saturday 9:00 am - 4:00 pm

PIPELINE NEWS July 2008

C23

Former Black Gold Girl now restauranteur

By Brian Zinchuk Maidstone – Cindy Gingell used to run a steamer, then a hydrovac, and more recently worked on a flushby unit. But now she’s making use of steam in a whole different way – making some of the most scrumptious ribs around.

It was a surprise to see ribs on a luncheon smorg menu when walking into Maidstone’s Mother Ducks, a restaurant located on the old Highway 16. (The highway was diverted around Maidstone in recent years.) The price for a smorg that took two plates to deliver to the table? Ten bucks.

It’s easy to pay twice as much for ribs that tasted half as good.

No wonder one can hear a chorus of Mike phones squawking around me as the Nomex crowd grabs a bite. They don’t serve ribs every day. It just turned out to be a good day to visit.

Gingell was profiled in a 2005 edition of the Lloydminster Pipeline News.

People still comment about that, she says with a demur smile. When the chance to get into a restaurant presented itself, “I jumped in here headfirst,” she says.

Cindy Gingell, Sharon Lamont, Josh Werner and Carol Sutherland serve up a smorg so Àlling, it took a couple plates to get it to the table. Missing is Ben Armbruster.

Gingell and Werner run Mother Ducks, a Maidstone restaurant where the mornings are dominated by Àre retardant coveralls.

Custom Manufacturing from Oilfield Lease to Your Front Door!

OILFIELD EQUIPMENT RENTAL ssor Compre d n Sta s

Truck ations Modific

• • • •

Power Swivels • Drill Bits Power Tongs • B.O.P.’s Drill Collars • Annulars Rod & Tubing Handling Equipment

• Flow Back Tanks • Accumulators • Cat Walks & Pipe Racks

5206 - 60 Street, Lloydminster, AB. T9V 2S9 Custom stands fo rq mufflers on lease uiet sites

Phone: (780) 875-6604

Kim Leipert Ph. 306.825.5355 Cell: 306.821.2880 Fax: 306.825.5356

Ha Per Wi sona & r te lug th l ecy gin Na ize it A the cle b g yo ddresms e & ! sol ins ur t utio ? W ras h nf or e hav you e !

all ecor in Home D lours! les & co ty s , s e siz

Box 11793, Lloydminster, AB, T9V 3C1 (Country Energy Park) Phone (780) 872-5234 Toll Free 1(888) 870-5234 Fax (780) 872-5235 www.bendtec.ca e-mail: bendtec@telus.net

Fax: (780) 875-6634

www.heavyoilfieldtrucks.com peddlerconsignment@sasktel.net Service Rig Single/Double Jimmy Engine Very good condition!

2005 Peterbilt Coiled Tubing Rig 700 cfm compressor, excellent condition!

4 4 1 6 - 4 4 t h S t r e e t , L l o y d m i n s t e r, S K

“Industry Leading Quality and Service Since 1987” 6150 - 76 Avenue, Edmonton, AB T6B 0A6

Phone: 780-440-2855 Fax: 780-440-1050 Email: brotherscoating@shaw.ca www.brotherscoating.com

Specialists in Internal & External Coating Applications Epoxy Linings • Metalizing • Fiberglass • 100% Solids Epoxy Pipe, Bends, Tanks & Vessels

2000 Mack Flushby 4x5 triplex pump, 50 ft. flushby mast, 50,000 lbs, HL25 pullmaster winch

2005 Ford F550 Vac Truck Cusco 840 gal.

Vac tank.

New paint and ready to work!

S9V 129

C24

PIPELINE NEWS July 2008

Keep ‘em as long as you can

By Brian Zinchuk

Photo by Brian Zinchuk

Roughneck Matt Zroback dopes pipe.

Kindersley – Finishing a few days before their allotted time, and more importantly, finding the oil, means many kind words when you ask Reece Energy officials how their drilling program is going in the Kindersley area in the Viking formation.

