Pipeline News March 2011

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

March 2011

Canada Post Publication No. 40069240

FREE

Volume 3 Issue 10

Registry Implementation Delayed Page A3 Curling, Curling, Curling Pages B8-19 Disposal Facility Expands Page C1 Brent Dunnigan of Alameda is now involved with his fourth oil company, Epping Energy Inc. In Dunnigan’s hand is a box of drill cuttings. Lasso Rig 2, behind him, spudded a well for Epping on Feb. 10 at Wauchope. See story on page A6.

Photo by Brian Zinchuk

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PIPELINE NEWS March 2011

PSAC ups its well drilling forecast Saskatchewan to lead in growth

News

Notes

Top operators Crescent Point Energy Corp. has been topping out Saskatchewan’s drilling rig utilization in early February, with 15 rigs signed up as of Feb. 15, according to according to Nickle’s Rig Locator (www.riglocator.ca). Eleven of those were in the ViewďŹ eld area.

Husky Oil Operations Ltd. had eight rigs on that date. PetroBakken Energy Ltd, and its sister company Petrobank Energy had a total of eight. Penn West Petroleunm had four rigs, as did Legacy Oil + Gas Inc and NAL Resources Ltd. While not likely drilling for oil or gas, BHP Billiton Diamonds Inc had four rigs on the go, one near Melville, and three near Druid.

NuVista working on Birdbear NuVista Energy Ltd., has set its 2011 capital budget at $160-180 million and announced ďŹ nancing totalling $99.8 million. The budget compares with a 2010 capital program of $225 million.

NuVista plans to drill follow-up wells to recent successes and allocate a portion of its capital program to the evaluation of new Birdbear heavy oil prospects in west-central Saskatchewan, Cardium oil opportunities in both its Wapiti and Pembina operating areas, and Spirit River/Notikewin liquids-rich gas opportunities in its Ferrier operating area.

NuVista plans to drill heavy oil wells in westcentral Saskatchewan and eastern Alberta as part of its core 2011 capital program. The company said these heavy oil wells have the most attractive economics of its inventory.

Based on the strong results from four Zoller Lake Birdbear wells drilled in the fourth quarter, NuVista plans to drill up to 16 development wells. NuVista also plans to evaluate up to ďŹ ve new prospective Birdbear heavy oil plays that have been identiďŹ ed in west-central Saskatchewan.

In the fourth quarter of 2010, NuVista drilled 13 (8.1 net) wells resulting in 10 (six net) oil wells and three (two net) gas wells. At Zoller Lake in west-central Saskatchewan, NuVista drilled four (three) heavy oil wells and results to date have exceeded expectations.

Briefs courtesy Nickle’s Daily Oil Bulletin

„ By Geo Lee Pipeline News Calgary – Well drilling forecasts are a moving target.

The Petroleum Services Association of Canada has revised its 2011 Canadian Drilling Activity Forecast upward by 500 wells thank to stronger crude prices.

PSAC is now forecasting a total of 12,750 wells to be drilled across Canada, an increase of four per cent from its original estimates released in early November, 2010.

Another quarterly revision is due during PSAC’s upcoming April assembly in Calgary. “We expect to announce further increases at our next forecast session in late April,� said PSAC president Mark Salkeld. “We’re in the midst of making some changes and improvements to the way we present drilling information at our mid-year luncheon held annually in April. “We’ll be drawing information from our Well Cost Study – it’s going to be quite comprehensive – and I think people won’t want to miss that event.�

The ďŹ nal drilling tally for 2010 was 12,158 wells.

The PSAC revised drilling forecast for Canada puts Saskatchewan in the lead with an 11 per cent increase over 2010 levels to 3,075 wells.

The new forecast estimates 8,390 wells will be drilled in Alberta, a growth of three per cent from 2010.

British Columbia is expected to have 700 wells drilled, up seven per cent from last year, while Manitoba will move up by one per cent to 550 wells. “Due to strengthening oil prices and innovations in technology, we expect 2011 to continue to see modest increases in drilling levels from 2010, recognizing shortages in skilled labour that restrict the ability of drilling and petroleum service providers to realize full output capacity,� said Salkeld. “The industry is still faced with weak natural gas prices primarily related to oversupply in the market. The burgeoning supply of natural gas – despite reduced levels of drilling – is a direct result of shale gas production. “We continue to see an escalation in not only the amount of horizontal wells being drilled, but also in the length of these wells. “The industry should see north of 5,000 horizontal wells drilled in 2011, indicating the type of capital being spent in the basin.�

PSAC’s new forecast is based on average natural gas prices of C$3.85/mcf (AECO) and crude oil prices of US$85/barrel (WTI) for the year.

PSAC is the national trade association representing the service, supply and manufacturing sectors within the upstream petroleum industry.

Saskatchewan is anticipated to drill 11 per cent more wells this year. This is Partner Drilling Rig 3, just outside of Stoughton on Jan. 24.

Photo by Brian Zinchuk

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News

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Notes

Focus on Shaunavon and Dodsland

PRIME project director Jeff Ritter provided an overview of the effort to overhaul the Saskatchewan Ministry of Energy and Resources business processes when he addressed an Estevan audience on July 7, 2010.

File photo

Petroleum Registry implementation delayed Six more months to ensure all kinks are worked out

By Brian Zinchuk Pipeline News Regina – The Ministry of Energy and Resources is putting off the adoption of the Petroleum Registry of Alberta for six months to ensure all the kinks are worked out before it become the key reporting system for province’s energy industry.

The registry is part of the Ministry of Energy and Resources (ER) multi-year, multi-project initiative known as the Process Renewal and Infrastructure Enhancement (PRIME) project to modernize the ministry’s nearly 20-year old business processes and oil and gas support systems.

Joining the Petroleum Registry of Alberta is a key foundational part of the PRIME project.

In a letter to Saskatchewan oil and gas operators and interested parties dated Jan. 28, 2011, Deputy Minister Kent Campbell stated: “Following an in-depth review and assessment by the Registry Inclusion Project’s leadership team, which includes project managers from ER, industry, the Petroleum Registry of Alberta, and software partner Fujitsu, a decision was made to provide a six-month extension to the RSIP implementation schedule. The Registry implementation planned for October 2011 will now take place in April 2012 for the March 2012 production month.”

Jeff Ritter, director of the PRIME project, told

Pipeline News, “It’s going to give us time to fully test the application.”

There is Saskatchewan-specific functionality added, and they want to ensure it all works before going online. “The biggest thing was, we had some new functionality identified,” Ritter explained.

“With something like this, with so many stakeholders, the decision was made earlier than later,” he said of the choice to delay implementation. The ministry did not want to “put industry in a bad spot.”

“We don’t want to compromise quality and functionality. If we weren’t 110 per cent sure, we needed to make the decision now,” he said, noting there are 500 industry stakeholders.

Asked what led to the decision to delay, Ritter said there were a couple “aha” moments in testing.

Some things weren’t in the design initially. They wanted to ensure data cleanup and validation is correct. They also didn’t want to rush testing and find errors in a production environment.

The delay will impact three areas of the PRIME project. The central operational repository will have a positive impact, he said. The conversion and legacy integration project will continue working at the same pace, but have more time for contingency. The revenue management and billing project will also have a little more breathing room.

Crude oil and liquids-weighted junior Wild Stream Exploration Inc. has announced that it will spend $95 million in 2011.

On Jan. 28, 2011, Wild Stream acquired a private company with high netback, crude oil assets focused in the Dodsland area for total consideration of 3.5 million common shares. The properties have an average working interest of 90 per cent and are 100 per cent operated. The acquired properties also contain significant undeveloped inventory in both the Dodsland and Shaunavon areas of southwest Saskatchewan.

Through the acquisition, Wild Stream gained 300 boepd (100 per cent crude) of current production, internally estimated reserves of 1.3 million boe and a total of 47 net drilling locations, 42 of which are in the Dodsland Viking.

Broken down, Wild Stream's $95 million 2011 capital budget will be allocated as follows: $55 million will be directed to the Shaunavon area where 30 to 35 net wells are planned; $25 million will go to the Dodsland area where 20-25 net wells are planned; $10 million has been allocated for land expenditures and $5 million to the drilling of three net wells in other areas.

During the fourth quarter, Wild Stream drilled 21 gross (19.8 net) oil wells with a 90 per cent success rate including 12.4 net wells in Shaunavon, six net wells in Dodsland and 1.4 net wells in Garrington.

To date in 2011, the company has drilled three gross (2.9 net) successful wells in the Shaunavon area and it expects to drill a total of 12 wells in this area by spring break-up.

Construction of a second oil processing and water injection facility to expand the Upper Shaunavon waterflood will be completed by the middle of February. Wild Stream said that performance from its existing waterflood project is "exceeding expectations" with six Upper Shaunavon horizontal wells responding to current water injection.

The company also anticipates drilling three gross and net wells in the Dodsland area and one other well prior to break-up.

Briefs courtesy Nickle’s Daily Oil Bulletin

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EDITORIAL

PIPELINE NEWS March 2011

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

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Editorial

Don’t mess with royalties, on potash or oil There’s nothing like high commodity prices to create a tempting target for government. The dollar signs appear in the eyes as a “cha-ching!” can be heard resonating between the ears.

Saskatchewan’s NDP set its sights on potash royalties in mid-January in a move that should make the entire resource sector very nervous.

NDP leader Dwain Lingenfelter announced he plans to make potash royalties a major campaign issue for the fall election. It’s an easy target, because Potash Corp., so recently and heroically saved from the clutches of BHP Billiton, announced a surge in revenue, and Cargill is looking to sell off its stake in Mosaic Co. With oil hovering in the $90 range and occasionally flirting with $100, the Saskatchewan oil industry should be watching these developments with great interest.

Potash has been seeing tremendous interest in recent years, with expansions underway whose value nearly equals the entire provincial budget for a year.

Several junior potash companies have been looking at developing new plays. BHP is getting serious about its Jansen Lake project, and in a couple of years, we’re likely to see the very pricey development of a new mine.

This isn’t just people walking around with core samples, saying they’ve got a good thing, but people who are actually sinking a shaft.

They would not be doing this if we had a punitive “fair share” royalty regime. Even with higher potash prices now, they would be running for the hills.

While targeting potash, Lingenfelter is apparently not looking at higher royalties in oil and gas. At least, not yet.

When you start talking “fair share” royalties, implying the government is not currently getting its fair share, bad things happen.

Soon to be departed Alberta Premier Ed Stelmach was elected to a strong majority on a “fair share” platform, at a time when oil prices were reaching the stratosphere. Those policies were implemented when oil was plunging to rock bottom rates.

Since then, this paper has filled its pages with Alberta refugees flocking to Saskatchewan, in many cases coming back home after the promised land was no longer so promising. We’ve interviewed countless individuals and companies that have come to Saskatch-

ewan for the better opportunities, including several in this current edition.

One person referred to Stelmach as “Special Ed,” a clear indication of the regard in which both he, and the industry, have held for Stelmach.

Of note during the Stelmach “fair share” years was that Saskatchewan was still relatively busy, while Alberta was dead. This was in large part due to the attractive royalty regime in place, put in by the Calvert NDP government. Wall didn’t do anything special with royalties, other than to specifically say they were not touching them.

How important are royalties? NuLoch Resources, recently acquired by Houston-based Magnum Hunter, has been drilling up both sides of the Saskatchewan/ North Dakota border not far from Estevan. NuLoch CEO Glenn Dawson noted, “We're the first company to extend the Sanish/Three Forks play into Canada.

We're the only company actually targeting that zone and working it. So the key here, driver, in Saskatchewan, is that the royalty structure is incredibly low, incentivizes operators.

“Where we are based on depth, we only pay a 2.5 per cent mineral tax to the Crown in Saskatchewan on the first 100,000 barrels produced. It's hard to find another regime anywhere in the world with that kind of incentive to drill. And that is really the key driver which creates the rate of return for the project in Canada versus, on average, 30 percent royalty on wells in North Dakota. So you can imagine how that affects your bottom line.”

We may not be experts on potash royalties, but we do know this: the current structure is attractive enough that billions upon billions are being spent on expansions and potential greenfield mines in this province. They wouldn’t be doing that if the royalties were not favourable. It’s one of the strongest pillars of the Saskatchewan economy, even if it had a real bad year recently. They were still going forward with expansions.

Take a close look at what mucking around with a winning formula did to oil drilling in Alberta. Think of the brakes it could put on the hot Saskatchewan potash plays.

What we have now is working. Leave well enough alone.

PIPELINE NEWS March 2011

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Opinion

Ontario’s green plan fades to black From the top of the pile Brian Zinchuk

If someone were to write a how-to manual on what not to do in pursuing a green energy strategy, Ontario Premier Dalton McGuinty would be your first pick for an author.

When running for office, he promised to get rid of all of those nasty coal-fired power plants in Ontario. That was the plan, until they realized they had nothing to replace them with, so Ontario still has coal, at least until 2014, according to the government of Ontario website.

Then they came up with the remarkably stilted plan to replace all this coal-fired power with alternative energy, like wind turbines and solar panels. To encourage it, Ontario would pay much more than the market rates for power from these forms of generation – many times more, when it came to solar.

Soon wind turbine projects were in the works all over the province. The Great Lakes were going to see wind turbines up and down their shores. People started installing small scale solar plants.

Life would be good, and green.

For the green energy movement, Feb. 10 was

Black Friday.

As a reporter, you learn that press releases put out on Friday afternoons are usually bad news – the type of news governments have to put out there, but really don’t want anyone to pay attention to. That’s because many newsies are in wind-down mode for the week, or have already left for the day because they’ve put in plenty of overtime during the week.

So when McGuinty’s government made this tremendous flipflop on green energy, National Post columnist Lorne Gunter pointed out they did it on a day when the media was focused on the Egyptian revolution. Who’s going to notice sacking a green energy policy?

Indeed, on the Ontario government’s website on Feb. 15, the top story in the newsroom portion is a Feb. 9 piece on full-day Kindergarten registration in September. The Feb. 11 announcement that “Ontario rules out offshore wind project” is buried at the bottom, just above “Helping students find summer jobs.”

The press release states, “Ontario is not proceeding with proposed offshore wind projects while further scientific research is conducted.

“No renewable energy approvals for offshore have been issued and no offshore projects will proceed at this time. Applications for offshore wind projects in the Feed-In-Tariff program will no longer be accepted and current applications will be suspended.”

Now that’s bloody odd. There are huge offshore wind farms all around the world, ringing coastlines like man-made barrier islands. They’ve been in op-

eration, in some places, for decades. But apparently Lake Ontario is too fragile to handle it, being freshwater and all that, as if salt- or freshwater made a difference. The only water-borne difference of consequence here is the red herring the McGuinty government pulled out of it.

This has more to do with angry voters in rural Ontario not wanting to look at any more wind turbines.

It turns out that the people who have invested huge amounts of their own money into small-scale solar projects are being told they will not be able to hook them up to the grid. Gunter writes, “After encouraging thousands of Ontario farmers and other landowners to build small-scale solar projects, the McGuinty government has figured out there is no practical way to connect all these new solar panels to the provincial power grid.

“Oops.”

Oops is right.

Ontario put itself in a bind. Yes, wind power can be used to great effect, but they let not in my back yard (NIMBY) get in the way. Solar is still very much pie-in-the-sky to be used to large effect, or should we say still sun-in-the-sky?

Power generation is typically done in large scale facilities for one simple reason: economy of scale truly means something. No matter how much you hate it, it’s hard to eliminate coal, or any other fossil fuel for that matter.

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

Oilpatch has gone to the dogs During my travels throughout the oilpatch I have observed a large number of friendly cats and dogs of all varieties and temperament at workplaces and shops.

In some cases, the appearance of a tail-wagging dog or a cat in stretch mode, serves as a four-legged version of the Wal-Mart greeter who will take you to his master for a pat on the head.

Seeing these animals that seem well fed and cared for, for the most part, projects a warm and fuzzy image of the company and the owner too, which helps to offset the hard scrabble business face of the oil and gas industry.

Fortunately, those nasty reporter-chewing guard dogs don’t usually hang out in the reception area unless it’s a midnight assignment – which I am afraid to schedule.

In the last edition of the paper, I came across one business owner who told me he adopted his home and office dog from the SPCA, and that he often brings home other dogs from the kennel for the weekend as playmates for his adopted dog.

Having a critter around is a great conversation ice-breaker which often leads to a reference to growing up on the farm or other personal tidbit that can

Lee Side of Lloyd Geoff Lee

liven up a story.

Where possible, I usually like to include a photo or a mention of a pet with a story which helps to project the image of the business and its employees as being approachable.

It also reflects my own liking for pets, especially cats, which are well suited for independent lifestyles and apartment dwelling. A cat, dog and horse are on my wish list when the lottery strikes.

Believe it or not, some dogs are actually on the company payroll or are working to help their owner make money.

Bill Allen, an oilpatch worker from Weyburn, has a sideline business called Outwest Canine Con-

sulting that uses trained Labrador dogs to sniff leaks in underground pipelines.

The dogs have detected more than 150 leaks with their super sensitive noses trained to detect mercaptan, a synthetic rotten-cabbage scent injected into pipelines for human nasal detection.

One of his new labs is named Rider in honour of the green Riders.

I have yet to meet a working cat or goldfish, but I am hoping to be acquainted with a smart octopus with ability to sense if the Riders will win a Grey Cup this year.

Remember that clever octopus that accurately called all of the World Cup soccer playoff winners last year?

For companies that don’t have pets on site or don’t want them for health or other reasons but want to support pets, it might still be a great idea to sponsor the monthly cost of a pet at the SPCA. In return you could ask for a photo and progress report of your sponsored animal each month to post on your website – to project that warm and fuzzy image that makes for a better reporting.

Meow or woof to this idea whatever your preference.

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

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PIPELINE NEWS March 2011

Back at it after a short break Story and photos by Brian Zinchuk Alameda – As a small junior producer, you do things a little differently than the big corporations. You can be picky about what you do, but also you can’t afford to sit on things for too long. Those are just some of the lessons Brent Dunnigan has learned over the years, running small oil companies since the mid-’80s.

Dunnigan is the CEO of Epping Energy Inc., a small junior based in Alameda. It’s backed by a private equity fund that raised $10 million from past business associates, family and friends.

Phil Moore is the president, effectively splitting the top job. Peter Burnham is the third partner, and chief operating officer. The three of them also each bring a crucial area of experience. Moore is a geophysicist; Dunnigan is an engineering technologist; and Burnham is a geologist.

“We own a strong third of the company between our private companies,”

Dunnigan said.

As for the remaining investors, Dunnigan said, “We have past investors, institutions, family and business associates for the balance.”

Approximately 40 per cent of the ownership is Saskatchewan-based, the remainder Alberta-based.

“It has to be a huge Saskatchewan ownership for me to even consider it,” Dunnigan said. “Saskatchewan ownership is key in my eyes.

“I’ve gone through as a Saskatchewan entrepreneur, and seen the technical advances,” he said, adding he has respect for smaller junior operators that stay.

“I think it’s good for the Williston Basin if there’s companies located right here,” he said. “I like to see the professionals living in Saskatchewan as well, not just Calgary.”

It’s fitting, then, that Dunnigan is on the energy sector team for Enterprise Saskatchewan. ɸ Page A7

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Dunnigan couldn’t stay away for long

Brent Dunnigan, right, talks with Brent Pryce, the consultant who will be looking after Epping Energy’s next well to be drilled. Dunnigan was excited to have just received the drilling licence.

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ɺ Page A6 Build and sell?

A common model for junior oil producers is to build up production and then sell it in a “liquidity event.” That often involves the sale of the company.

Dunnigan has been through that process several times.

“We do not plan on selling this company. We plan on keeping it private, and working within cashflow,” he said. “Our hopes are to keep this and run it more like a family farm trust model that it basically continues on.”

It’s important to be comfortable with your partners. “I worked with a lot of teams. This is the most comfortable team I’ve had in my life.”

“I’ve been involved with Walking Stick Oil & Gas Ltd., Helmsman Resources Ltd., and Arista Energy.”

One former partner stands out for Dunnigan – Doug Chisholm. “We worked together for 23 years,” he said. “We explored, developed and worked with the first horizontal drilling, and did many small acquisitions,” he recalled. That included working through many of the lower cycles in the industry. “We gained a lot of operations knowledge, I tell ya.”

Walking Stick was around from 1985 until 1995. Dunnigan was in his mid-20s at the time. “I was one of the youngest guys to step into this gig,” he said. It happened through his former consulting company, Armada Resources, which has since been sold.

Helmsman was from 1998 to 2004. When it was fired up, the industry was in tough shape. “We had some tough times, Doug and I,” he said.

“We had a reputation of taking old fields and taking sows’ ears and turning them into silk purses,” he said. “For being a small company, we tried a lot of new technology.”

Arista fired up right after Helmsmen.

“Arista was our biggest success. We found some of the largest Mississippian discoveries right along the Manitoba border in the last 20 years,” he said. “We sold it to get out of debt – we had a good deal on the table.”

Dunnigan said before the crash of 2008, they had indications of the American economy faltering. “I stood up before the shareholders and gave them that speech. They all thought I was crazy.”

Like a fox, perhaps. They got out at the right time.

For a while, Dunnigan just wanted out; a chance to return to farming full time. He and his brother-in-law farm nearly 6,000 acres. “It took me a long time to come back. When I sold in 2008, I was going to farm.” ɸ Page A8

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PIPELINE NEWS March 2011

Fourth time around for Alameda oilman Éş Page A7 But the thrill of being an oilman got to him. “I’ve got some rocks to turn over yet. I love the people and exploring. The team we have has a lot of fun.

We’re trying to create that atmosphere.

We try to match this company to our personal lifestyles.â€? “The three of us [partners] are more explorers. It’s the adrenaline, almost a ďŹ x,â€? he said.

Being private means they don’t have to chase the quarterly cycles. “In the corporate world, you start getting to a point where you’re running after cycles,� Dunnigan said.

As a private outďŹ t, they can bide their time for when the opportunity is best. “We started picking up land in 2008,â€? Dunnigan said. However, they didn’t drill until two years later. In the meantime, they pieced together Mississippian prospects at Alameda, Bellegarde and Wauchope, plus Bakken land (with Legacy Oil + Gas) at Heward.

The ďŹ rst well drilled was in less common territory.

Epping Energy’s ďŹ rst well was drilled in September 2010 at Tyvan,

by Francis. “We found a new structure,� he said. It’s an Ordovician well, one of the deepest formations you can pursue in southeast Saskatchewan.

“It’s not without a lot of risk. We come out of the gate, and that was our ďŹ rst well.â€?

It’s worked out well, so far, however. Since that ďŹ rst hole, Epping has drilled half a dozen, and has complete or partial ownership in 15 wells.

As for development near the Manitoba border, a non-compete clause has now expired. “We were kicked out for two years. We’re back, and were looking at other provinces as well,� Dunnigan said. “We’re going to Wauchope, getting it drilled before breakup.� “We’ve been completing seismic work this winter, and we’ll be following up with an exploration program this summer.�

Epping can’t aord to sit on land, either. “When you’re a small company, when we lease land, we have to try and do something with it. We can’t blanket lease. We can’t aord to be sitting on large land volumes. Land has become so expensive in the Williston Basin.â€?

Asked if they operate their own wells, Dunnigan said, “If you can ďŹ nd good companies to work with, you don’t have to operate everything.â€?

That makes a big dierence, he said. However, “We operate all of our exploration projects,â€? he added. That allows them to keep sensitive information in-house.

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PIPELINE NEWS March 2011

A9

Osum lays the groundwork for commercial oil

By Geoff Lee Calgary – Osum Oil Sands Corporation is on track to become a major league player as a Calgary-based insitu oil sands company.

Work is proceeding at the site of its planned 35,000 barrel a day Taiga thermal project near Cold Lake with the first commercial production targeted for 2014.

Regulatory approval of the project application is expected by the third quarter of 2011 for a combination of proven steam assisted gravity drainage (SAGD) technology with horizontal well pairs and cyclic steam stimulation (CSS).

At stake for Osum at Taiga is 320 million barrels of proven and probable reserves in the ground.

Pilot operations are underway at Osum’s joint venture pilot project at Saleski in the Grosmont carbonate fairway in north central Alberta.

Osum’s combined joint venture and 100 per cent leases in the fairway hold over two billion barrels of recoverable oil, net to Osum.

Osum has a 40 per cent working interest in the pilot with Laricina Energy Ltd. Shell and Husky also have large resource holdings in the area with an estimated 406 billion barrels of oil in place in the entire Grosmont fairway.

Rick Walsh, Osum’s executive vice-president of development and operations, was asked which project the company likes the most.

“It’s tough to tell at this point,” he said. “The short answer is we are very excited about both. The Taiga project – the complexion of that is near term, and is a well established and understood area reservoir-wise.

“We don’t feel a need to pilot. We know what the reservoir looks like, and how it behaves, so we going right to commercial development which is huge for the company.

“The Saleski carbonates are a huge resource. The excitement around there

is the potential, and the fact that we have a pilot operating.”

Osum held its annual town hall meeting near Cold Lake last November to bring area residents up to speed on both projects with the nearby Taiga project generating the most buzz.

“We are very excited to be working in the area,” said Walsh who noted Osum is signed on as a corporate sponsor for the Bonnyville & District Oil and Gas show June 22-23.

Osum plans to open an office near Cold Lake in the coming weeks and will set up a trailer at the Taiga project site as the pace of preliminary work and hiring picks up.

Walsh reports their engineering contractor has just about completed the front-end engineering and design phase at Taiga with more detailed engineering work ahead.

“We are starting to construct facilities, and we have drilled two wells in association with a salt cavern that will support the project directly,” said Walsh.

“Salt caverns do take quite a bit of time to wash out and become useful.

We are trying to get that going in advance of the project being completed and ready for start up.”

A salt cavern fits well with Osum’s plan to use evaporator technology for water treatment. The process generates solids that need to be disposed in an economic and environmentally friendly manner.

The salt cavern will also be used to dispose of solid waste from drilling operations.

“Rather than truck those solids to a disposal facility which is very expensive and puts a lot of truck traffic on the roads, we can actually dispose of it in the salt cavern, and dispose the water in a deeper zone,” said Walsh.

The Taiga project is home to some of the largest thermal heavy oil projects in the world, and currently provides over 10 per cent of Canada’s daily oil production. ɸ Page A10

Osum Oil Sands Corp. has begun steaming at its joint venture pilot project at Saleski in the Grosmont carbonate fairway of north central Alberta. Osum has a 40 per cent working interest in the JV project. Pictured are the facilities in the Ànal stage of construction last fall.

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A10

PIPELINE NEWS March 2011

Salt cavern planned for disposal ɺ Page A9 Osum has raised more than $475 million to date and reported a remaining working capital of approximately $146 million last fall.

The Korean Investment Corporation boosted the available working capital for Osum’s in-situ projects with proceeds from its $100 million private share purchase on Nov. 29, 2010.

“It was nice to get the KIC investment and have that high profile sovereign wealth fund join our investor portfolio. That was very welcome news,” said Walsh.

“In terms of raising the capital for the Taiga project, we will be running a process this year to raise the additional capital needed to fund the first phase of the project.”

The Taiga project will be built in two phases with a production target of 17,500 barrels a day from each phase, beginning with SAGD technology.

“We will be starting up with what we call two double well pads,” said Walsh. “There are 20 well pairs per pad, and we will be producing from two zones simultaneously (Lower Grand Rapids

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and Clearwater).”

