Pipeline News December 2009

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

November 2009

Tierra Alta Builds CDN PC Pump Factory Page A12

FREE

Camp Puts Griffin Back On The Map Page A15

Volume 2 Issue 7

Q & A With Lloydminster Mayor Page C3

Focus Edition: Downhole Pumps

Brad Bell uses a simulation package on variable frequency drive, part of an electric submersible pump package installed south of Weyburn.

Photo by Brian Zinchuk

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PIPELINE NEWS December 2009

News

SaskPower seeks to double wind generation Notes

By Brian Zinchuk Pipeline News

Over half at work Saskatchewan’s drilling rig count exceeded a 50 per cent utilization rate for the first time this year on Oct. 30.

Nickle’s Rig Locator, official publisher of COADC rig data, noted 68 of 132 drilling rigs in Saskatchewan were at work, for a 52 per cent utilization rate. It was the first time since late December, 2008, that Saskatchewan has seen that many drilling rigs at work.

By Nov. 19, the number had risen to 75 active rigs, for a 57 per cent utilization rate.

TriStar heads Sask drilling so far In Saskatchewan, TriStar Oil & Gas Ltd. headed the Nickle's Daily Oil Bulletin’s list of most active drillersfor the first nine months of 2009 with 163,840 metres drilled, followed by Crescent Point Energy Corp. (140,746 metres), Petrobank Energy And Resources Ltd. (109,593 metres) and Husky (99,124 metres).

TriStar is in the process of being acquired by Petrobank, to become part of PetroBakken.

Tundra Oil & Gas Partnership far outstripped its competition in Manitoba where it drilled 192 504 metres of hole with 83 wells at an average depth/length of 2,377 metres.

Regina – In the next few years, SaskPower is seeking to double the province’s wind power generation capacity, from almost 200 megawatts (MW) to 400 MW. Currently the province has an installed base of 172 MW, and has contracted another 25 MW from the Red Lilly Wind Power Project, to be constructed near Moosomin by Algonquin Power and Gaia Power. Scheduled to be online in 2011, it will bring the province’s wind generation capacity to 197 MW. On October 28, the province announced two initiatives to increase wind power generation. SaskPower is not looking to build and operate these facilities, but rather contract their power production.

The first is an allotment of 175 MW to be generated by a third party or parties. Brian Mohr, manager of sustainable supply development for SaskPower, explained to Pipeline News that they would likely be looking for one or two suppliers to meet that number.

The program is called the Green Options Plan.

Timelines will be released in December, but “We think the earliest we can add it is 2013,” according to Mohr, depending on the extent of transmission upgrades. New right of ways for transmission lines take an absolute minimum lead time of three years, allowing for land assembly to take place.

The second program is known as the Green Options Partners Program. SaskPower will introduce a standing offer program to purchase up to 50 MW of renewable power from private sector developers, with

up to 25 MW of the total coming from wind power. The remainder will be generated through proven clean technologies, such as biomass, heat recovery or low impact hydro generation.

The program will continue in future years, seeking to find up to another 50 MW of renewable power generation per year, but it will top out at 25 MW of wind generation for now.

That’s because the 200 MW total wind generation expansion is a key number. It’s based on a 2007 wind power integration and development unit study done by the Crown corporation to see just how much more wind capacity we can handle. The variable nature of wind, such as dying down in the night, can be problematic for power grids.

Mohr says the study looked at operational and cost impacts through a host of different issues. They included transmission infrastructure, operation of tie-lines, improved wind forecasting, installation of storage facilities, the possibility of using hydro power to manage wind more effectively, ‘must-run’ units on the system and contractual obligations.

The study concluded that the province could handle another 200 MW of wind generating capacity, for now. After that’s done, it’s time to take a step back, see how things are going, before adding more.

“We could add up to another 200 MW of wind power with manageable operational impacts and costs,” Mohr explains.

Because wind is highly variable and intermittent, he notes, “We could double the amount of windpower, provided we could make it curtailable.” ɸ Page A7

Pengrowth closes $300 million ¿nancing Pengrowth Energy Trust reports the successful closing of its previously announced bought deal financing.

Pengrowth issued 28.85 million trust units at $10.40 million per unit for gross proceeds of approximately $300 million. Pengrowth received approximately $285 million in net proceeds.

The net proceeds from the offering will be used to repay debt under Pengrowth’s credit facilities and for general corporate purposes. The offering enhances the financial flexibility of Pengrowth to fund growing opportunities in its internal development program, and to pursue additional corporate and property acquisition opportunities in the market.

Expect to see more of these on the horizon as SaskPower dramatically expands the province’s wind generation capacity in the coming years.

File photo

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 MIKE EVANS 403-846-9435

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 December 2009

News

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Notes

Delta Participates In Wordsworth oil well

Saskatchewan will join Alberta’s registry to keep track of key volumetric, royalty and infrastructure information.

Photo by Brian Zinchuk

Sask. to share Alberta’s petroleum registry

By Geoff Lee Pipeline News Regina – Saskatchewan’s upstream petroleum industry should benefit by a decision by the provincial government to upload its key volumetric, royalty and infrastructure information onto the Petroleum Registry of Alberta.

The Saskatchewan government signed a Memorandum of Agreement Nov. 13 with Alberta to share space on the registry to update its information technology systems.

“This registry is a web-enabled, interactive data base that has been well accepted by the oil and gas industry in western Canada,” Energy and Resources Minister Bill Boyd said in a news release.

“Companies operating throughout western Canada are excited about us being a full partner in the registry, and we’ll be working to adapt registry processes to the specific needs of companies operating in Saskatchewan.”

In his statement, Alberta Energy Minister Mel Knight said the registry “was established to ensure stakeholders have centralized access to safe, accurate, comprehensive, and timely petroleum-related information.”

“This co-operative effort is an important step toward increased regulatory efficiency that will allow industry to do what it does best - responsible devel-

opment of our natural resources for the benefit of all Canadians.”

Boyd said the online registry will improve client service by replacing significant components of older business systems that track oil and gas well information, production and disposition reporting and also supplement and enhance oil and gas royalty/tax billing.

The seven-year old registry is a central data base for volumetric and infrastructure data pertaining to the oil and gas industry that contains records of wells, facilities, business associates, operators of record, and company contacts.

The registry also provides the tools and data that primary users need for two-way communication with regulatory bodies, working-interest owners, pipeline companies, shippers, purchasers, and other business associates.

In addition, the registry is an analytical tool used by industry and government. The information collected helps government in the calculation and administration of its royalty and tax regimes.

“Our oil and gas industry appreciates Saskatchewan’s competitive and stable business climate,” Boyd said.

“We are now offering companies even more with technology that's been proven and accepted by the industry and which gives them the opportunity to do business more easily across the west.”

Delta Oil and Gas Inc.’s third horizontal development well at 14-7-3 W2M at Wordsworth, Sask. has been drilled and completed.

The well was drilled to a horizontal depth of 6,332 feet. Analysis of drilling results indicated that this well should be capable of production rates similar to the company’s other wells to the west.

Surface pumping equipment has been installed and a flowline has been installed to deliver fluids to the facility at 2A2-23-7-3 W2M. The well was placed on a pump on Sept. 25, and achieved initial flow rates of approximately 150 bbls of oil per day with equal volumes of water.

It has now stabilized at approximately 120 bbls of oil per day.

Delta said it anticipates that this well will produce at its strongest levels in the first two years and it expects to extract in excess of 60,000 bbls of oil in that time. Additionally, this well provided some important insight into the porous reservoir distribution in this area of the field and will help in determining the locations of future wells to maximize the recovery of hydrocarbons.

Diaz Cases second Lloydminster oil well Diaz Resources Ltd. reports the successful drilling of the second well in its Lloydminster development program.

The well, 102/06-18-48-1W4M which Diaz holds a 50 per cent working interest, was drilled horizontally to 1,513 metres and a production liner set. Production was set to commence in the following weeks.

Diaz plans a third well at Lloydminster with a spud date of late November.

CGGVeritas studies Bakken, Three Forks-Sanish CGGVeritas is working on seismic surveys in the southeast.

Current drilling targets are the oil-rich Bakken shale and the Three Forks-Sanish formation. (In Saskatchewan, the Three Forks-Sanish formation is also referred to as the Torquay formation.) Deliverables from the 150-square mile survey will be available in March 2010.

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EDITORIAL

PIPELINE NEWS December 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.

On everyone’s wish list

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 Stacey Powell NORTHWEST • Lloydminster Daniela Tobler 1.780.875.6685 MANITOBA • Virden - Gail Longmuir 1.204.748.3931 • Estevan - Jan Boyle 1.306.634.2654

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Editorial

Saudi preference could affect Saskatchewan budget Who would have thought that the Saskatchewan provincial budget could be affected by the preferences of Saudi Arabia’s state-owned oil company, Saudi Aramco?

It may not be much of an impact, but it shows just how globalized we are, here in the Land of Living Skies. Decisions made by Saudi princes could impact health care spending, by far the largest portion of our provincial budget.

Saudia Aramco in late October announced it would no longer price its crude oil with relation to the West Texas Intermediate benchmark price, as used by the New York Mercantile Exchange (NYMEX). Their new preference is the Argus Sour Crude Index (ASCI).

Nickle’s Daily Oil Bulletin, running a Reuters story on Oct. 30, explains, “The ASCI is the volume-weighted average of physical spot market transactions for three medium sour crudes (Mars, Poseidon and Southern Green Canyon) produced in the U.S. Gulf and delivered by pipeline to coastal refining centres in Texas and Louisiana.”

“In some senses the shift is a technical one. Mars, Poseidon and Southern Green Canyon are themselves traded with reference to NYMEX, plus or minus a discount, so calculation of the ASCI incorporates the NYMEX price.”

Reuters goes on to say, “The problems with the NYMEX contract are well known. It is the wrong grade of crude oil, in the wrong location, and with inadequate pipeline and storage infrastructure linking it to the wider global market.

In other words, the Saudis feel time the time for WTI at the top of the pile has come and gone. Heavier and sourer production is where the growth is.

The NYMEX, with its benchmark WTI is still the big dog for oil exchanges. But what if that changes?

What impact this has on Saskatchewan production isn’t known at this time. A large portion of our production is heavy oil, and we’ve got a fair bit of sour oil as a part of it. There’s a reason you see the re-inforced tank-

ers in the Lloydminster region.

The Globe and Mail noted on Oct. 30, “The rise of the sour index could eventually affect Canada, too. Argus has already met with several Canadian companies, who expect to use TransCanada Corp.'s proposed Keystone XL pipeline to send oilsands crude to the U.S. Gulf Coast. They have expressed interest in using the benchmark, said Euan Craik, chief executive officer, Americas, for London-based Argus Media, which publishes the sour crude index. ‘It's conceivable you could see Canadian barrels being priced against a sour crude index in the Gulf.’”

If the world does follow the Saudi suit, it could mean a shakeup in our budgetary processes. A good chunk of the Saskatchewan provincial budget is based on the WTI price, for good or for bad. When the WTI spiked, it was great. When it tanked, well, it was not so great.

Will an ASCI price be more stable, making it easier for budgetary purposes? Since it’s based on heavier and sourer oil, will that in turn increase the relative value of our heavy oil resources? While unlikely, could it have negative pressure on our light oil, like the premium stuff coming out of the Bakken?

Reuters notes, “The landlocked delivery location at Cushing, Oklahoma, is disconnected from the global seaborne crude market. The location made sense when the contract was introduced in the early 1980s as a benchmark for the domestic market. It was centrally located near the main Texas oilfields, capturing the typical base price for crude oil paid by refiners across the continental United States.”

Our crude, in large part, hits Enbridge lines heading southeast into the continental US. Some of that ends up at Cushing, so for Saskatchewan, there is some logic in following the WTI price. Not much, if any of our oil is ever going to see an oil tanker, so a Gulf Coast price might not be of that much utility.

The move by the Saudis could have no impact on us, or it could eventually be tied directly to how much money the Saskatchewan government has to give local hospitals.

Time will tell.

PIPELINE NEWS December 2009

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Opinion I just want a GPS that works From the top of the pile Brian Zinchuk

Very high on my Christmas wish list this year was, then wasn’t, and now is again, a GPS. I spend several days a month tooling around the countryside working on stories, which is as it should be. I think a reporter should get out in the field as much as possible.

Over the past year, I’ve been on most of the paved roads in southeast Saskatchewan, as well as some of the grids. While I’ve always been good with a map, there are times when I would really like a GPS. Last summer I ended up in grid road hell, trying to find my way from Lampman to Arcola. I took the wrong road out of Lampman, and ended up going north on a grid. Eventually, I should hit pavement, I thought. Then I hit a T-intersection, with no highway in sight. It wasn’t too long before I had this sorted out – the nice lady walking on the side of the road near her farm gave me directions, but it was one of those frustrating being lost episodes most real men would never own up to.

In particular, I’ve been keenly looking at Garmin GPS models. Unlike other brands, you can buy software packages for the Garmin specifically tailored to the oilfield, allowing you to enter in Canadian land locations for well sites. It even has leases loaded into the basemap. For those in the patch that have them, it is a cherished piece of kit.

When I got my Blackberry nearly a year ago, I noticed it supposedly had GPS, but I seem to recall being told it wasn’t enabled, as SaskTel did not yet offer the service. Playing around with the Blackberry Maps application got me nowhere, so I left it at that.

Bored while in the passenger seat on a neverending trip to Edmonton a few weeks ago, I started messing with the Blackberry. When I went to Blackberry Maps and chose start GPS navigation, it would search for satellites and finally give up. A Google search indicated these phones have GPS, but the cell companies usually disable it so that you pay for their GPS package, usually around $10 a month. But if you install a 3rd party GPS app on the phone, certain ones will defeat the lockout, and whamo, it works.

Indeed, installing Google Maps on the phone suddenly revealed my location. It was obviously celltower based, showing my position on the map with an accuracy of 4900 m, but this was progress. Sometimes it got to within 1200 m, but no closer. This wasn't good enough Like a man possessed, I installed a whole schwack of GPS applications on the smartphone, hoping one would reveal the secret ability that was dormant.

I installed Blackberry's App World and tried several different apps. Finally, one called GPS Tracker, a free app, did it. You have to register it and jump through some hoops, but once it works, GPS works for all apps. This includes Blackberry Maps and Google Maps. It showed an accuracy of 13 m, about as good as an inexpensive Garmin GPS. That's all it takes, or so I thought. No charges, no monthly fee. There are several apps you can get from the App World for free, some for small fees. One told me where the nearest bank machine was while driving past Radisson.

I was thrilled beyond belief. After years of pining for a GPS, I actually had one in my hand, without knowing it, and without paying another $250 for a dedicated unit.

Well, if only it was that easy. Several times over the next few days, I found the GPS wouldn’t work, or would revert to cell tower mode. I reinstalled the unlocking application, with no luck. Then later the same day, with none of these applications installed, it worked. A subsequent road trip showed it again to be unreliable.

I’m not sure if I was happier in the blissful ignorance that I couldn’t use my Blackberry as a GPS, or when I found out the phone does have it, but it doesn’t work worth a damn.

That Garmin just went back on the wish list.

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

Dreaming of a green and white Christmas Dear Santa: Please send another carbon capture and storage (CCS) project to my province soon.

Also, tell Rudolph and the other reindeer that an environmentally greener Christmas will make it easier for them to breathe while on route to snowy roof tops everywhere.

No doubt, a CCS project is high on the Christmas wish lists of many communities, research groups, oil and gas companies and even some environmentalists in Alberta and Saskatchewan.

Selecting the right type of CCS project is not a problem as they all spread the research wealth around with plenty of good cheer for the environment.

In Alberta, the federal and provincial governments announced an investment of $779 million for one CCS project in October to retrofit a coalfire electricity generation plant at the Keephills 3 facility west of Edmonton.

Both governments also earmarked $865 million for Shell Canada Limited’s Quest CCS project for the Scotford upgrader near Edmonton in October.

In addition, the University of Alberta signed a research agreement earlier in the fall with the German Helmholtz Association of Research Centres for oilsands’ environmental projects including CCS projects.

Lee Side of Lloyd Geoff Lee

In Saskatchewan, $100 million from the Canadian and United States governments respectively are expected soon for a proposed project with Montana would see carbon dioxide from one of SaskPower’s southern coal-fired power plants pumped into Montana and stored underground.

When writing to Santa, please specify that any of these project types will help to reduce greenhouse gas emissions, create high-paying jobs for researchers, energy companies and provide economic benefits for private companies bidding on the contracts.

It brightens Santa’s day to hear these funding gifts will also help other people around the world to live healthier lives by cutting our loading of emissions into the atmosphere.

According to our federal government, CCS

technology has the potential for Canada to cut its greenhouse gas emissions by as much as 600 million tonnes a year by 2050.

These projects also fit a G8 commitment to launch 20 CCS demonstration projects around the world by 2010.

Some of these newly funded CCS projects in western Canada are also aimed at developing new technologies that, in term, will create additional spinoff s. Let’s call them stocking stuffers.

For example, a new chilled ammonia process will be developed for the Keephills 3 project that will remove CO2 from the exhaust of the power plant. The stored CO2 can also be used for enhanced oil recovery as it’s currently being used in the Weyburn area.

The technology that results from CCS projects will also help make Canada a world-leader in this aspect of environmental science – one that we can export.

These types of gifts come with an expensive price tag but the costs will be well worth it if greenhouse gas emissions are significantly reduced and hundreds of people are put to work on worthwhile projects.

The upside is that we could all have a green Christmas and a white one at the same time and be able to pay the bills. Ho, Ho, Ho.

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

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PIPELINE NEWS December 2009

Letter to the Editor

Thoughts of needy families and Christmas blessings inspire toy drive Again I sit here on the day that follows Remembrance Day and think about those who have given the ultimate gift and of those who are still giving throughout the world.

I am truly grateful for the many blessings that have come my way because of the many sacrifices made by others and again wonder, “What I can do to make a difference in someone’s life?”

As I look at the calendar and see that we are now quickly coming up to Christmas, I have my happy thoughts of the Christmases that have passed and the one that is approaching.

With my wife and three kids who have now grown up and being blessed with seven grandchildren, I know that this too will be another great one.

This is not the same story for others. This year, as in some years past, we still see the hardships that have affected the many around us who may have been hit hard through the recent recession, the fall of financial markets, work shortages, layoffs and corporate cutbacks.

Those who have been affected in this downturn of economic times are proud, hardworking individuals who may be wondering this year how to make ends meet, the possible disappointment of a limited Christmas or the possibility of not having one at all.

Who do we look at to bring some relief to those, who in prior years, may have reached out to others and now, because of bad circumstances, have became one of the less fortunate.

Is it the responsibility of an overstressed government working on local, provincial, and federal problems both inside and outside our country or social services that for many months have been overrun with the situation of both young and old not having food or a place to sleep?

Is it the responsibility of the many churches and ethnic organizations that we take for granted and hope that they can again help the many in need?

What about the local food banks and their many volunteers who continue to show up to load what little is left on shelves to hand out to those in need while still hoping for a small miracle that their plea for help and donations will be heard?

I go back in my mind to what I have witnessed and the stories told when I was young, thinking of my parents and grandparents and what little they had and how much they still gave.

Their thoughts were always of taking care of their families, friends, neighbours and even strangers who knocked on their door in need of something hot to

Jackie Dearden, manager of the Lloydminster Family Care Centre at the Salvation Army reminds people participating in a food drive or a toy drive for Christmas to drop off new unwrapped toys and clothing gifts only at the Salvation Army along with food items. For large volume donations, please call ahead at 306-825-4840 to make a delivery appointment.

eat and were served, in many cases, because of the times, only a bowl of soup or porridge.

This always came with a smile from my parents and grandparents and a feeling of how great things

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

were even though they too, had little. I think about the one or two toys that I received, and in some cases, had to share with other siblings and how much joy it brought to us at Christmas time.

I think about the cardboard box that my brothers, sister and I used to slide down the hill on not far from our home and brought on much laughter even through it was not a real sled or toboggan.

I think about the simple things in life that brought a lot of joy to our family, friends and others that we met along the way.

This year, Automated Tanks’ employees, shareholders, suppliers and customers will be having a toy drive again along with offering a place for people to drop off non-perishable food items.

If it is in your heart and within your budget, please consider a donation of a toy, an article of new clothing or a non-perishable food item and drop them off at our main office located on 49th Ave in Kitscoty.

All donated toys and clothing, if wrapped, should state the type of toy and age group it’s for. If it is an item of clothing please include the size and what age and gender it is for.

All donations of toys and clothing will be delivered to the Salvation Army in Lloydminster on the Dec. 17.

All food items will be taken to the Lloydminster food bank by Dec. 18. Please bring a moment of happiness to a child. I know it will bring one to you.

We’re hosting a family/Santa day Dec. 5 On Dec. 5, Automated Tank Manufacturing will host a day of sledding / tobogganing on a specially groomed slope on its property in Kitscoty from 10.30 a.m. to 4 p.m. with hot dogs and hot chocolate for everyone.

Our staff will be on site to provide a special Skidoo lift so those who come to play can get in as many runs on our hill as possible.

At 1 p.m., Santa Claus himself will drop by for a quick run down the hill and welcome and thank everyone for coming out. This event is part of our toy drive and if you can donate a toy, we would be very grateful.

The best moments in life come from bringing joy to others. Our staff, management and shareholders wish everyone a festive season and a merry Christmas. May your kindness be your special blessing this season.

Joe Bowser, Manager Automated Tank Manufacturing Kitscoty, Alta.

• • • • •

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PIPELINE NEWS December 2009

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Under expansion The Encana plant south of Weyburn, seen here on Nov. 12, is undergoing an expansion. So they will have to add new signs, when the name of the facility changes to Cenovus Energy Inc. Photo by Brian Zinchuk

Is wind SaskPower’s next big move? ɺ Page A2 That means SaskPower needs the ability to reduce how much power is being generated from the wind turbines, if they are producing more power than the system can handle at a particular time. This is typically done by feathering the blades on the turbine to essentially stall the unit.

There’s a need to match output with load, and to have other generators on the system.

Natural gas turbines effectively follow wind power, with their ability to ramp up and down power production quickly.

SaskPower has been laying the foundation for this announcement for some time. The past year has seen numerous announcements of natural gas turbines being installed at Saskatoon, Kerrobert, North Battleford and Moosomin.

Prospecting “We’ve had a multitude of interested developers come forward,” Mohr says.

SaskPower already has a partnership with Suncor and Enbridge at their Sunbridge Wind Farm, the province’s first foray into wind generation, built in 2002. Mohr

Greetings of the Season Thank you for your goodwill and support all year long.

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notes it was part of the province’s learning process for wind power generation, and is relatively small, at 11 MW. “We’re hoping they’ll be interested,” he replies, when asked about the potential for further opportunities with the Sunbridge partners.

Prospectors searching for gold might keep their eyes to the ground and a rock hammer in their overalls, but prospectors for wind look to the skies and use an anemometer. “They actually prospect for good

wind power sites,” Mohr says of the companies interested in developing more wind farms. “Several have been prospecting for wind.”

“We have done wind resources studies in southern Saskatchewan.

Clearly there are zones that can produce wind power.”

The Swift Current area has a competitive advantage, Mohr notes, but adds other regions have been identified.

They include AssiniboiaRockglen, Moose JawRadville, Moosomin,

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south of Outlook, and Blackstrap.

Conceivably, new wind initiatives could pop up at one or more of these sites.

The Red Lilly project at Moosomin is already in the works.

“Our role is to identify the best sites that take into account not only the unit cost, but connection and line loss,” Mohr says. “We optimize our project se-

Merry Christmas

With gratitude and best wishes for a jolly good season to all.

LAND SERVICES LTD.

Brad Lane, President

2010 7th Avenue Regina, Saskatchewan Phone: 306-775-3415 Email: ofÀce@laneland.net

lection based on those three elements to get the best possible pricing for our customers.”

One thing SaskPower has found is there are definite economies of scale to wind generation,

and it makes more sense to build larger, more centralized facilities than to diversify wind on a regional basis. “Economies of scale overwhelm regional advantages,” Mohr explains.

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PIPELINE NEWS December 2009

Seeking to exploit huge coal reserves along US border

By Brian Zinchuk

Alan Cruickshank, President and CEO of NuCoal Energy, addresses the Estevan Board of Tourism, Trade & Commerce on Nov. 18.

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Estevan – The area is huge, encompassing most of the land south of Highway 13 and north of the US border, from Minton in the east to Grasslands National Park in the west as well as a large area around Shaunavon. NuCoal Energy, which has staked much of this region, wants to start mining its ample coal reserves, and process it in a polygeneration plant.

The result would be several products, particularly refined fuels, but done in a clean way with no emissions.

The company will be signing a memorandum of understanding with Sinopec, a mammoth Chinese energy firm, on Dec. 2, regarding the project.