“They keep adding on. These guys are going to be with us for a while,” says Wayne Deschner, area foreman for Reece Energy, who is keeping an eye on their drilling.

“We’re averaging seven to eight days a well,” says rig manager Shane Mead.

The three-year old Precision Drilling Rig No. 239 is a super single, with a top drive and iron roughneck. An arm raises pipe into position, meaning the derrickhand spends more time dealing with tanks than up high. The rig can drill at a slant of up to 45 degrees, and was designed for the oilsands.

The crew Pipeline News visited in mid-June were quite happy to be working on a slant rig.

“The slant rigs are about the safest thing going.

They’re all automated. The rig handles the pipe, says Mead. The iron roughneck eliminates a lot of pinch points.

Three crews work two weeks on, one off. The biggest challenge, according to Mead, is finding hands – experienced ones.

“There are none anymore,” he says.

“It’s going to be a slow, painful process,” he says about training new hands in the rig technician program. Several of the crew were grandfathered in. If you want to get a discussion going, just ask what the rig hands think of the program. ɸ Page C27

PIPELINE NEWS July 2008 #4899 2008 Chevrolet Tahoe LTZ GM Co Car

#4953A 2003 Chevrolet Trailblazer Ext V8

#4885 2008 GMC SLE Yukon XL 9 Passenger

#4938A 2007 Chevrolet Trailblazer

#4973A 2007 Chevrolet Tahoe

C25

#4949A 2008 GMC SLT Yukon

INCOMING UNIT PICTURE N/A WAS 55,180

WAS 24,500

SALE $49.985*

WAS 67,100

SALE $17,500*

SALE $45,986*

SALE $22,900*

SALE $32,500

SALE $45,500*

WAS 61,76

#4897A 2002 Explorer

#4692A 1999 GMC SLT Yukon

#4837B 1995 GMC Jimmy

#4504B 1991 Explorer Eddie Bauer

#4876B 2005 GMC Envoy

#4605A 2002 Pontiac Montana.

