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In This Issue: MasterDrill Implementation One Savanna Award Recipients What’s Happening? Photo Competition Entries
Message f rom Management
Joining the Savanna family in April as Director of Risk Management and Compliance, Ken Ledger discusses his role with the company and how Savanna can pursue opportunities while minimizing risk.
Ken Ledger, Director Risk Management & Compliance WOW! It is hard to believe I joined Savanna three months ago as Director of Risk Management and Compliance. In this short time I have met many people throughout the company who have impressed me with their dedication to our Vision and Values. For those whom I have not yet had the pleasure of meeting, here is a bit about my background. I began working at Savanna on April 30 after previously having responsibility for Risk Management at Pason Systems in Calgary. Prior to Pason, I was located in Southern California working for a mobile base station equipment manufacturer as Director of Global Manufacturing Solutions. There I lead a team of software and hardware engineers who supported operations around the globe. I have also held a number of engineering management roles at Nortel and GE Harris. If it seems strange that I would leave the sun of Southern California to come to Calgary, it helps to understand that I am Calgarian born and raised. I returned home to Calgary in late 2005 with my wife Kari and our three amazing daughters. Our eldest daughter Rebecca, will receive her second degree from Queens University next year and begin her teaching career; our middle daughter Marissa, is currently studying at McMaster University to
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become a forensic anthropologist; and Jessica our youngest daughter, will be completing high school at Bishop O’Byrne in 2013. But enough about me. I am sure you are wondering what risk management at Savanna is all about. The best way I can summarize risk management is to start by saying it is not so much about managing risk, but more about engineering opportunities. To be successful we need to take advantage of opportunities to create growth and wealth. However, every opportunity comes with a certain amount of risk and if we fail to pay attention to or “manage” these risks, we can find ourselves unexpectedly caught in a difficult situation. Consider the 2008 crisis. Financial institutions were making large profits by accepting risky opportunities. Where they failed was they didn’t understand the risks they had taken on and thus didn’t manage these risks appropriately, leading to disastrous results. Savanna may never invest in high risk financial instruments; however, we do seek opportunity through major initiatives such as acquisitions, large capital purchases, or through smaller actions like exceeding customer expectations on a drilling or service job. Today we manage many of these risks through insurance, compliance or safety; however, it is important to consider and understand all the risk in the business and not leave our success to chance. My task, or more accurately our task, is to ensure that when we pursue an opportunity we have considered the risks involved through a process of collaboration, identification, assessment, treatment and review. We do this to ensure
the risks we take remain aligned with the expectations of shareholders, customers, partners, each other and the communities where we work, for without their support we cannot be successful. Over the coming months we will have more discussions on ways we can manage risk at Savanna and how the risk management team can be a helpful resource. I am excited to be working with a great team here at Savanna and look forward to working with many of you in the months ahead.
800, 311 6th Avenue SW Calgary, Alberta T2P 3H2 Phone: 403 503 9990 Fax: 403 267 6749 info@savannaenergy.com Savanna Energy Services Corp. is listed on the Toronto Stock Exchange (TSX:SVY) For current stock information, visit tsx.com or savannaenergy.com
Rig-n-Dig July 2012
Rig-n-Dig is published by Savanna Energy Services Corp. as an information vehicle for our employees and for our community. Suggestions and contributions are welcome and encouraged. Editor/Publisher: Janine Tannahill 403 267 6739 jtannahill@savannaenergy.com Managing Editor: John Bayko 403 781 9999 jbayko@savannaenergy.com
In This Issue Message from Mgt. MasterDrill Implementation One Savanna Awards What’s Happening? CTS Update Photo Contest Entries Scholarship Program Last Page
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MasterD ri l l
MasterDrill is the system used by Savanna Drilling’s Canadian division. It assists with equipment inventory and tracking. As part of Savanna’s key strategic goals, MasterDrill is being introduced to both the USA Drilling and Well Servicing divisions. Savanna Drilling’s Canadian division uses a system known as MasterDrill to track equipment inventory, movement and purchasing. The system also supports accounting functions such as budgets and cost control. For Savanna Drilling in the USA, no such system has been in place. Monitoring processes were mainly manual and varied from office to office. As part of Savanna’s key strategic corporate goals, Savanna’s Supply Chain Team, led by Tim Lindsay, Supply Chain Manager, was tasked with the goal of incorporating Savanna Drilling and Well Servicing USA into the MasterDrill system. In June, Lindsay travelled to Savanna’s Odessa, Texas, office to implement MasterDrill. Some preliminary planning was done in Calgary and Nisku, but most of the work was completed on site with the team in Odessa. Some of the work needing to be done for the MasterDrill implementation included cleaning and reorganising the shop yard, developing
Some of the members of the Odessa team. L-R: Jason Smith, Steve McCown, Shirley Herrington and Derrick Williams.
