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www.oilgas.netJune 2009 Volume 10, Number 3

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Publication Mail Agreement No.:40039458

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June 2009 Volume 10, Number 3

Contents

PhotocourtesyofInmarsat

Oil & Gas Network, Ju

5 Giving Employees a Voice7 Coll’s Corner - A Time to Fight Back7 12th Annual BC Natural Gas Symposium8-9 The 4th Oil Recession10 Wellons Canada Supplies Gas Fired Heaters for Oil & Gas

Projects10 Next Dimension in Offshore Oil Exploration - Airborne

“ De-Risking” Surveys11 Honeywell Joins Nort h America’s Largest System

Integrators Organization11 How Companies Can Optimi ze Their Access to Capital12 Energy industry to help fight for the cure during Go-EXPO14-15 Ziff Energy Launches 1st International FPSO Operations

Study to Assist Operators Enhance Operating Efficiency15 Retrofits Make Economic Sense - In a time when

efficiency matters16 Study Finds 2008 Global Upstream Oil & Gas Transaction

Value Fell 32%, with Canadian Total Plunging 68%16 Alberta’s been here before: Say hello to 1980s deficits16 Commodity Price Recovery Anticipated into 201017 Corporate sustainability reporting remains an issue for

Canadian companies: PwC and FEI Canada Study

19 ACTive Matrix Enables Effective Openhole Stimulationin Western Canada

21 Wireless Solutions that Extend your Office into the Field21 Rogers Expands its Most Reliable Wireless Network

in Alberta22 A new generation of technology providing t rue global

coverage24 ABB Automation & Power World 2009 breaks attendance

records25 Globalstar Announces Launch of Smartone Satellite-Based

Asset Tracking Management Solution25 Winegard Special Products’ Next Generation26 Expro to Expand Presence in Alaska with New Permanent

Base26 WellEz launches WellEz On-DemandTM, an integrated

support program that enhances the WellEz.NETreporting system

26 Record numbers bid on equipment in unreserved RitchieBros. Grande Prairie auction

27 Predator™ Dri lling System from Atlas Copco DrillingSolutions

27 “ Don’t Buy Gas Detectors” Theme Introduces GasDetection as a Service

28 Western Canada Natural Gas Production Outlook to 202028 Alloy Screen Works introduces new premium sand screen29 Dresser Waukesha Introduces High-Performance Engines

for Gas Compression Market29 New SWT series30 Flir Announcement30 Specialized Hardbanding System

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Oil & Gas Netw ork , Jun

There are a lot of things that industry is doing right, and a lot that industry is doing wrong,say the employees of PSAC Member companies, and in both cases employees need a lotmore information than they’re getting. That’s the message that came through loud and

clear from employees in a PSAC survey conducted of Member company employees.The survey, which incorporated the views of over 1,200 respon dents – a re spectable repre-

sentation of the PSAC member company employee base, was conducted as a means to listen toindustry’s own workers on their views of the industry and that of their friends, family, and com-munity members in places where they work. The survey provided an opp ortunity for employ-ees to voice th eir opinions, share their concerns and provide valuable information on a numberof key indicators.

The survey was undertaken through PSAC’s Public Perception Program, on the premise that,with 88 p er cen t of Albertans supp orting royalty hikes, it was clear that some of those pe ople hadto work in or with the oil and gas industry. The PSAC Board felt it was important to give theseworkers a voice to better understand the ir mindset and to show them first hand that industry islistening.

“Our workers are both the backbone and the frontline of our industry. They are the ones in-teracting with the greater community on a daily basis, and they have a tremendous potential tobe our first line of defense in protecting industry’s social license to operate,”says Roger Soucy,PSAC President.

Overall, it was apparent that workers hold the industry in relatively high regard, but feel thattheir family, friends, and members of the community do not view industry as favorably.Interestingly, a majority of survey respondents (79 per cent) are concerned about this. Workerscited a lack of awareness and understanding of the industry as one of the root causes behindthis issue and called for greater industry outreach and communication to remedy this.

When it comes to understanding industry’s economic contribution, employees indicatedthat both they themselves as well as the general public understand and value the contributionthat industry makes in terms of employment, economy, and investment to local communities. Itwas also noted that industry’s products are also highly valued.

At the same time, workers indicated a number of questions that they receive in their dailyinteractions, which most felt ill-equipped to answer. Such questions included those related togasoline pricing (keeping in mind that th e survey was conducted when gasoline prices wereat an all-time high), industr y’s environm ental impac t, royalties, why record profits from t he E&Psector don’t appear to trickle down to b enefit employees and communities, and what its liketo work in the industry. Respondents also indicated that they he ar a lot of questions and con-cerns from local communities regarding anticipated industry activity levels and the related im-pact to com munities.

“It is very clear through this survey that, as an industry, we have got to do a better job of getting the right information to our people, so that they are in a bet ter position to comm uni-cate effectively about industry and the issues that our stakeholders care about,”says Soucy.

In addition to questions they frequently hear, survey respondents also identified a numberof issues around which they feel improvement is necessary. Overall, industry came under heavyfire from its worker s (60 per cent of them) for n ot conne cting effectively with commu nities,

and for not being responsive to issues of community concern. Interestingly, workers self iden-tified those issues as including the transient nature of industry’s employees who move throughcommunities, industry driving habits, the impact of waste, and a general lack of courtesy whenworkers are in local communities.

The difficult lifestyle create d by long shifts and t he cyclical nature of w ork in th e indus-try was also cited as a major conc ern. Many employees noted t he associated risks of divorce,drug use, alcohol, and burn-out, especially in the case of younger w orkers, as negative aspectsof the job.

Accordingly, employees actually called for stricte r regulatory involvement r elated to e mploy-ment and workplace standards, safety, and other key areas impacting industry, including envi-ronment and water usage, which were also ranked as a top area of concern.

“It was fairly shocking that our own people want to see more regulation of industry, and Iwould say that this is a fairly clear indicator that we have got to do some work to clean up ourown backyard,” Soucy says.

Interestingly though, employees ranked their own co mpanies much higher th an they did theindustry’s performance overall on almost every key indicator in the survey. E&P companieswere ranked the lowest, and, in fact, came under heavy fire in a number of key areas – partic-ularly when it comes to the relationship with industry suppliers and contractors, an area itseems, which has deteriorated significantly of late.

In its survey, PSAC asked service sector employees if they would be willing to change theirhabits, such as by closing gates and slowing down to reduce dust, in order to make a positivedifference in the communities they work in. Eighty-four per cent of respondents said yes, butwith the caveat that they would expect more support from companies in all industry sectorsto ensure that their individual actions were suppor ted by a collective effort.

“That’s fair enough,”said Roger Soucy, PSAC President. “We can’t ask each employee to go italone. We need to provide them with information and tools that will help all employees, andthe companies they work for, to strengthen our social license to operate.”

While the survey certainly has brought to light some key areas which industry must nowaddress, the results were not all negative. Workers gave industry an extremely positive reviewin a number of areas including protecting public health, keeping workers safe, and investing incommunities where it operates.

Giving Employees a VoicePSAC Employee Survey Sheds Light on Industry IssuesRob Gray, Manager, Comm uni cat ion s & M ember Relat ion s, PSAC

“Industry is doing a lot of things right. We just never seem to take the opportuabout these positives,” says Soucy. “There are som e great ex amples out there of howworking to protect the environment, proactively responding to issues of communi

Continued o

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Oil & Gas Netw ork , Jun

inventing new techn ology which ben-efits the end-user, and otherwise. Weneed to start sharing these stories”.

With this input from its Membercompany employees, PSAC is nowpreparing a number of tactics andtools through its Public PerceptionProgram that will be launched over thenext number of months. This will in-clude a new section on the PSAC web-site with information on the industryand its issues, geared towards commu-nicating with the pu blic.

PSAC will also be unvployee engagement tooMembers, in an effort to mation employees called vey out to workers so tbetter able to be ambassdustry in their day-to-day

“Even in a tight econthe PSAC Board and Membthe value of this long-tersummarized Soucy. “We wido whatever we can to hetry strengthen its public s

Continued from page 5

For a moment, I am going to forget my badlycharred resource portfolio, real estate invest-ments that look all-too real, and those worth-

less stock options used so ingeniously by HR toconvince me to stay put for the past five years. Iguess I’ve learn ed -- like so m any othe rs -- that evenwhen times are good, treading water is the samething as sinking like a stone. It’s the journey, right?

Yeah, right.For a moment then, like the impressionable

young grunt played by Charlie Sheen in Platoon --who realizes he’s made a terrible mistake tradinghis middle-class lifestyle for the realities of junglewarfare in 1960s Vietnam -- I am going to attemptto climb from this personal abyss and begin torebuild. Find some positives in this dark and dirtyRecession we are experiencing.

This is exactly the same position the Canada’sembattled and embittered oilsands sector finds itself in – never lower, despite some glorious years whenit seemed the sky was truly the limit.

And just as I’m seeking a way out and back upon a personal level, so too is the industry.

For the past couple of years, the hammering inthe m edia against the oilsands “juggernaut” has beenrelentless – driven by emotional triggers activatedso skillfully by increasingly strident and well-fund-ed environmental non-government organizations(ENGOs) whose only aim is to destro y the fossil fueleconomy (and thereby the entire world economy).

The “Dirty Oil”camp aign, you m ust adm it, is bril-liant in its simplicity and unfortunately, as any PRagency worth its salt will tell you, it has legs.

Is the worst over for the industry that carriesNorth America’s energy future on its back?

Will emotion and hype continue to w in the bat-tle over logic and reason?

When will the industry start fighting back andtake meaningful action to reclaim its voice in thishigh-stakes debate?

No one has the answers to th ese questions right

now but be assured the industry has been gearingup through groups the Canadian Association of Petroleum Producers, the Oil Sands DevelopersGroups and other initiatives that will surely cometo light in the near future, to counter the many falseclaims that continue to make front-page news allaround the world and make Canada look like aDraconian industry backwater.

You can’t help but feel there are sinister eco-nomic forces at work here, but I’ll save the Angelsand Demons conspiracy theory column for a futureissue.

Instead, let’s focus on a theme that’s beginningto crop up and has manifested itself in recentspeeches by Alberta Energy Minister Mel Knight,OSDG President Don Thompson, and SyncrudePresident and CEO Tom Katinas among ot her s. Thattheme is embodied in the title of Thompson’s

speech: Setting the Record Straight and revolvesaround correcting the myths per petuated pr imarilyENGOs about oilsands development.

Thompson talked about 10 myths, while Knighthas his Six way s to tell you’re not getting the wholeoilsands story – for the sake of space , I’ll use the lat-ter which I’ve adapted Coles-notes style:

Myth #1: Calling it the “tar sands”industry.Reality: We’re producing oil, not tar.

Myth #2: Oilsands developers are “ripping up anarea the size of Florida.”

Reality: the oilsands lay belowan area the size of Florida, but 80% of that devel-opment is in-situ or underground as opp osed to sur-face mined.

Myth #3: Developers are “destroying the boreal forest.”Reality: the entire mineable area is less than 1% of this forest. Less than 1/16 th of that 1% has been dis-turbed to date. And reclamation is a regulatoryrequirement.

Myth #4: Developers are “depleting fresh waterresources to produce oil.”Reality: Up to 90% of water is recycled; saline/non-potable water is used when ever possible and thereare strict limits on fresh water withdrawals.

Myth #5: “Development is contaminating rivers andputting people and habitat at risk.”Reality: Testing shows that rivers adjacent to oil-sands projects have lower contaminant levels thanother rivers in the region with no industrial oilsandsactivity near them; bitumen is naturally present onthe banks and in the Athabasca River.

Myth #6: Oilsands activity is three to five timesmore intensive than conventional oil.Reality: On a “wells to wheels” basis (from extrac-tion to end use), the oil sands are less carbon in-tensive th an Venezuelan crude and comp arable tooil shipped from the Middle East and Californiaheavy; Canada accounts for 2% of world’s overallemissions and the oilsands is less than 5% of that(i.e. 1/10 th of 1% of world’s emissions).

In the days and months ah ead, you’re going to behearing a lot more about these myths but moreimportantly about these realities. If I were an en-terp rising repor ter ( past life), I’d be jumping all overthis stuff before my comp etitors do.

A Time to Fight BackWill emotion a nd hype continu e to win the battleover logic and reason?

Coll’sC o r n e r

12th Annual BC Natural Gas Symposium

In 2008 B.C. saw record land sales. For the first time ever landtopped Alberta! All of the excitement is around unconventionaNortheast. B.C. has a great environment to incent activity - grea

reserves and a government that wants to encourage business opporcourse, all of this opportunity does come with challenges.