“So in total, to get us up to the 35,000 barrel a day target, initially there will be four double pads with 80 well pairs in total.”

The second phase of the project will include the construction of a 40 megawatt co-generation plant.

“It will make us nearly self sufficient electrically. It will also generate some of the steam for the process,” said Walsh.

“The CSS part will come on in the latter part of the project life 20 years out.”

One of the environmental highlights of Osum’s Taiga application is the plan to use and recycle only undrinkable brackish water to generate steam for the SAGD process.

A progressive reclamation plan is included in the application.

Osum submitted their commercial application on time and on budget in late 2009 with

no delays in sight.

“We have received and responded to two sets of supplemental information requests and anticipate within the coming weeks that we will be deemed complete on our application,” said Walsh.

“As far as getting our approval in hand in the third quarter of this year, there is nothing to indicate that won’t be the case.”

At Saleski, Osum and Laricina began SAGD steaming of two well pairs in December with solvent testing to follow sometime this year.

“We think that is a pretty good way of unlocking this resource,” said Walsh. “There have been others that played in it before, but not with a horizontal well configuration.

“We do have three well pairs with enough steam to do two pairs at a time. We will probably play with some solvents later on in the year as

well.

“It is very exciting and getting it on time is where we wanted to be,” said Walsh.

The Saleski pilot will test and confirm the optimal recovery mode for that resource and the potential of solvents.

While the JV pilot is on schedule, Walsh says time and historical data are needed to fully understand how the reservoir works.

“We don’t want to rush it before we have sufficient operating history and data to really make a proper assessment of what is going on in the reservoir,” he said.

“It is a very unique reservoir and we to take the time to assess it properly.

“We hope to be in a position later this year to start making some judgments about what’s happening there.

“SAGD is the first order of business. Later on we will probably introduce solvents,” he said.

Lloydminster Upgrader ¿re crimps production Lloydminster – The Lloydminster Upgrader is expected to return to full capacity early this month following the completion of repairs from a Feb. 2 fire.

That was the word from Bob Baird, Husky’s vice-president of downstream operations, during a conference call to the media and investors on Feb.15 from Calgary.

“In talking about our business in Lloydminster, let me update you on the status of our operations at the Lloydminster Upgrader,” he said.

“As reported, we experienced a small fire on Feb. 2 in a unit which supplies product to the coke room. The incident was immediately and effectively managed and there were no injuries or environmental impact.

“Following an investigation, the cause of the fire was determined. A fuel pipeline froze and burst and fuel was sprayed onto some hot equipment. The damage is not extensive – generally instrumentation and valves, and orders have been placed for the replacement equipment.

“The upgrader is currently operating at between 40 and 50 per cent capacity and based on our current schedule for this repair, we expect the upgrade to return to full capacity in early March.”

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PIPELINE NEWS March 2011

A11

Red River licences boost land sales total Regina – The first sales of Saskatchewan Crown petroleum and natural gas rights in 2011 is marching to the beat of the same drummer that set a quick sales tempo in 2010.

The Feb. sale generated $43.4 million in revenue for the province, the second highest total for the first sale of the year in provincial history.

The sale brings the total amount of the 201011 fiscal year ending March 31, to $467 million, the second-best fiscal year on record.

The Weyburn-Estevan area received the most bids with sales of $18.1 million, of which $7 million was paid for exploration licences around the Red River play.

The Kindersley-Kerrobert area was next at $16.9 million, followed by the Lloydminster area at $5.6 million and the Swift Current area at $2.8 million.

“Our oil and gas industry has really roared back over the past year, and that’s great news for our economy and for Saskatchewan people,” said Energy and Resources Minister Bill Boyd.

“This was a smaller sale in terms of parcels posted, so to see this strong result for the first sale of 2011 is a good signal of the activity we can expect this year.

February's sale included 28 petroleum and natural gas exploration licences that sold for $26.1 million and 201 lease parcels that attracted $17.3 million in bonus bids.

“What's also exciting about this sale is quite simply the range of interest by the industry,” said Boyd. “‘Star’ oil plays like the Bakken and Lower Shaunavon continue to attract investment but companies are also putting their acquisition dollars into emerging plays like the Viking and the Birdbear, and now in this sale the deep Red River oil play near Montmartre.”

The highest price for a single parcel was $3.5 million, paid by Prairie Land & Investment Services Ltd. for an 8,612-hectare exploration licence near the Forgan Viking Sand Pool, midway between Rosetown and Swift Current.

The highest price on per-hectare basis was $16,789. Canadian Coastal Resources Ltd. bid $1 million for a 61-hectare lease parcel near Stoughton.

A special exploratory permit block on offer south of Hudson Bay received a work commitment bid of $500,000 from Lane Land Services Ltd. The next sale of Crown petroleum and natural gas rights will be held on April 11, 2011.

Weyburn-Estevan area (numbers rounded off ) The top purchaser of acreage in this area was Silver Hawk Resources Ltd. that spent $3. 9 million to acquire four licences.

The highest price paid for a single lease in this area was $1.03 million by Canadian Coastal Resources Ltd. for a 61 hectare parcel situated within the Viewfield Frobisher Beds Pool, 10-km south of Stoughton.

This is the highest dollar per hectare in this area at $16,789/hectare.

The highest price paid for a single licence in this area was $3 million by Prairie Land & Investment Services Ltd. for a 1,295 hectare block situated 16km east of the Roncott Bakken Sand Pool, 14-km west of Ceylon.

Kindersley-Kerrobert area The top purchaser of acreage in this area was Prairie Land & Investment Services Ltd., which spent $12 million to acquire nine exploration licences.

The premium price paid for a single lease in this area was $261,323 by Teine Energy Ltd. for a 259 hectare parcel situated adjacent to the Dodsland Vi-

king Sand (Oil) Pool, 30-km northwest of Rosetown.

This is also the highest dollar per hectare in this area at $1,009/hectare.

The top price paid for a single licence in this area was $3.5 million paid by Prairie Land & Investment Services Ltd. for an 8,612 hectare block located 5-km east of the Forgan Viking Sand (Oil) Pool, 30km northeast of Kyle.

Lloydminster area The top purchaser of acreage in this area was Standard Land Company Inc. that spent $1.3 million to acquire six lease parcels and one exploration licence.

The highest price paid for a single lease in this area was $819,464 by Sandstone Land & Mineral Company Ltd. for a 130 hectare parcel situated adjacent to the Hallam Colony Sand (Gas) Pool, 5-km southeast of Macklin. This is also the highest dollar per hectare in this area at $6,328/hectare.

The top price paid for a single licence in this area was $414,228 by Standard Land Company Inc. for a 1,295 hectare block situated adjacent to the Frenchman Butte St. Walburg Sand (Gas) Pool, 14-km west of the town of St.Walburg.

Swift Current area The top purchaser of acreage in this area was Standard Land Company Inc. who spent $1.6 million to acquire three leases.

The top price paid for a single lease in this area was $660,774 by Standard Land Company Inc. for a 259 hectare parcel situated adjacent to the Johnston Roseray Sand (Oil) Pool, 6-km west of the town of Gull Lake. This is also the highest dollar per hectare in this area at $2,551 /hectare.

The highest price paid for a single licence in this area was $75,524 by Trafina Energy Ltd. for a 1,295 hectare block situated adjacent to the Divide Madison (Oil) Pool, 31-km southeast of Consul.

A12

PIPELINE NEWS March 2011

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PIPELINE NEWS March 2011

A13

Stelmach era steeped in major energy issues Edmonton – Alberta Premier Ed Stelmach announced on Jan. 25 that he is stepping down as the leader of the Progressive Conservative Party and will not run as a candidate in the next provincial election.

The full text of his announcement is posted on the Your Alberta Blog website where Stelmach states he will not officially resign as premier until a new party leader is chosen.

The Stelmach era will be remembered for the premier’s leading role in many key and contentious energy program policies and issues.

Mike Jenkinson, a media spokesperson from the premier’s office, wrote the following position statements about the key energy-related issues of the Stelmach government to date: Carbon capture and storage (CCS) We embrace the opportunity for Alberta to be a leader in carbon capture and storage (CCS) technology and made knowledge sharing key to the initiative so other jurisdictions would benefit from Alberta’s learnings.

Our $2 billion commitment from Alberta is the largest commitment

to CCS from any individual province or jurisdiction.

Defending Alberta’s reputation The debate over the oilsands has been framed, as most debates are, in very absolute terms. The oil sands are all good ... or they’re all bad.

They provide the world’s dirtiest oil ... or the world’s most responsibly produced oil, depending on where you sit.

The oilsands will be Alberta’s future ... or its greatest challenge. The premier is proud to see Albertans joining an informed discussion.

Support for bio-fuels and alternative energy Alberta not only recognizes but fully supports that renewable and alternative energy sources are becoming an increasingly important part of the energy mix.

The government has invested $239 million in three grant programs to stimulate bio-energy development in Alberta, leading to more than $1.4 billion in additional private investment.

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A14

PIPELINE NEWS March 2011

Deloro developed an existing well in 2009, and drilled a new one second in late 2010 near Wilkie.

Photos submitted

Recharging on electrical stimulation

By Geoff Lee Vancouver, Wilkie – Deloro Resources Ltd. expects to recharge its efforts in 2011 using direct current electricity to stimulate heavy oil flow from the McLaren formation at its Wilkie, Sask., leases.

The 2011 capital budget will be released any day now following the closure of the second sale of flow through shares to raise at least $3.3 million for further exploration and development.

Deloro successfully piloted the use of electrically enhanced oil recovery technology from U.S.-based Electro-Petroleum Inc. (EPI) in an existing well in 2009 that is still producing an average of 30 bpd.

The EPI process applies a direct electric current to hydrocarbons in the ground which upgrades and mobilizes heavy oil that is too viscous to be extracted by conventional pumping methods.

It’s also an environmentally friendly process that uses less power to apply with no water required.

A second new well drilled in the area in the fall of 2010 penetrated a zone of water inadvertently, but the setback hasn’t dampened the company’s commitment to getting EPI technology to produce oil in 2011.

The company purchased an additional 320 acres of land leases from Canadian Natural Resources for $15,000 on Jan. 25 to give them more drilling targets to be announced with the budget.

“That’s what we are in the processing of doing,” said director Gorden Smith, during a phone interview from Deloro’s head office in Vancouver on Jan. 28.

“We just had everybody out here in Vancouver.

We put the news out on financing. We did $1.5 million before Christmas, and we are seeking to close the balance.

“As soon as we get the balance done, then we will be able to disclose the development plans. We

are committed to $3.3 million. We had a strategy meeting in Lloydminster last week.

“We just signed our drilling targets the other day. Now, we have to start the permitting, and get the locations fixed and do the survey. There are a lot of things to do.”

Smith thinks the water issue with the second well could be rectified with further downhole work, but without an exact cost for the fix, that work will be re-evaluated when the 2011 drilling program gets underway.

“That well isn’t going away,” said Smith. “EPI wants to drill a brand new well, and maybe drill up to three wells.

“We can always go back, but if you go in there and start playing around, and something goes wrong –then people – they don’t care that it was an engineering fault. ɸ Page A15

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PIPELINE NEWS March 2011

A15

Deloro’s Wilkie project ongoing

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four or ďŹ ve suggestions, and we are utilizing one of them and using some hollow rods and other things and it’s getting us some results. “We know if we put some additional equipment downhole we will probably increase the production, but we will do that also in conjunction when we get these other wells drilled.â€?

The net proďŹ t from the Wilkie project will be shared initially on a 50/50 basis between Deloro and EPI until EPI recovers its costs. After that, Deloro will receive a 90 per cent working interest with EPI having a 10 per cent interest.

The Wilkie project has a land package of approximately 3,370 lease acres including the rights to petroleum and natural gas.

Smith says the buzz in Wilkie has always been positive “because they want the project to work,� and notes the commitment is there too.

“EPI is committed.

As far as they are concerned this is one of their showcases,� he said. “For us it’s important because we know the oil is there. We have seen it.

We’ve got the infrastructure up. Within days we should have the wherewithal from our contribution along with EPI to set up a drill program. “We had the powers

to be here (Vancouver) and everyone is committed to the same page. If its $3.3 million or a little more than yet that’s a pretty good faith in the project,� Smith said.

Disposal well to save a fortune Mervin – Forent Energy Ltd. is tying all six of its producing oil wells in the Mervin, Saskatchewan area into a new salt water disposal well that will save the company up to $60,000 a month.

The Calgary-based junior oil and gas company began injecting approximately 1,600 barrels per day of produced water into its recently completed salt water disposal well from its six producing oil wells in the ďŹ eld in January.

The disposal well was completed to inject water into the Dina formation, and has a capacity to handle more than 9,000 barrels of produced water per day.

Forent anticipates savings of approximately $40,000 per month, increasing to $60,000 per month once all producing wells are tied into the water injection well later this year.

Forent plans to increase the production from its Mervin wells now that it is no longer incurring third party water disposal costs.

In addition, the company intends to drill a second well in the Lloydminster area (50 per cent net), which was expected to spud by the middle of February.

Forent’s latest posted average production for December was approximately 350 boepd of which about two-thirds was oil and natural gas liquids.

The company successfully completed a 23 section 3D seismic acquisition program at its Montgomery property, west of Claresholm, Alberta, and is currently processing the data in order to identify multi-zone prospects for both light oil and sweet gas.

Forent has also processed gravity gradiometry data that was acquired last year in Nova Scotia where the company is exploring long-term high reward prospects.

The company expected to have completed its interpretation of this information by the middle of February.

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Éş Page A14 “What you do is take your risk management. Let’s say we plan to drill three wells. You can bring one rig in and just keep drilling until you have done all three, and your costs go way down.â€?

Smith says the engineering mistake on that second well hurt the company, because they used all new technology and new coating piping, etc., and expected it to work. “So you sort of pull back and lick your wounds a little bit,â€? said Smith. “EPI is OK, but we needed to do some ďŹ nancing. I had to put my hat on and do that, so now we are back in the game. “We saw oil and it was very exciting.â€?

The EPI technology is touted as being more cost eective and less capital intensive than other secondary recovery processes.

The power cost to use direct current electricity to stimulate oil ow works out to approximately $4 per barrel of oil according to Smith.

The initial pilot test in 2009 also demonstrated the EPI process works to improve the API gravity and reduce the viscosity of the crude by approximately 50 per cent.

Oil samples from the well were tested at Husky’s analytical service laboratory. “By improving the API you are upgrading, and by lowering the viscosity you are allowing it to ow more freely,â€? said Smith.

The potential ow rate from the initial pilot test well was limited by the conďŹ guration of the existing well reported in a company news release. “The horizontal leg was too long,â€? said Smith in layman’s terms. “You were stimulating and where you usually stimulate is at the end of the horizontal leg, and of course, that was 2,500 feet out there, and then you are trying to pull that all the way back to the wellbore and trying to pull that up. “It was prohibitive so we went to Weatherford – and they came up with

PIPELINE NEWS March 2011

Nordic plans to drill three new heavy oil wells in Lloydminster beginning in March with its area partners, Western Plains Petroleum Ltd. , the operator and Alberta Star Development Corp.

Each partner has a one third share. The new wells will bring to 17, the number of producing wells in the partnership with current total production around 200 barrels of oil per day.

Photo submitted

Nordic swab tests may lead to new oil pool

By Geoff Lee Winnipeg – Nordic Oil and Gas Ltd. is anxious to determine if it has found a new oil pool based on promising swabbing samples taken from its newest vertical well drilled near Endeavour, Saskatchewan.

“We got a very strong report based on the analysis of the water samples that we got from the swabbing and the drilling,” said Don Bain, corporate secretary.

“We are quite upbeat about the prospects for that well.”

The optimism is based on a Jan. 16 lab report by professional engineer Paul Lafleur, president of Petro-Find Geochem who stated: “The oil found in the Preeceville/Endeavour area may indicate a new petroleum system not seen elsewhere.”

Some of the samples taken from swabbing fluids from the Red River formation show high levels of benzene, indicative of oil accumu-

lations.

It is Lafleur’s belief the well penetrated either a new pool or the edge of an oil pool in the formation, but the proof will have to wait until completion services are available starting with an acid job.

“The perforations took place in early January. We decided to try to generate some additional inflow with regards to what we already got,” said Bain.

“That’s what prompted the acid job, but we are having a bit of a problem getting the appropriate and required services.”

The well was drilled in late December and early January with an open-ended completion date due to the shortage of available well services.

“It really depends on the availability of services. We’d like to get it done sooner obviously rather than later,” said Bain. “We have been sitting on it for over two weeks now.” ɸ Page A17

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PIPELINE NEWS March 2011

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Wildcat well near Endeavour shows promise ɺ Page A16 “We’ve got a couple of potential things lined up there, but it’s the swabbing unit and coiled tubing supplies that we need, and we are having some difficulties getting everything lined up.

“There is quite a lot going on right now. There is a lot of winter drilling going on, and people trying to get projects and jobs finished before breakup. It’s just a matter of availability.”

Nordic also has plans to drill a second new well into the Colorado Shales in the Endeavour area this year with an amended licence to drill with nitrogen.

Nitrogen gas is often used in the drilling process to avoid fragile shale.

“We have the original well licence for that from December, but because of what we have discovered and found out with the drilling of this well, we feel the nitrogen is the better way to go, to allow us to look for gas as well, and see what we can find in that regard,” explained Bain.

As soon as the company drills through the Colorado formation they will revert to a mud system while drilling their oil targets.

Bain says there is no “hard and fast” timeframe for this second well, but he says, “we hope to finish the first one first, and then move on to this one.”

Nordic will also drill three new heavy oil wells on the Alberta side of the border near Lloydminster beginning in March, bringing the number of producing wells in the area to 17.

“That’s in conjunction with the two other companies that we share the land with,” said Bain.

Western Plains Petroleum Ltd. from Lloyd is the operator of the 14 wells that are on currently on production. Nordic owns a third, Western Petroleum own a third and Alberta Star Development Corp. owns a third.

“They have been talking with us over that last three weeks and have identified three locations they would like to move forward on, and are beginning to set up arrangements to start some drilling probably early to mid March,” said Bain.

Nordic’s one third share of the Lloydminster heavy oil production is approximately 65 bpd.

The company also generates about 65 boepd from its natural gas and coalbed methane wells in Joff re, Alberta.

“We’ve got opportunities to put additional wells on there as well, but we are a little hesitant to move forward immediately,” said Bain.

“Gas prices are still fairly low in the $4.25 to $4.30 range, so it’s not terribly exciting to move forward. It’s not a big inducement to move forward at the present time but we will be keeping a good eye on that.

“From standing where we are now with all the activities, things are decent.

The price of oil is solid and that doesn’t do us any harm.

“Our bread and butter still remains Lloydminster and Joff re for the company, evidenced by the fact we have three new wells on the drawing board either for the end of this quarter or the start of the second quarter.”

Nordic has yet to announce its 2011 capital budget, but Bain says, “from a financial standpoint we are not too far away from being able to work on our first drawdown for the $10 million equity line facility that we announced last fall.

“We will be drawing down some of that money possibly this month (February). That will not only not only help us along with cash flow, but also allow us to meet our requirements to commence the drilling of these three new wells and other opportunities as well.”

“Overall things are not looking too bad, but it is a little early in the year yet.

It would go a long way if we make some kind of a discovery in Saskatchewan.

“That would go a long way to improving the overall lot of the company and start moving the share price up.”

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PIPELINE NEWS March 2011

Bonnyville evades boom Story and photos by Geoff Lee Bonnyville – The Town of Bonnyville has historic agricultural roots, but the real economic cash cow today is the ever-growing heavy oil industry.

The Bonnyville area is home to some of the largest in-situ thermal oils projects in Canada as well as one of the largest conventional heavy oil deposits with in-place resources estimated at 200 billion barrels.

Bonnyville also borders the Athabasca oil sands to the north, and sits upon a large natural gas field that was discovered in 1947 with enough gas to supply the area’s domestic needs for years to come.

Imperial Oil, Canadian Natural Resource Ltd., Cenovus, Devon Energy and Osum Oil Sands Corp. are some of the big players in the oilfields to the north that are supported by dozens of oilfield service companies that have set up shop in Bonnyville.

Despite having a strong oil sector in the area, Bonnyville’s population continues on a slow upward curve from 5,832 in 2006 to nearly more than 6,500 today with approximately 10,000 people living within a 10-kilometre radius of the town.

“It’s growing steady but not like Fort McMurray is,” said Vic Stapleton, economic development director.

“It is not something you can’t really handle. It’s a steady growth the community can adjust to and work with.

“In Bonnyville we have been able to keep up with the demand for housing. We have some longterm contractors who have been here for years and are still building homes.

“It’s not something where we are building 400 homes a year like Grande Prairie. It’s steady growth.

“On the other hand, you have to take a look at the Municipal District of Bonnyville.

“A lot of people who have moved to Bonnyville prefer living in the country. Our growth is about six per cent a year, and their growth is over 11 per cent.”

Bonnyville has a trading area population of more than 27,000 people within a 50-kilometre radius of town.

Economic development director Vic Stapleton stands in front of the site of the next phase of the Gateway Industrial Park on Highway 28 on the west side of town.

When it comes to the service sector, Bonnyville has attracted more than 50 oilfield service firms to town and dozens of contractors to cater to the major heavy oil players, leading Stapleton to refer to it as a “mini Lloydminster.”

Like Lloydminster, Bonnyville has several industrial parks to its credit with lots of land available for commercial and industrial development for years to come.

“There is steady growth on the service industry side,” said Stapleton. “We have industrial lots that are selling, and we are getting a new complete industrial subdivision west of town.”

The new Gateway Industrial Park on Highway 28 is ready for the next phase of development on the quarter section of project land.

The North Point Industrial Park is home to the massive Bonnyville Forest Nursery that grows and supplies seedlings for Alberta’s reforestation industry.

Surprisingly, the government is the largest employer in town, lumping together, school boards, the Bonnyville Heath Centre, the Town of Bonnyville, the Municipal District of Bonnyville, and the Town of Bonnyville and the Lake Agricultural Research Association among other public sector employers.

Currently, Bonnyville is without a shopping mall or any of the big box retailers like Wal-Mart and Canadian Tire that have set up shop a half hour to the east in Cold Lake, but Stapleton says those types of businesses will eventually come to Bonnyville.

“We feel we have the goose that laid the golden egg because 40 per cent of our tax revenue is from the commercial service industry in oil and gas, whereas Cold Lake has none,” said Stapleton. “They have virtually no industrial tax base.” ɸ Page A19

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PIPELINE NEWS March 2011

A19

growth, but for how long?

Several new oilÀeld ofÀces have sprung up recently as the pace of heavy oil sands development picks up.

Éş Page A18 The historic Bonnyville Hotel was gutted by ďŹ re in December, but several new hotels and motels have sprung up or expanded in the last couple of years including the Days Inn, the Western Budget Motel and the Best Western hotel with a new Tim Hortons as a neighbour.

The need for quality accommodations is partly driven by busy oilďŹ eld traďŹƒc on the four main highways that lead to Bonnyville, and the steady ow of tourists to regional lakes including Jessie Lake, a natural wetland and bird watching wonder in the heart of the town.

Bonnyville is also steeped with recreational fa-

cilities with the Centennial Centre as the magnet for year round indoor sports and cultural activities.

It’s also the home of Portage College and an enrichment centre for Grades 3-7 students from the Northern Lights School Division. “It was built because a lot of individuals coming to work for major oil companies want and need quality of life,� said Stapleton, who led the fundraising campaign. “We went to work and built it. It cost us about $28 million.� ɸ Page A21

Ukrainian recruiter to open Saskatoon ofÂżce Saskatoon – One Ukrainian tourism web site describes that country’s terrain as “mostly a level, treeless plain with an average winter temperature of -20 Celsius,â€? making it sound an awful lot like Saskatchewan.

In fact, 129,265 residents in Saskatchewan or 13.6 per cent of the

• • •

total population have a Ukrainian ethic origin, according to the 2006 Canada Census.

That helps to explain why the International Labour Centre (ILC) will set up a home oďŹƒce in Saskatoon in April after successfully recruiting Ukrainian workers for oilďŹ eld jobs

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and other employment in Western Canada for the past ďŹ ve years.

Since 2004, more than 500 tradesmen and their families have used ILC’s services and moved to Saskatchewan.

ILC has seen strong demand for its services from the oil and gas in-

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dustry as well as from companies in the industry’s supporting manufacturing and service sectors.

Other key areas of ILC’s business activity have been in meat processing, agriculture, health care, construction, hospitality, metal-manufacturing, and

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The new oďŹƒce will operate as ILC Canada, a subsidiary of the Ukraine-based Kiev Youth Labour Centre (KYLC) and its international programs brand, the International Labour Centre.

GLM Industries, an Alberta-based company that operates a busy oil tank manufacturing plant in Battleford, Sask. has recruited a large group of welders through ILC in the past few years to meet their labour needs.

Royal Well Servicing Ltd., in Lloydminster has also recruited a number of Ukrainian oil rig workers through ILC. “ILC’s services are very cost eective because they pre-screen applicants so that the interviews we conduct are with people who meet our requirements,â€? said Richard Polinsky,

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Royal’s general manager in the ILC news release. “When asked about whether he would use ILC again, he said, “Yes, we would use ILC again due to the personal interaction of their sta in the process and because Ukrainians are hardworking, appreciative of the job opportunity and acclimatize easily to the local weather due to Ukraine’s similar climate.â€?

The Saskatchewan Institute of Applied Sciences and Technology, ILC’s partner since 2008, provides assistance in the recognition of candidates’ skills and English levels in test centres in Kiev so that employers are able to make the best choice.

For a number of years, ILC has also maintained a strong relationship with the government of Saskatchewan’s Immigrant Nominee Program and the Ukrainian Canadian Congress, which provide respective immigration and community settlement support. “Saskatchewan government oďŹƒcials have visited our oďŹƒce on four occasions since 2004 to help employers recruit Ukrainian skilled workers,â€? said ILC director Victoria Shamina. “Our company’s history and business process have always focused on meeting labour market needs. We have built our reputation by always remaining transparent with our employers and partners.â€?

These joint missions of provincial oďŹƒcials and employers have helped ILC to recruit more than 1,100 Ukrainians to work with employers in Saskatchewan, Alberta, and Manitoba.

A20

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PIPELINE NEWS March 2011

Bonnyville oil sector companies step up to support complex Fire gutted the historic downtown Bonnyville Hotel on a cold day in December. Water from the ÀreÀghting effort froze and turned the scene into an ice hotel.

ɺ Page A19 The C2, as the locals call it, was built in 2007 with more than $4 million raised from oil and gas companies and major oilfield service companies through naming rights and donations.

CNRL contributed $1 million to name the complex, but chose to lend its name to the CNRL Learning Centre component.

Flint Energy Services and Cenovus also stepped up to the plate with equal contributions of $500,000 with several other companies purchasing lesser valued naming opportunities.

The C2 complex is the host venue for the debut of the Bonnyville & District Oil Show to be held June 22-23 (see oil show story in this edition).

“We are really excited about that,” said Stapleton. “That’s a show that being operated and funded by the Chamber of Commerce.

“The oil show will help to explain the opportunities here within the region, and what the potential is for new

businesses to come in to the community.

“It will also let the companies that are here display what they are doing and what’s going on.”

The C2 is owned 50/50 between the town and the MD of Bonnyville that also shares the annual operating costs.

“We have to been able to sponsor things like the 2010 Alberta Winter Games last winter,” said Stapleton because of the C2.

