Pipeline News April 2012 by Pipeline News

PIPELINE NEWS Saskatchewanâ&#x20AC;&#x2122;s Petroleum Monthly

April 2012

Canada Post Publication No. 40069240

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Volume 4 Issue 11

Training For Tomorrow B1-22 - SETI Special Report

C1 - Trades intake on the rise at Lakeland

Jordan Allard is taking introducĆ&#x;on to the electrical industry at the Regina Trades and Skills Centre. See related stories on Page A10 & A31.

Photo by Brian Zinchuk

PIPELINE NEWS April 2012

INSIDE A SECTION 3

Crescent Point's Stoughton Crude-By-Rail

PTRC Signs Agreement With The Dutch

Editorial

Opinion

Flint Purchased by URS

10 Students Get Paid To Take Training 13 Open House Planned For Major Research Project

B SECTION 1 6

Saskatchewan Energy Training InsƟtute: A New Jewel

Weather Had Major Impact On SETI ConstrucƟon

24 CP Rail Expands Crude-By-Rail In North Dakota

C SECTION 4

Lakeland Buys Boiler For HOET

10 Champion 2 Wins Lloyd. Bonspiel

Puƫng SETI Programming In Place

14 Spinning Out On Purpose

16 Unity Pumped By O&G Spinoīs 20 Unity Oilperson's Bonspiel

PIPELINE NEWS Saskatchewan’s Petroleum Monthly

May 2012 Focus Contact your Sales Rep to be a part of the focus edition

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PIPELINE NEWS April 2012

This new transload site for Crescent Point popped up early in the new year, just west of Stoughton. Photo by Brian Zinchuk

TOP NEWS

Crescent Point sets up its own crude-by-rail facility By Brian Zinchuk Pipeline News Stoughton – Driving along Highway 33 near Stoughton, there’s a good chance you’re likely to see a whole bunch of black railway tanker cars along the side of the highway, just west of the town. It’s the latest crude-by-rail facility to be set up in southeast Saskatchewan, and apparently has implemented some lessons learned from other facilities. For instance, the new transload facility, built and operated by Crescent Point Energy Corp. is located outside of town, unlike Canadian Pacific’s Estevan transload facility. And it’s adjacent to a provincial highway, not a paved RM road, like CN’s Willmar facility. The company has also worked with the RM of Tecumseh on the roads issues. Dale Rinas is Crescent Point’s southeast Saskatchewan field manager, based in Weyburn. He provided some details on the new facility, which was built in January and opened in February. “Our site can hold 31 cars at a time,” he said, noting that a unit train is 80. Each car holds 600 to 650 barrels of oil.” The Stoughton facility is different from most rail facilities in a couple of ways. First, it’s on a shortline, a line that was once owned by CN, but is now run by Fillmore-based Stewart Southern Rail, primarily for agricultural purposes. As CN pulled out the track east of Stoughton years ago, the community is effectively the end of the line. Since there will be no traffic going past it, no siding is needed, and tanker cars can be loaded directly on the regular rail line. It also means many more cars can be stored there. Pipeline News counted over 70, effectively a unit train, on March 9. There are two transloading units on site, and cars are loaded from the top in this configuration. What’s perhaps most important about the Stoughton transloading facility is its location: smack dab in the middle of the Viewfield Bakken play, and just a few miles from Crescent Point’s major facility at 13-5-8-8W2, the Viewfield gas plant. The company constructed two 60,000-bbl. tanks there in recent years. That begs the question: will Crescent Point simply pipeline its oil to the transload site from the Viewfield plant? “That’s in our plans and being negotiated,” Rinas said, adding it’s being looked at, but has not yet been decided. If such a pipeline were built, tankage would be required, and the site would start to take on some of the properties seen in more substantial facilities in

North Dakota, where crude-by-rail has become the key alternative to pipeline shipments. And therein lies the explanation of why Crescent Point is now shipping crude-by-rail. Rinas said, “Having this rail to ourselves gives us diversity beyond the Enbridge pipe. You’ve got diversity in other markets, and if the pipeline has issues, diversity in shipping.” It’s no secret that crude traded on the West Texas Intermediate benchmark is going for a substantial discount compared to the more global Brent benchmark. On March 19, the April contract for WTI closed at $107.06 per barrel, while North Sea Brent blend went for $126.13. The Brent price has a difference of $19.07, or 17.8 per cent higher. “With rail, you can get to the East Coast,” Rinas said. That would allow Crescent Point to trade in that market, or any other on North America, for that matter. Crescent Point’s southeast Saskatchewan production is around 60,000 boepd, but once you strip out the gas and NGLs, the oil production number is closer to 46,000 to 47,000 bpd. Coincidentally, an 80-car unit train at 650-bbl. per car would have a capacity of 52,000, or all of Crescent Point’s daily production from the region, in one train. That’s not going to happen, however. With the facilities currently in place, Rinas noted, “You can’t load all that in one day. With two transloaders, we’re doing about 8,000 barrels per day. “We have commitment to pipe as well.” In March, they had 260 cars lined up, but not all were able to be delivered. “We’re prepared to ramp up to 10,000 to 15,000 barrels per day by midsummer,” Rinas said. “We’re up to five guys now. We brought them on early and trained them as battery operators.” Crescent Point’s growth trend is continuing upward, with a recent purchase of PetroBakken interests east and west of Stoughton that will allow for unitization and waterflooding. (See related story page ????) The company is also the leading player in the Lower Shaunavon play, an area that is coincidentally also served by a short line rail operator and has growing production. Rinas said they are looking at similar options at Shaunavon, but that has not yet been decided. Asked if other companies would be able to use the Stoughton facility for shipping their crude, Rinas responded, “Right now we’re busy moving our own oil.”

PIPELINE NEWS April 2012

BRIEFS

There’s a waiƟng list for outdoor booths at this year’s Redvers Oil Showcase. File photo

Torquay sets 2012 budget

Torquay Oil Corp. has approved a 2012 capital budget of approximately $10 million that will be focused on further development of the company’s light oil drilling program in the Queensdale and Midale areas of southeast Saskatchewan and the further delineation of its Bakken play at Lake Alma, Saskatchewan. The company is currently producing approximately 605 boepd (97 per cent light oil). In addition, Torquay announced that it has completed its previously announced non-brokered private placement to Phil Besler, the company’s vice-president of operations, of 100,000 class A shares at a price of 27 cents per share for gross proceeds of $27,000, to be used for general corporate purposes.

Alberta Star drills new well at Landrose Alberta Star Development Corp. has participated in drilling and completing a new well (0.5 net) situated on Section C-13-6-50-25-W3, targeting the McLaren formation, on its interests at the Landrose property in westcentral Saskatchewan. The new well is expected to be brought on production at initial production rates of 60 (30 net) bbl. per day, comparable to the initial rates of the company’s other producing wells on the Landrose property. Briefs courtesy Nickle’s Daily Oil Bulletin

Indoor booths were all but sold out by March 19. File photo

Redvers Oil Showcase proves popular with vendors By Brian Zinchuk

in reference to attendance. This year they are seeking to increase that. She noted many companies encourage their staff to attend Redvers – When the organizers of the Redvers Oil Show- such shows. “There’s always new technology to check out, new things to case met on March 19, they had some good news. At that time, see, new companies in the field that have a slightly different take all but four of the booths for the show had been sold. That mean 87 indoor booths and 42 outdoor booths had on things,” Brisebois said. The show will run from noon until 4 p.m. on Thursday, May been sold, according to Leta Brisebois, a petroleum engineer 10. The event will kick off with a lunch-and-learn session from with Crescent Point Energy Corp., and one of the organizers. The event will run over two days, May 10 and 11, a Thurs- Enform. That evening will see a roast pork and beef banquet. day and Friday. That’s a change from the last show two years Painted Pony president and CEO Patrick Ward will be the ago, when the event ran Friday and Saturday. They found that guest speaker that night. Friday, May 11 will see an exhibitors’ breakfast, followed the Friday had “phenomenal attendance,” but the Saturday was by the trade show running from 10 a.m. to 4 p.m. Enbridge is quite slow. Brisebois said, “Two years ago we were in the 1,100 range,” expected to do a talk on this day as well.

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PIPELINE NEWS April 2012

BRIEFS

Sask. partners with research groups

Strong across the basin

The Petroleum Technology Research Centre signed a memorandum of understanding with a Dutch research centre in early March. In the front leŌ is Dr. Malcolm Wilson, CEO PTRC, on the right John van Pol, managing director INCAS3. In the back: Judie Dyck, Saskatchewan Honorary Consul to the Netherlands, Canadian Ambassador to the Netherlands James Lambert, Honorable Rob Norris Saskatchewan Minister of Advanced EducaƟon, Employment and ImmigraƟon, and Henk MaƩhijsse, alderman of the municipality of Assen in the Dutch province of Drenthe. Photo submiƩed

By Brian Zinchuk Assen, Netherlands - Advanced Education, Employment and Immigration Minister Rob Norris signed a memorandum of understanding March 6 in The Netherlands with the Petroleum Technology Research Centre (PTRC) of Regina, the University of Regina and CATO2 of the Netherlands. The agreement will encourage the parties to share information on carbon capture and storage (CCS) through student exchange, research collaboration and technology transfer. “This partnership between world leaders specializing in enhanced oil recovery and carbon storage research will enrich both Saskatch-

ewan and The Netherlands,” Norris said. CEO of the Petroleum Technology Research Centre and University of Regina Adjunct Professor Dr. Malcolm Wilson also participated in the signing. PTRC is a not-forproﬁt research and development organization managing one of the world's largest CO2 storage projects – WeyburnMidale CO2 Project. CCS is a major area of research at the University of Regina. CATO is the Dutch national research and development program for CO2 capture, transport and storage. Like Saskatchewan, The Netherlands is redeveloping old oilﬁelds by employing enhanced recovery techniques using steam and CO2.

The arrangement will likely see a few students come to Canada to study, working with enhanced oil recovery programs at the University of Regina that are funded by the PTRC, according to Norm Sacuta, spokesperson for PRTC. The agreement is ongoing, he added. While in the Netherlands, PTRC and Minister Norris also signed an agreement to work together with Netherlands-based sensor technology institution INCAS³. This agreement will give Saskatchewan access to critical sensor technologies needed to deploy new technologies for enhanced heavy oil recovery. “Through our Canadian partnerships, we have the

opportunity to apply our expertise to challenging measurement problems, ranging from water quality monitoring to oil reservoir charting, in an environment that provides the ultimate test for the robustness and reliability for our sensor systems,” INCAS³ managing director John van Pol said. INCAS³ has already established partnerships with PTRC, CanNorth, the University of Saskatchewan, and the Northwest Nations Education Council and has ongoing discussions with the Saskatchewan and National Research Councils.

Rig activity remained strong across the Western Canadian Sedimentary Basin into late February before the inevitable spring breakup shutdown. The week of Feb. 24 was the seventh straight week that utilization rates remained in a band between 83 per cent and 86 per cent. Rig Locator records showed there were 673 rigs working across the western provinces that week, with 119 rigs down (85 per cent utilization rate). Saskatchewan had the highest utilization rate of the four western provinces, with 91 per cent of its ﬂeet active during the week (the same utilization rate as the previous week). There were 106 active rigs in the province and 10 rigs were down. Alberta rig activity remained steady from the previous week with 84 per cent of the ﬂeet working. There were 491 rigs working in the province the week of Feb. 24 week. In British Columbia, 57 rigs are active for an 85 per cent utilization rate, while in Manitoba there are 19 rigs working for 86 per cent utilization. The most active operator was Husky Energy Inc., with 35 active rigs. Penn West Petroleum Ltd. nabbed second place with 31 rigs at work across the basin. Canadian Natural Resources Limited had 25 active rigs, while Cenovus Energy Inc. and ConocoPhillips Canada Limited tied for fourth with 20 active rigs each. Husky had 12 rigs drilling exploratory hole that week, the most of any producer. Encana Corporation had nine rigs performing exploratory work.

Briefs courtesy Nickle’s Daily Oil Bulletin

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PIPELINE NEWS April 2012

PIPELINE NEWS

EDITORIAL

Mission Statement: Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people. Publisher: Brant Kersey - Estevan Ph: 1.306.634.2654 Fax: 1.306.634.3934 Editorial Contributions: SOUTHEAST Brian Zinchuk - Estevan 1.306.461.5599 SOUTHWEST Swift Current 1.306.461.5599 NORTHWEST Geoﬀ Lee - Lloydminster 1.780.875.6685

Associate Advertising Consultants: SOUTHEAST • Estevan 1.306.634.2654 Cindy Beaulieu Candace Wheeler Kristen O’Handley Deanna Tarnes Teresa Hrywkiw SOUTHWEST • Swift Current 1.306.773.8260 Doug Evjen Stacey Powell NORTHWEST • Lloydminster Randi Mast 1.780.875.6685 MANITOBA • Virden - Dianne Hanson 1.204.748.3931 • Estevan - Cindy Beaulieu 1.306.634.2654 CONTRIBUTORS • Estevan - Nadine Elson To submit a stories or ideas: Pipelines News is always looking for stories or ideas for stories from our readers. To contribute please contact your local contributing reporter. Subscribing to Pipeline News: Pipeline News is a free distribution newspaper, but is now available online at www.pipelinenews.ca Advertising in Pipeline News: Advertising in Pipeline News is a newer model created to make it as easy as possible for any business or individual. Pipeline News has a group of experienced staﬀ working throughout Saskatchewan and parts of Manitoba, so please contact the sales representative for your area to assist you with your advertising needs. Special thanks to JuneWarren-Nickle’s Energy Group for their contributions and assistance with Pipeline News.

Published monthly by the Prairie Newspaper Group, a division of Glacier Ventures International Corporation, Central Oﬃce, Estevan, Saskatchewan. Advertising rates are available upon request and are subject to change without notice. Conditions of editorial and advertising content: Pipeline News attempts to be accurate, however, no guarantee is given or implied. Pipeline News reserves the right to revise or reject any or all editorial and advertising content as the newspapers’ principles see ﬁt. Pipeline News will not be responsible for more than one incorrect insertion of an advertisement, and is not responsible for errors in advertisements except for the space occupied by such errors. Pipeline News will not be responsible for manuscripts, photographs, negatives and other material that may be submitted for possible publication. All of Pipeline News content is protected by Canadian Copyright laws. Reviews and similar mention of material in this newspaper is granted on the provision that Pipeline News receives credit. Otherwise, any reproduction without permission of the publisher is prohibited. Advertisers purchase space and circulation only. Rights to the advertisement produced by Pipeline News, including artwork, typography, and photos, etc., remain property of this newspaper. Advertisements or parts thereof may be not reproduced or assigned without the consent of the publisher. The Glacier group of companies collects personal information from our customers in the normal course of business transactions. We use that information to provide you with our products and services you request. On occasion we may contact you for purposes of research, surveys and other such matters. To provide you with better service we may share your information with our sister companies and also outside, selected third parties who perform work for us as suppliers, agents, service providers and information gatherers.

Go east, young bitumen! Here’s a conundrum. TransCanada’s large natural gas shippers are facing rising tolls on their mainlines. This is due to the low price of gas, resulting in falling production which in turn means underutilization of TransCanada’s mainlines. The rising tolls make it even less economic to ship gas these days, at a time when you can hardly give gas away. Yet Alberta oilsands production absolutely needs an outlet for its growing production. The proposed Keystone XL pipeline is foundering, if not dead in the water. Enbridge’s Northern Gateway to the Pacific may face similar hurdles. So along comes Alberta’s Wild Rose Party leader Danielle Smith, who said on March 8 that Alberta oilsands production should be going east instead, to displace foreign oil in Eastern Canada. Indeed, she was quoted in the National Post as saying, “With pipelines in place all the way to Montreal, the next step would be to build a pipeline to the deepwater port in Saint John, N.B., that currently imports crude. “Let’s upgrade more oilsands in Canada using retrofitted existing facilities across the country. This would increase the use of domestically produced crude, it would eliminate imports, then we would export the remainder into new markets using an Atlantic marine route.” Think about that for a second. TransCanada already has existing pipe, in the ground, that is underutilized and could be repurposed for oil. It’s not that big a stretch, since the idea comes from the company’s own playbook. The original Keystone Pipeline (not XL, mind you), was a repurposing of its oldest gas line, a 20-inch line, through Alberta, Saskatchewan and Manitoba. It was the first to go in the ground, back in the ’50s. The nice thing about repurposing an old line is that nearly all the difficulties the proposed new lines are fighting go away. The right-of-way has been bought

and paid for, and in existence since the late ’50s. Better yet, you’re making new money off old capital investment. The tough part would be getting approvals for Eastern Canada, but if worst came to worst, oil could be loaded on tankers in Montreal and shipped to eastern refineries. And from a corporate perspective, at least for TransCanada, it is much, much cheaper than building an entirely new line. Quicker, too, once approvals are in place. The question is, do refineries in Central and Eastern Canada want bitumen instead of easy to refine Middle Eastern oil? The Shell Canada Montreal East Refinery, with a 161,000 barrel per day capacity, could not be sold in 2010, so the decision was made to downgrade it into a terminal. Could this refinery be repurposed? What about Suncor’s Montreal Refinery, with a similar 160,000 bpd capacity. If anyone has an interest in refining dilbit, you would think it’s Suncor. Between those two refineries alone, you have about a third of the capacity of the Keystone XL spoken for. And TransCanada’s mainline already runs to Montreal. Add the St. John, New Brunswick Irving Oil refinery, the biggest in Canada at 300,000 bpd capacity, and now you have two-thirds of Keystone XL’s capacity taken care of. What Smith is proposing is not rocket science. Nationalistic? Definitely. A way to insulate Canada from foreign oil disruptions, like, oh, say Iran closing the Strait of Hormuz? Absolutely. It would also byand-large remove the worrisome issue of not having a strategic oil reserve, because Canada would be for the most part self-sufficient. While there would be billions needed in refinery upgrades, conversions and possible expansions, the total cost is likely substantially less than building an entirely new Keystone XL pipeline. The bonus? We don’t have to concern ourselves with the Americans rejecting our oil.

PIPELINE NEWS April 2012

OPINION From the Top of The Pile By Brian Zinchuk

A major training opportunity missed just as new school gets going This past month I spent much of my time chronicling the new Saskatchewan Energy Training Institute as it goes into its first busy training season in its new $14.2 million building. In writing well over a dozen stories on this beautiful new facility, one thing stood out in my mind: the Levels 1 and 2 rig tech program for this year had been cancelled, although Level 3 is still a go. Four years ago, while still in North Battleford, I had new neighbours move in next door. The husband happened to be a driller. That spring he had to go to Estevan for several weeks to take the rig technician course. I even wrote a story about him as one of the first pieces I did for this paper. It ran on page A12 of our inaugural edition in June 2008. Ben Heilman had just completed his Level 2 rig tech course. In that story I wrote how Heilmen explained, “Work on the rigs has been a lot of old school-style training, where you work in a position until you have the opportunity to move up. It seemed to be a big garden secret. Nobody wanted to teach you the next level, and then you got stuck with it and had to figure it out.” Flash forward to the last two years, when nearly every drilling contractor I have spoken to is crying out for skilled rig hands, particularly derrickhands, motorhands and drillers. Some companies are even offering bounties if workers can recruit their bud-

dies. Senior managers have told me they have drillers who have had only two or three years on the rig since they set foot on the drilling floor. This last winter, Saskatchewan’s rig activity ran largely in the mid-80s for percentage in use. The rig count was often around 100 to 110 active rigs. It is in this environment that the Saskatchewan Apprenticeship and Trade Certification (SATCC) cancelled the first two levels of the rig tech program? Something wasn’t right. Indeed, something was not right. Talking to the director of apprenticeship, Rick Ewen, I found out that industry had dropped the ball. STACC had set up courses for 20 people in Estevan through SETI for each of Levels 1 and 2. “One person signed up for Level 1, seven for Level 2,” he said. “The response from industry just was not there.” Courses can’t run if there are not enough students to run them. It’s not that they didn’t have notice. Calls went out in October, December and February to both apprentices and the companies they worked for. (To take part in the program, you have to already be employed in the industry.) Ewen suspects that with a lot of work out there, there may be some reluctance to leave it and go to school.

However, the three-week long program is usually offered during spring breakup. In addition to SETI, it is also offered at Great Plains Regional College’s Warman facility. In Alberta, such training is supposedly compulsory, but with such a shortage of workers, it seems there’s plenty of winking and nodding going on out there. So here we have a new, multi-million dollar building, stated purpose of which is energy training, yet one of the premier courses the school is set up to offer has been dropped for this year. All of this is at a time when the industry needs every person it can find in with precisely that qualification. For all the drilling companies out there, big and small, there’s little excuse for not pushing some of your people to take the rig tech program. Many companies should have been able to fill the entire allotment themselves, but obviously did not. If they’re crying out for skilled workers this summer, it seems there may be some crocodile tears shed. It’s a shame this opportunity has been missed. Let’s make sure it doesn’t happen again. Brian Zinchuk is editor of Pipeline News. He can be reached at brian.zinchuk@sasktel.net.

Lee Side of Lloyd By Geoff Lee

Numbers don’t lie, Saskatchewan's a people magnet Go west young man, woman and child. A whole lot of Canadians and immigrants did just that between 2006 and 2011 during the latest population census. All Western Canadian provinces showed population gains with Alberta leading the way with a population growth of 10.8 per cent, followed by seven per cent in British Columbia, 6.7 per cent for Saskatchewan and 5.2 for Manitoba. The 2011 census counted more than one million people in Saskatchewan for the ﬁrst time since 1986. The increase in the population growth rate in Saskatchewan was mainly the result of higher immigration levels and higher net interprovincial migration. The province received more than 28,000 immigrants between 2006 and 2011, compared with approximately 9,500 between 2001 and 2006. Saskatchewan also had net gains of almost 12,000 interprovincial migrants in the past ﬁve years, whereas it recorded net losses of 35,000 people during the previous Census period from 2001 to 2006.

The attraction, of course, is jobs in a booming economy led by oil, agriculture, and gas and potash mining. Saskatoon and Regina both had population gains of 11.4 per cent from 2006 to 2011. The municipality of Martensville had the second highest rate of growth in the country at a whopping 55 per cent. Lloydminster had a population jump of 20.4 per cent on the Saskatchewan side and 13.3 per cent in Alberta, proving the strength and stability of the heavy oil industry that drives that border city economy. Some of the population gains in the city took place during the recession years of 2008 and 2009. In 2011, Lloydminster completed the rebound with record setting building permits and there is no let up in new construction in 2012. With rapid growth, of course, comes a shortage of housing and inflated prices for the available supply of accommodation, but anyone who bought a house or condo in the last five years in Saskatchewan has profited from the decision.

All indications are the strong oil industry in the province will likely continue given the current price of oil at just over $100 a barrel and upward pressure on prices from turbulent times in the Middle East. In addition, once the U.S. presidential election is over this fall, work could proceed on the construction of the Keystone XL pipeline through Saskatchewan, generating hundreds of jobs and tax revenues for communities along the route. What is hurting the oil industry is a shortage of available skilled labour due to retirements and stiff competition for available workers across Western Canada. In Alberta, Calgary’s population rose 12.6 per cent followed by Edmonton at 12.1.per cent. More apprenticeship training will be needed to fill the gap, along with targeted training opportunities to under utilized sectors of the workforce such as First Nations and women. Statistics can be interpreted in dozens of different ways but there is no denying Saskatchewan is a land of opportunity and a great place to live work and play – 1,033,381 people can’t be wrong!

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

PIPELINE NEWS April 2012

Half a year after purchasing Carsons, quarter of 2012, to be accretive to URSâ&#x20AC;&#x2122; 2012 GAAP earnings, and to increase URSâ&#x20AC;&#x2122; revenues from the oil and gas sector to approximately 22 per cent of total revenues. Flint has approximately 10,000 employees and a network of approximately 80 locations in North America. The companyâ&#x20AC;&#x2122;s diversiďŹ ed activities span the full cycle of oil and gas exploration and production, including constructing well pads, moving rigs, manufacturing processing equipment, installing small and mid-diameter pipelines, transporting ďŹ&#x201A;uids, performing a wide range of mid-cycle production services, and constructing and maintaining large oil sands facilities. Revenues from Western Canadaâ&#x20AC;&#x2122;s oil, oilsands and gas producing regions accounted for approximately 80 per cent of Flintâ&#x20AC;&#x2122;s revenues for the trailing 12 months from September 30, 2011, with the remaining 20 per cent coming from the United States. Flint is expected to add approximately $3.5 billion to URSâ&#x20AC;&#x2122; book of business

Carson headquarters in Lampman.

San Francisco, Calgary (BUSINESS WIRE)â&#x20AC;&#x201D;URS Corporation and Flint Energy Services Ltd. announced on Feb. 20 a deďŹ nitive agreement under which URS will acquire Flint for C$25.00 per share in cash, or C$1.25 billion (US$1.25 billion). URS also will assume approximately C$225 million (US$225 million) in Flint debt. The transaction, which has been approved unanimously by the URS and Flint boards of directors, will signiďŹ cantly expand URSâ&#x20AC;&#x2122; opportunities to serve clients in the oil and gas industry. Flint, a leading provider

of construction services for the oil and gas industry, currently supports many of the largest companies operating in the oil, oilsands and gas producing regions of Western Canada and in the Southwest, Appalachian and Rocky Mountain regions of the United States. The acquisition will be implemented through a court-approved Plan of Arrangement under Canadian law and is subject to the approval of Flint security holders, relevant regulatory approvals and other customary closing conditions. The transaction is expected to close in the second

upon closing. Following the close of the transaction, Flint will become a new division of URS, led by W. J. (Bill) Lingard, Flintâ&#x20AC;&#x2122;s president and chief executive oďŹ&#x192;cer, as the division president. Martin M. KoďŹ&#x20AC;el, chairman and chief executive oďŹ&#x192;cer of URS, said, â&#x20AC;&#x153;Expanding our presence in the oil and gas sector has been a longstanding strategic priority for URS. Flint is one of North Americaâ&#x20AC;&#x2122;s leading fully integrated production and construction services providers to the oil and gas sector, with many long-duration construction contracts and multi-year maintenance agreements. Through this combination, URS will be well positioned in segments of the oil and gas industry that we expect to have attractive margins and growth rates. In addition, by joining with URS, Flint will be able to oďŹ&#x20AC;er its base of multinational clients the full range of engineering, procurement and construction management services through URSâ&#x20AC;&#x2122; existing operations.â&#x20AC;? Stuart Oâ&#x20AC;&#x2122;Connor, chairman of Flintâ&#x20AC;&#x2122;s board of directors said, â&#x20AC;&#x153;We are very pleased with the arrangement with URS. It delivers a signiďŹ cant cash premium to our stockholders while also allowing Flint to accelerate the growth of its business by oďŹ&#x20AC;ering a more complete suite of services to clients.â&#x20AC;? É¸ Page A9

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Flint is acquired by URS Corporation ɺ Page A8 Lingard added, “Having access to URS’ pool of talented and experienced construction managers will allow Flint to oversee more projects simultaneously and drive revenue growth. Flint’s employees should also benefit from and enjoy more opportunities to work on a wider range of complex projects in both Canada and the United States. We look forward to working with our URS colleagues to achieve the exciting potential of the combination.” H. Thomas Hicks, chief financial officer of URS, said, “We expect this transaction will build significant long-term value for our stockholders. Flint offers a diversified, full cycle of services, has limited exposure to fixed price contracts and derives its earnings entirely from operations in the stable North American region. Assuming a second quarter close, we expect to achieve pre-tax cost synergies of US$10-$15 million in 2012, with additional savings expected in the following years as we benefit from economies of scale. We expect the transaction to be accretive to URS’ 2012 EPS between US$0.20 and US$0.30 per share, which reflects expected acquisition related costs, estimated amortization of intangible assets and the estimated cost synergies discussed above.” URS has financing in place to complete the acquisition under its existing credit facility and a financing commitment for a new bridge facility. Permanent financing is expected to consist of borrowings under URS’ existing credit facility and new debt. “URS intends, as in past acquisitions, to use its strong cash flows to reduce debt quickly, while retaining the flexibility to continue to invest in the business and, when debt levels have been reduced, pursue additional growth opportunities,” Hicks said. The arrangement The acquisition will be implemented through a plan of arrangement under Canadian law and is subject to a number of customary conditions for a transaction of this nature including, but not limited to, the approval of at least 66 and 2/3 per cent of the votes cast in person or by proxy by Flint shareholders and option holders at a special meeting of Flint’s security holders, as well as court and relevant regulatory approvals. The special meeting of Flint security holders is scheduled to be held on April 3, 2012, with closing expected to occur in the second quarter of 2012. The arrangement agreement is subject to customary non-solicit provisions

and Flint’s right to consider and accept superior proposals. In the event of a superior proposal, URS will have a five-business-day right to match the superior proposal. If the arrangement is not completed as a result of a superior proposal, or for other certain specified circumstances, a termination fee equal to C$42 million will be paid by Flint to URS. After receiving financial and legal advice, the members of the board of directors of Flint voting on the resolution unanimously determined that the arrangement is in the best interests of Flint, and resolved to support the arrangement and to recommend that its shareholders and option holders vote in favour of the arrangement. The financial adviser to Flint’s board of directors has provided an opinion that subject to the assumptions, limitations and qualifications set forth therein, the consideration to be received by holders of common shares pursuant to the arrangement is fair, from a financial point of view, to such holders. All of the members of Flint’s board of directors and certain senior officers and certain related shareholders, who collectively own approximately 8 per cent of the outstanding Flint shares, have agreed to vote their shares in favor of the acquisition.

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A10

PIPELINE NEWS April 2012

Students get paid to take training But if they skip class, they’re Àred

Armand MarƟn of the Regina Trades and Skills Centre points out a pracƟce area used for electrical wiring.

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labour shortage that is so tight, the premier is going overseas to look for workers, there are some programs that are seeking to get local people into the trades. One of those operations is the Regina Trades and Skills Centre, which opened five years ago. “This is a not-forprofit trades institution, strictly for entry level training in the trades,” explained Armand Martin, who heads up the operation. “Basically we’re industry driven. We will not put on a course until industry says here’s what we need, here’s when we need it, and here’s how many we need.” The centre has an industry advisory committee that meets twice a year to determine what courses will be offered for the next semester. The most recent meeting was in October, determining the offerings for January to June.

