Pipeline News April 2009

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

April 2009

FREE

Volume 1 Issue 11

Focus Edition

Downhole Tools

Leonard Thieven, service tech with Kash Downhole Anchors Inc., rebuilds a TMA belly spring anchor.

Photo by Brian Zinchuk

$720 Million Deal Page B1

It’s all about jobs Page A20

Lloydminster Bonspiel Page C6

CHECK OUT THE NEW OILFIELD EXCHANGE C27 All Parts & Service For Makes and Models!

Phone:

637-2121 G N I S A E L • S T RVICE • PAR ABLE

SALESGE•NSSETESERVICING • MOBILE SERVICEa.mAV. -A5IL:00 p.m :00

n • Mon. - Fri. 8

et, Esteva 89 Escana Stre

On Call 24 Hours

a Day

332-2121 Toll Free 1-866-

24

Fax: (306) 637-21

Serving Saskatchewan & Manitoba

A2

PIPELINE NEWS April 2009

Province $48.75 predicts Oil

News

Notes CNN takes notice

Saskatchewan’s airwaves were abuzz on March 4, when CNN.com ran a good news story about Saskatchewan on its main page. For a brief time on that day, it was one of the most popular stories on one of the world’s premier news websites.

The story highlighted Saskatchewan’s economic strength, noting that unemployment had dropped in this province when all other provinces have seen it rise.

The story also made a point of highlighting the Bakken oil play and carbon dioxide sequestration.

The story can be found at: http://www.cnn. com/2009/WORLD/americas/03/04/saskatchewan. economy/index.html

Harvest holds off on SE Sask Harvest Energy Trust will be holding o on southeast Saskatchewan right now, and instead be focusing on Alberta properties according to John Zahary, president and chief executive oďŹƒcer.

The trust has elected to defer capital spending on some projects future periods with better prices. Upstream capital spending will be reduced to $170 million, down from $260 million, resulting in forecast production of 50,000 bbls of oil equivalent per day, down 11% from 56,000 BOE a day in 2008.

The focus will be on the tie-in of some of Harvest’s high productivity natural gas wells in central Alberta, completions and tie-ins at Hay River and some EOR activities which will be economic even at current prices, said Zahary. Although the southeast Saskatchewan light oil horizontal projects are economic at today’s prices, the trust will be hold o on those for now, along with gas and light oil opportunities in the Red Earth/Peace River area, he said.

Nu Vista buys in NW NuVista Energy Ltd. entered an agreement to purchase approximately 1,600 BOE per day of production, primarily in the Ferrier/Sunchild, Wapiti and northwest Saskatchewan core areas for about $55 million. This acquisition closed on Jan. 29, 2009.

„ By Brian Zinchuk Pipeline News Regina – The provincial government’s 2009 budget projects oil priced to average $48.75 per barrel for WTI oil for this ďŹ scal year. Last year the province budgeted $82.36 per barrel.

Land sales are also expected to nosedive, both in volume and in dollars per hectare.

The $48.75 is derived from an expected $45 per barrel in 2008, and $60 per barrel in 2010.

At that rate, the March 18 budget expects $573.1 million in total oil revenue. That’s down from $1.488 billion from oil for 2008-2009.

For natural gas, the province is projected revenues of $102.2 million at a rate of $6.25 per gigajoule in 2009 and $7 in 2010.

Coincidentally, oil on budget day closed at $48.14 per barrel.

Crown land sales for this year are projected at $127.8 million, down from $192.5 billion budgeted and $928.1 million realized last year. While the average price per hectare for land came in at $1,289 in 2008-2009, that’ is expected to drop by over threequarters to $300 a hectare for 2009-2010 Drilling for oil in 2009 is expected to drop to just above 2005 levels, around the 2,100 well range, before coming back up to around 2,250 in 2010. That would put drilling activity in 2010 close to 2006 and 2007 levels, but behind 2008.

Natural gas wells are forecast to drop to around 1,000 from around 1,200 in 2008. In 2010, the province is predicting a further drop in natural gas drilling to around the 800 well range, despite a projected rise in natural gas prices.

Boyd conservative Energy and Resources Minister Bill Boyd noted they have

taken an average of a wide ranging analysis, and actually lowered what number it came up with for an estimated oil price. “We think it is a very conservative number, a number we’re comfortable with,� he said after the budget was tabled.

That number is a less than half of what was realized in 2008, with an average of $99.65 per barrel.

That also accounts for oil’s slide from expected top performer to second ďŹ ddle in expected nonrenewable resource revenue. Last year, the province expected $352.6 million from potash, and got $1.5 billion. This year, it’s expecting $1.926 billion from potash. Potash actually beat out oil revenues last year by $11.2 million, but that doesn’t include the $928.1 million in crown land sales.

The provincial budget forecasts less drilling, particularly for natural gas, in 2009-2010, combined with lower prices for oil and natural gas.

FISCAL-YEAR NON-RENEWABLE RESOURCE FORECAST ASSUMPTIONS

" % #

. .+

/ )1

/ -.

/ 0)

" #

*+) )

**) )

*(0 1

)1. .

" % #

,0 /-

.) *-

/) *-

/. *-

! " % #

+/ *0

,- 0)

-) 1*

-- *1

Prairie Mud Service “Serving Western Canada With 24 Hour Drilling Mud Service�

Head OfÀce:

Estevan, Sask.

Tel: 634-3411 Fax: 634-6694 Ray Frehlick, Manager Cell: 421-1880 Ken Harder Warehouse Manager Cell: 421-0101

Calgary Sales OfÀce: Tel: 403-237-7323 Fax: 403-263-7355 Chuck Haines, Technical Sales Cell: 403-860-4660

Swift Current Warehouse: Derek Klassen - Cell: 306-741-2447

Environmental Division Darwin Frehlick - Cell: 421-0491

Lacombe Warehouse: Darcy Day Day - Cell: 403-597-6694

Kindersley Warehouse: Len Jupe - Cell: 306-463-7632

Mud Technicians JAMIE HANNA Cell: 421-2435

JIM MERKLEY Cell: 483-7633

WAYNE HEIN Estevan, Sask.

Cell: 421-9555

IAN SCOTT Oxbow, Sask.

Cell: 421-6662

JASON LING Carlyle, Sask.

Cell: 421-2683

GERALD SMITH Cell: 421-2408

CHAD STEWART Cell: 421-5198

PIPELINE NEWS April 2009

Reece acquired

by PennWest

By Brian Zinchuk Medicine Hat – One of the most vocal junior producers in Saskatchewan is taking a breather, selling his company and maybe spending some time on his Harley.

Reece Energy Exploration Corp. is being acquired by Penn West Energy Trust in a paper deal worth approximately $92.2 million, including debt.

Lorne Swalm is president of Reece and largest shareholder, at about 21 per cent, while management staff hold about four per cent.

The deal involves an exchange of eight Reece shares for one Penn West Trust unit. Penn West will reduce its 2009 capital program by $40 million, the debt it anticipates it will assume under the deal.

Based on 20 trading days leading up to March 9, the exchange places a valuation of $1.39 per Reece share, a 50 per cent premium on Reece’s closing price that day. Reece is issuing approximately 4.6 million trust units.

The deal is anticipated to close at the end of April, provided there is agreement of two-thirds of Reece’s stockholders.

While the exchange it’s a premium for right now, that’s down from the lofty heights the stock had reached last June, at over $4.50 a share, at the time the price of oil peaked.

“The [Saskatchewan light oil] assets go very nicely with what we al-

ready hold, so we felt it would be a good move to make, especially since we are already in that area,” according to Leanne Murphy, investor relations analyst for Penn West.

Reece may be based in Medicine Hat, but all of its production is in Saskatchewan. Their core production area at Dodsland, north of Kindersley, where there are about

75 net wells between light Viking oil and gas. They are also partnered with Aldon Oil of Weyburn, TriStar, Crescent Point, Duce Oil and Renegade, in holdings in the Southeast. “We bought quite a bit of Bakken potential,” Swalm says.

Reece also has lands in the lower Shaunavon play.

In total, Penn West wil aquiare 2,100 BOE

production, with two thirds to light oil and one third in natural gas.

There are 75,000 net undeveloped acres in the deal.

As for the staff, Swalm says it will be up to Penn West. “I suspect some of the staff will go over.”

But they don’t want another president, so he’s out. ɸ Page A8

News

A3

Notes

Tristar picks up private company On March 2, 2009, TriStar Oil and Gas Ltd. completed the acquisition of a private southeast Saskatchewan company through the issuance of approximately 2.5 million shares and payment of $8.6 million of cash, including the assumption of the private company's net debt. The acquisition included 550 barrels per day of light oil production and an operated production facility within TriStar's Bakken focus area with 2.0 mmBoe of associated proven plus probable reserves based on TriStar's internal reserves estimates. The private company lands also include 10 net sections of prospective Bakken lands upon which Tristar has identified 32 net additional drilling locations.

The acquisition comes at the same time TriStar worked out a mammoth deal with Talisman Energy Canada and Crescent Point Energy Trust on Talisman’s southeast Saskatchewan properties. In 2008, TriStar picked up Kinwest Corporation, Bulldog Resources Inc. and Arista Energy Limited.

Pearl expects second CSS cycle results Pearl Exploration and Production Ltd is continuing its cyclic steam stimulation (CSS) at Onion Lake, a core heavy oil property in Saskatchewan, near Lloydminster.

Pearl last year produced an average of 2,274 BOE a day from 50 wells on the property. Pearl has an 87.5% to 100% working interest in 41 sections of land.

Pearl initiated two single-well pilots at Onion Lake in 2008. Positive results were achieved from both pilots.

Each well topped 200 bbls of oil a day.

The second CSS cycle is expected to be completed by the end of March and the company will use the information to make a decision on development of a commercial CSS project. Besides the potential CSS projects the company said it has the potential for 100 conventional development locations at Onion Lake.

Evraz lays off more

Reece Energy’s assets in west central, southeast and southwest Saskatchewan were a good Àt for Penn West Energy Trust, who is acquiring the junior company in a $92.2 million paper deal. Here, Wayne Deschner checks out a well for Reece north of Kindersley last year.

File Photo

In late March, Evraz laid off 75 more staff at its Regina steel mill, formerly known as Ipsco. This follows more than 100 laid off in January.

The company will reduce its shifts from four to three, running five days a week instead of seven, according to Greg Maindonald, vice president and general manager of Regina Evraz Steel. The cutbacks are related to oil and gas drilling, he said.

The company is a leading supplier of tubulars and steel for the Saskatchewan oilpatch.

A4

EDITORIAL

PIPELINE NEWS April 2009

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 Brian Zinchuk - Estevan 1.306.634.1015 SOUTHWEST Swift Current 1.306.634.1015 NORTHWEST Geoff Lee - Lloydminster 1.780.875.6685

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 1.780.875.6685 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 is now available online at www.pipelinenews.ca 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 /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 or 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.

Pipeline News will not be responsible for manuscripts, photographs, negatives and other material that may be submitted for possible publication.

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 information 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 Living in caves ugly, too After years of the high life, the Bang of the Boom, the oilsands have taken a hell of a beating over the past few months. Billions in projects that were supposed to drive not only the Fort McMurray, but Albertan and Canadian economies for the next several years went up in smoke last fall after refinery after upgrader after expansion was cancelled or postponed.

In one case, we’ve heard of a pipeline welder who showed up to work one day, and was told everyone was being sent home, except for a few welders. Their job would be to cut up all the work they’ve done so far, because the project was being put off and the pipe wouldn’t be going in the ground. This welder, however, got sent home, like so many others.

The projects have been canned or put off because of precipitous drop in the price of oil, a heavy left after a haymaker that has left the oilsands stunned.

Now, of all things, National Geographic has come along to deliver the sucker punch that is going to cause the oilsands to stagger to the mat.

Nothing like being beaten when you’re down.

The March edition of National Geographic (www. nationalgeographic.com) delivers a crushing blow to the oilsands’ glass jaw. In its stunning pictures, and a sharply biased story, the piece refers to the Syncrude and Suncor upgraders as “dark satanic mills.”

It’s going to be really hard to recover from a blow like that. Basically, National Geographic described the oilsands as the spawn of Satan.

The best counterpunch we’ve heard so far has been CBC/Globe and Mail editorialist Rex Murphy.

In a whithering commentary you can find at www. cbc.ca/national/blog/video/rex_murphy/, (look for the Feb. 27 edition) he points out that, “Getting oil out of the ground has never been pretty. Getting anything out of the ground has never been pretty. An

open wound on the fair bosom of Mother Nature could be the caption of every single mine that has ever existed on this earth.”

He goes on to explain “If we want to live the way we do in the 21st century, and apparently we do. If we want to have jobs, houses, hospitals, schools, universities, cars, communications, a military, a transportation network, getting stuff out to the ground, and finding energy to run the world, is an absolutely necessary thing.”

For pretty much everything we do or have, including producing National Geographic, Murphy makes the point, “all the elements of which were harvested out of from ugly mines, or out of deep black, sludgy wells, that people sweated to build, and risked money to start.”

It’s like when Jack Layton flew over the Fort McMurray area and then pronounced judgement during the last election. How did he fly? What got him airborne? It wasn’t flapping his arms, although perhaps he could have done it with hot air.

This is not to say that the oilsands, or oil industry, is perfect. The oilsands needs to get up to snuff with the rest of the industry, where reclamation actually means putting things back the way they were, especially in the surface mining operations that get all the pictures taken of them.

In a manner, however, they already have. The impact of in-situ recovery, a la Steam Assisted Gravity Drainage (SAGD) is miniscule in comparison to displacing every cubic meter of soil in a surface oilsands mine. In-situ recovery is the wave of the future, and will keep our economy rolling for years to come. Reclamation after an in-situ operation is child’s play compared to cleaning up a tailings pond.

Yes, easy oil is rapidly dwindling. Yes, operations like heavy oil and oilsands are becoming necessary to fuel our economy. And yes, sometimes it is not pretty.

But then again, neither was living in caves.

PIPELINE NEWS April 2009

A5

Opinion Waiting 60 years for air ambulance highways, can be much, much longer. Indeed, unless you bend the rules of physics, making it to a major trauma centre in under an hour is pretty much impossible by wheeled ambulance, especially if you factor in dispatch times.

The Globe notes that British Columbia, Alberta, Ontario and Nova Scotia have helicopter-based air ambulances. The rest of the country, does not.

Brian Zinchuk That’s beyond surprising. It’s shocking. A population the size of Quebec does not have a helicopter air ambulance? That’s ludicrous. The same can be said for Saskatchewan, being as spread out as it is.

Indeed, I’ve had a family member that ended up It’s funny how the death of someone ‘important,’ being transported by helicopter – after a motorcycle like a B-list actress married to an A-list actor, can get the national media to stand up and take notice. accident in southern Alberta. In Saskatchewan, it On Mar. 20, the Globe and Mail realized that would have been by road, or airplane if absolutely Natasha Richardson, the unfortunate skier, died, necessary.

The problem is, you can’t put down an airplane and there was no helicopter to help her if she had beside an oil rig, or on a right-of-way, or highway. needed it.

She spent 40 minutes in an ambulance getting You can’t land on a cutline, or beside a fly-in fishing to the first hospital, and another hour in an ambu- camp at the lake. You need to rely on ground translance to a trauma centre before being flown to New port to move the patient to an airstrip.

Helicopter air ambulances are not new by any York. stretch.

In fact, one of the first practical uses of heliIn the end, she died.

Sounds pretty typical for anyone who lives and copters was in the transportation of injured soldiers works in the boonies, i.e. outside of Regina and Sas- during the Korean War, in the early 1950s. That’s katoon. A local ambulance takes you in for stabili- nearly 60 years ago. Back then, a wounded soldier zation, and hopefully you’ll survive long enough to was strapped into a pod attached to a landing skid.

Remember M*A*S*H? That’s it. make it to a trauma centre.

Yet we here in Saskatchewan still have not got The ‘golden hour’ of treatment in rural Sasaround to getting our own helicopter air ambulanckatchewan, where all the oilpatch, agriculture, forestry and mining jobs are, as well as most of the es.

From the top of the pile

One of the difficulties with medical dispatch is locating just where the patient is. With GPS commonplace these days, built into cell phones (though not active through SaskTel, yet), the chopper can be told exactly where to go. A cheap program for Garmin GPS units allows you to enter in land locations, and it will be translated into latitude and longitude, meaning that any sign on a lease can be a landmark.

Saskatchewan should have three air ambulance bases – Regina for the south, Saskatoon for central, and Prince Albert or La Ronge for the north. Each of the base hospitals – North Battleford, Yorkton, Swift Current, Estevan, Lloydminster, for example, should have helipads added right away, in case the patient can’t wait to make it to the tertiary hospitals.

Thankfully, the provincial government announced in February it is looking into helicopter air ambulances. They are working with Ontario’s air ambulance provider in assessing the implications of adding helicopters to Saskatchewan’s air ambulance fleet, according to a government press release.

Frankly, it’s a no-brainer. How many lives could have been saved in the nearly 60 years since helicopters came to the fore in transporting medical patients? This is not rocket science. Order some birds, build some helipads, get some people trained as flight medics, and get it done.

Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@sasktel.net.

The glum index gives us reason to smile You don’t need one of those hand-held tricoder devices from Star Trek to find sources of life in the oil and gas energy or the overall economy. All you need to do is check the glum index. It works like this. The gloomier the news in the media, the closer we are to a major rebound.

The inverse is the happiness index. When the media report the economy in terms of booms, like they did last summer, you know the end is near.

Coincidentally, the stock market began to tank just as the so-called boom was being called a boom.

Now, the stock market is being compared to 1929 so this is a good time to buy. Trust the gloom index that stands at nine out of 10 with reporters tripping over each other to put the worst possible spin on the economy.

The words plunge and freefall are used almost with a sense of delight to describe what is a sellers' market on the stock market by large investment players.

It was reported in March, that the U.S. GNP shrank by a whopping (yes whopping) 6.2 per cent in the waning months of 2008. Can recovery be far behind given the verbal clues that signal the up and down glum and happiness indices?

President Barack Obama’s economic stimulus package has already sown the seeds of a recovery. A little more sunshine and water are all that’s needed

Lee Side of Lloyd Geoff Lee

for some of these seeds to start sprouting.

OPEC is cutting production and sooner than later, the laws of supply and demand will kick up prices.

In Canada, all of the major banks reported profits in their last quarter and a panel of mining experts from Bay Street was decidedly bullish on commodity prices. There’s two rays of hope right there.

Locally, oil and gas companies continue to advertise for new help and landlords, at least in the Lloydminster area, where I am based, continue to get calls asking about vacancies.

Another sign the worst may be over is expectations. Most energy companies and pundits have all come out and stated the second half of the year

will be better than first half. That in itself could be a self-fulfilling prophecy.

There's a paradigm shift underway these days, similar to how the Swiss watch makers who didn’t think digital watches would ever catch on, and as a result, their fortunes plummeted for years.

Maybe that’s what is really happening now.

Today, there’s a green shift underway and once that catches on, the economy could soar again.

The greening of the oil and gas industry is already generating a lot of new jobs and technology from the regulations that govern the environmental side of the industry.

Most of the oilsands deposits area in-situ and the spinoffs from environmental protection are endless. That can only mean good things not only for the image of the industry but for the environment and the economy as well. Environmentalists could turn out to be the industry’s best friend.

With Obama’s green energy policy, it’s not one form or energy over another. It greening the fossil fuel industry while developing the renewable energy field as well. Green is also the colour of money.

Put away your tricoders. If you are feeling glum lately, you know there is life in the economy and in your own hopes and dreams. But don’t get too happy. We know what happens then, eh?

PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR WELCOME. Email to: brian.zinchuk@sasktel.net

A6

PIPELINE NEWS April 2009

Oil Chat with Bruce Penton

Bruce Penton, associate-editor with the Medicine Hat Daily News and syndicated columnist will be contributing a Q&A with inÁuential Canadian Petroleum personnel each month for Pipeline News.

BILL BOYD Minister of Energy Resources Minster of Intergovernmental Affairs Bill Boyd is one of the founding members of the Saskatchewan Party and has been involved on the Saskatchewan political scene for nearly two decades.

Mr. Boyd was the MLA for the Kindersley constituency from 1991 until he stepped down in 2002. Originally elected in 1991 as a Progressive Conservative MLA, Mr. Boyd became the leader of that party in 1994. He was re-elected in 1995. In 1997, he and three of his colleagues joined with four Liberal MLAs and founded the Saskatchewan Party. When Bill was re-elected in 1999, he was one of 26 MLAs elected under the Saskatchewan Party banner. He was once again elected in the Kindersley constituency in the Nov. 7, 2007 provincial election, when the Sask. Party won the election and formed government.

Premier Brad Wall named Boyd the Minister of Energy and Resources and also Minister of Intergovernmental Affairs.

Bill and his wife Lynn operate a pedigreed seed feed farm near Eston. They have two children in their twenties.

He chatted in mid-March with Bruce Penton, a couple of days before the government of Saskatchewan under Premier Wall brought down a balanced budget on March 18.

Pipeline News: What’s been more fun for you, being part of the Government of Saskatchewan or farming as you did for five years between 2002 and 2007?

Bill Boyd: I don’t know. They’re very different, of course. The farm has been a lifelong business affair and a lifelong love, but being associated with a new government and changing the direction of Saskatchewan has always been a lifelong goal as well. I don't know if you can compare them in terms of that, but I’m very much enjoying what I’m doing here right now.

PN: What was it that sparked your desire to return to politics after being out of it for five years?

Boyd: I think a great opportunity to see the government change. The premier, then the leader of the opposition, asked me if I would consider it. So I took the opportunity to think about it and wanted to be part of a government change.

PN: Were you promised the Natural Resources department at the start of the campaign or did that happen after the election?

Boyd: No. I’m certain the premier made no promises to anyone about any positions, and certainly none was made to me.

PN: But I’m assuming you were happy to get the portfolio of Energy and Natural Resources?

Boyd: Oh, very much so. It’s a great honour to get this Energy and Resources department and Intergovernmental Relations. I think it’s the best ministry there is.

PN: We’re in an era of crazy oil prices which I suppose adds quite a bit of stress to your job. What has it been like?

Boyd: It’s been a surprise to everybody to see oil prices rise as quickly as they did last year and also to see the drop as quickly as they have. It certainly challenges a government from a fiscal standpoint to some degree to see that runup and then backing off of prices. I think we’ll probably see prices stabilize at a little higher level. At least that’s what our officials are indicating. But from a revenue standpoint, it does make it more challenging.

PN: Oil’s around $45 a barrel right now. What price do you see it stabilizing around?

Boyd: We are forecasting for this year just that — $45. I think a lot of industry analysts are saying they could see it rise toward the end of the year, if the economy in the United States starts to turn around and I think that's a big question mark. But we are using a very conservative number of $45 for our budget.

PN: Nov. 7, 2007, do you remember that day?

What’s one moment from that day you won’t ever forget?

Boyd: I think one moment is when it was confirmed that the Sask. Party was going to be government. I was in Kindersley at my campaign office with my family and surrounded by friends and supporters.

PN: It was a long time coming, eh?

Boyd: Very much a long time. You know, first elected in 1991 and it was a long time before we saw a government change and I’m very happy and proud to be a part of it.

PN: It’s been 16 months since you were elected. How would you rate your government’s performance?

Boyd: I think our government’s performed very well. If I were to grade it, I’d probably say a B or B+, something like that. Certainly not perfect, but doing pretty well. That’s probably a pretty conservative grade if you think about it. Saskatchewan has vaulted to the head of the pack in terms of economic performance in Canada and leads in terms of employment numbers. We are going to have a balanced budget in a couple of days. A surplus budget. That will be a standout in all of Canada as well.

PN: Having a surplus will certainly garner headlines across Canada, that’s for sure.

Boyd: I think it will. I think it’s going to be . . . even though Saskatchewan is not untouched by the economic realities that we’re facing on a global scale, Saskatchewan's doing pretty darn good compared to other places.

PN: What kind of an effect has the royalty rate situation in Alberta had on the oilpatch activity in Saskatchewan?

Boyd: Well, it’s had an impact, there's no doubt about it. It’s difficult to measure and I'm not in posi-

tion, nor would I want to be, in a position to criticize decisions that were made in Alberta. However, I think that Saskatchewan, the very fact that we made the decision early on that we weren’t going to be changing royalty rates, clearly indicated to the people in the oilpatch that we were going to have a stable regime in respect to that. We saw a huge amount of land sales last year, a great deal of drilling activity in our province and I think that stability has been a positive feature of the government.

PN: You referred to land sales. What kind of records did you achieve last year?

Boyd: In 2008, we were over a billion dollars in land sales and I think the previous record was in the area of $250 million, so approximately four times the previous record, so a tremendous year. Now, 2009 is going to be more challenging. We’re going to see land sales much lower, unless we start to see a big increase in oil prices. Of course that’s a big caveat that you’d apply to all these questions, I guess. But the companies that paid high prices for land in the sale last year will be wanting to seek a rate of return on that investment, so we think the drilling activity will remain strong.

PN: In your opinion, what’s the single greatest accomplishment of your government so far?

Boyd: The biggest single? I don’t know if I can nail it down to one. But as a fiscal conservative, if I had to nail it down to one, I’d say paying down 40 per cent of the debt of the province of Saskatchewan in one year.

PN: What’s one thing about life as an MLA would you like to change, if you had the power? It must be a tough life.

Boyd: If I were to be able to change one thing, I’m not sure what it would be.

PN: How about more free time, or something like that?

Boyd: Well that would be nice. There’s lots of meetings, lots of requests, lots of travel. If one thing could change, I guess it would be the travel. If there was an ability to move much quicker than we’re able, that would be nice. The driving and time in airplanes seems like a waste of time in a lot of respects, but it’s a necessary part of the job.

PIPELINE NEWS April 2009

A7

BILL BOYD Minister of Energy Resources Minster of Intergovernmental Affairs

“I love golf more than it loves me”

PN: Given your long history in politics with an old political foe like Dwain Lingenfelter, how will the political winds change if and when he becomes leader of the New Democrats, especially since he’s coming from a career as an oil executive in Alberta?

Boyd: I don’t think it’s a foregone conclusion that Dwain Lingenfelter is going to win the NDP leadership. But should he, I don’t think he’s going to do nearly as well as a lot of people think he’s going to, or some people think he’s going to. I think the very fact he was part of an administration in the past that nationalized the potash industry and then jumped full square out of that box and into a senior executive role in an oil company, which is largely the arch-nemesis of the NDP administration, and then back to his socialist roots again, I think a lot of people will think he’s a little bit confused in his direction. And the very fact that Mr. Lingenfelter isn’t exactly a spring chicken anymore is going to be a bit of a deterrent I think for him as well. There’s a whole generation of people in Saskatchewan who don’t even know who he is.

PN: You and him go back a long way, don’t you?

Boyd: Yeah, he was here when I first came to the Legislature. He’s probably 10 years older than me approximately, something like that. But he and I had a good working relationship over the years. I’m surprised, frankly, that he’d be interested in coming back. I don’t think it’s been as easy as he thought it was going to be, though.

PN: Somebody told me the oilsands potential in Northern Saskatchewan is greater than what they’re doing in Fort McMurray. If that’s true, when can we expect to see some development occurring there?

Boyd: I’m not sure the oilsands . . . what has been demonstrated to be in existence is greater than what’s in Alberta but it is very significant, there’s no question about it. I’ve seen estimates running as high as 10 billion barrels in play. That’s just an estimate, but nevertheless, I think more and more of that potential production is being proved up every day. I think,

though, it’s going to take a number of things. First of all it‘s going to take a higher price than what we’re seeing now. There’s going to be a need for infrastructure to be put in place, of which of course we recognize as a government that’s it’s a responsibility of ours in terms of things like power, probably natural gas, probably an infrastructure of roads and we’re certainly recognizing that that’s going to be a responsibility partly of government. I think the industry as a whole right now is looking at how to operate with these levels of pricing. As soon as you see the price structure change, I think we’ll start seeing development move forward. There’s also a few technological challenges that they have. The resource is going to be extracted by in-situ methods rather than strip mining activity, which is done in Alberta. It’s deeper into the ground on the Saskatchewan side, so there’s a few technological challenges, engineering challenges that have to be met yet. It’ll likely be horizontal drilling, steam assisted, but again there are some challenges in terms of that. But I think the companies that are involved are looking at various models to extract that resource. and I’m sure they’ll be successful at that. But I suspect at $45 a barrel, it’s difficult to raise the financing for these very vast projects. But I certainly think there’s potential there and I’m sure we’ll see oilsands development on the Saskatchewan side before very long.

PN: It’s pretty exciting, isn’t it?

Boyd: It could be an absolutely huge project for Saskatchewan. A great opportunity for wealth generation. A great opportunity for employment and jobs for First Nations and Metis people in the area and obviously a bonanza of revenue for the Province of Saskatchewan.

PN: What do you do to relax on a day completely away from politics?

Boyd: Well, I like to read in the winter time, when it’s too cold to go outside and relax that way, watch a movie, that kind of stuff. In the summer, I like to golf.

PN: What are your favourite courses in Saskatchewan?

Boyd: There are two or three that are favourites. I like Nipawin, I like Elk Ridge and I like Riverside in Saskatoon. I also like my little nine-hole local course at Eston.

PN: If it was my treat, what would you order at a fancy restaurant?

Boyd: Greco’s in Regina is not real fancy but it’s a great restaurant and I would probably order one of the chicken dishes that they have.

PN: When you’re in the car for a couple of hours — and you indicated earlier you do a lot of driving — what do you listen to? What’s in your CD player, or do you listen to the radio?

Boyd: I usually listen to the radio, actually. I’m not really musical, but I do like to listen to a wide range of music.

PN: Who’s your political idol?

Boyd: Hmmm. Political idol . . . you know, probably Ronald Reagan.

PN: I guess if you said Pierre Trudeau, they’d kick you out of the province.

Boyd: (Laughs) No, Pierre Trudeau didn’t come to mind.

PN: When you were in high school, was politics something you thought might be in your future?

Boyd: Actually, yes, I did. I thought at some point in my life I’d like to take a run at it. I didn’t know whether the prospect would ever come around, but it did, and I’m glad I did it.

PN: Where are you more skilled — in the kitchen, on the golf course or in the garden?

Boyd: Certainly not the kitchen. I’m pretty good at growing things, since I’ve been in agriculture all my life, so that’s probably my best. I love golf more than it loves me.

PN: Who is your favourite MLA across the floor of the Legislature?

Boyd: Currently? Oh, I don’t know. I don’t mind Deb Higgins from Moose Jaw. I would call her a level-headed New Democrat, if there is such a thing.

PN: Fifteen years from now, Bill, where are you going to be and what are you going to be doing?

Boyd: I hope I’m somewhere warm in the summer and a few holidays in the winter where it’s warm as well. Probably still on my farm, but taking opportunity to travel with my wife.

PN: Are you suggesting you’re not going to be involved in politics 15 years from now?

Boyd: I would very much doubt it.

PN: Why is that?

Boyd: I’ve been at it a long time and I think there’s a need for change once in a while and I think my term has probably gone more than once in a while.

• Full Service Trucking Company • Top Quality Rig Moving Experience

Trucking Estevan Ltd. 88 Devonian Street, Estevan, SK. Ph: 634-4041 (24 hr) • Fax: 634-4040

www.samstrucking.ca

A8

PIPELINE NEWS April 2009

Reece acquired by PennWest

ɺ Page A3 Pipeline News asked Swalm “Why?” “There are business cycles. Different companies are on different points of cycles,” he responds. “You come to these plateaus – spend, grow, recharge. We are at one of those plateaus.”

The company had become big enough to become of interest of Penn West, Swalm says. “We ramped ourselves up to get to that point.”

Looking out to the future, Swalm said things could have gone up, or they could have gone down. “It can get quite ugly. Oil can drop to $20” he says.

Swalm has lived through that before, and was not looking forward to it.

He envisioned three scenarios, and placed an equal probability on each one.

The first would see the price of oil drop, and it would “get ugly” for one to two years. Under that scenario, “We would lose a lot of value.”

The second scenario would have Reece “just per-

colate along.”

“We can survive quite nicely at that,” he said, referring to a certain oil price. They would drill some wells, but it would be difficult to maintain production because of the decline rates of wells. “We can’t really show accretive growth for the share price,” he says.

“I’m the biggest shareholder. The only reason to invest in a junior oil and gas company is to see them double or triple in a medium term.”

The third possibility would see a short turnaround in a matter of months, with a quite snap back to oil prices around the $85 to $100 range. That would put their share price back in the $3 range at the end of the year, but more like the middle of 2010, he says.