“We are looking at hosting the Alberta 55-Plus Summer Games in 2013 and the 2015 Western Canadian Summer Games. We put bids on both. The facility allows us to do that.

“The budget for the centre is about $4.5 million, so that was a huge boost in employing people and bringing people to the community in regards to recreation tourism.

“It also encourages people to come here because we have all the facilities that a major centre would have.”

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PIPELINE NEWS March 2011

Oil show debut selling out Bonnyville – The inaugural Bonnyville & District Oil and Gas Show is on pace for a sellout.

That’s the word from the Bonnyville & District Chamber of Commerce that is organizing the event to be held at the town’s Centennial Centre June 2223 with exhibitor set-up day on June 21.

“We have registrations coming in every day,” said event chair Robyn Ducharme, who is also the vice-president of the chamber.

“We are estimating we will be sold out in March.

We are getting interest from everywhere – Lloydminster, Calgary, Edmonton – and a couple of companies from the States.”

The interior rinks at the Centennial Centre can accommodate 162 oilfield service company exhibitors with at least 40 outside spaces for larger oil and

gas company displays.

“We are hoping to open a few more booths outside. It’s still in the negotiation stage,” said Tanya Oliver, the show director and executive director of the chamber.

“We have been getting inquiries every day about it, and really great feedback. People are so behind us.”

Some of the major oil and gas companies and larger service companies operating in the area have been purchasing available event sponsorships.

“There has definitely been a lot of interest,” said Ducharme.

The major selling point for exhibitors is the show emphasis on providing an opportunity for businesses to network and make quality contacts.

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The non-profit purpose of the show is also being well received with gate proceeds from the event being donated to STARS Air Ambulance.

The public is invited to register online for free admittance as a limited time offer with an admission fee required during the show.

“The point is to make this an event where exhibitors can come and network with companies and not have to pay a ton of money to be in the show,” said Ducharme.

“We are not doing this for revenue. We are doing this to encourage business.”

The theme of the show is Fueling the Future, and it could be held every two years if the first one is a success.

This year’s event will showcase the Bonnyville, Alberta area as a preferred place for industry to grow and innovate along with providing an opportunity for exhibitors to market themselves to the region.

“What we are picturing is that the oil and gas show will be a place for companies to come together,” said Ducharme.

“What it will actually do is maybe encourage other companies opening up in town or encourage other economic growth in our area which will spill over into our retail and service sector.”

Bonnyville is home to the largest in-situ thermal oil sands projects in North America, as well as one of the largest conventional heavy oil deposits in Canada. ɸ Page A23

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Interest coming from all over ɺ Page A22 Cenovus, Imperial Oil, Devon Energy and Osum Oils Sands Corp. are among the active major producers in the area who will have a presence at the show.

The show will help fulfil the mission of the chamber’s new board to provide a reason for oil and gas companies to purchase a chamber membership by showing their support for the industry.

“One of our goals when we sat down and looked at what we have done, is that in order for our retail and service sector to be strong, we need the oil and gas sector in this community to be strong as well,” said Ducharme.

“That’s where we came up with the idea that we need to do an oil and gas show, and show these companies that the Chamber of Commerce is absolutely onboard with expanding and stimulating economic growth for oil and gas companies and service companies.

“Anyone who wants to join the chamber, we are actually offering a preferred rate.”

Ducharme is well suited for the her role as an event chair having last worked as a certified production accountant for a major Canadian oil and gas producer in a seven year oilfield career.

The job took her from Bonnyville to Calgary and Fort MacMurray and back to Bonnyville where she currently manages an Edward Jones franchise, dispensing financial advice and selling stocks to oil patch clients.

“It was a good fit. I can understand what oil people are talking about,” she said. “Out here in Bonnyville, all of my clients either get their monthly income from an oil company or the wife

Organizers Robyn Ducharme and Tanya Oliver from the Bonnyville & District Chamber of Commerce provided Pipeline News with an update of the Bonnyville & District Oil and Gas Show at the Centennial Centre where the event will take place June 22-23. The show is on track for a sellout in its debut season.

or husband does.”

Ducharme and Oliver have left nothing to chance to attract the right oilfield audience to Bonnyville.

They both scouted last years’ oil shows in Fort McMurray and Lloydminster with an eye to making the Bonnyville show the best of the bunch.

“This being the first show, we really want to focus on oil and gas,” said Ducharme. “We are also being very selective on who can actually get a booth at the show.

“There is actually an application to have a booth at the show. We want to make sure we are showcasing oil and gas here, and that we are not making this into a general trade show.”

With their booth fees, exhibitors will receive complimentary coffee, breakfast and lunch each day.

They also receive two tickets to an opening meet and greet barbecue sponsored by Osum Oil Sands Corp. at the chamber’s office at Shaw House on Moose Lake, the evening of June 21.

Show participants also get two free tickets to a show banquet at the Centennial Centre June 22 with seating for 700 people.

Educational seminars will also be held in the facility theatre throughout the show for exhibitors and the general public to attend.

Some of the confirmed presentation topics are Contracting 101, Diversification in the Oil Patch: How to Ride Out the Highs and Lows, and World’s Greenest Oil: Turning the Oilsands from Black to Green.

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PIPELINE NEWS March 2011

Novus to step up Dodsland drilling in 2011 Calgary, Dodsland – Novus Energy Inc. turns two on March 31 as a grown up Calgary-based junior oil and gas company.

The publicly traded company is prospering since the recapitalization of Regal Energy in 2009 and its new management focus on growth from the Viking resource play in the Dodsland, Sask., area.

“We have ramped up production by a factor of at least five from the time we got here in March 2009 to the end of 2010,” said Julian Din, vicepresident of business development.

“In a year and three quarters, we went from 300 and something boepd to just over 2,000 boepd, shifting the oil weighting completely around.

“When we got here, the company was about 20 per cent oil, and we will hopefully be around 80 per cent shortly.”

That prediction is based on the company’s new 2011 capital budget of $60 million for exploration and development activities with the focus on light Viking oil.

In fact, 79 per cent of the capital budget announced Feb. 3 will be allocated to the company’s core Viking resource play.

The budget is expected to generate an average production rate of approximately 2,400 boepd in 2011 from 80 per oils and liquids, with a year-end exit rate of approximately 3,000 boepd with up to 85 per cent from oils and liquids.

In 2010, Novus achieved a 100 per cent success rate from the drilling of 33 of its fully owned and operated wells at Dodsland.

The company’s strategy to focus on the low risk, highly economic Viking play remains unchanged in 2011.

“The Viking is our big focus,” said Din. “We have 110 net sections out there, and at this point we have 575 net locations identified for drilling, so

there is a lot of work to be done there.”

The company plans to drill a total of 60 (57 net) wells in 2011 with 50 (48 net) of the wells targeted in its Dodsland Viking resource play with the emphasis on horizontal drilling.

“Ultimately it’s the same story in the Viking as it is with virtually all of the other hot plays out there. It’s all about horizontal multi-stage fracturing,” said Din. “Currently, it’s a very economic play. We have well costs including completions down to about $850,000.

“For that we are getting net present value on the wells of about $1.1 to $1.2 million, so it’s a great use of capital with under $15 finding and development costs (per boepd). We are bringing production on for under $16,000 per flowing barrel.”

Din credits the application of limited entry fracking as the one of the keys to cost effective growth for Novus in the Viking play.

This method of fracking is a variable of horizontal multi-stage fracking that allows for several intervals to be fracked simultaneously for speed and efficiency.

Novus reports that 79 per cent of the capital budget will be incurred in their core Viking light oil resource play where the company achieved early success.

“We really only got in there about November 2009, and in the course of the next year or so, we managed to put together a pretty big position before it became terribly hot,” said Din. “The big competitors around us are guys like Penn West, Baytex and Harvest, Enerplus and Crescent Point. There is room for the juniors. We like to think we are little more nimble at least.”

Novus will be operating 98 per cent of the capital expenditures it incurs in 2011, giving it flexibil-

ity on the timing and scale of its capital program.

The company expects that its capital budget will be entirely funded through internally generated cash flow and its existing $28 million lines of credit.

The company expects a year-end debt of approximately $25 million and a possible funds flow from operations of $34 million in 2011.

While most of the budget is allocated to drilling and completions in the Viking, Novus will also drill one net well in the promising Cardium light oil play in the Wapiti area of Alberta.

“We actually have a very exciting Cardium asset that I think most people don’t realize we have because we are so big in the Viking, and it’s so easy to focus on that,” said Din. “We have a nice spread in the Wapiti area where competitors like New Vista and EOG Resources and Seaview Energy have been drilling some good horizontal Cardium wells all around us.

“We are going to be trying our hand at a least one Cardium well in 2011,” Din said.

Novus also has two producing Halfway light oil wells in Wembley area near Grande Prairie, Alta., and drilled two new wells there on Jan. 25 with plans to drill one new net well in 2011.

In the Bakken, the company is in the process of completing two wells in two locations.

“Late last, fall we drilled a well in the Rocanville area, and it looks good, so we are completing it right away,” said Din. “We also drilled a well in the Roncott area which we just finished up early this year. It looks good, so we are going to be completing that one pretty shortly as well.”

The company will drill the remaining eight wells of its 2011 program in its other focused areas in Saskatchewan and Alberta.

PIPELINE NEWS March 2011

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PIPELINE NEWS March 2011

A chance to work in the ¿eld Vermilion, Alta. – Lakeland College and their oil and gas industry supporters took time to appreciate their mutual partnerships during work term presentations at the Vermilion Campus by graduating bachelor of applied sciences environment management students.

The presentations on student practicum projects, held Jan. 31, are the final step for students in fulfilling the program’s graduation requirements.

The student presentations covered projects

from air and water monitoring and compliance to contamination remediation before host industry representatives at the Alumni Hall Theatre and Mead Building lecture rooms.

“The purpose of the event is to give the public a chance to see what our students have been doing on their eight month practicum in industry and government placements, and to give those host agents a chance to visit us at the college,” said Lee Arthur, program head and master of ceremonies.

“The partnerships are absolutely critical to us at the college. We have agreements with host agencies that allow our students to get practical training in the field in areas such as reclamation, remediation of contaminated site, and re-vegetating disturbed sites to targeted end land uses.”

“The experience students get working in industry is absolutely essential in our minds,” said Arthur. ɸ Page A27

Boyd signs Japan deal for clean coal prospects Regina – The government of Saskatchewan has signed on with the Japan Coal Energy Centre ( JCOAL) to co-operate on the development of new technologies for clean coal and carbon capture and storage.

Energy and Resources Ministry Bill Boyd signed a memorandum of agreement with JCOAL in Tokyo as part of his January trade mission to Asia.

News of the MOU came the same day as a new federal report called for Canada to adopt a phasedin approach to climate harmonization policy with the United States to avoid delay in emissions reductions – including those from coal-fired plants.

Saskatchewan is Canada’s third largest coal producer, with reserves that will last hundreds of years at current production levels.

The National Round Table on the Environment and the Economy (NRTEE) report on Jan. 25, says a made-in-Canada policy would allow us to achieve significant greenhouse gas reductions over the next 10

years even in the face of uncertain U.S. policy.

NRTEE says taking an independent approach would establish a ‘price collar’ that limits carbon price differentials between Canada and the U.S. The report says a transitional policy will allow Canada to meet its 2020 greenhouse gas emissions targets, achieving cuts of three per cent below 2005 levels at a minimum.

This compares to emissions being at 10 per cent above 2005 levels in 2020 without such a policy.

NRTEE’s transitional policy option includes a cap and trade system with auctioning of permits and revenue recycling to cap emissions and address regional and industry concerns.

It also calls for having limited international permits and domestic offsets to keep domestic carbon prices lower for Canadian firms.

The transitional policy would even establish a technology fund to stimulate investment in needed emission reductions technologies.

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The NRTEE report highlights the importance of low-carbon technology investment to realize future emission reductions – the type of results that Saskatchewan hopes to achieve with JCOAL. “JCOAL has a great track record in clean coal technology research and Saskatchewan is a world leader in carbon capture and storage technology,” said Boyd.

“It’s taken a lot of work on both sides to make this MOU happen, and the relationships we establish through it will help both Saskatchewan and Japan as our industries and utilities work to reduce their environmental footprints.

“The technical co-operation coming out of this MOU may well help us unlock some of our province’s deeper coal resources, which require new and innovative technologies to be developed,” Boyd added.

JCOAL is a non-profit organization representing more than 100 Japanese coal, gas, steel and mining companies as well as manufacturers and electricity utilities.

It receives funding from Japan’s Ministry of Economy, Trade and Industry and its subsidiary, the New Energy and Industrial Technology Development Organization.

Saskatchewan’s expertise in carbon capture and storage technology includes the International Energy Agency Greenhouse Gas Weyburn-Midale CO2 Monitoring and Storage project.

That project is led by the Petroleum Technology Research Centre (PTRC); the International Test Centre for CO Capture at the University of Regina and the International Performance Assessment Centre for Geologic Storage of CO2.

Other contributors include PTRC’s Aquistore project; and SaskPower’s integrated carbon capture and sequestration project at Boundary Dam. Boyd says he hopes the MOU sets the stage for future information exchanges and research projects involving scientists and companies in both jurisdictions and could lead to Japanese investment in Saskatchewan carbon capture and storage projects.

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PIPELINE NEWS March 2011

Work terms lead to “hire” education at Lakeland ɺ Page A26 A number of industry organizations that hosted Lakeland students including Husky Energy, Stantec Engineering, Syncrude Canada Ltd., Alberta Environment, Manitoba Hydro, Canadian Natural Resources Ltd., and Alberta Sustainable Resources and Development were represented in the audience.

“Some of the partnerships we have had for many years. Husky Energy is a good example of one. They have been a strong partner for 15 years, and there are many other companies in the oil and gas as well as mining.

“Syncrude and Suncor, the big oilsands mines, have been taking our students for many years. The students get a chance to work in the field and that is a big advantage in addition to their academic studies to get out and see things in the real world.”

Companies such as Husky rely on hiring work term students for a variety of jobs and to help them start their careers.

“The partnerships are important,” said guest speaker and former student Aaron Studer, who was introduced as Husky’s environmental team leader for midstream and downstream operations in Lloydminster.

“We use the students on an annual basis. We usually take three or four of them, and we use them to do a lot of our field work and assisting our consultants,” said Studer.

“We look to get the students we need to suit our needs, but also to help the students evolve in their careers and to start their careers.”

Studer was also on hand to lend support to student presenter Carmen Belsheim who presented an overview of carbon capture and storage methods and Husky’s CO2 plans for the upgrader and ethanol plant.

“The quality of students that Lakeland produces is very good, “said Studer who supervised Belsheim during her practicum.

“We really like the quality of the students and the quality of the program.

“The practicum allows the students to get some hands-on knowledge before they are turned loose in their working career.”

“A lot of them come back and work for us as consultants.

“In Lloydminster – environmentally – between the upstream group, the midstream group, and reclamation group, there is about 10 employees, and very low turnover out of that group,” Studer said.

Husky is a member of the program advisory committee with the focus on university studies and the heavy oil operator technician and bachelor of applied science environment management programs.

Most of this year’s presenters have already landed jobs as the economy improves in Alberta and Saskatchewan.

A27

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PIPELINE NEWS March 2011

SPE speaker sees pro¿ts in produced water Lloydminster – No one threw water on Dwyann Dalrymple’s presentation on finding value from produced water during the January technical lunch of the Lloydminster chapter of the Society of Petroleum Engineers (SPE).

Dalrymple is an industry development manager for Nalco Company in Sugar Land, Texas and covered all of his bases, proving it can be profitable treating and reusing produced water.

“By managing produced water by finding ways to reuse it – just internally – can save a company millions of dollars in each field every year,” he said.

“For an oil and gas company, it’s like anything else. It’s difficult to tell the difference between a dollar that you did not spend and a dollar profit that you made.”

Properly managed, produced water can be profitable, says Dalrymple, who made the point it doesn’t have to be a cost incurred from activities such chemical treatments and disposal.

Value can come from re-injecting it as a waterflood or to maintain reservoir pressure, and from treating and reusing it.

Some of the advantages of reusing produced water for frac stimulation, for example, could lead to reduced disposal costs, reduced long-term liability

Dwyann Dalrymple, an industry development manager for Texasbased Nalco Company, kicked off the 2011 SPE Lloydminster chapter technical luncheon presentations. Dalrymple spoke about opportunities to create value from produced water waste in the world.

Photo by Geoff Lee

from waste, reduced use of fresh water and reduced environmental impact.

Dalrymple was introduced as a distinguished SPE lecturer and an industry science adviser for the Produced Water Community of the Middle East, Africa and Asia.

From his consulting experience, he believes local conditions and requirements often result in solutions that require multiple steps for complete resolution of produced water issues from reduction, chemical removal, separation, treatment, disposal and reuse.

He said that industry needs to work toward developing sustainable water systems that benefit the oil and gas industry, local communities and the environment as a best management practice.

Nalco is one of the world’s largest sustainability services company focused on industrial water, energy and air applications.

The company helps customers reduce energy, water and other natural resource consumption while minimizing environmental releases and boosting the bottom line.

Dalrymple says it’s important for energy companies like Nalco to share innovative ways of managing water, knowing it takes an average of five million gallons of water to fracture a horizontal deep shale well in the United States.

Approximately 15 to 20 billion barrels of produced water are generated every year in the U.S. from nearly one million wells.

That figure jumps to 65 to 70 billion barrels globally each year.

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Dalrymple also discussed ways to minimize the volume of produced water that range from chemicals such as cement and sealants (seal the porosity) to downhole separation techniques.

AGI’s innovative design, custom manufactoring process and comHe pointed out the most common produced prhensive service combine to make AST’sone of the most cost effective, water disposal methods are trucking, Class 2 inefficient means of storage available today. jection wells, evaporation and surface discharge.

Dalrymple says in the Pennsylvania Marcellus shale natural gas play, no more Class 2 wells are being permitted which forces producers to truck it all the way to Ohio at approximately $6.50 per barrel.

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A29

Myth of free and abundant water at end ɺ Page A28 He says the myth of free and abundant water is coming to an end.

“It is becoming more difficult for governments to insulate water customers from the economic cost of these resources,” Dalrymple said.

“We now have the emergence of an investment grade market for water rights.

“It’s about change primarily. The environmental issue is something that we are very aware of, and we working hard at trying to leave it better than it was when we came in.”

Dalrymple says consideration for the needs of other water users and adopting a life cycle approach to water use by the oil and gas industry are two other best water management practices worth pursuing.

Before working for Nalco, Dalrymple spent 30 years as a science adviser for Halliburton in all phases of water control and well preparation, and he holds 30 patents related to conformance technology, acidizing, sand control.

He told his Lloydminster audience that new technology for treating produced

water to remove oil and other organics from it is helping to make it more marketable.

Dalrymple also touched on some promising new methods to remove salt and other inorganic material from produced water such as reverse osmosis, filtration and thermal distillation.

“The desalination methods allow one to reduce the saline content of the water allowing the use of less expensive chemicals to prepare treating solutions,” he said.

“Anything you can do to reduce the content of salt water is good.”

Constructing wetlands is another effective way to treat produced water with plants that assimilate nitrogen, phosphorus and metals.

“Wetlands are highly efficient at removing harmful compounds before they reach rivers, lakes and the environment,” noted Dalrymple.

Dalrymple said cleaning up water is not a technical issue but an economic one. For any application there can be multiple technology combinations which meet the requirements.

The best solution, he says, is the one with lowest total cost of operation.

In summary, Dalrymple says to create value from produced waste water, industry needs to increase research to find synergistic opportunities, and to find a way to reuse the water.

Asked what he hopes to accomplish as a distinguished SPE lecturer, Dalrymple said, “I am going around giving presentations and showing what is going on around the oil and industry – showing what others are doing.

“We hear what is going on in Africa, Europe, Canada and the U.S. instead of just within the one area.

“It helps bring the education level up so we as an industry can

be more knowledgeable on what’s going on and what type of research

needs to be done and develop ways to find an answer,” Dalrymple said.

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PIPELINE NEWS March 2011

Solara to spend $8 million on core wells Calgary – Solara Exploration Ltd. has a new capital spending program for 2011 with a net expenditure of $8 million for drilling eight horizontal and 12 (11 net) vertical wells on its core oil properties in Alberta.

The major focus of the capital expenditure program is on oil development projects where the company has previously drilled commercial oil wells over the past 18 months.

At Pembina-Buck Lake, the Calgary-based junior oil and gas company plans to operate and participate in the drilling of up to four (two net) horizontal wells over the coming months to evaluate Cardium oil potential of its undrilled lands adjacent to its recent drilling successes.

Solara also plans to drill up to four (3.4 net) horizontal gross wells on the Dewberry oil project located in northeastern Alta., primarily to optimize the Dina formation from which it is currently producing oil in three wells.

One horizontal well will be drilled to further evaluate the Sparky oil zone in Dewberry.

Eight (five net) vertical wells are planned over the next three quarters at Dewberry to further optimize the Sparky, Rex and Cummings oil zones where the company currently has 14 producing wells.

Solara also plans to drill two (1.1 net) vertical wells on its operated Sounding Lake property to evaluate the Dina oil formation.

In addition, the company will operate the drilling of a McLaren oil test on lands at Rivercourse located southwest of Lloydminster, Alta.

The capital expenditure program will be funded by discretionary cash flow from operations. The company also has at its disposal additional financing sources, if it so chooses, of maturing warrant programs, available bank operating lines and the disposition of non-core properties.

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PIPELINE NEWS Saskatchewan’s Petroleum Monthly

B-Section March 2011

Wrangler grows with slant rigs, new building

Kelly O’Donnell hold the garage door open to his new shop showing the amount of available work and storage space inside. About 40 per cent of the shop is rented to Platinum Performance Inc. Photo by Geoff Lee

By Geoff Lee Lloydminster – Wrangler Well Servicing Ltd. is operating out of a new building in the Hill Industrial Park in Lloydminster with the same customer commitment that has led to the growth of the service rig company.

“We try to give a high level of service, a high level of safety and competitive costs,” said owner Kelly O’Donnell, who took possession of the 12,000 sq. ft. office and shop complex in December.

The building includes 4,000 sq.ft. of office space with an 8,000 sq.-ft. shop, and two acres to park equipment such as support trucks, pipe trailers and dog houses that move down the road with each rig.

Wrangler is renting 40 per cent of the shop space to Platinum Performance Inc. that will make heavy duty mechanical repairs for Wrangler when needed, including repairs to their fleet of six service rigs.

O’Donnell bought the land two

and a half years ago, and decided to start construction in 2010 with the acquisition of his first slant rig and a growing demand for well servicing in the Lloydminster area.

“We are very busy,” said O’Donnell. “I think the biggest reason for the demand in Lloyd is a lot of the investment community throughout Alberta is throwing money into oil.

“The more investment money that comes in, the more drilling there is, and more drilling means more well servicing needs to be done.”

Wrangler has two main customers with Canadian Natural Resources Ltd. being the largest followed by Husky Energy with the service field focus on heavy oil workovers.

“I have five rigs working for CNRL and one rig working for Husky,” said O’Donnell.

“The bulk of our work is heavy oil pump changes. We do get into well completions and re-completions. We do very little gas. It’s mainly heavy oil workovers. ɸ Page B2

Thank you to all of our great suppliers and customers!

Wrangler Well Servicing is proud to have such a Great Team of People who make our company a success!

Phone: 306.821.7292 Fax: 780.871.2388 Email: kelly@wranglerwell.ca

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B2

PIPELINE NEWS March 2011

Slant rig on order ɺ Page B1 “These companies are drilling a lot around here, and a pump change needs to be done every 30 days to a year. If you have a lot of wells, you need a lot of rigs to supply that service.”

Wrangler specifically built its first slant rig 10 months ago to keep pace with the growing number of slant wells being drilled by CNRL. The company plans to take delivery of a second slant rig this summer.

The special rigs are manufactured to Wrangler’s specifications at Capital Rig Repair Ltd. in Edmonton, and include a gripper unit that allows Wrangler to pull and run their own rods.

“Slant wells are a new trend for CNRL,” said O’Donnell. “They seem to go more and more towards it. I think their philosophy is that it’s a smaller footprint.

“For example, you can drill a pad of 20 slant wells so you are reaching out to a large area with small surface footprint.”

Slant drilling differs from directional drilling in that the drill angle starts at the surface and not from a vertical wellbore.

Essentially the angle is calculated for the wellbore to leave the surface and terminate at the desired target or downhole location.

“We are probably the only privatelyowned company around

with a slant rig,” said O’Donnell.

“It positions us to be more sought after as a contractor for a company. We offer more services therefore, they are happier to hire us.”

As demand picks up in 2011, O’Donnell says his goal is to maintain the high level of operations his company has achieved over the past few years.

He says he is up to the challenge of hiring new employees in a competitive labour market.

“When I talk to young people, I tell them you can go places in the oilfield,” he said. “There is a future if you work hard and get into the right companies.

“We like our guys to have a family. We like to hire family people.

“We like to make sure they are home at night, and have a normal life like a lot of other people. We try to create a work atmosphere where people want to come to work.”

O’Donnell is proud of the fact that during the last slowdown all of his rigs were in the field and no one was laid off.

“I am committed to keeping my guys busy, and they do their part keeping themselves busy,” he said.

O’Donnell and his field supervisor, Troy Tang, keep in close communication with crews in the field with a proactive approach to troubleshooting.

Congratulations

Wrangler

Wrangler recently moved into its new 12,000 sq. ft. ofÀce and shop in the Hill Industrial Park in Lloydminster. The company has a Àeld staff of 30 rigs hands is looking to hire more workers with a second slant rig on order.

Photo by Geoff Lee

The service rigs are parked overnight at the job site when the crews go home at the end of their shift.

“We probably only spend one to two weeks per year in town doing repairs and annual safety repairs,” said O’Donnell.

Prior to moving into the new complex, O’Donnell ran most of the operations from his house in Lloydminster with his bookkeeper Susan Dupuis based in Cut Knife. ɸ Page B3

This photo of Wrangler’s new slant service rig was taken from the truck that hauls a yellow gripper. In the forefront is the control panel for the gripper.

The rig was especially built for Wrangler’s biggest customer, Canadian Natural Resources Ltd., for work in the Lloydminster area.

Photo submitted

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PIPELINE NEWS March 2011

B3

Tom Wood shines in his media moment

By Geoff Lee Lloydminster – Tom Wood has been a rig manager for Wrangler Well Service for over 10 years since joining the Lloydminster service rig company in 1999.

The 54-year-old began his career in Lloydminster in the mid ’70s setting up pumpjacks for the princely sum of $5 an hour. When he was put on a rig at $6 an hour, he decided to stick with rigs.

The Pipeline News caught up with Wood at a company safety meeting in Lloydminster to dig a little deeper into what keeps him motivated as the manager of Rig 4. ɸ Page B4 When Tom Wood moved with his parents from Calgary to Lloydminster in 1968 as a young man, he began working in the oilÀeld in the mid ’70s. Today, Wood is an experienced rig manager for Wrangler Well Servicing Ltd. and still loves every minute of his job.

Sold Àushby for rigs Congratulations

Wrangler ɺ Page B2 “It was time to get things moved into one area and it makes things more organized,” said O’Donnell, who got his industry start in 1991 running a flushby company with his brother Dave.

“We ran that for a few years then we saw there was a big demand for service rigs. We ended up selling the flushby in 1995, and going full-time

Fort Garry Industries

into the rigs,” he said When the oilpatch crashed in 1998, they sold one of the three rigs, with each brother taking one rig to start their own separate business.