Martin said, “They requested 14 courses, but we’re putting on seven, because we’re flat out.” The current courses on tap include steel studs and drywall; introduction to the electrical industry; painting, both commercial and residential; residential roofing; hardwood and laminate flooring; customer service representative, in particular for the Staples Call Centre; and basic scaffolding. Last fall, the Regina Trades and Skills Centre offered commercial concrete; culinary arts; introduction to plumbing; commercial flooring and basic scaffolding. Students who have taken the scaffolding course are in high demand, according to Martin. They are being scooped up as quickly as possible by contractors working on the Regina Consumers Co-operative Refinery. ɸ Page A11

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A11

Cory Windigo, leŌ, and Jon Claude work on a pracƟce rooĮng project.

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ɺ Page A10 “There’s such a shortage, we can’t provide them fast enough,” Martin said. Courses for August to December will be determined by the committee in May. Saskatchewan is in the midst of a labour crunch. When Pipeline News visited the Regina Trades and Skills Centre, Premier Brad Wall was in Ireland attending a job fair, looking for skilled people to come to Saskatchewan. That pressing need is reflected in what Martin hears every day. He said one company told him, “I left 26 contracts on the table last year because I couldn’t find enough workers. “I’m not running at full capacity due to insufficient skilled labour force,” was another comment. He continued, “We’re hearing of delays in getting things done due to the shortage.” Getting paid for training Generally speaking, when one takes a training course, the first thing they do is write a big fat cheque for tuition. But that’s not the case with Regina Trades and Skills Centre. Far from it. Indeed, the cheques head in the other direction. “There’s no tuition to take our courses. We get part of our funding from the government,” Martin said, noting it’s about 70 per cent. The rest is selfgenerated. They own the entire strip mall their campus is located in, across Albert Street from the Seven Oaks Best Western hotel, but only use a third of it. The rest is revenue generating, with a tire store, an Afghan restaurant and a discount retailer. It’s a funding model that has received praise from government. The centre offers three high school programs with the school divisions Saskatchewan’s only comprehensive Occupational Health & Safety Consulting Firm

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paying for the instructors, while the centre supplies tools and materials. “With one of those programs, we build houses through Habitat for Humanity,” Martin said. Students working on that attend the centre’s projects for the full day, and receive five full credits. For adults, they actually get paid from the first hour they attend to the last day of their practical work placement. The pay works out to $9.50 per hour times 30 hours per week over the eight to 12 week length of the courses. The tail end of each course is typically a work placement. During that placement, the centre pays the student’s wages, not the company they are placed with. “We place these adult students with companies looking to hire. We always have a greater demand than supply,” Martin said.” They’re getting entry level workers ready to work.” Over the two week placement, the company gets to evaluate the student. Quite often, a job offer follows. “For scaffolding, they finish the course on Friday, and they are hired on Monday. The upgrader takes them all,” he said. ɸ Page A12

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A12

PIPELINE NEWS April 2012

Regina ReÀnery scooping up scaffolders ɺ Page A11 You’re fired The Regina Trades and Skills Centre has been using advertising on talk radio to get the word out. The message of the radio spots is hard to ignore. It notes that for students who don’t show up, they’re fired. “We’re all about jobs, not about courses,” Martin said. About 85 per cent are working after completion,” he said. “Some courses are 100 per cent.” As for those remaining, why don’t they have a job in such a hot labour market? Martin identified a small group of people who are living off the social safety net that allows for subsistence living. They continually take courses, but never culminate those courses into paying jobs. They go back on the social safety net until the next course comes along. He calls them “course jumpers.” Martin is working with other training institutions to put an end to that, identifying people who have done this before. He’s got little time for slackers.

“We fire students,” he said, matter-of-factly. For the recent concrete course, 10 students started, but two were fired due to poor attendance. Of the eight who remained, they had a 96 per cent attendance record. And for those eight, there were 14 jobs waiting. But only five were hired, as three didn’t want to work, he explained with disappointment in his voice. “They only get one chance with us, whether you successfully complete it or not,” he said. There’s plenty of competition for course slots. While culinary arts tops out at 20, and scaffolding takes 12, the typical course will accommodate 14. “We’ll get 45 to 50 applicants for a course. We interview every single one, and seek the most likely to pass and be hired. “We want to provide an opportunity for people interested in the trades who want a job in the trades and to make a career in the trades. “We emphasize accountability and taking responsibility. When they’re late one minute, we deduct 15 minutes pay. Late 15 minutes, we take off half-an-hour’s pay. If you miss more than two days without a valid reason, we fire you.

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“We fired some in the first week, and some in the final week during their work experience,” said Martin. Specialized offerings Where there is a specific need, the Regina Trades and Skills Centre tries to find solutions. During the day of Pipeline News’ visit, Martin had to attend a graduation for the customer service representatives course which was offered in conjunction with Staple’s Regina Call Centre. “One of the potash companies who are building a new mine has asked if we would be willing to train workers,” Martin said. “Just because we haven’t offered it in the past, doesn’t mean we won’t.” The centre has four staff members, and contracts all their instructors. “We use journeypersons for all our trades. Sometimes we use SIAST and their curriculum and instructors. Other times we contract directly,” Martin said. Where applicable, courses are recognized by the Saskatchewan Apprenticeship and Trade Certification Commission, with 180 to 320 hours going towards a first year apprenticeship. There is a similar program in Saskatoon, offered by the Saskatoon Trades and Skills Centre. Other organizations have met with the centre, interested in replicating their model. That includes First Nations dealing with large companies. “Last year, 46 per cent of all the students that successfully completed our course were First Nations people. That’s way about the representative population of Regina. Eighteen per cent were new Canadians. “In virtually all our courses, we have females, and the female students do very well,” Martin said, adding, “we don’t have any quotas whatsoever. It’s strictly on merit.”

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A13

Open house planned for major research project By Brian Zinchuk Estevan, Regina – There’s a major research project underway just south of Estevan, and the public will get a chance to learn about it on April 11. That’s when the Petroleum Technology Research Centre will host an open house at the Saskatchewan Energy Training Institute, detailing its Aquistore project. The open house will run from 1 to 7 p.m. The PTRC has joined forces with SaskPower to demonstrate that advanced carbon capture and storage technologies can be deployed to mitigate CO2 emissions for a wide cross-section of industrial sources. The joint CCS project is divided into its primary components, with SaskPower managing the capture of CO2 from its

Boundary Dam Power Station and PTRC managing the storage of CO2 through its Aquistore project. Aquistore is underway right now as part of one of the world’s first commercial carbon capture and storage (CCS) projects at SaskPower’s Boundary Dam Power Station. The Boundary Dam Unit 3 project will demonstrate that post-combustion capture from a coal-fired plant, while Aquistore is intended to show deep geological storage of carbon dioxide is a safe, economical and sustainable solution to reduce global greenhouse gases. On the storage side of the unique partnership, PTRC’s Aquistore project plans to demonstrate the safe long-term storage of CO2, three kilometres deep underground in a saline

reservoir, with its entry point conveniently located two kilometres

west of Boundary Dam Power Station. The research starts with an

This seismic surveyor places small Ňags for sensor locaƟons northwest of Boundary Dam Power StaƟon. Photo submiƩed

unprecedented intensive seismic acquisition. “Right now we have field crews installing 630 geophones in a permanent seismic array,” said Dr. Malcolm Wilson, CEO of the PTRC and well-known internationally-recognized scholar and advocate on CCS. “This allows us to gather reliable, high quality geological data throughout the project and compare it to baseline.” “This project is happening right now. It is very exciting to see work well underway,” said Wilson. “We are approximately 40 per cent done on the construction of the CO2 capture plant,” explained Mike Monea, head of SaskPower’s carbon capture initiative. The Aquistore Project will build on the knowledge developed through PTRC’s

10 year management of the IEA GHG Weyburn-Midale CO2 Monitoring and Storage Project, which is the world’s largest CO2 measurement, monitoring and verification initiative, in collaboration with a CO2 enhanced oil recovery project. “The captured CO2 from Boundary Dam will be used partially for demonstrating deep geological storage of CO2 through the Aquistore Project,” said Monea. “We also hope to make it available to market for enhanced oil production.” Once operational (anticipated in the first quarter of 2014), the joint CCS project will lead to the reduction in greenhouse gas emissions of onemillion tonnes/year. “It is our plan that the learning be transferable to industry globally,” Wilson said.

A14

PIPELINE NEWS April 2012

Crescent point moves to waterÁood ViewÀeld area Calgary – Crescent Point Energy Corp. announced on Feb. 16 that it has entered into an agreement with PetroBakken Energy Ltd. to acquire certain assets in the proposed waterflood area of the Viewfield Bakken light oil resource play in southeast Saskatchewan for cash consideration of $427 million. The assets are primarily in the company’s proposed waterflood units and include more than 2,900 boe/d of production and more than 25 net sections of land in the Viewfield Bakken resource play, primarily within the boundaries of the company’s proposed waterflood units. The Bakken acquisition is expected to help accelerate Crescent Point’s waterflood program in the Viewfield Bakken resource play. Independent engineers have assigned more than one billion barrels of

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discovered petroleum initially in place on the lands within the proposed waterflood units. Assuming the successful completion of the Bakken Acquisition, Crescent Point’s working interest position within the proposed waterflood units will increase to approximately 96 percent from approximately 90 per cent. This is expected to both simplify and accelerate Crescent Point’s waterflood plans. The company believes that waterflood implementation could increase ultimate recovery factors to greater than 30 per cent from an expected 19 per cent on primary recovery. The netback on this acquisition is approximately $63 based on US$95/ bbl WTI, C$3.25/mcf AECO and US$/C$0.96 exchange rate; There are two multi-well batteries along with pipeline infrastructure. There are 18.2 net booked locations and an additional 1.2 net internally identified low-risk drilling locations at a drilling density of four wells per section, with an incremental 12 net booked locations and an additional 47 net internally identified drilling locations at a drilling density of eight wells per section The Bakken acquisition was expected to close on or before March 14, 2012. Manitoba acquisition Crescent Point also announced that it has closed an agreement to acquire producing assets in southwest Manitoba for cash consideration of $130 million. The Manitoba light oil assets produce approximately 940 boepd of highquality, high-netback, low-decline light oil production with a reserve life index of 16.3 years. They are in close proximity to Crescent Point’s existing Manitoba operations. Crescent Point believes this property has significant upside potential through infill drilling and waterflood optimization. The properties have 1.9 net booked locations and an additional 37 net internally identified drilling locations. Assuming the successful completion of the Bakken acquisition, and including the Manitoba light oil assets, Crescent Point’s average daily production in 2012 is expected to increase to 86,000 boepd from 83,500 boepd and its 2012 exit production rate is expected to increase to more than 93,000 boepd from 90,000 boepd. ɸ Page A15

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A15

Crescent Point already has locked up much of the Bakken mineral rights around Stougthton, such as this wellsite west of town. Now it has solidiĮed its holdings, purchasing a substanƟal amount of land from Petrobakken. File photo

Manitoba lands picked up by Crescent point as well ɺ Page A14 In addition, the company announced that it has entered into an agreement, on a bought deal basis, with a syndicate of underwriters for an offering of 11,610,000 Crescent Point shares at $45.25 per share to raise gross proceeds of approximately $525 million. Closing was expected to occur on or about March 8, 2012, and is subject to customary regulatory approvals. Crescent Point has also granted the underwriters an over-allotment option to purchase, on the same terms, up to an additional 1,741,500 Crescent Point shares. This option is exercisable, in whole or in part, by the underwriters at any time up to 30 days after closing. The maximum gross proceeds raised under this offering will be approximately $604 million, should this option be exercised in full. Closing of the financing is not subject to the successful completion of the Bakken acquisition. Revised guidance As a result of the Bakken acquisition and the Manitoba asset acquisition, Crescent Point is upwardly revising its 2012 capital expenditure plans and guidance. Capital expenditures are expected to increase by $50 million to $1.2 billion. Approximately $43 million of the increase is expected to be spent on the drilling of 22 net Viewfield Bakken horizontal oil wells and the conversion of an additional 5 producing wells to water injection wells in the Viewfield Bakken waterflood area. Crescent Point now expects to drill 142 net wells in the Viewfield Bakken play in 2012 and to have approximately 60 net water injection wells in the play by year-end 2012. The remainder of the increase is expected to be spent on production optimization and facilities in southeast Saskatchewan and Manitoba. Crescent Point’s average daily production in 2012 is expected to increase to 86,000 boepd from 83,500 boepd and its 2012 exit production rate is expected to increase to more than 93,000 boepd from 90,000 boepd. This guidance includes the anticipated shut-in of approximately 11,000 boepd during second quarter 2012 to account for spring break-up and also includes the anticipated production impact of converting additional producing wells to water injection wells.

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PIPELINE NEWS April 2012

Showcasing one of the hottest plays around: Williston Basin Petroleum Conference enal,” Ness said. By Brian Zinchuk That increase in production comes from only 4,500 wells drilled since Bismarck, N.D. – The growth of North Dakota’s Bakken and Three Forks 2007, when the approximately 2,700 wells in the state produced about 90,000 play seems to know no bounds, and that is being reflected in this year’s Willibpd. ston Basin Petroleum Conference, to be held May 22-24 in Bismarck, N.D. No “The line is straight up,” Ness said, noting they are adding 10,000 to bounds, that is, except for hotel rooms. 20,000 bpd production each month. “We are hoping for 3,500 people, if we can get the rooms to accommoSuch an oil boom doesn’t come without its challenges, he noted. date them,” said Ron Ness, president of the North Dakota Petroleum Council. The unbelievable growth is reflect“Rooms got tight very fast.” ed in the conference, which is hosted in “We’ve got a fantastic agenda,” Ness alternate years by the Government of said, noting several CEOs and senior Saskatchewan and the North Dakota executives are lined up. They include Jim Petroleum Council. Two years ago, Volker, CEO, Whiting Petroleum; Dave 2,750 people attended the last time it Roberts, COO, Marathon Oil; Harold was held in Bismarck, shattering previHamm, CEO, Continental Resources; ous records. This year, booths sold out and Jack Gerard, CEO, American Pefaster than tickets to a Rolling Stones troleum Institute. concert. The list of presenters varies from the “Our 300 exhibitor booths sold out mayor of Williston to the Premier Brad in 17 minutes,” Ness said. “When we Wall, who has been invited, but not yet turned on the system at 9 a.m., there confirmed. were 650 people online.” One presenter, in particular, is eager As of mid-March, there were to take the stage again. Two years ago, 1,800 people registered. Ness is hopDavid Hobbs of IHS-CERA made ing more rooms open up as attendees the bold prediction that in eight years, release rooms they had blocked up, but North Dakota could see 900,000 to one million barrels per day in production. It took just 17 minutes to sell out this exhibit space for the 2012 Williston Basin Petro- decided not to use. Even dorm rooms He took a lot of heat for it back then, leum Conference. File photo are going to be used. Some are expected to stay as far as 100 miles away, but not but the state’s explosive growth has likely in Minot. proven to be vindicating. “Minot’s full with the oil boom,” he said. “North Dakota is at about 550,000 barrels per day,” Ness said. Two years ago, “The future is bright in the Williston Basin,” he said, pointing out this is that number was closer to 240,000 bpd. It has far surpassed Saskatchewan’s daily production, which is about 100,000 barrels a day less than North Dakota’s cur- the 20th year for the conference. The first and middle years were “pretty bleak,” but fracturing technology and extended reach horizontal drilling have made all rent production. the difference. “The economic success along with productivity of these wells is phenom-

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PIPELINE NEWS April 2012

A17

Go west, young Ontarians! By Brian Zinchuk Cambridge, Ont. – When things slowed down for Dianne McPhail’s husband’s work as a ﬂoorer, he went west – to Estevan. Now McPhail is encouraging others to do the same, through her company, Synergy Human Resources. “He’s working in Estevan, staying in Bienfait. He’s doing all types of ﬂooring,” she said. “I have my own human resources consulting company with a strong focus on recruiting.” While her work includes policy and handbook writing, advice on discipline and termination issues, the growth market she’s not targeting is recruiting people to come to southeast Saskatchewan, particularly for the oilpatch. Cambridge is in southwestern Ontario, an hour west of Toronto, 45 minutes north of Hamilton, in the same tri-city area as Research in Motion. Southern Ontario has been hit hard in recent years, especially in the manufacturing sectors. Jobs can be hard to come by, employers can be demanding, and there are few options for those who do have jobs, according to McPhail. “I started back in 2009 on a very parttime basis. Over the last year-and-a-half it became full-time,” McPhail said.

It’s largely a onewoman show, but she does have someone who assists with interviewing, which McPhail says can be time-consuming. “I worked in Edmonton for a structural steel company. I was the human resources manager and oversaw three facilities,” she said. Prior to that she worked as the human resources manager for a mattress manufacturing company in Ontario that supplies hospital bed mattresses. “In 2009, my husband did have a job oﬀer in Ontario, working for a builder in Kitchener,” McPhail said. But housing starts were not as high as they were out west, so he did some research, Googling on the computer, and decided to head to Saskatchewan. The money was much better, they found. He came west in December 2010. “He was staying in hotels and was working right away,” McPhail said. “He has over 25 years experience in ﬂooring.” “He was telling me the hiring needs and the signs he was seeing. “With all the hiring needs in Saskatchewan, I decided to get into the Saskatchewan market.” She cited the front page of the January edition of Pipeline News. It was covered in photos of help wanted signs running under the headline “Looking for employees? Join the crowd.”

“I feel I’m creative with my recruiting ability,” McPhail said, noting she dealt with a similarly tight labour market while in Edmonton, resulting in recruiting eﬀorts in the Philippines and Germany. At the time Germany had a high unemployment rate, and “Their English was better than ours,” she said. There are literally millions of people within an hour’s drive of Cambridge, so McPhail feels she has a large pool to draw from. There are also ﬁve

universities with a total of 107,000 full-time undergrads, allowing for a student market to be tapped into. In southeast

Saskatchewan, one of the limiting factors for the oilpatch as been the lack of available housing, which is in turn tied to the lack of

tradespeople to build such housing. McPhail noted, “My husband keeps getting job oﬀers to work in the patch.” ɸ Page A18

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PIPELINE NEWS April 2012

HR Àrm seeks to Ànd Ontario workers for Saskatchewan jobs ɺ Page A17 In southern Ontario, the situation is very diﬀerent, she said. “One person needed a resume to be redone because McDonald’s and Tim Hortons wouldn’t call. Cambridge is also soon going to feel the pain of another factory closure – in this case, a Maple Leaf Foods plant that fell victim to the same realignment

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as the one in North Battleford. It will mean a loss of 175 jobs paying from $13 to $17 an hour, she said. Seventy-five people are being offered transfers to Mississauga, but that’s a long drive away, and for substantially less money. “Why can’t I go to these companies, talk to the human resources departments, and stand in the cafeteria to talk about the jobs to be had [in Saskatchewan]?” McPhail offered. Asked how she would do such a presentation, McPhail said she would introduce herself, and say, “Listen, I have ‘X’ number of jobs in a town called Estevan. Let me tell you about those jobs and how much they are paying.” In trying to attract workers, she’s also laying out the realities of working in southeast Saskatchewan, where housing is short, and the cost of living can be high. “You have to present all the facts,” she said. With her company, job candidates do not pay any fees whatsoever, she said. “The employer pays a flat rate that is very reasonable.” “I offer a guarantee of 30 days. If the employee does not work out, I will replace them free of charge,” McPhail said. “I do front-end screening: reviewing the resume, conducting phone interviews, conducting face-to-face interviews and reference checking before presenting the candidate.” Asked why a business here in Saskatchewan wouldn’t simply do that themselves, she responded time and location were the key factors. She has access to plenty of people there, looking for work. A good, thorough interview takes 45 minutes to an hour, she added. For some jobs in Ontario, you can expect to go through up to five interviews before you get the job. At the Cambridge Toyota plant, that number is seven. Some of the information McPhail needs in a search included attributes desired, skills, education, pay and benefits offered, just to name a few. The client can also take part in phone interviews, or even video interviews online. “People are not machines. Every person is different,” she said. “Can we make it attractive enough for them to work in Saskatchewan? “Ideally, it would be great if the whole family moved out there. If not, they could do a rotation,” she said. Her husband does a 30 and 10 rotation, which works for them. She was working with one oilfield company last year, but the flooding put the kibosh on that. As for her goal of how many workers she is seeking, McPhail said, “As many as I can. I know there’s a need out there. There’s a massive labour shortage out there.” “My husband really likes it out there. The people are friendly,” McPhail concluded.

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A19

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Rachelle Geisel (left) is presented with the tickets from Pipeline News Sales Associate Kristen O’Handley

Rachelle was the winner of our Pipeline News Facebook promotion. Her & 6 friends won a VIP Table to the Hard Knocks 21 MMA Fights in Estevan.

A20

PIPELINE NEWS April 2012

Shifting Gears

One Woman’s Perspective on Life, Liberty and the Pursuit of Land Locations By Nadine Elson

The best part of waking up Although the oil industry is an industry devoted to the retrieval of fossil fuels, what fuels the workers is . . . coffee. My husband made himself coffee using the Keurig coffeemaker I had given him for his birthday. “I just love this machine,” he said appreciatively.

“This is the best gift you’ve ever given me!” I looked at him in disbelief. Had he forgotten the Road King Harley Davidson motorcycle I had given him for his 40th birthday? The same motorcycle that his friend Frank Schaefer and I had schemed for weeks to locate and buy? Such is the power of coffee! I shouldn’t have been surprised. I had owned a motel for 14 years on Estevan’s main thoroughfare. The street had been closed a number of times over the years for repairs and new paving. Never had the City installed signs telling motorists to turn one block early in order to get to my business. But they did that for Tim Hortons customers when the street outside the local coffee shop was closed for repairs for several weeks last spring. A few weeks later after this conversation with Bruce last spring, I entered the doghouse of Ex-Cel Rig #1. It was 7 a.m. and cool, foggy and dark as the first few days of April often are. It was the last official day of work before road bans took effect. I set the tray with five Tim Hortons cof-

fees on a work surface. I had already given the consultant outside a coffee. Greeting Andy, the rig manager, I indicated the hot coffees and started pulling on my coveralls and boots. I was signing in as the rest of the crew entered. “Wow! $#*&!” This was from one of the crew. I was startled. I looked at the guy. He didn’t look angry but I really didn’t know any of them. “$#*&!” he said again. “Is that good or bad?” I asked curiously, as I finished signing in. “Oh this is definitely good! This is great!” the rig worker enthused, as he helped himself to a hot coffee. “And it’s still hot!” No easy feat considering the cold morning and the 45 minute drive from Estevan, but covering the tray with my parka on the floor under the heater had obviously done the trick. It wasn’t a costly gift, but you would have never known that from the effusive appreciation I received that morning. Three months later, after the extended road ban, I met up with the crew of Ex-Cel Rig #1 again. I asked the young man assigned to

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help me unload some tools, if the crew was the same as before the breakup. He said yes and then, “I recognize you. You’re the lady that brought us out coffees!” Clearly it had made a favourable impression. We saw each other a number of times over the summer. If I had an opportunity, I would bring coffee. Several months later just before the September long weekend, I was dispatched to deliver a bonnet and valve to a lease ExCel #1 was servicing. Arriving just before lunch, the fellows came over to help unload. I thanked them and told them I wouldn’t see them for a few weeks as I was off to Ireland with my Mom in September. It was mid-November before I saw the guys of Ex-cel #1 again, but I was ready. “How was your trip?” one of the fellows asked. I told them, that despite being a nation of tea drinkers, the Irish made the best coffee on the face of the Earth. “Mind you,” I added, “the addition of brown sugar, Irish whiskey and whipped cream would improve nearly anything! You’ll soon see for yourself.” I indicated the box with all the fixings. “The instructions are on the paper.” It was very cold, but they did save it for the end of the workday. I was told that it was the best coffee they had ever had and that it was “good to the last drop!” Nadine lives in Estevan, with her husband and family, and works as a hot shot driver in the oil patch regularly delivering goods in and around Estevan and Shaunavon, and Sinclair and Waskada, Man. Her mission, beyond delivering the goods quickly, is to have every interaction be a positive one. She can be reached at missiondriver@hotmail.ca

PIPELINE NEWS April 2012

A21

Media blitz targets skilled workers By Geoff Lee Regina – Enterprise Saskatchewan is budgeting $700,000 for its Real Growth, Real Opportunity national marketing campaign in 2012 to attract new employees and businesses to the province. The campaign includes $400,000 for television and online advertising along with Internet development and events. The 2012 campaign will focus on recruitment to address what businesses have identified as their most pressing need – skilled workers. “Saskatchewan is growing with new employment and investment opportunities, and we want to communicate that message throughout the country and around the world,” said Enterprise Minister Jeremy Harrison. “Our economy is experiencing unprecedented growth; tens of thousands of new people have chosen Saskatchewan as home and many major companies see their future in our province. “We hope to draw upon that positive momentum and generate even more interest in Saskatchewan.” New census data from Statistics Canada in February indicates between 2006 and 2011, the province enjoyed a population growth rate of 6.7 per cent, surpassing the national average of 5.9 per cent. “Saskatchewan has gone from a province where people were moving out, to a province where people are choosing to stay and moving in,” said Premier Brad Wall in reaction to the census. “That is because of our growing economy, plenty of job opportunities and our great quality of life. “Saskatchewan is simply the best place in Canada to live, to work, to

raise a family and to build a life. More and more people are now discovering that and it is why our population is growing.” Enterprise Saskatchewan has been working for the past year with the Saskatchewan Mining Association, the University of Regina and the University of Saskatchewan to host mining recruitment events across Canada, targeting university alumni. On March 6, the partners recruited workers at the Prospectors and Developers’ Association of Canada trade show in Toronto – an event that regularly attracts 20,000 mining professionals from around the world. Several Saskatchewan mining companies including BHP Billiton, Cameco, Potash Corp and Mosaic were at the show to hire new workers and their families. “It is estimated that we will need 75,000 workers in this province in the next several years and about 15,000 in the mining industry alone,” said Harrison. “By working with industry and our partners, we are helping to bridge these significant labour gaps and keep Saskatchewan moving forward.” The Real Growth, Real Opportunity campaign, first launched in 2010, uses real people to explain why they have moved to Saskatchewan to work or why they have chosen to invest in the province. The campaign includes TV ads, online banners and videos, and recruitment events. To further assist in getting the word out about Saskatchewan, a news feed has been added to the campaign website at www.thinksask.ca. The news feed will provide up-to-date business, research and economic news to national and international audiences.

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A22

PIPELINE NEWS April 2012

Carlyle Ramada Hotel features laptops in each room

The Ramada Carlyle Hotel opened March 26.

Photo submiƩed

FOR SALE OR LEASEBACK BYPASS INDUSTRIAL PARK

LIGHT INDUSTRIAL LAND JUST OUTSIDE OF ESTEVAN, SASKATCHEWAN

Borealis Global Energy Services Inc. (Borealis Global) is marketing the sale of 16 separate parcels comprising 153 acres of land on behalf of 1174365 Alberta Ltd. Cameron Construction has done all the dirt work Highlights • 1 mile east of town limits of Estevan, Saskatchewan, for this project. on new truck by-pass route. They have purchased 10 acres of land & will be putting up • Estevan truck by-pass route approved with a shop and office in this Industrial Park. construction to start 2012. • Lots ranging from 5 to 26 acres each – easy to For all of your pipeline construction, oil lease re-configure titles if necessary. development & general contracting, • Zoned light industrial commercial. contact John Cameron at 403-630-3240 • Environmental Phase 1, Geotech, and Heritage Review all complete. www.guard-allstructures.com • New access road on property complete (just www.cameronconstruction.ca needs gravel), and drainage complete. • 6 inch high pressure water line from town, 3 phase underground power, and natural gas to each parcel (all in place). Water pressure booster to be installed on site (80 PSI). • Environmentally friendly, self contained, pressurized and expandable sewage/waste water unit on site, linked to each parcel, to be installed spring 2012. This is the only land for sale in the Estevan area 5 acres plus which provides full sewage and waste waster handling. • Dirt stripping in progress, sites ready for construction February 2012. • Fast-track permitting for buildings, shops, etc. • On high ground – did not get flooded in last springs floods in SE Saskatchewan. • Frontage road with two access points to truck bypass route. • Developer leasebacks available on land and buildings. • Executive style camp to be available in Industrial Park for work crews and tenant employees waiting for the Estevan housing market to catch up with demand. • Rail loading/un-loading facility within 3 miles. • Close to North Portal Border Crossing into North Dakota. Companies can legally work on For additional information contact: both sides of the border provided they pass through this border crossing (approved Gary Stevens: (780) 305-9255 paperwork required). Vince Kirton: (403) 836-0150 • Well positioned for the prolific Bakken oil resource Borealis GLOBAL main office: (403) 233-9240 play.