Dinghy By cashing out now, Swalm says it is like “attaching a dinghy bouncing in rough waters to a big ship.”

This stock-swap strategy gives Reece investors liquidity. If current shareholders tried to divest themselves of Reece, it would have had a downward pressure

GEE BEE CONSTRUCTION KIPLING SASK

Alan Batters 736-2332 (Office) 736-7855 (Cell) 736-2334 (Fax) geebee@sasktel.net

TRENCHING EXCAVATING GRAVEL TRUCKING WATER&SEWER DEMOLITION PIPELINE&OILFIELD CONSTRUCTION PICKER TRUCKS

on the stock price. But if those same investors divested Penn West Trust units, the impact would be minimal.

“I’m delivering the Reece shareholders where they gat get liquidity,” Swalm says.

Alta, base, Sask ops Reece has been around in various forms since the 1980s. The company was moved to Medicine Hat in 1997 in large part because of Swalm’s dissatisfaction with the policies of the then-current government and the general attitude towards business in Saskatchewan.

“The Saskatchewan political environment kept voting for the same stuff,” he says. Saskatchewan was not friendly to entrepreneurial risk taking. They were roadblocked, taxed and demonized.

“You were a bad person and it should be taken away because you were successful,” Swalm recalls. Alberta, at the time, was more open for investment, but they never bought any wells in Alberta.

The political environment in Saskatchewan is moving in the right direction, even better than Alberta, he says. Swalm at one point was campaign manager many years ago for the current Minister of Energy and Resources Bill Boyd.

So now what?

What will Swalm do now?

“I don’t know. I wound not jump into anything for four months. I need a break. I need to fix a fence, take some holidays, and [then] poke my head up.”

“I’ve learned a lot of lessons over the years, come in contact with good and bad people, and can tell the difference.”

One of those lessons is keeping operations more centralized. He would structure the company differently, too.

“I love our assets. We spent a lot of time getting them there.”

If he does get back in business, he says, “I’d be back in Kindersley or Estevan or Lower Shaunavon. Saskatchewan has come a long way.”

OPTIMIZE PRODUCTION The Eagle Traveling Valve

The Eagle Cyclone Plunger Assembly

Together • Decreased Swab Costs after Fracs in the Cardium & Belly River by$ 28,000 per well.

• Increased oil production by 47 % In the Browning South Frobisher pool and reduced pump changes from an average of every 9.5 months to 24 months as of this printing. Production went up and the company slowed their pumpjack down.

• Increased pump run life in the Montney from 6 pumps run, with the longest run life of 24 hours, to 20 months continuous producing. Prior to the installation of these products the company considered abandoning the well due to sand and gas.

• Increased pump run life in the Bakken formation. The company was pulling a pump every month or so. Since the addition of these two products no pump changes have been recorded and the wells continue to produce.

• Increased pump life on a well in the Ostracod from every 1 to 3 to months to continually producing for 10 months (as of the date of this printing) & increased production volumes by 327 % .

www.connpumps.com Division of innovative OilƤeld Consultants Ltd.

New advancements in rod pump technology by Eagle.

In times of lower prices producers look for ways to optimize. The Eagle Solution Valve and Eagle Cyclone Plunger components when installed on API rod pumps are designed to increase pump eƥciency, prevent gas lock, gas and ƪuid pound, and extend life in the presence of sand & other debris. Works equally well on horizontal and slant wells as it does on vertical wells.

For more information contact Conn Pumps, Canadian distributor for Eagle Products. In Calgary at: (403) 262-5151 and in Saskatchewan at (306) 636-2013.

PIPELINE NEWS April 2009

A9

Plenty of new, young faces in Melita

Melita, Man. Mayor Bob Walker

Melita, Man. – Melita Mayor Bob Walker was born and raised in the small southwest Manitoba community.

There was a time he says he used to know who lived in every house in town.

That was a few years ago. Now, there are times when he doesn’t recognize people downtown.

“I used to be able to tell you who lived in every house in town. Now, I can’t tell you my own block.

“We’ve had a real influx of young people we know are working someplace,” says the former abattoir. He sees the wives, girlfriends and kids, but, “I don’t see the guy because he’s out

working.”

Two years ago, there were 50 for sale signs in Melita. Now, just three or four, he says, and anything open is sold.

“Because of this, the town is doing a new subdivision on the north end,” he says. The subdivision will have around 20 lots, and is planned for this summer.

That’s in addition to a commercial subdivision planned for the highway.

All the growth has meant a demand for recreational services. Two years ago, the town embarked on a $750,000 outdoor swimming pool.

Right out of the gate, the Richardson Foundation, through Tundra Oil and Gas, donated $75,000. That was quickly matched by Penn West Energy Trust. Kids were able to go swimming last summer. Grand Banks Energy Corp provided $5,000, and Petrofund Corp gave $2,000 “It’s huge. If we hadn’t got that off the bat, we probably wouldn’t have

started the pool,” he says.

The arena will soon be home to a new Zamboni, thanks to a further $100,000 donation from Tundra Oil & Gas in late 2008. The Zamboni will be purchased this summer, Walker says.

The curling rink received $25,000 for change rooms renovations and ice making equipment.

The growth means more population to keep schools and civic facilities going.

There is some concern about longevity of the industry, he notes, but there haven’t been major issues sometimes associated with the oilpatch, like rowdiness.

It’s been very good for the hotel/motel business, but it also means

they have been so tied up with oil and construction people, booking availability is limited, Walker notes.

The town’s most recent census pegs the population around 1,100, but Walker says they know there’s more.

Health board numbers indicate the community is old, but that’s not the case, he says.

Penta Completions Supply & Services Ltd. COMPLETE ROD PUMPING, SUPPLY, OPTIMIZATION, DESIGN & FIELD SERVICES

- Steel and Fiberglass Sucker Rod Sales - Dynomometers - Fluid Levels - Vertical and Horizontal Well Rod Design - SAM Pump-off Controllers - Wermac VFD Sales BUS: (306) 634-7399 FAX: (306) 634-6989 58 Devonian Street P.O. Box 667 Estevan, Saskatchewan S4A 2A6

website: www.pentarods.com lhaukeness@pentarods.com mekkebus@pentarods.com jistace@pentarods.com ysever@pentarods.com

636-7001 • #3 Reagh Street, Estevan, SK

Renegade OilÀeld Construction Ltd. Is proud to announce the Grand Opening Of our new shop in Estevan, SK

Fishing & Rental: Overshots Spears Jarring Equipment Drill Collars & Handling Equipment Power Swivels Washover Equipment Pipe Recovery:

Freepoint (For all Tubing, Casing up to 7” & Drill Pipe/Collars) Backoff Equipment (Starting at 5/8”) Chemical Cutters Jet Cutters Perforating Tubing Punches

Casing Jack:

Casing Jacks Power tongs for back-offs and replacing casing

Some of our services include: • Facility • Pipeline Construction • General OilÀeld Maintenance • Fabrication We are currently accepting resumes for the following positions: Superintendents, foremen, truck drivers, equipment operators and experienced ticketed labourers.

Please fax 306-636-1514 or email resumes to: estevanofÀce@renegadeoilÀeld.com

93 Escana St. Estevan Sk. Phone: (306) 634-4095

A10

PIPELINE NEWS April 2009

To the core of the matter, or formation Estevan – Some might think coring is in his blood. Maybe it’s in Gill Blackstock’s core.

Bad puns aside, Gill Blackstock looked at different options, but decided he wanted to set up his own coring business when the time was right.

That enterprise is known as Blackie’s Coring.

Blackstock started off with his family’s business,

working for them until it was sold. “I saw an opportunity to go on my own, and I jumped all over it,” Blackstock says.

His father, Stan Blackstock, was coring since the 1960s. He was coring for potash around Bethune. He still checks up on Gill, swapping stories. “Nearly 50 years later, I’m coring for potash around Bethune.”

“I looked at different options. Why wouldn’t I do something I enjoy doing and feel confident in doing?

“I can train someone to cut a core, but I can’t give them the experience I have, and the feel for what’s going on downhole.

On the lease, his job is core supervisor. “My job is to set up tool, su-

pervise the operation for cutting core samples for the geologist.

When cutting a core, you put your hand on the Kelly bar, he explains.

“You can actually feel it break off the bottom.

Ninety per cent of the time, you feel the break.

The other ten per cent of the time, that’s when the experience comes in.” ɸ Page B11 The ultraviolet lights in Blackie’s Coring core van makes detection of hydrocarbons much easier, in this case by glowing orange. Using Áuids like lighter Áuid enhance the effect.

The place to go to buy or sell a business.

Darryl Fox, B.Admin.,CMA Sales Consultant

201-2750 Faithfull Ave. Saskatoon Sk. S7K 6M6

When hiring Scott Land, YOU hire the Advantage...

• Surface Acquisitions, Freehold Mineral Leasing, Administration Projects • No project is too small or too large • Most active Land Company in Saskatchewan & Manitoba, with a proven 25 year track record • Experienced Field Agents • Competitive Rates, Including an Emerging Company Plan (ECP) package to all Junior Start-up Companies

Tel: 306-382-5075 Fax: 306-382-5073 Cell: 306-292-9388

Scott Land & Lease Ltd.

d.fox@sunbeltnetwork.com

1460 - 2002 Victoria Avenue Regina, SK S4P 0R7 Toll Free: 1-888-939-0000 Fax# 306-359-9015 www.scottland.ca

www.sunbeltnetwork.com

Got Contaminent?

Kurtis Greenman, Mineral Manager 306-790-4350 Chad Morris, Surface Manager 306-790-4363 Laurie Bielka, Assistant Branch Manager 306-790-4360 Crown Sale Inquiries 403-261-6580 Main Line 306-359-9000

How can we help you today?

• Ready Mix Concrete • Concrete Pumping • Excavating • Trenching • Sewer & Water • Crushing & Screening • Road Graveling • Contaminent Hauling

• Pipeline Sand • 3/4” Crushed Gravel • 1 1/2” Crushed Gravel • 3/4” Crushed Rock • 1 1/2” Crushed Rock • Crusher Dust • Pit Run • Clay Fill

All of the Above OilÀeld • Residential • Commercial Carnduff (Head OfÀce) Bus.: (306) 482-3617 Fax: (306) 482-3350 Randy Cell: 482-7647

Give us a call so we can demonstrate our new tri-axle end dumps with sealed gates and 6 air locking latches!

Redvers

Carlyle

Wawota

Weyburn Bus.: (306) 842-6558 Fax: (306) 842-0414 Dennis Cell: 861-1186

On Call 24/7!

Radville

Ogema

Assiniboia

Gravelbourg

Toll Free 1-888-222-7649 - All Locations

PIPELINE NEWS April 2009

A11

Experience and con¿dence key to Blackie’s Coring ɺ Page A10 That includes using procedures to make sure you have it. For example, pulling a sample from the Alida formation, he would pull up on it and

slowly run back down. Again, feeling the Kelly bar, if you’ve taken on weight prior to where you left off, you have it.

An 18 m core sample weight an average 500 lbs (227 kg). When pulling on it, you can feel the tension through the drill string. “It’s like a train effect.

A train pulling away,” he says. “The caboose is the last to feel the jar of the engine.”

“My core barrels can cut 27 m, 18 m and 9 m, but 18 is the most common,” he explains. You get your top formations, oil-bearing zones, and bottom formation. “You can get your whole formation in one core.”

“I have a core trailer, set up as a core van, and

I’m modifying an existing core van, setting it up on a new truck with four wheel drive.”

A core van is a mini lab on wheels. It has tables to lay out the core samples, and ultraviolet lights to bring out the fluorescence of the hydrocarbons. The van provides a clean, comfortable environment for the geologist to work in.

Blackstock does a lot of coring for potash as well as the oilpatch. “In the potash work we’re doing, we’re cutting roughly 90 to 126 m of potash zone.

“There’s no better proof of what’s down there than an actual core sample, whether it’s oil and gas, potash, or coal.”

Coring is not common with horizontal wells, however. “To my knowledge, to date, in horizontal drilling they don’t core. It’s a proven field. To date, that I know of, there’s been three horizontal cores cut, and I’ve done two of them.”

The hardware has changed over the Gill Blackstock Àred up his own coring company in Estevan after the family business was sold.

years, speeding things up along the way. “When I started, we started with diamond bits. It took 12 to 14 hours to do an 18 m core.

“Then they came out with a tri-pack, a polycrystalline cutter, which reduced times to four to six hours. From there we went to two to four hours to cut an 18 m core.”

It makes a difference, because time is money on a drilling rig, he notes.

All that core ends up in the core repository in Regina. When he walks between the racks there, he says “I can see cores I’ve done 20 years ago.”

“I’ve seen a lot of core.”

Quality

LAMICOIDS metal cable tags EfÀcient Service

& m&

Call Linda for more information

Estevan Trophy & Engraving Phone/Fax: 634-6005 Email: estevantrophy@sasktel.net 10/km/ht/Edm Trailer-1 G3 OD#67_6379733

Ph: 1-866-534-1805

EDMONTON TRAILER SALES LEASING LTD. 26420 TWP RD #531A Acheson, AB

w w w. e d m o n t o n t r a i l e r. c o m

Renting All Kinds of Trailers

2009 POLAR DOUBLE CONICAL CRUDE TRAILER 407 CODE 2008 REMTEC FUEL SUPER B

847110608001

904110691001

2008 BEDARD INSULATED SUPER B 407 CODE 2008 KENWORTH WITH ALMAC FUEL TANK

PERCY H. DAVIS LTD.

CUSTOMS BROKERS

Forwarders & Consultants Export/Import Specialists EDI Networking

802110691002

NEW TANKON ACID TRAILER

833110691002

KENWORTH T800 WITH 18" STELLAR BOX BRAND NEW PRE-EMISSION ISX 530

910110691003

50 TON FIXED NECK LOW BED

904110691004

2009 LAZER QUAD FUEL WAGON

International Package Express Service (IPX) HEAD OFFICE North Portal (306) 927-2165 Estevan (306) 634-5454 Regina ...................... (306) 352-2662 Saskatoon................. (306) 244-4847 Regway..................... (306) 969-2126 Moose Jaw ............... (306) 694-4322

Nationwide Services Internet Address: http://www.percydavis.com E-mail Address: info@percydavis.com

910110691004

INSPECTION AND CRANE ENGINEER CERTIFICATION

FOR FOLDING AND STIFF BOOM PICKERS

904110691006

Please Call Troy or Peggy for any of your Parts & Service needs anything from B620 Tank Inspections to CVIP’s

A12

PIPELINE NEWS April 2009

Drilling association blames commodity

By Geoff Lee Pipeline News Calgary –The Canadian Association of Oilwell Drilling Contractors (CAODC) held its 59th annual ball in Calgary on March 13, but anyone who came in work boots felt out of step this year.

That’s because the CAODC has downgrad-

ed its forecasted drilling activity for 2009 in the wake of low commodity prices and tight credit that small oil companies rely on.

This is the first time in over two decades that a revised projection has been made in the middle of the usually busy winter drilling season.

CAODC president Don Herring thinks the environment for drilling may improve in the latter half of 2009 and has held off his previous warning of another forecast downgrade following the province’s three-point incentive program for the energy sector announced March 3.

R.B. (Rick) Kenderdine President Eight Nine Units Serving the Saskatchewan and Manitoba Oilfields for Over 20 Years Suppliers of: A) Topco/Weatherford Float Equipment CTE Float Equipment B) Circulating Equipment (from 88.9 114 mm up to 244.5 mm) C) Surface Hole Reamers 251 mm 311 mm 349 mm

D) Main Hole Reamers 209.55 mm Toll Free:

1-888-748-3877

The Stelmach government will offer up a $200-per-metre royalty drilling credit for new conventional oil and gas wells, and a maximum five per cent royalty rate for the first year of production on new wells.

The program runs from April 1, 2009 to March 31, 2010 and includes work incentives for service rigs.

“We met with the minister of energy and we told him the announcement essentially gives us some confidence that we won’t have to decrease the forecast again,” said Herring.

“It doesn’t give us a lot of confidence that we would actually make a positive adjustment but it might keep us from making a negative one.

“Clearly, the decrease in drilling activity is due to the commodity prices and the ability of investors to get money. In Alberta, there is also the royalty issue which tends to magnify the problem a bit.”

The CAODC is a trade association representing drilling and

service rig contractors throughout Canada and Herring says the mood is glum and spreading.

“It’s not just us but among the operating companies too. There are large multinationals and U.S. independents, for example, that are not as impacted by the credit freeze than some of the smaller companies that require access to bank financing and access to investors through selling shares.

“Banks are not lending money to smaller oil companies at these prices,” added Herring.

“It’s an investor issue but I would like to think if we started to see oil averaging in the $60 to $70 US a barrel range and gas at $7 or $8 dollars we would see quite a bit more activity. Gas is one of the critical issues in the western sedimentary basin.”

Herring says the downgrade in anticipated drilling activity is also due to lower rig counts forecast in October, 2008 – and layoffs are occurring.

“As the rigs get laid down, the crews don’t get called back to work,” said Herring. “That’s a

very hard piece of news to give. It’s a reality, but it’s very difficult for managers or owners of companies to convey to their men.”

Every well drilled supports about 120 direct and indirect jobs, according to the Canadian Energy Research Institute.

The association now expects the number of operating days will be 95,000, well below the 129,000 originally estimated.

Measured in terms of wells drilled, the forecast is 11,176 wells. That’s approximately 3,100 wells shy of the 14,325 estimated in October, 2008 – a 22 per cent downgrade.

This is in line with the revised Petroleum Services Association of Canada drilling forecast of 13,500 wells across Canada, a 21 per cent decrease from the 2008 total.

The number of wells expected to be completed in 2009 by CAODC is projected to be approximately 11,184, compared with the 16,844 wells completed in 2008. The 2009 projection is almost half of the 22,127 wells completed in 2006 and 2005. ɸ Page A13

Fax: 306-634-0071 Office: 306-634-0070

Innovation in multi-stage fracturing Estevan Of¿ce Box 171, Estevan, SK S4A 2A3 P: 306-634-9056 • F: 306-634-9058

1-888-458-2270 458-2270 www.lynco.ca

P.O. Box 240 Midale, SK S0C

Box 935 Hwy #39 West Estevan, SK. S4A 2A7

24 Hour Tank Truck Service (306) 421-5995 • 6m3, 2 Compartment Pressure Truck • 2 - 15m3 Acid Trucks & 30m3 Acid Wagon • Sour Sealed 407 Crude Trailers • Sour Sealed Tandem Trucks • Vac Truck 13m3 • All Equipment is Modern & G.P.S. Equip.

• Fresh Water Available “Where Experience and Dependability Are Just a Phone Call Away”

Vac Service Now Available!

PIPELINE NEWS April 2009

A13

prices and credit freeze for slowdown Éş Page A12 Herring says most of the drilling activity in 2008 took place in northeastern BC “before things started to fall o.

Of course Alberta always has drilling activity but it has nowhere near as much as it has in the past.â€? “In Saskatchewan, we typically don’t see a lot of activity in the ďŹ rst quarter. It tends to be north and west and rigs

tend to move south and east as we get through break up and into summer.�

In the wake of lower drilling counts, CAODC will host a Drilling Conference in Calgary May 26 to present the latest developments and advancements within the Canadian drilling industry.

The conference will also touch on promoting better understanding and awareness of best

“

In Saskatchewan, we typically don’t see a lot of activity in the ďŹ rst quarter. It tends to be north and west and rigs tend to move south and east as we get through break up and into summer

�

- Don Herring practices, innovative well construction processes and regulatory changes as well as presenting new technologies.

There will be a focus on drilling technologies and operations to overcome the challenges of accessing diďŹƒcult geo-

logical targets. The conference will also touch on emerging technologies and innovative rig concepts, drilling equipment, well construction techniques and innovative rig concepts among other topics.

Meanwhile, the

CAODC forecasts a rig utilization rate of 30 percent in 2009 with 262 out 860 rigs actively drilling.

Utilization in the usually busy ďŹ rst quarter is expected to average just 39 per cent with 333 rigs operating.

The last time drilling activity was this low in a ďŹ rst quarter was 1999, but there were fewer rigs back then than today.

The best comparable ďŹ rst quarter to 2009 was the beginning of 1992

with a utilization rate of 32 per cent.

The CAODC estimates there were be only 86 rigs on average drilling during the second quarter, a reduced level not seen in 17 years. The utilization rate will be only 10 per cent.

Some recovery however, is expected in the last half of 2009. A third quarter projection calls for an average of 267 rigs to be drilling, similar to the same period in 2002.

ELECTRICAL CONSTRUCTION, MAINTENANCE & SERVICE

* Bed Trucks * Winch Tractors * Pickers

RIG MOVING Phone: 482-3244

PLC’S, VFD’S BATTERY CONSTRUCTION TRENCHING MOTOR SALES & REPAIRS Enform COR CertiÀed 24 HOUR SERVICE 62 DEVONIAN ST. ESTEVAN, SK.

PH: 637-2180 FAX: 637-2181 LOCALLY OWNED & OPERATED

Oilfield Equipment Rentals Professionally supervised downhole drilling motors.

Power swivels and drilling accessories plus a full complement of pipe handling, well control, and job specific equipment.

Performance drilling motors for coiled tubing, service and drilling rigs, air and fluid driven. Mobile accumulators, bits, mills and wash shoes, BOP’s, casing scrapers, drill collars, elevators, flanges, junk baskets, links, mobile pipe racks, slips and spiders, spools, substitutes and swages, swab equipment, sour sealed swab vessel c/w H2S scrubber, RS 100 snubbing unit, surface swivels, cleanout bailers, 7 1/16th flanged orbit valves, master valves from 2� to 5.5�, fluid meters, flow provers and chokes. Mobile consultants trailers, pipe trailers and delivery services.

Call (306) r Weyburn, SK

Value, Integrity, Leadership.

A14

PIPELINE NEWS April 2009

Getting to the COR of the matter be engineered, i.e. gravelling liners. Can a

By Brian Zinchuk barrier be used to eliminate exposure?

Kisbey – These days, if you want to Administration control can be used, work in the oilpatch, you don’t just have to instituting rules and safe work procebe safe, you have to prove safety is part and dures. Then there’s the usage of personal parcel of your daily business. That means protective equipment, like hard hats and certification. respirators.

Cliff Nankivell Trucking of Kisbey and The fourth element is inspections, Lampman received its Certificate of Recmaking sure the previous controls are ognition, or COR, on Mar. 13. It’s a major working. This includes circle checks by step in the increasingly red-taped world of operators, or the safety co-ordinator gosafety and certifications in the oilpatch. ing out and ensuring controls are workKevin Mooney of C6 Safety Associaing. tion of Saskatchewan presented the cerElement number five is communicatificate to owners Kalvin Nankivell and tions. The work environment is constantly Claudia Mullis. It was the culmination of changing, and everyone needs to be kept two years of hard work by the company. abreast, through methods like tailgate John Voutour is the safety co-ordinaCliff Nankivell Trucking of Kisbey and Lampman received its CertiÀcate of meetings and a health and safety comtor for Cliff Nankivell Trucking, and spent Recognition, or COR, on Mar. 13. From left are Kevin Mooney, C6 Safety a lot of time with the two owners develop- Association of Saskatchewan, Claudia Mullis, Kalvin Nankivell, and John mittee.

Kalvin Nankivell says that includes ing the certification.

Voutour of Cliff Nankivell Trucking.

Photo by Brian Zinchuk getting participation from front line staff, Seven elements and requires a paper trail. “We kill many There are seven elements for an effective health and safety program, according to Mooney. vironments, but can include looking for slip and fall trees,” Mullis says with a smile, describing efforts to The first is management leadership. This means be- hazards, pinch point, or H2S. Jumping out of trucks is maintain that paper trail.

Emergency preparedness is the sixth element, having actively involved in safety, and leading by example. another one, particularly for a trucking company.

The third element is hazard control. Can the haz- ing a process to respond to an emergency.

Second, there needs to be a hazard identification and analysis. This will differ with different work en- ard be eliminated or somehow changed? Can a solution ɸ Page A15

SOLUTIONS TO YOUR PUMPING CHALLENGES

Visual Inspections CertiÀed API 510/570/653 Inspections Tank Inspections UT Thickness (Corrosion) Surveys Advanced NDE

Failure Analysis Root Cause Analysis Integrity Management Pipeline Risk Assessment Estevan OfÀce:

Bakken Frac Pump Cavins, Downhole Desanders & Gas Separators Don-nan Gas Separator

START OFF YOUR NEW YEAR WITH • Competitive Prices • Quality Products • Great Service Locally Owned and Operated

306-634-7513 306-634-7514

Phone: 634-7892 • www.ipc-sk.ca Proud to be an active part of the community

JOHNSTONE TANK TRUCKING Ltd. Estevan Location - Phone: 634-8545 Frobisher Location - Phone: 486-2044

Tank Trucks - Acid Trucks - Pressure Trucks - Vacuum Trucks

PIPELINE NEWS April 2009

A15

Certi¿cation a major part of the process ɺ Page A14 The owners smile about this one, because their in-house staff is already the outside response unit. “It was kind of funny.

All the guys are on the fire department,” they note.

Indeed, the trucking firm supplies water for the fire department.

The last element is investigations, looking for a root cause behind an incident. “The definition of a root cause is a breakdown in the management process, the above six steps,” Mooney explains.

Nankivell says the whole process is based

on continual improvement. “There is a proactive component to inspections – getting people to report near misses,” he lists as and example.

But how do you get people to overcome the resistance to report on their own slip-ups?

“It comes down to a safety culture, focusing not on placing blame, but finding a root cause.”

“A lot of people don’t like safety. The think it is a tattle-tale thing,” Mullis says. It’s easier if you make it about an individual’s safety. Put a positive spin on it.

Long road to put in place Voutour explains, “A lot of companies are requiring we have COR.” That includes major players in their area, like Crescent Point and Talisman.

“They literally ask us, ‘Do you have COR?’” Now they can say they do.

“We’ve been at it for two years,” Nankivell says.

It meant rebuilding a previous safety program.

“It’s a very big job,” Mullis concurs, adding the bar for safety has risen quite high in the 30 years the company has been in business.

Let me in! Tanker trucks for Cliff Nankivell Trucking in Kisbey will soon have a new 120 ft. by 80 ft. shop to call home.

While the groundwork is done by the company, it has to be externally audited to receive the certification. That included

three days with two people from the auditing firm, talking to roughly 25 of the 70-person staff. One of the things they watch

C&R

for is a paper trail. The audit verifies information through interviews, observation or documentation, according to Mooney.

Oilfield Maintenance Ltd. • General Oilfield Maintenance • Steamer Unit • Mobile pressure welder unit

Chris Scholpp 421-0557

487-7790 Office 487-2201

Announcement Announcement of the promotion of Dean Sargent to Branch Manager, Saskatchewan effective February 01, 2009.

Hei-Bro-Tech Petroleum Services A Division of 24-7 Enterprises Ltd.

• Fluid levels • Dynamometers • Pressure surveys (automated & manual) • Foam depressions • Equipment sales (new & used), rentals & repairs • Repairs done on all models including: Sonolog, Echometer, DX, etc.

• Major parts and supplies in stock at all times

Box 4, Midale, SK S0C 1S0 Phone: (306) 458-2367 or (306) 861-1001 Fax: (306) 458-2373

Edmonton, Alberta – Greg McGillis, Vice President of Operations and Business Development of Titan Logix Corp., (TSX Venture: TLA), is proud to announce the promotion of Dean Sargent to the position of Branch Manager, Saskatchewan.

In his 12 years of service, Dean has demonstrated skill, dedication and professionalism. The success of any company comes from strong leadership, the building of cohesive results-oriented teams of employees, and the commitment and enthusiasm to provide customers with superior services and products. “Dean is a great advocate of our company’s business philosophy,” says McGillis. “His promotion acknowledges his achievements, his longstanding loyalty to Titan Logix Corp., its customers and its employees. We recognize Dean’s important role in our plans for growth in North America including Saskatchewan.”

Dean manages the day-to-day operations of Titan’s Lampman, Saskatchewan branch and he will have the added responsibility of working more closely with the company’s sales team throughout Saskatchewan and Southern Manitoba.

Titan Logix Corp. congratulates Dean Sargent on his promotion and looks forward to a prosperous future with him.

Leading the industry in production & specialty chemicals

OIL TREATING COMPOUNDS ESTEVAN OFFICE

CARLYLE OFFICE

634-7627 Fax: 634-7827 Kelly: 861-6045 Jeff: 421-7973 Chad : 421-0338 Lyle: 421-2491 Armand: 421-8286 Darcy: 421-1551 Ryan: 421-9140

453-6494 Fax: 453-2598 Trevor: 577-8046 Mike B: 577-8153 Mike L: 577-8982 Paul: 577-1916 James: 577-8650

About Titan Logix Corp.: Titan Logix Corp. is an industrial instrumentation and controls company focused on designing, manufacturing, distributing and servicing instrumentation and automation solutions. Our mission is to provide the petroleum and aviation ground support industries with advanced technology solutions to automate essential measurement and control processes safely and efÀciently.

Detailed information on Titan Logix Corp. is available on the company’s website, www.titanlogix.com Corporate Address Titan Logix Corp.

4130 – 93 Street Edmonton, Alberta T6E 5P5 Phone: (780) 462-4085 Toll Free: (877) 462-4085 Fax: (780) 450-8369 Email: info@titanlogix.com

Branch Address Titan Logix Corp.

Box 460 Lampman, Saskatchewan S0C 1N0 Phone: (306) 487-2883 Fax: (306) 487-2889

A16

PIPELINE NEWS April 2009

Medicine Hat ¿rm comes to Estevan Estevan – With things having slowed down in Alberta last year, Estevan was looking pretty good for a Medicine Hat firm. So last summer, they started working in southeast Saskatchewan, putting down roots.

Renegade Oilfield Renegade OilÀeld Construction moved into its new Estevan home in early Construction moved into March. its new shop in March, constructed on the west side of Estevan.

It’s Renegade’s second facility, with home base in Medicine Hat. Ron Lafreniere is Ltd. the Estevan manager. He convinced owners Darren Schmaltz and Dan Giesbrecht of the need to set up in southeast • Lab facility • Fresh water available Saskatchewan. There was • Industrial Cleaning Products work here, whereas Alberta was slowly dying, Blaine Fallis Dean Carriere according to Lafreniere.

General Manager Technical Service Rep. “Royalties are killing Al306-421-2623 306-421-1238 berta,” he says.

The prices don’t help Jason Burback Steve McLellan Rick Breisnes what’s going on now, but 421-9418 Chemist 421-5502 royalties are what killed it.”

SWIFT CURRENT “We should look into Kevin Burton - Technical Service Rep • 421-3473 Estevan,” he told them.

Companies in the 92 Hwy. 39 E, Estevan • www.cbsterling.com southeast told Renegade they wanted to deal with someone who is commit-

DRILLING • COMPLETIONS • PRODUCTIONS

306.634.6549

ted to staying, not transients. “It’s not like we’re a fly-by-night company.

We’ve made a pretty big commitment with this building.”

The facility is 6,000 square feet, with seven offices.

“We basically moved five-six people who basically uprooted.”

Lafreniere personally has been living in a four-season travel trailer at a local campground, with intentions to build a house.

“We’ve got about 15 locals hired, working for us now.”

“We’re trying to break into the market,” Lafreniere says.

Construction of the new facility started in June, “Because of the lack of people to build, we basically moved in March.

1.”

“The hold-up on the building has made work complicated.”

Penn West is their biggest customer at Estevan, while Enerplus has given them work in Manitoba. “We’re working anywhere from Melita, Man., to south of Weyburn, to the Ameri-

can border.

One of their specialties is flex pipe. “We are one of the first companies in Alberta to install flex pipe. It’s indestructible is what it is. Non-corrosive, unlike plastic, but it has no memory, so it lays flat.

The company does oilfield pipeline, maintenance, mechanical, welding work, and facilities.

“We’re revamping Enerplus’ batteries and compressor stations.

We’ve been there since Sept. 10.”

Estevan is smaller than what he’s used to, he went from seven days a week, four hours a day to six days a week. It’s a nice change, Lafreniere says.

“Look at what happens to those working seven days a week. They have no more money. But you have a day off to relax and enjoy their families.”

“We’re new here.

And it’s going to take time for the oil companies to trust us. But those who have used us are repeat customers,” he says.

“We bid on everything. We have no issues bidding on jobs as opposed to hourly rates.

Let Us Create Your Dream Home We Build Custom Homes Using Your Plans!

Sales & Service For: Pumps, Meters, Valves, Controls, Switches Instrumentation Service

Combustion Service

Custom Ready-To-Move Homes Not sure what you want . . .

We have plans available.