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He grew up on a farm in the Unity area where his brother owned and grew OD Well Servicing to four service rigs.

O’Donnell reports his brother sold his business about a year and a half ago to Swift Current-based Diamond Energy Services Inc. who retained him as a manager based in Unity.

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PIPELINE NEWS March 2011

Retirement? ɺ Page B3 Q: Are you thinking of retiring soon?

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Office: 780.808.8500 Fax: 780.808.6383 Brian Kinch C: 780.871.4859 Peter Graf C: 780.871.8679 PO Box 11582 Lloydminster, AB T9V 3B8

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All employees of Wrangler Servicing Ltd. stuck around for a group photo following a safety meeting at the Best Western in Lloydminster. Wrangler is owned by Kelly O’Donnell who just opened a new ofÀce complex and purchased a new slant rig with a second one on order.

Q: Do you want to be a mailman when you retire?

A: It might not be as heavy work.

Q: What type of rig do you manage and where are you operating?

A: I manage an ordinary conventional vertical double rod rig with single tubing. I am doing work for CNRL. We

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work across the North Saskatchewan River up in Edam or Turtleford, and when we get the wells caught up there, we move back over to Maidstone.

Q: What kind of services does your rig perform?

A: Pulling equipment out of the hole.

When a well goes down, it isn’t producing anymore so then you use the rig to do whatever you gotta do to get it back on production.

That can mean numerous things – recompletions, reactivating – if

Congratulations

Wrangler there’s tubing stuck in the hole you’ve got to get it free – all kinds of things, too many to mention.

Q: Do you manage other rigs besides Rig 4?

A: I have my rig that I look after. That makes it nice and simple. You have the same guys and you know your rig

because you’ve always worked with it.

That was the number of the other one I had, and then we retired it, and Kelly (owner) got me a licence plate saying this was going to me last rig, but I don’t know if he is going to be right or not if I don’t win the lottery. ɸ Page B5

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PIPELINE NEWS March 2011

B5

Congratulations

Wrangler Rig manager must adapt ɺ Page B4 Q: Do you even want to work on your company’s new slant rig?

A: Me and slant rigs don’t get along together. Once you work on a vertical then try going to a slant rig – it’s hard to do because everything’s slower and you got to have more patience. It’s just like trying to walk upwind because everything is on a slant. Nothing is straight. Trying to put stu on a slant when you are used to a vertical – it’s a whole new ball game.

Q: What is a typical day like for you managing a crew?

A: Lots of paperwork and you are doing a lot of mentoring outside, and making sure everything is getting done and guys are doing their job – making sure the equipment is running properly. You don’t get in anybody’s hair, but you kind of do it sneaky.

You go outside and you watch what everybody’s doing and you stay out of their way. If they are doing something wrong, you got to go over and present it nicely so that nobody gets mad. When just one person gets mad out there, it kind of relays down the line.

You know how one grumpy person can upset the whole kettle. You gotta be careful on how you do things and if you come across too mean, then people will not work for you.

Q: How would describe the role of a rig manager?

A: The way I describe our job as managers as being someone who must adapt to dierent personalities.

So when you talk to them – with some you got to be a little more stern with, and another person you can be gentler towards them because they will listen – and you don’t have to get mad because the other guy is just going to ignore you unless you make it stick in his head. ɸ Page B6 Industrial Hose, Fittings | Oilfield Hose & Components | Hydraulic Hose, Adapter Valves, Pumps & Gauges Hydraulic Tank Accessories | Full Safety Division | Complete SCOTT Servicing Fire Extinguisher Sales & Servicing | Cylinder Hydrostatic Testing | Air Cylinder Refilling

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Left to right are rig manager, Tom Wood, à oorhand Ian Block-Hansen and consultant Bob Kenyon putting the Ànishing touches on another successful workover by hooking up the drive unit hoses.

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PIPELINE NEWS March 2011

Congratulations

Wrangler

Many memories ɺ Page B5 Q:Can you recall a particularly memorable day in the field?

A: That’s when we took a tick once, and we had to put a valve in, and we had to put it in when it was up in the derrick. That was pretty memorable. That was a big mess. The derrick man got it screwed in, but he couldn’t seat it enough to close it so, I had to go up and I got it closed. When we were all done, we were

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Tom Wood stands in his front of his rig 4. When the rig was built three years ago, company owner Kelly O’Donnell got Wood a plaque that reads “Tom’s Last Rig” which refers to the fact he has worn out a few rigs in his lengthy career. This could be his last one.

all covered in oil.

We were trying to close a T-I (Texas Instruments) safety valve that you put in the tubing, then you close it – because there was oil shooting out of it up in the air and we had to get it closed.

Q: How important are crew communications?

A: You’ve got to have good communication between your workers, but that’s the same as any job. If you can’t communicate with your workers, you don’t get their respect. If you don’t have their respect, they are not going to work for you.

If someone isn’t doing their job, you got to let him know to step it up. Some guys get lazy and if they can’t pull their work, then they are making more work for everybody else. If they can’t pull their work, then you got to tell them you are going to let them go.

I don’t have that problem. My guys – all I have to do is go out there and start doing their job, and they look stupid. I am always bugging them. An old man is showing a young kid up. You have to set the example.

Q: Do you do a lot of mechanical troubleshooting?

A: You pretty well got to be on top of that. If you can’t get it, then the phone call comes back to Kelly and he gets mechanics out. He might have an idea because he’s got six rigs, and he might have had that problem before and can tell you where to look. ɸ Page B7

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PIPELINE NEWS March 2011

Tom Wood, the manager of rig 4 makes his way down a Ă ight of stairs on a cold winter day.

Photo submitted

Safety most important Éş Page B7 Q: What do you like best about your job?

A: There is no set coee break. We might have dinner at 10 o’clock and not at noon. Whenever you get a chance that’s when you eat.

Working an ordinary job, when it comes 10 o’clock you’ve got to have your coee and you go back and work.

Here you might have a real bad day, and you might go out at 7 a.m. in the morning, not make it to the shack until 2 p.m. to have a bite to eat, but on other days if you are working on equipment you get maintenance done and cleaning, you go sit in the shack and you "BS" a little bit.

Q: What do you think of your company’s new shop?

A: That’s going to be good because now we’ve got some place to work inside and a place to take the equipment to instead of being scat-

Congratulations

Wrangler tered around. Now, we have a home base to take the rigs to instead of one rig over here and another one over there.

When you are doing spring break-up work, it’s nice if they are all together then guys can help each other.

You can go help somebody else who is having problems on their rig.

Even if it isn’t your rig, it’s greatly appreciated if you go and give a hand or if you need a hand on your own, somebody will come over and give you a hand.

Q: How do you deal with safety issues at the job site?

A: Safety is very important. The worst part of this – every little in-

cident – you have to do a bunch of paperwork.

Right now, everything is just a big paper trail.

Plus, you don’t want people getting hurt out there.

A pinched ďŹ nger or stu like that – that’s nothing really serious, but if you end up cutting a guy’s ďŹ nger o or he gets a broken leg or crushes his hand, then it’s a little more serious.

But it’s just like carpentry work. We are always hitting our ďŹ ngers and stu like that. They don’t really push safety that much on pounding nails, but as soon as you get into the oil industry, then it all becomes a very big deal.

We have a pre-job

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safety meeting every morning and what we are going to do during the day. If something changes then you talk it over. There are numerous things that are happening all the time that if something doesn’t look safe, they (crew) gotta come and let me know and I take care of it.

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PIPELINE NEWS March 2011

Oilman of the Year pens his own story Doug Gilby will be feted as this year’s Oilman of the Year at the Lloydminster Heavy Crude Open Bonspiel to be held March 16-20.

Gilby is currently on vacation, but he left behind the following text of his acceptance speech with his career highlights that

can be read right now!

I was raised in a small town, Stoughton, in southeastern Saskatchewan. The town is now enjoying the benefits of being in the middle of the Bakken oil boom which is now taking place in southeast

Saskatchewan.

My father was a bulk oil dealer and a farmer all at once. My first experience of the oilpatch was delivering fuel with my dad to the odd drilling rig. Stoughton had some oil activity dating to the early ’50s.

After completing

Doug Gilby is the Oilman of the Year for the Lloydminster Heavy Crude Open Bonspiel to be held March 16-20.

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25 MILES SOUTH OF SWIFT CURRENT tion was Kindersley. An early recollection that I have of going up to the doghouse on one of the drilling rigs was a picture on the wall and it depicted a fellow that was kind of dancing along and the caption read, “I’m an engineer and I’m here to help you.” Right away I knew I had an uphill battle!

I met some great people there and had a good time that summer, but come fall, I was transferred to Lloydminster.

This was OK since I had a good friend that lived here (Carmen Crossman) and if you know Carmen, you know we behaved that winter and the next summer. ɸ Page B9

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It was hard to define the edge of the shale pit and it also looked very dry so for the first few times the only way I could test the shale for dryness was to step on it. Oops! Many times I went home with shale dried on my pants up to the knees.

The odd time the front end of the Cat dropped in and it would be necessary to have a large winch truck come from Estevan to pull it out. Needless to say, I would not be too popular with the owner of the Cat! After graduating from the U of S, I took a job with Welex which is the electric line division of Halliburton. The loca-

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high school, I went on to the University of Saskatchewan in Saskatoon to take engineering. I received a bachelor of science in mechanical engineering.

During the summers while going to university, I had a job as a catskinner building drilling leases, and after drilling, cleaning them up.

This was good work for building muscle as the Cat had mechanical steering clutches and shuttle gears (no power shift!).

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PIPELINE NEWS March 2011

B9

Lloyd bonspiel Oilman offers reasons to attend

By Geoff Lee Lloydminster – Doug Gilby, this year’s Oilman of the Year for the 44th annual Lloydminster Heavy Crude Open Bonspiel is a shoe-in for the bonspiel hall of fame – if there were such a place!

According to his biography that he left behind for others to read while he is on vacation, Gilby was on a team that actually won the A-event in 2000, giving him that elite curling status.

In his own words, Gilby said of that big moment,

“Curling success has been fairly mixed although in 2000 all the stars lined up and the moon was just right, and I’m not sure what else, but on a team with Ron Nykolychuk, Don Knight and Ernie Dushere, we won the Lloyd Oilmen’s Bonspiel.

Gilby was a co-founder of BAR Engineering Ltd. in Lloydminster in 1981 with Barry Ranger and Ron Wilhelm, and has gone on to form several other companies in the area. ɸ Page B10

Involved in several companies over the years ɺ Page B8 Marg and I were married the following fall. This fall, we will have been married 40 years! Our son Trevor and his family live here in Lloydminster.

In 1973, I accepted a position with Husky Oil in Lloydminster as a production engineer.

During my career with Husky, I had some very interesting projects. I found my way into the thermal group and there I was given the task of looking after running and cementing casing in an expansion of the Aberfeldy Steam project.

In that project, we put the casing in tension so that during steaming the casing expansion would not cause buckling of the casing. Each well had the casing stretched by applying several hundred thousand pounds pull before the cement set up.

Another project still involved with thermal was to set a well for testing insulated tubing.

For this project, we ran several small strings of pipe on the outside of

the casing so that thermocouples could be installed to measure temperature while steaming down the different types of insulated tubing.

In 1981, Barry Ranger, Ron Wilhelm and I struck out on our own forming BAR Engineering. We quickly found that we did not have enough work or deep enough pockets for all three of us.

Ron and I continued on. Earlier we had formed Sona Dyne Services with a partner, Dennis Roth. In 1985 we formed Shield Wireline and then settled in trying to make a living.

During that time the oil industry had many ups and downs and sometimes got quite rough.

In late 1985, we started Casa Oil Ltd. with a number of friends and investors. Casa purchased active and suspended wells from many different operating companies. At peak, Casa had 50 wells. Casa was sold to Bellator (now Baytex) in 1995.

During this period we also partnered with some friends and a com-

pany at Wainwright and drilled several wells. The oilwell ventures ended in 1995.

Bar had started to expand and Ron had headed this up while I looked after Sona Dyne and Shield.

In 1998, we started to put in place an exit strategy for both Ron and I to have more flexibility. In 2000, we invited Neil Noble and Kent Smith to join us as partners. This was a very successful move. Both are great partners and joined us well.

In 2001, Ron passed away with cancer and the three of us carried on. We now have several partners as a continuing exit strategy.

In 2009, Trevor pur-

chased Shield and Sona Dyne and now operates those companies.

Marg and I spent as much time as we like travelling and enjoying grandchildren .

I have spent many years as a member of the Lloyd OTS group and have enjoyed all the friendships and fun with them.

Curling in oilmen’s bonspiels here in Lloyd and around the country has always been a great source of fellowship and fun. Curling seems to bring out the best in everyone, good sportsmanship, good fellowship and lots of fun.

Curling success has been fairly mixed although in 2000 all the stars lined up and the

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moon was just right, and I’m not sure what else, but on a team with Ron Nykolychuk, Don Knight and Ernie Dushere, we won the Lloyd Oilmen’s Bonspiel .

Golfing in oilmen’s golf tournaments in Lloyd and around the area has also provided a great fun and fellowship.

All in all, I have enjoyed being in the oil

industry. I don’t think there were any days that I wished I was in another job or industry. I enjoyed going to work every day that I did.

Again I wish to thank the Lloydminster Oilmen’s Bonspiel Committee for giving me the honour to join all those Oilmen of Year whose pictures hang on the wall at the Communiplex.

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PIPELINE NEWS March 2011

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ɺ Page B9 The full text of his acceptance speech and career highlights can be read in this issue or heard in Gilby’s own voice when he steps up to the podium to accept the Oilman of the Year Award at the mixed banquet at the Stockade Convention Centre.

In the meantime, organizers have determined the 2011 bonspiel will run from March 1620 at the Communiplex, but there could be fewer team entries this year than the target of 96.

A total of 72 teams competed last year, and there should be enough entries for eight flights this year.

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“We are hoping for 96, but we don’t think that is going to happen,” said event chair John Stanyer who notes the committee got off to late start this year.

Stanyer can’t point a finger at just one reason for the trend in declining registrations, but offered a range of possibilities.

“You get a lot of guys that are leaving and guys doing other things and that sort of stuff,” he said.

“I don’t think the economy is too good yet.

I really don’t have an answer. All bonspiels seem to be down.”

Perhaps the best reason for participating in the bonspiel comes from the words of Gilby who writes: “Curling in Oilmen’s Bonspiels here in Lloyd, and around the country has always been a great source of fellowship and fun.

“Curling seems to bring out the best in everyone, good sportsman-

ship, good fellowship and lots of fun.”

This year fees have risen marginally to $440, but Stanyer says that is not a deterrent for registering.

“We had to put it up a little bit this year,” said Stanyer. “We haven’t had an increase for awhile, and I think ice rentals have gone up this year as well.

“I still think we are one of the better priced bonspiels around. Everyone is pretty much $500 and up now. You are guaranteed four games and two breakfasts and the major banquet.”

Stanyer hasn’t curled all year, but he has penciled himself a position with his usual office teammates at Weatherford.

Last year, his team won the E-event which has happened before, but being a former A and Bevent champ puts Stanyer’s foot in that mythical curling hall of fame as well.

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Unity bonspiel hopes to draw a crowd Unity – A party mood is already evident in the lead-up to the 10th annual Unity Oil Persons Bonspiel that goes ahead March 3 to 7.

Organizers are promoting a free 12-can drink cooler bag with each team entry to help mark the anniversary

milestone, and entice more players to the host Unity Curling Club.

“Come on out and have a good time. We’d love to have lots of teams.

Come on out and get a free gift,” said organizing committee member Grant Huber.

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es and very good facilities. We have a Saturday night dance. Everyone comes out and has a good time.”

Toe tapping music will be supplied by Paradise Road, a Saskatoon-based country rock group invited back by popular demand.

“They play all kinds of stuff. They are really good,” said Huber. We had them last year. They play whatever the crowd would like.”

There is still plenty of good cheer being felt at the rink from hosting the 2011 Northern SaskTel Tankard Men’s Curling Championship from Jan. 20-23.

“The Saskatchewan Curling Association was out, and they thought it was awesome facilities,” said Huber of the five sheet arena complex.

“We put in a bid for it. It was a lot of work, but everyone had a good time. It was well run, and I think all the curlers enjoyed themselves.”

Huber expects the positive buzz will carry over to more teams wanting to register for this year’s special anniversary Oil Persons than the 21 teams that competed in 2010.

“We usually phone around to see who is coming back. Word of

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mouth is a lot of it,” he said about marketing the event in the oilpatch.

“I am hoping we do get more teams. We always need more. We can take up to 32.”

Huber plans to curl again with a Diamond Energy team that he helped to win the CEvent last year, but he jokes he is downgrading his aspirations for 2011 to just having fun.

“If we win something, it’s a bonus,” he said noting his work commitments have limited his curling to just one night a week.

Huber is the owner of Huber Machining Ltd. where he has been run off his feet with welding and machining work.

“It’s actually crazy right now,” he said while taking a break from welding a part under one of the town’s snow graders.

“I am starting to see a bit of work from drilling rigs and stuff like that. I am getting it from a bunch of different rigs.

“One welder gets me to do a bunch of work for him. He chases rigs wherever they go. He gets me to do all of his fabrication.”

Asked if a busier oil and gas economy, will translate to more sponsorship donations and prizes, Huber says his committee is hoping for at least the same leave of support as last year.

“It’s hard to tell. You never know. We will have to start banging the bushes pretty soon,” he said.

“This is our 10th anniversary. We are going to give out nicer prizes as bonus gifts for teams that enter.”

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PIPELINE NEWS March 2011

Maidstone March bonspiel on auto mode Maidstone – It seems like organizing the perennial Maidstone Oilmen’s Bonspiel has become as automatic as turning on the arena lights.

Pick a date; rally the organizing troops, chat up the usual sponsors; send out registration forms, and voila – the ninth annual tournament is set to go March 10-13.

The man behind the “Easy Button” approach

is lead organizer Scott Owens, president of the Maidstone Curling Club who says not many changes are needed year to year which makes the task more fun than work.

Owens’ only concern this year is raising the number of teams to 24 that he says “is sort of a magic number” for draws, but he says expect to see three competition events like last year.

Fees are frozen at $300 to entice those extra teams that are missing out on the laid-back atmosphere this bonspiel is known for.

“It’s a small bonspiel compared to Lloyd’s,”said Owens. “It’s a real good atmosphere. Everyone is there to have fun. Everybody kind of knows each other. We have excellent prizes.”

Last year Owens

took home a bag of loot himself as a member of the winning C-event team, and he will back for more in March.

The entry fee includes a guarantee of three games per team, a ticket and a door prize at the banquet held at the Legion Hall, and a sponsored breakfast.

Owens says last year’s Terry Schneider proves the Maidstone Oilmen’s Bonspiel is a relaxed affair as the camera caught him in a stretch before taking to the ice with his L & L OilÀeld team in the 2010 B-Event Ànal won by the Ed Rogez rink.

This year’s bonspiel is March 10-13.

File photo

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banquet entertainer was magician Sean Watson, but this year’s headliner had yet to be picked when he was interviewed in late January.

The fun includes the usual draw to the button for cash prizes and players can pay a fee to enter an auction Calcutta.

All proceeds from the bonspiel are plowed back into improvements at the club.

The most notable improvement this year is the installation of new carpeting and plywood underlay on rink walkways that Owens says were “getting soft.”

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Metal Cladding Many types & proÀles available.

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PIPELINE NEWS March 2011

B13

Estevan OTS bonspiel Mar. 24-27 Welcome Curlers

Darrell Dunnigan of the Epping Energy team releases his rock as he glides down the ice at the TS&M skip Arnold Marcotte throws a rock in the 2010 Estevan OTS Oilmen’s Bonspiel.

D-2 event Ànal at the 2010 Estevan OTS Oilmen’s Bonspiel.

By Brian Zinchuk Estevan – The 52st annual Estevan OTS Oilmen’s Bonspiel is slated for March 24-27.

The event will have 64 teams, kicking off on Thursday, Mar. 24. The event is the culmination of the oilmen’s bonspiel season in southeast Saskatchewan.

Traditionally the banquet has been held on the Friday of the bonspiel weekend, but this time around, it will take place on Saturday, March 26. A conflict with the city’s fundraiser banquet for its nearlycompleted Spectra Place events centre meant the OTS bonspiel banquet

had to move, according to OTS president Jeff Mosley.

Last year, Pure Energy beat out Fusion 7-1 in the fifth end to win.

Duane Lamontagne was

the victorious skip. His team was made up of lead Jim Blanke, second Michael Bunz and third Aaron Lamontagne.

More information, including online regis-

tration, can be found at www.estevanots.com.

Kyler Dutka, left, and Tatiana Dutka, cheer on their dad, Trevor Dutka, at the 2010 Estevan OTS Oilmen’s Bonspiel.

Welcome Curlers

Welcome Curlers!

Welcome to the Energy City

Enjoy your stay Percy H. Davis Customs Brokers Ltd. North Portal • Phone: 634-5454

Midale Carlyle Brent Lawrence: Travis Hutt: 458-2811 453-4401 Fax: 458-2813 Fax: 453-4402 (A Division of Total Energy Services Ltd.)

HEAD OFFICE - ESTEVAN 306-634-6494 www.tsmsupply.com

Best of luck curling, oilmen!

T. K. Trailer Sales • Kevin Keating • Leonard Thieven

Manor, Sask.

Ph: 1-306-448-2260; Cell: 1-306-575-7116

www.pjtrailers.com

Have Fun Curling! lancew@aspentrailer.com www.aspentrailer.com Aspen Custom Trailers 6017-84th Street S.E. Calgary, AB T2C 4S1

Lance Wotherspoon Regional Sales Manager

[T] 403 236 2244 [F] 403 236 8829 [C] 403 813 6319 [Toll Free] 877 236 2244

B14

PIPELINE NEWS March 2011

Good Luck WELCOME TO Curling!

THE ESTEVAN OTS OILMEN'S BONSPIEL

Have Fun in Estevan, Curlers!

“Where Experience and Dependability Are Just a Phone Call Away”

PH: 306.848.0022 SWEEP OILMEN!

Good Luck Curling Oilmen!

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410 5th Avenue Estevan, SK • 634-5778

Southern Bolt Supply & Tools Ltd.

Phone: (306)

634-3616

Phone: (888)

835-0541

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Welcome to the Energy City

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

Best of Luck!

Highway 39 East, Estevan Phone: 637-2060 Fax: 637-2065

Good luck & have fun!

1302 5th Street, Estevan • 634-3581

Best of luck curling!

BRENT GEDAK WELDING 126 Lamoro St. just off Hwy 39 W. of Estevan

WWW.ABSOLUTELOCATING.COM

Cell (306) 461-9946 www.brentgedakwelding.com

OXBOW LOCATION OFFICE: 306.483.2194 • CELL: 306.483.7897

OfÀce: (306) 634-5150

Good Luck Curlers!

Welcome to the Energy City!

Estevan and Weyburn locations

3902 - 75th Ave. Leduc, AB.

301 Kensington Ave. Estevan, SK. Phone: 634-7892 • www.ipc-sk.ca

#3 Breeze Street, Estevan, SK OfÀce: 306-634-0070 • Fax: 306-634-0071

Senchuk

Ford Sales Ltd. 118 Souris Ave. N. Estevan •

Best of Luck Curling!

634-3696

Toll-Free: 1-877-880-9094 (Sales) • 1-877-883-2576 (Service) E-mail: sales@senchuk.com www.senchukford.ca

Welcome to the Energy City, OTS!

Mike Brasseur Ph: 634-4554 • Cell: 461-8111 • www.bigcountryenergy.com

Visit our website at www.carsonenergyservices.com or call us at (306) 487-2281

Have Fun Guys!

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

PIPELINE NEWS March 2011

Sweep Oilmen!

Have Fun!

WELCOME TO THE ESTEVAN OTS OILMEN'S BONSPIEL

WEYBURN, SK • 306-842-8901 ESTEVAN, SK • 306-634-8912

Hurry Hard!

www.annugas.com COMPRESSION

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GOOD LUCK CURLING!

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Canada's leading distributor of industrial, Ă eet and safety products.

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#6 Mehler Drive, KRJ Industrial Park: 421-9576 or 421-2244

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Hurry Hard!

Have fun curling!

L & C Trucking

321 Imperial Avenue, Estevan Phone: 306-634-5304 Fax: 306-634-5887 www.estevanmeter.com

Phone: 634-5519 or 634-7341 24 Hwy. 39 E. Estevan

Have Fun!

Three Star ENVIRONMENTAL

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Good Luck Curling!

OIL TREATING COMPOUNDS ESTEVAN OFFICE

CARLYLE OFFICE

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Equipment Rental & Motor/Pump Repair

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B15

134 4th Street

637-4370

OXBOW 483-2826

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CARLYLE 453-2262

REDVERS 452-3216

GESCAN Division of Sonepar Distribution Inc. Box 1518, 101 6th Street, Estevan, Saskatchewan S4A 2L7 Tel: (306) 634-8655 Fax: (306) 634-8028

Welcome Curlers DISTRIBUTION INC. 315A Kensington Avenue Estevan, SK Phone: (306) 634-2835 Fax: (306) 634-2797 www.apexdistribution.com

B16

PIPELINE NEWS March 2011

WELCOME TO THE ESTEVAN OTS OILMEN'S BONSPIEL

Welcome Oilmen!

Good Luck!

5 STREET Autobody 634-7101 th

601 - 5th St., Estevan, Sk.

Corner of Kensington Ave. & King Street, Estevan • Phone: 634-3783

Serving the Energy City for 50 Years.

Welcome To The Energy City!

Enjoy the Bonspiel

Welcome Curlers!

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

Have fun in Estevan, oilmen!

DON’S TIRE SHOP

Best of luck curling, Oilmen!

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

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

101 4th St., Estevan • 634-3637

Welcome to the OTS Curling Bonspiel!

Welcome Curlers & Good Luck!

Prairie Mud Service “Serving Western Canada With 24 Hour Drilling Mud Service” Calgary Sales OfÀce: Head OfÀce: #1420 717 7th Ave. S.W. 738 6th Street Calgary, Alberta Estevan, Sask.

1-403-237-7323 Phone 634-3411 or 634-7361

Prairie Petro-Chem Oil & Gas Treating Compounds

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

“We Never Mistreat Oil”

Cell: 421-3726 or 421-3676

Head OfÀce: 738 - 6th St. ESTEVAN, SK. S4A 1A4 Phone (24 Hr.): 306-634-5808

Welcome OTS!

Welcome OTS Have Fun Curlers!

Curlers!

For your Industrial Coveralls...

We

• Sell them • Clean them

• Pick Up & Delivery is FREE

See us for your custom laundry www.pennwest.com 311 Kensington Avenue, Estevan • 634-1400

Welcome Oilmen!

“We Dispatch for the Oilpatch”

738 5th Street, Estevan Phone: 634-3522

Electrical Construction & Service Lampman 487-7770

Estevan 637-2512

Welcome to the Energy City & Good Luck Curlers!

DOREEN EAGLES, MLA ESTEVAN CONSTITUENCY OFFICE

#1-1104 5th Street, Estevan Phone: 1-306-634-7311 Toll Free: 1-866-284-7496

204 Souris Avenue North, Estevan

634-4417

Have fun in Estevan, Oilmen!

Centrifuges • EZ Load Hydra Lift System • Polymer Tanks • Shale Bins

PIPELINE NEWS March 2011

Good Luck Curling Oilmen!

