Pipeline News October 2010

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

October 2010

FREE

Eagle Drilling Special Pull-out

Regina ReÄnery Expands

Pages A13-20

Page B1

: r u

o lY

F

r o

l A

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

20 1 H e 0 L l Volume 3 Issue 5 av oy d y O min il S st ho er w

Oil Show Keynote: Trican's Murray Cobbe Page C1

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

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

A2

PIPELINE NEWS October 2010

Horizontals taking over News

Notes

Wall meets with U.S. politicians Premier Brad Wall was busy in September meeting with prominent United States politicians with the intention of promoting Saskatchewan’s energy resources. On Sept. 8, Wall, along with Alberta Premier Ed Stelmach and Quebec Premier Jean Charest, met with Nancy Pelosi, speaker of the United States House of Representatives. Development of oilsands was a major item on the agenda.

Not long after, Georgia Republican Senator Saxby Chambliss, South Carolina Republican Senator Lindsey Graham and North Carolina Democratic Senator Kay Hagan came to Saskatoon on Sept. 18 to meet with the premier. It was the second visit by U.S. senators to Saskatchewan in under a year.

Before the meeting, Wall said in a release, “We'll be showing the senators about the important contribution Saskatchewan makes to the U.S. economy and clean energy agenda. We have rich reserves of uranium, which the U.S. uses to generate zero-emission electricity. We lead the world in developing carbon capture and storage technologies. We are responsible stewards of our environment. And we're next door.”

SaskEnergy lowers rates SaskEnergy filed an application on Sept.

9 with the Saskatchewan Rate Review Panel (SRRP) to adjust its commodity rates reflecting lower market costs for natural gas. If implemented, this change will reduce annual average bills for residential consumers by $66, while typical small and medium business customers will see average savings of $272 annually.

SaskEnergy is proposing to reduce its commodity rate from $5.21/gigajoule (GJ) to $4.55/ GJ, effective Nov. 1, 2010, recognizing continuing lower natural gas prices in the open market. This 13 per cent decline in the commodity rate follows two reductions in 2009 and is comparable to the rate of $4.52/GJ implemented for the winter of 2000/2001.

Briefs courtesy Nickle’s Daily Oil Bulletin

Assistant Deputy Minister of Energy and Resources Ed Dancsok spoke with Pipeline News during the Lloydminster Heavy Oil Show on Sept. 16. Dancsok looks after the petroleum and natural gas division of the ministry.

Photo by Brian Zinchuk

By Brian Zinchuk Pipeline News Lloydminster – There are going to be a lot of wells to drill in the coming months in Saskatchewan. A tremendous rise in horizontal drilling in Saskatchewan has led to a backlog in well licensing, due to the increased time it takes to process a horizontal well license over a vertical. Wet weather has had a substantial impact on the rig count at a time when there is an 863 well gap between the number of licences issued and the number of wells drilled by early September.

Assistant Deputy Minister of Energy and Resources Ed Dancsok spoke with Pipeline News during the Lloydminster Heavy Oil Show on Sept. 16.

Dancsok looks after the petroleum and natural gas division of the ministry.

As of the beginning of September 2010, there were 100 fewer horizontal well applications than all of 2008, the record year. At that point, one-third of 2010 was still remaining.

“We’ve got a record number of horizontal wells coming in the door,” he said, noting well over 50 per cent of new wells in Saskatchewan are now horizontal.

Vertical wells are much simpler to process, and take much less time to review and process than horizontals.

“You have to make sure equity is protected with diverse holders,” said Dancsok of horizontal wells.

Additionally, well spacing has to be looked at care-

fully, and they can’t interfere with other horizontal or vertical wells. Vertical wells can be done is as little as a day, and horizontal well applications can be as little as two days, but you have to get to it first. There’s a tall inbox, according to Dancsok.

In the last provincial budget, the government announced measures to draw down the civil service and put a cap on new hirings.

“We don’t have any extra staff to handle the applications,” Dancsok noted. They are dealing with larger volumes of applications with the same number of people, something he said they are looking to address in the next budget cycle. There’s no lack of work to do in the ministry, he said.

One producer told Pipeline News that they had seen the time it takes to process a horizontal well rise up to eight weeks. Dancsok explained that nothing had changed in the process. Certain materials are required with the application. “I don’t think everyone is reading those guidelines,” he said.

Before, applications could be made with information to come later. Now, everything has to be lined up at the get-go. “There’s been a tipping point,” Dancsok explained. The staff simply don’t have time to follow up on incomplete applications.

“We have to move onto the ones that are complete,” he said.

As part of the PRIME project to modernize the business processes of the ministry, Dancsok welcomed industry suggestions for improvements to the system. ɸ Page A6

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 Wes Schoff 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: Evan Myers - Cell: 306-741-2447

Environmental Division Darwin Frehlick - Cell: 421-0491

Lacombe Warehouse: Darcy Dayday - 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 October 2010

Mike McIntosh addressed the banquet audience twice - as the president of the Lloydminster OilÀeld Technical Society and as the chair of the Lloydminster Heavy Oil Technical Symposium.

Photo by Marvin B. Perry ©2010

News

A3

Notes

Compass drilling in Viking

Two types of roast dished out at oil show banquet

By Geoff Lee Pipeline News Lloydminster –The kick-off banquet to the 2010 Lloydminster Heavy Oil Show Sept. 14 will be remembered for two servings of roast.

The first course of beef came with the meal followed by a celebrity roast dished out by Lloydminster Mayor Jeff Mulligan.

Mulligan poked fun at his fellow politicians on hand including Lloydminster MLA Lloyd Snelgrove and Alberta Energy Minster Ron Liepert, all of whom he called important “bastards” because he says he can never get hold of them.

“You guys are a big show. I can’t get a hold of them ever,” he re-emphasized before his more serious opening remarks to a full house at the Lloydminster Stockade, keeping the official show theme of “Challenges, Opportunity, Change” in mind.

“It is indeed an honour to be here,” Mulligan added. “I want to thank the Lloydminster Heavy Oil Technical Society and the guys who put this together under the banner of change and challenges and opportunities.

“We, as a city in this region, and industry have helped to overcome the challenges. As I look around the room and I talk to my fellow guests at the head table, I look down and I see innovation and people that I have known in my 15 years in Lloydminster.

“I have watched their companies grow. I have watched their people become better at what they do

to put Lloydminster where we belong as the heavy oil capital of the world.

“This show has grown in stature as a ‘can’t miss’ event and a ‘can’t miss’ show. The value that it’s provided to everyone coming together to attend these is unprecedented.”

This year, more than 225 exhibitors booked space inside and outside the Lloydminster Exhibition Grounds for the Lloydminster Oilfield Technical Society’s two day bi-annual show held Sept.

15-16.

Mike McIntosh was introduced at the banquet as the president of the Lloydminster OTS and the chair of the annual Heavy Oil Technical Symposium held in conjunction with the oil show.

“I would like to start this evening by thanking all of the exhibitors,” said McIntosh, who wore his OTS hat first.

“Without your support, the Lloydminster Heavy Oil Show would not be the success that it is. Our volunteer membership organizes, operates and promotes the show every two years.

“Our society works to provide technical and social forums for people working within heavy oil. The oil show is one of the goals we have to fulfil those needs of the industry.”

McIntosh noted the OTS has 105 members and a nine-person executive whom he introduced and thanked individually for their volunteer efforts to lead the organization. ɸ Page A7

Compass Petroleum Ltd. plans to drill an additional nine Viking horizontal wells this fall at its Lucky Hills property in the Dodsland area of west central Saskatchewan.

The new drills — scheduled to start in late September, but subject to receipt of well licences from the Saskatchewan Ministry of Energy and Resources — are part of the company’s fiscal 2011 capital budget, approved by the board of directors.

As of early September, the company had drilled and completed six Viking light oil horizontal wells at its Lucky Hills property.

Four of these wells were on production through August. All four wells are currently flowing without the aid of pumping equipment.

For the month of August, estimated aggregate production from the four wells was 242 bpd, or an average of 60 bpd per well. Individual average well rates in August ranged from 41 to 94 bpd.

The last two wells were completed in late August.

At the Aug. 9 Saskatchewan Crown land sale, Compass says it was successful in acquiring 5.5 sections of undeveloped land in west-central Saskatchewan, south of the Dodsland area. Compass believes these lands are prospective for future Viking light oil resource development.

Circumpaci¿c announces acquisition Circumpacific Energy Corporation has entered into an agreement in which all of its outstanding shares will be acquired by a wholly-owned subsidiary of Western Petroleum Commodities Inc., a private Canadian oil and gas company. The price is approximately $9.6 million, or 18 cents per share, representing a 100 per cent premium over the company's 12-month volume weighted average trading price.

The junior producer holds lands in Alberta and Saskatchewan and is part of a joint venture in Australia.

Briefs courtesy Nickle’s Daily Oil Bulletin

A4

EDITORIAL

PIPELINE NEWS October 2010

Pipeline News Publisher: Brant Kersey - Estevan Ph: 1.306.634.2654 Fax: 1.306.634.3934

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

Editorial Contributions: SOUTHEAST Brian Zinchuk - Estevan 1.306.461.5599 SOUTHWEST Swift Current 1.306.461.5599 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

To submit a stories or ideas: Pipelines News is always looking for stories or ideas for stories from our readers. To contribute please contact your local contributing reporter.

Subscribing to Pipeline News: Pipeline News is a free distribution newspaper, but is now available online at www.pipelinenews.ca Advertising in Pipeline News: Advertising in Pipeline News is a newer model created to make it as easy as possible for any business or individual. Pipeline News has a group of experienced staff working throughout Saskatchewan and parts of Manitoba, so please contact the sales representative for your area to assist you with your advertising needs.

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

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

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

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

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

All of Pipeline News content is protected by Canadian Copyright laws. Reviews and similar mention of material in this newspaper is granted on the provision that Pipeline News receives credit. Otherwise, any reproduction without permission of the publisher is prohibited. Advertisers purchase space and circulation only. Rights to the advertisement produced by Pipeline News, including artwork, typography, and photos, etc., remain property of this newspaper. Advertisements or parts thereof may be not reproduced or assigned without the consent of the publisher.

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

Editorial

Oil show nails innovation theme but there’s room for improvement The 2010 Lloydminster Heavy Oil Show and Heavy Oil Technical Symposium Sept. 15-16 lived up to the overriding theme of innovation every which way you looked.

The show website describes the event as a leading edge technology exhibition and “a great opportunity for visitors to discover and network with the substantial knowledge base that exhibitors bring to the show.”

The description goes on to state, “For businesses this show is an excellent format to demonstrate to Canada and the world how heavy oil can be produced in a manageable and profitable manner.”

The first sign of something new to discover at the show started with the ongoing renovations of the Lloydminster Exhibition Grounds which will make the next show that much more attractive when new facilities open.

The opening night banquet on Sept. 14 was also steeped with the innovation theme.

Keynote speaker Murray Cobbe, the executive chairman of Trican Well Service Inc., set the tone with a timeline of the challenges Trican has overcome since its transition in 1996 from a private cement pumping company founded in Lloydminster to a publicly-owned global well service giant today.

Cobbe made a strong point in his speech about the need to hire and train more people to allow service companies like his to stay competitive and innovative.

He said there aren’t as many farm boys left to recruit as there once was, forcing service companies to pursue innovative methods to train and retain workers.

The words “new and improved” popped up at just about indoor and outdoor exhibit with some companies like Advantage Products Inc. from Calgary using the show to launch a new product.

For others, it was the perfect opportunity to pitch the features and benefits of their products and services or to recruit new business and make valuable contacts.

Innovation was also the order of the day at the

Heavy Oil Technical Symposium with a full set of well-researched presentations aimed at boosting heavy oil production in cost effective ways.

There were even a couple of presentations on new oil and gas regulations in Saskatchewan, designed to improve business practices for companies.

If there was any disappointment, it could be the general feeling among exhibitors that gate attendance seemed lower than normal. If official attendance figures prove that to be the case, it could be attributed to a lack of accommodations.

The two shows were held at the time as the start of one of the largest maintenance turnarounds in the history of the Lloydminster Husky Upgrader, putting the squeeze on overnight rooms.

Many exhibitors however, viewed the turnaround as an opportunity to land some work with Husky, now or in the future.

The cool weather was also a factor in attendance, especially for outdoor booths.

One of the best things about the Lloydminster show is that it is open to the public at no charge, allowing oil and gas companies to help boost the PR image of the industry.

That was one of the key points made by Cobbe who said a lot more has to be done by everyone in the industry to sell the positive realities and economic benefits of the industry to the public and government.

As for ways to improve the show, we can suggest having some sort of scheduled company presentation or product demonstration within the exhibit space to generate extra excitement.

Along the same lines, the show could also work with area schools to create an educational assignment for students to learn more about the industry during their visit.

Finally, there could be special awards for best booth or product, as voted by the public, along with draw prizes for the public with a celebrity on hand to make the presentations near the end of the show.

After all, the best way to end any show is with applause. Well done, Lloydminster.

PIPELINE NEWS October 2010

A5

Opinion What’s good for the goose isn’t good for the gander From the top of the pile Brian Zinchuk

On Aug. 29, two back-to-back stories on the CBC National illustrated the disconnect people in Eastern Canada have with the oil and gas industry, and that the industry has with them.

You see, it’s national news when you find a drilling rig working in Quebec. According to Nickle’s Rig Locator (www.riglocator.ca), there were three rigs in Quebec that day, with one actively drilling, and two down.

Just east of Montreal, they are now doing exploratory shale gas drilling.

Standing at the gate in front of an active drilling rig, the reporter noted, “What they’re worried about is this, an exploratory well that forces water and chemicals underground to push the shale gas out.

More and more of these wells are popping up across Quebec, and that has a lot of people concerned.”

And later on, the reporter said, “They have a long, long list of worries – water contamination, the drilling, the trucks hauling material, how it all might af-

fect the economy, and the noise, just to name a few.”

“They will continue to explore, but there will not be, exploitation; if might I say, certificate that will be given on a commercial basis until that time,” said Pierre Arcand, Quebec minister of the environment, in announcing an environmental review and public hearings. He added, “It’s much better for us to develop our own resources.”

No kidding, Sherlock.

It’s clearly a case of not in my backyard (NIMBY). Oh, sure, we want to keep our lights on and our homes warm with gas from Western Canada, but drill here, oh, no, can’t be doing that now.

Some might think Quebec gas is a bad idea as competition for Western producers. Not likely. Every dollar the Quebec government gets in royalties is a dollar we don’t have to pay in equalization.

While gas prices may be low now, don’t expect that to last. As new emissions controls on coal-fired power generation come into play, expect a substantial conversion to natural-gas power plants. They’re going to need a lot of wells in Eastern Canada to power just one of those plants, and we can expect dozens of those plants in the next decade or two. The boon in shale gas production and its downward pressure on price will soon be countered with increased demand.

There’s also going to be opportunity for experienced field workers – rig hands, frac crews, and the like – in Eastern Canada. It will mean that some of our men and women will be heading east for work, instead of easterners always coming here. Some east-

erners might decide to work closer to home.

Conversely, the second story on The National talked about an offshore rig drilling off Greenland, where they have now found hydrocarbons.

This is a case where the industry should leave well enough alone. There may be rigs in the deepest desert and in the most despotic of countries, but there’s one thing those places don’t have – icebergs the size of islands. Greenland is the source of the North Atlantic’s icebergs, and the closer you get, the more likely you will encounter one that’s going to totally ruin your day. The bigger ones are so deep, they routinely scrape bottom. This is not a place where you want to be putting any wells or pipelines.

Even if the rig can get off-station quick enough to make way for an incoming berg, is it really worth the risk?

This is an awfully long ways from Hibernia, where they had to build a berg-proof gravity base that will hopefully survive a hit with a major iceberg.

At Hibernia, the bergs have had a chance to shrink for a few years. Not so further north.

The Gulf of Mexico spill was bad enough. There’s no known way to deal with a major spill in ice.

For drilling in Eastern Canada, folks, get over it. For drilling offshore in the Arctic, industry, don’t even think about it.

On the web: http://www.cbc.ca/video/#/News/ TV_Shows/The_National/ID=1577811529 Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@sasktel.net

Could Saskatchewan partner with Oilsands Quest?

The recent spotlight on Potash Corp. as a pricey takeover target may lead other resource shoppers to find a real bargain investing in Oilsands Quest Inc. The Calgary-based company suspended work on its 30,000 barrel a day commercial SAGD bitumen project at Axe Lake in northern Saskatchewan in mid-August as its looks for long-term financing.

The company also has promising properties at Wallace Creek and Raven Ridge in Alberta and 3.5 billion barrels of discovered bitumen resources under foot.

“We will examine strategic financing opportunities, asset divestitures, joint ventures and other business combinations and select the alternative that maximizes value for our shareholders,” Murray Wilson, president and CEO, told investors the morning after the company announced the stoppage.

He went to say, “We have therefore determined that seeking a strategic partner makes sense in the current market.”

Wilson gave examples of recent partnerships including Petrochina and Athabasca, BP and Value Creation, Canada Pension Plan and Laricina and the Total transaction with UTS Energy Corp.

As with the case of Potash Corp., the final decision by Oilsands Quest will be the one that provides

Lee Side of Lloyd Geoff Lee

the most value for the benefit of shareholders.

If there is a role for the province to play with Oilsands Quest, it could be as a facilitator to help a potential partner broker a deal in the best interests of the province.

Presenting itself as an investment partner is also a possibility for the province Given the fact the province supports a range of resource-based Crown corporations that are helping to build the province in a sustainable fashion, it wouldn’t be out of line to invest in the oilsands with a private partner.

This would also assure the oilsands are developed in a way that leads to the development of much needed infrastructure for the far north and generate substantial jobs and economic spinoffs for communities and First Nations in the area.

It would also ensure the benefits of developing the oilsands would flow within the province, and not to Alberta as the case could be with another investor.

In addition, such a move would provide a measure of security for Oilsands Quest and its shareholders who would stand to gain from the commercial pilot and further development of the bitumen resource.

Provincial investment would end the prospect of another major Saskatchewan resource ending up in the control of a foreign company at the expense of jobs and economic spinoffs for Saskatchewan residents.

Does Saskatchewan really want its major resources to be owned and operated by the likes of Brazil-based Vale SA or Anglo-Australian firm Rio Tinto or as state-backed firms from China and possibly Russia?

While the province can’t stop privately run corporations from being sold, there’s nothing from preventing it from being an investor or private public partner.

Partnering in the development of the oilsands could generate a significant return on investment considering royalties from 3.5 billion barrels of oil.

It’s worth considering while a buyers’ market exists.

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

A6

PIPELINE NEWS October 2010

Hundreds of wells in drilling backlog A building backlog of wells licenced but not yet drilled will drive activity this fall and winter, if it ever dries up. This Savannah rig could be found near Halbrite on Sept. 14.

Photo by Brian Zinchuk

ɺ Page A2 As of Sept. 3, there were 1,658 oil and gas wells drilled in Saskatchewan, compared to 1,054 in 2009 and 2,446 in 2008. The breakdown is

key, according to Dancsok. All of 2008 saw 825 horizontal wells, while all of 2009 saw 409.

There have already been 947 horizontal wells drilled in Saskatchewan this year.

Gas drilling dead Wells dedicated to natural gas production have been almost non-existent this year, after a dismal 2009 and relatively weak 2008. In 2008, there were 725

Artificial Lift Services We live where we work—hiring staff, developing talent, and gaining a first-hand understanding of the operators’ needs. This enables Schlumberger to provide local sales and services for your industry-leading REDA* electric submersible pumping systems and RedaHPS* horizontal multistage surface pump requirements.

Estevan, SK 306-634-7355 www.slb.com/artificiallift

gas wells drilled, and only 205 in 2009. As of Sept. 3, there were only 81 gas wells drilled in Saskatchewan. That’s the worst year since 1982, when Dancsok started with the ministry. That year saw just seven gas wells drilled in the province. In 2003, there were 2,318.

So far, the province’s attempt to shock the flatline of gas drilling hasn’t seen a lot of results. In June, a new royalty incentive was announced.

The new gas well incentive is volume-based and establishes a maximum Crown royalty rate of 2.5 per cent and a freehold production tax rate of 0 per cent on the first 25 million cubic metres of natural gas produced from all horizontal gas wells drilled between June 1, 2010 and March 31, 2013.

To date, only a handful of applications have come in that take advantage of that incentive.

Saskatchewan’s natural gas drilling is concentrated in the southwest. Dancsok noted, “Thankfully, Swift Current is seeing a renaissance in horizontal oil wells in the Shaunavon.”

Emerging plays While the Upper Shaunavon formation was prolific with vertical wells, the Lower Shaunavon does better with horiztonal, multi-stage fracked wells. Dancsok said it has been an emerging play for the last two years. Production in that formation began to take hold in the first quarter of 2007, and had risen greatly by the beginning of 2009.

The new techniques perfected in the Bakken play and used in the

Shaunavon are bringing new life to the Viking formation near Kindersley. Dancsok explained that there are about 6,000 vertical wells in that play, dating back to the 1950s. In total, they produce 9,000 bpd.

There are now 120 horizontal wells in the play, producing 2,500 bpd.

“A technology play, I call it. The geology is there, it’s a matter of finding the tech to crack the nut.”

S a s k a t c h e w a n’s overall oil production has been flat on an annual basis over the last 10 years, running around 425,000 bpd, including light, medium and heavy crudes. That’s an achievement in and of itself, Dancsok pointed out. “We’re replacing that production decline every year,” he said, pointing out Alberta’s conventional production has decline to the point where, if trends continue, Saskatchewan could surpass Alberta conventional production.

Weather Saskatchewan was on a rising trend for drilling ever since spring breakup, and indeed, ever since the beginning of the year. But September saw the drilling rig count drop like a stone.

On Sept. 17, there were only 61 active drilling rigs in the province.

Weather has been the culprit.

Dancsok noted that there were 2,523 well licenses issued as of Sept.

3, but only 1,660 drilled as of that day. That’s a backlog of 863 wells waiting to be drilled.

“When things freeze up, man, things are going to go,” he predicted.

PIPELINE NEWS October 2010

A7

Challenges, opportunity and change theme ɺ Page A3 Next up to the microphone was Heavy Oil Show chair Scott Black who quickly thanked Doug Gilby on behalf of the organizing committee for acting as the master of ceremonies at the banquet.

“This year’s theme, challenges, opportunity and change demonstrates the challenges of producing heavy oil and the opportunities that arise from our local industry,” said Black.

“Many changes have been made here in drilling and servicing heavy oil and gas wells in the heavy oil sector. Some of the techniques developed in Lloydminster are being used worldwide and we are anticipating visitors from around the world and 6,000 to 7,000 people to come to the show.”

The official attendance figures were not available at press time, but the ongoing Husky turnaround may have some effect on the total count of show goers as accommodations were hard to find for out of town visitors, especially with the show and symposium taking place at the same time.

On his second trip to the podium, representing the SPE, McIntosh thanked the OTS for their support of the Lloydminster SPE Heavy Oil Technical Symposium.

“Our goal is to aid in the exchange of information and also work within the community to increase the overall awareness of the oil and gas industry,” said McIntosh about the SPE. “We achieve this goal by hosting our annual heavy oil technical symposium, our monthly technical luncheons and by going out to schools and telling kids about the oil and gas industry.

“I invite you to participate within our section by attending our annual heavy oil technical symposium or the monthly technical luncheons.

“I also encourage you to become a member of the Lloyd SPE. It’s not just for engineers. Everyone, in all levels of disciplines, is needed when it comes to furthering our industry,” McIntosh noted the SPE has more than 92,000 members worldwide.

The banquet was also an opportunity for keynote speaker Murray L. Cobbe, executive chairman of Trican Well Service Ltd., founded in Lloydminster, to donate Trican’s first cement pumper truck to the Lloydminster Heavy Oil Science Centre to kickoff an outdoor exhibit collection.

“On behalf of the Lloydminster Heavy Oil Museum, It’s definitely an honour to accept such a gift from Trican,” said science centre board member Darrel Oracheski.

“They (Trican) have been a mainstay in our oilfield in Lloydminster. It will be something we can build an outdoor exhibit around. We really appreciate it,” he said.

All tickets to the heavy oil show banquet held at the Lloydminster Stockade were sold out.

Photo by Marvin B. Perry ©2010

Lloydminster Mayor Jeff Mulligan launched into the spirit of the heavy oil show banquet with some well received startup jokes targeting some of his fellow politicians in the crowd.

Photo by Marvin B. Perry ©2010

Sales • New & Remanufactured Wellheads & Valves

Rentals • Frac Trees, 3”, 4” & 5”, 10,000# • Gate Valves, 2”, 3”, 4”, 5” & 7”, 2,000# - 10,000# • Miscellaneous wellhead equipment

OfÄce: 306-634-6325 - 24 hour service

CLASSIC VACUUM TRUCK LTD.

300 Imperial Avenue, Estevan (Behind Apex)

Services • Wellhead & Frac Tree Installations

Lyle Grube Burt Blondeau

• Vacuum Trucks • Tractors/Vacuum Wagons • Steamers • Fire & Vapor Suppression Unit • Water Trucks • Air Trailers/Safety Supervisors • Tridem & Quad Pup Trailers

24 Hr Service (306) 483-8697

Alida, Sask.

A8

PIPELINE NEWS October 2010

Communications nexus of the southeast oilpatch Estevan – The pace is quick, at times heartpounding. The flow of data will make your head spin. If you didn’t know better, you might think it’s a command centre for NORAD. It’s not, however.

In a squat white building on Estevan’s Fifth Street, with two radio antennas towering above

it, resides a key part of the infrastructure for the southeast Saskatchewan oilpatch. Estevan Telephone Answering Service (1993) Ltd. (ETAS) is in many ways the nerve centre that keeps over 170 companies, mostly oilfield, in touch with their clients, workers and facilities. If you’ve called someone in

A hive of activity during end of the day safety checks, Estevan Telephone Answering Service keeps hopping. From left are Bev, in blue; Cheryl, in black, Rose, in pink; Pat, in white with a patterned blouse, and Candice, in white. In front of each of them are the large multi-line phones, and behind them are the chalkboards used to keep track of clients’ information.

ArtiÀcial Lift Systems Phone: 637-6055 Fax: 636-2606 400 Kensington Ave., Estevan

Proudly made in Canada

AMPSCOT® PUMPJACKS

the oilpatch in that region after hours, you’ve likely talked to one of their operators.

The company has been in operation essentially since the oilpatch started in the Estevan area. The current part owner/manager. is Rose Saxon, who took over in 1993 with several silent

Regina, Sask.

Custom Industrial Accommodation Skid shak office & Washroom units

partners. She had been working there since 1980 for a previous owner.

“Most of the time we answer the company phones and transfer the call,” Saxon explained.

“If we can’t [transfer the call], we take a message.

People don’t want to talk to a machine.”

“People like to talk one-on-one,” noted Joyce Olheiser, assistant manager, and Saxon’s second in command. Olheiser started 26 years ago (also with previous owner) when she was 16, and has only taken a brief time away from it.

“I like it,” she said.

“You have to think fast and move fast. The chal-

lenge is what keeps the job interesting. Monthend, well, that’s just a blast.”

“If someone’s stuck in a hole, they don’t want to be pushing one for English or French, two for Joe or three for Ann and so on, like on message manager,” Saxon said.

“When they close their doors at 5 o’clock, they rely on us. They don’t blink an eye.”

It could be called a command bunker, or a communications hub, but they simply know it as “the office.” There are five stations with phones, each with eight lines and two add-on modules, plus two spare

• 12’ x 60’ • 12’ x 40’ • 12’ x 28’ • 10’ x 24’ If it’s not hard, it’s just a shack!

Ph: (306)545-SHAK (7425) www.hardshak.com

4” HWDP - W/4” Full Hole Connections Key Key SeatSeat Wiper Reamers Lateral Wiper Reamers BRAD LLAMO AMO NT A GNE AMONT NTA

(306)-739-2263 • Cell: (306) 577-9818 email: smrltd@sasktel.net

single line phones. The phones have large displays, and will in most cases show who the call is for, such as ABC Oil Company, for instance.

Several computers line one wall, keeping track of automated monitoring systems, including several nearby gas plants. “When a [field compressor] goes down, the operator doesn’t have to go out.

We can actually start it for them,” Saxon explained.

Compressors are checked about 10 times a day.

In the corner are two-way radio systems used by several firms.

They see most of their use after hours.

Work Alone Safety procedures in recent years have made a big impact on the business. Now, no one is allowed to “work alone” after hours. If someone is going on a field call, they must check in on a fixed, regular basis.

When they are done and home, someone has to know. ɸ Page A9

CLIFF NANKIVELL TRUCKING LTD.

Kalvin Nankivell President

#6 - 461 King St. • Estevan, SK 637 - 3460 www.petrobakken.com

OfÀce: (306) 462-2130 Fax: (306) 462-2188

Claudia Mullis Vice-President Box 123 Kisbey, SK S0C 1L0 nankivelltrucking@signaldirect.ca

PIPELINE NEWS October 2010

A9

No one wants to press “2” when they’re stuck

Several systems are at play here. Everything from the clients’ data under plexiglass to the giant paperclips used to keep call in schedules has been meticulously developed by Estevan Telephone Answering Service to keep order in the chaos of answering phones and alarms for over 170 clients.

out of town. Some large companies have separate divisions listed.

“We have a binder for each board for more information,” Saxon said. That information is updated frequently.

Asked why they haven’t gone with an electronic system, Saxon said they haven’t found one that works for them yet.

Messages are recorded on message pads and go onto a rack above the phone of the operator who took it. Once the message has been delivered, it goes into a specific plastic bin, and is later filed by the midnight operator, who does a lot of documentation. They keep records of all messages for three months, just in case someone needs to track

boards, chalkboards that mation for clients at a ɺ Page A8 “You have to make go from floor to ceiling, glance. The boards spell sure they get in and get providing contact infor- out who is on call, who is out. They want to get home to their families,” Joyce said. “From five in the afternoon until UN ALLEY AND TD 8 a.m., we have to take care of them.”

The checks are done every hour or two hours.

Often it involves the answering service calling out to the field staff.

“We have timers here,” Olheiser said. “Another senior girl Brenda (30 yrs.) suggested that, and they work well. We call them if they don’t call us.”

It’s one of a number of processes and #306 Wicklow Centre - 1133-4th Street, Estevan, SK methods that have evolved over the years. www.sunvalleyland.ca • land@sunvalleyland.ca In the corner are the big

S

V

L

L .

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

306-634-6684

down a number.

Things get really frantic when the power goes out in the region.

Automated batteries call in with alarms. Field hands need to be sent out.

They take being fully operational very seriously. There is a bank of very large uninterruptible power supplies in the corner under the two-way radios. More power supplies are used elsewhere.

“It looks like a

Christmas tree – all lit up. Wow,” Olheiser said.

“If we had a bad power outage, we can call in a lady or two and get rid of alarms and call the operators on call,” Saxon said.

Only once have they had a total disruption, when a grain elevator fire nearby forced an evacuation in 2002. They had to call all their customers and tell them to man their own phones. ɸ Page A10

BADGER DAYLIGHTING™

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

Full Service Hydrovac Fleet Available to Saskatchewan • Tandem Tandem • Tri Axle • Tandem • 4 x 4 Regina................................ (306) 531-9487 Saskatoon ......................... (306) 934-2964 Swift Current ..................... (306) 773-0724 Lloydminster ..................... (306) 875-1640 Kindersley ......................... (306) 463-6006 Carlyle................................ (306) 577-3400 Weyburn ............................ (306) 848-0906 Carnduff............................. (306) 482-5270

Toll Free: 1-800-465-4273 www.badgerinc.com

Welding and Fab Shop Trenouth Family Holdings Ltd.

Radville, Sask. • 306-861-7558 • Custom orders of aluminum & stainless welding • Custom designed trailers • Truck decks • Scrap & utility bins • Jockey boxes • Agriculture bins & hoppers

Journeyman Welder on Staff www.saskgrainbins.com

* Bed Trucks * Winch Tractors * Pickers

RIG MOVING Phone: 482-3244

A10

PIPELINE NEWS October 2010

Heart-pounding work keeping the phones going Éş Page A9 Typical day A typical day will start with safety checks running from 6 a.m. until 9 a.m. The operators spend the rest of the morning doing updates.

Another round of safety checks occurs from 11 a.m until 1 p.m. In the afternoon, the operators put information on the boards for the next shift. “They get their safety checks books out for the next round,� said Olheiser.

Things are really hopping from 4 p.m. until 6:30 p.m., when ďŹ eld hands are calling in for their end of the day safety checks. After that, it’s after-hours mode. “Then we get calls – guys get alarms on their cellphones. They have to go out. We have to do an after-hours safety sheet on them,â€? Saxon said.

In other cases, callers are seeking equip-

sorbed by ETAS after the owner retired.

Coee’s important in a 24-hour-a-day operation, but some don’t even drink coee. “Most of us are used to ‘go go go.’ You can’t even take o your knapsack. It’s mentally stressful, but each of them like it,â€? according to Olheiser. “You can’t be laid back. It just doesn’t work.

Indeed, the operaGoing with what works, chalkboards are an effective way to keep track of numerous clients’ contact tors usually bring sandinformation each day. Rose Saxon, in pink, owns Estevan Telephone Answering Service along with wiches, because there’s several silent partners. no point in bringing ment for the next day, their usual. “I couldn’t is conďŹ dential,â€? Saxon nizations we answer for something to warm up and they are transferred have done it without said. on a volunteer basis,â€? in the microwave. You’ll to the man on call. them,â€? she added. “StaMost of the com- Saxon said. ďŹ nd yourself heating it Got what it takes? ing is an ongoing chal- panies that they answer In addition to their up several times before For the last three lenge. We currently have phones for are located regular business, the you have time to get to years, they’ve been deal- a sta of 11 ladies.â€? throughout southeast centre also handles the it. ing with a labour shortWhat does it take to Saskatchewan. Two are Envision Counselling During lightning age. be an operator? For one, based in Virden, Man. & Support Centre’s 24- season, Saxon noted, “We’re a shift work you need legible hand- Approximately 85 per hour sexual assault sup- “We can get called in at business. We ďŹ nd it hard writing. “You have to be cent are oilpatch related. port line for men and 10 o’clock or two in the to replace people. Those able to multitask, and They also hand real es- women. morning, and still have people are very valu- retain information. You tate agencies, vet clinics, There was a simi- to do our shift. able,â€? Saxon said. Some have to be a team player,â€? and even the Estevan lar answering service in “It’s pretty hard on employees come in for Saxon said.

