10 Year Anniversary Book

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S Savanna Energy Services Corp.

1 0 TH ANNIVERSARY

W W W. SAVANNAENER G Y. C O M

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10th anniversary

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Savanna Energy Services Corp.

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Over the last 10 years, Savanna has established itself in a volatile industry by embracing challenge and adapting to change.

We’ve seen many milestones and mergers, survived slowdowns and celebrated successes.

It’s been quite a ride.

In 2001, a handful of people started

10 years have come and gone, and

Savanna Energy Services Corp.

in that time we’ve been diligent in

with a few rigs and one ambitious

building upon successes, attracting

plan. Others brought their vision,

employees, and accumulating assets

equipment and ideas to the team and

to establish a platform for the next

in 10 years have taken this company

10 years.

from one province in Canada to three countries and counting.

Over the last decade we’ve attracted over 3,000 employees and collected nearly $1 billion of

We’ve expanded from one province to two continents and three countries. We’ve strengthened

the most innovative technology in the industry. We’ve been through the booms and the busts,

our commitment to building strong relationships and delivering excellence. We’ve never—not for

experienced our share of obstacles and enjoyed countless achievements,

a second—lost sight for our mandate to develop a profitable sustainable business.

but you ain’t seen nothing yet.

Ten years later, we’re just getting started.

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V i s i o n a n d va lu e s / 0 6

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Our team / 12

O u r pa r t n e r s / 1 8

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C o m m u n i t y i n v olv e m e nt / 2 6

Products and services / 32

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Historical timeline / 02

A commodity driven industry / 44

E x pa n s i o n / 4 8

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I n n o v at i o n / 3 8

Financial management / 56

2 0 01 / 2 0 0 2 2 0 0 3 / 2 0 0 4 2 0 0 5 / 2 0 0 6 2 0 0 7 / 2 0 0 8 2 0 0 9 / 2 0 1 0 Seizing opportunity “I remember thinking about how frustrated I was when our other company, Plains Energy, fell victim to a hostile takeover in 2000. It was frustrating in the sense that you knew that there was so much opportunity in the industry and to have that opportunity suddenly taken out from under you was incredibly disappointing.

It’s funny though because in hindsight, the takeover 2

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Savanna Energy Services Corp.

of Plains was the best thing that could have happened because it gave us a clean slate to start Savanna. We had some great people who were able to focus on the best opportunities available with the goal of creating a strong company that would continue to grow into the long term.”

DARCY DRAUDSON – Vice President, and CFO

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historical timeline / 01

Savanna Energy Services Corp.

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July

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Raised $50 million in largest private placement of its kind in the energy service sector to date

Savanna has four employees

Lakota Drilling goes public with two drilling rigs

Savanna spends 2002 building capital and preparing the company to go public

Savanna begins running their Hybrid drilling rig; a rig combining coiled tubing with conventional pipe to offer two drilling capabilities in one

Lakota establishes first of what eventually becomes an award winning Aboriginal partnership model with the Dene Tha’ with a 50/50 structured, two rig agreement

Lakota enters into a drilling rig operating arrangement with Metis Nation of Alberta

Lakota enters into a drilling rig operating arrangement with Saddle Lake First Nation

Lakota operates a total of five drilling rigs, all in partnership with First Nations

November

2002:

April

May

June

October

Savanna Energy Services Corp.

Savanna exits 2003 with 10 drilling rigs and plans to double fleet by year end 2004

Savanna shares close on December 31, 2003 at $9.75

Savanna initiates construction of four new drilling rigs and one wireline unit

Canadian patent of Hybrid rig granted to Savanna. Inventors – Gene Carriere and Don Goldade

Savanna now has approximately 1,000 employees

Lakota announces acquisition of six more double drilling rigs

Lakota begins trading on the TSX as the symbol WLE

Lakota acquires four pre-set/casing rigs from Becker Drilling and expands fleet to 11 coring rigs

US patent of Hybrid rig granted

Savanna sets a Canadian drilling industry record for wells drilled and metres drilled

February

April

May

June

December

2005:

December

and 12 service rigs.

Over the entire year, 12 new drilling rigs, six wireline units, and two well servicing rigs were added to Savanna’s fleet

of 16 wireline units

Lakota announces partner agreement with Blood Tribe

a public company.

share in first year as

Lakota announces construction of 14th double drilling rig

Earnings of .38 per

June

SVY begins trading on the TSX.

May

2003

2004:

Savanna adds six more drilling rigs to the fleet by year end

Savanna’s fleet consists revenue eight fold.

Savanna has a total of 16 well services units, six hybrid drilling rigs, and 22 wireline units

Savanna increases

Savanna spends $52 million dollars on Capex.

Savanna lists on the TSX and its shares close at $5.40 on first day of trading

Incorporated as Savanna Energy Services Corp., March 22.

September

2002

August

2001

2003:

Savanna acquires Combined Services wireline

Ultraline Wireline incorporated

Trailblazer Drilling incorporated

March

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Great Plains Well Servicing incorporated

2001:

2004 2005

Savanna continues to expand its fleet in the face of improving commodities markets.

Hybrid rig patented in Canada and the United States.

Earnings per share

$100 million revenue

climb to $1.

milestone met and

surpassed. Savanna

finishes 2004 with

$129 million in revenue.

lexander First Nation becomes partner in the ownership of a 3,600 m A tele-double drilling rig

avanna forms new rig partnerships with Heart Lake First Nation S and Cold Lake First Nation

avanna deploys two telescopic doubles to Odessa, TX and opens a field office S and deploys two CT-2200 Hybrid rigs to Weatherford, TX

August

December

turgeon Lake First Nation becomes a new partner with Savanna in the S ownership of a telescopic double drilling rig

Alexis Nakota Sioux Nation becomes a partner in ownership of service rigs

November

December

Savanna acquires D&D Oilfield Rentals

In advance of its 10th Anniversary, Savanna launches a new logo and set of graphic standards. The new globe logo signifies Savanna’s entrance into international markets

Savanna announces the launch of its revised Aboriginal Training Program and its Immigrant Training Program. The Immigrant Training Program is run in partnership with the Calgary Catholic Immigration Society and is the first privately funded initiative of its kind in Canada

Savanna delivers the first 2 of its rigs under its Australian drilling and well servicing contract

October

November

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Savanna solidifies its

balance sheet strength

and exits ‘09 with a

doubles revenue and net debt of $19 million

topples the $300 on $870 million in

million mark. tangible assets.

Savanna Energy Services Corp.

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2009 2010

Savanna begins operations internationally with four rigs placed in Mexico.

Savanna delivers two workover rigs to Australia.

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L e g end / s a v a n n a / W e st e r n L a k ota

Savanna completes vision and values with 33 participating managers and prepares to present to the rest of employee base

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May

$460 million.

Savanna announces entrance into Australian market

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2010:

Finishes ‘08 with

Former Savanna board member Victor Buffalo receives the Order of Canada

million in revenue.

December

Savanna passes $400

Savanna closes $126.8 million bought deal financing

Savanna opens headquarters in Houston, Texas.

November

2008

June

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2009:

Savanna more than

Savanna acquires Greystone Drilling out of the United States

the first time in history.

September

operating cash flows for

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June

Over $100 million in

Savanna opens a well servicing office in Dickinson, ND

Savanna opens headquarters in Houston, TX

April

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Savanna achieves Gold Level status in the Progressive Aboriginal Business (PAR) program presented by the Canadian Council for Aboriginal Business – the first oilfield services entity to do so

Savanna pays first quarterly dividend.

Cold Lake First Nation adds a service rig to existing partnership

2007

February

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January

2008:

Savanna acquires Accell Well Services and 16 workover rigs

Savanna merges with Western Lakota to expand depth rating and increase fleet size.

U ltraline wireline is sold to Halliburton pursuant to unsolicited offer for $208 million in cash (original equipment cost, $36 million)

2006

March

2007:

Savanna acquires Lakota, name of combined company is Savanna

2006:

Savanna 10th Anniversary 10

historical timeline / 01

After a severe downturn

in the industry,

Savanna’s revenue is

north of $400 million

after weathering

the storm.

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Vision

Defining leadership in global energy services through people, innovation, and technology – The path for others to follow.

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VISION a n d v a l u e s / 0 2

2011 is an important year for Savanna, marking our 10th anniversary as a company. From humble beginnings with just a handful of employees and no equipment in 2001, we now employ over 3,000 personnel and operate nearly $1 billion of capital assets and equipment.

Throughout 2010, with the exception of D&D Oilfield Rentals, we have been working hard toward consolidating all of our services under the Savanna brand. That process is now complete, and there is growing awareness of the substantial overall size and scale of Savanna in the marketplace as a result.

Obviously you do not grow at the pace, or to the extent, that Savanna has without a great many people doing a great many things extremely well. However, with growth comes a disconnect between management and other individuals in the organization. This disconnect is unavoidable in the face of significant growth. One of the greatest risks of that disconnect on a daily basis is the dilution or miscommunication of Savanna’s fundamental vision and values throughout the organization. During much of 2010 we gathered key personnel from every corner of Savanna to ensure we captured, in words, the vision and values upon which Savanna has been built so we could share it with new and existing Savanna personnel alike.