Alan Cruickshank is president and CEO of the company, as well as one of the founders.

The other founders are

Steve Halabura, managing director and Tom MacNeill, President of 49 North Resources and an advisor.

Cruickshank spoke to the Estevan Board of Tourism, Trade and Commerce on Nov. 18, outlining the project.

They call it the “South 50” project, as it runs south of the 50th parallel. Work done in the 1970s and 80s culminated in 4,631 drill holes, including digitized logs, summary data, cuttings, core, and 3D resource models.

“Coal has been in the penalty box for a long time, and were starting to see how we can change the view of this,” Cruickshank told the luncheon crowd.

“This is not rocket science.” he stresses. “We understand the combustion.”

Gasification has been around for a long time, and was perfected by the Germans during

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the Second World War, he explains.

The market they are aiming for is the US, noting Americans are very nervous where their fuel needs come from.

There would be no tears shed there if imports from Venezuela could be reduced, he points out.

The process involves using a pressure vessel to combine and oxygen.”

Essentially, you take the coal, put it in a gasifier, and add oxygen,” he says.

It outputs syngas, or synthetic gas. Sulphur is stripped out. A very pure, pressurized carbon dioxide stream, comes off. “We would use it primarily in EOR [Enhanced Oil Recovery].

We believe there is going to be a shortage of CO2 here in the next decade.

We think there will be a big use for it.”

The plant would also produce power, but electricity is not the high value product, in Cruickshank’s mind. The syngas is turned into methanol which is then turned into gasoline. “This is the highest value driver.

Electricity is the lowest value driver.”

Cruickshank says it could be a “power island” for SaskPower.

It’s a closed system, without water or air emissions, according to Cruickshank.

The company is working with Sinopec as a major partner. Sinopec has three gasification plants, he notes. ɸ Page A9

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PIPELINE NEWS December 2009

A9

They call it the “South 50� project

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to produce 15,000 bbl. of gasoline a day, and they are looking at up to 10 modules. The price per module, including mining? A cool $650 million each.

Cruickshank also says there is a potential for smaller plants, as well

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One of the big hurdles will be funding. He points out that 2009 would have been a very diďŹƒcult year to raise funding, for example.

And they would need a lot of it. Each module would have the capacity

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Asked about timelines, Cruickshank was non-committal. “We could be looking at starting construction two to three years from permitting being completed. If all our permits and ďŹ nancing are in place, it

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Éş Page A8 Sherritt International, the company which currently operates the coal mines at Estevan, Bienfait and Poplar River, would be contracted to do the mining. “We won’t be mining the coal, but we certainly envision Sher-

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Legend NuCoal South 50 Coal Permits

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he weaves around it, saying, “A year from now, I can give you a much better answer.�

He also wants to avoid possible resistance in the not in my back yard manner at this stage.

The company is still privately held, but Cruickshank says they hope to go public on the TSX in 2010.

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as several plants. “We believe the potential for multiple plants exists here.�

If they did go with smaller plants, the idea would be to be as close to the mine mouth with each as possible. “A fully operation plant, at a full 10 modules, would be in the vicinity of 3,000 acres – six square miles,� Cruickshank says.

NuCoal isn’t the only company talking about a poly generation plant in southern Saskatchewan.

In October, 2007, Trans Canada and the government of Saskatchewan signed an agreement to fund the engineering and design of a proposed polygeneration plant near Belle Plaine. However, instead of coal, that plant would use petroleum coke.

Asked about where NuCoal’s proposed polygen plant would go, Cruickshank responds, “Where the coal is.�

Pressed on location,

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A10

PIPELINE NEWS December 2009

Rod pumps king of the hill

A side rack is used to haul pumps in and out of the Àeld. Here, Conor Mus, in front, and Aaron Mehler, load a pump that’s about to be sent out to a well near Benson.

Estevan – While they do handle some progressing cavity pumps out of their Estevan location, the king of the hill in southeast Saskatchewan is the rod insert pump, according to Weatherford Artificial Lift Systems pump shop manager Aaron Mehler.

“The vast majority of pumps in the southeast are rod insert,” he says.

The overall design of a rod pump has been fundamentally the same for years, he explains.

The differences are in size and materials.

The enduring design of a rod pump may come from its simplicity. It’s very similar to a water pump you used to see on old farm water wells.

It acts in many ways like a syringe, pointed downward. The barrel of the pump is like the tube of the syringe.

There’s a hold down assembly, which keeps the pump in place. At the bottom is the strainer nipple, which positions the pump and has the holes for fluid to flow in. At the top of the barrel, you’ll find the

rod guide, which ensures the rod moves up and down in the pump while in the correct position.

When the pumpjack pulls up on the rod string, at the bottom end of the string, the plunger is pulled up. This creates a lowpressure area, basically, a suction, drawing fluid into the bottom of the pump. It comes in through the standing valve, which is basically a large metal ball that rests on a metal ring, or seat. The ball lifts up, and fluid flows past it.

When the pumpjack begins its downstroke, the standing valve closes, and the travelling valve opens.

The descending plunger pushes on the fluid, forcing it to flow into the hollow plunger.

“It goes up through a cage, past your travelling valve, and through the i.d. (inner diameter) of the plunger,” he explains.

There’s a hole at the top of the barrel and the valve rod guide. This is where the fluid starts its journey up through the tubing to the wellhead. ɸ Page A11

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Optimizing pumps is the standard ɺ Page A10 When the pumpjack reverses again, the travelling valve closes, the standing valve opens, and the process repeats.

All-in-all, pretty simple. But making the most of the design is where optimization comes into effect.

Handling gas, for instance, is problematic, according to Conor Mus, who does inside sales and also works on pumps. He’s got 11 years of experience, working on pumps. “Pumps do not compress gas,” Mus says.

To this end, you want to get the travelling valve as close to the standing valve as possible without them actually touching. If it is “tapping out,” you can actually feel it by touching the polished rod at the wellhead. The impact is felt through the entire rod string.

There are variables in application, such as the flow rate of the

well. How much do you want to produce? What is your rod stroke on the pumpjack you will be using? How much will the rods stretch?

Mus notes rig crews swab the well to come up with a production rate. “They give us that information, and we design the pump around how much fluid it will produce.”

Depth is another variable, as is the zone it is landed in. The length of the barrel, material types, all come into play.

Corrosive environments

can eat away at components if the right material is not used. “You wouldn’t want to run a regular grade into high H2S,” Mus notes.

Water cuts also makes a difference.

“Think of the pistons in your car. In general water will affect the life of the pump.”

“Speed kills. The faster you stroke, the harder you are on equipment. All-in-all, it’s up to the operators how fast they pump their wells. We can only make recommenda-

tions.”

For the most part, companies will optimize pumps for each of their wells. “There’s the odd case where a company will run the same pump in every well.

That’s pretty much gone, now,” Mehler explains.

Depending on its usage, Mehler notes, “A pump can last from days to decades.”

Conor Mus of Weatherford ArtiÀcial Lift Systems makes sure this pump is ready before taking it out to Benson.

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A12

PIPELINE NEWS December 2009

Tierra Alta builds Canadian PC pump factory

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turing facility.

Currently, Tierra Alta manufactures its PC pumps in Venezuela. The Edmonton plant will allow the company to provide for the global market, as well as act as something of a hedge for the geopolitical issues in Venezuela, where President Hugo Chavez has had something of an interesting relationship with the oilpatch.

The company operates in North America, South America, and the Middle East.

“We’re going to take what we’ve learned down there from the engineering side and from the product manufacturing side and build a satellite manufacturing facility here,” says Ryan Rowan, technical sales person for Tierra Alta.

Two manufacturers and four engineers from Venezuela are on

Ryan Rowan shows a band saw that will cut tubes to length, the Àrst step in creating the stators for progressing cavity pumps.

site in Edmonton.

The output of the Venezuelan facility is

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about 5,000 pumps a year. “Here, we’re hoping to achieve 8,000 pumps a year,” Rowan explains.

“We expect to be online three to four months from now. There’s going to be about a six month ramp-up.”

Rick Joyes, sales manager, says “I think at least half – 50 to 60 per cent, are destined for Canadian wells. From a distribution perspective, we will need to significantly expand our service centres to support our product.”

That will lead to both direct and indirect employment creation,

Joyes says. “I can see us definitely having service centres in Saskatchewan,” he says, using the plural. Swift Current, and either Estevan or Weyburn are likely candidates, he notes.

Rowan feels they have a huge advantage in taking a technology that has been around for thirty years, and starting with a clean slate in 2006. That allows them to pick and choose the best of technologies, such as elastomers, bonding and chroming.

Tierra Alta is the only company that does 100 per cent of the manufacturing of PC pumps under one roof, he notes. That includes making the stators and rotors, including hard chroming. ɸ Page A13

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New factory for Tierra Alta ɺ Page A12 Other manufacturers have third parties do their chroming, he explains.

By keeping it in-house, “It gives us 100 per cent control of the process. We are able to evaluate how chrome builds on the rotor.”

Rowan says it allows for a more precise rotor, allowing you to stay closer to your tolerances without having to correct via polishing. He notes otherwise it takes “a $1.5 million lathe to cut it, and then you use a belt sander to polish it.”

“Yes, we do polish to remove machining marks, but not to adjust the size of the finished rotor.”

Tierra Alta’s proprietary process “maintains better control of the true geometry that we are machining,” according to Rowan. “That specialized machine is in the process of being built.”

Walk through Construction of the

new facility began in August. Sheila Picton, general manager, is overseeing the work.

“We have just over 39,000 square feet,” she says, walking through what was, in November at least, mostly open space.

Some equipment has had an 18 month to two year lead time. A peeling machine, which will turn bars into the helix of a rotor, weighs 48 tonnes.

Walking through the process, Rowan begins at the shop doors at the rear, where raw material is received.

Tubes for barrels come from the steel mill and are cut to length with a large band saw. Then they will be drilled at tapped for centralizers.

Next is a thermal degreasing machine, which uses an electro-magnetic induction heater to heat up the barrels. “You feed the tube in one end, and it comes out red hot,” Rowan describes. The process will burn off any contam-

inants inside of the tube.

A grit blasting machine then adds surface roughness, giving the inside of the barrel something to bond to when the elastomer is applied.

In the bonding room, a primer and bonding agent is applied to the inner diameter of the tube. ɸ Page A14

PIPELINE NEWS December 2009

A13

The bonding room is still lit by a work light. Sheila Picton is the general manager for Tierra Alta, overseeing the construction of the factory in Edmonton.

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A14

PIPELINE NEWS December 2009

Doing it all under one roof

A box of cores shows what is used to form the cavity inside a PC pump stator.

ɺ Page A13

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A Desma machine is then used to inject the elastomer into the barrel.

Think of it as a giant PlayDoh machine, where you push Play-Doh in, and it comes out in the form you want. Hot elastomer is forced into the barrel.

The elastomer is heated to a temperature below

Christian Meier, left, and Kerwin Arrietta, of Venezuela, are beside the Desma machine, which will inject the elastomer inside the barrel of progressive cavity pump stators.

scorching, but needs to be hot enough where it will flow.

A double helical core placed inside the tube looks very much like a rotor, except that it is actually the mould for the cavity inside the pump. With the core centralized, the elastomer is squeezed between the core and the barrel,

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taking its final shape.

The barrel, elastomer, and core, still in place, will be placed in one of three vulcanization ovens. “You’re basically baking the rubber around the core,” Rowan says.

Once it cools, the core is removed. The barrel, now a stator, has its connections welded, is painted, and goes into inventory along the wall, where vertical storage will be installed. The core goes back into the production process.

Rotor production Rotors start life as a heat-treated stress-relieved bar. They will first be cut to length, then go

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into a computer-guided CNC machine that puts on the rotor head, the connection that allows for mating to the rod string.

Next it goes into the peeler. As the bar turns, an offset whirling head cuts away the excess material. The cross section is round, but the result is a single helical profile.

A proprietary process for prepping the surface for chroming follows the peeling process.

A small concrete berm surrounds what will be the new chroming area. It’s a secondary containment installation, similar in concept to what you would see around production tanks in the field.

New chroming facilities are rare entities, with very high hoops to jump through to get them established. Picton says, “It is highly regulated, but not impossible.”

There will be scrubbing units with a closed loop, pulling air off the tanks. “The system itself is fully enclosed,” she elaborates.

After chroming, the rotor also goes into inventory, awaiting shipping.

It’s anticipated that at full capacity, they will be able to produce 24 rotors in 24 hours. One pump an hour is the capacity bottleneck. “The plan will initially be 10 to 12 hour shifts, five to six days a week,” Picton says.

A smaller room in the corner is the quality assurance/quality control lab.

“The important thing is to control the process to get consistent product,” she concludes.

PIPELINE NEWS December 2009

A15

Hamlet becoming bedroom of the Bakken RM councillor, and Lisa Knoblauch, lead operator for the RM. Others are busy doing admin work.

The corner of the building acts as the local post office.

The hamlet of Griffin is smack dab in the mid-

dle of the rural municipality, which had a 2006 census count of 334. It’s way over that now. There are no other major population centres in the RM, except for two very small remants.

“Every residence

in the RM is occupied,” Trombley says.

“The hamlet population has nearly doubled, not counting the camp.”

“If people can live in it, it’s full,” agrees Knoblauch. ɸ Page A16

With our Gratitude

Here’s hoping your holiday season brings peace and joy and all good things! Thank you for your patronage.

Penta Completions This highway sign might need to be changed to read “Bedroom of the Bakken.” A Áatdeck hauling casing pipe rolls by the tiny hamlet of GrifÀn.

By Brian Zinchuk Griffin – In 2006, Griffin school closed.

With its elevator long gone, and not much else in the small hamlet which hadn’t seen a new house built in decades, most people would think it would be just a few years until the tumbleweeds blow down Main Street.

My, oh my, have things changed in the

three years since.

Griffin, which had just a few dozen people until a few years ago, has recently put up 10 new houses. Most, but not all, are modular homes. The school is now apartments for oilfield workers. A camp was set up on the southeast corner of town, with a capacity of around 50. Its owner says there are plans for expansion in the future.

The ball diamond

of the school now has a shop for a specialty downhole tool company.

Perhaps they’ll have to change the sign along the highway from “Home of the Griffin Cubs – Inducted into the Saskatchewan Baseball Hall of Fame,” to “Bedroom of the Bakken.”

In the RM of Griffin office, one finds Audrey Trombley, the administrator, Robert Nelson, full-time farmer and

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A16

PIPELINE NEWS December 2009

Modular homes needed ɺ Page A15 There’s a reason so many of the new homes are modular. It’s next to impossible to get building trades to come out – something Xtend Energy Services found out when they built a shop last winter. “People just can’t find people to build and plumb,” says Trombley. One person who is building from scratch is not having much luck. “He’s having a really hard time.”

Seven properties have been sold that still haven’t been developed yet in the hamlet. There are still a few more available for sale.

All the new homes are occupied by owners. They aren’t revenue properties. However, the school now is.

“In 25 years, our population had declined from 85 to 25 people, with no new houses being built, and

two homes moved out of town,” Trombley says.

When the school closed in 2006, it had only 23 students from K to 9. If open now, it might have 30, but would still be well below the threshold of viability.

“This community closed its own school. We had a meeting, and it was unanimously carried. The province was astounded at the fact we had the voluntary closure,” Tromley recalls.

Students are now bussed to Weyburn.

Turnaround The next year, things turned around, considerably.

Trombley recalls the time quite clearly. It was Audrey Trombley has been administrator of the RM of GrifÀn for 25 years. The last two and a half July, 2007. “That’s when all hell broke loose. That’s years have been by far the most intense, with when the drilling activity increased.” drilling skyrocketing.

The RM, to that point, had older wells along its southern side. The Innes oilfield southeast of Griffin had been around since 1965, in the Frobisher formation.

In 2007, drilling started on the south side of the RM, moved north along the eastern border, then swept toward the west. “We issued approximately 300 drilling licenses in 18 months,” Trombley says.

“It basically doubled the size of our oilfield.”

“Although there’s a perception things have slowed down, as of yesterday (Nov. 12), we issued 107 licenses as of this year.”

That’s five to seven times what they used to consider normal. “Prior to 2007, we would have five or six, or a good year would be 17 to 20. We would call that a development year.”

“Our largest oil companies are Crescent Point and PetroBakken. We have nearly 40 different oil companies, some with as few as two operating wells, many have ten to 20. ɸ Page A17

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PIPELINE NEWS December 2009

A17

Staff, grader added to keep up to drilling

The RM of GrifÀn has had to add another grader, its third, to cope with the rising demands of increased oilpatch activity in the RM.

ɺ Page A16 One person even drilled his own well on the south end of the RM. Infrastructure needs Those numbers are fresh on her mind, because just the day before, they called a meeting with local oil producers to discuss what all this development is doing to the roads of the RM. “We invited the oil companies to meet with the municipality to dis-

two full-time employees and one part time.

Knoblauch says, “Last winter was really busy. Roads that previously weren’t kept open, now we have to clear.”

She says there’s a lot more traffic.

Nelson, the councillor, notes that local farmers have found work contracting their services to the oil companies. “[With] the activity and demand for machinery,

cuss infrastructure requirements and a means of financing.”

While the turnout wasn’t stellar, 80 per cent of the taxable assessment showed up.

Dealing with infrastructure is one of the major challenges. “No one was ready for this,” Trombley says. “This municipality operated with two motor graders, two full time operators, and one part time maintenance person. We’ve had to add a motor grader,

there’s individuals who have jumped in and become oilfield maintenance people.”

“Last winter, if you had a snow plow or dozer, you could make some money,” Knoblauch agrees.

“Some people have picked that up and added more,” Nelson adds.

A councillor for 20 years, Nelson says, “We’ve had the same issues for every year. The last couple years, the issues magnified themselves.”

“Our transportation budget went up 120 per cent from 2006 to 2008,” Tombley says. “We are going to have to generate more revenue from the industry.”

“We’re talking mill rate factors. That’s likely to be increased to offset the additional cost of maintenance, gravel and dust control.”

“The industry is understanding of the situation we’re in with

the additional stress on our infrastructure, and agreed to cooperate.”

“I think the worst is over for us. I think we can manage,” she adds.

Uptick The fax machine is no longer spitting out between 75 and 100 faxes a day from oil companies looking for approvals, but it’s still very busy.

Starting in October, there’s been a noticeable uptick in activity. In six weeks, one third of the licences issued this year to date came in. Trombley says that’s consistent with the activity level at the end of 2008.

Part of the difficulty for the RM is to compete with oil sector companies for staff. Knoblauch speaks of grader operators in the region who have been stopped on the road and offered a new job, with higher wages, on the spot.

However, there is a benefit to the stability of a

municipal job, they note.

“I got offers from different companies,” Knoblauch says, although in her case, they didn’t stop her on the road.

“We used to have an oil file this thick,” Trombley says, holding up a file folder three inches thick. “Now we have a file drawer and a half.”

hope it’s

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A18

PIPELINE NEWS December 2009

Crescent Point picks up TriAxon Calgary - Crescent Point Energy Corp. is buying out TriAxon Resources Ltd. The deal was announced Nov. 9.

Crescent Point will acquire all of the issued and outstanding shares of TriAxon for consideration of 0.18 of a Crescent Point share for each TriAxon share plus the assumption of approximately $17.3 million of TriAxon net debt. Total consideration

is approximately $248.7 million based on a five day weighted average trading price of $37.71 per Crescent Point share.

TriAxon is a private exploration and production company with assets in the Bakken and Viking light oil resource plays in Saskatchewan and the Pembina Cardium play in Alberta.

TriAxon’s assets include more than 148 net

sections of undeveloped land, including 63 net sections in the Viking light oil resource play in the Plato area of west central Saskatchewan. TriAxon also operates the Flat Lake Bakken play in which Crescent Point currently holds a working interest.

TriAxon is currently producing approximately 1,400 boe/d, of which approximately 130 boe/d and 170 boe/d are from

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the Viking resource play and the Flat Lake Bakken play, respectively, and 1,100 boe/d is from Alberta, which includes 560 boe/d from the Pembina Cardium play. In the second half of 2009, TriAxon successfully drilled two step out exploration horizontal wells, one currently on production and one awaiting completion, that significantly increase Crescent Point’s estimates of the size of the Flat Lake Bakken pool. Cres-

cent Point believes that this drilling success, combined with TriAxon’s large undeveloped Viking land base, provides the potential for significant production and reserves growth from these two plays.

“Over the past few years, TriAxon has aggressively pursued high quality plays with significant recovery factor upside,”says Scott Saxberg, President and CEO of Crescent Point. “They have established leading positions in

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the Viking and Flat Lake Bakken plays in Saskatchewan. These assets complement Crescent Point’s existing Bakken assets very well and provide us with the opportunity to lever our tight oil expertise into a large land base in the emerging Viking tight oil play.”

“Crescent Point shares our strategy of balanced growth through the combination of technology and large resource in place assets,” says Jeff Saponja, President and CEO of TriAxon. “We have exposed our shareholders to a significant amount of long term upside with the asset base we have built.

We are excited to roll these assets in alongside Crescent Point’s assets and to participate collectively in Crescent Point’s long term growth.”

The arrangement is expected to be completed on or before December 15, 2009 and is subject to TriAxon shareholder approval, court approval, and other conditions typical of transactions of this nature.

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PIPELINE NEWS December 2009

A19

West¿re stokes interest with new producing assets Calgary – Westfire Energy Ltd. is breaking its mold as a privately held junior oil and gas company with the purchase of Exceed Energy Inc. and all of its shares announced Nov. 3.

The company plans to become a publicly traded company in the Viking light oil play with a listing on one of Canada’s stock exchanges.

In addition, Westfire has entered into an agreement with a courtappointed receiver to acquire a package of producing oil and gas properties in the Lloydminster/Lindbergh and Peace River Arch areas of Alberta and some light oil properties in southeast Saskatchewan for $30 million.

The purchase of the producing assets is subject to court approval but the deal is expected to close Dec. 18.

The Exceed acquisition and the new producing assets will provide Westfire with additional growth, diversity and cash flow to fuel its Viking opportunities in west central Saskatchewan and east central Alberta Westfire is expected to have an improved cost of capital as a result of its focus on its high netback Viking light oil and conventional assets in Saskatchewan and Alberta.

Wells in the Viking formation have provided the company with a number of years of sustainable growth through drilling at more than 400 locations.

WestFire holds 173 (155 net) sections of land on the Viking play, of which a total of 77 (73 net) sections have vertical penetrations that define the Viking oil potential. The remaining 96 (82 net) sections are adjacent to lands that have vertical well control.

A minimum of four horizontal well drilling locations per section ex-

ist on these lands. This year, WestFire has successfully drilled eight (7.5 net) Viking horizontal wells.

The Viking oil pools were initially discovered in the early 1950s and more 8,000 vertical wells have been drilled in the Kindersley and Redwater, Alta., areas to date by a variety of companies.

The lower portion of the formation contains oil in thicker but shaley intervals that have been trapped in compartments of sandstone.

The advent of horizontal drilling and multi-stage frac completion techniques has been successful in enhancing the recovery of oil from this formation.

The Exceed acquisition and the new producing oil and gas assets will lead to a year-end production total of 2,100 barrels of oil equivalent per day with a 50 per cent oil weighting.

At the date of the purchase announcement, Westfire’s production was 1,400 boe/d, consisting of 33 per cent oil and natural gas liquids and 67 per cent natural gas.

In addition, the company had a debt of $8 million with 26.5 million issued and outstanding common shares

by Nov. 3 in keeping with its focus on build-

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ing shareholder value by growing production and reserves on a per share basis.

Westfire’s undeveloped land inventory will jump to 258,000 acres with 203,000 net acres and more than 110,000 acres or 99,000 net acres in the heart of the Viking oil play with the new assets.

The acquisitions will also give Westfire more than seven million barrels of oil of proved plus probable reserves with significant future reserve growth potential through revisions, additions, improved recoveries and the application of technology.

In addition, the company will have an estimated cash flow of $15 million for the remainder of 2009 based on oil and gas prices and currency exchange rates priced Nov. 3.

The producing asset acquisitions will funded by a combination of Westfire’s bank debt and proceeds from an equity financing.

The Lloydminster/ Lindbergh assets are operated 100 per cent working interest heavy oil properties that include 3-D seismic coverage over the acreage.

Target formations include the Lloydminster and Sparky at shallow

depths (500-700metres) that will be developed with horizontal drilling.

The Peace River Arch assets are a combination of operated and non-operated light oil and liquids rich natural gas properties. The acreage also has 3-D seismic coverage and the main producing formations are the Granite Wash and Doig.

The southeast Saskatchewan assets are mostly operated light oil properties with strong netbacks from favourable royalty incentives.

Primary formations include the Midale and the Bakken.