WAS 9,500

WAS 5,500

AS IS Runs 4x4 good

WAS 19,900

SALE $9,500*

SALE $6,804*

SALE $3,955*

SALE$873*

SALE $18,628.*

SALE $8,900* Sask

#4950A 2005 Chevrolet LS Ext 4x4 Z71

#4569A 2006 GMC SLT 4X4 Crew Diesel

#4948A 2005 GMC SLE Ext 4X4

#4944A 2006 GMC SLE 4X4 Crew

#4635B 2006 F150 Crew 4X4

#4855A 2007 Chevrolet Uplander LT2

Was 24,500

Was 39,500

Was 21,000

was 19,900

WAS 21,000

WAS 24,000

SALE $23,240*

SALE $33,000*

SALE $19,962*

SALE $18,790*

SALE $19,383*

SALE $21,496*

#4854A 2005 Chevrolet Reg Cab 4x4

#CRHA 2002 GMC SLT Ext 4X4

#4900A 2004 Chevrolet LS H/D 1/2 Crew 4x4

#4327A 2003 Chevrolet LT H/D 1/2 Crew 4X4

#4849A 1998 F250 3/4 Reg Cab

#4708B 1998 Chevrolet LT Diesel 4x4 Ext

WAS 21,000

WAS 16,500

WAS $4,900

was 8,500

SALE $16,424*

SALE $14,500*

SALE $19,571*

SALE 13,900*

SALE $3,431*

SALE $7,540*

#4868B 2001 F150 Reg cab 4x4

#4894A 2005 GMC SLE Crew 4x4

#4932A 2005 Chevrolet LS Crew 4X4

#4926B 1997 Chevrolet 2wd Reg Cab

#4841B 2003 F150 Supercab 4x4

#4779A 1998 Ford Windstar

WAS 14,500

WAS 3,900

SALE $6,499*

SALE $23,984*

SALE $28,000*

SALE 3,928*

SALE $12,842*

SALE $3,400*

#4922 GMC Canyon Crew 4x4

#4935 Chevrolet Colorado Ext 2wd

#4785 Pontiac Torrent All Wheel Drive

#4817 Pontiac Torrent

#4847 GMC W/T Reg Cab 2wd

#4578 Chevrolet W/T Crew Diesel 4x4

36,905.00

28,170.00

33,740.00

31,020.00

28,825.00

WAS 17,500

WAS 26,000

SALE $29,900 or ask for 0% SALE $21,900 or ask for 0% #4614 Pontiac Solstice GXP

# 4917 Chevrolet Malibu 1LT

SALE $31,540 WITH 0% x72 SALE $29,832 WITH 0% x 72 SALE $23,250 or ask for 0% #4559 Chevrolet Impala LT

#4898 Chevrolet Impala LT 50th Anniversary

#4555 Buick Lucerne

56,615.00

SALE 41,988 or ask for 0% #4669A 2002 Pontiac Grand Prix GT

4115.00

27,500

30645.00 Apply for Eco Rebate

32,340.00 Apply for Eco Rebate

36325.00

WAS 9,500

SALE $37,900 WITH 0%

SALE $ 26,900

SALE $28,900 With 0%

SALE $30,650 WITH 0%*

SALE $34,400 WITH 0%*

SALE $7,996*

#4920A 2002 Focus Wagon

#4961A 2007 Chevrolet Malibu SS

#4936A 2004 Chevrolet Aveo 5

#4697A 2004 Pontiac Sunfire

#4076 2006 Pontiac Grand Prix GT Demo

WAS 7,900

WAS 39,140.

Lease Takeover

SALE $5,900*

SALE $19,900

SALE $7,300*

SALE $6,993*

SALE $24,900*

Option call for details

#4865A 2001 Chevrolet Z24

#4911A 2007 Chevrolet Impala LS

#4104R 2007 Chevrolet HHR LS

#4734B 2007 Chevrolet HHR LT

#4024R 2006 Chevrolet HHR LT

Consignment 2007 Cobalt LS

#4746B 2007 Chevrolet Cobalt LS

WAS 8,500

WAS 19,500

WAS 23,600

WAS 19,500

WAS 20,000

WAS 14,900

SALE $6,121*

SALE $ 18,874*

SALE 17,500*

SALE $16,497*

SALE $14,976*

SALE $14,239*

CALL DONNA FOR YOUR FINANCE REQUIREMENTS

Sale Prices Cash Plus Fees & Taxes

1 780-853-0941

www.collegeparkgm.com

1 780-853-0941

C26

PIPELINE NEWS July 2008

Is an important piece of your next project missing?

At Stuart Wright, we specialize in servicing the Oil Industry with those “Missing Pieces”.

BUS: (780) 875-9111 RES: (780) 875-9583 FAX: (780) 875-3406 Box 1409, 5112 - 46 Street Lloydminster, AB S9V 1K4

24 Hour Service

Troy Illingworth Cell: (780) 808-3183 Tim Sharp Cell: (780) 871-1276

• Janitorial • Chemicals • • Belts • Hoses • Air Compressors • • Safety Supplies • Power Tools • Hand Tools •

Office: (780) 847-4666 Fax: (780) 847-3334

stuart wright ltd.

Box 82 Marwayne, AB

“THE SUPPLY HOUSE FOR THE INDUSTRY”

Welders, Service Crews, Lease Mowing & Bobcat Service

Ph. (780) 875-1442 Fax. (780) 871-0925

www.xtec.ca

FOR ALL YOUR ENVIRONMENTAL CONSULTING NEEDS X-Terra Environmental Consulting Ltd. provides oilfield environmental assistance for wellsite, access road, pipeline and seismic planning as well as monitoring and reclamation.