Attend The Canadian Institute’s 12th Annual BC Natural Gas Swhere you can expect to hear some of the province’s most promiholders and players discuss what is being done to overcome challengitalize on opportunities surrounding BC natural gas plays.

Conference Title:The Canadian Institute’s 12th Annual

BC Natural Gas SymposiumLocation:

The Fairmont Palliser, CDate:

June 4 & 5, 2009

visit us at GO EXPOGAS AND OIL EX

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8 Oil & Gas Netw ork, June 2009

Two other factors were at play. At thtraded at least 15 times each physical baclear th at financial markets, including hedcommodity speculators, played a key rolprices, including the volatility of technical tels. For the majority of world producers, a wlar (resulting from the ‘easy money’ policFederal Reserve Bank) depreciated the vathey received and fed higher commoditNorth America.

The oil price reached a crescendo w hen$145/Bbl in July ’08 --- over 10 times its ’98a decade! While this price may not be exppared to bottled w ater, it was far too costly feconomy to absorb (notwithstanding Alan comments to the contrary). With the sharnomic downturn, an oil price free fall ensuebrought us far (perhaps halfway) below thepoint for new reserves virtually anywhere.

During the last decade, the stron g demangas strained human and physical resourchuge cost increases, in sectors as diverseshore drilling rigs and the Alberta oil sandprime focus was on the incremental barrdamned’, as pundits from the financial instcast oil at $200/Bbl (in our view, defyi

Unfortunately today, high co sts for many goods and services are now deeply engreversing the status quo to achieve reasice costs will be difficult and painful. Thisbegun; however, has a long way yet to go.

Many senior executives have bemoanedof Wall Street, with its expectations of ugrowth of profits many times the inflation its ‘flavor of the mon th’ lens for evaluatistrategies and performance, vs. a longer tetive, which reflects the investment realitiebusiness (or most other businesses, for Short term performance is not a sound basisbusinesses. Excessive power is concentratedof relatively few analysts, many with little exper ience. The tru e substanc e, and leveragthese high flying investment firms and banlaid bare --- if these firms are really so smarmany of them in deep trouble, requiring lain most countries of the developed (and uworlds? This is similar to the Enron follieSkilling’s disdain for real assets, like oil anand pipelines), and the ‘dot.com’p eriod.

The common theme: unreasonable Wapectations drives excessive risk taking by panies. This performance greed (‘bonfire oflives on) lies behind the fiasco of ‘Asset Bawhich has ensnared many corporations, peand individuals. The ‘rating’ of risk b y seveing agencies (talk about concentration of p‘laissez faire’ world of regulation (wh ere

The 4th Oil RecessionLooking for Company & Country LeadershipPaul Ziff , CEO

This is our 27th year in consulting, and 4th (or more?) significant recession. One of the characteristics of longevity isexperience (which is not necessarily wisdom). With that cau-

tion, some of my observations follow.The last decade saw a prolonged oil price uptrend, from the

low teens in winter ‘98/99 to all time highs reached in mid-July ’08

(with a hiccup in winter ‘06/07). In my opinion, this surge origi-nally reflected the fundamental economics of growing demand andmore expensive supp ly, then acquired a ‘political premium’regarding supply uncertainty, impacted initially by the war in Iraq,which tightened supp ly, and enhanced the impact of other uncer-tainties such as unrest in Nigeria, and politics in Venezuela.

Oil Prices 1970 - 2009 & the 4 Recession

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Security & Exchange Commission?) enabled the greed, withmany parties in the chain receiving huge ‘performance’ fees.

According to Charlie Fischer (the long term CEO of Nexen,a successful & technologically adventurous CanadianIndependent,) the markets’dominant focus on short term real-izations in the next few quarters puts public companies at adistinct disadvantage because they are driven to meet marketexpectations rather than taking a longer term view. This leadsto a focus on transactions for ‘quick impact’, rather thaninvestment in new exploration or the development of new tech-nology. This is unfortunate for e nergy supp ly since m ost reser veadditions today come from projects that need new technologiesand have a long cycle time (Deepwater, oil sands, ‘Arctic gas’).When markets w ant instant gratifi cation, public companies canbe punished for investing for the long term. By contrast,national oil companies (NOC’s) can make that bet because theyare making investment decisions for the long term.

Despite the financial and economic meltdowns, the latterpartly due to the whipsaw of credit --- from too free before, totoo restrictive now --- energy remains the engine of the econ-omy, and like it or not, hydrocarbons still dominate. This con-tributes to costly international confl icts, both military andpipeline, which then further distort and c ontort markets, to thedetriment of the economy and real producers and users, par-

ticularly underdeveloped countries without energy resources(e.g. Africa).At times like th ese, OPEC will progressively cut prod uction

to approach reduced demand, and in some time, sane priceswill be restored to refl ect the fundamentals of oil & gas sup-ply. Part of the economic responsibility lies with private sec-tor producers. At a time when the full cycle cost for NorthAmerican natural gas costs $7/Mcf (and more for 3rd and 4thtier producers) to replace, does it make sense for shareholdersto sell it for $4/Mcf?

The 2 ways to mitigate the dissipation of relatively short-lived reserves are either to hedge (still possible for a year out),or shut in production during low price months (providing thereare no reservoir or proce ssing technical issues). However, in thepast reducing produ ction has been harshly punished by WallStreet gurus. Through our work we are intimately famil-iar with the h igh costs of energy in many countries acrossthe w orld. Producers th emselves should be more disci-

plined regarding the value of their assets. The currentlow energy prices are no more reasonable nor sustainablethan oil selling for $150/Bbl. Many speculative financ-ings in recent years made no sense, except for those p ur-suing greed --- the promoter s, and issuers --- pity the sucker swho bought the issues. Nor does it make any sense forbanks today to base lending requirements (e.g. cash flowor debt service coverage ratios) on current ultra-lowprices, and cut credit lines (fortunately most energy com-panies have fairly strong balance sheets after so manyfavorable years).

What can companies do during this turmoil? In myopinion, focus on ‘back to basics’. This includes carefulreview of costs (out of favor in recent years), with acontinued focus on maximizing production uptime toincrease cash flow. Oil & gas fields are the DNA of anyoil and gas company and need to be managed appro-priately. In re cent years, many comp anies have boughtback their shares, to ‘fi nancially engineer’ higher p rof-its per share. Yet to day, energy stock pr ices are lower by50% to 75%.

Did the ‘buy-back investment’ contribute to theworld’s energy supply, or more environmentally benignenergy sources? Did it ultimately help shareholders?Would some of these billions have been better investedin developing and enhancing alternative energy supplies,for future sustainability? In new areas, investment redu ceslong term cost cur ves.

Let’s give credit where it’s due --- some energy pro-ducers and service companies have been extreme ly cre-ative in developing new technologies:

• Deepwater developments across the world• world-wide LNG projects to develop stranded gas,

creating a new LNG world ‘pipeline’that many countriescan access

• Shale Gas development (principally in North America,so far)

• measurement while drilling creates ‘designer’wells.

Yet many companies have been inefficient (and individualsin their Hummers, and other oversized ineffi cient vehicles).

Why did GM destroy all their electric car prototypes? Would ithave been in a better position today, vs. Toyota & its Prius?Having been to Brazil and seen their extensive CNG fleet – adecade ago, it was striking to hear an Oklahoma oilman (gas-man?) like Aubrey McLendon, CEO of US gas giant Chesapeake,promote Compressed Natural Gas (CNG) vehicles last fall dur-ing the US presidential election.

Europe (& California) have led the world in concern for theenvironment --- which many in the oil and gas industry havebeen slow to em brace. If one subscribes to the view of ‘Peak Oil’( as espoused b y Matt Simmon s), then t he logical conclu-sion is to treat oil as a more precious good.

Serious adjustments are required in 2009+, however will itbe possible to target the rational mean, rather than hugeswings? For companies, this requires true leadership by

Management, and support from their Boards, to rupanies on a sound longer term basis, rather thashort sighted and inapprop riate financial drivers frmer) paragons of financial strategy. Several Supepursuing a course of stability, vs. knee jerk reactfor strong technical staff is a must, both as a prdue to th e aging of the baby boom generation in tries. The ‘hire & fire’staff cycle creates a very nfile for the university graduates that the industattract to replace the ‘baby boomers’. Companiesponsible and thr ive!

Countries should recognize that energy is critnomic well-being, and nation al stability. China is copurchase of world assets, and re lated tied reGazprom is pursuing a similar world campaign. Aworst energy policy has been that of the US – whvirtually none; gasoline prices that are low relatother developed coun tries have encouraged wastiresources --- and contributed to the ‘demise of De

Although ap parent ly inexpe nsive, the re latedical, environmental, can be quite high. This poliing under th e regime of new US President Obamsome of his changes, fiscal, will not be populAmerican oil industry, clearly there will be some

changes. In North America, major clean gas resofar North (Alaska gas alone equals half of all Cprodu ction) r emain un developed – a national traboth US Presidential candidates supported the Pipeline, there has been no observable progressformer Premier Peter Lougheed (one of the fewenergy statesmen in recent decades in North Abemoaned the random development of the oil sanworld resource. Prescient as he always is, appropast will not be adequate in the future, both fmentalists, and for the broad inflationary impAlberta econo my. For en ergy endowed , high p oputries, the rise of left wing populists across Souprovides a lesson regarding broader distributionefits of energy riches.

Oil & Gas Netw ork , Jun

Gas & Oil Price Margins

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10 Oil & Gas Network, June 2009

Wellons Canada, a Surrey, BC based supplier of gas firedand biomass fired thermal energy systems, has recentlysupplied thermal fluid heating equipment for two oil &

gas projects.Wellons is currently working on a crude oil heating system for

a major pipeline and merchant tank operator in Alberta. The heartof project scope is two Wellons 40MM BTU/hr gas fired skidassembled glycol heaters.

Wellons project scope also includes two glycol- to-crude oilheat exchangers, glycol and crude oil circulating pump skids, anda prefabricated control room module. Wellons Canada also recent-ly supplied a 12MM BTU/hr gas fired thermal oil heater for a new

gas plantfacility inBritishColumbia.

The skid scope included operating and standby pumps, primaryloop piping, PLC based HMI control system, motor control center,and gas combustor c/w combustion air fan flame arrestor. Thisequipment was shop

assembled and located in an en closure on th e skid. The enclo-sure was supplied with flanged pipe connections and electricalinterconnection panels for easy site tie-ins.

Wellons Canada SuppliesGas Fired Heaters for Oil& Gas Projects

Next Dimensionin Offshore Oil

Exploration - Airborn“De-Risking” Survey

e Field Exploration LLP has announcpletion of their first Offshore Airbornpow erful ne w “De-Risking Tool”for t

Exploration Ind ustry. Contract ed b y a Nthe survey in the Nordland area of the Nowas used to rapidly assess the potentialblocks for the Norwegian Petroleum DirecLicensing Round.

Flying over 100 miles offshore and ovto 1000 feet deep, Passive ElectromagnetResolution Magnetic data acquisition was cless than one week with a specially desipackage.

eField Aircraft based at Brønnøysund,the survey.

“Conventional methods such as MarinCSEM would have taken months and costsbeen prohibitive”says Ed Johnson, preside“Our Offshore Airborne System can covline miles per day at a fraction of the costsurvey.”

Johnson further noted that “eField’s corporates multiple sensors including higmagnetics and electromagnetics recordinthe air-ocean interface to sub-floor pSatellite data is then added to provide valuseep mapping.

eField’s EMT System:eField’s new generation of airbor

Magnetotelluric technology leverages advborne geophysics, remote sensing, amodeling.

The underlying technology of the eFdetects the presence of hydrocarbons byural electric currents known as TellurTelluric currents are induced by solar enerning that penetrate deep into the earth. borne system captures resul tant respolarization changes that occur at the water and dissolved hydrocarbons and in

This approach is significantly differennologies th at rely on spect ral imaging, granet ic measurements . These and othmeasurement systems, like seismic, requisuming data gathering and interpretationgies that identify anomalies or prospects wmay not contain oil or gas. Oil and Gas arsulators - they have high resistivity compaThis differentiation allows eField to modrately identify anomalies where hydrocarbpresent at depths of 20,000 feet or morocean floor and in natural seep columns thto the surface.

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Honeywell Joins NorthAmerica’s Largest SystemIntegrators Organization

Hone ywell has joined t he Con trol Systems Integrator s Association (CSIA)www.controlsys.org/index.htm , North America’s largest organizationfor independent control systems integrators.