and applying a new paper flow process, and tagging equipment. The MasterDrill implementation team in Odessa included Jason Smith, Yard Hand; Steve McCown, Purchaser; Sherry Herrington, Receptionist; Derrick Williams, Loader/Operator; and Field Superintendents Rick Rosa, Carl Wade, Sheldon Maxwell and Dustin Brown. For the team, implementing MasterDrill meant changing all their current tracking systems, processes and day-to-day activities—not an easy task—but Lindsay says the team took on the changes, owned them and ran with them without hesitation. Dustin Brown commends the team on their efficient team work, acceptance and dedication to taking on the MasterDrill program. “Implementing change in a division is huge,” says Brown; however, he says it would not have been possible without everyone’s focus and buy-in, and the support given to the Odessa team from the Supply Chain Team. Brown has noticed huge process and tracking changes with the introduction of MasterDrill. Brown says many man hours were used by the previous system and it was also very paper intensive and still didn’t track everything sufficiently. With MasterDrill, Brown can easily find what equipment is being
sent to the rigs on a weekly and monthly basis; and it will also make equipment moves, budget tracking and certifications a lot easier. Although still new to the team, Brown can see the benefits of the new system and is very happy with how positive the team has been with accepting it. “Everyone is getting a good handle of [MasterDrill]. It’s just repetition now to get comfortable,” says Brown. “Two months from now, everything will be good!” Another big change with the introduction of MasterDrill has been the addition of tagging all the equipment with serial numbers. Having never used equipment numbers before, introducing them has been a big change and has altered purchasing and procuring procedures. Brown is very happy so far with how things have gone, and he believes it could not have been done without the cooperation of McCown, Herrington and Williams. Lindsay also acknowledges the commitment and support the Supply Chain Team received from Odessa. “The buy-in and support from the team in Odessa was second to none,” says Lindsay. “Everyone fully supported and worked towards the one goal.” Staying true to Savanna’s Values, the Odessa team were focused and open-minded with the implementation and are looking to learn and improve upon their current systems and knowledge. As the Supply Chain Team continues to introduce MasterDrill to the remaining USA offices, Savanna is once again setting the industry standard. Having most of Savanna’s offices using MasterDrill will not only streamline processes, but will also increase efficiency and value across the company.