Bruins.

Weyburn, but much of the home life,â€? Olheiser shifts over and above “Everything here “We have ďŹ ve orga- that business was ab- said.

3 † 3Improve Fracture Conductivity † 3Achieve Cost Savings † 3Improve Worksite Safety † 3Minimize Environmental Impact

† Achieve Higher Ultimate Recovery

You need to save time and money to make economical wells. Look to Packers Plus open hole, multi-stage completions systems to achieve cost savings.

We recently completed a job that saved the operator 11 days as compared to the previous cased hole operations. No matter what your daily costs are, this translates into signiďŹ cant cost savings.

And to top it off, the well produced beyond expectations.

When it comes to your bottom line, you know how important costs truly are.

Visit our website or talk to us today.

We’ll show you how you can simplify your fracturing operations to save both time and money.

6RPH RU DOO RI WKH V\VWHPV PHWKRGV RU SURGXFWV GLVFXVVHG KHUHLQ PD\ EH FRYHUHG E\ RQH RU PRUH SDWHQWV RU SDWHQWV SHQGLQJ LQFOXGLQJ 86 SDWHQW QXPEHUV

ጘ om

ersplus.c www.pack 56 306 634-90

PIPELINE NEWS October 2010

A11

Rain slows drilling in southeast

By Brian Zinchuk Estevan - Luke Bryan may sing that Rain is a Good Thing, but he’d might be told to buzz off by drillers in southeast Saskatchewan. Rain has not been a good thing.

A common refrain could be heard from drillers operating in southeast Saskatchewan by mid-September. They had locations to drill, but were waiting on weather. As holes were completed, they couldn’t move to the next one due to the incessant rain that had plagued the industry this year.

Saskatchewan’s drilling rig count had been climbing into the high 80s in early September, but fell like a stone as rain once again saturated the province.

“We just finished one well. We’re waiting to move the rig. We have a location to go to, but we can’t move. It’s too wet,” said Kevin Fuller, vice-president of operations with Lasso Drilling Corp., a two-rig company with both of their units in the Stoughton area. On Sept. 13 he noted that as the second rig was due to complete the well it was working on, it, too, would likely end up in the same predicament.

Jim Kopec, general manager of Weyburn-based Panther Drilling, said they were “shut right down,” on that day. The company operates three rigs. ɸ Page A12

There were times this summer when rigs were able to get some work done, like this Lasso rig north of Stoughton in late July. But as the summer progressed, more and more precipitation has stalled drilling.

Photo by Brian Zinchuk

Three Star ENVIRONMENTAL * Environmental Protection Plans * Impact Assessments * Pre-Site Assessments * Environmental Audits & Assessments * Well Site & Battery Abandonments * Drilling Waste Management * Pre/Post Water Well Testing * EM Surveying * GPS Mapping

443-2429

FAX: 443-2453 BOX 160, ALIDA, SASK. S0C 0B0 www.threestarenvironmental.com

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

PHONE: (306) 634-7700

ESTEVAN, SASKATCHEWAN S4A 2H8

TANKS

(All sizes)

FAX: (306) 634-9963

ELECTRICAL

• Mud • Shale • Premix • Processing • Gensets - 40 KW - 200 KW • Polymer • Cone • Flare • Floc • 400 BBL • Light Towers • Transformers GENERAL Mudvac's, Transfer Pumps c/w Manifolds & Hoses, Trash Pumps, Matting All Sizes,Bowen Power Swivels, 125 h.p. Boiler OILFIELD HAULING

A12

PIPELINE NEWS October 2010

Weather slows rig moves to a crawl ɺ Page A11 “We’ve had one rig sitting for two weeks. We can’t move it out. One might be able to move,” he said. “We’ve been good up until this week. I’m hearing the same from the service rig guys and the fluid haulers.”

CanElson Drilling, which took over Carnduff ’s Totem Drilling this past summer, has five rigs and one nearing completion.

On Sept. 13, three were active, and two were down. “We’ve got a couple of rigs sitting, waiting on weather,” said operations manager Michael Smith. “We have been pretty lucky. We have places to go to, but it’s too wet to do it.

“It’s a day to day thing. Today, it’s drizzling again, delaying one move.”

Ensign Big Sky Drilling, based in Oxbow, had nine of 20 rigs active that day, with three on rig watch, waiting between holes for the weather to improve. “It’s really wet, unbelievably in certain areas. It’s a general thing,” said operations manager Rick Mann.

Two of their rigs were moving in Manitoba at the time.

Ray Coleman, AKITA Drilling Ltd.’s operations manager, concurs with the rest, saying that the rain has absolutely impacted operations. “We have a couple of rigs that were supposed to start projects on May 1, and still haven’t moved yet.”

Those rigs are meant for potash operations.

On Sept. 13, they had six rigs in the Lloydminster area, and only one was working, due to the wet conditions. Another was down in the Swift Current area. One more was working in the Virden, Man.,

area, but it, too was rained out.

“It’s definitely impacted our industry,” he said.

However, Saskatchewan’s general attractiveness has been high. Of AKITA’s 40 rigs, Coleman noted that more have been in Saskatchewan than he has

don’t want you tearing up their roads when they’re soft. With the amount of moisture, the roads are saturated to the point where it’s like spring. They’re soft,” he said.

To cope with such conditions, they used specialized high-floatation units called sows and commanders to bring rig components out of leases and onto hard roads. From there, the pieces are loaded onto conventional trucks for the move.

A 10 hour move could see up to four or even six hours added, Krpan explained.

The advent of trailers called “wheelers” with high numbers of wheels – 16 or 24, have helped, he noted.

But before you move, you need somewhere to go to. That’s pretty tough, when leases need to be pumped clear of water, first. “The equipment can’t build the leases. It’s too wet.”

“The torrential rain showers have been a big factor,” he said.

At Fast Trucking of Carnduff, general - Ray Coleman, manager Dennis Day said “We’re busy, when AKITA Drilling Ltd. it isn’t raining.”

As for floatation units, they’ve built lots, he said, and are in the process of adding another converted rock truck with large floater tires. “If we didn’t have them, it would be real tough.” ever seen in 25 years with the company. A lot of that “Lots of places, you can’t get into,” he noted. has to do with Saskatchewan’s more oil-based drillEven if they can get a rig into the lease, support ing as opposed to natural gas-based. trucks like casing pipe haulers can’t.

Rig movers They generally work seven days a week, so if it “It’s not bad when the weather co-operates with rains for four days, they will have four days of rigs us,” said Weyburn-based Circle D Transport manag- backed up. “If it rains, they don’t mind a day off,” he er Brian Krpan. But co-operation is not what they’ve said of their staff. been getting.

But Day looks on the bright side. “It won’t be “It’s been like a summer-long breakup. The RMs long, and it will be frozen,” he said.

“We have a couple of rigs that were supposed to start projects on May 1, and still haven’t moved yet”

Call Leslie Smith or Andy Broccolo

842-2202 160 3rd Street Weyburn, Sask smiles@royallepage.ca “Helping you is what we do.” www.weyburnhomes.ca 2+1 Bedroom

3 Bedroom Condo.

224 2nd Street

#204-738 5th Street

2 Storey, 5 Bedroom.

Reduced 425 5th Street

MLS#373788

MLS#365151

MLS#373105

$132,500

$148,900

$184,000

3 Bedroom Mobile.

2+2 Bedroom

3 Bedroom Townhouse.

3 + 1 Bedroom Bungalow.

11 Weyburn Trailer Court

Reduced 539 9th Street

2 Bedroom Bungalow 414 Albert Street MLS#380477

$94,900

SALE PENDING

SALE PENDING

SOLD

SOLD

SOLD

608 Barber Cres.

MLS#379080

SOLD

118 Montgomery Crescent

MLS#379578

MLS#373705

$197,500

$219,000

$259,900

New Build.

New Build.

27 9th Street

667 Barber Crescent

663 Barber Crescent

MLS#376740

MLS#378473

$409,000

$424,000

225 Bean Crescent MLS#376006

MLS#380201

$339,900

$378,000

3 Bedroom Bungalow.

34 McCullough Street - Fillmore

3 Bedroom. #3 Coteau Avenue Halbrite

MLS#373563

MLS#378481

$116,500

$119,500

3 Bedroom Bungalow 708 Assiniboia Ave. - Stoughton

Restaurant.

MLS#362424

$106,500

$187,000

$292,900 New Build.

Bannerman Pointe Highland Village Condominiums Now pre-selling!

Adult living at it’s finest!

50% SOLD Don’t Wait – Buy Now!

502 Railway Avenue, Radville Located at corner of Bannerman & 2nd Avenue.

MLS#380049

MLS#371092

Starting at $161,475 + up

$169,900 each

102-1638 Clark Ave. • MLS#377210, 103-1638 Clark Ave. • MLS#377219 203-1638 Clark Ave. • MLS#377226, 204-1638 Clark Ave. • MLS#377235 302-1638 Clark SOAve.L•DMLS#377229, 303-1638 Clark Ave. • MLS#377231

Homes are all 2 bedroom, 810 square feet, in-home laundry, 6 appliances, electrified parking stall.

Call Leslie for more information.

PIPELINE NEWS October 2010

A13

Eagle builds two rigs at once Special Pull-outt

By Brian Zinchuk Carlyle – In recent years, it’s been common for smaller drilling companies in southeast Saskatchewan to incrementally grow one rig at a time. Eagle Drilling Services of Carlyle is going one better this fall, however, rolling out two new drilling rigs within months of each other.

“We felt we needed two more to satisfy our customers,” said Derek Big Eagle, president and general manager.

The first, Eagle Rig 7, should be in operation in early October. The second, Rig 8, is expected to be completed before the end of the year.

This comes from a company that started operations five years ago this past summer. The additional rigs will increase staff levels to around 210.

The list of vendors supplying parts and services for the rigs is long, but the actual assembly of the rigs is being done by Eagle staff at their Carlyle yard.

The principle fabrication work is being done by Do-All Metal Fabricating, both in their Estevan and Glenburn, N.D. plants.

Do-All had been working on a spec rig to the Eagle design, and Eagle chose to go with it and add another. The work began in earnest in July.

There have been some fabrication delays. “When you build a $7 million rig, it takes a little time,” Big Eagle said.

P S Electric has done the wiring for all of Eagle’s rigs. Boilers are supplied by Saskatoon Boiler. Hydraulic systems came from Wil-Tech Industries in Estevan.

Derrick Big Eagle said two more rigs were needed to satisfy their customers. Big Eagle is the president and general manager of Eagle Drilling Services.

Photo by Brian Zinchuk

Engine packages were put together by Southeern rn Industrial I and Truck Ltd. of Weyburn. The mud p pumps um use two-speed Rouse Industries clutches, b uillt in Weyburn and affiliated with Southern Inbuilt d du dustrial. ustt Remote controlled catwalk There are several modifications from the standard d ard d Eagle rig design being implemented on Rigs 7 aand nd 8. “We’re doing a few different design changes,” Lloyd Bendtsen, one of the company’s two eexplained xpl fieeeld fi ld d supervisors. Harvey Turcotte is the other.

One of the most notable is the increase in size of the slide out. Eagle rigs all place the driller the doghouse d inside insid a climate-controlled slide out. This new confi increases the length of the slide out from figguration gur 6-ft.

6-ftt. to 11-ft, 6-in., making room for the motorman to to also al work in the doghouse. His position in previous ous rigs was in the manifold shack, at the end of the catwalk. catw Bendtsen said they are addressing a communication catio issue. Before, the motorman would react to hand hand signals. By placing him in the enclosed slide out, oou ut,, he will have a better line of sight. “You’ve eliminated naatee hand signals. Now it’s all firsthand.” n It I will be done by incorporating a remote control box, boox, “like you’re flying a model airplane,” Bendtsen b explained.

“We’re always trying to improve.” eexxpl “Every moving part is controlled from the slide out.” out. ou ut.”

Rain-inspired modification Dealing with the unusually wet weather this year has haas led l Eagle to implement the ability to incorporate its own it ow self-levelling jacking system in both new rigs, its accco ac according to Big Eagle.“Due to all the wet weather, we thought it was a good time to put them in.” ɸ Page A14

Capable of drilling any well SE Saskatchewan or SW Manitoba has to offer.

Cost-efficient drill times Experienced Personnel Utilizing the latest in Drilling Technology

A14

PIPELINE NEWS October 2010

Motorman moves into slide out The catwalks of Eagle Rigs 7 and 8 will not only be hydraulic, but wirelessly controlled from inside the doghouse slide out.

ɺ Page A13 The system can save companies money on having a third party rig jacking company come in and it eases on wear and tear of the rig.

It’s very rare that a rig needs to be levelled, according to Big Eagle.

But when needed, it’s good to have the ability.

“If the rig goes out of plum, it has a possibility of wearing on the casing,” he said, noting jacks are not standard on rigs in southeast Saskatchewan.

“We’re all set up so you just go down, open the cupboard door, and start pulling levers,” he said.

The system has six jacks – one in each cor-

ner, and one in the centre of each side of the substructure.

“This year has been very wet. The conditions have been trying,” he noted, adding the moisture has not been letting up.

Indeed, after a soggy Labour Day long weekend, they got more rain by the end of the week. The continuing moisture could be seen having an impact on the total rig count for Saskatchewan in early September.

They may retrofit other rigs if its benefit is proven to be worth the expense.

More horses Previous Eagle rigs have had an 850 horsepower rating. These will

Congratulations Eagle Drilling Services on the completion of Rig #7 Proud to be of service.

Service Facility: Blackfalds • 403.885.BOPS (2677)

B.O.P. SALES & SERVICE

Contol (Accumulator) Systems, Parts & Service

KENDALL'S AUTO ELECTRIC LTD. proud to congratulate & supply

Congratulations to

Eagle Drilling Services of the completion of Rig #7

306-453-6773 1020 6th Street, Estevan • 634-2312

come in at 1000 hp. The increase is due to demand from oil companies, according to Big Eagle. The Cummins engine packages have been specially designed

by Southern Industrial, he noted.

Staffing “We’re doing some promotional setups within the company,” Big Eagle said. For instance, Jason Geysen, the toolpush for Rig 7, will come from Rig 2. He will be bringing several others with him.

In turn, Geyson’s relief will step up to take over that rig.

“The higher ranking setups – drillers, toolpush and derrickhands, are within the company,” said Big Eagle.

Each new rig will require 25 new employees.

Big Eagle said they have had no problems in finding new people, explaining they have proven to be a good, growing company. “We’ve treated our people well and kept our rigs busy.”

Very seldom do they use camps. Typically hands will carpool to and from the rig for eight-hour shifts.

Generally most work is within a two hour radius of home base. That’s changing, however.

“The fields are getting bigger and wider.

Eventually this might change,” Big Eagle said, pointing to drilling west of Bengough and around Waskada, Man.

www.carlylerv.com

PIPELINE NEWS October 2010

A15

Wiring it together Estevan – P S Electric of Estevan has been the principle electrical contractor for Eagle Drilling Service’s new rig construction since the early days of the drilling company’s operation. In September, the Estevan-based contractor was putting the finishing touches on Eagle Rig 7.

“They started out having some pieces manufactured and wired in Alberta, two pieces of an eight-piece puzzle,” recalled Harvey King, owner of P S Electric. “We’ve done all the rest.”

In the case of Rig 7, another contractor will be installing the wireless controls of the hydraulic catwalk. P S Electric has been doing the rest.

“If you’re a driller for Eagle, you’ve got it made,” King said, in reference to the slide out design of Eagle doghouses that keeps drillers in a climate-controlled environment.

He said it is a technique used far west of southeast Saskatchewan, and it’s all about employee retention.

To wire a rig, it’s roughly an 800 to 1000 hour project, depending on the extras, according to King. For Rig 7, it’s been spread over five months. “They’ve given us quite a wide window,” he said.

“In our terms, the mud tank is 25 per cent of the job. In their case, they have two mixes, complete with remotes,” King explained.

He said doing so is an excellent idea, because it provides the option of a precharge.

“In their case, you’ve got six motors, plus provisions for the Flygt, all explosion-proof,” King said. A Flygt is also referred to as a trash pump, or sump.

There are several forms of explosion-proof wiring, he explained.

“It’s elimination of possible ignition sources in various degrees,” he said. That includes sealed, robust cast or machined enclosures. Plug-ins, for instance, require a twist to make contact.

“There is a machined area that limits the gas that can escape,” King said. “If it can’t escape, it can’t explode.”

The main power distribution for the rig is 480 volt three-phase power, plus a 120/208 service by taking a single phase off of the three phases. The three-phase power runs the bigger motors, whereas the single phase power is used for lighting, convenience and control. ɸ Page A16

N O C

T A L U T A R G

!

S ION

Proud to be your supplier!

Girard Bulk Service Ltd.

P S Electric keeps a pre-wired trash pump on hand just in case.

Congratulations on the completion of Rig #7

PROPANE

ESTEVAN

OXBOW

ALIDA

CARLYLE

REDVERS

453-2262

452-3216

134 4th Street

637-4370 483-2826 443-2466

Congratulations

on the completion of Rig #7 For all your Petroleum & Oil needs

SOUTHERN PLAINS CO-OP PETROLEUM/AGRO CENTRE Carlyle • Estevan • Oxbow

• Bed Trucks • Winch Tractors

• Pickers • Rig Moving

482-3244

A16

PIPELINE NEWS October 2010

'Explosion-proof' connections required ɺ Page A15 Eagle uses three circuits running up the derrick, more than others do, King noted. “A lot only use two circuits up the derrick.” That affords better opportunities for proper lighting.

“They light their masts well,” he added, pointing out there will be four strobe lights atop it. “You’ll be able to see it a long ways away.”

Most of the work is in the fittings and terminations. “We do a reasonable compromise between cord and conduit in our installations,” he said.

Conduit provides mechanical strength, while cords allow for flexibility.

The P S Electric shop does a lot of maintenance on such cords as time goes on. “It’s a very robust environment. You’ve got big trucks moving things around and the guys who swing big sledge hammers.”

King noted, “If constructed properly and the crew looks after things properly, you don’t have to do a lot of maintenance.”

The most people they will have working on a rig at a time is four or five. Any more, and it gets too tight. “You work almost

Tyson King of P S Electric shows an explosion-proof rated electrical plug, the type used on oil rigs.

a shack at a time, not a whole lot more.”

On Sept. 10 they had three people tying in a new generator and preparing a power supply at the Eagle Carlyle yard. With some finishing touches to the pumphouse and derrick, their work in Carlyle was nearing completion.

“We get most of our work here, and the rest on site,” he said.

P S Electric’s base of operations is just a short drive up the road from the Do-All Metal Fabricating yard, where much of the rig’s components come together.

Donna Fleck, office manager for P S Electric, said expectations of quality and safety have risen in the industry.

King noted that 20 years ago, his work was primarily on old equipment.

“In this decade, we’ve done 15 rigs, a lot local. You’ve got rigs less than 20 years old. Twenty years ago, you had a piece of iron, and you made sure it worked,” he said.

Companies are spending more money on newer iron, with leads to less maintenance required, and improved safety.

Congratulations Eagle Drilling Services

is proud to be the supplier of your

Proud to have Supplied the Hydraulic Spinning Equipment

Rig Manager Shack And Wellsite Trailer

Congratulations!

861-5655 Go to: www.dembytrailer.com

Con’s Energy Services Ltd. #3 - 1208 - 10th St. Nisku, Ab. (780) 955-3441

PIPELINE NEWS October 2010

A17

Moving to new rig Carlyle – Eagle Drilling Services likes to promote from within. When you expand your fleet by a third, that makes for a number of opportunities.

One of the people that will be moving over to Eagle Rig 7, the first of two rigs to be commissioned this fall, is Kevin Keyes, driller.

Keyes, 40, is following rig manager Jason Geysen, both of which are coming over from Eagle Rig 2.

Keyes hired on with the firm two years ago as a driller. He’s worked in the patch for the better part of 15 years. He used to farm near Redvers, but not anymore. “No money in it,” he said.

Like many rig hands, Keyes began doing rig work as a way to supplement farm income, particularly in the winter. He roughnecked for three years, was a motorhand for five years, and a derrickhand for three years. Ever since then, he’s been a driller.

“It was just something I thought I’d try,” he said.

“I liked it, liked the crew, liked the work. There are not many jobs you can make this kind of money for the hours you work.”

There’s always something different, he added.

Most of his early career was with Ensign Big Sky Drilling. He found Eagle to be a smaller, more personal company. His work was also somewhat steadier.

He’s spent the summer working on building the rig, both in Estevan and Carlyle. It’s the first new rig he’s assembled. Keyes said it is a learning experience, seeing how it is put together.

When he’s not on the rigs, Keyes golfs in the summer and plays rec hockey in the winter with the Redvers Dirty Dogs. Keyes is a defenseman. “I hunt a bit,” he added.

Kevin Keyes, in black, assists two fellow employees in putting a guard on the mud pump system for Eagle Rig 7.

Steel Energy Services Ltd.

Proud to Congratulate

on the completion of Rig #7 Nisku, AB • 780-955-5599

Congratulations to

Eagle Drilling Services on the Successful Undertaking of Building Rig #7

Shelley Schroeder

Andy Schroeder

• Construction Safety OfÀcer

• Battery Operating/ OilÀeld Consulting

• Health & Safety Administrator

• Construction & Pipeline Supervision

• External Safety Auditor

• Service Rig Supervision

AS &

OILFIELD OPERATING LTD.

106 Souris Ave. N., Estevan, Sask.

Ph: (306) 634-4087 Fax: (306) 634-8817 E-mail: as.oil@sasktel.net

A18

PIPELINE NEWS October 2010

Welding on another rig, then another Carlyle – As Eagle Drilling Services has grown over the years, so too has the involvement of welder Robert Bevan of Carievale. He does most of the welding for Eagle these days, and could be found doing fabrication work on the new Rig 7 in early September.

“You have to have someone with the patience to do the small

stuff. It’s tedious, very tedious,” he said, working on the dogleg of the standpipe. The dogleg is an offset in the pipe, allowing the derrick portion to connect to the substructure.

Bevan, 59, lives out in the country, but he doesn’t farm. “I have all my land sowed to grass.

No money in it,” he said in a common refrain often heard from farmers

301 Kensington Ave. Estevan, SK. Phone: (306) 634-3616

who have switched over to the oilpatch. “I don’t know if anyone’s going make money this year.”

“My dad died when I was 18, so I started farming right out of school,” he said. But before he passed, his father had already instilled in him a valuable skill. He taught his son to weld at the age 10. Eventually, Bevan would go on to get his journeyman

3902 - 75th Ave. Leduc, AB. Phone: (888) 835-0541

www.bbaxtertransport.ca

and pressure ‘B’ certification.

After farming for a while, he realized he needed a second income.

He started welding fulltime in 1986. “I worked for Fast Trucking for 10 years before that.”

While at Fast he drove truck and dozer, and also welded.

He married Bonnie in 1974, and they now have five grown children. Bonnie Bevan has done the business’ admin work the whole time.

Eagle Drilling Services is his primary client, and he has worked with them since the company started over five years ago. They keep him busy, he said.

“I used to be here and there before. They started building rigs, then another, and another.”

“I’m still running out to the rigs,” Bevan said. Some of the work includes casing bowls, casing cuts, rig repair and fabrication work for

new rigs.

He also does some farm welding, “if you’ve

got five minutes and someone wants something fixed.”

Welder Robert Bevan lines up the standpipe on Eagle Drilling Services’ Rig 7 in their Carlyle yard.

Photo by Brian Zinchuk

& Trucking Service Hwy. 13, Carlyle • 453-4446

Proud to be of service & congratulate

Proud to Congratulate and be of Service to

on the completion of Rig #7!

Congratulations on the Completion of Rig #7 Dale Gudmundson, Agent

PO Box 519, 102 Railway Ave. W. Carlyle, Sask. S0C 0R0 Phone: (306) 453-2833 • Fax: (306) 453-6478

Robert Bevan Carievale, Sask.

Ph: 483-7248

PIPELINE NEWS October 2010

A19

Dennis Steele recently joined Eagle Drilling Services at its new, full-time safety manager. Here he can be seen on Rig 7, being assembled in the Eagle yard.

Dennis Steele, with the papers in front of him on the left, speaks to the rig managers and Àeld supervisors of Eagle Drilling Services.

New safety manager Carlyle – With a growing company, it was time for Eagle Drilling Services to have a dedicated safety manager. Until recently, Lloyd Bendtsen, one of two field supervisors with the firm, had also covered the safety side.

In mid-August, Dennis Steele joined Eagle as the new safety manager. He’s from Carlyle, and has worked in the oilpatch for many years, but typically commuted to Estevan. Now he can work near home. He was recruited by Derrick Big Eagle, president and general manager of Eagle.

“Derrick approached me to take over the safety department. The opportunity sounded very attractive,” Steele said. It saves him two hours a day driving.

Steele had most recently worked with PetroBakken in Estevan, having worked with TriStar and Talisman before that. His experience includes supply management, operations, and short term maintenance. He has 16 years under his belt as a safety instructor and 25 years in the industry.

“My sons both worked at Eagle Drilling. One still does. My older son told me it was a very safe company to work for,” Steele recalled, noting that impressed him.

The company’s goal is to be a leader in safety, he noted.

Up until July, Eagle had racked up the enviable total of 1.45 million man hours without a lost-time accident. Unfortunately that streak was broken with an ankle injury.

“I’ve been doing a lot of observing, meeting people, getting out on the rigs,” Steele said.

On Sept. 8, he had his first opportunity to meet with all the rig managers and field supervisors, laying out his goals.

FLO DRAULIC WEST

Congratulations on the Completion of Rig #7 Proud Supplier of Hydraulic Components Nisku, A.B. • 1-780-979-0333 • Toll Free: 1-866-979-0333

Congratulations

Eagle Drilling Services Weyburn, SK

Congratulations

Eagle Drilling on the completion of Rig #7

A20

PIPELINE NEWS October 2010

Building the hearts of the rigs At the far end of this belt is the Rouse MPD2, which stands for mud pump drive, two speed, installed in Eagle Rig 7.

This is an engine package put together by Southern Industrial and Truck Ltd. of Weyburn for Eagle Rig 7. It is on the draw-works.

Photo by Brian Zinchuk

Congratulations Eagle Drilling Services on the completion of Rig #7!

126 Lamoro Street Estevan

(306) 634-5150 BRENT GEDAK WELDING www.brentgedakwelding.com

Congratulations Eagle Drilling Services on Rig #7!

Safety Trained Drivers

Dan-D Trucking

24 Hour Service

“Serving the Oil & Gas Industry Since 1985”

Radville, SK • 306-869-3168

Congratulations Eagle Drilling on the completion of Rig #7 DISTRIBUTION INC.

would like to congratulate Eagle Drilling Services on the completion of Rig #7 Complete Oilfield & Industrial Service & Distribution 24 HOURS A DAY!

93 Panteluk Street, Kensington Avenue N, Estevan, Saskatchewan PHONE: 306-634-8828 • FAX: 306-634-7747 cordell.janssen@nov.com • www.nov.com

Congratulations on the Completion of Rig #7 Eagle Drilling Services!

Trucking Estevan Ltd.

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

315A Kensington Ave., Estevan, SK

(306) 634-2835 Fax (306) 634-2797

40B 18th Street, N. E., Weyburn Ph: (306) 842-5081 Fax: (306) 842-5309

www.apexdistribution.com

www.samstrucking.ca

Weyburn – Weyburn-based Southern Industrial and Truck Ltd., and sister company Rouse Industries have been providing the beating heart of Eagle Drilling rigs, and new Rigs 7 and 8 are no different.

“We build power units for drilling and well servicing,” said Dustin Rouse, industrial sales manager for the two companies.

“We can sell anything. We have the ability to sell any colour – Cat, Cummins, Detroit.”

The difference with their power packages is the transmission and clutch, using Rouse Industries designs.

In this case, the two rigs will see 1,000 hp mud pump packages powered by Cummins QSK-23 engines. Each will have a Rouse MPD2, which stands for mud pump drive, two speed.

There will be 400 kW gen sets, and 760 hp Cummins draw-works engines with Allison transmissions.

As Rig 7 was nearing completion in the Eagle yard in Carlyle, Southern Industrial has already begun work on Rig 8. It will have one difference, however. The company is working on a new Allison transmission control system, and Eagle Rig 8 will be one of the first two rigs around with that program, according to Rouse. It will allow torque limiting of the rotary table through the transmission of the drawworks, he explained.

It came about by Southern Industrial bridging the gap between Allison and Cummins to make it possible, according to Rouse. “We’ve had factory engineers working on it to make it possible.”

PIPELINE NEWS October 2010

A21

New EnviroTrap for ICI pump Alameda – Alameda-based EnviroTrap Systems has launched a new product to provide secondary containment for ICI rod pumps.

The pumps work on an hydraulic system, instead of a traditional pumpjack.

An EnviroTrap is a form of secondary containment, according to Ian Thompson, owner of the company. It’s a plastic containment unit that ďŹ ts around the wellhead stuďŹƒng box. Inside is a switch that shuts o the pump if the containment vessel becomes ďŹ lled with uid due to a leak. “Once it gets so high, it shuts the pumpjack down,â€? he said.

The design has a split base, and can go onto a wellhead in minutes.

The typical design is round. The new design is meant for the ICI pump. “We made a square EnviroTrap that ďŹ ts between these posts,â€? Thompson said. “It ďŹ ts on exactly the same principle.â€?

They were approached by a company from north of Edmonton to design a version for the ICI pump. “They had a water problem,� according to Thomp-

The white plastic box between the steel posts of an ICI pump is the new form of EnviroTrap secondary containment. The lens allows operators to see inside. Photo submitted

HUTT’S TRUCKING LTD. Specializing in pumpjacks, vessels and manbasket work • 45 Ton Picker • Highway Tractor • Highboys • Stepdecks • Double Drop Trailers • Pilot Trucks

Travis Hutt - owner/operator Cell: (306) 487-8120 Bus: (306) 487-2608 Fax: (306) 487-2296 Lampman, SK. Email: huttholdings@sasktel.net

son. “Salt water is a killer on packings.� “These packings are designed to leak a certain amount to lubricate that rod,� he said.

The pumps, in this case, were used to pump water o gas formations. The new product was developed this past spring. EnviroTrap Systems has been around since 2001.

The EnviroTrap is made out of high-density polyethylene, manufactured at Alcon Plastics in Saskatoon.

Thompson is a farmer who never worked in the oilďŹ eld. “But I worked around a lot of those pumpjacks, and watched them leak all over the ground,â€? he said. “The cure for everything was ‘cover it with gravel.’â€?

They have had a high success rate with the system, according to Thompson.

If the lens on the site window is dirty, the packing is leaking, he noted. “Some wells are set up with an alarm. Others are noticed on regular operator rounds. As long as it’s going up and down and has an EnviroTrap on it, they know it’s good,� he said.

The company is testing a new probe-style switch. “When it shuts down, it won’t start until the tray is cleaned out.�

The company also manufactures a chemical barrel stand. “It’ll contain more than the barrel if it leaks,� Thompson said. “We’ve sold a lot of chemical barrel stands.�

Rounding out the product line is a chemical pump box.

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

WE RENT • Scissor Lifts/ Electric & Dual Fuel • Man Lifts/Straight Boom & Articulating Boom • Zoom Boom Forklifts

G. T. & H HOLDINGS INC. Chad - Cell: (306) 421-1896

Garry - Cell: (306) 421-0529

Estevan, SK

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

The environmentally friendly alternative. www.dpsmicrobial.com

Red Deer, AB

Calgary, AB

Frobisher, SK

A22

PIPELINE NEWS October 2010

Weyburn OTS hosts two tournaments Weyburn – The Weyburn Oilfield Technical Society hosted oilmen’s and oilwomen’s golf tournaments on Aug. 21 and 28 respectively Approximately 144 golfers took part in the oilmen’s tournament, according to Larry Paterson, one of the committe members.

It was a one day, Texas scramble format. The day started with a pancake breakfast and ended with a steak supper.

The Weyburn junior golf program will be the beneficiary of approximately $2,500 raised during

Does your oilfield waste go to a safe place?

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

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

There is a safer way to dispose of your waste.

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

t n ll e nity e tu c Ex por Op

the event, said Paterson.

“It was a pretty good day, good weather,” he said.

Oilwomen’s “We had 78 golfers, less than what we hoped for, but it was still a successful tournament,” said Abby Kradovill, one of the organizers of the oilwomen’s tournament.

She said it was slightly wet and overcast on that day. The event finished with a steak supper, and each

golfer went home with a door prize.

The event raised $1792 for the Canadian Tire Jumpstart charity, which will be matched by the corporation. The money will go to local children in Weyburn for the purpose of getting into organized sports.

Normally the oilwomen’s tournament is held on a Friday. This year they tried a Saturday. “Next year we’re going back to a Friday,” Kradovill said. “We’re considering June as well.”

SSEER focused on industry for retention and expansion Estevan – The Saskatchewan South East Enterprise Region is going out to talk to business in the oilpatch about business retention and expansion in the coming months.

“We’re going region-wide, focusing on the industry,” said James Tessier, economic development co-ordinator with SSEER. “What do you need, and how can we help you?

Executives know their companies, and can assess their needs,” he said.

Part of the reason for the consultation is strategic planning, looking at issues like labour shortages, affordable housing and community issues.

Access to utilities was an example Tessier provided.

With that information, SSEER plans to address immediate and long-term needs.

“We might not be the ones to provide direct assistance, but we might have information on who

to pass it on to,” he said.

Getting businesses to open up will be a challenge, he acknowledged. “We’re hoping for co-operation. Oil and gas is one of the most important sectors in the southeast.”

There’s going to be a substantial focus on oil and gas service companies.

“These will be all in-person meetings with the companies,” Tessier said. They will send out letters, and follow up with a phone call to set them up.

The game plan is to start doing meetings in October, and carry on until May 2011. It’s ground level research, he said.

On the retention side, Tessier said, “You don’t want to lose existing businesses,” pointing out that they are a good prospect for future expansion and jobs.

Seventy to 80 per cent of new employment is generated by existing businesses, he said.