CSIA includes more than 300 member companies dedicated to sharing anddeveloping systems integration best practices. In addition to providing a forumfor members to discuss common business issues, the group publishes its BestPractices and Benchmarks reference guide and offers its renowned CertifiedMember program used to h elp manufacturers identify leading integrators.

“Honeywell is a natural fit for CSIA because the company has made integra-tion a cornerstone of its strategy for helping manufacturers of all sizes improveoper ations,” said Norm O’Leary, executive director of CSIA. “With de ep exper t-ise in integration, system design and the unique needs of various industries, weexpect that Honeywell will contribute a wealth of knowledge to the group andhelp strengthen its resulting research.”

Honeywell, a past winner of the System Integrator of the Year Award fromControl Engineering magazine, has more than 3,000 project engineers anddesigners who work worldwide through a network of 50 design centers.Honeywell provides a wide range of technology platforms and instrumentationthat enable manufacturers to coordinate previously disparate systems. Forexample, the company’s award-winning process control platform, Experion®Process Knowledge System (PKS) <http://hpsweb.honeywell.com/Cultures/en-US/Products/Systems/ExperionPKS/ExperionPlatformOverview/default.htm> ,coordinates critical subsystems dispersed throughout a manufacturing facilityto provide greater visibility into plant operations. The latest solution in theExperion product l ine , Exper ion LS <ht tp: / /hpsweb.honeywel l .com/Cultures/en-US/Products/Systems/ExperionLS/default.htm> , allows integra-

tors to offer customers the power and reliability of a traditional distributedcontrol system (DCS) in a smaller, flexible package more commonly associatedwith Programmable Logic Controllers (PLCs).

“Organizations such as CSIA are cr itical for advancing our indu stry bec ausethey build great knowledge bases that shed insight into th e new challenges ourcustom ers face,”said Harsh Chitale, vice presiden t of strategy and global mar-keting for Honeywell Process Solutions. “Helping to set high standards for sys-tems integration will help manufacturers meet those challenges in acost-effective manner, which ultimately means better business results for every-one involved.”www.honeywell.com/ps.

Although liquidity is constrained in this uncertainmarket, there are actions that companies cantake to strengthen their financial position and

optimize their access to capital. The key is under-standing what is available and how a smart financingsolution can enhance financial ratios, provide surpluscash flow and p rotect the longevity of a business.

Align long-term assets with long-term debt. Manycompanies currently use their operating line to coverthe costs of long-term investment opport unities, suchas equipm ent, because it’s readily available and pe rhapsa lower-rate alternative. Operating lines are typicallysecured by short-term assets, which can be extrem elyvolatile in value, such as natural gas reserves, receiv-ables, or inventory. In this economic environment, anoperating lender may try to protect his position byreducing lending ratios, increasing rates, charging feesfor even small covenant breaches, rolling back lines of credit, or calling the loan on demand. One way aroundthe risk of being subjected to any such actions is toconsider long-term financing structures secured by theasset the company is investing in. In doing so, themonthly obligations are much better aligned with therevenue the asset is earning over the duration of theuseful life of the asset. In addition, this strengthens thecompany’s balance sheet w ith stronger current ratiosand frees up short-term capital for short-term needs. Asimple mini-restructure like this can make a big differ-ence and w ill be more attractive to lenders.

Monetize your assets. A good buffer of read ily avail-able cash can go a long way in today’s uncertain envi-ronmen t. On the one hand, it can help a companyensure steady operations through temporary unex-pected downtur ns. On the other hand, cash can helpadvance a company’s competitive advantage when op-portunities arise. Companies need to look no furtherfor this than th eir full inventor y of equipmen t - be it gascompression equipment, equipment for heavy trans-port, loading or digging, as well as manufacturing andmany other types of equipment. Existing equipment

can provide companies access to a reservcover everyday expenses or provide thebility to jump on an acquisition when acomes along. A lender with a specializedagement team, such as GE Capital, can helpfind equity in their existing capital equipmit into cash for their business. The companythat this cash be available on a standby revensuring long-term balance sheet treatmcash available during uncertain times cassurance that businesses make it throueconomic times.

Don’t stop at rate, invest in a solution. ping around for financing, it is important tthat th ere is more to it than simply rate. It iscompanies find a partner who is willing time to unde rstand their unique ne eds. Whto financing, one-size does not fit all. It is question “off the shelf” produc ts sold byaren’t asking questions about the businessA lender w ho can collaborate with a com pture a solid financial solution that will not oliquidity but also protect the business, is wond look. It may be surprising to find outthe amount of interest paid can pale in cothe mon ey a company can make or save wfinancing structure. Companies should chalender to prove it to them.

In the quest of strategic partnerships, Gproactively seeking opportunities, across ato help companies re-structure their balaand improve their cash flow p ositions throfinancing solution s. As on e of General Elecgrowth engines in Canada, GE Capital ofproducts, growth capital, revolving lineequipment leasing, cash flow programs, assand other financial services. Companiesreliable, well-capitalized and comp etitifinancing solutions – and the personal atthey deserve.

Oil & Gas Network, June

How Companies Can OptimizeTheir Access to Capital

Subcribe today

[email protected]

www.oilgas.netJune 2009 Volume 10,Number 3

Communications Issue

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In North America, one in six men will develop prostate cancer intheir lifetime. The good news is that the mortality rate from prostatecancer in North America has been falling in recent years. The bad

news is that the fight against prostate cancer is not over yet bec ause anaverage of about 500 Canadian men will be diagnosed with prostate can-cer each week.

The oil and gas industry will gather together to help “Knock outProstate Cancer”during a unique fundraising/networking event that willbe hosted by Energy TV during Go-EXPO. This fun-filled evening, knownas the Boxer Blues, has been created to increase awareness and raisefunds for prostate cancer.

“Prostate cancer has become one of the most common cancers thataffect our male population today and in a male dominated industry likethe p etroleum sector, it seemed like a pe rfect fit to host an e vent withthat focus,”says Shelly Brimble, Boxer Blues pro ject m anager.

Energy TV is proud to announce the keynote speaker foBlues will be Canadian petroleum icon W. Brett Wilson, whhis journey w ith pro state canc er. Wilson is the c o-founde r of Capital Corp.

He is also an award winning entreprene ur and p hilanthaccolades including: Top 40 under 40, Top 20 Deal Makers, anSpecialists. Alberta Venture Magazine selected Wilson as thPerson of the Year for 2008. Wilson is currently the managand president, Prairie Merchant Corporation, a private mefocused on business opportunities. Recently, his entreprenelanded him a role as a panelist on CBC’s Dragons' Den.

Wilson’s life took a new tur n wh en he was diagnosed wcancer at 43 years old. Since then, he has become one of Casought-after public speakers sharing his story about the pathin business and life – with a focus on his struggle with pros

During the Boxer Blues, the Prostate CanCalgary will unveil a unique community outrthat has been in th e works for the past three as the “Man Van.”This mobile unit can collecples in the com munity then bring then proviless then 30 m inutes. Blood samples are oneimportant tools used to diagnose prostate cthan the digital rectal exam (DRE). Prostate gen (PSA) are a markers found through blcover hidden cancer.

Linda MacNaughton, community relatiotor, Prostate Cancer Institute, says they are

start with four three hour mobile baseline PSing clinics per month in various locations inCalgary. The Prostate Cancer Institute has imbile PSA testing units into Canada for use wVan and each unit can provide a result within

This rapid detection is key to survival any other cancer, the chances of successful tcrease with early detection. Many men go uncause quite often prostate cancer show littluntil the disease has progressed. This is whytesting can reduce prostate cancer death by According to the largest study ever conductedcancer screening (European RandomizeScreening for Prostate Cancer) the screeninbecause 48 men were treated for the presenccancer out of every 1,408 men tested.

Funds to battle prostate cancer will be rBoxer Blues through various activities includ

zone. Participants can challenge amateur bCalgary-based Impact Boxing Club on Nintetions. Louie Raposo, owner/operator, ImpClub, will bring a championship belt for theCalgary Women in Energy, a networking grotroleum industry, have also volunteered to p rosupport for the event.

Silent auction items are also being collefunds and items will be accepted until theevent. “We have bee n touch ed by so many pries from people in the energy industry thaimpacted by this disease and are graciously gadds Brimble. “One man who recently recprostate c ancer is also an artist. He is currea painting just for this event.”

Boxer Blues (www.ene rgytv.com) w ill bJune 10, 2009, within walking distance fromat Hotel Arts. About 450 people from thesector will help raise funds to battle prosfrom 6 p .m. to 10 p.m . All proceeds raisedbe donated to: Prostaid Calgary (www.prthe Prostate Cancer Institute, Calgary (wwcalgary.com) and the Prosta te Canc(www.prostatecancer.ca).

“Everybody knows that this is a hard timand gas industry, but when the going getsindustry pulls together. We hope to host event w hile successfully raising funds for aWe challenge Go-EXPO participants to joinand W. Brett Wilson to hit a TKO against pcer during the Boxer Blues,” adds Brimble

12 Oil & Gas Network, June 2009

Energy industry to help fight for the cure during Go-EXPO

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14 Oil & Gas Network, June 2009

FEATURES AND BENEFITS

G Safety – the fully mechanized process keeps personnel clear ofhazardous operations using a wireless remote at the rig floor.G Time saving and safe set up / tear down using built -in

hydraulics - no need for expensive cranes.G Productivity maximized through repeatable dependable

operation.G Open belly design for pad rig operation.G Optimal tubular presentation for safe handling at the

rig floor.G Range of rig floor height s from 14’ to 37’.G Easy transportation using a winch deck truck, no need

for cranes.G Proven design and t rack record, with an unbeatable

safety record, incredible uptime, reliabilit y and longevity.G Self contained power pack.G Energy efficient design.G Numerous safety features and failsafe devicesG Easy to learn operation.G Low maintenance construction

The PowerCatwalk Specialis

Ziff Energy Group (ZEG), a long established and leading upstream energy niche consultingfirm, with offices in Houston and Calgary, announces the launch of its 1st InternationalFPSO Operations Efficiency study, evaluating uptime reliability and operating costs for

FPSOs in various regions of the world. FPSOs are a principal met hod for Inter national oil pro-duction for areas where no refinery is located nearby (in contrast to Offshore Platforms for Shelf-depth offshore waters around the world, and floating Deepwater Structures which connect tofixed pip elines, such as in th e US Gulf of Mexico and Brazil). The wo rld ‘namep late’cap acity forFPSOs is an impressive 15 million Bbl/d, although the actual throughput is less, with depletionin field production over time.

Moored offshor e, the FPSO (w hich stands for ‘Floating, Producing, Storage, Offloading’) gath -ers o ffshore oil prod uction, from Platforms or Sub-Sea we lls, for fields in either Shelf or Deep waterwater dep th, and then holds the crude oil for loading onto tankers for delivery to refineries forproce ssing. Some FPSOs are ‘purp ose-built’(esp. in the h arsh North Sea environmen t), while manyFPSOs are c onverte d oil tanker s. The first FPSO was Shell’s Castellon, dating back to 1977, 3decades ago. Like other produ ction systems, there is a wide variety of FPSOs --- some of the majorvariances are capacity (e.g. from as small as 15-40 MBbl/d to as large as 200M+ Bbl/d); vintage(several decades old to new); and complexity of processing (amount of water, degree of liquidsstripp ing, natural gas). As usual, Ziff Energy will be group ing the FPSOs into ‘like Group s’of co m-parable assets.

Slightly under 200 FPSOs operate w orldwide, and are widely dispersed --- the largest cent ersare Asia (abou t 50, espe cially CNOOC - 20, Australia 15, Indon esia, Vietnam ), the Nor th Sea (30+),Brazil (40), and West Africa (30, mainly Nigeria & Angola). Amon g production systems employed

internationally, FPSO’s have perhaps the greatest degree of similarity, as they are all marineope rations, regardle ss of wh ich coast the y are dep loyed in. Ziff Energy has assessed FPSO’s oper-ating in a number of countries in Asia and Brazil in the last 2 years.

For many years, there have been two types of ownership and operation --- sometimes FPSOs

are owne d by th e p roducer, however often a Contract Operator is responsible (e.gModec, SBM). As well, ther e are 3 main forms of c ontrac t (as we ll as combinations)

Owned & Operated: the oil company buys a vessel, and then operates and maintilar to othe r upstream op erations)

Wet Lease: a producer pays a vessel operator/owner a fee to provide FPSO servicCharter : an oil comp any has a contr act operator develop a vessel to their specificpays a lease fee, howe ver the oil company is responsible to operate an d maintain th

The purpose of the study is to help Operators, both producers and Contracenhance efficiency,to help them cope with the impact of the dramatic price decline oand counter the effects of rapid production decline, which have a big impact on unicosts. Regardless of type of con tract, all FPSOs will be comp arable on the same basisReliability, and total cost.