PLC/RTU Programming

SCADA Services

Now booking for 2009

Treater Parts

SBB PSV Service

Shop & Field Calibrations

Shop & Field Repairs

Enform COR Certified

Insulated Concrete Forming Sales & Installation

Locally Owned and Servicing Southeast Sask. Since 1967 321 Imperial Ave., Estevan

Phone: 306-634-5304 • Fax: 306-634-5887

Phone 748-5560 Fax 556-2220 86, Cromer, Fax MB R0M 0J0 PhoneBox 204-748-5560 204-556-2220 Box 86, Cromer, MB R0M 0J0

PIPELINE NEWS April 2009

Geographic presence needed: GCCL

By Brian Zinchuk Melita, Man. – Greg Cousins Construction Ltd. (GCCL) set up shop in Melita, Man., in July, 2007, ready to expand when the time is right.

The facility used to be a John Deere dealership, then a Ford dealer, and finally a trailer manufacturer before purchased by GCCL. “At this point, we use it for equipment storage,

ence to get the pulse of an area. Probably one quarter of their staff live and works in the Melita trading area. GCCL is headquartered at Carnduff, with operations in Sinclair, Man., as well.

In southwest Manitoba, Cousins says their work is primarily pipeline installation, but includes hauling crude, emulsion, and salt water.

Having a facility in Melita gives them a toe-

primarily tanker trucks,” says Greg Cousins.

There are two buildings, one heated, and one not. The heated building helps keep valves from freezing, while the second building is used for storage.

“We plan on developing it further,” Cousins says, “dependent on the demands of our customers.”

Cousins feels you need a geographic pres-

A17

LECLAIR TRANSPORT

Lyle Leclair - Cell: 306-421-7060 Larry - Cell: 306-421-7131

hold to build on in the future.

“As market conditions demand, we already have a presence. We’re there,” he says. “Manitoba has become a significant part of our business over the years.”

In return, he notes they are contributing to the local economy.

General Oilfield Hauling

13th Biennial Saskatchewan

Oil &Gas Show Exhibition Grounds, Weyburn, SK

June 3 & 4, 2009 Weyburn Review Photo Greg Nikkel

Acutec Messenger • Spill Prevention Monitoring.

• Tank level inventory reporting.

• Equipment runtime monitoring.

• Pressure or temperature sensor monitoring.

• Turbine Áow meter volume reporting.

• RectiÀer monitoring.

• Analog and modbus input channels • Four Discrete input channels NO/NC (Real Time Clock Onboard)

➟Chairman: Ron Carson, Carson Welding and Maintenance ➟Vice Chairman: Dennis Krainyk, Apache Canada Inc. ➟Honourary Chairman: Hon. Bill Boyd, Minister of Industry and Resources

Home of the Saskatchewan Oil Patch Awards

■ ■

■

Satellite Communications

Tuesday, June 2, 2009 – Golfing for exhibitors and guests.

Set up and steak or lobster dinner.

Wednesday, June 3, 2009 – Show opens at noon — Awards luncheon, Sponsored by SaskPower — Induction into Hall of Fame by Board of Governors of deserving Saskatchewan Oilmen or Women.

Thursday, June 4, 2009 – PSAC breakfast — Noon luncheon with keynote speaker John Gormley Sponsored by Crescent Point Energy Trust

Nomination forms are available at the Saskatchewan Oil & Gas Show office for SE Saskatchewan Oilman of the Year

THE SHOW YOU WON’T WANT TO MISS…

See us for all of your instrumentation needs!

Sponsored by…

Ear

drops

Insert into each ear daily.

WEYBURN OIL SHOW BOARD P.O. Box 1450, Weyburn, Saskatchewan S4H 3J9 Tel: (306) 842.3232

Fax: (306) 842.4348

e-mail sk.oilshow@sasktel.net Web Site: www.oilshow.ca Office located at Prairie Agencies Ltd. Platinum Sponsors:

33 Fifth Street NE, Weyburn, Saskatchewan Gold Sponsor:

Silver Sponsors:

Bronze Sponsor:

Ministry of Energy and Resources

Westeel/Northern Steel Industries

2009

(780) 875-0203 LloydMall, Lloydminster

BORDER TANK RENTALS LTD. • LEADERS IN OILWELL DRILLING PRODUCTION RENTAL EQUIPMENT • P.O. Box 1238

PHONE: (306) 634-7700

ESTEVAN, SASKATCHEWAN S4A 2H8

TANKS

(All sizes)

• Mud • Shale • Premix • Processing • Polymer • Cone • Flare

FAX: (306) 634-9963

ELECTRICAL

• Gensets - 40 KW - 200 KW • Light Towers • Transformers GENERAL Mudvac's, Transfer Pumps c/w Manifolds & Hoses, Trash Pumps, Matting All Sizes,Bowen Power Swivels, 125 h.p. Boiler OILFIELD HAULING

A18

PIPELINE NEWS April 2009

Local camp still in the works „ By Brian Zinchuk Estevan – Estevan’s Board of Commerce, Tourism and Trade is still pursuing installing a camp near the community to house workers.

Michele Cyrenne, community development manager, is heading up the eort for the board. He

Does your oilfield waste go to a safe place?

Did you know that Plains Environmental is the first class 1A rated disposal facility in Saskatchewan and that our facility secures your waste from ground, water, as well as airborne contamination?

Did you know that our facility is the only one in Saskatchewan fully licensed to accept Upstream, Midstream, Downstream, NORM and Industrial waste?

There is a safer way to dispose of your waste.

For more information Phone (306) 728-3636 Or look us up at www.plainsenvironmental.com

still sees a need for a camp for workers.

Estevan was struck with a profound housing shortage in 2008, to the point where an emergency meeting was held in late November to address the problem. The camp idea has come from that shortage.

Cyrenne says the housing issue is not as bad as it was, “But I don’t think it’s to a point where people can be completely at ease ďŹ nding housing when they move here.â€?

There’s not a lot of rental or hotel space available, Cyrenne says.

There haven’t been as many inquiries for accommodations as there were when things were still in full force, he notes.

So do we still need camps? “It doesn’t seem as much as it did four to six months ago,� he says. But with the amount of land purchases last year, as soon as oil prices go up, companies are going to be ready to go to full production again, according to Cyrenne.

The board received four bids for camps, and two are being seriously considered, with one eventually

being picked.

The location will likely be east of the city, likely along the road leading to the Shand Power Station.

This location is close to much of the industrial sector of Estevan, as well as the power plants and coal mines. It’s also close to the highway 39 bypass to be built around the city.

They city will also see construction of a new civic centre. All these are likely to require workers, and in turn, places for them to stay, in the near future.

The camp would have a capacity from 100 to 200, according to Cyrenne. As an open work camp, there will be user fees. Those rates will fall somewhere between $100 and $150 per night, including hot breakfast, supper, and a bag lunch. “We’d like to see it set up by the time spring breakup is completed,� Cyrenne says.

The setup costs are all the responsibility of the operator. The board is facilitating discussions between the land owner and camp provider.

With all these projects, is 100 to 200 enough? “We want to start at that. Both companies are fully capable of expanding the camp at the snap of a ďŹ nger.â€?

Three Star TRUCKING LTD.

).8/9 4/*+9. ,/+2* 9;6+8/4:+4*+4:

• OilÀeld Tank Trucks • Hot Oil Trucks • Pressure Trucks • Vacuum Trucks • Bobcat & Gravel Trucks • Payloader • OilÀeld Reclamation

5LLOIK )KRR ,G^ ITOJKYN&YG\GTTGKTKXM_ IUS

(U^ )GXR_RK 9GYQGZINK]GT ]]] YG\GTTGKTKXM_ IUS

2-WAY RADIO EQUIPPED 24 HOUR SERVICE Ken Boettcher - 443-2474 Res Edgar Bendtsen - 443-2350 Res Tim Boettcher - 443-2488 Res Jim Boettcher - 443-2205 Res Grant Anderson (204) 686-2201 Res

443-2424 FAX: 443-2433 BOX 160, ALIDA, SASK. S0C 0B0

At Prairie Land . . . • • • • • • • • •

Land Acquisitions Freehold Mineral Specialists Surface Acquisitions Pipeline Right-of-Way Rental Reviews Damage Settlements Seismic Permitting Crown Sale Attendance Title Registration . . .

Prairie Land & Investment Services Ltd.

Saskatchewan & ManitobaÂ’s Freehold Mineral Specialists

DON PONTIUS

Calgary Office: (403) 264-4911 Suite 500, 521 - 3rd Avenue S.W. Calgary, Alberta T2P 3T3

•

TERRY JORDAN

Regina Office: (306) 757-5600 Suite 300, 2425 - 13th Avenue Regina, Saskatchewan S4P 0W1

Toll Free: 1-800-667-8025 • Fax: (306) 586-7669 Swift Current: 1-800-667-8025 eml.postoffice@prairie-land.com www.prairie-land.com

We Place Our Clients First.

TOLL FREE 1-888-532-5526 Creelman, Sask.

• Oilfield Graveling • All Types of Gravel Products • Sealed Trailers for Hauling Contaminated Waste • Payloaders • Excavator • Heavy Equipment Hauling • Car/Truck Wash

Larry Allan

Cell: (306) 421-9295 Shop: 433-2059; Fax: 433-2069

Housing pressure drops Estevan – The incredible pressure on the Estevan housing market has dropped over the winter, in line with the decline of the price of oil.

There are more houses on the market, according to Lynn Chipley, city councillor and broker with Century 21 Border Real Estate. When Pipeline News spoke to her in mid-March, there were 89 houses on the market, up from the 30-range during the mad rush for housing last year. Having 100 houses on the market in Estevan is what Chipley considers a ‘normal’ market. “A normal market

for us, forever, was 100 homes, from vacant lots to Taj Mahals. Well, maybe not Taj Mahals.”

“We still have a shortage of affordable rental accommodations,” Chipley says. Rents had increased to reflect the market, and most have stayed there for the time being, she explains. “Whether the price will stay at $1,000 per month for one bedroom apartments, I don’t know.”

Rents are high compared to what people can afford.

However, if you want to buy, things have opened up a lot, she says, and the market has dropped 15

R O A D B A N

Attention Oil Service Companies & Farmers

S P E C I A L

when work is done or ordered before the end of road bans. Phone for an appointment.

15%

per cent from its peak.

John Slatnick, a landlord in Estevan with multiple properties including a lodge, says his phone is no longer ringing off the hook. Late last year, he was getting as many as ten calls a day. Now it hardly rings.

“I’m still filled at my place, but I have hardly a call now,” Slatnick ex-

plains.

Spring breakup is traditionally a slow period. Slatnick thinks after breakup, there will still be a fairly tight market, but it won’t be as frantic as it was.

“What the shortage still is is the guys looking for accommodations with a family who want to be living here.”

PIPELINE NEWS April 2009

RON'S The Work Wear Store Ltd. Check out our large selection of OilÀeld Products: DuPont™

NOMEX

FR Coveralls, Bib Overalls, Shirts & Pants

CSA Work Boots from KODIAK, JB Goodhue, CAT Hard Hats, Replacement Suspensions and Accessories Safety glasses, Rubber gloves, Work gloves

and so much more!

WE CARRY SIZES FOR THE BIG AND TALL DARE TO COMPARE BUT SEE US LAST 202 MAIN CARLYLE 453-6167

112 2ND ST. WEYBURN 842-3006

1210 4TH ST ESTEVAN 634-8232

Discount on Total Bills over $100

*does not include office/household furniture

Back Alley Upholstery

309 4th St Estevan, SK Ph: 634-7852 Fax: 634-2366

PO Box 32, Carlyle, Saskatchewan S0C 0R0 Phone: (306) 453-4411 Fax: (306) 453-4404 E-Mail: jwaugh@mmmud.ca

A19

Specializing in Non Damaging Biodegradable Drilling Fluids Designed for Horizontal Drilling

Jason Waugh - Division Manager 306-577-9900 (Carlyle) Trevor Van Alstyne - Field Supervisor 306-421-0344 (Estevan) Ryan Toms - Field Supervisor 306-452-8182 (Redvers) Victor VanDresar - Warehouse Manager 306-577-9934 (Carlyle)

“Serving The Oil and Gas Industry with 24 Hour Drilling Fluid Service”

A20

PIPELINE NEWS April 2009

It’s about the jobs say Director of Manitoba Petroleum Branch Melita, Man. – With oilpatch activity all around, but not necessarily at Melita, Man., the Melita Chamber of Commerce was given an opportunity to hear just what is going on from the provincial government’s perspective.

Keith Lowdon is the director of the Manitoba Petroleum Branch, a division of the Manitoba Department of Science, Technology, Energy and Mines. It’s

7VUNV /VSKPUNZ 3[K

the equivalent of Saskatchewan’s Ministry of Energy and Resources. He addressed the Melita chamber on Feb. 18.

Lowdon grew up in the oilpatch, literally. His dad is Ed Lowdon, considered one of the founders of the Manitoba oilpatch. “He’s seen a lot of changes,� noted Murray Cameron, president of the Melita Chamber of Commerce in his introduction of the director.

Lowdon explained the Petroleum Branch has three oďŹƒces – Winnipeg, Virden and Waskada. The Waskada oďŹƒce opened in 1982.

At that time, there were some ‘unscrupulous people’ dealing with freehold mineral holders. In Manitoba, freehold minerals are the vast majority, 80 per cent, as opposed to crown minerals. “The mineral holders and farmers are a lot smarter than they were,� Lowdon said. ɸ Page A21

Sales and Rentals

Now

ing k c o St • New 8 Kilo Watt light towers • New 6� water pumps • New water trailers See us for all of your light tower & generator rental & sales

For Sale: • 1996 Class A TifÄn Motor Coach • 2000 Monaco Night Class A Motor Home

*HSS -VY +L[HPSZ Call #5 KRJ Industrial Park: Park:

or Director of the Manitoba Petroleum Branch Keith Lowdon addresses the Melita, Man., Chamber of Commerce.

Photo by Brian Zinchuk

WALKIN’

THE TALK ON GROUNDWATER PROTECTION‌ TITAN WELLHEAD CONTAINMENT UNIT (w/ESD. sensor switch – under $1500)

Also available CO2-H2 S monitor

(403) 242-2201

SALT

WATER

Over 9000

Always Stain-free... protected sites within the USA, Canada & Mexico

PIPELINE NEWS April 2009

A21

Employment most important aspect of the oil industry ɺ Page A20 Quarterly reports by the surface rights board show what people have paid for surface rights, a valuable resource.

“What’s important about the oil industry is the amount of people that work, not the taxes and mineral rights,” Keith Lowdon said, adding there are about 1550 people working in the industry in Manitoba.

At the time of his presentation in mid-February, there were 2631 producing wells, putting out approximately 23,000 barrels a day.

Manitoba’s domestic consumption is about 50,000 barrels a day, so it produces about 40 per cent of its oil needs, according to Lowdon.

In 2008, there were 314 wells drilled, and 332 licenses issued. That resulted in $26.7 million in direct provincial revenues. Another $90 million went to freehold mineral rights holders, and $2.5 million for rural municipalities. Industry expenditures totalled $360 million.

Since 1951, there have been 6,500 wells drilled.

Public land sales take place four times a year.

The main drillers in 2008 were Tundra Oil and gas, at 172 wells, Fairborne at 18, Enerplus at 14, EOG at 11, and CNRL at 10.

Prior to 2005, production had peaked in 1969.

But the Sinclair field changed all that, and $400 million has been spent on it.

Lowdown showed a map of the Sinclair field in recent years. In 2003, there were a few wells. In 2004, a few more. The main-B pool had been discovered.

Now, the area is saturated with wells.

By this past January, production from the field came to 10,400 barrels a day, on a recovery factor of 10 per cent.

There’s already a pilot CO2 project in the field, being performed by Tundra. “If this pilot works out,

FT! ONLY 6 LE

10 NEW Our Uplander LS is well equipped with these standard features:

“

Even though we think we know so much today, we really know nothing. There could be oil all over the place

”

- Keith Lowden there potential to leave CO2 in there.”

In 1985, Manitoba saw its first Bakken production. “Really, the Bakken production is equal to the Mississippian production.”

“Even though we think we know so much today, we really know nothing. There could be oil all over the place,” he said.

• 400 BBL Tanks, Lined, Sloped, Steam Coiled, Sumped & Sour Serviced, • Enviro-Vac Units • Rig Mats • Invert Systems • Surface Sump Tanks • Caterpillar Loaders • Vapor Tight Equipment

• Pickers • Bed Trucks • Winch Tractors • Texas Beds

YOU SAVE BIG!!!

2009 Chevy Uplanders & Pontiac SV6’s With Extra Features/ Options - Priced to go! DARE TO COMPARE

Unit# 15405A

$27,995

Ford E350 XLT, 15-Passenger Club Wagon, 27k, White, Cloth Buckets Over 150 on the ground

• Portable Flaring Equipment • Flow Back Separators • Pre-Mix Systems • Surface Tanks • Acid Tanks • Mixing Bins • Shale Bins • Flare Tanks

(A Division of Total Energy Services Ltd.)

SAFE EASY ENTRY SALE PRICED! Prices based on UNIT #15230 Uplander LS

CMP $18,995 $18,995 CASH PRICE

2008

RENTALS

TRUCKING

240 hp 3.9L V6 engine SAVE with variable valve timing THOUSANDS 4-wheel disc brakes with ABS NOW! StabiliTrak™ electronic stability control system CD player with MP3 playback Traction control 17-in. wheels & auxiliary audio input jack Overhead Rail System Tire pressure monitoring (EWB Models) system Air Conditioning Dual sliding side doors STARTING FROM Power heated exterior mirrors Power windows & program Remote keyless entry system mable power door locks OnStar ® with one year of Light tinted glass 7-passenger seating with the Safe & Sound Plan + TAXES & FEES front captain seats, second + Deep tinted glass row bucket seats, removable + Remote Start PRICING APPLIES TO + Cruise Control third-row split-bench seats.

Very Clean

In the Melita area, there are 271 wells near Pierson. “It’s very significant,” he said.

Pierson and Waskada have CO2 sequestration potential, but there isn’t a source of carbon dioxide.

“We’re looking at Estevan,” he said.

Lowdon had previously told Pipeline News that Manitoba does not have commercial gas production.

But he noted that there may be opportunities in capturing solution gas, as CNRL does. “Are there opportunities like that? You bet,” he said.

Predictions for 2009 are difficult, Lowdon explained. He anticipates 200 to 250 wells drilled in the province in 2009, but since that initial estimate was made, it may be closer to 200, or less.

Horizontal wells are becoming more common in Manitoba, he noted.

$148 Bi-weekly Fees / Taxes included

Ask us about other great finance options 33 mpg ON-THE-LOT INVENTORY Hwy

Next to New

As low as 29,000 kms

2008 Grande Prix Clear Out!

MIDALE 306•458• 2811 midale@totaloilÀeld.ca

WORK ZONE

Check website . ges daily for chan 22” Chrome LEXANI Jewels New Tires Cruise

Unit# 15397A

Short Box Economical Performance

2006 Dodge Ram 1500 Reg Cab 2WD, Black 3.7L

$16,995 + fees/taxes

2007 GMC Sierra K1500 Reg Cab 4.8L V8 Short Box, White

Only 39,900 kms + fees/taxes Unit# 15407A

2006 Dodge Ram 2500 4WD Unit# 115401A

5 to choose from Many colours/options

$15,999 + taxes

Come In Where The Deals Are HOT!!!

Dare to Co m pa re !

$19,995

SLT, Quad Cab, Silver

Save o h T u s a n d s ! As Low As

46k

47k

5.9L Cummins Turbo Diesel

$32,995 + fees/taxes

A22

PIPELINE NEWS April 2009

Room for small specialty player downhole

Leonard Thieven, service tech with Kash Downhole Anchors Inc., rebuilds a TMA belly spring anchor.

Photo by Brian Zinchuk

Celebrating 30 Years in SE Saskatchewan!

SVEIN BRYEIDE CONSTRUCTION Ltd. • Earthmoving and Oilfield Construction • Lease Preparations and Restorations • Pipeline Construction and Maintenance • Trackhoe and Backhoe • Road Building, Dugouts • Dozer Ripper and Winch Cats • Lowbeds and More • Motor Scrapers, Graders • Snow Removal HWY. 47 N. AT BENSON Fax: 634-9798 • Cell: 421-0203

634-6081

Estevan - There are a wide variety of downhole tools, with large multinationals playing a big part in the business.

In a pool with a lot of big fish, there’s room for a smaller fish to swim.

That’s what Kash Downhole Anchors is doing in Estevan. Having opened in the summer of 2008, the company specializes in one product – anchors.

“We’re downhole tubing anchor catchers,” says Tracy McConnell.

He operates the business with the assistance of his wife, Kelly, and Leonard Thieven, who helps out in the back.

Anchors are run in new and old wells. An anchor, he explains, is a tool that goes on the end of the tubing. You run it into the hole, set it, and pull the pipe into tension. The anchor is

JJ

usually set just above the build section of the well in vertical casing.

The vertical section is never perfectly straight, McConnell notes. Using a set of mechanical slips that take a bite into the casing, the anchor allows the tubing to be somewhat straightened.

This anchors the tubing in the well stopping the tubing from moving while the well is pumping. This reduces the wear on the tubing and rods. The anchor also acts as a catcher. If the tubing parts (break) the anchor will hold the tubing from falling down the well.

Anchors can last a long time. “I’ve pulled anchors out of the hole that have been there since the 1950s,” McConnell says.

He used to work for a large tool company for 14 years, and saw an opportunity. “There was definitely a need for somebody to specialize in anchors,” he says.

Other downhole tool

companies were focusing on tools and open hole frac strings.

His level of specialization includes the ability to clean with a 150 degree F washer which not only removes the oil and grease but by heating it to 150 degrees it expands the metal which releases the trapped H2S gas and other containments prolonging the life of the anchor. The sand blaster is used to clean and exposes any cracks or corrosion in the metal. There’s also a specialised torque machine in the back to torque parts to spec.

“We take the time to make sure everything is up to snuff,” he says.

“I sell anchors to the new wells,” he says, but also to older wells.

“When they work them over for whatever reason, they pull these anchors, send them to me and I redress them. After they are redressed they are sent back to the field where the rig crew runs them back in the well.”

TRUCKING

“MORE THAN JUST GRAVEL” • Top Soil • Gravel • Sand & Crushed Rock • Municipal & Oil Lease Road Gravelling • Aggregate Screening • Excavating • Loaders • Graders • Lowbeds

Cell: 577-7553 Fax: 455-2433 • ARCOLA

: r u

o Y l

r o F

l A

OfÀce:

- OilÀeld 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 • Fax: 634-4575

455-2429

• Hot Oiling • Flowline Cleaning • Tank Cleaning • Dry Steamer Boiler

LOCALLY OWNED & OPERATED BOX 843, ESTEVAN, SK.

24 Hour Service - 634-8737

• Flowline Jetting • Frac Fluid Heating • Back Pressure Trucks • Steam Heaters

Phone: (306) 634-4797 or 634-7334

PIPELINE NEWS April 2009

A23

Sask SaskPower issues RFP for new baseload generation Regina - A continual string of announcements has been coming out of SaskPower of late, seeking new power generation proposals or announcing its own power generation projects.

On Feb. 23, SaskPower issued a request-for-proposals (RFP) for new baseload electrical generation.

SaskPower is seeking yet more power generation capability, this time asking for smaller baseload generation.

Photo by Brian Zinchuk

This comes after a Feb. 13 announcement of a new 140 megawatt (MW) gas turbine plant for North Battleford, and a January request for proposals for 100 to 200 MW of peaking generation.

Following a request-for-qualiďŹ cations to ďŹ nd private sector partners interested in providing new generation, SaskPower has invited eight companies from across Canada to submit proposals for between 200 MW and 400 MW of new intermediate to baseload generation to be in service for the 2012/2013 winter peak. The companies are NRGreen Power Ltd., TransAlta Corporation in joint venture with Husky Oil Operations Limited, TransCanada Energy Ltd., ATCO Power Ltd., EPCOR Utilities Inc., Northland Power Inc., Ormat and Meadow Lake Green Energy. “As Saskatchewan’s economy continues to grow, there is an increased demand for power as people invest in the province and make it their home,â€? Crown Corporations Minister Ken Cheveldayo said. “As part of this process, SaskPower is exploring opportunities for private ownership or investment in new generating facilities.â€?

The deadline for the submission of proposals is August 28, 2009. The successful proponent will be announced in November 2009.

In January, SaskPower issued an RFP for between 100 MW and 200 MW of peaking generation to be in service for the 2011/2012 winter peak. The deadline for submissions for the peaking solicitation has been extended to June 15, 2009, with the successful proponent now being announced in October 2009.

CLIFF NANKIVELL TRUCKING LTD.

WATER & CRUDE VACUUM TRUCK SERVICE • 24 Hour Service

• Oil Hauling

2 Locations: Kisbey & Lampman Phone: 462-2130 • Fax: 462-2188

DEVELOPERS IN PLACE TO BUILD TO YOUR NEEDS FOR LEASE AGREEMENTS

SO

SO

LD

LD

*VU[YVS LSTPUH[L WHYHMĂ„ U PYVU Z\SWOPKLZ HUK HZWOHS[LULZ PU VPSĂ„ LSK WYVK\J[PVU HUK PUQLJ[PVU ^LSSZ

The environmentally friendly alternative. www.dpsmicrobial.com

Red Deer, AB

Calgary, AB

Frobisher, SK

A24

PIPELINE NEWS April 2009

SALES AND RENTALS OF NEW AND RECONDITIONED OILFIELD EQUIPMENT • New 400/500bbl API 12F Cert. Steel Tanks • New 400/500bbl API 12P Cert. Fibreglass Tanks • New 100bbl to 1000bbl Tanks

Canadian Distributor for Palmer Tanks!!

• • • • • •

New 28” x 60” 500psi Portable Test Seperators, S.S. New 6’ x 20’ Vert. 75lb Treaters, S.S. New 8’ x 30’ 75lb FWKO’s, & Treaters, S.S. Flarestacks Tubing TRUCKING Wellhead Equipment • 37.5 Ton Picker with Dual Winch • 22 Ton Picker • (3) 20 Ton Texas Bed Trucks • (2) Tri-Axle 51’ Oilfield Floats c/w Centre Roll • Tandem and Tri-Axle Hiboys • One Ton Trailers • Sandblaster & Painter

View our website for a complete listing of services and equipment!!

Ph. 306-455-2705 Fax 306-455-2250 codygrimes@eagleoilfieldservices.com www.eagleoilfieldservices.com

Box 330 Arcola, SK S0C 0G0

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

B-Section April 2009

TriStar and Crescent Point team up in $720 million deal

By Brian Zinchuk Calgary – A substantial shakeup of ownership in southeast Saskatchewan took place on March 4, with the exit of Talisman Energy and sale of nearly three quarters of a billion dollars of assets to Crescent Point Energy Trust and TriStar Oil and Gas. Expected to close on June 1, the deal will see ap-

proximately $720 million cash change hands. Crescent Point and Tristar team up to each take half ownership of Talisman’s former properties. The list is extensive (see sidebars, page B2), but includes 610,000 acres, of which 73 per cent is in southeast Saskatchewan, including fee title lands. The rest of the land is in Daniels County, Montana. Total net production is approximately 8,500 boe/d, as well as Talisman owned and operated infrastructure.

It gets a little more complicated, however, in that Shelter Bay Energy, a private Bakken growth company 21 per cent owned by Crescent Point, will be getting in on the action. Crescent Point and TriStar will be selling a portion of the Bakken assets to Shelter Bay. This transaction will go for $71.1 million, half of which will be going to each of Crescent Point and TriStar. The net result will be a reduction of the purchase price for each of the partners from $360 million to $324.5 million.

Talisman Yet for such a large dollar value in assets, the number of directly affected employees is small, with Talisman telling Pipeline News 24 operations staff at Carlyle and approximately 12 staff in Calgary are affected.

“In Calgary, we’re assessing options to reassign those people,” she said. “In Carlyle, we’re working with

the purchasers to transition the employees.”

"This is in keeping with our strategic objective to focus Talisman's portfolio on material, core assets," said John A. Manzoni, president and chief executive officer in a release. "Although southeast Saskatchewan has been part of our legacy, the majority of our capital spending and effort in North America going forward will be deployed to accelerate success in our unconventional natural gas plays."

With a shift in focus to shale gas, Talisman spokesperson Phoebe Buckland told Pipeline News they will be focusing on unconventional gas plays in northeast British Columbia’s Montney, the Utica in Quebec, and Marcellus in Pennsylvania and New York State. That focus was laid out in January by Manzoni in a media conference call.

Talisman will be maintaining operations in Shaunavon and at Chauvin near the Alberta/Saskatchewan border.

Why sell now?

“We see quite a lot of upside in it,” notes Buckland, explaining, “This will free up some capital for us to pursue opportunities.”

The price reflects the long-term value of the assets, she adds. “We fell it is a fair price for the assets.”

While the press releases from both Talisman and Crescent Point draw particular attention to Bakken oil play lands affected by the sale, the Bakken properties are actually a small percentage of the total deal.

According to Crescent Point, the assets they will acquire include 312 net sections of undeveloped Saskatchewan land. Just 25 of those are in the Bakken play. Of those 25, 16 sections have no associated reserves booked as of March 31, 2009.

Tristar TriStar President and CEO Brett Herman told Pipeline News, “Our main focus has been to focus on large oil in place.”

After the acquisition, over 70 per cent of TriStar’s production will come from southeast Saskatchewan.

“Going in, we were just over 20,000 bbl/day,” he said.

Exiting, they will be in the 25,000 bbl/day range, just over a 20 per cent increase in production.

“We’re known acquisitors,” he said, anticipating “extremely smooth transition.”

In the field, they will be looking to hire Talisman staff, noting “We’re evaluating that as a we speak.”

Operatorship was settled not long after the announcement. The two companies basically rolled out maps and plotted out who has operations where.

As for development plans, “It all depends on where commodity prices are.” ɸ Page B2

It’s the end of the road for Talisman Energy Inc. in southeast Saskatchewan. The major player is disposing of its southeast Saskatchewan properties and will be focusing on shale gas plays. This sign was found west of Kisbey, where the Bakken potential of Talisman lands was of keen interest of the buyers.

Photo by Brian Zinchuk

B2

PIPELINE NEWS April 2009

Talisman exits southeast Sask., pursues shale gas elsewhere ɺ Page B1 “The intent is to continue being active in southeast Saskatchewan.

Our philosophy is to spend in and around our cash flow.”

Herman said it was around $250 million when interviewed on Mar. 19.

Their current 2009 capital budget is $200 million, 90 per cent of which is to be spent in southeast Saskatchewan. That leaves $50 million that could be used for debt repayment, acquisitions, or drilling.

The deal makes both of the partners minority, non-operating players in the Weyburn carbon dioxide sequestration project.

It’s TriStar’s first exposure to carbon dioxide flood.

It’s to get an education on CO2, according to Herman, because at some time, the Bakken play will go on water flood, then carbon dioxide flood. This knowledge will be very valuable down the road.

While there is some Montana land in the deal, Herman said, “Our main focus was Canadian operations.”

“There was significant upside that Talisman hasn’t drilled.

Crescent Point “You’re looking at assets that are predictable and have low decline rates,” Trent Stangl, Cres-

cent Point vice president for marketing and investor relations, told Pipeline News.

The land changing hands is “pretty much across the whole southeastern Saskatchewan.

“It’s massive. It’s a checkerboard across the entire southeast.

“We will be working in parthership in every one of those lands and wells.

So why go halfers on this acquisition?

“It was really the only way we could get that deal done in an effective manner.”

He notes by partnering up, they each removed the other company as a

Crescent Point’s Talisman acquisitions: Current production of approximately 4,000 boepd comprised of 18 percent high netback, Bakken light oil and 82 percent non-Bakken crude oil and associated natural gas; 312 net sections of undeveloped Saskatchewan land, 25 of which are in the Bakken light oil resource play; 16 of the 25 net un-

developed Bakken sections have no associated reserves booked as of March 31, 2009; 70 net low risk drilling locations, 37 of which are in the southeast Saskatchewan Bakken light oil resource play; Ownership of freehold mineral rights on 217 net sections of land, resulting in overall royalties of less than 16 per-

cent; 2.2 percent working interest in the Weyburn Unit CO2 flood; More than 125 net sections of exploratory Bakken land in Montana; Tax pools estimated at more than $324 million; and Operating costs of less than $11.50 per boe Source: Crescent Point Energy Trust

competitor.

“There were lots of guys kicking tires,” he said.

“With our southeast Saskatchewan exposure and TriStar’s exposure, it made use leading contenders for sure. We are now the second largest income trust after Penn West.”