FOR SALE Hidden Valley Golf & RV Resort

Hidden Valley Golf & RV Resort is nestled along the Souris River, and located just east of Estevan. An unequalled opportunity to “get away from it all” in a setting of unparalleled natural beauty and charm. The campground offers a total of 86 exsisting sites, all fully serviced; with an additional 114 sites to open soon; also fully serviced. The campground is placed on 20.30 acres, with plenty of mature trees and numerous newly planted trees in the expansion side. The Golf Course consists of 37.98 acres, currently housing 9 beautiful holes of pristine golfing. The greens are maintained by a fully automated irrigation system. Or if you require something on a smaller scale try your hand at the 18 hole mini-golf course. The Pro-Shop/Office has recently been completely renovated, and is equipped with fixtures for convenience items. All equipment and fixtures to run this business are included. Complete list of equipment available.

Located 1 mile west of Estevan on Hwy 18

Progressive Realty

Lorna Pylychaty Broker/Owner

902 - 4th Street, Estevan, SK S4A 0W3 Business: 634-2628 (24 hours) www.estevanlistings.com

PIPELINE NEWS October 2010

A23

Painted Pony focusing in on Bakken in SE Sask Wapella - Painted Pony Petroleum Ltd. is continuing with a steady pace of drilling in southeast Saskatchewan.

“We’re continuing to drill on our Bakken prospects,” president/CEO Patrick Ward told Pipeline News.

“We’ve got a drilling rig we’ll probably have running for the rest of the year.”

They were operating two rigs, but released one over the summer. Ward said they may go back to two in the future.

“Well licences are taking a little bit longer to get done,” he said. Before, a typical well license could be done in about four weeks, he said. The initial application could be made, with the expectation that certain filings would be coming shortly.

But apparently not everyone was on the ball with their filings, so now companies are required to have all their royalty poolings, off set waivers and the like, completed before the licence is issued.

For Painted Pony, it now means about eight weeks for a licence.

“We’re not saying the government is doing the wrong thing,” he said, noting some in the industry had not been following up with the necessary material.

In 2010, Painted Pony has 31 net wells on slate for southeast Saskatchewan. There are 19 planned for the second half of the year, with some underway now. The focus is on the Midale, Huntoon,

and Kisbey areas. The company also has some land east of Estevan.

Over the past two and a half years, the company has been acquiring lands south of Wapella.

Ward said, “That’s our exploratory block.”

A recent vertical well was drilled as a stratigraphic test in the Wapella area, and will lead to more development. A minimum of one additional well is planned for the area during the balance of the year. Painted Pony has aggregated over 25,000 net acres of land in the area, and has access to an additional 11,300 (8,500 net after earning) acres secured under the terms of a rolling farm-in agreement.

The company has about 1,700 to 1,800 boepd production in southeast Saskatchewan as of early September, of which about 98 per cent is oil.

“We’re about 95 per cent Bakken,” Ward explained.

Operationally, Painted Pony said the second quarter of 2010 was unusually wet in southeast Saskatchewan, and like all other operators in the area, it experienced several operational delays as a result. In spite of these challenges, the company has continued to deliver steady production growth with strong well results. Daily oil production from Saskatchewan for the quarter increased 180 per cent over the second quarter of 2009.

During the second quarter of 2010, Painted Pony drilled four (3.1 net) successful horizontal

Bakken oil wells, which have all been put on production. To date in the third quarter, the company has drilled eight (7.2 net) horizontal Bakken wells in the Huntoon and Midale areas, which are in various stages of completion.

In the Huntoon area, solution gas and liquids conservation commenced late August with the battery being tied into an existing third-party gas plant; the balance of the wells in the area are expected to be tied-in during the fourth quarter.

Painted Pony has also executed a farm-in agreement in the Flat Lake area on a 50 per cent interest in approximately 17,100 (6,000 net after earning) acres of land targeting Bakken oil; one (0.35 net) well was being drilled in late August.

Several prolific Bakken wells have been drilled in the Flat Lake area to date by competitors and the company said this farm-in arrangement gives it a material land base in a new area with significant growth potential.

Painted Pony also has Montney properties in northeast British Columbia.

The company noted they have increased second quarter production 93 per cent year over year.

During the three and six months ended June 30, 2010, Painted Pony's output averaged 2,532 bbls of oil equivalent per day and 2,428 boepd, respectively. This compared to average volumes of 1,314 boepd and 1,270 boepd for the same periods last year. ɸ Page A24

SOLUTIONS TO YOUR PUMPING

WATER

ENERGY

RECOVERY

A full oilfield waste management, custom treating and water disposal facility Location: Midale, SK 16-09-07-11 W2

CHALLENGES Bakken Frac Pump Don-nan Gas Separator Competitive Prices • Quality Products • Great Service Proud to be an active part of the community

Locally Owned and Operated

www.palko.com

306-458-2988 Phone: 634-7892 • www.ipc-sk.ca

A24

PIPELINE NEWS October 2010

Precision Drilling Rig 157, a super single, could be found drilling a few kilometres west of Oxbow along Highway 18 on Sept. 8.

Photo by Brian Zinchuk

Saskatchewan playing a major role for Painted Pony's growth ɺ Page A23 The company said daily sales volumes were 93 per cent higher in the second quarter of 2010 compared to the same period in 2009 as the oil-weighted drilling and recompletion programs resulted in increased oil production from Saskatchewan plus additional gas from British Columbia.

In the first half of 2010, Painted Pony noted that 68 per cent of total volumes were from Saskatchewan,

compared to 45 per cent in the first half of 2009, primarily from incremental oil sales. Production in the first half of 2010 was weighted 67 per cent towards oil compared to 44 per cent in the comparable 2009 period.

All of Painted Pony's light oil sales originate from Saskatchewan operations while in 2010, 97 per cent of its sales of gas, condensate, and natural gas liquids (NGLs) are from British Columbia.

Quality Post Frame Buildings

Subsequent to the end of the second quarter, the company increased production during the first three weeks of August 2010 to average 3,010 boepd (weighted 58 per cent oil and liquids and 42 per cent gas) based on field estimates, an increase of 19 per cent over the second quarter of 2010.

The company had a market capitalization of about $330 million in early September, which is up substantially from when it went public in 2007. “We started with 12 million,” Ward said.

On Aug. 25, another $44 million was announced in bought deal equity financing.

il’s

Ph

OILFIELD CONTRACTING INC.

Book now for ! n o i t c u r t s n o Fall C Commercial Buildings

Industrial Buildings

Call for your FREE estimate

• Mobile Steam/ Wash Unit • Crew Trucks • Mowing Leases • Vegetation Control • Fencing • Back hoe • Tandem Gravel Truck • Installation of Culverts and Texas Gates • Snow Plowing and Removal • SECOR Certified • Competitive Rates • Lease Grading

Phil Thompson Owner/Operator OfÀce Buildings

306-869-7861 Radville, SK.

www.goodon.com Warehouses

...And Much More! *Ask About Early Booking Incentives

1-800-665-0470

A25

PIPELINE NEWS October 2010

g n i t a ! r s b r e l e C ye2a010 5 8 5 2 19

PLATINUM

PLATINUM ENERGY GROUP PRODUCTION EQUIP.

TANKS

PUMPJACKS

Separators Meterskids Gas Sweeteners Lineheaters Treaters Free Water KO’s Pumpjacks Primemovers Pumpskids Flares Bullets Tanks Flowmizers Flare KO’s Dehydrators H2S Analyzers Ignition Systems Compressors Generators Toll Free 1.888.745.4647

Calgary Sales 403.264.6688

The Oilfield Equipment People!

TM

Calgary Lloydminster Provost Redcliff Drayton Valley Kindersley Medicine Hat

A26

PIPELINE NEWS October 2010

Former dealer now enjoys driving truck Orville Bilous, right, and his recent bride Theresa, tour the Lloydminster Heavy Oil Show on Sept. 16. Bilous used to own and operate a farm equipment dealership. Now he enjoys driving truck in the oilpatch.

Day

Construction Ltd. Lease Construction Lease Restoration • Mulching

Lloydminster – For decades, Orville Bilous and his brother Clarence used to own and operate an agricultural dealership in North Battleford called Agricenter Sales. But when Kramer Ltd., Saskatchewan’s Caterpillar dealer, came knocking and offered to buy out the business, it was time for Bilous to move on. Now he finds himself driving various trucks for Severs Oilfield Services out of Edam.

Agricenter Sales used to carry Bourgault, Massey Ferguson and Spra-Coupe. The location on the north end of North Battleford is now a bustling Kramer Ltd. operation. The business

was sold in 2006.

“I started in the oilfield Jan. 15, 2007,” Bilous said during a visit to the Lloydminster Heavy Oil Show, walking with his newlywed wife, Theresa. “Oilfield was the next target of interest.”

He now drives pressure truck, flushby, water truck and occasionally fills in for the body vac truck.

At first, he said, it was “kind of tough to adjust.”

“You have to adjust your mind. You have to adapt to the changes of the oilfield system. You have to be patient and work with the people you’re around.

“There’s always

"We Dispatch for the Oil Patch" • Two Way Radios • Alarm Monitoring • Safety Checks

Carnduff, SK.

Phone: (306) 482-3244

738 5th Street (back door) Phone: 634-3522 24 Hour Service - 7 Days A Week!

Tremcar West Inc. offers our customers a certiÀed repair shop with qualiÀed workers, who specializes in: • Tanker Trailer Repair • PIVK B620 Inspections • Auto Greasing • SGI Inspections • Trouble Shooting ABS Systems • Stock and Sell Parts • Leasing available

Suzanna Nostadt Vice President (306) 861-2315 For 24 hour emergency service call:

Francis Lessard Service Manager (306) 861-2841 Parts: (306) 842-6100

New 406 & 407 Stock Units on location 5 – 22nd Avenue S.E., Weyburn, Sask.

Tel: (306) 842-6100

Sales Representatives Troy Smith Moosomin, Sk 306-435-7095 Garth McLearn Lloydminister, Ab 780-808-1902 Clint Busse Swift Current, Sk 306-672-7672

challenges. The oilfield is a 24/7 working business. You treat your shift each day separately. You don’t go home until your jobs are all done.”

The activity level can be busy when a bunch of rigs move into your area, he explained.

“You don’t want to turn down jobs.”

Communication is important, he said. “I talk to the consultants and oilfield company operators. I always set up to do the job the next day.”

Bilous finds himself working in the Edam, Turtleford, Mervin, Maidstone and Paradise Hill areas of northwest Saskatchewan.

He lives in North Battleford and the company is based in Edam.

With three-and-a-half years under his belt, he’s already training others.

Bilous said he’s very enthused about working in the oilfield, and is keeping his eye open to entrepreneurial opportunities.

PIPELINE NEWS October 2010

A27

Torquay's ¿rst wells start Bakken oil production (Nickle’s Daily Oil Bulletin) Lake Alma - Torquay Oil Corp., which began operations just over five months ago after closing its $14 million initial public offering, has successfully put its first wells on production as of Aug. 31.

The company has drilled seven (5.4 net) wells, completed a second financing, closed two acquisitions, entered a second farm-in with a major industry partner, and built a land base of over 61,000 (40,000 net) acres.

Torquay had no production, hence no crude oil or natural gas revenue, in the second quarter. The company had a net loss of $459,136 (two cents per diluted share) in the quarter and $580,191 (five cents per diluted share) in the first six months of 2010.

Capital spending was $3.07 million in the quarter and $3.19 million in the first half of the year.

Production now exceeds 250 bbls of oil a day between its two core areas of Lake Alma (60 per cent working interest) and Viewfield (100 per cent working interest), both in southeast Saskatchewan.

The company's first Viewfield Bakken well was just put on production in late August. A second Viewfield Bakken well was being equipped and is expected to start production in early September.

Torquay has a strong balance sheet and no debt, the company said in a release. The company is now positioned to start exploiting its two core areas in southeast Saskatchewan - the newly discovered

Bakken oil pool at Lake Alma and the Frobisher oil pool at Viewfield.

Torquay has now drilled four Bakken wells in the Lake Alma area. Two of these wells were completed in July and are now producing a total of about 110 bpd of oil (66 bpd net) of 39-degree API oil. The third well is currently being equipped for production and the fourth is awaiting completion.

Given the early nature of the exploration program at Lake Alma, management is encouraged by the initial drilling success and the concept of a regionally charged Bakken light oil play.

The two producing wells at Lake Alma are nearly seven miles apart, giving Torquay a significant, contiguous land position to begin developing.

Torquay has licensed four more development locations and expects to drill the first of these by the end of 2010.

After drilling this fifth well, Torquay will earn an additional 3,200 (1,920 net) acres bringing the total lands earned to about 55,000 (33,000 net) acres in the Lake Alma area.

The company expects the oil cut of its first Viewfield Bakken well to increase as the load fluid from the completion is recovered. Torquay drilled and completed a second Bakken well in August which is expected to be equipped and on production within the next week.

Pipeline construction has been completed to Torquay's 100 per cent owned battery. The gas and

natural gas liquids sold through this pipeline are expected to increase production by about 40 boepd, starting in early September.

The company is currently drilling its first horizontal well targeting the Frobisher formation.

With success, production from this well is expected in early September. Torquay has identified up to 12 additional Frobisher drilling locations on its 100 per cent working interest lands.

On the new exploration front, Torquay is currently permitting three 100 per cent working interest three-dimensional seismic programs targeting new prospects in southeast Saskatchewan. The programs are expected to be shot once the crops are off the fields in the fall.

Torquay has over 1,500 net acres of freehold lands leased on new exploration prospects targeting the Mississippian carbonates. An additional 2,400 net acres are also held under a seismic option whereby Torquay has committed to shoot a 3-D seismic program over the option lands.

Torquay has entered into a farm-in agreement with another major industry partner to drill an exploratory well targeting the middle Bakken formation. The first well will earn Torquay 2,400 net acres of land. The company would then have 120 days to elect to drill a second well to earn an additional 1,280 net acres for a total of 3,680 net acres.

Torquay will also have access to all proprietary 3-D seismic data in the area.

A28

PIPELINE NEWS October 2010

NAL proves pundits right on two oil fronts Calgary – The Cardium light oil play in Alberta continues to live up to industry expectations voiced early in the year that the formation could rival southeastern Saskatchewan for production.

That’s the case for so far for NAL Oil & Gas Trust that is the experiencing the best of both worlds with light oil production from both areas.

In an update on Sept. 13, NAL reports that its recent operations in emerging areas at Cochrane, Alta., and Hoffer, Sask., have exceeded expectations.

NAL expects the two areas will grow significantly in the future and add to its established light oil play in the great-

er Garrington area of the Cardium with 31 wells already drilled.

One of NAL’s strongest wells at Cochrane produced at a test rate of 1,300 boepd for five days prior to being shut-in for equipping. NAL has a 65 per cent working interest in the area.

The production breakdown on the Cochrane well was 1,100 bpd and 1.3 mmcf/d.

NAL has one rig in the Garrington area and one in the Cochrane area and is expecting to drill 22 (12 net) wells in 2010 including five (2.3 net) Cardium wells in Cochrane where it has 65 sections of land.

Back in January, industry analysts predicted more than 200 horizon-

tal wells could be drilled this year in the Cardium to rival the Bakken in Saskatchewan. Only 35 horizontal wells were drilled in the Cardium in 2009.

In a Jan. 11 report

by Nickle’s Daily Oil Bulletin, Kim Page, an analyst with Toronto-based Wellington West Capital Markets Inc. said, “Based on the enormous resource potential here, exceptional well control throughout the area, consistently positive drilling results to date, and strong economics, we believe the Cardium trend has the potential to rival other light oil resource trends, including the Bakken and Lower Shaunavon trends in Saskatchewan.”

Enerplus Donates $15,000 to Radville & District Health Centre Foundation Inc.

Holding the cheque are Dr. Oberholzer and Sherry MacKenzie, Enerplus Estevan District Administrator.

Back row left to right: Roland Carles, RMHC Board Member; Audrey Scott, RDHCF Vice-President; Gene Gillmore, RMHC Board Member; Allison Tytlandsvik, RDHCF President; Claire Labbie, RMHC Board Member; Jennifer VanDamme, RDHCF Committee Member; Ron Mahnke, Field Health & Safety Advisor for Enerplus.

NAL Oil & Gas Trust has extensive land holdings in Alberta and Saskatchewan with the focus on light production from the Cardium play in Alberta and the Mississippian light oil play in southeast Saskatchewan.

Map submitted

The same story noted a research report by Macquarie Capital credited NAL with “advancing the Cardium light oil play in Alberta after it witnessed the success multi-stage horizontal drilling had in the Bakken and opted to try the same technique on some of its Cardium acreage.”

Cardium production for NAL has grown from approximately 750 boepd in late 2008 to a forecast of more than 3,000 boepd by the end of 2010.

NAL reports that it has cut its per well costs in the Garrington area from $4 million in 2008 to $3 million in 2009.

This year, NAL is drill-

REGINA, SK NOV 1-2, 2010 Please join Enform, Saskatchewan Petroleum Industry Safety Association, at our first-ever oil and gas safety conference and tradeshow in the Prairies.

LEADERSHIP: THE BUSINESS OF SAFETY Highlights include:

Topics covered:

• Keynote by Major General (Ret’d)

• Safety Leadership

Lewis MacKenzie

• Contractor Management

• Professional and supplier networking

• Supervisor Competency

• Pre-conference workshops

• Fatigue Management

Enform is also hosting the Petroleum Safety Conference North in Fort St. John, BC on Oct 19 - 20, 2010.

For more information and registration visit www.psc.ca

ing longer horizontal sections (1,200-1,400 metres vs. 1,000 m) with more fracs (10-14 vs. eight) for the same $3 million per well cost.

In Cochrane, NAL is also driving a joint industry gas gathering pipeline expected to be constructed in the fourth quarter of 2010.

Looking ahead, NAL expects to initiate a broad program of water based fracs in Garrington in 2011 with $300, 000 to $400,000 per well savings anticipated.

The company also has four rigs targeting the Mississippian light area around Hoffer where it has drilled 16 wells so far – 12 of them productive, with first month production rates of 75 to 300 bpd.

NAL has proved up

the Ratcliffe play across nine sections of land in the Hoffer area with significant potential of proved and probable reserves to be booked.

The company expects production will grow from the 200 bpd produced in January to more than 1,500 bpd by the end of the year. NAL has a 50 per cent working interest in its Hoffer production with drilling locations across 250 sections of land.

With a capital program of $92 million, NAL expects a year end production exit of more than 31,000 bpd mainly from its Cardium and Mississippian light oil plays.

The company also expects to spend $55$60 million this year on land sales and acquisitions.

“Timber!”

3 X 12’s 8 X 8’s 10 X 10’s In Stock Large Quantity!

We deliver to the Rigsite

REDRIVER LUMBER LTD. 481 Devonian St. • Ph: 634-2114 or 634-2143

7 + ( 6 $ ) ( 7 < $ 6 6 2 & , $7 , 2 1 ) 2 5 & $ 1 $ ' $¶ 6 8 3 6 7 5 ( $ 0 2 , / $ 1 ' * $ 6 , 1 ' 8 6 7 5 <

Weekdays 7:00 am - 5:30 pm; Sat. 7:30 am - 5:00 pm After Hours call CHAD 634-0195 or cell 421-1896

PIPELINE NEWS October 2010

A29

Overhead door Energy City Overhead Door, which provides many of the doors for industrial buildings in the area, is itself building a new shop in the downtown core of Estevan.

Photo by Brian Zinchuk

TriOil drills at Tableland Tableland - Since starting its recapitalized corporate life in January this year, TriOil Resources Ltd. has been working on its light oil resource play growth strategy, including working in the Estevan area.

The company’s Tableland, Sask., property covers a 75 section contiguous land block that is prospective for light oil in both the Sanish and Middle Bakken. The southern portion of the property is non-operated with TriOil owning 30 – 50 per cent interest in 52 (17 net) sections. TriOil operates the North Tableland area and either owns, or has the right to earn, 50 to 60 per cent interest in approximately 24 sections of land in this area.

In the first half of the year, TriOil, together with the operator, has primarily focused on extending the North Dakota Sanish light oil resource play into the shallower Sanish section

in the South Tableland area. TriOil participated as to its 30 per cent working interest in five (1.5 net) Sanish horizontal wells in the first half. Four wells have been completed with 22 to 28 multi-stage 10 ton fracture stimulations.

Results on two of these wells were above the company’s forecast type curves with 30 day initial production rates of 204 and 186 bpd of oil and 60 day initial production rates of 166 and 148 bpd of oil, but have experienced higher declines in the ensuing two to three months and are currently producing at 80 and 44 bpd of oil, respectively.

Results on the remaining two Sanish horizontal wells were below forecast type curves with IP30 rates of 72 and 44 bbls of oil per day, respectively. A fifth well is currently being put on production.

TriOil and the operator are now planning to

Willmar Waste Management Facility Location - 11-36-5-4-W2 • Disposal • Waste Processing • Hot and Cold Fresh Water • Heated Saline Frac Water Supply From a Saskatchewan Watershed Authority Approved Source Well

Setting new standards in Oilfield Waste Management Services

Phone 306-455-2451

use the higher volume 20 to 40 ton fracture stimulations more common in the adjacent North Dakota Sanish completions in order to improve the effectiveness of the completions.

“We are at a very early point on the learning curve in this emerging light oil play and have been successful in establishing production from the tighter Sanish sands over a relatively large area of land,” the company said in a release.

TriOil plans to participate in three (1.1 net) Sanish horizontal wells by the fall, all using higher volume multifrac completions.

In addition to the Sanish light oil play, Tableland is situated in the middle of the emerging Middle Bakken light

oil trend that stretches from Taylorton through Tableland to Flat Lake.

Over 40 horizontal wells have been licensed/ drilled by industry for the Middle Bakken on

this trend in 2010 to date.

TriOil is currently operating the drilling of its first horizontal well at North Tableland to evaluate the Middle

Bakken. This farm-in well earns a 60 per cent interest in a nine section contiguous block of Crown land.

Courtesy Nickle’s Daily Oil Bulletin

FOR SALE - WORKSHOP North End of Arcola, Sask.

503 Main St.

Will Consider Offers 40 x 60 shop with 16’ walls on easy access 1 acre lot. Shop has 3-Phase power.

Town sewer and water, has ofÀce, mezzanine, 2 bathrooms and an air compressor.

Extra 2 car garage 22 x 24 on lot.

295,900

$

Reduced to

246,900

$

Call Keith at 306-457-8270

At Prairie Land . . .

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

Prairie Land & Investment Services Ltd.

Saskatchewan & Manitoba s Freehold Mineral Specialists

DON PONTIUS

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

TERRY JORDAN

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

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

We Place Our Clients First.

A30

PIPELINE NEWS October 2010

Renegade pursuing Bakken, Three-Forks, and Viking Renegade Petroleum had a busy second quarter. The company closed three acquisitions in southeast Saskatchewan during the second quarter for a total of $74.7 million.

Looking across the border, it entered a farm-in agreement in North Dakota on a 50/50 basis on 25,950 gross (12,975 net) acres of land. The farm-in has provided Renegade with a high impact Bakken and ThreeForks/Sanish exploration play to potentially open up a new resource play immediately south of the southeast Saskatchewan border.

Renegade raised $40 million in equity

through a bought deal financing and established a $40 million revolving demand credit facility with a major Canadian bank.

The company increased operating netback 23 per cent to $46.01 per boe in the second quarter of 2010 from $37.34 per boe in the second quarter of 2009.

Renegade also drilled 11 gross (5.7 net) wells in the second quarter of 2010 with a 93 per cent success rate.

Despite the extremely lengthy and wet spring in Saskatchewan, Renegade managed a high level of drilling activity during

the second quarter of 2010. Due to the wet weather and lengthy regulatory approval times, a significant portion of this drilling was completed late in the quarter so any related production did not contribute meaningfully to the second quarter averages.

Renegade spent $9.2 million on capital expenditures in the quarter, including $4 million on drilling/ completions/workovers, $2.2 million on equipping and facilities, and $3 million on land, seismic and other items.

Renegade drilled two gross (1.1 net) wells in Hastings/

Alameda, two gross (1.6 net) wells in Stoughton/Huntoon, one gross (0.4 net) wells in Florence and six gross (2.6 net) wells in the Viking.

Throughout the second quarter, Renegade shot and completed several 3D seismic programs to further understand and delineate several plays including both Bakken and Mississippian light oil targets. Renegade plans to continue to focus its efforts on these play types with several development locations being licensed and proposed to be drilled and completed by yearend.

Work continued on the company’s Bakken prospect in Renville County, North Dakota.

3D seismic was shot and processed with the first horizontal location in the licens-

ing stages. The plan is to have this test well drilled and evaluated before the end of the fourth quarter.

Outlook After a total of four corporate acquisitions in the first six months of 2010, two asset acquisitions, and several farm-ins were completed and integrated throughout the first and second quarter of 2010 providing Renegade the production and land base to launch into the next phase of its business strategy that is growth through the drill bit.

The company currently has two drilling rigs contracted full time, with 17 gross (10.8 net) new drills budgeted for the third quarter and 12 gross (11.1 net) budgeted for the fourth quarter in southeast Saskatchewan. Renegade is cur-

Complete Rod Pumping Design, Supply, Optimization & Field Services - Specializing in Rod Pumping System Design—Directional, Horizontal & Vertical - Full line of API, High Strength Steel & Fiberglass Sucker Rods - Complete Dynamometer & Fluid Level Services including Optimization Proposals - Automation Services including SAM Well Managers, Wermac/Yaskawa VFDs, Xspoc Web Based SCADA Packages Phone: (306) 634-7399 Fax: (306) 634-6989 E-Mail: Estevan@pentarods.com 58 Devonian Street Estevan, Saskatchewan PO Box 667 S4A 2A6

SURFACE BIT RENTAL QUALITY RERUN & RETIP 24 HR SERVICE

Lyle:

(lhaukeness@pentarods.com) Cell: (306) 421-3682 Yvonne: (ysever@pentarods.com) Cell: (306) 421-5842 James: (jmilton@pentarods.com) Cell: (306) 421-6845

CHAD FROESE

www.pentarods.com

BERT BAXTER TRANSPORT LTD.

CELL: 306-421-3726 RES: 306-634-7538 OFFICE: 306-388-2941

rently in discussions to utilize a third drilling rig at the beginning of the fourth quarter to accelerate its southeast Saskatchewan drilling program.

In addition, the company is initiating several workover/recompletion programs over the third and fourth quarters that are a direct result of the acquisitions completed in the first half of the year.

Results in the Viking/Dodsland pool have been encouraging. Due to the initial drilling success and repeatability of the play, Renegade has decided to accelerate its drilling program to include an additional seven to nine gross (3.5 – 4.25 net) wells drilled beginning in October 2010.

In total Renegade will drill up to 27 gross (12.5 net) wells by the end of the year in the Viking formation at the Dodsland pool.

Despite having to navigate the operational challenges presented by the unprecedented wet weather in southeast Saskatchewan during the second quarter 2010, Renegade reconfirms its previously increased guidance for 2010 exit rate production of 2,600 to 2,700 boepd.

DUSTIN DUNCAN, MLA Weyburn - Big Muddy 35-5th Street NE, Weyburn, SK S4H 0Y9 dduncan.mla@accesscomm.ca (Tel) 842-4810 (Fax) 842-4811 (Toll Free) 1-877-842-4810 www.dduncan.ca

301 Kensington Ave. Estevan, SK. Phone: (306) 634-3616

3902 - 75th Ave. Leduc, AB. Phone: (888) 835-0541

www.bbaxtertransport.ca

PIPELINE NEWS October 2010

All Aspects of Electrical Construction • Oilfield, Industrial, Commercial, Residential, Agricultural • Fully Equipped Field Units • GPS Equipped for Faster Response Time • Knucklepickers • Excavation Equipment • Generators – 50-200 KW • Directional Boring • Trenchers, Skidsteers, Mini Hoes

Ph: 306.453.2021 Fax: 306.453.2022 Cell: 306.577.7880

Email: southeastelectric1@sasktel.net Box 1238 Carlyle, SK S0C 0R0

A31

A32

PIPELINE NEWS October 2010

Make up lost time, and save money while doing it!

Specify and install Red Thread® II and Star® Anhydride 8-rd line pipe from an authorized NOV Fiber Glass Systems distributor.

You’ll be glad you did.

Fibreglass Solutions…. Because Rust Never Sleeps!

Trade names that are represented include; Red Thread® II (2”-24”) > Produced water, salt water, vapours.

Green Thread® (1”-42”) > Chemical process, brine, caustic.

Centricast® RB-2530 (1”-14”) > Hydrochloric acid.

Z-Core®, (1”-8”) > Sulphuric acid to 100%, hot process to 135 °C. Ceram Core® (6”-16”) > Tailings, bottom ash, slurries.

Nil-Cor® (½”-24” FRP valves) > Process lines, drains, vents.

Star® Fiberglass Canadian distributor for standard & API design high pressure anhydride cured epoxy line pipe and tubing.

Star® anhydride cured epoxy line pipe has the highest long term hydrostatic strength of any FRP product on the market.

Call to discuss installer training (API / ASME B31.3), new taper tools, and general design or installation questions.

Calgary Sales Tel: (403) 801-2009 John Kohlman

Product data, support details, installation literature, and design software are all available for download at our website.

Pipeline supply, training & QC.

Field Service & QC Tel: (403) 861 9801 Allen Routh

Edmonton 14505—130 Ave Tel: (866) 243-2298 Jared MacKinnon Tony White

ASME B31.3 compliant pipe & fittings for battery & plant projects.

Fibreglass Solutions is an authorized provider of ASME B31.3 installer training & certification.

Corrosion/chemical resistant FRP piping for tank farms, HCl, produced water, caustic, and vapour recovery systems.

FGS threaded line pipe and FGS threaded elbows for high pressure oilfield applications are 100% factory proof tested to ensure successful field installation and start-up.

Regina 205 Hodsman Tel: (306) 525 8881 Justin MacMillan

Estevan 294 Kensington Tel: (306) 636 2002 Rea Eagles Tim Beatty

Check out the new Model 2306 electric taper tool.

Authorized Distributor

STAR

®

• SMITH • FIBERCAST®

Please contact us for friendly service, fair pricing, and technical support & training that is beyond comparison!

Get consistent tapers on 2”,3”,4”, & even 6” Green Thread® & Red Thread® II pipe in seconds!!!

www.frpsolutions.com

Woodstock Burlington Estevan Regina Calgary Edmonton

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

B-Section October 2010

This is the main area of the Section 5 expansion of the Consumers’ Co-operative ReÀneries Limited (CCRL) reÀnery complex in Regina. The major components visible are, from left: green pipe racks that carry the arteries of the facility; between the white and red cranes are three small towers that are part of the gas concentration unit; below them, on the pipe racks are grey Àn-fan cooling units; to the right of the yellow crane and inside the green structure is the catalyst regenerator; lying below it and to the right are the reactor and main fractionating column, awaiting installation; the next two grey towers are the prefractionation tower and the stack of the prefractionation heater.

Regina Re¿nery undergoes 4-year expansion Story and photos by Brian Zinchuk Regina – One of the largest expenditures in oil and gas in Saskatchewan right now is not happening out on the drilling rigs, but in the northeast corner of Regina.

The Consumers’ Co-operative Refineries Limited (CCRL) refinery complex in Regina is currently halfway through a $1.9 billion, four-year expansion project. CCRL is a wholly-owned subsidiary of Federated Co-operatives Limited (FCL), which is the central wholesaling, manufacturing and administrative body for the Co-operative Retailing System in Western Canada.

Approval for the project was granted by the FCL board in January 2008. Approximately $50 million of front-end engineering took place prior to the start of construction in the fall of 2008. The job is targeted for completion in June of 2012.

The expansion will take the “nameplate” rated capacity of the refinery from its current 100,000 barrels per day (bpd) to 130,000 in 2012. Further debottlenecking should increase that capacity to 145,000 bpd by 2015, making the total expansion

a 45 per cent increase in capacity, according to Bud Van Iderstine, senior vice-president of refining for FCL. CCRL celebrated its 75th anniversary of operation on May 27, 2010. The initial refinery was capable of 500 bpd, and was one of numerous small refineries scattered throughout Saskatchewan in the early 20th century. It is the only one to survive.

“Our primary products are gasoline and diesel,” Van Iderstine said. “The mission of CCRL is to provide high quality petroleum products for the Cooperative Retailing System.”

Currently the refinery produces approximately 75,000 bpd of fuels, split roughly evenly between gasoline and diesel. A further 15,000 bpd output is sold as upgraded crude oil to eastern refiners. The balance is approximately 10,000 bpd of byproducts.

The Regina complex provides fuel directly to Saskatchewan, Manitoba, and the eastern side of Alberta. Exchange agreements with other refiners allow CCRL to supply fuel to gas stations other than the Co-op and Tempo brands in this region and, in return, Co-op stations in British Columbia and the remainder of Alberta are supplied by other refiners.

It’s a common practice in the industry across Canada, according to Van Iderstine.

Currently there are two crude refining units. The first, with a 60,000 bpd capacity, runs heavy crude oil primarily from the Lloydminster area. The second, which was part of a 2003 expansion, handles 40,000 bpd of heavy sour synthetic crude from the Fort McMurray region.

“This stuff is typically 22 API crude, which is far heavier than most people run,” said Van Iderstine.

The refinery sits adjacent to the Enbridge mainline pipeline right-of-way and Regina tank farm. It receives its feedstock from the Enbridge system and ships its upgraded crude to the east down that same pipeline system. All the mainlines in Saskatchewan run from west to east, one of the reasons that oil from southeast Saskatchewan is not refined at Regina.

“The new expansion will run sweet synthetic crude out of Fort McMurray,” said Van Iderstine, who explained that this type of crude was the “absolute best for us,” when it comes to a fit for the refinery’s objectives. ɸ Page B2

B2

PIPELINE NEWS October 2010

CCRL celebrates 75 years in operation

This massive Manitowoc M-18000 lattice boom crawler crane is about as big as mobile cranes come. It’s the third largest the company makes, and is an integral part of the assembly of the expansion of the Regina reÀnery.

1-888-9poplar (976-7527) (306) 457-3540

Daylighting, Oilfield Hauling, Steaming & Mobile Pressure Washing, Winch, Pressure, Water & Vacuum Truck Services

ɺ Page B1 “To do more sour synthetic, we would need almost another entire section,” he said.

The cost would have been approximately double, into the $4 billion range, to process the same number of barrels if more sour synthetic crude were used as a feedstock. That would have required a significant expansion of desulphurization and sulphur recovery capabilities.