Current production is approximately 625 boe/d comprised of 32

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The assets also include 57,000 net acres of undeveloped land with extensive 3-D seismic.

Reserves are approximately 900,000 boe/d of proved and 1.9 million boe/d of proved plus probable with a reserve life index of 3.9 years for proved and 8.3 years proved plus probable.

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A20

PIPELINE NEWS December 2009

Gibson Energy on the move Gibson Energy has a small operation based in GrifÀn, where they rent part of the former school grounds to store their trucks. The company also rents a room in the former school. Here, a truck drives by the school on Nov. 13.

Photo by Brian Zinchuk

NAL focuses on oil in 2010

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In the third quarter, NAL focused its drilling on horizontal oil wells in the Cardium at Garrington, Alberta and the Mississippian in Saskatchewan.

The Nottingham gas plant expansion was commissioned in October and plans to bring on incremental volumes in November are currently underway.

In Saskatchewan, 10 (4.7 net) horizontal oil wells were drilled during the third quarter. Activity was focused on the Mississippian in Alida, Torquay and Nottingham with initial production rates ranging from 50-250 bbls per day.

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Hope it’s filled with lots of love and laughter.

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PIPELINE NEWS December 2009

A21

A22

PIPELINE NEWS December 2009

Industrial park open, ETI coming Estevan – The past year was one of big announcements for the city of Estevan. A truck bypass was planned, a new rink began construction, a new industrial park, and most importantly for the oil sector, a new Energy Training Institute was announced.

The city provided the land for the new Energy Training Institute (ETI), which had its sod turning on Nov. 20 (see more in the next edition of Pipeline News). Mayor Gary St. Onge describes it as a “pretty big carrot.”

St. Onge was returned to the position as mayor, unopposed in the October election. Pipeline News asked him about how the city will work with the oilpatch over the next term.

“I really wouldn’t want to see another 2008 again.

People went three months without a day off. I would like to see it a bit busier,” St. Onge says.

The city opened its new Glen Peterson Industrial Park in the fall. The ETI will be the anchor tenant.

In early November, Transport Canada visited the municipal airport as part of a certification process for scheduled flights to the community. The city has recently done some improvements to the facility.

This past year saw the announcement of a truck route bypassing the city, on the north side. “There’s a stakeholders meeting coming up,” St. Onge says on the matter. “Apparently there’s a big push from the feds to move the west end further west. It could result in a year delay. I would have liked to start this upcoming year.”

The possibility of twinning Highway 39 from the US border to Regina has seen a major push in the region in recent months. St. Onge agrees with the idea.

“I’d like to see it twinned. I know it’s going to take a little longer. It would help if Minot pushes the state

Estevan Mayor Gary St. Onge

to twin their end.”

Residential development Housing has been a major issue in the southeast,

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and in Estevan, in particular. “It’s very hard to tell. Is it going to stay like this year, which wasn’t bad, or are we going to be busier, like last year?” St. Onge says.

The city still has quite a few lots available for housing, and has had a request for proposals for using multi-family lots behind the Alliance Church. There’s also a company looking at an approximately 50-suite apartment block and a similar number condos, which may help out the city’s affordable housing situation.

There’s been work throughout the year to get an open camp for workers set up in the Rural Municipality of Estevan. “That would be huge,” St. Onge says.

He speaks of the clean coal initiative for Estevan, and says, “All of this affects the Energy Training Institute.”

St. Onge is frustrated the carbon capture and storage project is taking “longer than it should be.”

Does the city have a goal for housing starts?

“No,” is the response. “I think our goal is to keep up, not run out,” referring to serviced property. Pointing out there are two crescents on the east side of the city that are not filled, he adds, “I think we have enough."

Winalta had been working on a mixed residential substantial subdivision on the city’s northwest quadrant, but that has not progressed. “They still own that land,” St. Onge points out. “If they ever get the money, it could go ahead. It was a really good idea, I thought. A lot of greenspace, a village square.”

“We’re not in the housing business. That’s not our job,” he says.

The city s building a new reservoir in the northwest, likely in 2011, which will improve water pressure in the community.

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PIPELINE NEWS December 2009

A23

Estevan’s Glen Peterson Industrial Park opens Estevan – Estevan’s first industrial park with paved streets opened this fall, and has the honour of being the home of the new Energy Training Institue.

The City of Estevan provided the largest parcel in the subdivision to the ETI as part of its incentive package to build in the community. Sod turning took place for the new training centre on Nov. 20 (see the next edition of Pipeline News for more details).

There are 11 lots available, not counting the ETI location, with sizes ranging from 1.67 acres to 2.92 acres. Prices vary from $437,185 to $590,105. GST is on top of that.

“We’ve sold two,” says city manager Jim Puffalt. “Ten to go.”

“We’re happy,” he adds, expecting next year to be a break out year. It’s good to have land ready, he says.

The city has had to turn people away before.

“We only had one-anda-half acres of commercial/industrial land available that we were able to sell. The last thing we want to do is turn people away.”

“We want to make sure we’re ready for the next one.”

The zoning is heavy industrial. “This is fully serviced, paved industrial land for people to come into this area, “ Puffalt says.

It was annexed by the city in January, 2009.

At the time, the city took in a quarter section on each of the eastern and western sides of the city.

The city has a land development agreement with the RM of Estevan, according to Puffalt.

It encourages growth in each jurisdiction. Larger parcels belong in the RM, generally, he notes.

The cutoff is roughly 5 acres.

“We started talking about this two years ago,” Puffalt says. The city got provincial funding for the

Lindsay Clark, left, and Kent Philips, work on raising a tent on Nov. 19 for the sod-turning ceremony for the new Energy Training Institute, planned for the following day. They, along with Joe Lingelbach, were putting up the tent as part of a fundraiser for Estevan Minor Ball, which rents out tents in return for a donation. The new ETI will be the anchor of the new Glen Peterson Industrial Park, southeast of Wal-Mart.

development by the way of a zero-interest loan.

Work started in 2008.

The pavement will not be done until the area fills up a little bit, the city manager explains.

The Glen Peterson Industrial park is the first industrial subdivision the city has ever done on its own, Puffalt notes. Previous industrial subdivisions have all been done privately.

“It was expensive – around $6 milion bucks,” he adds.

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PIPELINE NEWS December 2009

Airport The City of Estevan had Transport Canada ofÀcials out to inspect it airport on Nov. 6. The city is seeking certiÀcation for the airport, allowing Swanberg Air to begin schedule Áights to the community. The airport has recently had some maintenance work done, including an application of an emulsion to lengthen the life of the runway, taxiway and apron.

Photo by Brian Zinchuk

Southern Paci¿c’s Senlac buy funds Athabasca projects

By Geoff Lee Calgary – Southern Pacific Resource Corp. bought itself a cash flow cow to help finance its Athabasca oil sands projects with its $89 million acquisition of Senlac Oil Ltd. finalized on Nov. 2.

The acquired assets

of the Senlac steamassisted gravity drainage (SAGD) facility have produced an average of 5,100 barrels of heavy oil a day since June 1, 2009, the effective day of the acquisition. Production topped 6,000 bbls a day in October.

“The Senlac ac-

Baker Hughes Incorporated

quisition provides Southern Pacific with significant cash flow, experience, technical data and SAGD production,” said Byron Lutes, president and CEO during a conference call.

“Although we have been transformed by the acquisition, I want to

emphasize that our new heavy oil assets also directly complement our existing and future oil sands assets in the Athabasca oil sands.

“The acquired assets use the same SAGD technology as we expect to use on our future projects in the Athabasca oil

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This is an aerial view of the Senlac SAGD facility purchased by Southern PaciÀc Resource Ltd. Photo submitted

sands.

“We successfully hired the entire 20 field staff that operate the Senlac thermal project which will ensure the continued successful operations of the project and retain a wealth of knowledge and experience in the company.”

The acquisition will help the company focus on developing their proposed 12,000 barrel a day SAGD project at STP-McKay, 45-kilometres northwest of Fort McMurray.

Southern Pacific submitted an application to the Alberta Energy Resources Conservation Board last May following a resources estimate from McDaniel & Associates Consultants Ltd. of 3.2 billion barrels of discovered oil on their extensive land holdings.

“We recently formalized our relationship with AMEC-BDR Ltd. and Drifter Projects Ltd. to carry on their work for us over this next stage of design on our project – the front end engineering or feed study,” said Lutes.

This work is expected to take four months to complete and keeps things on schedule with the timing of the application approval.

“Given the advance stage of STP-McKay we are now beginning the

process of identifying our next project area among our other six oil sands leases,” added Lutes.

This winter, the company plans to complete two core-hole evaluation programs in the hope they will identify at least one additional 10,000 barrel a day project they can begin to develop.

The $89 million purchase price for Senlac was largely funded by the net proceeds from a $52 million bought financing deal led by BMO Capital Markets.

“We funded the remainder of the Senlac acquisitions through a $45 million credit facility with BMO Capital Markets that has been drawn to $37 million, leaving over $7 million undrawn,” reported Lutes during the conference call.

The Senlac purchase includes three steam generators capable of producing 9,900 bbls a day of dry steam, pipelines connected to oil shipping pipelines and a water source and water disposal wells.

Lutes was pleased to report that the heavy oil produced at Senlac received a price equivalent of $59.82 a barrel after all the heavy oil differentials, diluents and transportation costs were deducted. ɸ Page A25

PIPELINE NEWS December 2009

A25

ESPs make headway Estevan – Electric Submersible Pumps (ESP) provider Borets-Weatherford has seen a rise in ESP sales over the course of the year, despite the recession, according to Bill Connely, Estevan area manager “There was a tonne of drilling, then a pile of facilities needed to be built. There was a pile of fluid to be pumped. We saw a real peak on horizontal pumping sales,” according to Connely.

With facilities being built and drilling dropping off, it gave engineers and technical staff time to optimize the wells that had been drilled, he says.

“Early in 2009, interest in horizontal pumping dropped a bit, but there was an increased number of calls for ESPs. In light of the recession, our business actually grew.”

The Estevan location, which had its grand opening early in 2009, added a full time person to look after horizontal pumping as well as doubling as an ESP field hand.

There are two applications in particular that ESPs are well suited for, according to Connely – high volume lift and deviated wells.

“Most of our calls are for applications where other methods aren’t capable of handling the volume,” he says. “Customers look at us seriously after the 400 cubic metre a day mark.”

He notes they can also go as low as 15 cubic metres a day. Areas where progressing cavity pumps may not be suitable due to corrosive gases like hydrogen sulphide are also fitting for ESPs. Deviated wells, wells where the wellbore isn’t truly straight, are another useful application. If there’s enough bend to the well, the rod string will rub against the tubing in either reciprocating or progressive cavity pump applications.

An electric submersible pump has no moving parts in the tubing – just the motors and pumps at the bottom. It’s driven by electricity instead of mechanical action, so the power cables won’t rub against the tubing.

The Midale and Frobisher formations are typical applications for ESPs, Connely explains.

One area that has not seen a lot of ESPs is Saskatchewan’s Bakken field. Connely says only a very small number have been used there, although they are seeing ESPs used in the Bakken south of the 49th Parallel. This is due to higher volumes, he explains.

While larger companies may have in-house ESP experience, smaller companies may not, he notes.

“We’re lean as far as employees, but experienced as far as knowledge.”

Smaller companies can take advantage of that experience.

Seulac SAGD tied to Fort Mac ɺ Page A24 After royalties and operating costs, the average net operating income was $43.08 a barrel from June 1 to Oct 30.

Senlac is expected to generate $11.5 million in net operating income for the balance of 2009 and $56 million in net operating income in 2010 based on a projected production average of 4,200 bbls a day in 2010.

“We are not forecasting production to stay as

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strong as it has,” said Lutes. “We all understand there are declines that go with any property.”

Lutes says the company plans to use its cash flow to fund the next phases of development of Senlac, to help finance the winter core hole program on their oilsand leases and to pay for the detailed engineering at the STP-McKay project site.

Bill Connely of Borets-Weatherford in Estevan says sales have increased for ESPs this year.

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A26

PIPELINE NEWS December 2009

Visit to RM of¿ce results in new business for Grif¿n Griffin – The tallest building in Griffin used to be the local elevator. Now it’s a new shop built by Xtend Energy Services Inc., a specialty downhole tool provider that chose the tiny hamlet between Weyburn and Stoughton as its southeast Saskatchewan base.

Beside the shop is

a well site trailer where you will find the temporary abode of Darren Vandenberghe, one of the partners in the small, privately held company. He came to Griffin in late 2007 to set up shop, but due to ups and downs of the economy, he hasn’t had a chance to go home on a permanent basis just yet.

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“This is a drill string vibrator,” Vandenberghe explains, pointing to a tool on the shop floor.

“That’s our primary line of tools. It’s designed to assist in mitigating wellbore friction.”

The tool looks like, and internally utilizes components that are is very similar to, a mud motor. It uses the flow of drilling mud passing through it to cause a series of eccentric masses to shake the tool, and in turn, the whole drill string. It usually goes behind the downhole drilling assembly, but can be positioned elsewhere in the drill string. Sometimes they will even use two on the same drill string.

The tool can be set up to vary the frequency and amplitude, and can even produce up to 100 G of force. “It really shakes. It’s very effective,” Vandenberghe says.

“We can help them

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Darren Vandenberghe works on a 61 year old pump for his shop’s test bench. It may be old, but it can be rebuilt and keep working, he explains.

drill further, and faster,” he explains. “We work directly for many of the operators – NAL, Petrobank, Crescent Point, Midale Petroleums, Tundra, you name it.”

“This is a very unique tool. No one else provides the same tools or service levels.”

“It ensures very consistent weight on the bit,” Vandenberghe says, which is important for use with polycrystalline diamond cutter bits. These bits, in recent years, have allowed drillers to dramatically cut down on the number of days it takes to drill a well.

“In some areas, drilling build sections with PDC bits is very difficult. They’re hard to steer. By maintaining consistent weight on a bit, he [the directional driller] can steer the bit much more accurately when sliding during directional drilling.” ɸ Page A27

PIPELINE NEWS December 2009

A27

Possibly a U.S. expansion

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last year in Griffin, handling local operations.

He plans to eventually expand. “Our long-range plan is to build another 60x60 [shop],” he says.

The current one is not big enough, “but it put us in business.”

An advantage to their product is that it is a completely unmanned rental, and can be typically monitored remotely

by Pason systems, used on drilling rigs. “I can see how our tool’s performing,” he explains.

That’s a useful tool, because the company works all throughout North America. They’ve been on the east coast, working American shale plays, to the Bakken.

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“From the Griffin location, we service an area from Shaunavon in the west to Manitoba in the east and right into North Dakota,” Vandenberghe says.

So what’s next?

“We’re looking at more expansion into the U.S. It’s busy in North Dakota. I expect I’ll be here most of the winter.

There is a yearning in his voice to return home to Okotoks, Alberta.

“My oldest daughter is graduating this spring.

I’ve been gone for a year.”

The tool on the Áoor is a drill string vibrator, the backbone of Xtend Energy Service Inc.’s business. Darren Vandenberghe is one of the partners in the company, and was behind the move to set up a shop in the hamlet of GrifÀn.

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Alberta property had gone for.

The property in question used to be a ball diamond for the local school, which closed a few years ago. The backstop is still in the corner, and the wellsite trailer and shop are in what used to be left field.

The shop was built on time and on budget, Vandenberghe says, “but only because I did it.”

It’s the first new shop in southeast Saskatchewan Pipeline News has come across in the past year that can make that claim.

It was a tremendous struggle to get it done, because it was next to impossible to get any building tradespeople to come out to Griffin. Vandenberghe ended up tying his own rebar for instance.

He put in the insulation himself. “I had to be the guy.”

After a three month build time, things collapsed in the patch. The original plan had been to get the operation set up, hire someone to run it locally, and head back home. “About the time I was really ready to rock, things really shut down.

It didn’t make sense to hire someone to sit,” he says.

As such, Vandenberghe has spent most of the

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ɺ Page A26 Have tool, need shop With a tool to exploit, the company needed an operational staging area in southeast Saskatchewan.

Xtend has been active in southeast Saskatchewan for five years now. “We might have equipment for up to a dozen rigs in southeast Saskatchewan, typically five to ten at a busy time. The same potential market exists in North Dakota,” he says.

“This Bakken play is big here. It’s really big there.”

Vandenberghe is originally from Killarney, Manitoba, and is familiar with the region. He was the one who pushed for the company to set up shop here. He came down 18 months ago, looking for shop space to rent, and couldn’t find any.

So why Griffin? “It wasn’t a planned move,” he responds.

“I stopped in here, talked to Audrey at the RM office. She sold this to me on the spot. I got four acres, serviced, very economically priced.”

He notes the RM has been very accommodating.

Vandenberghe laughs when he explains he was talking to a buddy who had recently purchased property in Alberta, and he paid just a small sliver of the price of what the

A28

PIPELINE NEWS December 2009

Weyburn plans for future with RM Weyburn – Having been re-elected in October to a second term as mayor of Weyburn, Debra Button says the city is ready, should there be another surge in the oilpatch. Part of that is a new industrial subdivision, recently opened.

“I think Weyburn

is on the right track already,” Button says.

Behind her, all but one member of council are returning incumbents, leading Button to say she has a strong council. The rookie will catch on quickly, she notes.

Back in the 1950s,

Weyburn didn’t welcome the oilpatch. That’s changed now, she explains, saying the city is inviting in the oilpatch now in a structured, planned way.

A large part of that planning is the formation of a district planning committee with

Weyburn Mayor Debra Button says the city is ready if there is another surge in the oilpatch.

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the RM of Weyburn.

The committee will have some members of each of the municipal councils, and a hired professional planner.

A year ago, Weyburn was seeking to annex land a half mile in each direction, nearly doubling the land mass of the city. Now, it’s approach is much more constrained, with just four full quarter sections in the northeast quadrant of the city now on the annexation list, and another sliver along the

north side of Highway 39 on the west side.

The area where Southern Industrial built a new facility on the west side of the city is no longer on the annexation list. That company had balked at the idea.

“We started this fall, just prior to the election,” Button says of the planning committee. “Hopefully by spring, we’ll have an active group.”

As for the rest of the area that had been previously considered for annexation, that’s now go-

ing to district planning, Button says. The city no longer has a fear of being “boxed in.”

“We were protecting our boundaries,” she explains. It wasn’t an immediate need, but a 20year need for land.

Housing in the southeast has been a prime concern in recent years, with nearly every community in the region experiencing oilpatch-related residential growth unseen in decades. ɸ Page A29

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PIPELINE NEWS December 2009

A29

700 residential lots planned for Weyburn Weyburn has scaled back its annexation plans, and now has formed a planning and development committee with the RM of Weyburn. The areas in pink are planned for residential development, with some highway commercial likely on Highway 13.

Map courtesy City of Weyburn

cessful year, with profits rolled back into facilities used to host it.

Whereas regional economic development authorities across the province were folding into larger enterprise regions, Weyburn took a different tack. It chose

In the northeast, the city is going primarily residential, except for along Highway 13. Weyburn wants to be ready to accommodate more housing as needed, and has 700 residential lots planned. “We’re planning for growth. We’re prepared,” Button asserts.

In October, Button attended the grand opening of the Canalta hotel, the second new hotel by the same company in the community in recent years. That’s not the end of hotel expansion, however. The community has changed its zoning, allowing for a possible expansion at the Perfect Inns. It’s also in discussion with another hotel for possible development, according to Button.

As for industrial land, a new industrial subdivision is now ready

on the southeast corner of town, north of the tracks. It’s known as the Brohams South Industrial Park. Ebel Road has 13 lots. SaskPower is supposed to be taking a major chunk of it, according to Button.

“We’re very mindful of the infrastructure,” Button says. “Oil sector companies look for developed land.”

Specifically, Weyburn doesn’t want to lose opportunities to Williston or Minot.

The last seven months has been a time for the city to catch its collective breath, according to Button. They might need it, as oil has been on a continual rise since bottoming out in early 2009. “Every indication is when things pick up, we’ll be ready.

We were not caught off guard the last time, and we won’t be again.”

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A number of businesses are bringing in immigrants to deal with local labour shortages.

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There’s work to be done on that front. “We need some restaurant,” Button says. But when asked if staffing could be found for any new din-

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A30

PIPELINE NEWS December 2009

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Weyburn – The pavement and curbs are in, the services installed, and street lights are soon going up.

Weyburn’s new industrial subdivision, Ebel Road, part of the Brohams South Industrial Park, is ready for business.

The new subdivision is zoned medium-industrial, according to Doug Mulhall, who is taking care of sales of the property. Mulhall is manager of community services/chief building official/licensed building official for the City of Weyburn.

There are 13 lots in total, two of which have already been sold to SaskPower for a future service centre and compound. The Crown is taking 17 acres.

Another parcel has an option in the works.

Mulhall says they have a mix of sizes, from just over an acre to four acres. The price is around $109,000 an acre, serviced. Those services include gas, power, telephone, water, sewer, curbs, pavement, street lights, fire hydrants, and three phase power.

“The lots are essentially ready to build on,” Mulhall explains.

No one has scratched dirt yet, however.

“We’re hoping to see some interest from oilfieldrelated business, but any medium-industrial type

business could look at locating there and would be well-suited by the area.”

Mulhall points out there is good visibility and highway access. The road is built for heavy hauling, and connects to 16th Street, the truck route on the east side of Weyburn. It is also just north of Highway 39.

Weyburn’s new industrial subdivision has a mix of lot sizes available.

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PIPELINE NEWS Saskatchewan’s Petroleum Monthly

B-Section December 2009

Jeremy Mack, Mike Gervais and Cary Wock are the trio behind Independent Pump Co., a private pump shop in Estevan specializing in reciprocating pumps.

Trio founds pump shop focusing on service

By Brian Zinchuk Estevan – After talking to a few rod pump shops, you start to hear the same thing repeatedly – rod pumps haven’t changed much in years, and they’re pretty much all the same.

So how do you differentiate yourself, especially if you’re new entrant? Service and knowledge, and good employees, according to the folks behind IPC. Cary Wock, Mike Gervais, and Jeremy Mack, opened up Independent Pump Co. (IPC) in Estevan two-and-a-half years ago, during spring breakup.

“This business is very difficult to get into,” Wock says, noting there are few suppliers of pump parts.

“To find someone to sell them to you who is not already a big supplier is very difficult.”

The big companies have their own manufacturing plants, he notes. “Our supplies are from DonNan Pumps and Supply out of Midland, Texas. We also get a lot of pump parts from Western Oilfield

Specialties out of Edmonton.

Big Risk “I look after the business end of things, customer relations, pump problems, and provide solutions for them. The other two guys look after the shop and make sure the work is getting done,” Wock says.

He’s personally been in the business since 1997, while the other two partners also have several years experience.

“You have to gain experience and have contacts and trust. Basically you have to know how to do your job and do it well,” Wock says. “It’s a big risk stepping out on your own. It was really hard actually. It’s a big decision to make. It can alter your life.”

Mack agrees, saying it was, “a little risky at first.”

They mulled over the decision to go ahead with the business for several months. It took a lot of planning and arranging of funding, suppliers and equipment.

When they fired up, they did so during road bans,

and made sure not to leave customers hanging at the firm they worked at prior to their startup.

“We’re the only locally owned and operated pump shop in Estevan, one of two in southeast Saskatchewan.”

The company has seven staff in all, including the three owners. Within a month of commencing operations, they hired their first staffer. It’s been continuous growth after that.

“We’ve been supported very well by a lot of the local oilfield companies,” Wock says.

The company focuses on reciprocating rod pumps – the type found at the bottom of a pumpjack-driven well. “The basic operation of every pump is very similar. Every pump shop can basically build you pretty close to the same pump, but everyone also has their own speciality designs as well,” Wock explains.

“For the most part, everything is interchangeable,” Mack adds. ɸ Page B2

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B2

PIPELINE NEWS December 2009

Materials make difference in rod pumps

A rod pump is disassembled at Quinn Pumps Estevan location.

By Brian Zinchuk Estevan – The symbol of the oilpatch is the iconic nodding pumpjack.

At the other end of the rod string is a reciprocating rod pump, the standard of the industry for generations.

Quinn’s Oilfield Supply Ltd. is one of the leading suppliers of rod pumps, with locations throughout Canada and the United States.

The company is privately owned

by Doug Quinn. His late father, Jim Quinn, started life at Bienfait, before ending up in Red Deer and starting the

company in 1965.

If you call the Estevan location and ask for Brian, the response is “Which one?” Brian Fluery is the branch manager, whjile Brian Stone is operations manager for the eastern division. Stone opened the Estevan branch in 1993, store number 8 in a company that now has 18 locations in Canada and another 19 in the US, plus international operations. Quinn employs about 225 people in Canada and 125 in the US. Manufacturing is done at Red Deer and Midland, Texas. ɸ Page B3

IPC focuses on service and knowledge ɺ Page B1 Wock elaborates, “It’s the service, the service and knowledge from your people that gets you the extra mile. We have a good group of guys here not afraid of a little OT or to go the extra mile to see the business succeed.”