Indeed, the growth of Crescent Point has been so substantial that it is pushing the limitations of what it can do within the income trust business structure, in part because it was caught up in some controversial changes to income trusts a few years ago.

“We’ve outgrown the limits they put on that structure.”

As a result, on the same day as the acquisition announcement, Crescent Point stated it would be converting to a corporate structure. The change would be effective on or before May 31.

Like TriStar, Crescent Point gains some ownership in the Weyburn CO2 project. Stangl calls it one of the crown jewels of the deal. They already have a small interest in the Mi-

dale project.

The big focus of the deal is Bakken production. “At $40 US a barrel, we have a before-tax rate of return of 100 per cent and it pays out in about a year.”

Crescent Point has 140 wells that can still be fraced, from before the acquisition. If these oil prices stay low, we may drill fewer wells, but frac more.

“We may be looking at diverting some of our projects on the Talisman lands instead, but it will still be Bakken-focused.”

As for current Talisman staff, Stangl says.

“We’ll be talking to some of those guys.”

Shelter Bay Both companies are reducing their exposure somewhat, by selling some of the Talisman assets to Shelter Bay. While Shelter Bay has an independent board of directors, it has no employees, explained Stangl.

The company is owned by private investor players from New York, and a little over a fifth is owned

by Crescent Point.

Crescent Point does

the operations for Shelter Bay. “It’s a unique situation where we created the company and looked for investment, Stangl said. It is not an income trust. By 2011, Shelter Bay will be rolled into Crescent Point, he added.

“We had no current operations on that part of the Bakken play,” said Herman, thus they were fine with rolling out those properties to Shelter Bay. The properties in question are east of Stoughton.

Financing For both TriStar and Crescent Point side, the money for the transaction will be coming from a bought deal financing arrangement. Each company has a syndicate of underwriters backing them.

“There are so few people who can raise money in this market, a lot of people are scared to put money in the stock market,” Stangl said. “That TriStar and ourselves were able to show is a good strong company with good assess, a good business plan, and a proven management that can raise money in this market.”

TriStar’s Talisman acquisitions:

Tracy McConnell Owner/Manager 104A Perkins Street PO Box 575, Estevan, SK S4A 2K1 Ph: (306) 634-7552 Fax: (306) 634-7558 Email: Kashanchors@sasktel.net

Current Production: 4,000 boepd comprised of 3,300 boepd, conventional (97% light oil) and 700 boepd Bakken production.

Proved Producing Reserves: 9.8 mmboe Total Proved Reserves: 14.6 mmboe Proved plus Probable Reserves: 21.1 mmboe Proved RLI: 10.0 years Proved plus Probable RLI: 14.4 years Undeveloped Land: 197,500 net acres (308.6

L & C Trucking Phone: 634-5519 or 634-7341 24 Hwy. 39 E. Estevan

sections) of undeveloped Saskatchewan land including 25 net sections which are prospective for Bakken Drilling Locations: 61 net Bakken locations (37 booked, 24 unbooked) 57 net Conventional locations (23 booked, 34 unbooked) Bakken: 28 net sections of which only 3 net sections are developed resulting in 25 net sections of undeveloped Bakken land Fee Lands: Ownership

• • • • •

of freehold mineral rights on over 135,000 net acres of land, resulting in overall royalties of less than 16 percent Weyburn Unit: 2.2 percent working interest in the Weyburn CO2 flood Montana Bakken Assets: More than 80,000 net acres (125 sections) of exploratory land in Montana Operating costs of $11.25 per boe Source: TriStar Oil & Gas

GENERAL OILFIELD HAULING TANK & TREATER MOVING 24 HOUR PERSONALIZED SERVICE PIPE CUSTODIAN PUMP JACK HAULING

PIPELINE NEWS April 2009

B3

In the dirt decades before oilpatch came Doug Jolly of Jolly Construction gets ready to do some lease work east of Waskada, Man., the company’s base.

Photo by Brian Zinchuk Waskada, Man. – Long, long before the 1980s oil boom in southwest Manitoba put Waskada on the map, Jolly Construction was playing in the dirt.

Today, they are still doing dirt and gravel work, with a good chunk of their business coming from the local oil patch.

Sterling Jolly is the principal behind the company, which was started when his father Jack, known universally as“J.T” in the Waskada area, got his first truck in 1946. Jack used to do everything from hauling coal and cleaning out grain annexes to delivering groceries and parcels with a tractor and trailer around the small village of Waskada. “They called it dray in those days,” notes Sherry Louttit, Sterling’s sister.

The two siblings are part of seven in the Jolly clan, including two sets of twins. Four are still active in the company – Sterling, the youngest, who heads up the operation, Doug, who runs equipment and acts as foreman; Don, Doug’s fraternal twin, heads up trucking efforts; and Sherry, who runs the office doing everything from payroll to safety.

Sherry’s identical twin Shelly got her start in the business, and now works in the office of an northern Alberta oilpatch company.

John now runs a similar construction business based in Calgary. Only Ted, the eldest, did not get involved in the business.

Sherry says, “It’s been a good life. A hard life. Dad worked the hardest. With all of us pulling together, we sort of got a business.”

She notes that you

can count on family, even if sometimes they seem to talk about the business all the time.

In the third generation, Sterling’s teenage daughter Amanda helps out from time to time.

“When I’m out on the weekend, fixin’, she’s handing me the wrench,” Sterling says.

It’s not far from that age that he began working for his dad, back in the late 1970s, in his mid- to lateteens. “I was running my dad’s equipment,” he says, noting they would gravel roads, or put down a pad, making use of a crawler.

There was a little oil activity in the area before it really took off in the early 1980s, Sterling explains.

His first oilpatch work was for Ken Lee, working for Omega Hydrocarbons from Midale. That included hauling “a bit of gravel and pushing some dirt around,” he recalls.

The 1980s went quickly, and they kept buying equipment here and there – a backhoe, a few gravel trucks, a Cat, another Cat. It was a good time, Sterling notes, saying at one time he took a drive and saw 11 rigs.

They expanded some more in the last decades, he says, noting, “In the last few years, six to ten years, we bought quite a bit of stuff.”

The company’s payroll varies from four to 15, Sterling says. “It’s all part time, mostly local people.”

“It’s pretty hard to get people to move to a small town,” he says, noting that while the sign says Waskada’s population is around the 200 mark, it’s less than that.

Things slow down for Jolly Construction in the winter, but heavy snowfall this year has kept things a little busier.

Wedged in the southwest corner of Manitoba, and just a few miles north of the US border, those borders can be a little limiting, making it difficult to expand. Their area of operation goes as far as the Saskatchewan border to the west, with occasional forays as far north as the Sinclair field in the north. But, Sterling notes, “Ninety-nine per cent is right around the Waskada-Goodlands area.”

“We do municipal gravelling. We have a crusher. We do farm work.

We were in the grain hauling business, but it’s was too competitive, so we let that go.”

“I take it day by day,” Sterling says, “We just do a little bit of everything, but mostly to do with gravel and dirt.”

The last year was a good one for Jolly Construction, and it’s anyone’s

guess what 2009 will bring.

“It was good, probably very good, for me,” he says.

“2009 is unpredictable.

“Things could change very quickly. If oil goes back up to $70 - $80 a barrel, [it could be] as good as last

year. If it stays at $30 - $40, I might be unemployed like other people.”

Sterling notes, “The oil’s done good for this area, and done well for me.

I’m not a millionaire, but I’m making a living.”

Estevan Office: Phone: (306) 634-2681 Fax: (306) 636-7227

We Know Downhole

rucking T s n n . ca Ly

From some of the world’s most common and widely used packers like the sturdy AS1-X to advanced Open Hole Treating systems, Xtreme Oil Tools sets the standard for innovation, performance and reliability in packer technology.

Benson, SK.

Our packer system selection is the most comprehensive in the industry, and forms the foundation for a complete range of fit-for-purpose completions for all types of well environments and applications, from the simplest single-zone completions, to the most complex horizontal, multilateral and intelligent completions.

24/7 Vac Truck Service 2007 Tandem Vac Truck 2007/08 Tri Drive Vac Trucks Land Spraying, Production Work, TDG Experienced, reliable, references available. Rates negotiable.

Available immediately.

Please call Sonic Oilfield for dispatch 306-634-0070

“Packing Quality and Service into Everything We Do” 634-7966 • 106 Perkins Street, Estevan, SK www.xtremeoiltools.com E-mail: cmcgillicky@xtremeoiltools.com

B4

PIPELINE NEWS April 2009

Xtreme focus

Big wrench for the big man. Cory McGillicky heads up Xtreme Oil Tools of Estevan.

ENVIROTRAP SYSTEMS Secondary Wellhead Containment

Estevan – Multistage fracturing technology has made southeast Saskatchewan a hotspot in recent years, allowing for several new entrants into the business. One of those entrants is Xtreme Oil Tools of Estevan, lead by president and partowner Cory McGillicky.

Xtreme works principally in the southeast, as well as Kindersley country. “We spend a lot of time out there,” McGillicky says.

The company is one

-and-a-half years old, started from scratch.

How do you get established in the down hole tools business?

“You’ve got to have a proven product line and the reputation with the people you’ve worked with and the people working with you,” says McGillicky.

“We have a pile of experience running around the shop. Our newest tool hand has over 10 years experience.” ɸ Page B5

This is what our customers are saying...

I am pleased to say the operators are ecstatic about the new version of covers on this last round of containments. We tried some of your competitors containments and I surely wish we had not.

In any case we will be putting in an order later in the fall and you will be our only supplier from now on.

A

Bruce Miners

enerPLUS RESOURCES Pembina Lead Operator

THE PROBLEM

healthy See us for the area’s largest selection of lifestyle starts vitamins &

here

natural foods.

Old Fashion Foods 405 Souris Avenue NE Weyburn, SK. • 842-3003

Register Today

Estevan Safety Training Courses (Rural locations speciÀed) Environmental damage from wellhead packing failure and seepage costs the oil industry millions each year.

EnviroTrap will save you $$$: • reduce reclamation, clean-up, steam cleaning, disposal costs • reduce wellhead rust and corrosion • protect stuffing box packings from snow, rain, wind, debris • contains blowout contamination • help meet ever-increasing government environmental standards Preserve your good working relationship with landowners by demonstrating your commitment to responsible environmental practices.

THE SOLUTION

ADVANCED DESIGN FEATURES fully enclosed and self-contained durable, rust-free construction U.V. resistant all hardware is corrosion-resistant stainless steel sloped collection tray provides natural drainage, making the unit more drainage efficient and maintenance-free tapered polish rod washer drains migrating fluid back into collection unit automatic pumpjack shutdown also available 360º installation

EASY TO INSTALL, EASY TO USE

3 quick, easy installation (well shutdown during installation is recommended) 3 separate models available for any style stuffing boxes 3 spacious, semi-transparent holding tank - instantly monitor fluid levels 3 EnviroTrap two-piece cover is easy to remove and replace to accommodate packing changes and cleaning 3 available with Murphy Auto shutdown switch CHEMICAL BARREL CONTAINMENT STAND 360º INSTALLATION WELLHEAD CONTAINMENT UNIT

NEW CHEMICAL PUMP BOX

B unit cost is less than clean-up cost from one packing failure B minimal or no installation cost B minimal maintenance requirements - parts and service readily available if needed

CPR/1st Aid – Apr. 1-2; 7-8; 15-16; 18-19; 27-28; May 5-6; 9-10; 1920; Carnduff – Apr. 22-23; May 23-24; Carlyle - Apr. 13-14; May 25-26; Redvers – Apr. 29-30 CPR/1st Aid Refresher – Apr. 9; May 13 Confined Space – Apr. 17; May 13; Carlyle - Apr. 3; 23; May 28; Carnduff - Apr. 20; Redvers - Apr. 27 H2S Alive - Apr. 6; 14; 21; 29; May 7; 21; Carnduff - Apr. 24; Carlyle - Apr. 1; 16; May 12; 27; Redvers - Apr. 28 Waskada, MB - Apr. 7 TDG/WHMIS - Apr. 9; May 12 Detection & Control - Apr. 24; 25 Ground Disturbance - Carlyle - Apr. 2; 17; May 14; Carnduff - Apr. 21; OH&S/WHMIS - Apr. 13; Carlyle - Apr. 15 SECOR Refresher - Apr. 1 COR - Apr. 2-3; Virden, MB - Apr. 6-7 Fall Protection - Apr. 1-2; 4-5 Rig Rescue - Apr. 3; 6 Well Service BOP - Apr. 13-16; 20-23 Service Rig Assessor - Apr. 17 Safety Mgmt. & Reg. Awareness - Apr. 20-22 SMRA Refresher - Apr. 23 1st Line BOP - Apr. 20-23 Motorcycle Training - May 8-10 Early Safety Training Week in Estevan & Carlyle - Apr. 13-19 Students ages 16-21 may apply for an Early Safety Training Bursary Carnduff Safety Training Week - Apr. 20-24 - C. Space; Gr. Disturbance; CPR/1st Aid; H2S Alive ENFORM Classes at the Estevan Campus: Supervision, Team Leadership & Motivation - Apr. 6 Safety Inspection Skills - Apr. 14-15 Safety Training for Jobsite Supervisors - Apr. 16-17 SAIT Business Courses at the Estevan Campus: Presentation Skills - Apr. 30

MISSION STATEMENT “We Work In Harmony With Both The Oil Industry & Landowners To Protect Our Environment” ENVIROTRAP SYSTEMS 1-306-489-2250 Sales Contact: CHEYENNE OILFIELD SERVICES 1-306-483-7924 E-mail: envirotrap@sasktel.net www.envirotrap.com

For more info or to register call toll free 1-866-999-7372 Call us if you need a class set up just for you – we deliver safety training on our site or yours.

We also offer 1A Truck Driving Call 637-4921 for info.

Check out our website at www.southeastcollege.org

PIPELINE NEWS April 2009

B5

Xtreme looking to focus skills in new areas

Serving Southeast Saskatchewan’s well servicing needs since 1972 “EXPERIENCE, SERVICE & SAFETY YOU CAN TRUST.”

Tel (306) 634•5522 • Fax (306) 634-3238 Box 549, Estevan, Sk., S4A 2A5

www.ensignenergy.com

“Usually at this point, it’s an utter panic. But not this year, due to the drop in the prices of oil.

They’ve felt the drop in drilling rigs, down by over half.

“It’s a change in pace of what we doing things at. It was just a real rate race.”

They now have more time to prepare, and they have seen a switch back to conventional cased-hole work.

“The biggest thing from last year to this year is there was 97 drilling rigs, now there are 32, 30. The overall outlook is a third of last year.”

“The 67 rigs were all focused on Bakken liners, basically,” notes Paul Gigian, with Xtreme.

How do they deal with that drop off?

Expansion, replies McGillicky. Move into areas you are not in now. “We can take what we’ve learned here and apply it elsewhere.”

Celebrate another trip around the sun With the brightest star in your universe

Classic Jewelers Fine Jewelry & Gifts for all Occasions

©2007

ɺ Page B5 Most of those people are hands McGillicky says he hired into the industry.

They have seven staff in Estevan, plus two in Calgary doing sales.

A typical day may see a hand go out to a rig, and make a bottom-hole assembly. Or they could be running a common permanent isolation bridge plug to isolate different zones in a well bore. Then again, they could be working a horizontal multi-stage frac system.

The biggest part of the business is multi-stage fracs, according to McGillicky. “This has only become big in the last couple years. That’s when it took right off.”

Typically it means isolating an open hole leg for up to a mile, with eight to 12 evenly spaced stages.

They cost more to do than a vertical well, but they also produce more.

The tools can be run in with either a drilling rig or service rig.

We look at some packers in the back of the shop, but no pictures, please.

That sort of stuff is highly protected, proprietary information. “I can give you cartoon drawings,” he says with a smile.

A packer used for a multi-stage frac is basically a balloon on a stick, McGillicky explains. As you apply pressure to the inside of the pipe, it sheers screws, and a ratchet mechanism squeeze the rubber outward, securing its placement against the wellbore. It’s similar to stepping on a pop can, except it expands outwards. When you release the pressure, the ratchet holds the elements in place, allowing it to stay set.

They are placed at regular intervals, interstitially with liner joints.

On the inside of the packer is a seat that blocks the frac ports. A ball is used to apply pressure to the seat, opening the ports on the packer. You start with small balls at the end of the leg, and work your way up as you progress closer to the surface.

The balls are eventually retrieved when the well flows back.

The result is similar to doing a perforation through the liner.

“What makes every packer different is the major components that go in it,” according to McGillicky This makes up about three quarters of their business, according to McGillicky. “That is where the money is – big dollar jobs.”

Things have slowed down since Christmas, according to McGillicky.

“There’s no doubt, we’ve been hit hard. We’re not like last year. But last year was a phenomenal year.

Ph: 634-5338 • Estevan Shoppers Mall • Open Sundays 12 - 4

634-3009

Estevan

DENNIS TROBERT 20 & 30 Ton Pickers Owner - 421-3807 Winch Trucks Norm Meyers Bed Trucks Sales - 421-8640 Low Boy & High Boy Trailers Les McLenehan General OilÀeld Hauling Dispatcher/Sales - 421-8810

Vacuum Truck Services • Steam Cleaning Septic Tank Service Portable Bathroom Rentals Pressure Washing • Dry Steam Boiler

634-3144

67 Devonian Street, Estevan, Saskatchewan

B6

PIPELINE NEWS April 2009

What we make on the ferris wheel, „ By Brian Zinchuk Melita, Man. – Head oďŹƒce is hardly noticeable. Indeed, you might be thinking you’re going

in renew your drivers license or perhaps to buy a house or mutual fund.

Yet Antler River Resources, whose president/

CEO operates out of the Cameron Agencies ofďŹ ce on the Main Street of Melita, Man., is plugging away, drilling wells

:54? 85(/:'/22+ ,/+2* 9;6+8/4:+4*+4:

(U^ )GXR_RK 9GYQGZINK]GT ]]] YG\GTTGKTKXM_ IUS

5LLOIK )KRR ,G^ ZXUHOZGORRK&YG\GTTGKTKXM_ IUS

PARKSIDE OILFIELD SERVICES LTD.

• 4 Mobile Steamer & Washer Units • 5 Tractor Mower Units - For Lease Mowing • Lease Seeding • Texas Gates • Straw for Reclamation • Wellhead Enclosures • Snow Removal • 4 tractors with blowers • 2 tractors with blades

Office: 306-538-4487

Box 278, Kennedy, SK S0G 2R0 Cell: 577-7694

and keeping active.

The slowdown in the patch makes it more economical for those who are active, he says. “Prices are more negotiable now than they have been for a considerable time. Basically it is an opportunity.

When everyone else is sitting on the sidelines, I’m just getting going,� according to Murray Cameron.

The small, privatelyheld junior oil producer has been active Manitoba since 1983, when the extreme southwest corner of Manitoba became active with the Waskada ďŹ eld “We’re really junior,â€? says Cameron. “We’re

one of the smaller companies in Manitoba.�

The Manitoba oilpatch is to Saskatchewan what Saskatchewan’s oilpatch is to Alberta – almost an order of magnitude smaller. “We’ll have seven rigs working here and we’ll think we’re busy,� he says. “A number of local residents came to me,�

Cameron says of the company’s startup. It’s got six active partners, and a number of smaller partners at present time. “We’re drilling at Sinclair in the Bakken,� he says. “We have six wells up there right now.�

But that’ not where

most of their wells are. “In Manitoba, we call it the MC3. In Saskatchewan, you call it the Frobisher.� “We do a majority of verticals, but we are doing a horizontal in the Frobisher,� he says. In midFebruary, Eagle Drilling Services punched a hole from them at Pierson, just west of Melita. It’s near where CNRL has a number of horizontal wells. “We’ll drill maybe three over the winter, another three over the summer,� he says, with six wells a year in total. “That seems to be our goal at the present time.� ɸ Page B7

Desk and Derrick

The Southeast Desk and Derrick club checked out Prairie Rat Hole Services Ltd. on Mar. 16. There they provided with a demonstration of what a rat hole rig does. In the

coveralls on the left is Mel Trobert, owner.

Operators Corey Simon, in the rig, and Travis Paterson set up the rig.

Photo by Brian Zinchuk

Electric Submersible Pumps Horizontal Pumping Systems

Sales

Rentals

Service

(306) 634-4646 (office) (306) 421-6038 (cell) 24hour: 1-866WFT-4ESP 1-866-938-4377

OilÂżeld, Industrial, Commercial

Ph:(306) 634-9888

ELECTRIC MOTOR DIV. New/Used Sales Complete Rewinding & Repair REPAIR SHOP

Borets-Weatherford (Canada) Ltd. #5 Lomoro Street Estevan, SK S4A 2A7 •Artificial Lift •Water Disposal •Pipeline Boost

Trash Pumps, Lights, Heaters, Generators, Compressors, Converters

Genset / Light Towers Gas Powered Pumps Telescoping Fork & Scissor Lifts Backhoe / Trenchers / Trailers Temporary Power Cable

PIPELINE NEWS April 2009

we lose on the merry-go-round been re-investing, he says, noting, “We basically pay as we go. We do joint ventures with various companies.”

Greg Barrows is a partner in Cameron Agencies, and he’s also a partner on a number of wells, on a farm-in basis. Sitting down with Cameron and this re-

Jack Vanhove, Murray Cameron and Greg Barrows have a brief lunch at the local Chinese cafe in Melita, Man. Cameron acts as president/CEO for Antler River Resources, while Barrows participates with several wells on a farm-in basis. Jack Vanhove does occasional maintenance for Antler River Resources, noting, “I set the jacks.”

Photo by Brian Zinchuk

ɺ Page B6 “Manitoba has always been sort of the marginal area. When prices did go up, so does discoveries. “When oil was $12 a barrel, I’ve been around then,” he notes.

“We’re happy with $50 to $70 oil. We can do quite well with that.”

The company has about 22 wells, all but one were active as of early February. All are oil, as he notes Manitoba has no commercial gas production. Grades are from light to medium crude.

The wells are located in the Sinclair, Hartney, Coulter and Regent areas.

Pointing to the locations on the Manitoba Petroleum Branch GIS map, some of the those fields appear pretty tiny, barely a few miles across.

They’re pretty small too, he notes.

In the Bakken, one well is a dual producer, pulling from the Lodgepole and Bakken forma-

tions.

“We’ve hired CNRL and Tundra to do our cleaning, knocking the water out of it.”

All their wells are tanked, and trucked to terminals. “We deliver to Cromer, and CNRL in Pierson which is pipelined into Saskatchewan.”

For operational staff, it’s pretty small. They have an office in Pierson, with a full time bookkeeper. “We hire two contract operators - one for north, one for south.”

“Getting leases is quite economical,” he says. It helps to be local, and that people know they’re trying to build up the area.

“I think I’ve paid my price a few times. We’ve survived a few rough times. We’re well funded now.”

“We know there’s valleys and rises at times.

It’s part of the business.”

It’s important to keep lifting costs to what you can handle, he says.

OIL & GAS MINERAL OWNERSHIP You can minimize your income taxes upon production and later upon your death with a proper Oil & Gas Family Trust.

You can lose money without proper advice!

TOM SCHUCK

Taxation of Mineral Holdings Mineral & Royalty Trusts Family Trusts & Joint Ventures Incorporation of Oil Field Companies Leasing Oil & Gas Properties Re-organizations Purchase and Sale of Oil & Gas Interests 319 Souris Avenue N.E., Weyburn, SK

(306) 842-4654 www.nswb.com Over 35 years of legal experience

porter at the local Chinese cafe, Barrows notes with a smile, “Keeping you broke keeps you ambitious.”

“Once you get going, the income off the other wells keeps you drilling wells.”

Barrows is involved with financial planning when he’s not in the

oilpatch, but it’s a good combination, he notes, as few people in that field have an intimate knowledge of the patch.

Quoting from a former director, the late Harvey Clark, Cameron says, “What we make on the ferris wheel, we lose on the merry-goround.”

Acquire, Exploit & Explore A Proud Producer in Southeast Saskatchewan

If the price goes too low, you have to shut in wells.

“Our lifting costs are fairly reasonable. [Our] oil is light, fairly clean.”

The company has

Saskatchewan OfÀce: #6, 461 King Street Estevan, Saskatchewan S4A 1K6 (306) 637-3462 www.tristaroilandgas.com

1120 East Avenue Weyburn, Sask.

S4H 3E4 Ph. 842-7290 Fax 842-7277

Welcome to Industrial Electric Industrial Electric (Weyburn) Ltd is a major maintenance and installations contractor for manufacturing and processing industries in the oil and gas sector. For over 35 years, IEW has provided high quality maintenance and installation services for some of Canada's largest companies.

From general electrical contracting to complex installations, IEW's committed group of electrical professionals is prepared for any project. Our growing team of electricians and instrument mechanics maintains exceptional standards of quality and customer service.

Check us out on the web www.industrialelectric.ca

B7

Exceeding expectations IEW is committed to the highest standards of quality.

Join the IEW team Exciting opportunities with a superior employer.

E-mail resumes to: employment@industrialelectric.ca

B8

PIPELINE NEWS April 2009

Establishing a beachhead

Mike Saar of Trent’s Tire in Estevan works on an oilpatch truck in the bay. Photo by Brian Zinchuk

By Brian Zinchuk Estevan – Trent’s Truck and Tire Repair, located between Ounger and Torquay has established a beachhead in the Estevan market, setting up shop in a bay of Dart Services on Estevan’s west side.

The Estevan location is called Trent’s Tire, and is owned by Trent Emmel. He’s taking advantage of some space available in his brother Davin’s shop. Davin Emmel and his parter Marty Hanson own and operate Dart Services.

Trent Emmel says “We were always getting calls out here for tires from Estevan.”

Lonnie Elder heads up the Estevan location. He says they saw an opportunity to set up in Estevan.

Operations started on Jan. 5, but he notes people were asking for service in the weeks preceeding the actual opening of the story.

The tire shop currently employs four.

Their product line is mostly just tires right now, according to Elder, anything from ATV to farm tractors. “I just had a customer come in yesterday with a ’59 Ford looking for wide whitewalls. I found them for him.”

“I’m hooked up with five suppliers,” he notes.

Inventory is mostly kept in sea containers, with high throughout items kept on a rack in the bay.

The shop is equipped with a tire balancer, car tire machine, and two large truck tire machines.

There’s a one-tonne service truck in the works, according to Elder.

Come this summer, Trent Emmel hopes to begin construction of a new facility nearby the Dart Services building, on the 10 acres Davin Emmel and Hanson own. “Probably right next door,” Trent says.

“The shop we want to build is like a drive through. Come in one end, leave the other,” Elder explains.

They would likely expand into servicing and safety, according to Trent Emmel, in the new facility.

Currently they have enough room to get a B-train semi indoors. That’s useful, because a good chunk of their customer base is local oilpatch companies.

Have they had a good response to their entry in the Estevan market?

“Buddy, unbelievable,” Elder says. A minute later, a customer comes in, asking to set up a new account.

Member of CAODC, locally owned with four free standing double rigs and two free standing single rigs

Kelly LTD.

Ron Newett - 861-1062 • Al Vilcu - 861-5253 Field Supervisor - Darren Wanner • 861-9990

Southern Range Well Servicing Ltd.

Box 895, Weyburn, SK, S4H 2L1 southernrange@sasktel.net Bus: (306) 842-3401 Fax: (306) 842-3402

SUN VALLEY LAND LTD. General Oilfield Hauling Manitoba, Saskatchewan, Alberta 8 to 30 Ton Picker Service Winch Trucks, Bed Trucks Air-Ride Equipment Tank Rentals

634-8888 - ESTEVAN, SK

6MMLYPUN *VTWSL[L 3HUK :LY]PJLZ :\YMHJL 4PULYHS 3HUK (JX\PZP[PVUZ

634-6684 Owned & Operated by Keith & Janice Hanson #306 Wicklow Centre - 1133-4th Street, Estevan, SK www.sunvalleyland.ca • land@sunvalleyland.ca

PIPELINE NEWS April 2009

B9

Outgrew last shop in two years Estevan – Having outgrown its last shop in just two years time, Supreme Oilfield Construction moved into its new headquarters just east of Estevan in early March.

The new facility is on the road leading to the Shand Power Station, and is a short distance from where the new bypass around Estevan will terminate on the east side, joining Highway 39.

“We’re a full service oilfield pipeline and construction company,” explains Kent Pachal, controller. That includes building batteries and gas plants.

Don Biette is the president of Supreme.

The company averages about 110 employees, depending on the season, and peaked last summer around 150. While they have worked in Alberta, southwest Saskatchewan, and southwest Manitoba, Supreme principally operates in southeast Saskatchewan.

Pachal reports they have been busier this past January and February compared to the norm, but not as much as the last two years. “There’s definitely a big push

right now,” he noted in early March, referring to the lead up to spring breakup.

Construction on the new shop started in June, 2008. Temporary office space was located in downtown Estevan, and the previous shop was located on the north side of the city. They grew out of it in just two years.

The biggest difference with the new location is space – they now have lots of it. Before, Pachal says there was “nowhere for our guys to do skid work of the bolting up of headers.

Even the yard wasn’t big enough.”

There was no room to manoeuvre trucks, which is important, considering they went from one tractor unit to six.

The new home is on

one of six lots, four have been sold or are in the process of selling. Border Insulators will soon be a neighbour, and two other lots have gone to a private party. One more lot is in the works.

With 19 acres, Pachal says, “I think we’re pretty much set.” ɸ Page B10

The washbay in Supreme OilÀeld Construction’s new shop is large enough to put two trucks in it side by side.

REDLINE WELL SERVICE Chris Scholpp 421-0557 Phone: 487-7790 OfÀce: 487-2201 redlinewell@sasktel.net

• Completions • Consulting & Supervision • Contract Battery Operating • Production Management • Canada & USA 24 Hour Hot Shot Service

ESTEVAN PLASTIC PRODUCTS LTD. Your One Stop Shop For Fibreglass Tanks 500 Barrel 1 piece fibreglass Tank 15’ diameter x 16’ high

650 Barrel 1 piece fibreglass Tank 15’ diameter x 20’ high

780 Barrel 1 piece fibreglass Tank 15’ diameter x 25’ high

We manufacture these engineered Fibreglass Tanks

400 Barrel - 12’ diameter x 20’ high 500 Barrel - 12’ diameter x 25’ high Also Manufacturers of: The welding shop in Supreme OilÀeld Construction’s new Estevan building is three times large than the area they used to work in. Welder Sarah Schiestel now has far more space to work with.

• Fibreglass Belt Guards • Internal Fibreglass of Steel Tanks • Tank Skimmers • Insulated Wellhead Shelters

Toll Free: 1-888-638-6433 or 1-306-634-6400 Plant: 1-306-388-2344 Fax: 1-306-634-7828 email: eppl@sasktel.net

website: www.estevanplastics.com

B10

PIPELINE NEWS April 2009

Supreme OilÀeld Construction’s new facility just east of Estevan provides a lot more room for moving around as well as building things like skid packages.

Get ready to move with...

It’s a lot easier to do mechanical work in a large, heated shop. Supreme OilÀeld Construction’s new shop gives their mechanic a new home to tackle maintenance issues.

Fast growth

CUSTOM BUILT RTMs • FACTORY BUILT RTMs • MODULARS • SINGLE WIDES The Future of Energy Efficiency... TODAY! IN-HOUSE DRAFTING & DESIGN SERVICES

BADGER DAYLIGHTING™

Safety

R-30 R-50 INSULATION

WALLS ATTICS NOW STANDARD IN McDIARMID HOMES

...the World’s Best Energy Glass

Western Canada’s largest inventory of ready-to-move, fully-finished new homes available for quick or immediate possession!

For details, call one of our 11 Sales & Manufacturing locations:

www.mcdiarmid.com

Dauphin, MB Toll free: 1-877-313-9663 Yorkton, SK Toll free: 1-800-667-1580 White City (Regina), SK Toll free: 1-866-788-4471

Full Service Hydrovac Fleet Available to Saskatchewan • Tandem Tandem • Tri Axle • Tandem • 4 x 4

Sunscreen for your home...

Headingley (Winnipeg), MB Toll free: 1-866-255-0206 Portage la Prairie, MB Toll free: 1-866-466-7980 Brandon, MB Toll free: 1-866-940-4945

It’s What We Do. It’s What We Deliver.