In the last 15 years, Ziff Energy has delivered a series of 12 multi-client marine(7 Deep water Studies, 5 Shelf Operation s), a major multi-client study in Asia Pacific in ering 7 c ountr ies (Australia, China, Indonesia, Malaysia, Thailand, and Vietnam); plus cects for offshore Brazil (2008), Trinidad & Tobago, and India.

This study will focus on Pro duction Uptime Reliability and Ope rating Efficiency inmetrics that were first developed as part of Ziff Energy’s 6th Offshore Deepwater spleted in 2007, and enhanced with input from our Super-Major clients. These newclude the value of lost p roduction, the mean time between incidents (MTBI) and theto recover (MTTR). In the Deepwate r study, the value of the unp lanned deferme nted the tot al OpEx of the participan ts! Uptime is a prime dr iver of upstr eam ‘valu

Energy will identify “best in class”production uptime targets and will help validate thsociated with specific investments in improved reliability.Key members of Ziff’s Offshore team include David Richmond, former Offshore

Manager for a Major, with an extensive background knowledge in all aspects o

Ziff Energy Launches 1st International FPSO Operations Studyto Assist Operators Enhance Operating Efficiency

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Oil & Gas Network, June

Go E

Operations including FSOand FPSO, from wells tomarket ; and Tom Gray,Ziff Energy’s OffshoreOperat ions specia l is t ,who joined Ziff Energyafter a long and impres-sive career at a Majorwhere he served last asDirector, Gulf of MexicoDeepwater Operations.

Participants will re-ceive confidential, blind-ed, asset-level cost com-parisons versus compara-ble assets, as well as de-tailed cost dr iver analysis.

“Study participants receive a detailed diagnostic report on each asset, compared on a ‘like kind’basis with peer assets and identifying potential savings in each cost category.” Historically,

Ziff Energy’s studies have helped Operators in 20+ countries pinpoint areas to achieve signifi-cant savings on oper ating costs. After the stu dy is comp leted, Ziff Energy mee ts with each clientregarding areas for future action plans to assist them achieve these efficiency savings, as well asfor best practices to gain production.

Ziff Energy is a leading benchmarking firm, focused in operating costs and practices for theGulf of Mexico, and around the world in 2 dozen countries. Our offshore operations database in-cludes 600 Shelf fields worldwide and 50+ Deep water assets. Last year, Ziff Energy established aCenter for Benchmarking Excellence in Calgary, staffed with full-time experienced engineers toensure the highest quality and efficiency in conducting benchmarking analysis.

Retrofits Make Economic Sense -In a time when efficiency matters

The current drilling environment continues to putpressure on producers to create production effi-ciencies on existing wells and find ways to work

with a shrinking skilled work force. Zedi invites producersto revisit the retrofit advantage of putting electronic flowmeasurement (EFM) devices on their wells. Zedi’s surveil-lance offerings, Smart-Alek® and Zedi EFM Walk-up™ helpproducers become more efficient and consequently savethem time and money.

Customers co nfirm that a key advantage of moving fromcharts to EFM is that an operator’s work week is restruc-tured to support more effective work practices. Well visi-tation changes from daily to ‘as required’– freeing up timefor value added activities like preventative maintenance. Amore efficient work structure ultimately leads to opera-tional cost savings and a higher well to operator ratio.

For new drills or retrofitting, producers may also wantto add an element of control. Zedi Connect™ is the next generation of Zedi’s osolutions combining surveillance and control. It allows users to remotely control well site equipment through the web. Built as a unique technology that’s compindustry field devices, it is designed to upgrade optimization applications remoteing the need for site visits.

Learn m ore at Zedi’s GO Expo booth #1 113.

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F le x pipe MAK ES sol ut i on s . F l e x p i p e S y s t e m s s a v e s o n c r e w l o g i s t i c s a n d e q u i p m

e n t c u t t i n g 3 0 - 5 0 % o n y o ur p i p e l

16 Oil & Gas Network, June 2009

Commodity Price

Recovery Anticipated into 2010Decreasing Capital Expenditures has Silver Lining

Calgary, AB, April 7, 2009 – Recent declines in the capital exp enditur es req uired to develop oiland natural gas will help drive commodity market prices up predicts AJM PetroleumConsultants in their current oil and gas price forecast, established effective March 31, 2009.

“Some analysts believe world oil production peaked in 2008, but regardless of whether or notyou agree, it is generally accepted that the world’s supply of hydrocarbons is declining,”said RalphGlass, economist and Vice President of Operation s at AJM Petroleum Con sultants. “The cu rren t de-crease in investment for oilsands projects and natural gas drilling projects will have the inevitableimpact of less produc tion coming on-stream. Less produ ction will lower gas supply levels, and theresulting difference between supply and demand will force prices up.”

Reduced drilling over the past two years in Canada’s natural gas sector has caused approxi-mately 1 Bcf/d of production to fall off the market and, with the first quarter of 2009 seeing aneven higher drop in rig coun ts, Mr. Glass anticipates even sharp er de clines in drilling. While theUnited States saw a dramatic increase in gas supply levels in the latter part of 2008 due to high lev-els of drilling in shale gas plays, declines in d rilling activity in 2009 w ill lead to just as dramatic pro-

duction de clines. This drop in sup ply will ultimately force n atural gas prices to r ise.AJM’s current price forecast shows crude oil prices in constant dollars based on a WTI forecast

of US$55.00/b bl for 2009, rising to US$70.00/ bbl in 2010, then r eaching US$100.00/bbl by 2016 andholding at this level for the balance of the forecast. The AECO US NYMEX natural gas price in con-stant dollars is expected to average US$4.50/Mcf in 2009, rising with oil to a long-term price in 2016of US$9.00/Mcf. The Canadian priced AECO forecast is expected to average Cdn$4.50/Mcf in 2009rising to Cdn$8.50/Mcf in 2016, corresponding with the expected recovery of the Canadian dollarover the same pe riod. When com pared w ith the forecast pr epare d by AJM at Decembe r 31, 2008,this current forecast features natural gas price p redictions that reflect a d rop of $1 - $2/Mcf until2016. Complete forec ast tables, comm entar y and docume ntation for AJM’s March 31 Price Forecastare available for download on the AJM Petroleum Consultants website at www.ajmpetroleumcon-sultants.com.

Study Finds 2008 Global Upstream Oil & GasTransaction Value Fell 32%, with CanadianTotal Plunging 68%

Global mergers and acquisitions (M&A) up-stream transaction value fell to $104 bil-lion from an annu al average of nearly $160

billion in 2005-2007, according to th e 2009 GlobalUpstream M&A Review prepared by IHS HeroldInc., an IHS company (NYSE: IHS), and HarrisonLovegrove & Co., Ltd., a Standard Char tered groupcompany. This review provides a comprehensiveanalysis of more than 280 significant upstreamtransact ions that were announced in 2008.Canadian M&A upstream transaction value de-clined to just US$14.5 billion from a recordUS$45.5 b illion in 2007

Canadian asset transaction value in 2008 sank almost 75 percent to a six-year low while corpo-rate deal value declined by two-thirds from theprior year as activity fell off dramatically in th e lastfour m onth s of the year. Fifty-five significant deals(over US$10MM) were announce d in the first eightmonths of 2008, but just ten from Septemberthrough Dece mber. Canadian transactions account-ed for less than 15 pe rcent o f total worldwide M&Avalue, the lowest percentage since 2005 and lessthan half of the record 30 pe rcent in 2007.

Royal Dutch Shell’s US$5.8 billion all-cash cor-porate acquisition of gas-weighted producerDuvernay Oil was one of o nly two deals over US$1billion. Corporate deals outnumbered asset trans-actions for the fourth consecutive year, althoughthe average corporate transaction value, excludingthe Shell-Duvernay deal, was less than US$200MM.

After con siderable consol idat ion amo ngRoyalty Trusts in 2007, activity in the sector wasmoderate (reflecting weak equity and credit mar-ket conditions) ahead of the income trust tax-status transition in 2011. The only major acquisi-tion involving a trust was th e US$1.3 billion stock-for-stock merger between ProEx Energy Ltd. andProgress Energy Trust, with th e mer ged entity con -verting to a corp orate E&P structure.

Oil Sands transaction value plunged fromUS$18 billion in 2007 to US$2 billion in 2008.Three oil sands deals were among the ten largestin Canada, but each was in the modest US$400MM-US$600MM range. NOCs/Sovereign Wealth entitieswere absent from the Canadian M&A market afteran active 2007.

Transacted proved (1P) and proved plus proba-ble (2P) reserve volumes declined p recipitously tofive year lows. Outside of oil sands, gas accountedfor the majority of acquired 1P and 2P reserves forthe third consecutive year. The Shell/Duvernaytransaction con siderably lifted total region weight-ed average implied re serve values from US$21.42/ barrel of oil equivalent (boe) to US$31.81/boe, withcorporate pricing at a substantial premium to assetdeal pricing. Excluding oil sands, 1P asset deal pric-ing was 15% higher, fueled by a nearly 60 percentrise in pricing for gas-weighted transactions. Pricingwas flat for 2P assets, indicating lower valuationsplaced on upside potential in a low commodityprice environment.

Alberta’s been here before:Say hello to 1980s deficitsBy Mark Mi lke

In March 1987, then Alberta tre asurer Dick Johnston -- back wh en finance misters were called treasurers -- told Albertans they enjoyed the highest pcapita program spending in the country.Albertans also enjoyed a $3.3-billion deficit the previous budget year as

result of such spending; Johnston’s response was to tell Albertans to pay up.Thus, Johnston’s remedy to red ink leaned heavily in the direction of i

creased taxes. In his 1987 budget, he raised corporate taxes by one-third, healtcare premiums by 28 per cent, and fees in nursing homes by 40 per cent. Halso raised personal income taxes in the hopes $1 b illion could be added on threvenue side. In all, Johnston raised or introduced 23 separate taxes.

Balancing the budget w ith tax increases w as impossible. It was an expe rimein taxing one’s way out of a budgetary imbalance and guaranteed to fail. Whia government might slip in a barely noticeable tax increase without an effeupon incentives, a 23-item tax hike of a billion dollars is akin to smothering ill patient with chloroform.

That reality left the spending side to h elp balance the books. In 1987, the treurer did promise some budget cuts; Premier Don Getty and his treasurer had lohinted at and occasionally pruned spending after the co llapse of energy pr icin 1986. But comp ared to the tax increases of about 13 per c ent above existirevenues, the spending cuts at a predicted four per cent of program spendiwere underwhelming.

The 1987 actions were part of a plan launched the year before to balanthe b ooks by 1990. “A deficit of this size cannot b e allowed to co ntinue ,” saJohnston in his 1987 budget remarks.

Except that it did. The province incurred $2.1 billion in red ink in 1990--tplanned year for balanced bo oks, followed by de ficits of $1.8 billion in 1991, $2billion in 1992, $3.3 billion in 1993, and almost $1.4 billion in 1994.

It wasn’t until 1995 that a surplus was produced and only after a deficit bingthat left Alberta $22.7 billion in debt.

What finally turned the corner was not another 23-point tax hike; it was pulic clarity, first, followed, seco nd, by a p olitical awakening in th e Liberal party athen in the Tories that spending had risen to unsustainable heights and must brought down.

Total program expenses in 1990 amounte d to $13.8 billion and continuedclimb, hitting a peak of $16.2 billion in 1993; program spending was cut back $13.5 billion in 1995 and $12.7 billion in 1996.

But that never happened under Getty and Johnston, out of the premiechair and the finance portfolio respectively in later 1992; they were replac

by Ralph Klein and Jim Dinning.The provincial government was only helped in a small way by renues, which were at their lowest level in 1990 and at their high

in 1995, the latter due to a significant uptick in resource reven

But the province couldn’t have relied on that luck to balance tbooks. In 1996, the province’s own-source revenu e, includfrom resources, again dropped. Without a spending ch

and some restraint in the increases in the followyears, deficits would have been as common in the l

half of the 1990s as they were in the first half.Fast forward to 2009 and proponents

deficits appear to have dressed up in 198style fiscal drag and the corresponding j

tifications.But here’s the reality check for recent years: Had Alberta kept p

gram spending tied to inflatand populat ion grow

since 2001, progr

spend-ing wouldhave been$25.6 billion inthe fiscal year justended ( the end of March). Instead, pro-gram expenses (I’m not

including capital expendi-tures) were $11.2 billion higherat $36.8 billion in fiscal 2009. Thatwas 43 per cent higher than can be jus-tified by population growth and inflation.