Two focuses The expansion has two major focuses. The first is the addition of Section 5, which is a greenfield development on the eastern edge of the complex west of the Regina landfill. “In addition to the new section, we are revamping, or debottlenecking, eight other process units,” Van Iderstine said.

The formal name for the project is “Expansion Project – Section 5 and Associated Revamps.”

The new section of the refinery will add a second fluid catalytic cracking unit, also known as a “cat cracker.’”

“That is really a gasoline machine,” he said of the cat cracker and its primary output.

Increased gasoline production is the prime objective of the expansion.

Production of ultra-low sulphur diesel was the objective of the last major expansion in 2003,

although it also resulted in some additional gasoline production. “This one is going to give us a lot more gasoline.”

Asked if there is a market for the additional production the refinery will be able to put out, Van Iderstine points to both a growing economy and growing population in Western Canada. Additionally, he feels that the Cooperative Retailing System is very competitive in the marketplace. “We will continue to work to increase our market share.”

Currently product is being imported on the West Coast, he noted, something CCRL intends to displace.

Regarding the push for alternative fuels, Van Iderstine said, “My anticipation is that gasoline and diesel demand will continue to grow in Western Canada. It will be many decades before there will be a shift of any consequence away from gasoline, diesel, and jet fuel. The hydrocarbon-based fuels will dominate the scene for many decades to come.

My own personal guess is for the next 50 years, petroleum-based fuels are going to fulfil the appetite for transportation and agricultural energy, certainly in Canada.

We’re pretty confident that gasoline and diesel sales and volume for our system will continue to

Office - Kola, MB. 204-556-2464 Dan O’Connor Operations Manager 204-748-5088

grow steadily.”

Timing The project’s construction couldn’t have been timed better, according to Van Iderstine. “The best window of opportunity to go ahead with this project is now.”

It may have been announced during the heady days of 2008, when the industry was going crazy with expansion projects, particularly at Fort McMurray, but the actual work has taken place during a slump in the economy. That means that pressures like workforce availability, shop space for fabrication, engineering availability and material costs have eased considerably compared to what other projects have faced in recent years.

“Currently, we’re on schedule and on budget,” according to Van Iderstine. He did note that rain this year has been an issue. “The weather has impacted us, definitely. We’ve had lost days due to the excessive rains in Saskatchewan.”

Yet at this point of time, the project is still on track and on budget, he said.

The project employs a unionized workforce, with almost all major trades taking part.

“There’s tightness of trades that comes and goes. Overall, we’re building this project at the best time we could,” he said, noting it “fit into the groove” of the economic downturn.

Work on the greenfield Section 5 is being done by International Alliance Group, or IAG, based in Houston. The revamps are being handled by ColtWorley Parsons, whose engineering office is in Markham, Ontario.

Battalions of workers The workforce on site is comparable to the population of a small town, and it’s still growing. “We’re not at maximum yet,” Van Iderstine stated. As the engineering work nears completion, the engineering workforce is winding down, while the on-site workforce has yet to peak. ɸ Page B3

PIPELINE NEWS October 2010

Capacity set to expand 45 per cent by 2015 ɺ Page B2 In June of 2010, the IAG work had 176 people doing engineering in Houston with Mustang Engineering. That’s down from a peak of 280. On site, there are approximately 800 people now working on Section 5.

The revamps, including expansion of the refinery’s tank farm, had around 180 people working on engineering in Markham and another 760 people on site. That on-site number is rising.

The peak is expected to be in the spring of 2011, from April to June, when Van Iderstine said, “We’ll be hitting 1,800 on site.”

In addition to that, there are just over 700 permanent CCRL employees, and another 30 temporary construction workers.

“When we go into turnaround in 2011, which will start in March and go to June, we will have another 1,000 people working the turnaround,” he said.

That will bring the total number of workers on site to the 3,000 to 3,500 range.

Carbon dioxide With greenhouse gas limitations appearing on the regulatory horizon, Van Iderstine said, “We are the lead partner in the Aquistore project.” Aquistore is a research project being spearheaded by the Regina-based Petroleum Technology Research Centre.

Its intention is to capture carbon dioxide and to store it in deep saline aquifers. Van Iderstine said CCRL is currently in the front-end engineering stage of the capture portion of the project.

Carbon capture is not tied to the current expansion, however. Two hydrogen plants in the existing facility are being looked at as candidates for carbon capture. CCRL may seek board approval in 2011 for the project, he said.

A further initiative at the facility will result in substantial waste water improvements, leading to the recycling of large quantities of water.

Van Iderstine said that the refinery’s growth over the years through the current and previous expansions “is a testimony to the success of, and growth of, the Co-operative Retailing System.”

B3

The CCRL Core Principles Bud Van Iderstine gets passionate when he rity and is maintained and operated to mitigate talks about the core principles behind the opera- safety risks. tion of the Consumers’ Co-operative Refineries 3. Ensure that the management of environLimited (CCRL) refinery complex in Regina. mental affairs and responsible stewardship is alVan Iderstine heads up the refinery as senior vice- ways at the highest level. president of refining of Federated Co-operatives 4. Ensure that quality products and services Limited. are provided by all CCRL work Drawing out a sketch, what groups. he called “the CCRL mindThe principles, in turn, support set,” he said, “We create an atthe mission of refinery, which is mosphere in the plant, totally service to the Co-operative Retailgeared to communication.” ing System.

There are three important The principles always take priparts to that atmosphere – comority over production, according to munication, teamwork, and Van Iderstine. “Those trump protrust. “You really need to work duction,” he said, noting units can on this [communication] to be shut down and prevented from build teamwork. Then trust will starting up in order to satisfy the follow,” he said. principles.

That atmosphere leads to the The mission of the refinery is to four CCRL Core Principles. He service the Co-operative Retailing took down a framed copy from System. “This is why we exist,” he the wall, reciting them. They are said. However, the core principles also prominently featured on BUd Van Iderstine displays take priority over getting volume.

CCRL's core principles the company’s web page.

As a reflection of the principles, Those principles are, in order all workers on site require a “Workof priority: Safe” Plan, something that is revisit1. Ensure the safety of all ed annually. Furthermore, everyone personnel and the public at large. involved in a turnaround has a separate “Work2. Ensure that all equipment is of high integ- Safe” Plan, specific to the turnaround.

SVEIN BRYEIDE CONSTRUCTION Ltd. • Earth moving and Oilfield Construction • Lease Preparations and Restorations • Pipeline Construction and Maintenance • Road Building, Dugouts • Dozer Ripper and Winch Cats • Motor Scrapers, Graders

• Trackhoe and Backhoe • Lowbeds and More

Celebrating over 30 Years in SE Saskatchewan!

HWY. 47 N. AT BENSON Fax: 634-9798 • Cell: 421-0203

634-6081

GENERAL OILFIELD HAULING Manitoba, Saskatchewan, Alberta

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

Oilfield Graveling • Crushing & Screening • Gravel Trailers for Hauling • Sealed Contaminated Waste Preparation • Site Grading • Excavating • Equipment Hauling Heavy • Car/Truck Wash • COR Certified •

Larry Allan

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

• 8 to 40 Ton Picker Service • Winch Trucks, Bed Trucks • Air-Ride Equipment • Tank Rentals

634-8888

Estevan, SK

B4

PIPELINE NEWS October 2010

Major-General MacKenzie to speak at Enform conference

By Brian Zinchuk

Major-General Lewis MacKenzie

2009 Suzuki King Quad LT-A750-Black Brush Suzuki has taken their award winning concept and made it stronger and faster.

Quadmatic transmission & torque sensing limited-slip front differential combined with fully independent suspension front & rear, the 750 Axi delivers a superior ride for both utility used & recreational riding. Liquid-cooled engine in an already proven rugged & dependable ATV. Shown with optional SS wheels and 27” Mud Lite XTR tires.

MSRP $12,399

ONLY $

9,199*

OR $15400 per month plus taxes, 0 down! *with $300 farm & ranch rebate

306-453-6773 www.carlylerv.com

Regina – There are only three Canadian generals who have become household names over the last two decades, and one of them, retired major general Lewis MacKenzie, will be speaking in Regina at Enform Saskatchewan’s inaugural Petroleum Safety Conference Prairies on Nov. 2.

It’s fitting that one of Canada’s best known military leaders will be delivering the keynote address at a conference focusing on leadership, and its role in safety, according to Bob Ross, the manager of Enform, Saskatchewan Petroleum Industry Safety Association (SPISA).

From legal roles and responsibilities at the worksite to managing worker fatigue, safety is a unique and inclusive business, meaning everyone involved has the opportunity to demonstrate leadership.

This is the first time such an event will be coming to Saskatchewan, and follows the recent establishment of an Enform office in Regina. The conference will promote health and safety within the oil and gas industry and provide a forum for professional and supplier networking. It’s a smaller rendition of Enform’s major annual conference in Banff. By holding it in Regina, it reduces costs for Saskatchewan people to attend. Ross is hoping it will become an annual event.

“This is the first event of its kind hosted by Enform in our province, and we’re very pleased to put it on as the safety association for Canada’s upstream oil and gas industry. We work with industry to build

JACK!

a safe, well-trained workforce; the conference’s agenda speaks to that. The topics are all focused around enhancing leadership skills, increasing awareness of safety issues and how to manage them.”

“We’re estimating 250 to 300 people. We’re looking for 25 to 35 exhibitors,” Ross said, noting that the safety industry enjoys the exhibits and the ability to see new products.

The trade show, which runs concurrent with the conference, features exhibitors from a wide crosssection of industry with new and innovative products for delegates to preview. Pre-conference workshops will also be held at the Enform, SPISA campus in Regina on Nov. 1. The main conference on Nov. 2 will be held at the Regina Delta Hotel.

“Our big thrust is everyone in the petroleum sector,” Ross said of attendees. “The whole conference is based on leadership and the business of safety.

Things are growing in this province, and it’s going to be beneficial to keep raising awareness on safety.”

Ross said MacKenzie is one of the most notable motivational speakers in Canada, who has lived on the line as a general. MacKenzie is noted for his service as a commander of United Nations forces in the former Yugoslavia.

The conference kicks off with two half-day preconference workshops held at the Enform, SPISA campus on Nov. 1. Certificate of Recognition (COR) Program; benefits, requirements and how to maintain Enform’s new guidelines on contractor management systems and supervisor competency will be the focuses. ɸ Page B5

IT’S ABOUT TIME

BRENT GEDAK WELDING Visit our new location at

126 Lamoro St. just off Hwy 39 W. of Estevan

OfÀce: (306) 634-5150 Cell (306) 461-9946 Fax: (306) 634-5148 www.brentgedakwelding.com

Jack knows time is money PAYS FOR ITSELF

– 4 WEEKS

The increase in oil/gas production is immediately measureable not only in time, but real dollars.

YOUR TIME

INSTALLATION

– ZERO

– 1 DAY

It only takes a few hours to have your compressor up and running, practically eliminating production downtime.

Our safety qualified installers will perform maintenance checks when required, onsite, saving you the trip in.

www.annugas.com Toll Free

1.866.ANNUGAS

COMPRESSION

CONSULTING

LTD.

ANNUGAS ANNUGAS PRODUCTION PRODUCTION ENHANCER ENHANCER ®

Water Disposal/Injection Skid Packages, Truck Unloading Packages, Lact Units, Header Packages, Vessel Packages, Pressure Piping Systems, Rig Repairs, Rig Matting

3-D Drafting Services Available

PIPELINE NEWS October 2010

B5

Enform hosts safety conference in Regina ɺ Page B4 Sessions on Nov. 2 are geared towards the conference’s central theme of leadership, building a sustainable safety culture and developing accountable safety professionals.

Saskatchewan Deputy Minister of Labour Relations and Workplace Safety Mike Carr will deliver the executive address.

“He has a real gift for a clear understanding of health and safety,” Ross said.

Dr. Mike Williamsen will speak on “Beyond Glasses and Gloves, Building Safety Leadership.”

“Best Practices for Fatigue Management” will be tackled by Dr. Don Melnychuk, whom Ross referred to as a “gifted presenter.”

TransCanada vice-president for health safety and environment Brian McConaghy will talk on “Drive Time – Not Dead Time.”

Jennifer Miller of Bennett Jones LLP will

Major-Gen. Mackenzie focuses on readership In this his keynote presentation on lessons in leadership, retired major-general Lewis MacKenzie, distills the lessons of 36 years of experience into 10 practical, enduring and easy-to-apply tips that will enhance your leadership style. Leadership is about building trust, forging commitment to a common purpose, and understanding what needs to be done to convince others to follow – things Mackenzie has done, time and again, under the most difficult of circumstances. With charisma, expertise on conflict resolution, the courage to think for himself in a crisis, and a natural talent for storytelling, not to mention an unconventional streak a mile wide, MacKenzie captivates and commands attention like few others can.

Maclean’s magazine has called him “the greatest living speaker in Canada.” He doesn’t just talk about leadership: he demonstrates it.

During his 36 years of military service in the infantry, MacKenzie served nine years in

Germany with NATO forces and managed to fit in nine peacekeeping tours of duty in six different mission areas – the Gaza Strip, Cyprus, Vietnam, Cairo, Central America and Sarajevo.

In 1990 MacKenzie was appointed commander of the United Nation’s Observer mission in Central America. Two years later he was assigned to the United Nation’s Protection Force in Yugoslavia.

In May of that year he created and assumed command of Sector Sarajevo and, with a contingent of soldiers from 31 countries, opened the Sarajevo airport for the delivery

Curly’s Pick

of humanitarian aid during the height of the Bosnian Civil War. As result he became the only Canadian, military or civilian, to be awarded a second Meritorious Service Cross. He retired from the Canadian Forces in 1993.

His personal account of his military experiences, Peacekeeper, Road to Sarajevo, became a No. 1 best seller in 1993. A two-hour TV documentary based on the book and hosted by the general was aired internationally and won a New York film festival award in 1997. His second book, Soldiers Made Me Look Good, was published in 2008.

er Service Ltd.

Mark T. (Curly) Hirsch

Since his retirement from the military, Lew is MacKenzie has been under contract to CTV and CBS and frequently appears on many of the international TV and radio networks as a commentator. He is a regular contributor to The Globe and Mail and is in demand as a lecturer on the subject of leadership.

Source: Enform website www.psc.ca

discuss “Contractor Management, A Legal Perspective. ” Ross said she has performed an assessment of health and safety legislation of across Western Canada.

“The Role of Communications in Contractor Management” is the topic of David Myrol, McLennan Ross, LLP. Enform will also host Petroleum Safety Conference North in Fort St. John, BC on Oct. 1920.

Watch for extensive coverage of the conference in the Pipeline News December 2010 edition.

On the web: www.psc.ca

Quality

LAMICOIDS & metal cable tags EfÀcient Service

Call Linda for more information

Estevan Trophy & Engraving Phone: 634-6005 • Fax: 634-6405 Email: estevantrophy@sasktel.net

• SALES • SERVICE • PARTS • LEASING

Genset Servicing Available

Estevan - 89 Escana Street • 637-2121 Saskatoon • Regina • Winnipeg

Safety Training

1595 Dieppe Cres.

Estevan, Sask.

S4A 1W8

24 Hour Service Cell: (306) 461-5898 Fax: (306) 634-6690

Dedicated to serving the training needs of the oil & gas industry The Saskatchewan Energy Training Institute can assist your company in meeting its OH&S requirements. For nearly 20 years, we have provided industry-recognized safety and skills training to individuals and organizations in southeast Saskatchewan and beyond. Over that time, we have developed a reputation for providing responsive, accommodating, and innovative safety training solutions to our clients. Let us bring the benefits of that reputation to your organization!

Electrical Construction & Service of your

Shops • Drilling Rigs • Service Rigs • Production Equipment Lampman: 487-7770 • Estevan: 637-2512

t *OEVTUSZ SFDPHOJ[FE DPVSTFT t -PDBM JOTUSVDUPST BOE USBJOJOH MPDBUJPOT t $POWFOJFOUMZ TDIFEVMFE DPVSTFT t 4QFDJBMJ[FE FRVJQNFOU BOE TJNVMBUPST t $FSUJöDBUF USBDLJOH GPS ZPVS PSHBOJ[BUJPO t &/'03. DFSUJöFE DPVSTFT t $PNQFUJUJWF QSJDJOH t (SFBU BUNPTQIFSF For course dates and locations, please visit our new A-Z course listing at www.southeastcollege.org To develop a tailored course that meets your company’s needs, contact Karen Melle at (306) 637-4925.

To register for a safety course, call toll-free 1-866-999-7372.

B6

PIPELINE NEWS October 2010

Culane bird-dogs the Birdbear Gull Lake, Coleville, Kerrobert - One of the emerging plays in Saskatchewan is the Birdbear formation, found in West Central Saskatchewan, and one of the ju-

nior companies seeking it out is Culane Energy Corp.

The Calgary-based producer has moved into Saskatchewan this year, pursuing opportunities

Shop Bays For Rent 2 Bays–36’x44’ 2 overhead doors 14’x14’ 2 Bays–24’x44’ 1 overhead door 14’x14’ • • • • •

floor drains floor heat air system hot and cold water washroom access

Located in Evanston Park, RM of Weyburn, south of city limits.

Available June 1, 2010 Call Len at

(306) 228-7871

in the Upper Shaunavon formation near Gull Lake and the Birdbear formation near Kerrobert and Coleville.

“The year we enter Saskatchewan, it’s winter drilling only,” joked Don Staus, president and CEO. “We’ve been around for seven years. Most of our focus was Alberta,” he said.

While he noted they have been a loyal Alberta company, “Because of the royalty framework, we started looking at other jurisdictions.

With the fiscal regime, we were forced to look elsewhere.”

They had looked at British Columbia, but weren’t looking for gas.

“We’re more oil-focused,

• Tandem, tridem, quad sour sealed units

• 16, 21 & 35 million BTU Super Heaters • Propane Fired

24 Hour Dispatch 306-483-2848

and wanted to remain that way.”

“Every gas producer I run into is switching to oil.”

The company currently has 1,000 boepd production in the Killam, Alta., area. Staus anticipates a successful waterflood should double that production within a year.

Upper Shaunavon The company said in a release its initial venture into Saskatchewan this year has been one of many technical challenges that include the associated learning curve that is part of dealing with new technical issues. Based on initial results in this area, management believes that the company

can now move back into an organic growth phase through the development drilling program of its Notukeu property.

At Notukeu, east of Gull Lake, Culane’s drilling operations in southwest Saskatchewan have resulted in a successful 100 per cent working interest horizontal oil well in the Upper Shaunavon formation. Initial production rates are approximately 94 bpd of oil with an eight to 10 per cent water cut. The Notukeu 2-6-11-17 W3M was drilled in February 2010, and following an initial completion and production testing period, was shut in for most of April, May and June because of spring

• Horizontal 80 m3 frac tanks

• Triaxle Combo Units

Serving Southeast Saskatchewan, Southwest Manitoba & North Dakota since 1956.

breakup and extended delays due to extremely wet weather and field conditions.

When recompletion work was finally able to occur, the well was sidetracked and a new leg drilled in the Upper Shaunavon. The liner in the first leg could not be removed, necessitating the drilling of a new leg from the same well-bore, and the abandonment of the original leg.

The horizontal length of the new leg is approximately 600 metres. A Packers Plus liner assembly was run and the new leg fracked with a nine-stage, 135 tonne frac (15 tonnes per stage) on July 31, 2010.

The well was flowed back immediately after the frac. Overnight, the well flowed back 504 bbls of 22 degrees API oil. The single-well battery was re-piped and the well was placed back on production on Aug. 6.

Initial completion attempts were unable to establish full communication with the Upper Shaunavon reservoir resulting in unusually low reservoir pressure readings and declining production rates caused mainly by drilling damage. The drilling damage has been overcome with the multi-stage sand frac completion that has achieved full communication with the reservoir.

At Notukeu, Culane owns 13 sections of land with a 100 per cent working interest and has identified an additional 45 drill locations. The company currently has horizontal well project approvals from Saskatchewan Energy and Resources for eight new wells and has made a horizontal well project application for another 23 drill locations.

Birdbear The company has approximately one and a half townships of land in the Kerrobert/Coleville area, where they are chasing the Birdbear formation. “We have just under two townships of land in Saskatchewan,” Staus said.

“It’s an emerging play.” ɸ Page B7

PIPELINE NEWS October 2010

B7

Pipeliners Àll campground Enbridge's pipeline work in the Lampman area has led to the town's campground Àlling up with pipeliners. Most of these campers belong to employees of Carson Energy Services' mainline division who were working on the project.

Photo by Brian Zinchuk

Emerging play taking off ɺ Page B6 Asked why they are pursuing this new play, he noted, “It’s oil. That’s the big one. You can drill it conventionally.

You have to horizontal drill, but you don’t have to use sand fracs. In the Birdbear, you don’t have to do that. They use perforated liners on them.

It’s a million dollars cheaper.”

Staus said the 2.5 per cent royalty on the first 100,000 bbl of production was a “very attractive royalty framework.”

The company has drilled two Birdbear holes so far, but has not been economically successful with them. “We’re well into the learning curve now,” he said. “The first two provided valuable information, but were not economically successful.”

One was wet, and the other had an emulsion block. Once production commenced, the well produced 100 bbls of oil in 18 hours, then the well turned back to producing water.

The produced oil sample was sent to the lab for analysis. The produced oil turned out to be a thick emulsion that formed when the mud system was turned over to produced water from another Birdbear pool.

To date, efforts to break the emulsion block have failed. Fresh water and a KCL inhibitor to change over the mud system before completion of the well to eliminate the formation of any emulsion is planned for the next hole.

“We’re doing the li-

censing and surveying,” he said. “We’ll be drilling in October, and I feel we will have a discovery with that well.”

There are two more

a division of Hydratec Industries Ltd. 85 Kress Street P.O. Box 3324 Regina, Saskatchewan S4P 3H1 Tel: (306)721-2630 Fax: (306)721-2495

TOP DRIVE MOTOR HYDRAULIC HOSE ASSEMBLIES

wells planned, one at Kerrobert, the other at Coleville. Wet weather has diverted efforts from Notukeu, due to it being a mudhole.

Level Best Technologies Ltd. • Fluid Levels • Dynamometers • Build-Ups • Fall-Offs • Foam Depressions Dave: 306-461-4322 Pat: 306-861-9986 Brock: 306-461-4323

50 FT ASSEMBLIES FOR “TOP DRIVE” AVAILABLE FROM REGINA STOCK API PIPE - STRAIGHT, 45 AND 90 DEGREE SPLIT FLANGE

ALL COUPLING ANGLES STOCKED IN REGINA www.hydratec.ca Providing Professional Hydraulic Services

Environmentally Friendly, No Gas Burnt, No Electricity, Utilizes Waste Heat Our Patented Heat Trace System Captures Waste Exhaust Heat and Channels Hot Glycol To Where You Need It.

(306) 463-5677

Fax: (306) 967-2605 www.heathawg.com info@heathawg.com

B8

PIPELINE NEWS October 2010

PTI expanding Manitoba camp Waskada, Man. – Just over six months after setting up a camp near Waskada, Man., PTI Group Inc. spent September doubling its size.

By mid-September, one additional dorm was up and running, and another in the process. It will bring the total to four 49-bed dorms. The work began Sept. 2.

The expansion is in response to the strong activity levels in the area, especially by producers like Penn West Energy Trust and EOG Resources.

The camp is located 14 km north of the com-

munity of Waskada.

During the spring of 2010, PTI set up camps in both Waskada and Redvers.

Manitoba has had 21-22 drilling rigs in the province for much of the summer, nearly double its usual level in recent years. A company spokesman noted they anticipate “crazy” levels of activity as soon as freeze-up comes.

Leading the industry in production and specialty chemicals

Estevan: 634-7627 HWY 39 West (#10 Lamoro St.) Carlyle: 453-6494 HWY 9 North A crew works on setting up Redvers House in May. It is a camp on the edge of Redvers, operated by PTI Group.

File photo

www.champ-tech.com

Visit to Schlumberger The Desk and Derrick of Southeast Saskatchewan group visited Schlumberger’s Estevan location on Sept. 20. Facility manager Lance Locken, left, explains some of the local capabilities.

Photo by Brian Zinchuk

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

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

• Major parts and supplies in stock at all times

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

Big Sky Drilling, operating out of Oxbow, Saskatchewan, has the largest rig Áeet in Saskatchewan.

Big Sky Drilling specializes in oil and natural gas drilling in Southeast Saskatchewan and Southwest Manitoba.

OilÀeld, Industrial, Commercial

Ph:(306) 634-9888 ELECTRIC MOTOR DIV. New/Used Sales Complete Rewinding & Repair REPAIR SHOP Trash Pumps, Lights, Heaters, Generators, Compressors, Converters

#1 Hwy 18, Oxbow, Saskatchewan 306-483-5132 • www.ensignenergy.com

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

PIPELINE NEWS October 2010

B9

Novus extends it production footprint in Dodsland Dodsland – Novus Energy Inc. is not resting on its laurels in the wake of an aggressive land acquisition and oil drilling program on its core Dodsland, Sask., holdings in the first half of the year.

The Calgary-based junior and oil and gas company is well into the second stage of its drilling program launched in September with a minimum goal of 11 net oil wells in the Viking formation.

During the first half of year, Novus gained control of 77 net sections of land in its Dodsland Viking core area, and drilled 16 horizontal wells, 14 of which met the company’s expectations for stable production.

Wells drilled in the Flaxcombe, Whiteside, Kerrobert, Forgan, Avon Hills and Dodsland area averaged 51 boepd including unconserved gas as reported in a second quarter news release on Aug. 27.

Unconserved gas is to be tied-in to production with the completion of battery and flow lines.

The company reported its total production up to

Aug. 27 at 1,225 boepd with a 60 per cent weighting towards oil and liquids.

Average production for the first six months of 2010 was up 292 per cent to 298 bpd versus 76 bpd during the same period in 2009.

Natural gas production averaged 2,669 mcf/d (thousand cubic feet per day), an 85 per cent increase from 1,444 mcf/d in the comparative period of 2009.

The company reported 76 wells surveyed in the area, and plans an active drilling program for the balance of 2010 and 2011.

Based on production rates, recoverable reserves, and drilling and completion costs, Novus plans to expand its position in the area with drilling and acquisitions.

Based on its successful first phase drilling program in the Dodsland area, Novus has determined it will follow a prescription to drill 600 metre horizontal

JJ TRUCKING

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

lateral legs using monobore technology with completion operations on the majority of its new wells.

The company will perform 11–15 stage foam fracs of 13–14 tonnes of sand per stage.

Novus has drilled, cased, completed and tied-in the majority of its wells in this fashion at an approximate cost of $975,000 per well.

Novus ended its productive first six months of the year with a capital spending program of approximately $26 million compared to just $548,797 during the same period in 2009.

The capital spending excludes non-cash and business combination transactions. Novus is also in the enviable position of reporting no bank debt and a positive working capital of $23 million in its second quarter ending June 30.

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

Cell: 577-7553 Fax: 455-2433 • ARCOLA

OfÀce:

455-2429

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

B10

PIPELINE NEWS October 2010

A safety blitz by the Highways Transport Patrol hit three locations – Forget, Kenosee, and Carlyle, pictured here – on Sept. 8.

Photo by Brian Zinchuk

Building For Lease

East Industrial Area Estevan Area - 54’ x 112’ including 1080 sq/ft of ofÀce space Approx. 2 acres of yard

Call Dave at 421-1444 or Terry at 421-5997

Highway Transport Patrol OfÀcer Sean Mustatia crawls under a cement truck for an inspection.

It passed.

SOUTHERN SASKATCHEWAN’S BUSINESS (EMPLOYEE) GROUP BENEFIT PROGRAM SPECIALIST’S We would be happy to assist you, your business and your employees with:

Ron N. Areshenkoff, Life Insurance Agent/Mutual Fund Advisor

Group Benefit Plans (health, dental & disability) Group Retirement Investment Plans Group Registered Education Savings Plans (RESP) Group Tax Free Savings Accounts (TFSA) Group Labor Sponsor Fund Plans (LSF) Business or Personal Life Insurance & Disability Insurance

Reynold Bert, Certified Financial Planner

403B—9th Avenue, Estevan, SK S4A 2V4

PH: (306)634-7979 Fax: (306)636-2267 Toll Free: (877)770-0948 info@spectrafinancial.ca * Manulife Securities and the block design are registered service marks and trade marks of The Manufacturers Life Insurance Company and are use by it and its affiliates including Manulife Securities Investment Services Inc. *Insurance Products & Services Are Offered Through Spectra Financial.

“Manulife Securities Investment Services Inc. is a Member MFDA IPC”

WE SPECIALIZE IN HELPING YOU: • Obtain your SECOR (Small Employer Certificate of Recognition) or COR (Certificate of Recognition) Designation • Build a system that is tailored to your needs that is easily understood by your workers

WITH A PROPER HEALTH & SAFETY SYSTEM IN PLACE YOU WILL: • Maximize the potential of your workers • Have less loss time days

• Reduce WCB premiums • Have a safer workplace

Crazy Eye Safety Consulting 1-780-937-1818 • www.crazyeyesafety.com

Specializing in the workin’ mans safety system

Highways blitzes Carlyle district Carlyle – Highways Transport Patrol officers blitzed the Carlyle area on Sept. 8, pulling over numerous commercial transport units.

“We get a lot of positive feedback from these blitzes,” said Fern Gareau, the Reginabased district supervisor who oversaw the blitz.

There were officers in Carlyle, as well as near Forget and Kenosee.

Each time they will focus on a different area.

“Sometime we do logbooks or weights. Today it’s on CVSA, or Commercial Vehicle Safety

Alliance.”

Gareau explained it is an international program among Canada, the United States and Mexico. A successful inspection results in the awarding of a decal, recognized in those jurisdictions for three months.

It usually takes about 40 minutes to do a typical semi-truck inspection. If everything is clean, it takes less, he said.

It starts with looking at the driver’s licence and registration, log books, and permits.

They also examine trip inspection reports and shipping papers.

An inspection will include lights, tires, integrity (i.e. the frame), brakes, steering, suspension, coupling devices, fuel tanks, load security, and other items.

“We had one exhaust that was disconnected,” he pointed out.

The Carlyle location had one driver with the wrong class of driver’s licence. There were some logbook violations, a few permit violations and one unit was overweight. They started at 7 a.m., and were packing it in by 3:30 p.m.

During that time, they pulled over about 40 units.

“It was a productive day,” Gareau said.

PIPELINE NEWS October 2010

B11

These two new buildings on Devonian Street on the east side of Estevan are part of a wave of new construction on the fringes of the Energy City.

Photo by Brian Zinchuk

Two new shops built on spec Estevan - Two nearly identical buildings have risen on the east side of Estevan over the summer, and are nearing completion. According to Dave Wanner, who, along with his brother Terry, are building the shops, there may be more on the horizon.

By mid-September, they were in the process of finalizing leases for the two new shops, built on spec. Each is 54 x 112 ft., with 1,000 sq.-ft. of office space and another 5,000 sq.-ft. of shop space. Each facility will have two acres of yard space.

They are located on Devonian Street East, in

the Rural Municipality of Estevan, just north of the Do-All Metal Fabricating yard.

Wanner said they are looking at doing a third, but added, “We won’t do anything until next spring.”

The lack of building sub-trades has been a factor. “I booked them in February to do these buildings,” he said.

“It’s Estevan, man.

Things are humming.”

D & C Construction, Wanner’s company, is the general contractor.

“We’re about 75 per cent complete,” he said on Sept. 13.

Celebrating

35 Years

Of Service

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

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

www.industrialelectric.ca

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

Join the IEW team Exciting opportunities with a superior employer.

E-mail resumes to: employment@industrialelectric.ca

1120 East Avenue, Weyburn, Sask. Ph. 842-7290

OILPATCH • RESIDENTIAL • COMMERCIAL • AGRICULTURE Call our local agent Mass Farms for all your propane requirements in the SE including the following: • 60 KW propane generators rentals Advantages: low op costs, small environmental footprint, no diesel theft concerns

• Rig Fills • Bulk Delivery Service • Crane Service • Tank Rentals • Agriculture/Grain Drying Propane Solutions... Unparalleled Service

PH: 306.848.0022

B12

PIPELINE NEWS October 2010

Surge active near Lloydminster, Waskada Lloydminster - Surge Energy Inc. (formerly Zapata Energy Corporation) is working on drilling programs in the Lloydminster and Waskada, Man., regions, in addition to other areas.

In the first half of the year, Surge invested $3.7 million to drill seven (6.5 net) wells, $3.1 million on seismic and land acquisitions, $600,000 on facilities and equipment, $100,000 on acquisitions and $1.2 million on other capital items.

Surge initiated a 10 well drilling program in the Silver Lake area, completing six wells in the second quarter. Five of the wells drilled were targeting the Lloydminster BB pool, which is currently under waterflood. Two of these five wells were brought on production late in the second quarter while one was on production early in the third quarter of 2010. As of mid-August, the three wells were continuing to produce at a combined rate of 160 boepd.

Initial pressures from the wells suggest that the current waterflood was successful in increasing overall pool pressure, which is key to improved oil recovery from the pool. The remaining two wells were drilled as injection wells to optimize the waterflood and are injecting into the east side of the pool, more evenly distributing the water injected and optimizing sweep efficiencies. Surge said it has seen excellent response from wells in the west side of the pool that

Oilfield Road & Lease Maintenance Low Level Road Construction (Oilfield, Private) Towing 101141824 Grading Driveways & Laneways (Business, Farm, etc.)

Sask. Ltd. Dugout Excavation (Drainage Work) Fence Line Reclaimation Rock Burial/Removal Doug Brownridge Yard Clean Up Arcola, Sask.

(New Building Sites & Basements) Cell: 306-577-7765 Field Scraping & Land Leveling Home: 306-455-2491 Winter Corral Cleaning (Manure Piling) Equipment Includes: Trenching (Water Works, Water Projects) John Deere AWD Grader, Kobelco Hydraulic Building Demolition Excavator (thumb, digging and clean up (Abandoned Yard Clean Up) buckets), 30 Ton Kamatso Rock Truck.

Snow Plowing & Snow Removal (Oilfield, Seismic) - Liability Insurance Basement & Building Site Construction - Current Valid Tickets - Ground Disturbance Certification Bin Yards

are near four existing water injectors. The sixth well was drilled as a step out well to the pool and was abandoned after failing to encounter a productive reservoir.