Prince Albert, SK Toll free: 1-888-273-1001 Saskatoon, SK Toll free: 1-866-384-5706 Swift Current, SK Toll free: 1-800-567-0701

North Battleford, SK Toll free: 1-866-650-7655 St. Paul, AB Toll free: 1-877-645-6876

Dealer opportunities: Request info at: ddt@mcdiarmidhomes.com

Daylighting, Oilfield Hauling, Steaming & Mobile Pressure Washing, Winch, Pressure, Water & Vacuum Truck Services

Regina................................ (306) 531-9487 Saskatoon ......................... (306) 934-2964 Swift Current ..................... (306) 773-0724 Lloydminster ..................... (306) 875-1640 Kindersley ......................... (306) 463-6006 Carlyle................................ (306) 577-3400 Weyburn ............................ (306) 848-0906 Carnduff............................. (306) 482-5270

Toll Free: 1-800-465-4273 www.badgerinc.com

Office - Kola, MB. 204-556-2464 Dan O’Connor Operations Manager 204-748-5088

ɺ Page B9 The building is 240 ft. by 100 ft. The redroofed shop has three areas, plus offices. Office space fills the east end of the building, followed by a mechanical shop, welding shop, and wash bay.

There’s plenty of storage, and a plan do to more gravelling of the lot.

The welding shop is equipped with two 10-tonne overhead cranes, something that welder Lorne Turk says is a welcome addition. “It’s like heaven,” he says with a smile, working in the welding area. He’s particularly happy to have a flat floor to work on.

The large welding shop, three times larger than their previous quarters, means the company can become more vertically integrated, doing work they would have otherwise subcontracted out.

The wash bay is big enough to put several vehicles in, and wide enough to put semis in side-by-side. It will be used primarily for washing, however.

In-floor heat is installed in the shop areas.

The office area includes a board room, and allows for confidential meetings. It makes it easier for management to work together, Pachal notes, saying. “It’s important you run lean and mean.”

“We’re going to be able to manage the whole business better.

Supreme also has locations in Oxbow and Kipling.

PIPELINE NEWS April 2009

B11

Anticipating more action after breakup getting close to what he feels is a tipping point.

“Most of the companies are looking at $50+,” he says.

Prices need to stabilize and stay there, he notes. That’s the threshold where companies will spend more. “The biggest problem is it

fluctuates.”

In mid-March, Eagle had five of seven service rigs going, dropping to three by Mar. 17.

With roadbans coming on, everyone’s gearing to stop, he says.

Bennett expects a long road ban, given the weather the southeast

has had. There will be some work, depending on what RMs allow, but breakup will be catchup time. Maintenance will be done, and he says, “We’ve got a bunch of courses we have to put the guys through. Road bans are a good time to do it.”

WE’RE THINKING BIG • Pipeline Construction • Facilities Construction and Installation • Horizontal and Directional Drilling • Environmental Reclamation and Remediation • Plant and Facilities Maintenance • Welding & Fabrication Eagle Well Servicing Rig No. 31 works on an endless tubing cleanout northeast of Kisbey on March 13. BJ Services Company Canada took part.

Photo by Brian Zinchuk

Estevan – With oil inching up towards the $50 mark by midMarch, Brad Bennett, area manager for Eagle Well Servicing, anticipates more work come

summer.

“We were going really hard until Christmas.

Come January, it slowed.

But it looks pretty positive after breakup.”

Bennett says this on

Mike Brasseur, Division Manager (306) 634-4554 (306) 634-4664 Cell: (306) 461-8111 Email: mbrasseur@bcpl.ca Web: bigcountryenergy.com

St. Patrick’s day, when oil is hovering around the $47/bbl range. It’s

JACK!

IT’S ABOUT TIME

We Offer A Complete Stock Of: Angles • Brass • Beams • Cable • Chain • Channel • Flats • Pipe • Expanded Metal • Sheet & Plate • Rebar • Wire Mesh • Rounds • Shafting • Bolts • Hardware • Square & Rectangular Tubing • Tools & Fittings • Welding Supplies

Highest Market Prices Paid For: Steel • Cast • Brass • Copper • Stainless Steel • Radiators • Batteries • Lead • Aluminum etc.

Order Desk - 842-3548 1-866-84STEEL (1-866-847-8335) mryglod.steel@sasktel.net 1305 Railway Ave., Weyburn, SK 842-4185 or 842-4462 Fax: 842-7799

Jack knows time is money Local Distributor for:

Odour Control Systems Enviromentally Friendly Removal of H2S

Sized to your speciÀc needs For more information call Phone: 306-842-2008 Fax: 306-842-2009 www.edgeoilÀeld.ca Cost Effective Easy to Install Non-Toxic

PAYS FOR ITSELF

INSTALLATION

YOUR TIME

The increase in oil/gas production is immediately measureable not only in time, but real dollars.

It only takes a few hours to have your compressor up and running, practically eliminating production downtime.

Our safety qualified installers will perform maintenance checks when required, onsite, saving you the trip in.

– 4 WEEKS

– ZERO

– 1 DAY

www.annugas.com Toll Free

1.866.ANNUGAS

COMPRESSION

CONSULTING

LTD.

ANNUGAS ANNUGAS PRODUCTION PRODUCTION ENHANCER ENHANCER ®

B12

PIPELINE NEWS April 2009

Frac crew needed a home Estevan – With a new frac crew having moved into Estevan last summer, Trican Well

Trican Well Service’s new shop, still under construction, will house the frac crew the company brought into Estevan in the summer of 2008.

Photo by Brian Zinchuk

This will be the ofÀce area for the new shop.

Service needed somewhere to put them.

Construction started on the new shop started last year, and hopefully they will be in it by mid-spring.

The new facility, located on the southwest corner of their Estevan yard, includes four bays, a drive through wash bay, and a pit for servicing and inspection.

When completed the shop wil have offices, a coffee room and training room.

“We needed a frac crew in the area to provide full service and compete with competitors,” explains Rod Fisk,

Hey Girls!

Just wanna have fun?

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 “Links of Friendship” via over 29 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 “Fostering Friendship” 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.

Our next meeting will be held April 16w, 2009.

For more information call Cindy Beaulieu at 634-4970 or Connie Spencer at 634-1012 Check out our website at: www.oilwives.com

interim manager of the Estevan location.

“We had employees transfer from all areas of Alberta and some from BC.” There are about 15 people on a frac crew.

The old shop was getting too congested, Fisk says.

The main thing is to have a good place to do services, a place where mechanics can make sure equipment is looked after properly.

Most of their fracing is in the Bakken, where Fisk notes, “The technology is just overwhelming and ongoing.”

Prior to the arrival of the frac crew, cementing and acidizing was the key ingredient in the Estevan operation. It still makes up 75 per cent of Trican’s southeast Saskatchewan operations, with the remainingg 25 per cent coming from fracturing. They have 55 people based in Estevan, with the next closest Trican bases set up in Lloydminster, Provost and Medicine Hat. “Guys are still going to work every day, but we are noticing a bit of a slow down,” Fisk says, noting there has not been as much of a big push for the end of the winter season.

“We try to keep everyone on board,” he notes, during spring breakup. There are signup lists for training posted in the office, and there will be plenty of polishing.

Estevan Sales & Service Facility Now Open!

Visit us at #1-502 6th Street Manufacturer of downhole Electrical Submersible Pumping Systems as well as surface Horizontal Pumping Systems and Variable Frequency Generators to the oil industry.

• Service Technician and Spool Truck available • For service call Chris at 306.461.6644 • For sales call Karry at 306.421.7435 • For all other inquiries call 306.634.6281 Advanced Thinking–Down to Earth Service

www.cai-esp.com

PIPELINE NEWS April 2009

Last year was great. This year?

A little slower Coulter field, south of Melita near where Highway 83 meets the US border.

“Either you go west to Oxbow or north to Virden. We’re kind of the only one left in town,” he says of supply stores for the oilpatch.

Two years ago, TS & M expanded their Melita operations substantially. Where it used to be just two full-timers, including Sonnenberg, for literally decades, now they’ve got five full time positions and two part timers. The new shop, two years old this spring, is 8,800 square feet, more than four times bigger than their older location.

“We probably have five to six businesses set up in town that have a shop or office,” he says of the local oilpatch.

“Overall, we have about 25 companies that have people in town.”

“We probably have as many employees now as we did back then, but not as many businesses in town,” he says, compared to when the Waskada field first put the area on the map in the 1980s.

He says about 95 people live in Melita but work elsewhere in the oilpatch. That’s a substantial chunk of the local

TS & M in Melita grew from two full time staff to Àve, with a couple part timers. Back row, from left” Lynn Vanbeselaere, admin; Danial Forster, repair shop.

Front row: Wayne Sonnenberg, branch manager; James Ternovetsky, counter. Missing are Jen Schoonbaert, admin; Gerry Vanmackelbergh, repair shop; and Ryan Crepeele, repair shop.

populace, and as a result, he says, “Throughout the day, you don’t see much traffic in town. Gone at six to seven in the morning are Fast Trucking and service rig crews.”

CUSTOM BUILT WELLSITE ACCOMMODATIONS Wheeled Units Skid Units Service Rig Doghouses

(306) 861-5655 www.dembytrailer.com

He’s dying

for new

clubs You breathe life into the idea.

(780) 875-0203 LloydMall Lloydminster

2009

Melita - Last year was the best year they’ve had to date, but the manager of the Melita, Man., branch of TS & M, expects things to slow down somewhat this year.

“Right now we are in a slow down trend due to the price of oil,” says Wayne Sonnenberg.

TS & M is an oilfield supply store affiliated with National Oilwell Varco, with its head office in Estevan.

“There’s going to be a reality check with the way prices have inflated,” Sonnenberg notes.

“Everybody was short staffed, everybody had to pay higher wages to hold onto the people you had.”

“I thinking things will pick back up when the price of oil picks up.”

“Talking to a few guys, it looks like it’s going to be at least fall,” Sonnenberg said in February. Not long before, he was expecting things to pick up in the summer.

“Overall, last year was the best year we’ve had,” he says, noting there is a correlation to their recent expansion. They saw a lot of crew from Estevan and Alberta, with plenty of walk-in traffic from out-of-province workers.

“We probably doubled our clothing sales last year.”

Sonnenberg has been with TS & M in Melita since the company opened its doors there in 1983. “I came down and started it,” he says, noting he was originally with the Weyburn office.

One of the original owners of TS & M had come into Melita a few times a week prior to that.

This worked out the best,” he says of the Melita location. “We’re centrally located.”

To the southeast is the Waskada field, with Whitewater and Hartney to the east, Sinclair and Virden to the North, and Pierson and Gainsborough to the west.

“You’ve got pools here and there, not one great big field,” he says.

Some of those pools are pretty small, like the

B13

• OilÀeld • Environmental • Water & Sewer • Basements • Demolition • Lowbed Trucking

• Sand & Gravel • Rock & Topsoil • Excavators • Backhoes • Dozers • End Dumps

Ralph French

Direct (306) 577-8553

Tank Trucks

Greg Cutler

Direct (306) 577-1950 r.frenchtransport@yourlink.ca

Office/Shop: (306) 457-3774 Fax: (306) 457-2735 24 HOUR EMERGENCY (306) 455-2741

B14

PIPELINE NEWS April 2009

Brian Fuhr, manager of Weatherford Completions Estevan location, says packers are the big thing when it comes to downhole tools in the Bakkenplay.

Photo by Brian Zinchuk

SURFACE BIT RENTAL HOT SHOT SERVICE LIGHT OILFIELD HAULING 24 HR SERVICE CHAD FROESE

CELL: 306-421-3726 RES: 306-634-7538

Getting a lot done at downhole

By Brian Zinchuk Estevan – Ever try to reach for something that fell behind the couch?

When you’re lying on the floor, with your arm behind the couch, there’s only so much you can do with your hand to accomplish your task.

Downhole tools are, in a way, like that.

You can push, pull rotate or pressure activate them. But that’s about it.

Pretty much everything you want to accomplish, from setting mechanical grips to hold on to the well bore, to opening or closing ports, to inflating plugs, has to be accomplished using these limited actions.

Yet the ingenuity of the oilpatch has creates all kinds of tools that can

BERT BAXTER TRANSPORT LTD.

accomplish a myriad of purposes thousands of meters underground.

Weatherford Completions of one of those companies working on and with downhole tools.

“We run production and completion tools on drilling and service rigs,” explains Brian Fuhr, area manager for Weatherford Completions in Estevan.

Just what is a downhole tool?

Fuhr explains it is a mechanical tool for running the well. It can include packers, plugs, inflatable tools, anchors, injection tools among others. Plugs will shut off a well, while a packer is used to isolate sections of the wellbore. An anchor-catcher anchors the tubing on a traditional pumping well, keeping the tubing in tension so that it is not moving with the rod string, as well as keeping it from falling to the bottom of the well.

Some tools are retrievable, while others are permanently set. Packers, for instance, are usually permanently set once put

into place.

There are service tools, used for purposes like cementing or acidizing. Straddle inflates allow you to selectively isolate a portion of the hole, and can be used for swabbing, as an example.

“We assemble the tools here, then we have service reps take them out into the field, to drilling or service rigs.”

Downhole tools can be run at the end of a drilling string, tubing, or even wireline.

With the Bakken play, frac liners are the biggest thing right now, Fuhr explains. Weatherford is a later entrant into the field, he says, noting they spent a lot of time on research, development and testing.

“We’ve been doing a lot of packer work for EnCana CO2 injection wells. We’ve been working with them for a few years.”

That has necessitated the use of nickel-coated permanent packers, because carbon dioxide creates a highly corrosive environment. ɸ Page B15

Estevan OfÀce 83 Devonian Street

636-1640

BAKER PETROLITE

301 Kensington Ave. Estevan, SK. Phone: (306) 634-3616

3902 - 75th Ave. Leduc, AB. Phone: (888) 835-0541

www.bbaxtertransport.ca

John Prette 421-9676 Rob Hildebrand 421-3495 Bob Garrow 421-3235 Dominic Cote 421-0973 Dustin Hockey 421-3623 Matt Clausen 421-6214

Nolan Balon 461-6012 Blair Heaman Virden, MB 204-748-7963 Mike Rookes 204-851-5382 Collin Holmes 204-851-5860 Virden OfÀce

204-748-6858

PIPELINE NEWS April 2009

B15

RIght: Sometimes you need a good whack to motivate the part you’re working on. This lesson in motivation is brought to you by the shop at Weatherford Completions, Estevan.

Below: Tools for clients Àll the racks in the back of the Weatherford Completions shop in Estevan.

Weatherford knows the tools of the trade a zone is useful, particularly if you may be get“It’s been good. We ting watered out from a went to nickel because it particular zone. seems to hold up better,” “We’re trying to get customers interested in Fuhr explains.

Most packers use a the reshiftable,” he says, single shot sleeve, where noting there are more a ball is used to apply options with that design pressure to the sleeve, down the road.

“We want to keep opening up the ports.

Once opened, they stay doing traditional stuff too,” he says. open.

The bulk of their A less common model is a reshiftable sleeve, work is in horizontal which allows ports to be wells. opened and closed using Other than push, a tool run on the end of pull, rotate or pressure activate, are there other tubing or a coil.

Yet another design way a person can mais the monobore, which nipulate a downhole tool, uses a tool to shift open like radio signals?

“We’re working on or closed.

Ball-activated de- that,” Fuhr says, noting signs are the simplest, Weatherford is looking and make up for about 90 at more intelligent tools.

“We’re there more per cent of sales, according to Fuhr. But having for optimizing the well. the ability to shut down If they can increase pro-

Apex wins Carnduff Oil Ladies Bonspiel Carnduff – Apex won the A-side of the Carnduff Oil Ladies Bonspiel March 6-8. Fourteen rinks participated.

The winning rink was skipped by Tricia Mackenzie. They beat out Zargon for the championship.

The second event went to TriStar, skipped by Sherrilee Orsted, beating out Carsons, skipped by Larissa Murray.

The third event went to Eagle Drilling’s Misti Big Eagle Bayliss’ rink. They conquered Betts Contract’s Sandra Chadney’s rink.

Exclusive to Smoke ‘Em Diesel and first available in Canada: DPF Delete kits for your new diesel pickup.

Increase mileage and cure problems associated with all day idle.

Also available all diesel performance, lift kits and heavy duty/race series transmissions with up to 3 year/60,000 km warranty.

Call for all your needs (306)545-5911 Saskatchewan’s #1 NADP Dealer!

duction, they’re better off. A lot of times in this area, it’s getting rid of water.”

Rebuild Race car motors are continuously rebuilt. So, too, are downhole tools.

“Each time a tool is used, it is redressed,” Fuhr says. That includes replacing O-rings, elastomers, sheers or elements, as needed. When tool hands are not in the field running tools, they’re in the shop, prepping or rebuilding. “Sometimes they look fine, other times, tore right up.”

“It’s a big part of our job. Half of it is in the shop, half is in the field,” Fuhr says. “We have a machine shop we use quite a bit.”

Right now a lot of Weatherford Completions inventory is in Edmonton. Fuhr notes they would like to set up a warehouse in their Estevan yard.

Big or Small we Do All

ɺ Page B14

Three Star ENVIRONMENTAL * Environmental Protection Plans * Impact Assessments * Pre-Site Assessments * Environmental Audits & Assessments * Well Site & Battery Abandonments * Drilling Waste Management * Pre/Post Water Well Testing * EM Surveying * GPS Mapping

443-2429

FAX: 443-2453 BOX 160, ALIDA, SASK. S0C 0B0 www.threestarenvironmental.com

Girard Bulk Service Ltd. Bulk Petroleum & Propane * Cardlock Propane Accessories * Lubricants

PROPANE

ESTEVAN OXBOW ALIDA CARLYLE REDVERS 134 4th Street 637-4370 483-2826 443-2466 453-2262 452-3216

Custom Metal Fabricating: Manufacturing, Sales & Repair • Welding • Fabricating • Machining • Hydraulics • Painting • Sandblasting

501 6th Street & Highway 39 East Estevan, SK Phone: 634-8388 Fax: 634-8389 Email: doallmetal@sasktel.net Website: www.doallmetal.com

B16

PIPELINE NEWS April 2009

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

C-Section April 2009

Canasonics downhole tools making waves

By Geoff Lee Marshall –Canasonics, a Calgary-based company is making waves in the oilpatch with new downhole tools that use sonic technology to clean, stimulate and remediate wells.

Two of the most popular tools are the APT acoustic pulse tool that runs downhole with joint tubing, and the smaller Sonics stimulation tool, used with coil tubing.

“We have really good success with injection wells,” said Don Tarasiuk, the Canasonics rep in the Lloydminster area. “That’s where it really shines.

“It works extremely well opening up the formation and the perforations to accept a higher volume of disposal water.”

An injection well is used by heavy oil companies to dispose of the salt water that gets pumped to the surface with oil. The perforations in the pipe can get plugged like they do with production wells.

“We go down with our tool and clean it out,” said Tarasiuk. “This enhances their disposal rate and capacity. They can pump so much faster and get rid of the salt water into the formation faster.”

Canasonics tools have been used to stimulate or remediate more than 650 wells including many heavy oil and gas wells with a success rate of 68 to 87 per cent depending on the type of well and application.

“It has applications in lighter oil too, wherever there is a problem plugging off the formations or perforations,” said Tarasiuk. “It’s a stimulation and a remediation tool.”

Both tools work by creating a pulse in the fluid matrix of a wellbore. The pulse is an acoustic pulse that flows through the fluid. The tool creates up to 90 hp of pulse pressure.

The unit has a fluidic oscillator with a shut-off valve so when one side is pulsing, the other side is not.

“It creates a back and forth motion of fluid down in the hole,” said Tarasiuk. “The action moves everything around down there and cleans it out. Slots and perforations in the formation casing downhole have a tendency to plug off with whatever foreign material might be down there. The tool and the pulse it generates, clean it out.”

The fluid used is water with a brine-based heavy oil chemical from different suppliers. Production water is also used in conjunction with a pressure truck to activate the tool to 2,000 to 2,500 lb. of pressure.

The tube-driven APT tool requires the use of a service rig to pull the tubing and attach the tool to

the end of the string.

The smaller Sonics Stimulation tool is inserted with coil tubing and goes downhole between the casing and the tubing, making it ideal for use in horizontal wells.

“We are hoping the tools end up to be a large part of the production of heavy oil here and in other countries,” Tarasiuk. “We are looking at possible work in northern United States and Australia.

“There’s a lot of new technology coming down the pipe from Canasonics. There are quite a few different pumping units under development and variations on our existing tools.

“We are experimenting with leaving them down an injection well permanently and injecting through them. So far, we’ve got positive results from those experiments.”

Tarasiuk says a lot of new stimulation and remediation tools are springing up in the industry as oil companies need to get oil out of the ground as cheaply as they can with the greatest volume possible.

“The recovery of heavy oil in this area is about eight per cent of what is in the ground,” said Tarasiuk. “They heavy oil companies need all the technology they can to recover the remainder that is down there.

“The stimulation or remediation of the formation makes it so the production reaches the pumps and makes it to the surface.”

Tarasiuk works one or two days a week out of his home after been coaxed out of retirement following a lifetime of jobs as a musician, a crop duster and farmer along with lengthy oilpatch experience pumping wells for Husky Energy and drilling wells before that.

As a Canasonics consultant, Tarasiuk rebuilds the tools after each use and delivers them to the lease and directs their action down the hole.

“I tell the operator what to do with it, how to operate it and how to stage the tool within the perforation,” said Tarasiuk. “It’s a matter of directing pressures and fluid rates and the rate of movement of the tool in the perforations to make sure we’re in the right place and cleaning out those perforations.”

When it comes to well stimulations with Canasonics, Tarasiuk says oil companies gauge the success of the tools by the cubic meter per day increase in the well.

“The end result of a well stimulation or remediation with our tool makes it way cheaper than a lot of other effort companies are trying to achieve down well,” he said.

Don Tarasiuk rebuilds the innovative Canasonics APT acoustic pulse tool after each use.

Photo by Geoff Lee

C2

PIPELINE NEWS April 2009

Nexen relies on Lloyd know-how

By Geoff Lee Lloydminster –Brock Johnson, Nexen Inc.’s lead production engineer for coal bed methane (CBM) gas, shared his company’s remedies for gas pains over its CBM play in northern Alberta at the March luncheon of the Lloydminster Petroleum Society.

Formally, the topic was “Production Challenges with Methane Extraction from Alberta’s Mannville Coal” in Nexen’s Fort Assiniboine CBM gas play where de-watering is a major issue.

“In our wet CBM wells, we start out without producing any gas whatsoever,” said Johnson. “We will produce water from one to three months before that first ounce of gas comes out of the reservoir.”

“Then the water rate will drop off and typically, the gas rate peaks six to eight months after we start production.

There’s a quick decline before it levels out in a very steady decline, so it’s longterm resource.”

Unlike conventional gas sandstone reservoirs where gas fills the voids be-

CARA DAWN TRANSPORT LTD.

Box 1905, R Regina, egin na, SK S4P 3E1 Ph.: Ph : 306-721-8888 • Toll To oll Free Free 1-800-723-3324 1-800 0-723-3324 Fax: 306-721-5118 Email: caradawntransport@sasktel.net

tween sand grains, in Mannville coal, the gas is part of the coal itself, lying 1,000 to 1,300 metres below ground “It won’t release out of that coal until you produce a significant amount of water which will de-pressure the formation allowing that gas to escape the coal,” explained Johnson.

“By de-watering it you are reducing the pressure inside that formation which allows that gas to escape the coal. It’s that pressure that is holding the gas in the coal.”

At the wet Mannville CBM site, gas is captured at the surface. The wellbore is used as a gas/water separator.

“We produce the water up the tubing and typically, the intake is sumped well below where the gas is entering the wellbore,” said Johnson.

“So the gas, by gravity will bubble up through that fluid level and get captured on the casing side of the wellbore and sent to a processing facility in the area.”

The water will travel up the tubing

that will typically lead to a storage tank at surface and is injected back into a disposal well.

Today, a wet Mannville well will produce an economical volume between 250,000 to one million cubic feet of CBM gas a day, depending on the geology of the well.

That goal was achieved by a decision Nexen made to switch the artificial lift system based on Electric Submersible Pumps (ESP) to a more reliable and cost-effective reciprocating rod pump system.

“The big challenge is the water,” said Johnson. “The water isn’t crystal clean water that you would hope to produce.

It’s contaminated with fines from the coal or by chunks that probably broke off the coal during drilling and make their way into the wellbore.

“Once that dirty water makes it into the pump, it will have the capacity to plug the pump or the intake of the pump so you can no longer produce water.” ɸ Page C3

Ryan Roen with the Lloydminster Petroleum Society presents a gift to guest speaker Brock Johnson from Nexen Inc. Photo by Geoff Lee

DAVE WELLINGS Cell: 306-536-3861

RICK ALLEN Cell: 306-536-7656

GORD BLOMMAERT Cell: 306-537-7565 CANADA/USA – BONDED CARRIER

MLS No. 325640

$214,900 Herb Cox - Realtor Excellent family home in North Battleford’s Kildeer Park offering 3 bedrooms, full bath + 3/4 + 1/2, many recent updates including new paint in & out, light ¿xtures, counter top stove, oven, dishwasher, shingles, large deck overlooking park, high ef¿ciency furnace, A/C, heated insulated garage, huge concrete driveway plus rear parking. Wood stove in family room, ¿replace upstairs in living room.

Westland Agencies Inc. 1541-100th Street North Battleford, SK 306-445-5555 westlandmall@sasktel.net www.westlandagencies.com

PIPELINE NEWS April 2009

C3

to capture coal bed methane ɺ Page C2 “The ESP pumps are an excellent pump but even the vendors will tell you they are not very good for producing solids. We didn’t anticipate the solids in our water that we later found we had.”

Johnson said before the switch, it cost $153,000 for an average ESP workover and there were 3.1 workovers per well per year. With the rod pumps, workover costs plummeted to $71,000 and only one workover per well per year was required.

“We changed our focus on artificial lifts and with that change we drastically reduced our operation costs and made the Mannville play very economical,” said Johnson.

Johnson credits ICI Artificial Lift Solutions Inc. and Weatherford Canada Partnership in Lloydminster for their technical solutions that allowed Nexen to complete the system using hydraulic pump jacks made by both companies.

“My experience in heavy oil allowed me to keep those companies in the back of my mind,” said Johnson. “When we were looking to address an artificial lift system, I knew where to get the surface equipment.”

In fact, Johnson is well known in Lloydminster social and professional circles. He grew up on his parents’ acreage in nearby Blackfoot and attended high school in Kitscoty.

After he graduated from the University of

Alberta in 2001 with a B.Sc in mechanical engineering, he worked in Calgary for a year and was transferred back to Lloyd where he spent five years with Nexen on heavy oil projects. He was also held executive posts on the petroleum society board of directors.

“I learned everything I know today from heavy oil,” said Johnson.

“There is a huge knowledge base here. There are a lot of guys who know a lot about artificial lift systems and I was lucky enough to learn from those individuals in the area. I was able to apply what I learned from my stint in Lloyd on CBM production in Leduc.”

Johnson also told his audience Nexen has CBM gas plays in the Horseshoe Canyon near Wetaskiwin and Camrose, a resource which he describes as shallower

dryer coal.

“We also have some test Mannville wells in that area too,” said Johnson. “There is still some research and development being done and we are still proving commerciality there.”

Johnson says the wet Mannville CBM he spoke of in his presentation was in the experimental stage “but we are at a point now where we have had a steady state production of water and gas. It’s been a commercial property at Fort Assiniboine for two years.

“Luckily, we got through our biggest production challenges just when the price of gas was so good. Although we are re-evaluating how fast we develop the rest of our land base, we’re still going ahead with all of the production we have on stream and the future looks bright for CBM.”

Johnson says despite that were seen as unecothe recession, unconven- nomical in the past, have new tional plays like CBM suddenly seen a gas hold a lot of promise.

“Before the recession it was always easier to access conventional plays in Alberta and in the world,” he said. “Those plays are getting harder to find so when demand stays the same or goes higher and the supply gets smaller, the price of oil and gas is going to go up.

“That price has reached a point where unconventional resources

light. They are the next resource to be addressed in Alberta.”

Brock Johnson holds a rock from a “wet” Mannville well that can damage a pump.

Photo by Geoff Lee

780.875.HOOK 4

6

6

5

Highway 16 West, 10 miles West of Lloydminster

24 Hour Heavy Truck Towing

30 TON WINCH TRACTOR

Air Cushion Recovery

TRI DRIVE 30 TON

We also have: 30 30 30 40

Ton Ton Ton Ton

Tow Truck (C500 Tri Drive) Tow Unit Winch Tractor/Tow Truck Sliding boom Recovery Unit

60 Ton Tandem Tri-Drive Tow Truck Safely tows all your Service rigs •

Coil Tubing • Flushbys • Picker Trucks

C4

PIPELINE NEWS April 2009 ADVERTORIAL

Smart people choose mortage experts

…more than ever!

At

Dominion Lending Centres (DLC) – we believe there are only 2 ways to get a mortgage in Canada and that’s either from your retail Banker or one of our very own Mortgage Professionals. The mortgage industry in Canada has changed tremendously over the past 10 years alone, and it is not by accident that the Mortgage Broker channel now accounts for well over 30% of all mortgage origination in Canada. With well in excess of one thousand DLC mortgage professional men and women across Canada, it’s a trend that continues to grow at a very rapid rate and the ever sophisticated Canadian mortgage consumer is reaping every benefit. It is important to note that when making the most important financial decision of your life, namely the purchase or refinancing of a home, the interest rate you pay is absolutely paramount…but it is equally important that the person you deal with is educated and professional in securing the proper mortgage terms that go with that rate.

Some simple points to consider…

Your Banker represents the “retail side” of the mortgage industry and your DLC Mortgage Expert represents you to the wholesale side of the mortgage industry. Our immediate objective at all times, is to secure the absolute best interest rate commanded by the merits and strengths of our qualified applicants.

Your Banker may be well “rehearsed” when it comes to selling their employer’s products, where as your DLC Mortgage Expert is an accomplished and professional advisor when it comes to all Lender’s products.

While your particular Banker only offers you limited product choice starting at their higher posted rates, you are benefiting from the fact DLC as a whole, sends 100’s of millions in mortgage business each year to Canada’s foremost and largest Mortgage Lenders and Brand Name schedule “A” Banks. As a result, our clients benefit

from the Trust, Confidence and Security.

They are getting the absolute best rates of the day and products to match every one of their mortgage needs.

The math of your interest rate NEVER lies and is undeniably the key factor in whether you will continue to over pay an excessive amount of interest during the life of your mortgage OR possibly worse never realizing the true buying power of your hard earned dollars. As of February 10, 2009, upon getting my final proof into the SP for this special feature article my 3 year fixed discounted Broker rate was 3.75%**, a full 2% off the banks posted 3 year fixed rate of 5.75%. To illustrate this further, lets assume a $300,000 mortgage amortized over 35 years and compare the difference in interest rates and you decide which is worse: Your Bank’s quote >> $300,000 @ 5.75% amortized over 35 years = $1647.05 or, DLC’s Broker quote > $300,000 @ 3.75% amortized over 35 years = $1278.60 The difference of $1647.05 - $1278.60 = $368.45 of pure interest charge each and every month for 3 years or a total of 36 payments = $13,264.20. Now assuming we are all in agreement that your home is quite possibly the biggest investment you will ever make, is it worse knowing that you are over paying every month by $368.45 OR that your hard earned dollars could have actually commanded a better investment or in this case perhaps a better home. Case in point, if you were mentally and financially prepared to accept your Banks offer and pay the $1647.05 every month look how much more home you could afford if we now match the DLC Broker 3 year fixed rate of 3.75% to a mortgage amount that gives you approximately the same payment of $1647.05…and that figure comes in at approximately $385,000 @ 3.75% amortized over 35 years = $1640.86.

So again you have to ask yourself is it worse knowing that $13,264.20 would have looked a heck of lot better say in your RRSP or that the interest rate is keeping

you from truly owning the house you’ve always wanted and deserved.

Today there are mortgage products and simple techniques available that your own Banker is unaware of or simply unable to make available to you that… pay-off your mortgage faster pay less interest free up more income Be rest assured we at DLC not only make it our top priority to get you into the best mortgage product at the most competitive rates available, but we will also show you how to get out. As your Mortgage Expert, not only do we understand everything that there is to know about mortgages - we will explain it in plain English. At Dominion Lending Centres, we are completely dedicated to helping you finance whatever your mortgage and lending needs might be… good credit or bruised credit self-employed or 100% commission applicants personal home or rental property a second home or vacation property commercial buildings or raw land 2nd mortgages or secured lines of credit COMING SOON – LEASING of vehicles, heavy equipment and office equipment We will answer all of your questions explain to you everything you really need to know, ensuring that you are entirely satisfied. Call me today or visit my web site.