In 1986, at the beginning of the last provincialspiral into deficit financing, Premier Getty said that “The deficit can be handleWe are the strongest province financially. . . . Despite cutbacks we still have thlargest per-capita spending on our social services system of any province.”

Back then, Getty, as with apologists for red ink now, missed the relevant poinhe himself introduced: That above-average spending would eventually have change if the province was to avoid a lengthy string of deficits.

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Oil & Gas Network, June

An overwhelming majority (90%) of Canadian senior financialexecutives consider reporting on the en vironmental and socialimpacts of their companies to be important. A large pro-

portion of re sponding companies (72%), according to a new surveyfrom PricewaterhouseCoopers LLP (PwC) and the CanadianFinancial Executives Research Foundation (CFERF), the re search in-stitute of FEI Canada (FEI Canada), also claimed t hat th eir com panyunderstood which sustainability issues were most relevant to achiev-ing their business goals. However, when asked if there was an effec-tive strategy for managing these issues, only half of respondentsreported that they had one in place.

Similarly, almost all (92%) senior finance executives felt that itwas important to communicate sustainability performance to sen-ior management and the Board, while at the same time, over half admitted that they did not have an effective system and process inplace for periodically measuring sustainability performance. Again,when asked if this same information should be periodically report-ed to shareholders, employees and external stakeholders, mostagreed that this was important. However, over half (55%) admittedthat their companies did not have an effective system in place toenable this type of reporting. Indeed, most respondents (78%) be-lieve that the average investor does not have enough information

about the sustainability performance of Canadian companies.“Several forces may be working together to explain the discon-

nect.” says Mike Harris, PwC partner and leader of the firmsSustainable Business Solutions prac tice in Canada. “First, a generalframework does not exist for measuring and reporting, making com-parisons between industries a challenge. Second, many companieshave not developed robust data collection systems to make the re -port ing proce ss efficient and reliable. Third, most finance ex ecutivescontinue to only focus on the mandatory financial disclosures andfinally, the cost/benefit of optional sustainability reporting does notprovide support for the types of systems and process required toeffectively implem ent it. Until sustainability rep orting is man datory,this is likely to remain the norm.”

According to the survey, larger companies were morelikely to link the application of corporate sus-tainability practices to business goals. For

instance, when asked if managementunderstood which sustainabilityissues were most relevant toits business goals, 79% of respondents from

companies

with revenuesbetween $1 billion tomore than $20 bi l l ion

replied affirmative comp aredwith 69% of companies withrevenues of less than $1 billion.Furthermore, when asked if com-panies comply with externalrepor ting standards such as the GlobalReporting Initiative (GRI) and theGreenhouse Gas Protocol (GGP), nearly dou-ble (30%) of respondents representing public

enterprises answered affirmative versus 17% of private com-panies.

Companies also felt challenged in compiling data in a cost-effective manner that would accommodate a broad spectrumof stakeholders, from employees, shareholders, customers,institutional investors, reporting regulators to environmentalactivist groups. Furtherm ore, companies are concern ed w iththe costs associated with sustainability reporting, specificallyfor small to medium-sized enterprises (SMEs).

When it comes to industry sectors, reporting practices varyby the exte nt to wh ich each are locally and federally regulatedand the extent to which they emit pollutants into theenvironment, such as oil and gas, or hydro-electric power gen-eration.

The four largest responding groups in the survey, profes-sional and scientific and technical services, manufacturing,finance and insurance, and mining and oil and gas extractiondemonstrate these differences. When asked if their companieshad developed an effective strategy for managing sustainabil-ity issues relevant to their b usiness goals, over 50% of respon-dents in the mining and oil and gas sector, as well as themanufacturing sector said that th ey had, compared with 41%

in finance and insurance and 33% in professional services.While many executives in these industries did not neces-

sarily feel that their en vironmental strategies were fully devel-oped, t he vast majority felt that it was impor tant to p eriodicallymeasure and report on their sustainability performance to theboard. This was true for over 90% of all respondents from theprofessional services, manufacturing and mining and oil andgas sectors. However, only 81% of senior finance executivesfrom financial services felt that they should rep ort on thesematters to their board of directors.

The survey results clearly indicate that the vast majority of financial executives polled believed that regulatory require-

ments per taining to sus-tainability

disclosure and re porting will increase in the yeaand nearly 75% of the survey resp ondent s (74% ofon 74 responses) believed that legislation relatinsure and reporting of sustainability performance wmore stringent over th e next five years.

“For many senior financial executives participstudy, the future development of corporate sureporting in Canada depends on th e establishmedardized reporting framework developed arounspecific Key Performance Indicators (KPIs),” sDzinkowsk i, execut ive directo r of CFERF. “Ultimathas, and will continue to have, a major role to plathe co rporate sustainability agenda of Canadian co

Survey MethodologyThe Corporate Sustainability Reporting –

Research Report was prepared by the CanadiaExecutives Research Foundation (CFERF), the retute of FEI Canada and was sponsored by PricCoopers (PwC). It comprises the results of a surveof 343 senior financial execu tives across Canada ainsights of individuals who participated in an

Research Forum.Just under 50% of the survey respondents rep

prises with annual revenue of $250 million or leremainder being companies with revenues ranginto more than $20 billion.For m ore information, please visit www.pwc.cotainability.

About PricewaterhouseCoopers LLPPricewaterhouseCoopers www.pwc.com p

dustry-focused assurance, tax and advisory servipublic trust and enhance value for its clients andholders. More than 155,000 people in 153 counour network share their thinking, experience anddevelop fresh perspectives and practical advice

PricewaterhouseCoopers LLP w ww.pwc.coman

entities have more than 5,200 partner s anfices across the country.

“PricewaterhouseCoopePricewaterhouse Coop

Ontario limited lnership, or,

text re

PricewaterhouseCoopers global net-work o r o the r memberfirms of the network, each of which is a separate and independentlegal entity.

About Financial Executives International Canada (FEICanada)

FEI Canada is the all-industry professional membertion for senior financial executives. With eleven chaCanada and more than 2,000 members, FEI Canada pro

sional development, thought leadership and advocacy semembers. The association membership, which consists of Ch

Officers, Audit Committee Directors and senior executives in Controller, Treasury and Taxation functions, represents a significan

Canada’s leading and most influential corporations.Further informa tion can be foun d at w ww.feicanada .org.

Corporate sustainability reporting remains an issuefor Canadian companies: PwC and FEI Canada Study

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Oil & Gas Netw ork, June

ChallengeTo effectively stimulate a two-branch multilater-

al openhole completion in a naturally fractureddolomite formation.

SolutionACTive Matrix to enable accurate depth place-

ment of the coiled tubing (CT) in each lateral usingreal-time dow nhole m easurements.

ResultsEffective placement of the stimulation and divert-

ing fluid systems and real-time verification of thetreatment and lateral entry results.Costly interventions in Western Canada

An operator needed to increase productivity of two openhole legs in an existing multilateral gas wellin a naturally fractured dolomite form ation in WesternCanada. The w ell pro duced 21% H2S and 5% CO2.

Operators in this area face economic challengesin maximizing reservoir contact in these partiallydepleted carbonate reservoirs. By using a multilat-eral completion technique, the operators have beenable to achieve greater reservoir contact and accessisolated reservoir comp artments w ith a minimal in-crease in well construction cost or complexity.

Coiled tubing, which has been used to access andtreat the multilaterals, presents two challenges:• ensuring efficient access and treatment of all lat-erals during intervention• existing downhole tools to op erate in a subhydro-static environment.Accurate depth and placement of downhole tools

ACTive Matrix uses downhole measurements andtools and chemical stimulation/diverting fluid sys-tems to meet the ch allenges. These services enableaccurate location and placement of down hole toolsin the laterals to c ontrol stimulation of th e individ-ual legs.

CT was run in the hole to obtain downhole meas-urements, which were used to stimulate the open-hole legs. Acid treatments temporarily diverted andtreated the sections of the open hole that other wisewould not have been stimulated. Pre- and post-treat-ment distributed temperature survey (DTS) data wereused to op timize acid placement.Accuracy and effectiveness of acid stimulation con-firmed

Using the more r eliable real-time bott omhole p res-sure measurements rather than surface pressuremeasurements increased the accuracy and effective-

ness of the stimulation treatments.The initial acid treatment was confirmed and in- jectivity points and other zones to be opened wereidentified. Thermal analysis results were used to gen-erate a revised pump schedule that pro vided detailsof the appropriate diverter and acid stages, whichallowed temporary diversion of the initially stimu-lated zones and better overall treatment of the m ul-tilateral leg.

A final DTS survey confirmed that the treatmentsuccessfully diverted the acid and stimulated all thetargeted zones.

ACTive Matrix Enables Effective Openhole Stimulationin Western CanadaReal-time dow nhole measurements and int erpretat ion increase the stimulation coverage of a mult ilateral gas well

case study

ACTive live in-well performanceACTive Matrix is p art o f the ACTive p ortfolio of CT se rvices t hat

includes ACTive Clean out , ACTive Per f, ACTive Iso lation , ACTive Lift,and ACTive Profiling. These services enable live in-wemeasurements, interpretation, and performance optim

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Oil & Gas Netw ork, June

Staying connected w hile on a job site or on the road is anuphill battle for many junior producers and small energy

service com panies in th e oil and gas industr y. In fact, morethan 70 per cent of workers in the energy sector are mobile,which can c ause a huge disconnect and potential declines inproductivity when workers are away from the o ffice.

Wireless communications tools play a key role in improv-ing communication between the office and mobile workers.By equipping mobile staff with wireless solutions, businessesgain better visibility into th eir workforce , resulting in increasedproductivity and improved safety for field workers.

Boosting ProductivityMost junior producers and small service companies have

fewer than 100 emp loyees. With such limited re sources, thesebusinesses need everyone to be as productive as possible,wherever they are working. TELUS’Mike network has a num-ber of rugged mobile handsets with features that make it easyfor workers to stay connected and get work done faster. UsingMike Direct Connect t echnology—commonly known as PushTo Talk (PTT)—staff can connect with colleagues in less thana second, making it easy for them to have short and efficientconversations.

In addition to Mike, TELUS Tracking and Dispatch solutionshelp small businesses boost their overall productivity and cus-tomer service levels. By using TELUS Resource Tracker, dispatchstaff can track the real-time location of the neare st mobile work-er for a job, provide customers with more precise arrival times,and ensure accurate scheduling.

Enhanced Worker SafetyMobile workers in the energy sector are often exposed to

dangerous environmen ts. With Mike PTT, workers can instantlycommunicate safety concerns with a team member, or the en-

tire crew with a push of a button. Having work-safe equipmentis important, and many don’t realize the wireless devices theyuse to make th eir job more productive can produce sparks, po-tentially igniting fuels and c ausing explosions. Mike is the onlyCanadian provider of rugged, intrinsically safe Motorola hand-sets with PTT for workers in the utility, petrochemical and in-dustrial sectors. They are designed to have low electrical andthermal output, which eliminates the risk of producing sparksand, therefore, enhances worker safety.

Small producers and operators can also improve workersafety by u sing TELUS Tracking and Dispatch solutions to gainvisibility into the activities and locations of their mobile work-ers and assets. For example, TELUS Remote Fleet Tracker canimprove safety by monitoring driver spee ds and pro tecting lone-workers with a man-down safety service. Moreover, Asset Trackerenables businesses to use r eal-time tracking to recover stolen ve-hicles and valuable assets.

Select the Right Wireless SolutionsBy helping staff overcome communication barriers, wire-

less solutions enable small businesses in the oil and gasindustry to enhance the effectiveness of their mobile work-force. Businesses that need help finding the right solutionscan t ake advant age of th e TELUS Wireless Solutions Roadmap .This tool helps companies understand how wireless tech-nology can enhance th eir business, benchm ark their wirelessinvestments against their peers, and create a personalizedassessmen t. To access the TELUS Wireless Solutions Roadmapand learn more abou t TELUS’ solutions for the energy sector,visit telus.com/fieldservices.