The Odessa yard after the reorganisation. savannaenergy.com
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One Savanna Awa rds
Shane Pillar Savanna’s second round of One Savanna Award recipients were announced in early July. Among the recipients was an entire rig crew. Again there were a positive number of employees nominated for the award, all demonstrating Savanna’s Vision and Values. We congratulate all the nominees and award recipients! One Savanna Award Nominees: Becca Sue (Administrative Office Assistant, Savanna USA) Paulette Carr (HR Assistant, Savanna USA) Mick Brennan (HSE Team Lead, Savanna Australia) John Bayko (Communications Manager, Savanna Energy Services Corp.) Janine Tannahill (Communications Specialist, Savanna Energy Services Corp.) Venesa Zunti (Senior HR Advisor, Savanna Energy Services Corp.) Sylvia Sargeant (Benefits Administrator, Savanna Energy Services Corp.) Kevin Geddert (Organisational Effectiveness Specialist, Savanna Energy Services Corp.) Karen Wasylyshen (HRMS Specialist, Savanna Energy Services Corp.) Emily Clegg (HR Coordinator, Savanna Energy Services Corp.) Susanna Niemi (Payroll Administrator, Savanna Energy Services Corp.) Mercedes Seliman (Corporate Accountant, Savanna Energy Services Corp.) Lianne Kenler (HSE Superintendent, Savanna Well Servicing Canada) Ken Bell (Operations Manager, Savanna Drilling Canada) Art Saliienko (Driller Rig 612, Savanna Drilling Canada) Ewa Joniec (Crew Coordinator, Savanna Drilling Canada) Wayne Kozakewich (Rig Manager Rig 624, Savanna Drilling Canada) Dave Berrecloth (Operations Manager North, Savanna Well Servicing Canada) Kelly Labelle (Senior Crew Coordinator, Savanna Well Servicing Canada) Trevor Wazny (Field Superintendent, Savanna Well Servicing Canada)
One Savanna Award Winners: Shane Pillar (Trucking, Savanna Australia) Margaret Lau (Compensation and Benefits Manager, Savanna Energy Services Corp.) Darren Smith (Field Superintendent, Savanna Drilling Canada) Billy Wilson (Area Operations Manager, Savanna Well Servicing Canada) Rig 650 (Savanna Drilling US): Danny McEachern; David Romero; Kevin Frunchak; John White; Mike Frye; Sean Pierce; Alex Nicholas; Gord Selph; Alex Woodruff; Robert Mitchell; Zac Jones; Jordan Heggenstaller; Dan Mantz; Matt Laughter; Wayne Sandoval; Sasha Doubroff; Brian Gould; Justin Janeda; Tim Rempel; Tyler Steinkey.
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Shane has been working for Savanna’s trucking division in Australia since it began. He enjoys the environment and working with new trucks and trailers. Always on the look-out for ways to improve systems and make jobs smoother and more efficient, Shane designed a manifold with multiple hose outlets to assist with the unloading of water trucks. Previously, drip trays were used when changing from one line to another. Shane’s new manifold eliminates the use of drip trays and makes the process safer and reduces spillage. Congratulations Shane on receiving this quarter’s One Savanna Award and for exemplifying Savanna’s Value of Excellence by not only setting the industry standard, but for being innovative, open-minded and creative.
Darren Smith As Field Superintendent for Savanna Drilling, Darren is a true leader and teacher and does all he can to pass on his knowledge and experience to his rig crews. After working in the field for many years, Darren has experience with nearly all rig types operating in North America. During any of his rig visits, Darren always takes the time to walk around the rig to point out and explain hazards, answer any questions and share his experiences. His positive attitude and ability to communicate make him an inspiration to all his crews and a valuable employee for Savanna. Congratulations Darren on receiving the One Savanna Award and being an inspiration to your crews.
Margaret Lau As Savanna’s Compensation and Benefits Manager, Margaret has been instrumental in the development and release of Savanna’s Canadian RRSP program as well as bonus and stock option programs. Through her commitment to creating value for Savanna employees, Margaret has been committed and focused in her endeavors and has shown Savanna’s Values of Excellence and Sustainability whilst setting the industry standard. Margaret says she always considers Savanna’s Values when making recommendations. She shares Savanna’s Value of Integrity and believes it is important to always be accountable and committed to empowering her staff and peers. Margaret has worked at Savanna for just over two years and says it is the people who work at Savanna that she enjoys the most. “The employees at Savanna are caring, respectful and professional.” Thank you Margaret for your commitment to Savanna and its employees and we congratulate you on embodying Savanna’s Vision and Values.