The remaining four wells in the program were drilled in the third quarter.

Two were brought on production in mid August from the Cummings formation and are producing at attractive rates. One well was drilled as an exploration well for the Cummings and Lloydminster formations and is currently being evaluated, while the fourth well was drilled and abandoned after failing to find productive Cummings reservoir.

In southwest Manitoba, Surge has identified 74 gross and net horizontal well drilling locations targeting the Spearfish/Lower Amaranth light oil resource play. In the third quarter, it will initiate a five well drilling program in the Waskada light oilfield with the first wells expected to spud in mid to late September. Two of the five wells will be drilled on Crown land and will benefit from the current royalty incentive, which is a zero per cent royalty on the first 63,000 bbls of oil produced per well.

Surge estimates resource potential of 76 million bbls of TPIIP using a 0.1 mD core cutoff. The play has an average of 15 metres of pay with 13 per cent porosity applying the same permeability core cutoff. Identified net locations are based on drilling 16 wells per section. The company plans to drill horizontal multi-stage frac wells at vertical depths of 950 metres and 700 metre laterals with 12 frac stages per lateral using five-15 ton fracs per stage. Previous conventional drilling activity at Waskada provides Surge with extensive vertical well control which will aid in horizontal well production performance prediction.

Courtesy Nickle’s Daily Oil Bulletin

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

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

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

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

Regina’s Newest All-Suite Hotel

ADT’S - COMPACTION - CRAWLERS - EXCAVATORS MOTOR GRADERS - MOTOR SCRAPERS - TOOL CARRIERS WHEEL LOADERS - CAT - KOMATSU - HITACHI - FIAT ALLIS KOBELCO - BELL - TEREX - SAMSUNG YOUR ONSITE EXPERTS KORPAN TRACTOR HAS JUST MADE YOUR EQUIPMENT SERVICE IN THE FIELD THAT MUCH EASIER.

NOW HIRING JOURNEYMEN FIELD SERVICE MECHANICS TAKING EQUIPMENT SERVICE TECHNOLOGY TO THE FIELD, 24/7 WITH OUR FLEET EQUIPPED STATE-OF-THE-ART SERVICE VEHICLES, KORPAN PROVIDES FAST, EFFICIENT FIELD SERVICE TO CUSTOMER JOB SITES.

When you can’t be there, Stay Close to Home.

One Bedroom King Suites with full kitchens Double Queen Studio Suites with kitchenettes Complimentary HomeEssentials Breakfast 24-Hour Fitness and Business Centres Daily, weekly and monthly rates available

NEW & USED PARTS WITH OVER 45 YEARS EXPERIENCE OUR PARTS TEAM CAN HELP MINIMIZE DOWN TIME

3841 Eastgate Drive Regina, Saskatchewan S4Z 1A5 Toll-free 1-877-522-4434

www.homesuites.ca

™

PIPELINE NEWS October 2010

B13

Hawk funds exploratory drilling on core holdings Epping, Sask. – Hawk Exploration Ltd. plans to keep an eagle eye on developing its core oil and gas properties in east central Alberta and west central Saskatchewan for the remainder of the year.

The game play announced with the release of second quarter results on Aug. 26 calls for the drilling of 10 (9.5 net) oil wells, most of them exploratory, with a capital budget of $8.5 million.

The second half drilling program in progress includes provisions to drill two (1.5 net) exploratory horizontal wells in Saskatchewan.

Hawk has already also drilled four (3.2 net) of the 10 planned wells resulting in three (2.2 net) oil wells and one (1.0 net) dry hole.

The company has

also drilled two infill development (2.0 net) wells at Dolcy, resulting in two oil wells to be tied-in to Hawk’s central battery, and on production by the middle of September.

Hawk has drilled one (1.0) exploratory well at Dolcy targeting a separate feature to the east of the main producing pool, however; no commercial zone was encountered and the well was abandoned.

Hawk has also drilled one (0.2 net) exploratory well at Epping, Sask., resulting in a new Sparky formation oil discovery. The well is currently on production at a rate of 50 bpd (12 bpd net).

The third and fourth quarter drilling program is being funded by a working capital surplus of $2.8 million at June, 30, 2010, and the first

drawdown on a $7.5 million line of credit since the junior producer began operations in February 2009.

The company ended the second quarter of the year on June 30 with a funds flow of $745,461 from operators with a production total of 345 barrels of oil equivalent per day.

During that quarter, the company drilled four (3.1 net) exploratory wells resulting in three (2.5 net) producing oil wells, and one (0.6 net) oil well not completed as of Aug. 26.

Hawk also expanded its land base by acquiring 3,720 gross and net acres of undeveloped land at Crown land sales, mainly in west central Saskatchewan.

At Epping, Hawk discovered a new Sparky formation oil pool which is currently on produc-

tion at a rate of 20 bpd (10 bpd - net).

Hawk has 3-D seismic coverage over its Epping lands identifying several follow-up locations which will be pursued in 2011.

At Hoosier, Sask., Hawk discovered a new Manville formation pool containing both oil and natural gas. The well has been completed and tested at rates of 75 bpd (100 per cent owned).

Since the well will require a tie-in, Hawk is assessing its pipeline options in the area so the associated natural gas can be conserved.

14th l nia n e i B

For all your diesel & gas performance needs!

Chips, exhausts, lift kits, trannys, diffys & much more!

Drive a little & save a lot!

Regina, Sask.

(306) 545-5911

Saskatchewan

Oil & Gas Show Exhibition Grounds Weyburn, SK

June 1&2 2011 Show Highlights:

Rest Easier (The oil patch is looking better, but at the end of a long day this bed looks fantastic)

Get Comfy

Planning a Meeting?

We are a family owned and operated company with hotels in Alberta and Saskatchewan striving to be the best managed limited service hotel chain in Canada.

Whether on business or working with a crew in the area, let our friendly staff take care of your needs.

Canalta Hotels meeting rooms are best suited for groups of 20-60 and fully equipped with the latest technology. We can also help you find just the right facilitator and add attractions or team building outdoor adventures.

• Major industry seminars • Awards ceremony • 24-hour security • Keynote industry luncheon speaker • Golf tournament and barbecue • Excellent show facilities with improved outdoor space and storage • First class show management • Social events to broaden exposure • Complimentary loading and unloading • Latest products and services on display • Industry seminars • Free passes for attendees

Chairman: Ron Carson, Carson Energy Services Ltd. Vice Chairman: Dennis Krainyk, Apache Canada Ltd. Honourary Chairman: Hon. Bill Boyd, Minister of Industry and Resources

Previous exhibitors have until Sept. 30, 2010 to rebook into the 2011 show

Sponsored by…

WEYBURN OIL SHOW BOARD If your company uses hotels in rural Alberta & Saskatchewan, we’ll show you how to achieve “Best Value” by consolidating your accommodation needs with Canalta Hotels.

canaltahotels.com RAMADA Airdrie Toll Free: 1-866-945-1288 • Brooks Toll Free: 1-877-362-6440 • Camrose Toll Free: 1-888-672-5208 • Drayton Valley Toll Free: 1-877-514-7861 • Drumheller Toll Free: 1-877-807-2800 • High River Toll Free: 1-866-449-3181 • Humboldt Opening Soon! • Lac La Biche Toll Free: 1-888-623-2250 • Olds Toll Free: 1-866-971-7262 • Pincher Creek Toll Free: 1-866-473-3777 • Stettler Toll Free: 1-888-442-6555 • Wainwright Toll Free: 1-866-934-7994 • Westlock Toll Free: 1-888-319-2245 • Weyburn Toll Free: 1-877-726-2320 SUPER 8 Brooks Toll Free: 1-866-802-1234 • Camrose Toll Free: 1-877-672-7303 • Cochrane Toll Free: 1-866-860-8846 • Drumheller Toll Free: 1-888-823-8882 • Hanna Toll Free: 1-888-854-2401 • High River Toll Free: 1-866-831-8558 • Oyen Toll Free: 1-866-664-3010 • Ponoka Toll Free: 1-888-704-1122 • Provost Toll Free: 1-866-753-2896 • Rimbey Toll Free: 1-877-843-3808 • Rocky Mtn. House Toll Free: 1-866-846-0087 • St. Paul Toll Free: 1-866-866-0688 • Stettler Toll Free: 1-888-742-8008 CANALTA Humboldt & Tisdale Opening Soon! • Moosomin Toll Free: 1-877-342-7422 • Weyburn Toll Free: 1-877-809-1888 • Canalta Jurassic Drumheller Toll Free: 1-888-823-3466 • Canalta Stettler Toll Free: 1-888-742-5808 • TRAVELODGE Drumheller Travelodge Toll Free: 1-877-464-0646

P.O. Box 1450, Weyburn, Sask. S4H 3J9 Tel: (306) 842.3232 Fax: (306) 842.4348 e-mail sk.oilshow@sasktel.net Web Site: www.oilshow.ca Office located at Western Financial Group 33 Fifth Street NE, Weyburn, Saskatchewan

SpeciÀc Targeting

Contact your local Pipeline News Sales rep. to get you 28,000 Circulation on your career ad!

B14

PIPELINE NEWS October 2010

Repair work A cement pumper was needed for repair work to a 16-inch Enbridge pipeline running under Highway 9 near Alameda on Sept. 8.

Photos by Brian Zinchuk

OfÀce - 306-457-3774 Forget, Sk. Ralph French - 577-8553 Greg Cutler - Dispatch - 577-1950 Chris Foote - Dispatch - 575-7218

• FULL SERVICE SHOP • 2 JOURNEYMEN MECHANICS • SGI INSPECTION STATION

Now Providing Tandem Services (16 M3)

SPECIALIZING IN: • Clean Fresh Water Tankers • Oil & Salt Water Transfers • Service Work • Back Hoe Services

r.frenchtransport@yourlink.ca

24 Hr. Emergency 306-457-3774

PIPELINE NEWS October 2010

B15

FairWest sale to fund new production activities Calgary – Finances have been top of mind this year for junior oil and gas company FairWest Energy Corporation that sold some of its non-core assets from its Provost, Alberta holdings for $1.65 million.

The Calgary-based company previously announced its intention to sell up to $2 million of noncore oil and gas assets during 2010, and this transaction, along with other non-core asset sales, total $1.9 million to date.

The sale, effective July 1, and announced Aug. 19, includes interests in several oil pools with estimated production of 28 barrels of oil equivalent per day, 14 (4.1 net) wells, associated facilities and approximately 5,880 gross (2,723 net) acres of land.

The company has a current weighting of 85 per cent natural gas, 15 crude oil and natural gas liquids with production of 420 boepd from oil and gas wells in Alberta and Saskatchewan.

The transaction allows FairWest to reduce its operating line of credit with its lender to $3.5 million from $3.75 million.

Net proceeds from the sale after bank repayment will be added to working capital and used for the company’s 2010 capital program.

The company’s 2010 program of well optimization work along with proposed drilling activities is expected to contribute to a year-end exit production rate of approximately 1,000 boepd. The company has identified a total of 12 drilling locations this year.

In total, approximately 36 conventional drilling locations and three potential resource plays have been identified on its properties that will be pursued as available capital is deployed.

FairWest reports the advance of horizontal drilling and multi-stage fracture technology have unlocked the potential of resource plays on it lands.

The company believes significant opportunities

Kevin Anderson/Darwin Krall

FUSION INDUSTRIES LTD. • Quality Control • Pressure Welding • OilÀeld • Portable Welding • Fabrication • Breaking • Shearing 301A Kensington Ave. • CNC Plasma & Torch Cutting Estevan, SK. • P1-P1 Carbon Steel Procedures • P1-P8/P8-P8 Phone: 634-6177 Stainless Steel Procedures Fax: 634-6178 24 hr Service Cell: 421-5441 421-6179

Email: fusioninc@sasktel.net

exist on these plays to add future production and reserves.

FairWest has three core areas of operations in Provost, Kirkpatrick Lake/Youngstown and Berry Creek, Alberta, covering 75 net sections of land with estimated oil and gas reserves of 24.1 million.

FairWest’s operating and financial strategy involves being the operator of its core properties and holding up to a 50 per cent working interest in the

properties.

The company says being the operator allows it to manage its production base on a timely basis and holding up to a 50 per cent working interest allows the company to manage the operational and financial risks associated with acquisitions and drilling.

FairWest came about from a merger of Fairstar Explorations Inc. and Western Energy Corporation.

ENVIROTRAP SYSTEMS THE PROBLEM

Responsible Product From a Responsible Company THE SOLUTION

Hydraulic Pump Containment Unit

Chemical Barrel Containment Stand

• Unit cost is less than clean-up cost from one packing failure

Wellhead Containment Unit

MISSION STATEMENT

All Your Wellhead Containment Needs Including Hydraulic Pumping Units

“We Work In Harmony With Both The Oil Industry & Landowners To Protect Our Environment”

ENVIROTRAP SYSTEMS 1-306-483-7330 Sales Contact: CHEYENNE OILFIELD SERVICES 1-306-483-7924 E-mail: envirotrap@sasktel.net www.envirotrap.com

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

• • • • •

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

B16

PIPELINE NEWS October 2010

Re-entry wells in Mervin produce cash Àow for Forent Mervin – Forent Energy Ltd. is beginning to reap the benefits of acquiring existing heavy oil wells in the Mervin, Sask., area in December 2009.

All seven re-entry wells in the area were expected to be re-activated in early September and could boost the production total of 150 bpd reported by Forent in an update of its Western Canadian and Nova Scotia operations on Sept. 1.

Total corporate production at that time was running at approximately 260 boepd including 660 mcf/d of natural gas.

The total includes approximately 60 bpd (21 net bpd with a 35 per cent working interest) in some Provost, Alta., wells drilled in late 2009, and brought onstream in February 2010.

Forent plans to drill one new oil well and re-enter a second in Alberta with a 100 per cent working interest in both projects before the end of the year.

The re-entry wells at Mervin were shut-in during the low price period of 1998 partially due to a high water volume.

Calgary-based Forent brought the first two

250PSI Test Seperators Ready for Sale or Rent

Mervin wells onstream at the end of June, and three more in July, with the final pair due on production sometime in September.

Additional locations, acquisition of seismic data and an optimization program are currently being evaluated to further enhance production and cost efficiency in the Mervin oilfield.

The company has been slowly transitioning in 2010 into an oil-focused operator.

The productive re-entry and recompletions program will help to boost Forent’s cash flow to a monthly average of approximately $50,000 for the balance of the year.

Forent holds onshore oil and natural gas exploration licences of more than 1.2 million net acres in Nova Scotia.

The East Coast asset mix includes an extensive inventory of oil and gas opportunities including conventional Gays River carbonate oil and natural gas targets and a significant Horton shale gas resource play.

Progress is being made on the previously announced resource exportation survey being conducted by ARKeX Limited on the Alton Block in N.S. As of the end of August, ARKeX had acquired approximately 53 per cent of the necessary data to complete its survey and is on track to complete the remainder of the survey prior to the middle of October.

As a result, Forent should be in a position to understand the basement structure and complete its interpretation of the 200 square mile reef oil fairway

before the end of the year.

Forent’s positive update follows news of the tragic death of Dennis Forgeron, the company founder, CEO and president who was killed in a plane crash off the Nova Scotia coast along with pilot Ronald David Johnson on Aug. 5.

The deceased were the only two onboard the eight-seat Cessna believed to have gone down while trying to land during rough weather in Sydney, N.S. In a desire to maintain continuity, the company’s board of directors has appointed John Forgeron to fill the vacancy created by the loss of his brother Dennis.

Ironhorse drilling at Leon Lake Higher oil production for Ironhorse Oil & Gas Inc. was the result of the successful first quarter drilling program which yielded significant oil discoveries at Dawson, Alta., and Leon Lake, Sask., the company said.

Ironhorse said its priorities for the balance of 2010 include drilling additional oil wells at Leon Lake, working towards placing the Nisku oil wells on production at Pembina, identifying and evaluating prospective acquisition and merger candidates and fulfilling its remaining expenditure commitments with respect to the 2010 flow-through share offering.

RENTALS

TRUCKING

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

• Pickers • Bed Trucks • Winch Tractors • Texas Beds

c/w liquid meters, auto sampler, gas recorder and inlet divert.

Skidded or portable units available.

Sask Portability Status on all Units.

3” x 40’ Flarestacks also available.

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

MIDALE 306•458•2811 midale@totaloilÀeld.ca

Gibson Welding Ltd. Oilfield Trucking & Rentals

John: 861-1280

CARLYLE Ph: 306•453•4401 Fax: 306•453•4402 carlyle@totaloilÀeld.ca

(A Division of Total Energy Services Ltd.)

gibsonwelding10@hotmail.com • Weyburn, SK

BOOK YOUR BUILDING BUILDINGS 60 x 116 - 18’ Post Frame Building c/w 32 x 18’ Sliding Door............................

................................. $36,787.34 40 x 80 - 16’ Stud Frame Building c/w 20 x 14’ Overhead Door .......................

................................. $21,297.98

VISIT OUR WEBSITE: www.wood-country.com

Metal Cladding Many types & proÀles available.

Now stocking various lengths of Galvalume & white/white metal.

Farm and industrial, galvanized, galvalume and coloured.

26, 28, 29 & 30 gauge metal ordered to suit your size and needs.

Phone for pricing with your individual requirements!

WOOD COUNTRY ESTEVAN

MCLEAN

TISDALE

Ph: (306) 634-5111 • Fax: (306) 634-8441 • 407 Kensington Avenue, Estevan Hours: Mon. - Fri. 7:30 a.m. - 5:30 p.m.; Sat. 8 a.m. - 5 p.m.

"Thinking windows?

Shop and compare!"

Insist on CWD windows and doors.

PVC Windows - Metal clad windows Patio and garden doors - Insulated steel doors

Call for comparative pricing!

PIPELINE NEWS October 2010

B17

Oilsands Quest shrinking Calgary – Oilsands Quest may have to tread in smaller shoes at its core Axe Lake oilsands project in northern Saskatchewan, if, and when, it’s able to resume exploration and development activities.

The U.S. based company announced Aug. 17 it was ceasing all of its activities at Axe Lake and its Wallace Creek and Raven Ridge properties in Alberta pending a complete review of all financial options.

The options currently under review include financing opportunities, asset sales, joint ventures, a merger or a corporate sale among the possible solutions.

The company announced the appointment of Brian MacNeill as acting CEO on Sept.

7, replacing Murray Wilson who is now executive deputy chairman as part of a re-organization process.

Wilson will advise a special committee reviewing the company’s financial options.

“There can be no assurance that the review of strategic alternatives will result in a financing or a sale of the company or in any other transaction,” said Garth Wong, CFO, in a Sept. 8 report to the U.S. Securities and Exchange Commission (SEC) on quarterly results ending July 31.

“There is no timetable for the review, and the company does not intend to comment further regarding the evaluation of strategic alternatives unless the board agrees to a definitive transaction or the process is concluded.”

Oilsands Quest says it may seek interim financing as required

while the strategic alternatives process unfolds.

The company cancelled the sale of its non-core assets at Pasquia Hills in eastern Saskatchewan in the second quarter.

The company held cash and cash equivalents totaling $29.5 million as of July 31, but needs “significant incremental capital” to advance the exploration and development of its oilsands assets in Saskatchewan and Alberta.

In its filing to SEC, Oilsands Quest indicated it relinquished its two northernmost land permits in Saskatchewan during the second quarter of the year.

The reason given was to “focus our exploration and development opportunities to include only those lands that recent exploration activity has demonstrated to be prospective.”

The company also reported that is likely to relinquish its lands south of Axe Land as well due to the presence of embedded water in the reservoir.

Some East Raven Ridge lands in Alberta could be sacrificed for similar water reasons, but the company stresses giving up these properties “will have no

impact” on its current resource estimates or development plans.

“Our reservoir development and exploration activities over the next few months will be focused on a review of our lands to optimize our land base and in preparation for the application to extend our permits in Saskatchewan,” said Wong.

Further delineation drilling is required in the northern and eastern Wallace Creek area and the southern Raven Ridge area to meet permit retention requirements.

“Whether or not the company is able to complete this delineation drilling and retain certain portions of these permits not yet delineated is subject to the availability of capital,” stated Wong.

Oilsands Quest has filed a proposal with the Saskatchewan Ministry of Environment (SME) to produce up to 30,000 barrels per day of bitumen using steam-assisted gravity drainage (SAGD) at Axe Lake.

The application was the first step in the process for the approval of a commercial development.

The company also received approval for a SAGD pilot at its Test

- OilÀeld Maintenance - Service Crews - Pressure Welding - Pipeline Construction - Battery Construction - Rent or Sell New & Used Equipment Randy: 634-5405 - Cellular 421-1293 Darcy: 634-5257 - Cellular 421-1425 • Fax: 634-4575

LOCALLY OWNED & OPERATED BOX 843, ESTEVAN, SK.

24 Hour Service - 634-8737

Attention Oilmen!

What are the challenges in your industry?

What could be improved to help you in your work?

And increase profits?

The Oil and Gas Industry is one of the most important industries in southeast Saskatchewan James, from the SSEER will be calling you soon to get your take on the state of the industry.

Site 1 at Axe Lake prior to ceasing operations.

The pilot calls for the drilling one 100-meter long horizontal well pair, with the upper well placed five metres above to demonstrate the steam containment properties of the glacial till cap prior to designing the commercial SAGD project.

The company’s five year permits expired in 2009, and they received approval for the second of a possible three oneyear extension in June, and may seek another one-year extension in May 2011 – pending available financing.

The company reports that it may elect to convert the permits to leases prior to their expiry and hopes to transfer its permits from 1964 Oil Shale Regulations to 1969 Petroleum and Natural Gas regulations to take advantage of the less stringent conversion from permit

to lease rules.

However, the company notes it must be in compliance with 1985 Oil and Gas Conservation Regulations, and is currently discussing potentially costly reabandonment issues with SME. The company’s priority is to re-abandon 55 core holes within its potential commercial development area at Axe Lake and plans for waivers on another 155 core holes outside the

development area.

The Oilsands Quest quarterly report states “the regulator has indicated that they are willing to consider such waivers on a case by case basis.”

The company estimates it will cost $29 million over five years to re-abandon an inventory of 108 core holes in or adjacent to its commercial development area plus a portion of core holes that they seek waivers on.

Kodiak CSA Workboots • JB Goodhue Fire Retardant Coveralls • Bib Overalls CAT Hard Hats • Replacement Suspensions Safety Glasses • Work Gloves DuPont™ NOMEX

RON’S The Work Wear Store Ltd. 202 MAIN CARLYLE 453-6167

112 2ND ST. WEYBURN 842-3006

1210 4TH ST ESTEVAN 634-8232

WEYBURN SASKATCHEWAN - 306-842-8901 ESTEVAN SASKATCHEWAN - 306-634-8912

Essential Coil Tubing currently has a fleet of 25 coil units. These units are tandem tandem and tandem tridems. We have coil capabilities of up to 2500 meters of 2.00”, 3400 meters of 1.75”, 4500 meters of 1.5”, and 6700 meters of 1.25”. 7 sets of Class II blowout preventers, including two remote accumulators and Class III capabilities.

We are actively working in Southern Saskatchewan.

Please call us for a list of all the services we provide.

If you are looking for a dynamic new career and live in the area, fax your resume with a driver’s abstract to 403-580-8906

B18

PIPELINE NEWS October 2010

CPL Systems inc. greases the squeaky wheels in the West Edmonton – When it comes to actually greasing a squeaky wheel CPL Systems Inc., a subsidiary of the Groeneveld Group of global companies, makes it happen.

CPL Systems is a market leader in Canada for automatic greasing systems and equipment products for road transport, heavy off-road construction equipment and industrial applications.

The fast growing company serves Alberta from a base in Edmonton, and Saskatchewan from a branch office in Winnipeg, Man., specializing in sales and installations of automatic greasing systems and grease.

“The most important thing you can do to your equipment is keep it greased,” said Ron Madsen, branch manager of CPL Alberta in Edmonton.

“If components aren’t greased, friction is going to wear, and you are going to end up replacing everything on that machine.”

A typical automatic greasing system from CPL Systems includes a reservoir of grease that is pumped to each injector simultaneously from a grease line to all points that require lubrication.

Two to three axle trailers with a maximum of 19 grease points would get CPL’s Compalube single line automatic grease system.

Trucks, trailers including fifth wheelers, and dump bodies are applications suited to CPL’s pneumatic single line lubrication system.

“We put a pump system on a tractor trailer and off-road equipment like loaders and basically, it does all the greasing of the machine or truck for you,” said Madsen.

“All you have to do is fill up the grease reservoir rather that going to 50 to 60 grease points on a machine.

“On a trailer, it will work on a braking application. Every time you hit the brakes, it will pump grease if there is no power to the trailer.

“On a tractor or a piece of off-road equipment, it works off pneumatics. You

T. K. Trailer Sales Manor, Sask. Ph: 1-306-448-2260; Cell: 1-306-575-7116

www.pjtrailers.com

Deckovers

Goosenecks 2 & 3 Axle (various weights)

8” I-Beam Frame

96” x 14’

Dumps

60” x 8/10’

78” x 10/12/14’

Tilts Makes Loading Easy!

Utilities A variety to choose from

pre-set your greasing counters to however much grease is required.”

The automatic greasing system is custom installed by CPL Systems on transport trucks so each grease point has the right size injector.

The injector, based on the size, will fire a specific volume of grease required at each lubrication point.

“It is custom designed for each piece of equipment,” said Madsen. “The pump can handle loads of grease from four to eight kilograms, and right up to a big barrel pump. It all depends on the application.

“Where it really works nice is in large fleets because trucks are gone and service schedules are all over the place.

“In large fleets, the fleet manager can be assured that all of his equipment is being regularly greased all the time.

“We do business with all of the large fleets like Gibson Energy and Venture West Transport Inc. We are on everything you see running around.

“Scheduling a large fleet of trucks – you just never know when you’re going to see that truck when it goes out the door. It could be going right across Canada and into the U.S. and back. You might not see a service cycle for quite some time.

“This ensures the vehicle is being greased. It’s more peace of mind than anything.”

Automatic greasing systems for off-road heavy construction equipment made by companies such as Volvo, Cat and Komatsu tend to be factory installed and imported by Groeneveld to Canada.

CPL Systems uses what’s called Greenlube EP-0 grease, specially made by Petro-Canada, to work with CPL’s pumps in low and high temperatures.

EP-0 grease is formulated for different equipment, and is designed to extend to the warranty on CPL’s pumps. It’s also environmentally friendly with no heavy metals.

The low temperature grease will perform reliably and consistently in temperatures to -40 C. EP-0 or EP-1 heavy duty moly grease benefits severe duty applications such as off-highway logging and construction equipment. ɸ Page B19

Car Haulers

• COMMERCIAL • FARM • OILFIELD • PERSONAL

We Now Sell CONTINENTAL CARGO TRAILERS!

AS &

OILFIELD OPERATING LTD.

Shelley Schroeder

Andy Schroeder

• Construction Safety OfÀcer

• Battery Operating/ OilÀeld Consulting

• Health & Safety Administrator

• Construction & Pipeline Supervision

• External Safety Auditor

• Service Rig Supervision

Cell: (306) 421-3351

Cell: (306) 421-9288

Riley Shaver

Nick Martin

Lead Operator

Operator

421-8446

421-1881

Denille (Schroeder) Shaver Relief Operator

421-2117 106 Souris Ave. N., Estevan, Sask.

Ph: (306) 634-4087 Fax: (306) 634-8817 E-mail: as.oil@sasktel.net

PIPELINE NEWS October 2010

B19

Automated greasing systems ɺ Page B18 The moly contains five per cent molybdenum-disulphide, an additive that provides a protective barrier against wear even when grease is depleted.

A twin EP-2 grease-based lubrication system is also used for off-road applications and harvesters. With the twin automatic greasing system, it takes just one minute to grease all points on heavy construction equipment while in operating mode.

Greenlube grease is available in 35, 120 and 400 pound containers for all Groeneveld lubrication systems.

CPL systems can offer customers the Groeneveld Oilmaster system that measures the engine oil level, and automatically supplies new oil, as necessary.

CPL Systems had planned to set up an indoor booth at the Lloydminster Heavy Oil Show Sept. 15-16 but as Madsen said, “We have a large foothold across Western Canada already.

“We are a world-wide company and into every application with branches everywhere. We are a global company,” he said.

Groeneveld is headquartered in the Netherlands with various subsidiaries in Europe, North America, Australia and South Africa.

In Western Canada, CPL Systems also sells and installs a growing volume

of driver safety alarms and camera systems including the Groeneveld Greensight system that makes vehicle backups safer.

This system uses ultrasonic sensors to provide the driver with accurate information about the space available behind his vehicle.

CPL Systems is the North American distributor for Orlaco camera systems and provides sales, installation and service of these products.

The diversified company also markets its own brake stroke indicator called the Tattle Tale that allows vehicle operators to do a quick and accurate brake stroke measurement.

“We started to see a real increase in marketing for backup alarm systems and camera systems mainly for the heavy off-road equipment,” said Madsen.

“We’ve seen an increase in business for safety reasons. Some of the larger dealers like Brandt Tractor Ltd. are utilizing backup camera systems and Greensight sensor systems a lot.”

Petro Viking to buy Deep Creek Petro Viking Energy Inc., a capital pool company, is seeking to buy Deep Creek Oil and Gas Inc., a privately held company which operates as an oil and gas exploration and development company with various working interests in producing properties in central Alberta and west central Saskatchewan.

Petro Viking intends to acquire Deep Creek in a reverse takeover transaction which will be effected by way of a three cornered amalgamation or other similar form of transaction.

The corporation and Deep Creek will amalgamate in accordance with the Business Corporations Act (Alberta) to create a new company under the name Petro Viking Energy Inc. Deep Creek was formed to operate in Canada as an oil and gas exploration, development and production company, commencing business operations on Nov. 29, 2006. Deep Creek has, since that time, completed initial financings, implemented an operational structure and business plan, formalized its management team, completed certain corporate reorganizations and acquired various working interests in Alberta and Saskatchewan.

Among its assets, Deep Creek has a significant land position near Kindersley consisting of a 20 per cent working interest in 42 sections of land. This core area provides numerous Viking drilling prospects.

Yoga helps with Stress, Insomnia, Back Pain, Arthritis and more by Increasing Flexibility, Increasing Lubrication of Joints, Ligaments and Tendons. Massaging of ALL Organs of the Body, Complete Detoxification, Excellent Toning of the Muscles.

&

NEW SHOP

SUPPLY STORE

Highway 39 East, Estevan Saskatchewan

Services Offered: Hydraulic Design Mounting Options Hydraulic Hose & Fittings Trouble Shooting Tube Flaring & Bending Accumulator Repair Hydraulic Plumbing Cylinder & Valve Repair Pump & Motor Repair Custom Power Units Filtration Winches

October 15, 2010 1411 Hwy 18 - Carnduff

Do All Metal Fabricating is proud to introduce, Patrick Donnan, as the Hydraulics Shop Manager

For more information & inquiries call: (Ph) 634-6232 (Cell) 421-6412 Email pdonnan@doallmetal.com or visit www.doallmetal.com

482-5105

Inventory in Stock: Repair kits & parts for CharLynn motors & pumps Complete line of o-rings Eaton AEROQUIP hose & hose ends, adapters & fittings

Cominng Soo

www.candnoilÀeld.com

C&N OilÀeld Maintenance Ltd., Box 275, Carnduff, SK, S0C 0S0 • Fax - 482-5213

B20

PIPELINE NEWS October 2010

DISCOUNTS UP TO $15,000!

PLUS

GM LOYALTY UP TO $1500 • CASH FOR CLUNKERS UP TO $3000 • FREE GM ACCESSORIES UP TO $1500 ON SELECT MODELS! NEW

NEW

NEW

C0-402 2010 Chev Equinox AWD 2.4L, 6-speed auto, remote start,bluetooth, 18” alloys. On-Star, power heated mirrors.

0% financing 36 months. Regular $31,695.

NOW $30,950 or $241 bi-weekly

NEW

C9-654

2010 Chev Silverado Crew 4.8L, V8, 4x4, On-Star, XM Radio, 17” alloys.

Regular $39,425.

NOW $28,950 or $225.71 bi-weekly

2010 Ford Explorer Sport Trac XLT 4.0L, V6, 4x4, Crew, Power Seats, Roof 2009 GMC Sierra 1500 SLE Rack, Steering Wheel Controls, 17” Alloys, 5.3L, V8, 4x4, Crew Cab, Keyless Entry, On-Star, Only 9,055km.

Satellite Radio, Tow Package. 65,153km.

$33,900

$25,900

C0-257A

C0-18 2010 Chev Silverado LT Ext 5.3L, V8, 4x4, Remote start, trailer brake control, HD Cooling package, On-Star, XM Radio. Regular $46,280.

NOW $34,950 or $271.91 bi-weekly

C0-337 2010 Chev Avalanche LT 5.3L, V8, 4x4, remote start, trailer brake control, HD Cooling package, On-Star, XM Radio, 20” Alloys. Regular $50,520.

NOW $37,995 or $295.36 bi-weekly

NEW

C0-436A

C0-209 CO-209A C0-435A 2010 GMC Sierra 2500HD SLE Crew 4x4 2010 GMC Sierra SLE 2500 2010 GMC Yukon SLT 6.0L, v8, Flex Fuel, 4x4, trailer brake controller, 6.6L, Duramax diesel, Allison auto trans, rear 5.3L, V8 Flex Fuel, 4x4, Leather, Sunroof, camera, Z71, bucket seats, lift kit, after warranty remote start, Bluetooth, steering wheel controls, On-Star, HD trailering equipment, 17” wheels, box rails, tube steps. Regular $65,641 Bluetooth, On-Star, Back Up Sensors, Heated Seats, Third Row Seating, Only 13,380km. + $7,161 accessories = $72,802. alloys. Regular $54,395.

NOW $57,575 or $447.00 bi-weekly $48,900 NOW $39,890 or $309.95 bi-weekly

2010 Chev Suburban LT 5.3L, V8 Flex Fuel, 4x4, Leather, Sunroof, Bluetooth, On-Star, Back Up Sensors, Heated Seats, Third Row Seating, Only 15,653km.

B10-152

C0-403A

C8-523A

C8-676A

C0-374A

NEW

C0-175

2010 GMC Terrain SLE AWD 2010 Buick Enclave CX 3.6L, V6, 6-speed auto, 6-way power drivers 2.4L, 6-speed, auto, USB Port, rearview camera system. Auto-dimming mirrors, 0% financing seat. Power liftgate, On-Star, 8 passenger 36 months. Regular $32,875. seating, bluetooth, XM Radio. Regular $45,210.