Wireless Solutions that Extendyour Office into the FieldBy Roland Labuh n, VP, Energy Solut io ns, TELUS

Rogers Wireless an-nounced the expan-sion of its world

standard GSM wirelessvoice and data network inNorthe rn Alberta. This$42 million investmentprovides new andbroader service to res-idents in the regionand a range of busi-ness solutions to localcompanies , includingthose operating within the

oil and gas industry.“Wireless customers w howork in Northern Alberta, travelacross the province, or live in thenew coverage areas will find thatthey are now connected in moreplaces than ever before,” says SteveRoberts, Vice President for Rogers inAlberta. “In addition to expanding Canada’s most rless network, we have developed wireless applihelp companies increase efficiency. Our solutionand equipment are designed to help improve bductivity.”

The always growing Rogers network has added with expanded coverage now available in the follo• In th e Peace River area along Highway 58 whiRainbow Lake, Zama, High Level and Fort Vermilioalong Highway 35 to Peace River.

• New coverage and enhanced services in areas Fort McMurray and Fort McKay; and along Hwy ing Lac La Biche, Conklin, and Anzac.• New coverage in Wabasca and Red Earth Creek, Slave Lake and High Prairie.• New coverage in Grande Cache and Northeastand Valleyview.• In Southern Albert a, exten ded co verage is also avHwy 11 between Red Deer and Nordegg and alongForemost an d Manyberries. Northeast of Brooks, seable in Jenner, Cessford and Sunnynook.

Rogers offers the most innovative lineup of including th e BlackBerr y Curve 8900, the BlackBerthe Apple iPhone 3G, the Nokia E71 and the Blackenabling users to stay connected to email and accfunctions while away from the office. For thosedevice in demanding outdoor work conditions, Rthree exclusive ruggedized handsets: the Motorola ZTE Rock, and the Samsung Rugby.

Workers on the move can stay connected withRocket Mobile Hi-Speed Int erne t Stick. The de vice to connect their laptop to the internet from anywa Rogers coverage area.

For business customers in industries needinfleet management solutions, Rogers exclusiNelTrak. This industry-leading system providesasset tracking, expense management capabilitieworker solutions.For m ore information on products, services and n eterage, please visit w ww.rogers.com.

Rogers Expandsits Most ReliableWireless Networkin Alberta

Communica

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22 Oil & Gas Netw ork , June 2009

O n land, in the air or at sea, Inmarsat effectively bringscommunication tools to p eople working in the m ostremote or challenging corners o f the w orld. Poised

at the tipping point for a new generation of technology,Inmarsat is the world’s leading provider of mobile satellitecommunications.

Primarily a satellite ope rator, Inmarsat b oasts a con stellationof 11 satellites positioned roughly 36,000 km from the earth.The cornerstones of the Inmarsat satellite network are threeInmarsat-4 (I-4) satellites. The I-4s are the most advanced andsophisticated satellites providing the w orld’s only mobile broad-band network covering the ent ire globe.

Three satellites are required to span the globe. Two I-4s werelaunched in 2005, while the th ird was launched in August, 2008.In February, a slight repositioning of the satellites optimizedInmarsat’s global coverage. The I-4s are geostat ionary satellitesallowing users to lock on to their position indefinitely.

A 1.5 billion d ollar investment, the I-4s are fully funded, pr o-viding end users with a little bit of reassurance considering theworld’s current economical climate. The I-4’s life expectancywill reach well into the mid 2020’s.

Working with a number of partners and service providersInmarsat offers a wide range of voice and high speed data serv-ices anywhere in th e world.

Broadband Global Area Network- True global coverage foroil and gas

Utilizing the I-4 sate llites Inmarsat’s Broadband Global AreaNetwork service (BGAN) offers the oil and gas industry a uniquepackage: instant voice and high-speed br oadband data tr ansfersfrom a terminal designed for portability and simplicity.

The BGAN term inal is small enough to fit in a backp ack- andlittle technical expertise is required for set up .

“Anyone beyond the reach of standard terrestrialor mob ile networks can take their BGAN terminal out,point it up to the sky, and literally within a minutehave broadband connectivity anywhere in the world,”saysSimon Curran, Inmarsat’s business development manager.

“Users can take c omfort that wh erever they are, no matterhow h arsh the conditions are, they are able to get conn ected.”

BGAN is the only mobile satellite service which offerss imultaneous voice and broadband data t ransfers .Guaranteed streaming data at 384kbps plus, video con-ferencing, email, SMS messaging and analog phoneservice are just a few examples of the possibilities for utilizing thisdevice, anywhere on the planet. BGAN effectively brings con-nectivity to peop le beyond the normal communication networks.

“Users have a broadband connection that will follow themanywhere around the world,”says Curran. “Anything the y coulddo at their desks in their offices, they could equally do out of

their backpacks in the midst of Siberia.”Within the oil and gas industry the primary

use for the BGAN system takes place at explo-ration phase, says Curran. Yet applications fordevelopment, production, supply and trans-mission p hases should not be overlooked.

Teams required to work in remote loca-tions, which can be seismically unstable, or po-litically unstable, have the ability to send databack to the main office in real time. This savestime and money, as teams are able to receiveguidance on location, circumventing delays inthe flow of information.

“Companies can save money on a projectby project basis,”says Curran.

The p ortability and simp licity of the BGANterminal allows for rapid setup and takedown,and enables the coordination of site develop-ment. One BGAN terminal has the ability tosupport 11 simultaneous users.

From a project management perspective,remaining in touch, sending photos, reportsand updates back to the project offices, par-

ticularly if the site is remote, is the key to re-ducing costs and allowing for safety and risk management.

“From a health and safety perspective, thisis import ant,”says Curran . “From a welfare p er-spective teams are able to maintain comm uni-cations with their families and maintain theirlifestyles.”

“Often with any development there is anaffect on the local communities,”says Curran.

A BGAN terminal with prepaid airtime mayhelp the community connect with the world, oftenallowing schools to meet e ducational needs.

“This is a way for oil and gas companies toembrace corporate and social responsibility in a way that costsare controlled,”says Curran.

BGAN can also serve as a reliable back-up to any commu-nications infrastructure.

Once a site is developed, a perm anent satellite solution suchas fixed VSAT, will enable higher data sp eeds. However, BGANoperates on the L Band, a frequency which remains stable despiteweather concerns.

With the SABRE Ranger, a BGAN terminal, unmanned inte-grat ion and remote moni tor ing are possible ut i l iz ingSupervisory Control And Data Acquisition (SCADA) applica-tions. Remote SMS control allows for activation (or deactiva-tion) to perform any SCADA operation. This robust terminalmay be left behind at a site for environmental monitoring.

BGAN is available from Inmarsat’s 16 distribution partnersand a network of over 600 service providers around th e world.

To dice ha

ployed countries.

While BGof these services on land, I

provides FleetBroadband foFleetBroadband provides similar le

nectivity, as a stabilized antenna enabtrack the satellite offshore.

The Stratos AdvantageRecently, Inmarsat acquired its distribution par

which resells Inmarsat satellite services worldwidWith corporate offices in Bethesda, MD, U

John’s, NL, CAN, Stratos is uniquely positioned demanding communications requirements of theindustry.

“Together (with Inmarsat) there are a lot of oto offer customers a premium service,” says Humanager of enterprise vertical markets for Strato

Stratos provides industry-leading value-addedoptimize communications performance with thesatellite ne twork, says Donnan. The Stratos Advantof services that help elevate BGAN from Stratobaseline offerings. These value-added serviceStratos Dashboard, provide users with cost contmanagement, full traffic information, pre-paid fasecurity options, easy VPN access, messaging servIP range.

With a global network of 400 channel partners,vides Inmarsat with insight into customer requimarkets. This partnership provides a unique platand gas companies.

“We see a lot of operators looking for a backuanother satellite netw ork that offers a more globsays. “The entire land mass of the earth is coveresatellites and there is no need for switching to dilites or satellite networks.”

“We see BGAN fitting in as a frontline solutio

nitely a backup at a number of key receiving pointgas companies,” he says. Stratos together withTechnologies, was responsible for the developmAddvalue SABRE Ranger BGAN SCADA terminal.

In terms of oil and gas exploration, the latessolutions enable senior geologists to re main in thing travel time and costs, while technicians are sthe field.

“Technicians are able to collect the data and senback to the head o ffice. Then w ork can begin immeDonnan. “This allows companies to work smarter.

“It’s a very interesting time in oil and gas, theeration of services are collectively regarded as mband se rvices, all available via the I-4 netwo rk,” s“Customers are finding more ways of utilizing BGa little sm arter.”

Inmarsat - On the Horizon

There are two new developments in th e compInmarsat will be the operator of the European SpaAlphasat initiative. The Alphasat I-XL satellite w ill uspectrum to provide advanced mobile services othe Middle East and Africa.

The second development is a global satellitdevice, which will be introduced by Inmarsat in 2

Today, Inmarsat is in a position to offer mobilservices on land, at sea and in the air. With numertion and service partners, such as Stratos, Inmpositioned to offer the oil and gas industry effecbroadband network ser vices.

A new generation of technologyproviding true global coverageBy Joni Evans

New mobile broadband satellite systems, such as BGAN from Stratos, offervoice and high-speed data connectivity via compact, lightweight terminals.

AddvSABBG

Communications

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24 Oil & Gas Network, June 2009

ABB Automation & Power World 2009 breaks attendance records

ABB Automation & Power World 2009, held inOrlando, Florida exceeded event attendanceexpectations and attracted a record number of

participants for any ABB event, totaling more than3,300 attendees.

ABB also annou nced the dates and venue for ABB Autom ation& Power World 2010. The e vent w ill be held at the Hilton Amer icasin Houston, Texas, from May 18-20, 2010.

ABB Automation & Power World combined ABB’s two popularNorth American customer conferences into one single, uniqueevent. The three-day event w as a compreh ensive users conferenceand exhibition that showcased ABB’s extensive automation andpower offerings and expertise under one roof; it included morethan 500 technical workshops and a massive 72,000 square footexhibit hall.

“We are very pleased that so many of our customers were ableto join us for this world-class event, which showcased the collec-tive benefits provided by ABB’s power and automation business-es,” said Rick Hepperla, Event Chairman, ABB Inc. “The goal of thisconference was provide our customers with the tools and knowl-edge to help th em to be more efficient, productive and profitablein today’s challenging economic environment. Many of them toldus they were eager to share and apply this knowledge within theirown business to address their immediate and long-term businessobjectives.”

ABB designed its largest customer event for automics, industrial power and utility power users in engineations, mill, plant and general management, andmanagement in a wide variety of industries.

The convergence of key market issues, such as theprove energy efficiency in the face of soaring energy c

prod uctivity, reliability and safety gains achieved from electrical integration, combined with challenging ecoditions, have exponen tially increased interest in b othautomation. ABB’s unique scope of supply and resideaddresses the entire spe ctrum of the e nergy issues, tion and distribution to use in production and autoprovides customers with the competitive edge they ceed in today’s economy.

ABB (www.abb.com) is a leader in power and autonologies that enable utility and industry customers to formance while lowering environmental impact. The of companies operates in around 100 countries and e120,000 people. The company's North American operquartered in Cary, North Carolina, employ about 12,0020 manufacturing and other major facilities.

Communications

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Oil & Gas Network, June

Globalstar, Inc. www.globalstar.ca, provider of mobile satellite voice and d ata services, an-nounced that leading Simplex data integrator Axonn LLC www.axonn.com has launchedSMARTONE, the Satellit e Managed Asset Ready Tracker. SMARTONE is Axonn’s new est

global asset tracking solution that utilizes the highly reliable Globalstar Simplex data n etwork andenables customers to track the location of their mobile assets virtually anywhere.

The SMARTONE device transm its real-time GPS location, alarm inp uts an d e ngine run-time dataover the Globalstar constellation of low earth-orbiting (LEO) satellites. The small size (6.5” x 3.25”x 1”) and design allows it to be easily installed and field managed without the need for harnesses,antennas, or extern al power. The device is pow ered b y AA size lithium batteries providing up tothree years of battery life. Axonn's cur rent asset management p roduct s are used on a variety of mobile assets such as cargo containers, trailers and railcars, construction and service vehicles aswell as fixed assets like field equipm ent, generators, pipelines, and propan e and fuel storage tan ks.

“In preparation for the launch of our next-generation of enhanced satellite data services, weare very pleased to announce the addition of the SMARTONE product to the suite of asset track-ing solutions th at utilize the Globalstar Simplex ne twork,” said Jim Mandala, General Manager,Globalstar Canada. “With the high messaging reliability of our Simplex data performance and thecontinued expansion of our global Simplex coverage, Globalstar anticipates the introduction of new and innovative Simplex data products and integrated solutions later this year and into 2010,in conjunction with the deployment of our second-generation satellite constellation.”