Our friendly staff are experts on environmentally sensistive areas, Crown land and First Nation land.

We provide innovative cost-effective services to the oil industry, enabling project ease and acceleration.

• Plant Turn Around Services • Sealed Tri-Axle End Dumps • Tri-Axle Trailer Vacs • Methanol Rentals • Pressure Trucks • Steam Trucks • Body Job Vacs • Crew Trucks • Hydro Vacs • Flushbys • Bobcats Head Office

Box 85 • Provost, AB • T0B 3S0 T: 780-753-8440 F: 780-753-8450

Suite 360 - #3, 6309 - 43 Street Lloydminster, AB • T9V 2W9

T: 306-825-4433 F: 306-825-4244

'LIGO SYX SYV WIVZMGI VMKW IHMXMSR GSQMRK MR %YKYWX

PIPELINE NEWS July 2008

C27

Drilling continues near Kindersley Éş Page C24 â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s so many diďŹ&#x20AC;erent styles of rig, how do you train someone? Rigginâ&#x20AC;&#x2122; is hands on. â&#x20AC;&#x153;You canâ&#x20AC;&#x2122;t teach someone to drill a hole out of a book,â&#x20AC;? Mead says.

Aaron Hanson is the consultant on this particular operation for Reece Energy. â&#x20AC;&#x153;My problemâ&#x20AC;&#x2122;s the hole,â&#x20AC;? he explains, while Mead says his problem is above the hole, making sure itâ&#x20AC;&#x2122;s done right and â&#x20AC;&#x153;nobody gets dead.â&#x20AC;?

Jason Morissette is the driller on this crew. He will soon be able to ďŹ ll in for Mead as tool push, allowing Mead to get away from the rig for a bit this summer. Heâ&#x20AC;&#x2122;s been working on the rigs for 10 years, three-and-a-half as a driller.

â&#x20AC;&#x153;You donâ&#x20AC;&#x2122;t want to stop too long, you want to keep that pipe moving,â&#x20AC;? he explains as they begin their trip out. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;d rather be on this rig any day,â&#x20AC;? he says, saying there was less chance for things to go wrong.

Derrickhand Darren Nixon, 41, has also been working for 10 years on the rigs. â&#x20AC;&#x153;I worked in a gold mine, plastics factory, Lillydale Foods and on the farm as a kid,â&#x20AC;? he says. Nixon grew up near Vilna, Alta, but now lives in Edmonton. Since the rig looks after much of the derrick work, he says he spends his time looking after mud, on maintenance, cleaning, and helping out where he can. â&#x20AC;&#x153;I like working derrick. I kinda do my own thing.

You know what needs to be done, and you do it.â&#x20AC;?

The trip out stops momentarily for a ďŹ&#x201A;ow check, to be done at ďŹ ve per cent out of the hole. The check will be repeated at 50 per cent and at the bottom hole assembly.

Motorhand Justin Robertson and roughnecks Matt Zroback and Anthony Clemence round out the crew.

Zroback dopes the pipe as each section comes out. â&#x20AC;&#x153;Wipe and cleanâ&#x20AC;? is the order of their day. Donâ&#x20AC;&#x2122;t get Zroback going about pipelining, because he just might tell you what he thinks.

The long hours, hot weather in summer and cold weather in winter have their payback. â&#x20AC;&#x153;I had a tee-shirt that said â&#x20AC;&#x2DC;He who dies with the most toys, wins,â&#x20AC;? says Mead. With a new Harley Davidson motorcyle purchased two months ago, he says, â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m working on it.â&#x20AC;?

Resources Guide FAST ACCURATE FRIENDLY SERVICE

Box 1708, Provost, AB T0B 3S0 #1 25 Wheatland Cres.