NOW $32,195 or $250.70 bi-weekly NOW $38,975 or $302.91 bi-weekly

NEW

C0-12

NEW

C9-494

C0-263 2010 Chev Traverse AWD 3.6L, V6, 6-speed auto, On-Star, Bluetooth, XM Radio, rear parking assist. Trailer towing package. Regular $43,460.

NOW $36,950 or $287.31 bi-weekly

NEW

2010 GMC Sierra EXT 4.8L, V8, 4x4, Bluetooth, trailer brake control, On-Star, XM Radio.

Regular $40,665.

NOW $29,950 or $233.41 bi-weekly

NEW

C0-55A

2009 Chev Silverado LT 5.3L, V8, 4x4, Crew Cab, Keyless Entry, On-Star, Satellite Radio, Tow Package 55,983km.

2009 GMC Envoy 4.2L, V6, 4x4, Sunroof, Roof Rack, 6-Disc Changer, On-Star, Cruise, Only 32,459km.

2008 Cadillac Escalade Ext 6.2 L V8, Leather, Heated Seats, HID Headlamps, On-Star, Nav, Dual Headrest DVD, Rear DVD Entertainment System, 22” Chrome Wheels, Must See! Only 28,000km.

$25,900

$26,900

$53,900

C0-26A

C0-127A

$49,900

2008 GMC Sierra 2500 HD 6.6L Duramax Diesel, 4x4, Crew, 6-Way Power Drivers Seat, Tow Package, Keyless Entry, 122,869km.

$32,900

C0-333A

C0-128A

C9-542A

2008 Ford Ranger 3.0L, V6, 4x4, Keyless Entry 48,183km.

2007 Cadillac Escalade Ext 6.2L V8, Leather, Heated Seats, HID Headlamps, On-Star.

2007 Chev Silverado 2500 6.6L, Duramax Diesel, Cruise, Tow Package, PL, PW, Cruise, Only 44,596km.

2007 GMC Sierra 1500 SLE 23,343km. 5.3L, V8, 20” Alloys, Crew Cab, Keyless Entry, On-Star, Satellite Radio.

2007 GMC Canyon 2.9L, 4 Cyl, Auto, Cruise, PL, PW, 15” Alloys, Only 28,011km.

2007 Ford F-350 6.0L, V8, 4x4, Super Crew Cab, Keyless Entry. 118,945km.

$16,900

$35,900

$31,900

$23,900

$13,900

$28,900

C9-602A 2006 Chev Avalanche LS 5.3L V8, 6-Way Power Drivers Seat, Power Locks, Power Windows, Cruise, Only 26,723km.

2006 Ford F-250 Crew Powerstroke Turbo Diesel, Leather, Sunroof, 20” Alloys, Cruise, Keyless Entry.

2006 Chev Colarado LT 2.8L, 4 Cyl, Auto, Keyless Entry, Cruise, Power Locks, Power Windows, Only 28,774km.

$19,900

$19,900

$15,900

C0-336A

C9-419C

C9-353B

C9-478A

C9-561A

C8-514A

C9-645A

2004 GMC Yukon XL 2005 Chev Silverado 1500 5.3L, V8, 4x4, Heated Leather Seats, 5.3L, V8, 4x4, Crew, Leather, Rear DVD, Steering 2005 Chev Silverado 1500 6-Disc Changer, Rear DVD, Steering Wheel Wheel Audio Controls, Bose Sound System, 5.3L, V8, 4x4, Step Side, Keyless Entry, Cruise.

Controls, 140,512km.

Keyless Entry.

$17,900

$16,900

C9-684B

$19,900

C9-593B

C0-46C

C0-28A

2004 Chev Trailblazer LT 4.2L, V6, 4x4, 3rd Row Seating, Dual Climate Control, Keyless Entry, 92,642km.

2004 Ford F-350 6.0L, V8, 4x4, Keyless Entry, Tow Package.

2003 Nissan Pathfinder LE V6, 4x4, Leather, Sunroof, Power Locks, Power Windows, Cruise.

2002 Chev Trailblazer LT 4.2L, V6, 4x4, Roof Rack, On-Star, Cruise, Power Locks, Power Windows.

2001 Chev Tahoe 5.3L, 4x4, 6-way Power Drivers Seat, 3rd Row Seating, Keyless Entry, Tow Package.

2000 GMC Yukon XL 5.3L, V8, 4x4, Keyless Entry, Tow Package, 6-Way Power Drivers Seat.

$14,900

$19,900

$13,900

$8,900

$9,900

$4,900

1-800-922-6531 or 306-842-6531 • www.barbermotors.com • #1 Government Road, Weyburn, SK

SpeciÀc Targeting

Contact your local Pipeline News Sales rep. to get you over 28,000 Circulation on your career ad!

PIPELINE NEWS October 2010

B21

In an amalgamation between rubber tired farm tractors and conventional dozers, the Deere High Speed Dozer offers road mobility and dirt-moving ability.

G.W. Trenching & Hauling Ltd. Serving the OilÀeld in S.E. Sask. for 36 years!

Rubber tracks for the patch Lloydminster – One of the standout new pieces of hardware in the Lloydminster Heavy Oil Show was the new high-speed dozer in the Brandt Tractor booth.

The Deere 764 High Speed Dozer looks like a cross between a quad-track farm tractor and a small to medium-sized dozer.

The model can travel at 25 km/h, and is road worthy, according to Dale Babuik of Regina-based Brandt Tractor. It can cross asphalt and even drive on asphalt, something you wouldn’t dream of doing in a steel-tracked machine, at least without several men throwing tires to pad it. Even that is becoming frowned upon these days, he noted. If you want to cross roads with a dozer, you’re often required to load it on a truck to go from lease to lease.

“There’s been a lot of people saying, ‘That’s different,’” he said.

The machine features a six-way blade that can be equipped with a factory grade-control interface package. It can be steered by joystick or wheel. The right joystick controls the blade, while the left is movement control.

The machine is articulated in the middle, like a large tractor. Front and rear differential locks can be engaged on the go. Those locks automatically disengage during turns and re-engage once the turn is completed.

Gibson Welding Ltd. Oilfield Trucking & Rentals John

861-1280

Fax 842-1707 gibsonwelding10@hotmail.com P.O. BOX 926, WEYBURN, SK S4H 2L2

The undercarriage oscillates front and back for a total of 20 degrees. The machine has a drawbar and rear hydraulics for pulling equipment like scrapers or rollers.

They hadn’t sold any in Saskatchewan at the time of the oil show, but the machine did see some testing at the Saskatoon snow dump last winter.

Asked where it might be of use in the oilfield, Babuik said that seismic crews or clearing snow in winter might be two options.

• OilÀeld Fiberglass Pipeline • Sand and Gravel • Backhoe Service • Bobcat Service • Environmental Services • Electrical Trenching • Grader Work • Flow Line Construction • Cat Work (6-way Dozer) • Sewer and Water

Lampman, Saskatchewan Contact: Gordon Waugh Bus.: (306) 487-3178 Cell: (306) 421-0566 Fax: (306) 487-3253

A limited supply of

2011 HarleyDavidson Motorcycles are now arriving!

Call for details.

Harley-Davidson of Yorkton Since 1984

306-783-1999

In house financing available & layaway terms.

www.harleydavidsonofyorkton.com

• 35, 30 & 23 Ton Pickers • Bed Truck • Pipe Custodian • Pipe Racks • Rig Matts • Flarestack Sales & Rentals • Tubing Trailers • 400 BBL Test Tank Sales & Rental • Wellhead Sales & Installation • Backhoe & Skid Steer • Steamer • Crew Truck • Test Separators • Work Strings • Light Towers CertiÀed • SECOR COR Certified

PERCY H. DAVIS LTD.

CUSTOMS BROKERS

Forwarders & Consultants Export/Import Specialists EDI Networking International Package Express Service (IPX) HEAD OFFICE North Portal (306) 927-2165 Estevan (306) 634-5454 Regina ...................... (306) 352-2662 Saskatoon................. (306) 244-4847 Regway..................... (306) 969-2126 Moose Jaw ............... (306) 694-4322

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

B22

PIPELINE NEWS October 2010

Integrated expanding operations in Canada Lloydminster – Integrated Equipment is looking at adding several Canadian locations in the near future, after setting up shop in Edmonton two years ago.

Integrated Equipment’s equipment is meant for pressure control, be it blow out preventer systems (BOPS) or elastomer products.

Edmonton is their only facility in Canada. It opened two years ago.

“We hope to open in Calgary and Red Deer,” said Barry Herring, who came from Houston, Texas, to attend the Lloydminster Heavy Oil Show. They aren’t looking to Saskatchewan at this time, but he noted, “We also have some distributors who store some of our product for sales.”

“We focus our BOPS on the workover business. We’re the largest land workover company in North America, based on quality, service and price. We also build drilling rig BOPS as well,” Herring said.

“We’ve been in Canada for a period of time, through a distributor,” he explained. Two years ago, it was time to set up their own location and “get closer to our distributing network.”

“We just moved into Pennsylvania, and are distributing for there into North Dakota.”

WANT TO BUILD IN ESTEVAN?

Barry Herring, left, of Houston, and Tyler Klotz of Edmonton stand beside a blowout preventer system made by Integrated Equipment.

Photo by Brian Zinchuk

Commercial/Industrial Acreage Lots starting at $55,000 per acre on the east side of the oil booming city of Estevan

All lots are serviced with power, gas, water and sewer to the property line.

Lot 6 Lot 7

Lot 12

www.estevanlistings.com

Lorna Pylychaty Broker/Owner

Business: Progressive Realty 634-2628 (24 hours) 902 - 4th Street, Estevan, SK S4A 0W3

Connor Landstrom of Lashburn, 20 months old, examines the Integrated Equipment display at the Lloydminster Heavy Oil Show.

Photo by Brian Zinchuk

• Bulk Petroleum & Propane

OIL & GAS, CORPORATE & TRUSTS

• Cardlock • Propane Accessories • Lubricants

Girard Bulk Service Ltd. ESTEVAN

OXBOW

ALIDA

THOMAS A. SCHUCK Re-organizations Taxation of Mineral Holdings Mineral & Royalty Trusts Family Trusts & Joint Ventures Incorporation of Oil Field Companies PROPANE

REDVERS

319 Souris Avenue N.E., Weyburn, SK

453-2262

452-3216

www.nswb.com

134 4th Street

637-4370 483-2826 443-2466

(306) 842-4654

CARLYLE

Big enough to meet your needs; Small enough to care that we do!

PIPELINE NEWS October 2010

B23

Supplementing both the Drilling and Production sectors of the Oilfield Industry around the clock safely and efficiently. We specialize in transporting Salt Water, Crude Oil, Completions, Contaminated Mud, & Fresh Water!

Our Full Commercial Truck Wash & Service Centre is NOW OPEN Office 1-306-453-4470 Fax 1-306-453-4404 Toll Free 1-888-453-4470 dlesage@equaltransport.ca

Donnie Lesage 1-306-577-9960 Blaine Dahl 1-306-577-9801

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

Specializing in Non Damaging Biodegradable Drilling Fluids Designed for Horizontal Drilling

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

â&#x20AC;&#x153;Serving The Oil and Gas Industry with 24 Hour Drilling Fluid Serviceâ&#x20AC;?

B24

PIPELINE NEWS October 2010

Truck bodies tough enough to be called Brutus Lloydminster – He grew up at Birmingham, Sask., 12 miles from Melville, attended high school in Yorkton and Regina, and has spent most of his life in Penticton, British Columbia. Now, having built a strong business in truck boxes and service bodies, Gerry Turchak is looking back home, to Saskatchewan, as an expanding horizon for his business.

Brutus Truck Bodies was one of the new entrants to the Lloydminster Heavy Oil Show this year, displaying its signature Brutus truck box, a utility truck and a lubrication service truck. The Penticton-based company has made a name for itself in building heavy duty truck boxes.

“I was a truck dealer,” Turchak said. “I got into this business by accident. At the time I was a Navistar medium and heavy duty truck dealer in Penticton, and I had a body shop.” ɸ Page B25 Gerry Turchak grew up near Melville, went to high school in Yorkton and Regina, and now builds heavy duty truck boxes in Penticton, B.C. He’s targeting Saskatchewan as a new market.

Photo by Brian Zinchuk

We l l S i t e s s P i p e l i n e s Mapping s As-Builts Construction Surveys Subdivision/Property Surveys

40249211•06/25/10

w w w. c a l t e c h s u r v e y s . c o m CALGARY

REGINA

UNITY

403 | 263 | 8055 306 | 775 | 1814 306 | 228 | 4366

cturchak@brutusbodies.com

See our online inventory at www.brutusbodies.com

40242872•03/06/09

s s s s

40242872•06/25/10

PROFESSIONAL L A N D S U R V E YO R S

PIPELINE NEWS October 2010

B25

Brutus Truck Bodies owner raised in Saskatchewan ɺ Page B24 A customer came in having recently crushed the box on his new pickup with a logging skidder.

He wanted a heavy duty box for the logging industry.

“The following week, I got him and two other logging customers in my body shop and we designed a heavy duty pickup box with chalk on the shop floor.”

Key features of this new body would by strength and long life. “It had to be strong and live a long time to accept the rigours of the logging industry,” he said.

Asked what made him think he could design a better box than Ford or GM, Turchak responded that they had simply disregarded specialty markets like logging and petroleum.

“Ours was designed to be heavy duty.”

Their boxes have steel twice as thick and “many times stronger,” than a factory pickup box, according to Turchak. “The tailgate is a working man’s tailgate,” he said. “You can mount a vice on it, weld on it. It’s just different.”

Indeed, the sample box on display in the outdoor exhibit almost requires a warning before you open it. It’s heavy, really heavy, so you better be ready for it.

The original Brutus Box was a fleet-side, but it didn’t stay that way.

“After a few weeks, our biggest customer wanted a step-side box. Another

customer had his chainsaws stolen while at the bar, so he wanted lockable boxes.

Next, someone wanted something bigger to accommodate dual wheels. Soon there were many different flavours.

“In the first year, we went for a simple pickup Brutus Box to custom special bodies. It was truly an accident. If that customer hadn’t come in and asked for help, we would have never done it.”

The business has grown to the point where Turchak got out of the truck dealership nine years ago. “We’ve been growing and adding,” he said. They’ve had five expansions in 30 years, and are completing the purchase of more land for another 12,000 sq.-ft. body shop.

“We are a stall builder,” he said when asked about their manufacturing process. Units go through production, prep and paint, mount and finish processes. “In many cases, we even paint the chassis.”

They prefer that buyers purchase their chassis through local dealerships, which helps in the support of the purchase.

“Virtually 60 per cent of what I do is in Northern Alberta,” he said.

Brutus Truck Bodies is much more than the Brutus Box, however. On display at the oil show were a lube body and a utility truck like that used by a mechanic. There was also a wide variety of

truck-mounted cranes on display, including knucklebooms and stiff booms.

“We sell lots of cranes,” he said.

“This is our first show, so we’re kind of the new kids in town.”

The lube service body incorporates a 1,000 gallon double-walled fuel tank. The back is lined with hoses for dispensing new fluids or sucking up used fluid. Inside are in two rows of tanks. Each has an air filter to prevent dust from entering the tank, contaminating the fluids. Sight glasses run along the sides of the tanks. LED bulbs run along the ceiling. There are enough tanks to carry multiple grades of oil, along with transmission fluid, gear oil, and antifreeze. Collection tanks for waste oil and antifreeze are also present.

On the left side of the truck, an integrated parts washer and drip tray for used oil filters are easily accessible. “They drain while you go home.”

His company may be all about truck bodies, but Turchak also enjoys riding a bike. For a number of years, Turchak drove a Yamaha motorcycle specially modified to allow a TV cameraman to ride on the back to film and interview triathletes during the Ironman Canada event in Penticton. That won’t work with his current bike, a Harley. It’s too loud.

Turchak still has a farm near Melville, which he rents out.

Trevor Normand pulls a Áuids line out of a lube service body built by Brutus Truck Bodies.

FULL FLUSHBY & PRESSURE SERVICES BODY VACS, STEAMER/PRESSURE WASHER SERVICES SALTWATER DISPOSAL PUMPING SERVICES

24 HOUR SERVICE Ken McConnell Owner/Operator 24 HR Dispatch: 780-205-9001 Mike #: 403*11*29001 Fax: 306-397-2697 Box 238 Edam, SK rackenent@hotmail.com

B26

PIPELINE NEWS October 2010

New incarnation of old switch Lloydminster – The original switch was designed in 1954, and now Robinson Controls Inc. has come out with the latest version of its switch for pumps. The new switch was on display at the Lloydminster Heavy Oil Show.

The switch goes on the tee from the wellhead to the flowline. If pressure spikes, it shuts

off the engine, which then shuts off the pump.

A diaphragm on the bottom of the unit is connected to a hard stop micro-switch, which sends an electrical signal, according to Pete Schwartz, one of the Robinson exhibitors.

Pressure from the wellhead can rise due to waxing, debris or ice.

Waxing is the big one,

Schwartz said.

The original switch was developed by Percy Robinson and Imperial Oil. It is known as the Robinson Switch or the Camrose Switch.

They had two models on display, one for production pipe, the other for stuffing boxes.

Schwartz called it “pollution control,” as it stops the pump before a leak

24 Hour Service

Oilwell Servicing Ltd. 30 years 1978 - 2008

• 3 Free Standing Rigs Available • 1 Mobile Double Double • 2 Mobile Fr ree Standing Single Doubles

becomes an issue. They also had an isolation valve on hand. All three are new products, introduced in recent weeks before the Lloydminster Heavy Oil Show.

“We are now dualseal certified. If the primary seal were to rupture, there’s another seal half-way up to keep oil from the electronics,” Schwartz said. It’s new to this design, conforming to recently adopted standards.

They work on pumpjacks and progressing cavity pumps as well, he noted. The units see use in southeast Saskatchewan, and they are hoping to regain market share in the Lloydminster area.

Steven Martens, kneeling, Pete Schwartz and Colin McCaffrey could be found at the Robinson Controls Inc. booth during the Lloydminster Heavy Oil Show.

Specializing in...

• Workovers • Completions • Abandonments • Pump to Surface Lloydminster

(306) 825-7914 Darryl Garrison Cell (306) 821-2815

“Industry Leading Quality and Service Since 1987” 6150 - 76 Avenue, Edmonton, AB T6B 0A6

Phone: 780-440-2855 Fax: 780-440-1050 Email: brotherscoating@shaw.ca www.brotherscoating.com

Specialists in Internal & External Coating Applications Epoxy Linings • Metalizing • Fiberglass • 100% Solids Epoxy Pipe, Bends, Tanks & Vessels

PIPELINE NEWS October 2010

BATES OF UP TO E R T N A T S IN

Yamahaâ&#x20AC;&#x2122;s Right Here Right Now Sales Event is on and that means big savings!

Buy any Yamaha motorcycle, snowmobile, outboard, ATV, side by side, sport boat, WaveRunner, snowblower, or power product by October 12, 2010 and receive instant customer rebates of up to $4,300, finance r ates from 3.49% or extended warranty plans. On top of these sales incentives, you will automatic ally be entered to win your purchase (up to $25,000) or choose $5,000 Yamabucks!*

DEALER 609 Winnipeg Street

525-6700 1-888-763-6700

B27

B28

PIPELINE NEWS October 2010 #5755 2010 Chevrolet Impala LT

#5600 2010 Chevrolet Impala LT

#5653 2010 Chevrolet Cobalt LT Coupe

#5692 2010 Buick Lacrosse

#5699 2010 Buick Lacrosse All Wheel Drive

#5700 2010 Buick Lacrosse

MSRP 30,800

MSRP 30,925

MSRP 22,870

MSRP 36,855

MSRP 40,300

MSRP 36,855

$23,595* with 0%

$23,595* with 0%

$11,950*

$25,500*

$28,650*

$25,500*

#5891A 2010 Toyota Matrix

#5890A 2010 Chevrolet Impala LT

#5822 2010 Chevrolet Equinox AWD

#5707 2010 Chevrolet Traverse All Wheel Drive

#5593 2010 Chevrolet Camaro 2SS

#5537 2010 Chevrolet Camaro 2SS

55,000 K

23,000 K

MSRP 35,855

MSRP 45,250

MSRP 52,115

MSRP 50,720

$18,000*

$21,000*

$33,000*

$36,900*

$49,900.*

$45,000*

#5888A 2009 Pontiac Vibe

#5892A 2009 Chevrolet Malibu LT

#5151A 2009 Chevrolet Cobalt LT

#5221A 2009 Pontiac G5

#5807A 2009 Chevrolet Cobalt LT

#5382A 2009 Chevrolet Malibu Hybrid

66,000 K

48,000 K

25,000

20,000 K

25,000 K

25,000 K

$17,000*

$17,000*

$12,900*

$12,900*

$10,900*

$19,500*

#5555B 2007 Toyota Corolla Sport

#5686A 2007 Pontiac Grand Prix

#5680B 2007 Chevrolet Malibu

#5867A 2007 Chevrolet Cobalt

#5853A 2008 Chevrolet Cobalt Sport Coupe

#5753A 2008 Ford Mustang GT CS

69,000 K

75,000 K

92,000 K

$9,500*

$8,900*

$9,500*

$10,500*

$10,900*

$22,500*

69,000 K

#5543B 2003 Chevrolet Malibu

#5670A 2003 Ford Mustang GT

#5731A 2002 Buick Park Ave

#5886A 2000 Pontiac Grand Prix GTP

#5855A 1998 Mitsubishi Eclipse Sask car

#C442 1993 Ford Taurus

140,000 K

91,000 K

188,000K

179,000 K

$6,650*

$9,000*

$5,900*

$4,900*

$4,500*

$1,650*

270,000 K

5866A 2005 Chevrolet Tahoe 5.3

#5791A 2009 Chevrolet Tahoe 5.3

#5763A 2009 Chevrolet Trailblazer LTZ

#5889A 2010 GMC SLT Yukon

#5870A 2002 Dodge Caravan

#5827A 2008 Chevrolet Crew 4x4 Diesel

108,000K

45,000 K

19,000 K

20,000 K

194,000 K

159,000 K

$19,900*

$36,900*

$29,785*

$48,500*

$2,100*

$42,500*

#5687B 2004 Chevrolet Tahoe 5.3

#5823A 2007 Chevrolet Crew Cab 4x4 DVD & Sunroof

#5851A 2007 Chevrolet Colorado Ext 4x4

#CGMAC 2005 GMC SLT Crew 4x4 Diesel

#5566A 2005 GMC SLT Crew 4x4 Diesel

#5839A 2005 GMC SLT Crew 4x4 Diesel

115,000 K

90,000 K

69,000 K

70,000 K

190,000 K

230,000 K

$14,500*

$24,900*

$18,000*

$29,900*

$25,900*

$20,900*

#5798A 2009 GMC SLE Crew 4x4

#5842A 2008 Chevrolet Crew 4x4 Diesel

#5738A 2007 GMC SLE Ext 4x4 Diesel

#5811A 2007 Chevrolet 1Ton Ext 4x4 Diesel

#5812A 2007 Chevrolet 1Ton Ext 4x4 Diesel

#5837A 2006 Chevrolet Crew 4X4 Diesel

25,000 K

135,000 K

97,000 K

92,000 K

72,000 K

158,000 K

$33,900*

$29,900*

$29,000*

$33,500*

$33,500*

$29,500*

#5908A 2009 GMC Reg Cab 4x4 Diesel

#5871A 2008 Chevrolet Ext 4x4

#5764A 2007 Chevrolet Ext 4x4

#5552A 2005 GMC SLE Ext Cab 4X4

#5730A 2003 GMC SLE Ext Cab 4x4

#5799B 2001 GMC SLE Ext Cab 4x4

47,000K

49,000 K

143,000 K

145,000 K

161,000 K

187,000 K

$31,900*

$26,500*

$16,500

$14,900

$11,900*

$6,500*

*HAIL SALE PRICE INCLUDES ALL CREDITS WHILE EMPLOYEE PRICE EVENT IN EFFECT CALL DONNA FOR YOUR FINANCE REQUIREMENTS

1 888-773-4646

VERMILION AB

www.collegeparkgm.com

1 780-853-4646

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

C-Section October 2010

Murray L.Cobbe, executive chairman of Trican, delivered the keynote speech at the Lloydminster Heavy Oil Show opening ceremonies banquet on Sept.

14. His theme was survival skills for service companies.

Photos by Marvin B. Perry ©2010

Trican executive chairman offers survival skills for service sector

By Geoff Lee Lloydminster – Murray L. Cobbe, executive chairman of Trican Well Service Ltd., delivered a keynote speech about the challenges faced by service companies when he addressed at the Lloydminster Heavy Oil Show banquet on Sept. 14.

His topic could have been titled, “Survival of the Fittest.”

Cobbe used his own company that went public in December 1996 as an example of how a service company can continue to grow and prosper during booms and busts through innovation and opportunity.

Founded in Lloydminster, Trican began with two high pressure pumping units and a bulk truck.

Since going public, the company has grown to 4,000 employees, over $1 billion in annual sales in Canada, and operations in the United States, Russia, Algeria and Kazakhstan.

“We are a large pressure pumping company with 720,000 hp fracturing capacity,” said Cobbe. “We have 67 cement and 26 acid units, 31 coiled tubing units and 52 nitrogen units.

“We have $133 million capital budget this year for Canada. This money will be spent in Canada to build equipment. It’s mostly directed to completion services such as fracturing and coiled tubing.”

Trican is one of about 75 publicly owned service companies in Western Canada that employ more than 92,000 people, mostly in smaller communities.

The key factor for any service company to survive in a competitive and cyclical environment, according to Cobbe, is the need to innovate.

Cobbe says many Lloydminster companies have done that with the knowledge that local production has not always commanded a fair price.

“Without innovation for survival there probably would not be a viable service sector in this area,” he said, with lots of nods of approval from exhibitors in the audience.

“As you walk around the show, you see a lot of products were developed in this area and kept this area going. The service sector is doing well in this area and these displays prove it here.

“Necessity is the mother of invention. Unless you provide something your client needs, or help them produce more, or help them produce cheaper, you probably won’t survive.”

As an example, Cobbe cites the introduction of horizontal drilling and multiple fracturing for opening new doors for Trican.

In 2008, Trican fracked five different formations horizontally and more than 30 formations so far this year. ɸ Page C2

C2

PIPELINE NEWS October 2010

Trican Well Service Ltd., founded in Lloydminster in 1979, donated their Àrst cement pumper to the Lloydminster Heavy Oil Science Centre to kickoff a collection of outdoor exhibits.

Photo by Geoff Lee

Using depletion as an ally ɺ Page C1 “This technique is being used more and more to test our other formations,” said Cobbe. “Everyone knows that worn oilfields are looking to be part of the future for what we are going to be able to produce for oil such as the Viking and the Bakken.

“We are going to continue to look at how these fields are going to react to this type of completion.”

About 25 per cent of Trican’s Canadian revenue in 2010 is derived from oil directed revenue and new completion techniques, compared to just five per cent in the first half of 2009.

It’s ironic, but Cobbe said, “depletion is a service industry’s great ally” and there are opportunities to be gain from declining gas production and an uptick in shale gas exploration and development.

He said since April 2006, companies in Western Canada have drilled 25,00030,000 gas wells with production dropping from during that period from 17.3 billion cubic feet per day to 14.2 bcf/d in July 2010 and still dropping.

“The ability to export to markets other than the U.S. will be a huge factor in future development to get a better price for our gas,” said Cobbe.

Among the challenges facing the service industry, Cobbe puts the need to hire and retain employees near the top of the list.

“The cyclical nature of the business is continually harder to convince the new

generation of potential employees that there is a long term career for them in the industry,” said Cobbe.

Staffing, he said, is compounded by the fact clients and rivals are competing for the same people which reduces the available labour pool.

“Every time the oilsands get busy, it will be harder and harder to retain people,” he noted. “It won’t matter what the commodity price is or how good our access to capital is – without well trained employees we won’t survive.

“The other big challenge I see for us an industry is the fact our industry has got bad public perception.”

Cobbe says the industry was surprised by public opinion during the royalty review in Alberta that the industry was perceived to be overly compensated by government royalties.

“We were surprised when it appeared the American public would rather purchase oil from Chavez or produce electricity from coal instead of importing Canadian oil and gas,” he added.

“If we don’t do a much better job of informing governments and the public of real facts and truths, this will not change.

“Each and every one of us needs to explain the realities or our story and work with our associations like PSAC, CAPP, SEPAC and the local OTS to get our story out there. Our associations need our help and our industry needs our help,” Cobbe said.

Thanks to everyone who stopped by our booth at the Oil Show!

The lucky winner of the chain saw was Kelly O’Donnell of Wrangler Well Servicing!

Call us for Complete Listing of Equipment & Pricing in Hard Copy or Electronic

6401 63rd Avenue, Lloydminister (Northwest of Kenworth) Phone: (780) 875-6604 • Fax: (780) 875-6634

• Power Swivels • Power Tongs • Drill Collars • Rod & Tubing Handling Equip.

• Drill Bits • B.O.P.’s • Annulars • Flow Back Tanks • Accumulators • Cat Walks & Pipe Racks • Elevators • Flangers • Scapers Downhole • Tanks - Rental • Tongs - Casing & Tubing

PIPELINE NEWS October 2010

C3

Liepert says oil shows allow industry to blow its own horn

By Geoff Lee Lloydminster – Alberta Energy Minister Ron Liepert came to the banquet to open the Lloydminster Heavy Oil Show on Sept. 14 with his plate full of energy shows to attend that week.

In fact Liepert opened the Oil Sands Trade Show & Conference in Fort McMurray earlier in the day and told his Lloydminster audience that he would be in Montreal next to help spread positive messages about Alberta’s energy industry.

“It is a real pleasure for me to travel this province and see the industry back working again. Nowhere it is that more evident than here tonight at this show,” said Liepert in his opening remarks.

“What we are doing is not only good for Alberta, but it’s good for Canada. I wish I had the opportunity to spend a little more time here over the next couple of days, but we have something called the World Energy Congress going on in Montreal, and we are telling the world about Alberta and what we are doing here.”

The 21st World Energy Congress is organized by the World Energy Council with a mission to promote the sustainable supply and use of energy for the greatest benefit of all people.

Liepert told the Pipeline News that international energy events, including the Lloydminster Heavy Oil Show, are opportunities for Albertans to communicate the facts about their oil and gas industry.

“We haven’t done a very good job of blowing our own horn, but this is one way to do it,” said Liepert after the banquet.

“This show is an opportunity to exhibit what your capabilities are – not only an ability to sell goods and services – but also it says to the public how leading edge we are with much of our technology and products.”

Asked if he thought heavy oil doesn’t get its fair share of publicity compared to other parts of the industry, Liepert paused a moment before saying there are pros and cons to that.

“There is good publicity and there’s bad publicity,” he said. “Sometimes flying under the radar and everyone’s doing well is not a bad thing.

“We’ve seen all of the negative controversy because of the oilsands, and I don’t think Lloydminster wants to be there. We, as a province, understand and appreciate the contribution this part of the province makes to our revenue stream.

“There isn’t a caucus meeting that your MLA Lloyd Snelgrove doesn’t make sure we understand that. It is a vital part of Alberta.”

Liepert said Alberta would have a major role to play in an energy panel discussion in Montreal that week and during a follow-up meeting of provincial energy ministers on Sept. 17.

Regardless of the venue, Leipert says it’s important for Albertans to “accelerate our ability to communicate the facts” about the oil and gas industry.

“We need to ensure that Albertans who want to be our ambassadors have the facts,” he said.

“We are doing that through a campaign right

now. We need to ensure that other Canadians, many of whom benefit because of a vibrant oil and gas industry, need to understand that.

“I think finally, we need to ensure that globally,

especially in the U.S., what a vibrant oil and gas industry right here in North America means to the North American economy,” Liepert said in conclusion.

Alberta Energy Minister Ron Liepert was one of several dignitaries to address a packed house at the heavy oil show banquet at the Lloydminster Stockade Convention Centre Sept. 14. Liepert headed to Montreal the following day to take part in the World Energy Congress and meeting of provincial energy ministers.

Photo by Marvin B. Perry ©2010

C4

PIPELINE NEWS October 2010

Advantage Products hopes new TorqDrive sales go into overdrive

By Geoff Lee Lloydminster – Anyone who dropped by the Advantage Products Inc. booth at the Lloydminster Heavy Oil Show Sept. 15-16 is the wiser for it.

The Calgary-based company put a lot of thinking into its special TorqDrive 450/1000 progressive cavity (PC) pump top drive motor that was launched at the show in a bright shade of corporate yellow.

The TorqDrive is one of Advantage’s most innovative products yet for PC pump operators.

It is the first variable speed permanent magnetic motor designed for top drives with flat torque curves at all speeds.

The TorqDrive follows Advantage Products Inc.’s continued commercial success of their patented TorqStopper and PCPStabilizer among other tools developed for the PC pump market since the company was founded in 1997.

“The TorqDrive is a quantum leap in electric motor technology with 30 to 450 rpm with full torque after 30 rpm with 97.4 per cent efficiency at the polished rod, at all speeds,” said Advantage president Jim Weber at his show booth.

The motor only draws power as it needs it instead of peaking at the start then dropping off as is the case with induction motors.

“Operators most of the time want to vary the speed on their pumps and with other technology they don’t have the same turndown rate as we do,” said Weber.

“They also have to have gear reduction on their drive heads. We don’t have any gear reduction so there are no belts, gears or sheaves on our units. It’s much safer and much more efficient.”

The TorqDrive eliminates a common problem of fluid leakage and maintenance costs associated with hydraulic drives that use a motor to drive a hydraulic pump that powers a hydraulic motor through a gearbox on the top of the wellhead.

The TorqDrive is also an improvement over conventional drive technology that uses a standard motor hanging on the side of the wellhead with a belt drive

connected to a gearbox.

This conventional system is prone to backspin if the well trips and to belt slippage and breakage at low ambient temperatures.

Weber said he got the idea for the TorqDrive from learning there was an issue with braking, having drive heads coming apart, and backspin if the well trips.

“We talked to all the operators out there and asked them what they would like for their drive heads and their common reply was no belts, no gears, no sheaves and direct drive,” said Weber.