By Brian Zinchuk Carlyle – The demand for hotels is booming in southeast Saskatchewan, and Ramada Carlyle Hotel is one of the latest built to meet that demand. It opened for business in late March. “We have 60 rooms. All rooms are kitchenette [equipped]. We’re targeting the long-term stay,” said Jay Hur, general manager of the Ramada Carlyle Hotel. Square in their sights is the oilfield clientele. The owner of the new hotel, Won S. Yang, is from Vancouver. “He has a few other properties in different provinces. He’s been in this industry for 15 to 20 years,” Hur said. Hur has personally been in the hotel industry more than 15 years, and has worked for Yang for six years, most recently at Athabasca, Alta. “We did the research. There’s a lot of demand. We heard Carlyle is a booming town. There’s a lot of demand,” Hur said. “The reason we picked Carlyle was the accessibility to services.” “We contacted the town, and they said, ‘Definitely.’ We broke ground in April 2011.” It wasn’t hard to figure out there is a need for more accommodations in southeast Saskatchewan. “We went to Estevan and tried to find accommodations. There were no rooms,” Hur said. “A lot of people commute from Estevan and Weyburn to here.” He noted they would like to partner with local tourist attractions. “We hope to bring more people to Carlyle to help local tourism,” he said. “I was a board member of the tourism committee in Athabasca. We worked closely together for four years.” Directly across the highway is the local golf course, for instance. With the hotel’s construction in its final phases in early March, Hur said, “It’s going smooth – no accidents, no complaints.” Three franchises were considered, but Ramada seemed to be the best fit, especially since they allowed features others would not, like exterior room doors. The main floor has outside doors on its rooms, similar to a motel. Hur said, “The oilfield workers like that.” “We have a small meeting room, a fitness room, and coin-operated laundry. We offer continental breakfast.” Rooms are equipped with flat panel TVs, with plans to equip them as “smart TVs.” While big-screens are now common, having a laptop computer supplied in each room certainly is not. It’s a concept they pioneered at Athabasca. Those computers, equipped with standard office software, will also be equipped for network printing. Hit print on your supplied laptop in the room, and pick it up in the lobby. The hotel will also feature a beefed-up Internet connection. The hot breakfast menu includes waffles and bacon. There are several room varieties, including the standard double queens, king size, and suites. The corner suites have two king beds with the bedroom around the corner of a wall, but without an actual door. Then there are the deluxe suites, of which there are two. These are each the size of a smallto medium-sized apartment, and are equipped with a full kitchen. They are the size of two normal rooms. The Ramada Carlyle Hotel will employ between 15 and 20 people, both locals and some from out of province. “We try to hire staff locally. We can’t be successful without being in the community. We will be part of the community.” Underscoring that point, Hur and his family are building a new house in Carlyle’s newest subdivision.

PIPELINE NEWS April 2012

New project will help double province’s wind power Regina – SaskPower signed an agreement on Feb. 28 with Windlectric Inc. (a subsidiary of Algonquin Power & Utilities Corp. (Algonquin)) to build an approximately 177-megawatt (MW) wind power facility near Chaplin, Saskatchewan. Algonquin’s project was selected from 26 proposals submitted by 15 diﬀerent suppliers who answered SaskPower’s call for major wind projects through its Green Options Plan in 2009. An external fairness consultant observed and reported on the selection process. “Through the Green Options Plan and the Green Options Partners Program, SaskPower is more than doubling the province’s available wind power capacity,” said Rob Norris, minister responsible for SaskPower. “Projects like this will help SaskPower continue to be a leader in the production of clean, renewable electricity while meeting the province’s growing power needs.” As part of the agreement, SaskPower has signed a 25-year contract to purchase wind power generated at the facility once it’s complete. “Our commitment has been doubling wind by 2015,” Norris told Pipeline News. That will bring wind generation capacity to about 400 megawatts. “When the Algonquin project at Chaplin is brought into service, wind power will make up about 8.5 per cent of SaskPower’s total generating capacity – among the highest percentages in the country,” said Robert Watson, president and chief executive oﬃcer of SaskPower. “Renewable generation options, like wind, play a key role in our plans to meet the province’s increased need for electricity in a sustainable manner.” Approximately 77 turbines will be constructed by Algonquin at the Chaplin site, providing enough electricity to power about 70,000 homes. Algonquin will now move forward with securing the environmental approvals necessary to proceed to the construction phase. Construction of the project is expected to begin in 2016, with a planned in-service date of the end of that year. In addition to the agreement with Algonquin, SaskPower has selected another 55 MW of wind power under its Green Options Partners Program. SaskPower is currently working on the purchase agreements for these projects. While SaskPower is broadening its portfolio, including more natural gas, and biomass fuel with Meadow Lake Tribal Council, Norris said, “The major announcement will be on clean coal. We’re going to be sticking with coal.”

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A23

Realties of Wind Power SaskPower’s website features a posting on the realities of wind. It can be found at saskpower.com/future. Those realities are: • Wind power cannot currently save the planet, because wind power cannot be eﬀectively stored for future us, so when the wind does not blow, the wind turbines do not produce electricity. • SaskPower estimates that wind power in Saskatchewan will reduce greenhouse gas emissions by six million tonnes over 25 years. • Wind power needs to be backed up by another power sources; [SaskPower] is looking at using natural gas as a backup. • Wind power facilities in Saskatchewan are highly eﬃcient, producing power 40 per cent of the time. • There is an opportunity to expand wind power in Saskatchewan. • Wind power currently accounts for two per cent of the world’s power supply.

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A24

PIPELINE NEWS April 2012

SaskPower invests in electrical Rob Norris, minister reponsible for SaskPower.

Regina – Minister responsible for SaskPower Rob Norris announced on March 13 that the Crown corporation will provide $3.5 million each to the University of Regina and the University of Saskatchewan to help meet Saskatchewan’s growing need for power with a skilled workforce and innovative technology. “As the province continues to prosper, we need to invest in the education of our future workforce to make sure we have the skills and expertise to support the changing needs of the power industry,” said Norris. “We also need to invest in new technology to ensure we have a sustainable supply of electricity to power future growth.” The funding will support new faculty chairs to ensure a strong foundation of academic and applied research is in place to position Saskatchewan as a leader in clean energy development, and will be directed to program areas that align with the company’s future business needs. ɸ Page A25

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A25

PIPELINE NEWS April 2012

engineering and carbon capture and storage Éş Page A24 The University of Regina funding will go towards advancing research in carbon capture and storage technology as SaskPower continues building the world-leading Boundary Dam Integrated Carbon Capture and Storage Demonstration Project. The investment will also provide opportunities for future engineering graduates to work in this emerging ďŹ eld at SaskPower. Funding at the University of Saskatchewan will go toward the power systems engineering ďŹ eld within the universityâ&#x20AC;&#x2122;s existing electrical engineering program. This program already provides the main source of graduate electrical engineers for SaskPower. The expanded partnership will enable SaskPower to work with the university to ensure the curriculum aligns with SaskPowerâ&#x20AC;&#x2122;s future needs. It will also help to attract more students into the power systems engineering ďŹ eld and advance research in power systems engineering. â&#x20AC;&#x153;I anticipated 10 to 12 grad students per school,â&#x20AC;? Norris said, noting it will provide for a very robust research agenda. The provincial money will also allow researchers to leverage more grants through entities such as Natural Sciences and Engineering Research Council, as well as some funding from the private sector. â&#x20AC;&#x153;These dollars tend to be leveraged very well,â&#x20AC;? he said. Asked why now, Norris replied, â&#x20AC;&#x153;For SaskPower, we have come to see the labour market pressures across Saskatchewan are becoming more acute within SaskPower. We have to grow the grid. We need to expand signiďŹ cantly, replacing key areas.â&#x20AC;? â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re probably going to need another 1,000

[workers] over the next ďŹ ve years. â&#x20AC;&#x153;We need more students to step up and play. The hope is as the graduates look at opportunities, SaskPower becomes an employer of choice, an innovation leaderâ&#x20AC;? â&#x20AC;&#x153;These investments in our provinceâ&#x20AC;&#x2122;s universities will further the innovative work taking place on carbon capture and storage in the province, and help ensure the technology evolves so coal can re-

main as part of SaskPowerâ&#x20AC;&#x2122;s sustainable supply planâ&#x20AC;? said Robert Watson, SaskPower president and chief executive oďŹ&#x192;cer. â&#x20AC;&#x153;They will also ensure SaskPower can meet its ongoing need for qualiďŹ ed engineers with homegrown Saskatchewan talent.â&#x20AC;? In the coming months, SaskPower will explore similar post-secondary partnerships with other institutions in Saskatchewan, with a focus on Aboriginal programming.

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A26

PIPELINE NEWS April 2012

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PIPELINE NEWS April 2012

A27

Enform sees exponential growth Bob Ross of Enform Saskatchewan notes OH&S penalƟes are expected to rise substanƟally under new legislaƟon. File photo

Regina – Enform Saskatchewan is seeing demand for its services grow. “Our growth is exponential right now,” said Enform Saskatchewan manager Bob Ross. “Since we’ve opened the doors, there are approximately 400 more employers and approximately 4,000 more employees in our rate codes. “We have four rate codes we are responsible for,” he said, referring to Workers Compensation Board industry subdivisions. Those include operation of oil wells, oilwell servicing, service rigs and water well drill-

ing, and seismic/drilling. “We’re doing ﬁve trade shows this year,” Ross said. They recently ﬁnished one in Saskatoon, and attended the South East Energy and Environment Safety Seminar in Estevan on March 21. Later in the spring, Enform will attend the Saskatchewan Workers Compensation Institute. The Lloydminster Heavy Oil Show is in the fall. “We’re also doing the Redvers Oil Showcase this year. We’re presenting at it,” Ross said. In the fall of 2010, Enform Saskatchewan

held a substantial safety conference in Regina, modelled as a smaller version of the organization’s annual Banﬀ conference. Taking a diﬀerent direction, Enform is now doing lunch-and-learn sessions throughout the province. “We’re planning 10 lunch-and-learn sessions across the province as well. We’re garnering topics right now,” Ross said. ɸ Page A28

• Project Management & Engineering • Process Engineering • Mechanical Engineering • Pipeline Engineering • Electrical, Instrumentation & Automation • Civil/Structural Engineering • 2D/3D Design Drafting • Procurement • Construction Management • Regulatory Affairs Dean Quirk • 306-634-0185 Chris Scholpp • 306-487-7790 Field Office: 1206 4th Street, Estevan S4A 0W9 Head Office: 1000, 825 8th Ave. SW, Calgary T2P 2T3

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A28

PIPELINE NEWS April 2012

Proposed OH&S changes to see Ànes increase ɺ Page A27 These sessions will run during the spring, early fall and early winter. “We’re really making inroads

on our ﬁeld exposure with employer groups who had a high time-loss industry rate,” said Ross. That includes meeting these com-

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panies in the field, and advising them on addressing time-loss concerns. Companies with a poor record are assessed a surcharge on their WCB rates. “Out of the 10 we first targeted, six are no longer in a surcharge position, and the other four have seen a 70 per cent reduction in time-loss injuries,” he explained. Those 10 include drilling, well servicing and trucking companies. This program has been going on since 2009, the year Enform established it Saskatchewan office. OHS regs changing This spring the Saskatchewan government is revising its Occupational Health and Safety Act, which, if passed in its form as of early March, will result in substantially higher fines. Bill 23, An Act to Amend the Occupational Health and Safety Act, 1993, is under consideration during the spring session of the provincial legislature. Ross, who used to be in senior management with OH&S prior to joining Enform, noted that as of March 9, the bill was still in the third reading stage, meaning changes could still be made before becoming law. But as the bill stood at that time, the biggest change is the maximum penalty for a serious injury or fatality. It used to be $300,000 per count. Ross said, “Now that can be $1.5 million per count.” “Everything else is doubling,” he said of lesser penalties. There’s also the ability under the proposed legislation for summary offence tickets. “You can have tickets issued on site,” he said. It’s similar in concept to a police officer giving out a speeding ticket. The system until now was much more involved, and much more expensive.

“You had to go through court, which is time consuming and expensive,” Ross said. Another change is the adoption of a “prime contractor” identification, similar to Alberta’s system. When there are multiple contractors on site, for instance a drilling site, one contractor has to be identified as the prime contractor to co-ordinate safety with all parties. There must also be a safety supervisor designated by all parties, which was in existing legislation. Saskatchewan’s model is more stringent than Alberta’s, he added. “It has a much clearer definition.” The system will involve vetting subcontractors to ensure all their staff are properly certified. There is a certain level of responsibility that transfers back to the prime contractor. References to competent people acting as supervisors will also move from the regulations to legislation. They will have extended responsibilities and duties under the OH&S Act. “Legislation is an important component in the overall picture in addressing workplace safety. It provides baselines. The petroleum industry tends to exceed these,” Ross said. As an example, he said to bid on a job, a company would be required to have an approved and audited health and safety program in place, which includes training of the workers, verified by certificates. SETI involvement The Saskatchewan Energy Training Institute is now in its new Estevan campus, and Enform is working with them. “They’re one of our major partners,” Ross said. He noted SETI has participated in information group meetings held every quarter.

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PIPELINE NEWS April 2012

A29

Fund to nationalize immigrant credentials Regina – The days of the proverbial taxi driver with a PhD may be over for skilled professional immigrants who settle in Saskatchewan. A new pilot project funded by the provincial and federal governments and the private sector will help internationally trained professionals to finance the cost of having their credentials recognized in Canada. The Immigrant Access Fund (IAF) Saskatchewan received $450,000 through a multi-year agreement with the government of Saskatchewan, to provide micro loans to help immigrants gain their professional status to work in their chosen profession. Micro loans are small loans that do not require applicants to be employed, have a credit history in Canada or have collateral. IAF also received more than $1.7 million from the government of Canada and $100,000 from the Morris Foundation. “We are committed to developing strong and sustainable communities across the province,” said Rob Norris, minister of Advanced Education, Employment and Immigration. “This pilot project will help align newcomers with jobs in their field of study and provide employers with more skilled workers to meet demands of our growing labour market.” Saskatchewan welcomed more than 28,000 immigrants between 2006 and 2011, about three times the number of the previous five years, as well as some 12,000 newcomers from other provinces. As many as 4,000 people are expected to apply for entry into the province this year under the Saskatchewan Immigrant Nominee Program. With family members, that could bring as many as 12,500 newcomers to Saskatchewan.

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For many internationally trained professionals, the cost of licensing, exams, training and skills upgrading can present a significant barrier to credential recognition. The micro loans offered through IAF Saskatchewan will provide financial assistance to internationally trained professionals to lessen some of these financial burdens. The loans will make it easier for them to find jobs that best suit their skills and experience. In addition to providing loans to eligible clients, IAF Saskatchewan will collaborate with organizations that work with newcomers, post-secondary institutions and the private sector, to encourage them to refer their clients who need financial assistance.

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A30

PIPELINE NEWS April 2012

Renegade posts record production Due to its successful ﬁrst quarter 2012 drilling program, Renegade Petroleum Ltd. recently achieved record production in excess of 4,000 boepd with a 96 per cent light oil weighting and it is maintaining that record. In addition, the company has increased its land position in southeast Saskatchewan and has entered into a new core area in the Slave Point light oil play in Alberta. Renegade now controls more than 154,000 net acres of undeveloped land. During the fourth quarter of 2011 and in land sales in 2012, Renegade acquired land in the Souris Valley and Wordsworth-Queensdale trends in southeast Saskatchewan, increasing its holding in the area to approximately 60 net sections. The company recently drilled a dual-leg Frobisher well in the Wordsworth-Queensdale trend that began producing Feb. 24 and has produced an average of 200 boepd for seven days. Renegade previously announced that it had successfully drilled a dual-leg Souris Valley well in late 2011 with a 48 hour production test exceeding 300 boepd (150 boepd net) of light oil. The well was stabilizing and had averaged in excess of 150 gross boepd for the last 15 days. The wells cost approximately $1.15 million apiece and based on their initial success of both wells, Renegade has identiﬁed an additional 125

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(110 net) locations along the trends. In Alberta, Renegade has been active over the past five months in acquiring a significant land position in the Senex and Joan areas, which are prospective for Slave Point light oil production. The company now controls 32 sections (more than 20,000 acres) of land in the area. Renegade believes that it has up to 125 drilling locations on its existing land and anticipates drilling its first Slave Point well this year. The formation at Senex is approximately 1,100 metres in depth compared to approximately 1,600 metres for the Slave Point play in Sawn Lake. As such, it provides lower capital drill costs with an estimated total capital commitment of approximately $2.8 million to $3

million per well. Production is ahead of its 2012 budget and Renegade has conﬁrmed its 2012 annualized average guidance of 4,000 boe per day to 4,200 boepd based on a $76 million capital expenditure program. Due to the extended breakup in 2010 and 2011 resulting from wet weather conditions, the company has assumed an extended breakup for 2012 in southeast Saskatchewan and has factored this into its 2012 averages. The company said it continues to be excited and optimistic about generating growth prospects in 2012 with more than 706 (626 net) potential drilling locations in its inventory.

Painted Pony drills 10 wells Painted Pony Petroleum Ltd. reported on March 6 that it has completed drilling operations on 10 (7.6 net) horizontal wells, to date, during the ﬁrst quarter of 2012. Five (4.4 net) wells have been drilled in Saskatchewan, including three (2.5 net) wells on the company’s Flat Lake Bakken light oil play. In northeastern British Columbia, the company has drilled four (2.2 net) wells on the Blair-Cameron

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Montney gas project. On March 5, 2012, Painted Pony completed drilling the company’s first exploratory earning well targeting the Viking light oil play in Alberta. The company has access to 22 net sections of land offsetting this 100 per cent working interest well. Subject to weather and access conditions, all of the new wells in Saskatchewan and Alberta have been or will be completed as soon as equipment and services are available. The company expects to complete and production test the new wells in British Columbia beginning in June. Painted Pony’s first quarter 2012 production is estimated to be 7,000 boepd, weighted 78 per cent gas. On Feb. 22, 2012, the company began gas sales from its recently completed (50 per cent working interest) processing facility located on the 44-C pad at north Cameron, B.C. The company’s (50 per cent working interest) d-44-C Lower Montney gas well had been producing through this facility for 12 days at fieldestimated rates averaging 14.8 mmcf per day (2,500 boepd). The well was flowing at 17.7 mmcf per day (2,950 boe per day). This new facility, constructed and operated by Painted Pony, has a current throughput capacity of 25 mmcf/d, immediately expandable to 60 mmcf/d.

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May 10 & 11, 2012

Supper Guest Speaker Thursday evening: Patrick Ward, President & CEO Painted Pony •Enform Learning Session - Thursday • Enbridge Presentation - Friday For more information go to www.redvers.ca and click on the link to the Redvers Oil Showcase, e-mail redversoilshow@hotmail.ca or call (306) 452-3225

See you at the Redvers Oil Show!

PIPELINE NEWS April 2012

His father was shocked by centreâ&#x20AC;&#x2122;s approach Jordan Allard was surprised to be paid to take preemployment training at the Regina Trades and Skills Centre. Photo by Brian Zinchuk

Regina â&#x20AC;&#x201C; Jordan Allard came to Regina seeking work, and by the time this paper goes to press, he will likely have it. Allard, 21, is taking the introduction to the electrical industry course with the Regina Trades and Skills Centre. He had applied to apprentice as a millwright, but noted, â&#x20AC;&#x153;I had to ďŹ gure out what I wanted to do. â&#x20AC;&#x153;My dad found this place and was completely shocked. They actually pay you to take training. â&#x20AC;&#x153;It takes $5,000 to take a pre-employment course at another college. Here theyâ&#x20AC;&#x2122;re paying you and ďŹ nding you a job. â&#x20AC;&#x153;Ninety per cent is all hands on, practical work, which is how tradespeople learn,â&#x20AC;? Allard said. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve always been interested in the electrical,â&#x20AC;? Allard said. Heâ&#x20AC;&#x2122;s already planning to get his journeyman papers. As for heading west, he said, â&#x20AC;&#x153;Thereâ&#x20AC;&#x2122;s lots of work in Saskatchewan. Manitobaâ&#x20AC;&#x2122;s dead. I tried to make it in Manitoba, but nothing worked.â&#x20AC;? One of his jobs was in drywalling, a trade he quickly found wasnâ&#x20AC;&#x2122;t for him. â&#x20AC;&#x153;They paid pretty good, but it was pretty rough,â&#x20AC;? Allard said. His father has four tickets, with journeyperson standings as an electrician, millwright, pipeďŹ tter, and in controls. Heâ&#x20AC;&#x2122;s now working as a supervisor at the Regina Consumers Co-operative ReďŹ nery, which is undergoing major work. Allard will not be working at the reďŹ nery, however. In mid-March he started his work placement with Humboldt Electric. â&#x20AC;&#x153;When I ďŹ rst started, I was surpised at the classroom work,â&#x20AC;? Allard said, noting there was indepth study into the electrical code.

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A31

A32

PIPELINE NEWS April 2012

Box 312 Carlyle, SK S0C 0R0 Office: 306.453.2506 Fax: 306.453.2508

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Fast Growing Company Opportunities On Our Rigs CanElson Drilling Inc is currently looking for hard working individuals that are looking for challenging and rewarding work on top-of-the-line equipment in Saskatchewan. We provide competitive wages and bonuses, stock options for Drillers and Rig Managers. Interested individuals may drop off resumes in person at our Carlyle Office or visit our employment website www.workingonrigs.ca and apply online

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PIPELINE NEWS April 2012

A33

First of four Western Star Inn & Suites opens in southeast Up to 24 people can sit in the breakfast area at a Ɵme.

Carlyle – There are grand plans in the works for independent hotel operators Western Star. On Feb. 20 their first property in southeast Saskatchewan opened its doors in Carlyle. The second one is under construction in Redvers, and Esterhazy and Stoughton are next on the agenda. Each of the four hotels are to be indentical in design, according to Carla Eagan, management and financial administrator with Western Star. Each twostorey hotel will have 65 rooms in a variety of configurations. There will be 22 standard double queen rooms, each with a fridge, microwave, toaster and coffee maker. Another 23 rooms will be double queens with full kitchens. They will have a full stove/oven, full fridge, microwave and sink. There will be 12 king suites with similarly equipped kitchens, and four Jacuzzi suites, also with king-sized beds and full kitchens. The Jacuzzi suites also have a stand-up shower. Finally, there are four barrier-free rooms equipped with a king-sized bed and roll-in shower. All rooms have wired and wireless high speed internet, and 40-inch widescreen LCD televisions. The Carlyle hotel increased its internet capacity to a more robust level. For rooms with kitchens, all the pots, pans, dishes and cutlery required are included, or as Eagan put it, “All the essentials needed to prepare your own food.” The lobby features a business area with two computers. The breakfast area can seat approximately 24 people. Each day a deluxe continental breakfast offers items like a hot meat, hot eggs, muffins and fruit. Three of the hotels will form a string along Highway 13, in the heart of Saskatchewan’s Bakken play. The fourth will be in potash territory at Esterhazy, which has also seen phenomenal growth. “We welcome all guests. We’re not exclusively oilpatch,” said Twyla Bauman, regional sales and marketing manager. She said they have received a lot of requests for rooms for weddings and reunions, for instance. ɸ Page A34

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A34

PIPELINE NEWS April 2012

This Jacuzzi suite is one of four.

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ɺ Page A33 Bauman said there have been requests from oilpatch workers for hotels in these communities. Avail-

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ability of land was also a component in selecting the towns. The Redvers location is scheduled to open in July, followed by Esterhazy in December. Stoughton is planned to open in the second quarter of 2013. Until road bans came on in March, the newly opened Carlyle location was very busy, Eagan said. Oilﬁeld companies are already inquiring about summer bookings.

A grand opening was held on March 21, with Carlyle Mayor Don Shirley invited to cut the ribbon. Bauman reported a very positive response to their opening in Carlyle, saying, “We look forward to serving southeast Saskatchewan and meetings its accommodation needs.” Eagan said, “Thanks to the communities for welcoming us with open arms.”

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PIPELINE NEWS April 2012

A35

ATCO Structures & Logistics awarded largest Canadian contract in company's history

Calgary, Gordon First Nation – ATCO Structures & Logistics has been awarded a multimillion-dollar contract to design, build and operate a 2,586-person turnkey workforce housing lodge for BHP Billiton’s Jansen Potash Project, 100 km north of Regina. The accommodation facility is the largest Canadian contract in ATCO Structures & Logistics’ history, and will be located east of Raymore. “Our reputation for designing, building, and operating large mining accommodations throughout the world, in addition to our ability to execute at a very high level, set the stage for this project,” said Harry Wilmot, president and chief operating oﬃcer of ATCO Structures & Logistics. “A contract to build a mining accommodation of this scope and scale reinforces our long-standing reputation for having the capacity to deliver a large and comfortable workforce housing lodge.” ɸ Page A36

ATCO Structures & LogisƟcs latest camp in Saskatchewan will dwarf its 200-bed facility at Estevan, seen here. File photo

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PIPELINE NEWS April 2012

Workforce housing project will support potash project in Saskatchewan Éş Page A35 The accommodation facility features diverse, high-end amenities including two pre-

engineered buildings, a 20,000 sq.-ft. sports complex with gymnasium, squash courts, weight room, and a

raised running track that overlooks the gym. A recreational director will organize ďŹ tness programs. A separate

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pre-engineered building will house a 200-seat movie theatre. The core building includes a 1,200-person dining room, a separate private dining area, lounge, library, convenience store, medical centre, and full laundry service. Fireplaces located throughout the facility will provide a warm, comfortable setting. The two-storey accommodation wings are connected by arctic corridors and feature 160 sq.-ft. bedrooms with private washrooms. Each room will include a ďŹ&#x201A;at screen TV, phone and wireless Internet capabilities. The ďŹ rst phase, comprising 500 rooms, will be operational in October 2012 with completion of the full 2,586-room camp and facilities scheduled for mid-2013.

To help deliver components of this agreement, ATCO has partnered with Aboriginal groups in the Touchwood Hills area of Saskatchewan, including the George Gordon First Nation, Day Star First Nation, and Kawacatoose First Nation. An employment and training centre will be established on George Gordon First Nation traditional territory. ATCO Structures & Logistics is working with several Treaty 4 First Nations in the Touchwood area of eastcentral Saskatchewan to provide workforce housing lodges, camp catering, and services. The business relationship will be executed in conjunction with an entity comprised of George Gordon First Nation, Day Star First Nation and Kawacatoose First Nation, and will operate in their traditional territories. â&#x20AC;&#x153;ATCO is excited to be working with the Touchwood Area First Nations in this resource-rich area of Saskatchewan,â&#x20AC;? said Wilmot. â&#x20AC;&#x153;We have a long-standing tradition of working with Aboriginal communities and businesses and anticipate a productive relationship with these

three First Nations. Our goal is to create a mutually beneďŹ cial venture that creates employment and training in this community.â&#x20AC;? Since 1981, ATCO has been collaborating with Aboriginal communities throughout Canada and Alaska. These relationships are based on a foundation of trust, respect, and equality. â&#x20AC;&#x153;This partnership with ATCO will improve the skills and training of our people and increase our capacity to gain meaningful employment,â&#x20AC;? said Chief Glen Pratt of George Gordon First Nation. â&#x20AC;&#x153;ATCOâ&#x20AC;&#x2122;s strategy supports our transition from a welfare economy to a treatybased economy. We are encouraged by the opportunities that our people will beneďŹ t from as resources are developed in our traditional territories.â&#x20AC;? ATCO Structures & Logistics oďŹ&#x20AC;ers modular buildings, site services, and industrial noise control worldwide. The company noted that with manufacturing facilities in North America, South America and Australia, and operations on ďŹ ve continents, ATCO has the expertise to deliver a rapid, turnkey solution anywhere it is needed.

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PIPELINE NEWS April 2012

Zargon’s output declines but company reverses 2010 loss (Nickle’s Daily Oil Bulletin) – Although Zargon Oil & Gas Ltd.’s production volumes in 2011 decreased to 9,130 bbl. of oil equivalent per day compared to the prior year’s 9,879 boepd, the company turned around a net loss in 2010 and posted a proﬁt for the year-ended Dec. 31, 2011. Crude oil and liquids production averaged 5,468 bpd in 2011, a three per cent decrease from the preceding year. The decrease was due, in part, to spring/summer ﬂood-related Williston Basin shut-ins and mid-year oil property dispositions. Calendar 2011 natural gas production averaged 21.97 mmcf/d, a 14 per cent decrease from 2010, as Zargon continued to direct capital to oil exploitation programs while letting the natural gas production volumes decline naturally. Through the execution of its focused oil exploitation program, Zargon achieved an oil and liquids production

weighting of 60 per cent. Total fourth quarter output was 9,278 boepd, a slight decline from 9,317 boepd for the comparable period in 2010. Net earnings for the year were $10.38 million, a 181 per cent increase from 2010. The change in net earnings resulted from increased revenues from oil production sales, a gain on unrealized derivatives and a substantial gain on disposal of properties partially oﬀset by increasing production costs. Zargon’s average oil and liquids price received, after realized derivative gains/losses, in 2011 of $76.19 per bbl. was nine per cent higher than the $69.95 per bbl. received in 2010. The average natural gas price received, after realized derivative gains/losses, in 2011 of $3.45 per mcf was 11 per cent below the $3.87 per mcf received in 2010. Although the company achieved higher revenue

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year-over-year, 2011 funds flow from operating activities showed a 16 per cent decrease to $64.52 million due primarily to increased production costs and realized derivative losses. Zargon declared cash dividends totalling $1.56 per common share during 2011 for a total of $44.64 million ($38.14 million net of the DRIP). These cash dividends (net of the DRIP) were equivalent to a payout ratio of 63 per cent of funds flow from operating activities. During the fourth quarter, exploration and development capital expenditures (excluding property acquisitions and dispositions) were a robust $23.71 million for field-related programs and included the drilling of 11.5 net wells, which resulted in nine net oil wells and 2.5 net abandonments. In the quarter, Zargon also acquired a net $1.08 million of properties. In 2011, the company spent $71.66 million on its exploitation and development programs and drilled a total of 35.3 net wells yielding 32.8 net oil wells and 2.5 net abandonments. Including the company’s Little Bow Alkaline Surfactant Polymer (ASP) project, Zargon’s 2012 capital budget has been reset at $66 million and includes a net $45 million of field capital expenditures. Consistent with the last two years, the company said its 2012 capital programs will be directed entirely to oil exploitation activities. In Alberta, the 2012 field capital program will focus on Hamilton Lake Viking oil exploitation, Bellshill Lake increased fluid withdrawals, Killam Glauconite oil pool development, Taber South waterflood expansion and the Little Bow ASP project development. Williston Basin In the Williston Basin, the capital program will focus on Midale horizontal drainage locations, Frobisher undrained targets and early derisking expenditures for waterflooding tight oil carbonates with multifrac horizontal wells. In 2012, Zargon is projecting to spend $21 million of Phase 1 Little Bow ASP capital with 75 per cent of the expenditures occurring in the second half of the year. This tertiary oil recovery project entails the injection of chemicals in a water solution into a partially depleted reservoir to recover incremental oil reserves. The project schedule anticipates first chemical injections in July 2013, with a significant oil production response forecast to occur by January 2014.

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SPECIAL REPORT Saskatchewan Energy Training Institute a new jewel $14.2 million facility busy with spring breakup training

The glass-walled auditorium is a key feature of the new building.