Maureen Tkachuk Mortgage Associate Dominion Lending Centres cell (780) 808-6183 www.maureentkachuk.ca mtkachuk@dominionlending.ca

Making dreams come true.

1-800-267-WISH

www.childrenswish.ca

PIPELINE NEWS April 2009

C5

Better stuf¿ng box & friendly service drive Brightling’s early success worked in quality control. Both men saw a need to

By Geoff Lee service local companies better that multi-nationals Lloydminster –When it comes to oilfield could. stuffing boxes, Brightling Equipment Ltd. in “It wasn’t that we saw a product niche but a Lloydminster has built a better mouse trap that service niche,” said Hall. “It seemed people weren’t is catching on with heavy oil customers in a serving this area anymore. When we started we had cost-conscious market. no customers at all. We walked out of the door and Stuffing boxes are designed to keep oil from said this is what we wanted to do and we’ve built spilling on the ground by redirecting produced ourselves up from ground one.” fluid pumped from downhole to the tank, but Brightling currently has grown to eight emthese devices are prone to frequent and costly ployees who work out of a spacious shop to rebuild, breakdowns. repair all makes of rotating stuffing boxes and asBrightling’s stuffing box is called the BEL semble Brightling products.

FS and features an evolutionary floating seal “For the first year, we were strictly a service comthat company founder Craig Hall designed for pany. That was kind of a fact-finding year,” said Hall. longer life.

Ainsley Karolat is the focal point of this photo with her avail“The last two years, we’ve grown exponentially.”

“The stuffing box is the first thing to go,” able co-workers Arlee Olson, Clarke Code, co-owner Craig Even during the current economic slowdown said Hall. “Our challenge was to come up with Hall and Codey Saville.

Photo by Geoff Lee Hall says business is good. “One of our biggest issomething that would last longer. If you can the sues is trying to keep up with demand. The market taking products customers are doing workovers for as double the life, you save yourself the down time, the workover costs and the cost of service crews to clean frequently as every two weeks and stretching that out is strong.

“We are saving down time, so anybody who is cost up spills on the ground. There is a tremendous cost hav- to a year.”

Hall says his inspiration for the product was a pro- conscious knows they have to go with value. Our sales ing the stuffing box fail.

“Our issue was to improve on the run time and we gressive process based on his analysis of what causes the have been fantastic.”

Brightling reports they have rebuilt and repaired also wanted something that would fit on existing equip- failure of so many stuffing boxes and he says more prodmore than 3,000 existing stuffing boxes and sold more ment. We didn’t want to sell a new drivehead every time ucts are in the works.

Hall also designed and marketed a Brightling 300 of their own designs since startup. They have also we put a new stuffing box in.

“We wanted to be able to sell something that would drivehead with a hydraulically operated gearbox called rebuilt a couple of hundred wellhead drives and installed fit onto equipment that was already out there. There are a HOG that is compatible with the company’s BEL FS dozens of their own HOGS in the field.

“We are a service-based company,” said Hall. “We stuffing box. thousands of these things out in the field.”

“It’s very quiet and very small,” said Hall. “It’s what don’t just fix the problem and leave it at that. We try to Hall’s leading solution was to design a stuffing box with his floating Teflon seal that eliminates upward or turns the progressive cavity pump. It has a smaller mo- find out why there is a problem. That’s where we are getdownward pressure on the seal and reduces wear and tor that can go very fast. It has a small footprint and it’s ting our business from.

“We are trying to grow by dealing with customers very quiet.” tear.

Hall formed the company three years ago and was on a personal level. As we deal with clients one-on-one, “The advantage is that it lasts longer and saves downtime,” said Hall who tweaked other parts as well. joined shortly after by his business partner Daryl Lypkie we spread like wildfire. Our company grows as people talk to each other and say ‘Brightling solved my prob“Everybody wants something that works and is cost whom he worked with at Weatherford for many years.

Hall was an engineering manager and Lypkie lem’. effective. We’ve had absolutely great feedback. We’re

C6

PIPELINE NEWS April 2009

Lloyd’s heavy crude bonspiel as slick as it ought to be

By Geoff Lee

presented Oilman of the Year, Frank Jezowski and wife Claudette with gifts.

Jewoski threw the first ceremonial rock as ice maker Brian McLasky rallied his crew to restore the ice to competition form.

“I think the ice is good so far but it’s starting to get a little dirty,” he said after a whole day. “You try to clean it as good as yyou can and not p put too much g

pebble on it and keep it nice and clean.”

Asked if he picked up any ice maintenance tips from watching the Briar, McLasky said, “I’ve had Lloydminster –The ice at the Lloydminster curlthose guys curl here before. I have made ice for a lot ing rink was in Briar shape for the start of the 42nd of those guys. They have given me tips when they annual Heavy Crude Open Bonspiel but the curling were here. was vintage oilmen – as it should be.

“Maybe it was in Briar shape this morning but This is an event where fun trumps competition not now.” except for the diehards in the A-event such as deOrganizers had hoped for 96 fending champion Weathererteams but settled for 80 which left te ford BBW with tournament nt Stayner saying he “was a little disapSt chair John Stayner aboard. pointed.” po “We’re doing alright. We’re ’re He attributes the shortfall in reg2-0,” said Stanyer who was ist istration to the economy which has mscheduled to face Monte Armaffected all oilmen’s bonspiels this strong’s Granite Oilfield Sereryear. ye vices’ squad following a break ak “The support from the oil and for the opening ceremonies. gas ga companies and other sponsors has Catch up on how Stayner, er, been be really good though,” he said. mArmstrong and the other comDitto that from Armstrong. “Evpetitors fared in the May edidieryone’s having fun. We have had er tion of Pipeline News. Final repretty good support from all of our pr sults were not available at press ess sponsors,” he said. sp time for this edition.

As for his team’s prospects? “We eld The ceremonies were held got go by our first two games but we play after a full day of curling with th last la year’s winner (Stanyer’s team) in a parade of players and diggour ou next game which will be a little nitaries including Jeff Latos, os, tougher.

We will hang in as long as to er, bonspiel president and Stayner, w can. Where ever we end up, that’s we the master of ceremonies. Th Thee w where we’ll end up.” party was led on to the ice by The bonspiel wrapped up March the Lloyd Pipers.

Ted Tryhuba and Monte Armstrong measure a rock for the closest to the button event.

22 and included a banquet at the Stayner welcomed teams to Photo by Geoff Lee Stockade Convention Centre. the bonspiel and he and Latos

PIPELINE NEWS April 2009

C7

C8

PIPELINE NEWS April 2009

employee charitable campaign

By Geoff Lee Lloydminister – Husky Energy employees and contract staff continue to be a force for good in the community by presenting local agencies with a record contribution of $173,000 raised through the Husky Energy Charitable Campaign.

The total includes $105,779.81 from employees and approximately $86,000 from Husky to match a portion of the contributions.

“There is a huge demand for money from charities,” said Dawn Veltikold Husky community relations officer.

“With the economy the way it is, we are really excited that Husky employees have come on board and have upped their ante. This is the largest amount of employee pledges that we have received from the employee complement.

“It will be a challenge to top this next year,” added Veltikold. Last year, employees raised over $85,000.

Veltikold and Husky facilities technician Kris Stokoe presented cheques to representatives of 10 charities favoured by employees at Husky’s corporate office on Highway 16 on Feb. 25.

“November is our major blitz but we do fundraising all through the year and we do a one-time dispersal of the funds – that’s today,” said Veltikold minutes before the cheque presentation.

Some of other fundraisers during the year are a silent auction during an employee fall BBQ, an office luncheon, a farmer’s market, coins for the campaign and the pledge campaign kickoff in November.

The Charitable Campaign is Husky’s largest fundraiser of the year supported by employees pledging to assist one of 10 agencies through payroll deductions that start on January or by a cheque donation.

“We give it to the charities up front and behind

Representatives from 10 Lloydminster agencies are all smiles after receiving charitable cheques from the Husky Energy Charitable Campaign.

Photo by Geoff Lee

the scenes payroll takes it off employees’ paychecks,” explained Veltikold.

“Employees have the option to choose how they want to distribute the funds. Once we have calculated the percentage of the fund distribution, then we distribute the Husky portion in the same percentage allotment.”

Husky also raises funds for charities each year during the Autumn Leaves Charity Golf Tournament but organizations that benefit from that event are not eligible for funds from the employee Charitable Campaign.

“We try to make sure that we are not double dipping our charities so we can support a broader

group of charities,” said Veltikold.

Prior to involving employees in the selection and donation to local charities seven or eight years ago, Husky contributed only to the United Way. “Once we started getting more employee involvement, then we opened it up to a lot of agencies that are very worthwhile,” said Veltikold. “Now it’s a broad spectrum of agencies ranging from employee wellness to animal welfare and youth groups.

“It’s an employee based campaign and I can’t say enough about the support we receive from out vendors who provide us with items for incentive prize draws. Our vendors have been phenomenal to help us with the charity.” ɸ Page C9

24 Hour Service

ATTENTION Are boggy leases or roads keeping you from your service work?

Oilwell Servicing Ltd.

MATTING for SALE or LEASE

30 years 1978 - 2008

Description: 4 section 2” x 6” rough spruce construction placed sideways on ends (6” deep) (8’ x 40’) FLAT (no hinges) (8’ x 50’) FLAT (no hinges) (4’ x 12’) Hinged Matting (hinge in centre)

• 3 Free Standing Rigs Available • 1 Mobile Double Double • 2 Mobile Fr ree Standing Single Doubles

Specializing in...

• Workovers • Completions • Abandonments • Pump to Surface Lloydminster

(306) 825-7914 Call Darryl at 1 (780) 808-1829

Darryl Garrison Cell (306) 821-2815

PIPELINE NEWS April 2009

C9

A force for good ɺ Page C8 The first cheque for $5,325.84 went to the Bea Fisher Foundation for home improvements on their existing shelter for persons with developmental disabilities. Big Brothers/Sisters of Lloydminster were presented with $13,407.48 for after school programs.

The Lloydminster and Area Brain Injury Society received $7,536.76 for program enhancements while the Thorpe Recovery Centre was presented with a benefit cheque of $12,250.73 for a new facility.

A cheque for $7589.53 went to the Lloydminster Rescue Squad to purchase hydraulic cutters and $8,533.83 was given the MS Society of Lloydminster & Battle River for multiple sclerosis couples therapy.

The Lloydminster Handivan Society received $15,782.22 toward the purchase of a new van and the Lloydminster Region Health Foundation will use its $28,625.95 cheque for surgical scope and local mammography.

A cheque for $30,713.90 will help the Lloydminster and District SPCA find a new animal shelter facility. The Lloydminster and District United Way was handed a cheque for $44,013.57 to cover approved projects for 16 local agencies.

Husky’s Dawn Veltikold and Kris Stokoe hold up a cheque for MS reps Teresa Adams, left, and Johanna Green.

P.O. BOX 224 MARWAYNE, AB T0B 2X0

• • • • • • • • • • • It was smiles all around for SPCA’s Trevor Ollen who shakes hands for a cheque presented by Husky’s Dawn Veltikold. Beside Trevor is SPCA rep Kelly Efford and Husky co-presenter Kris Stokoe.

SUSPENDED WELL COMPLIANCE INSPECTIONS GAS MIGRATION TESTING VENT FLOW MONITORING REMOTE WELLSITE INSPECTIONS STABILIZED SHUT-IN PRESSURE MONITORING GAS SAMPLE COLLECTION SURFACE CASING VENT FLOW TESTING CHROMATOGRAPHIC ANALYSIS CUT/CAPPED WELL CASING LOCATING PRE-ACQUISITION WELL SITE INSPECTIONS IN SITU SOIL REMEDIATION OFFICE: 780.847.2567 | FAX: 780.847.3277 KERRY: 780.205.3495 | RYAN: 403.588.2597 DOULLSITE@TELUS.NET | WWW.DOULLSITE.COM

C10

PIPELINE NEWS April 2009

Young families energize

By Geoff Lee Macklin – If you are driving one of the 5,000 vehicles a day that approach the town of Macklin, Saskatchewan ,from the intersection of highways 14 and 31, Macklin Mayor Pat Doetzel, at the town ofÀce, works for Astec Fire and Safety in nearby Provost, Alberta.

Photo by Geoff Lee

think of the asphalt as a welcome mat.

Macklin is a friendly community of 1,634 people that uses it charm to host a wide variety of large and unusual events like the World Bunnock Championship and the Prairie Egg Gathering of Boler trailer enthusiasts who camp at nearby Macklin Lake Regional Park.

Newcomers to Macklin over the past few years have tended to be young people drawn by plentiful and wellpaying jobs in the oil and gas industry that has driven growth.

Nexen Energy, Murphy Oil and Husky Energy are some the major operators in the area.

Macklin has become an active service and supply centre strategically located three kilometers east of the Alberta border and 110 km south of Lloydminster.

Kim Gartner, the town’s administrator, says Macklin is putting its best foot forward to keep the economic ball rolling in tougher times and attract new visitors, businesses and entrepreneurs.

“Our number one priority is to have our local people invest in the community,” said Gartner. “If you can keep doing that, it provides an atmosphere where more young people want to be here.”

Gartner says young investors are backing the construction of a new car wash under construction.

A new Rona Building Centre and a motor inn are scheduled for development this year on a 43-acre commercial site the town purchased on Hwy. 14.

The town has also purchased land for 34 new residential lots and about 16 of those will be serviced this year in anticipation of an economic rebound.

“We still have inquiries about lots but it’s not as busy as the last couple of years,” said Gartner. “I think there is enough activity going on. It’s slowing down, but we hope it doesn’t last too long.”

A $2 million gymnasium renovation for the Macklin K-12 school is underway and there are plans for a daycare, an outdoor swimming pool, an historic walk-

ing trail and downtown beautification and repaving projects.

“The oilpatch has certainly allowed us to move ahead and build a new hockey rink, curling rink and a community hall, “said Gartner.

“The golf course has seen a lot of upgrades including a new clubhouse.

We’ve see a new health facility go in. This is all in the past 10 years. It’s been quick and successful and the oilpatch has been a big part of it.”

The construction and upgrading of Enbridge’s pipelines beginning in 1995, prompted contractors Bannister Majestic Inc. to fund the expansion of the campground to accommodate annual summer work crews.

“We’ve had different pipelines go in at different times,” said Gartner.

“The park will fill up completely with pipeline guys. They are always willing to help make it better.”

The park boasts 135 serviced sites today and has made Macklin a summer destination town.

The bunnock championship draws 4,000 visitors a year to town.

Economic development ofÀcer, Gary Thompson at the site for new commercial development on Highway 31.

Photo by Geoff Lee

FULL FLUSHBY & PRESSURE SERVICES BODY VACS, STEAMER/PRESSURE WASHER SERVICES SALTWATER DISPOSAL PUMPING SERVICES

24 HOUR SERVICE Ken McConnell Owner/Operator 24 HR Dispatch: 780-205-9001 Mike #: 403*11*29001 Fax: 306-397-2697 Box 238 Edam, SK rackenent@hotmail.com

PIPELINE NEWS April 2009

C11

Macklin’s character in the oilpatch During last year’s gathering of Boler trailer owners, the Chamber of Commerce rolled out the red carpet with a pancake breakfast. The Macklin Wildlife Federation ran a trout derby at the lake.

Macklin will also welcome back yet another pipeline crew this summer for landscaping work on Enbridge’s Alberta Clipper pipeline 10 km south of town.

“There isn’t even a doubt the oilpatch has had a big responsibility for our community and the success of it,” said Mayor Pat Doetzel who works for Astec Fire and Safety in Provost, Alberta.

“As the oilfield has been successful, so has Macklin.

“Young people have seen there is an opportunity out there and they weren’t afraid to invest in Macklin and established themselves here.”

Doetzel says that most of the supply and service companies in Macklin have been around for awhile “so they can weather some of the effects that the industry is going through right now.”

The same can’t be said for the town’s infrastructure that was designed for a community of 1,000 to 1,200 people. A water treatment plant was built in 2007 for $2.3 million and a costly new lagoon system and water mains are on the to-do list.

Gartner says Macklin will receive $140,000 of infrastructure funding from Saskatchewan’s Ready for Growth initiative to replace old water lines.

Other projects on the civic wish list like repaving the old part of town will cost taxpayers.

“It’s getting to the point where people are saying it’s costing a lot of money to here live but they are still choosing to do that,” said Doetzel.

Economic development officer Gary Thompson helped to celebrate a mortgage - burning party last year for the arena built in 1997.

“We’re always doing new things,” he said.

“A committee was formed to plan for a new outdoor pool. The cost is $1.6 million and right now they have raised $700,000.

“The whole town is a fantastic place to live.

A lot of young people stay here and build houses and grow families.”

With about 450 students, Macklin has the second highest school population in the Living Sky School Division.

“Growth has been predominately due to the oil industry and related industries. It’s been phenomenal for us. It’s been excellent and steady,” said Thompson.

Building permits for construction and housing have risen from $545,000 in 2002 to $4.2 million in 2007 but it could be a different story this year.

“With the downturn, we’ve had a few plans from different businesses put on hold until things get back to a more normal state,” said Thompson.

“We wonder if we should be advertising. The growth has been there and we’ve stayed away from that venue. It always seems like we get more inquiries than we send out feelers for.”

In town it’s unanimous that Saskatchewan is no longer the poor cousin to Alberta’s energy industry and that’s another marketing tool Macklin can use.

“At certain times in the past, I don’t know if Saskatchewan has been that friendly of a province to locate in with the PST and the cost of servicing,” said Gartner. “It’s not as large a detriment anymore.

That tax structure is a lot better and the royalty is a lot better. The PST is a lot lower. It all adds together to create a better environment.”

This life-like image of a young girl helps to slow trafÀc near Macklin’s K-12 school. Weatherford sponsored the portable units.

Photo by Geoff Lee

SETTING T HE STA N D A R D For Single & Multi-Pass Fire Tubes | Natural Draft Burner Applications A Truly CSA B149.3-07 Compliant Preassembled Process Heater Module

Module Assembly Variations Available • Proven Performance • NoX as low as 15PPM • CO’s ranging 0-5PPM • Combustion EFF up to 88% • Noise Emissions from 78 - 84 Decibles

From 100k to 20m btu in: • Tanks • Dehy’s • Saltbath Heaters • Line Heaters

• Treaters • Refridge Units • FWKO’s • Reboilers

CSA compliance is easy with a Kenilworth Combustion Process Heater Module, Packages to fit 100,000 - 20,000,000 BTU.

www.kenilworth.ca

780-744-3974 • Toll Free: 1-866-744-3974 Box 12118 Lloydminster, AB www.kenilworth.ca

issions Reduces Em Increase Safety Performance Proven

C12

PIPELINE NEWS April 2009

Mid¿eld takes steps for slowdown and saftey Macklin –Justin Bast wears two hats on the job in Macklin Saskatchewan.

One is for his role as branch manager of MRCMidfield and the other is when he is called to duty as the fire chief of the Macklin & District Fire Department.

Bast is a former long-term alderman on town council who is taking steps to lessen the impact of the economic slowdown on his operations and protecting jobs and lives in the community where he grew up.

“We’ve slowed down by about 35 per cent,” said Bast. “We haven’t had to lay anyone off. We had a few employees who wanted to be maintenance contractors, so we set them up as contractors. They provide maintenance for hydraulic pump units that are in the field.

“We’ve also worked hard on reducing our inventory to carry more of what we sell and less of what we don’t.”

The Macklin Midfield branch is one of 85 branches in the Midfield Group of Companies and specializes in the sales and service of oilfield supplies such as pipes, valves and fittings.

They also sell and service progressive cavity pump systems and provide field service mechanics for all types of facility work such as pipelines and battery construction and well completion tie-ins.

Midfield opened in Macklin in January, 2006 to tap into the heavy oil market.

“It’s been successful so far,” said Bast. “Most of our business is within a 40 kilometre radius of Macklin for heavy oil clients.

“It was good timing to come in when we did. We are not looking forward to the downturn in our third year of business, but we are committed to being here.

“The maintenance side of the business tends to

stay as busy or grows during slowdowns as companies utilize their customers’ property rather than purchase new.

“We are hoping to grow our service side by adding more field service mechanics in the future but it’s tough to predict with the current state we are in.

“From a community standpoint, there is nothing good that can come from a

Justin Bast, MRC - MidÀeld

slowdown. If people lose their jobs, they spend less and everyone suffers.”

Community and workplace safety got a big boost

in March when the fire department took delivery of a new rescue vehicle.

The purchase was made possible, in part, to a $75,000 donation from Nexen Inc. and a $25,000 donation from Canadian Natural Resources Ltd. during a 2008 fundraising drive.

“The oilfield has always supported us,” said Bast in his role as fire chief. “The oil companies are involved in their communities.”

The new rescue truck can carry seven firefighters to a call and is equipped with a compressed air foam system for extinguishing oilfield fires and fires from vehicle accidents.

“Fires in the oilpatch can occur in tanks or shacks,” said Bast. “There are also a lot of vehicle fires. Now, we can put them out a lot easier.”

Bast grew up in Macklin and got his start in the oilfield service sector in 1992 with BMW Monarch, purchased by Weatherford, before managing the Midfield shop located on the busy commercial strip on Highway 31.

Midfield boasts a 12,500 square foot warehouse that includes $1.4 million of inventory, a service bay and space for pump sales, repairs and maintenance.

Sucker rods, tubing and downhole pumps are some of the most common production products in demand.

Bast says the buzz on the street is that oilpatch activity will pick up in the fourth quarter, but he cautions the spring break up may be tough for everyone.

“Most of the businesses have a lot of owner operators. There are the guys who get hit. They don’t get the hours.

“When it’s slow, we do maintenance on our accounts and catch up on paperwork. It’s also important to pay attention to your customers.

FORT GARRY INDUSTRIES THE TRUCKERS BEST FRIEND • • • • • • •

Intrax Suspension Full Flap packages Michel’s Tarp LED Lights Load/unload lights Dual cranks Powder coated silver wheels • Tow Hooks • Sidewall Vents

HGF Triple Axle • • • • • • • • •

2009 Midland SL3000

Tri Axle End Dump Air Ride ABS Auto Slacks 24.5 White Steel Wheels Sealed Gate Michels Tarp LED Lights Alum Checker Plate on Front & Rear Posts

HGF Super B

2009 Load King 42’ Tri Axle Flat Deck • • • • • •

Air Ride ABS Auto Slacks Sliding Suspension Tow Hook Rear Strobes

• • • • • •

24.5 White Steel Wheels LED Lights Swing Out Lights Full Pick Up Throat Live Roll Prepped Flap Packages

5701 63 Avenue, Lloydminster — Sales • Parts Toll Free 1-800-661-9709 or 1-780-875-9115

PIPELINE NEWS April 2009

C13

Lobby prefers changes to Alberta’s royalty structure Calgary –If Don Herring were at the controls of the Alberta’s energy legislation, he would have reset Alberta’s royalty regime to what it was before Jan. 1, rather than introduce the short-term stimulus announced March 3 to revive drilling.

“Quite frankly what would be a better announcement would be for the Alberta government to seriously look at the competitiveness of their fiscal regime and make adjustments there,” said Herring, who is president of the Canadian Association of Oilwell Drilling Contractors.

The Stelmach government is offering a $200-permetre royalty drilling credit for new conventional oil and gas wells and a maximum five per cent royalty rate for the first year of production on new wells.

The three-point program runs from April 1 to March 31, 2010 and includes a $30 million fund aimed at keeping service rigs busy cleaning up inactive oil and gas well sites.

The energy incentive package follows Alberta’s consultation with representatives from the energy industry and the financial community about the current challenges facing investment and oil and gas activity in Alberta.

CAODC recently downgraded its forecasted drilling activity for 2009 in the wake of low commodity prices and tight credit that small oil companies rely on and had warned of a further downgrade if conditions don’t pick up.

“While we cannot make up for the impact that global financial markets are having on Alberta, we are doing what we can,” said Energy Minister Mel Knight at the news conference in Calgary where the incentive package was announced.

“This short-term incentive program introduces innovative ways to help spur activity in our energy drilling and service sector during this economic downturn.”

The number of wells CAODC expects to be completed in 2009 is projected to be approximately 11,184, compared with the 16,844 wells completed in 2008.

Herring says the province’s announcement “gives us some confidence that we won’t have to decrease the forecast again.

“It doesn’t give us a lot of confidence that we would actually make a positive adjustment but it might keep us from making a negative one.”

Herring thinks the first two elements of the incentive program are good for drilling while the third element will help the service rig industry.

“What they’ve done is recognized the costs of drilling so they are offsetting the costs,” said Herring. “The second element is introducing a five per cent royalty rate.

This is a lower rate than what would have been in place if this program wasn’t there.

“This is all very much a short term issue and investors have to believe that that matters. The government has also said depending upon how the program is used or works or what happens with commodity prices, it may be extended.

“The evidence in the past suggests that you if can ‘come to the party’ and introduce some adjustments temporarily, people will respond positively to them be-

cause there are tied to a fair regime.

“Now what you’re asking them (investors) to do is to come in recognizing that they object to the platform itself. Really, what you are doing is enticing them to the investment circle using a short term stimulus. Some investors will do it and others will say forget it. That’s the risk they take.”

Based on drilling forecasts, the two initiatives could cut $1.5 billion from provincial energy royalties but Herring says “no one knows what the cost of the program is.

“It may not cost them anything if investors don’t react to it. That figure has a huge assumption on take-up.

There may be very little take-up for all we know. If there is no take-up, there is no cost.”

The energy incentive package follows consultation with representatives from the energy industry and the financial community about the current challenges facing investment and oil and gas activity in Alberta.

The province will monitor the impact of the incentive program, and at the end of the year, assess whether it is necessary or appropriate for it to be continued.

We supply storage tank parts: Patent #2362105

“THE QUICKEST WAY AROUND!” www.suretuf.com

• Chimes and Doors • Firetube Throats and Blinds • Envirovault Doors • Stack Pups & Flanges • Cut to fit Floors & Roofs and more • AUTOCAD Drawings and Designs • CNC Plasma & Oxyacetylene Cutting • Custom cutting up to 8” thick • A.P.I. 653 Tank alteration and Repair in yard or field

VERY COMPETITIVE STEEL SALES B31.3 Pressure Piping Alberta and Saskatchewan Q.C. Journeymen B-Pressure Rig Welders

New Distributor for Southern Saskatchew an

COR CER ITIFED

P. eng. Stamped, Patented Design Free standing, zero ground disturbance, Slide in legs and pin together system.

Cuts down on set up time.

Accessories: sting doors, crossover stairs, Geo-textiles, etc.

All types and sizes of liner available. Fire retardant liners & coatings available.

WE WILL BUILD TO SUIT OUR CUSTOMER NEEDS. OILFIELD, MINING, AGRICULTURE - WE DO IT ALL! C.O.R. Certified set up crews are available.

SINCE 1973

www.TSMSupply.com Estevan, SK 306-634-6494 Weyburn, SK 306-842-4604 Melita, MB 204-522-3238 Moosomin, SK 306-435-2969 Oxbow, SK 306-483-2522 Redvers, SK 306-452-3470

Phone: ((780) 780) 8 875-0032 75-0 0032 Fax: (780) 808-2689 Cam’s Cell: (780) 205-8316 Clayton, C.E.T./A.Sc.T./A.P.I.653 Clayton’s Cell: (780) 205-1599

C14

PIPELINE NEWS April 2009

Williston Basin conference Regina –News of a big oil discovery has a way of attracting a large crowd.

More than 1,000 energy professionals, mainly geologists and engineers from Canada and the United States, could be heading to Regina for the 17th Williston Basin Petroleum Conference April 26-28.

The topic of collective interest is the famous Bakken oil play, specifically the subsurface geology and the technology that made the Bakken bonanza possible.

The Bakken formation of the Williston Basin is a success story

of horizontal drilling, fracturing, and completion technologies resulting from the geological analysis of data on the decades-old producing area that has helped to identify uptapped resources.

“The basin is becoming better understood because there is certainly more focus and there’s been more experience with extracting oil from the Bakken,” said Chris Gilboy, event co-director and director of petroleum geology with the Saskatchewan Ministry of Energy and Resources.

Oral presentations, poster displays and

workshops will focus on practical applications of geoscience and engineering technology that help identify what works – and what doesn’t work – in the search for new hydrocarbon accumulations and the development of known pools.

The conference is sponsored by Energy and Resources along with the North Dakota Petroleum m Council and the North h Dakota Department of Mineral Resources.

“We are hoping for about 1,000 people,” said Gilboy. “Last year, in Minot (North Dakota), there were about 1,370 people which was a huge

17th Williston Basin Petroleum Conference & Prospect Expo

April 26 - 28, 2009

Delta Regina and Casino Regina Show Lounge, Regina, SK Canada

For Expo booths, call (306) 787-2577 For Sponsorships, call (306) 787-9104 All other information, call (306) 787-0169 or Email: info@wbpc.ca

increase over previous numbers. With the interest in the Bakken last year, there has been a major increase in attendance.”

In the early years, these conferences were known as the horizontal well workshops that drew about 400 people.

Gilboy says now the emphasis is on anything

ing on an individual level.

The technical sessions are also a value to people.”

Garth Simmons, who works with engineering services at Energy and Resources, is lining up some of the presenters including TriStar Oil and Gas on its operations in the Bakken in near Estevan.

“Their presentation will look at the different lengths of horizontal We are hoping wells that are being tried W for about 1,000 along with fraccing,” said Simmons. people “We do ask our pre- Chris Gilboy, senters to focus on case Event co-director studies rather than on theoretical possibilities. that is helpful in terms It’s really experienceof technology or geosci- based presentations.”

Presentations will ences knowledge to help with exploration and de- also be made by compavelopment of the petro- nies from North Dakota and there will be a series leum industry.

“The conferences of speeches on everyseem to be important be- thing from an overview cause they are good net- on exploration and develworking opportunities,” opment in Saskatchewan he said. “I think that is to a review of shale gas one of the main reasons prospects in southwestwhy they tend to be pret- ern Manitoba.

“This a technical ty well attended.

“There is a lot of shar- conference for geologists,

“

”

engineers and some lands people,” explained Simmons who backs Gilboy’s prediction that attendance will be strong despite the economic slowdown.

“It’s held during spring break up,” he said.

“I don’t think there are many companies busy during that period. One thing about having it in Regina is that it’s easier for the Canadian operators to get to. We tend to get more people from Calgary the years we hold it in Canada.”

Meanwhile, Gilboy added when things are really busy, “a lot of the geologists and engineers don’t have time to go to conferences. It’s not high on their priorities.

“As long as people are not losing their jobs, there is more time available for people to attend to share their knowledge at these events.

“There will be a lot a people coming in from the U.S. and Calgary. The city will benefit from that.”

Register Online at www.wbpc.ca Technical Talks Activity Updates “Hot Plays” Workshops Prospect Expo

PIPELINE NEWS April 2009

C15

Petroleum society votes to merge with new professional body

By Geoff Lee Lloydminster – The Lloydminster chapter of the Petroleum Society of Canada has voted 92 per cent in favour of joining forces with the Society of Professional Engineers (SPE). The vote was cast in March with a 40 per cent voter turnout.

“This gives us a step toward closing that merger,” said Ryan Roen, public relations manager for the Lloydminster Petroleum Heavy Oil Section.

SPE is a professional association with more than 88,000 members worldwide engaged in energy resource development and production.

Roen broke the news of the pending merger at the March luncheon in Lloyminster and explained merger talks have been ongoing for over a year.

“The petroleum society and the SPE have a lot of overlapping objectives in terms of providing their membership and our membership with resource technol-

ogy and advancement,” he said.

“With SPE being a major international organization, it just makes sense that we are moving in a direction to combine with them.”

SPE is a leading resource for technical information related to oil and gas exploration and production and provides services online and through its publications, meetings, and other programs.

Roen advised the luncheon that until all the paperwork is signed the vote means, “it’s basically a name change from the Lloydminster Petroleum Society to SPE.” Roen also explained that existing membership with the Petroleum Society would automatically roll over to the SPE when the merger is official.

“Any current balance we have will remain in Lloydminster to spend on Lloyd activities,” added Roen.

“We will still carry out the same lunch ‘n

learn that’s here and we will also still hold our annual heavy oil symposium. We will be able to leverage SPE knowledge and resources.”

Anyone with submissions for the 16 annual symposium to be held in Lloydminster Sept. 16-17 is asked to contact Mahesh Makkar at Husky Energy at (306) 825-1298.

OILFIELD EQUIPMENT RENTAL • • • •

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

Phone: (780) 875-6604

Ryan Roen from the Lloydminster Petroleum Society.