“They also told us they want to be able to have full torque and adjust their pump speeds and not need a crew to shut down the well to change the gear ratios or take the unit off and bring another out.

“We have a lot more versatility than the current units that are out there.”

The TorqDrive also features a fail-safe braking system allowing the motor to backspin at over 10 times its rated speed without coming apart.

Advantage received CSA approval for the TorqDrive just three days before the oil show began and Weber says they had already sold eight units halfway through the final day of the exhibition.

“The reaction has been very favourable,” he said. “We think is going to revolutionize the motor business, particularly drive heads. We think everyone is going to go this way.”

The TorqDrive has been successfully field tested and proven to reduce power consumption from 7.4 to 32.6 Kw when a conventional PC pump drive was replaced by a TorqDrive.

Weber says most buyers of the TorqDrive can expect a payback on power savings alone of no more than two years.

“There is no windlass to start the motor,” he said. “It’s 97.4 efficient at all speeds. It’s also much quieter. You can stand beside it when it’s running and have a normal conversation.”

Weber is proud of the fact that all Advantage products are developed inhouse by a small team of nine employees under his leadership. ɸ Page C5

When you’re working miles from home • 3 meals/day included • In-room internet • Recreational amenities

Reservations: 1.888.646.2826 www.atcolodge.com

PIPELINE NEWS October 2010

C5

Everyone wins with satis¿ed customers ɺ Page C4 “We try to have a very close relationship with our customers because it’s our customers that tell us what to do. If we can fill their needs, everyone wins,” he said.

Advantage used that approach to achieve ongoing commercial success with its TorqStopper that prevents tubing and stator back off due to vibration and torque from the PC pump.

Advantage has sold more than 25,000 of them to oil and gas companies around the world.

The PCPStabilizer is another hit product for Advantage that minimizes tubing wear caused by eccentric pump motion by preventing the pump from moving.

Weber started his oilfield career in Halbrite, Sask., in 1968 as a roughneck and is well known for inventing the Halbrite No-Turn tool.

The Halbrite No-Tool tool is a patented camtype slip specifically designed to react to the torque loads created by a PC pump.

The more torque the pump generates, the harder the slips bite, ensuring the pump remains stationary. When torque is removed from the Halbrite NoTurn tool, the slips release.

“Now that’s become a generic term,” said Weber.

“When someone orders a tool for a PC pump they call it a No-Turn tool.

“That was one of the patents I sold in 1994, and I retired in 1996, but I got bored and started this company.

“When we came on the market with our TorqStopper in 1999, we had 18 competitors. I am not sure where we are at with competitors now, but at one point not so long ago, we had six competitors and we still have 85 to 90 per cent of the business in

Advantage Products Inc. used the occasion of the Lloydminster Heavy Oil Show to launch its all new variable speed TorqDrive top drive motor. Company president Jim Weber believes the new motor will revolutionize the industry with its ease of operation, safety features and efÀciencies.

Photo by Brian Zinchuk

Canada.

“There are approx 65,000 to 70,000 PC pumps in service worldwide. That’s why I chose this market.

It’s one I have been very close to since 1986.

“When I started this company, I didn’t envision

getting into anything as high tech as an electric motor, but there was an opportunity, and one of my business partners is very familiar with electric magnetic drives, non-contact drives and seals, so we thought we should be able to do this. And we have.”

C6

PIPELINE NEWS October 2010

Grieving mom seeks justice for victims of drunk drivers

By Geoff Lee Red Deer – Sandra Green is a grieving mother against drunk driving who wants to make sure her daughter, Krista Howe, and her husband, Brad Howe, didn’t die in vain when they were killed by an impaired driver last February in Red Deer.

Krista, who was 35 and Brad, 34, left behind five children ranging in age from four to 14 who are now in the care of Krista’s younger sister, Karla, and Sandra who has 12 grandchildren.

Krista and Brad worked as professional engineers at BAR Engineering in Lloydminster for five years and are the inspiration for Green’s campaign for stiffer penalties for drunk driving.

Green began circulating an e-mail petition on Aug. 28 including a copy to Bar Engineering who are following instructions to circulate it to as many of their oilpatch contacts as possible.

Pipeline News was on that list and triggered a phone interview with Green in Red Deer.

“I hope that we can get some stiffer penalties,” said Green. “The laws are in place. The implementation of those laws is faulty. There are so many loopholes.

“What I want is to get a huge number of signatures to show support for the fact that the laws need to change.”

Her three-point petition calls for a mandatory jail term of 30 days with no early release for a first offender, and equal justice for all offenders regardless of their occupation, political connections and social status. It also argues for zero tolerance for a second offence with the automatic loss of a driver’s licence for life.

“People will kill people with a lethal weapon which would be a big vehicle or whatever when they are impaired, and they may get something like one to three years for that,” she said.

“Historically, they will serve one-third of that sentence and they will be out in a very short time.

“

I have signatures from Halifax to Victoria. I have also written letters to Stephen Harper and I have sent copies of that letter to every provincial justice minister in Canada.

- Sandra Green

”

That’s the long and short of how the system works right now.

“I would like a million signatures. This is going right across Canada. I have sent this to a lot of people. I send everybody on my address book a link, and I ask them to send it everyone on their address book and forward the message so you have a network of people across Canada.”

“I have signatures from Halifax to Victoria. I have also written letters to Stephen Harper and I have sent copies of that letter to every provincial justice minister in Canada.”

The petition is available for signing on a website (itsnotanaccidentitsmurder.info) with a home page heading, “It’s Not An Accident, It’s Murder,” with links for signatures, personal stories and comments.

One Saskatoon reader wrote, “The loss of our dear Brad and Krista was tragic and preventable. It is

time to increase drunk driving penalties and provide a serious consequence for those who choose to break the law.”

“Brad and Krista were wonderful people. This never should have happened. I miss them terribly,” said a petitioner from Red Deer.

A person from Osler, Sask., posted this comment: “In loving memory of Brad and Krista and for everyone else who has suffered a loss due to drinking and driving.”

The Howes were both members of the Association of Professional Engineers, Geologists and Geophysicists of Alberta that posted an obituary on their website.

Krista grew up in Meadow Lake, while Brad was raised on a farm near Foam Lake, a fact that Green says gave him great pride.

“He was a real grassroots kind of guy,” she said.

“He was proud of his heritage, and would often say he was from Saskatchewan and from a farm. He was really proud of that.”

Brad graduated from the University of Saskatchewan in mechanical engineering, and started his career at BAR Engineering.

Krista also ended up at BAR after finishing her first year of studies at the University of Victoria and graduating from U of S with a degree in chemical engineering.

The obituary notes the couple met at a company bowling party and “later had a fairy-tale wedding on the shores of Greig Lake, Sask.”

The story goes on to say, “The husband and wife had a zest for life, and raising a family was their priority and focus.”

In the Red Deer area, Krista worked at MEGlobal Canada Inc’s Prentiss Plant while Brad worked for Nova Chemicals in Joff re.

The couple died at the scene on Feb. 7 when their small car was hit by a pickup truck driven by a 22-year-old male who faces several charges including impaired driving causing death.

“The person who killed them was released on bail after a couple of days,” said Green. “So far nothing has happened. There will be a sentencing date.”

On her website she states, “My mandate now is to try and get the laws and penalties governing drunk drivers changed in order to prevent these senseless murders from continuing.

“Until the penalties represent a deterrent to drunk drivers, our statistics will remain staggering, families will be shattered, and drunk drivers will continue to kill innocent people.”

Green says once she receives the signatures, she will likely bring them to the attention of politicians and lawmakers.

“My mandate is to see if we can get enough people going in the right direction to implement some stiffer penalties,” she said.

“If there is nothing in place to suggest to wouldbe drunk drivers or people who are drinking then thinking about driving – if there is nothing in place that suggests to them that it’s a risky business, then they will continue to drink and drive, and people will continue to die at their hands.

“I am trying to prevent other people from being where I am. The only way I can think of doing that is that actions are related to consequences.

“If there is no consequence, the action is going to continue, in this case impaired driving, and people will continue to die. It’s 100 per cent preventable.

There is no way anyone has to drink and drive.”

A Brad and Krista Howe Memorial Trust Fund is still accepting donations at the Foam Lake Credit Union. For more information on how to donate, call the credit union at 306-272-3385.

PIPELINE NEWS October 2010

C7

Direct Data launches new high foam sensor at oil show Lloydminster – Direct Data Technologies Inc., an oil and gas technology monitoring company in Lloydminster, plans to keep a step ahead of the competition with the release of its new high level foam sensor for heavy oil applications.

The sensor introduced at the 2010 Lloydminster Heavy Oil Show is a stand-alone unit that can shut down a well in high foam situations and activate a chemical pump to inject chemicals into a tank.

It can also tie into Direct Data’s Optitrol control panel installed in the well shack to send an alarm or call out to the operator, or it can be tied into preexisting SCADA systems.

The information can be pulled into Direct Data’s Optiview monitoring software allowing a user to interface the system from anywhere in the work via a secure Internet login.

In August, Dean Schlekewy, Direct Data president and technical sales representative, offered a sneak preview of the foam sensor and other products he planned to showcase at the oil show Sept. 15-16.

“The foam sensor can save you a ton of money in spills and chemicals,” he said. “A spill can be a $5,000 cleanup to $30,000.”

Typically, foam forms when the tank gets too cold and gas breaks out of the oil. This causes the tank to foam up and sometimes causing high level spills.

“The sensor is basically a three-foot probe that can go into the tank through the thief hatch if you don’t a have a full SCADA,” explained Schlekewy.

“A foam float lifts and shuts the well down or it can it kick in a chemical pump.” ɸ Page C8

Dean Schlekewy, president and technical sales representative at Direct Data Technologies Inc., in Lloydminster launched a new high level foam sensor at the Lloydminster Heavy Oil Show Sept 1516. The sensors are tied into his company’s Optiview monitoring software. Schlekewy demonstrates how the system works on this Optitrol control panel set up at his shop.

C8

PIPELINE NEWS October 2010

Excitement generated at oil show ɺ Page C7 Asked what he thought the reaction would be at the oil show, Schlekewy said, “I think the reaction is going to be really good.

“We’ve got some interest already from a few companies including companies that do foaming of wells. Some companies are thinking of putting them in their mud tank to see what their levels are.”

The oil show was also the perfect venue to generate further excitement about an MTS Systems Corporation’s liquid level sensor.

The MTS level sensor is a probe with interface floats that is easily installed through the top thief hatch of a tank.

It’s a five-in-one sensor that can measure product level, interface level, tank temperature and foam and sand levels in a tank when teamed with Direct Data’s Optiview software monitoring system.

Schlekewy says it’s the only well monitoring system out there that can accurately measure and report oil, water and sand levels onsite or remotely.

With the Optiview remote monitoring system, operators can see how much fluid a well has pumped, and the actual oil and water levels in the tank, thereby saving thousands of dollars in wasteful fluid hauling.

Schlekewy says 20 to 30 of the MTS high level sensors have been recently installed in the field with Optiview to help companies to optimize their well production and schedule truck hauling.

MTS Systems is also running a customer case study with Direct Data to support the measurable customer benefits of the hardware/Optiview software monitoring package.

Optiview’s patent pending alarming system focuses on optimizing oil and gas well production by

reducing operating costs, increasing on-time, as well as pump and equipment run time.

“We are constantly improving our alarming systems for our well monitoring program and we’ve really evolved the alarming to a point where you don’t need someone watching the wells from a computer 24 hours a day,” said Shlekewy.

“We’ve got it to the point where it is automated to almost 100 per cent where the well will ‘text message’ you on alarms.

“

The predictive capabilities in the optimizing such as trucking can save thousands of dollars.

- Dean Schlekewy

”

“With high levels, for example, you get a text message, and the trucker goes and takes fluid out.

Once the levels have dropped back down, the system ‘auto acknowledges’ the alarm.”

By monitoring the real time production of a well, a producer is also able to adjust the pump speed using the Optitrol pump off controller on the panel.

“It will tell you your tank levels, hydraulic pressure, casing gas, wellhead speed or any variable sensors that you have hooked up to,” said Schlekewy.

“You can look at how your well is running, was running overnight, or for the past week, and optimize it by looking at your historical data.”

The MTS function on the panel will give you a visual of your tank levels, how much oil is in there or how much water is in there, and the temperature at different levels in the tank.

With the assistance of the Direct Data controller, the operator can be provided with a 24 hour water and oil cut report.

The operator can speed up or slow down the well on site or remotely on the Internet, and they can also adjust the gas pressure on site or remotely.

“The remote monitoring with Optiview can save you wear and tear on equipment and rig jobs, coil jobs and flushbys and stuff,” said Schlekewy.

“The predictive capabilities in the optimizing such as trucking can save thousands of dollars.”

The way Direct Data usually works is the client buys the equipment and pays a monthly fee for the communications data storage. That allows them to access the software with a user name and password.

Clients can also opt to access the software on their own network.

The Optiview software also generates automatic well reports hourly, daily, weekly or monthly for the customer.

Data is stored securely offsite by DataSoft Corporation.

Direct Data moved into a larger shop on the Saskatchewan side of the city recently to keep up with growth.

“We needed more room to store equipment and test equipment. Our panels are outsourced. As we continue to grow, we will add more employees and do more stuff in-house,” said Schlekewy.

“We are just going to keep rolling and evolving with the industry.”

PIPELINE NEWS October 2010

C9

Husky releases progress report

Husky’s 52 page progress report provides a good snapshot of Husky’s approach to sustainability while providing production data and details on everything from enhanced oil recovery technology in the Lloydminster area to the use of steam assisted gravity drainage (SAGD) in oilsands operations in Alberta.

Photos submitted

Calgary – Husky Energy released its latest Sustainable Development Report on Aug. 27 just as the maintenance turnaround at Lloydminster Husky Upgrader was getting underway, adding to its news value in Saskatchewan and Alberta.

In short, the downloadable report is really a progress report covering Husky’s approach to sustainability with descriptions of operations and performance, environmental performance including emissions, and social responsibility based on 2009 companywide operations.

“This is the company’s first sustainability report since I became CEO,” said Asim Ghosh, Husky’s president and CEO, in the report news release.

“It is an important document because it has two functions. First, this report is an important part of Husky’s culture of continuous improvement.

“It documents our progress and also highlights areas in need of greater attention. This is

important information for Husky and our key stakeholders.

“Second, it sets the tone and path for the company’s future sustainability activities and reporting.”

The 52-page Sustainable Development Report has been prepared to provide stakeholders with credible data and meaningful information on Husky’s activities with the focus on sustainability.

For example, the report states that Husky’s midstream assets are structured to reduce their exposure to cash flow volatility.

Core midstream assets noted in the report include the Lloydminster Upgrader with a production capacity of 82,000 barrels per day; a 2,100-kilometre pipeline system capable of carrying more than 720,000 bpd of blended heavy crude oil diluent and synthetic crude; 50 per cent interest in two natural gas-fired electricity cogeneration stations; and 33.2 billion cubic feet of natural gas storage capacity.

Downstream core assets include the Lloydminster Asphalt Refinery that produces 28,500 bpd and the ethanol plant that produces 130 million litres per year.

The Sustainable Development Report notes Husky optimizes production and offsets declines in its existing heavy oil reservoirs with a strategy of utilizing primary cold production methods, applying enhanced oil recovery (EOR) methods, and identifying new technologies for future operations. The area produced 78,600 bpd in 2009.

The new progress report is Husky’s third sustainability report. The document features separate chapters on Husky’s approach to sustainability, a CEO letter, a corporate description, operational integrity, employees, and community investment and public consultation. Included at the end is a reader response form.

“Each of the reports we have done to date has advanced our reporting position,” said Ron Butler, vice-president, cor-

porate administration.

“The current report shows marked progress because of the integration of the Husky Environmental Performance Reporting System.

“As the EPRS becomes fully integrated across the company, the collection and analysis of environmental data becomes more sophisticated and accurate, leading to meaningful benchmarking and goal setting in future reports.”

The report is also loaded with data on reportable spills and volumes and emissions

levels at various Husky operations and details about emissions reduction programs.

The report notes Husky is among the largest holders of oilsands leases in Alberta, with leases totalling ap-

proximately 2,774 square kilometres primarily located in the resourcerich Athabasca and Cold Lake regions.

Husky uses steamassisted gravity drainage (SAGD) technology to extract bitumen, thus minimizing surface disturbance.

To make steam, Husky’s oilsands operations draw non-potable water from underground sources, and 90 per cent of the water is recycled.

Surface water is not used in the production process.

Wally Lorenz Sales Associate

of The Battlefords Independently Owned and Operated

FOR YOUR REAL ESTATE NEEDS IN WEST CENTRAL AND NORTHWEST SASKATCHEWAN:

1391 - 100th St. North Battleford, SK S9A 0V9 Day or Night

Cell: (306) 843-7898 Bus: (306) 446-8800 znerol.w@sasktel.net

• Residential • Farms/Acreage • Commercial • Recreational

35TFN

C10

PIPELINE NEWS October 2010

Online auctions generate Lloydminster â&#x20AC;&#x201C; Energy Auctions Inc. brought one of its online auctions of consigned new and used oil and gas equipment to the Lloydminster Heavy Oil Show.

The auction at energyauctions.ca ran from Sept. 13 to 17 with the largest sales consignments of equipment presented by Husky Energy, Encana and Polar Star Resources.

More importantly, the auction was an opportunity for Calgary-based Energy Auctions to demonstrate the service and register more buyers and sellers with online auction accounts.

Energy Auctions is the brainchild of Marlon Ellerby who launched the business almost a year ago

and has seen sales steadily grow. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s been incredible. Itâ&#x20AC;&#x2122;s opportunity after opportunity,â&#x20AC;? he said. â&#x20AC;&#x153;It never ends. Itâ&#x20AC;&#x2122;s just getting bigger and bigger, and I am having a hard time keeping up.â&#x20AC;?

Auction items are listed by category and range from compressors, generators and buildings and structures, to vessels and wellheads. â&#x20AC;&#x153;I think one of the reasons why itâ&#x20AC;&#x2122;s successful is that itâ&#x20AC;&#x2122;s new in Canada,â&#x20AC;? said Ellerby. â&#x20AC;&#x153;The concept of online auctioning isnâ&#x20AC;&#x2122;t new, but there is no company that I am aware of in Canada that does what I do â&#x20AC;&#x201C; exclusively deals in the oil and gas industry through an online bidding system.

Husky Energy and Encana Corp. worked with Marlon Ellerby from Energy Auctions Inc. to set up a live online auction of consigned oil and gas equipment during the Lloydminster Heavy Oil Show Sept. 15-16.

OUTSIDE THE CIRCLE EUROMax PC Pumps: The revolutionary stator profile of the EUROMax PC Pump provides consistent elastomer thickness throughout the stator.

Benefits: r 3FEVDFE QVNQ PQFSBUJOH UPSRVF BOE improved mechanical efficiency r 3FEVDFE IFBU CVJME VQ BOE JNQSPWFE IFBU dissipation r $POTJTUFOU UIFSNBM BOE DIFNJDBM FMBTUPNFS swell r *NQSPWFE QVNQ QSFTTVSF DBQBDJUZ r 3FEVDFE PWFSBMM TUBUPS MFOHUI BOE XFJHIU - Easier to transport and handle - Shorter polish rod required

Proven Around the Globe Manufactured with the same dedication to precision and quality that have become the hallmark of EUROPUMPÂŽ products, the new EUROMax line of PC Pumps have proven their value for customers around the world.

www.europump.ca r (780) 872.7084

â&#x20AC;&#x153;We do not deal in heavy equipment such as Cats or loaders. We serve the oil and gas industry exclusively through a timed auction.â&#x20AC;?

The online auction is styled after eBay, allowing buyers and sellers to browse products from their respective workplaces and submit a timed bid based on the text, photos or drawings describing each item. â&#x20AC;&#x153;One of the strong recommendations that I make to the consignor is if you are to put this piece of equipment on my auction, you have to have it available to the potential buyers. They have to be able to walk around and look at it,â&#x20AC;? said Ellerby.

The consignorâ&#x20AC;&#x2122;s contact information is available.

Asked why oil and gas companies want to put new or used items up for sale thorugh on an online auction, Ellerby says itâ&#x20AC;&#x2122;s because â&#x20AC;&#x153;we are coming out of a tougher yearâ&#x20AC;? in reference to the conditions the industry faced in 2009. â&#x20AC;&#x153;Right now in the industry there is some excess,â&#x20AC;? he said. â&#x20AC;&#x153;Obviously, everybody knows that. I am talking more on the gas side than on the oil side. Thereâ&#x20AC;&#x2122;s lots of excess equipment out there. â&#x20AC;&#x153;Because of the amount of stuďŹ&#x20AC; thatâ&#x20AC;&#x2122;s out there, people need to create cash ďŹ&#x201A;ow. This is one of the quick ways to do that. â&#x20AC;&#x153;There is so much idle equipment out there. A company needs to turn that into cash to put back into production to try and make up for the yearâ&#x20AC;&#x2122;s loss.â&#x20AC;?

Energy Auctions also oďŹ&#x20AC;ers online classiďŹ ed sales of production, completions, electrical and instrumentation, and drilling and exploration equipment, but the business model is primarily based on auctions with an earned commission on sales. ɸ Page C11

PIPELINE NEWS October 2010

cash Àow for consignors ɺ Page C10 “Auctions bring out all kinds of people. The mindset of an auction is you will get a better price,” said Ellerby.

“The No. 1 reason is that as a seller in an auction, you are hoping for 50 bidders, and as a buyer in an auction, you are hoping for a good deal.

“The auction system has been around longer than any kind of market system. People get excited about auctions.”

Ellerby says he chose to offer equipment liquidation classifieds along with his online auctions to meet the needs of more customers in the oil and gas sector.

“We decided to cater to both. Not everything can go to auction,” he said.

“There is money out there on the books that those guys (companies) need for a particular piece of equipment, and they are not going to put it on the auction just in case.”

Ellerby used to own a successful online cattle auction business called Direct Livestock Marketing that he sold before launching Energy Auctions in September 2009.

“What makes me different from competitors is

I strictly, 100 per cent, only deal in oil and gas. I am going to stay exclusively in oil and gas,” he said.

“It has not been easy to get this thing to go,” he said. “It takes a lot to go from an unknown to where guys like Encana will trust you. We are making huge headway, and it’s getting better and better.

“The market is international. In fact, I had a registration this morning (Sept. 1) from Thailand. With the Internet there are no borders.

“International customers go online and bid on the equipment just like you would here. I get all my emails in the middle of the night from overseas.”

The online auction features an automatic bid option that can raise the bid by specific increments and to a certain limit each time you are outbid. The site also posts the time left in the auction and current bid amount.

Ellerby says the hot auction sellers on the oil side of the business are commodity-driven products such as pumpjacks and engines.

“Those things turn quick,” he said. “Service companies can buy them and rebuild them and rent them out; whatever they want to do.

“On the gas side, it’s separators, metering skids, dehydrators and stuff like that is almost a commodity as well. Every well needs them.”

To get a product on the Energy Auction website, customers can contact Ellerby at his Calgary-area office he will explain how the system works.

“If there is interest beyond that, we picture their items and detail their items,” said Ellerby.

“Hopefully, we will get drawings or whatever we need. We try to give as much exposure as we can to that one item.”

USED HEAVY TRUCK DIVISION All makes and models

• • • •

OILFIELD HIGHWAY FARM CONSTRUCTION

Serving North America for Used Trucks Saskatoon Regina Estevan Winnipeg

Order up Suzanne Williams of NOV MonoÁo, serves up some hot nachos on a cold day.

C11

(800) 268-4222

(800) 463-9333

(866) 332-2121

www.customtruck.ca

(800) 850-1411

C12

PIPELINE NEWS October 2010

Acid stimulation cures ailing SAGD wells Steven Brand, senior production engineer for Husky Energy’s Bolney thermal project, led off the 2010 Heavy Oil Technical Symposium Sept. 15-16 with a talk about using acid to stimulate SAGD wells and remove scaling in a sandstone reservoir.

By Geoff Lee Lloydminster – Steve Brand, a senior production engineer for Husky Energy, could have been introduced as Dr. Well at the 2010 Heavy Oil Technical Symposium in Lloydminster Sept.

15-16.

That’s because Brand spoke about what led him to prescribe an acetic acid solvent to remove scaling and stimulate oil production at three of Husky’s 35 to 40 steam assisted grav-

ity drainage (SAGD) wells at Bolney, north of Lloydminster.

Skipping first to the good news, Brand’s medicine worked. All of the patient wells were virtually symptom free after the treatment, showing a huge oil production increase from 107 to 208 per cent per day.

Production jumped to 376 bpd from from 176 bpd at one well after treatment and another went to 220 bpd from 63.

One well was treated twice due to recurring scaling and drop off in production, but rebounded to after a second dose of acid stimulation.

Is acid stimulation a miracle cure? No. Like any good doctor, Brand cautions each situation is going to be completely different.

“It means doing the homework to figure out the best way to treat the problem,” he said.

“I would be concerned if it is really the scale that’s causing the problem, or something else like clays or a higher asphaltene content.

“The key is analyzing the problem and determining your best candidates, and taking a

systematic approach to ensure you are doing the right thing for the right well.

“The reasons for these wells specifically was that their production had dropped off significantly. In other wells we see the problem is more moderate.

“Over time though, those wells will decline as well, and then you have to determine if there is an economic justification to treating them,” Brand said.

He said the key to determining acid stimulation candidates is to flag any horizontal SAGD producer wells with higher than normal production declines of five to 10 per cent for further study.

SAGD oil production uses spaced well pairs 400-800 metres long with the steam injector well drilled five to six metres above and parallel to the producer well.

High pressure steam creates a steam chamber in the reservoir allowing oil to flow vertically into the producer well but a pressure drop in the producer well, is an indicator of potential scaling and a candidate for acid stimulation. ɸ Page C13

PIPELINE NEWS October 2010

C13

'It's like opening a pop can' - Brand

All eyes during the opening of the Heavy Oil Technical Symposium in Lloydminster were focused on the introduction of the Àrst speaker, Steve Brand from Husky. Look for more stories on the symposium in the next edition of Pipeline News.

ɺ Page C12 The plugging mechanism, said Brand, occurs when reservoir fluid and steam flow into the producer well through the liner slot resulting in a pressure drop.

“It’s like opening a pop can,” he said. “The CO2 gas goes out of the solution and the pH of the fluid increases, causing the fluid to become super saturated with calcite.

“That calcite drops

out of the solution in the liner slot and starts to plug off the slot itself, keeping the reservoir fluid from being produced through that slot in the well.

“Once that plugging starts, production drops off and we start to wonder what is going on and how can we mitigate this to get the well back to a better production level.

“In the oil industry, scale is a common problem. Typically, remediation of scale involves

some type of an acid to get it out of the way so we can continue oil production.”

Brand says he looked at various types and strengths of acid before prescribing a five per cent acetic acid and solvent blend to treat asphaltenes and scale and open the liner back up to production.

The deciding factor to go with acetic acid was less volume was required to dissolve one kilogram of calcium car-

bonate than other acids, and it was cost effective when applied with coil tubing.

“Coiled tubing is relatively inexpensive;

it’s economic to use, and it’s a lot quicker to trip in the hole than using a regular tubing string,” said Brand. “It’s quite easy to go and apply and perform the job in less than a day.”

One alternative application method was a segmented acid job, but this was rejected for being risky and costly.

“Coiled tubing is cost effective and ensures an even application over the entire horizontal well,” said Brand, who noted an application required the use of 18 cubic metres of acid fluid.

The effects of the treatment boosted oil production from four months to 18 months

with a project payout period ranging from 12 to 21 days.

“For our reservoir it was the way to go,” said Brand. “I would encourage anyone who is thinking of acid stimulation to do their homework to do what’s best for their reservoir, and ensure they are not causing more damage than good.

“This was something that is specific to our property and for us it’s a recipe that’s worked.”

Husky produces and processes 11,000 to 12,000 bpd at the Bolney Celtic thermal project which also has three steam plants and 70 cyclic steam stimulation wells.

C14

PIPELINE NEWS October 2010

Scope’s Spincat could have some well producers purring Lloydminster – Scope Production Developments is a Lloydminster-based company that solves production related problems, some of which surface at Lloydminster Heavy Oil Shows.

The bi-annual show has become a good marketing tool for the company to showcase its innovative tools and hear confessionals from new and existing customers about their problem wells.

“We get all the bad wells. We have designed our service and our tools to help produce the bad wells,” said Bart Toporowski prior to the 2010 Lloydmin-

ster Heavy Oil Show held Sept. 15-16.

“We are excited as always to talk with people and to understand their production problems and their well bore problems, and hopefully, come to a mutual agreement as to how to repair that problem to ensure they get some run life and longevity out of their wells.

“If there are issues they have in the field in their wells – depending on the issues – we may have the product or the people to help solve that problem with them.

Dale Hockley leans on a foam head for rigless foam cleanouts

“We look at rectifying sand problems, scale problems and inflow problems and leakage around the wellhead – stopping stuffing box leaks and environmental issues.”

This year, Scope Production chose to give prominent booth space to its new Spincat family of tools designed for the removal of plugs, scale and failed linings.

The Spincat is deployed with downhole coil tubing units and features speed controlled, high efficiency rotational jets to provide optimal well cleaning.

Acid, chemicals, water, nitrogen and foam can be pumped through the tool to clean the liners and clean vertical and slant wells.

“The Spincat is for scale removal in horizontal wells, sand removals in horizontal wells, cleaning of the production liners in horizontal, verticals and slants for all applications, whether it’s heavy oil, light oil or gas issues,” said Toporowski.

“It can be used to clean those multi-laterals out selectively or whatever the customer would like to do. We are very excited about that new product coming up.

“If a customer calls in and says ‘we’d like to try it,’ there is a series of questions we need to go through in order to say ‘yes’ this tool will work.’

“We have to understand their problems before we just give them a piece of equipment. Each well has a different problem,” cautioned Toporowski.

The Spincat was developed in Red Deer with Scope Production having the “running rights” for the tools that go hand-in-hand with other rotational drilling tools and products the company brought to its booth. ɸ Page C15 Petroleum Technology Alliance Canada

Seminar/WEBINAR Oil and Gas Fundamentals for Small & Medium-Sized Enterprises (SMEs) Session 6 - Heavy Oil Futures October 21, 2010 Time: 12:30 - 1:15 - check-in and lunch 1:15p.m. - 3:35 p.m. - Presentations LOCATION Lakeland College Commonwealth Lecture Theatre Room 2038 2602 59 Ave, Lloydminster, AB T9V 3H5 Complimentary Session - Pre-Registration Required You may aƩend in person or remotely by webinar.

If aƩending in person please register at hƩp://www.ptac.org/shop If you will parƟcipate by webinar please reserve your webinar seat now at: hƩps://www2.gotomeeƟng.com/register/660060234

PIPELINE NEWS October 2010

C15

Scope has been growing overseas ɺ Page C14 “We have power heads that go with the Spincat where you can run downhole cameras or perforating guns or logging tools. That’s going to be very exciting and very rewarding for us all here in the future,” said Toporowski.

Meanwhile, Scope Production is still growing its sales of it Sure Seal stuffing box introduced during the 2008 Heavy Oil Show.

The patented Sure Seal stuffing box has a two-part box design with a primary and secondary seal assembly.

Scope Production recommends the product be used in conjunction with a Harbison- Fisher (HF) alignment tool and a spray metal polish rod.

“If the pumpjack or the stroking unit is out of line on the wellhead, what that does is allow for about a one inch movement in all directions,” said Toporowski.

“They work great together. The Sure Seal box threads into the HF alignment tool. The alignment tool threads into the wellhead.

“As the jack strokes, it allows the box to move over to the proper position on the wellhead. The producer will get much longer run life out of their products with zero leakage.”

Scope Production also has the running rights to the Auto-Pax stuffing box imported from the United States.

Many of them are in use in CO2 fields in the Weyburn, Saskatchewan area.

The busy Lloydminster company was

launched in 2002 with two employees and has grown to a more than 28 workers based throughout Western Canada with international sales in places like such as Syria, Columbia and the U.S. “As we developed new products, and as we have started to expand away from Lloydminster, who knows where we are going to be five years from now?” said Toporowski.

The key to Scope Production’s growth was the development of their first major tool, the production Flush Joint, also referred to as the scope tool that’s become their flagship product.

“Scope Production is known for the production Flush Joint, the service, the quality of people that we have and the innova-

tive tools that go handin-hand with the scope tool,” said Toporowski.

“The scope tool is designed to circulate sand bridges away from the pump intake, around the pump intake and above the pump intake. It is our flagship tool.”

“The tool was our very first design and can be used in a pump to surface application. This allows the producer to stroke production tubing inside the well bore without any wellhead changes whatsoever,” said Toporowski.

The scope tool was designed to find other uses for flushby units in the oil sector.

Toporowski says in the past, a flushby driver would pull the rotor free, flush the well, and at the end of the job, he would

replace the rotor into the stator and turn the well back on production.

“With the scope tool, instead of doing that, he’s able to lock onto the scope tool with a scope representative on location and perform a flush on the well and clear any sand bridges or debris around below and above the pump intake,” he said.

The company didn’t have room to park its own flushby unit at the heavy oil show, but the unit is designed as a service rig to pull pipe, run pipe, and make rod changes and plunger pump changes among other services.

It’s also used to do 24- to 48-hour production evaluations.

“It’s fully automated and two people can run the truck. It comes com-

plete with a doghouse, a safety trailer, a picker truck and all of the asso-

ciated equipment needed to do the job,” said Toporowski.

The Scope Production Developments booth was a popular one at this year’s heavy oil show in Lloydminster. The company attracted a lot of attention for its new Spincat tools designed to remove plugs, scale and failed linings in all types of wellbores. Bart Toporowski, one of Scope’s owners, was pleased with the turnout.

C16

PIPELINE NEWS October 2010

Lakeland gains status

Corn patch Can the oilpatch run on corn oil? Bring that question with you to the Vermilion campus of Lakeland College. The campus is opening its corn maze to the public on Saturday and Sundays throughout October. This year's corn maze has a lot of geometrically designed paths so be careful, there are a lot of dead ends! All ages are welcome.

Stacy Dunham was one of Lakeland College’s representatives at their booth in the Lloydminster Heavy Oil Show.

Vermilion, Alta. – Lakeland College is now one of a few colleges in Canada to earn accreditation for environmental sciences programming.