The rollout of our Vision and Values in 2011 is certainly not the end of that process, and the process of further communicating these will continue in 2011 and beyond.

The more critical component going forward is to make sure we “live” them every day. The values we have espoused are intended as a guide to activity and decision-making, and as a measuring stick for performance. They are directly assessed in every employee’s performance evaluation process because we believe that meeting these standards is essential to Savanna’s long term success.

In conjunction with our Vision and Values rollout, and in recognition of Savanna’s continued growth outside of

Canada, we also have refreshed our logo. The stylized circle around our logo is meant to emphasize Savanna’s development as a global energy services provider. This journey to a substantial global presence, like the start of the Company 10 years ago, is just getting started. I am confident that we will look back 10 years from now with the same sense of pride and accomplishment that we do today. Our people and equipment will carry us into many new areas over the next several years, in addition to continuing to grow every region in which we now operate.

As we progress through 2011 and beyond, these undertakings are coming together with the celebration of a new decade, and a renewed sense of direction and potential in our Company. We want to celebrate our roots, our accomplishments and our progress this year, and you can look forward to many events doing just that.

I am proud of Savanna’s progress and success, but I am even more excited about our future. New rig designs (TDS-3000, Marcellus AC double, Australian hybrid and service rigs), new geographic markets, and the potential for acquisitions to expand all of our businesses, provide tremendous promise for Savanna’s future. The last 10 years have been a tremendous success story for our Company, but you ain’t seen nothing yet!

Ken Mullen President & Chief Executive Officer

Savanna Energy Services Corp.

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integrity

savanna value

Demonstrate the courage to do the right thing.

Be respectful Be trustworthy Be accountable Be honest and open Be ethical

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VISION a n d v a l u e s / i nte g r i t y and relat i onsh i ps

relationships

savanna value

Build CollaborativE partnerships.

Be safe Care for people Communicate effectively Treat others with dignity Celebrate successes

Savanna Energy Services Corp.

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Excellence

savanna value

Set the industry standard.

Be committed Be creative and open-minded Be focused Be disciplined Constantly Pursue innovation Continuously learn and improve

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VISION a n d v a l u e s / excellence and s u sta i nab i l i t y

sustainability

savanna value

Drive short and long-term success.

Create value for all Be adaptive Value diversity Be profitable Be environmentally responsible Develop + empower people

Savanna Energy Services Corp.

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our team / 03

THE RIGHT PEOPLE S ava n n a h a s l o n g m a i n ta i n e d t h at p e op l e a r e ou r gr e at e s t a ss e t.

Ou r p e op l e p r o v i de t h e i n n o vat io n a n d h a r d wor k w h ic h h av e a l l ow e d u s t o gr ow a s a c om pa n y a n d c o n t i n u e t o be s u c c e ss f u l .

One of the greatest things about working at Savanna is the variety and character of the people we interact with each day. We value diversity and as such have created a team of individuals from all walks of life, and the fact we’ve grown so much over the years has added to the variety of career options within the company, bringing fresh new perspectives to our business.

Relationships through 10 years develop and grow, and they dissolve, end and begin anew. Many people have come and stayed, and many have come and gone, and to all we give thanks and wish happiness and success. Friendships, camaraderie, hardships, growing pains, misunderstandings, trust, respect‌ these are things the human element adds to any organization, and we are grateful for all the people who have made Savanna what it is today.

Savanna Energy Services Corp.

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“ De f i n i t e ly t h e p e op l e a n d t h e i r a b i l i t y t o m a k e c om i n g t o wor k f u n h a s k e p t m e wor k i n g f or S ava n n a a l l t h e s e y e a r s. T h e e v e r- c h a n g i n g dr i l l i n g m e t hod s h av e c e r ta i n ly h e l p e d t o k e e p o n e ’ s i n t e r e s t a n d t h e a b i l i t y t o gr ow a n d c h a n ge w i t h i n t h e or g a n i z at io n s I h av e wor k e d f or a s w e l l .”

Y vo nne Gr avette Yvonne Gravette began her career on February 11, 2004 with Western Lakota Energy Services. Hired as a contracts and billings administrator, Yvonne is now the billings team lead for the drilling division in the role of Senior Contracts Advisor.

“I started with doing all the contracts and billings, which I helped to develop for Western Lakota. In September of 2005 we hired a billings analyst to help with the increase in work as we were continually adding new rigs.

I continued doing contracts and supervising the billing analyst until April of 2010 when the billings analyst was promoted to Billings Team Lead and I took on the role as Senior Contracts Administrator.

The impact that modern technology has had on our industry over the years is unbelievable. From helping develop better equipment, to much improved drilling methods, right down to how we communicate our information between each other. I cannot think of any aspect of our industry that the ever changing technology as not been a part of.”

“Sava n na is a gr e at pl ace to wor k a n d I l i k e t h e fac t t h at e v e r y o n e w i t h i n t h e c om pa n y f r om e v e r y l e v e l h a s a s ay a s t o how ou r f u t u r e s hou l d l o ok , a n d t h at m a n age m e n t ta k e s t h e t i m e t o l i s t e n. I t h i n k t h at S ava n n a w i l l o n ly gr ow b ig ge r a n d be t t e r a n d w i l l de f i n i t e ly m a k e i t s m a r k o n t h e wor l d s c e n e .”

“A big thank you to all the people at Savanna for making this a place I enjoy coming to each day.”

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TEN REA SON S TO WORK FOR SAVANNA 01/ three coun trie s an d coun tin g 02/ we have cool rig s 03/ have you seen the beache s in Au stralia?

04/ our ma scot han gs with Stormtroopers 05/ who d oesn ’t lik e d iggin g holes in the groun d ?

06/ hard hats are sexy 07/ west Texas barbecue 08/ usin g PLC con trols is lik e gettin g paid to play vid eo game s 09/ three word s: Calgary Corporate Challen ge 10/ we have great people an d are a great compan y to work for!

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3,0 0 0 AND COUNTING – As S ava n n a h a s gr ow n, t h e r a n ge of c a r e e r c hoic e s w e of f e r h a s e x pa n de d a s w e l l . W e h av e l o g i s t ic s e x p e r t s, ac c ou n ta n t s, e n g i n e e r s, r ig t e c h n ic i a n s, l aw y e r s, a p p l ic at io n de v e l op e r s, w r i t e r s, r e c r u i t m e n t e x p e r t s, h u m a n r e s ou r c e p r of e ss io n a l s, w e l de r s, e l e c t r ic i a n s, p u r c h a s e r s, s a l e s p e op l e , data e n t r y c l e r k s, gr a p h ic de s ig n e r s, IT e x p e r t s, i n t e r n at io n a l m a r k e t i n g a n a ly s t s, a n d t h e l i s t g oe s o n !

“S om e of t h e h igh l igh t s of m y c a r e e r h e r e de f i n i t e ly i n c l u de b u i l di n g t h e H y br i d r ig a n d p r o v i n g t o t h e C a n a di a n dr i l l i n g m a r k e t t h at i t c ou l d wor k . T ho s e w e r e v e r y f u n t i m e s. S ava n n a h a s h a d a gr e at t e a m o v e r t h e y e a r s a n d i t h a s be e n gr e at wor k i n g h e r e .”

D o n G olda de Don Goldade began his career in the oil patch at 17 as a rig hand in Medicine Hat. He, along with Gene Carriere, invented the Hybrid drilling rig, a staple in Savanna’s success to date. These days Don manages Australian operations at Savanna’s Toowoomba office.

Don believes these are very exciting times to work at Savanna, as the Australian operation is on the verge of taking off. With two service units on the ground, and two brand new and specially built Hybrid drilling rigs ready to go, Savanna Australia is poised for the same start up success it achieved in Canada a decade ago.

“In the old days we were having fun and making some money, and a lot of people we worked with were promoted and have come up through the ranks. Ryan Dreger and

Ken Bell started with us and are now Field Superintendents.

Aaron Mills (currently Operations Manager for Hybrid Drilling) was the Rig Manager on Rig One. Now, with these rigs in Australia, we have the chance to prove ourselves again, and to me that is an incredible opportunity: to do this twice in a career. The new Hybrid rigs down here are even better than the previous lot as they are on wheels and are faster and safer to operate. We’ve got another great team here in Australia and I love it here. The people work extremely hard and are just like us Canadians.

I’ve got to give everyone a lot of credit for what they’ve accomplished so far, and this is just the beginning. What these rigs will do… it’ll change the way drilling is done in Australia in my opinion.”

Savanna Energy Services Corp.

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J im B r a d f ord

Myle s B l ackwater Myles Blackwater began his career with Savanna Energy Services Corp. in December of 2006. Blackwater graduated from one of Savanna’s first Aboriginal Rig Training programs and began work on Savanna Rig 619 with rig manager Chris Murphet. During his time with Savanna, Blackwater has worked in central Alberta, Saskatchewan and west Texas.