Well Servicing E bbennett@suncountrywellservicing.ca F 634-1200 • Estevan, SK

C 421-3904

:HOFRPH &XUOHUV To us, your image is everything!

405 Kensignton Ave., Estevan, Sk. 634-9846 • www.crownad.ca E: promo@crownad,ca • E: signs@crownad.ca

Best of Luck Curling, Oilmen!

Have Fun Curling!

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

www.prairiewestern.com

Welcome Curlers!

WOOD COUNTRY ESTEVAN MCLEAN TISDALE Ph: (306) 634-5111 • Fax: (306) 634-8441 407 Kensington Avenue, Estevan • www.wood-country.com

Good Luck Curlers!

B17

GOOD LUCK CURLERS! LECLAIR TRANSPORT Lyle Leclair - Cell: 306-421-7060 General OilÄeld Hauling

Welcome to the OTS Bonspiel SUN VALLEY LAND LTD. Offering Complete Land Services Surface & Mineral Land Acquisitions 306 Wicklow Centre 1133-4th Street, Estevan, SK

634-6684

Best of Luck!

Cordell Janssen District Manager Downhole

1120 6th Street, Estevan Ph: 634-2255 • Toll Free: 1-800-214-8848 choice.srv@sasktel.net

Welcome Curlers and Good Luck!

CLIFF NANKIVELL Trucking Ltd.

OIL HAULING 462-2130

Water & Crude Vacuum Truck Service

Fax: 462-2188

24 Hour Service Kisbey & Lampman

Good Luck Oilmen!

3D

Maintenance

Larry Allan

93 Panteluk Street, Kensington Avenue N, Estevan, SK

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

PHONE: 306-634-8828 • FAX: 306-634-7747

TOLL FREE 1-888-532-5526 Creelman, SK

cordell.janssen@nov.com • www.nov.com

Best of luck curling!

TERRY DODDS (24 hrs.) (306) 634-7599 Cell. (306) 421-0316

Welcome to the Energy City!

Fun Haverling!

Cu

M.E.T. OILFIELD CONST. LTD. “All Your Construction and Maintenance Needs” SPECIALIZING IN: ENGINES, PUMP UNITS, UNIT INSPECTIONS, PIPE FITTING, TREATERS AND PRESSURE TICKET WELDING

Box 1605, Estevan, Sk. S4A 2L7 Cell. (306) 421-3174, (306) 421-6410, (306) 421-2059 Fax: (306) 634-1273

HAVE FUN IN ESTEVAN OILMEN!

Cell numbers: 483-8024, 483-7024, 483-8148 Home: 486-2143 • Fax: 486-4855

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634-6456 • 1-800-DAYS-INN (329-7466) 1305 9th Street, Estevan • HWY 47 N • www.daysinn.ca

Welcome Oilmen!

KENDALL'S AUTO ELECTRIC LTD. 1020 6th Street, Estevan • 634-2312

B18

PIPELINE NEWS March 2011

Weyburn bonspiel attracts 20 teams

By Brian Zinchuk Weyburn – Prairie Petro-Chem was the victorious rink in the Weyburn Oilmen’s Bonspiel on Jan. 28.

A-event winners Prairie Petro-Chem included skip Byron

Moffatt, third Danette Tracey, second Heather Gordon and lead Darren Woodard.

Caprice Resources Ltd. won the B-event.

The team was made up of skip Michael Mainil, third Bernie Bjorndalen,

second Jim Blanke and lead Trevor Pandechuk.

In the C-event, the winning team was Jerry Mainil Ltd.. It was skipped by Kim Brady.

Jeff Mosley was third, with Calvin Tracey as second and Darcy Cre-

Export Seminar For the OilÀeld Industry The Saskatchewan South East Enterprise Region (SSEER) is pleased to host a seminar geared speciÀcally to oilÀeld businesses interested in exporting their products and services.

Hear from Saskatchewan’s exporting experts the Saskatchewan Trade & Export Partnership and also local industry leaders sharing their experiences in out of province markets.

Topics discussed in the morning seminar will include: 1. What are the basics to exporting a product or service?

2. What oil and gas products and services can be supplied to other countries?

3. What oil and gas products and services are in the demand internationally?

4. If a company tries to export how could it promote itself?

5. What programs and services are available at STEP? The seminar will conclude with exporter panelists from South East Saskatchewan sharing their experiences in out of province markets followed by a Q&A period.

tin as lead.

“We had 20 teams in the bonspiel and were hoping for 24,” said Michael Mainil, one of the organizers. “I think that with the oilpatch as busy as it is that it was just hard to make time for the bonspiel. We did have a great response from our sponsors and we appreciate there support. We are already looking forward to next year’s spiel, scheduled for January 20 and 21.”

Jeff Mosley, left, and Calvin Tracey sweep for the Jerry Mainil Ltd. team.

er Service Ltd. Curly’s Pick Mark T. (Curly) Hirsch

Date: Wednesday April 13th, 2011 • Time: 8:30 a.m. to 11:30 a.m.

Location: Stoughton Legion Hall (Hwy #13, southwest side of Stoughton) Registration: $20 per person (includes continental breakfast) DEADLINE FOR REGISTRATION: APRIL 11, 2011 For more information about this event, contact SSEER at (306) 636-2830 REGISTRATION FORM Company Name: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Mailing Address: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ __ _ _ __ _ _ _Postal Code: _ _ _ _ _ _ _ _ _ _ _ Telephone: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Email: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Contact Person: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Payment Enclosed: $20 x _ _ _(number of people attending) = $ _ _ _ _ _ Forward Registration Form with payment to: SSEER, 322 - 4 Street, Estevan, SK S4A 0T8

1595 Dieppe Cres.

Estevan, Sask.

S4A 1W8

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

Kelly Brady watches the rock come down the ice.

In 2009 Southern Plains Co-op Paid Back $ 939,897.00 To It’s Members

Do you know what you could get back supporting your local Co-op?

All Co-op Oil is backed by Federated Co-operative’s Limited Guarantee!

For more information call 637-4330

SOUTHERN PLAINS CO-OP PETROLEUM/AGRO CENTRE Come & see us for all your DEF Requirements!

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Monday - Saturday 8:00 a.m. - 12:00 noon • 1:00 - 5:00 p.m.

PIPELINE NEWS March 2011

B19

Bill Armstrong skipped for the BJ Services team.

Wil-Tech takes Oxbow 50th bonspiel Winners of the Oxbow Oilmen’s 50th Anniversary Bonspiel which ran Feb. 10-13 were the Wil-Tech Industries team of Estevan. From left, they are Andy Morris, skip; Jim Wilson, third; Jason Johnson, lead; and Kelly Schnell, second.

Photo by Paula Spearing

Oxbow – Wil-Tech Industries of Estevan won the Oxbow Oilmen’s 50th Anniversary Bonspiel which ran Feb 10-13.

The team was made up of Andy Morris, skip; Jim Wilson, third; Kelly Schnell, second; and Jason Johnson, lead.

Richard Lamontange, treasurer of the organizing committe, said the event went really well. “We’re really happy. Thirty-two rinks was the goal.

It was good.”

They achieved that goal, and were even able to put some of the returning older curlers on some rinks as a fifth man.

“This being our 50th, look at all the things we’ve been able to support over the years,” he said, listing the rink, pool, golf course and new school as some of the beneficiaries. Who will benefit from proceeds from this year’s event has not yet been determined.

Most of the participants were from southeast Saskatchewan, although a few came from as far as Calgary.

Local band Jimmy G and the Cable Guys played at the banquet.

The next event for the Oxbow oilmen is the annual golf tournament, held the third weekend in August.

They traditionally sell out, at the maximum of 108 golfers.

Prairie Gold Pumpjack Services Skip Jason Brandon has an intense look on his face as he eyes up the next shot.

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(A Division of Total Energy Services Ltd.)

CARLYLE Ph: 306•453•4401 Fax: 306•453•4402 carlyle@totaloilÀeld.ca

B20

PIPELINE NEWS March 2011

The acquisition of Eagle Drilling Services Ltd.

by CanElson Drilling Inc. was completed on Jan. 31. This is Eagle Drilling’s Rig 6 working in January, 2010.

File photo

“Timber!”

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CanElson completes Eagle Drilling acquisition (Nickle’s Daily Oil Bulletin) Calgary, Carlyle - CanElson Drilling Inc. announced on Jan. 31 it has closed the previously announced acquisition of Eagle Drilling Services Ltd., a private corporation which owns and operates drilling rigs in the Bakken area of southeast Saskatchewan and southwest Manitoba.

The company has taken up and paid for 9,323 Eagle shares that were tendered to its offer to purchase dated January 13, 2011, representing 100 per cent

of Eagle’s outstanding shares. An aggregate of 9.88 million common shares of CanElson were issued and $19.7 million of cash paid to the shareholders of Eagle pursuant to the offer.

CanElson now has 60.18 million common shares issued and outstanding and approximately $46 million of gross bank debt after completion of the acquisition.

“We are pleased to add Eagle’s top quality crews, operations personnel and modern drilling rig fleet to our group and they will form a key component of CanElson’s future growth plans for expansion in Saskatchewan, Manitoba and North Dakota,” said CanElson president Randy Hawkings in a news release.

With the addition of the eight Eagle rigs to CanElson’s existing Canadian fleet, 100 per cent of CanElson’s owned drilling rig fleet is ultra-heavy, small footprint telescopic double drilling rigs rated greater than 3,500 metres with an average age of less than three years designed for horizontal and resource play drilling. ɸ Page B21

PIPELINE NEWS March 2011

B21

Derrick Big Eagle becomes vice-president, business development, with CanElson Drilling Inc. File Photo

Day

Construction Ltd. Lease Construction Lease Restoration • Mulching Carnduff, SK.

Phone: (306) 482-3244

CanElson ɺ Page B20 By the end of the first quarter, CanElson will operate a combined rig fleet of 27 (net owned 23) rigs.

With the closing of the accquisition, CanElson has increased its available credit facilities from $40 million to approximately $73.4 million. The credit facilities consist of: a $5 million operating facility; due on demand; a $13.4 million three year term leasing arrangement; and a $55 million committed 364 day extendible revolving credit facility.

The $55 million committed facility, unless otherwise extended on June 30, 2011, is payable in equal repayments of 1/36th of the outstanding balance monthly for two years, with the remaining outstanding balance payable in full at maturity.

With the closing of the acquisition, CanElson announced the appointment of Derrick Big Eagle, a founder of Eagle, as vice-president, business development.

Big Eagle has over 25 years of drilling experience in southeast Saskatchewan and was instrumental in growing Eagle over the last five years.

Big Eagle has been granted 150,000 stock options at an exercise price of $4.76 per share.

The options will vest as to one-third one year from the date of grant, onethird two years from the date of grant and onethird three years from the date of grant with

each respective onethird expiring on the date that the subsequent one-third vests such that the final one-third of the options expires four years from the date of grant.

The total number of options outstanding is 3.1 million with a weighted average exercise price of approximately $3.45 per share.

• Bulk Petroleum & Propane • Cardlock • Propane Accessories • Lubricants

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ESTEVAN PLASTIC PRODUCTS LTD. "Custom Vacuum Forming and Fibre Glass Specialist" Phone: (306) 634-6400 • Toll Free: 1-888-638-6433 • Fax: (306) 634-7828 P.O. Box 950, Estevan, Saskatchewan, Canada S4A 2A7 • Email: eppl@sasktel.net • http://www.estevanplastics.ca

B22

PIPELINE NEWS March 2011

Dragon’s Den entrepreneurs make a deal

Glen Mitchell of Flint Energy Services, left, talks to Channing McCorriston, middle, and Bryan McCrea, right, about the possibility of a camp for Estevan made of shipping containers.

New Location To Serve You Better! we’ved! move

TO

516 nesbitt drive (Behind Power Dodge)

Canada's leading distributor of industrial, Áeet and safety products.

By Brian Zinchuk Estevan – The day after 3twenty Solutions Inc. of Saskatoon appeared on CBC’s Dragon’s Den, and after a feature article appeared about them in Pipeline News, Glen Mitchell was giving them a call.

Mitchell is the district manager of Flint Energy Services Ltd.’s new Estevan location.

A week later to the day, two of the three partners in 3twenty were in Estevan, working on a potential deal.

3twenty specializes in converting shipping containers into modular structures like min-

ing camps and site offices. Mitchell is looking closely “We’re in heavy negotiations right now,” said Mitchell, who invited Pipeline News to hook up with 3twenty while they were down.

“We’re taking a pitch to the leadership team in Sherwood Park next week.”

Life has become very hectic since the three entrepreneurs, Evan Willoughby, Bryan McCrea and Channing McCorriston impressed the heck out of the Dragons in the Feb. 2 episode. They got three possible offers, but even-

- OilÀeld Maintenance - Service Crews - Pressure Welding - Pipeline Construction - Battery Construction - Rent or Sell New & Used Equipment

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Randy: 634-5405 - Cellular 421-1293 Darcy: 634-5257 - Cellular 421-1425 • Fax: 634-4575

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tually chose to go with W. Brett Wilson’s offer.

They sought $115,000 for 25 per cent of the company, giving a total valuation of $460,000 for the company. The Dragons, used to sky-high valuations for companies with no sales, were impressed not only with the valuation, but the fact they had $70,000 in sales in their first month.

Dragon Robert Herjavec said he would meet their offer, but they were likely pursuing Wilson’s involvement, so he was out. Dragon Kevin O’Leary offered $115,000 for 50 per cent.

“At that offer, we delightfully decline,” McCrea told O’Leary on air.

“Bryan, you’re great.

You just told him to screw off in such a nice way,” Herjavec said.

“Okay, Kevin, screw off,” McCrea said, to the hoots of the other Dragons. ɸ Page B23

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PIPELINE NEWS March 2011

B23

Willmar Waste Management Facility Location - 11-36-5-4-W2 • Disposal • Waste Processing • Hot and Cold Fresh Water • Heated Saline Frac Water Supply Channing McCorriston, left, and Bryan McCrea, right, talk to Glen Mitchell of Flint Energy Services about their innovative use of shipping containers for accommodations.

Photo by Brian Zinchuk

Wilson backs Saskatoon trio ɺ Page B22 Dragon Jim Treliving was also interested.

He had made a previous deal for 50 per cent at $115,00 for another company, and sold it for $65 million. “We did OK.” Wilson gave $120,000 for the 25 per cent. “Brett, we would love to accept your offer,” he said.

Since then, they’ve had 30 to 35 containers converted. “We’re building North America’s first shipping container mining camp,” McCrae told Pipeline News while in Estevan with McCorriston.

“We’re pretty established in mining,” McCrea said. They have a 22 person camp, composed of 19 containers, going

to northern Saskatchewan.

They are now pursuing the oil and gas industry.

After appearing on Dragon’s Den, they’ve had hundreds of calls, e-mails, and Facebook messages.

“I think 25 per cent are people trying to sell us stuff, another 25 per cent are asking about houses. Half have business potential,” McCrea said.

“Going on the Den was terrific exposure for us,” he said. They’ve appeared in the National Post, StarPhoenix, and Pipeline News. “It just keeps going.”

They got the partner they wanted, too. “Our focus was on Brett,” he said.

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The deal was done in May. Wilson came to Saskatoon to spend the day with them and watch the Feb. 2 episode air. Five hundred people packed Louis’ Pub at the University of Saskatchewan for the screening.

What most people may not realize is they already had an offer as good as Wilson’s before even making it to Toronto. The group did a practice pitch, and got an offer for the money they were looking for.

They turned it down.

“We’re at full capacity right now. We’re booking full production until spring,” McCrea said. They have nine people on staff, plus five or six subcontractors.

“We’ve got access to capital. We’re going to

grow with the industry and scale up,” he said.

They can do six bedrooms a week right now, and want to bring that up to eight or nine soon.

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B24

PIPELINE NEWS March 2011

An oil company for the fun of it Dennis Day will jump into a truck, in this case, a recently-acquired tandem steer bed truck, and Àll in as needed for rig moves. Here, another Fast Trucking Service Ltd. unit passes him on the way back to Carnduff.

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Carnduff – Perhaps there’s something in the whimsical nature of its name that belies the purpose behind Carnduff-based Runcible Energy.

Owner Dennis Day said that only two people know the meaning behind the name of the small, privately-held junior firm, although lots of people ask about its origin.

For the record, Wikipedia says, “runcible is a nonsense word invented by Edward Lear. The word appears (as an adjective) several times in his works, most famously as the “runcible spoon” used by the Owl and the Pussycat.

The word ‘runcible’ was apparently one of Lear's favourite inventions, appearing in several of his works in reference

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to a number of different objects.”

It’s since been associated with a utensil that’s a cross between a fork and a spoon.

Thus, a nonsensical word may have something to do with Day’s purpose behind starting the oil company. “That oil company, that’s what we do for fun,” he says, taking off his fireretardant coveralls.

Day’s a man constantly on the go. He’s the general manager of the Fast Trucking group of companies, a group whose list keeps getting longer and longer. Last spring they added Pierson, Man., based fluid hauler Forsyth Trucking.

The day Pipeline News came to visit, Environment Canada was putting out warnings for wind chills running in the -37 C range and colder. Yet there was Day, driving a recently-acquired tandem

steer bed truck on a rig move. The sheet printed the night before for whom would be doing what on the next day’s rig moves came up a few drivers short, so Day said he would drive and was out there, moving rigs. It’s something he expects to do a lot of before breakup, at a time when Saskatchewan’s drilling rig fleet is running at 83 per cent capacity and they’re moving an average of six rigs a day.

It’s not common to see the general manager of a company with 250 employees and numerous divisions getting his hands dirty like that, but that’s the way Dennis Day rolls. “It ain’t the nicest day to go on a rig move,” he said. “I do that to keep our customers looked after.

“I can go to just about any oil well and tell you what rig drilled and when it was.” ɸ Page B25

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Manitoba a main focus ɺ Page B24 In his family-owned company, headed by patriarch Tony (now, at 78, for the most part retired), along with Tony’s wife Vi (who still puts in 16 hour days) and Dennis’ brother Larry, who sorts out the dispatch, they all are deeply involved. Last fall Tony and Dennis took both ends of a derrick move, with Tony’s grandsons acting as their swampers.

The Fast Trucking group of companies includes the main operation – Fast Trucking Service Ltd., the largest rig moving outďŹ t in southeast Saskatchewan, Day Construction, Estevan’s Sam’s Trucking (another rig mover), service rig outďŹ t General Well Servicing, Virdenbased Fontana Trucking, a vac unit outďŹ t known as The Competition, and now Forsyth.

Asked how he came about owning an oil company, Dennis said, “I was out running a service rig one day and thought, ‘I’m going to start my own oil company.’�

That was in 2002.

Since 1986, Tony Day has owned TDL Petroleums, a small, privately-held oil company.

TDL and Runcible will often partner on drilling projects, and now have a combined production of about 200 bpd. “I’ll ask if he want’s to go in, he’ll ask if I go in,â€? Dennis said of Tony. “We just ďŹ nished drilling a couple of horizontals in southwest Manitoba. We’re going to do another two,â€? he said.

There are plans for further drilling at a later time.

While Runcible’s holdings include production around Glen Ewen, much of their current focus is in southwest Manitoba. Land prices are a driving factor. In 2002, they might have been paying $10,000 to $50,000 per quarter for mineral rights in Saskatchewan. Now, it’s

more like $50,000 to $300,000. “It’s a lot harder to buy something. You real-

ly want to do your homework,� he explained.

That said, one thing they don’t do is seismic surveying. “We don’t do seismic. Never did 10feet of seismic.�

Instead, they rely on existing well logs in the area, “And a hunch.� “We’ve done a lot of our business on hunches and sticking our necks out.�

Pointing out they now have about 250 employees, that says enough in itself.

The attraction of southwest Manitoba has been with the Days for several years, long before it graced the main web page of TheGlobeandMail.com as one of the hottest plays in Canada.

Tony Day started assembling land there several years ago. “People said, ‘You’re crazy,’� Dennis said.

Asked if Manitoba’s drilling incentives played a factor, Dennis said, “That’s for Crown land,

not freehold.�

The vast majority of land in the oil play regions of Manitoba is freehold.

Land prices and royalties in southwest Manitoba have increased quite a bit, he added.

Building batteries in Manitoba is problematic, he said. “It’s a real problem to get rid of water and oil there,â€? he said. He makes use of a battery they have at Glen Ewen, trucking the uids to there. “We’ve had some wells down there since the early ’90s.â€?

Having a diverse array of oilďŹ eld services companies helps when it comes to running your own small oil company. “Using our own services, we can probably save about 30 per cent of the drilling cost,â€? Dennis said.

B25

Dennis Day, right, confers with transmission specialist Roy Annetts, mechanic.

Photo by Brian Zinchuk

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B26

PIPELINE NEWS March 2011

Import Tool Corp. grows in southeast

Terry Ostapovich holds a semi-rigid centralizer. Behind him, Import Tool Corp.’s new shop is under construction.

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Estevan – Import Tool Corp. has been in Estevan for a little over a year, and the company is already working on new digs.

“We were here briefly in the ’60s,” said Terry Ostapovich, general manager for Saskatchewan and Manitoba, based at the Estevan location and one of the partners in the firm. “We opened this building in October 2009. We hired our first employee in December 2009. Now there’s 15.”

The company specializes in the hardware needed for cementing wells. Their products include liner hanger systems, liner top completions and packers, heavy oil (in-situ/SAGD) systems, large diameter casing cementing, stage cementing tools, external casing packers, float equipment, centraliza-

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Import Tool has a significant presence offshore Canada’s East Coast, providing tools and services to Hibernia, Terra Nova, Sable Island and others. They also work in heavy oil, deep foothills, in the far north and in unconventional gas.

“We sell float equipment, centralizers, liner hangers, and liner accessories,” Ostapovich said, offering a partial list.

A growing number of companies are now using cemented liners in their horizontal well completions, particularly in the Bakken and Waskada plays. But they’re not for everyone, or every purpose, Ostapovich said.

Liners can be installed and cemented

with either a service rig or drilling rig.

“We’ll run cemented and non-cemented liners. We do a lot of thermal liners in the heavy oil/SAGD area of northern Alberta.”

Import Tool has a field service rep on site whenever they run their tools.

Indeed, last month when Pipeline News visited a cement job near Stoughton with Sanjel, it was Import hardware being used, including the cement head used to connect the cement truck to the well.

Move to Estevan “We worked down here forever. It just never warranted a facility before,” Ostapovich said.

They came to Saskatchewan for its growth potential. “We want to be part of the community, and be a company that has a local presence,” Ostapovich said. ɸ Page B27

On the gravy train Estevan – “After being in the field so long, this is the gravy train,” said Gordon White, shop foreman for Import Tool Corp. in Estevan.

“I was in Alberta for 25 years, 17 of them running power tongs.

This is like a retirement job for me.”

White was the first

person hired when Import Tool set up shop in Estevan a little over a year ago. For him, coming back to southeast Saskatchewan was coming back home.

He graduated from high school in Oxbow in 1982, and has spent most of the time since then out west.

“Once I sold my power tongs, I bought a houseboat to guide fish,” he said. White soon found out that plenty can go wrong on a boat, and had some “rough experiences.” One involved bailing.

Over the years he made a big circle through northern Alberta, “trying to stay alive.”

He has a house in Grande Prairie he’s trying to sell.

He came back to Saskatchewan for family.

“My mom and dad are living near Glen Ewen,” he said.

White returned, and has since bought eight parcels of property in the village. “One day, I’m going to own that town,” he said with a smile.

One of those properties includes an older house he’s fixing up. ɸ Page B27

PIPELINE NEWS March 2011

B27

All about the employees ɺ Page B26 Import Tool Corp. was founded in 1952 by Don Wilkin. In 1988 it was bought out by employees and managers, and had five partners. Ostapovich joined in 1997, and is now a full partner. There are now eight partners.

He used to work on the operations side in Edmonton, where he focused on heavy oil.

Ostapovich and his family – wife Kimberley, son Dawson and daughter Kennedy moved to Estevan in 2010. “We absolutely love the community. It’s great, beyond expectations.

“The skill we found here is equal to none.”

“We’ve been watching the Bakken for a long time. We’ve been doing cement liners down here for a long time. We were somewhat surprised by the demand.”

Import recognized early on housing would become a growing issue in Estevan. Around the same time they secured their initial shop, they also bought a large house in a nice area of town. While employee accommodations with some companies might be in old houses or apartments, this was far from the case.

Back home again

“We purchased a staff house on Newcombe Drive. It’s a nice, five-bedroom,” Ostapovich said.

“We’ve got to put a roof over their heads,” he said.

In the meantime, a new roof is going up for the company. A location is being built next door to their current facility which will dramatically increase their floor space. The new shop will have three bays and be 7,200 sq.-ft. in size. The office area will be two floors.

“We’ll have two overhead cranes, paint booth, several service vices,” he said.

“We going to have a brand new bucking machine, from Wil-Tech Industries in Estevan.”

The building is going up quickly. “We’re anticipating being in the building in April,” he said.

Asked if they will be hiring more people, Ostapovich replied, “The infrastructure will dictate that – the coil tubing, cementers, drilling rigs. If they can get more people, we’ll need more people.”

Company-wide, they have about 100 employees.

“It’s the staff. You can have the best tools on the planet, but if you don’t have great people to run them, it’s no good. Once that tool hits his truck and is out at the rig, it’s out of my hands,” Ostapovich said.

ɺ Page B26 He would like to revive some of the community functions he remembers from the past, like sporting events. Already White’s got his eye on securing a new fire hall for the volunteer fire brigade, which he has joined.

“It’s home. A lot of my friends have gone and come back. This is the hottest area.”

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B28

PIPELINE NEWS March 2011

New shop and supply store for C & N OilÂżeld Operations manager Kris Carley, left, and C & N Supply manager Colin McInnes can be found in the new C & N Supply store.

CarnduďŹ&#x20AC; â&#x20AC;&#x201C; C & N OilďŹ eld of CarnduďŹ&#x20AC; â&#x20AC;&#x2122;s growth trend led to one logical conclusion: not only did they need a much larger shop, but a supply store to go with it.

The company has been around for 24 years, founded by Wayne Carley and his brother-in-law Doug Needham. Carley bought out Needham two years ago. While he still owns and operates the business, his son Kris now acts as operations manager and looks after things when Wayneâ&#x20AC;&#x2122;s in warmer climates. Krisâ&#x20AC;&#x2122;s wife Gayla is the oďŹ&#x192;ce manager.

The new facility is north of the highway, on the west side of CarnduďŹ&#x20AC;, in a much more visible location to their old facility south of the tracks. â&#x20AC;&#x153;We dabble in a bunch of things,â&#x20AC;?

Kris said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got crew trucks, steamer trucks, pressure trucks, backhoe, BobCats ...â&#x20AC;? he listed.

The company is essentially split between its maintenance side and the chemical side. â&#x20AC;&#x153;We circulate, deliver and batch chemicals into wells,â&#x20AC;? he said. â&#x20AC;&#x153;We got into the chemical side 20 years ago, and it snowballed from

there. We do everything but sell the chemical. From one day to the next, we might be hauling chemical for four or ďŹ ve diďŹ&#x20AC;erent companies. â&#x20AC;&#x153;Corrosion and wax inhibiting is what we do a lot of.â&#x20AC;?

They started with half-tons, and now use pressure trucks.

The company also build cattleguard fence known as Tech-fence, and Texas gates. Itâ&#x20AC;&#x2122;s an eďŹ&#x20AC;ort to diversify for slower times. They also carry double wall tanks.