Lakeland received accreditation for its bachelor of applied science environmental management program from the Environmental Careers Organization (ECO) Canada and its Canadian Environmental Accreditation Commission (CEAC).

The CEAC acts as ECO Canada’s safeguard on impartiality and provides non-governmental thirdparty auditing for colleges, universities and technical institutes.

Lakeland’s applied degree program in environmental sciences is a two-year post-diploma program offered at the college’s Vermilion campus. It includes an eight-month industry work placement and intensive coursework and training in site assessment, remediation and reclamation techniques, monitoring and environmental protection, project management and technical report generation.

“Having accreditation clearly communicates to government and industry employers that Lakeland students are acquiring the knowledge, skills and abilities from a program that meets national standards and criteria relating to curriculum and learning resources, as well as faculty credentials and experience,” said Lee Arthur, PhD and program head of Lakeland’s accredited bachelor of applied sciences environmental management program.

“When Lakeland graduates enter the workforce, employers can be assured that they have the competencies required to be successful in the environmental sector.”

Lakeland began the process to earn accreditation in 2009 as part of a national pilot project spearheaded by the CEAC. Lakeland was one of three colleges – and one of just six Canadian post-secondary institutions – selected to participate in the project.

Graduates from Lakeland College’s bachelor of applied science environmental management program typically find work in various industry and government departments as well as regulatory agencies serving the oil and gas, forestry and wildlife, mining, agriculture, pulp and paper sectors.

Many are also graduates from Lakeland College’s two-year environmental sciences diploma program with majors in environmental conservation and reclamation, conservation and restoration ecology, wildlife and fisheries conservation, and environmental monitoring and protection.

Lakeland College has campuses at Vermilion and Lloydminster.

PIPELINE NEWS October 2010

C17

Saskatchewan slips a grade on energy ef¿ciency report card Edmonton – Saskatchewan may have to go back to school to improve its falling energy efficiency grade from the Canadian Energy Efficiency Alliance (CEEA).

The province slipped to a B- from its previous B+ mark in CEEA’s 2009 National Energy Efficiency Report Card issued every two years.

Manitoba meanwhile, joins Ontario and Quebec as teacher’s pets with stellar A+ marks while Alberta, Prince Edward Island and Nunavut are the three most improved jurisdictions.

Alberta scored a B+ up from the D+ it received in 2007. P.E.I. moved from a D to a B, and Nunavut from a C to a B. S a s k a t c h e w a n’s slightly lower score can be attributed to the fact that energy efficiency for houses and buildings is not yet referenced in its building codes.

The province earned a C in 2004 and a D in the 2002 energy efficiency report card.

British Columbia also dropped in the 2009 report card from an A+ to an A while the Northwest Territories moved from a B+ to a C. Special A+ Manitoba in Western Canada has been a leader in driving energy efficiency initiatives across Canada since 1989 according to CEEA. They have committed themselves to a 20 per cent increase in energy efficiency by 2020.

In the last two years, Manitoba has added water conservation requirements to its provincial building code and plumbing code, and they’ve begun to establish manda-

tory requirements for the energy performance of products.

Manitoba has also developed Power Smart programs through Manitoba Hydro that have helped to increase energy efficiency awareness with consumers, and they have a strong green building policy.

CEEA says overall, Manitoba has maintained their A+ standing “because they continue to take a progressive approach to including energy efficiency in their policies, programs, and provincial initiatives.”

This is the 10th year CEEA has evaluated Canadian government activities, and the first year that all 14 jurisdictions have received grades ranging from A+ to C-, a significant improvement from the 1999 report.

The federal government scored a B+ in the report card, compared to a B in the last report card, an improvement attributed by CEEA, to their national ecoENERGY program.

“We’re very pleased with the progress we’re seeing in energy efficiency across the country,” said Ken Elsey, president and CEO of CEEA a leading non-government, energy efficiency advocate in Canada.

“This is the first year that we’ve seen three provinces receive a grade of A+, and most jurisdictions have either improved or maintained their previous score.

“It’s great to see Alberta jump from a D+ to a B+. That’s a huge improvement, and something Alberta must be congratulated for.

“We expect the leader in energy production to set the example for

energy efficiency in the future!”

Alberta’s rise to near the top of the class is partly due their new Climate Change Strategy, which is committing to a greenhouse gas emissions reduction target of 50 megatonnes by 2020 and 200 megatonnes by 2050.

With regard to Alberta’s rising energy efficiency statues, CEEA states, “They are now considering energy efficiency in their building codes — a step in the right direction — however, more attention to higher standards and stricter enforcement could have significantly improved their grade beyond the B+ they received.

“The creation of a Municipal Climate Change Action Plan to help their municipalities achieve higher energy efficiency is proving effective.

“They also ranked highly in their leadership initiatives, since they have adopted a green building policy for new construction of government-owned facilities, and included sustainable procurement guidelines for energy and water use.

“As their commitment to energy efficiency appears to be genuine, and as they increase their amount of energy efficiency programs, CEEA expects Alberta to quickly rise to the head of the class in the coming years.”

The federal government scored a B+ in the report card, a mark that Elsey claims was attributed to the effort put forth by the federal government through their ecoENERGY program.

CEEA’s bi-annual report card evaluates federal, provincial, and

territorial governments on their energy efficiency performance across a number of key parameters such as the effectiveness of their own jurisdictional programs, initiatives in transportation, and support for energy efficiency in building codes and product standards.

Other criteria include public outreach, the existence of public/ private partnerships to support energy efficiency initiatives, and the creation of energy efficiency acts.

“Since our first re-

port card released in 1999, CEEA has seen a great improvement in energy efficiency measures across the country,” said Elsey.

“We can only hope that the trend to achieving A+ will continue. As Canada’s energy consumption continues to rise, and with supply dwindling, conservation and efficiency are crucial issues for all Canadians.” concluded Elsey.

“This report shows Canadians how well their elected officials and senior bureaucrats are dealing with this issue.”

C18

PIPELINE NEWS October 2010

Saskatoon city to power This is an example of a blower/Áare station the City of Saskatoon will build as some of the components of a landÀll power generation facility. The City will use methane from its landÀll to generate an initial output of 1.6 MW of electric power. The project is part of a Green Energy Park centred at the City’s landÀll built in 1955.

Photo courtesy of Comcor Environmental Limited

Saskatoon plans to drill about 30 vertical wells into its landÀll to collect and pipe methane gas to an electric generation facility. The project will involve the installation of a landÀll gas wellhead similar to this one used in Eastern Canada.

Photo courtesy of Comcor Environmental Limited

Saskatoon – Saskatoon is a Johnny-come-lately when it comes to generating energy from landfill waste, but the City is playing catch-up with the development of a Green Energy Park that could power up to 3,650 homes.

Plans for the energy park include a 1.6 MW landfill gas power generation facility, a 1 MW turboexpander and a potential 2 MW wind turbine clustered near the City’s landfill – projects with a 2012 operational deadline.

Future projects at the park could also include natural gas fuel cells and additional heat recovery with the potential to power up to 5,550 homes.

“We currently purchase all of our power from SaskPower,” said Kevin Hudson, project manager and alternative energy engineer with the City’s Saskatoon Light & Power utility that is spearheading the development.

“These are our first generation projects. It’s significant for us. We have been looking at these projects for the past five years to build some of our own generation.

“We serve about two

thirds of the city, so we will be producing all of this power onto our grid. It will be available to any of our existing customers as green power,” said Hudson.

There could even also be a small hydroelectric project operating on the South Saskatchewan River by 2016 to provide additional electricity to the grid.

Saskatoon Light & Power set a deadline of Oct. 8 to receive engineering proposals to design the 1.6MW landfill gas power generation facility that will provide power for up to 2,600 homes.

The $10 million project is funded 50 per cent by the governments of Canada and Saskatchewan and will be operational by 2012.

The power generation facility will be designed to double the output to 3.2 MW in the coming years using landfill gas.

In the first phase, the City plans to drill approximately 30 wells into its landfill site to collect methane gas to generate electric power.

“The collection system itself is being designed right

now,” said Hudson. “It will be constructed next summer and be operational by the end of 2011.”

Installing a collection system involves drilling vertical wells into the waste and connecting the wells to piping that collects the landfill gas using an induction vacuum system.

“You actually suck the gas out so you have a blower and flare station,” said Hudson, who noted gas flaring would only be used if the power generation were off-line.

The collected gas will be piped to the power generation plant adjacent to the landfill.

“There are about 500 projects like this throughout North America,” said Hudson who said the use of landfill gas is a first for Saskatoon and only the second project of its kind in Saskatchewan with Regina leading the way.

“In most provinces and states, it is legislated that you need to have a landfill gas collection system. A landfill is one of the highest sources of methane emitted into the atmosphere. ɸ Page C19

PIPELINE NEWS October 2010

homes with land¿ll gas Saskatoon hopes to receive engineering proposals by Oct. 8 to build a landÀll power generation facility at its landÀll site to utilize methane gas.

The facility will be equipped with engine generation sets.

Photo courtesy of Comcor Environmental Limited

ɺ Page C18 “Typically, landfill gas contains approximately 50 per cent methane, 40 per cent carbon dioxide and 10 per cent nitrogen.”

Saskatoon’s landfill gas collection project will reduce greenhouse gases by approximately 90,000 tonnes a year or the equivalent of taking 16,000 vehicles off the road.

“We expected initially to recover about 600 cfm (cubic feet per minute) of gas. The amount of gas recovered depends on the size of the landfill,” said Hudson.

“We have about five million tonnes of waste in place, or about 130,000 tonnes per year.

“Landfills produce gas throughout the entire operation and for several decades after closure. We are hoping to get another 50 years out of the landfill before it closes. The life of the collection system could be up to 80 years.”

The Saskatoon landfill has been in existence since 1955.

The Green Energy Park vision also calls for the development a $3 million turboexpander power generation facility at SaskEnergy’s natural gas regulation station just west of the City’s landfill.

The City has also set a deadline of Oct. 8 to receive engineering proposals for the design of this facility.

The turboexpander will generate approximately 1 MW of power to meet the needs of up to 600 homes in Saskatoon.

The turboexpander will produce power with zero emissions by recovering pressure energy from the regulation station and heat by-product from the landfill gas power generation facility.

“When SaskEnergy supplies gas to cities or towns, they take gas off the TransGas pipeline at high pressure – 700 psi

and they drop that down to a distribution level of about 100 psi,” explained Hudson.

Hudson noted there is both a pressure and temperature reduction through pressure regulators. Natural gas is always preheated using a line heater (glycol boiler/heat exchanger) prior to pressure reduction through pressure regulators to prevent freeze-off.

“Expanding a gas through a turboexpander creates a greater temperature reduction over the same pressure ratio, when compared to pressure regulators, and requires additional preheating,” said Hudson.

The turboexpander will be funded equally between the City of Saskatoon and SaskEnergy.

“This project is another step toward the City of Saskatoon’s long-term vision to provide alternative energy sources,” said Hudson.

The City has erected a meteorological tower at the landfill site this fall to collect wind-specific data prior to giving the go-ahead to build the wind turbine.

The project location moved from a proposed residential site to the landfill following public meetings in April 2010.

Saskatoon Light & Power is also exploring the viability of hydroelectric power generation at the Saskatoon Weir on the South Saskatchewan River and has drawn up conceptual plans.

The hydro project just completed the prefeasibility stage. Hudson says at this stage there could be three output options depending on design constraints – 2.8 MW with no increase in the existing weir height, 5.5 MW with a one metre increase in the weir height, and 8.4 MW with a two metre increase in the weir height.

If approved, the hydro project would include a recreational whitewater park.

C19

C20

PIPELINE NEWS October 2010

Data acquisition for trucks Lloydminster – Less than a year in existence, one of the companies launching new products at the Lloydminster Heavy Oil Show is already working on several more.

Mobile Data Technologies had several new products on display at its booth centring on capturing data on the job.

“We build it for service trucks, pressure trucks, hot oilers, nitrogen pumpers, flushbys, frac pumpers and coil tubing,” said Davis McGregor, president, CEO and owner of Mobile Data Technologies.

The company is based in Spruce Grove, Alta. “We’re right across all four western provinces now, right to Manitoba, and we’re into Alaska now.”

“We’re new. We’re not even a year old,” said McGregor. The company is an outgrowth of MD Engineering of Spruce Grove, which has been around for four years.

The data is for the operator on the unit. It makes it easier to record and report data right on the truck. Sensors are on the truck, or hooked up to the wellsite to collect parameters like pressure, flow and temperature. For a pressure truck, for instance, it can record pressure and flow.

When done, the system creates graphs and a pdf report on the machine.

It can be tied wirelessly using a USB aircard cellular communications system. The default is to record data to a USB memory key, which can be handed over to the customer right at the job site. The reports show job data, graphs, and raw data.

The truck model goes on a swivel floor mount between the seats of the truck.

There is also now a wireless unit that looks like a large, ruggedized iPad. Both employ touch screen interfaces.

“We do a lot of our business through resellers,” McGregor said. One is Lash Enterprises in Lloydminster, another is Ronera Trucking in Lashburn.

“We had a customer approach us and ask, ‘Can you take what you do in a truck and do it in a shop?’ The MobileDRS was borne.”

It takes the mobile system and puts it into a test-bench form factor, with a larger screen. The shop-based model comes standard with two or four sensor ports, a programmable relay port, ethernet port and WiFi. The system was designed to adapt to a variety of testing stations including pressure, force/load, temperature and flow. Each unit is preconfigured to the match the customer’s testing requirements, according to promotional material.

Since then, a portable solution in a heavy-duty, industrial case has been developed, known as the MobilePTS. The battery-operated system comes with

ATV / SLED DECKS Adjustable width decks also available • Easy to load & unload • Reversible ramp for your snowmobile & quad • High quality brushed aluminum requires no maintenance • Rounded headache rack • 4 side LED lamps • Super Clamps Included • Strongest (and longest) ramp system on the market

Re-usable and High Resale Value

Lloydminster Paint & Supplies Ltd. Daryl (780) 875-4454 or (780) 871-4109 5628 - 44 Street, Lloydminster, AB

• Our customers testify that we have the best looking deck on the market - and it is built to last • If a customer decides to purchase a different pickup the deck can accommodate either Short & Long Box trucks

six pressure sensors and one temperature sensor to cover tests up to 10,000 psi.

McGregor said it is primarily used for testing pipelines.

While those three products came in short order, others are in the wings.

“We’ve got products four, five, six, seven and eight waiting,” McGregor explained.

New customers keep coming up with new ideas. They need to walk before they can run, however, he said, adding field testing is important. Coil tubing trucks are likely the next project, he noted.

Blair Thornhill, Davis McGregor and Jesse Duncan showed off their new MobileDRS shop model testing unit.

PIPELINE NEWS October 2010

C21

C22

PIPELINE NEWS October 2010

PIPELINE NEWS October 2010

C23

Nordic sale a win-win deal Lloydminster –When the banks say no and capital markets are tight, an asset sale can be the ticket to future growth and production for junior oil and gas companies.

That’s the case for Nordic Oil and Gas that raised more than $2.9 million from the sale of a 66 2/3 per cent stake in their land holdings and heavy oil wells in Lloydminster, Alberta to Western Plains Petroleum Ltd. The purchase agreement, completed August 25, is an increase from Nordic’s first proposal in April to sell a 50 per cent interest in its properties to Western Plains for $2. 2 million.

“Without the availability of bank financing, we had no alternative but to sell some assets,” said Donald Benson, chairman and CEO of Nordic, in a news release.

The sale proceeds will allow Nordic to complete the five standing wells it drilled in 2009, boost production levels quickly, and participate in a re-entry program with its new operator partner.

In a follow-up interview on Aug. 27, Don Bain, Nordic’s corporate secretary, said the revised ownership transaction was a good arrangement for both parties and allowed Nordic to hike the sale price.

“Given that bank financing was not available to us, and the fact going out to the market to raise funds is very difficult, you have to do what you have to do,” said Bain.

“By the same time, we are pleased to partner with a company such as Western Plains. They are well known in the area, and they are very efficient at what they do.

“We are looking with working with them on existing wells and wells that are coming on, and future projects.”

The partnership will work within the 1,000 acres Nordic purchased a few years ago in the Lloydminster area, and share in the production of nine heavy wells that produce a combined 100 to 110 barrels of heavy oil a day.

“There is a lot of land up there and there are lots

Robert Bierman, left, and Ken Benzer both work for Acklands-Grainger out of Edmonton. They represented the company at the Lloydminster Heavy Oil Show.

of opportunities, both in terms of exploration, and in terms of re-entries. It’s just an exciting time. It should be a good partnership,” said Bain.

“Lloydminster is an area of strong production.

We have identified lots of locations. It is an area of great potential. and we feel there will be continued opportunities.”

Bain says proceeds from the sale will go toward paying creditors, and helping to fund the drilling of a new exploration oil well near Endeavour, Saskatchewan, previously announced in July.

“We are getting close to moving on that,” said Bain. “We will be applying for the well licence any day now. Hopefully, we will be in there in early September.

“At this point in time, it’s just one exploration well, and we will see what happens from there.”

Bain says some of the sale money will also be earmarked to bring the five new heavy oil wells into production in a matter of weeks.

“They have been sitting and waiting for tie-in for the last several months,” he said.

“Production will increase very quickly for all of the companies (partners); so from our standpoint, we should be able to get our production numbers

back to the pre-sale numbers.”

Bain says the decision to sell a bigger share of its heavy oil assets was made easier by the difficulty of raising money in today’s capital markets.

“The markets are still very difficult. I think everyone knows that and understands that. Indeed it’s not easy to raise capital, especially in the oil and gas sector, and especially if you are a junior oil and gas company,” he said.

“We have some success in the past raising money but it is difficult. There’s no two ways about it, but it’s not impossible. We will be looking at some things as we move forward in that regard.”

Bain also notes the sale made sense given the strong interest shown by Western Plains in acquiring the assets.

“They are based in Lloydminster,” said Bain. “As the operators, it fits with their objectives quite nicely – with their recent announcement of the sale of some of their assets in partnership with Alberta Star.

“It seemed like a good fit for us also, all around.

It will open up doors for all of the companies (both partners) in Lloydminster, in that they will be in the position to bring on the five additional wells that were drilled by Nordic at the end of 2009.”

C24

PIPELINE NEWS October 2010

PIPELINE NEWS October 2010

Petro Uno plans fall drilling near Kindersley Kindersley – Weather permitting is a popular caveat this year for oil and gas companies with drilling programs.

That was the case with a prior announcement from Petro Uno Resources Ltd. that they would begin drilling nine (4.25 gross) horizontal oil wells in the Kindersley area on Aug. 21, weather permitting.

According to the Weather Network, it didn’t rain Aug. 21, but Petro Uno says the drilling program was actually postponed three weeks “due to unseasonably wet conditions.”

The new wells target the Viking formation for light oil production and will bring the total wells drilled by Uno in 2010 to 18 (8.25 net).

The summer drilling program will wrap up in early this month (October) followed by completion operations “contingent on weather conditions.”

A new fall drilling program of an additional seven to nine wells (3.5-4.5 net) is also expected to kickoff early this month – weather permitting, of course.

This next set of wells is expected to be completed in November and be on production by early December.

The Calgary-based oil and gas explorer plans to have a yearend inventory of 25-27 wells on production, and a 2010 exit production of 500 barrels a day from its oil and gas properties in Saskatchewan and Alberta.

The drilling programs in the Viking are partly funded by proceeds from the $4 million summer sale of 745 non-core net acres of land in Alberta with a production of 30 barrels of oil per day.

Petro Uno’s core holdings lie in the heart of the main Dodsland Viking light oil pool that is being horizontally developed near

Kindersley. This pool covers approximately 275 square miles.

According to Petro Uno’s website, the Viking light oil resource play remains attractive to the company “due to its low risk, low water production and high netbacks.”

Numerous farm-in deals and corporate acquisitions have grown the company’s land position to more than 12,500 gross acres with its partner Renegade Petroleum Ltd. In its July 23 update, Petro Uno reported it reached an agreement to acquire two producing vertical wellbores and two quarter sections (320 net acres) immediately adjacent to existing acreage holdings near Garrington in the Cardium light oil play of Alberta.

Petro Uno drilled its first wells in the Kindersley area with seven stage fractures in December 2009 and brought on production in January.

The next two wells were drilled in March 2010 and one was completed with 15 stage fractures, equipped and brought on production.

In the first half of 2010, Petro Uno drilled, completed and brought on production an additional seven gross (three net) horizontal Viking oil wells with initial production rates from 30-100 boepd.

C25

TRAINING OPPORTUNITIES WELLSITE SUPERVISION & REGULATORY AWARENESS (SARA) [ENFORM] - $845.00 CUSTOMIZED TRAINING The majority of our training & 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 & goals.

This three-day Safety Management Program has been designed to ensure wellsite supervisors and prime contractors are aware of their responsibilities and roles with respect to health and safety at the wellsite.

Key legislated rules and industry practices for Alberta, British Columbia and Saskatchewan will be discussed. The course covers responsibilities for health and safety legislation, health and safety program elements, superviser’s role, hazard identification, risk assessment and control, inspections, incident investigation, emergency response and leadership skills.

Course Times: 8:30am - 5:00pm

Oct 25 - 27, 2010 - Kindersley

Refresher Course for above - Also Kindersley - Oct 29/2010

www.energytrainingcentre.ca • 1.888.ETC.7972 Pipeline News Ad - October 2010.indd 1

9/21/2010 7:37:08 AM

KING TO E

AN EXTEND CAB IN A WO ED OF COMPACRLD TS. RO

OM

IER

SAFETY TOE

Nfib Yffkj n`k_ ++ dfi\ jgXZ\ ]fi pfli kf\j kf jki\kZ_# Zlic Xe[ \m\e n`^^c\% Gclj# k_\pËi\ gifk\Zk\[ Yp fli efe$ d\kXcc`Z jX]\kp kf\% B`e^ Kf\% 9l`ck kf =`k% 9l`ck kf CXjk%

IN'0E'/

4006 - 50th Avenue Lloydminster, AB Ph: (780) 875-4800 Toll Free: 1-888-875-9288

#3 - 602 Circle Drive E. Saskatoon, SK Ph: (306) 653-4800 Toll Free: 1-877-653-4800

Let our team of professionals take care of all your service needs.

Suite 2, 6209-44 Street, Lloydminster, AB T9V 1V8 s DISPATCH 780-808-3999 OFFICE 780-808-2994 FAX 780-808-6393

C26

PIPELINE NEWS October 2010

Alberta Star plans productive fall drilling program near Lloydminster Lloydminster – Alberta Star Development Corp. should be en route to drilling and completing five new infill development wells in the Lloydminster, Sask., area by now.

The company announced on Aug. 23 that it was on track with completing a survey of wellsites in preparation for an early September start to the five well drilling program with its 50 per cent working interest partner Western Plains Petroleum Ltd. Alberta Star anticipates having all five wells completed and on production by mid-October, subject to receipt of licensing approval.

The drilling program follows Alberta Star’s recent $1.7 million purchase of a 50 per cent interest in all of Western Plains’ oil and natural gas interests located in the Lloydminster area.

Western Plains is a Lloydminster, Alberta-based junior heavy oil producer with interests located in the Lloydminster area in both Saskatchewan and Alberta.

Alberta Star reports the transaction, completed Aug. 9, was its initial diversification into the oil and natural gas resource sector.

The company followed that up Aug. 26 with the $1.4 million cash purchase of a 33 per cent stake in 13 Crown leases held by Western Plains in the Lloydminster area.

The two purchases in August give Alberta Star a production of 300 barrels of oil equivalent a day.

The acquisition of revenue producing resource assets also complements the company’s existing advanced stage mining interests.

The infill oil drilling program of five wells will be conducted adjacent to the company’s recently drilled and completed well near Landrose, Sask., which is currently maintaining or exceeding the initial production rate of 70 bbls a day of heavy oil.

Alberta Star will be targeting the same zone with the five new wells, with the expectation that initial production rates will be comparable to the adjacent Landrose well.

Alberta Star and Western Plains each hold a 50 per cent working interest in the section of land (excluding the drilling spacing unit earned by Arctic Hunter Uranium Inc.).

The partners also reported plans for a possible six well in-fill drilling program to commence in the fourth quarter of 2010 in the Lloydminster area of Saskatchewan.

Alberta Star is a Canadian resource exploration and development company that identifies, acquires and finances oil and natural gas assets in Western Canada and advanced stage mineral exploration projects in North America.

PIPELINE NEWS October 2010

Resources Guide

C27

www.pennwest.com 311 Kensington Avenue, Estevan â&#x20AC;˘ 634-1400

a l t u s g e o m a t i c s . c o m

Lloyd Lavigne â&#x20AC;˘ Kirk Clarkson Owners/Managers

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

T&C OILFIELD Maintenance Ltd. Box 566 â&#x20AC;˘ Oxbow, Sask. â&#x20AC;˘ S0C 2B0

Office: 483-2883 Tony: 483-7605

5315 - 37th Street Provost, AB T0B 3S0

6506 - 50th Avenue Lloydminster, AB

Phone: (780) 875-6880

Phone: (780) 753-6449

Fax: (780) 875-7076

24 Hour Service Specializing in Industrial & Oilfield Motors OilĂ&#x20AC;eld StafĂ&#x20AC;ng Services

WorkSource Solutions Solving your Work Force needs!

3D

Maintenance

For more information: Ph: (306) 979-8210 sylvia@w-s-s.ca

Cell numbers: 483-8024, 483-7024, 483-8148 Home: 486-2143 â&#x20AC;˘ Fax: 486-4855

Diversity - Acceptance - Respect

Box 12 Frobisher, SK. S0C 0Y0

Serving SE Sask for 27 years!

merv_and_deb@xplornet.ca

MIDWEST

INDUSTRIAL SERVICES

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

Box 208

Estevan, SK

S4A 2A3

461-8471 â&#x20AC;˘ 461-8472 â&#x20AC;˘ 461-8473 Call: Clinton Gibbons

Saskatchewan Owned & Operated

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.

Bulk Agency 912 6th Street, Estevan

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

634-7275

Aspen Custom Trailers 6017-84th Street S.E. Calgary, AB T2C 4S1

352-7668

STOCKING ENGINE PARTS

FOR SERVICE YOU CAN DEPEND ON CALL 204-727-0555

Toll Free: 1-866-457-3776

OIL / INDUSTRIAL / AGRICULTURAL / AUTOMOTIVE

WEEKDAYS 7:30 A.M. - 5:30 P.M. SATURDAYS 9 A.M. - 1 P.M.

â&#x20AC;˘ TANK & VESSEL, CLEANING AND LINING â&#x20AC;˘ 4WD DRYSTEAM AND PRESSURE WASHING TRUCK

General Oilfield Hauling

lancew@aspentrailer.com www.aspentrailer.com

TOLL FREE 1-877-778-7460

â&#x20AC;˘ HYDROVAC & VACUUM TRUCKS â&#x20AC;˘ HOT OIL & PRESSURE SERVICE â&#x20AC;˘ SANDBLASTING & PAINTING WE DO IT ALL! IN SHOP OR MOBILE

Lance Wotherspoon Regional Sales Manager

[T] 403 236 2244 [F] 403 236 8829 [C] 403 813 6319 [Toll Free] 877 236 2244

&DQDGD V OHDGLQJ GLVWULEXWRU RI LQGXVWULDO Ă HHW DQG VDIHW\ SURGXFWV

3URXG WR SURYLGH VHOHFWLRQ TXDOLW\ DQG H[FHOOHQFH WR RXU FXVWRPHUV

1404 SCARTH ST., REGINA, SASK. website. www.continentalengine.ca FAX 525-8222

continentaleng@sasktel.net

WK 6WUHHW (VWHYDQ Â&#x2021;

Guide

PIPELINE NEWS October 2010

Resource

C28

Calgary 403-264-8206

Carlyle 306-453-2533

www.millenniumdirectional.com Horizontal • Directional • Well Monitoring

Bus: 306-453-2728 Cell: 306-577-8085 Cell: 306-482-7755 Fax: 306-453-2738 mel.fitzpatrick@midfieldsupply.com www.midfieldsupply.com

Midfield Supply ULC P.O. Box 1468 402, #9 Service Road South Carlyle, Saskatchewan S0C 0R0

Box 609 Carlyle, SK S0C 0R0

Bus: (306) 634-8084 Cell: (306) 577-8833 Fax: (306) 453-6478

HELP WANTED

Truck Drivers • 3A or 1A License • Loader experience an asset • Resume & drivers abstract required • Competitive wages • Benefit package available Drop off resume at:

314 - 6th Street, Estevan or fax resume to: 634-4643

Career Opportunities SRI HOMES’ Estevan Facility, SHELTER HOME SYSTEMS has immediate openings for

PRODUCTION PERSONNEL This is a union shop with an excellent benefit package. If you have an excellent work history and are willing and capable of working at a variety of jobs in a fast paced construction environment, email your resume to:

jobs.shelter@gmail.com or bring it to the factory at # 200 Hwy. 18 West.

Employment Opportunity

Wanted Winch Truck Driver

is an industry leader in Safety Services and is currently seeking

Safety Personnel to keep up with increasing customer demands.

If you are interested in becoming part of the Target Team and enjoying our growth with us, let us know!

Please forward resume with copies of tickets to: resumes@targetsafety.ca or fax to 780-870-5359

Must have valid class 1A & H2S & First Aid CertiÀcates 10 years experience Send resumes to Connor Kirby Trucking Ltd.

Box 298 Torquay, SK S0C 2L0

CONNOR KIRBY Trucking Ltd.

Fax: (780) 872-5239

PIPELINE NEWS October 2010

Warehouse Worker Required All resumĂŠs can be emailed to vvandresar@mmmud.ca or faxed to (306) 453-4404

11-tfn

Mayco Well Servicing Inc. has built its reputation from our most valued asset, our people. We are seeking ambitious, reliable team members looking for an opportunity to work in a dynamic and positive work environment.

We currently have Floorhand positions available. No experience is necessary. Safety tickets would be an asset, but not required. Applicants must have a valid driverâ&#x20AC;&#x2122;s license.

What We Offer â&#x20AC;˘ A trusted name with trusted personnel â&#x20AC;˘ Advancements, competitive wages, beneĂ&#x20AC;ts, RRSP plans and bonuses â&#x20AC;˘ Training and certiĂ&#x20AC;cation opportunities â&#x20AC;˘ Advanced rig Ă eet â&#x20AC;˘ Coveralls supplied and cleaned â&#x20AC;˘ Housing available Please submit resume by email or fax to: Mayco Well Servicing Inc. Oxbow, SK Email: t.mayco@sasktel.net Fax: 306-483-2388

Career Opportunities

EMPLOYMENT OPPORTUNITY

101 Supreme St. (Shand access road)

We are currently accepting applications for the following positions in our Well Servicing Division in the Estevan Area:

Experienced Floorhands Tickets required: First Aid H2S and must possess Valid Driverâ&#x20AC;&#x2122;s Licence Sun Country Well Servicing is a local Service Rig company out of Estevan, we offer top wages, and an exceptional employee benefit package.

Unlimited opportunity for advancement.

Accommodations Available.

Please send resume to: lbrown@suncountrywellservicing.ca lanettebrown@sasktel.net Or Fax resume to: 306-634-1200.

Or call Lanette Brown: 306-461-8320

SAVANNA WELL SERVICING www.savannaenergy.com

Join our team at Savanna today!

Champion Technologies is the worldâ&#x20AC;&#x2122;s largest privately owned chemical company, providing innovative and environmentally responsible solutions to oil and gas producers. We are looking for a professional, enthusiastic, career-minded individual to assume the role of District Office Coordinator.

You will provide support to the Estevan district team in a variety of administrative functions. This role will include inventory control, accounts receivable, accounts payable, cost tracking, report and presentation preparation, purchasing and reception duties. Previous SAP experience is a definite asset.

You exercise sound judgment and maintain a high level of accuracy while you juggle multiple tasks in a fast-paced environment. Your administrative qualifications are enhanced with a positive, outgoing, flexible and self-confident attitude.

At Champion, you are compensated competitively and work in an organizational culture that fosters safe work practices, career advancement, teamwork, relationships and values-based decision-making.

If you are interested, please apply at www.champ-tech.com

10 Lamoro St. Highway 39 West Estevan, Saskatchewan

Savanna Energy Services Corp. is a premiere contract drilling and well servicing company operating in the oil and gas sector Internationally and throughout Western Canada. Our goal is to demonstrate dedication, pride, and professionalism in all we do.

We are looking for great team members in the CARLYLE, SK area Opportunities are available for all Well Servicing Positions: RIG MANAGERS, DRILLERS, DERRICKHANDS & FLOORHANDS Class 1 or 3 driverâ&#x20AC;&#x2122;s licence preferred Will consider class 5 with air brakes

Please fax or e-mail resumes to: 403 398 0189 or savannacareers@savannaenergy.com or apply online at www.savannaenergy.com

C29

C30

PIPELINE NEWS October 2010

Career Opportunities Techmation Electric & Controls Ltd. is one of Western Canadaâ&#x20AC;&#x2122;s leading Electrical & Instrumentation companies focusing on the energy sector. We pride ourselves on leadership, technical expertise, integrity and customer service. We are currently accepting resumes for construction and maintenance work for the Lloydminster and Provost areas for the following positions only:

- Journeyman Electrician and Instrument Mechanics - Electrical & Instrument Mechanic Apprentices The following would be an asset: 9 9 9 9 9 9

Alberta or Interprovincial Journeyman Certificate Valid Safety Tickets, H2S Alive and First Aid WHMIS /TDG PLC and SCADA Experience Valid and Clean Drivers License Oil & Gas Experience 9 Excellent communication skills (both written and verbal) 9 Capability of working in a customer oriented service environment In addition to Competitive Wages, Benefit Package, RSP & Pension Plan, we offer a dynamic high paced team environment.

Qualified applicants are invited to fax or email their resume: Attention: Bob Denny â&#x20AC;&#x201C; District Manager Fax: 780.874.0557 or e-mail: bdenny@techmationelectric.com

Committed to Quality, Safety & Service! www.techmationelectric.com

EMPLOYMENT OPPORTUNITY

for Tank Truck Operators E-mail resumes to: dlesage@equaltransport.ca or fax them to

306-453-4404

5-1

Bulk Plant Personnel and Shop Hand Nitrogen Operators

PIPELINE NEWS October 2010

C31

C32

PIPELINE NEWS October 2010