(780) 753-6601 Fax (780) 753-2004

Industrial Supply

STAMPS & MARKING DEVICES Box 94 Lloydminster, SK/AB S9V 0X9 PH: 780-875-4878 FAX: 780-875-4809 EMAIL: rubberduck@telus.net

Gordon Harty Box 95 Marwayne, AB T0B 2X0

â&#x20AC;˘ Downhole Tools

â&#x20AC;˘ Chain & Load Binders

â&#x20AC;˘ Wire Cable & Slings

â&#x20AC;˘ Nylon Slings

â&#x20AC;˘ Heavy Duty Truck Parts

â&#x20AC;˘ Ripper Teeth & Shanks

â&#x20AC;˘ Ag Supplies

â&#x20AC;˘ Cutting Edges

â&#x20AC;˘ Oilfield Clothing

â&#x20AC;˘ Filters

Bus. Phone

Fax No.

Res. Phone

(780) 875-9802 (780) 847-3633 (780) 847-2178

STAMPS STAMPS STAMPS

Fresh Water Hauling Custom Bailing & Hauling

Address stamps, Business Stamps, Corporate Seals, Oilfield Stamps, Specialty Crafting Stamps, French Stamps, Spanish Stamps and much much more...

COIL COIL TUBING TUBING SERVICES SERVICES FLUSHBY SERVICES FLUSHBY SERVICES Lloyd Lavigne â&#x20AC;˘ Kirk Clarkson

50 & 80 HP BOILERS CERTIFIED IN ALTA, SASK, BC, NWT & YUKON

Owners/Managers 5315 - 37th Street Provost, AB T0B 3S0

6506 - 50th Avenue Lloydminster, AB

Phone: (780) 875-6880

Phone: (780) 753-6449 Serving Alberta, B.C. & Saskatchewan

Fax: (780) 875-7076

Toll Free

24 Hour Service

1-866-363-0011

P.O. Box 250 TILLEY, ALBERTA T0J 3K0 Email: astro@eidnet.org Web Page: astro.eidnet.org

BUS: (403) 377-2391 BUS: (780) 819-1706 CELL: (403) 793-4616 FAX: (403) 377-2263

Specializing in Industrial & Oilfield Motors

JUSTIN WAPPEL - Division Manager

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401 Hwy. #4 S. Biggar, Saskatchewan PO Box 879 S0K 0M0 Ph (306) 948-5262 Fax (306) 948-5263 Cell (306) 441-4402 Toll Free 1-800-746-6646 Email: jwappel@envirotank.com www.envirotank.com

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Dwight G. Blomander, CFP â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘

4â&#x20AC;? Hevi Wate Drill Pipe Brad Lamontagne (306) 577-9818 or (306) 739-2263 smrltd@sasktel.net

Specializing in well site and pipeline surveys Yorkton 306.783.4100

Swift Current 306.773.7733

Edmonton 800.465.6233

Weyburn 306.842.6060

Lloydminster 780.875.6130

Calgary 866.234.7599

Regina 800.667.3546

Medicine Hat 403.528.4215

Grande Prairie 780.532.6793

Life Insurance Disability Insurance Critical Illness Insurance Employee BeneĂ&#x20AC;t Plans Tel: (306) 761-7506 â&#x20AC;˘ Fax: (306) 352-9474 E-mail: dwight.blomander@gwl.ca Toll Free: 1-888-495-7275 Cellular: (306) 421-1935 THE

Great-West Life ASSURANCE COMPANY

600, 2010-11th Avenue, Regina, SK S4P 0J3

C28

PIPELINE NEWS July 2008

&DQDGD V OHDGLQJ GLVWULEXWRU RI LQGXVWULDO Ă HHW DQG VDIHW\ SURGXFWV - OilĂ&#x20AC;eld Maintenance - Service Crews - Pressure Welding - Pipeline Construction - Battery Construction - Rent or Sell New & Used Equipment Randy: 634-5405 - Cellular 421-1293 Darcy: 634-5257 - Cellular 421-1425 â&#x20AC;˘ Fax: 634-4575

LOCALLY OWNED & OPERATED BOX 843, ESTEVAN, SK.