The company had outgrown its old building, and built a new one in 2010.

They opened the doors to it on Oct. 15. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s 11,300 sq.-ft., with 3,000 sq.ft. of oďŹ&#x192;ces and a conference room, which is a big step up,â&#x20AC;? Kris said. The old location, now leased to a vac truck outďŹ t, was 3,200 sq.-ft. with 250 sq.-ft. of oďŹ&#x192;ce space.

The new oďŹ&#x192;ce area is so large, it echoes. Kris jokes about putting in a few plants to deal with the echoes.

Thereâ&#x20AC;&#x2122;s room and wiring for additional desks as the need requires. ɸ Page B29

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B29

'Convenience store' for Carnduff area ɺ Page B28 Supply store “We now have the supply store, which is the biggest addition,” he said.

It opened on Oct. 15.

“It’s something we’ve bounced around for years,” he said when asked about the impetus for the store. “For our own consumption, there was no supply store in Carnduff for our own supplies, so we were constantly going to Oxbow to pick them up.”

Even simple things like fittings required a run to Oxbow.

“When we decided to put up a new building, the supply store was the first thing we decided to put in.”

The name of the supply operation is C & N Supply. One person works in the supply store, but they have 24-hour on call coverage for it, along with the rest of the business.

One company had looked into leasing the space. “They backed out, and we looked at going

on our own as an independent,” Kris said. That was the result.

“There are six oil companies with field offices in Carnduff,” he said, listing Petrobakken, Zargon, Husky, ARC Resources, Penn West and Crescent Point. “Numerous operators live in town.”

“Things have been great so far,” he said.

“We’re not going after the big stuff. We’re looking to be the convenience store of supply stores. Guys will pay a dollar or two more on a valve it they save 45 minutes to drive.

The guys who have been coming in, their biggest responses is, ‘Wow, this is really handy.’”

“We’re not even four months in. We’re definitely learning, seeing what goes out the door, what isn’t. As our buying power increases, our prices drop.”

“Our numbers exceed what we were expecting. We’re exceeding our goals we put forward,” Kris said.

The supply store’s

symbiotic relationship with the maintenance side is working out well.

“Probably 50 to 60 per cent of what goes out the door is going out on one of our crew trucks.

Our crews are putting a lot of stuff on.”

He likens the operation to something of a one-stop shop.

Asked if they hotshot items as well, he said, “We’ve got two 30-foot goosenecks. We can hotshot, but it’s not something we do a lot of.

Expansion The price of oil is driving the growth, he said. “Our company is not tied to drilling. Everything we do is production related. It’s repetitive business, done every month. We don’t slow down for breakup,” Kris said.

“The biggest thing for us is the batching. They found corrosion in Bakken wells,” he said. That formation was something of an unknown before, he noted. “Those wells drilled three or four years

ago now need chemical treatment.”

Drilling does add to the number of wells needing servicing down the road, however. “The more wells you have, the more trucks you need.”

They cover all of southeast Saskatchewan, as well as southwest Manitoba with the chemical operation.

Maintenance is typically done within 60 to 80 miles. “I’ve got some trucks we put 100,000 kilometres a year on.”

“Our expansion is limited by the amount of guys we can get,” he said.

They are currently looking at a third pressure truck and an additional crew truck.

They had about ten trucks in 2002. “Now we have 24,” Kris said.

Of their 28 employees, about half work on

the chemical side, the rest on maintenance.

One thing they’ve found over the years is it pays off to be nice to people even when they are leaving for other jobs.

“There’s probably 30 to 40 guys who used to work for use we now work for,” Kris said. They have moved on to become lead operators and chemical workers, and end up calling C & N for their services.

“The next day, you could be working for them,” according to Kris.

Asked where they find new people, Kris said, “A lot of people are coming to us.”

With several new hires in the works, he noted they don’t actively pursue competitors’ staff, but some end up approaching C & N. Recent hires include one

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from Alberta, another from Manitoba, and a third from Ontario.

Housing is an issue for C & N, as it is for most businesses in the southeast Saskatchewan oilpatch these days.

“We’ve been fortunate the people who applied with use have found housing. We just lost a guy because he couldn’t find housing.”

Kris hopes that eight new condos and 10 senior suites will take some of the pressure off the local housing market, making more units available as the new ones fill.

Camps aren’t the solution, he feels. “What we need is affordable housing so we can get them bringing their families, putting their kids in school, and not just looking for the highest paying job they can find.”

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PIPELINE NEWS Saskatchewan’s Petroleum Monthly

C-Section March 2011

Arcola disposal facility expands to solids

A truck pulls between the two tank farms at T45 Oil Corp.’s Arcola facility.

The tanks to the left have recently been added. A second facility, south of Stoughton, is in the works, and a permit has just been obtained to allow for solid waste processing.

Feb. 4. “We’ll be fully certified as a waste processing facility (WPF).

“We have received approval in January for a full-fledged WPF. We’ll do an expansion in May to take solids on our cement pads.

The plan is to begin receiving solids in June.

The company is in its third phase of tank expansion, adding a second tank farm to the north of the main one, within its own secondary containment.

“As it gets used more, we just keep adding tanks,” Johnston said. The intention is to have holding capacity to match the capability of the well. “It’s capable of putting away 3,000 cubes (cubic metres) a day.”

“We’re going to do a Deadwood disposal well south of Stoughton,” Johnston said. “If it gets approval as a Class 1A waste disposal facility, then we’d be licensed to take a different waste stream than other wells.

The Deadwood formation, Johnston Terry Johnston has lots of expansion plans in the works for T45 Oil Corp. of Arcola. explained, is right above the “basement” of Precambrian rock. “We’re going right down to the Precambrian,” he said.

By Brian Zinchuk “We bought a well with brand new seven and a half inch casing,” he said. “We just need Arcola – T45 Oil Corp. is in the process of two to go deeper. more expansions, one in volume, the other in type.

The location is five miles south and one mile The company is also planning on a second site. west of Stoughton, putting it within a mile of “We’ve just been approved for taking solids,” Highway 47. Johnston likes the location because said Terry Johnston, president of the company, on its proximity to the highway means less rutting of

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roads in wet conditions and less dust when it’s dry.

The planned facility would be smaller than the Arcola one, and will not take solids. “We’re hoping for a possibility of handling 750 to 1,000 cubic metres a day.”

T45 started out as a junior oil exploration company, drilling one well near Forget several years back. It was backed by Johnston and a network of surrounding farmers.

“We’ve got 30 to 35 participants in T45. We want to capitalize in our area. What can we do to capitalize on the frenzy?” he said of the company’s beginnings.

The first, and so far, only oil well didn’t turn out nearly as well as they had hoped, however. The company turned to disposal, which was its salvation.

“We are the only locally owned and operated WPF facility in southern Saskatchewan,” Johnston said.

With oil hovering in the $90 per barrel range, another shot at an oil well looks promising, however. Johnston said they may possibly try it once more in the spring. “The price of oil certainly helps,” he said.

They would be looking at another Bakken well, in the same general area as their first.

“There is a unique opportunity for small companies for individuals,” he said, noting they can deal with certain issues. They are just as capable as bigger companies, but more adaptable, according to Johnston.

Freehold mineral rights holders have more comfort working with the little guys. “If they feel better working with people they know, there’s a niche for smaller companies,” he concluded.

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PIPELINE NEWS March 2011

Southern Exploration’s Inc.

By Brian Zinchuk Arcola – While most oil companies in Canada have head offices in Calgary, there are some juniors who prefer to call small town Saskatchewan home. One of them is Southern Exploration Inc., of Arcola.

Southern Exploration is run by three part-

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The company had a corporate sale in February 2006. It had previously been known as Vortex Energy Corp., a sign that still hangs on the building. The partners joke about getting after their signage contractor to change that.

“The strategy is always to build value,” said Greg.

ners: Greg Maher, CEO and land negotiator; his brother Blair Maher, president and operations manager; and long-time friend Scott Hislop, chief financial officer and controller. However, titles are somewhat acedemic and the boundaries are often blurred. “We use them out of necessity,” said Greg.

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“We’re here for the long term,” Scott noted.

While they wouldn’t be opposed to another sale at some point, Scott offered, “Our strategy would always be to have a marketable asset.”

And if that another sale should come about, “We’ll always have new land and prospects for ongoing development and continuity,” Scott said.

Core area “Our core area is the Wordsworth/Browning area, five miles west of Wilmar. We have new lands further east on which we have just started development with the first horizontal well,” said Greg.

Indeed, when Pipeline News visited in early February, the company had Advance Drilling Rig 4 working on a hole.

They would like to do another two wells before breakup.

Farm-ins and farm-outs The company has 26 wells in which they have total or partial ownership in. Joint ventures and farm-ins are often undertaken with other companies, typically with larger Calgary-

based companies. “We approached them. That’s how it happens the majority of the time. They will often have substantial land holdings,” Greg said.

Asked how they determine their drilling targets, he said, “It comes from our geological evaluations done by contracted geologists.”

As for formations, “We’re primarily looking at the Frobisher and Alida. The economics would appear to be much more challenging in the Bakken for a privately capitalized business like ours.”

Scott said, “The private philosophy is quite different from the public [company’s].”

Greg added they have a low risk tolerance.

That low tolerance gets challenged, however, by the fact targest are getting harder to find and more expensive to develop. “We are prepared to accept more risk,” he said.

It’s a well-by-well determination.

“It’s got to pay for itself. It’s all private money. There’s nowhere to dilute it,” Greg said.

Scott added, “You

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can’t sit and print off more shares.”

That doesn’t mean they go it alone, however. “We have working interest partners we farm-out to, a wellestablished network of predominantly local people within a 50 mile radius,” Greg said.

Investment in development will typically go one of two ways: If they farm-in with another company, that company will take retain a portion, and Southern will earn a portion which could then be farmed to the network of partners.

The actual split between the network and Southern varies from well to well. Southern more often seeks to have 100 per cent interest in a prospect and then has the option to offer more to it’s partners.

With oil floating around the $80 to $90 range, they noted the economics are there to be more aggressive, however, the appreciation of the Canadian dollar offsets gains in net revenues.

“We plan to be as busy as we have been over the years, with average levels,” Scott said.

“To create the plays, you have to feel comfortable that you have been diligent in staying with in our risk tolerance. We’ve got to achieve rapid payout on the wells. We can’t wait 20 years for it to pay out.”

The company considers a well reasonably successful if it takes less than two years to payout. ɸ Page C3

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C3

partners in it for long term risen, with more people looking in the current environment. While a lot of the talk centres around the Bakken, Greg noted, “Nobody’s ignoring the Mississippian.”

Services Scott noted that service costs backed off in 2009 from peaks in 2008. So far, they haven’t risen in step with the level of activity, yet. “I’m

Greg Maher, left, and Scott Hislop, right are partners in Southern Exploration with Blair Maher, missing. Rhonda Paton, second from the left, handles production and general accounting while Sharon Maher looks after land administration for the small junior oil producer. Blair’s absence is due being on location for starting production from a new horizontal well.

Photo submitted

ɺ Page C2 Drilling “We drill six to 10 wells a year. We’re a little more selective,” Greg said. “We like to be sure to have confidence in the personnel and equipment in our drilling operations ” Southern Exploration’s wells tend to be horizontal with short bi-laterals, typically 400 to 600 metres in length.

They note there’s so much invested to get to the casing point, drilling a few more days to add a second leg makes sense.

“We don’t frac the Frobisher,” Greg said, noting they don’t need to, as it already has good permeability.

Frobisher wells are less costly to drill than Bakken, and both can be prone to fairly high rates of decline. All in, it’s about $1 million to $1.2 million for a typical well. High rates of initial production are cause for enthusiasm and help to

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“We’ve been fortunate.

Service providers seem fairly loyal to us.”

The company uses mostly local services.

Knowing people makes a difference, they point out. “That’s part of being in the heart of it.

We’re not observing from Calgary and we have a relationship with many of the contractors,” Scott said.

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PIPELINE NEWS March 2011

Compressor heat recovery

By Brian Zinchuk Regina - SaskEnergy pipeline subsidiary TransGas, together with partner companies Found Energy and Innovative Steam Technologies (IST) will use an innovative technology designed to capture the waste heat of

compressor station engines and convert it to useable electricity. If successful, the corporation could be producing more renewable electricity than it consumes by 2015, thanks to this new green technology.

The project will also help develop waste heat recovery technology for

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TransGas uses compressors to move natural gas through its 14,000 kilometres of high pressure transmission pipeline across Saskatchewan, as well as to inject gas into its 27 underground storage caverns and two storage fields.

“SaskEnergy and TransGas have set a goal to become net zero in electricity consumption by 2015 and waste heat recovery will be one of the key factors in pursuing this goal,” said Minister Responsible for SaskEnergy Dustin Duncan. “Recovering waste heat from compressor engines will reduce the corporation’s carbon footprint and our province’s reliance on traditional, electrical generation sources.

Through this project, SaskEnergy is support-

This is the waste heat oil heater under construction at Rosetown. The system will recover heat going up into the atmosphere, turning the energy into electricity.

Photo submitted

ing Saskatchewan’s ‘Go Green’ initiative by investing in an environmental solution to an everyday business process.”

“Found Energy brings together the best minds and technology available and with our collective in-house resources, are well po-

sitioned to be a singlesource provider that can handle jobs from start to finish,” said Bob Dautovich, President, IST. ɸ Page C5

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turned into electricity ɺ Page C4 “We have the unique ability to partner with forwardthinking industry leaders to develop such clean energy facilities. We are extremely pleased to have this first order from TransGas and look forward to being their partner in improving their energy efficiency and helping to reduce their carbon footprint.”

IST’s parent company is Aecon.

The $5.7M waste heat recovery project at TransGas’ Rosetown and Coleville compressor stations will capture heat normally vented to the atmosphere through the compressor engines’ exhaust, and converts it to electricity utilizing a process called the organic rankine cycle.

Similar to a steam generation cycle, heat is collected by a heat exchanger, turned into

a vapour which then drives a turbine, and then condenses via an air-cooled condenser.

A pump sends the fluid back to the heat exchanger and the cycle is repeated.

The electricity will then be sold back to the SaskPower grid.

Construction is currently underway at Rosetown Compressor Station, with commissioning, testing, and start-up planned for March 2011, with the Coleville project soon to follow. The Coleville waste heat recovery project will be the first of its kind in North America to utilize new technology for small compressor engines, which is why SaskEnergy and Found Energy are optimistic about its future use in the energy industry.

Similar projects are in the planning stages for some of TransGas’ other compressor fa-

cilities.

Tom Thomson, manager of Found Energy, explained the Coleville unit will be modular. It will essentially be two stacked 20-ft. sea containers.

The Rosetown facility will be modular in nature, but have a plant built around it.

The Coleville unit will generate 100 kilowatts of electricity, while the Rosetown unit will be 10 times more powerful, at one megawatt of generating capacity. The Coleville unit will use a refrigerant, while Rosetown’s will incorporate a thermal oil loop.

The Rosetown waste heat recovery unit is expected to produce roughly seven million kWh per year – enough to power nearly 800 Saskatchewan homes.

This is equivalent to approximately 25 per cent of SaskEnergy’s and TransGas’ total

annual electrical consumption.

The Rosetown project will offset approximately 5,000 tonnes of carbon dioxide equivalent (CO2e) per year – comparable to that which would be achieved by planting approximately 78 square kilometres of carbon absorbing forest, according to

SaskEnergy.

While there are over 100 installations of this type of system in Europe by other companies, Thomson said this is their first application in North America.

Asked about oilpatch applications, Thomson said the system could be used “anywhere there’s waste heat generated.”

C5

That includes pumps, and processes to extract oil. Compressor stations are a likely scenario.

“Those are the perfect application for this kind of technology,” he said. “If the opportunities are there, we will be pursing more work in Saskatchewan. You can’t ignore Saskatchewan.

There’s a lot of potential,” he said.

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C6

PIPELINE NEWS March 2011

All the display space, both inside and out, has been sold out for the 2011 Saskatchewan Oil and Gas Show in Weyburn. This was the 2009 show’s outdoor area.

File photo

Weyburn Oil Show sold out long ago

By Brian Zinchuk Weyburn – The 14th biennial Saskatchewan Oil and Gas Show, held in Weyburn, sold out of exhibition space

a long time ago.

“We are sold out. We were sold out since November of last year,” said Tanya Hulbert, who handles administration for the show.

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Packages were sent out to prior exhibitors in June of 2009, with an opportunity to have a first chance to get a booth. The deadline was in September.

Three-quarters of the exhibition space will be going to returning exhibitors.

“We have 130 outdoor and 185 indoor [display spaces],” she said. Some of those will be taken up by double booths or larger.

Applications to exhibit just keep on coming. “We got 38 applications last week. That’s in addition to the stack we already have,” Hulbert said on Feb. 14.

A committee is still working on lining up the speakers. Energy and Resources Minster Bill Boyd is slated to attend, but Premier Brad Wall is not yet confirmed.

Exhibitors will be able to set up on May 31, and many will take part in the

exhibitors’ golf tournament. A steak and lobster supper for exhibitors will also be held.

The main event is on Wednesday, June 1 and Thursday June 2. Attendance is free and open to the public.

On June 1 there will be the Saskatchewan Oilpatch Awards Luncheon which will see the presentation of the Saskatchewan Oilman of the Year and hall of fame inductees. That evening, the South East Saskatchewan Oilman Award will be presented during the beef pit barbecue.

On June 2, there will be a noon luncheon with a yet-to-be announced speaker.

“We really need people from the industry to come forward and nominate people for these awards,” said Hulbert. Nominations forms can be found online at www.oilshow.ca

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Assertiveness training for women of the patch “For a lot of workers, women in the oilfield, it’s high paced, high pressure, and they work alone,” she pointed out, adding they can feel isolated, and have to deal with aggressive customers.

At this workshop, Envision counsellors

will share everyday tools to help oilfield workers implement assertive strategies, respond to negative feedback and recognize any barriers that are “keeping you from reaching your goals.”

Asked how many participants they hope to

attract, Lenover-Adams said 20 would be considered really successful.

The workshop will be held at the St. Joseph’s Hospital Auditorium and lunch will be included in the $175 workshop fee. The workshop is open to any woman over the age of 18 years and

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Patt Lenover-Adams says there were speciÀc requests for assertiveness training for women in the oilpatch.

Estevan – Envi- their own needs and the sion Counselling and needs of others.”

Support Centre will be hosting a full day Assertiveness Training for frontline women who work in the oilfield industry. The event takes place on Friday, Mar. 4.

“We have normally for the last 17 years done assertiveness workshops for women in general,” explained Patt LenoverAdams, executive director.

In this instance, Envision was approached by a group of women who felt that they needed a specific assertiveness training for women who work in the oil industry.

This workshop will focus on dealing with customers, co workers and other oilfield personnel.

“Assertiveness is a critical trait for any employee. It is the ability to stand up for yourself without feeling guilty, effectively set boundaries and to say no assertively. Those who can assert themselves communicate more confidently, enjoy more fulfilling work relationships and are more effective at their job,” according to Lenover-Adams.

“Being assertive is not being aggressive or passive. Anyone can learn how to increase self esteem, self confidence, and develop an assertive personality in the workplace.

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C8

PIPELINE NEWS March 2011

Flint returns to Estevan

By Brian Zinchuk Estevan – Flint Energy Services Ltd. has returned to Estevan af-

ter an extended hiatus. It last operated in southeast Saskatchewan with an Estevan shop, but closed

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With operations starting in November

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that won’t be the case for long, according to Glen Mitchell, the new district manager who moved to the area at the end of 2010. They’ve already got

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Nick Steinke, left, Matt Faris and Glen Mitchell are the management team at Flint Energy Services Ltd.’s new Estevan location. Mitchell is the district manager.

over 20 employees, and in the next six months or so, they hope to add up to another 50 to 60, along with several other divisions.

Currently, the Estevan operation has two service lines: electrical and instrumentation, headed by Matt Faris, and mechanical, pipeline and facility, which is run by Nick Steinke.

Both Faris and Steinke have returned home to Saskatchewan with this move. “I was born and raised in Regina,” said Faris. “I’m now an Estevan resident.”

Faris has his Red Seal journeyman’s certification as an electrician. He took his training through SIAST’s Palliser campus in Moose Jaw. Steinke is originally from the Outram/ Torquay area. “I left a year or two out of high school to do the Alberta circuit,” he said.

“My intent was to come back.

“I’ve been with Flint for eight years,” Steinke said. That included time at Whitecourt, Edson, and Drayton Valley, Alta.

As for Mitchell, he noted, “There’s 60 locations for Flint, and I think I’ve worked in 58 of them.” ɸ Page C9

PIPELINE NEWS March 2011

C9

Several additional service lines planned Éş Page C8 If you used a push-pin for every Flint operation in Alberta, you would cover the map. Not so in Saskatchewan. Besides Turtleford, Swift Current and Lloydminster, Estevan is it for points east within Saskatchewan and Manitoba. The Estevan operations base will cover much of southern and eastern Saskatchewan and all of Manitoba, Mitchell said. The Shaunavon play will also be included.

Indeed, Mitchell added, â&#x20AC;&#x153;We have talked about looking at setting up something in Manitoba, a satellite of Estevan.â&#x20AC;?

Asked why they are setting up in Estevan, he responded it was due to, â&#x20AC;&#x153;opportunity in the industry and the way itâ&#x20AC;&#x2122;s going.â&#x20AC;?

They will oďŹ&#x20AC;er broader, diversiďŹ ed service lines, he said. In the future they are looking at ďŹ&#x201A;uid hauling, pressure vac services, and logistics, which includes rig moving. â&#x20AC;&#x153;We have rig hauling in Swift Current right now,â&#x20AC;?

Mitchell said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re looking at methanol storage, sales and rentals,â&#x20AC;? he added. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re looking at the tanks right now.â&#x20AC;?

Methanol is used for pipeline testing.

Safety services are another consideration for Estevan. â&#x20AC;&#x153;We also have tubular here,â&#x20AC;? he said, referring to Frontier Inspection, which is the next door neighbour.

Steinke sees potential work out of new venting and ďŹ&#x201A;aring regulations for Saskatchewan. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s going to be good for our end of things. They will have to capture it and do something with it. It means compressor stations, pipelines, and ground injections.â&#x20AC;?

In the future, there will be a shop, and likely several more, on the Highway 47 site. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re here to get serious,â&#x20AC;? Mitchell said. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re going to build a shop.

With the shop comes fabrication. Without a doubt, weâ&#x20AC;&#x2122;ve got lots of land.â&#x20AC;?

Realistically, he said, construction on a permanent facility isnâ&#x20AC;&#x2122;t likely to begin before the spring of 2012.

On the electrical side, they are going to pursue not just oilďŹ eld, but civic and power applications. That will include power station, substation, and industrial work. Theyâ&#x20AC;&#x2122;re already trying to get work with the cities of Estevan and Regina. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;m trying to hammer down SaskPower,â&#x20AC;? Faris noted.

Mines are also on the electrical agenda, he added.

Workers â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re trying to recruit some from Regina,â&#x20AC;? Faris said. â&#x20AC;&#x153;Hopefully we can recruit some Saskatchewan people to come back.â&#x20AC;?

So far, there are three people, including Faris, working on the electrical service line in Estevan.

On the pipeline side, Steinke noted, â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve found about half of mine locally, people looking for a change.

The other half are guys I know.â&#x20AC;?

One of the limiting factors is housing of workers.

Mitchell said, â&#x20AC;&#x153;I got lucky buying my place. Thereâ&#x20AC;&#x2122;s no rental property at all for these guys. Housing [pricing] is escalating.â&#x20AC;?

When he came down in late November, to stay for two weeks, he had to book in three hotels across two cities just to have somewhere to lay his head. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re actually thinking of setting up a camp for some of our employees and selling our services,â&#x20AC;? he said.

If that is the case, it would likely be an open camp.

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C10

PIPELINE NEWS March 2011

Rat holes, mouse holes and main holes

By Brian Zinchuk Estevan – The name of what they do may raise some eyebrows, but the result is a lowering of drilling costs.

Prairie Rat Hole Services Ltd. does just that – drill rat holes, along with mouse house and the main hole. All three are necessary for a drilling rig to begin its work.

Sure, drilling rigs are capable of doing this themselves when spudding a hole, but it costs about four times as much per hour.

That’s according

to Mel Trobert, owner of Prairie Rat Hole. If drilling a well is the main event, the work the Estevan-based company specializes in could be called the opening number.

When a well is drilled, three holes must be done first. “The main hole is where they drill in,” Trobert said. “The mouse hole is where they make the connections. The rat hole is where they store the Kelly when they’re pulling pipe.”

According to the Schlumberger Oilfield Glossary, the kelly is

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“a long square or hexagonal steel bar with a hole drilled through the middle for a fluid path. The kelly is used to transmit rotary motion from the rotary table or kelly bushing to the drillstring, while allowing the drillstring to be lowered or raised during rotation.”

When the kelly is raised by the up by the hook and then lowered, it goes into through an opening in the drill floor and into a lined hole, the rat hole. Since it is lowered at an angle, the rat hole must be drilled at an angle, and in a very precise location.

The mouse hole is used to make rapid connections while drilling, and is also cased.

The main hole, generally 16 to 20 inches diameter, has a length of conductor pipe, 40 to 60 feet long, cemented in place. The drilling rig will then do all its drilling with its drill string passing through the conductor pipe. The blowout preventer system (BOPS) mounts on the conductor pipe.

The main hole’s position is determined by the surveyors.

A large culvert, know as the cellar, is placed around the main

Mel Trobert has been drilling rat holes since the ’80s.

hole. The backhoe digs a hole for the cellar to be set in.

“Every drilling rig is different,” Trobert said. Sometimes the rat hole is on the sump side, sometimes it is on the doghouse side. The company keeps schematics of each rig, so that they can correctly measure out the position and angle of the rat hole and mouse hole.

As such, a rat hole rig is a specialized piece of equipment. It is able to rotate, and displace left and right, front and back. The derrick can also tilt and lean. They can drill up to 60 ft.

“Anything deeper than that, we can get someone

in,” Trobert said.

Supporting the rat hole rig is a backhoe, which disposes of augured up dirt and moves around casing. A cement truck is used to mix up small batches of cement on site, cementing the conductor pipe in place.

A chase truck hauls the backhoe and pipe. Generally three people, the rig operator, backhoe operator, and cement truck driver work on a crew.

If there are water wells or mine shafts nearby, there will be a desire to go deeper. “Thank God for the environmentalists. They kind of pushed that,” he said. “It should be compulsory.”

While drilling rigs

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are capable of doing the rat hole rig’s work, Trobert said, “If they get onto rock, the Kelly is swinging back and forth, and could cause injury. Before top drives, they had to tong it in.”

On a good hole, they can get the job done in about three hours. On a bad hole, with rock, water or sand, it can take days. A drilling rig can go faster, but its time is much more expensive, Trobert explained.

“About a good half of wells in this region have the rat hole done,” he said.

As a sideline, they also do foundation work.

Origins Trobert has been in the rat hole business since the 1980s. “We leased a rig from the States to get going. It was a bucket rig, a water well rig, more or less.”

They got their first screw rig in 1987. ɸ Page C11

PIPELINE NEWS March 2011

C11

Making it easier on the drilling rig ɺ Page C10 Ray Frehlick, the owner of Prairie Mud and Prairie Petro-Chem, used to own the business. That explains their current location, on the backside of the Prairie Mud facility. Trobert was working for Frehlick at the time.