“Most of us have all worked together for several years, and everyone of us have a special niche in the busi-

ness that helps make it run smoothly.”

They work hard to make it a worthwhile place to work, be it going to a football game or an occasional dinner out.

“A smaller company can always do extra little things to treat your employees well, as opposed to a bigger corporation.”

“There’s a niche in the market, we could see for a quality, reputable work-

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shop that just specializes in subsurface pumps alone, without looking after all the other stuff,” according to Wock.

“This year’s been a little slower, but overall, we’ve gained customers. We do about 70 per cent repair work, and 30 per cent new drills. When drilling isn’t there, we’re still busy. When drilling drops off, workovers pick up.”

Wock says it is cheaper to optimize wells, something they assist their customers with. “We have a pump tracking program, looking back at previous service, and a rod design program to configure new or problem wells.”

“We sit down or have phone conversations with our customers, dealing with problem wells.”

That includes looking for ways to increase pump life, be it changing materials with different metallurgies. “The Bakken’s proven to be a lot of trial and error. But with a little thinking outside the box and trying new things, we have most of the kinks worked out and everything is running pretty smoothly.”

“When a well goes down, it’s not always an actual pump failure,” Wock

explains. It might be tubing leaks, or parted rods that caused the problem there’s a lot of other variables “When they do that, they pull the pump, we service it and replace it with another.”

Jumping through hoops “Safety was one of the big hurdles we had to overcome. Every company wants us to have a little different safety [program],” Wock says.

IPC has its Canada HSE and ISN Networld papers, and is working on its COR. Their first year was spent putting programs together, now they are consolidating it, ensuring everything is up do to date. “You spend a lot of time on it,” Wock notes.

Mack, who is the company’s safety co-ordinator notes, “Some companies, it will determine if you’re working for them or not.”

The company is active in the community, with a lot of local sponsorships.

“We are local, and we’ve been supported locally, and we like to give back locally,” Wock says. Their donations vary from kids sports to curling, hockey, stock cars, cancer and others.

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Phone: 634-7892 • www.ipc-sk.ca

PIPELINE NEWS December 2009

B3

Proud to be a Canadian company ɺ Page B2 carbide.

PC pumps are manufactured in Swift CurStone explains, “We’ve just invested a rent. large sum of money into a product, a new Saskatchewan operations include Gull process that can make barrels and plungers Lake, Swift Current, Kindersley, Lloydminster, harder than anything we’ve seen to date.” and Estevan. The Estevan store services not He says it should be free from corrosion only southeast Saskatchewan, but also southand last longer than anything else out there. west Manitoba. “Our service area is pretty Field testing should begin shortly. huge,” he says.

Carbon dioxide applications are becomStone notes there is some pride in the ing increasingly important with the advent of company for being a Canadian company, doing carbon dioxide storage. However, it’s corrobusiness in the States. sive. “We have material that can stand up to “We sell and service bottom hole pumps, CO2,” Stone says. our own product, and the only product we Rod pumps also fare better in high heat sell.” applications, as opposed to progressive cavity Quinn has been making reciprocating rod pumps, according to Stone. “The rubber puffs pumps since the get-go, and in recent years up in high heat,” he says of PC pumps. has expanded into a line of progressive cavity A typical rod pump in southeast Saspumps. katchewan will have 64 to 192 inch stroke.

A rod pump is the oldest form of artificial Capacity will vary from half a cubic metre a lift, Stone says. They’re just like a water well day to 300 cubic metres a day. pump in a campground, but the materials are a Rod pumps can and are placed in the build little bit more exotic. section of horizontal wells, often just before “We’re currently looking to expand to the well flattens out, according to Stone. “In North Dakota, Montana, Wyoming and Oklahorizontal, you want to get the pump down as homa,” Stone notes. That includes a pursuit of far as you can,” he notes.

The plunger hangs out of a rod pump being serviced. the Bakken play in North Dakota. “We have a However, one of the downfalls of produclot in the Bakken.” ing out the build section is more wear. He Stone speaks of adaptations to rod pumps shows a rod in the service bay that has worn to better handle frac sand coming out of Bakken wells. into an oval cross section, instead of its original round. The wear comes from goWhile the basic design of a rod pump is pretty standard, they vary in sizing ing through the guide at the top of the pump. Usual servicing items include the and materials. Those materials can be exotic, like titanium carbide or tungsten rods, barrel and plunger, plus valves to a certain extent.

Sand, corrosion and neglect are the enemies of a rod pump. Having too big of a pump for the amount of fluid doesn’t work out well.

There are eight staff working out the Estevan location. “We are actually well ahead of sales this year over last year, and last year was a record year,” Stone says.

Time to hit the ice Local oilman’s bonspiels make the frigid winter a little easier to bear. Here are some of the bonspiels lined up for this year.

The Weyburn Oilfield Technical Society will be hosting their event Jan. 22-23.

“We’ve changed the format last year to a skins format,” says Jim Yeaman, one of the organizers. More information on the 24-rink bonspiel can be found at www.freewebs.com/ weyburnots. You can also call 305-8480550 and ask for Jim or Michael.

Oxbow will be holding their oilman bonspiel Feb. 12-14. Richard Lamontagne is the contact, and can be reached at 306-483-7897. “We try for 32, but we always get 24,” he says of the number of expected teams.

In Swift Current, the oilmen take to the ice Feb. 19-20. Ron Eichel is the

contact at 306-778-0605.

Leanne Fleck is one of the organizers of the Lampman bonspiel. It will occur March 5-7. As for the number of teams, Fleck says, “Ideally, 32, but we’re happy with whatever we get, usually 24.”

The Lampman event is a mixed one, requiring at least one lady per team. Fleck can be reached at 306487-2669.

Shaunavon’s oilman’s bonspiel takes place on Mar. 20. Kent Elmgren is the contact. He can be reached at the rink at 306-297-2338.

The season typically wraps up with the big Estevan OTS Bonspiel. The dates this year are March 25-28. More details will be available in the new year on the Estevan OTS website, according to Greg Kallis, OTS president. It can be found at estevanots.com.

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B4

PIPELINE NEWS December 2009

No longer needed, former school becomes apartments Griffin – In 2006, the hamlet of Griffin voluntarily closed its school without a fight. There simply weren’t enough students to make it any-

where close to viable.

While some might lament the loss of a school in a small town, its demise as an educational facility allowed

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the building to fill an urgent need in the southeast – housing.

Cliff Leier farms between Sedley and Francis. He also owns a building at North Weyburn he rents out to an oilfield trucking company, what he refers to as his “dabbling” in the oilfield. In October, 2007, he put in a tender to buy the former Griffin School.

“I call it the Griffin Apartments. It doesn’t really have a name,” Leier told Pipeline News.

“I realized there was

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Children’s art still decorates the walls, and ceilings, of the former school.

a housing shortage. I saw an ad in the paper for a school for sale by tender. I looked on a map and saw Griffin is right in the Bakken oilfield.”

Asked if he’s going to drill for oil on the schoolyard, Leier responds, “I already asked the girls at the RM if I could do that, and they said that’s not going to happen.”

He points out that two new wells were drilled within a half mile since he bought it. Along Highway 13 to the east, a string of leases continued to be built, and wells drilled.

There were compe-

tive bids on the school, but Leier got it for a reasonable price. “I got a good deal,” he says.

Since then, the school has become apartments, with seven units. Most are former classrooms. The former assembly room is now two units. There is no gym.

One room is now a common kitchen.

Children’s art still decorates the walls and ceiling tiles. But washrooms now have showers. “I really didn’t have to do too much,” Leier says, noting it is a solid building.

Each room has a queen sized bed (one has a king size). There are new fridges and microwaves. Most of the rooms have a hide-abed. All have satellite TV. “I didn’t buy junk,” he elaborates. “I didn’t put anything in there I wouldn’t use.”

“Basically, you walk in with your clothes, pil-

lows and blankets, and you’re set.”

Despite rates that are a fraction of what you would pay for a bachelor suite in Estevan, some tenants choose to share a room. “There’s a lot of sharing going on,” Leier says.

Gibson Energy Partnership has a room rented for their drivers.

They also rent some yard space, and have a row of tanker trailers parked.

“It’s pretty much monthly. I don’t do the day stuff.”

The clientele ranges from truckers to rig workers. “It changes constantly, but I have some fairly steady ones.”

“I’ve got some work lined up,” he explains, including new flooring for the bathrooms. In the future he may upgrade some of the rooms with private bathroom facilities. Leier is also looking at adding kitchenettes. ɸ Page B5

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PIPELINE NEWS December 2009

B5

Grif¿n makes it work with what they have ɺ Page B4 The building is circa the early 1960s, and comes in around 11,000 square feet. The rooms are each about 20-ft. x 30-ft. “The rooms are big enough. They’re old classrooms,” Leier says.

For a nearly 50 year old building, you would think the utility costs would be through the roof. Leier says that’s not the case. “Utilities aren’t as bad as I thought.”

Of the seven units, four were rented out as of mid-November.

During the peak in 2008, he was maxed out. “When it was $140 a barrel, I could have used another school.”

So that’s exactly what he did.

When the school in Francis came up for tender, Leier bid on it, too, and scooped it up in March of 2009, right when the oilpatch was skidding in a slow-

down. There were also competitive bids on that school.

“There are other things going on in the province,” he says, pointing to potash development.

“Fifteen miles west of Francis, they’re drilling potash core samples.”

He notes Francis is only 40 miles east of Regina. “Regina’s experiencing a housing crunch, too.”

“If people can’t afford a house in Regina, they can drive.”

The Francis School is a little bigger, and has a gym.

He’s not sure what is going to come of it yet. “I’m still playing around with that one,” he explains.

The 52-year-old farmer is in it for the long haul. “I’m not losing money, I’m making money.”

“Some days it makes it easier. Some

days, you get off the company and it’s ‘Aw, crap, I have to go to Griffin.”

Farmers are notorious problem solvers, he adds.

“There’s still a housing crunch down there. Any time oil takes a little jump, it’s going.”

It’s unlikely the rig hands and truck drivers will be found frolicking on the now-overgrown playground near the former GrifÀn School. Still, the accommodations right in the Bakken are needed.

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B6

PIPELINE NEWS December 2009

Grif¿n Open Camp capacity ...

Griff in – When Griffin Open Camp set up shop in late 2008, it had the capacity to essentially match the population of the tiny hamlet, halfway between Weyburn and Stoughton. If things get busier in the future, a possible expansion could see the

camp overtake the local populace in numbers.

Marc Henley is the man behind the camp.

Over the phone from his Edmonton base, he told Pipeline News, “We have some friends that have some oil service companies down there.

They suggested we

come down and set up a camp.”

The camp used to be part of Henley Oilfield Supply, but the company has since merged with Royal Camp Service, of which Henley is a major shareholder. It now operates under the Royal banner.

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“We do roughly 60 camps a year,” Henley says, ranging between B.C., Alberta and Saskatchewan. Sizes vary from 20-person to 500-person camps. “We do a lot of camps around Fort McMurray.”

“We have budgeted to expand the camp.

Our plan is to grow it,” he says of the Griffin operation. It may have been a slow summer, but he’s optimist for the coming year. “We’re in this for the long run.”

“We have plans for a second dorm.”

Local operators One of the key operating factors for Henley is having local staff.

“It’s important to us.

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We’re pretty lucky to have Phil.”

That Phil would be Phil Carlson, camp manager. He’s worked for several years with Henley. His wife Debbie works in the kitchen.

Judy Young is the main cook, while Sandra Kabatoff is the relief cook.

The day Pipeline News visited, they just hired a local lady to work as a camp attendant.

For the Carlsons, Griffin is close to their Radville home, close enough that they can get home every few days and feed the few cows they keep. Phil Carlson says they got out of grain farming several years ago, and

he’s worked up north in camps, originally for DJ Catering.

During the fall, they have their own outfitting operation, catering to American bird hunters. He took some time off from the camp to run that, and returned a few weeks ago. Blair Campbell, a local farmer who plows snow for the camp, looked after it in their absence.

Carlson says things are starting to pick up.

On Nov. 13, he explained, “At this time, we’ve got about 30 guys in camp.”

“We’ve got quite a few inquiries for rooms down the road.” ɸ Page B7

Happy Holidays!

Thank you for your support all year long.

Phone: (306) 388-2652 Fax: (306) 388-2345 24 Hour Service

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PIPELINE NEWS December 2009

B7

nears population of whole hamlet ɺ Page B6 The facility includes a 49-bed dorm, plus a wellsite trailer. There are also accommodations for staff, a kitchen, and a recreation room.

When it was set up, they were initially running on generators, but are now tied into the electrical grid and town utilities.

The way to a man’s heart “We set up this camp a year ago,” Carlson says over a coffee in the kitchen. The smell of freshly baked buns wafts through the air.

Those buns are a secret weapon when it comes to marketing. Carlson will take some fresh baking and cooking samples on the road with him when he visits crews, looking for potential clients. Fresh sticky buns are prime mouth-watering material.

“I’ll go out on the road, and pass them around.”

“The food is good,” according to Carlson.

Breakfast is served from 6 to 8 a.m., lunch from 12 to 1 p.m., and supper from 6-8 p.m. A typical breakfast will see sausage, ham, bacon, toast and French toast. Lunch will normally be lighter fare, like soup or sandwiches. Lunch can be taken out, or eaten in. Most clients are out in the field at lunch time anyhow. Supper is the big meal, typically with two meats, two starches, two vegetables, two or three salads and deserts.

There’s a reason the conversation dwells on food, and it’s not just the smell of the beef barley soup Kabatoff is preparing. If you don’t have good food, your camp’s not likely going to be in business long. “That’s one of your number one things, your food,” Carlson says, adding the rooms and cleanliness are also important. So far, no complaints yet.

Newer facilities The camp itself is quite new. The dorm is a

Debbie Carlson prepares a fruit salad in the GrifÀn Open Camp kitchen.

2007 unit, the rec room was brand new when it opened. The kitchen is about five years old. “Our kitchen’s got a walk-in freezer, walk-in cooler, convection oven. It’s got pretty much everything.”

The kitchen is open to the public for a meal, something some locals have taken advantage of.

But unlike a usual restaurant, you don’t order from a menu. Meals are a flat rate, but it’s all you can eat, including beverages.

“Most local people haven’t been in a camp or

Member of

seen how it operates,” he says.

Similarly, the camp charges a flat day rate, which includes food. They don’t do weekly or monthly rates, according to Carlson.

The clientele are mostly Albertans right now, Carlson says.

Henley says sometimes company’s central booking office will book the rooms. “Sometimes, it’s a guy who will just show up.”

To accommodate crews working on shifts, they do housekeeping at different hours.

The camp had about 25 clients for a good part of last winter, and was helped out by a Crescent Point plant expansion near Stoughton. “We closed up for breakup towards the end of March. We reopened at the end of June,” Carlson recounts.

“Summer was really slow. The name is finally getting out,” he notes. “This camp thing is a new concept in the southern part of the province.

Things have started to pick up now.”

He’s heard some good reviews.

A bank of satellite receivers feeds a choice of 16 channels into each room. Carlson says they walked into a local Wal-Mart while setting up the camp and said they wanted 49 TVs. With a laugh, he recalls the clerk said it might take a few days.

Shower facilities are in individual washrooms, instead of dorm-style, allowing for more privacy.

There are three washers and three dryers in the laundry room.

Each room has a desk, bed, drawers and closet, plus a medicine cabinet mirror. Wireless internet is available throughout. “Guys would go nuts if they can’t check their emails,” he says.

“Guys working in 30, 40 below weather, when they come home at night with a clean room and a good meal, they’re happy.”

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B8

PIPELINE NEWS December 2009

ESPs see use in Weyburn area

By Brian Zinchuk Weyburn – Sometimes you need a specialty pump when you’re working in special areas.

The EnCana field south of Weyburn attracted Wood Group ESP (Canada) Ltd. to the community about four years ago, according to Brad Bell, field service technician for the company.

Bell personally has been with the company since April, 2008. A local boy, he grew up 25 km south of Weyburn at Colgate. “I’ve been in the oilpatch since I was 19 years old,” Bell says.

He followed oil rigs around for a while, and then got his journeyman ticket as an electrician when the patch slowed down in 1997. Being an electrician isn’t a requirement to work with

Electric Submersible Pumps (ESPs), “But it sure helps,” according to Bell.

He’s worked as an electrician, doing industrial, oilpatch, commercial and a little residential work for a local firm. When he moved over to Wood Group, he had already worked with one of their main customers for several years.

The planning for an

Brad Bell works on an ESP installation in the Encana Àeld, south of Weyburn.

ESP application is not done locally. “It’s done from our WGESP offices in Calgary,” he explains, adding they also have a design team in Leduc, Alta.

That’s where units go to be serviced.

Electric submersible pumps are made up of a motor, seal assembly, intake and pumps, all placed at the end of the tubing at the bottom of the hole. They are connected by an electrical cable, running outside the tubing, instead of a rod string inside the tubing. This is important in deviated wells, where an ‘S’ in the tubing can result in wear for both the rods and the tubing.

“Your tubing is what supports the weight of the pump, and we attach the cable to the tubing,” he explains.

For wells with carbon dioxide he notes, “We have gas separators to get rid of gas so that the pumps can

x

p

a

n

s

i

o

in a way, because unlike rod pumps or progressive cavity pumps, there is an electrical connection running downhole.

This allows telemetry to be sent up the VFD, with sensors monitoring things like motor temperature, intake pressure and intake temperature. “If the motor goes down, you can shut it down to protect your motor” he says. ɸ Page B9

A Wood Group ESP (Canada) setup installed south of Weyburn.

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handle the fluid more efficiently.”

It is possible to have multiple pumps in a setup. “The most I’ve seen is three, but you can have more,” Bell says.

On the surface, a white box the size of a refrigerator known as a Variable Frequency Drive, or VFD, supplies power to the pump.

ESPs can be considered ‘smart pumps,’

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Environmental

PIPELINE NEWS December 2009

B9

Sometimes you need specialty pumps ɺ Page B8 The unit can be tied into a supervisory control and data acquisition, or SCADA system for remote control of the well. Trip points can be set to shut down the pump if the production declines to a level where the equipment is at risk, or the motor temperature is too high, for instance. “Without a down hole sensor, you’re limited by underloads for protection” Bell says a way of finding out what is going on down hole.

Often an ESP will be put in after a well is depleted from normal rod pump applications, Bell explains, “or right off the bat, if they know the downhole pressure and inflow is high, they’ll put a submersible in.”

Wood Group works with two major clients in the area, one concentrated in one region, and the other spread out.

Bell sees a trend to

higher capacity pumps. he says. Capacities can “A normal pump out run from 460 to 3000 here is 1,500 bbl/day,” bbl/d, but it is possible

higher water cuts, due to he explains. water injection , and the Bell has got ‘rider’ gas handling abilities” written all over him, but he doesn’t drive a Harley.

Instead, his wheels are a Suzuki C-90. He and a group of buddies are converting an old school bus into a toy hauler so they can take their bikes down south to ride in warmer climes during the winter months. “I never take my plates off, just in case it’s nice.”

The job has kept him pretty busy, however, and he doesn’t have the opportunity to ride as much as he likes.

Bell’s coverage area is much of southern Saskatchewan, as far west as Swift Current.

From there, staff in Brooks typically handle anything further west.

While he’s the only person for Wood Group handling this region, he has backup for days off and the like. “From Weyburn, east, is where most of our work is in A spool truck is an important part of ESP installations, carrying the cable which runs downhole to Saskatchewan.” the pump.

to go beyond that.

“A couple reasons to run submersibles are the

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B10

PIPELINE NEWS December 2009

Not just for sand: PC pumps Estevan – Progressing cavity pumps may be the standard in the heavy oil producing areas around Lloydminster, but in southeast Saskatchewan, Kudu Industries has adapted the technology to accommodate high flow, high water cut wells.

Tony Sernick, branch manager for Kudu in Estevan, explains, “Our main market in southeast Saskatchewan makes it different from Lloydminster. They are heavy oils, sand laden. “We’re pumping light oil with high water cuts.”

How high?

“Ninety per cent plus is probably 90 per cent of our business,” he responds. “That’s the biggest difference.”

“Here, we’re used as a high volume, high water application.”

Screw pump Progressing cavity pumps, also known as screw pumps, according to Sernick, act like an auger. The pump itself if quite simple. The inside of a metal tube is lined with an elastomer stator. The center of the stator has a helix cavity running through it from end to end.

The rotor, a chromed metal rod that is also in

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Mike Ross removes protective coverings from a progressing cavity pump rotor.

a helix, turns within the stator, like an auger. As the name implies, it rotates, why the stator remains stationary.

“The rotor is located on the bottom of the rod string, the stator is on the bottom of the tubing string,” Sernick says.

In heavy oil applications, the stator will be of a softer elastomer, allowing for more abrasion of the sand. In light oil, high water cut applications like in the southeast, Sernick says the elastomer is “almost as hard as glass.”

Specifically, the company has an elastomer referred to as the “204” designed in the mid-1990s for light oil production in southeast Saskatchewan,

he explains. The company has been working in Estevan since 1993.

They also use a different type of coating for the rotors to handle the corrosive environments of light oil.

While he notes they have pumps in all formations, the Tilston is the main formation Kudu pumps are used in in the southeast.

“It has the highest water cut,” he says, noting it can be as high as 98 or 99 per cent water. In cases like that, it may be uneconomical to operate a pumpjack or electric submersible pump, according to Sernick. “The big thing about PCP is it uses half the power of other artificial lift systems,” he says.

So why hasn’t it caught on like wildfire?

“A pumpjack is what producers are most familiar with,” he replies. “The PC system with light oil is still being accepted in the industry.”

“We’re currently getting our feet wet in the Bakken,” he says. Right now, the main use in Bakken wells is for sand cleanup after the well is fracced. The operator will then go back, pull the PC pump, and install a conventional style pump.

Laid side by side, the rotors of a pump destined for the Bakken, and another for the Tilston or Alida formations, are substantially different. The Bakken pump is shorter - 5 m, and has a tight helix. It might put out 30 cubic meters a day, but a large portion of that will be oil.

The Tilston pump might put out 600 cubic metres a day. The pump is longer, at 9 m and the helix is much more stretched out. Of that 600 cubic metres, only a small percentage will be oil. ɸ Page B11

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Acceptance still being garnered for PC pumps says.

Kudu branch manager Tony Sernick hams it up for the camera, pointing out a drive unit.

ɺ Page B10 Similarly, a typical Lloydminster area pump might turn at an average 100 RPM and put out five to 10 cubic metres.

The Tilston pump in the southeast would spin at 400 to 500 RPM and produce 100 to 400 cu-

bic metres a day.

The higher capacity pump would use a torque anchor instead of a tension anchor.

“We’re moving more fluid at higher RPMs,” Sernick says when asked about the challenges of adapting the technology to the southeast.

In Virden, Manitoba, it’s sometimes joked the producers there should be called water utilities, since they deal with such high water cuts. It’s an area Kudu is now targeting. “Basically, within the past year, we’ve been moving into the Manitoba market,” Sernick

POC A recent innovation is the pump off controller, or POC. “Basically, a PCP’s biggest enemies are heat and running dry,” Sernick says. “The wellbore will only give you so much.”

Pull too hard, he says, and the pump will run dry.

A POC has a fluid meter on the wellhead, and communicates with the Variable Frequency Drive (VFD), the electronic control box that operates and supplies power to the drive unit on the top of the wellhead. The VFD will then slow down or speed up the pump, ensuring it doesn’t run dry.

“We’ve had it out for two years, but have been going pretty hard for the past year,” he says of the

POC. Before this innovation, they had to rely on fluid shots and optimizing the well manually.

“With the new system, the well gets 24 hour attention.”

A remote application, he notes, “You can control it right from your laptop in the office.”

The system lightens the load for field operators, according to Sernick.

Kudu is focussed on one thing – PC pumps, according to Sernick.

“Our competitors are supply stores, pushing pumps out the side door.

Our sole business is progressing cavity pumps.”

The inside of a progressing cavity pump stator is lined with an elastomer that forms a helix inside the pump.

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PIPELINE NEWS December 2009

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PIPELINE NEWS December 2009

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CSI’s oil¿eld crime ¿ghting initiative gaining ground Inspector Kevin Hill uses an ultraviolet light to look for defects in parts of a mud motor.

By Geoff Lee Lloydminster –ConocoPhillips Canada, Flint Energy Services Ltd., Conex and Carson Energy Services are among a growing list of companies to take part in an Oil Field Asset Protection Initiative launched by Secure Identification Corp. in Red Deer last summer to deter theft of assets.