Story and photos by Brian Zinchuk Estevan, Weyburn – The new Saskatchewan Energy Training Institute opened its doors earlier this year, and now is in its peak season – spring breakup. Hundreds of students will pass through its doors for the ﬁrst time, many taking or recertifying their safety courses. But this new glass and masonry jewel on the east side of Estevan will be so much more. With much larger facilities than its previous home on the Estevan Comprehensive School campus, and with a strong demand for skilled labour, SETI couldn’t have come at a better time. Formerly known as the Energy Training Institute, SETI picked up “Saskatchewan” in its name when the federal and provincial govern-

ments stepped forward, each providing $7.1 million toward the $14.2 million facility. SETI is a division of the Weyburn-based Southeast Regional College and part of the provincial regional college system. It is partnered with the major educational institutions in the province as well as Enform, the safety association for Canada’s upstream oil and gas industry. The new, larger school was the result of years of lobbying, and a desire to be able to do focused energy training locally, without having to travel to places like Nisku, Alta., to take a course. “For the college, it means a brand new, stateof-the-art facility,” said Jody Holzmiller, interim president and CEO of Southeast Regional College, the parent entity for the Saskatchewan Energy Training Institute. Normally vice-president of college services,

Holzmiller is ﬁlling in as president and CEO since the departure of the previous president and CEO, Craig Brown. Brown had spearheaded the project until last fall, when he was put on administrative leave. The new facility means they can continue existing training and expand it in the future, she said. “We can train our labour force locally, which means hopefully they’ll stay here once trained,” Holzmiller said. The project had its start in March 2009, according to Holzmiller. “It had been in the works for a long time,” she said, noting the original hopes of building a training centre in the city were originally for something smaller than what the ultimate result was. ɸ Page B2

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Programming still being developed ɺ Page B1 So far the programming is largely a continuation of what was going on before, including power engineering, office education, and numerous safety training classes. But facilities are in place, including three labs of varying sizes, numerous classrooms, and video conferencing capabilities that will allow SETI to bring a variety of programs to Estevan. (See related story page B8) It will also provide a place where energy related gathering can take place, with a large, glass-walled auditorium that is the centrepiece of the building. On March 21, the first big event, the Southeast Enviro and Safety Seminar, was held there. On April 11, the Petroleum Technology Research Centre will hold an open house on Aquistore, a research project looking into the capture of CO2 at Boundary Dam Power Station and storing it in a deep saline formation. “The focus will definitely be on energy training. The mandate is to keep the building full on training,” Holzmiller said. She added she can’t guarantee there won’t be training outside of energy, but definitely, the focus will be on energy. There was talk from the get-go about getting a drilling rig for the school, and it turns out, Enform has one available. “We have contacted them and said we are interested,” Holzmiller said. As for a service rig, she said, “If we can enter into a partnership, such as with Enform, we’ll consider that, but it’s not in the works at this time.” As for a blowout preventor system simulator, she said, “That’s down the road. Not at this time.” Work in progress The programming, Holzmiller said, is a work in progress. “We certainly don’t have it all in place. Our staff turnover has hampered us,” she said. Brown, as president and CEO, was put on administrative leave last fall and his contract was not continued as of Feb. 14. An executive search is in its opening stages. The college’s previous vice-president of academics was only there for a short time, and a new one has just started. The college’s foundation, Southeast Education Foundation, operates for the entire college. Up until now, its focus was on scholarships. The SETI campaign is a new function. However, the foundation’s director when the SETI project began in earnest ended up on sick leave, and his replacement resigned in late February to move to Manitoba. A search hasn’t yet begun for the next director, according to

Holzmiller. So far, no money has been raised for SETI, although the plan is to raise money for new equipment and to replace existing equipment carried over from previous operations. The foundation’s goals are to be determined by a re-grouped board, according to Holzmiller. “We are reactivating our advisory committee in Estevan. That will drive a lot of the programming that goes into that building,” Holzmiller said. “I would hope that within the next year we can have our advisory committees up and functional and new programming in the new year.” She noted the school has had a good reputation for training in the past, and is exploring new ways now. “The training we do, we’re known for,” Holzmiller said. She commended the staﬀ of the college throughout the region. “Everyone gave 110 per cent,” she said. “It is a jewel in our crown for the college as a whole. Our board and staﬀ are proud of it. For the city of Estevan, it will be great.”

The tall and wide lobby of SETI has plenty of room for booths during conferences.

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PIPELINE NEWS April 2012

A sight to behold Estevan – The new Saskatchewan Energy Training Institute, a division of Southeast Regional College, is a sight to behold. Moving out of its former location in the Estevan Comprehensive School building, the new facility will allow the Saskatchewan Energy Training Institute to spread its wings, oﬀering more courses to more students. The facility had a $14.2 million budget, and was announced as part of Canada’s Economic Action Plan, with funding from the provincial and federal governments. The City of Estevan donated the land and utility services, which was worth approximately $750,000. Keith Madu, director of SETI, has been with the project from the beginning, acting as Southeast Regional College’s man on the ground during the construction. He explained for Pipeline News some of the new facility’s features. ɸ Page B4

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PIPELINE NEWS April 2012

Over 40,000 square feet of learning

The front of SETI is very angular.

ɺ Page B3 Alton Tangedal and Kurt Dietrich of A+K Architects, Regina, acted as the architects for the project. Quorex Construction, also of Regina, was the general contractor. A number of local subtrades worked on the project. Bob’s Electric handled the electrical work. Turnbull Excavating handled the excavations and backfill. Souris Valley Paving took care of granular surface area. F&L Concrete Services tackled the concrete finishing work. Glen Peterson supplied concrete. Jay’s Welding of Bienfait did miscellaneous metal installations. Midwest Surveys acted as surveyor. The building has a total area of 41,306 square-feet, with 27,247 square-feet on the main floor. There are three labs of varying sizes. One is very large, with a tall and wide bay door that allows the confined space simulator trailer and the fall arrest simulator to be brought indoors. That allows for training to take place even when the weather isn’t agreeable. There are six classrooms on the main floor, including three that are adjoining the aforementioned labs. The one adjacent to Lab 1, for instance, has numerous fall-arrest harnesses on racks along the wall. Six classrooms can be found on the second floor.

Two of the larger classrooms in the west wing are largely used for safety training classes like first aid and H2S Alive, with racks in the back of the class for the training dummies and good-sized open areas to practice on them. There is a small meeting room on the main floor that is equipped for video conferencing, as well as a cart-based video conferencing system for the second floor. This is important because Enform, one of SETI’s training partners, has structured many of their programs to be done through distance learning. Instead of students all driving to a site in Alberta, for instance, a handful of students can partake in a class through a video conference. There’s a resource room full of computers on the main floor. Adjoining the office is a small testing room with a handful of computers. For many recertifications or courses that can be taken on a computer, a quiet room where the student can be monitored is needed. This room serves that purpose. “We’re certified as invigilators. Whatever program you’re taking, either through the college or otherwise, you can take your test here. Guys even come for their chemical applicators course or real estate licence,” Madu said. (SETI is also affiliated with SIAST, the University of Regina, and the University of Saskatchewan, as well as Enform and a number of other organization). ɸ Page B5

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PIPELINE NEWS April 2012 ɺ Page B4 A boardroom can also be found on the second floor. “All our classrooms are multi-functional in capacity,” Madu said. “We can turn the auditorium into a classroom. The auditorium is most definitely the showpiece for the facility. It played host to the Southeast Environmental and Safety Seminar on March 21, and it schedule to host an open house for the Petroleum Technology Research Centre on April 11. Approximately 50 feet high, its walls, both inside and out, are nearly all windows. The roof slants at an angle to the southwest. When one walks into the building, the first view is of the auditorium. The mezzanine between the wings on the second floor curves around the inside wall of the auditorium. Originally planned with stadium seating, it was reduced to a flat floor as one of the cost-reduction measures. But having a flat floor has its upside, too. SETI has both round and long tables available for various functions. If just chairs are used, it can accommodate 250 people. In a banquet setting, that number varies from 150 to 180, depending on the tables and configuration. There is a 15-foot wide screen that can be lowered, as well as two 70-inch flat panel screens mounted on the side walls. Motorized blinds can be raised or lowered quickly, allowing the room to be darkened as need be. Madu said, “You can do your PowerPoint on the projector and the two TVs. You can repeat on all three screens, or we can put the two TVs on the laptop, and the main screen on a video feed. " There are two exits to the courtyard to the south, which is yet to be landscaped. The concrete curbing is in place, but the rest of the landscaping work remains. Eventually a barbecue and picnic benches are planned. A small food services area is adjacent to the auditorium. It is meant for caterers to set up, but Madu noted, “It’s not a commercial kitchen.” There is a small range, fridge, freezer and microwave, but it is not a cafeteria. The food services area was designed so that it could be revamped as a commercial kitchen, if needed. On the opposite side of the building is the coffee area, equipped with vending machines, an automated coffee machine and several tables. There are lounge areas on the mezzanine flanking both sides of the auditorium. With large windows, it’s the perfect place to take a break between classes. “During spring breakup, we’ll open up the auditorium to the public as an extension of the coffee area,” Madu said. Indeed, Madu expects the building to be “right full” during spring breakup, the time when most oilpatch companies do their periodic safety training. Power engineering students were the first to move in, when the college took official possession of the building on Jan. 20. At their old campus,

basic adult education is still offered, as is English as another language and the newcomer centre. Where the other Southeast Regional College courses will be offered in the future is yet to be determined. There are some items remaining to be completed. There’s landscaping work, and curbs and sidewalks still to be done. Exterior doors and frames need to be painted, and some roof work is being done. The parking lot is not paved. That was one of the items lopped off when budget decisions had to be made. Resource labs allow students to do computer based training.

This is the view from the centre of the auditorium, looking up at the ceiling and mezzanine.

Congratulations on the completion of your new state of the art facility!

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PIPELINE NEWS April 2012

Congratulations on the grand opening of the Saskatchewan Energy Training Institute and best wishes for much success in meeting the skills and training needs in the energy industry

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Congratulations of your Grand Opening!

Jarrod Chinski was Quorex’s superintendent.

Weather had major impact on SETI construction Estevan – There was once a movie called a River Runs Through It. That title could have been used to describe some of the conditions the builders of the Saskatchewan Energy Training Institute had to contend with in putting up the new $14.2 million structure. Indeed, there is still a line of sandbags lining

the south and east sides of the property, intended to protect against any possible water issues in the future. They will remain there until the drainage issues are resolved. Jarrod Chinski acted as superintendent for Quorex, the general contractor. Pipeline News spoke to him brieﬂy as he was at the

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facility, resolving some ﬁnal completion issues on March 12. Bud Green was the project manager for Quorex, and could be found on March 15 doing a walkthrough of the building with one of the architects, Alton Tangedal. The keys were handed over on Jan. 20. “For the most part, it went all right,

considering the water. We were under a tight schedule,” Chinski said. “They dealt with what they had. “The weather was a big factor in getting the thing enclosed. We had to hammer everybody to get the job done.” At peak, there were close to 70 workers on site, including subtrades. Green said, “When we started the job, we had a pretty wet summer. The ground froze wet, so we had to wait until it froze solid before we could bring the cranes in. It was a tough winter, with excessive cold and snow. “We had excessive water here. We had water ﬂowing through the building.” Accommodations for workers was a real problem, especially for subtrades. “Every subtrade, when they had a place to stay, had the manpower,” Green said. ɸ Page B7

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PIPELINE NEWS April 2012

Bud Green was the project manager for Quorex, the general contractor.

Congratulations on your Grand Opening! Jay’s Welding Ltd. ɺ Page B6 “There just isn’t that kind of accommodations around. It’s not just this community. A lot of small communities are getting growth.” Quorex made extensive use of the ATCO Lodge Estevan for their workers. Deadlines There was a lot of consternation about federal funding, which was part of a nationwide economic stimulus package. That funding stipulated that projects were to be completed by March 31, 2011, the federal government’s fiscal yearend. The Southeast Regional College, the parent organization of SETI, had to come up with some serious gymnastics to meet that deadline. Initially just part of the building was to be completed by March 31, 2011, and construction would continue on the rest of the building, to be completed by Oct. 31, 2011. “We were supposed to be done by Oct. 31. March 31 was to complete the east wing. October 31 was the completion date, and always was,” Green said. With numerous projects throughout Saskatchewan and indeed the country delayed, the federal government granted an extension to Oct. 31. While the building still was not complete, no funding was lost. Since there was no longer a pressing need to get into a portion of the building while the rest was incomplete, the project was rejigged so that it could all be completed at once. The delays could be directly tied to the extraordinarily wet spring and summer of 2011. Every Monday for several weeks on end in the spring, Estevan received approximately two inches of rain. While all that excessive rain ended up flooding substantial portions of southeast Saskatchewan and severely damaging large parts of Minot, North Dakota downstream, it also showed up at the SETI worksite. “This whole place was a big lake,” Green said. “We still pushed to get done by October 31, and did everything in our power.” Chinski said, “I appreciate the way the owners reacted. We were obviously over on our schedule. They were understanding. Really good people.” There were no financial penalties assessed due to the late completion, Green noted.

Congratulations on your new location!

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Putting the programming in place Estevan – Now that the building is in place, the Saskatchewan Energy technician course – Southeast Regional College (via SETI), and Great Plains Training Institute can begin expanding its program offerings. Regional College, at its Warman campusent. Sheena Onrait is the campus manager and looks after programming. “There are three levels. The registrations and co-ordination of programming “I’m responsible for the instructors and students,” she said, sitting down is done through the apprenticeship department,” according to Onrait. with Pipeline News in the schools Lab Each round of training is three 3, which is home to the introduction weeks in length. to electricity program. There’s a snag this year, however. The academic side of the SouthDespite the extraordinarily high activity east Regional College, SETI’s parent level in drilling, the first two levels will organization, determines when and not be offered this year. “They’ve already where programming will be offered. cancelled the first two levels for this year. Currently SETI offers fourth The last one had seven students,” Onrait class power engineering and office said. education as full time classes. The The Saskatchewan Apprenticeship electrical program is just starting, and Trade Certification Commission and will be the equivalent to a first told Pipeline News the programs for year apprenticeship. It will run from Levels 1 and two were cancelled due to March until October. very few people signing up. Only one Note that is an electrical, not person asked to take Level 1, and seven instrumentation, program. But SETI registered for Level 2. would like to see an instrumentation They are waiting to see registration program set up in Lab 2. “We would levels for Level 3 to determine if it will eventually love to house an instrugo ahead. Levels 1 and 2 are expected to mentation program here,” Onrait resume next year. said. The plan is to run this course in Lab She added the right equipment 2 of SETI. and instructor are required first, One of the reasons cited for buildhowever. ing SETI in Estevan was the training “Of our office ed program, I needs of SaskPower, which has two would estimate at least three-quarters major power stations within sight of EsSheena Onrait is campus manager for SETI of those students would end up in the tevan. Indeed, one SaskPower represenenergy industry,” she said. tative could be seen checking out the college during one of Pipeline News’ visits. Predominantly the demand is for basic safety training, Onrait said. “BusiOnrait said they have talked to SaskPower, and added, “We provide training to nesses in Estevan and area are expanding and the people brought in don’t have a number of Crown corporations around the Estevan area in energy and safety.” the safety training. They’re coming from Newfoundland, Ontario. We’re going Typically for SaskPower that has meant safety tickets, but Onrait noted, to fill this building during spring breakup. We’re going to fill all the classrooms “We have done some overhead crane training for SaskPower as well.” and conference rooms.” “We see an increase in the training they don when they do shutdowns. Safety courses are “huge” for SETI, and indeed, its first spring breakup in There’s been nothing for the new CO2 plant yet, but I anticipate there will be.” the new building will see it chock-full of students either getting their certifiAsked if there will be any specialized courses for the under-construction cations for the first time, or recertifying. On April 17, for instance, there are carbon capture project, she said, “I would anticipate we will research if a procourses in well servicing blowout prevention, fall protection, resource industry gram exists somewhere, and if not, we would look into the development of a driver enhancement, rig rescue, H2SAlive and a CPR/first aid refresher. The program.” following day is a continuation of the BOP course, and adds rig rescue, fatigue Training in “green” energy such as solar, wind and geothermal was menmanagement and hours of services, and another round of CPR/first aid. tioned as a possibility when the new campus was first announced. However, That’s just a sampling of the courses. The school also offers specialty Enthere is nothing in the works right now, according to Onrait. form courses like safety management and regulatory awareness for well site “All of our safety programming has come from industry. ‘We need this. We supervisors, and detection and control of flammable substances. need somebody to specializ in energy training,’” she said. “I see us developing Two colleges in Saskatchewan offer the Saskatchewan version of the rig more of that specialized programming in the future.”

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Keep your hard hats on all the time. There’s cross pieces. If you whack your head on that, you’ll see stars, and it won’t be Shania Twain -Bob Seibel, conÀned space instructor

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”

Congratulations on your new building

Crawling in the dark Estevan – The quickest a pair has made it through the confined space simulator is six minutes, Bob Seibel stated. But in a more ominous tone, he added, “The longest was 29 minutes.” After their classroom instruction, six groups of two find themselves in harness, each pair linked together by a six-foot lanyard before they enter the large trailer. “They’re doing a rescue. There’s a dummy in there,” Seibel told the students, most of whom are in coveralls, and all of whom will be wearing hardhats when they enter. That’s for good reason, because there’s plenty to bump against. “Keep your hard hats on all the time. There’s cross pieces. If you whack your head on that, you’ll see stars, and it won’t be Shania Twain,” Seibel said. The inside is reconfigurable, too, so it’s not necessarily the same each time a person goes through it. “I’ve been known to

put in a few dead ends,” Seibel said. The trailer has a door at the rear corner. Inside, students find it dark, really dark, with the surfaces painted black. They climb a ladder to a small platform near the roof of the trailer. The students are told there are four levels, and they have to find their way through it. The door is closed behind them. It’s not pitch black, Seibel said, as some light leaks in. But flashlights, cellphones and the like, are not allowed. The idea is to simulate a rescue in an uncontaminated environment. The second time around, students don’t wear a harness, but instead have air packs. The one-day course starts with theory in the classroom during the morning and for a brief period after lunch. Emerging from the rear door of the trailer, Rick Malaryk of Estevan Sandblasting said, “Whoa! Sweatin’ in there!”

His partner, Todd Duke of BP Canada, said, “It’s extremely dark and really tight. There are lots of obstacles in our way.”

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Fought tooth and nail for SETI to be in Estevan

MLA Doreen Eagles, second from leŌ, takes part in the sod turning for SETI on Nov. 20, 2009.

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Estevan – Estevan MLA Doreen Eagles has been widely credited for helping make the new Saskatchewan Energy Training Institute a reality, with two years of lobbying under her belt. She was instrumental in bringing $7.1 million in provincial money to the project, paying for half the building, while the federal government contributed the other half. “I think the Energy Training Institute is such an asset to this part of the province and the province as a whole,” she said. “It allows local people to take their training close to home, and allows others to take their training here. “I just toured it recently. It’s absolutely unbelieveable. It’s very conducive to learning,” Eagles said, pointing out that rooms can be reconﬁgured as needed. “I was blown away.” It wasn’t a foregone conclusion that Estevan would receive the new campus. Weyburn was also in the running. “We didn’t know if it would be Weyburn or Estevan. Just look at the phone book at oil-related businesses, mining and SaskPower,” Eagles said, pointing out Estevan’s case. “Once the construction was started, it didn’t take that long at all,” she said. “It’s a phenomenal building. I would encourage people who haven’t gone out to see it, to go and see it. “I love when you ﬁrst walk in. You can expand the doors [of the auditorium] and open it to the lobby,” she concluded.

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B11

MP conÀdent in college’s ability to meet training needs

MP Ed Komarnicki spoke at the SETI sod turning on Nov. 20, 2009.

Estevan – SourisMoose Mountain Member of Parliament Ed Komarnicki feels that community colleges are best able to adapt to the training needs of business, and is pleased to see the new Saskatchewan Energy Training Institute in operation to do just that. Komarnicki was instrumental in securing $7.1 million in federal money for SETI via the Knowledge and Infrastructure Program, part of the federal Economic Action Plan that was put into place in 2009 in response to the recession. “It’s a facility and infrastructure that will be able to react to the needs, aspirations and demands of the industry,” Komarnicki said. He expects the Southeast Regional College, parent organization of SETI, will come up with something the industry will

be happy with in terms of programming. Of community colleges, he said, “They adapt so well in ﬁnding a need and bridging a gap. Industry doesn’t have to re-invent the wheel. “I see this facility as being a central hub for meeting the needs of the energy industry in the area.” Asked about the city chosen to host SETI, he said, “Estevan or Weyburn were ﬁne in my view.” Komarnicki’s involvement was more in securing the funding, working with Gary Goodyear, minister of state for Science and Technology, as well as other levels of government. During the depths of the recession in 2009, the federal government was looking for ways to stimulate the economy, including spending money on knowledge infrastructure. “Given

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Estevan landed the prize, and now it’s complete Estevan – It wasn’t a sure thing that the new Saskatchewan Training Institute would end up in Estevan. Indeed, during early discussions, Weyburn was also under consideration. However, the Energy City fought hard and landed the big prize. Estevan Mayor Gary St. Onge said, “It’s huge. We’ve been working for a long time on it. “It’s a natural fit, when you look at the energy in the area, not just oil, but coal and SaskPower. In the past, people have been sent away for training as far as Alberta. Hopefully they can do most of it here now.” “We encouraged the community college to put it in Estevan,” said city manager Jim Puffalt. “Logically, this is the centre of the Bakken oil play and a lot of the service industry is based here.” “It was important enough for use that we provided the land,” St. Onge said. The City contributed one lot in its then-brand-new Glen Peterson Industrial Park, on the east side of the city, south of Walmart. The land was valued at $750,000. “I think the land helped it along,” Puffalt said. “It’s a really impressive building,” St. Onge said. Indeed, St. Onge’s own daughter, Lori, is one of the first students, taking the office education course. She was awarded a scholarship on March 1. St. Onge also spoke about the possibility of offering training to people south of the border. North Dakota’s Bakken play is one of the hottest in North America. The state has more than doubled its production in the past two years.

As for the late completion of the facility, he noted, “It was longer than anyone expected, but so was everything else,” he said, alluding to the challenging weather Estevan has had during the construction phase. Puﬀalt said, “It’s a great opportunity to move our economy into a learning atmosphere. It takes advantage of the resources around here. “It helps our whole area, and can help get people and start their training. If you can ﬁnd people, you can train them here.” St. Onge pointed to former Southeast Regional College president and CEO Craig Brown, who spearheaded the project. “We owe him some thanks here,” St. Onge said. “He worked very hard to get it here, along with other people.” St. Onge noted local oilmen Jim Wilson of Wil-Tech Industries, Kelly Lafrentz of Kelly Lafrentz Trucking, and Bernie Bjorndalen of Panther Drilling were among those who worked hard to make the project a reality.

Todd Duke, leŌ, hooks onto his partner, Rick Malaryk’s harness, during a conĮned space training course at SETI.

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B13

College board member impressed with facility Estevan – From a board perspective, Bernie Bjorndalen is quite pleased with the new Saskatchewan Energy Training Institute facility. Architect Alton Tangedal, leŌ, and project manager Bud Green, go through the comBjorndalen is in his second year on the board of Southeast Regional Colpleted building. lege, the parent entity for the Saskatchewan Energy Training Institute. From Estevan, Bjorndalen handles sales for Panther Drilling of Weyburn when he’s not active with the oilmen’s curling circuit. The new SETI facility is part of what got Bjorndalen interested in being on the board. “It’s a fantastic facility, state of the art, world class,” Bjorndalen said. He noted some of the programming is taking longer than they anticipated to get going. “It has to run through the channels, I guess. I think there’s a lot of interest in offering some courses we don’t have here right now,” he said. Examples he cited included instrumentation tech as an example. “That’s where things get hung up,” he said, noting courses need to be sanctioned through the ministry responsible. 24 Hour Service With the new building, Southeast Regional College now has operations in • Canada and United States Oilfield Tank Trucks • two facilities. What to do with the programs still based in the Estevan Com• Hot Oil Trucks & Super Heaters • prehensive School is still in question. • Pressure Trucks • Bobcat & Gravel Trucks • Backhoe • Bjorndalen said, “The intent is to keep the walls of the Energy Training Institute specifically energy-related.” • Frac Water Heater & Frac Tanks • “There’s opportunity for the mining industry, and SaskPower, which are Certificate of Recognition & IRP 16 energy-related. We’re going to administer courses geared to the oilpatch. It all fits together,” he said. Ken Boettcher 483-7462 CEO leaves Tim Boettcher 483-8121 The leadership of the college has been in flux. Former Southeast Regional Wayne Odgers Salesman 485-9221 Edgar Bendtsen Dispatcher 483-8185 College president and CEO Craig Brown, who had spearheaded the project, Mike Crawford Dispatcher 485-7970 was put on administrative leave last fall. On Feb. 7, the college announced he Grant Anderson Manager 483-7405 was departing. Brown’s contract was not renewed. Marvin Ferriss Manager 483-8937 When asked why, Bjorndalen declined comment. Terry Torgunrud Safety & Compliance 483-8952 The wheels are in motion to find a new president and CEO. Currently Carl Boettcher Supervisor 485-8372 Jody Holzmiller, vice-president of college services, has been appointed interim president and CEO. Board chair resigns In related news, Sheila Sterling, the Southeast Regional College board Fax: 443-2433 chair handed in her resignation effective Feb. 14. Sterling had been a governor for the College for the past 5.5 years and Box 160, Alida, Sask. S0C 0B0 more recently served as chairwoman of the board. Sterling has accepted a position within government that will require her to reside outside of the region and she will therefore no longer be eligible to serve on the board. She is excited about her new opportunity and will miss her role on the board immensely. Sterling said, “It has truly been a pleasure to Big Sky Drilling, operating out of Oxbow, Saskatchewan, serve as a governor for the past five-and-a-half has the largest rig Áeet in Saskatchewan. years, and more recently as chairperson for the Big Sky Drilling specializes in oil and natural gas drilling in Southeast Regional College. It has also been an Southeast Saskatchewan and Southwest Manitoba. honour working with the very capable and dedicated staff at Southeast Regional College; with such individuals in place, I am confident that there are only great things ahead.”

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Estevan – If you’re working in the oilpatch, most likely you are spending a lot of time behind the wheel, in all sorts of weather. How do you deal with ice and snow, where the truck is about to go into a skid? If you take the skid avoidance training course with the Saskatchewan Energy Training Institute, you may have a fighting chance. The program was launched last year, when SETI acquired a 2010 Chev Tahoe. This is not your normal Chevy, but rather one equipped with outriggers. Each corner has a hydraulically driven ram which allows the instructor to independently raise or lower each wheel. “They can simulate front wheel skid, rear wheel skid, or all wheel skid,” said Ken Shackel, lead consultant with Southeast Regional College, parent entity of SETI. Training takes place at the Estevan Airport’s apron. “We need a fairly large, smooth, paved area,” he said. If, and when, traffic increases at the airport, they may have to find another home. “It’s going to get busier and busier, and I would anticipate more traffic. It’s probably not forever,” he said. “Right now our main customer has been Penn West,” Shackel said.

“We have had other inquiries.” Indeed, the school is considering taking the program on the road, possibly to Regina or Weyburn. They have found that could weather aﬀects the performance of the hydraulic system, so training will take place in warmer weather. “This is our prime season right now,” he said, with four groups of four lined up. A training session is a day long, starting with theory in the morning and driving in the afternoon. With two instructors, one group goes for a drive in their own company truck, and the second group uses the skid car. They then switch. The group in the work truck drives a course in the city and rural areas. So why would a company send its workers to take a day’s training? “Look at the statistics,” Shackel said. “For lost time, injuries, the numbers are staggering.” Workers travel every day, even in snowy, icy conditions, he said. “For some, you’re looking at three hours a day behind the wheel.” Reduction of injuries, lost time accidents, and damage to equipment are just some reasons to take the course, he said. “What price to you put on an employee?” Shackel asked.

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Power engineering student seeks a normal job Fourth class power engineering student Tyler Hansen is scheduled to write his exam in June.

Estevan – With the program coming to an end, receiving a $750 cheque for your hard work is a nice thing. Fourth class power engineering student Tyler Hansen was one of the recipients of a Centennial Merit Scholarship at the Saskatchewan Energy Training Institute on March 1. The program started last August, and was the ﬁrst SETI program to migrate over to the new facility. “We’re done in the middle of May,” he said. Hansen lives 40 minutes from Coronach, home of one of SaskPower’s coal-ﬁred power plants, the Poplar River Power Station. “That’s where I plan to work when I’m done,” he said. Hansen described the new building as “pretty fancy.” “There were no windows in the

other class,” he said. Their new classroom is flooded with natural light. Hansen added, “It’s kind of nice not having high school kids running around, too.” He’s been around the block before taking this class. “I’ve done a bunch of things. I’ve worked as a lineman and in the oilfield,” Hansen said, adding he worked with SaskPower for four months prior to beginning the class. He used to roughneck on a service rig, but now Hansen wants a more stable life. “I just want a normal job,” he said. He writes the fourth class power engineer test in June. “That’s Step 1,” he said. There are many more to go. Hansen expects it will take a minimum of five years, much of it done through correspondence.

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OfĂ&#x20AC;ce education in demand for oilpatch admin staff Estevan â&#x20AC;&#x201C; While much of the focus of the shortage of labour in the oilpatch has been on ďŹ eld staďŹ&#x20AC;, thereâ&#x20AC;&#x2122;s also a need for people to do the oďŹ&#x192;ce work. Thatâ&#x20AC;&#x2122;s where programs like the Saskatchewan Energy Training Instituteâ&#x20AC;&#x2122;s oďŹ&#x192;ce education program come in. Currently there are 12 students enrolled in the program, which runs 32 weeks from September to April. Thatâ&#x20AC;&#x2122;s the programâ&#x20AC;&#x2122;s capacity for now, but there are plans to expand it to 20. There are additional computers in storage ready to be put to use by the greater number of students. Pam Gunnlaugson is the instructor for the program, teaching all the classes each day. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re all in the same class, all the time,â&#x20AC;? she said. â&#x20AC;&#x153;We do business writing, computer applications

such as Word, Excel, Access, Powerpoint, Outlook and Simply Accounting.â&#x20AC;? The program also includes on-paper accounting in general ledgers, special journals, income statements, reconciliations, invoicing, purchasing and sales. Regular ďŹ le management as well as electronic ďŹ le keeping are also part of the program. Thereâ&#x20AC;&#x2122;s a keyboarding requirement as well. â&#x20AC;&#x153;At the end, everybody has to have 45 words per minute. We have students who do 70 to 80 words per minute. One does 108 â&#x20AC;&#x201C; our top speed so far this year.â&#x20AC;? É¸ Page B17 BriĆŠany Orstead just graduated high school last year and is now looking at working with oil and gas companies. She is also considering going to Brandon to take a pharmacy technician course.