“There w as a pent up market demand for a sub $200 satellite asset management device thatoper ates on “off-the-shelf” batter ies capab le of pr oviding years of service.”said Dave Biggs, CEOof Axon n LLC. Mr. Biggs added, “We’ve met t hat n eed with the SMARTONE at a pr ice p oint t hatmakes it economically feasible for customers to invest in a device to manage their high value as-sets as well as their previously overlooked lower value assets.”

The Globalstar Simplex data offering is a low cost, one-way satellite data service that permitscustomers to use satellite modems and integrated back office management solutions to track mo-bile assets, such as vehicles, trailers, cargo containers and maritime vessels, using GPS or otherlocation-based technologies. The Simplex data network also provides a platform for personaltracking and messaging solutions for commercial and recreational customers using products suchas the SPOT Satellite GPS Messenger™. Simplex data service can be used for a wide variety of industrial and security applications to monitor and send information from fixed assets, such asenvironmental measuring instruments, utility meters, or report the state of various mobile sen-sor devices and their locations.

Winegard Special Products’Next GenerationTwo-Way Systems Strong on Every Front

The Winegard Company’s Spec ial Products Division is an-swering the need for a robust two-way VSAT satellitecommunications system designed for th e r igorous con-

ditions of the energy and eme rgency response industries.Winegard’s two -way satellite an tennas feature extre mely

heavy-duty construction and incorporate hydrophobically-sealed motors and the strongest, most rugged actuators inthe industry. These features allow for maximum reliability inextreme environments.

And now, its new, next-gener ation WX series of auto -aimersoffers more elevation and azimuth resolution for better finepeaking, and incorporates a mounting option for an oversizedBUC (block up-converter) to achieve higher data rates when necessary.

Winegard two-way VSAT satellite com munications systems are available in 0.9 6 m eter, 1.2 me terand 1.8 meter configurations, as well as a 0.84 meter size specially made for smaller vehicleapplications. All Winegard two-way systems are auto-deployable and provide phone, fax, internetsearch, video, SNG (satellite news gathering), and VoIP (Voice o ver Inter net Protoco l) capab ilities,as well as cell phone backhauls. The antenna subsystem performance can be monitored fromremote locations.

The systems handle slopes of ?2? Other superior design parameters include excep tional snowload (8" deep at 8lbs/cu.ft.), operational wind load (50+mph), temperature tolerance (-40 oF t o122 oF), and typical lock times of three to five minutes.

Unlike other systems weighed down with a cable harness, the Winegard two-way systems offersingle-wire hookup for control of the antenna. “The single-wire coaxial cable hookup is defi-nitely an advantage,”note d Winegard Director of Engineering Jon Manley. “It’s quicke r and easierto install. And, since it’s standar d mater ial, it’s field-replac eable .”

The antenna controller is fully integrated, offers easy to use, single-button operation, and pro-vides excellent user interface with the industry’s only color, interactive touch screen.

A built-in DVB receiver and GPS allow the Winegard controller to work on most platformsavailable in the industry including HughesNet, iDirect, Spacenet, ViaSat, Nera and Comtech. Therack-mountable con troller requires no external PC for operation.

Globalstar Announces Launch of Smartone Satellite-Based Asset Tracking Management SolutionLeading Simplex dat a int egrato r Axonn LLC provides price breakth roug hfor those customers looking to economically manage the location and statusof mobil e assets

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26 Oil & Gas Network, June 2009

WellEz Information Management announced today anexpande d suppo rt program for WellEz.NET, theSoftware-as-a-Service operations reporting system for

the o il & gas indust ry. Brande d as “WellEz On-Deman d”, the n ewhelp desk is a compreh ensive p rogram that integrates multiplesup port mechan isms for clients usin g WellEz.NET. WellEz On-Demand provides clients with a combination of suppor t tools,including email reporting of inquiries, remote login by WellEztechnicians, on-line chat and phone support. Using the remotelogin capability, WellEz technicians are able to see the client’sscreen and address questions immediately.

“WellEz On-Demand has been designed to offer continuousenhancemen t of th e client exp erience, while identifying additionalsources of value available to clients through WellEz services”, saysCharles Jeffery, President and CEO. “The WellEz On-Demand pro-gram is both immediately responsive and engaging with our

clients, leveraging the skills of WellEz technicians whedgeable on oil & gas op erations. Since using Wellnot require purchasing and maintaining software, ouinvest their time in using the information on their fiefrom the WellEz.NET repor ting system. Being responsitive increases efficiencies for our clients and that is o

Through WellEz On -Demand, WellEz te chniciansproactively provide support by diagnosing and addreearly, before the y become c ritical. The ser vice outreis also proving to be an excellent means for clienevaluate the ir field information. WellEz On-Demandto provide clients even greater operational reliabiluse o f the WellEz.NET reporting system, while loggining support request. Part of the service outreach WellEz On-Demand, the program also includes monthat itemize inquiries and resolutions.

Expro to ExpandPresence in Alaskawith NewPermanent Base

Expro, a leading international oilfield service compa-ny, announced today its plan to open a new perma-nent

facility in Kenai, Alaska. The new location will mark thecompany’s second Center of Excellence in North America,the first being in Broussard, La.

The Kenai location will become a multi-service base forExpro, with the first ph ase expected to be comp lete in July2009. The location will integrate well testing, surface sam-pling and data acquisition sub dep artments for testing andcommissioning.

The estimated completion date for the second phase islate 2009. Once completed, the new facility will integrate allof Expro’s well integrity services and expertise in one loca-tion, including its award-winning Cableless Telemetry Systemfor reservoir monitoring (CaTS™), EXCAPE® completionprocess, downhole video technology, calipers and loggingtools, slickline and e-line, providing customers with maxi-mum versatility. The new Expro base will also provide wellintegrity supervision and maintenance services and training,well-site supervision, and abandonment planning services.

“Alaska has been a growing m arket for Expro for th e pastfive years,” said Brett Lestrange, Sr. Vice President, ExproNorth America. “Proximity to our clients is of crucial im-portance, and the decision to establish a perm anent Centerof Excellence in Kenai demonstrates our commitment togrow the business in Alaska, as well as provide local opera-tors with more options and high-quality services fromExpro’s extensive well flow management portfolio. Our ex-panding pre sence in Alaska is more e vidence of Expro’s com-mitment to invest in long-term opportunities in NorthAmerica.”

Expro currently has 26 permanent employees in Alaska,and all the personnel are multi-skilled and cross-trainedto wo rk with the full por tfolio of Expro services. The com-pany plans to recr uit additional staff and a permanen t basemanager upon comp letion of Phase 2.

Expro’s current client roster in Alaska includes ConocoPhillips, Chevron, Anadarko, Marathon, Pioneer and

Armstrong, among others.

WellEz launches WellEz On-Demand TM, an integrated supportprogram that enhances the WellEz.NET reporting system

Record numbers bid on equipment in unreservedRitchie Bros. Grande Prairie auction

Ritchie Bros. Auctioneers conducted the auction at its per-manent auction site in Grande Prairie on April 15 & 16,2009, setting new site records for total and online bidder

registrations, as well as online sales. One in four peop le registeredto bid in real time over the internet; online bidders purchased

almost CA$11 million (US$9 m illion) o f equip men t. Among over2,300 items sold: construction, agricultural and transportationequipment, consumer items and re al estate.

“A lot of people are selling equipment right now because of the downturn in the local market, making it even more impor-tant for them to reach beyond the region for buyers,”said BrianPodruzny, Ritchie Bros. Regional Manager.

“A diverse range of quality equipment from reputable con-signors and the knowledge that every item would be sold for fairmarket value on auction day attracted record numbers of biddersto our Grande Prairie auction. Buyers from outside Alberta pur-chased more than a third of the equipment. It's clear that morepeople are looking for used rather than new equipment at the mo-ment - and the y want to b uy it in a fair, transparen t environm ent.”

Terry Coray of Crater Enterprises in Grande Cache, Alberta,was one of over 300 consignors in Grande Prairie. He sold mil-lions of dollars of equipment at the un reserved auction as partof a major company realignment.

“We were working at a major mining operation and that work

ended abruptly, leaving us with a large amount of sumen t to liquidate,” said Mr. Coray. “We looke d at ooptions and realized we couldn’t afford to hang on tment and wait for it to se ll pieceme al. We dec ided thauction was our best option, and if you're going to

tion, there’s only one company you can rely on: RThey did a very p rofessional job. We’ve be en able t o minvest in a concrete and gravel operation.”

Ritchie Bros. is also pleased to announce that it rtributed to the development of the new MontroCentre in Grande Prairie, which will serve as the nethe Grande Prairie Public Library and the expandedGallery. The Comp any's donation will fund the ChildrCentre in the library.

“We believe in giving back where our customployees live, work and play,”said Kevin Tink, Ritchie Vice President. “We are a proud member of the Grcommunity and this project was an easy decision fwill not only service the Grande Prairie region but aresource for all of the neighboring communities for yWe applaud the efforts of the volunteers and all thethat have worked so diligently to achieve this reality. Topportunity for us to give back to the communities th

ported Ritchie Bros for many years and we thank yo

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Oil & Gas Netw ork, June

Industrial Scientific has ann ounced the th eme “Don’t Buy Gas Detectors”in supp ortof iNet™, a software-based subscription service for gas detector fleets. Industrial

Scientific currently supports over 24,500 gas detectors and 3,600 DS2 DockingStations™ in over 930 iNet customer sites around the world. iNet enables organizationsto keep workers safe from gas hazards without actually owning gas detector s.

Kevin Miller, Industrial Scientific’s Vice President of Global Sales, Services andMarketing, said that for m any peop le, buying and maintaining gas detectors is like b uy-ing and maintaining tires. “No one likes to do it, but everyone has to,”he said. “All tireslook simple and similar, yet they are surp risingly comp licated. You h ave to t rack tiredata – air pressure, wear, and rotation schedule. They have to be serviced. This is painfulfor busy people. And, if you buy the wrong tire or fail to maintain it, accidents mayhappen.

“It’s the same with gas detectors,”he con tinued. “No one likes to buy and maintaingas detectors, but historically, there were no oth er safe options. Gas detectors look sim-ple and similar, but selecting the r ight one and setting it up correctly is often tedious.Like tires, gas detec tors also h ave to be serviced regularly. You h ave to trac k lots of data– equipment usage, calibration records, sensor life, and most importantly, alarm events.This is painful for most organizations. And, if you don’t properly manage your gasdetectors, your expenses go up and accidents may happen.”

iNet offers customers an escape from the original model of buying and maintain-ing gas detectors. It eliminates the costly, up-front purchase. And it mitigates time-con-suming, out-of-control maintenance costs. iNet o ffers support from the Gas DetectionPeople, Industrial Scientific emp loyees who have dedicated th eir careers to gas detec-tion. It also gives customers complete visibility into their gas detection program,including the knowledge of potentially deadly alarm events. Finally, customers do nothave to bu y the gas detectors. They subscribe to iNet. In exchange for a month ly fee,they receive gas detection as a service.

iNet is a better way to do gas detection. As customers dock Industrial Scientific-owned gas detectors on DS2 Docking Stations, iNet automatically performs record-keep-ing, bump tests, and calibrations. It e-mails real-time alerts, and when iNet detects aproblem, Industrial Scientific rushes a replacement gas detector to th e customer. All “Don’t Buy Gas Detectors”and iNet materials are available at www.dontbuygas-detectors.com

Atlas Copco Drilling Solutions announces the introductionof the Predator Drilling System at the Offshore TechnologyConferenc e in Houst on, Texas. The Predato r Drilling System

is a three-component, integrated package consisting of a mobiledrilling rig, substructure support system and a pipe handling skate.

Hydraulic carrier driveThe Predator’s single 950 hp (708 kw) engine and hydraulic

system powe r both t he carr ier and the d rill . The engine iscapable of producing full torque to the w heels at any speed. Thehydraulic carrier features a dynamic braking system, which is bothquiet and efficient. It also has the ability to drive in “creep mode,”which p rovides p recise control and vehicle p lacement in off-roador extreme driving conditions.

Mobile drill rigPredator is a mobile, self-contained rig with 200,000 lb (90718

kg) hook load capacity. It incorporates a unique telescopic mast that reduces overall rig-trans-port length while maintaining the capability to handle Range II and Range III pipe and casing.The Predator pipe handling and breakout system is virtually hands free. Its dual-range hydraulictop drive tips out to handle drill pipe and casing. Predator also uses an iron roughneck and hy-draulic slips. The operator can set the top-drive torque limit so that every joint of pipe and cas-ing is made up to specification. Predator is designed to push, pull, rotate and flush tubulars.