Lloydminsters Only Locally Owned & Operated Coiled Tubing Specialists

• Supplying the Midwest with new coiled tubing • Parts and accessories for coiled tubing • Quotes on all sizes of coiled tubing

Phone Joe Reck: 780-808-1952 Phone Collin Morris: 780-808-4132 Fax: 780-875-9700 Lloydminster, AB

Fax: (780) 875-6634

C16

PIPELINE NEWS April 2009

Momentum drives Diamond B Transport

By Geoff Lee Lloydminster – Diamond B Transport, based in Lloydminster, is

maintaining good traction in the heavy haul business despite the slippery slope of a down-

ward economy.

“This year for us has been good so far because we have a large contact

Two pilot vehicles guide the delivery of a 4,000 barrel stainless steel tank.

Photo submitted

list of clients. You really need the contacts,” said owner Murray Barnett.

Diamond B specializes in the coordination and transport of oversized and overweight moves – mostly large oilfield tanks – from 400 to 4,000 barrels to clients from Manitoba to British Columbia.

“The slowdown hasn’t hit us, but it’s coming,” said Barnett who hasn’t had to lay off any of his 11 employees, but he has put off buying new equipment until the oilpatch perks ups.

“If we were just in the Lloydminster area, we’d be dead,” he said.

“We are on the road every day. We just haul everywhere.”

The moves are accomplished by brute force with Diamond B’s

fleet of powerful winch and highway tractors and pickers with a six ton, 30-ton and 45-ton lifting capacity.

The fleet includes tri- and tandem axle air ride hydraulic tank trailers, oilfield lowboys and drop deck trailers.

Diamond B also hauls cranes, buildings, treaters and separators which reflect the company slogan, “If it is big n’ ugly we can haul it.”

Barnett has a set of framed photographs in his new office highlighting the biggest move in company history, a 38-foot diameter tank moved from North Battleford to a lease site in Belle Plaine.

“We haul from the tank manufacturer right to the lease site and stand them up,” said Barnett.

The hydraulic trailers can right a 2,500 barrel tank and Diamond B’s picker trucks can set a 1,000 barrel tank in place. A crane is deployed to unload heavier oilfield cargo.

Diamond B hauls on highway and winter roads and has a 48-wheel trailer that can carry up to a 130,000 lb. payload.

Each move is quarterbacked by Barnett or manager Birnie Syrnyk who keep in touch with oil company engineers who design the tanks and batteries and expect cost quotes before committing to the transfer.

The transportation process begins with a series of hauling permits and phone calls to authorities such as power companies, city utilities, railways and the RCMP. “Some of the big moves involve a lot of coordination to set up the move before it happens,” said Barnett. “We

get into places where you have to have the RCMP stop traffic.

“In some places, you have to drive the wrong way to avoid overhead structures like signs. “ Diamond B has seven pilot trucks and company drivers have reported people holding them responsible for being late for their hairdressing appointments.

“We stopped a judge one day and he said he was going to be late for court,” said Barnett with a grin. “When we get power crews lifting lines, everything waits.”

You can recognize a Diamond B convoy by the sight of the company’s white coloured Kenworth trucks and white GMC pickups.

Barnett thinks the oilpatch is in for a slow summer but he expects activity to pick up in the fall. “We will wait and see what the patch brings,” he said.

Diamond B also moves a lot of equipment besides tanks which gives the company a competitive edge.

“We do some of the biggest moves and a lot of stuff that other haulers don’t want to do,” said Barnett.

Barnett has worked in the oilfield hauling business for more than 30 years and launched Diamond B with his wife Echo seven years ago.

“I just decided to work for myself,” he explained. “It was the best decision I made.”

Barnett recently moved his dispatch operations from his home to his shop just west of Lloydminster to establish improved landline communication with his fleet drivers and customers.

PIPELINE NEWS April 2009

C17

Maidstone bonspiel comes and goes with three cheers Maidstone – There were lots of high-fives and superlatives thrown about on the final day of competition at the seventh annual Maidstone Oilmen’s Curling Bonspiel, and deservedly so.

Although only 19 out of a possible 28 teams showed up, everyone, including Bruce Slade on the A-event championship Hurricane Industries Ltd. team, went home with prizes and good memories.

Slade and his team each won a $200 gift certificate from Keranda Industrial

Keeping a watchful eye on the rock are Glen Chambers and Wayne Kykkanen with team 3K Oil Services.

Photo by Geoff Lee

Supplies Ltd. for their 8-2 win over SMK Carson Farms and the right to be asked how they did it.

“Our skip didn’t miss a shot,” explained Slade who admitted he fired a few good stones of his own. “The important thing was the third and the skip didn’t miss anything.

“It wasn’t as big of a tournament that we would have liked, but it was a good tournament. We always have fun at the Maidstone.”

The event was held March 5-8 and included an auction Calcutta, a sponsored breakfast by B & M Coil Tubing from Maidstone, and a banquet and entertainment featuring the comedy of Paul Sveen.

Don Tarasiuk with team Hurricane was the MC for the banquet, and in his words the entire event was “Excellent. It’s a great place to join up and network with a lot of people that work in the oilpatch. The banquet was excellent, the entertainment was good and the food was great, so you can’t beat that.”

Keranda sponsored gift certificates for the top four winners in the A-event while TWB Construction Ltd. did likewise for the B-event and Husky Energy followed suit with the C-pool.

Kudos were also heaped on ice maker Cal Donald for his work in preparing and pebbling the rinks that were in championship form on the final Sunday.

Moments before stepping on to the ice with his Weatherford BMW teammates to take on team 3K Oil Services in the B-finals, Monte Armstrong let it be known he came for the fun.

“It’s always worth coming here. It doesn’t matter how you make out curling.

It’s fun to be here,” he said.

Monte normally skips but because he missed Friday’s game for a family matter, he penciled himself in as a front end sweeper for the finals. It’s a strategy that helped Weatherford down their 3K opponents 5-1 in a game described by Monte’s brother, Mickey.

“Actually, we played pretty steady. It was a clean game,” he reported. “Our competition was an awesome team. That’s the reason why they made it to the B final. We got one in the second and stole three in the third and it went from there.

We just kept it clean from there and they ran out of rocks.” ɸ Page C18

C18

PIPELINE NEWS April 2009

Maidstone holds seventh annual Oilmen’s bonspiel “The other team had a couple of bad breaks,” he said. “We got up 5-0 after four ends but they did come back and make a game out of it. We played five games. It was a really good tournament.”

Among the spectators was Turtleford/Cut Knife MLA Mike Chisholm and his wife Heather who popped in on their way to Regina to catch the start of the A event finals.

“Some years they’ve had more entries but they certainly have had lot of action.

It’s been a really successful weekend for Maidstone,” he said.

“One of my friends, Jim Johnston, is curling in the A finals with the SMK team. I am partner on the Calcutta for that team so I have a monetary interest as well as just taking it in.”

Another person with money on his mind was curling club president Scott Owens who estimated the event would raise about $3,000 to $4,000 to help maintain the three sheets of ice. The club also gets 20 per cent of the Calcutta money pot.

“Other than the low turnout, every aspect of the event was great, “” he said.

“The organizing committee did an excellent job, the draw prize committee did a great job and the ice conditions were fantastic. We had lots of compliments about that.

“The banquet was fantastic and the comedian was good. He appealed to everyone.

“It’s a lot of work to organize. It requires a lot of volunteers. All members of the club stepped up and contributed.

Sponsorships make the happen and the full list of sponsors was included in the program guide.

Team Weatherford’s Mickey Armstrong , his brother Monte and Glen Moore sweep a rock on route to their B-event championship. Photo by Geoff Lee

ɺ Page C17 It’s typical at the Maidstone that a player like Jordi Johner from team Keranda lost his C-event semi final game but still felt he was richer for the experience.

“We were just lucky that we made it this far,” he said just minutes after stepping off the ice. “This is our sixth year. We try to make it a family team. This year, two of our family members couldn’t make it, so we picked up a couple of guys and made it to the C semis. We ended up losing, but I made some money and had some fun.”

Taylor Field who skipped Midwest Truck to a 6-5 win over Amazon Hotshot Service in the C- event final credis the victory to what he said was a lucky start.

MLA Mike Chisholm and his wife Heather check out the action.

PIPELINE NEWS April 2009

C19

Endeavor’s thermal coatings timely in a cost-conscious oilpatch Lloydminster –An ounce of prevention is worth a pound of cure.

Endeavor Machining Solutions is using this philosophy to market its thermal spray coating solutions that can extend the life of oilpatch equipment subjected to abrasive and corrosive wear.

High pressure seals, packing surfaces, rotary drive components and pump components fit the bill for Endeavor coatings in a cost-conscious economy.

“Coatings are a value-added product,” said owner Brad Matthews who started the business in Lloydminster during the boom of 2008.

He is keeping busy in the downturn with customers who he says are “looking for different avenues to save money.

“The phone is ringing more from companies that are re-evaluating how they do business and their products, to look at how far ahead they can be of the competition when the economy picks up, by improving their products now,” said Matthews.

“If you have a part that is relatively inexpensive as opposed to your entire assembly such as a pump which is $1 million and a small part that is $1,000, it makes more sense to protect that part from failure as opposed to having to tear that pump out in six months.”

Endeavor specializes in the thermal application of tungsten carbide and chrome carbide coatings applied by a high-velocity oxygen fuel spray system which creates a strong mechanical bond.

“The main use of tungsten carbide is to create a hard abrasion-resistant surface,” said Matthews.

“The tungsten coating is a very hard wearing surface. This coating is good for any high pressure seal or any type of product that is exposed to abrasive wear.”

Most of the coatings start off in a powder form and are applied at a slow rate in thin layers until the specifications are met.

“Tungsten carbide coating is bonded with about 12,000 psi,” said Matthews. “That means it

could be broken off if hammered but it’s for a seal Matthews has four employees and more than application not for absorbing impact.

15 years of personal experience working with ro“Most of the work we do is with cylindrical tating equipment in different types of pumps in parts but it’s not limited to that. There’s a lot of the oil and gas industry that allows his to offer soflat work as well.” lutions to his customers in the heavy oil sector.

Endeavor uses an aluminum bronze coating “I have found it’s an advantage in this busithat Matthews describes as “as sliding wear coat- ness to understand what a part does and how it ing” that can be used to extend the life of stuffing works,” he said. boxes for positive displacement pumps.

“That gives you a better understanding of how This is applied using a low-velocity combus- it needs to be finished and what kind of tolerances tion powder and combustion wire that is com- it requires. That knowledge helps in the parts lastmonly used to protect a cross head for pumps as it ing longer. I’ve gained a lot of business because of that. ‘slides’ in a casing.

“When a customer feels more comfortable The same process is used to apply a stainless steel coating for corrosion protection and for re- that I understand what his part does and I am asking questions, they realize I can be a benefit to storing worn surfaces of parts.

“The spray and fuse coatings are a metallur- them.

“I am not just a shop that will apply what they gical bond that is similar to welding so they can’t break off,” said Matthews. “They are more of an want. I can actually offer solutions to their problems.” So, it’s been pretty steady and hopefully the impact and wear-resistant coating.

“Coatings will save a customer a lot of money future holds excitement for us.”

Endeavor is beginning to tap into coating for making a part last longer or repairing an existapplications for the agricultural sector and Mating part and making it last longer.”

Endeavor has a machine shop for preparing thews sees blue sky ahead for coatings uses and parts for coatings as well for finishing parts after his own business. the coatings are done.

“Tungsten carbide is now used as the chrome New parts can be manufactured too but as replacement in the aerospace,” he said. “In the Matthews likes to say, “Our philosophy is that we last 10 years it’s come on stronger because of the are a coatings shop first and a machine shop sec- economic value of it to make parts last longer.” ond.

“We do a lot of consulting with a customer who will call and ask me, ‘Can you fix this part?’ or ‘Can you make a part and coat it?’.

“We have all of that happening. Over the past year, we have definitely got more and more calls about fixing parts. We are definitely repairing more than we are manufacturing new.

Endeavor’s machinists will use a cylindrical grinder with high abrasive diamond wheels for grinding the coatings to a shiny finish.

“It’s a very precise machine,” said Matthews.

“We also have a numerically-controlled turning centre for doing multiple parts for preparation and finishing. We have a variety of mechaniJoel Bolton polishes a tungsten carbide coating cal machines for repairs and manufacturing.” on a Moyno pump shaft.

HOME OF THE

8 MINUTE SEMI WASH

RS HO-U NENW 9:00pm -FRI 7:00am

MO 0am - 5:00pm :0 0 1 N U S D N A SAT

We wash everything from cars to B trains, all in less than 8 minutes!

High volume, low pressure heavy mud removal and under carriage wash HWY 16 WEST OF LLOYDMINSTER AT RANGE ROAD 14 The shiny top part of this centrifugal pump shaft held by Endeavor owner, Brad Matthews, has a tungsten carbide coating.

Photo by Geoff Lee

(780)

874-WASH (9274) WWW.TCTW.CA

C20

PIPELINE NEWS April 2009

Natural gas power plant site decision due

At a Feb. 25 open house at the North Battleford Don Ross Centre, Harjit Singh Bajwa, a mechanical engineer with SaskPower, displayed a map highlighting three areas short listed as favourable sites for the construction of a gas-powered power plant in the North Battleford area.

Photo by Jayne Foster

By Jayne Foster Freelance Reporter North Battleford - SaskPower is looking at a serious gap growing between expected demand for power and what its aging facilities can deliver.

With up to 10 power generating sites to be retired over the next two decades, SaskPower is looking to fill the gap with a mix of power producing options.

Amidst the mix is a plan to build a natural gas powered three-turbine power plant in the North Battleford area. There is also a two-turbine plant going in near Kerrobert.

When they fire up the two plants, in 2009 and 2010 respectively, SaskPower’s capacity should reach approximately 3,800 megawatts (MW), meeting expected demands for that point in time. But demands of 5,200 MW or more are projected over the following 20 years.

SaskPower already has four natural gas powered stations. This type of electricity generation is typically favoured for meeting peak loads, as the aero derivative turbines can be turned on and off quickly to meet demand for electricity at peak times – such as hotter periods in the summer, or colder periods in the winter.

AGI Storage Tanks ONE OF CANADA’S LEADING MANUFACTURERS OF STORAGE TANKS

Above Ground Storage Tanks: Meet All Environmental Regulations Easy to Install & Move Affordable Built to Custom or Standard Specifications • We build ULC, UL, Flameshield, API-650, 620, 12F • 7–2,500 bbl • 2,273–200,000 L Horizontal Contained

• 2,273–110,000 L Jacketed Underground • 2,273–120,000 L Vacuum Monitored • 1,250–5,000 L Rectangle • 5,000–200,000 L Single Wall Vertical

AGI’s innovative design, custom manufacturing process and comprehensive service combine to make ASTs one of the most cost-effective, efficient means of storage available today.

CALL US TO DISCUSS YOUR NEEDS:

1-800-746-6646 401 Hwy #4, PO Box 879, Biggar, SK S0K 0M0 Tel: (306) 948-5262 Fax: (306) 948-5263 Email: info@envirotank.com Website: www.envirotank.com

OILFIELD SERVICE LTD.

780-875-7939 Fax: 780-875-3699 Box 135 • Lloydmisnter, SK • S9V 0Y1

Dale: 780-205-2774 • Kevin: 780-205-1291

Over 40 years of service

Such turbines also produce up to 50 per cent less carbon dioxide per MW-hour than traditional coal fired plants, says SaskPower, fitting into their plan to replace aging facilities with cleaner ways to generate power.

On Feb. 25 in North Battleford, SaskPower held an open house information session regarding its plan to install approximately 140 MW of natural gas-fired simple cycle turbines in the area.

Simple cycle gas turbines (SCGTs) can be installed fast enough to meet 2010 power needs, says Cheryl Stang, an engineer with SaskPower’s Supply Development department. They are also relatively low cost installations and allow for operating flexibility.

SaskPower has already made the rounds presenting its plans to local urban and rural municipalities and First Nations.

The exact location for the $250 million project is yet to be determined, but three sites have been short listed from five potentials, with a possible decision by the end of March, said Bernie Bolen, Supervisor of Environmental Issues Management. Input from the open house will definitely be used to help make the decision, he said.

The three sites being considered include a location within Parson’s Industrial Park in North Battleford, an area along Highways 16 just outside of the city limits, and a parcel of Poundmaker First Nation property southeast of the city.

The size of property needed, says Elaine Pearse, land officer with SaskPower, is 400 metres by 400 metres, which is about one quarter of a quarter section of land. Ideally, SaskPower will negotiate with the landowner of the desired site to purchase it.

The site decision is to be based on the availability and cost of the fuel supply, connecting to the transmission grid, transmission system efficiency and future transmission system benefits (Up to 11 per cent of the electricity SaskPower generates can be lost during transmission through its 155,000 kilometres of power lines, so the fewer lines, the better.)

The noise factor will also impact the decision.

Wherever it is eventually built, SaskPower intends to follow the industry’s strictest standards, the stringent regulations used in Alberta.

Using silencers on the plant’s exhaust, SaskPower’s goal is to see the typical noise level at the fence line to be about 59 decibels, between that of a passenger car going 60 km per hour at 20 metres (65 decibels) and conversation at one metre (55 decibels).

At the fence line, there will also be a lower frequency noise which will be more “felt” than heard, similar to the “rumble” of a diesel truck passing by 20 metres away.

This largely unheard noise, said Justin Caskey of Patching Associates Acoustical Engineering Ltd., is the kind of frequency that might rattle windows and can affect some individuals adversely without their even being able to hear it. ɸ Page C21

• 18 /30 / 45 Ton Cranes • Winch Truck • Tank Movers • Hi Boy & Low Boys

PIPELINE NEWS April 2009

SaskPower trying to ¿ll the gap

ɺ Page C20 Air and noise studies are to be conducted in the spring, followed by biological field studies, geotechnical studies, and finally construction.

Construction, slated to commence in August 2009 and scheduled to run until October 2010, should employ about 120 to 150 people.

Once the plant is in operation, it will be monitored and controlled remotely and

be visited regularly for maintenance.

SaskPower currently operates three coal-fired power stations, seven hydroelectric stations, four natural gas stations and two wind facilities with an aggregate generating capacity of 3,214 megawatts (MW ).

SaskPower also has purchase agreements with the Meridian Cogeneration Station, Cory Cogeneration Station, SunBridge Wind Power Project and NRGreen

C21

Kerrobert Heat Recovery Project bringing the total available capacity to 3,668 MW. SaskPower also operates two whollyowned subsidiaries — NorthPoint Energy Solutions, which is an electrical energy marketing and trading service, and SaskPower Shand Greenhouse, which grows and distribute seedlings free of charge to schools, communities and individuals for conservation and wildlife habitat projects.

Kim Leipert Ph. 306.825.5355 Cell: 306.821.2880 Fax: 306.825.5356 www.heavyoilfieldtrucks.com peddlerconsignment@sasktel.net 2008 Freightliner accelerater unit Lash and C-tech acclerator unit, 10 ton picker, 3 spools, Full locking rears.

Bernie Bolen, supervisor, Environmental Issues management, SaskPower, talked with City of North Battleford ofÀcials Tim La freniere, city planner, Jim Toye, city manager, and Denis Lavertu, director of business development, at the Feb. 25 open house regarding SaskPower’s plan to construct a new electrical generating site in the area.

Photo by Jayne Foster

1980 Cardwell service rig 69 ft. teliscoping derrick, power tongs, handtools, 2 years left on level four inspection,

1996 Mack flushby 3x5 triplex pump 42 ft. flushby mast, 50,000 lbs., HL-25 pullmaster winch, 12 m3 wabash tank, weight inicator, sea level gauges, slant compatible, cat line winch.

Coil tubing drilling rig package National oil well RT-100 injector reel, mud pump, mud tank, BOP,s, safety trailer, drilling rig trailer, control cab, hydraulic system, catwalk skid, combo building

NEW LOCATION! Corner of Hwy 16 & Upgrader Road, Lloydminster

C22

PIPELINE NEWS April 2009

Avenger Oil Tools focuses on service until sales rebound

Avenger’s Sheldon Copeland is framed by these 177. 8 mm OD M1-X double grip coated packers

by Smith International.

Photo by Geoff Lee

Lloydminster – Everyone at Avenger Oil Tools Ltd., even Mr. Magoo, the company cat, seems to have firm grip on how to drive business with customer service at a time when sales of their completion tools are leaner than normal.

It starts with a firm handshake and a smile from Sheldon Copeland, vice-president of operations in Lloydminster and his Calgarybased executive partners Robert Lawrence, Dale Miller and Tyler Theberge, who came to town to greet major customers and introduce their business to the Pipeline News. Mr. Magoo sport24 HOUR SERVICE

ERNIE HARVEY Owner / Operator

Competitive Rates Light Oilfield Hauling Picker Service

Cell: 306-821-2227 brenkartransfer@gmail.com LOCAL OR LONG DISTANCE HAULING OILFIELD TICKETED

ed a Cheshire grin.

“Every month we have management meetings and we are visiting all of our major customers in the area,” said Lawrence who is the company president and CEO. “We try to stay in close contact with them.

We take great pride in that. We work directly with our customers and we have developed good close relationships. It’s a team.”

Avenger operates as an area partner with Smith International and specializes in the sales, rental and servicing of Smith completion tools including retrievable bridge plugs, permanent bridge plug, composite bridge plugs and drilling motors.

“We have been joint venture partners with Smith since we began three years ago,” said Copeland.

“They are a heck of a good company. We solely run their brand of

tools and product line.

Primarily, everything we run downhole is a Smith product.”

Smith cement retainers are used to relieve hydrostatic pressure during cementing operations.

In Alberta, a permanent bridge plug is “a quick and easy way to abandon a well or isolate a zone” according to Copeland.

Avenger also has its own 9 5/8 inch outer diamter retrievable bridge packer used for isolating a well. Parts are machined by Orion Machining & Manufacturing Inc. in Lloydminster and assembled by Avenger.

“A drilling company can retrieve the bridge plug after they frac or go after a zone of interest,” explained Copeland.

Customers can also chose to use Smith composite plugs made of aluminum and plastic.

“When oil and gas companies frac their

wells, they will run stacking composites to make it easy for them to drill out,” he said.

Avenger currently has work from Fort McMurray to Kindersley with light and heavy oil and gas corporations including Apache, CNRL and Husky that get to know Avenger’s employees during service calls.

“In today’s market, the demand for completion tools is still there but I think quality and service are what makes us strong,” said Copeland who likes the faceto-face contact.

“It’s what you offer on location – your manpower and experience – and being professional.

“We are doing a lot more servicing right now. There’s not as much sales, just more rentals and service.”

At the shop, technicians will tear apart, clean and repair tools and prep rental equipment. ɸ Page C23

ATV / SLED DECKS

IF IT IS BIG N’ UGLY WE CAN HAUL IT!

Adjustable width decks also available

Member of

ISN • LOI

• Easy to load & unload • Reversible ramp for your snowmobile & quad

Box 1602 Lloydminster, AB S9V 1K5

• High quality brushed aluminum requires no maintenance

Cell: (780) 808-9123 Fax: (306) 825-3518 Email: diambtran@msn.com

• Rounded headache rack

Check out our new website www.diamondbtransport.com • The coordinating and instrumentation of oversized/ overweight load moves.

• Winch/highway tractors • 40 wheel combinations • Tri-axel hydraulic tank trailers

• 4 side LED lamps

• Tandom-axel hydraulic tank trailers • Trombones, drop decks, scissor neck trailers • Spreader Bars • Pilot cars • Man baskets • 6 - 30 ton pickers

• Super Clamps Included • Strongest (and longest) ramp system on the market

Diamond B offers our clients a diversity of services and equipment options, working together to deliver products safely.

Re-usable and High Resale Value

Specializing in Overdimension & Overweight

Lloydminster Paint & Supplies Ltd. NEW 45 TON PICKER

Daryl (780) 875-4454 or (780) 871-4109 5628 - 44 Street, Lloydminster, AB

• Our customers testify that we have the best looking deck on the market - and it is built to last • If a customer decides to purchase a different pickup the deck can accommodate either Short & Long Box trucks

PIPELINE NEWS April 2009

C23

Avenger keeps it local and focuses on service ɺ Page C22 “The rental market is a challenge now but I think in Lloydminster there is still going to be ongoing work so we are looking forward to maintaining our market share,” said Lawrence.

“Our equipment can be used in all applications – heavy or light oil and gas. Specifically, to the regional market, we feel we are very strong with the type of products that we have.

“Our joint venture with Smith is with the completion tools and remedial workover tools which are the bread and butter of this local area for packers, bridge plugs, cement retainers – that type of product.”

The decision to manufacture their 9-5/8 inch retrievable bridge plugs also pays dividends when it comes to image and public relations.

“We try to use the local market,” said Lawrence. “We have not manufactured any tools outside Lloydminster.

We use local vendors and machine shops in town to bring some stability to the local market. We like to work with the people in the area.”

Customers likely know that Copeland grew up in Lloydminster and had more than 15 years of the experience in the oil industry when he and his partners launched the company to fill a product and service niche in the local area.

“The response has been good, “said Copeland. “ We’ve been very busy for the last three years. That’s good feed-

back that we have been busy and we’ve become a leader in Lloydminster.

We have solid engineering, solid backing and a great tool line.”

Avenger is also a sponsor of the Lloydminster Bandits of the North Eastern Alberta Junior B Hockey League.

We use local vendors and machine shops...

We like to work with the people in the area.

“

” Serenity - Robert Lawrence

Yoga Studio

Hwy. 17 south around the Corner from Fabutan STRETCH, STRENGTHEN, BALANCE AND BREATHE • Reduce Stress • Gain a sense of peacefulness & well-being • Increase fitness and flexibility • Energize and feel good about yourself

Robert Lawrence and Sheldon Copeland display a 244.5 mm OD retrievable bridge plug machined in Lloydminster by Orion Machining & Manufacturing Inc.

Introducing…

Pressure Services

Dale Foss 780-808-9366 Beginner & Intermediate Tues. & Thurs. 5:15-6:30 pm & 7-8:30 pm Wed. morning 9:30-11:00 am

Daniela Tobler 780-872-2332 Beginner: Mon. 5:30-7:00 pm Intermediate: Wed. 5:30-7:00 pm

2004 Ford F550 4x4 2 compartment tank, 1.2m & 1.8 m , 3000PSI 3

3

Gardner Denver Tri-Plex Pump.

Hydro Testing Inhibitor Chemical Cement Squeezes Flow Rate and Pressure Electronic Digital Display Phone:

780-875-5597

2001 Freightliner 12m Tank, 5000 PSI Gardner Denver Tri-plex Pump.

3

Bruce Slade Blake Fisher

780-205-5329 780-872-9568

Visit us on the web at

www.hurricanefoam.com

“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

C24

PIPELINE NEWS April 2009

Kudu in Macklin hails new pump Macklin – For those who follow the leader, let Kudu Industries Inc. be your guide with their innovative progressive cavity pumps systems with driveheads and power units.

Kudu plans to stay ahead of the curve with some new pump-related products that shop manager Kevin Fischer in Macklin, Saskatchewan wants his heavy oil customers to know about.

The new product arrivals are a Kudu-made PCP well manager, a thermal pump, a top tag system and a new anticorrosive pump rotor coating.

“New products are developed in Calgary and field-tested before going into production,” said Fischer. “We want to be the industry leader and provide solutions for customers.”

The PCP well man-

ager has been developed to adapt to hydraulic power units or electrified wells to maximize the efficiency of well performance.

“It controls the well from damaging your pump,” said Fischer. “It keeps the pump from starving from fluid. It is continually ‘hunting’ for production. It self-monitors the torque and flow and it’s continually making adjustments to maximize production.

Troy Illingworth Cell: (780) 808-3183 Tim Sharp Cell: (780) 871-1276

Office: (780) 847-4666 Fax: (780) 847-4661

Box 82 Marwayne, AB Welders, Service Crews, Lease Mowing & Bobcat Service

Kudu has also launched a new thermal pump called the Vulcain that is suited to thermal processes such as steam assisted gravity drainage.

“It’s a PCP pump but it’s metal-on-metal for thermal applications,” said Fischer. “It’s a high temperature metal-onmetal pump.”

Fischer says Encana has the only thermal operation in his business area but says the product is typical of Kudu’s quest to grow through innovation and helps to attract new customers during the slowdown.

“The day-to-day activity has kept us busy but we are not breaking any records,” he said. “We are watching our costs and keeping our inventory

Kudu shop manager Kevin Fischer is dwarfed by his parts stock these stators and rotors for progressive cavity pumps.

levels low.

“We have adopted the Toyota manufacturing way of thinking – staying lean and getting away from having a lot of inventory. The other factor is innovation.”

Another new Kudu product is an improved top tag system that allows the pump operator to locate the rotor inside the stator without the need for the standard tag system. This means there is no restriction on intake and it decreases the chance of plugging off.

“The tag has only been out for nearly a year but it’s been very popular in the Lloydminster area,” said Fischer. “The tag system improves the pump intake.”

Kudu has also improved its PCP rotors with a new spray coating called Tough Coat that is anti-corrosive and abrasion resistant.

“These rotors are be-

coming popular in fields with a high C02 and H2S environment,” said Fischer who is proud of Kudu’s ever-evolving product and service line.

“Corporately, we have expanded quite a few times and we have added some new stores.

In Macklin, we have expanded our service side,” he said.

“Three years ago we relocated from Provost to Macklin to be more central to our customers. We have always worked on both sides of the border.

Drilling in this area has increased twofold in the past few years.”

The Macklin shop stocks and services a wide array of rotors and stators and its flagship driveheads and power units that complete the PCP system.

“We repair Oryx seals (Kudu brand) and do everything from engine rebuilds to welding,” he said.

ONE COMPLETE JOB • ONE INVOICE • Picker Equipped Service Crews • Oilfield Welding & Fabrication • AutoCAD Drawings & Design • Enviro & Project Consulting • In House Rentals • G-55/S01 Containments • Tank Alteration & Repair • Tank Moving Cradles • Pickers up to 60 Tons • Steel Sales • Bobcats/Backhoes/Trackhoes/Gravel Trucks c/w Pups or Wagons • Hot Taps & A.P.I. 653 Tank QC • New Wellsite Completions/Re-completes • Wellsite Abandonment & Reclamation • Water Injection Packages • Safety C.O.R. • Journeyman Pipefitter • Journeyman Carpenter • Alberta & Saskatchewan B31.3 QC Programs • Certified A.P.I. 653 Tank Inspector

C.O.R.

OILFIELD

CONSULTING & CONSTRUCTION

SERVICE LTD.

(780) 808-2272

Fax: Clayton, C.E.T. Cell: Ken, C.E.T. Cell: Johnny Cell:

(780) 808-2273 (780) 205-1599 (780) 205-1598 (780) 205-4090

P.O. Box 1155, Lloydminster, AB T9V 1G1 Email: csoil@mwwireless.ca Clayton “C” Gessner, C.E.T./A.Sc.T. /A.P.I.653 Manager/Owner

PIPELINE NEWS April 2009

C25

Imperial pilot testing a new oilsands recovery process in Cold Lake

This photo shows Imperial’s Mahkese steamgeneration, cogeneration and bitumen processing plant in Cold Lake.

Photo submitted

posits of the Clearwater formation.

The pilot is also a way for Imperial to determine the best recovery processes for its yet to be developed oilsands deposits near Fort McMurray.

At the Cold Lake site, Imperial uses its patented cyclic steam stimulation (CSS) to produce approximately 150,000 barrels of bitumen a day from what is the largest in-situ oilsands operation in the world.

Imperial also patented steam-assisted gravity drainage and has begun the long-term test of a derivative process known as solvent-assisted SAGD (SA-SAGD) using a natural gas condensate.

“What this pilot is about is ultimately assessing the long-term potential of conventional SAGD and SA-SAGD for new reservoir areas at Cold Lake and also in the Athabasca deposits near Fort McMurray,” said Pius Rolheiser, an Imperial spokesman.

The new pilot project is focused on assessing the resource recovery performance of SA-SAGD. “This is not about finding an alternative to the CSS process we use at Cold Lake,” said Rolheiser.

“This is about finding the best process for the por-

tions of the reservoir that we believe might be more amenable to this type of production.”

Imperial uses CSS at Cold Lake and not SAGD that it patented in 1982 because SAGD would not be an effective recovery method for most the reservoir.

“This is because of reservoir conditions and how consolidated the reservoir is,” said Rolheiser. “We recognized there may be parts of the reservoir that might be amenable to recovery with SAGD as well as reservoirs in the Athabasca formation.”

CSS, however, is not a one size fits all technology either for some undeveloped portions of the Cold Lake oilsands with top gas and bottom water in the formation.