Blackwater is from the Blood Reserve in southern Alberta and was working in seismic when he heard about Savanna’s Aboriginal Training Program. Looking for something new, Blackwater completed the training and went straight into rig work. Blackwater says the training program gave him a sense of pride and has taken him places he never thought he would go. On working with Savanna for five years, Blackwater states

“ t h e y ’ r e ( S ava n n a) t h e o n e s w ho g av e m e m y f i r s t s ho t. T h e y t o ok t h e t i m e t o c om e ou t t o t h e r e s e r v e a n d g i v e u s ou r t ic k e t s.

S ava n n a g av e u s a n op p or t u n i t y a n d I r a n w i t h i t.”

Currently working as a derrickhand on Rig 626 near Shaunavon, Saskatchewan, Blackwater has come a long way since his first days of scrubbing down shacks. He admits the work can be hard, but he also feels a sense of achievement. He humbly admits that if he can do the work, then anyone can.

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Jim Bradford started with Savanna in April of 2001, purchasing the materials to build the company’s first 10 pump trucks and the rig supplies for Great Plains’ service units so they could get up and running. Currently managing Savanna’s entire fleet of vehicles, Jim works out of Calgary’s NE service shop.

“ I l i k e wor k i n g f or S ava n n a be c au s e e v e r y day s om e t h i n g i s di f f e r e n t; i t ’ s g o od p e op l e i n a g o od wor k e n v i r o n m e n t. Be i n g i n A l be r ta , wor k i n g i n e n e r g y s e r v ic e s g oe s h a n d -i n -h a n d a n d i t o n ly s e e m s n at u r a l t o be i n v olv e d i n s om e way i n t h e e n e r g y b u s i n e ss.”

“The thing that sticks out in my mind is the number of Savanna vehicles you see when travelling throughout Alberta and Saskatchewan. You see more and more each time you travel! We’ve had amazing growth over the years and it’s hard to imagine how things have grown and changed in the span of 10 years. I can remember the first well servicing rig being tested and going out to work.

Then the first hybrid drilling rig being sent out. Now, it’s hard to keep up with how many rigs are in each division.

Congratulations to Savanna. Without the hard work and dedication from everybody in the Savanna group, the company would not be where it is today. Best wishes and continued success.”

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“ W i t h t ec h nol ogy c h a ngi ng a l most e v e ry day i t m a k e s you won de r w h at t h e n e x t 10 y e a r s w i l l br i ng. You se e p ic t u r e s of 20 y e a r ol d equ i pm e n t a n d i t l ook s a l most a n t iqu e com pa r e d to som e of t h e equ i pm e n t w e h av e today.”

Geo ff T y wo niuk Geoff Tywoniuk began his career with Western Lakota Energy Services on December 15, 2003. Geoff has been involved in drilling rig sales and marketing roles since October 1987 and is currently the Vice President and General Manager of Savanna’s Conventional Drilling Division.

“In 2003, I was working at a 15 rig private company which had been in existence for 25 years. At the time things were very comfortable for me, but I had been observing the start up of Lakota since their first rigs entered service in late 2001.

After a good friend of mine, Randy Hawkings, joined Lakota in the fall of 2003, I promptly phoned him and said I would be interested in joining him in a senior marketing role.

What drew me to Lakota was the thought of marketing brand new telescopic rigs which was a design I could clearly see was going to lead the market in years to come in utilization and demand.”

“ I h av e s tay e d w i t h S ava n n a a s it is still clear to me, w ith S ava n n a p o ss e ss i n g t h e f l e e t of t h e n e w e s t r igs i n W e s t e r n C a n a da , w e hol d h uge p o t e n t i a l t o be a n i n du s t r y l e a de r i n b o t h g o od t i m e s a n d b a d.”

“My career in the energy business started in 1981 when I worked at Dome Petroleum. I felt the energy industry was very vibrant and showed a lot of possibility if you were willing to work hard, work with people, and were not afraid to learn.”

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o u r pa r t n e r s / 0 4

S a v a n n a’ s i n d u s t r y l e a d i n g A b o r i g i n a l pa r t n e r s h i p s a r e a k e y pa r t o f o u r b u s i n e ss s t r at e g y.

O p e r at i n g d r i l l i n g a n d s e r v i c e r i g s i n pa r t n e r s h i p w i t h F i r s t N at i o n c o m m u n i t i e s p r o v i d e s b e n e f i t s t o S a v a n n a , o u r pa r t n e r s a n d o u r c l i e n t s .

People, technology, service and vision are all vital strengths and have each contributed in their own right to Savanna’s current success. There is a common theme however, running through each of these strengths that perhaps reflects Savanna’s approach to business the best; the willingness to

try something different. At the time of their conception, Aboriginal partnerships in the ownership of drilling and service rigs were uncharted paths. Now, they are a key part of Savanna’s business strategy realizing mutual benefits for Savanna, our Partners and our customers alike.

Savanna Energy Services Corp.

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History

R i g s i n pa r t n e r s h i p

Since 2001, Savanna has worked closely with many First Nation and Métis communities to develop and maintain strong business relationships. Western Lakota founder Elson McDougald had a vision for bringing First Nation communities into the Western Canadian energy industry as meaningful players, not just as financial participants.

Savanna’s first 50/50 rig partnership was in 2001 with the Dene Tha’ First Nation, the partnership initially started with two drilling rigs and then expanded to five drilling rigs. From that basic concept, Savanna has, since 2006, consistently and relentlessly expanded and improved its relationships and programs with its partners. The idea of First Nations relations has become “core” at every level in Savanna.

A key part of Savanna’s business strategy is based on operating drilling and services rigs in partnership with First Nation communities. These partnerships realize a mutual benefit for Savanna, Partners and oil and gas customers. For the Aboriginal communities, equity investment in a new drilling or service rig provides a very attractive return as well as many associated employment and training opportunities. Savanna has also provided assistance towards First Nation communities becoming owners in drilling or service rigs by providing unsecured loans to the community for their equity portion.

Savanna acts as the general partner arranging bank and other financing as required, coordinating rig construction and commissioning, arranging drilling contracts with oil and gas customers, and acting as the manager and operator of the entire drilling operation on a day-to-day basis.

In addition, Savanna makes a strong employment and training commitment to the community of our Aboriginal partners, a commitment that offers an equally important return on investment. Savanna’s current partners represent communities from Treaty 6, 7, and 8.

[ A n d r e w P o p k o , F o r m e r A b o r i g i n a l R e l at i o n s M g r , E n c a n a ; Ch i e f E d d y M a k o k i s , S a d d l e L a k e C r e e N at i o n ; E l s o n M c D o u g a l d , CEO , W e s t e r n L a k o ta E n e r g y S e r v i c e s . ]

s a v a n n a f i r s t n at i o n s c o m m u n i t y p a r t n e r s a c r o ss a l b e r ta d e n e t h a’ f i r s t n at i o n

d u n c a n ’ s f i r s t n at i o n s t u r g e o n l a k e c r e e n at i o n a l e x a n d e r f i r s t n at i o n

h e a r t l a k e f i r s t n at i o n c o l d l a k e f i r s t n at i o n

a l e x i s n a k o ta s i o u x n at i o n s a d d l e l a k e c r e e n at i o n

f r o g l a k e f i r s t n at i o n

s to n e y t r i b e s : b e a r s paw , c h i n i k i & w e s l e y

the blood tribe

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o u r p a r t n e r s / h i stor y and r i g s i n partnersh i p

2 Drilling Rigs: Dene Tha’ First Nation

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Service Rigs: Alexis Nakota Sioux Nation

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2 Service Rigs: Cold Lake First Nations

1 Drilling Rig: Duncan’s First Nation

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Drilling Rig: Heart Lake First Nation

Drilling Rig: Blood Tribe

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Drilling Rig: Sturgeon Lake Cree Nation

Drilling Rig: Alexander First Nation

S i n c e 2 0 0 1 , S a v a n n a h a s e x pa n d e d t h e pa r t n e r s h i p p r o g r a m to i n c l u d e 1 1 F i r s t N at i o n s c o m m u n i t i e s a n d h a s b e e n r e c o g n i z e d b y i n d u s t r y a n d g o v e r n m e n t a l i k e f o r i t s s u c c e ss .

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O u r T e a m S a v a n n a e m p l o y s a B u s i n e ss D e v e l o p m e n t & P a r t n e r R e l at i o n s M a n a g e r , a n d a p a r t n e r r e l at i o n s c o o r d i n at o r , b o t h o f w h o m a r e F i r s t N at i o n s m e m b e r s .

Brian Cardinal is responsible for regularly communicating with our existing partners, as well as developing new partnerships with other First Nations or Métis communities. Brian plays a vital role within the partnerships and is responsible for ensuring our community relations remain strong so we may address any issues or concerns in a timely manner.

Tweela Nepoose is Savanna’s Partner Relations Coordinator.

Tweela focuses specifically on training programs, community events such as golf tournaments, training graduations, rodeos, pow wows, cultural events and career fairs, and also provides financial and operational reports to our partners.

[ b r i a n c a r d i n a L a n d Tw e e l a N e p o o s e ]

Savanna’s partnerships with First Nation and Métis communities bring a valuable and rewarding dynamic to our company that sets us apart wherever we operate and we congratulate and thank them for the part they play in working with Savanna to become the operator of choice for many E&P companies.