Billy Wilson
One Savanna Awa rds
For Billy Wilson, the best part about working for Savanna is the work environment— right from senior management to new trainees— and the sense of professionalism and team work exemplified by Savanna employees. Billy has been with Savanna for just over two years as the Area Operations Manager for Savanna Well Servicing in Carlyle, Saskatchewan. He says he implements Savanna’s Vision and Values by having an open mind to all suggestions and by maintaining open relationships with his staff. Billy is always there for his staff and ensures that everyone returns home safely at the end of their shift. He is always available to lend an ear to his employees and makes sure they are all well looked after (which has included buying food for those who may be a little short on money). Billy gives credit where credit is due and is never short of a compliment or song to cheer up the day. Professional in his work ethic, Billy is the go-to man for any question. We commend you Billy on your outgoing and positive nature and for always being there for your staff. Congratulations on being one of this quarter’s One Savanna Award recipients.
Rig 650 For the first time, an entire rig crew has been awarded the One Savanna Award. Savanna Drilling Rig 650 is currently working for Shell near Craig, Colorado. Clearly winning the hearts of the locals (and the waitresses at their hotel), the crew has developed good relationships with everyone and have been outstanding ambassadors for Savanna and Canada. The crew has been commended on their polite conduct, performance, attention to safety and attitude—keeping everyone from hotel staff to Shell very happy. Congratulations guys on showing the Savanna standard and building relationships in your new community.
The crew from Rig 650. L-R: Alex Woodruff, Justin Jenda, Gord Selph, Danny McEachern, Brian Gould, Alex Nicholas, Tyler Sterinkey, David Romero and Matt Laughter. Absent: Kevin Frunchuck, John White, Mike Frye, Sean Pierce, Robert Mitchell, Zac Jones, Jordan Heggenstaller, Dan Mantz, Wayne Sandoval, Sasha Doubroff and Tim Remple. savannaenergy.com
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What ’s Happening?
Cardinal Wins Again! Congratulations to Brian Cardinal, Business Development and Partner Relations, who once again competed in the Cattle Penning competition at this year’s Calgary Stampede. This was Brian’s fourth year qualifying for the Stampede competition. Brian competed in three teams—two in seven class and one in ten class—and came third and second (Reserve Champions) in the seven class and eighth in the ten class. Chief Monias of the Heart Lake First Nation was a member of one of Brian’s seven class teams.
photos courtesy of Billy Wilson
From Softballs to Bowling Balls Billy Wilson, Area Operations Manager for Savanna Well Servicing, and his wife Erin coached the under 12 Carlyle Girls Softball team this year. For their wind-up event, Billy took the girls out for a pizza buffet and bowling (brave man!). The event was sponsored by Savanna and all had a great time. (And the girls are drinking root beer, not real beer!)
Brian Cardinal with his 7 class prize. Fire Training As part of the Motorhand course offered at Savanna’s Training Centre on July 18, the trainees had to complete fire training (photo below). The content included the proper use of fire extinguishers to effectively deal with a variety of fire situations.
Carlyle’s under 12 girls’ softball team.
Oil Patch Kids
photo courtesy of Randy Charland
Oil Patch Kids is a not-for-profit organisation offering support and assistance to abused or neglected kids living in the Permian Basin area. Dustin Brown, Field Superintendent, has been working with the organisation, of which, Savanna is a proud sponsor. On July 20/21, the organisation held a fundraising golf tournament. Savanna sponsored a hole at the tournament and the staff from the Odessa office manned the snacks tent and oversaw the holein-one giveaway. Great job guys and a great cause to support!
Rig Tour On June 20, a group of lucky employees from Head Office ventured to Redcliff for a tour of the yard and rigs. For all, this outing proved a valuable experience with some visiting a rig for the first time. Everyone had a great time and we thank HR and the Redcliff office for organising the tour.
photo courtesy of Ryan Wyatt
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What ’s Happening?