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PIPELINE NEWS April 2012 ɺ Page B16 “They’ve done it all. It’s quite amazing what they learn,” Gunnlaugson said. “We also study interpersonal communications, office procedures and personal management skills.” The course is done through the Saskatchewan Institute of Applied Sciences and Technology (SIAST), and goes towards an office education certificate. The current class is entirely female. Gunnlaugson joked, “When a guy walks in, someone says, ‘It’s a boy!’ “We would welcome guys to this class.” Where do they end up upon graduation? “Many of our students are looking for work in the oilfield sector,” Gunnlaugson said. However, that’s not the only path taken. She noted, “Any sort of government administration job requires an office education certificate.” Iona Kofoed has worked as a special care aide at St. Joseph’s Hospital in Estevan, but after an injury, she’s retraining to work at a desk position, possibly the switchboard. “They are so much more than receptionists. They are trained to run an office. We do projects like organizing conferences and scheduling for an entire office.” Gunnlaugson added, “Front office staff are just as important as general labour. “They’re all doing a job search right now. All had to come up with three different jobs they could apply to. There was no problem with that. There’s plenty of work to be had,” Gunnlaugson said. “I would expect my students to make $20 an hour, if not more. The amount of work they’ve done to complete this certificate is amazing. It not only shows work ethic, but perserverence. “It’s a pretty heavy course. There’s tons of homework,” she said. Asking one student, Brenda, how much homework she does a day, the response was three hours. Amy, on the other hand, said one hour. All the students said they needed their own computers at home to do their work. Thankfully, all the required software comes with the workbook, generally in student version. “We’ve got people from all walks of life. Some are right out of high school. Some have been in the workforce for a few years and would like to advance in their careers. Then you have the mature students who have experience, but need the credentials,” Gunnlaugson said. The second floor classroom is bright and spacious, with several rows of computers and a number of tables for students to work on while doing projects or small group work. Born and raised in Estevan, Gunnlaugson has an education degree from the University of Saskatchewan. She taught high school for the better part of a decade before being employed at this job. “I’ll be back next year for this. It’s all based on enrolment. They’ve had no problems filling it before,” Gunnlaugson said.

B17

Brenda Wrigley works on a problem.

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PIPELINE NEWS April 2012

Power engineering course entry level to the trade

Power engineering instructor Don Vatamaniuck shows oī some teaching tools for his class.

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Estevan – Don Vatamaniuck didn’t spend a lot of time in retirement after leaving SaskPower. Now he’s the instructor for the fourth class power engineer course at the Saskatchewan Energy Training Institute. “I have my ﬁrst class ticket,” he said. “I worked for SaskPower for 25 years at Boundary Dam right here in Estevan. I was a charge engineer. I retired in 2005.” After a stint working at an ethanol plant at Weyburn, he soon found himself instructing the power engineering course for SETI. This is his ﬁfth year in that capacity.

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Vatamaniuck explained the fourth class ticket is the entry level for the power engineering trade. Such students are generally supervised by a third class ticket holder. “It goes according to the pressure of the vessel,” Vatamaniuck said about the variations of requirements for different levels of tickets. With a ﬁrst class ticket, one can operate a boiler of any side and pressure and a refrigeration plant of any size. Asked if the course is directly applicable to oilﬁeld batteries, he said, “I think in the future we’ll be touching more on that, but right now it’s really not taught.” The fourth class power engineering course is run through the Saskatchewan Institute of Applied Sciences and Technology (SIAST). “The total course is 36 weeks. Of that, they spend six weeks in Saskatoon operating boilers on the SIAST campus,” Vatamaniuck said. “We started with 12 (students). We’re down to nine. They got hired out and decided to take

oﬀ,” Vatamaniuck said of those who left the program. “They got hired on at the Co-op upgrader.” All but one of the students are men. They come from Regina, Assiniboia, Coronach, Estevan and elsewhere. “I’ve had as far away as Esterhazy, Moose Jaw and Lumsden,” Vatamaniuck said. “There’s a lot of homework involved in this class, there’s no doubt about it,” Vatamaniuck said. “Probably two to four hours a day would be adequate.” There are 30 hours of class time a week. Lab time is done during the Saskatoon visit. The new school is a step up, according to Vatamaniuck. “It’s nice compared to our other classroom. We basically didn’t have a window. The ﬁrst day we saw 30 deer run by. Noting the building is still something of a work in progress, he added, “It’s a marvelous place for training. It’s got lots of capability, for sure. Once the community gets behind it, it will be a driving force.”

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PIPELINE NEWS April 2012

Ryan Racicot tests out his breathing apparatus as part of an H2SAlive course.

B19

H2SAlive at SETI Garneth Rasmuson, standing, teaches H2SAlive in one of the smaller rooms of the Saskatchewan Energy Training InsƟtute. Here they are going through scenarios and their reacƟons. This room is equipped for video conferencing. Photos by Brian Zinchuk

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PIPELINE NEWS April 2012

First Aid: SETI Right: Thereâ&#x20AC;&#x2122;s plenty of room for both the classroom and pracĆ&#x;cal aspects of the ÄŽrst aid classes oÄŤered at the Saskatchewan Energy Training InsĆ&#x;tute. Photos by Brian Zinchuk

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PIPELINE NEWS April 2012

SETI Scholarships

On March 1, a number of scholarships were handed out at the Saskatchewan Energy Training InsƟtute, a division of Southeast Regional College. The recipients and their programs were, from leŌ, Alissa Noll, power engineering; Robert Neufeld, power engineering; Tyler Hansen, power engineering; Dillon Wilderman, power engineering; Amanda Neiszner-Dezall, oĸce educaƟon; BriƩany Orsted, oĸce educaƟon; Lori St. Onge, oĸce educaƟon; and Susan Carr, basic educaƟon. Photo by Brian Zinchuk

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PIPELINE NEWS April 2012

One of SETI’s biggest promoters reacts to its completion Estevan – Wil-Tech Industries president Jim Wilson was one of the industry businesspeople who pushed for the new Saskatchewan Energy Training Institute to be built in Estevan. He had a big smile on brisk November 2009 day when the sod was turned. Pipeline News reached him while on

holidays, asking what he thought now that the new school is up and running. Pipeline News: Did you have any involvement in the planning of SETI's new building, including ensuring it would end up in Estevan? Jim Wilson: I was not involved

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with the planning of the building, but I was involved with a combination of the chamber of commerce, City of Estevan, Estevan OTS, our MLA Doreen Eagles, and representatives from local industry who all lobbied to get it here. PN: Why was it important to be in Estevan? JW: I think a facility of this scale beneﬁts any community it would be located in. We are known as the Energy City and it only makes sense for the Saskatchewan Energy Training Institute to be here. PN: What does this new facility mean to you? To the industry? JW: I am proud to have a training facility of this calibre in our community and the ability for our employees to increase their knowledge at a local level is a beneﬁt to all involved. PN: What does SETI need to

do to address the growing demand for skilled labour in the southeast Saskatchewan oilpatch? JW: All SETI can do is assist anybody interested in getting the type of training required to work in the oil industry or other local industries whether it be safety courses or more specific training. PN: What programs would you like to see offered at SETI? JW: We have been working on an advisory committee made up of industry representatives to work with SETI to ensure a communication line between industry and SETI regarding training needs. I see the courses offered continuing to evolve. PN: Is there anything you would like to add? JW: If people haven’t had a chance to check out the new facility, they should come out for the grand opening on May 25th.

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B23

This photo was taken last fall just a short distance from what would turn out to be the site of a fatal collision on Feb. 18. File photo

Catering For All Occasions CN crude hauling train involved in fatality Willmar - The CN crude-by-rail transloading facility at Willmar has seen some controversy since it opened a year ago, now it has seen a fatality. On Feb. 18, a pickup truck southbound on Grid 604 struck a train as rail cars were being positioned. The site was just south of the hamlet of Willmar. Willmar is 18 kilometres south of Arcola. There was heavy fog and it happened at night, but there were other factors in the collision, according to Estevan RCMP Sgt. Darryl Milo. “It wasn’t just the intersection. It wasn’t just the fog,” he told Pipeline News on March 7. “Speed and alcohol may have been a factor. ” The driver of the pick-up truck was killed. The victim’s name was not released, in accordance to the wishes of the family. He was 48 years old. There were no other occupants in the truck and there were no other injuries to report. While the crossing is lit by a streetlight, Sgt. Milo said “It’s not a flashing red light crossing.” The crude oil tanker rail car was being positioned. CN staff observed the collision and were able to stop the slow moving train immediately. The tanker was empty and there was no environmental spill to deal with. The train was not derailed. The intersection was marked with a railroad crossing yield sign, railroad crossing signs and street lamps. There was heavy fog in the area at the time and may have been a contributing factor in the collision. An RCMP traffic reconstructionist was called in to investigate the collision. The investigation is expected to take several months to conclude, Sgt. Milo said.

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B24

PIPELINE NEWS April 2012

CP Rail expanding Bakken crude-by-rail in North Dakota Calgary - On the heels of establishing crudeby-rail transload facilities in Estevan and Lloydminster, Canadian Paciﬁc announced March 6 that it will be moving additional Bakken crude oil by unit train rail from a planned industry logistics hub served by its North Dakota network. The Van Hook, North Dakota, facility, to be developed by U.S. Development Group (USD), will handle crude oil and related products from the Bakken formation and will have initial capacity to handle up to 35,000 barrels per day at eight automated truck-unloading positions. Located on CP's Bakken North Dakota network, the hub will eﬃciently facilitate the loading of product via onsite tankage from truck or pipeline to rail car for movement to markets across North America. This high-capacity facility will become part of what CP says is largest crude-by-rail network in the U.S. It will initially allow for the assembly of 15 to 17 crude unit trains per month, numbering up to 104 rail cars, for haulage on CP’s extensive network and to all parts of North America. Capacity will expand to accommodate up to 30 unit trains per month once the terminal is fully developed. ɸ Page B25

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New transload site part of a growing trend throughout Sask. and North Dakota ɺ Page B24 “CP’s commitment to joint market development, service and infrastructure enhancements in the Bakken region make them an important partner as USD continues to grow our network of crude origins and destinations,” said Dan Borgen, USD president and CEO. “We have a strong market opportunity in front of us – by working in close collaboration with CP, our customers and the community, we can safely and rapidly maximize rail shipments of Bakken crude.” “This partnership with USD strengthens our network and advances our strategy to drive volume growth, expand network capacity and achieve targeted improvements in our operating eﬃciency,” said Jane O’Hagan, CP executive vice-president and chief marketing oﬃcer. “This agreement reinforces our railway’s established reputation for safely moving energy products and delivering these products to market. We remain committed to continuing to provide the capacity our

customers need to grow and to continue growing alongside them.” “We have extended our energy franchise with ongoing capital investments on our U.S. Midwest network and are moving forward with our 2012 accelerated capital plan which includes investments that support our energy growth strategy,” O’Hagan said. “These investments expand network capacity and enhance our proven oil-by-rail service model in order to meet increased traﬃc demands from the Bakken play and the input growth it will drive for inbound materials such as frac sand and pipe. By taking advantage of our network to the Northeast U.S. and through our Kansas City gateway to the U.S. Gulf Coast, Canadian Paciﬁc is able to partner with the energy industry to facilitate further growth in moving oil and energy-related materials.” The new Bakken crude origination terminal will join USD’s St. James Rail Terminal (Louisiana), Eagle Ford

Crude Terminal (Texas), Niobrara Crude Terminal (Colorado) and Houston Rail Terminal as part of a nationwide network of crude oil and related products terminals. USD, which pioneered the hub concept, is actively developing additional terminal locations for safe and efficient rail movements of oil, condensate, and related products from major production areas to refining and distribution centres across North America. Canadian Pacific stated it is the only North American railroad to serve the Bakken Formation, the Alberta Industrial Heartland, and the Marcellus Shale. In addition, CP is the only Class I railway to connect the energy hubs of the U.S. Midwest, Alberta and Saskatchewan to the Northeast U.S. Through its network to the Northeast U.S., and through the Kansas City gateway to the U.S. Gulf

Coast, CP is able to partner with the energy industry to facilitate growth in moving oil and energy-related materials. Each year, CP moves hundreds of thousands of carloads of energy-related products, including crude oil, sulphur, fuels, diluents and materials key to the energy industry, such as pipe and frac sand.

B25

FACTBOX: Canadian PaciĮc • TSX: CP, NYSE: CP • Headquarters: Calgary • Canada’s Įrst railway • 14,800 miles of track in 6 provinces and 13 states • CPR as launched several crude-by-rail transload faciliƟes in recent months, including Estevan and Lloydminster

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B26

PIPELINE NEWS April 2012

TransCanada splits Keystone XL in two Calgary, Alta. – TransCanada Corporation is splitting its proposed Keystone XL pipeline into two separate projects. The Calgary-based company is getting ready to ﬁle a new application to the U.S. State Department for a Presidential Permit to build a shortened Keystone XL pipeline from the United States/Canada border in Montana to Steele City, Nebraska. TransCanada say it will also supplement that application with an alternative route in Nebraska as soon as that route is selected. In addition, the Cushing Oklahoma to U.S. Gulf Coast portion of the original Keystone XL

proposal will be constructed as a stand-alone Gulf Coast project, not part of the Presidential Permit process. TransCanada has determined that section of the Keystone XL application has its own independent value to the marketplace. The Gulf Coast pipeline will be built at an estimated cost of US$2.3 billion and subject to regulatory approvals should be in service by mid to late 2013. TransCanada’s new application for the Keystone XL will include the previously reviewed route in Montana and South Dakota.

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The previously approved Canadian portion of the XL pipeline will extend from Hardisty, Alberta to Monchy, Saskatchewan and cross the border into Montana. “The over three year environmental review for Keystone XL completed last summer was the most comprehensive process ever for a cross border pipeline,” said Russ Girling, TransCanada’s president and chief executive officer. “Based on that work, we would expect our cross border permit should be processed expeditiously and a decision made once a new route in Nebraska is determined.” TransCanada will continue to work collaboratively with the State of Nebraska on determining an alternative route for Keystone XL that avoids the environmentally sensitive Sandhills. TransCanada has been working on assessing the routing in Nebraska since November 2011, following the State Department’s notice to delay a decision on a permit until an adjusted route that avoids the Sandhills was developed. Meanwhile, U.S. crude oil production has been growing significantly in states such as Oklahoma, Texas, North Dakota and Montana. TransCanada noted producers do not have access to enough pipeline capacity to move this production to the large refining market at the U.S. Gulf Coast. “The Gulf Coast project will transport growing supplies of U.S. crude oil to meet refinery demand in Texas,” said Girling. “Gulf Coast refineries can then access lower cost domestic production and avoid paying a premium to foreign oil producers. “This would reduce the United States’ dependence on foreign crude and allow Americans to use more of the crude oil produced in their own country.” Girling said reapplying for the Keystone XL permit is supported by words used in President Obama’s statement Jan. 18, 2012 when he said the denial of the permit was not based on the merits of the pipeline but rather on an imposed 60-day legislative timeline to make a decision on the project.

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PIPELINE NEWS April 2012

B27

HMA Land Services acquires Maverick HMA Land Services Ltd. announced on March 7 the acquisition of Maverick Land Consultants to serve the growing needs of HMA’s diverse base of energy clients from Ontario to British Columbia. “We’ve seen tremendous growth with our clients over the past 10 years,” Paul Anderson, president of Calgary-based HMA, said in a news release. “It’s been clear for some time there are even more needs and opportunities to serve our growing client base in Canada concerned with all aspects of energy land acquisition, from Crown and freehold mineral leasing to pipelines, power transmission, oil and gas exploration, telecommunications, consultation and competent representation before regulatory authorities.

49 North buys all of Allstar Saskatoon – Saskatoon based 49 North Resources Inc. has acquired a 100 per cent stake in Allstar Energy Limited in a $1.25 million oﬀering of 49 North shares and cash to the seller. Since 49 North acquired its initial interest in Allstar in April 2010 that company has gone on to drill and complete 17 horizontal oil wells at Kindersley and six vertical oil wells on its Red Pheasant property south of North Battleford. Allstar has the exclusive right to explore for and extract oil and gas from approximately 42,000 acres of highly prospective oil and gas

land, all located in West Central Saskatchewan. The purchase price was satisfied with the issuing of 288,462 common shares of 49 North at $3.25 per share, a cash consideration of $100,000 payable at closing and the issuance of an interest free promissory note of $212,500 due to the vendor by April 30. 49 North is a Saskatchewan focused resource investment company with strategic operations in financial, managerial and geological advisory services and merchant banking. The company’s diversified portfolio of assets includes direct

project involvement in the resource sector, as well as investments in shares and other securities of junior and intermediate mineral and oil and gas exploration companies.

“Clients tell us above all they need both experience in the field as well as sound project management to keep their planned and future developments on time and on budget. Now, HMA’s new team offers unparalleled experience for land services in these sectors and for those reasons.” The company said the growing sophistication and complexity of energy development throughout North America demands the company provide talent to industry that is experienced, competent and able to respond effectively to changing circumstances. “We’re delighted to be ahead of the curve, confident our professionals can add value, timeliness and efficiency to land acquisition as energy becomes even more important to the future of our country,” Anderson added. HMA Land has pursued and become a full-service land broker in the energy industry. Its reputation for expertise in pipelines is well known throughout Canada and in recent years has successfully added experience and talent to other dimensions of land consulting. HMA has offices in Vancouver, Fort St. John, Fort Saskatchewan, Calgary, Regina and London, Ontario. Calgary-based Maverick Land has been a land broker serving the surface and mineral land industry for almost 30 years. In that time Maverick developed a strong reputation for quality and excellence in providing surface and mineral acquisition services to oil and gas clients throughout Western Canada.

B28

PIPELINE NEWS April 2012

Industry message to governments: Help wanted “Every sector of the economy will be hit hard by a shortage of workers”

Skilled workers are in short supply, and will be for some Ɵme to come. File photo

- Richard TruscoƩ, Alberta director of the Canadian FederaƟon of Independent Businesses

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Edmonton – A coalition of Alberta business groups is asking governments to work with industry to make it easier to attract new workers to the province and improve the immigration process. The 19-member Alberta Coalition for Action on Labour Shortages includes representatives from the Canadian Association of Petroleum Producers,

the Alberta Federation of Independent Business and every major sector of the economy aﬀected by labour shortages. The Alberta government is forecasting there will be 114,000 more jobs than people to ﬁll them in coming years, a trend which is increasingly evident across Western Canada. The coalition is asking the federal and provincial governments to engage quickly with employers in developing and implementing new strategies to help overcome the expected shortage.

“Our challenge is clear,” said coalition spokesperson Richard Truscott, Alberta director of the Canadian Federation of Independent Businesses in a March 1 news release. “Governments and industry must work together quickly to explore opportunities to improve temporary worker and permanent immigration programs to meet the needs of a growing economy. “Every sector of the economy will be hit hard by a shortage of workers.” ɸ Page B29

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PIPELINE NEWS April 2012 ɺ Page B28 The recently-released 2011 census revealed that the western provinces are a magnet for new arrivals, and strong commodity prices are expected to boost the western economies over the next two years. The coalition noted the shortage of labour will slow economic growth, costing jobs and reducing government revenue to support vital government social and economic programs such as hospitals, schools and roads. “We recognize that ﬁnding qualiﬁed employees is primarily the responsibility of employers, and we take that responsibility seriously,” said Ken Kobly, CEO of the Alberta Chambers of Commerce. “Coalition members are up-training and re-

Saskatchewan yields higher weekly pay Regina – It pays to work in Saskatchewan. According to a report from Statistics Canada, the average weekly earnings in the province for December 2011 increased by 3.3 per cent compared to a year ago. This was the third highest increase among the provinces and above the national average of 2.4 per cent. Saskatchewan’s average weekly earnings for December 2011 were $893.21, the second highest in Western Canada behind Alberta ($1,064.80) and above the national average of $888.26. Saskatchewan’s earnings have exceeded the national average since August 2011. “Saskatchewan workers continue to beneﬁt from our growing economy with competitive wages and a multitude of job opportunities,” Advanced Education, Employment and Immigration Minister Rob Norris said. “With a record population and the second highest average weekly earnings in Western Canada, Saskatchewan is a great place to live and work.” The province’s real wage rate (adjusted for inﬂation) increased by 0.8 per cent, compared to a national increase of 0.1 per cent, compared to December of last year. In mid-February there were more than 10,000 jobs listed on the www.saskjobs.ca website.

training their employees to better meet future challenges, and tapping into non-traditional markets in Canada and abroad.” The coalition is urging the provincial and federal government to change the point system of the Federal Skilled Worker Program to place greater emphasis on labour demand and validated employment offers. It also recommends expanding opportunities to transition temporary workers to permanent immigrants such as the Provincial Immigrant Nominee Program and the Canadian Experience Class. In addition, the group is calling on the federal government to change the national occupation codes used in both the permanent and temporary streams, to reflect employer needs and recognize a broader range of existing skilled positions. The coalition also urges government action to reform the Temporary Foreign Worker program processes to recognize employer pre-qualification, cross-industry based shortages of workers, and

B29

streamline the application and approval process. “In addition to ongoing efforts to maximize the opportunities for Canadians to benefit from our expanding economy, what’s needed now is the recognition that we must aggressively recruit in international labour markets,” said Tim Shipton, president of the Alberta Enterprise Group. We will be more successful in this effort if the federal and provincial governments make the necessary changes to help employers gain access to the human resources we need, “We need to work together with all levels of government to implement real solutions.” The coalition formed in late 2011 includes representatives from the Canadian Association of Oilwell Drilling Contractors, the Consulting Engineers of Alberta, the Canadian Association of Geophysical Contractors, the Canadian Energy Pipeline Association and the Merit Contractors Association Petroleum Services Association of Canada.

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Sure Energy to be busier in the Bakken Calgary â&#x20AC;&#x201C; Sure Energy has a $38 million capital program for 2012, targeting low risk production growth at its core oil properties and prospects in Alberta and southwest Saskatchewan. The Calgary-based company also unveiled plans to further explore its new Virginia Hills property in west central Alberta with the release of its 2011 year-end operating and ďŹ nancial statement on March 7. Sure Energy drilled its ďŹ rst well into a heavy oil prospect at Hatton in

southwest Saskatchewan in September 2011. The vertical appraisal well encountered 6.5 metres of heavy oil pay. The well came on production on Nov. 7 and averaged 75 barrels of oil per day for the ďŹ rst 30 days on production. It is currently producing at 77 barrels of 12 API oil per day with at proďŹ table return of $50 per barrel of oil equivalent. Sure Energy owns 2,560 net acres on the play (four 100 per cent working interest sec-

tions), as well as proprietary 2D seismic data. Depending on the extent of the play, the company has nine to 23 drilling locations on its lands based on one well per legal subdivision. It intends to drill two immediate oďŹ&#x20AC;set vertical locations and one step-out vertical location in 2012. Wells are budgeted at $0.8 million to put on stream. In the Queensdale area in southeast Saskatchewan, Sure Energy produced 225 barrels of oil per day (100 per cent

oil) in the fourth quarter, up from 64 barrels of oil in the third quarter of 2011. The company has drilled four horizontal wells on the property to date, but during 2011 only two of these wells were on production consistently. The other two wells are waiting on the drilling of a salt water disposal well before they can be pumped at optimal rates. This well has been drilled in the ďŹ rst quarter of 2012 and should

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become operable in March. The drilling of the salt water disposal well extended the pool to the north. Sure Energy is currently evaluating the economics of exploiting the extension with either a vertical well or a horizontal well. The company owns 5,170 net acres in the area and owns proprietary 3D seismic over much of the acreage. The Mississippian Alida is the main geological target and the wells produce light crude oil. The companyâ&#x20AC;&#x2122;s ďŹ rst well in the area came on production at approximately 240 boepd and paid out in three months. The wells are simple, horizontals (no fracking) and cost about $1.3 million to put on stream. In 2011, Sure Energy closed the second of two acquisitions in its core Virginia Hills area of west central Alberta opening a new core area. The company acquired 69 sections of land (average 64 percent working interest) of various mineral rights and 160 boepd of associated production (72 barrels of oil per day) for $11.3 million. Sure Energy plans to drill a horizontal well on its 50 per cent

working interest lands in the second quarter of 2012, and has budgeted a follow-up well should it be successful. Included in Sure Energyâ&#x20AC;&#x2122;s acquisition at Virginia Hills were two horizontal Beaverhill Lake producing wells which were completed open hole in 2011 but were never fracked. Sure Energy says it made the purchase to establish a position in the Virginia Hills area to gain exposure to a Viking resource play, similar to its core Redwater area north of Edmonton. The company owns 16,855 net acres of land on the lower Viking light oil trend at Redwater. Sure Energyâ&#x20AC;&#x2122;s total production in 2011 averaged 1,220 boepd up from 944 boepd for a year over year increase of 29 per cent. The company reports that 2011 was the ďŹ rst year it produced more oil than gas and will continue to shift from gas to oil in 2012 and beyond. The companyâ&#x20AC;&#x2122;s proved plus probable (2P reserves) also increased in 2011 to 5.9 million barrels of oil equivalent from 4.5 million boe in 2010 for a 33 percent growth year over year.

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PIPELINE NEWS April 2012

B31

Hands-on is a key component to most Enform training courses Calgary – The first, and sometimes only, exposure many oilfield workers have with Enform is its numerous safety courses like H2SAlive. However, the safety association for Canada’s upstream oil and gas industry offers a lot more than that. Lorne Polzin, senior manager of technology and international training, and Bill Tinkess, a program manager in that department, walked Pipeline News through a small sampling of the advanced training courses Enform offers. “These courses tend to be technical in nature. Well over three-quarters have a hands-on component,” Polzin said. “In most courses we target 30 to 50 per cent hands on.” “In a lot of cases, it’s first develop the skills, then have the training ability to demonstrate those skills. These skills are transferable to the field.” A number of the courses are run at Enform’s Nisku facility, south of Edmonton. One of the flag ship courses is second line supervisor’s well control, where students learn to circulate a kick on a live well. “We use live natural gas,” Polzin said. The biggest value is students operate equipment used in the field which makes the training as realistic as possible. Asked about Enform’s interaction with the Saskatchewan Energy Training Institute, which is in the process of expanding its programming, he said, “We would do our upmost to

help them develop their facilities and training.” Enform currently has two drilling rigs and a service rig for its training purposes. “The industry has moved away from traditional rig floor training to on-the-job assessment,” Polzin said. That means assessing whether workers have the skills, or do they need more mentoring? he explained Courses can be customized to fit client needs for content, duration and location giving the consumer the ability to request specialized “just in time training”. Cathodic protection Tinkess said, “The cathodic protection course was developed specifically for rectifier operation. “It really is the operation of the rectifier in the field, anything that applies to a rectifier.” The program only operates with direct current. Anything that involves alternating current has to be done with an electrician. “This is training for a cathodic protection technician,” Tinkess said. “They need to have 340 hours of work experience on the field, as well as this training, to get their certification.” It’s a five-day program, only offered at Nisku, combining theory and hands-on training. “We have ten [units] with problems built in. They have to trouble shoot them. Two are base models that operate correctly. One is new, state-of-the-art. Rig tech Rig technician is

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offered by registered colleges in Alberta and Saskatchewan, but Enform is the recognized provider for British Columbia. Currently they have 20 people in level 1 of the program, 18 in level two, and 10 in level 3. The students are residents of B.C., but can be working in any province. They have to be recommended by their employer. Gas production operator Tinkess noted this is one of three courses offered for field operators. The first is oil and gas production operator basic, the second is gas production operator, and the third is oil production operator. The basic course is for entry level operators with no experience,

and provides pre-employment training with hands-on experience. This is a ten-day program. The later courses are more of an upgrade, and go at a faster pace. Each

are ﬁve-day programs. All are operated at Nisku. The gas plant used is totally operational. “We do it with live natural gas and propane,” Polzin said. “They spend the mornings

in the classroom with theory. That includes instrumentation. They go out in the afternoon and we have set exercises they do in the live facility.” ɸ Page B32

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PIPELINE NEWS April 2012

More to Enform training than H2SAlive

ɺ Page B31 Students will perform start-ups, optimization techniques, operate the dehydration system and amine sweetening system. Running the refrigeration for liquids recovery is also part of the training. There’s a full wellsite skid for setting chokes. “We simulate the product coming oﬀ the wellhead,” he said. “From there we can direct it to any portion of the plant we want to use.” Instrumentation knowledge is also part of the training. This class is limited to 12 students per course, and currently has four courses per year. Oil operator The oil operator course is similar in nature. “We use a dead oil with nitrogen for our ﬂuids. We mix it up, creating an

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emulsion, and the students process it,” Polzin said. The battery operators will run a well test, changing a header to run a well to the test separator. “We run through cold separation and a heat treater. This program includes conventional pumpjacks and rod pumps, progressing cavity pumps, electric submersible pumps and a standard flowing wellhead. Excercises include optimization, start-ups and shutdowns, as well as taking water cuts and determining basic sedimentation and water. “We have tankage there. One exercise is to climb up and measure the level of the tank,” Polzin said. “We have oil going through a sales meter. It’s an all-around operation.” Safety management regulatory awareness “It’s for any wellsite supervisor, including the company man, and rig manager,” said Polzin. The course involves three days of classroom training. It’s to ensure the wellsite supervisor and prime contractor are aware of their roles and responsibilities with respect to health and safety at the wellsite. “It’s everything from roles and responsibilities to what is a safety program, hazard identification, risk assessment, inspections, incident investigations and leadership skills,” he said. They also focus on the differences in regulations between Saskatchewan, Alberta and British Columbia. “A lot of these regulations are in continual flux,” Polzin noted.