Dwayne LaMontagne, Executive Vice President and Chief Development Officer [ saddle Lake Pow Wow 2009 ]

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o u r p a r t n e r s / o u r team and tra i n i n g

The Aboriginal Drilling Rig Training Program was created to introduce more members of Savanna’s Partners and Aboriginal communities to the energy services industry and to enhance employment rates and retention. A ten day course, the program includes one day prescreening, interviews and testing; four days of CORE skills, a unique personal development and pre-employment readiness program; two days of Safety Sync Training; one day H2S safety certification; and two days of Greenhand Orientation.

The CORE skills component was designed with the goal of preparing Aboriginal trainees with the skills to maintain employment and seek advancement opportunities in the oil and gas industry. The topics addressed range from the history of Savanna’s rig partnerships, Savanna’s Vision and Values, family issues, budgeting, communication and preparation for employment in the drilling industry.

The two days of Greenhand Orientation includes hands on training on a training drilling rig along with classroom instruction from a seasoned Instructor. The hands-on training portion focuses on the different components and equipment of the rig and also addresses important safety issues which is vital knowledge for a new trainee. Savanna has contracted a Program Facilitator who is a First Nation member to oversee certain aspects of the Aboriginal Training Program. Savanna employs a Diversity Program Manager who is a First Nation member who oversees the

administration aspects of the program and also monitors the progress of the Trainees. It is our goal that once the trainees successfully complete each portion of the program that they will be employed with the company. Savanna believes that ongoing career development and training is critical to employee growth and satisfaction and is instrumental in helping Savanna achieve and maintain a competitive advantage. Career Development and Training is available to Savanna’s employees which provides a few different options of training such as Formal Career Development (Certificate, Designation or Diploma) or Informal Career Development/Training.

[ A b o r i g i n a l R i g T r a i n i n g P r o g r a m Fa l l 2 0 1 0 ]

[ A b o r i g i n a l R i g T r a i n i n g P r o g r a m Fa l l 2 0 0 8 ]

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100% partnership

50%

50%

Savanna Limited Partner

First Nation Limited Partner

100% economic benefit In a typical arrangement, Savanna and a partnering First Nation act as limited partners who equally represent 50 per cent of the partnership.

As a partner, Savanna is diligent at all times to maximize the opportunities of each partnership in terms of finances, operations, employment, and management. This has the 24

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potential to provide cash flow for partners for many years which can be used to reinvest into their communities. Savanna benefits in these relationships through, among other things, the deployment of an industry leading business unit to better serve our many oil and gas customers.

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o u r p a r t n e r s / comm u n i t y & corporate s u pport and best pract i ces

C o m m u n i t y & C o r p o r at e S u p p o r t

b e s t p r a c t i c e s

S ava n na su p p o r ts A b ori gi nal organi zat i on s on a cas e - b y- cas e b asis re lat e d to th e gro u p ’s o bj e ct iv es and goals. Savanna is p l e a s e d to o f f e r f i nanci al ass istance to wo r t h y ca use s such as A b ori gi nal You t h .

Savanna is widely regarded as the “Aboriginal Drilling Company” and is the preferred choice as a partner by many First Nation and Métis communities. Some key reasons for this reputation are the many Best Practices set.

The following is a list of awards and recognition citing Savanna’s ability to implement innovation in this regard: lberta Chamber of Commerce, Premier’s Award of • A Distinction – February 2010 lberta Chamber of Commerce, Aboriginal Relations • A Best Practices Award of Distinction Finalist – February 2009

Each partnership has a sponsorship budget and funds are distributed to events on the recommendation of a committee made up of community members.

As a partner, Savanna’s only suggestion is that funds go towards an event or cause which will benefit the community at large such as Youth, Elders and cultural events.

Additionally, Savanna values the promotion of education among Aboriginal Youth and demonstrates this through corporate support. Savanna has committed to a bursary in the amount of $2,500 towards Aboriginal individuals who are of Status, Métis or Inuit descent and who complete their first year of Petroleum Engineering Technology at the Northern Alberta Institute of Technology (NAIT) and Southern Alberta Institute of Technology (SAIT).

This bursary is the first such bursary that SAIT has ever offered on the condition that the bursary is to be awarded exclusively to an Aboriginal student which was a condition arranged at Savanna’s insistence. Savanna has also matched a $10,000 contribution by Savanna Director Kevin Nugent, for Aboriginal programming initiatives at the University of Lethbridge. The “Nugent Family Award” supports Aboriginal students in achieving their educational goals and Aboriginal programming initiatives.

rogressive Aboriginal Relations (PAR), Gold Level • P presented by Canadian Council for Aboriginal Business – February 2008 askatchewan Indian Training Assessment Group • S Award for growth and development of the First Nation workforce – 2008 ewarding Partnerships, Working with the Aboriginal • R Marketplace Award, presented by Alberta Chamber of Resources – January 2007 • I naugural Canadian Indigenous Business Association Award, presented on behalf of First Nations within Alberta – October 2006 est Practices Award of Distinction, presented by • B Alberta Chamber of Commerce, sponsored by Indian and Northern Affairs Canada – 2005 ominated for Inter Provincial Association on Native • N Employment (IANE) – for recruitment and training of Aboriginal individuals.

t o p [ A l b e r ta c h a m b e r o f r e s o u r c e s a w a r d , 2 0 0 7 ] l e f t [ P r e m i e r ’ s Aw a r d , 2 0 1 0 ] b e l o w [ a b o r i g i n a l t r a i n i n g p r o g r a m , fa l l 2 0 1 0 ]

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ack to the b e iv g to n e e ay one, has b , d m o fr , te a nd olunteerism v a h m g ’s u a o r n n th a k v r Sa . e live and wo w h ic er initiatives h w th o in g s n o ie it m n a u comm partnerships d n a t, n e m y mplo donations, e

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unity develop m m o c r u o in s individuals lp e h a n n a v economy, l t Sa a c a lo th ir d e u o th r p to I am nd contribute a ls a o g ir e each th CES MAN RESOUR ORE, VP HU their skills, r RACHEL MO ! ll concerned a r fo in w a it’s

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Spirits of G

old

r Calgary program fo e United Way th in e An at ip th nual ees partic ed by the 10 d it’s employ be nominat an to a d nn re ommunity va no C Sa r ho Each year, cting to You vanna was ry 2009, Sa r the Conne fo ua br ndraising ay fu W Fe d n of te . I nt ni and area Awards – U tantial amou n bs tio su ni e og th ec ns on old R was based silent auctio Spirits of G nomination bake sales, e, us iv io ign, dr tig pa od es m fo pr ca ipated in a Award. The n for every oyees partic contributio pl r lla y em a do an m nn al e the fin where Sava lp benefit th nna matches dollars to he cards. Sava ousands of th y and pledge an m ed we have rais orts. and together d Way supp te ni e U th ns tio za ni ga or

Savanna is committed to giving back to the communities in which we live by supporting a variety of charitable organizations: Calgary Handi-Bus Association; United Way; Children’s Wish Foundation; Urban & rural hospitals throughout the Province; Ronald McDonald House Southern Alberta; Kids Cancer Care Foundation of Alberta; 28

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ar ram each ye -Family prog -a pt rs do A so ipate in an rporate spon oyees partic ork with co pl w em ns of t its tio is d za ns ni co Savanna an ritable orga e hampers season. Cha hamper. Th a e as as id tm tm ov is is pr hr hr C receive a C groceries to during the g , as well as ing families tin rv ily m na se fa do de e by re th e of at to ensu ch member ees particip ea oy r pl

fo m a, s . E nn m ite e trimmings mpers. Sava Christmas ward the ha er with all th to nn rs n. di lla tio as do bu tm hris ntributing each contri delicious C list, or by co ed to double ch family’s amount rais l ta to e th items on ea ches in turn, mat

h Calgary Yout lp form the he to up ub cl ed for-profit is Oddy team es as a notvanna’s Chr CYDC operat e In 2005, Sa Th to high-level ).

C ss YD ce ac t Centre (C ckgrounds ba d an Developmen es t, and team all ag commitmen give kids of a hard-work, t, designed to ec sp , re ns is run on of of operatio in the areas ar t ye en h d xt pm te si lo it’s deve d has gradua e CYDC, in Hegwood, an h sport. Th ug hn ro od Jo th go ee k e or oy or w nna empl tly, many m sis by Sava , ost importan volunteer ba Year in 2010 etes, but m e hl th at of ce n an ze perform algary’s Citi uth.

C Yo as ’s w ry d several high ga oo al John Hegw behalf of C members. us efforts on community s tremendo hi of on iti a recogn

Impact Society; Alberta Children’s Hospital Foundation; Heart and Stroke Foundation of Alberta; Veteran’s Food Bank and Calgary, Red Deer and Edmonton Inter-Faith Food Banks to name a few.

Whether through our annual United Way campaign; Christmas donations to the Veteran’s Food Banks;

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uth Calgary Yo t Centre n e m p Develo

supporting the Adopt a Family program; providing customized training programs for our Aboriginal partners or newly arrived immigrants; or our mandate to employee local workers in all our satellite offices, Savanna tries to make a difference in the lives of those in our community..