24 Hour Service - 634-8737

S.E. OPTIONS CONSULTING â&#x20AC;˘ Drug and alcohol testing and programs â&#x20AC;˘ Hearing testing and sound level survey â&#x20AC;˘ R.N. medicals â&#x20AC;˘ U.S. D.O.T. compliance services â&#x20AC;˘ Substance Abuse Professional

1318B - 3rd St. Estevan, SK 634-9079 Email: options@sasktel.net

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CLIFF NANKIVELL TRUCKING LTD.

WATER & CRUDE VACUUM TRUCK SERVICE â&#x20AC;˘ 24 Hour Service â&#x20AC;˘ Oil Hauling 2 Locations: Kisbey & Lampman Phone: 462-2130 â&#x20AC;˘ Fax: 462-2188

No Electrics Required

Dale (306) 861-3635 â&#x20AC;˘ Lee (306) 577-7042 Lampman, Sask.

Platform Sizes From 12" x 30" to 4' x 8' 3,000 to 50,000 lb.

Truck, Bale and Hopper Scales Solid Welded Unit Livestock Units Ask about our Batch Plant Units

758&.,1* 6(59,&(6

Highway 39 East, Estevan Phone: 637-2060 Fax: 637-2065

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Bully Blast & Paint Services Ltd.

DQG VR PXFK PRUH :( &$55< 6,=(6 )25 7+( %,* $1' 7$// '$5( 72 &203$5( %87 6(( 86 /$67 0$,1 &$5/</(

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â&#x20AC;˘ Shop & Field Service â&#x20AC;˘ Structural Steel â&#x20AC;˘ Tank Linings â&#x20AC;˘ and more Your Sandblasting, Painting & Coating Specialists with over 20 yrs. experience in the industry

Spool Coating now available Cell: (306) 461-9679

Bus.: (306) 457-2264

P.O. Box 54 â&#x20AC;˘ Benson, SK â&#x20AC;˘ SOC 0L0 bullyblasting@sasktel.net

* Acid * Coil Tubing *CO2 * Industrial

Well Service

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King Koin Laundry

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New washers, Staff on site from Monday-Saturday.

* Cement * Fracturing * N2 * Polybore

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Open 7 days a week 24 hours a day

www.eliasscales.com

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Do laundry when its convenient for you!

134 - 1st Street Weyburn, Sask.

Phone (306) 445-2111 North Battleford, Sask.

CELL: 306-421-3728 RES: 306-634-7538

CHAD FROESE

ELIAS SCALES

â&#x20AC;˘ Pressure Vessels â&#x20AC;˘ Well Testers â&#x20AC;˘ Frac Recovery â&#x20AC;˘ Wellbore Bleedoff â&#x20AC;˘ Ball Catchers â&#x20AC;˘ 400 bbl Tanks â&#x20AC;˘ Bed Truck

SURFACE BIT RENTAL HOT SHOT SERVICE LIGHT OILFIELD HAULING 24 HR SERVICE

Lyle Leclair - Cell: (306) 421-7060 Larry - Cell: (306) 421-7131

Cory Bjorndal 2P[VPah # " !%# '! %

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â&#x20AC;˘ Alberta â&#x20AC;˘ Saskatchewan

District Manager Downhole Tools

93 Panteluk Street Kensington Avenue N Estevan, Saskatchewan S4A 2A6 PHONE: 306-634-8828 CELL: 306-421-2893 FAX: 306-634-7747 cory.bjorndal@nov.com www.nov.com

Career

Opportunities

PIPELINE NEWS July 2008

C29

EXPANDING! PARTS PERSON REQUIRED for Arctic Cat, Suzuki, Kawasaki & more APPLY IN PERSON TO:

23(5$725

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Hwy 16 West, Lloydminster, AB Fax: 780-872-7011 Email: ajfauchon@yahoo.ca

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Class 1A Company Drivers Class 1A Owner/Operators Serving Saskatchewan, Alberta and BC Total Transfer is a fast-growing freight and light oilfield hauling service.