Oilsands Quest seeks deal Calgary – A bird in the hand is worth two in the bush. That’s the way it is for beleaguered Oilsands Quest Inc. after securing a further court-approved exten-

sion to solicit oﬀers to acquire, restructure or recapitalize itself by April 27. The Calgary-based operator will continue the solicitation process under the protection of the Companies’ Creditors Arrangement Act (CCAA) with the assistance of a courtapproved monitor. Oilsands Quest has also been granted an extension until May 18 to regain compliance with the listing standards of the NYSE Amex. These developments follow the default of an agreed deposit of $400,000 by Feb. 24 on

the $7 million purchase oﬀer for the company’s non-core Eagles Nest made by FAMA Capital Ltd. FAMA did not make the deposit on time and the agreement was terminated. That failed purchase oﬀer is unrelated to the solicitation process and followed a short courtdirected limited bidding process, resulting in a higher sale price than previously disclosed. Oilsands Quest reported on March 1 that it is working with the monitor to reopen the sale process for its Eagles Nest asset.

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NAL’s 2012 production shortfall due to last year’s Áooding This new NAL Hoīer baƩery Ɵes-in producƟon that was previously producing to single-well oil baƩeries in the area, reducing operaƟng and transportaƟon costs and improving reliability in bringing volumes to market. In addiƟon, construcƟon started in early 2012 on a new satellite facility at Oungre/Neptune to allow for the consolidaƟon of trucking operaƟons closer to infrastructure. File photo

(Nickle’s Daily Oil Bulletin) – NAL Energy Corporation's year-end 2011 earnings tumbled by $70 million as the company booked a net loss of $11.03 million versus a proﬁt of $59.03 million the prior year. The company's fourth quarter 2011 net loss was $53.89 million compared to a loss $22.02 million for the corresponding period in

2010. The company said the decrease in net income in 2011 was attributable to increased impairment ($69.2 million), a decreased gain on derivative contracts ($17 million), increased operating costs ($12.3 million) and a decreased tax recovery ($27.7 million). This was oﬀset by increased revenues net

of royalties ($31 million), decreased interest charges ($1.5 million), lower share-based incentive compensation ($5.7 million), decreased depletion ($7.4 million) and a higher gain on disposition ($8.5 million). Revenues for both the three and 12 months ended Dec. 31, 2011, increased slightly yearover-year. ɸ Page B34

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PIPELINE NEWS April 2012

New batteries at Oungre, Neptune to reduce costs Éş Page B33

NAL has been busy building pipelines and faciliĆ&#x;es near the U.S. border this past winter. Photo by Brian Zinchuk

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Wet weather Full-year 2011 production volumes of 28,338 boepd were approximately 1,100 boepd lower than the same period last year. The majority of the shortfall is related to lower oil production in Saskatchewan, which was caused by severe wet weather during the second and third quarters. Fourth quarter production of 29,795 boepd was four per cent higher than production of 28,596 boepd in the same period of 2010 due to higher crude oil volumes, primarily a result of the 2011 oil-focused drilling program. The company noted that fourth quarter 2011 production was positively impacted by ďŹ&#x201A;ush volumes and attributable to the tie-in of the six wells from its Lochend Cardium program. NAL spent $31.7 million on drilling, completions and tie-in operations during the fourth quarter of 2011, compared to $19.4 million during the comparable period of 2010, and drilled 27 (9.9 net) wells, compared to 23 (8.6 net) wells during the same period in 2010. All wells drilled in the fourth quarter of 2011 were oil wells. In total, the company drilled 137 (68.3 net) wells during 2011, compared to 131 (61.4 net) in 2010. Of the total wells drilled in 2011, 120 (88 per cent) targeted oil and natural gas liquids (NGLs). In southeast Saskatchewan, 11 (5.1 net) horizontal oil wells were drilled during the fourth quarter. Activity was focused in the Greater HoďŹ&#x20AC;er area (ďŹ ve wells drilled), with six additional wells drilled in Alida (one), Nottingham (three), Spring Water (one) and Hummingbird (one). In the Greater HoďŹ&#x20AC;er area, NAL drilled two (one net) wells in the new Oungre/Neptune area, signed two farm-in agreements and purchased proprietary seismic that allows the company to extend the new pool discoveries in this area. NAL continues to test underbalanced drilling techniques at HoďŹ&#x20AC;er and is working on a pressure maintenance program to optimize production performance. For 2012, the company currently has up to ďŹ ve drilling rigs operating in Saskatchewan during the ďŹ rst quarter and intends to drill 21 additional horizontal Mississippian oil wells during this period, largely focused in the Greater HoďŹ&#x20AC;er, Alida-Nottingham and Midale areas. Construction of the central gathering facility at HoďŹ&#x20AC;er was completed and began operations at the end of January 2012. The battery ties-in production that was previously producing to single-well oil batteries in the area, reducing operating and transportation costs and improving reliability in bringing volumes to market. In addition, construction started in early 2012 on a new satellite facility at Oungre/Neptune to allow for the consolidation of trucking operations closer to infrastructure. É¸ Page B35

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New facilities like this one at Neptune have been built by NAL to handle increased production.

ɺ Page B34 In Alberta, NAL participated in drilling seven (3.6 net) Cardium locations during the fourth quarter with activity balanced across several key areas, including Garrington (two), Westward Ho (two), Willesden Green (two) and Lochend (one). In addition, during the fourth quarter, five (0.46 net) third-party revenue farm-out wells were drilled. Four wells were drilled during the quarter at Garrington/ Westward Ho where the program continues to perform in-line with expectations. NAL drilled its first two Cardium wells at Willesden Green during the quarter where it will continue to monitor results. In 2011, NAL followed up on the successful 10-17-27-3W5 location at Lochend by drilling five more wells directly offsetting this location and obtained initial production rates as high as 800 boe per day. New-well production peaked in November at approximately 1,375 boepd as flush volumes were tied-in and declined to just over 1,200 boepd in December. Since then, the company said that actual production history has validated the legitimacy of a regional "sweet-spot" and is now characterized by an internal type curve that exceeds NAL's typical Cardium type curve by two to three times. At current crude oil prices, Lochend Cardium wells deliver payouts in eight to 12 months and recycle ratios of up to five

times. In 2011, NAL acquired a large 3D seismic survey in the area to help define both the extent of the sweet spot and controls on the distribution of the play. For 2012, NAL plans to double its drilling program at Cochrane/ Lochend with approximately 15 locations planned. Drilling is expected to resume after breakup with incremental production anticipated in the second half of 2012. In the fourth quarter of 2011, construction was completed on a battery at Cochrane, which provides additional liquids handling capacity. In Pine Creek, NAL's fifth Wilrich well rig released in January 2012 and is expected to be on stream prior to breakup. NAL's previously completed fourwell Wilrich program continues to have more productive capability than available capacity on existing infrastructure. The company is planning to drill two wells with the major operator at Swan Lake in 2012, following the acquisition of land in that area in the third quarter of 2011. The 16-1092-13W5 location was spud in February 2012 and the closest offset wells to this location have produced 30-day initial production rates in excess of 400 boepd. In northeast British Columbia, NAL's activity was focused on the appraisal of the Montney at its 100 per cent working interest Fireweed property. The first Montney well came on stream in the fourth

quarter of 2011 and delivered a 30-day initial production rate of 1,000 boepd with approximately four mmcf per day of natural gas and up to 100 bbl. per mmcf of liquids. Drilling of these two Montney wells has successfully preserved 11 contiguous sections that were scheduled to expire in December 2011. In January, NAL ﬁnalized a new four-year arrangement that grants the company access to 280 (182 net) sections of Cardium acreage directly oﬀsetting existing Garrington/Westward Ho lands. NAL's net commitment is $6 million per year under the new agreement, which adds up to 50 new drillable Cardium locations plus future upside potential. NAL exercised its option for a three-year extension to the existing joint venture agreement with a senior industry partner in the company's Lochend Cardium light oil region. In connection with the extension, NAL has a commitment to spend an additional $30 million to 35 million by Aug. 31, 2015.

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PIPELINE NEWS April 2012

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C-SECTION April 2012

Eileen Arthur, Roxene Lockhart and Bert Samuelson from Lakeland College in Vermilion led Pipeline News on a tour of the newly renovated Applied Engineering building with the heavy equipment technician shop in the background. Enrolment conƟnues to increase in apprenƟceship and pre-employment trades courses to meet the demand for new workers in the oil and gas industry.

Trades intake on the rise at Lakeland By Geoff Lee Vermilion – Lakeland College is going all out to the meet the demand to train new trades apprentices for the oil and gas industry in Western Canada. Enrolment is up or steady in all eight apprenticeship courses offered this year at the Vermilion campus as is growth in six pre-employment trades programs and professional development courses for industry workers. A total of 956 students are registered for apprenticeship training this year with 1,092 students accepted for the 2012-13 school term starting this fall. “We are starting back into another boom. Our numbers went up by about five per cent this year,” said Bert Samuelson, dean of Trades & Technology at Vermilion. Based on input from industry advisory meetings such as the one he attended at Alberta Innovates, Technology Futures in Edmonton in February, Samuelson expects enrolment in trades courses will continue to increase. “At that meeting there were indications from oilsands companies such as Suncor, Statoil, Cenovus that there is just a huge shortage across the province and across the country,” he said. To help meet the demand, the campus is adding a third year to its instrumentation technician program this fall with a fourth year likely to follow.

The college will also launch the first year of a gasfitter apprenticeship course in September. Lakeland currently offers apprenticeship training for automotive service technicians, carpenters, electricians, heavy duty technicians, instrument technicians, parts technicians, steamfitter/pipefitters and welders. “We are starting a new program on performance and specialty vehicles,” said Samuelson. “We haven’t put a title on it. That will be something that’s coming within the next year or so.” The demand for apprenticeship training is also being met by Lakeland’s pre-employment trades programs that are popular with students and employers alike. In just four months of schooling, students can gain an entry level apprenticeship to become an auto service/heavy duty technician, carpenter, electrician, instrument technician, steamfitter/pipefitter and welder. “We are offering pre-employment programs that get you into the industry,” said Eileen Arthur, business industry development co-ordinator. “You come in and do your theory and practical within the college for three months and then there is a practicum component for four weeks.” ɸ Page C2

PIPELINE NEWS April 2012

College expanding trades programming ɺ Page C1 1,500 hours to complete that year and with some practicum students. we will be going for accreditation,” Arthur said 72 pre-employment then they can go back and do their “We are trying to do our part in said Arthur. students were hired by industry in second and third year, and in a lot of getting those students in and trained “We hope to have this up and December including three young cases, fourth year. They already have so that they can go out into the running for a September intake. It’s welders hired by Leading Manufactheir safety tickets so they are ready to industry fully trained and be viable to just another avenue for electricians to turing Group in Vermilion, a comhit the field.” those companies. take.” pany that makes fabricated The college will also comheavy oil tanks. plete a master’s electrician cer“Industry is hiring them tification course for journeyperand indenturing them,” said sons in electrical construction Arthur about pre-employcontracting this month with a ment students. wrap-up exam. “It’s a good way to get The course is being held on your foot into the trades. weekends to suit the needs of Students can come in and industry. try the trade to see if it’s a “We design the course to fit for them. what fits them,” said Arthur. “The employer likes this The applied engineering program because the stulab is also a hub for evening dent knows that’s the career continuing education classes, B they want.” pressure welding recertification Students also start and local high school students work with a full set of A total of 72 students enrolled in the current fourth year electrician apprenƟceship course at the Vermilion taking basic and intermediate safety tickets and the campus of Lakeland College. Classes are held in the renovated Applied Engineering building that houses ap- welding classes through the prenƟceship and pre-employment welding and steamĮƩer/pipeĮƩer students. completion of their first career and technologies studies year apprenticeship exam. (CTS) program. “If an employer likes The new facility will also a student, they will hire one and they Lockhart said the biggest demand “There are so many oilfield expan- host this year’s regional Skills Canada don’t have to send them off for their for trades programs comes from the sions that require a lot of tradesmen, Competition sponsored by Cenovus first period of technical training. oil and gas industry that supports col- so we see a lot of our apprentice for high school students pursuing “They have already completed lege with partnership, donations and students going up to the oilsands – careers in trades from welding and their first year of technical training work practicum opportunities. steamfitter/pipefitter and the weldcarpentry to hairstyling and culinary and written the trade entrance exam,” “Without the practicum, we ing trades are really crucial in the big arts. said Roxene Lockhart, chair of Trades wouldn’t be able to run these proexpansion up in the oilsands.” “This will be our fifth year host& Technology. grams,” said Lockhart. “The industry The Applied Engineering Building the event. We have just had great “Pre-employment students need is really looking for us to supply them ing that houses the apprenticeship response from the schools in our and pre-employment welder and region,” said Lockhart. steamfitter/pipefitter programs unThe 20th annual provincial Skills P.O. BOX 224 MARWAYNE, AB T0B 2X0 derwent a major renovation in 2011 Competition will be held May 10-12 to accommodate more students and in Edmonton where the nationals will combination welding booths. also be held May 14-15. “Our capacity has probably Meanwhile, Lakeland is gearing doubled from what we had before,” up to participate in the 2012 Bi• GAS MIGRATION TESTING - Ground Disturbance Not Required said Samuelson, who noted the imProvincial Try-A-Trade Career Expo • SURFACE CASING VENTMETER™ SURFACE CASING MONITORING provements and new programming in Lloydminster May 1-2, sponsored real time remote monitoring • STABILIZED SHUT-IN PRESSURE MONITORING by the Lloydminster Construction are driven by industry. real time remote monitoring Association. “They pretty well govern what • GAS SAMPLE COLLECTION “We were in on the ground level we’re doing. If the demand is out • REMOTE WELLSITE INSPECTIONS there we try to meet it,” added Samu- when they started that. I think this • SUSPENDED WELL COMPLIANCE INSPECTIONS year they are looking at about 1,200 elson. • PRE- ACQUISITION WELL SITE INSPECTIONS & CO2 BASELINE students coming in. It’s fantastic for The campus is offering a new soTESTING/ MONITORING lar installer program this fall for elec- us,” said Samuelson, in reference to • SOURCE DETERMINATION BY MAXXAM ANALYTICS INC. tricians working in the field as well as the expo as a recruiting tool. • ABANDONED WELL LOCATING “A lot of these are younger stuelectrical apprenticeship students in • CUT/ CAPPED WELL CASING LOCATING response to a provincial advisory com- dents in Grade 9, 10 or 11. We may not see the results for another three or mittee for the electrical industry. Fax: 780.847.3277 Ryan: 403.519.8881 four years. It’s pretty well exposure to “We have one more session of Kerry: 780.205.3495 info@doullsite.com training in March for instructors, then all the trades.” Office: 780.847.2567 www.doullsite.com

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PIPELINE NEWS April 2012

Portage leads to Lakeland College Vermilion, Alta. - Portage College graduates pursuing careers in environmental sciences can turn their two year diploma into a four year applied degree at Lakeland College in Vermilion through the magic of a transfer agreement now in effect. The agreement makes graduates from Portage’s two-year natural resources technician diploma program eligible for admission into Lakeland College’s bachelor of applied science: environmental management program. Upon acceptance into Lakeland’s environment degree program, Portage graduates will receive a block credit transfer for courses they completed in the natural resources technician program. The transfer agreement was signed by officials from both community colleges on Jan. 30 at the Vermilion campus. “This agreement is all about making quality educational opportunities more accessible for northern students,” said Mel Mathison, dean of Lakeland College’s School of Environmental Sciences and Applied Research. “It’s also a great example of how colleges can work together to help students advance their area of expertise, gain more hands-on skills training, and increase their linkages with industry.” Fatima Tarrabain, Portage’s dean of Education, Environment and Cultural Arts notes that students will also benefit from studying in a program that is accredited by EcoCanada.

“This articulation agreement provides learners with the opportunity to obtain a degree at a community college with similar best practices and student focus mandate,” said Tarrabain. “In addition to the many benefits to learners, this agreement enables the sharing of expertise and knowledge resources between our two institutions, allowing us to fully leverage the academic excellence at both institutions. “We are very excited about this partnership with Lakeland College.” The new transfer agreement between Portage and Lakeland will be in place for five years and may be extended subject to the review and approval by senior academic officers at both colleges.

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PIPELINE NEWS April 2012

Lakeland buys new boiler Story and photo by Geoff Lee Lloydminster – Lakeland College has purchased a new water-tube boiler for approximately $700,000 as a new teaching tool for the start-up of a new two year heavy oil engineering technology (HOET) diploma program this fall. The new boiler will be hooked up next to the existing fire-tube boiler in the heavy oil operations technician (HOOT) lab at the Lloydminster campus. The new water-tube boiler will provide more training options for one year HOOT students who write a fourth class power engineering exam and the first HOET class to challenge the third class power engineering exam in Alberta. “We are adding a new boiler to upgrade our program as a whole from a fourth class power engineering program to a third class power engineering program,” said HOOT instructor Greg Shalay. “To reach the accreditation for the higher class ticket, we have to expose the students to larger equipment. As well, we are increasing the variety and types of boilers. “The new boiler will expose

students to types of equipment that they will definitely see in the oilfield. Almost of the boilers working around the Lloydminster area right now follow the water-tube design. “It’s normal everywhere in Canada to train with a fire-tube and a water-tube boiler.” Lakeland’s power engineering lab provides students with hands-on learning in the safe and effective operation and maintenance of industrial equipment such as boilers, turbines and internal combustion engines. “The new boiler will make a huge difference for teaching. It’s going to expose the students to a whole different type of boiler,” said Shalay. “They way of operating the boiler and the way of caring for it is different than the old boiler. “The sizing of the boiler is going to be quite a bit different. It’s going to dwarf the old boiler sitting side by side. It’s going to be a really good teaching tool for us.” Shalay noted there is nothing wrong with the existing fire-tube boiler that was used when it was donated to the college more than 20 years ago. “It’s a very standard, very old design of boiler, but it’s generally found in small sizes,” he said.

“You will find a lot more of them in Edmonton in heating plants and in small processing facilities. “The newer one is closer to what you would find in the Lloyd area in the oil and gas and food processing industries. “It will be a D-type water-tube boiler – it’s a very typical standard industrial type of boiler.” A water-tube boiler is a type of boiler in which water circulates in tubes heated externally by fire. Fuel is burned inside the furnace, creating hot gas which heats water in the steam-generating tubes. The equipment upgrade is part of Lakeland’s plans to centralize oil industry programming in a new $32 million power engineering lab with construction of the first $15 million phase to get underway this spring. The first phase will incorporate a larger power engineering lab with a water testing room and an operations control room plus a heavy oil operations lab that will have a maintenance section, a simulation lab and a gas process lab. The new boiler will eventually be relocated to the new power engineering lab wing. Classrooms, lecture theatres, a computer lab, a student lounge and

faculty offices will be added during the second phase of construction. The expansion program, new energy programming and the boiler upgrade are in response to a growing demand for qualified power engineers, especially in the heavy oil industry. “Industry has been demanding third class and second class for quite awhile. It’s a change that has been slowly sneaking up on everybody,” said Shalay. “As a province, we weren’t really well prepared. Now, with the big growth in oil, there is a tremendous shortage of power engineers in the western provinces.” HOOT students are currently on work placements at power plants, battery/well sites and heavy oil recovery plants in the Lloydminster area. “We find the work practicum is very successful for us,” said Shalay. “The students’ exposure to the work environment and the larger machinery has also helped them to better understand the course material we are teaching. “It’s been a long tradition in power engineering going back 100 years – to qualify as a power engineer, you have to spend time working. ɸ Page C5

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PIPELINE NEWS April 2012 ɺ Page C4 “To attain a higher level of certification as a power engineer, you have to spend time working at different levels of employment.” Typically fourth class power engineering graduates end up in a variety of full-time jobs in a variety of levels, from working in small plants to large coal fired electric generating stations. “There is tremendous growth in the thermal extraction of oil. It’s just been sucking up power engineers like crazy,” said Shalay. “We are trying to produce the junior engineers in the trade as fast as we can. “Also the industry is bringing in experienced engineers from other parts of Canada because they not only need guys starting out today, but they need experienced engineers to be the shift engineers in charge at the plants. “There is a tremendous amount of hiring. The wages in the oil industry are high compared to industries anywhere else in Canada.” Shalay has more than 30 years of experience working in power plants including 20 years in the pulp and paper industry. “Before that, my dad was a steam locomotive engineer on the railway. I started learning about steam when I was a small child,” he said. His experience has taught him that steam boilers, including the existing fire-tube on at Lakeland, tend not to need a lot of updating over the years. “Every once in awhile we will put new instrumentation on it,” he said. “This boiler has a new flame control module that controls the burner, but

the rest of the boiler is pretty well exactly the way it was 20 years ago.” Shalay said the decision to buy a new one was based on the lack of availability of a used one. “It would take too long to buy a used boiler and have it checked to make sure the pressure vessel is still serviceable,” he said. “The new boiler will be running for the third class program that will be running in the fall. “Everyone is excited about the whole change – the expanding of the program from a one year to a two year program, the higher level of certiﬁcation students are going to have, and the prospect of the new building going forward. “We are not going to be able to dig for a month or so, but I anticipate it will not be long before we actually start digging and preparing the site for the foundation work. “The scheduling is based the consultants we have. We have to do a lot of planning on the mechanical and electrical side before the architects can start designing the building,” said Shalay. “The goal is to have a ribbon cutting on the Nov 13, 2013 to mark the centennial of the college.” Greg Shalay, a heavy oil instructor at Lakeland College in Lloydminster is excited about the purchase of a new water-tube boiler to be installed beside exisƟng Įre-tube boiler that is pictured in the heavy oil lab. The new upgrade is in keeping with the start of a new two year heavy oil engineering technology diploma program this fall and the construcƟon start of the Įrst $15 million phase of a $32 million power engineering lab in the coming weeks.

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PIPELINE NEWS April 2012

Lakeland teaches heavy oil at Onion Lake Kara Johnston, Energy, Entrepreneurship & Saskatchewan Programming director at Lakeland College in Lloydminster is excited about a new heavy oil and gas program being delivered at Onion Lake through Saskatchewan post-secondary educaƟon programming and funding.

Lloydminster – Lakeland is going to school at Onion Lake Cree First Nation. The college is teaching a 21-week pilot program at Onion Lake to prepare students for entry into Lakeland’s heavy oil operations technician (HOOT) program or entry level oilﬁeld pumper jobs on the reserve. The introduction to heavy oil and gas program began March 5 and runs until July 27. The program is instructed by Lakeland’s Energy, Entrepreneurship & Saskatchewan Programming with on-reserve funding provided by the Ministry of Advanced Education, Employment & Immigration (AEEI). AEEI has provided on reserve adult basic education programs to more than 2,700 Aboriginal learners in Saskatchewan from 2007 to 2011. “They wanted us to specially do something in regards to the oil and gas industry,” said Johnston who brainstormed with Syd Pauls, education, training and careers manager for Onion Lake. “He gave us some ideas of what he’d like to see as deliverables from our end,” said Johnston. “In the end, we decided we decided we needed a program that had two goals. “The ﬁrst goal would be to prepare Aboriginal students to go into our mainstream heavy oil programming so if they want to come into our HOOT

program they could and be successful. “The second goal, of course, had to be if they elected to not go into our HOOT program that they could use those skills and go into the community and be employable.” Approximately 35 people attended an information session at Onion Lake where Pauls helped to pitch the program as an opportunity for Onion Lake residents to be working in the oilfield in their own community. “We need a strong partnership with Onion Lake,” said Kara Johnston, director of Lakeland’s energy programming. “Without their support we can’t do it. We need them behind us every step of the way and they have been. They have been really supportive. We’ve had some really great discussions with regards to the goals of the program. “They are giving us the space and are driving students toward the course. We are really excited and industry is really taking notice because this is something that is really necessary out there.” The first introduction to heavy oil and gas program is being taught to 12 applicants. The course includes academic upgrading of math, communication and physics skills needed for entry into the HOOT program for fourth class power engineers. “We have had Aboriginal students in the program before, but sometimes they are not successful whether it’s because they struggle with the academic component or the new environment being at the college,” said Johnston. “Our goal is to set them up to be successful.” Prospective HOOT students, in particular, will be benefit from a life skills course designed to help Aboriginal students adjust to living and learning off reserve. The introduction to heavy oil and gas program also incorporates the fundamentals of oil and gas. The curriculum covers all four parts of a gas process operations certificate course for those who seek employment as a pumper. Ticketed oilfield safety courses are included in the learning material. Students who complete all of the required courses will receive a certificate of completion from Lakeland. “Internally we think this is phenomenal,” said Johnston. “Some of our industry partners are really interested. Cenovus thinks this is a phenomenal initiative. ɸ Page C8

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Strong, relevant programming leading to success ɺ Page C6 “They recognize the importance of the Aboriginal community to the labour force, especially with the crunch oil and gas companies are getting into with power engineers and operators. “The Aboriginal community is going to be really key and integral to moving that forward.” Oil and gas development at Onion Lake is managed by Onion Lake Energy Ltd., a company that holds oil and gas permits on approximately 150,000 acres of band land. Several companies including Black Pearl Resources Inc. and Canadian Natural Resources are actively exploring and producing oil and gas at Onion Lake. Production at Onion Lake was approximately 13,000 barrels of oil per day in 2011 with the potential for 20,000 to 30,000 bpd. Onion Lake also has its own trucking company called Askiy Apoy Hauling

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Ltd., that transports produced water and crude on reserve land in addition to owning Beretta Pipeline Construction Ltd. The introduction to heavy oil and gas is touted as helping Onion Lake Cree gain the confidence and the entry level knowledge they need to find oilfield employment in their own backyard or continue their education by enrolling in the HOOT program. “Aboriginals are a very [important] demographic right now for the petroleum industry,” said Johnston. “They are recognizing that more and more. They recognize we have to be flexible and make them comfortable and recognize their uniqueness and how that fits into the labour force in the industry. “So, for example, we are going to them. We are going to be delivering this on reserve. We are going to take our Lakeland instructors – the students are going to be in their own environment. They can stay at home; transportation is not an issue. “I just think it’s going to be phenomenal. Everybody is watching this course to see how we are going to be success wise and then I think we really have the opportunity to expand.” Lakeland is starting a new two year third class power engineering diploma program this program with blended online learning courses in second class power engineering. The college is also fundraising to start construction on the first $15 million phase of a $32 million power engineering lab and classroom expansion. “Getting Aboriginals involved is another part of our programming,” said Johnston. “Our goal is to strive to meet industry demands and to help them with the labour crisis that is looming before them.” Johnston thinks the on reserve introduction to heavy oil and gas programming shows Lakeland’s commitment to provide Onion Lake with educational and employment opportunities in the oil and gas industry. “I hope it’s showing that Lakeland is really committed to helping them with their post-secondary goals,” she said. “They want to be educated and we want to help them with their education. We want to give them strong, relevant programming that is going to help them be successful.”

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PIPELINE NEWS April 2012

U of S catalyst could fuel economy Santa Barbara, Calif. – Carbon Sciences Inc. hopes to bring a commercially available catalyst to the gas to liquids (GTL) market this year based on a catalyst developed and licensed by the University of Saskatchewan. GTL technology transforms carbon dioxide and methane – both potent greenhouse gases – into synthesis gas (syngas), a basic feedstock for producing gasoline and other fuels. The GTL market is still developing and represents the most significant long-term market opportunity for the California-based company. Carbon Sciences is aiming to develop a catalyst that will lower the cost for small- to medium- size GTL plants that use steam reforming of natural gas to syngas as the first step in the conversion process. By reducing the cost of the steam reforming section, the most cost intensive part of a GTL system, the company intends to significantly reduce the cost of producing gasoline, diesel, jet fuel, and other GTL products from natural gas. “We have the most promising catalyst in the world for natural gas reforming in terms of performance, economics and environmental impact,” said CEO Byron Elton, in a Feb. 21 news update. “We are currently developing this catalyst specifically as a ‘drop-in’ replacement catalyst for use by the existing 2,000 steam reforming plants worldwide. Our goal this year is to prove its commercial viability.” Gas-to-liquids (GTL) technology is based on abundant and inexpensive natural gas. Carbon Sciences says the technology offers the best solution to meet the increasing demand for liquid transportation fuels. The company’s initial plan for 2012 includes

continued catalyst testing and validation, modifying and optimizing the base catalyst, filing additional patents to broaden and strengthen the global patent portfolio, and developing a commercial version (pellets) of the catalyst for steam reforming applications. The second half of the plan involves selecting and signing a partnership agreement with an engineering firm and a catalyst manufacturing company. The company says conversations with prospective partners have been underway for over a year. The Carbon Sciences’ licensing agreement with the U of S Industry Liaison Office signed on Dec. 27, 2010 provided the company with a base catalyst that offers high conversion rates with no significant carbon buildup which means the catalyst remains active over long periods of time. “The unique low-coking characteristic of our catalyst will enable steam reforming plants around the world to operate at a substantially lower steam to methane ratio, resulting in lower operating costs, lower capital costs, lower carbon footprint, and increased production,” said Elton. “We are confident that this year’s successful milestones will position us to begin marketing and selling our catalyst worldwide next year.”

Muskowekwan First Nation vote Sundance Energy Corporation has received the results of the Muskowekwan First Nation mineral rights designation vote that occurred on Feb. 25. The vote was in regards to the designation of mineral rights for the Treaty Land Entitlement and pre-reserve lands, which lands are an addition to the already designated Muskowekwan First Nation Home Reserve. Of the Muskowekwan First Nation members that voted, 80 per cent voted in favour of the designation. Sundance is the beneﬁcial owner of 100 per cent interest in the oil and natural gas rights underlying the Muskowekwan First Nation Home Reserve (approximately 15,500 gross acres) by virtue of Indian Oil and Gas Canada Permit OP3292. As a result of the positive designation vote, Sundance -- by virtue of a joint venture agreement with Muskowekwan Resources Ltd. (the 100 per cent band-owned company of the Muskowekwan First Nation) -- has the right to increase its 100 per cent ownership of mineral rights owned in the Muskowekwan project to a total of 58,300 gross acres.