“We had to wait until the end of September when everyone got back from their summer holidays and resumed their association meetings and what not,” said Liard McLeod, CSI’s vice-president of sales and marketing.

“In the past few months, we have introduced the initiative to national energy security professionals as well as oil sands security professionals and the concept of an industry-wide program was met with very positively.

“Several small companies including Gilliss Power Tongs, Dangstorp’s Enterprises, and Independent Well Services are also launching pilots. We have been able to speak with a number of different companies.”

CSI is a Canadian-owned security technology company launched in 2007 to address the growing need to solve the worldwide problem of vehicle theft and identification, asset management, as well as counterfeiting of brand name products.

The Oil Field Asset Protection Initiative is focused on using technology such as their I-DOT Microdot Security and Recovery System to deter internal and external theft.

CSI’s microdots are identifiers as small as a grain of sand and encoded with an identification number identifying the registered owner of the marked property.

A vial of I-DOT microdots manufactured by CSI in Red Deer contains up to 1,000 microdots. The microdots can easily be applied to oilfield assets with a clear adhesive and can only read using a magnifying viewer and UV black light.

Police only need to find one I-DOT microdot to positively identify the asset.

CSI’s microdot security and recovery system also comes with “I-DOT Protected” security warning labels that can be placed at the entry points of a compound, lease site or vehicles. ɸ Page B14

Secure IdentiÀcation Corp. is making inroads with its oilÀeld theft prevention campaign marketing its I-DOT microdot technology.

Photo submitted

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PIPELINE NEWS December 2009

Theft from one ¿eld 'reduced to zero': CSI ɺ Page B13 A corporate starter kit with 1,000 microdots including warning labels retails for approximately $69.95 and can be ordered online.

“We’ve had enough production to satisfy the amount of microdots that the energy sector has purchased to date,” said McLeod.

“I believe before everything’s said and done that before next spring there will be more energy companies using this technology than not. We are confident in our ability to satisfy that market.

“I am speaking with a number of companies who are going ahead with pilots or to get an outright corporate commitment to participate in an oilfield initiative utilizing technologies like microdots and other ones in an industry-wide effort to reduce theft.

“The difficult of marketing the initiative is getting security directors and their field supervisor in the same room and on the same page,” said McLeod.

“It’s been somewhat of a time-consuming process but we’ve been positive in the results that we’ve had.

“We haven’t shown it to anyone who hasn’t recognized the deterrent ability.

The cost effectiveness of it makes it affordable for companies to run a pilot and see for themselves.”

“It means quite a lot to our company that we are finally getting the recognition that it can work here like it’s worked in dozens of other countries around the world as a true theft deterrent.”

As reported in the July issue of Pipeline News, Encana was the first major oil and gas company to use CSI’s microdots as an effective way to mark everything from solar panels to tools and equipment.

“They were averaging up to 10 asset thefts per month in their Foothills area and with very little promotion and or awareness, have seen theft from one particular field reduced to zero,” said McLeod. “They haven’t seen a theft since the implementation of micro-dots.”

ConocoPhillips followed suit with their own pilot and CSI’s Oil Field Asset Protection Initiative has been gaining converts every month.

“We continue to have a problem with theft of tools and equipment in some of our field locations in Alberta and British Columbia and were looking for an effective way to mark our assets for recovery and also to deter future thefts,” said Roger Monette, security director for ConocoPhillips.

“We heard about CSIs initiative and we decided to launch a test program using CSI’s microdots technology near our well sites in Drumheller.

“It’s worked very well in that our rate of theft has gone down noticeably.

We will expand the program to our other high risk locations.”

Monette also heads Calgary Crime Stoppers which has added its endorsement to the Initiative.

More organizations and companies are likely to participate as the word spreads of who is on board.

“I will be meeting with several major companies such as Suncor, Syncrude, Nexen, and CNRL in the coming weeks,” said Liard.

“As well, I expect to hear back from Penn West, Apache, HSE, and Precision Drilling with whom we have already met regarding the initiative.”

Crime Stoppers in Saskatchewan and Alberta reports thefts of everything from diesel fuel from construction sites to vehicles, tools, heaters and generators stolen from drilling rigs.

“There really isn’t any sector of any industry that isn’t been affected by theft or experiences losses due to theft,” said McLeod. “The preventive nature of microdot marking does greatly reduce or eliminate theft.

Microdot vehicle marking started in Australia in 2001, where police records report that the number of stolen microdot marked vehicles fell by as much as 86 per cent over vehicles that were not protected by microdots.

“Oil companies are saying they want to mark assets and generate any kind of media exposure as well as awareness within their own companies that their assets are protected by these tiny identifiers,” said McLeod.

“They are saying ‘if stuff goes missing, we can positively prove it’s ours.’”

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PIPELINE NEWS December 2009

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PIPELINE NEWS December 2009

PIPELINE NEWS December 2009

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

Pipeline News would like to thank the following companies for their continued support in 2009.

3D Enterprises Ltd. A & A Jewellery A&S OilÀeld Operating Ltd. Absolute Daylighting Absolute Locating Acklands - Grainger Inc. Action Towing & Recovery Service Acutec Systems Ltd. Adoil Inc. Aero Advertising AGAT Laboratories AGI Envirotank AJP Line Locating All Weather Shelters Inc. Alliance Drilling Fluids Ltd. Allomatic Transmission Clinic Altus Geomatics AM Inspection Annugas Compression Consulting Apex Distribution Inc. Apex OilÀeld Services Art Concepts Custom Framing Artisan Consulting Services Ashland Industries Astec Safety Services Astro Boilers Automated Tank Manufacturing Inc. B&B OilÀeld Hauling B.J. Services Canada Back Alley Upholstery Badger Daylighting Baker Hughes Petrolite Bandit OilÀeld Hauling Batchwell OilÀeld Services Bear Slashing Bearing and Transmission Beretta Pipeline Construction Ltd. Bert Baxter Transport Ltd. Best Western Wayside Inn & Suites Big Country Energy Services BJ Tool Services Ltd. Blackies Coring Services BMO Bank of Montreal BMW Products & Services Border Tank Rentals Ltd. Borets Weatherford Boyd Excavating Ltd. Brady OilÀeld Services LP Brake & Drive (Estevan) Systems Brenda Noble Bren-Kar Transfer Ltd. Brightling Equipment Ltd. Brock White Canada Company Brothers Coating Bruce Pristie Holdings Brutus Truck Bodies

Bully Blast Paint & Service C&N OilÀeld Maintenance C&R OilÀeld Mtn Ltd. C.E. Franklin Caltech Surveys Ltd. Cameron Agencies Can Elson Drilling Canadian Advance ESP Inc. Canadian Custom Carts Canadian Sub Surface Energy Services Canalta Hotels Canasonics Inc. Cantool Industries Corp.

Capital West Finance Leasing Corp.

Cara Dawn Transport Ltd. Carlyle Housing Authority Carlyle Motor Products Carnduff Electric Carson Energy Services Ltd. Castlerock Construction Cathedral Insurance Broker Catwalk Services CB Trucking Ltd. CEDA Champion Technologies Chasing the Dragon Chemicals By Sterling Choice OfÀce Products Cinlor Industrial Solutions CJS Coil Tubing Classic Jewelers Cliff Nankivell Trucking Cold Lake Ford College Park Motors Colored Shale Products Inc. Command Energy Services Commercial Capitol Inc. Common Wealth Centre Conn Pumps Consolidated Utility Services Cromer Valley Construction Crown Advertising C’s OilÀeld Consulting & Construction Cummins Western Canada Custom Canadian Homes Custom Truck Sales Inc. D & D OilÀeld Rentals Dana Fire Trucks Inc. Dana Construction Ltd. Danatec Educational Services Ltd. Dancin’ OilÀeld Services Dangstorps Services Ltd. Dash Tools Davidson Truck & Tractor Daxx Safety Associates Day Construction Ltd. Dayman Trucking Ltd. Days Inn Del’s Commercial Printing Demby Trailer Rentals Dempsey Laird Trucking Dex’s Sandblasting and Painting DFI Diamond B Transport Ltd. Do All Metal Fabricating

Dominion Lending Centre Don’s Tire Shop Don’s Towing & Transport Don’s Speed Parts Doull Site Assessments Ltd. Dow Trucking DPS Microbial Solutions Dreco Energy Services Ltd. DT Planetaries Inc. Dupre Boilers Ltd. Dustin Duncan MLA Dwight Blomander Eagle Drilling Services Eagle OilÀeld Services Ltd. Edge OilÀeld Services Edmonton Trailer Sales & Leasing Edward Jones Elias Scales Elotech Holdings Ltd. Eltek Supply & Service Emjay Enterprises Enbridge Pipelines Endeavor Machining Endurplas Energy City Overhead Door Ener-test Well Servicing ENFORM Enseco Enery Services Corp.

Ensign Rockwell Servicing Enviro Vault Canada Ltd. EPIC Environmental Technologies Equal Transport Ernie’s Coffee House Estate of Gervaise Millette Estevan Meter Service Ltd. Estevan Plastics Products Ltd. Estevan Telephone Answering Service Estevan Trophy and Engraving Eveready Energy Exhaust Masters Lloydminster Factors Western Fast Trucking Service Fastenal Fiberglass Solutions Fibrespar Corporation Find It Locators Ltd. First Truck Centre Flaman Sales & Rentals Fort Garry Industries - Lloydminster Four Season’s Sales Four Seasons RV Frater’s Place Frontier Peterbilt Sales Ltd. FRP Manufacturing Full Throttle Hot Shot Services Fusion Industries Ltd. Future Signs G.T.H. Holdings Garrison Oilwell Servicing Gee Bee Construction Gibson Welding Girard Bulk Service Glen Peterson Construction Global Steel Ltd. GNS Industrial Trailer Services Ltd. Goodon Industries Ltd.

Gordy’s OilÀeld Gosselin Pipe & Steel Grasslands Recruitment Specialists Great Plains College Great Western Tongs Grenco Industries Grimes Well Service Guest Controls (2001) Ltd. H&L Repair Hancock Petroleum Hank’s Maintenance Hard Shak Structures Harley Davidson of Yorkton Heating Solutions International Inc. Hei Bro Tech Petroleum Service Henderson & Butt Appraisal Consultants Ltd. Herman & Kevin Lackey Auctions Hess Fishing & Rentals Hesterman Technical Services Home Hardware Building Centre Hornoi Leasing Ltd. Hot Tools House of Stationery Houston Pizza How 2 Energy Ltd. Hurricane Industries Hyduke Energy Services Inc. ICI ArtiÀcial Lift Solutions Inc. Ideal Autobody Independent Pump Co. Industrial Electric Ltd. Inspirations By Color IRSS - Industrial Radiography Supplies & Services Inc. J.J. Trucking Ltd. Jamal Contracting Inc. Jays Welding J-Dub OilÀeld Services Jim Pratt – Investors Group Johnson Plumbing & Heating Johnstone Tank Trucking JR LTL Services JuneWarren – Nickle’s Energy Group K & D Truck Parts Ltd. K & R Movers K.Kenn Industries Kal Tire Kamps Korner Gas XTR Kandrea Insulation 1995 Ltd. Kapell Agri-Motive Kash Downhole Anchors KBY Hotshot Services Ltd. Kelly Lafrentz Trucking Ltd. Kendall’s Auto Electric Kenilworth Combustion KenLar Insulations Kennedy Welding Ltd. Keystone OilÀeld Kisbey Rink Klaws Trucking Inc. Korey Stonehouse Kramer Ltd. Kudu Pump L&C Trucking L.D. Allan Enterprises Ltd.

Lampman Autobody Lampman Electric Land Solutions Inc. Lane Land Services Ltd. Langbank Co-op Leclair Transport Ltd. Len Grant Lener Holdings Level Best Technologies Lloydminster Chamber of Commerce Lloydminster Paint & Supplies Lorna Pylychaty Lougheed Welding Lynco Construction Lynn’s Trucking Lynx Transport Ltd. M.E.T. OilÀeld Construction Magellan Resources Ltd. Mainline Insurance Brokers Manitou Flushby Maverick Construction Maverick OilÀeld Services McComb Automotive Supply McDiarmid Lumber Ltd. McGillicky OilÀeld Construction Ltd. McMillian Motor Products Merchant Law Group Metaltek Machining Metra Equipment Inc. Mi Swaco Michael Chisholm MLA Mick’s Stop N’ Shop Midale Petroleums Ltd. MidÀeld Supply Midwest Surveys Inc. Millennium Directional Service Ltd. Millennium Land Ltd. Milligan Bio-Tech Minard’s Leisure World Mission Hot Shot Moody’s Equipment Moose Mountian Mud Morley Muldoon Transport Ltd. M-R-Pets Mryglod Steel & Metal Muscle Beach Mustang Controls NAL Oil & Gas Trust NATCO National Oilwell Varco National Trailer Parts Nelson Homes New Drill Generators Newco Tank Corp Nexen Inc. Nimegeers Schuck Wormsbecker Bobbitt (NSWB) Nootka Island Lodge Norbert’s Manufacturing Ltd. Norberts Manufacturing Ltd Norcan Fluid Power North West Regional College Northern Factory Workwear Northridge Energy Development Group Northwell Rentals

Northwest Tank Lines Inc. OilÁow Solutions Inc. Oilwives Club of Estevan OJ’s Leisure & Marine Old Fashion Foods Oliver Transport Outlaw OilÀeld Hauling Ltd. Oyen Welding & Machining P B & J Safety Consulting Packers Plus Paint Earth Energy Services Pangea Engineering Parasolve Parkside OilÀeld Services Ltd. Peak Energy Services Peddler Consignments Penn West Penta Completions Percy H. Davis Cstom Brokers Petroleum Society Lloydminster & District Heavy Oil Section Petroleum Technology Research Centre (PTRC) Pink Ninja Pinnacle Industrial Services Pipe Hustlers Casing Inc. Plains Environmental Inc. Point Gray Contracting - Truck Wash Pongo Holdings Ltd. Poplar Services Ltd. Power Tech Industries Prairie Breeze Limousine Services Inc. Prairie Mud Service Prairie Petro Chem Prairie Rat Hole Services Ltd. Prairie Western Reclamation Precision Geomatics Inc. Precision Well Servicing Pro Line Locators Ltd Prodahl Environmental Services Protrac Gear PS Electric Ltd. PumpJack’s Saloon & Steakhouse Purr-fect Dry Cleaners PWM Steel Services Ltd. Pyramid Corporation R. French Transport R. J. Hoffman R.L. Electric R.M. of Estevan #5 Racken Enterprises RBC Dominion Securities Re/Max Progressive Realty Rec - Tech Power Products Red Dog Drilling Inc. Red River Lumber Redhead Equipment Redline Well Service Redvers Oil Show Regal Ridge Regens Disposal Ltd. Reliance Industrial Products Reliance Safety & Supply Renegrade OilÀeld Richard’s Welding Richardson’s Jewellery -

Lloydminster Ridgid OilÀeld Services Rig Spec Rig Works OilÀeld Solutions Rocky Pine OilÀeld Services Rogers Well Service Ron’s the Work Wear Store Rough N Tough Power Sports Rotex Energy Royal Camp Services Royal LePage RP Automotive Inc. Sabre Machining Safe-Tee Management Safety Source Sam’s Trucking Saskatchewan Trucking Assoc.

Savanna Well Servicing Scene from Above Aerial Photography Schlumberger Canada Ltd. Scott Land & Lease Sebco Coring Ltd. Senchuk Ford Sales Ltd. Serenity Yoga Studio Shellshock OilÀeld Services Ltd. Sholter Horsman Furniture Siever Vermeerch & Fonstad Silverback Hydrovac Services Silvermoon Inn Simark Controls SKL Trailers Smoke ‘Em Diesel So Handy Sonar Inspection Sonic OilÀeld Services Source Energy Tool Services Inc. South Sask. Rathole Southeast Environmental Southeast Regional College Southeast Tree Care Southern Bolt Supply Southern Corrosion Control Southern Industrial & Truck Southern Plains Co-operatives Southern Range Well Servicing Spearing Services L.P. Spectra Financial Berkshire Spiral Lift Tools Ltd. Steam-Est Industries Ltd. Stellar Signs Stewart Steel Stoney Mountain Rentals Ltd. Stream Flo Industries Ltd. Sun Valley Land Ltd. Sunbelt Sunbelt Business Brokers Superior Propane Supreme OilÀeld Construction Suretuf Containments Svein Bryeide Construction Swayze’s Concrete Ltd. T & T OilÀeld T.K. Trailers Talisman Energy Tall Rig International Tanner Trucking & Bit Services

Target Safety Services TARPCO Tarpon Energy Services Ltd. Tartan Controls Inc. Taz Well Servicing Ltd. Teran Enterprises Ltd. Terry Germain – Century 21 Realty Three Star Environmental Three Star Trucking Thunder City Power & Leisure Tina Doyle Titan Logix Corp.

Titanium Tubing Technology ltd TJ Systems TNT Tank and Trailer Sales TOMCO Production Services Ltd Total OilÀeld Rentals Totem Drilling Town of Kipling Town of Macklin Town of Provost Trans Canada Truck Wash Transco Energy Services Ltd. Tremcar West Inc. Trent’s Tire Tri Star Oil & Gas Trican Well Service Trilogy OilÀeld Ltd. Tri-Smith Holdings True Torq True Torq Power Tongs TS&M Supply TSL Industries Turnbull’s Excavating Ltd. United Centrifuge Universal Consulting Group Universal Contract Logistics Varsteel Ltd. Viking Surplus OilÀled Equipment Village of Kitscoty Wally Lorenz - Re/Max of the Battlefords Watts Communications Weatherford Weatherford Wireline Services Wedgcor Steel Buildings West Steel/Northern Steel Western Star Trucks North Ltd. Weyburn Oil & Gas Show Wilhelm Construction Service Wil-tech Industries Winalta Homes Inc. Wolfe Equipment Sales Wood Country Xtreme Oil Tools

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PIPELINE NEWS December 2009

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NOV MonoÀo launches new coilable PC pump Lloydminster – NOV Monoflo is launching its largest coilable PC pump in time for Christmas.

“It’s on sale right now,” said George Walker, technical sales manager for Canada. “We are ready to put it out in the field and do some field testing right away.”

The new 40-series pump won’t come gift wrapped, but it is made to order in two models configured for light to medium or heavy oil applications. Both models can pump 40 cubic metres a day at 100 rpm.

The field test unit is a 40-1500 series pump that features a 3.5-inch OD barrel allowing it to be used in 4.5-inch OD casing.

“That makes it nice for a lot of customers in the Lloydminster area,” said Walker. “Most of the fields around here have 7-inch to 4.5-inch OD casings on their wells.”

With the rotor removed, a flushby can run ¾ inch coil through the stator to clean out sand with having to remove the pump.

“The coiling benefit allows you to keep the pump running longer because you are cleaning the sand from the intake of the pump,” explained Walker.

The 40-series pump can be used in conjunction with NOV Monoflo’s own No-Go tag system, eliminating flow losses and extra connections.

Walker says the idea for the high volume PC pump came from his customers who were looking for larger volume pump that they could coil by.

“Producers are look-

ing for new technology to solve issues,” he said.

“With bigger pumps they are looking for ways to clean out sand from the pump intake area.”

The new 40 series pumps for light to medium oil applications feature an OB high nitro elastomer and an RR buna elastomer for the heavy oil pumping.

The new pump was designed and manufactured at NOV Monoflo’s pump manufacturing plant in Manchester, England. Their PC pumps are also made in Argentina.

Like all NOV Monoflo PC pumps, the 40-series works on the principle of a single helix rotor revolving eccentrically within the double helix of the stator.

The motion cre-

ates a continuous cavity that progresses towards the discharge end of the pump as the rotor spins.

The pump design is ideally suited for both low to high-flow applications and also allows for the development of multi-stage pumps that increase the pressure handling capabilities.

“Going forward we are going to focus on bringing new designs to the marketplace with customers’ input,” said Walker.

“That’s our five-year plan to come up with new designs of pumps and driveheads and bring them to the marketplace.”

Mike Sarrazin, a PC pump foreman grips a rotor set up for a bench test. Photo by Geoff Lee

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PIPELINE NEWS December 2009

Weatherford pump to surface system an effective niche product Lloydminster – Weatherford’s continuous pump to surface system (CPTS) is gaining sales momentum in heavy oil markets with its ability to pump large volumes of fluids and sand.

“The pump is a niche product for the oil and gas industry for situations where you are dealing with sand issues, sand slugging and rod fall issues,” said Stacy Walker, business development manager for Weatherford Artificial Lift Systems in Lloydminster.

“It’s been going good.

Of course, last year in the recession, everything was down, but just in the last four months we are seeing a huge uptick in pump to surface activity.

We have a great feeling about 2010 that we will get back on track.”

The Weatherford CPTS is marketed as a rodless production system designed to handle

large volumes of fluids in wells with a variety of adverse conditions.

“The nature of the CPTS system is for wells that are struggling with sand issues,” said Walker. “Other production pumps might not be able to handle the volume of sand going through those types of pumps.”

The CPTS pump is anchored downhole and the tubing is continuously reciprocated by a variable speed hydraulic unit to pump fluids along with solids up the work string and into a production tank.

“On the upstroke, it fills the barrel and on the downstroke, it pumps it into the upper tubing string. The tubing is driving the downhole pump via a hydraulic unit,” said Walker.

“In a reciprocating rod pump, the rods are stroked inside the tubing and in a pump to surface system, the tub-

ing is stroked inside the casing without rods.”

The major parts of the system are the anchor, the downhole pump and valves including a standing valve and a travelling valve, a modified scope tool, a wellhead assembly and a variable speed hydraulic stoking unit.

The main application of the CPTS is for overcoming sand slugging but it’s also proven to be an effective tool for gas de-watering and for cleaning sand from troublesome wells before installing a progressive cavity pump.

It can also be used in thermal applications, coal bed methane wells, removing sand frac and for wells with rod break issues.

“The success we are having with the system is using the right equipment for the application,” said Walker. ɸ Page 21

Weatherford’s variable speed hydraulic pumping unit for heavy oil applications.

Photo submitted

PIPELINE NEWS December 2009

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Continuous pump to surface systems are beginning to gain momentum ɺ Page 20 “We have numerous sizes of pumps and anchors so depending on the casing size, the tubing size, the well volume, the gas, the sand and the debris, we can tailormake a pump to surface application to fit a specific customer’s needs.

Each well gets its own design to suit the particular characteristics of Another one of Weatherford’s variable speed hydraulic pumping unit in ac- that well.” tion.

Photo submitted Pump to surface

equipment has been available since the 1980s and the first practical continuous pump to surface applications for oil and gas production were introduced around the year 2000.

Walker and a former business partner, Brad Burns owned SOS Oil Tools in 1995 and developed their commercially successful SOS CPTS using a hydraulic stroking unit to reciprocate the entire tubing string.

“When this technology started to take off, Weatherford acquired SOS in 2006 and brought us over,” said Walker. “The pump to surface production system is now in Weatherford’s arsenal of artificial lift pumps.

“It’s been good.

Weatherford has opened the door for a lot of new clients and has brought the pump to surface pumping system to different oil and gas areas.

“Due to our location, engineering and technical support, we are finding the CPTS industry is growing throughout the heavy oil area.

“It is now been close to a decade and it definitely has a footprint and is understood by industry in our heavy oil regions.”

Weatherford CPTS has proven to be an effective tool by oil and gas companies in countries such as Indonesia, Columbia, Trinidad and Tobago, California and Utah in the United States.

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B22

PIPELINE NEWS December 2009

Tanroc builds a following with

Shane Stafford uses this display board to market Tanroc’s line of PC pumps.

Story and photos by Geoff Lee Lloydminster –Tanroc Equipment Limited Partnership in Lloydminster is carving a niche for itself in the heavy oil progressing cavity (PC) pump marketplace with a focus on providing products and services that help clients meet their production goals.

“Manufacturing and retailing PC pumps is all we do,” said Shane Stafford technical sales manager.

“We don’t sell wellhead drives or skids or pipes, valves and fittings. All of our efforts and research and development money goes toward improving

pumps.”

Tanroc pumps range from a capacity of 7 cubic metres a day to 332 cubic metres a day at 100 rpm and feature unique elastomer compounds for longer run life in a wide range of operating conditions.

Tanroc’s flagship 8, 12 and 18 series PC pumps, for instance, are specifically designed for heavy oil applications with proven elastomer technology for a dependable long running pump. They are offered in various lift sizes.

“Basically, they have an aggressive geometry that is beneficial for heavy

oil,” explained Stafford. “The leads on the rotors are quite tight. That’s what I mean by aggressive geometry.

“It almost looks like more of an auger. That’s what is effective in producing high sand cuts in heavy oil applications.