L-R standing: Raymond Gaboury, Ken Mullen, Lorne Stang, Joe Gibeau; Aaron Shaughnessy, George Chow, Dave Busenius. L-R Kneeling: Shane Herbert, Yuzdzha Mehmed. Missing: Kevin Pressey.
1000 Day Safety Award ConocoPhillips presented Savanna Well Servicing Rig 41 with a 1000 day safety award. Savanna Rig Manager David Busenius and Sales Representative Joe Gibeau were very pleased to accept the award from Conoco and Savanna is very proud of Rig 41 for their outstanding commitment to safety, customer service and demonstrating Savanna’s values. President and CEO Ken Mullen and Executive Vice President Corporate George Chow were on hand from the Savanna Senior Leadership Team for the presentation and SWS Operations Managers Dave Berrecloth and Brad Hartstok along with Area Manager Neil Draper and HSE Superintendent David Nash were on hand to provide a delicious steak BBQ for all in attendance. Draper and Nash brought in one of Savanna’s two new mobile BBQs for the occasion. Congratulations guys on this outstanding achievement—a first for Savanna!
Wainwright Parade On June 23, the town of Wainwright, AB, held their annual Stampede Parade. All clean and shiny for the event was Savanna Well Servicing Rig 44, which joined all the floats in the parade.
BC Biker
photo courtesy of Wade Andersen A Note from the Editor This edition of the Rig-n-Dig will be my last for a while as I head off on maternity leave. I would like to thank everyone, notably Nathan Greener and John Bayko from the Communications Team, for your continued support, contributions and ideas for the Rig-n-Dig—it could not be produced without you. Over the past two years I have interviewed and met some wonderful and interesting people—all with diverse backgrounds and stories. It has been a pleasure and I hope you have enjoyed reading the Rig-n-Dig as much as I have enjoyed producing it. — Janine.
Bruce Nash, Savanna’s newly appointed VP and GM of Savanna Well Servicing, competed once again in this year’s annual BC Bike Race. Held over a seven day period beginning July 01, the mountain bike course covers over 250 kilometres of British Columbia’s natural landscape. This year the race began in Nanaimo and finished in Whistler. This was Bruce’s second time participating in the race. After an extensive six months of training, Bruce was determined to improve on his time. After a wet start to the race, Bruce made up the time and finished the race three hours faster than his recorded time last year. Overall, he finished 47th out of 119 starters in his category. Congratulations Bruce!
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C TS Update
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Photo Contest E nt ries
So far we have received some great entries for this year’s photo contest. If you haven’t yet sent in your winning photo, don’t worry—the contest is open until September 30. Entries can be sent to savannaphotocontest@gmail.com and the theme is THE WEATHER.
Rig 652; submitted by Greg Hobbs
Rig 412; submitted by Oliver Ellis
Rig 640; submitted by Jason Haines
Rig 652; submitted by Victor Huezo
Cloudscape; submitted by Chris LeBlanc
Utah Sunset; submitted by Jon Toone Solar eclipse in the West Texas Desert, Rig 642; submitted by Ray Wells
Duelling Rainbows; submitted by Ellise MacPherson
Prairie Rainbow; submitted by Mark Scott
Keep sending in your entries! There are prizes!
savannaenergy.com
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Savanna’s Schola rship Prog ram
Savanna Scholarship Program
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School is IN!! Savanna values Stainability and as such, is committed to driving short and long term successes and developing and empowering people. Savanna’s Scholarship Program is a means to assist Savanna employees in the education of their children in an age where the costs of doing so are often challenging. Therefore, all children of Savanna employees who are entering their first year of post-secondary training at a college, university, or technical/trade school are eligible to apply for one of four annual awards of $3000. For eligibility requirements and applications, please consult the Scholarship Policy located on Savnet’s “Policies” page or send an e-mail to hr@savannaenergy.com.