Predator ’s mast and substr uctur e are engineer ed to API 4-F. The hydraulic c ylinder hoistingand pulldown system provides high mechanical and hydraulic efficiency, which may reduceoperating cost. The electronic control system is designed to be precise and reliable. Predator’s“on demand”hydraulic system allows the driller to allocate power to various drilling systemsas needed. This capability can improve drilling performance and reduce operating cost. Theoperator’s console and monitor can be placed either on the work floor or in a drill cabin.Predator provides the operator with real-time surface and dow n-hole information to m aximizedrilling performance at all times.

SubstructureThe Predator substructure is an integral part of the

tem. A self-contained r ig support system, it is designedstrong, structural base for the rig. The master bushing, hand iron roughneck are part of the substructure and trFour hydraulic blocking jacks are provided to make levestructure fast and simple. The large 190 ft 2 (17.6 m2) wdesigned with drill-crew efficiency and safety in mind.substructure is a single load, it can be deployed with leand manual labor, reducing time and cost.

SkateThe Predator skate is a single skid-mount ed load. I

to hand le Range II (30') o r Range III (40') oil field drillas Range II or Range III casing up to 24 inches (diameter. The skate has foldout p ipe racks on both sidehydraulic jacks so that pipe will roll onto or off of th

The control system for pipe handling can be located on the work floor and/or at gro

New technology“Predator is an examp le of the nex t generation of mobile rigs,” said Ron Buell

business development. “Its new and p roven technology reduces time and cost but alsafety, reduces manual labor and minimizes environmental impact.”

The Predator Drilling System offers contractors a lightweight, mobile packagemobilized and rigged up quickly. It targets vertical, directional and horizontal explproduction wells in the 6,000 - 10,000 ft (1800 – 3000 m) depth range. It is also wdrilling and casing surface and interm ediate holes for deep er we lls.

Predator ™ Drilling System from Atlas Copco Drilling SolutionsDesign incorporat es mobi le rig, subst ructure, and pipe-handling skate

“Don’t Buy Gas Detectors”Theme Introduces Gas Detection

as a Service

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28 Oil & Gas Network, June 2009

Western Canada Natural GasProduction Outlook to 2020

Ziff Energy Group announces the release of an executive report analyzing the deural gas production outlook through 2020 within Western Canada, the second ural gas pro ducing region in North America. Th is topic paper forec asts gas pr

gas type (Solution, Existing, New Convention al,Tight Gas, Coalbed Methane, and Shale Gas), and by Ziff Energy’s ten Gas Strategy

each of the 10 gas strategy regions, the report provides a 10 year outlook of:• expected gas well completions• productivity of new gas wells• gas prod uction de cline rates, for both new and ex isting gas wells• gas prod uction forecast for each strategy.

Wester n Canada is maturing , and high natural gas drilling is not able to maintain duction. Gas production peaked at 17 Bcf/d in 2001 and Ziff Energy believes gas prodecline to under 14 Bcf/d by 2020, consistent with our view of the past several including strong growth of Shale Gas production from the Horn River basin in NorthColumbia. The analysis exclude s the Mackenzie Delta and Alaska. Ziff Energy’s analythat by 2020:

• h alf of today’s gas production c omes from w ells connec ted in the last 5 ye• n ew gas well complet ions will likely contr ibute over 70% of gas produc tion• 2 Bcf/d of new gas is needed each year to replace declines.

In 2007 and 2008 Alberta producers reduced gas drilling in response to poor econprices have plummeted since summer 2008 and producers have reacted by slashing cing. In Alberta, the threatened royalty increases have made the cuts deeper.

Figure 1 indicates the composition of Western Canadagas production in 2020, by gas type: Solution,Existing, New Conventional, Tight Gas,

Coalbed Methane (CBM), and Shale Gas.

Figure 12020 Western Canada

Gas Product ion

Alloy Screen Works introducesnew premium sand screen

Alloy Screen Works, , has introduced a new product to complimenttheir exte nsive line of dow nhole sand c ontrol scre ens. The ASW/CTPremium Screen was developed specifically for thru-tubing com-

pletion applications. Innovative new manufacturing technology has result-ed in a close tolerance (CT) method of construction that produces a slimhole screen, which surpasses the specifications of other thru-tubing screen scurrently available.

This new ASW/CT design involves the use o f diffusion-bonde d sintere d-laminate woven wire mesh c ombined with a robust outer perforated pro-tective shroud over a perforated base tube. Diffusion-bonded laminatemesh is well recognized as a superior downhole sand control media. AlloyScreen Works has de veloped a p rocess to weld th e med ia “flush-on”directlyto the inner p erforated tube of the scree n assembly. This integrated processgreatly enhances th e screen’s strength and red uces the overall OD whencoupled to the close tolerance outer shrou d. These two attributes are cr u-cial when considering the downhole restrictions encountered by thru-tubing well screens.www.alloyscreenworks.com

Other recent Ziff Energy reports include:• Shale Gas Outlook to 2020• North American Demand Outlook to 2020• Natural Gas Implications of Greenho use Gas• Mexico’s Gas Supp ly / Demand Outlook to

2016• Global LNG Outlook to 2020• Natur al Gas Oppor tunities for Ethano l• Gas Price Differen tials Forecast t o 2017• North Amer ican Gas Storage

• Henry Hub Gas Price Outlook to 2017• North America Gas Supp ly - The Next Decade• North American Power Generation to 2017• Canadian Natural Gas Expo rts to 2020

• 2007 U.S. and Canadian Gas Re• Replacement

• Pipelines for Growing Oil Sands• Nor ther n Gas Moving Forward• North American Pipeline Const• LNG Term inals – Costs and Tim

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Oil & Gas Network, June

Dresser Waukesha, manufacturer of n atural gas engines thatdeliver clean, cost-effective power, has introduced its275GL™ Series engines, a new generation of high-

performance engines for the gas compression market.The new 275GL Series combines the robust constr uc-

tion and reliable operation of Waukesha’s ATGL® Serieswith design and engineering updates and an enhancedengine con trol system. The resu lt is a new, high-perform anceengine series that enables customers to maximize efficiencyand minimize fuel cost while greatly simplifying and improvingpackaging, operation and service.

The 275GL Series has been designed with factory-mountedlube oil and cooling systems, which reduce the time and costrequired to design, fabricate, and integrate the 275GL into acompressor package. Other features include an upgraded oilfiltration system with plate-type oil cooler and spin-on dis-posable lube oil filter elements, and quick disconnects forignition coils and thermocouples. These improvements, alongwith new design features that are common to both the 12- and16-cylinder models, streamline and optimize the 275GL Series.

Standard on the 275GL Series is an enhanced version of Dresser Waukesha’s easy-to-use con-trol system, the Engine System Manager (ESM®), which has be en proven on t he comp any’s VHP®Series and the state-of-the-art APG® (Advanced Pow er Generation) Series. The ESM is a reliabletotal engine management system designed to optimize engine performance and maximize

uptime by integrating spark timing control, turbocharger control, speed governdetection, start-stop control, diagnostic tools, fault logging, engine

air/fuel ratio (AFR) control. The ESM is factory-mountedand tested to minimize on-site set-up requirement

users to m onitor critical engine functions in ormize efficiency and minimize fuel cost.

The 16-cylinder (16V275GL) version ofengine is available now and is rated at 4500 cylinder (12V275GL) mo del w ill be available quarter of 2009 and will be rated at 3375percent higher than the 12-cylinder ATGL mo

“The m arket for higher horsepow er encompression applications is continuing toBill Moore, senior vice president of opEnerflex, Dresser Waukesha’s Canadian

Enerflex has worked closely with Waukdevelopment of the 275GL Series.

“The 275GL engines are equipped with the latest version of ESM engine control system, a key feature that will help these engines gain market

Moore said. “For en gines of this size, it all comes down to having an effective con troperate with m aximum reliability in rem ote locations w hile meeting efficiency reWith the introduction of the 275GL Series, Waukesha is delivering a product that Eother customers can successfully adopt in this market.”www.waukeshaengine.dresser.com

New SWT seriesDynalco, a Crane Co. company, announces a brand

new SWT series of speed switches for themonitoring and protection of rotating

and re ciproc ating machiner y. The SWT seriesof speed switches are DIN rail mountable foreasy installation and are fully isolated forcompatibility with existing systems.

The SWT-2000, a 2 Channel SpeedSwitch/Transmitter, contains two isolatedspeed switches in one package. The SWT-2000 is able to mon itor and protect tw o separatemachines or processes simultaneously, with sep-

arate 4-20 mA proportional outputs. It alsocontains (4) relay setpoints and (2) op en col-lector outputs with a variety of configurationoptions. Applications would include dual tur-bocharger protection and redundant protec-tion for critical operations. Programming isdone via an Ethernet connection.

The SWT-1000 Speed Switch/ Transmitter has a single relaysetpoint for over speed protec-tion and provides 4-20mA iso-lated output. This product isconfigurable via Windows®software.

The SWTD-1000 SpeedSwitch/Transmit ter has t hesame functionality as the SWT-1000 and includes an integrat-

ed backlit display. This pr oductis software programmable andutilizes a 1/8 DIN package foreasy installation.

The SW-100 is a DIN railmountable speed switch that uses a single setpoint for over/underspeed protection. The SW-100is simple to con figure – no test equipme nt or com puter is needed.

Dynalco has a reputation for providing rugged and dependable p roducts for the oil and gas pro-duction, natu ral gas pipeline, and pro cessing industry. The SWT series enh ances th e cur rent Dynalcoline of speed switches and transmitters, allowing a wide range of solutions for machine monitor-ing and protection.

For more information visit www.dynalco.com

Dresser Waukesha Introduces High-PerformanceEngines for Gas Compression MarketNew 275GL™ Series Engines Minimize Fuel Cost While Simplifying and Improving Packaging, Operation and Service

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30 Oil & Gas Network, June 2009

ABB Inc.www.abb.com/oilandgas

ASCOValve Canadawww.asco.ca

Axia NetMedia Corporationwww.axia.com

Baker Hughes Canadawww.bakerhughes.com

Control M icrosystemsww w.controlmi crosystems.com

Dmg Worldmediawww.petroleumshow.com

Dow M icrobial Controlwww.dow.com/biocides

Edmonton Exchangerwww.edmontonexchanger.com

Fiberspar Linepipe Canada Ltd.www.fiberspar.com

Flexpipe System s

www.flexpipesystems.com

FLIR Syst ems Lt d.www.flir.ca

Halliburt on Energy Serviceswww.halliburton.com

Inmarsatwww.inmarsat.com/oilgas

Langara Fishing Advent ureswww.langara.com

Mattrackswww.mattracks.com

Molexwww.molex.com

Naiad Company Ltdwww.naiad.ca

Net Safety Moni tor ing Inc.www.net-safety.com

Nort h Rig Catw alk Technologieswww.northrig.com

Petr o-Canada Lubricantswww.lubricants.petro-canada.ca/mining

Prinoth Ltd.www.prinoth-utilityvehicles.com

Rogers Wirelesswww.rogers.com

Singletouch Canada Incwww.singletouch.com

TELUSCommunications Inc.

www.telus.com

Volant Productswww.volantproducts.ca

Wainbeewww.wainbee.com

Wellons Canadawww.wellons.ca

Wood Group ESP (Canada) Ltd.www.woodgroup.com

directory of advertise

Flir Announcement

FLIR Systems Ltd. is pleased to ann ounc e th e addition of JFC Solutions o f Burnaby, BC as manufacturing agents for FLIR infrared cameras andExtech Instruments for Electrical/MRO distribution from Ontario

west to British Columbia.FLIR acquired Extech Instruments in 2007.

The tremendous momentum of both its’pro-prietary test and measurement products andthe global-leading infrared systems in dis-tribution has necessitated an expansionof it’s already, extensive customer sup-port offering. JFC Solutions, with over 13

years experience exceeding expectations as amanufacturer’s representative, has been

added to support FLIR’s national distri-bution part ner s; EECOL Electr ic, Acklands Grainger

(T&M) and Wesco Distribution.

Specialized Hardbanding System

Rankin® Automation has developed a specialized hardbanding system for

tough tungsten c arbides to a wide variety of drilling equipment subject to abrasion. Drill collars, stabilizers, flights, tool joints, and scr aper s will beextended operating time thereby improving bottom-line performance. Rankin® Aoffers both field-based and shop-based hardfacing systems that are cost efficient tical in design.

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