Rolheiser says the SA-SAGD pilot will operate for a couple of years “until we get fairly definitive data.”

Imperial has increased bitumen recovery from 13 per cent to more than 30 per cent in the past 20 years through continued research and technology development.

ɸ Page C26

WORKING FOR OUR CUSTOMERS

40242917•03/27/09

Cold Lake – Imperial Oil has launched a pilot project at its Cold Lake oilsands operations to test a new way to recover bitumen from undeveloped de-

* / Ê 7 -/Ê Ê EÊ - Ê ",*", / "

www.capitalwestfinance.com BRUCE PRISTIE H

O

L

D

I

N

G

OUR SOLUTIONS:

S

Backhoe – Gravel Truck & Water Truck Services

Bruce Pristie Owner/Operator

306.774.4246 306.773.0325

COR Certificate of Recognition

SAFETY & SERVICE GUARANTEED

40242868•03/06/09

Box 952 Swift Current, SK S9H 3W8

bpristie@sasktel.net

General Freight Local & Long Distance Hauling USA/CANADA *Hot Shot Available*

UÊ Ê+1 /9Ê*," -- " Ê- ,6

UÊ "6 / 6 Ê +1 * /Ê Ê-" 1/ " UÊ 8 Ê 1-/" < Ê* 9 /Ê*," , UÊ " * / / 6 Ê, / -Ê Ê/ , -Ê"° ° ° UÊ , / 6 Ê / , / 6 Ê-" 1/ " -Ê/"Ê Ê UÊ, ]Ê, / Ê " 6 ,- " -ÊEÊ - UÊ Ê ",Ê Ê/9* -Ê Ê Ê" Ê +1 * / UÊ-" 1/ " -Ê ",Ê --Ê/ Ê* , /Ê , /-

SASKATCHEWAN (306)477-4811

Ph: (306)773-6324 Fax: (306)778-6712 Box 1734 Swift Current, SK S9H 4G6 cbtrucking@sasktel.net www.cbtrucking.net 40265759•10/10/08

Transportation and Logistics Rig Transportation Services Pipe Storage Facility 3297 North Service Road W. Swift Current, SK. S9H 4G5 40229221•09/05/08

Direct: 306.773.1660 Toll Free: 888.221.1022 Fax: 306.773.1660 rheitt@flintenergy.com

ALL CREDIT & FINANCING ENQUIRIES WELCOME

VISIT OUR WEBSITE @www.capitalwestfinance.com “PROVIDING YOUR FINANCIAL ADVANTAGE” HEAD OFFICE: 2-2510 Jasper Ave, Saskatoon, SK. 877-477-4815 CAPITAL WEST_ST_4207

C26

PIPELINE NEWS April 2009

A new recovery process being tried out Éş Page C25 â&#x20AC;&#x153;Through this pilot, we will be assessing the recovery potential which we can compare with conventional SAGD well pairs,â&#x20AC;? said Rolheiser. â&#x20AC;&#x153;Basically the SAGD process is working with a pair of horizontal wells, one above the other. The top well injects steam. The bottom well, after a period of time, is used to produce the bitumen and the water that has been condensed from the injected steam.

â&#x20AC;&#x153;What the SASAGD process does, is add a percentage of hydrocarbon solvent to the steam to see if that would be more effective and efficient in recovering bitumen.â&#x20AC;?

The pilot project has been set up in the southwestern part of the Cold Lake property near Imperialâ&#x20AC;&#x2122;s Mahkeses steam-generation, cogeneration and bitumen-processing plant.

The project site includes a new well pad and called for the drilling of two horizontal

well pairs. Imperial also drilled a number of observation wells around the well pairs. The facilities are tied into the Mahkeses operations. â&#x20AC;&#x153;By tying it in, we can bring steam generated from the Mahkeses plant to the pilot plant and then we can send the bitumen back to the plant,â&#x20AC;? said Rolheiser. â&#x20AC;&#x153;Because we have existing facilities to generate steam and process bitumen, the main facilities to be built were the wells.â&#x20AC;?

Imperialâ&#x20AC;&#x2122;s Cold Lake operation uses multi-well pads to minimize surface disturbance and to access the largest area of underground reservoir.

Photo submitted

5IF $PNNJUNFOU $POUJOVFT

Calgary 403.263.8055 40242913â&#x20AC;˘04/03/09

Regina 306.775.1814

Unity 306.228.4366

Get one day ENFORM Fall Protection Training using our new trailer-mounted simulator. Let us bring the training to you!

www.greatplainscollege.ca

1â&#x20AC;˘888â&#x20AC;˘ETCâ&#x20AC;˘7972

Biggar â&#x20AC;˘ Gravelbourg â&#x20AC;˘ Kindersley â&#x20AC;˘ Maple Creek â&#x20AC;˘ Macklin Outlook â&#x20AC;˘ Rosetown â&#x20AC;˘ Shaunavon â&#x20AC;˘ Swift Current â&#x20AC;˘ Warman

SK Pipeline_1dayFallProtection_April_09.indd 1

3/19/2009 3:27:52 PM

â&#x20AC;&#x153;Donâ&#x20AC;&#x2122;t rush into marriage!â&#x20AC;?

does not mean you wait for blessed ever to propose! Propose!

9

w w w. c a l t e c h s u r v e y s . c o m

FALL PROTECTION COURSES

200

Caltech Surveys is fully equipped to take on your well site and pipeline projects, large or small, anywhere in Alberta or Saskatchewan. You can count on us to respond quickly and get your projects completed on time and on budget. From project planning and KPNP[HS THWWPUN [V Ă&#x201E;LSK ZJV\[PUN Z\Y]L`PUN HUK WSHU preparation, Caltechâ&#x20AC;&#x2122;s commitment to quality, service and value continues...

(780) 875-0203 LloydMall Lloydminster

PIPELINE NEWS April 2009

C27

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

Aluminum Tankers, Backhoes, Boilers, Braking Systems, Casing Elevators, Casing Scrapers, Casing Slips, Cement & Acid Equipment, Cement Bulk Trailers, Cement Mixers, Units, ntt M i er ix ers, s,, Cement Cem men e t Pumps, Puump m s, s, Cement Cem emen entt Storage, en Stor St orag or ag ge, e, Centrifugal Cen C ntr trif ifug uggal Pump, Pum P um mp, p, Centrifugal Cen C entr en trif tr ifug if uggal Pumps, Pum mps p , Chemical Chem Ch emic em iccall Pumps, Pum P umps um p , Choke ps Chok Ch o e Manifolds, ok M ni Ma nifo fold fo ld ds, s, Closing Clo l Coiled Tubing U Unit Parts, Coiled Tubing Units, Control Systems, Trucks, Cranes, Crown Blocks, Traveling Blocks, Dehydrators, Witch, nit P arts ar t , Co oil iled led ed T ubing ubi ub ing Un U nit its, s C Co ontrol ontr on o Sy ol ystem ys teems, ms Cr Cranee Trucks k , Cr ks Cran anes nes, Cr Crow own Bl B ockkss, Tr T rav avel elin lingg Bl Bloc occkkss, De D hyydr drat ator orrs, s, Ditch D Double Drum Workover Work rkov kov over er Rigs, Ri Rig igs, Double igs Dou oubl oubl blee Phase, Phas Ph asee, Double as Dou oubl oubl blee Studded Stud St udd dded ded Adaptors, Adap Ad apto ap pto tors rs, Dozers, rs Doze Doze Do zerrs rs Drawworks rs, Draw Draw Dr awwo work rks ks & Substructures, Subs Subs Su bsttr truc truc ucttu ture ture ress, Drift Dri rift ift Indicators, Ind ndi dic icator icat attor orss, Drill Dri rill ill Collar Col oll lla la Elevators, lar Drill Collar Slips, ps, Drill Collars, Drill Pipe, Drill Pipe Elevators, Drill Pipe Elevators Slips Combinations, Drill Pipe Spinners, Drilling Choke Cho Control Systems, Drilling Components, Drilling Rigs, Dual Drilling Control Consoles, Duplex Pumps, Electric Motor Drive, Farm Tractors Tanks, ng Compon onnen ents ent ts, Dr ts, D illi il ling ngg R igs, igs ig s, D Du uuaal Dr rillli lingg C ling Con ntr trol trol ol C onnso sole sol less,, D les, upleex Pu up P ump ps, s, E l ct le ctri ric Mo M Moto oto tor Dr tor D riv ivee, e, F arm ar rm Tr T Trac raaccto torrs , Fiberglass Fiberg Flat Bottom Junk Flatbed and Lowboys, Mud Cleaners, Front End Loaders, Gas Processing Plants, Gate Valves Blowout nk Mill, F latb lat tbed aan nd L owbo ow b ys, Fluid bo Fl / Mu M ud C leea eane ners rss, Fr F ronnt En E dL oad aderrs, Ga as P roocessin ing Pl lant ants, ts, Ga G ate te V aallve ves ffor ves or B lowout Preventers, Gauges, Gloves, Pumps, Glycol Pumps, Safety Valves, Handling Tools, Hard Hats, Heater Treaters, High Pressure Hoses, High Pressure s, Glycoll P umps ps, Gl G yccol P Pum mpss, H2S S Sa afe fety yV alvees, H alve an ndl dlin lin i gT oolls, s, H ard H ats ts, He H ater T at reaat re aterss,, H ig gh P resssur surree H oses, Hig Pump Skids, High High Pressure Valves Fittings, Highway Tractors, Hydraulic AmpliÀ ers, Hydraulic Casing Tongs, Hydraulic gh Pressure Pressur urre Pump P mp Pu p Trailer, T Tra rail ra iller iler er,, Hi H gh P gh ressur urre Va V lves & Fit lves lv F itti it t nggs, H ig ghw hway ay T r ctors,, H ra ydraaul ydra yd ulicc A ulic Amp mp pliiÀer ers ss,, H ydrraaul ydr yd ulic C asing Tongs as Drilling Chokes, Independent Rotary Drive Skids, Laydown Equipment, Laydown mounted, Liquid Tanks, Mandrels Sleeves, Manifold s Independe ntt R otary D rive S kids Layd down Equip i ment Layd down truck mounted d Liq i uid i Tank ks Mandrel ls & Sleeves Skids, Manual Tongs and Casing, Metal Tanks, Motors, Mousehole / Rathole, Mud Motors, Mud Pumps, Nitrogen / Cryogenic Equipment, Off-Road Tractors, Pipe Bins / Racks / Material Storage, Pipe Wrenches, Power Swivels, Production Casing, Production Pipe, Production Rods, Production Tubing, Propane Tanks, Pulling Units, Pump Trucks / Trailers, Pumpjacks, Pumps & Pump Skids, Pup Joints, Quintiplex Pumps, Rags, ReÀnery Equipment, Releasing and Circulating Overshot, Reverse Circulation Junk Baskets, Rig elevators, Road Graders, Roller Reamers, Rotary Slips for Drill Pipe, Rotary Tables & Kellys, Safety Clamps, SCR Houses, SCR Power, Single Axle Roustabout, Single Joint Elevators, Single Phase, Skid Mounted, Skid Mounted Pumping Units, Skid-Mounted Equipment, Slick line Units, Slip Type Elevators , Soap, Spinning Wrenches, Spiral Grapples & Controls, Spools for Blowout Preventors, Stabilizers, Steel Tankers, Steel Toe Boots, Structural Casing, Structural Pipe, Structural Rods, Structural Tubing, Subassembly, H2S Subassembly, Swabbing Units, Top Drives, Trailer-Mounted Equipment, Treaters, Triple Phase, Triplex Pumps, Truck/ Trailer Mounted, Truck-Mounted Equipment (Single and Twin Cementers), Tubing Spider, Tubing Tongs, Vacuum Trucks, Wireline Parts, Wireline Skids, Wireline Trailers, Wireline Trucks, Workover Equipment, Workover Service Rigs, Aluminum Tankers, Backhoes, Boilers, Braking Systems, Casing Elevators, Casing Scrapers, Casing Slips, Cement & Acid Equipment, Cement Bulk Trailers, Cement Mixers, Cement Pumps, Cement Storage, Centrifugal Pump, Centrifugal Pumps, Chemical Pumps, Choke Manifolds, Closing Units, Coiled Tubing Unit Parts, Coiled Tubing Units, Control Systems, Crane Trucks, Cranes, Crown Blocks, Traveling Blocks, Dehydrators, Ditch Witch, Double Drum Workover Rigs, Double Phase, Double Studded Adaptors, Dozers, Drawworks & Substructures, Drift Indicators, Drill Collar Elevators, Drill Collar Slips, Drill Collars, Drill Pipe, Drill Pipe Elevators, Drill Pipe Elevators Slips Combinations, Drill Pipe Spinners, Drilling Choke Control Systems, Drilling Components, Drilling Rigs, Dual Drilling Control Consoles, Duplex Pumps, Electric Motor Drive, Farm Tractors , Fiberglass Tanks, Flat Bottom Junk Mill, Flatbed and Lowboys, Fluid / Mud Cleaners, Front End Loaders, Gas Processing Plants, Gate Valves for Blowout Preventers, Gauges, Gloves, Glycol Pumps, Glycol Pumps, H2S Safety Valves, Handling Tools, Hard Hats, Heater Treaters, High Pressure Hoses, High Pressure Pump Skids, High Pressure Pump Trailer, High Pressure Valves & Fittings, Highway Tractors, Hydraulic AmpliÀers, Hydraulic Casing Tongs, Hydraulic Drilling Chokes, Independent Rotary Drive Skids, Laydown Equipment, Laydown truck mounted, Liquid Tanks, Mandrels & Sleeves, Manifold Skids, Manual Tongs and Casing, Metal Tanks, Motors, Mousehole / Rathole, Mud Motors, Mud Pumps, Nitrogen / Cryogenic Equipment, Off-Road Tractors, Pipe Bins / Racks / Material Storage, Pipe Wrenches, Power Swivels, Production Casing, Production Pipe, Production Rods, Production Tubing, Propane Tanks, Pulling Units, Pump Trucks / Trailers, Pumpjacks, Pumps & Pump Skids, Pup Joints, Quintiplex Pumps, Rags, ReÀnery Equipment, Releasing and Circulating Overshot, Reverse Circulation Junk Baskets, Rig elevators, Road Graders, Roller Reamers, Rotary Slips for Drill Pipe, Rotary Tables & Kellys, Safety Clamps, SCR Houses, SCR Power, Single Axle Roustabout, Single Joint Elevators, Single Phase, Skid Mounted, Skid Mounted Pumping Units, Skid-Mounted Equipment, Slick line Units, Slip Type Elevators , Soap, Spinning Wrenches, Spiral Grapples & Controls, Spools for Blowout Preventors, Stabilizers, Steel Tankers, Steel Toe Boots, Structural Casing, Structural Pipe, Structural Rods, Structural Tubing, Subassembly, H2S Subassembly, Swabbing Units, Top Drives, Trailer-Mounted Equipment, Treaters, Triple Phase, Triplex Pumps, Truck/Trailer Mounted, Truck-Mounted Equipment (Single and Twin Cementers), Tubing Spider, Tubing Tongs, Vacuum Trucks, Wireline Parts, Wireline Skids, Wireline Trailers, Wireline Trucks, Workover Equipment, Workover Service Rigs, Aluminum Tankers, Backhoes, Boilers, Braking Systems, Casing Elevators, Casing Scrapers, Casing Slips, Cement & Acid Equipment, Cement Bulk Trailers, Cement Mixers, Cement Pumps, Cement Storage, Centrifugal Pump, Centrifugal Pumps, Chemical Pumps, Choke Manifolds, Closing Units, Coiled Tubing Unit Parts, Coiled Tubing Units, Control Systems, Crane Trucks, Cranes, Crown Blocks, Traveling Blocks, Dehydrators, Ditch Witch, Double Drum Workover Rigs, Double Phase, Double Studded Adaptors, Dozers, Drawworks & Substructures, Drift Indicators, Drill Collar Elevators, Drill Collar Slips, Drill Collars, Drill Pipe, Drill Pipe Elevators, Drill Pipe Elevators Slips Combinations, Drill Pipe Spinners, Drilling Choke Control Systems, Drilling Components, Drilling Rigs, Dual Drilling Control Consoles, Duplex Pumps, Electric Motor Drive, Farm Tractors , Fiberglass Tanks, Flat Bottom Junk Mill, Flatbed and Lowboys, Fluid / Mud Cleaners, Front End Loaders, Gas Processing Plants, Gate Valves for Blowout Preventers, Gauges, Gloves, Glycol Pumps, Glycol Pumps, H2S Safety Valves, Handling Tools, Hard Hats, Heater Treaters, High Pressure Hoses, High Pressure Pump Skids, High Pressure Pump Trailer, High Pressure Valves & Fittings, Highway Tractors, Hydraulic AmpliÀers,

;fe k c\k pfli \hl`gd\ek Zfcc\Zk [ljk

><K :8J? EFN ilÀeld

CHANGE BUY SELL TRADE

FOR SALE

www.donsspeedparts.com • 1.800.431.CATS

OILFIELD

TRAILER (CT127TE-DHI)

SALE $9,999

C28

PIPELINE NEWS April 2009

PIPELINE NEWS

ilÀeld

CHANGE

Saskatchewan’s Petroleum Monthly

BUY SELL TRADE

FOR SALE

3.67 acres of prime commercial property on Escana Street, in the east industrial area of Estevan, Sask. Property has great highway access and visibility. Available for lease, build to suit/development or purchase.

Phone 306-421-0564 or 306-634-5304

2009 CHEVROLET LTZ DIAMOND SPECIAL EDITION 5.3 Leather, Convenience Pkg., Rear Camera and much much more $43,500 Call Larry Alward 780-853-0941 or 1-888-773-4646

www.donsspeedparts.com • 1.800.431.CATS

CLASSIC ENCLOSED

TRAILER Car hauler (CVT2483TE)

SALE $11,499

www.donsspeedparts.com • 1.800.431.CATS

2008 HONDA

TRX700XX Fully independent suspension

SALE $9,999

Business For Sale Successful well established oilÀeld trucking company located in south eastern Saskatchewan available for immediate transfer or ownership. This well managed company has shown steady year after year growth and does not show any signs of slowing. Long term trained employees in place for a new owner to act in management capacity. The downturn in drilling activity in the oil industry has had no effect on the revenues of this Áuid hauling company. Take your earning potential in your own hands and provide a great income for you and your family. Owner is willing to stay on for a negotiated length of time to train new owner.

Offering price: $750,000 Real Estate Negotiable, Earning over 25% ROI

The place to go to buy or sell a business.

Darryl Fox, B.Admin.,CMA Sales Consultant 201-2750 Faithfull Ave. Saskatoon Sk. S7K 6M6 Tel: 306-382-5075 • Fax: 306-382-5073 • Cell: 306-292-9388 d.fox@sunbeltnetwork.com • www.sunbeltwork.com

For Sale

FOR SALE

Reconditioned 750 BBL Tanks

2008 PJ 30 ft. High Boy Trailer

Heated & Insulated c/w Hawkeye guageboard assembly

Reduced to clear!!

Phone Paul (403)664-0604

Oyen, AB.

7000 pound axles, 16” tires, spare tire, 2 front jacks & LED lighting & pintle hitch.

799500

$

Call Wendell at (306) 726-4403

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

PIPELINE NEWS April 2009

C29

ilÀeld

CHANGE BUY SELL TRADE

www.donsspeedparts.com • 1.800.431.CATS

2009 ARCTIC CAT

PROWLER 1000 XTZ (Winner of the 2008 Baja 100!)

SALE $14,999

2009 BUICK ENCLAVE 8 passenger, Remote Start, Tri Zone A/C, Onstar*, Bluetooth*, Trailer Pkg. $38,150 Call Larry Alward 780-853-0941 or 1-888-773-4646

1992 MACK TANDEM FLUSHBY UNIT

FOR SALE Description: 37 ft. Derrick, 3 x 5 Oil Well Pump – Triplex, 8m3 1 Section Tank, HL 25 Pullmaster Hydraulic Winch c/w 2-speed ¾” Drill Line, Gearmatic Winch c/w 3/8” winch line, 3” Bowie Pump, T6DC Tandem Hydraulic Pump, 25 Ton Single Line Blocks, Spicer Drop Box, Weight Indicator (Line Type)

Field Sprayers for Sale!

Fit easily to back of your pickup. Excellent for weed control on Steve Hodgson leases. Diaphram pump PH. 1-306-483-2490 that will take Fax 1-306-483-2805 agressive chemicals. email- steveh@agrimaxx.com Call for pricing!

Call Ron for Pricing

1-866-363-0011 (toll free)

FOR SALE 3 - D.A. Manufacturing Coil Tubing Injectors 30,000 lb. push/ pull, single speed; 1 - Coil Tubing Reel, ready to install on truck. Can hold 3,000 metres of 1.5” coil tubing;

1 - Complete C15 Cat Engine c/w transmission out of 2002 Kenworth T800 tandem/tandem truck. Has been in rollover.

Maureen Tkachuk Leasing Professional Tel: 1-877-875-6183 1-780-808-6182 www.maureentkachuk.ca

Call Ron for Pricing

1-866-363-0011 (toll free)

Dominion Lending Centres – LatitudeFinancial

Independently Owned & Operated

1 - Complete Arch & Tray c/w Ram to install on Coil Tubing Arch Unit truck;

C30

PIPELINE NEWS April 2009

Resources Guide RP Automotive Inc. Complete Automotive Repair Reliable & Affordable • Fast & Friendly

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

Cory Bjorndal District Manager Downhole Tools

H Y D R O VA C S E R V I C E S 306.388.2225 - 306.421.5954

• Tune Ups, Injector Purges • Transmissions, Clutches • Shocks and Struts • Oil Changes • Diesel Repair • After-market Accessories • Wheel Alignments • Engine Repair • Steering and Suspension

• Cooling System Flush & Repairs • Brakes • Differentials • Exhaust • Diesel Purges • SGI Inspections • Flywheel Resurfacing

47-13th Street, Weyburn, SK CertiÀed Service Centre

®

842-4022

TERRY DODDS (24 hrs.) (306) 634-7599 Cell. (306) 421-0316

M.E.T. OILFIELD CONST. LTD. “All Your Construction and Maintenance Needs” SPECIALIZING IN: ENGINES, PUMP UNITS, UNIT INSPECTIONS, PIPE FITTING, TREATERS AND PRESSURE TICKET WELDING Box 1605, Estevan, Sk. S4A 2L7 Cell. (306) 421-3174, (306) 421-6410, (306) 421-2059 Fax: (306) 634-1273

Gordon Harty Box 95 Marwayne, AB T0B 2X0

Bus. Phone

Fax No.

Res. Phone

Office (306)482-3566 Fax (306)482-3567 Cell (306)482-8787 bob.betts@totemdrilling.com www.totemdrilling.com

(780) 875-9802 (780) 847-3633 (780) 847-2178 Fresh Water Hauling Custom Bailing & Hauling

Box 868 Carnduff, SK S0C 0S0

100, 200 and 400 BBL Tanks

SONAR INSPECTION LTD. Head OfÀce 1292 Veterans Crescent Estevan, Sk. S4A 2E1 E: sonarinsp@sasktel.net

Bob Betts Operations Manager

Please call us with your Custom Fabrication Requirements!

P: 306-634-5285 F: 306-634-5649

“Serving All Your Inspection Needs” UT - LPI - MPI www.westeel.com

Wayne Naka Taylor Gardiner Cory Rougeau

306-421-3177 306-421-2883 306-421-1076

• Pressure Vessels • Well Testers • Frac Recovery • Wellbore Bleedoff • Ball Catchers • 400 bbl Tanks • Rig Matting • Complete Trucking Services

Dale (306) 861-3635 • Lee (306) 577-7042 Lampman, Sask.

Bully Blast & Paint Services Ltd. • Shop & Field Service • Structural Steel • Tank Linings • and more

Ph. 306-525-5481 ext. 311

JUSTIN WAPPEL - Division Manager 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

(Chemical or Mechanical)

Southeast Tree Care COR CertiÀed Estevan, Sk. 634-7348

Specializing in well site and pipeline surveys Swift Current 306.773.7733

Edmonton 800.465.6233

Spool Coating now available

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

Bus.: (306) 457-2264

Vegetation Control

a l t u s g e o m a t i c s . c o m

Yorkton 306.783.4100

P.O. Box 54 • Benson, SK • SOC 0L0 bullyblasting@sasktel.net

Cell 306-596-8137

Serving the Saskatchewan Petroleum Upstream from our facilities in Regina & Tisdale.

Your Sandblasting, Painting & Coating Specialists with over 20 yrs. experience in the industry Cell: (306) 461-9679

www.northern-steel.com

Peter Koopman - Industrial Tank Sales, Southern Saskatchewan

4” Hevi Wate Drill Pipe Brad Lamontagne (306) 577-9818 or (306) 739-2263 smrltd@sasktel.net

PIPELINE NEWS April 2009

C31

NYMEX Crude Oil futures

March 3, 2008 March 19. 2009

Resources Guide OILFIELD HAULING LTD. Specializing in Hauling Well Site Trailers Bruce Bayliss Owner/Operator OfĂ&#x20AC;ce: 482-3132 Dispatch: 485-7535 Fax: (306) 482-5271

Career

Opportunities www.suretuf.com

2P[VPah # " !%# '! %

2Pa[h[T " % #$" !$""

fff \X[[T]]Xd\SXaTRcX^]P[ R^\

E

7^aXi^]cP[ Â&#x2019; 3XaTRcX^]P[ Â&#x2019; FT[[ <^]Xc^aX]V

Box 178 Carnduff, Sk. S0C 0S0

CNC Plasma / Oxyacetylene Operators Applicants must have welding background.

Driverâ&#x20AC;&#x2122;s license required. Reliable, team player.

Wages depend on experience. BeneďŹ ts available.

Performance bonuses.

Only those to be interviewed will be contacted.

Apply in conďŹ dence to: Fax (780) 808-2689

&DQDGD V OHDGLQJ GLVWULEXWRU RI LQGXVWULDO Ă HHW DQG VDIHW\ SURGXFWV

Crew Foreman

Experienced FOR LLOYDMINSTER AREA

4?E7 3?<@9DDC

3URXG WR SURYLGH VHOHFWLRQ TXDOLW\ DQG H[FHOOHQFH WR RXU FXVWRPHUV

?g^Ub =Q^QWUb

1^g % ( 2Pa[h[T B: B 2 A

WK 6WUHHW (VWHYDQ Â&#x2021;

1db) " % %"# ' '# 2T[[) " % $&& ''"" 5Pg) " % #$" %#&'

E

COIL COIL TUBING TUBING SERVICES SERVICES FLUSHBY SERVICES FLUSHBY SERVICES

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

([Y )KRR )KRR ,G^ SKR LOZ`VGZXOIQ&SOJLOKRJY[VVR_ IUS ]]] SOJLOKRJY[VVR_ IUS

3OJLOKRJ 9[VVR_ ;2)

Serving Alberta, B.C. & Saskatchewan Toll Free

1-866-363-0011

6 5 (U^ 9KX\OIK 8UGJ 9U[ZN )GXR_RK 9GYQGZINK]GT 9 ) 8 E

www.tazwellservicing.com 24 HOUR DISPATCH

780-205-7666 Lloydminster, AB

Lloyd Lavigne â&#x20AC;˘ Kirk Clarkson Owners/Managers 6506 - 50th Avenue Lloydminster, AB

Phone: (780) 875-6880

5315 - 37th Street Provost, AB T0B 3S0

Phone: (780) 753-6449

Fax: (780) 875-7076

24 Hour Service Specializing in Industrial & Oilfield Motors

Proudly Serving Alberta & Saskatchewan

â&#x20AC;˘ Full Hydrovac Services â&#x20AC;˘ Capable of Steam www.silverbackhydrovac.com â&#x20AC;˘ geoff@silverbackhydrovac.com

Apply in confidence to: Fax (780) 808-2273

C32

PIPELINE NEWS April 2009 #C416 1992 Cadillac Seville

#C415 2002 Buick LeSabre Ltd Sunroof

#5012A 2007 Chevrolet Impala LS 25000 K

#5013A 2008 Pontiac Grand Prix 35000 K

#4966A 2004 Chevrolet Malibu LT 35000 K

#5155A 2004 Chevrolet Impala Leather 80000 K

$4,500*

$9,700*

$17,400*

$16,700*

$10,900*

$8,900*

#5079B 2007 Nissan Versa

#5129A 2007 Chevrolet Cobalt SS Supercharged

#C409 2007 Chevrolet Cobalt Coupe

#5248A 2006 Chevrolet Optra LT Wagon 35000 K

#4076 2006 Pontiac Grand Prix GT 14000 K

#5176A 2005 Chevrolet Impala

$13,250*

$17,900*

$335,00/ Month*

$11,900*

$17,900.*

$9,900*

#5078A 2007 Chevrolet HHR LT Limited Edition

#4104 2007 Chevrolet HHR LS

#4734A 2007 Chevrolet HHR LT

#4960A 2008 Pontiac Grand Prix 35000 K

#5264A 2008 Chevrolet Impala LS 20000 K

#5265A 2008 Chevrolet Impala LS 22000 K

$18,800*

$13,500*

$14,500*

$16,700*

$17,400*

$17,400*

#5046 2008 Pontiac Torrent FWD

#5175 2009 Chevrolet LT Crew 4x4 5.3

#5229 2009 Pontiac G 3 Wave 5 Door

#5185 2009 Chevrolet Cobalt LS Coupe A/C ABS

#5152 2009 Chevrolet Cobalt LT

#5288 2009 Chevrolet Aveo LS A/C 5 Spd

MSRP 29745

MSRP 43765

MSRP 15390

MSRP 19365

MSRP22760

MSRP 16840

$23,500*

$34,700*

$11,750*

$15,800*

$18,250*

$13,250*

#4998 2009 Chevrolet Uplander

#5138 2009 Pontiac G 8 GT V8 6.0

#5195 2009 Chevrolet Silverado W/T Reg 4x4 5.3

#5118 2009 GMC W/T 3/4 Reg 4X4

#5233 2009 GMC Canyon Crew 4x4

#5289 2009 GMC Cab/Chassis 4x4 Diesel 161.5â&#x20AC;? wb

MSRP 27005

MSRP 41725

MSRP 35980

MSRP 43630

MSRP 38110

MSRP 51915

$19,200*

$33,500*

$27,650*

$33,500*

$32,200*

$41,600*

#5284 2009 GMC W/T 2500 4X4 Crew

#5246 2009 GMC SLT GAT All Terrain 4x4

#5269A 2006 F350 Diesel Crew 4x4 Leather 6 passenger

#C41A 2007 Chevrolet LTZ Crew 3/4 4x4 Diesel

#5085A 2006 Chevrolet LT Diesel Crew 4x4

#5143A 2006 Chevrolet 1/2 Crew HD 8600 lb 4x4 71000 K

$39,500*

$44,900*

$27,000*

$44,000*

$26,500

#5272A 2008 GMC SLE Crew 4X4 Buckets 5.3 20000 k

#5292A 2006 Chevrolet LT Z71 4X4

#5171A 2007 Chevrolet 3/4 4x4 LT Diesel Crew

#5293A 2008 Chevrolet Tahoe LTZ

#5204A 2006 Chevrolet Trailblazer LT 70000 K

$31,500*

$20,900*

$24,000*

$42,500*

$18,900*

#C410 2004 GMC SLE Crew Diesel 4x4

#4327A 2003 Chevrolet LT Silverado Crew 4x4

#5091A 2003 Chevrolet Silverado 4x4 Ext 4.8 Certified

#5052A 1999 GMC SLE Z71 Ext 4x4

#4727A 2007 GMC SLT Acadia AWD 30000 k Local trade in

$19,500*

$12,900*

$10,350*

$12,500*

*35,900

#3002B 1990 Chevrolet 3/4 Rwd 5Spd value point

#5291B 2004 Durango SLT

#52A 2007 Pontiac Torrent AWD

#C411 2004 GMC SLE 1 TON CREW Diesel 4x4

#5124A 2001 Chevrolet Tahoe 4x4 Clean 155000 K

$1,250*

$9,500*

$19,500*

$24,000*

$12,900*

Take Over Lease

*CASH PRICES LISTED CALL DONNA FOR YOUR FINANCE REQUIREMENTS

1 888-773-4646

$19,500 #5126A 2007 Ki Sportage AWD 2.7 V6 37000 K

$17,900* #5259A 2003 GMC Envoy w DVD

$11,500*

EMPLOYMENT -OFFICE MANAGER -SALES CONSULTANT *SEE LARRY ALWARD

VERMILION AB

www.collegeparkgm.com

1 780-853-0941