“The intake size becomes much larger which helps inflow into the pump in heavy viscous applications.”

The heavy oil geometry pumps are capable of creating a lot of lift without becoming too long. Extra lift can help to reduce the stresses on each stage of the pump.

“If you want to create 1,800 metres of lift with a Tanroc 8, 12 or 18 pumps it will be about half as long as the standard geometries,” said Stafford.

Since Tanroc was launched by Chris Carr and Glenn Schneider a little more than three years ago, their share of the competitive PC pump market has grown from virtually zero to sales of more than 8,000 pumps.

To meet demand, the company has opened shops in Bonnyville and Wabasca in Alberta and sells to the international market.

“We have grown quickly and customers have understood and appreciated some of the programs and some of the new products that we are bringing to the market,” said Stafford.

“We have a program called the Tanroc rotor inventory program which allows us to better manage our custom-

ers’ inventory. We are always trying to find new ways to stand out and be innovative.”

Portable inspection Tanroc scored a competitive coup with the introduction of a mobile pump testing shop called the Portable PCP Inspection Unit.

The unit is capable of cleaning, boroscoping, stator slabbing and testing pumps while on location.

The mobile trailer is equipped with a computer, wireless printer and Internet service to send test reports to the consultant and customer before the next pump is installed.

The service allows the engineer to have all of the information required to make an informed decision about what geometry, efficiency, accessories and downhole services should be installed and performed.

“The portable PC pump inspection unit has helped to improve our relationships and communications with our customers and makes us a little bit more valuable in helping them improve their run times,” said Stafford.

“You can bring the unit on site and you don’t need to shut the rig down since the tests can be done in 20 to 40 minutes.

“It gives you instant information without incurring rig time or guessing what the rate failure reason was on the pump. ɸ Page B23

PIPELINE NEWS December 2009

B23

heavy oil PC pump services ɺ Page B22 “If we came out to site and there was a relatively short run life of the pump and the failure was due to fluid wash, we could recommend tightening up the pump (going more efficient) or we could recommend going with a higher lift and take a little bit of load off of each stage of the pump.

“If we find pyrite, we might recommend bailing or running a screen. There are several changes that can be recommended based on the findings of the pump test results.”

“Based the test results, we make recommendations that will extend the run life for the next pump that is going in the hole.”

The portable test unit allows Tanroc and their clients to take a proactive approach to pump selections and decide whether they should upsize, downsize or change the lift capacity or efficiency of their pumps.

“Run life is the main concern for customers,” said Stafford. “There are a lot of abrasive conditions downhole in heavy oil so customers are always looking for new coatings for rotors to or new elastomer compounds to improve run life.

“We also help customers with some infield training so operators are aware of what they can do to improve run life.

“We work closely with clients and have come up with a few inventions over the last few years.

“We have developed a couple of new elastomers and the heavy oil pumps were built for some specific heavy oil applications in the area.”

Tanroc’s best selling pump is the traditional 15 series followed by the Tanroc 12 series pump that Stafford says, “seems to be where a lot of producers need their volumes to be while offering a design that helps them produce under the most difficult conditions.

“It provides a lot of benefits in those difficult applications where there is high sand and low viscosity heavy oil.”

Tanroc takes its rotors and stators and welds them to lengths at the Lloydminster shop to suit their customer needs. The shop is also equipped with a variety of bench testing equipment.

“We basically time and phase the rotors and stators to the lifts that our customers need,” said Stafford. “We send out our rotors for chrome in order to meet the efficiencies we need. We will put all those together into a finished product in the shop.”

Machinist Quin Goleman operates a lathe to thread a stator.

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B24

PIPELINE NEWS December 2009

Weatherford coach psyched for the Saturday morning game

By Geoff Lee Lloydminster – Dwayne Rhinehart gets to relive his hockey youth one Saturday at a time while experiencing his son’s life and times at the rink.

The 37 year-old father and coach of a novice hockey team in Lloydminster that his son Rhett plays on can’t wait for the alarm clock to go off on game day weekends.

“I remember when I was a kid there was nothing more exciting on Saturday than game day,” said Rhinehart.

“As a parent, coach and father it’s still exciting for me on Saturday mornings. I am up bright and early. It’s exciting to go the rink. Nothing’s changed.

Whether you are in a different role – it’s still exciting.

“My son loves the game too and he does very well at it. I am glad he likes as much as I like it.”

Rhinehart is an operations manager for Weatherford entering his fourth year of coaching local minor hockey and his second season with the novice team.

The team is sponsored by Royal Well Servicing Ltd., owned by Ken Parohl, whose son Parker who also plays on the team.

This year, there are 10 novice teams with players age six to eight who are learning the game through skill development playing two games a week but not in a structured league.

“At their age we don’t tier so you have a major skill level difference,” said Rhinehart. “My philosophy Weatherford manager Dwayne Rhinehart coaches novice hockey in Lloydminster.

is to teach skills because you can’t teach position.

“It’s all about individual skills. We do a lot of pylon drills. Everything is with the puck. If you can’t skate with the puck, it’s ultimately pretty tough.

“It’s skill, skill skill, carry the puck and score as many goals as you can possibly score because it’s a shootout every night!”

When the Pipeline News caught up with Rhinehart on a game day Saturday, his team took to the ice at the Robert Holmes arena with the Weatherford logo at centre ice.

Weatherford paid $250,000 for the rights to name the rink in memory of Holmes, a former Weatherford BMW operations manager who was killed in a plane crash.

Supporting community involvement in minor hockey and sports teams seems to be the Weatherford way, a fact that Rhinehart says helps him to be a more productive employee.

“Coaching kids is just like parenting,” he said.

“There are some frustrating days but you take the positives from it and it makes you a more relaxed person at work.

“The odd time we will have a practice at 4:30 in the afternoon. I have never had an issue with Weatherford as far as leaving work.

“I travel a lot with work so I am gone. It’s a give and take world in business. It’s great publicity for Weatherford to be involved.

“I know there are a half a dozen guys in this shop involved in hockey at the minor hockey level. When it comes to sports Weatherford is very supportive.” ɸ Page B25

PIPELINE NEWS December 2009

B25

Some of life’s lessons ɺ Page B24 As an operations guy, Rhinehart manages people, inventory and the business side of the job. His focus is on production optimization through the management of electrical instrumentation and business software.

Weatherford is an industry leader in oil and gas production automation and control systems, providing complete engineering services for monitoring, control, telecommunications and safety.

“Basically the staff here is electrical-instrumentation based,” said Rhinehart. “I have four guys in Lloydminster who do installations and we have a full-time service technician in Estevan. Nearly 80 per cent of our business is in the Estevan and Swift Current areas.

“Instrumentation is a small side of Weatherford’s business in terms of the organization structure but it has a huge amount of growth potential. It’s a very good division and has positive upside the way technology is changing.”

Asked to describe how coaching and work go together, Rhinehart says the only difference between his employees and his young hockey charges is the level of maturity.

“You still have your problems at the rink and at work but you deal with it in a positive manner. Anytime you can get away from work and have a relaxing atmosphere you come back to work in a more positive

attitude too.”

Come Saturday though, Rhinehart is all business behind the bench and he admits he has to keep his own competitive work ethic in check as a former player.

Rhinehart played top level junior hockey for five years including two years with the Lloydminster Blazers, now called the Bobcats, in the AJHL and three years with the Flin Flon Bombers in the SJHL. Rhinehart also played briefly in the East Coast Hockey League and ended his hockey career aspirations joining the Estevan Bruins as a 20 year-old.

“It’s a lot of fun watching the kids but me being a really competitive person – that was something I had to really watch as a parent and a coach,” he said. “You have to watch how you do things because the competitiveness never really goes away.”

He says that applies to the kids he coaches too knowing there are players who want to win at all costs while others are just happy to be playing and getting the exercise.

He credits his own competitive work ethic on and off the ice to coaches such as Todd McLellan, the current head coach of the San Jose Sharks in the NHL, and Norm Johnston, who formerly coached the Regina Pats and is now coaching the Regina Pat Canadians.

Rhinehart says each coach he had as a young player had a different philosophy but they all taught the same thing that he imparts as a coach

– positive thinking and respect for the game.

“That’s an obligation of a coach at this age,” he said. “You teach kids to be polite and have manners. You teach life skills and little things like shaking hands at the end of the game and the good sportsmanship that should come with the game.”

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B26

PIPELINE NEWS December 2009

It’s rock and roll time again

Bob Bishop, one of the organizers of the 2009 Wainwright Oilmen’s Bonspiel who works for Baker Petrolite shakes hands with A- Event winners, Brad Johnson, Mark Rajotte, Dustin Small and Dallas Melin from team D & C Melin Trucking from Czar Alberta. Photos by Travis Smith, Harvest Energy.

By Geoff Lee

Organizer Bob Bishop poses with C-Event winners Chuck Matters, Debra Martin Fournier, Greg Lavergne and Colleen Cornish from Penn West in Wainwright.

Club. We are looking at doing just an oilmen’s spiel in Macklin in January.

“Interest was down in the oilmen’s so basically Lloydminster – The house will rock in 2010 at community curling rinks hosting oilmen’s bonspiels the curling club is taking it over. It will be a Macklin including Lloydminster, Macklin, Edam, Wainwright oilmen’s open bonspiel. I don’t have a date yet but and Unity but Provost has been struck off the list fol- people can call my cell at 780-753-0188.”

Stang is also the area manager of Tierra Alta in lowing the cancellation of the 2009 event.

“There was not enough interest,” said event rep Provost and he loves to curl in oilmen’s events.

“I have taken second or third a couple times and Ron Chopek who is also the general manager of Leachman Oilfield Trucking in Provost. “We can- I won about 10 years ago,” he said.

The bonspiel will help the club raise money to celled the 2009 tournament.”

The last time Provost hosted the event was Nov. help cover its high power bills and other operational 16-18, 2008 when Chopek helped to run it with expenses but he says donations are harder to come by teams from nearby Macklin where a replacement in these tougher times.

“Of course, we are down just like everybody. The bonspiel will take place in January.

“Macklin and Provost used to do one together,” oilpatch has definitely crashed,” he said. “The rink said Gary Stang, president of the Macklin Curling needs some upgrades. That’s why we are trying to

raise some money.”

The Unity Curling Club will host the 9th annual Oil Persons bonspiel Mar. 4-7 with up to $10,000 worth of prizes in four events.

Fees are $240 per team with spots for 32 teams and organizing rep Grant Huber from Huber Machining Ltd. suggests this is not an event to be skipped.

“Our past bonspiels have been an overwhelming success due to the great sponsorship by our local businesses and support from our surrounding oil and gas industry,” he stated in a promotional flyer.

In phone interview in mid-November Huber says, “no matter what, we seem to just keep putting it on. “Some guys from Provost come and curl in ours.

They say ours is the best around.” ɸ Page B27

PIPELINE NEWS December 2009

Oilmen’s bonspiels ɺ Page B26 “Entries were down a little bit last year. We had about 26 teams but we can handle 32. With the downturn it’s hard to say if we will get back to 32. It would be optimistic to do that. That would be great.”

“It’s pretty early, but donations are starting to trickle in. Usually, we get most of the donations at the first of the year.”

Huber says the annual event is good for local hotels and restaurants and raises funds for the curling club but no major improvement projects are in the works. “We did a whole bunch a few years ago.”

The seventh annual Maidstone oilmen’s bonspiel is slated for Mar. 11-12 and organizer George Bray says promoting it is a piece of cake.

“I get on the phone and I phone all the guys who were there before and hope that there’s one or two more show up and we usually fill it just like that,” he said.

“The oilmen’s bonspiels here have gone over really well the last six years. We have excellent ice and a good icemaker and the guys like to curl here.”

“I don’t know if this year’s going to be tougher the way the oil patch is but it’s worked before. The situation is there are people who come automatically.

“Last year, our numbers were the same as they always are but we didn’t have a waiting list like we had in years before.

“I think there were a few guys looking over their shoulder to see if someone was going to give them a pink slip. It was tougher last year with sponsorships but our bonspiel came off just fine.”

Bray says the fees should be around $200 per team but the entry is usually fully covered by sponsorships with profits going toward annual improvements of the rink.

“We are hoping to put in a new carpet,” said Bray.

“The other thing that will cost us a lot of money is a thing called a receiver that holds Freon. I am assuming it will come in around $2,000 or maybe more.”

The Lloydminster Heavy Crude Open Bonspiel will be played March 17-21 and organizing chair John Stanyer is hoping to top last year’s 80-team entry.

“Hopefully, we can at least get 80 again,” he said.

“We will try for 96 and if we don’t we will go with what we’ve got.”

When contacted at Weatherford where he works in inside sales, Stanyer said the first organizing meeting would be held shortly and says the number of entries will, “depend on what the climate is like.”

In the meantime, Stanyer is getting himself tournament-ready with his weekly league curling games.

The 14th annual Edam North of the River Oilmen’s Bonspiel goes ahead Feb. 18-20 and organizer Kevin Letwinetz who manages the local Weatherford shop is hoping to top last year’s 16-team roster.

“Last year, we were down in numbers. The last couple of years have been fairly slow,” he said. “At times were up to 32. Curling seems to be slowing down out here.

“In December, we will start to track down donations. Once we get organized we go forward. It brings in quite a few dollars and help local rinks. It‘s the big fundraiser of the year. We turn all of our profits back into our bonspiel.”

Entry fees are $280 and Letwinetz “it’s a fun bonspiel. We’re just there for a good time and socializing.”

The latest Wainwright Oilmen’s Bonspiel was held Nov. 6-8 and attracted 22 down from 28 in 2008 and 24 in 2007. In 2010 tournament will be held Nov. 5-7.

“We’re like the price of oil, said organization rep Bob Bishop who is a field manager for Baker Hughes.

“Everything went really well. We got a lot of support from local businesses. We are fortunate to work in an area where local business steps up.”

B27

Organizer Travis Smith from Harvest Energy congratulates D-Event champs Bob Bishop, Barr Humphreys, Dennis Gibb and Troy Belik representing team Baker Petrolite.

B28

PIPELINE NEWS December 2009

Giant SUV limo offers luxury rides to the coveralls crowd „ By Geoff Lee Lloydminster – Riding in a limo and watching one drive by incites feelings of celebrity status and envy that can translate into a business in demand.

That’s the thinking Chad Wenzel and his daughter Randi have launched an SUV limousine business for the Lloydminster jet set.

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of Chad Wenzel and his daughter Randi who launched Prairie Breeze Limousine Services Inc. in Lloydminster September 13 with visions of lifestyle careers in mind.

Currently, Chad works for Exhaust Masters in Lloydminster servicing oilďŹ eld motors while Randi is a local safety lead and an accounting assistance at MRC-MidďŹ eld – but for how much longer for these entrepreneurs is anyone’s guess. “Hopefully, it’s going to turn out where Randi can do it one of these days full-time and I will follow,â€? said Chad who is already entertaining thoughts of buying a second limousine.

The Wenzels’ quest is driven by this question – who wouldn’t want to ride to a wedding or a Christmas party and to a concert or hockey game in Edmonton or Calgary in a luxurious stretch limo?

Theirs is a unique 31-foot long 2005 Ford Excursion SUV limo that seats 13 in VIP comfort and style and a safe ride with winter tires. “Since we started, a lot of people seem to be fairly excited about the vehicle,� said Randi who handles the bookings. “We were at a bridal

show in October and since then I have had an unbelievable amount of wedding bookings. I will have absolutely no weekends left in July.�

Chad got his ďŹ rst taste of the excitement that a limo business can generate by taking a few trips in one with a buddy who worked as a driver. “It was a nice atmosphere,â€? he said.“You would be surprised how many people slow down, smile or wave – it’s just a whole dierent atmosphere. They can’t see who is in the back so the mind goes wandering.â€?

After kicking the idea around for a couple of years, he and Randi conducted an Internet search last August and located Limo Trader in Toronto that imported limos from the United States. “We contacted them and this (Ford Excursion) is the one they had in their yard,� said Chad who bought it for a bargain price in the recession. “It was a good time to buy,� he said. “It would cost $65,000 to buy it now.�

The vehicle was previously owned by someone in West Virginia and was exactly the rugged, low mileage SUV he and Randi wanted for the Lloydminster market and area roads. “This is an oil patch town,â€? said Chad. “I honestly think everyone has 4-wheel drive around here. The SUV kind of ďŹ ts in with the scenery around Lloydminster. There are lots of grease nipples and lots of driveshaft.â€?

Chad and Randi’s ďŹ ancĂŠ, Michael Schmaus ew to Toronto to make the purchase and drive it home, passing gawkers and rubberneckers galore. “We got pulled over by the cops about an hour and a half out of Toronto,â€? said Chad. “I think he was more nosey than anything. Other than that, it was a beautiful ride back.

ɸ Page B29

PIPELINE NEWS December 2009

B29

From roughneck to the limo business ɺ Page B28 “At almost every gas station people were running to see who is in there. There was one gas jockey – we could have driven away without paying – he was so excited there was a rock star in it or whatever.”

Asked if he felt like a rock star driving it, Chad’s comment was “No, I was just happy to get home. It was a long trip to get through Ontario.

“I was actually really impressed with the ride. It was easy to sleep in the back when we were going 24 hours a day. It is easy to drive but I drove big vehicles most of my life.”

Chad has several years of prior experience working on service rigs and drilling rigs as a welder’s helper and says his friends and co-workers at the muffler shop are supportive of his efforts to grow the limo business with his daughter.

“It’s the nice thing working where I am,” he said.

“I have a lot of leeway – if I have to go, I have to go. I stick around if there’s work to be done there too.

The limo is parked in a rental bay at Dash Tools where it’s Randi’s job to ensure it is cleaned and ready to go prior to renting.

The interior of the Ford Excursion limousine is equipped with many luxury amenities.

“It’s a lot of fun,” she said. “It keeps me very busy and occupied. I do all the bookings and the contract signings.

“We will take people anywhere they want to go in Alberta and Saskatchewan.”

Prairie Breeze’s ads suggests customers book limo rides to airports, dances, casinos, holiday twinkle tours, birthdays and corporate group events and seasonal parties along with weddings.

The selling points are luxury, room for 13 and attention getting for those who crave it and can afford it.

Prices start at $150 per hour for a general ride with a three hour minimum. Available group hockey and concert packages to Edmonton and back go for approximately $1,250.

“I need customers to call and tell me what they want to do and where they want to go and I will come up with a price based on that,” said Randi who worked as a roughneck before her current job.

“I was a roughneck on a service rig for a few months for a major driller. They lost their contract so I got this other job with MRC-Midfield.

“Before the rig, I was a slow rate operator (small pressure truck) for Sanjel. I worked for my dad when he was manager there.

“I plan on doing the limo business full-time as soon as we get a second vehicle.”

The Excursion limo features a built-in bar stocked with wine flutes, beer glasses and tall glasses with a folded cloth napkin in each one. The bar includes ice tubs for chilling drinks.

Passengers sit on nice cushy leather seats and can watch or listen to one of three TVs, a satellite radio and a stereo CD player in a non-smoking environment.

If there are any questions for Chad, who is li-

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“If companies rent it, we will put their licence plate on the front bumper,” said Chad. “That way, it gives them a bit of ownership of the limo.

The Goat radio station in Lloydminster did that last month when Prairie Breeze drove two radio sponsored contest winners on a return trip to the Grey Cup in Calgary.

Randi Wenzel will be happy to book luxurious SUV limo rides for Christmas and corporate parties.

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B30

PIPELINE NEWS December 2009

Packers Plus, Carson Energy honoured Lloydminster – Packers Plus Energy Services Inc. pioneers Dan Themig, Ken Paltzat and Peter Krabben are basking in the glow of being named this year’s Prairies Ernst & Young Entrepreneur of the Year Award winners.

Also selected for an award was Ron Carson, founder of Carson Energy Services Ltd. in Lampman, Saskatchewan.

He got the nod as the top entrepreneur in the Energy Services category at the awards ceremony in Calgary Oct. 16.

Carson Energy is a provider of pipeline and facilities construction and

maintenance services to companies in the oil and gas industry in Saskatchewan, Alberta and Manitoba.

By winning the regional Prairie award, Themig, Paltzat, and Krabben with compete with top entrepreneurs from the Atlantic, Pacific, Ontario and Québec regions for the national honor of Canada’s Entrepreneur of the Year for 2009. The national winner was scheduled to be named Nov. 24 in Vancouver, but results were unavailable at press time.

“Packers Plus has been boldly and

relentlessly innovative,” said David Boomer, director of Ernst & Young Entrepreneur of the Year for the Prairies region in Calgary.

“Themig, Paltzat and Krabben believed they could change the way we extract oil and natural gas. By challenging traditional thinking, they have developed and proven brilliant new technology that is profoundly changing the industry.”

The Packers Plus trio is credited with the development of their multistage fracturing system called the StackFRAC in 2001 that helped to open up the Bakken in 2006.

Their invention revolutionized the way which the drilling of oil and gas wells are completed — resulting in a dramatic increase in the amount of recoverable oil and natural gas.

Packers Plus has made reserves, previously thought to be uneconomic, highly productive and profitable. Their invention has simplified pressure pumping operations and improved completion time. The technology also reaches large natural gas and oil resources that can’t be tapped through conventional drilling and completion methods.

“By breaking through barriers and suggesting revolutionary ideas, entrepreneurs can make great changes that influence the economy and future generations,” Boomer said.

“Packers Plus has significantly benefited the oil and gas industry by redefining limitations and uncovering opportunities where none seemed to exist.”

The company was launched in 2000 in Calgary along with a manufacturing centre in Edmonton and has expanded to five locations in Canada with offices and operations in the United States, the Middle East, West Africa, China, Europe, Mexico, and Argentina.

Packers Plus continues to be a high-value provider of technologybased solutions to the oil and gas industry.

Aside from it multi-stage fracs, they specialize in open hole, high pressure, high temperature retrievable packers, and specialty service tools.

Calgary oil man, Randy Gee, from Randy Gee Holdings capture the Business to Business Products and Services category entrepreneurial award.

Gee owns or has shares of businesses that serve the special needs of the oilfield services industry, particularly in the Fort St. John region, including airline charters, platform piles, tool rentals, real estate and construction.

Award nominees are reviewed by an independent judging panel, which is composed of several established business leaders and previous award recipients.

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C-Section

PIPELINE NEWS

December 2009

Saskatchewan’s Petroleum Monthly

Source launches new system for full bore multiple fracing

By Geoff Lee

clining production in horizontal wells due to sand plugging seats off,” he said.

“As you draw on your liner system, the sand outside of your valves and ports will eventually migrate into the liner with the oil.

Lloydminster – Source Energy Tool Services Inc. scored a double news play in “With restricted inner diameters throughout the liner, sand buildup will November starting with the launch of a new horizontal liner system that allows eventually plug smaller inner diameters. The result will be restricted flow of the multiple fractures to be performed at full bore.

The independent oil tool company based in Lloydminster also opened a new interval not contributing to production of liner.”

The conventional way to rectify that is to use a mud motor with a bit to drill shop in Weyburn to market its new MultiStim Retriev-A-Seat liner system that the seats out, but fracing liners can be a high risk venture that can take days or operations manager Sean Campbell says raises the bar on fracing.

“Some of the issues with running conventional liners are sanding off or de- weeks to complete.

Tools can get stuck in the hole, inner diameters remain restricted and conventional work-over tools can’t be run after drilling out the seats.

“When you frac an interval mid-way through the liner and you sand off, you also run the risk of losing all the intervals before that point,” said Campbell.

“With our liner system, even with a worst case scenario, we can grab all these seats, run in and open up any interval and frac it so the client is at a very low risk of losing any intervals in the well.

“When you tell a client that this liner system has lots of options and reduces their risk dramatically that gets a lot of people excited.

“What we did was design a system to run in the hole and latch onto each seat and retrieve them as you run in the hole.”

A special Retriev-A-Seat retrieval tool was designed to catch all of the balls and seats from each frac port and either leave them all at the toe of the well or pull them out of the hole. The job can be performed efficiently in one day.

“When you pull out of the hole, you come back with all of the ball seats and the internals of each valve and leave a liner system in the ground that is full bore and free of sand,” explained Campbell.

“The retrieval tool is made to circulate sand as you are running in the hole, so you can clean your liner system out all the way to bottom. Then you are ready to run your production string.”

Unlike conventional horizontal liner systems, the MultiStim allows the frac operator to isolate any interval at any point in time to see what that interval is producing.

Sean Campbell from Source Energy (red coveralls) assists with an application of the MultiStim system. ɸ Page C2 Photo submitted by Sean Campbell

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PIPELINE NEWS December 2009

New system can bring huge bene¿ts ɺ Page C1 “If one is not producing, we have a set of tools that can go in and re-frac that interval or be able to do work overs with conventional tools,” said Campbell.