YOU CAN EXPECT

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Low administration costs and much higher than industry average earnings.

WE EXPECT A good work ethic and a dedication to safety and service that has been the key to our success.

No matter where you live in AB or SK you are on one of our routes.

Talk to our people and our customers, then fax your resumé and abstract to (306) 825.4500.

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FABRICATOR REQUIRED â&#x20AC;˘ Great place to work â&#x20AC;˘ Excellent benefits â&#x20AC;˘ Experience in auto CAD required

Box 11793 Lloydminster, AB T9V 3C1 Phone 780-872-5234 Fax 780-872-5235 e-mail: bendtec@telus.net

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Winterhawk Hydro Vac Services requires an experienced Hydro Vac operator for SouthEast Sask.

Class 1A license and safety tickets required.

Call 421-5954.

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Employment Opportunity Slickline Operator and Assistant â&#x20AC;˘ Oilfield experience preferred but will train â&#x20AC;˘ Valid drivers license and abstract required â&#x20AC;˘ Safety Training an asset â&#x20AC;˘ Duties will include operating and maintaining Slickline Truck & Tools â&#x20AC;˘ Benefit Package available after 3 months

Forward resumes to: Attn: Mike Muir e-mail to: qualityw@sasktel.net fax to: 634-7976 or mail to: Box 326 Estevan, SK S4A 2A4

Progressive Oilfield Company looking for

Semi Vac Operators Scheduled days off.

Health Benefits.

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Please fax resumĂŠ & abstract

to (780) 808-6393

Help Wanted For a Rapidly Growing Oilfield company in Provost, AB

â&#x20AC;˘ Winch Truck Operators â&#x20AC;˘ Picker Operators â&#x20AC;˘ Swampers â&#x20AC;˘ Dispatcher Top wages and bonuses with a comprehensive Benefits Package Send resumĂŠ to: Box 1080, Provost, AB T0B 3S0 Fax to Ron at 780-753-4860 or E-mail: rchopek@leachmanenterprises.com www.buildersenergy.com

PIPELINE NEWS July 2008

C31

Barbecue fundraiser CE Franklin of Lloydminster was barbecuing the doggies for the doggies, raising money for the Lloydminster SPCA on June 20. The effort is to build a new home for the SPCA. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re in desperate need of a new facility,â&#x20AC;? says Dave Bacon of CE Franklin, one of the organizers who can be seen serving up the food. His helper was Melissa Hemmelgarn.

A building was donated in recent years, but it needs to be completed. They went through 500 hamburgers and 100 hot dogs, plus cotton candy and popcorn. The big prize winner was J. R. Corpe, who took home a Westward tool set from Acklands-Grainger.

Photo by Daniela Tobler

Safety Coordinator Monitor all health and safety activities within our company: -Maintenance and upkeep of safety policies and procedures -Incident investigation, hazard assessments & return to work -Procedure development, implementation & follow-up -Conducting monthly safety meetings & employee orientations -Filling out safety reports (i.e. WCB, OH&S minutes, MSDS etc.)

-Must have a valid drivers license Welders Seeking 1st, 2nd & 3rd year Apprentices, Journeymen Welders or equivalent to perform all weld procedures in a custom manufacturing environment.

-Knowledge/experience with fabricating tools & equipment and Ă&#x20AC;tting skills would be an asset Industrial Painter -Operate & maintain an airless painter -Spray enamel & epoxy products -Preparation & clean-up Laborers -Rig Matt Construction -Bandsaw Operator

DRIVERS WANTED Vac & Pressure Truck Drivers needed for Lloydminster and Elk Point area.