Trobert was partners with Frehich for many years, finally buying him out two years ago.

“Buck Scheely said we should get into setting conductors,” Trobert said.

They initially leased a rig from Scheely.

Prairie Rat Hole is one of only two rat hole operations in Saskatchewan. The other is in Weyburn. While based in Estevan, they cover the whole province, and beyond. “We’ve been in Cold Lake, Alberta. They told us, ‘You worked for us down there, you work for us up here.’”

Plans are in the works for third rat hole rig, and a larger shop.

Oilpatch family Nearly all of Trobert’s family works in the oil patch. His brother Joe owns Chem-Est Industries, while another brother, Norm, owns Steam-Est. Brother Frank runs backhoe for McGillicky Oilfield Construction. His late brother Tony used to work on drilling rigs. Sister Irene Weinrauch, a retired registered nurse, is the exception, but her husband used to work for National Tank.

On top of that, one nephew, Gerry Trobert, is a directional driller, and another, Dennis Trobert, owns Outlaw Trucking. A third nephew, James Trobert, is an oilpatch lawyer.

His wife Donna is office manager, and his step children are also involved.

Travis Paterson is a rig operator, and Tasha Paterson does admin work.

A conductor pipe is raised in the air before being lowered into the main hole and cemented in

Rat hole rig operator Corey Simons extracts the auger from the main hole.

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C12

PIPELINE NEWS March 2011

Industry Safety Training

Spring break-up is approaching and our focus is your focus For nearly 20 years, the Saskatchewan Energy Training Institute has provided industry-recognized safety and skills training to the oil & gas industry in southeast Saskatchewan and beyond. During break-up, we focus on providing timely, accommodating, and innovative safety training solutions that benefit your employees and your operations.

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PIPELINE NEWS March 2011

C13

Safety seminar in Weyburn

By Brian Zinchuk Weyburn – The 15th annual South East Environmental and Safety Seminar will take place on March 17 in Weyburn.

The event will take place in McKenna Hall, according to Carolyn Murphy of Southeast

Regional College, one of the organizers.

The show alternates between Estevan and Weyburn each year.

Next year it is anticipated to be held in the new Energy Training Institute currently under construction.

An added feature this year will be displays

in the lower part of the hall. For sponsoring companies or paid registrants, they can book a table free of charge.

However there are only 26 tables in total available, and as of Feb. 14, eight were booked.

Bookings are being taken on a first-come, firstserved basis.

Murphy said they had approximately 130 attend last year, and anticipate 150 this year.

However, there is room to accommodate more if needed.

The event is targeted at the oil and gas industry, however, others may attend. Registration is $135 per person for the

WBPC 2011: Go big

By Brian Zinchuk Regina – The Williston Basin Petroleum Conference is going to be a lot bigger than two years ago, the last time it was held in Regina.

The event rotates between North Dakota and Saskatchewan each year. Last year’s show in Bismarck, N.D., smashed all records, with over 2,700 people attending.

This year it will be held on May 1-3.

This year organizers are hoping for 1,200 to 1,500 in Regina, up from about 900 in 2009.

Melinda Yurkowski, director of the Saskatchewan Sub-surface Geological Laboratory is co-chair of the event.

“I think it’s going to be pretty awesome.

We’re just about 80 per cent sold out of our exhibition space,” she said in early February. “I’m sure we’ll be sold out by the end of the month.”

In previous years, the event was held in downtown Regina, with the large sessions held in the Casino Regina showroom. This time out, they’re moving to

Evraz Place. That will allow for a total of 246 booths, plus a new outdoor display.

“The Williston Basin is still really hot.

We’re getting a log of Americans coming up for exhibits. It’s got a real international flavour.”

The schedule is still being worked on, ac-

cording to Yurkowski.

The theme is “Go Big.” “We’ve got a bigger venue, and envision bigger things for Saskatchewan and the Williston Basin,” she said. Indeed, the Petroleum Technology Research Centre has been invited to help organize the now-larger event. On the Web: www. wbpc.ca

all-day event. More information can be found at www.seess.ca.

Speakers The speakers start off with Rick Laursen, talking on “Safety and Environmental Issues Affecting Industries in Saskatchewan.” Laursen has been in the oil and gas industry since 1983.

He has been a strong advocate in the areas of supervisor competency and contractor management systems guides, regulatory change, IRP development and implementation, developing incident investigation protocols, introducing risk management into organizations, and working together with operators and contractors in a collaborative manner. He is currently that manager of Health and Safety and Sas-

katchewan Operations at CAPP. Laursen is a Canadian registered safety professional and a certified safety professional and holds the Canadian risk management designation.

Sean Frisky is next, talking about oxidant “Oxidant Dispersal in Tight Clay Formations using EK3 Technology.”

Frisky started Ground Effects Environmental in 1998 because while an employee at an oil refinery , he saw firsthand how the remediation equipment had spent more time broken than running. Frisky designed an entire new system to clean up oil and contaminants from soil.

The result: an MPE with 300 per cent fewer parts, a 99.9 per cent run time and the start of GEE. ɸ Page C14

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C14

PIPELINE NEWS March 2011

Displays added

This year’s South East Environmental and Safety Seminar, to be held in Weyburn, is expected to attract 150 people. It was a full house at last year’s seminar held in Estevan.

File Photo

ɺ Page C13 EK3 is a process in which a low-voltage DC electric field is applied across a section of clay soil in order to disperse a water/chemical oxidant mixture within the formation. The main process involved in the EK3 technology is electro-osmosis. It can effectively move water through the soil as well as carry

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oxidant into a contaminated area.

Darlene Sakires will focus on “Meeting the Environmental Challenges of Saskatchewan Oil and Gas Development - What You Require to Move Your Project Forward.”

Sakires is an environmental coordinator for southern operations with Canadian Natural Resources Limited, Calgary. Sakires is the co-chair of the Saskatchewan Petroleum Industry Government

Environmental Committee, (SPIGEC) and is a member of two Canadian Association of Petroleum Producers (CAPP) committees.

Through both Sakires’ work and external commitments she strives to promote and implement environmental compliance throughout Western Canada.

Terry Gibson will speak on “The Value of an Airshed Management Process to Airshed Stakeholders." ɸ Page C15

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PIPELINE NEWS March 2011

C15

Southeast Environmental and Safety Seminar coming ɺ Page C14 Gibson brings nearly 30 years of Public Health/ Environmental Health experience to the position of executive director. He has held the positions of president of the Saskatchewan Public Health Association and vice-chair of the Saskatchewan Epidemiology Association. Gibson is committed to working with industry and regulators in a consensus decision making process to ensure that the health of the environment of southeast Saskatchewan is always protected.

Hugh Morrison’s presentation will be on “Alternative Spill Clean Up Technologies.”

Morrison is the president of Universal Environmental Safety Services. He will be discussing alternative spill cleanup technologies.

Author and international speaker Wilson Bateman will give “The PEP Talk (Positive Energy Program)."

As president of Global Training Edge, Bateman has been involved in training and consulting for over 25 years. He has provided services in Canada, the

United States, United Kingdom and the United Arab Emirates. Bateman has conducted training and consulting services off shore in the oil and gas industry, underground mining in Western Canada, chemical industry in the United States and thousands of workplaces throughout North America.

Wilson has held numerous positions including director of safety and training for the Nova Scotia Safety Council, senior consultant with Electrolab Training Systems and regional manager with Liberty Risk Services.

In 1999, Wilson received an Award of Merit in recognition of outstanding service to the cause of safety and support to the NSSC. He is the author of 7 Safety Habits That Could Save Your Life and 10 Steps to Safety Excellence. Wilson is a frequent speaker at conferences throughout Canada and the United States.

Trevor Chambers will talk about “Making Good and Bad Choices.”

On June 16, 1993 Trevor was involved in a crash

that has changed his life forever. As a passenger in a vehicle driven by a drunk driver, he sustained brain injuries that left him with permanent problems that have affected his speech, balance, memory and walking (shaking).

As a result of this, he has a goal, and that is to try and impress upon others the dangers of drinking and/ or driving under the influence. His presentation tells his story and reflects on how choices made can change lives forever. He includes thoughts on the influence of drugs and alcohol, stress, peer pressure, fatigue, as well as the consequences of speed and not using seatbelts.

It is his hope that after hearing and seeing his presentation, people will take more care in making positive and safe decisions.

Chambers grew up in southern Alberta. Before his accident he was involved in farming and had spent approximately 10 years in the oilfield. Since the year 2000 he has been providing inspirational speeches about what he has gone through, safety at the work place, and the perils of drinking and driving.

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C16

PIPELINE NEWS March 2011

Johnstone new VP Jordens leaves college for junior producer

By Brian Zinchuk Weyburn – One of the lead figures in the development of the new Energy Training Institute for Estevan has left the Southeast Regional College to pursue opportunities as a partner

with a start-up junior oil producer, based in Weyburn.

Trent Jordens’ official departure from the Southeast Regional College was at the end of January, however, he will be on retainer for the next six months and

continue to be involved with the project, according to Craig Brown, CEO of the college.

“It’s very good for Trent. I hope he remembers the little people,” Brown said with a smile.

Brown and Jordens spearheaded the project, which is under con-

struction. It is slated to be open this fall.

Jason Johnston has been hired as the new vice-president of business development.

Johnston’s previous experience includes working with the Gabriel Dumont Institute, Federation of Saskatchewan Indian Nations, and the

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priority is the preparation for spring break-up as the College actively reaches out to oil and gas companies for training options over the next few months.

“The southeast region is experiencing an economic upturn with many established companies linking oil and gas training with the College and the Saskatchewan Energy Training Institute. It is important for employers and individuals to call early for training seats to be secured in the anticipation of spring break-up.

We do have campuses located throughout the region and can provide some localized options for programming,” stated Johnston.

Vice-president of academics Jamie Hilts has been working on the courses for the ETI. “He’s in the process of finalizing programs to be in place next fall,” Brown said.

New programs will be offered for the first time in Saskatchewan, he added.

So far, they haven’t yet seen any dollars come in on the fundraising front, despite a $3.5 million goal. But Brown said they’ve revamped the foundation board, and a number of companies have come forward expressing interest.

In the meantime, the ETI is looking forward to an active spring breakup, when many companies get caught up on safety training.

PIPELINE NEWS March 2011

C17

Enbridge Bakken expansion secures commitments (Nickle’s Daily Oil Bulletin) Additional shippers have finalized capacity commitments to the Enbridge Energy Partners, L.P. and Enbridge Income Fund Holdings Inc. $560 million Bakken expansion program under the terms of the open season process.

The 145,000 bbl per day expansion program is being undertaken on the Enbridge North Dakota system owned by EEP, and the Enbridge Saskatchewan system, owned by the Enbridge Income Fund.

Of the 145,000 bpd of added capacity from this expansion, 25,000 bpd will be available early this year following completion of the Portal Reversal expansion project while the remaining 120,000 bpd will be available by late 2012. Under the applicable regulatory arrangements a maximum of 115,000 bpd can be held by committed shippers and at least 30,000 bpd must be reserved for uncommitted volumes.

By Aug. 24, 2010, anchor shippers had made sufficient capacity commitments to enable the expansion to proceed. An open season that commenced on Aug. 26, offered an opportunity to other shippers to subscribe for committed capacity on the same terms as the anchor shippers. Additional shippers have now executed capacity commitments under terms of the open season with the majority of the commitments for a 10-year term. The combined commitments of 100,000 bpd from the combined anchor and additional shippers leave 15,000 bpd available for additional uncommitted volumes or subsequent committed capacity offerings.

“The Bakken and Three Forks formations represent an area of tremendous opportunity for both Enbridge Energy Partners and Enbridge Income Fund,” Stephen Wuori, president, liquids pipelines, Enbridge Inc., said in a news release. Based on current activity and growth plans the com-

pany anticipates that additional pipeline capacity beyond this initial Bakken expansion program will soon be required by producers, he said.

The Bakken program has an ultimate expansion capacity of up to 325,000 bpd with modifications and additional facilities and Enbridge will continue to work with shippers to ensure additional capacity is made available when they require it, he said.

EEP will under-

take Enbridge’s Bakken expansion program in the United States at a cost of approximately US$370 million while EIF will be in charge of Canadian projects at a cost of approximately C$190 million.

The expansion program will originate at Beaver Lodge, North Dakota, in the heart of the Bakken, and will follow existing EEP and EIF rights of way to terminate at and deliver to the Enbridge mainline terminal at Cromer, Manitoba.

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Enbridge has been embarking on a multi-year expansion of capacity in southeast Saskatchewan. Now, the company has secured commitments of 100,000 bpd for its Bakken expansion program. Last summer they were expanding tankage at their Steelman facility, seen in this Àle photo taken last August.

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C18

PIPELINE NEWS March 2011

Hurry up and ... wait ... and wait ... and wait

Shifting Gears

One Woman’s Perspective on Life, Liberty and the Pursuit of Land Locations

By Nadine Elson

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

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“I’m late, I’m late For a very important date.

No time to say ‘hello, goodbye,’ I’m late, I’m late, I’m late!”

I heard these words many a time in my childhood, as my father hurried to get ready and leave for an appointment. Only as an adult, with children of my own, did I realize that he was quoting the White Rabbit in the Lewis Carroll book, Alice’s Adventures in Wonderland.

The cellphone rings its distinctive tone, the one that alerts me to the fact that the boss is calling. “Hi Nadine. How’s it going?” he asks. And then, “I have a hot shot for you,” he says. I grab a pen and my notepad for the details.

I am in the hot shot business. The delivering goods quickly business.

The courier service to the oilpatch business.

The hurry up and … wait business.

I hurry up and get ready to leave. “Time is money.” Benjamin Franklin once said, and well I know it. I put the dogs in the back hall, start the truck with the remote, and get the coveralls on. I hurry to the truck to drive to where we park the trailers. I quickly hook up my trailer to the truck.

I hurry over to the business that supplies sucker rods and then I … wait.

I wait for my turn to get loaded as there are two trucks ahead of me. I wait for the shop staff to get the order together. Then I get loaded.

Once I am loaded, I hurry and strap down my load as quickly and safely as possible. Once I have the load strapped down, I hurry to the entrance so that someone from the supply business can verify the order is complete, and I … wait.

Once the load is properly verified, I leave.

I hurry to the exit that is closest to my road and I

… wait. I wait for a break in the busy traffic, and then I swing my truck and trailer out onto the busy street and head for the highway.

I hurry to the highway turnoff and (you guessed it), I … wait. I wait for a break in the traffic, for now it is the morning rush hour and everyone is hurrying to get out of town to do their work. When the opportunity comes, I hurry to take advantage of it and get my truck and trailer in the convoy leaving town.

“Be on location for 9 a.m.,” the boss had said.

I check my watch. I need to hurry. But it’s dark, snow is blowing, and the road is slippery. The lead vehicle in the convoy has set the pace, and it is not as quick as I would wish.

I wish he would hurry up, but I … wait. I can do nothing now but take a deep breath, relax my shoulders and exhale. I will get there when I get there. ɸ Page C19

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PIPELINE NEWS March 2011

West¿re sweetens its 2011 capital budget Calgary – Success breeds success.

That’s the case for WestFire Energy Ltd. that is boosting its 2011 capital budget to $90 million from $55 million previously announced in January.

The increase is due to its successful ongoing drilling program on its Viking light oil land base of 247 net undeveloped sections.

The Calgary-based junior oil also expects to raise an additional $40 million through a share offering announced Feb. 15 with a closing date of March 9.

The net proceeds of the offering will be used to accelerate the company’s 2011 capital program and for general corporate purposes.

Increased spending from the revised budget will be focused on accelerating the development of WestFire’s large inventory of Viking light oil proj-

ects at Redwater and Provost, Alberta and in west central Saskatchewan.

As a result, 2011 average production has been revised to 4,000 boepd (from 3,750 boepd).

The 2011 exit production is also being revised upward to 5,000 boepd (from 4,200 boepd), weighted approximately 75 per cent to oil.

Approximately 80 per cent of the 2011 budget will be allocated to the drilling of 61 gross (60.1 net) wells, an increase of 24 gross (23.1 net) wells as compared to previous guidance.

Westfire expects to drill 46 gross (45.1 net) horizontal wells on the Viking light oil resource play with 35 gross (35.0 net) wells targeting Redwater, Alta.

WestFire also anticipates drilling 15 gross (15.0 net) wells in its Lloydminster heavy oil core area.

And wait ... and wait ɺ Page C18 When I get to location, amazingly I am only 15 minutes late. I turn onto the lease, park, put on my hardhat and gloves, and hurry off on foot to find the consultant and sign in.

“Good morning!”

I greet him. I hurry to apologize for being late, but … wait. He is telling me that they have run into some problems so are not quite ready for the sucker rods. They would really like to be able to run them off the trailer, using the trailer as a temporary platform.

Can I wait?

“No problem,” I tell him. After our safety meeting with each other, I hurry to the doghouse to sign in. Then I hurry back to the truck to call the boss to let him know that I will be longer on location than originally planned. Then I … wait.

For that is what I do, because I am in the hot shot business. The delivering goods quickly business. The courier service to the oil patch business.

The hurry up and … wait business.

Nadine lives in Estevan, SK with her husband and family. Her mission,

beyond delivering the goods quickly, is to have every interaction be a pos-

itive one. Smiles are free.

She can be reached at missiondriver@hotmail.ca

C19

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C20

PIPELINE NEWS March 2011

Clean Harbors sets up Arcola base and camp

HUTT’S TRUCKING LTD. Specializing in pumpjacks, vessels and manbasket work

Arcola – In just a few months’ time, not only has Clean Harbors set up a new southeast Saskatchewan base in Arcola, they’ve also established a camp to accommodate workers.

“Clean Harbors has multiple locations in Western Canada to service industrial and oilfield customers, and our intention is to continue

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to grow these assets,” said Jason Evans, Clean Harbors regional vicepresident, energy & industrial services, in a release. “This new service centre in Arcola puts us close to the expanding oilfield activities related to the Bakken zone and positions us to better

service Saskatchewan and Manitoba.”

Its inventory includes vacuum trucks, hydro-vacs, steamers, steamer-vac combos, rod rigs, directional boring equipment, water trucks, pressure trucks and pressure

testing equipment for lease and rental, and for use by Clean Harbors personnel in support of oilfield operations.

The location includes housing – available for nightly and long-term rentals. ɸ Page C21

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PIPELINE NEWS March 2011

C21

In order to have somewhere for workers to stay, Clean Harbors set up its own camp at Arcola. Part of the facility is for in-house use, the rest is open.

Hoping new employees enjoy it here ɺ Page C20 Dallas Cairns is the area manager for southeast Saskatchewan. His experience running an oilfield services company in Kindersley led to the Arcola job.

According to their website, Clean Harbors is headquartered in Norwell, Massachusetts. “Clean Harbors has more than 175 locations, including over 50 waste management facilities, throughout North America in 36 U.S. states, seven Canadian provinces, Mexico and Puerto Rico. The company also operates international locations in Bulgaria, China, Singapore, Sweden, Thailand and the United Kingdom.”

The Arcola location began operations in September 2010. They leased a newly built shop just east of the community, on the north side of Highway 13. The facility is so new, as of early February they were still running on generator power, waiting for SaskPower to hook them up. Heat is currently coming from propane.

The camp was set up in mid-October, and was made available to the public in November.

Cairns categorized it as a “sleep camp, just like a motel.”

They do not provide meals.

There are 38 beds available, plus another 14-bed facility for the company’s own employees. There are skid shacks as well, but they are already rented out.

Housing has been a prime concern for companies throughout the region. “That’s why we brought this down,” Cairns said, noting it was close to impossible to find something rea-

sonable for accommodations.

“It’s definitely an advantage to us if you’re going to bring people in,” he said. However, he’d like to see employees establish themselves locally.

“We’re hoping guys will come here, like it here, and make it their

home,” he said, acknowledging that not everyone will.

The bookings and cleaning are taken care of by Arcola’s Chaparral Inn. Just half a year in, there are already nearly 30 people working for Clean Harbors out of the Arcola location. A

few are locals, some are from throughout Saskatchewan, and even a few come from Prince Edward Island. Asked how that came about, Cairns said it snowballed, with “guys and their buddies.”

“I don’t know where it will stop. We turn a lot of work down, and a

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lot of people don’t know we’re here yet.”

Arcola was chosen in part because of the availability of a shop.

The 60 x 100 ft. shop went up quickly, according to Cairns. “And we need another one exactly that size again.

She’s well over full,” he said. “We put the most

important stuff in.”

It’s also a busy area to be in. “On this highway, you can just watch the activity. It’s busy.”

The facility services southeast Saskatchewan and southwest Manitoba. “We’ve got a steamer in Waskada staying at the camp,” he said.

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C22

PIPELINE NEWS March 2011

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PIPELINE NEWS March 2011

C23

Badger to be acquired by Clean Harbors Calgary – Badger Daylighting Ltd. announced on Jan. 26 that it has signed a definitive agreement to be acquired

by Clean Harbors, Inc., a provider of environmental and energy and industrial services throughout North America.

Under the terms of the agreement, Clean Harbors will acquire 100 per cent of Badger’s outstanding common shares for cash consideration of $20.50 per share.

The total consideration is approximately $247 million, including the assumption of approximately $25 million in net debt.

Tor Wilson, Badger’s president and chief executive officer, said, “We believe that this transaction provides fair value for Badger’s business while providing full liquidity to all shareholders. Clean Harbors has the ability to greatly expand Badger’s presence in the U.S. market through its extensive market knowledge and

contacts.”

“The acquisition of Badger Daylighting affords us an opportunity to significantly expand our energy and industrial services business across the U.S. and Canada, while adding a recognized innovator in the hydrovac field,” said Alan S. McKim, Clean Harbors’ chairman and chief executive officer.

“Badger services a client base of more than 5,000 customers, which will provide Clean Harbors with substantial crossselling opportunities.

From a geographic perspective, this transaction aligns well with our existing footprint, as Badger serves key markets, particularly across Western Canada.

“Badger has established an outstanding reputation in the markets it serves and presents a compelling value proposition for customers,” McKim said. “Its hydrovac system is based on custom-built equipment that ensures safety,

productivity and allseason versatility. We are confident that Badger will be a strong addition to our broad array of current service offerings and that Clean Harbors will leverage its sales and marketing strength to accelerate Badger’s growth throughout the U.S., which currently accounts for 40 per cent of Badger’s revenues.

“Given our acquisition expertise and integration capabilities, we are confident that we can quickly and seamlessly integrate Badger into Clean Harbors once we receive the necessary approvals. We see strong potential prospects for the combined company and are currently targeting a second-quarter completion to the transaction. We intend to maintain the Badger brand and operate the company as a wholly owned subsidiary of Clean Harbors. We look forward to welcoming Badger’s employees and franchisees into the

Clean Harbors’ family,” McKim said in conclusion.

Badger is North America’s largest provider of non-destructive excavating services. Badger traditionally works for contractors and facility owners in the utility and petroleum industries. The company says its key technology is the Badger hydrovac, which

is used primarily for safe digging in congested grounds and challenging conditions. The Badger hydrovac uses a pressurized water stream to liquefy the soil cover, which is then removed with a powerful vacuum system and deposited into a storage tank. Badger manufactures its truckmounted hydrovac units.

Badger Daylighting Ltd. is now in the process of being acquired

by Clean Harbors Inc. File photo

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C24

PIPELINE NEWS March 2011

New hotel already in high demand

There’s just one thing they wish they had more of at Estevan’s newest hotel: parking for large trucks.

Estevan – Even before it opened, customers were chomping at the bit to get in to Estevan’s newest hotel, the Best Western Plus.

The “Plus” part of the name comes from being the second tier of the chain’s new four-tiered system of hotels.

Manager Twyla Bauman said they opened on Jan. 2 to accommodate a frac company that had wanted to get in during

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December.

“We opened specifically for CalFrac,” she said. The company had used a Weyburn hotel and then a local camp before moving in. “They have 34 rooms, and every Tuesday and Wednesday, they have an additional 11 rooms for their crew change,” she said. “It was definitely worth it to open.”

“We had about 60 per cent of the rooms ready, slowly completing them

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over the month of January to 100 per cent.”

The pool and hot tub aren’t ready yet, but will be soon, along with the workout centre. A business centre room, with two computers and a printer, are also in the works.

The CalFrac block accounts for a third to about half of the rooms in the 95-room, two elevator, four-storey hotel located in northeast Estevan.

Of those, 30 have full kitchens. Fourteen of the kitchen-equipped rooms have a Jacuzzi tub, while the remaining 16 have a king-sized bed and hide-a-bed. The remaining rooms have either two queen beds or two queens and a hidea-bed. In the final phases of preparation, several rooms that were planned to be king-sized bed rooms were switched to two queens to accommodate the demand.

“We do have a very nice breakfast area. We offer a deluxe continental breakfast,” Bauman said. They alternate various hot dishes each day. “It’s open by 5 a.m.

If a crew is up at 3 a.m., we’ll have breakfast ready.” ɸ Page C25

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DISTRIBUTION INC. 315A Kensington Ave., Estevan, SK

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

634-8888

Estevan, SK

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

www.apexdistribution.com

PIPELINE NEWS March 2011

C25

Build where the action is ɺ Page C24 Each room has a fridge and microwave, along with a 37-inch plasma TV. The rooms are spacious in size compared to other offerings in the area.

The one thing she wishes the hotel had more of is big-truck parking. If it did, she says they would be nearly full, long term.

As it stands now, they’ve been running over 80 per cent full since the day they opened. For a new hotel, she said, “That’s phenomenal.”

“Estevan is very welcoming. When doing the in-room directories, the whole community was very supportive,” she said.

Surrey, B.C.-based Rajwantjit Sandhy is the developer of the hotel.

“If you’re building a hotel, you want to be where the action is,” Bauman said. Indeed, they are already looking at future hotel developments in the region. The hotel opening comes at a time when southeast Saskatchewan is facing a severe housing crunch.

Bauman grew up in Weyburn, and had worked in hotels ever since high school. She was an assistant manager by the time she was 21, and a full-fledged hotel manager by aged 23.

“If you have any people skills at all, you fall in love with the work,” said Bauman, who is now 33.

After spending six years in Alberta, she’s come back home, purchasing a duplex in Estevan. “I lucked out. It was a sign to come back to Saskatchewan. Everything fell into place.”

“I’ve been hearing about the boom in Estevan for six years,” she said.

Bauman sees a lot of potential for growth in the region.

“I fell in love with Saskatchewan again. It’s where your roots are. I never thought of myself as a big-city girl. You can’t help but love it.”

The Best Western Plus has 11 full-time employees and five parttimers.

“It’s been a very tough process. I kind of lucked out. Two came from Weyburn. It’s all

local people. I haven’t done the foreign working program yet,” Bauman said.

“The staff I have at the front desk all come from different industries.”

The rooms in the new Best Western Plus in Estevan are on the larger size.

This is a king room, with a full kitchen, one of 16. The kitchen includes pots, pans, utensils and cutlery, as well as an oven, microwave and large fridge.

This is the lobby of the new Best Western Plus in Estevan.