All of the parts of the MultiStim fracture system from the flow-lock shoe to each packer and valve and all of the retrieval tools are manufactured in Lloydminster but the idea originated from working in the Bakken play.

Source began working with operators of Viewfield Oil and Gas, a small oil producer in southeast Saskatchewan more than two years ago to develop a system that would overcome the limitations of multiple horizontal fracture isolation liners.

“Customers are extremely enthusiastic with it,” said Don Turner, president of Source. “Once they see for themselves the potential of the system they realize the huge benefits of it.

“What is happening in the Bakken is they are not getting full bore. It is restricting flow. To get that flow you have to go in and drill it out and that is huge.

It can cost $60,000 to $400,000 to bore it out.”

Turner says a significant advantage of the MultiStim is having the ability to open and close ports.

“If there are any underlying water problems, we can go in quickly and economically and close that interval,” he said. “We can stop the water from coming into that interval and get back to the oil production.”

The MultiStim Retriev-A-Seat system will be front and centre at the new Weyburn store that Turner says should help boost the company’s bottom

Sean Campbell shows some of their innovative frac packers.

Photo by Geoff Lee

Source Energy has opened a new station in Weyburn to market its full product line of oilÀeld tools.

Photo submitted by Sean Campbell

line and exposure in a growth market.

“It should increase revenues where other places have dropped off,” he said. “Some of our western areas have dropped off due to the economic environment.”

The new Weyburn location will also be stocked with Source Energy’s other product lines such as fishing tools, casing patches, retrievable packers and drilling motors. It will be staffed locally.

Source Energy is also working on the development of a new casing patch and other production tools in keeping with its mission to grow through innovation.

“We are always trying to find that edge and design something that fixes problems that are out there,” said Campbell who will divide his time between Lloydminster and Weyburn to market the MultiStim system.

PIPELINE NEWS December 2009

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Engaging the oilpatch a key priority

Q & A

By Geoff Lee Lloydminster – Jeff Mulligan, Lloydminster’s newly elected mayor, comes into the job with strong family roots in oil and agriculture and an outstanding 32-year career in the financial services sector.

Prior to running for office Mulligan, who turned 50 in November, spent two years as the president and chief financial officer of the Commonwealth Credit Union based in the border city.

He gave up the post before the campaign and is currently the managing partner of AHHA Moments Inc., a business leadership and change

Mayor Jeff Mulligan plans to hold “Jaw with Jeff” lunches with oil sector representatives. Mulligan is very Internet savvy and has his own blog.

management consulting company.

Early in his career with the Bank of Commerce he helped to develop the first ATM sharing system that became known as Interac and went on to develop ATM sharing for other credit unions in Alberta.

After several other postings he moved to Lloydminster with his wife Kathy in 1995 to become the number two man at the Commonwealth Credit Union and assumed the leadership post in 1997.

He describes the opportunity to move to Lloydminster as “coming

full circle” into a familiar environment where agriculture and oil lead the economy.

Mulligan grew up in the Drumheller and Morrin, Alberta area, where his family had a large farm and where his uncle founded Ranger Oil. Mulligan’s son Kyle, 26, is the head pro at the Lloydminster Golf and Country Club and his 16-year-old daughter, Caitlin, is studying sports marketing at Lakeland College.

We caught up with Mayor Mulligan to ask him about his impressions of the oil and gas

industry and where the city is headed.

Q: Do you have any priority policies for the oil and gas sector?

A: I think more than anything, it’s wanting to make sure the oil sector is connected to the policy making and policy direction of the city.

One of the things we see is when the oilfield is extremely busy, we see a

slight disconnect in the city because everyone is busy being busy. What I want to see is the on-going communication both in the peak times and the slower times so we make sure we’ve got a proper co-operative strategy going forward.

Q: Have you had calls from oil and gas companies since the election?

A: I am going to have discussions with the OTS (oilfield technical society) group about how we can best serve them.

I want them to be more active in ‘architecting’ the future strategy and vision of the city.

Just like every interest group, I want to meet on a regular basis with a representative group from OTS and the oil sector in general and make sure we have a city plan that incorporates their needs so they can grow healthy, vibrant businesses.

I think we only engage in a crisis or a minicrisis but what we need to be doing with the oil

sector is engaging with them more at the strategic thinking stage rather than the problem-solving stage.

Q: How important is communication to you?

A: There are a lot of good things going on in the city and in the oil sector, but have we connected those dots, players and discussions? If you leave a gap like this where you don’t provide information with communication dialogue, somebody will fill it in and make it fact. They might fill it in with incorrect data and they might fill it in with mistimed data.

What I want to do is have an open forum or communication where people can access information whether it’s a virtual environment online, personally from me or from a representative of the city. We need ongoing input from key people who are going to shape the future of the oilfield sector for Lloydminster. ɸ Page C4

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for the new Lloydminster mayor ɺ Page C3 Q: What kind of role can the oil sector play with the city?

A: They play a very important role today.

They don’t play a very engaged and interactive role. We haven’t made it easy and they haven’t gone out of their way from what I can see to really look at all the aspects of the influences positively and negatively they can bring to the city.

The city hasn’t gone out and engaged with oil sector in a way that’s convenient and proactive and meaningful for the oil sector.

It really is about building better partnerships with our key stakeholders. If we say we have two core industries – oil and agriculture - then shouldn’t I be spending an equal amount of time figuring out how the city can best engage those very important sectors?

Q: What is your

role to establish that engagement with the oil sector?

A: It’s not so much that I am going to sit back and wait for them to call because my cell phone is published. I‘ve got to build channels that are proactive. I’ve got to set meeting times and lunches. One of the ones will be called Jaw with Jeff.

Jaw with Jeff will include an oil sector representation once every 15 weeks or so where I will ask specific representatives from that sector to come and have lunch with me and Jaw with Jeff.

Q: Have you identified any issues regarding oilfield traffic?

A: Obviously, the whole city has been focused on traffic issues within the city. It’s accessibility to our industrial areas that we have to deal with and make sure we don’t have any commercial traffic competing with our heavily increasing consumer

and public traffic.

Q: Is there anything in the city’s new traffic plan about oilfield traffic?

A: I didn’t see anything specifically other than our road systems to figure out what we are going to do with heavy truck traffic through the main core.

Q: Should oil companies pay more for maintenance of the main thoroughfare?

A: We look at where their buildings are and where their shops are and we look at how they are taxed, obviously. I don’t think anybody should be more burdened than the next person for us having an effective road system to maintain.

Q: What’s your outlook on the local oil and gas economy?

A: I think many people intuitively slowed down and intuitively pulled back their spending in 2009. Financial statements for 2008 available in early

2009 for many people didn’t reflect the full impact of the economic downturn.

Now they are going to get their 2009 financial statements in late 2009 and early 2010 and they are going to see they have in fact realized, in many cases, a hit or impact because of the recession. We’ve seen it in our retail sector. The economic downturn in the oil sector has impacted the retail sector in many circumstances with the amount of sales.

Specifically in the oil sector, from what I’ve seen anyway, is people saying they expect the recovery to strengthen in late 2010 with momentum returning in 2011 and 2012. We won’t see dramatic change in the implications for our city during 2010.

Q: Do you have any environmental concerns about the oilpatch?

A: During the elec-

tion campaign, the primary focus of people talking about the environment came out of the nuclear power discussion.

With respect to the oilfield, people wanted an update on the former Kodiak Refinery site.

Husky tells us they are hoping for a late 2010 or early 2011 completion so they can put that property back into productive use (remediation is on-going).

Q: What is your initial impression of the city since you were elected?

A: We have a very diverse city. We have many things where growth has gotten away from us. The city has grown faster than maybe our planning and strategic thinking except in areas of infrastructure.

When it comes to roadwork and roadways where we have very capable engineering people. They are very capable where it comes to building partner-

ships with the outlying rural areas and I think we have very good plans for our 20 to 30 year growth strategy particularly west, north and south.

Where I don’t think we’ve done well is our services and processes and they way we serve the public. They haven’t kept pace with the growth and the needs of what I would call the new Lloydminster versus the existing and old Lloydminster.

The new people moving into town have an expectation from the oilfield sector, business sector and consumer sector that I’m not sure we’ve kept up with.

Q: If you had to deliver one message to the oilfield what would it be?

A: Let’s engage in proactively thinking about the future together. Let’s make sure what we’re doing at the city is enabling you to be successful and likewise for yourselves.

PIPELINE NEWS December 2009

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Bene¿ts of sonic pulse technology showed at SPE Lloydminster technical lunch

Emil Groves, president of Canasonics Inc. was the guest speaker at the November SPE Lloydminster technical lunch.

Lloydminster – One of the bonus benefits of combining sonic pulse technology with designer chemistries to stimulate and remediate wells is the fact it also stimulates the production of neighbouring or offset wells.

That was one the findings of case studies and tests of sonic pulse technology that Emil Groves, president of Canasonics Inc. in Calgary, shared with attendees at the November SPE Lloydminster technical lunch.

Groves began his presentation explaining that “sonics” is basically a pulsation that is created in the fluid with the ability to stimulate or remediate heavy and conventional oil wells and gas wells.

“With the fluid we are transmitting that pulse out. What we are trying to do is create a pulse in a fluid that affects the formation matrix,” said Groves.

Groves says Canasonics’ pulsing

tools with chemicals can fix near wellbore damage, scaling tendencies, waxing tendencies and “any of those near wellbore damages where we can affect that skin that has built up.

“If a producer can’t get the well to come on after the drilling side is done, we come in and help them get production going.

“We can take a well that’s not producing and get production flowing again,” he said. “In heavy oil applications we can take a wellbore failure due to worm holing collapse or plugging and get it to produce again.

“The vibration is allowing designer chemistries to go out further and more effectively and stimulate those wells.”

The Canasonics’ downhole tool has a fluidic oscillator with a positive shutoff valve so when one side of the tool is pulsing, the other side is not. It creates a pull-push dynamic. The pulse ports

are 180 degrees from each other.

“I believe the pulse amplitude or strength is the key behind what we are doing,” said Groves. “It generates 30 to 70 hp of pulse pressure and up to 256 pulses per second. We have a lower frequency one that emits 30 to 40 pulses per second.

“The strength of the pulsation in the fluid is what transmits that fluid pulsation easier to the formation or to the stimulation area.”

Canasonics is also capable of selectively cleaning large perforated intervals or horizontal injection/disposal wells using sonically conveyed treatment fluids.

The horsepower and vibration energy associated with sonic pulses increases the effectiveness of acids and solvents to remove scale.

In his presentation, Groves concluded Canasonics’ stimulation and remediation treatments for clients enhance production, enhance chemical reactivity, decrease workover time, decrease costs and lead to high success ratios for single batch stimulations.

“I am very excited about this tool because it is capable of applying the chemistry over the whole formation,” said Groves.

“For oil companies, it means better recoverability and better capability of being able to produce those wells more

effectively, faster and cheaper.

“If you are paying $10,000 for a chemical stimulation you are now getting $10,000 worth of productivity out of it.”

While the process works best in horizontal wells, Groves says his main concern is the chemistry applied to the formation.

“If you have the proper chemistry, we can almost guarantee the success of this is going to be 100 per cent,” said Groves.

In a recent study of sonic technology for the U.S. Department of Energy at Michigan Technical University, Canasonics put its tools into two different wells and proved the offset effect by recording a 256-hertz “signature” in the secondary well.

“They were trying to find why sonic tools work downhole,” said Groves.

“They still don’t know why they work but they know our tool was the only tool in the test that got that signature to the offset.”

In the Peace River area of Alberta, Canasonics was able to boost production two to three times from up to 300-metres on the offset well from a single well stimulation.

Groves said the effect from the offset well lasted six to eight weeks while the effect from the target well lasted for six to eight months.

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PIPELINE NEWS December 2009

Emerge and Provident both gain from $87 million transaction Calgary – Judging from their respective news releases, Emerge Oil & Gas Inc. and Provident Energy Trust will both come out ahead following the closure of their $87 million oil and gas assets transaction on Nov. 30.

Emerge will add to its oil and gas

holdings in its core operating and producing areas near Lloydminster and Provost with the purchase of producing assets that Provident values as being non-strategic.

Production from the assets during the third quarter of 2009 was 2,200

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barrels of oil equivalent per day with approximately 1,500 boe/d of heavy oil in the Lloydminster area and 700 boe/d of light and medium oil in the Provost area.

Proved plus probable reserves were 4.4 million boe at June 30, 2009.

The closure of the transaction will leave Emerge with a total production of approximately 4,300 boe/d (94 per cent oil and six per cent natural gas and associated liquids) and a proved plus probable reserve base of approximately nine million boe.

“This asset acquisition will complement our core Lloydminster heavy oil asset base where we have achieved success and are currently producing nearly 1,800 boe/d,” said Tom Greschner, who heads Emerge, in a news release.

“We are also extremely excited to add a new light and medium oil core area in the Provost/Thompson Lake area of Alberta.”

Emerge said it plans to exit 2009 at approximately 4,800 boe/d with its new producing assets.

For selling, Provident will receive $70 million in cash to be applied to Provident's revolving term credit facility and $17 million in stock from Emerge.

The sale is part of Provident’s over-

“

This transaction is an important step towards repositioning Provident upstream for long-term sustainability and growth

”

- Tom Buchanan

all plan to reposition its upstream business unit by divesting non-strategic assets in Saskatchewan and the Lloydminster area of Alberta.

“We are pleased with this asset sale and have realized excellent value for Provident’s unitholders,” said Tom Buchanan the head of Provident in a news statement.

“This transaction is an important step towards repositioning Provident upstream for long-term sustainability and growth.

“Management and the board of directors wish to sincerely thank the employees who have so effectively operated the Lloydminster assets for their commitment and years of service.”

PIPELINE NEWS December 2009

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PIPELINE NEWS December 2009

Quinn PC pumps perform well in Provost applications

Anthony Parchoma repairs a plunger assembly for a reciprocating rod pump at Quinn Pumps in Lloydminster.

Lloydminster – Quinn Pumps, a division of Quinn’s Oilfield Supply Ltd. based in Red Deer, Alberta introduced its Brazilian-made Netzsch progressive cavity pump to the Canadian market in 2004.

The decision to jump into the competitive PC pump market was made to maintain market share and has paid off for Quinn in places such as Provost where PC

pumps are king.

Netzsch PC pumps are designed to handle a wide range of fluid properties and volumes from .2 cubic metres a day at 100 rpm to the larger volume 120 cubic metres a day, pumps that are ideal for the watery wells that Provost is known for.

“In the Provost area, we are moving a lot of the 1.6 cubic metre pumps for pumped

off conditions where a conventional pump can’t handle the abrasive conditions,” said Kevin Bosch, PC pump sales manager in Provost.

“We also sell a lot of bigger pumps from the 62 to 120 range for high-producing water cut wells.”

“The smaller pumps are for moving sand. The bigger ones are for watered out wells with 90 per cent or more water.

A lot of the oil wells in the Provost area contain a lot of water. They are getting that way.”

With PC pumps, run life is critical for ef-

ficiency and low operating costs and according to Bosch, the Netzsch pumps are holding their own with the competition in a variety of applications and well conditions.

“One of our original pumps that went in the ground in 2004 is still pumping at 80 per cent efficiency,” said Bosch.

“We are getting better life by applying the pumps properly, knowing the fields and the people and knowing what they’ve tried and what has and hasn’t worked. ɸ Page C9

Dave Fischer, manager of Quinn Pumps in Lloydminster and Kevin Bosch, PC pump sales manager in Provost met in Lloydminster for a photo and interview.

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Staying ahead of your competitors ɺ Page C8 “If the life of your pumps isn’t as good as your competitors, you don’t have the door opened.

“Knowledge is a big part of it – customers knowing their wells – what they’ve turned into and what they started out as – as well as your own knowledge.”

The Netzsch PC pump has lower horsepower requirements than alternate pump designs and has only two wearing parts for quick and easy repair.

The elastomer is a buna made with a trace amount of nitrile that Bosch says, “helps to prevent swelling in gassy areas plus it’s soft enough to deflect sand, which is a big issue in areas where there is sand.”

Quinn’s foray into the PC pump market follows the company’s success in becoming the largest

Tony Moskowec works on removing a seating nipple from a reciprocating pump.

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Canadian manufacturer of reciprocating rod pumps since 1974. The company was founded in 1965 by Jim Quinn as a two man pump shop in Red Deer.

Quinn Pumps is recognized as a leader in the service and repair of reciprocating pumps with 18 facilities in Western Canada including a Lloydminster sales and repair shop managed by Dave Fisher.

Fischer says the key sales tool for their reciprocating and PC pumps is their proprietary WellTrack system that maintains a history of how well each pump performed in the well.

“We are trying to keep the pump the hole for the customer since it makes money for them,” said Fisher.

“The longer it is in the hole, the better it is for the customer. It is a very good tool and one of our major

selling points.”

Customers can also access the data for their wells on Quinn’s WellTrack by contacting their local shop manager.

Data is collected when the pump is pulled for repairs and includes performance information from the customer and field operator.

“If we see abrasion and corrosion, we will make some recommendations and we change the materials for the longevity of the pump,” said Fisher.

“All of our data is on a pump sheet that is like an invoice for the customer. The data goes to Red Deer and we can print off different reports for the customer.” ɸ Page C10

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PIPELINE NEWS December 2009

Local knowledge of wells helps sales ɺ Page C9 For PC pump customers in Provost, Bosch can also run a software analysis from C-FER Technologies to match the right PC pump to a customer’s well application.

“We collect data and either do a C-FER run on it or with a lot of customers – it’s another pump in the same field with similar data – so you know what size of pump and what kind of fluid they are going to move and size it up and get it out the door,” said Bosch.

The key to sales, however, could be Bosch’s knowledge of the local market and oil wells. Bosch was born and raised in Provost and lives in nearby Macklin.

In his previous job, he sold pumps for the competition out of town be-

Dave Fisher, manager of Quinn Pumps in Lloydminster shows off a working model of a reciprocating pump.

fore joining Quinn two years ago to work closer to home.

“The customers are customers I have known for years and Quinn has been great to work for,” said Bosch who was eager share the following tip on how to sell a pump.

“You get the information from the operator or customer,” he said.

Then you go see him on a weekly or monthly basis and see what’s coming up. When they are working on a well, get them to give you a shot at it. You do a program search for them and explain what is going to work for them and hope you get it and not the competition.”

Bosch says what helps the Netzsch PC Pump to stand out from the competitor are the small volume pumps.

“Nobody typically has a size under 4 cubic metres a day at 100 rpm and we have pumps that can go down to as low as .2 cubes per 100 rpm.

They are a good quality pump.

“We also have a multi-lobe pump for more lift on water-out, pumped-out wells that nobody else supplies. It

generates more lift because they are shorter in length than a single lobe pump.”

Bosch says he also lets customers know Quinn phases the rotors and stators of its Netzsch PC pumps at its distribution and drive head reconditioning facility in Swift Current.

Sales of new reciprocating pumps are strongest for Quinn in the Estevan area and in Cold Lake where custom orders come in for rod pumps used in heavy oil thermal applications.

“A customer will phone in and give us the well information about the water and sand cut, the amount of fluid he wants to make, the type of fluid he’s got in the hole, the type of jack he has and we use that information to build the right pump for him,” said Fisher.

“If you don’t build the right pump you get lots of other problems.

We build it to the aspect of the well. We have all sorts of things to put on the well for different problems – different fittings for gas break outs or for high thermal.”

PIPELINE NEWS December 2009

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PIPELINE NEWS December 2009

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Power Manufacturing builds industry-leading mobile labs Power Manufacturing has built more than 160 Power Labs since its inception and manufacturing is going full tilt to fill orders for the busy winter season when pipeline construction and the need for x-ray testing of welds ramps up.

Features and options

include handy stainless stain lift brackets for the roof to allow companies to hoist the cab on and off a pickup truck.

IRSS also makes and sells its own mobile radiography testing (RT) lab and a Next Generation lab for new digital radiography cameras.

The company is the Canadian supplier for QSA Global specializing in the supply of high quality and high performance radiation source products and services used in non destructive testing, oil well logging, industrial processes and medical research.

TRAINING OPPORTUNITIES

Lorne Rose, manager of Power Manufacturing Ltd. works on the assembly of a Àberglass mobile lab called the Power Lab. Photo by Geoff Lee

North Battleford –Build a better mousetrap and the world will beat a path to your door.

That’s the thinking behind an eye-catching mobile lab called the Power Lab, built by Power Manufacturing Ltd. in North Battleford, that has been winning over customers for the past six years.

“What makes ours different is the fibreglass shell,” said shop manager Lorne Rose. “The appearance is a modern look.

“If you have to drive through the bush to get where you’re going, it won’t get dinged or scratched. It’s rougher and tougher. We’ve never had complaints about them.”

Approximately 20 units are sold each year by Industrial Radiography Supply & Services Inc. (IRSS) in Edmonton to oil and gas and industrial companies in need of a good looking and durable mobile dark room for developing x-ray film for non-destructive testing.

“These are really nice labs,” said Joe Sargent, sales manager at IRSS that sells a complete line of radiographic exposure and testing equipment to the oil patch and industrial users in western Canada.

“When we saw these Power Manufacturing labs we knew they were well made and we decided to promote them because they were nicer labs than we could find.”

Most of the commercially made mobile units for the mass market are of wooden construc-

tion with an aluminum covering on the exterior with little thought given to looks and ruggedness.

The Power Lab features an inner and outer fiberglass shell construction with full urethane insulation and an aerodynamic exterior design to fit short box and long box trucks.

Standard equipment includes four solution tanks with a drain and fill system served from one connection and lead lining on the exterior of the radioactive source box.

The interior is also wired for stereo and air conditioning and is heated for winter use.

Rose says idea for the Power Lab originated from company owner, Des Power after Power sold his share of ownership in Peak RV Manufacturing Inc. in North Battleford.

Today, Power’s main business is M.C. Campbell Directional Boring Ltd. and he launched Power Manufacturing as a niche market opportunity.

“I think what happened, he was in Alberta one time and saw shacks on the back of trucks and they were just like a common wood box with tin on them,” explained Rose.

“He thought he could build something a little bit better.

“We also ran a fibreglass shop when we were involved with Peak so we knew something about fibreglass. We had a mould made and it went from there.”

The fiberglass moulds are designed and made by

R & R Fibreglass Fabricators Ltd. in Medicine Hat while all of the electrical, carpentry and assembly work is based at the shop located at M.C. Campbell’s yard.

“We do everything up at the shop,” said Rose.

“We cut and build the floors and we cut and build the cabinetry. All of the aluminum parts are made here.”

Rose says he does all of the exterior work and the cabinets while his co-worker Barry Scheske handles the electrical installation.

The electrical work includes complete GFI protection and a flashing safety beacon on the roof and a built-in alarm system on three doors with back-up battery power.

There are also two recessed halogen lights.

“We make the solution tanks here, too, and you can get thermostatically-controlled heaters to put in the tanks to heat the solution,” said Rose.

CUSTOMIZED TRAINING The majority of our training and education is specialized to meet speci¿c client needs at their location and on their schedule.

We will train and effectively educate your staff to meet your company’s needs and goals.

CONFINED SPACE ENTRY - Level 1 & 2 Dec 4 Swift Current Campus Dec 16 Kindersley Campus FALL PROTECTION (1 Day) Dec 17 Kindersley Campus FALL PROTECTION for RIG WORK (2 Day) Dec 8-9 Swift Current Campus FALL RESCUE for RIG WORK Dec 10 Swift Current Campus GROUND DISTURBANCE Dec 8 Swift Current Campus Dec 14 Kindersley Campus Dec 14 Rosetown Campus H2S ALIVE Dec 3 Swift Current Campus Dec 12 Kindersley Campus Dec 15 Kindersley Campus FORKLIFT OPERATOR Dec 2 Swift Current Campus Dec 11 Kindersley Campus RED CROSS FIRST AID/CPR/AED Dec 5 Kindersley Campus Dec 5 Swift Current Campus Dec 9 Swift Current Campus TDG Dec 11 Swift Current Campus WHMIS Dec 11 Swift Current Campus

www.energytrainingcentre.ca 1.888.ETC.7972

C16

PIPELINE NEWS December 2009

Devon Canada ¿rst responder

Keeping an eye on the burgers is Gord Hart, deputy chief of the Lloydminster Rescue Squad. Kudu Industries Inc. donated the barbecue cooker.

Lloydminster – Devon Canada Corporation is the first responder to a call for donations to-

ward the purchase of a new rescue truck for the Lloydminster Rescue Squad.

The oil and gas explorer and producer presented the rescue squad with a $10,000 cheque and proceeds from a kickoff charity barbecue held at the Lloydminster Rescue Hall Nov. 4.

The new rescue truck has a price tag of approximately $165,000 and Devon has issued a challenge to other companies, businesses and residents to meet or beat their contribution.