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corporate to d te it m m co e ices Corp. is v r e S y youth and w g l r a e n in E ig r a o n b n a A r Sav

s intended fo e v ti ia n Alberta it r in e n th o r o ti a N c e u d th support for e ered through

ff o s ie r a s r u b Technology. r f o o s n te o tu p ti s s to In are proud TOR thern Alberta u NS COORDINA o S d n NER RELATIO a y g lo POOSE, PART o n LA NE h EE c TW e

Institute of T

Savanna Sc

holarship

wering , and empo developing r, fo ng ri s who have lues for ca for employee ion of our va scholarship a nn technical a va As a reflect at Sa a ary program introducing nd be co ll se e’ w st , ds people year of a po ill go towar ing the first allocated w s nd te nd at fu n e ith re w Th child university. fort to assist e school, or sts in an ef ad co tr n ,

io ge at e. iz lle uc al co child’s ed students re employee’s y of today’s an m en the eligible

rd of cial bu ced as part unting finan ing announ the often da to rship are be la ho sc ok forward w lo e w e ne bration and Details of th le ce ry sa th Anniver pient!

Savanna’s 10 its first reci e award to th g presentin

ral part of ugh the cent g ripped thro in od r to help flo de or sh 10, fla d damage. In an n On January io ct ru st eered in ing mass de oyees volunt stralia caus nna’s empl Au va , Sa ba h, m Sa at oo , vanna Toow the afterm Toowoomba up effort in flooding in d sh fla e th op in the cleanpr erty an en prior to and protect possible. Ev g sand bag truly in s, lp rt fo he ef in f any capacity ra relie the ean up and were out in dition, sly in the cl employees values. In ad king tireles s a’ or w nn e va er w Sa d by an ng ds di effort. oo f an ih st lie d livel assist the re an spirit an s it could to g great hum ie tin lit ra ci st fa d on an dem equipment nated what Savanna do

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Australian f e li e Flood R Effort

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be a e enough to en fortunat be s ha a g in for ars, Savann rdable hous st several ye oviding affo pr of on si Over the pa left their anity’s vi occasions, itat for Hum a couple of on s, ha part of Hab mer and f m af . Our st cked up a ha ged families industry, pi es ic . These rv es underprivile se m ho gy g s in the ener constructin tie to s du r nt la le ta gu ho don le re and those w considerab vanna staff d lent their Sa an , by w sa ed e ill ’v played sk well attend d to say they always very emely prou ad tr ex e ar events are e ili m es a he r caus help give fa ts for anothe ren. ill hopefully ild w ch at r th their hard ha ei th ng hi selves and ilding somet tion for them a part in bu solid founda a ng di fin start in

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ntries and u o c w e n to g gin expandin e b d embers in n m a e w v o ti r c g a e e w m As co

r ntinue to be o c to is t n te local staff fo r in u r o u o to , s k n o o lo locati We’ll need to . s ie it ut how and n o u g m in m d o n c fi w to d these ne look forwar

h c u m y r e v ce in Texas, e n w e r d n fe a if , d n a o ti e ak direc back and m , e iv g montagne to y tr Dwayne la n a c

e . g w n e ti r a e r wh er pe ever we’re o ve Vice President and Chief Development Offic r e h w — a b Executi

in Toowoom

Savanna also encourages our employees to volunteer their time for community service activities (Habitat for Humanity, United Way, etc.). In order to promote this, Savanna organizes opportunities for team-building/ volunteer events for employees to participate in. Savanna is also a member of Canadian Blood Services Partners

for Life Program, which encourages employees to donate blood. Additionally, Savanna is a Corporate Sponsor and participant of Calgary Corporate Challenge, which is a volunteer-driven, Olympic-style event that promotes team building, boosts employee morale and company pride, while at the same time raises funds for local charities.

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products and services / 06

Deliver today.

Prepare for tomorrow.

S ava n n a’ s p r o d u c t s & s e r v i c e s

Drilling

Well Servicing

Rentals

W e h av e b u i lt a s t r o n g b u s i n e ss b y d e l i v e r i n g t h e e q u i p m e n t a n d s e r v i c e s o u r c u s t o m e r s n e e d , s o m e t i m e s b e f o r e t h e y e v e n k n o w t h e y n e e d i t.

By keeping a close eye on the market conditions and client requirements for drilling, well servicing and rental equipment, we have consistently maintained and delivered outstanding services and an industry-leading fleet of equipment.

Over the last decade, Savanna has worked hard to develop leading technology and mutually beneficial relationships with our customers. This work has uniquely positioned Savanna to continue strong growth in all facets of our drilling well servicing and oilfield rental services.

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Drilling

+ 100 Savanna Drilling Rigs Total

our fleet

5 40 8 50 2 Coring Units

Hybrid Rigs

TDS-3000 Rigs

Telescopic Double Rigs

Heavy Triple Rigs

*16 scheduled for TDS-3000 reconfiguration

1 Million Feet – Rig 641

On September 17, 2010 at 3:30 am, Savanna drilling rig 641 reached 630 ft. on Bohannon 36 #5 in Midland County, Texas.

In doing so, tool push Brian Zulke and his crew drilled one million feet for one company, Henry Resources LLP – a monumental milestone!

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641 was the first rig we sent to West Texas.

Congratulations to all of Savanna’s Odessa employees for helping with this significant achievement in Savanna’s history.

Gordon Wills, Operations Manager

Savanna Energy Services Corp.

Conventional Telescopic Double Drilling Rigs

In 10 years Savanna has grown to own and operate one of the newest fleets of conventional drilling rigs in the world, providing efficiencies that compliment high service levels and result in greater utilization. Features like top drives, automated pipe-handling (Iron Derrickman, Iron Roughneck) mobile designs (fewer loads, faster rig-up times) larger pumps and AC electric technology on newer units compliment our rigs.

Geographically diversified throughout Canada and the United States, our telescopic doubles are capable of drilling depths of 2,500 to 4,300 m (8,200 to 14,100 ft.) while our triples are capable of depths of 5,000 m (16,400 ft.). Savanna’s fleet of deep rigs excels in oil and deep shale gas plays across North America. Savanna has operated its deep doubles in the Williston Basin; Permian Basin; Barnett Shale; Bakken Formation; Marcellus Shale; Horn River Shale; Utica Shale; and the Doig/Montney Formation.

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TDS -3000

Built for the medium depth market, the TDS-3000 significantly expands Savanna’s fleet coverage by meeting needs from shallow to medium depth markets such as the Viking, Cardium, and lower Shaunavon Play, with potential to access many of the US shale plays as well. At the same time, the unique mobility characteristics of the rig also make it very efficient at drilling wells as shallow as 800 m.

This rig’s design is also a reflection of Savanna’s ability to adapt. This new Top Drive Single (TDS) is capable of reaching depths of 3,800 m (12,500 ft.) and is built from the foundation of Savanna’s Hybrid fleet. A re-configuration of less active Hybrid rigs has enabled Savanna to diversify its offerings and already there is a very high demand for the TDS-3000 platform due to its many features and benefits.

Employing top drive technology, these rigs are highly mobile and capable of running up to Range 3 pipe for efficient drilling and fewer connections. With a TDS-3000 slant rig in development, the growth in this portion of Savanna’s fleet will be substantial over the next few years.

Hybrids

Early in the decade, Savanna designed and patented next-generation hybrid units which have the capacity to drill with coiled tubing or with a jointed drillpipe using conventional top drive off of the same rig. The conversion from coil to conventional drilling is accomplished in the field without any measurable cost or downtime. These units also have the capacity to drill and pre-set casing. The design was revolutionary on its introduction, and remains so today.

Savanna’s Hybrid units also combine state-of-the-art pipe handling capabilities with an innovative continuous pipe handling system, designed to simplify and streamline both jointed pipe and coiled tubing deployment for shallow drilling operations. Savanna is far and away the largest hybrid drilling operator in the world.

All Savanna hybrid rigs experienced extremely high utilization levels since being introduced, setting records for wells and metres drilled in 2005/2006 and catapulted Savanna into its place as a major player in the drilling industry in Canada. Over the years, Savanna has

32 8 First Generation Hybrid Rigs (CT1500) – capable of drilling up to 1,500 m vertical with 2-7/8" coiled tubing or 1,200 m with 3-1/2" drill pipe.

Second Generation Hybrid (CT2200) – capable of drilling up to 2,200 m vertical deep with 3-1/2" coiled tubing or drill pipe.

aggressively expanded its fleet of hybrid rigs to meet customer demand, and has recently introduced two third generation Hybrid rigs specifically designed for the Coal Seam Gas market in Australia. While shallow drilling has seen muted activity in recent years, the Savanna hybrid platform remains the “go to” fleet for such drilling.