Overview of Requirements • Open to all students under the age of 20 entering a college, university or technical college/trade school • Eligible students must have a minimum academic requirement of 60 per cent in their grade 12 coursework • Scholarship applications will be assessed based on the student’s academic standing and involvement in extracurricular and community activities
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Last Page
INTRODUCTION
HOW CAN ATVS BE USED SAFELY?
As the summer months continue in Canada and the USA and the kids are on school holidays, now is prime time for families to enjoy the great outdoors. For many families, camping, quadding, motorised water sports and the like, are favourite summer activities. In Australia and parts of the USA, quadding and motorised water sports are year round activities. All Terrain Vehicles (ATV) or quad bikes are designed for particular purposes and operating conditions. Using them outside these parameters can significantly increase the risk of severe injury or death. On average in Australia, more than 10 deaths per year are associated with quad bikes—and the statistics for Canada and the USA are even more alarming. By using ATVs in a correct and safe manner, the risk of injury or death can be reduced. The following information offers some guidelines for the safe operation of ATVs.
You’re more likely to be injured on an ATV if you don’t use it properly. If you’re a parent who owns or operates an ATV, you can model safe behaviour by following these guidelines: Age and experience: Driver error and loss of control are common causes of ATV crashes. Children younger than 16 years old should not operate ATVs. They don’t have the strength, skills or experience to handle ATVs safely. Four-wheeled vehicles: Injuries are more likely to occur on three-wheeled ATVs, which are more unstable than four-wheeled vehicles. Threewheeled ATVs are not recommended. Four-wheeled ATVs are still unstable and have the potential to roll over. Passengers: Most ATVs are meant to be used by a single driver. Passengers are not recommended because they can affect the balance and make it hard for the driver to stay in control. Children younger than 16
years old should never ride as passengers on ATVs. Proper equipment: ATV drivers and passengers should always wear an approved helmet for ATVs or motorcycles (such as a helmet meeting the Canadian Standards Association; Department of Transportation/Federal Motor Vehicle Safety Standard; Snell or American National Standards Institute motorcycle helmet standards, not a bicycle helmet; or Australian Standard 1698:2006 – Protective helmets for vehicle users), eye protection, and proper clothing, such as boots, gloves and long pants. Training: ATV drivers should take an approved training course. Drugs and alcohol: Drivers should not operate an ATV after using drugs or alcohol. Maintenance: Always keep ATVs well maintained and tyres correctly inflated according to the manufacturer’s recommendations. ATVs should never be loaded beyond the maximum weight capacity.
DID YOU KNOW? In Canada:
• Nearly 25% of ATV related deaths are children under 15 years old • More than one-third of serious injuries from ATV crashes are among children under 15 years old • Alberta and British Columbia are the only provinces in Canada to not have mandatory helmet laws for people operating an ATV
In the USA: • In 2003, there were an estimated 740 deaths associated with ATVs, including 140 reported deaths involving children • Children are involved in about one-third of all ATV-related deaths and hospital emergency room injuries
In Australia: • Between 2000 and 2005, 26% of all hospitalised ATV accidents in New South Wales involved children under the age of 15 • The most common cause of ATV accidents is the vehicle rolling over • There are no laws, such as wearing a helmet, governing the use of ATVs
MORE INFORMATION CAN BE FOUND AT: • http://www.atvsafety.gov/index.html • http://www.tc.gc.ca/eng/roadsafety/safevehicles-atv-index-1022.htm • http://www.safeworkaustralia.gov.au/sites/SWA/industryinformation/agricultureforestryandfishing/quad-watch/pages/quadwatch.aspx
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Located in Carlyle on main St. Backside of the Town Hall building Contact us @ 306-453-2666 sycoordinator@sasktel.net www.cfyprograms.com Fall Playroom hours: Tuesday 1-3 & Wednesdays 9:30-11:30
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