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PIPELINE NEWS April 2012

House stealers make off with A-Event in Lloyd By Geoff Lee Lloydminster – Team Champion 2 rocked the house of Granite Oilfield Services in the A-Event final at the 45th annual Lloydminster Heavy Crude Open Bonspiel with a steal of four in the third end en route to a 7-0 sweep. Handshakes sealed the deal in the fifth end for the Bonnyville area team with skip Sheldon Ballas promising to attempt a two-peat next year at the Lloydminster Communiplex. “For sure, definitely,” he said. “It was good. It’s been a long time since we come up to Lloyd. “It’s been a pleasure – a lot of good competition. It’s been probably 10 years since we were last here.” Ballas, who works for Canadian Natural Resources, shared the joy of winning with his teammates Richard Smyl, third; Bryce Lorenson, second;

and lead Gerry Croteau who was beside himself with surprise. “I am very surprised we won 7-0. I was pretty optimistic we could beat those guys, but I had heard they were a very good team,” he said. “It was very exciting to win. It’s an annual now.” The steal of four was the turning point and a bummer for perennial ﬁnalist and Granite skip Monte Armstrong who placed second last year after winning the A-Event in 2010. “We struggled right out of the gate,” he said. “We had a chance to tie it 1-1 in the third end. The sweeper thought my shot was good and it came up a foot or two short and we gave them four. The game changed in a hurry.” A total of 72 teams took part in March 14 to 18 bonspiel that also included the ever popular banquet

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Oilman of the year, Norval ChrisƟe, leŌ, joins the oĸcial photo for the A-Event Champion 2 team of Sheldon Ballas, Richard Smyl, Bryce Lorenson and Gerry Croteau.

held at the Lloydminster Stockade Convention Centre. The event marked the return of Don Tarasuik as the master of ceremonies who joked, “I was forcibly detained and ‘drug’ in here in handcuffs. Yes, I am here and ready to go at ’er. Tarasuik got to introduce Oilman of the Year, Norval Christie, who he curled with during the first Lloydminster bonspiel in 1968 with former Oilman of the Year Tom Fisher and Tom McKevitt. “Forty-five years ago we played in the very first oilmen’s bonspiel and we

threw the ﬁrst rock last night and the whole team was here again. That was great,” said Tarasuik. Ted Collins, who sings the national anthem each year at the banquet, also paid tribute to fallen oilmen including the late Howie Cayford who knew how to live it up. “I am sure Howie is looking at us right now and saying ‘have a rye and Coke for us boys, have fun,’” said Collins. A round of applause was also given to celebrity guest Scott Manners, fresh from the Brier as Team Saskatchewan skip. ɸ Page C11

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ScoƩ Manners, who skipped Team Saskatchewan in the 2012 Brier, was introduced at the banquet celebraƟons at the Lloydminster Stockade ConvenƟon Centre on March 16.

ɺ Page C10 Applause was also due to the local youth high school juvenile team of Troy Sazl, Jared Latos, Evan Latos and Brady Kimmel who were preparing for the Saskatchewan finals the following weekend. The young foursome played in the G-event final of the oilmen’s due to special circumstances. They were edged out by a stone or two by Champion 1. Entertainment chairman Dusty Makichuk, who plays second for team Granite Oilfield Services, was also beaming with pride with the introductory mention of his youngest daughter Karli. The 17-year-old skipped her Holy Rosary High School rink from Lloydminster to the Alberta championship title with teammates Sydney Lake, Tannis Steinacher, Kimberley Dunsmore, Macala Bernard.

“They went undefeated through the whole zones and won Alberta gold again in high school competition in Mannville,” said Makichuk “The round-robin was very exciting. The last game of the round-robin was actually one of our toughest games. We had an extra end there. The last two were a lot easier.” Fun was on the mind of skip Joe Holbach, a sales rep for Tuboscope in Lloydminster, minutes before his high noon showdown against the likes of Tarpon Energy in Saturday action on March 17. “It’s a good event to do some networking with our customers at this event and have a good time with the boys. It’s a good function,” he said. “I’ve been curling in this for about 15 years. I missed last year, but I’ve enjoyed it for a long time. I have been in Lloydminster since 1997. Maybe this year we can change our luck.” ɸ Page C12

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PIPELINE NEWS April 2012

Norval Christie introduced as Oilman of the Year ɺ Page C11 Tarpon skip Geoff Regnier, who works as an instrument tech, says his strategy was “just to make our shots I guess – put some pressure on old Joe here and see what he’s got.” Neither team advanced to an event final, but Regnier shared Holbach’s mission to just have fun. “We have played for the last six years. We come out and support the spiel. It’s a good time. It’s a good party for the week,” he said. Tom Bonnah from Trican Well Service in Calgary took a second from his Saturday game against Wizard Well Servicing to explain what brings his crew back year after year. “We have been playing in this tournament for 14 years now. Sometimes we change up the odd player,” he said. “I used to live in this town and I have a lot of close friends here. The camaraderie that they promote here is really good. It’s a fun bonspiel and they treat us really nice up here.” Bonnah’s team was sporting a 2-0 record at that moment, but he wisely cautioned, “That can change at any moment just like any other bonspiel.” The final word went to event chairman John Stanyer who said from his perspective, the event went very smoothly.

“You are always going to get a hitch or two, but they were easy to overcome this year. Everybody had a good time, I think.” Stanyer also handed out the gift certificates that go to each of the eight event winners. The B-Event title was claimed by the GLM Industries rink of Brad Wuitchik, Luc Turcotte, Dave Watt and Calvin Pollard. The C-Event was claimed by the Baker Hughes foursome of Jeff Latos, Bruce Jack, Mervin Stang and Tyson Armstrong. Winning the D-Event was the Platinum 1 squad of Ron McKenzie, Darrel Oracheski, Darryl Greening and Lindsay Holmes. The E-Event crown was reserved for an RBC Investments team of Kirk Brost, Daryl Brost, Dustin Falscheer and Matt Brost. The F-Event title was taken by Bar Stars with Colby Benoit, Michael Welygan, Brianne Wangler and Doug Gilby on board. The G-Event went to the Champion 1 rink of Calvin Smith, Glen Popowich, Mark Warner and Barry Boddy. The final H-Event bracket was topped by CCS with Vince Lisch, Mike Bengfeldt, Derek Yockey and Al Greenwood.

Oilman of the Year, Norval ChrisƟe, is applauded by his partner Linda Wood on his leŌ and by Lloydminster Mayor Jeī Mulligan to his right during the bonspiel banquet.

Al Greenwood from CSS came to the Lloydminster oilmen’s bonspiel dressed for a physical game. All that sweeping and sliding paid oī for Greenwood as CCS won the H-Event Ɵtle.

PIPELINE NEWS April 2012

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Couldn't be happier fully. So we are really thrilled about that,” he said. “Equally, if not more importantly, the results of our recent 3D seismic program on the Red Pheasant heavy oil land are absolutely exceptional. “We had an expectation of seeing a great deal of oil – we saw more than we ever expected.” MacNeill’s excitement follows a successful 15.8 square kilometre 3D seismic across the southern portion of its 100 per cent owned Red Pheasant lands. The purpose was to identify locations for a waterﬂood pilot project in the Sparky formation and map the Lower Manville channel. “It’s two oilﬁelds overlaying each other, both of which have given us 3D seismic that is way better than we expected,” said MacNeill. ɸ Page C14 Eric Lang, general manager of Tempo Drilling Company, has assigned several drilling rigs in the past couple of years to drill wells for Allstar Energy, a wholly own subsidiary of 49 North Resources Inc. in the Kindersley area and on Red Pheasant First NaƟon.

By Geoff Lee Saskatoon – Tom MacNeill, president and CEO of 49 North Resources Inc. in Saskatoon, is over the moon over about his company’s heavy oil prospects on Red Pheasant First Nation lands. MacNeill is also excited about a new five well horizontal drilling program underway in the light oil Viking play near Kindersley being conducted by Allstar Energy Ltd., a wholly owned subsidiary of 49 North. “Our agenda is to continue to drill the Viking – and we have been as much as we can – quickly to expand our Red Pheasant resource because that is an absolute monster of a resource,” said MacNeill during a conference call on March 2. MacNeill began by stating 49 North couldn’t be happier with the results of their drilling activities in the Viking in the Kindersley area with total production topping 500 barrels of oil equivalent per day. “The Viking pool is wide open – we’ve got an awful lot of drilling to do there and we’ve figured out how to do it very economically and very success-

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PIPELINE NEWS April 2012

49 North excited by Red Pheasant seismic ɺ Page C13 “We proved the thesis that the Sparky is essentially everywhere and gets thicker in a lot of places. “We were drilling oﬀ some old industry seismic that was close to a road – that was probably shot back in the 1980s in 2D seismic. So we followed that line and had great success and found a lower Manville channel beneath that.” In a March 1 news release, the company reported the Lower Manville continues to look very prospective in the northern portion of the

seismic program and appears to continue rising and expanding to the north within Red Pheasant lands. “We’ve gone to the north with the seismic program and essentially both of those formations run up it and get thicker which is an oil explorationist’s dream – to get away from the water contact and have thicker intersections or sands that you already know bear oil. In this case, the Sparky is producible,” said MacNeill. “We are absolutely thrilled with them and we are moving on a program to actively exploit that, prob-

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ably with a waterflood and horizontal drilling, or a number of other things that industry is doing. “Sparky is not a new formation. It’s been exploited for 60 years in west central Saskatchewan, so we have a really good handle on how to make that pay dramatically for us.” Heavy oil production on Red Pheasant land is currently ranging from 50 to 75 barrels per day with that number expected to rise substantially if the waterflood program is successful. “The Sparky reacted very well to waterfloods,” said MacNeill. “We have had our oil analyzed and it flows very well with a little bit of water pressure. There is not a lot of

reservoir drive in the Sparky. You have to pump it. “It’s like a McDonald’s milkshake. You have to suck pretty hard to get the oil out. If you have someone pushing it with water, it comes up readily. “All we know is there is an enormous amount of oil in place, and we have already proven that we can economically extract oil out of the Sparky. “If we start putting horizontals and waterﬂoods in there we could be talking big numbers out of each well.” Allstar Energy is drilling ﬁve new horizontal Viking wells in March in the Kindersley area adding to the 17 wells 49 North has on production in the area. ɸ Page C15

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PIPELINE NEWS April 2012 ɺ Page C14 Of the 17 wells, 15 were drilled by Allstar and two by 49 North with many more to come in a phased approach for maximum investor value. “We have a lot of tire kickers kicking around our Viking asset,” said MacNeill in response to an investor question about market value. “One of the reasons I’ve said before, we are drilling slowly, notwithstanding the volatility in the price of oil, is that if you overdrill a ﬁeld, it is harder to sell and you get less value. “We know we’ve got a drilling inventory in our own internal estimates of somewhere 50 and 100 potentials to drill given what Novus (Energy Ltd.) is seeing next door. “They are getting spacing down to 16 wells per section. We’ve got 10 sections in that Viking fair-

way. We believe that’s 160 potential wells with 50 to 100 conservatively. There’s a lot of value in there.” MacNeill says based on the decline rate of their first five Viking wells, production is very profitable. “Of the 500 barrels of oil equivalent per day that we just announced, a lot of that is production that is already paid for, so we are getting free oil because we recouped our capital cost on that. “We view the Viking as a workhorse. We take cash flow and other levers that we put against it and some farm-in which gives us free oil and just drill it. “It gives you money and you get your money back and it gives you free oil for a very long time. “Our engineering report shows us we have 30 years of life on those Viking wells.” 49 North also has an investment share in Rallyemont Energy Inc. that plans to develop a 5,000

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to 10,000 barrel per day SAGD project at Prince, north of the Battlefords. Rallyemont is continuing to assess all options such as internal development, joint venturing, or a sale and has posted investment information in Chinese on its website. “We still don’t have an outcome to that story,” said MacNeill. “It’s a function of capital markets, and I got a note from their chairman that they are in active discussion about the outcome. “At $108 oil, that is one of the most attractive SAGD projects in North America. “We will wait and expect to see some kind of resolution in the ﬁrst half of the year with that provided oil prices don’t plummet for some unforeseen reason.”

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PIPELINE NEWS April 2012

Unity pumped by oil and gas spinoffs Highway 14. and people do see there is opportunity here,” said By Geoff Lee The subdivision has 12 serviced town-owned Baker. Unity – Pack up and move to Unity which is lots and six serviced privately owned lots available A new downtown variety story is set to open located at the intersection of Highways 14 and 21. for future developments. soon and Unity Motor Products Ltd. is planning to A lot of people have been doing that over the renovate its GM dealerpast five years with the ship on the main street. latest census data conLast year, Unity firming an 11.3 per cent sold $4.8 million worth gain in population to of building permits in 2,389 over that period. an off year for major While agriculture industrial and institucontinues to be the tional developments leading industry in the compared to recent area with three inland years when the North terminals, the resurgent West Bio-Energy Ltd. oil and gas sector is wheat ethanol plant making the biggest imand the Parkview Place pact on Unity’s growth seniors’ residence were and prosperity. built. “There has been The next big ticket an increase in drilling item could be the conactivity in the general struction of a new $5.5 area,” said Carey Baker, million outdoor pool director of economic Last year, Unity had 13 new housing starts with most of the new homes built in the Dickson Road subdivision. Carey and a cultural meeting development in Unity. Baker, the director of economic development for Unity, reports the town also oīers aƩracƟve land only tax incenƟves facility with fundraising “From our underfor one to two years for in-Įll construcƟon within town limits being led by the Unity standing, a good perFacilities Committee. centage of the families “We are still looking at some commercial projUnity Credit Union has stepped up to buy the that are moving in to the Unity area during the last naming rights to the pool with area oil and gas several years have been related to the energy sector. ects that are going to occur in our industrial area,” said Baker. companies high on the contact list for other spon“With the oil industry being close to us to the “We are a transportation hub, and there has sorship opportunities. north, south and west, individuals find that this is been interest, and we see that in our new truck tire “We have had some informal discussions and a good central location for them when they are gofacility. over the next several months; we will be having foring about their business in the energy sector,” said “There are other projects related to the energy mal meetings with several companies,” said Baker Baker. sector that we are discussing with companies right who noted culture and recreation are important to The Unity Quick Change Tire and Lube is the individuals when they are choosing to locate. newest oilfield related business in the Moffat Street now. We just can’t talk about the particulars right now. There are a lot of eyes on the town of Unity ɸ Page C17 commercial and industrial subdivision fronting

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Unity has a fundraising target of approximately $5 million for the future construcƟon of a new combined outdoor pool and a cultural/meeƟng facility to accommodate up to 800 people.

ɺ Page C16 “We know that those companies do want to give back to their community and better the areas in which their employees reside.” A new recreation and cultural facility will allow Unity to build its reputation for hosting major events such as the Unity Oilpersons Bonspiel held at the Unity Curling Rink March 1 to 5. “It’s been very successful. It’s been a big event over the past decade,” said Baker. “It brings a lot of energy companies to our community. It provides a networking opportunity for individuals that work for those companies. “It’s a very successful event, and I think all the participants ﬁnd it very valuable both from a personal and a professional standpoint,” he said. When it comes to summer tourism, Unity Western Days to be held this year June 2-3 always draws a crowd with a CCA sanctioned rodeo, parade and barbecue at the local rodeo grounds. The Unity and District Chamber of Commerce also puts on “an exceptional” Canada Day celebration on the July 1 weekend, according to Baker. Summer is also the time to water and admire the ﬂowers in town in preparation for the annual Communities in Bloom competition. Unity prides itself on having won the provincial Communities in Bloom competition in its population class in 1999, 2000 and 2010 and the national championship in 2003. “Not only are we an industrial community, we are also known as a very pretty and tidy community as well as a safe and positive place to live,” said Baker. “Whenever we have been able to bring individuals home and showcase our community and show them our successes, it opens up opportunities

to individuals who really see the beneﬁts of living in our community.” In 2011, Unity sold $9 million of real estate with an average price of just $140,000 for a single family dwelling – with no shortage of aﬀordable accommodation unlike many energy-based communities in the province. “We seem to have a fair equilibrium here. Last year we had 13 housing starts,” said Baker who noted there are 13 serviced lots for sale this year in the Dickson Road subdivision with another subdivision being planned for next year. “Our rental market seems to meet the demand, so we still have the ability to grow without running into a shortage,” said Baker. “When we talk of growth and population growth, it is really likely it will come from the energy sector. “Agriculture is still the base of economic activity in the Unity area. However, when it comes to growth – as much as much as our implement dealerships and a lot of our agricultural service industries have added to our community – farms are getting larger and populations in the rural areas are shrinking.” The list of oil and gas companies in the Unity business directory gets longer every year and that’s

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not likely to change. “From our perspective and from what we’ve learned from the surrounding rural municipalities as well as talking with some of the surrounding oil companies is that future drilling activity to the north, the west and to the south of us is going to increase significantly over the next few years,” said Baker. “We have seen several of the communities around us – what the direct impact of oil and gas has on them in terms of prosperity and growth. “Unity definitely has taken advantage of that as well over the past several years, but we only see that increasing. “A lot of our growth in conjunction with the energy sector has been immigrant families moving into our community in particular our Filipino community which we very much welcome. They have been a great addition to our community,” said Baker. “They are very involved and have filled what has been viewed as a labour shortage in other communities.” “It’s all good news and we want it to continue. We are open to new individuals coming to our community. We are open to new businesses,” he said.

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PIPELINE NEWS April 2012

Welcome Allan Cup Fans! The excitement and passion of hockey in Downtown Lloydminster!

Come downtown to check out our Allan Cup Downtown Decorating Contest

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• Game #1 - 4:00 PM - South East Prairie Thunder or Manitoba Lightning vs Balgonie Bisons or Rosetown Red Wings

• Game #3 - 4:00 PM - Grand Falls - Windsor Champ vs South East Prairie Thunder or Manitoba Lightning

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• Game #4 - 8:00 PM - Lloydminster Border Kings vs PaciÀc Champ (BC/AB)

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• Game #10 - 8:00 PM (Semi-Ànal)

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C20

PIPELINE NEWS April 2012

Mayor sponsor sweeps to glory in Unity Unity – Sheet! Cursing the ice for his extra end loss in the A-Event ﬁnal to R.E. Line Trucking Ltd. wasn’t going to ﬂy for Grant Huber, the skip of the Grant Huber Machining team at the 2012 Unity Oilpersons Bonpiel. Huber was a lead event organizer for the event that was held at the Unity Curling Club March 1-5 who told the press that ice conditions were good and the club had purchased a new ice scraper this season. The outcome he said was simple: “I blew it pretty good. I missed too many shots.” As a runner-up, Huber selected a Dyson handheld vacuum from this year’s prize pool that was steeped with goodies thanks to stronger than usual sponsorships and donations, a fact attributed to a booming oil and gas economy.

Ironically, the R.E. Line Trucking team that beat out Huber’s team in the A-event ﬁnal was also this year’s major event sponsor followed by a lengthy list of platinum, gold, silver and bronze supporting businesses. Helping R.E. Line to get the most bang for its sponsorship buck was lead Aaron Mitzel, second Roy Mock, third Dwaine Kopp and skip Trevor Gerein. The second luckiest guys at the rink were the Heitt’s Welding B-Event champion team of lead Ross Neumeier, second Glen Heitt, Mark Neumeier and skip Brent Heitt. The C-Event champ was the TransGas group with lead Shaun O’Brian, second Curtis Bowker, third Ty Sanders and skip Bryan Blaylock. Taking the D-Event title was the Noralta quar-

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tet of lead Brian Kuhn, 2nd Brent Kraft, third Colin Tuchscherer and skip Alex Vandemeutter. This year, 23 teams took part compared to 22 a year ago, an increase that Huber can’t quite put a ﬁnger on, but he’s pleased about it. “You never know. Sometimes it works better one weekend than another,” he mused. “It could be people know it’s a good time so they want to come and they tell their friends.” Huber said the odd number of entries this year didn’t pose any organizing problems with more teams being the merrier. “You just have to play around with the draw a little bit. It’s not too hard. The most we ever had was 32 teams,” he said. “It went really well this year. It was a good turnout and everyone had a good time.” All teams play at least four games with their $280 entry fee and that included the perennially popular banquet and dance that attracted 146 people for this year’s party at the curling club. Proceeds from the bonspiel are plowed back into the curling club which purchased a new ice scraper and a new set of rocks at the start of season. “Our old ones – the striking bands where the rock hits were getting worn out,” said Huber. “It would have cost $12,000 to get them repaired, but then they would have been light. We opted to get new rocks made and they took our old ones on trade.”

R.E. Line Trucking was this year’s major corporate sponsor of the Unity Oilpersons Bonspiel that Įelded a team that won the coveted A-Event championship. (L-R) are lead Aaron Mitzel, second Roy Mock, third Dwaine Kopp and skip Trevor Gerein with bonspiel organizer Grant Huber looking on. Photos submiƩed

Meet the HeiƩ ’s Welding B-Event champs: (L-R) are lead Ross Neumeier, second Glen HeiƩ, third Mark Neumeier and Aaron Mitzel from R.E. Line Trucking, the major bonspiel sponsor. Missing from photo is skip Brent HeiƩ.

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The C-Event TransGas Ɵtle was a team eīort by (L-R) lead Shaun O’Brian, second CurƟs Bowker, third Ty Sanders and skip Bryan Blaylock accepƟng congratulaƟons from Aaron Mitzel from R.E. Line Trucking, the major bonspiel sponsor.

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PIPELINE NEWS April 2012

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Production up at the Kerrobert THAI project Kerrobert – Petrobakken Energy Ltd. reports heavy oil production increases from its toe to heel air injection or THAI demonstration project at Kerrobert to approximately 155 barrels per day in the ﬁrst two months of 2012. Fourth quarter production, by comparison, rose from 30 bpd to 41 bpd in keeping with the company’s plans to boost production at Kerrobert and bring the project to a commercial stage. Petrobakken has a capital expen-

diture budget of approximately $10 million in 2012 at Kerrobert. In a heavy oil operations update on March 8, Petrobakken stated it recently began to see upgraded THAI oil, with typical API gravity in the 13 degree range compared to native oil with 10 degree API. “We disclosed that our operational plan at Kerrobert was to continue to optimize air injection rates in order to gradually build out the combustion front, increase the overall pressure in the reservoir and to increase sustained

production of upgraded THAI oil,” said the company. “We are managing operations based on this plan and continue to optimize the THAI process in a consistent and patient operating manner to progressively increase THAI production.” The company also adjusted its proved plus probable (2P) reserves at Kerrobert to 3.6 million barrels of oil in a reserves evaluation by McDaniel and Associates Consultants Ltd. at the end of 2011.

Proved plus probable, plus possible (3P) reserves are unchanged at Kerrobert at 8.5 million barrels. Petrobakken is also sticking with its plan to defer further work on its Dawson heavy oil project in Alberta until the second quarter of 2012. The company will reassess development plans after spring breakup. The company has also drilled three stratigraphic wells at our Plover heavy oil property in Alberta in 2012 and continues to develop plans to further evaluate and develop this asset.

Aboriginals targeted for oilÀeld training Calgary – Human Resources and Skills Development Canada has approved funding for a three-year pilot project in Saskatchewan aimed at training Aboriginals for jobs in the oil and gas industry. The Petroleum Human Resources Council of Canada is partnering with the Federation of Saskatchewan Indian Nations, Battlefords Agency Tribal Chiefs and File Hills Qu’Appelle Tribal Council to address petroleum labour force needs and opportunities for Aboriginals in the oil and gas sector. According to the Saskatchewan Bureau of Statistics, the January unemployment rate for aboriginal people was about 16 per cent, compared to about ﬁve per cent for the province as a whole. The council will work with industry companies to ﬁrst determine the petroleum labour force needs and occupational and skill requirements for immediate and future employment opportunities utilizing a demand driven approach.

Jobs in the oilfield are more plentiful this year as the provincial SaskJobs. ca website listed 13,740 total postings by employers in 306 communities in February – a year over year increase of 42 per cent. There were more than 1,050 postings in the oil, gas, mining and farming category in February. Partner organizations in the pilot program will work to recruit, register and provide screening, pre-employment training, skill training and upgrading to qualified Aboriginals in the two pilot locations in southeast and northwest Saskatchewan. Employment referral and job retention services will be offered to bring together industry companies and the ready and skilled labour supply. The Council is now preparing to engage industry companies interested in participating in this project and gaining access to this workforce opportunity in Saskatchewan.

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PIPELINE NEWS April 2012

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Tuscany starts development Tuscany Energy Ltd. announced that the first well drilled in the three-well horizontal Dina heavy oil well development program at Macklin, Saskatchewan, began production on March 8, 2012. The well was producing at a rate of 110 bpd. Success of this key well has significantly expanded the Macklin Dina oil pool, based on its geological and geophysical interpretation, Tuscany said. The well was drilled immediately to the north of the four currently producing Macklin oil wells, testing a section of mineral rights acquired by Tuscany in late 2011. The second well in the program has been drilled and cased and is awaiting the third well to finish being drilled prior to completion. The third well began drilling on March 11. The last two wells in the program are expected to be on production by March 23. Tuscany has a 55 per cent working interest in the Macklin project and is the operator. The remaining 45 per cent working interest in Macklin is held by Diaz Resources Ltd.

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C24

PIPELINE NEWS April 2012

Novus to drill 73 wells at Dodsland

Novus Energy is focusing its enƟre $81 million 2012 capital expenditure program on development drilling for light oil in the Dodsland Saskatchewan area. The company completed the construcƟon of a sales gas line and emulsion line from its Whiteside facility to the meter staƟon in the fourth quarter of 2011. Photo submiƩed.

Calgary, Alta. – Novus Energy Inc. is allocating its entire 2012 capital expenditure budget of $81 million on light oil development drilling in the Dodsland area of southwestern Saskatchewan. The budget will incorporate the drilling of 73 wells, all of which will be horizontal multi stage frac wells targeting Viking oil. In addition to drilling, Novus is planning to fund the development of facilities, pipelines and battery expansions in the Dodsland area. The company forecasts a 2012 exit production rate of 4,500 boepd with 85 per cent of the total in oil and liquids. Novus began the year with a light oil inventory of more than 600 net locations which represents more than eight years of development potential. ɸ Page C25

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PIPELINE NEWS April 2012 ɺ Page C24 The company believes that the development of the Viking resource is in its early stages and that there is further significant upside to recovery factors by applying secondary recovery methods. Further potential production can be achieved by the ability to space as many as 16 wells per section and the potential to water flood the reservoir. Novus kicked off its 2012 drill program at Dodsland on Feb. 1 with the momentum of increased production and reserves credited to its 2011 capital program. Average production in 2011 was an estimated 1,971 boepd, a 77 per cent increase from 2010. The company’s proved reserves increased by 83 per cent to 8.84 million barrels of oil equivalent at Dec. 31 compared to 4.83 million boepd in 2010 according to an evaluation by Sproule Associates Limited. Novus’ proved plus probable (2P) reserves also increased by 58 per cent to 14.56 million boepd in 2011, up from the 9.24 million boepd estimated in 2010. The 2011 capital program in the Dodsland area resulted in a 72 per cent increase in 2P reserves for that area. In fact, the Dodsland area accounts for 13.3 million boepd of 2P reserves or 91 per cent of the company’s total 2P reserve volumes. Novus achieved a 100 per cent success rate on its Dodsland area Viking oil drilling campaign in 2011 with 52 wells drilled – all using horizontal multi stage frac technology. The company also drilled 16 wells on its Flaxcombe lands in the Dodsland area in 2011 with 90 day average production rates, excluding associated gas production volumes, of 64 bpd. Novus controls 119 net sections of Viking rights, with an inventory of 610 net, undrilled Viking oil locations based on eight wells per section spacing and the development of only one of the two distinct cycles to date on its Flaxcombe lands. No capital spending has been budgeted for acquisitions in 2012 although Novus continues to evaluate new opportunities within and similar to its existing core area. The Calgary-based company stated it plans to continue to actively drill its existing land base, and will remain focused on expanding its presence within the Dodsland area. Novus has also focused on continually lowering its drilling and completion costs, employing new completion techniques to improve the economic performance of its wells, and building the necessary area infrastructure to support stable, low operating cost production.

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Novus’ operating costs have continued to decrease from $18.20/boepd in the first quarter of 2011 to an estimated $12.88/boepd in the fourth quarter of 2011 Upgrades at Novus’ owned and operated facilities at Whiteside and Avon Hills were completed in the fourth quarter of 2011 which increased fluid handling capacities at each facility. An exclusive agreement was signed with a third party to take the company’s wet solution gas in Whiteside and will significantly reduce operating costs. Construction of a sales gas line and emulsion line from the Whiteside facility to the meter station was also completed in the fourth quarter of 2011. Novus is currently running an emulsion line from its core facility at Whiteside to the Flaxcombe field and a total of 22 wells in the southern portion of the area will be tied in and have their gas production conserved. This line will be used to tie-in all new wells drilled in the Flaxcombe area throughout 2012 and will serve to reduce downtime and reduce future operating costs.