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Well Servicing

+ 100 Workover Units

customer focused, built for purpose

3 8 2 Third largest service rig provider in Canada

Locations in Canada, the US and Australia

Of the world’s newest and most advanced workover rigs

W ell S erv i c i n g

A core of Savanna’s business for a decade, Savanna Well Servicing is well situated throughout western Canada, the United States, and Australia. Offering some of the safest and most technologically advanced equipment in the industry, the well servicing group has provided Savanna with steady revenue through good times and bad. With one of the largest service rig fleets in Canada, a growing US and International presence, and conveniently located operational and manufacturing bases, Savanna Well Servicing is able to offer a great tradition of service and value on a scale that meets the growing demands of today’s oil and gas explorers.

Knowledgeable and experienced management; professional crews; a wide variety of new, light-weight, technically advanced well servicing rigs; in-house repairs,

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refurbishments, and fabrication—all of these elements combine to create one of the safest, and most efficient well operations in the world.

Starting out in Alberta, we’ve grown organically in B.C., Manitoba, Saskatchewan and North Dakota, and most recently in Toowoomba, Australia as well. Savanna Well Servicing covers the Western Canadian Sedimentary Basin, the Williston Basin, and everything in-between like few other oilfield services companies.

Our latest PLC controlled rigs employ many features that are a first in the industry, including working floor Human Machine Interface (HMI), autodrill, safety redundancies such as dual encoders, and remote access allowing technicians to troubleshoot problems from around the world via satellite uplink.

+ 100 Savanna 10th Anniversary

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Rentals

Years of Industry Experience

oilfield rentals compliment our service offerings

4 1

Locations in two Provinces

1000

Great team of experienced professionals

Over a thousand rental items to choose from

D & D O i l f i e l d R e n ta l s

D&D Oilfield Rentals became a part of the Savanna family in 2008. D&D compliments Savanna by offering an array of equipment and services that anticipate and exceed customer and industry requirements.

Based in Redcliff and operating in Lloydminster, Alberta as well as Weyburn and Swift Current, Saskatchewan, D&D specializes in downhole tools; handling equipment; matting; light towers; pipe; tanks; annulars; pumps; wellhead accessories; trailers; hotshot trucks; receptacles; and boilers.

lloydminster

Redcliff

swift current

weyburn

The addition of D&D and their team of great individuals has created a foundation for Savanna to become a truly comprehensive energy services company. D&D Rental Equipment, marketed and operated directly, as well as through, Savanna’s drilling and well servicing platform.

D&D represents a small platform today, but our plans to expand the business tenfold remain firmly in place.

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i n n o v at i o n / 0 7

Savanna is in the business of drilling holes better than anyone else.

The spirit of finding a new way, a better way, fuels Savanna’s growth.

We bring together the best people for the job, search for and develop premium technology and infuse everything we do with the freedom of flexibility. We excel because we are always, and we mean always, innovating.

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“We can have as many as many as 3,000 people in the field operating our over 200 drilling and well servicing rigs. Add 19 field locations with up to 10 people each and throw in the 80 full-time staff at our corporate headquarters in Calgary.

That’s a lot of great people with a lot of great ideas.”

We would never have even left the starting gate without our people, their drive and ideas.

From the handful we started with ten years ago to almost 3,000 today, we rely on the interest, ingenuity and intelligence of our employees.

When we faced severe staffing shortages, we found excellent new people through immigrant and Aboriginal training programs. When we faced a downturn, we shifted valuable personnel into training, development, and engineering. We partner with our communities and develop neighbors into valuable employees.

Savanna has worked with the Calgary Catholic Immigration Society for seven years to help newcomers to Canada overcome language and other barriers to find work and integrate into society.

Along with CCIS, in 2010 we launched the first privately funded immigrant training program in Canada. Our Rig Training program provides new Canadians with classroom and hands-on training as well as all the safety certifications they need to get to work. We’ve been impressed with their level of skill and commitment and we are pleased to offer graduates a job – which helps them and helps us relieve the pressure of labour shortages.

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Program (see page 23), and we are proud of the comprehensive COACH program we have developed to create a safety first approach to work in every capacity.

Savanna believes in the experience and ingenuity of every single person we hire. We encourage our accountants, engineers, rig technicians and everyone in between to share their ideas and help foster our growth.

We also make sure all of our people have access to career development and training. Not only is that critical to ensure employee growth and satisfaction, it’s instrumental in helping Savanna maintain our competitive advantage.

Savanna’s Career Development and Training offers employees a variety of options such as Formal Career Development (Certificate, Designation or Diploma) or Informal Career Development/Training.

We believe strongly in helping our employees be the best they can be. Our ongoing innovation depends on it.

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i n n o v at i o n / people and technolo g y

“With technology changing almost every day it makes you wonder what the next 10 years will bring. You see pictures of 20 year old equipment and it looks almost antique compared to some of the equipment we have today.”

From the very beginning, we have invested a significant portion of our operating cash flow into technology.

While most equipment in the industry is at least 25 years old, virtually all of Savanna’s fleet was built in the last decade.

Our constant and unwavering commitment to seeking and developing practical innovation is a key reason we are able to meet our mandate for growth.

We manufacture built-for-purpose rigs and tailor our fleet as needed. We have brand new and highly mobile telescopic doubles; our patented Hybrid rigs offering two types of drilling in one. We have the newest PLC controlled well service rigs in Canada.

We have rigs with 4,300 m depth capacities that can move locations and set up in less than a day; rigs that can switch from coil tubing to pipe in under 10 minutes, and rigs with better functionality for faster operations and less downtime.

In 2005 and 2006, Savanna’s Hybrid rig fleet quickly gained a reputation as being the rig of choice, setting records in both metres drilled and wells drilled.

was well into the production of three new AC telescopic doubles. These new rigs—651, 652, and 653—incorporate leading edge AC electronic technology and have consistently achieved above-industry utilization rates.

In 2010, we challenged our drilling team to refresh our under-utilized fleet of Hybrid rigs. The result was the trademarked TDS-3000, a 3,000 m (3,800 m horizontal) automated single based on a re-configuration of our Hybrid rigs. The TDS-3000 is capable of drilling with Range 3 pipe, and employs a top drive innovative catwalk, and iron roughneck for speedy and safe connections. The new rigs are finding huge success in Alberta’s Viking and Cardium plays, but have application in a broad swath of drilling opportunities in North America and beyond.

Savanna will always pursue practical, economic innovation. Because it always pays off.

In 2007, as the shallow gas market tapered off and the demand for rigs with deeper capabilities grew, Savanna

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Where people, technology and flexibility come together

Innovation in Action: the TDS-3000 “We’ve got this hybrid platform, how can we re-invent it to make it demanded by the industry; not just a rig that will hopefully go to work, but a rig that actually satisfies the needs of industry today and in future” Ken Mullen, Savanna CEO

As shallow gas well drilling declined, Savanna was faced with a mainly idle fleet of Hybrid CT-1500 drilling rigs.

We needed to take this asset and reconfigure it into something for the evolving demands of our customers.

Bakken, Permian Basin and Marcellus Shale plays,” says Savanna CEO Ken Mullen. “The biggest advantage of these rigs is they’ve got pretty significant depth capacity – 3,000 m vertical, 3,800 m horizontal – off a very small platform.”

Savanna’s operational and design teams got to work. Using key components and ancillary systems of the Hybrid rig, they created the TDS-3000 drilling platform. The mud pumps, engines and other components of the Hybrid rig are built for a 3,800 m capacity, a requirement for the high-speed drilling with coil that the hybrids are famous for, and are also perfect for the deep single conventional market.

Customers love the TDS-3000. It has a smaller footprint, it’s easier to move and it has lots of power and capacity – just what they were looking for.

“The TDS-3000s are a really good fit in the Viking, Cardium and Shaunavon plays, as well as in portions of the

The first two refurbished rigs started operations for Cenovus Energy late in the fourth quarter of 2010. Based on anticipated demand, we are re-configuring up to twenty more units by the end of 2012.

Innovation is simply not possible without flexible thinking. Our ability to change our thinking and adapt our practices has given us stability and created our growth. Savanna is a leader in the energy service industry because we embrace the responsibility of forging ahead with new ideas.

Ten ways we walk the innovation walk 1 > R efurbishing rigs to

in building meaningful

and maintain high

partnerships with

utilization rates.

2 > W e developed the COACH

around the world to

the forefront.

capture their spirit in our

status quo. We always want to hear a better idea.

4 > We started the first privately funded immigrant training program of its kind.

5 > A s the global economy

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First Nations.

7 > We included our people

program to keep safety at

3 > We never settle on the

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6 > We lead the industry

meet customer demands

new ‘Vision and Values.’

8 > We build new rigs and seek out better proven technologies.

9 > We know the only constant is more change.

10 > We designed a new logo with a stylized circle

contracted, we continued

to represent our

our plans to expand.

global presence.

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We thrive on shifting our plans and coming up with better ones. When the global recession hit, we redeployed rigs to different areas in North America and expanded into Mexico. When our Mexican contracts ended prematurely, we redeployed those rigs immediately to the US and moved ahead with expanding into Australia.

Things change. We anticipate and react.

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SAVA N N A 44

Life as an energy services provider is full

Savanna has lasted 10 years in the oil and

of peaks and valleys. It’s the successful

gas service industry by understanding the

companies that don’t get too high and

industry is volatile by nature. Yes we’ve

don’t get too low; understanding the

made mistakes, but from them we achieve

entire time the contrary strategy of saving

maximum value in the lessons those

in bull markets and spending in bear ones.

mistakes provide.