Class 1A & 3A. Please send driverâ&#x20AC;&#x2122;s abstract and resumĂŠ to:

Career

Opportunities EMPLOYMENT OPPORTUNITY

Fax: (780) 724-2211 E-mail: rockypine@telus.net or Phone (780) 724-2625

-Painters Helper -Service Man

Hertz Equipment Rental is currently seeking personnel to fill the following positions at their new Lloydminster location: HEAVY DUTY MECHANIC & DELIVERY PERSONNEL

-Shopkeeper

Do All Metal Fabricating Ltd Estevan, SK Email: jkorf@doallmetal.com or fax: 306-634-8623 We offer overtime, competitive wages, beneĂ&#x20AC;ts & RRSPâ&#x20AC;&#x2122;s

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requires qualified people for the following positions:

EXPERIENCED WELDERS Tickets an asset. $18-$25/hour DOE.

SANDBLASTER AND/OR INDUSTRIAL PAINTER Experience in foaming and internal lining an asset.

Send resumĂŠ (REFERENCES REQUIRED) to: info@envirotank.com or fax 306-948-5263

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Canadian Sub-Surface Energy Services Gas Testing Division Canadian Sub-Surface is looking to expand our current operations in Estevan. We are looking for local crews who are currently living in the area or willing to relocate to Estevan. We require Field Supervisors, Night Operators and Field Assistants.

If you are a team player with a strong work ethic who believes safety and customer service are top priorities then Hertz Equipment is the place for you. Hertz offers competitive wages and benefits as well as opportunities for advancement and transfer throughout the company.

Applicants should forward their resumĂŠ with references to P.O. Box 12639, Lloydminster, AB T9V 0Y4 Fax: 780-875-3968 scoutt@hertz.com Attention: Scott Coutts

Crew Foreman

Experienced FOR LLOYDMINSTER AREA

MUST: â&#x20AC;˘ Have Valid Drivers License & Be A Team Player â&#x20AC;˘ Safety Tickets â&#x20AC;˘ Picker & Bobcat Experience An Asset Câ&#x20AC;&#x2122;s OFFERS: â&#x20AC;˘ Top Wages â&#x20AC;˘ Benefits Package â&#x20AC;˘ Performance Bonuses â&#x20AC;˘ Scheduled Days Off â&#x20AC;˘ Opportunity For Advancement â&#x20AC;˘ C.O.R. Safety Program â&#x20AC;˘ AB & SK B31.3 Q.C. â&#x20AC;˘ Premium Equipment DUTIES: â&#x20AC;˘ Daily Operation Of A Light Picker Truck â&#x20AC;˘ Pipe-fitting & Construction

OILFIELD SERVICE LTD.

CONSULTING & CONSTRUCTION

Apply in confidence to: Fax (780) 808-2273

We are a rapidly growing company that offers leading edge and innovative bonus programs, as well as a competitive day rate, beneĂ&#x20AC;t plan and other incentive programs.

As the successful candidate, you will have a clean driverâ&#x20AC;&#x2122;s abstract. You will preferably possess your H2S and First Aid certiĂ&#x20AC;cates.

If you are interested in working for a company that values its people, our greatest resource, then please send in your resume to: Cell: (306) 861-4018 Email: jverville@cansub.com We would like to thank all those candidates who apply, however only qualiĂ&#x20AC;ed personnel will contacted.

For a list of all current job opportunites, please visit our website at www.cansub.com

www.suretuf.com PLASMA TABLE OPERATORS EXPERIENCED LABOURER Will train qualified candidates.

Applicants must have welding background.

Driverâ&#x20AC;&#x2122;s license required. Reliable, team player.

Wages depend on experience. Benefits available.

Performance bonuses.

Only those to be interviewed will be contacted.

ConĂ&#x20AC;dentiality will be respected.

Apply in confidence to: Fax (780) 808-2689

C32

PIPELINE NEWS July 2008

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