VPAT Dozers in Stock

2009 Hitachi ZX240 LC-3, 581 hours, 42” dig & 60” clean up bucket, hydraulic thumb available, warranty

2008 930H, 2810 hours, pipe grapple, bucket & forks

2010 D65PX & D65WX, VPAT Dozer Ripper, warranty

2009 D6N LGP, 1950 hours VPAT winch,accugrade ready.

A new local safety company in the heart of the oilÀeld providing: • Onsite Medical Treatment Centers • Safety Supervision • Emergency Shower Units • First Aid and CPR Training

• Drug & Hearing Testing (to come in the near future) • Mobile Trailer (28 ft) with full medical unit and sleeping quarters Box 309, Alameda, SK S0C 0A0 Phone: 306-485-8688 Fax: 306-486-2278 Email: Áy_e@hotmail.com

ADT’S - COMPACTION - CRAWLERS - EXCAVATORS - MOTOR GRADERS - MOTOR SCRAPERS - TOOL CARRIERS - WHEEL LOADERS - CAT - KOMATSU HITACHI - FIAT ALLIS - KOBELCO - BELL - TEREX - SAMSUNG

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

C26

PIPELINE NEWS March 2011

Development of Sanish/Three Forks Calgary - NuLoch Resources is one of the early companies to develop the Sanish/Three Forks formation in southeast Saskatchewan, also known as the Torquay, right along the U.S. border. During a conference call, NuLoch’s chief executive officer Glenn Dawson offered several insights not only into how the formation is working out for them, but also a contrast to their experience just across the border in North Dakota. Here are some excerpts from the Jan. 19 conversation that also featured Gary Evans, the president and chair of Houston-based Magnum Hunter, which is in the process of acquiring NuLoch for $327 million.

On being the first and royalties: We're just basically – we're the first company to extend the Sanish/Three Forks play into Canada.

We're the only company actually targeting that zone and working it. So the key here, driver, in Saskatchewan, is that the royalty structure is incredibly low, incentivizes operators.

Where we are based on depth, we only pay a 2.5 per cent mineral tax to the Crown in Saskatchewan on the first 100,000 barrels produced. It's hard to find another regime anywhere in the world with that kind of incentive to drill. And that is really the key driver which creates the rate of return for the project in Canada versus, on average, 30 percent royalty on wells in North Dakota. So you can imagine how that affects your bottom line.

Of course, in Canada it's significantly shallower and we're only drilling one-mile laterals because really that's the technology we have that the rigs – that are basic capability. And the royalty in Canada is based on the well length. It's based on the well.

In Saskatchewan it's 2.5 per cent on a Crown lease for the first 100,000 barrels. And then it moves up into the 25 per cent range. There's also a small mineral tax. So your total burden on a Crown well would be 4.2 per cent. In North Dakota, we're us-

“

It's hard to ¿nd another regime anywhere in the world with that kind of incentive to drill.

”

– Glenn Dawson, NuLoch Resources CEO

ing across the board 30 per cent because, on average, that's what we're coming up with as a total burden for our wells in North Dakota.

On two targets: A significant thing in this resource play is that there's two targets. The other significant component is that we're probably looking at a minimum of three wells per section per zone. So if you start looking at EURs (estimated ultimate recovery) in the range of 185,000 to 476,000 EUR from Saskatchewan into North Dakota, that's per well. So you can start to get an idea of the magnitude of recoverable hydrocarbon per 1280 [acre] spacing unit if you were actually to drill three wells per section in the Middle Bakken and in the Sanish.

It gets you into the millions of barrels per section. And that's why the risk potential on our block, using very modest allocation of reserves to Middle

Career Opportunities Business Unit Manager TRICAN WELL SERVICE LTD. is one of Canada's fastest growing well service companies, providing a comprehensive array of specialized products, equipment and services utilized in drilling, completion, stimulation and reworking of oil and gas wells in the Canadian and International marketplace. At Trican, we base our recruitment practices on the belief that a company's greatest asset is its people.

Trican provides services in Fracturing, Cementing, Acidizing, Coiled Tubing, Nitrogen and related services in our field bases ranging from Fort Nelson, BC to Estevan, Saskatchewan.

WE ARE CURRENTLY HIRING:

• SUPERVISORS • OPERATORS • DRIVERS • FRAC HANDS • HEAVY DUTY DIESEL MECHANIC • BULK PLANT OPERATOR • NITROGEN OPERATORS ND • 2 YEAR APPRENTICE HEAVY DUTY DIESEL MECHANIC A valid Class 1 required as well as prior experience in the above pressure pumping operations. Class 3 and selected Class 5 licenses will be accepted. On the job training from the ground up. Seasonal positions available.

Trican offers a dynamic work environment and a competitive salary and benefit package. Please apply in person to any of Trican's field bases or forward your resume and references, in confidence to:

Trican Well Service Ltd. Box 849, Estevan, SK S4A 2A7 Fax: (306) 636-2669 • Email: rfisk@trican.ca

A privately held pipeline and facility construction and maintenance company, based in western Canada is expanding it’s operations into Estevan and its surrounding areas and is looking for a Business Unit Manager.

Bakken, is 31.4 million barrels net to the company; and un-risked 80 million barrels to the company. So those are the kinds of large resource potential numbers that you can attain using current metrics that we've assigned to primarily the Sanish/Three Forks.

On drilling: You'd like it [to be] a two-week breakup, you might get a three-month breakup. Those issues are things that are out of your control.

But we do basically drill a well in under 20 days in Saskatchewan rig-to-rig, right? So it moves along pretty quickly, but our costs are, again, significantly lower than what we're spending in the U.S. So I'd like to keep along with the numbers we have out there on the pages.

On completions: What we are doing in Canada: we are drilling one-mile wells. But we're using cased-hole technology. We're not using a ball drop, Packers Plus-type technology. We case and cement our liner in, and then we're approaching our completions with a high number of stages, 30 per mile which would be like 60 in a two-mile well.

But we're using relatively low tonnages, 10 tons to 20 tons. And that seems to be working for us. [It] keeps our cost down. And we have gone up from 10 tons to 20 tons. So those are the fundamental changes in how we've approached our completion.

We are looking at the results of slick-water fracs in some of the wells.

We even, in high-grade fracs in North Dakota that we've been doing with Samson, have been seeing if we can move that technology forward into Canada. But as of this time, we haven't actually attempted to do a slick-water frac in Tableland.

On leases: In North Dakota, our lease position is excellent.

We don't have any significant expiry issues in Divide County. We've been working with our partner to re-lease option and top lease any leases that were in jeopardy. So we've got a pretty much blue sky visibility, a five-year horizon, without any significant issues.

So on a large contiguous block, [there] is significantly more value than scraps that you can pick up.

[In] Canada, we've taken care of most of our expiry issues for 2010. We did add a bunch of land in last and sale, which increased our net in the Williston to over (71,000 acres).

We've got about eight sections expiring by June of this year, and we're endeavouring to drill as many of those leases prior to June 30 as possible. But it's likely we'll lose two or three sections in Saskatchewan, just based on our ability to get to those leases.

Reporting into a member of the Senior Management Team and working with other company managers and staff, the Business Unit Manager will be responsible for introducing, growing and managing the company’s overall business in the local and surrounding areas.

Key areas of responsibilities include: • Living by the Values of the company • Leveraging and further developing your existing network of industry contracts to support the growth of the business • Managing pipeline and maintenance projects in conjunction with the regional team • Managing the day to day business administration in conjunction with the head ofÀce The ideal candidate will have at least 10 years of progressive experience in pipeline and facility construction or other related upstream oil and gas services, be able to develop, communicate and implement initiatives, build and lead a professional team that successfully contributes to the Business Unit and over all company goals.

If you meet the above proÀle and are looking for an exciting opportunity in a leading organization please submit a cover letter and resume to: Box 730B, Estevan, SK. S4A 2A6.

As an equal opportunity employer we appreciate all expressions of interest, however only those selected for interviews will be contacted.

Essential Coil & Stimulation Services is a company recognized for safety and excellence with in the oil and gas industry. We strive to provide a good working relationship with our customers. Currently we provide services throughout Alberta and Southern Saskatchewan. Essential Coil offers competitive wages, scheduled days off, group beneÀt plan and employee savings plan. If you are an energetic team player with superb attention to detail and strong communication skills, we invite you to apply for the following positions at our Weyburn location:

Coil Tubing Operators Coil Tubing Helpers Class 1 driver’s license is preferred, but all class of drivers are welcome to apply.

Previous oil Àeld experience & valid tickets are an asset Email or fax your resume & a current driver’s abstract to: tschwab@essentialcoil.com Fax: 306-842-8906

PIPELINE NEWS March 2011

Career

Opportunities EMPLOYMENT OPPORTUNITY

C27

Employment Opportunity

Apprentice & JourneymBn

Machinists

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!

Position: Class 1A Drivers • Long haul Canada/US Requirements: • Clean and presentable appearance • Valid Class 1 A license • Clear abstract and safety record • Able to meet DOT requirements including drug and alcohol testing • Excellent customer relations • Strong work ethic BeneÀts: • Competitive wages and availability of overtime • Constant communication with dispatch and load assignment through satellite equipped tractors • Mechanical assistance available 24/7 • Up to date trailers • Become a team member of a close knit mid sized company • Company has 48 years of commitment to the transportation industry and the oil patch • Flexible days off • Comprehensive beneÀt package including life, dental and medical and travel insurance Contact:

Please forward resume with copies of tickets to: resumes@targetsafety.ca or fax to 780-870-5359

Bernard Hullman Phone: 1-888-835-0541 Fax: 306-634-4258 Email: b.hullman@bbaxtertransport.ca Web site: www.bbaxtertransport.ca Address: Box 1631 301 Kensington Ave., Estevan, SK S4A 2L7

Engineering Technologist Our Àrm has an immediate opening for a Civil Engineering Technologist to work on various construction projects in Estevan and area.

Full beneÀt package, proÀt sharing and more.

Wages are negotiable.

Please forward resume to pat.turnbullexcavating@sasktel.net contact our ofÀce to arrange for an interview.

The Grass Is Greener at G-Force Diesel!

We are Expanding and Growing...

We have room for 3rd, 4th Year & Journeymen

Estevan, SK

•

306-634-7276

Grow G row w with ith

StimSol

Excellent Opportunities are now available with StimSol. We are an aggressive, growing oilÀeld service company offering technical well services to the Energy Industry.

We are specialists in the areas of Solvents, Acidizing, Pressure Truck and Nitrogen Pumping Services. Regional Branch OfÀces are located in Blackfalds, Grande Prairie, Red Earth Creek, AB and Estevan, SK.

Positions Available: Nitrogen Operators / Supervisors l Chemical Technician Acidizing Supervisors / Operators l Sales Associates Pump Truck Operators l Mechanic Pressure Truck Operators l Material Specialist Join StimSol and enjoy the beneÀts of a small company atmosphere, with the safety, security and professionalism of the larger companies. Compensation includes: Excellent Wages, Regular Days-Off Schedule, Paid Training and a Comprehensive BeneÀts Program.

Preference is given to Class 1 or 3 drivers with a clear abstract. If you have Service Rig or other OilÀeld experience and are looking for change, contact us!

Permanent and Seasonal opportunities are available.

Fax your resume to 1-780-649-2673 or email jobs@stimsol.com

StimSol Canada Inc. a Western Co.

TRUCK TECHNICIANS

At G Force you will be MORE than a number! We want you to enjoy your career and include you in our staff functions like bus trips to NHL games & diesel truck drag races! Become part of an extremely experienced and KNOWLEDGEABLE team that works in a 20 bay shop with STATE OF THE ART equipment including CAT, Cummins and Detroit Diagnostics. OWNER OPERATED since 1997 with branches in LLOYDMINSTER and ESTEVAN. There is lots of room for ADVANCEMENT and even franchise opportunities.

No shift work - Monday-Friday 7 - 5, 1 hour Overtime per day!

We offer yearly bonuses, full benefits and COMPETITIVE WAGES and a negotiable moving allowance!

Fax resume to HR Department at 306-825-3246 “Find a job you like and you add Äve days to every week. “ ~H. Jackson Browne

We are Western Canada’s PDI Distributor (CAT C15, ISX & Detroit Series 6O) ∙ Programmed ECM’s ∙ HI Flow amd Stronger Exhaust Manifolds ∙ HI Flow Fuel Injectors · Larger Turbos ∙ FASS Fuel Systems ∙ Vibration Dampers ∙ Lipe Clutches∙ Hi Lift Camshafts ∙ Intake Manifolds (ISX)

20 Service Bays Monday to Friday 7:00 AM - 5:00 PM

4403 - 37th Ave. Lloydminster, SK

(306) 825-2875 www.gforcediesel.com

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PIPELINE NEWS March 2011

THE FOLLOWING POSITIONS ARE AVAILABLE IMMEDIATELY DRIVERS/SWAMPERS Clean driving abstract with Class 1A required. Applicants must pass drug and alcohol testing. Safety tickets would be an asset but willing to train.

FORK LIFT OPERATOR Experience required.

Interested applicants fax or email resume to:

Some of the many beneÀts to consider when applying for a position at Bert Baxter Transport in Estevan:

Career

Opportunities

• Full Time, Permanent Employment • Full BeneÀts Packages Available • Clean, Safe Work Environment

Fax: 306-634-4258 • Email: brenda.jensen@bbaxtertransport.ca

Technicoil Corporation

Magnum Cementing Services is currently accepting applications for drivers, operators and supervisors in Lloydminster. Past experience is an asset.

Magnum offers a competitive wage and bonus program. If you are looking for a positive work environment and ability to grow with the company this is the job for you.

3OHDVH HPDLO \RXU UHVXPH WR EORFN#PDJQXPFHPHQW FD

Our COIL WELL SERVICE DIVISION is hiring EXPERIENCED INDIVIDUALS with Coil Tubing and Service Rig experience.

Class 1 or 3Q Driver’s License required.

Our PUMPING AND STIMULATION SERVICE DIVISION is hiring EXPERIENCED INDIVIDUALS with experience in Coil Support Pumping, Acidizing, Remedial Cementing and Nitrogen.

Class 1 or 3Q Driver’s License required.

At Technicoil there is room for advancement, excellent wages, benefits, and on the job bonuses. Please submit your resume and current safety tickets: H2S, PST, First Aid, 5 year Driver’s Abstract to:

“Join our Growing Team”

Reception / Administrative Assistant Reporting to the Base manager, this position will contribute to the overall efficient day-to-day operations of the Estevan Office, and support the work of management and other staff as required.

Duties and Job Responsibilities: x Answer and direct all incoming phone calls in a timely, professional, and courteous manner to the appropriate individual or department x Maintain accurate and up-to-date phone list and communicate changes to answering service x Reply to general information requests with accurate information x Greet visitors to the organization in a professional and friendly manner x Sort incoming mail, faxes, and deliveries for distribution to proper person/department x Prepare and send outgoing faxes, mail and packages x Book travel arrangements, and make reservations as required x Typing of all correspondence and reports for management x Data entry and upkeep of the organization’s databases, ensuring a high level of accuracy x Ordering and tracking of Office Supplies x New Hire Orientations and Exit Interviews x Issuing of Fuel Cards and Glove Coupons to new Hires x Assist with data entry of log book information and auditing x Issuing of purchase orders as required x Ensuring monthly time sheets, expense sheets, and fuel envelops are handed in and forwarded to Red Deer in a timely manner. x Ensure office janitorial requirements are met

Qualifications:

In person: 5400-39139 Hwy 2A Blindman Industrial Park Red Deer County, AB T4S 2B3 Fax: 403-309-3320 Email: employment@technicoilcorp.com

WWW.TECHNICOILCORP.COM Only those selected for an interview will be contacted

x x x x x x

3-5 years of direct work experience in an administrative capacity Office Administrative Diploma or equivalent work experience Proficiency in MS Office Excellent business writing, proofing, and formatting skills.

Maintain positive working relationships with others, both internally and externally Excellent time management skills, attention to detail; the capacity to prioritize by assessing situations to determine urgency x Work cooperatively and effectively with others to set goals, resolve problems, and make decisions to enhance organizational effectiveness; ability to undertake self directed tasks when necessary Why Canyon?

Canyon is a dynamic, rapidly growing company powered by motivated and successful people. Canyon’s business continues to be conducted with integrity and consistently reflects the value of our diverse workforce, customers and suppliers. Our premium compensation package contains an industry leading benefits plan, including RRSP matching and a confidential employee and family assistance program. If you value success achieved in an ethical environment, built on strong relationships, please contact us.

To apply: send your resume to hr@canyontech.ca or fax to (403) 314-0886

FRACTURING

ACIDIZING

COILED TUBING CEMENTING

www.canyontech.ca

s ’ t a P OFFROAD IMMEDIATE INTERNATIONAL OPPORTUNITIES FOR YEAR ROUND WORK – NO BREAKUP! CanElson Drilling Inc. is looking for experienced

DRILLERS / DERRICKHANDS / MOTORHANDS

Fax: (780) 872-5239

SpeciÀc Targeting

Contact your local Pipeline News Sales rep. to get you 28,000 Circulation on your career ad!

to crew our 3600m telescopic double drilling rigs for year round work near Midland, Texas, USA. CAODC wages, full beneÀts package, employee share savings plan and the potential for stock options. Complete the application on our website, www.canelsondrilling.com, e-mail your resume and tickets to hr@canelsondrilling.com or fax 403-266-3968.

Applicants with a valid Rig Tech ticket, who are First Nations or Dual Canadian/US citizenship will be given priority. Last year our US personnel did not miss even ONE day due to weather, and the rig contracts are up to 5 years!

TRANSPORT LTD. HIRING IMMEDIATELY • $3,000 base salary + Job bonus + Living allowance + BeneÀts package • No out of town travel • Minimum Class 3 required

Call Chris: (306) 741-8152

PIPELINE NEWS March 2011

C29

HWY 39 EAST ESTEVAN, SK 306.634.6232 24 HR SERVICE: 306.421.6411 info@doallmetal.com

www.doallmetal.com

A Modern Progressive Kenworth Dealership WE STOCK A LARGE INVENTORY OF HOSE, HOSE ENDS, ADAPTERS, FITTINGS, COUPLINGS, PUMPS & O-RINGS

Custom Truck Sales Inc. is growing and expanding in all four locations: Saskatoon, Regina, Estevan and Winnipeg. We are currently accepting applications for the following positions:

Heavy Duty Technicians – All Locations Parts Supervisor - Saskatoon Truck Sales Representative - Regina Custom Truck Sales Inc. offers an attractive remuneration package that includes a very competitive pay program with an extensive employee benefit package.

We thank all applicants for their interest. Please submit your resume by fax or email to: Giles Bourgeault – Human Resource Manager Fax: 306-536-3950 Email: gil.bourgeault@customtruck.ca

MANULI IS A WORLD LEADER IN MANUFACTURING OF HOSES & COUPLINGS

OILFIELD DRILLING PRODUCTS

SPECIALTY ENGINEERED

GOLDEN DRILL FLEX HOSE -MAXIMUM FLEXIBILTY -MAXIMUM MECHANICAL, WEATHERING & FLUIDS RESISTANCE -FLAME RETARDANT (MHSA) & ANTISTATIC PROPERTIES

CYLINDER & VALVE REPAIR - PUMP & MOTOR REPAIR - ACCUMULATOR REPAIR - HOSE REPAIR HYDRAULIC PLUMBING - HYDRAULIC HOSE & FITTINGS - TROUBLESHOOTING - CUSTOM DESIGN MOUNTING OPTIONS - TUBE FLARING & BENDING - CUSTOM POWER UNITS - FILTRATION - WINCHES

Hiring for All Locations

Field Service Mechanic - Service - Estevan, SK The purpose of the Field Service Mechanic includes but is not limited to: Responsible to maintain and operate a Àeld service truck to handle day-to-day Àeld and shop maintenance services and perform overhaul of natural gas engines and compressors within the oil and gas industry.

Responsibilities: • Provide mechanical services in both Àeld and shop areas • Work independently with customers • Supervise as required • Comply with all company quality and Health and Safety work procedures • Maintain and develop positive professional relationships with existing and potential customers • Be available and participate in after hour calls QualiÀcations: • Valid Journeyman Mechanic or Milwright CertiÀcate • Ability to lead, direct, motivate and supervise team members • Possess well rounded knowledge of engine and compressor performance and operations, screw compressor experience preferred • Minimum 3 years Àeld service work experience • Experience with Waukesha, Cat and Ariel, Mycom and Frick Compressors considered and assset • Highly motivates and well organized • Flexible with work schedules to meet scheduling needs • Strong interpersonal and communication skills Wage or Salary Range: Commensurate with experience and education.

Interested: Please apply online at www.enerÁex.com Careers & Training > Current Openings Send your resume via Fax to: (403) 529-6537 E-mail Ron Durbeniuk: rdurbeniuk@enerÁex.com Drop off your resume in person at: EnerÁex Ltd. OfÀce, 1269 Brier Park Drive NW, Medicine Hat, AB T1C 1T1

Canyon is the fastest growing Fracturing Company in Western Canada. If your looking for a career with a leading organization that promotes TEAM WORK, SUCCESS and INNOVATION then we’re looking for YOU!

Estevan - Medicine Hat - Grande Prairie - Red Deer We’re Looking for qualified people for the following positions: x x x x x x x x x

Frac Supervisors Crew Cabbers Data Van Operators Blender Operators Chemical Operators Fluid Pump Operators Iron Truck Operators Bulk Operators Coil Operators

Applicants must be: x x x x x

Self motivated Have a clean Class 1 License Safety Focused Driven to succeed Willing to work flexible hours

Why Canyon?

Canyon is a dynamic, rapidly growing company powered by motivated successful people. Canyon’s business continues to be conducted with integrity and consistently reflects the value of our diverse workforce, customers and suppliers. Our premium compensation package contains an industry leading benefits plan, including RRSP matching and a confidential employee and family assistance program. If you value success achieved in an ethical environment, built on strong relationships, please contact us.

Please submit your resume with current driver’s abstract by: Email: hr@canyontech.ca or fax: (306) 637-2052 We thank all applicants; however only those selected for an initial interview will be contacted .

FRACTURING ACIDIZING COILED TUBING CEMENTING

x

www.canyontech.ca x

C30

PIPELINE NEWS March 2011

SERVICE MANAGER Needed Immediately â&#x20AC;˘ Wage negotiated according to experience. â&#x20AC;˘ Experience in tanker trailer repair would be an asset. â&#x20AC;˘ Hours of operation : Monday - Friday 7:30am - 4:00 p.m. â&#x20AC;˘ Shift work is an option as well as overtime . â&#x20AC;˘ Dental and prescription plan . â&#x20AC;˘ Work is full-time and 95 % indoors.

5 â&#x20AC;&#x201C; 22ND Avenue S.E. P.O. Box 964 Weyburn, SK S4H 2L2 Tel.: 306-842-6100 Fax: 306-842-6101

Please send your resume to Suzanna: Fax:(306) 842-6101 or Email: nostadts@tremcar.com .

Must have a valid drivers licence.

Calfrac has grown from a small oilfield services company to an international leader in fracturing and coiled tubing well services.

Rotational Opportunities As a key part of our strategy, weâ&#x20AC;&#x2122;ve developed a rotational schedule for our Canadian operations.

The 3-weeks-in, 2-weeks-out field positions currently available are:

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On your application, please include this code: CWS001 Call us: 1-877-908-FRAC (3722) Fax us: 1-403-234-6655 Apply online: www.calfrac.com/careers

PIPELINE NEWS March 2011

C31

Resources Guide Bulk Agency

RICK CORMIER Manager

Box 609 Carlyle, SK S0C 0R0 www.truetorq.ca

Bus: (306) 634-8084 Cell: (306) 577-8833 Fax: (306) 453-6075 ttorq@hotmail.com

912 6th Street, Estevan

634-7275 Toll Free: 1-866-457-3776

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

â&#x20AC;˘ 1 Day Incident Investigation Workshop â&#x20AC;˘ Industrial Supervisor Training We can customize these courses to the clientâ&#x20AC;&#x2122;s needs.

Visit us at: www.dbsafetysolutions.com

Box 208

Estevan, SK

S4A 2A3

461-8471 â&#x20AC;˘ 461-8472 â&#x20AC;˘ 461-8473

D.B. Safety Solutions Inc. Don Beahm CRSP, CHSC Weyburn, Sask. Phone: 306-842-3584 â&#x20AC;˘ Cell: 306-861-7093

lancew@aspentrailer.com www.aspentrailer.com Aspen Custom Trailers 6017-84th Street S.E. Calgary, AB T2C 4S1

Lance Wotherspoon Regional Sales Manager

[T] 403 236 2244 [F] 403 236 8829 [C] 403 813 6319 [Toll Free] 877 236 2244

Call: Clinton Gibbons

OIL / INDUSTRIAL / AGRICULTURAL / AUTOMOTIVE

352-7668

TOLL FREE 1-877-778-7460 WEEKDAYS 7:30 A.M. - 5:30 P.M. SATURDAYS 9 A.M. - 1 P.M.

STOCKING ENGINE PARTS

1404 SCARTH ST., REGINA, SASK. website. www.continentalengine.ca FAX 525-8222

continentaleng@sasktel.net

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Dwight G. Blomander, CFP, CLU, CH.F.C., RHU â&#x20AC;˘ Life Insurance â&#x20AC;˘ Disability Insurance â&#x20AC;˘ Critical Illness Insurance â&#x20AC;˘ Employee BeneĂ&#x20AC;t Plans Tel: (306) 359-2015 â&#x20AC;˘ Fax: (306) 359-3034 E-mail: dwight@dgbcanada.ca Toll Free: 1-855-359-2015 â&#x20AC;˘ Cellular: (306) 421-1935

Life Licence sponsored by The

Great-West Life ASSURANCE COMPANY

105, 335 Hoffer Drive, Regina, SK. S4N 6E2

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Maintenance

Cell numbers: 483-8024, 483-7024, 483-8148 Home: 486-2143 â&#x20AC;˘ Fax: 486-4855

Box 12 Frobisher, SK. S0C 0Y0 merv_and_deb@xplornet.ca a l t u s g e o m a t i c s . c o m

TERRY DODDS (24 hrs.) (306) 634-7599 Cell. (306) 421-0316

M.E.T. OILFIELD CONST. LTD. â&#x20AC;&#x153;All Your Construction and Maintenance Needsâ&#x20AC;?

SPECIALIZING IN: ENGINES, PUMP UNITS, UNIT INSPECTIONS, PIPE FITTING, TREATERS AND PRESSURE TICKET WELDING Box 1605, Estevan, Sk. S4A 2L7 Cell. (306) 421-3174, (306) 421-6410, (306) 421-2059 Fax: (306) 634-1273

Lloyd Lavigne â&#x20AC;˘ Kirk Clarkson Owners/Managers 6506 - 50th Avenue Lloydminster, AB

Phone: (780) 875-6880

5315 - 37th Street Provost, AB T0B 3S0

Phone: (780) 753-6449

Fax: (780) 875-7076

24 Hour Service Specializing in Industrial & Oilfield Motors

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

C32

PIPELINE NEWS March 2011

From design to final pressure test, we’ll be there every step of the way! ®

®

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!

Red Thread® II (2”-24”) pipe and fittings can be used for produced water, salt water, hydrocarbon and H2S vapours.

Star® Fibreglass standard & API design high pressure anhydride cured epoxy line pipe, fittings, and flanges are on hand to meet the delivery requirements of any project, large or small.

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

What is another expression for “peace of mind”?

How about 100% factory proof tested?

Tel: (403) 861-9801 Allen Routh

Field Service & QC Tel: (403) 861 9801 Daryl Bambridge

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

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

Estevan 294 Kensington Tel: (306) 636 2002 Tim Beatty Lorne Schlemko

®

Authorized Distributor

®

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

www.frpsolutions.com

Check out the new Model 2306 electric taper tool.

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

Woodstock Estevan Regina Calgary Edmonton