“This is a very worthwhile project,” said Mike Meynberg, Devon’s Lloydminster district superintendent prior to presenting the cheque to Gord Hart, deputy chief of the rescue squad “We are looking at

supporting a volunteer organization toward the purchase of a new rescue unit.

“It’s a unit that is not only going to be used for people in the oil and gas sector but it will used for all of the people of Lloydminster, whether they’re residents or transients going through the area.”

Currently, the rescue squad has 16 volunteers and two vehicles, and responds to more than 100 calls per year.

Their main rescue vehicle is seven years old and in need of updates, some of which can’t be completed as the vehicle is not large enough.

Improved technology and safer designs of passenger compartments in new vehicles have outdated the tools and equipment first responders need to rescue trapped drivers and passengers involved in collisions or rollovers.

“We are somewhat limited by the truck we have now,” said Hart.

“Without upgrading, we aren’t able to add the new equipment we need to perform our tasks more efficiently.”

The rescue squad also responds to farm and water and ice rescues with an airboat with all of its equipment and operations funded by donations and user fees from insurance companies.

“All the money goes back into the squad for operations and maintaining the tools and trucks and buying better equipment,” said Hart.

“Having an oil company come in and help us purchase a rescue unit is very important to us.”

At the Rescue Hall barbecue, Hart said fundraising campaign letters were sent out in October and Devon was the first company to step up to the plate.

“It means a lot to us,” he said while flipping burgers. “Devon has supported us in the past with donations and commitments toward trucks and everything.

“This will be a little bigger donation this

time. It helps us out greatly in our work area as most of our guys are volunteers.”

The barbecue was the brainchild of Joe Reid, a production operator at Devon and a nine year volunteer veteran of the Lloydminster Rescue Squad, who rallied the community to the barbecue.

Reid also worked as rescue squad volunteer in Swan Hills, Alberta for nine years before moving to Lloydminster in 2000 and says having a new vehicle “is huge”.

“This is something that I am interested in as a volunteer so I organized the barbecue.

“The one truck we are going to be replacing is getting up in age and needs more work done on it. With new technology, there are more tools to put on the truck.”

Meynberg told the Pipeline News that Devon Canada’s $10,000 donation comes from Devon Canada’s donation account from Calgary for worthwhile causes. ɸ Page C17

Ken Tripp from Sand Control Systems does his part to help Àll a huge donation tub at the Lloydminster Rescue Hall.

(780) 875-0203 LloydMall, Lloydminster

PIPELINE NEWS December 2009

C17

to rescue squad charity event

Mike Meynberg, Lloydminster district superintendent of Devon Canada Corp. presents a display cheque for $10,000 toward the purchase of a new rescue truck to Gord Hart, deputy chief of the Lloydminster Rescue Squad.

ɺ Page C16 “We have supported the rescue squad in the past in a small way,” he said. “This is the first time we have taken a big step and offered a large size donation.

“The new truck is going to provide transportation to and from emergency scenes. We want to make sure these guys get to and from emergency scenes in the best travel

unit that they can.”

Locally, Devon Canada is also a major corporate sponsor of the United Way and a supporter of the Lloydminster Interval Home among other charities.

Devon Canada is a subsidiary of Devon Energy Corporation based in Oklahoma with Canadian operations based in Calgary.

“Locally, we employ

about 55 people directly from the Lloyd office,” said Meynberg. “We have about 200 service suppliers, contractors and truck drivers and vendors that work with us too in one way or another.”

“Letters were sent out in October and Devon was the first company to step up to the plate and help with this fundraiser,” said Gord Hart deputy chief of the rescue squad.

Kerrobert project to test commercial potential for THAI Kerrobert – Petrobank Energy and Resources is using a high tech form of alchemy to turn heavy oil into light oil from the Waseca formation in the Kerrobert area.

The magical catalyst is the toe to heel air injection (THAI) process that Petrobank has initiated at a two well demonstration project with its 50 per cent jointventure partner, Baytex Energy Trust.

The Kerrobert project is located approximately 16 kilometres southwest of Kerrobert and will demonstrate THAI in the 20-metre thick Mannville conventional heavy oil channel reservoir.

THAI uses a system where air is injected into the oil deposit down a vertical well and is ignited.

The heat generated in the reservoir reduces the viscosity of the heavy oil, allowing it to drain into a second horizontal well from where it rises to the surface.

Petrobank announced it commenced the air injection process to establish an in-situ combustion zone on Oct. 27 to begin the transformation and flow of heavy oil into a producing well by the following day.

The horizontal wells were fitted with temporary downhole pumps which were turned on at low rates to achieve a slight drawdown pressure across the horizontal well prior to air injection.

The air injection was initiated at a rate less than 10 per cent of designed volumes to establish the in-situ combustion zone.

In its Oct. 27 news release, Petrobank reported the commissioning of the air injection and combustion into the toe of the reservoir was established by a successful pre-ignition heating cycle (PIHC) commenced in the vertical wells on Sept. 12.

Petrobank believes a significant portion of

the province’s estimated 20 billion barrels of unrecovered conventional heavy oil resources can be commercialized using THAI. THAI is reputed to be able recover about 70 to 80 per cent of the oil, compared to only 10 to 40 per cent using other technologies.

The commercial potential of THAI may be largely responsible for the quick approval given by the province for the joint venture Kerrobert project on July 9 this year just 54 days after Petrobank filed the application.

Drilling and completion operations wrapped on Sept. 7. Plant construction started Sept.

8 and was finished six weeks later in time for the PIHC start up.

The company currently operates the

Whitesands project near Conklin, Alberta in the Athabasca Oil Sands where the THAI in-situ combustion technology has been proven in the field.

The THAI process was first used by Petrobank at its Christina Lake site in the Athabasca Oil Sands in June, 2006 in a pilot operation.

Professor Malcolm Greaves at the University of Bath England is credited with developing the THAI process that was purchased and trademarked by Petrobank.

C18

PIPELINE NEWS December 2009

Investors offered a new way to “play the Bakken” to win Calgary – Rogers Oil & Gas Corp. hopes to deliver a “win win” partnering model to investors who help the company raise $22.4 million to finance 16 new developmental wells in 2010 in the Bakken oil play.

“It’s the hottest play in North America,” said Rogers’ chief operating officer, Mario Molina about the Bakken.

“It’s got four straight years of incredible growth.

The word got out that we had capital and were looking for production.

“We listened to a lot of opportunities from northern B.C. to the southern U.S. but we didn’t stray one inch from our focus on the Bakken.”

Rogers is headquartered in Phoenix, Arizona with offices in Calgary and is in business to provide growth-oriented investors with superior returns from Bakken formation oil assets with operational partners.

Investors can purchase a minimum of $5,000 in flow-through shares or purchase a participating debenture in the Bakken play and earn 12 per cent interest a year over three years plus a monthly net back oil production bonus.

Oil production will come from the 16 new development wells to be drilled and operated by Texalta Petroleum Ltd. with 100 per cent well financing from Rogers.

Texalta is a Calgary-based oil and gas explorer that will drill and complete the wells in the Torquay, Wordsworth and West Queensdale project areas of

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southeast Saskatchewan.

Each well drilled by Texalta will pay back Rogers 100 per cent with Rogers earning 50 per cent of the net production.

“For clients looking for income, it’s a fantastic product,” said Jason Currey, president of The Healthy Retirement Group Inc., based in Calgary and one of several brokers helping Rogers raise the capital.

“Rogers is basically a financial play,” said Currey.

“They have geologists and engineers but they are all on management. They don’t have any ground staff which saves them a whack of money.”

Rogers and its investor partners provide the financial framework and the capital for a junior oil and gas explorer like Texalta to operate in the Bakken area play.

“We were very fortunate to find a company like Texalta with zero debt and a tremendous amount of land,” said Molina. “We signed a letter of intent (Sept. 14) with Texalta to drill horizontal 16 development wells beginning in January.”

The company has already drilled three development wells in the area and will drill a fourth development well and a new exploratory well in November under a previous investment agreement.

To date, Rogers has acquired ownership percentages in 17 wells, a Bakken area separator plant, a local water disposal well and crucial area infrastructure.

“We love the Bakken for a lot of reasons,” said Molina. “We love it because of the politics and the Canadian dollar end of it. We like the stability of this area.

He pointed to growth in Saskatchewan’s daily production, stating, “That’s extremely healthy growth in an area and that eases the way to drill.

The royalty structure is also favorable for us.”

The oil riches of the Bakken will be front and centre during a series of information seminars Healthy Retirement Group is hosting in November and December with Rogers in cities across western Canada.

The partners will also make a presentation to the Lloydminster Petroleum Society Lunch ‘N Learn in March or April.

“The Bakken is a huge area of opportunity but it’s tricky,” said Currey. “If you put a lot of money in and there are a lot of costs, it doesn’t always work. If you get in for a smart play there could be enough in for everyone for a very long time.

“I think it’s one of the most exciting things I have ever come across. Like most things, it’s all who you are working with. That’s why we like working with Rogers and Texalta. They have very good management.”

Rogers likes to lower and diversify the risk to its investors by limiting their involvement in any developmental or exploratory project they participate in.

“What we are doing in our last deal is picking up 35 per cent of any land acquired by Texalta,” said Molina.

“We are financing these 16 new wells with 100 per cent of our financing and we get 100 per cent back and we keep 50 per cent of the working interest.”

Rogers also owns over 13 per cent of the third Wordsworth well that has been placed on production.

Complete details of the drilling and the investment offering are available on Healthy Retirement Group’s web site.

Currey says flow-through shares are often purchased by taxpayers in the highest marginal tax rate who can reduce their taxable income and receive refundable or non-refundable tax credits depending on the province where they live.

“Flow through shares give a 100 per cent tax deduction and they are also RSP eligible,” said Currey.

“You can purchase the flow through shares and contribute them to your RSP and by doing that you get a 200 per cent tax deduction.

“The debenture pays an income and the shares are the growth of the company. Debentures are backed by all of the corporation’s assets and there’s no debt to Rogers other than the debenture payment. This is one of the best opportunities for my clients that I have come across.”

Rogers is looking at financing approximately $1.2 million per well drilled by Texalta into the Mississippian Alida zone that Molina says has proven up to nine million barrels of recoverable oil.

“It’s a very shallow formation. A lot of the bigger boys have looked at it but went right by it. Our geologists were saying there is lower lying crude here so why don’t we take this before we hit our biggest shots into the Bakken?

“We are taking very shallow hits in the Alida and coming up with very good success. We just finished completing one of our last developmental wells producing 150 barrels a day. For us, that’s a very nice well.

“Because of the potential amount of oil recovery in the Bakken, it’s become more and more important of a find. Some of the bigger players are starting to get involved there which is encouraging for all of us.

“It is making acquiring new land that much trickier because everyone is looking over everyone’s shoulders seeing what kind of geology is there. There have been so many good stories there.”

PIPELINE NEWS December 2009

C19

Diamond Energy expands into the Unity and Provost areas support equipment and related personnel.

The acquisition, effective Oct. 31, brings to 24 the number of service rigs operated by Diamond that has been on an expansion track since Gering launched the company in 1996.

“We started in 1996 with one rig under Diamond Service Rigs and then we went to Diamond Energy and we purchased a company called Sage (Sage Well Services) down here and that was our biggest growth,” explained Gering.

“That took us to 14 rigs, then we started a Red Deer operation but when the price of oil starting dropping it really slowed down, so we moved the rigs back here and we started to deploy them around here when Saskatchewan got busy.”

Diamond’s latest strategic growth oppor-

This is one of four mobile single service rigs that Diamond Energy Services in Swift Current recently purchased to expand into the Unity and Provost areas. Diamond has a Áeet of 24 service rigs and six coiled tubing units. Photo submitted

tunity in the Unity and Provost areas was announced by Terra-Vest Income Fund that purchased an 87 percent stake in the company for $33.7 million in 2005.

The Fund purchased its interest in Diamond from a number of individual and institutional

investors, who had provided the resources to finance its rapid growth since its early days.

Diamond’s management team holds the remaining 13 per cent of the business that continues to operate as an independent business with separate service rig and

coiled tubing divisions.

The executive includes Gering’s childhood buddy and CEO, Mick MacBean who joined the company in 1998 and has helped it become a market leader in well servicing.

Diamond now has six coiled tubing units and more than 130 employees located at office and shop facilities in Swift Current, Shaunavon and Unity, Sask. and Medicine Hat, Alberta.

Diamond’s expansion into the Unity area is supported by news that O & G Resource Group spent about $2 million on a 1,619 hectare block adjacent to the Salt Lake Lloydminster Sand Oil Pool in the October sale of crown land rights in Saskatchewan. The land is located 11-kilometres southwest of Unity.

“We will have to sit back and see where this takes us,” said Gering.

“We will get this deal all wrapped up and go from there. We have some ties up there in heavy oil.”

Gering says most of Diamond’s work is focused in southwestern Saskatchewan where activity is beginning to pick up after a slow start to the year.

“It’s not booming down here,” he said. “We are down a few rigs but we are just starting to ramp up now. It’s been steady but it did quiet down. It’s starting to pick up a little bit.

“The price of oil is rallying and by 2010 we should be back up to having a good year. Most of our work will be in the southwest.”

Asked if he would consider expanding into the Bakken play Gering says, “We haven’t ventured into the Bakken yet but when the opportunity arises we may try it.”

cturchak@brutusbodies.com

40247758•10/23/09

Swift Current – Here we grow again. That’s a familiar saying for Diamond Energy Services, the largest service rig and coil tubing company in Swift Current, that is poised to expand into new territory in westcentral Sask. and eastcentral Alberta.

“It’s a different market than we’ve been in all this time,” said company president Butch Gering.

“It’s in the Unity, Provost and Lloydminster area.

Most of our operations are concentrated in Swift Current and southwest Saskatchewan.

“We’ve always been in the southwest but we see an opportunity up there and we will give it a try.”

The foray into new markets is made possible by the acquisition of rig assets from OD Well Servicing in Unity in a package deal including four mobile single rigs,

See our online inventory at www.brutusbodies.com

C20

PIPELINE NEWS December 2009

Northridge Energy Development Group is seeking: An INSTRUMENT ELECTRICAL MANAGER for their local Estevan office.

Applicant must posses either a CET (minimum) or Journeyman level in either Instrumentation or Electrical dual ticket is an asset. Engineering experience related to design, drafting, project manager and applicable codes is also required. The successful applicant will be a motivated leader with a strong belief in training, education and field experience.

Please apply via e-mail to: serge.paquette@nedg.ca

Career Opportunities

Service and Sales Representative Fiberspar is the industry leader in high-strength, ďŹ ber-reinforced tubular products for the oil and gas industry. We are seeking to ďŹ ll this full time position in the Leduc/Nisku area.

Primary responsibility will be to supervise and install composite pipe lines.

Ideal candidate will have experience in Wire-line equipment operation, some oilďŹ eld experience, and a class 3 driver’s license.

Salary is commensurate with work experience.

Training will be provided.

Fiberspar offers a full beneďŹ ts package.

Interested individuals should contact Charli Ann at 281-854-2609 or email/fax resume cramin@ďŹ berspar.com, Fax 713-849-9202.

Midale Petroleums Ltd. is a company based in Midale, SK. It is an independent oil company that explores and operates production in Southeast Saskatchewan.

A full time

PURCHASING POSITION is now available.

Interested applicants should apply by mailing or faxing their resumes. Wages are negotiable depending on experience.

We would like to thank all applicants for their interest, however only those selected for an interview will be contacted.

M IDALE PETROLEUMS LTD. Phone: (306) 458-2303; Fax (306) 458-2930 Box 419, MIDALE, Saskatchewan S0C 1S0

ELECTRICAL & INSTRUMENTATION Pyramid Corporation is currently recruiting for the following positions; Area Manager in Estevan, SK Electrical Journeymen & Apprentices in Estevan, SK Instrument Journeymen & Apprentices in Estevan, SK

Offices in Estevan, SK & Redcliff, AB WE ARE CURRENTLY ACCEPTING RESUMES FOR:

• SUPERINTENDENTS • PIPEFITTERS • LABORERS • EQUIPMENT OPERATORS • TRUCK DRIVERS • WELDERS

Journeyman rate starting at $36.00/hour. Plus we offer above average, benefits, RRSP program, room for advancement and more.

Pipeline & facility experience necessary, safety tickets & valid drivers licence preferred, top wages and benefit pkg.

636-7001

Apply today quoting ref # EISK1109 to: hr@pyramidcorporation.com Fax: 306-634-6012 www.pyramidcorporation.com

Fax resume to: 306-636-1514 EMAIL: renegadeoil@telus.net

DRILLING RIG PERSONNEL

WELL SERVICING PERSONNEL

Big Sky Drilling, a division of Ensign Energy Services Inc., is looking for Drillers, Derrickhands, Motorhands and Floorhands to work on the drilling rigs in the Estevan, SK and surrounding area.

Rockwell Servicing, a division of Ensign Energy Services Inc., is looking for Operators, Derrickhands, and Floorhands to work on service rigs in the Estevan, SK and surrounding area.

Minimum requirements include; H2S, First Aid

Minimum requirements include; H2S, First Aid and Drivers Abstract with 6 demerits or less

For Employment Opportunities contact: Recruitment Center Fax: (780) 955-6160 E-mail hr@ensignenergy.com www.ensignenergy.com CALL 1-888-ENSIGN-0

For Employment Opportunities contact: Estevan Station Office Fax: (306) 634-3238 E-mail: sheldon.milford@ensignenergy.com www.ensignenergy.com

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TRICAN WELL SERVICE LTD. is one of Canada's fastest growing well service companies, providing a comprehensive array of specialized products, equipment and services utilized in drilling, completion, stimulation and reworking of oil and gas wells in the Canadian and International marketplace. At Trican, we base our recruitment practices on the belief that a company's greatest asset is its people.

Trican provides services in Fracturing, Cementing, Acidizing, Coiled Tubing, Nitrogen and related services in our field bases ranging from Fort Nelson, BC to Estevan, Saskatchewan.

WE ARE CURRENTLY HIRING FOR ALL LOCATIONS:

• SUPERVISORS • OPERATORS • DRIVERS • FRAC HANDS A valid Class 1 required as well as prior experience in the above pressure pumping operations.

Trican offers a dynamic work environment and a competitive salary and benefit package. Please apply in person to any of Trican's field bases or forward your resume and references, in confidence to:

Trican Well Service Ltd. Box 849 Estevan, SK S4A 2A7 Fax: (306) 637-2065 • Email: vscott@trican.ca

PIPELINE NEWS December 2009

C21

Career Opportunities

TOOLS

Crew Foreman

Experienced FOR LLOYDMINSTER AREA

MUST: • Have Valid Drivers License & Be A Team Player • Safety Tickets • Picker & Bobcat Experience An Asset C’s OFFERS: • Top Wages • Benefits Package • Performance Bonuses • Scheduled Days Off • Opportunity For Advancement • C.O.R. Safety Program • AB & SK B31.3 Q.C. • Premium Equipment DUTIES: • Daily Operation Of A Light Picker Truck • Pipe-fitting & Construction

OILFIELD SERVICE LTD.

CONSULTING & CONSTRUCTION

Apply in confidence to: Fax (780) 808-2273

ilÀeld CHANGE BUY SELL TRADE

Overview NOV Monoflo is a manufacturer of Artificial Lift equipment, specializing in Progressing Cavity Pumps. Based out of Lloydminster, this position would report to the manager of Engineering & Design. The position will require the candidate to work in a team-based organization on a variety of tasks and open the candidate up to potential work in the field, domestically and internationally.

Responsibilities • Complete Artificial Lift designs for domestic and international sales • Complete failure analysis investigations • Investigate and make recommendations to improve products and processes • Design new Artificial Lift products • Support sales with technical expertise Qualifications • Engineering Degree or related Engineering Technical Diploma • Membership with APEGGA or APEGS • Minimum of five years oilfield engineering experience • Background in Artificial Lift, primarily Progressing Cavity Pumps • Knowledge of C-Fer PC Pump and SolidWorks considered an asset • Ability to travel domestically and internationally Please submit resumes: Electronically to lloydminster@nov.com Fax to 780-875-8584 or drop off at 5702 63rd Ave, Lloydminster, AB Deadline: December 14th, 2009

SASKATCHEWAN BUSINESSES FOR SALE Oilfield Trucking Business Well established, steady income, long term employees Owner will train, southeast SK.

Auto Body Repair, Oil Field & Industrial Equipment Sandblasting & Coating Diversified business 90% growth over the past four years, southeast SK

Building Products Supply, Manufacturing, Installation & Service Sales growth of 40% in past two years, building & land included, Regina SK.

Restaurant and Pub Sales have doubled in the past five years Excellent cash flow, southwest SK

Hotel/Motel Recently expanded and generating excellent cash flow Very busy hotel/motel business, southwest SK Visit www.sunbeltsask.com for more information on these & other SK businesses for sale or to sell a business with Sunbelt Business Brokers.

Regina office (306) 530-7899 Saskatoon office (306) 382-5075

The world’s largest business brokerage firm.

40248263•11/20/09

Title: Artificial Lift Systems Engineer

C22

PIPELINE NEWS December 2009

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Dwight G. Blomander, CFP, CLU, CH.F.C., RHU • Life Insurance • Disability Insurance • Critical Illness Insurance • Employee BeneÀt Plans Tel: (306) 761-7506 • Fax: (306) 352-9474 E-mail: dwight.blomander@gwl.ca Toll Free: 1-888-495-7275 • Cellular: (306) 421-1935

Gordon Harty Box 95 Marwayne, AB T0B 2X0

Bus. Phone

Fax No.

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(780) 875-9802 (780) 847-3633 (780) 847-2178

ASSURANCE COMPANY

Fresh Water Hauling Custom Bailing & Hauling

Great-West Life 600, 2010-11th Avenue, Regina, SK S4P 0J3

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

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Kevin Anderson/Darwin Krall

FUSION INDUSTRIES LTD. â&#x20AC;˘ Quality Control â&#x20AC;˘ Pressure Welding â&#x20AC;˘ OilĂ&#x20AC;eld â&#x20AC;˘ Portable Welding â&#x20AC;˘ Fabrication â&#x20AC;˘ Breaking â&#x20AC;˘ Shearing â&#x20AC;˘ CNC Plasma & Torch Cutting â&#x20AC;˘ P1-P1 Carbon Steel Procedures â&#x20AC;˘ P1-P8/P8-P8 Stainless Steel Procedures 24 hr Service

301A Kensington Ave. Estevan, SK.

Phone: 634-6177 Fax: 634-6178 Cell: 421-5441 421-6179

Email: fusioninc@sasktel.net

Specializing in well site and pipeline surveys Yorkton 306.783.4100

Swift Current 306.773.7733

Edmonton 800.465.6233

Weyburn 306.842.6060

Lloydminster 780.875.6130

Calgary 866.234.7599

Regina 800.667.3546

Medicine Hat 403.528.4215

Grande Prairie 780.532.6793

Crude Oil and

Water Trucking

Lloyd Lavigne â&#x20AC;˘ Kirk Clarkson Owners/Managers 5315 - 37th Street Provost, AB T0B 3S0

6506 - 50th Avenue Lloydminster, AB

Phone: (780) 875-6880 Locally owned & operated.

Klaws Trucking Shawn - 461-6744 â&#x20AC;˘ Lampman, SK

Phone: (780) 753-6449

Fax: (780) 875-7076

24 Hour Service Specializing in Industrial & Oilfield Motors

SONAR INSPECTION LTD. â&#x20AC;˘ Pressure Vessels â&#x20AC;˘ Well Testers â&#x20AC;˘ Frac Recovery â&#x20AC;˘ Wellbore Bleedoff â&#x20AC;˘ Ball Catchers â&#x20AC;˘ 400 bbl Tanks â&#x20AC;˘ Rig Matting â&#x20AC;˘ Complete Trucking Services

Dale (306) 861-3635 â&#x20AC;˘ Lee (306) 577-7042 Lampman, Sask.

Cory Bjorndal District Manager Downhole Tools

93 Panteluk Street Kensington Avenue N Estevan, Saskatchewan S4A 2A6 PHONE: 306-634-8828 CELL: 306-421-2893 FAX: 306-634-7747 cory.bjorndal@nov.com www.nov.com

Head OfĂ&#x20AC;ce 1292 Veterans Crescent Estevan, Sk. S4A 2E1 E: sonarinsp@sasktel.net

P: 306-634-5285 F: 306-634-5649

â&#x20AC;&#x153;Serving All Your Inspection Needsâ&#x20AC;?

UT - LPI - MPI Wayne Naka Taylor Gardiner Cory Rougeau

306-421-3177 306-421-2883 306-421-1076

PIPELINE NEWS December 2009

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PIPELINE NEWS December 2009