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excelling in a commodity driven industry / 08

Staying the course

Over the years we’ve narrowed our scope but expanded our output within that scope. Refining and solidifying our business offerings to strictly drilling, well servicing, and oilfield rentals, we are now able to use this platform as a base of strength from which to operate. We are

Yes, we drill wells and we service wells

spreading out to different parts of the

– but how we drill them and where

world and encouraging our people to

we drill them, and how we support this

inject innovation into our existing service

undertaking with ancillary services, is

lines and our approach to safety.

what sets us apart.

CO M M O D I TY I N DU STRY

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what will Savanna be in 20 years?

In 40 years?

apply one philosophy to the entire company

l isten to ideas and suggestions

where is the energy services industry headed?

strive to apply similar fundamentals to separate business units regardless of differences in service

take calculated risks on innovation respect the old and new with equal measure

what sets Savanna apart from a process perspective as opposed to an outcome perspective?

Romeo Staub started his career with Savanna in the spring of 2001 as a general labourer fabricating the first Great Plains well servicing rigs. Since then Romeo has moved up to the Shop Foreman and then Purchaser/Foreman position with Savanna Well Servicing, based out of our Lacombe location. This spring Romeo will celebrate his 10 years with Savanna as he’s been with the company since the first few days of operations.

“I’ve stayed with Savanna over the years because through working here I’ve met plenty of awesome people to share my work and life with. The variety in my positions over the years has kept me interested, and the support shown to me and my family when my daughter had a traumatic incident one year ago was amazing.

Savanna has been, and will continue to be, a great company, and as the years go by we’ve become much safer in step with what is happening in our industry.

SAVANNA

I would like to say that it has been an honour to work for Savanna and I feel lucky to have found this company to work for. I look forward to many more years of success for us.”

Romeo Staub Purchaser/Foreman

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DON’T SET LIMITS

DEVELOP INTERNALLY

OFFER VALUE ACROSS THE BOARD

ASK LONG-TERM QUESTIONS

TRUST OUR PEOPLE recognize value in employee input

identify and recognize talent

n where you o operate

reward loyalty

n what you can o accomplish

set good examples

on who you can help with your vision and values

what makes Savanna successful is not what we do, but how we do it

The ten ways Savanna excels in a commodity driven industry

PRACTICE DISCIPLINED DIVERSITY

CELEBRATE THE GOOD AND LEARN FROM THE BAD

ADHERE TO OUR VALUES

HAVE FUN

RE-INVEST IN THE COMPANY

P E A K P E R FO R MA N C E make smart capital expenditure decisions

life is too short

train and promote people who express interest in different roles

demonstrate your values every day in what you do and how you do it support your communities and set an example

build loyalty

recognize and communicate successes study and dissect shortcomings teach how to overcome adversity

be as creative and flexible as possible within the framework of your business maximize your potential but don’t spread yourself thin

be patient

Savanna is grateful to each of these proud companies as they have contributed immeasurably to our success and growth over the years.

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People

Fleet

#1 2003, Savanna builds six more Hybrid drilling rigs #2 2004, Savanna adds 12 new drilling rigs, six new wireline units, and two new service rigs #3 2005, Savanna has over 1,000 employees #4 2006, Savanna merges with Western Lakota #5 2006, Savanna expands to Odessa, TX #6 2007, Savanna expands to Carlyle, SK #7 2008, Savanna expands to Houston, TX #8 2009, Savanna expands to Poza Rica, MX #9 2010, Savanna has over 3,000 employees #10 2010, Savanna expands to Australia

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Plays

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With our well-trained people and top-notch equipment, Savanna has become one of the leading players in the oil and gas services industry.

First it was Alberta. It started in spurts and soon all that would eventually become Savanna scattered in various locations from Grande Prairie to Medicine Hat. Then came Odessa, Texas followed by Carlyle, Saskatchewan. Then back to the United States in Houston, Texas’ oil capital.

From Houston we spread east to Louisiana and north to North Dakota. The next move was further south and into a new country: Mexico. From Mexico, we left the continent in a big way to the land down under, opening a head office for our Australian operations in Brisbane and a field office in beautiful Toowoomba.

In terms of assets, the totals have accumulated exponentially as well. From no assets in 2001 to over 100 drilling rigs spanning across shallow, mid-range, and deep platforms.

There are over 100 of the newest service rigs in operation in three countries, and a full service oilfield rentals business with four locations in two provinces. Savanna has acquired a significant asset base in an incredibly short period of time. Currently hovering around $1 billion, with Savanna’s equipment base still growing rapidly.

And finally, our people. From four to over 3,000. Wow. Savanna takes pride in the fact that it has been able to provide jobs and opportunities for people of every background across Canada, the United States and now Australia. The goal from day one was to build and maintain a sustainable company that gives back to the communities in which it operates, and after 10 years we’re proud to say we’re doing it better than ever.

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Savanna’s solid position in Canada was established in Alberta in 2001, and now has a strong foothold in the US. The North American oil and gas industry will continue to offer opportunity while we expand our industry-leading service fleet into new international markets.

Canada

In 2011, Savanna is entering the coal seam gas (CSG) market in Australia with two third generation Hybrid drilling rigs. Don Goldade (pictured left) who co-designed Savanna’s first generation Hybrid rigs, stands with Field Superintendent Steve Kitzul in Toowoomba, Australia.

Behind them is Savanna’s newest Hybrid (third generation).

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Savanna Energy Services Corp. is Alberta born and raised.

Based in Calgary, Savanna has its foundation in domestic operations and has grown to have field offices across three provinces. Ultimately, after refining our offerings to strictly oilfield services via conventional drilling, hybrid drilling, well servicing and oilfield rentals, Savanna has seized the opportunity to expand and now has head offices in Houston, Texas and Brisbane, Australia as well as several field offices throughout the United States. With a fleet of drilling and well servicing rigs that are among the newest in the world, and with our commitment to talent and technology, we have obtained a strong foothold in Canada and look to continue doing the same internationally in the coming years.

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e x p a n s i o n / pla y s / from shallow to deep – ba k k en to br i sbane

Cardium play: Central AB

Rig type: TDS-3000, Telescopic doubles / Light, sweet crude

Oil Sands: Northern AB

Rig type: Hybrid CT-1500, CT-2200 / Heavy oil, bitumen

Doig/Montney formation: West/Central AB Rig type: TDS-3000, Telescopic Doubles / Natural gas

Lower Shaunavon: Southern SK Rig type: TDS-3000 / crude

Viking play: Central AB, Central SK Rig type: TDS-3000 / crude

Horn River shale play: Northern BC

Rig type: Telescopic Doubles / Natural gas

Barnett shale: Fort Worth, TX

Rig type: Telescopic Doubles / Natural gas

Marcellus shale: Northern PA

Rig type: TDS-3000, Telescopic Doubles / Natural gas

Bakken formation: Williston Basin, ND, MT and Southern SK Rig type: TDS-3000, Telescopic Doubles / Light, sweet crude

Haynesville shale play: LA Rig Type: Heavy Triple / Natural gas Surat Basin, Undulla Nose region: Northern Australia

Rig type: Hybrid CT-2200 / Coal Seam Gas (CSG)

Un i t e d stat es

Austr ali a

Savanna’s operations in the US have experienced dramatic growth over the last several years, and the future of Savanna’s US operations is very bright. The customer base has expanded dramatically and longer term contracts are being brought to bear. As the price of oil continues to dominate, the positioning of the US operations is ideal.

With a drilling and well servicing season that never ends, high commodity prices and superior performance, the US operations are poised to grow dramatically. The Savanna name around the US is being associated with performance and professionalism and the companies here are hungry for more!

Savanna has expanded its operations internationally, opening a head office in Brisbane and a field office in Toowoomba, Australia after securing a five-year contract with Australia Pacific LNG. Savanna will operate among the newest rigs in the country, with two built-for-purpose service rigs and two third generation Hybrid rigs, and plans to expand its fleet to more than eight rigs by early 2012. Savanna is committed to utilizing local workers and vendors wherever possible, and anticipate continued jobs and business growth for the local community as our operations grow. 2011 is an exciting year for Savanna’s operations in Australia as we look forward to proving our industry leading technology in one new market, as well as other potential markets around the world.

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Savanna continually attracts some of the industry’s most qualified and best-performing people. We can do this because we offer the latest and best technology, comprehensive training and safety standards, and opportunity for long term advancement.

In conjunction with Savanna’s vision of “defining leadership in global energy services”, we take steps every single day to personify our belief that people are our number one asset. As a global drilling, well servicing, and oilfield rentals provider we recognize that the most important element of what Savanna offers our customers is exceptional service on every level. In order to provide this, Savanna must maintain a highly skilled employee base in a seasonal and market driven industry. This is a constant challenge—one best met by innovation on every level.

In order to meet the demands of our growing workforce, Savanna’s HR department plays a valuable role in ensuring we are a desirable place to work so that we can attract a continuous flow of new people to help us grow.