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PIPELINE NEWS April 2012

Open sign plugged in at Unity truck shop Unity – Dwayne Flasch, the manager of the new Unity Quick Change Tire and Lube, feared he might be shocked by a flood of customers if he plugged in the neon open sign too early. Construction of the 10,600 sq.-ft. shop was completed at the end of January when Flasch and a group of investment partners opened the doors by word of mouth. “Once we fire up the open sign we might be overwhelmed,” he joked during a March 13 interview. “I was thinking of the end of the week if not the beginning of next. We are getting too many people asking when we are going to be officially open. We’d better do it sooner than later. “We’ve got inventory coming in daily and we don’t want to be caught with our pants down.” During a callback two days later, Flasch noted that plugging in the open sign was on his to do list that very day. “I was going to do it yesterday, but we were too damn busy. Today is the day,” he joked. Flasch and his main business partner, Conrad Swenson, had little doubt the new facility would be a hit servicing the agricultural and oilfield truck and tire market. Both men have insider knowledge of oilfield activity as the former principle owners of the Caltech Surveys Ltd. in Unity. Swenson currently owns Swenson Oilfield Surveys Ltd., while Flasch is Unity Quick Change Tire and Lube oĸcially opened for business on March 15, the day manager Dwayne Flasch plugged in the neon open sign. The business is targeƟng drive the owner of a cattle ranch just west of Unity and knows how to operate and through agricultural and oilĮeld truck Ɵre and lube servicing. Photos by Geoī Lee service large vehicles. A couple of their other partners in Unity Quick Change haul oil in the patch. The ownership group includes Flasch’s brothers, one who works in reclamation for Husky Energy in Lloydminster and another who owns Dash Tools in Lloydminster. If you have a specific problem on an application, we’ll help you design & develop novel production optimization equipment. “We have a group of us that came together to build the shop and develop the land,” said Flasch. “Everybody kind of has their own area of exWe offer 6 different models each with unique characteristics that pertise. It went really well with our business plan. will suit any specific PCP application. “There was no place in Unity to wheel a truck FEATURING PREMIUM SINGLE SET TORQUE ANCHOR in to change a tire without playing in the mud, or “THERE’S ANOTHER OPTION” the gravel so we did ‘er,” said Flasch who is excited Run In 1. Has been designed for applications where running a coil tubing string Anchor block (red) is protected by the Drag about managing the business. block (blue) while running the tool downhole past the torque anchor is required. “It’s overwhelming at times, but I think give it 2. The anchor block has a double tooth carbide insert protecting the casing a month or two down the road, we will be glad we from damage caused by vibrations induced by the pump. did ’er. 3. The unique design incorporates a drag block that protects the anchor “We are targeting the ag and the oilpatch stuff block until the torque anchor is ready to be set. This feature allows for – the service rig-end supplies and fittings for the multiple runs without the need for repairs. Set Position trucker end of things – piping, valves, cam locks 4. Available for all casing sizes with a variety of connection sizes and types. Anchor block (red) extends past the 5. Available also for PC Insert Pumps. – anything kind of truck related including daily Drag block (blue) to engage the casing supplies on the service rigs.” Check out our website for our other 5 models of Torque Anchors Unity Quick Change will also sell or stock Centralized Multi Set Torque Anchor • Multi Set Torque Anchor industrial hosing, heavy pressure gauges and the Simple Set Torque Anchor • Cam Set Torque Anchor • Insert PC Pump Torque Anchor rubbers and seals for them in addition to “day to day stuff guys are coming in and looking for” such Torque Anchors | Gas Separators | Horizontal Intake Sub | Tubing Swivels as coveralls. Tubing Centralizer | Fike Drain | Tubing Shear Joint | C-1 Tubing Anchors “Tires would probably be our main line,” said Flasch who noted the partners scored an initial Packers, Downhole Tools, Flow Control, Coating, Others business coup with the JayDee AgTech, the local #8, 10672 – 46th Street S.E. Lloydminster, Alberta, Canada John Deere dealership who sold them their tire Calgary, Alberta, Canada Phone: (780) 875-3050 Fax: (780) 875-3002 business. Phone: (403) 723-3008 luistorres@premiumals.com ɸ Page C27 Cell: (780) 522-8296

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PIPELINE NEWS April 2012 ɺ Page C26 “We were looking for a use for this property and we negotiated a deal between us, so we took over their tire end which is good to have some existing clientele and maybe be able to offer more services and better services for them,” he said. As a former oilfield surveyor in a farm-based community, Flasch know how small talk can win over customers. “Farming has been pretty good here the last few years. When it rains, it’s good for everybody. We are hoping it’s going to be another good one coming up,” he said. Unity Quick Change is all about speedy tire changes, lube jobs and light mechanical repairs from farm and oilfield pickups to heavy duty semi tractors that can fit into the bays. “We can do oil changes and we’ve got some big lifts here,” said Flasch. “We have a 30,000-pound hoist for body jobs and semi tractor units, and an 18,000-pound lift for wheel alignments and small mechanical stuff. “We are not going to get into the heavy duty stuff too much at this point.” Unity Quick Change currently has six employees included a journeyperson mechanic but that number will soon rise to eight or nine employees with March and April prompting seasonal tire changeovers. “We haven’t had much of a winter for snow tires. Some people never even put them on. We weren’t ready to put them on, but we are ready to take them off,” said Flasch. Flasch said oilfield activity around Unity has been good and the town is growing as a result which bodes well for Unity Quick Change. “We were in the survey business for awhile and that treated us well, and we can just see it growing here so hopefully they need tires,” he said about the oil and gas sector. Flasch said he and Swenson simply choose to sell their stake in Caltech because “it was time” to do so. “The oilpatch is pretty demanding. We are hoping this would alleviate a little more time,” he said adding Conrad is about 10 years older than him and wanted to slow down a bit. “The price was up so that’s when we decided to get out.”Flasch said he spent the last few years

C27

Unity Quick Change Tire and Lube is owned by a group of investors with oilĮeld and agricultural backgrounds and is managed by Dwayne Flasch.

doing a little farming and a little surveying in the Bahamas but he stays in touch with employees at Caltech, that does surveys for oilﬁeld leases, pipelines and battery sites. “I looked after the ﬁeld crews and Conrad looked after the paper, so we had a pretty good working relationship there, and we are still together doing this,” he said about Unity Quick Change. “We keep in touch with those guys. They are busy if not busier than when we were there. It’s good for them. They are still growing too,” Flasch said.

CALL FOR PRESENTATIONS 2012 Heavy Oil Technical Symposium September 12th & 13th, 2012 Prairie Room – Exhibition Grounds Lloydminster, SK The Society of Petroleum Engineers – Lloydminster Section invites you to submit a brief biography and abstract for consideration for our 19th Annual Heavy Oil Technical Symposium. This year our symposium is in conjunction with the Lloydminster Heavy Oil Show. This year topics include but are not limited to: Heavy Oil Innovation, Field Research or Pilot Studies, Production Improvement, Heavy Oil Production and/or Treating, Operational EfÀciency, Heavy Oil Case Studies If you are interested please contact an SPE Symposium member listed below. The deadline for biographies and abstracts is May 31, 2012. No formal Papers from the Symposium will be published, although copies of the presentations may be handed out (unless otherwise requested).

The SPE – Lloydminster Section would like to thank our sponsors for making this event possible Alberta Innovates – Technology Futures Baker Hughes Bar Engineering CE Franklin Europump Flint Energy Services Ltd. Grit Industries Inc. Halliburton Hunting Hurricane Industries Ltd. Kelro Pump & Mechanical Ltd. Kenilworth Combustion KHI Kudu Industries Inc.

Logan Completions Systems Mike’s OilÀeld Services Ltd. Noralta Technologies OilÁow Solutions Pro-Rod R&M Energy Systems Schlumberger Sure Flow Consulting & OilÀeld Services Trican Tryton Tool Services Ltd. Volant Products Inc. Wavefront Weatherford

Society of Petroleum Engineers – Lloydminster Section Symposium Executive

Dwayne Flasch says he and his group of partners took over the Ɵre business from the local John Deere dealership to kick start their new business with established farming clientele.

Mark Bacon Symposium Chairman (403) 589-1298 mark.bacon@ champ-tech.com

Adam StaÀevsky Vice Chairman (780) 825-1282 adam.staÀevsky@ huskyenergy.com

Shauna Watson General Inquiries (780) 808-4580 shauna.watson@ ca.weatherford.com

C28

PIPELINE NEWS April 2012

HGTVâ&#x20AC;&#x2122;s Bauemler to stoke career expo students Lloydminster â&#x20AC;&#x201C; Bryan Baeumler, a celebrity contractor on HGTV, will share his experiences as a tradesman with youth at the 2012 Bi-Provincial Try-ATrade Career Expo at the Lloydminster Exhibition Grounds May 1-2. More than 1,400 Grades 9 to 12 students from surrounding school in Saskatchewan and Alberta are expected to take part in trade demos and learn how to start a career in 51 designated trades. Bauemler has been invited by the Lloydminster Construction Association (LCA) to be the guest speaker at the opening night career fair supper that will be open to the public on May 1 from 6 p.m. to 8 p.m. He will be introduced as a host contractor on several HGTV shows, including Disaster DIY, House of Bryan and Leave It to Bryan that began airing in January. Bauemler is also a judge on the HGTV show Canadaâ&#x20AC;&#x2122;s Handyman Challenge along with Mike Holmes and Scott McGillivray. â&#x20AC;&#x153;Because the Try- A-Trade Expo is so successful, we are trying to draw more people into the career fair,â&#x20AC;? said LCA executive director Dorothy Carson about the decision to invite Bauemler. â&#x20AC;&#x153;The reason we got him is because he is a tradesperson, and maybe the kids would look up to him. Once you get into the trades, there are other options; You can take it to a higher level or you can be a business owner.â&#x20AC;?

Doug Cleghorn, foreman of Universal Industries tank shop, spoke with students about welding careers during the 2011 Bi-Provincial Try-A-Trade Career Expo in Lloydminster.

Bauemlerâ&#x20AC;&#x2122;s biography reveals he spent his childhood summers building his familyâ&#x20AC;&#x2122;s cottage in Ontario from the ground up. His entrepreneurial spirit emerged at the age of 14 when he opened his own handyman business doing odd jobs for neighbours. Today, Bauemler is the owner and operator of Baeumler Quality Construction. â&#x20AC;&#x153;Heâ&#x20AC;&#x2122;s going to do a meet and greet supper open to the public,â&#x20AC;? said Carson. â&#x20AC;&#x153;He will be signing autographs and walking around the career fair at the Lloydminster Exhibition Grounds. â&#x20AC;&#x153;We are going to advertise it quite a bit more, and make it more known to the public that that is a two-day career fair.â&#x20AC;? Booking Bauemler as a guest speaker ďŹ ts with the focus of the two-day event to promote careers in the trades with thousands of job openings for skilled workers in Western Canada including the oil and gas industry. â&#x20AC;&#x153;The unemployment rate in this area is 2.8 per cent which makes it very diďŹ&#x192;cult to ďŹ nd skilled workers,â&#x20AC;? said Carson. â&#x20AC;&#x153;We need to be looking at our youth to ďŹ ll some of these positions.â&#x20AC;? The Canadian Construction Association projects the countryâ&#x20AC;&#x2122;s construction industry will experience a shortfall of 325,000 workers by 2019. At the same time, demand for construction services in Canada is expected to continue increasing throughout the decade. The Try-A-Trade event gives area companies a chance to promote their industry and provide information to youth to help them choose a career in the trades. É¸ Page C29

One Call Will Supply It All

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PIPELINE NEWS April 2012 ɺ Page C28 Saskatchewan students will be bused in from as far east as Wilkie and Luseland and from Loon Lake in the north. In Alberta, the Buﬀalo Trails Public Schools Division sends students from places as far west as Irma and south from Provost in addition to public and Catholic schools in Lloydminster. “We are just trying to show them another option that they might not be hearing about or something they have not thought about,” said Carson. “They can talk to some of the colleges so they can know about the schooling and then talk to the employers.” Representatives from Lakeland College, SIAST and Portage College will provide students with information on available trades programs and academic entrance requirements. Companies and trade associations representing the automotive, building, electrical, industrial metal, piping and service industries are invited to set up exhibits and interactive trades’ areas for students. “The employers can give them information about what they do in a day – wages – just more information students can take back with them and think about as a career opportunity,” said Carson., “A lot of the exhibitors are looking at the students as a source of potential workers and for summer help. Last year, a couple of companies did hire for summer work.” Carson said the shortage of skilled tradespersons in Western Canada ironically makes it tougher to book trades’ related companies for the event. “It’s getting harder on our part because the trades are getting busier,” she

explained. “We are trying to promote how important this is for them to take the time to promote trades to local youth. “Right now, we are promoting to the trades – the more the merrier. We do have a lot of kids and we are appealing to the exhibitors to help us out and promote the trades to the students.”

Labour Shortage? Let us help! Saskatchewan is currently experiencing a Labour Shortage which is making history. Synergy Human Resources would like to help you ﬁll your open positions needed to run your business successfully. • • • • •

14 years of Human Resources Experience Recruited skilled trades from overseas with LMO Recruited for all levels of positions Provide full candidate screening Recruited for 3 years in Alberta during peak labour shortage time • Provide a full range of Human Resources Services

SYNERGY HUMAN RESOURCES URCES INC..

A non-destructive testing company in Estevan Saskatchewan & Virden, Manitoba X-ray, Gamma Ray, (pipeline crawlers), Ultrasonic (shear wave and corrosion surveys) Magnetic Particle, Liquid Penetrant, Hardness Testing, API 510 and CWB Inspection. All areas | 1.800.442.8721 Virden | Phone or Fax: 204.855.3129 | Cell: 306.741.7265 Estevan | Phone: 306.421.3810

Brooks , AB | 403.362.5757 North Battleford | 306.446.0242 Shaunavon, SK |306.294.7077

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A Full Range Of Recruiting & Human Resources Services

Dianne McPhaill 306.421.4663 info@synergyhr.ca www.synergyhr.ca

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PIPELINE NEWS April 2012

New industry job board CAREER goes online Cheryl Knight with the Petroleum Human Resources Council of Canada says a new job board added to the organizaƟon’s Careers in Oil and Gas website will help connect job seekers with employers in the energy sector. Photo submiƩed

Calgary – Job seekers and job providers in the oil and gas industry can meet their match at a new online job board developed by the Petroleum Human Resources Council of Canada. PHRC added the new industry job board to its Careers in Oil and Gas website (careersinoilandgas.com) to connect companies in the oil and gas industry with available labour. Monthly traffic to the PRHC Careers in Oil and Gas website set up in 2007 has soared to 17,000 from 6,000 visits in the past year. According to the PRHC’s recent labour market information projections, up to 130,000 new workers will be needed to meet hiring needs anticipated across all oil and gas sectors, due to retirement and expansion demand. “The industry is already experiencing difficulties finding workers – and this challenge will continue to grow over the next decade,” said Cheryl Knight, CEO and executive director for the PHRC. “The new PHRC job board is funded by the government of Alberta and will feature the latest petroleum industry job openings across Canada. The need for the industry job board is in keeping with the latest economic and census data showing the four western provinces are generating most of the growth in Canada. Alberta is expected to lead all provinces both in

2012 and 2013, with economic growth forecast to be 3.3 per cent this year and four per cent next year, according to a new report by the Conference Board of Canada. By 2013, Alberta’s unemployment rate is expected to be down to 4.5 per cent. Saskatchewan is already experiencing tight labour markets and its unemployment rate in 2013 is forecast to match that of Alberta. After a gain of 5.2 per cent last year, Saskatchewan’s real GDP growth will ease to 2.6 per cent in 2012 and accelerate to 3.5 per cent next year. Mining and manufacturing are among the province’s strongest sectors this year. Manitoba and British Columbia will also experience solid GDP growth rates of 2.7 and 2.1 per cent respectively in 2012 rising to 2.7 and 3.6 per cent in 2013. Knight said the new PHRC job board will help employers in Western Canada address their labour force challenges and meet their recruitment needs in a competitive labour market. “Both employers and job seekers will beneﬁt from the job board,” said Knight. “Employers will have access to thousands of job seekers interested in Canada’s oil and gas job opportunities. “Meanwhile, job seekers are connected to the best career opportunities through our job board. They can sign up for job seeker e-mail alerts and we will actively reach out to them through social media.” PHRC is also seeking sponsorship packages for the job board and is oﬀering options ranging from a featured employer page to display advertising for prime exposure on Careers in Oil and Gas.

Gu×de

YARD PERSON Wanted for full time position. Knowledge of building materials and experience in a lumber yard would be an asset. Wood Country is a fast paced progressive company requiring a responsible individual. We offer competitive pay with beneÀts and a positive team environment. The successful candidate will be positive, organized and detail oriented. Interested individuals can fax or email resumes to Brian at:

WOOD COUNTRY ESTEVAN

Fax: (306) 634-8441 Email: brianwoodcountry.estevan@sasktel.net We would like to thank all candidates in advance.

RIG HANDS WANTED! New locally owned and operated drilling company is currently seeking experienced individuals to Àll all positions on Rig #1. If you are interested in joining an employee driven, growth oriented company, contact Dayle for more information:

1-306-861-5171 or e-mail:

chuckry@sasktel.net

Employment Opportunity

Is presently accepting applications for Tubing Inspector in Estevan, Sask. Salary will commensurate experience. Applicants will be requested to provide a copy of their driving abstract as well as a criminal record check from their local police service or RCMP Detachment. Applicants must possess nothing less than a Grade 12 education. Consideration will be given to those who have oilÀeld experience, as well as current H2S, WHMIS, and First Aid CertiÀcation. Applicants are requested to forward resumes to: CJ-CSM Inspection 172E, 37428 Range Road 273 Red Deer County, AB T4E 0A1 They may also be faxed to 1-403-347-1774 or emailed to rdavis@cj-csminspection.ca *No Phone Inquiries Please

PIPELINE NEWS April 2012

KUDU Industries is a recognized leader in oilwell Progressing Cavity Pump systems and Lean manufacturing. With ofÀces located in Canada, USA, Russia, Romania, Kazakhstan, South America and Australia; KUDU likes to be where the action is. Over 300 employees provide a global distribution network to our clients. KUDU Industries received the Alberta Export Award for Oil and Gas Manufacturer 2009, Calgary’s Best Manufacturing Employer 2008 and has been in Canada’s Top 50 Best Managed Private Companies. KUDU currently has job openings for Pump Technician’s in our Kindersley, Macklin and Slave Lake, Alberta locations. This position will report to the Store Manager. This position does require travel and some on call work on weekends and evenings. Key Responsibilities • Delivering and testing pumps • Prepare orders as needed • Maintaining shop inventory • Responsible for shop cleanliness • Repairing tools • Ensure compliance with KUDU’s Health and Safety policies as well ensure that safe work practices are used • Ability to work with a team or independently with minimal supervision • Ability to work overtime as required • Travel to customer Àeld locations Minimum Requirements • Mechanical ability • Field experience in the oil and gas industry would be an asset • Knowledge of artiÀcial lift, drilling and production operations would be an asset • Class 5 operator’s license Desired Skills • Computer skills • Professional with solid communication and customer service skills • Lean Manufacturing skills would be an asset • Demonstrate an initiative to develop and learn new skills KUDU Industries is an equal opportunity employer. Interested applicants should apply on http://www.kudupump.com/en/careers. Only candidates selected for an interview will be contacted.

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CAREER Gu×de System Technician SE Saskatchewan Area Are you looking for a new and exciting career opportunity with a rapidly growing oil Àeld services company? Consider leveraging your experience in the oil industry with PumpWell Solutions, a company that provides high technology products and services to the oil and gas industry that helps oil producers achieve better production with reduced cost and downtime. Due to continued growth we are recruiting for a System Technician. System Technician - Oil and Gas Industry This SE Saskatchewan area based position reports to the Calgary based Field Services Manager and also interacts with the Sales and Optimization Engineering groups. This new position will be responsible for providing a local regional service presence to support our growing customer base in the Williston Basin. This individual will Àeld install, commission and service PumpWell Solutions equipment. A secondary role will be to maintain existing customer relationships through local product support and training while seeking to develop new customer relationships. The selected candidate will be provided training in key areas of position responsibilities. QualiÀed applicants with Journeyman Electrician Red Seal CertiÀcation are invited to apply in conÀdence by emailing their resume to HR@pumpwell.ca. A detailed job description is provided on our web www.pumpwell.ca for reference. While we thank all candidates for their interest, only those candidates selected for an interview will be contacted.

Suite 10, 2150 - 29th St. NE Calgary, Alberta T1Y 7G4 Phone: 403.663.9744 • www.pumpwell.ca

C32

PIPELINE NEWS April 2012

CAREER Gu×de NOW HIRING

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 A:

PARTS PERSON for a full time position at our Estevan location. Experience preferred but willing to train.

GE Oil & Gas Artiﬁcial Lift is currently seeking a Sr. Electrician or Instrument Tech For ESP Field Service

• Mechanic Send resumes to: spartantrucking@sasktel.net or fax to 306.453.4495 Possible Accommodations Available 27-tfn Spartan Trucking Inc. - Carlyle, SK 306.453.4494

Successful incumbent will be focal point for customer service and provide the supervision necessary to inspect, diagnose and repair field equipment. Candidate will perform specialized electrical/mechanical work on ESP/ VSD applications. Basic computer skills needed and ability to manage priorities and complete projects with minimum instruction. Travel is required - must have Class 5 Drivers Licence and clean abstract, be capable of routine lifting and working in outdoor elements. Persons with electrical/electronic experience would do well in this position. Basic computer skills needed and ability to manage priorities and complete projects with minimum instruction. Oilfield experience a plus! We offer a generous compensation and benefits package including medical, dental, vision, RRSP/Pension and tuition reimbursement!

Submit resume to: jody.hennessey@ge.com

Hiring Safety Manager and all positions for our Fracturing Crew for the new flagship base in Carlyle To apply, please send a resume to: careers@element-technical.com

Trican offers a dynamic work environment and benefit package. Please apply in person 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

Part Time OfÀce Position • Located about 10 miles out of Lloydminster. • Experience in Quickbooks an asset, however, willing to train. • Duties include payroll, data entry & Miscellaneous ofÀce duties.

Hydrovac Operators and Swampers • Offering excellent wages • Excellent beneÀt package available • Willing to train if necessary • Safety tickets an asset • Operators must possess class 3A driver’s license • Living accommodation available

For more information call: Trevor at: 306-483-7777 or Kim at: 306-483-7722 Email resumes to: extremeexcavating@hotmail.com or fax to: 306-483-2082

OilÀeld Labourers Required To assist with oilÀeld tubular inspection in plant and on location. Applicants must possess a valid class 5 drivers licence. OilÀeld experience preferred but not necessary. Training will be provided to successful applicants. Please mail, email, fax or drop off resume to:

341 Imperial Avenue Estevan, Saskatchewan S4A 2H8 Fax: 306-634-2606 Contact Angela Clements Email: estevan@guardianoil.com No phone calls please.

Please send resume to: Box 45 Lloydminster SK, S9V 0X9 or Fax: (780) 846-0005 Email: jobresumes@hotmail.ca

D&D

OILFIELD RENTALS D&D Oilfield Rentals is an oilfield equipment and tool rental company operating out of Alberta and Saskatchewan. D&D offers an array of equipment and services derived from customers and industry requirements. D&D is currently looking for a Pump Runner/Truck Driver out of Weyburn, SK. This position safely participates in all transportation and other operations of the company, including, but not limited to: .eeping a daily drivers log /oading/unloading equipment 3ick up and deliver supplies as needed Daily maintenance greasing, checking, topping fluid levels) Assist in repairs, fueling up, and more. The successful candidate will possess the following: Ability to provide e[cellent customer service Deadline driven with good time management skills Ability to be ´on callµ, work weekends or overtime, when required years related e[perience +igh School diploma or equivalent A clean driver·s abstract and valid driver·s license &lass ) D&D offers competitive wages, a comprehensive benefits package effective on your first day of work, and an RRSP contribution program.

Search jobs and submit your resume Online at: http://savanna.appone.com Email to: savannacareers@savannaenergy.com

PIPELINE NEWS April 2012

JOURNEYMAN WELDER Experience in mig, tig and air arc welding preferred. Some of the many benefits to consider when applying for a position at Bert Baxter Transport in Estevan: â&#x20AC;˘ Full time, permanent employment â&#x20AC;˘ Full benefits packages available â&#x20AC;˘ Clean, safe work environment Interested applicants can fax to: 306-634-4258 or email: brenda.jensen@bbaxtertransport.ca

C33

PLATINUM Now Hiring

Picker ker Operators, Operators Swampers Swamp & Shop Mechanics for Lloydminster, Provost, Drayton Valley and Kindersley

Regional Service Representative SE Saskatchewan Area Are you looking for a new and exciting career opportunity with a rapidly growing oil Ă&#x20AC;eld services company? Consider leveraging your experience in the oil industry with PumpWell Solutions, a company that provides high technology products and services to the oil and gas industry that helps oil producers achieve better production with reduced cost and downtime. Due to continued growth we are recruiting for a Regional Service Representative The responsibilities for this new SE Saskatchewan area based position include developing and maintaining a local regional service presence to support our growing customer base in the Williston Basin. In this fast paced and dynamic role, you will support existing customers as well as assist in developing new sales. Your duties will include coordinating Ă&#x20AC;eld installations with local service providers and ensuring maintenance activities are completed in a timely manner. You will also build and maintain customer relationships through product support and training. The ideal candidate will be highly motivated and well organized, with previous â&#x20AC;&#x153;hands onâ&#x20AC;? oil Ă&#x20AC;eld production operations experience and is comfortable working independently. A strong focus on customer satisfaction is essential. The selected candidate will be provided training in key areas of position responsibilities. QualiĂ&#x20AC;ed applicants are invited to apply in conĂ&#x20AC;dence by emailing their resume to HR@pumpwell.ca. A detailed job description is provided on our web site www.pumpwell.ca for reference. While we thank all candidates for their interest, only those candidates selected for an interview will be contacted.

Suite 10, 2150 - 29th St. NE Calgary, Alberta T1Y 7G4 Phone: 403.663.9744 â&#x20AC;˘ www.pumpwell.ca

WE ARE EXPANDING

We are taking applications for a

FULL RIG CREW

WORK BASED OUT OF ESTEVAN - BENEFITS AVAILABLE - WAGES ABOVE INDUSTRY STANDARD

APPLY TODAY! In person: 1009A 6th Street, Estevan Fax: 634-7754 Email: cliff@grimeswell.com www.grimeswell.com

RĂŠsumĂŠs, including references, can be sent to:

Platinum Pumpjack Services Corp. PO Box 10207 Lloydminster, AB T9V 3A3 Fax: (780) 875-7149 Email: aoracheski @platinumenergy.net

PUMPING UNITS

$ %&!) $! &% % & ) & / % !! !$ % &+ ! % !'% #' ( ' % &! & ! !) - "!% & ! % &! " $& " & & $!)& ! !'$ " 5 &+ ! %&$' & ! !" $ & ! % $! % $/ / $) % "& # "#+

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$ " #$ $ # "' " #% # / & " $$ "# $ + %"$ # % " * " " (+ 4.538.695.7397 + % " 0 " #$ ' " $#,

C34

PIPELINE NEWS April 2012

RESOURCE GuĂ&#x2014;de

Quality

LAMICOIDS & metal cable tags EfĂ&#x20AC;cient Service

Call Linda for more information

Estevan Trophy & Engraving Phone: 634-6005 â&#x20AC;˘ Fax: 634-6405 Email: estevantrophy@sasktel.net

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.

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

2P[VPah # " !%# '! %

2Pa[h[T " % #$" !$""

fff \X[[T]]Xd\SXaTRcX^]P[ R^\

7^aXi^]cP[ Â&#x2019; 3XaTRcX^]P[ Â&#x2019; FT[[ <^]Xc^aX]V

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

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

Proud to provide selection, quality and excellence to our customers.

516 Nesbitt Drive, Estevan â&#x20AC;˘ 634-2631 (Behind Power Dodge)

Cordell Janssen District Manager Downhole

93 Panteluk Street, Kensington Avenue N Estevan, Saskatchewan PHONE: 306-634-8828 â&#x20AC;˘ FAX: 306-634-7747

JUSTIN WAPPEL - Division Manager

LECLAIR TRANSPORT General OilďŹ eld Hauling

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

Lyle Leclair Cell: 306-421-7060

cordell.janssen@nov.com â&#x20AC;˘ www.nov.com

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

BIG Dâ&#x20AC;&#x2122;S LEASE SERVICE Backhoe Towing Mowing Fencing Snow Removal Road Grader Gravel Supplies & Hauling

P.O. Box 544 Stoughton, Sask. S0G 4T0

(306) 457-7033 (306) 457-7673

SOUTHEAST SASKATCHEWAN COMMERCIAL CHAIN LINK FENCE EXPERTS

BOOKING SPRING 2012 Call (306) 634-8140 Pineland Metal Products, Inc. Steel Buildings â&#x20AC;&#x201C; Reduced Factory Inventory 3 0 x 3 6 - R e g $ 1 5 , 8 5 0 N ow $ 1 2 , 6 0 0 3 6 x 5 8 - R e g $ 2 1 , 9 0 0 N ow $ 1 8 , 8 0 0 4 8 x 9 6 - R e g $ 4 8 , 7 0 0 N ow $ 4 1 , 9 0 0 8 1 x 1 3 0 - R e g $ 1 2 1 , 5 0 0 N ow $ 1 0 3 , 9 0 0

Source # 11H Call Jim at 306-764-8000

Box 208

Estevan, SK

S4A 2A3

461-8471 â&#x20AC;˘ 461-8472 â&#x20AC;˘ 461-8473 Call: Clinton Gibbons

PIPELINE NEWS April 2012

THE WAY LARRY WORKS:

LOOK FOR OPPORTUNITIES. THEN MOVE ON TO BIGGER THINGS.

LARRY DYCK President, Jade Transport Ltd.

BUSINESS BANKING IS ABOUT A SHARED PERSPECTIVE. At Canadian Western Bank, we see the world the same way as our customers. As a result, we take the time to understand your business and provide banking solutions suited to your business needs. Discover insights and learn more at theworkingbank.ca.

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PIPELINE NEWS April 2012

The Metaltek Team Will Take Your downhole tools to the Next Level

Welcome To Lloydminster Allan Cup Fans & Players! GOOD LUCK!

· Wellhead Equipment Design,Manufacturing and Repair · Thread and Re-thread Casing, Tubing and Line Pipe · Drill Pipe and Collar Storage and Inspection · General and Custom Welding and Manufacturing · C.A.D Library of Parts · Complete Assemblies · Product Development

· Rotary Connection Manufacture and Repair · Down Hole Production and Fishing Equipment Construction · Phosphate Coating Available For Finished Parts · MIG, TIG and B Pressure and Aluminum · Service and Drilling Rig Stocked Parts · Custom and Production Machining · Rapid Prototyping

NEW WATER JET CUTTING MACHINE Metaltek shares your passion for New Technology, from adapting existing equipment to designing new products. We are committed to Quality Control at the highest levels in the industry. Our State-of-the-Art Facility provides innovative manufacturing capabilities. We continue providing Cost Effective solutions at all levels from stocked parts to prototyping.

ABSA Registered • Conforming to ISO and API Standards

780 - 875 - 6535

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