“Savanna aims to hire people who want to establish or further develop a career in the energy services industry.

We are in this industry for the long term, and we want our people to be with us long term.”

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Best Wor kplaces Canada

Savanna competes yearly in the “Best workplaces in Canada” workplace survey. The Great Place to Work Institute is a research and management consultancy based in the US with International Affiliate offices throughout the World. We are able to take advantage of their ongoing research, measurement tools, and educational services to aid us in building a high-trust workplace through access of their extensive database of Best People Practices.

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Growing from four to in excess of 3,000 employees in

ten years is quite an accomplishment, and I did not expect we would be that size today. With that said, I never thought we would have the people that could help us grow the company that quickly.”

I think Savanna is going to continue to be a leader in innovation through our businesses. By focusing on that area, I see this company broadening its basis of operations beyond Canada, US and Australia.

We will keep growing as long as opportunities are there, and that they are proper for this company. At the same time, we won’t grow for the sake of growing.

2010: Team of over 3,000

I like having the ability to work with people who founded this company and to also work with those who I have worked with before. I also enjoy working with the great new people that we have added to the company since then; this is what keeps me motivated every day.

George Chow, Executive Vice President, Corporate • A n average drilling rig runs two crews of five to six people. An average well servicing rig runs one crew of six people. To counter days off and vacation days you need a relief pool of skilled Rig Technicians from Leasehand to Rig Manager.

• A t 100 percent utilization, Savanna can have over 200 rigs drilling and servicing wells which translates to approximately 2,800 employees in the field.

• A dd 19 field locations averaging six to ten people and Calgary corporate headquarters with 80 full-time staff members and you have a significant number of people.

• Savanna employs over 3,000 people at peak activity.

COAC H P r o g r am

In-Touch wi th Em ployees

The COACH program is a multifaceted approach to safety and its goal is empowering employees to make the right decisions without fear of reprimand. With COACH, Savanna emphasizes incorporating safe thinking into an employee’s skill set, and the training provided is designed to produce results through actions: Each employee is instructed to apply safety to the analysis of every task.

Savanna’s HR department conducts internal employee satisfaction surveys to assess the pulse of the organization, and to determine future improvements on developing its own company’s capabilities. Results are discussed with the employees and action plans are communicated to the staff, addressing any issues or concerns that have been identified through this process.

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Savanna has spent the last ten years building the newest and most capable fleet of equipment, evolving the technology to meet and anticipate industry needs, all while remaining a strong business in the face of prevailing market conditions.

Our fleet is diverse and can respond to a variety of different market demands, enabling us to capitalize on whatever the market may bring. We have equipment operational in heavy oil; CSG; shallow gas; shale gas; as well as in virtually every major play on two continents.

The mobility of our fleet combined with our drilling and well servicing expertise makes it extremely economical for our customers to operate across North America. In the United States we have rigs capable of outperforming in every major play. In Canada, our customers recognize Savanna as a driller of choice from Quebec to the Horn River basin in British Columbia. In Australia, we are excited to prove to yet another market that Savanna is committed to providing exceptional service and technology to our customers worldwide.

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Dr i lli ng

Savanna Drilling offers an extensive fleet of new and technically advanced drilling rigs for virtually all depth ratings. With a fleet of 100 world class rigs, Savanna has been providing energy companies operating worldwide with exceptional people, exceptional equipment, and exceptional value since 2001. Representing the third largest drilling fleet in Canada, Savanna Drilling has operational bases throughout Canada, the US, and Australia.

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Telescopic conventional doubles

TDS-3000

• Savanna has rigs capable of well depths of 2,400 m (7,900 ft.) – 4,500 m (14,800 ft.)

• Highest ratio of top drives in the industry • 346 mm 35,000 kPa BOP equipment is also available • Self leveling substructures eliminate the need for rig jackers • The unitized design of the Savanna drilling fleet minimizes the need to cross train crews to run the various rigs

• Depth ratings to 3,800 m (12,500 ft.) TVD • Capable of running range 3 pipe (meaning longer joints for faster drilling) • Hydraulic pipe skate for pipe storage and handling • FDS topdrives with 300,000 lb hookload capacities • Extremely mobile and compact, fast rig out/up, and small site footprint • Iron roughnecks for faster, safer connections

Well servicing

Hybrid rigs

• Free Standing Mobile Singles and Doubles • Operational bases in Alberta, Saskatchewan, North Dakota, and Toowoomba, Australia • Our newest rigs feature HMI, and PLC controls • Fleet can accommodate wells 500 m (1,600 ft.) – 3,600 m (11,800 ft.), Class 3 and sour

• Depth ratings from 1,500 m (5,000 ft.) – 2,200 m (7,200 ft.)

• Drilling efficiency optimized in climate controlled doghouse with joystick controls • Pipe handling system feeds top drive with 102 mm (4 in.) 13 m (45 ft.) range 3 drill pipe for high speed conventional drilling • Coil injector and integral top drive provide 100% flexibility in drilling

We l l S e rvi ci n g

Oi lfi eld Rentals

Savanna Well Servicing is ideally located throughout western Canada, the United States, and Australia, offering among the safest and most technologically advanced equipment in the industry. Savanna Well Servicing is able to offer a great tradition of service and value on a scale that meets the growing demands of today’s oil and gas explorers.

D&D is an oilfield equipment and tool rental business catering to both large and small companies in the oil patch.

D&D provides the foundation to help make Savanna a more versatile and well rounded company overall. With the opportunity ahead to expand and offer oilfield services to our customers, and better support our drilling and service rig divisions internally, D&D Oilfield Rentals has substantial growth potential in front of it.

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1,200

1,100

1,000

900

800

700

600

500

400

300

200

Savanna’s financial strategies have delivered results to our stakeholders from day one because we are responsible in our approach – from capital expenditures to mergers and acquisitions to deployment of assets to fleet management and maintenance — we always deliver on our promises.

For the last ten years, our financial foundation has been a strong balance sheet. Savanna has always been growth oriented – reinvesting in our fleet of equipment to grow revenues, operating margins and operating cash flows over the long term.

Other than 2009 – one of the lowest points in oilfield services history – Savanna’s key financial operating metrics have improved every year. In 2009, we persevered by aggressively reducing the cost structure without lowering permanent staff levels.

Heading into the next decade, we are financially well poised to execute a number of strategies and initiatives, including revitalizing our hybrid drilling fleet through retrofit and relocation.

We have 10 years of successes and knowledge under our belt. We will examine the past honestly and build the future accordingly – a future that embraces change, technology and expansion.

Savanna’s primary objective in managing capital, given the cyclical nature of the oil and gas services business, is to preserve our financial flexibility in order to benefit from potential opportunities and maximize returns for Savanna shareholders.

We prudently manage the capital generated through internal growth, optimize the use of lower cost capital, raise share capital when required to fund growth initiatives and maintain a conservative approach to safeguarding our assets.

We can’t anticipate all eventualities, but we can maintain a conservatively leveraged balance sheet with a debt to equity ratio below 0.50. In ten years, Savanna’s debt to equity ratio averaged 0.17 and never exceeded 0.30.

At the end of 2010 our net debt was only $34 million on $898 million of capital assets.

100

000 2001

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Savanna Energy Services Corp.

2003

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2005

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Delivering on our promise 4 > Generated $540 million in

In 10 years we have:

1 > R aised $300 million

5 > Expended $886 million on

in cash and turned it

into $900 million of hard assets

in revenues

3 > Generated $704 million in operating margins

balance sheet; debt to

10 > B uilt a sustainable,

million of operating margin

vibrant organization

per drilling rig

focused on the future

8 > Earned an average of $3.9 million of operating margin per service rig 9 > B ecame the 3rd largest

equity ratio of 0.14 at the

end of 2010, average of

0.17 for the ten years

and the 7th largest in

and never exceeded 0.30

North America

driller in Canada,

Tangible assets

Market Capitalization

Revenue

$ Millions

capital assets

6 > Conservatively leveraged

2 > Generated $2.2 billion

7 > Earned an average of $9.5

operating cash flows

2006

2007

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In 2001, a handful of people started

10 years have come and gone, and

Savanna Energy Services Corp.

in that time we’ve been diligent in

with a few rigs and one ambitious

building upon successes, attracting

plan. Others brought their vision,

employees, and accumulating assets

equipment and ideas to the team and

to establish a platform for the next

in 10 years have taken this company

10 years.

from one province in Canada to three countries and counting.

Over the last decade we’ve attracted over 3,000 employees and collected nearly $1 billion of

We’ve expanded from one province to two continents and three countries. We’ve strengthened

the most innovative technology in the industry. We’ve been through the booms and the busts,

our commitment to building strong relationships and delivering excellence. We’ve never—not for

experienced our share of obstacles and enjoyed countless achievements,

a second—lost sight for our mandate to develop a profitable sustainable business.

but you ain’t seen nothing yet.

Ten years later, we’re just getting started.

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Over the last 10 years, Savanna has established itself in a volatile industry by embracing challenge and adapting to change.

We’ve seen many milestones and mergers, survived slowdowns and celebrated successes.

It’s been quite a ride.