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Transcript of Pipeline News September 2012
PIPELINE NEWSSaskatchewan’s Petroleum MonthlySaskatchewan’s Petroleum Monthly Canada Post Publication No. 40069240
September 2012 FREE Volume 5 Issue 4
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Element Technical Services supervisor Josh Ho man bleeds o the valves on the manifold during a job in southeast Saskatchewan. Element is a new player in the hydraulic frac-turing arena, star ng opera ons in Carlyle in March. See story on Page B18. Photo by Brian Zinchuk
See you at the See you at the Lloydminster Lloydminster
Heavy Oil ShowHeavy Oil ShowSept. 11-13Sept. 11-13
Shake'N Bake:Shake'N Bake:Frac & Thermal StimulationFrac & Thermal Stimulation
SECTION A4 Co-op Apologizes For Re nery Fire
6 Editorial
11 Minister Of Economy One-on-One
14 Economist Tackles Nexen Sale
17 Husky Transi ons To More Thermal
19 Lakeland College Pumped For Fall
25 Convoy For Hope
29 Kerrobert THAI Ramps Up
INSIDE
SECTION C1 Carndu Oilmen's Golf Tournament
3 Torq Launches Bromhead Transloading Site
5 Shortline May Haul More Crude Than Kernels
8 Crescent Point Resumes Drilling
13 Shi ing Gears: Honouring Tim Floden
15 Trican Establishes Manitoba Beachhead
SECTION B1 Lloydminster Would Like To Host More Events
4 Aquistore Holds Open House At Well Site
8 "Scooter" Boyes and His Boys
11 Panther Drilling Adds Rig 4
15 Do You Believe Climate Change Is Occurring?
18 Element Technical Services: New Frac Company In Carlyle
Stacey [email protected]
PIPELINE NEWSNEWSSaskatchewan’s Petroleum Monthly
Oct. 2012 FocusContact your Sales Rep
to be a part of the focus edition
SE Sask and SW Manitoba - for all of your advertising needs contact:Ph: 306.634.2654 Fax: 306.634.3934
Cindy BeaulieuSales Manager
Candace [email protected]
Deanna [email protected]
Kristen O’[email protected]
Teresa [email protected]
NW Sask - for all of your advertising needs contact:
Cell: 780.808.3007 Fax: 780.875.6682
Randi [email protected]
SW Sask - for all of your advertising
needs contact:Ph: 306.773.8260 Fax: 306.773.0504
OIL SHOW COVERAGE & TOP JOBS IN THE PATCH
A2 PIPELINE NEWS September 2012
By Geoff LeePipeline News
Lloydminster – Th e 19th annual Heavy Oil Tech-
nical Symposium organized by the Lloydminster
Society of Petroleum Engineers could go into the
history books as the most well attended.
For the fi rst time, the symposium is being held
in conjunction with the Lloydminster Heavy Oil
Show Sept. 12-13, a fact that should attract a large
audience for presentations in the Prairie Room at
the Lloydminster Exhibition Grounds.
“I am actually surprised we haven’t done it
before,” said symposium chair Mark Bacon.
“In the past – I wouldn’t say we compete – but
we would run them at similar times and that likely
caused the attendance at some of our events to go
down.”
Bacon credits the anticipated success of both
events to the double-duty role of Mike McIntosh
who is the chair of the oil show and a member of
the symposium committee.
“It just made sense that we should be running
these together and having Mike on the committee
for both events makes it extremely helpful to do it
this way,” said Bacon.
Bacon will handle the introductory remarks
at the two-day symposium and introduce all four
speakers..
“What it means is that we can get more specifi c
speakers,” said Bacon.
“When people know there’s a much larger
audience, we can get speakers that are much specifi c
to the Lloydminster area. It will appeal better to the
general public and the people in the area.”
Attendance is free for all sessions in the Prairie
Room.
Th e symposium will kick off on Sept. 12 with a
2 p.m. talk titled Rodless Lift Solution for CHOPS by Tommy Kulak, gas lift and hydraulic lift operations
manager at Weatherford.
Th e opening day will wrap up with a 3 p.m.
presentation called Improved Solids Handling Using a New Demulsifi er by LaFrance Rhone, a senior
chemist from Baker Hughes.
Michele Tesciuba, project manager at Schlum-
berger, will kick off the fi nal day of presentations on
Sept. 13 at 9 a.m.
Her presentation is titled Innovation and Col-laboration in Heavy Oil: To take the industry further and deeper into heavy oil recovery.
Th e symposium will wrap with a 10 a.m. pre-
sentation by Brett Davidson, president and CEO of
Wavefront Technology Solutions titled, An In-troduction to Powerwave for Improved Flooding and Stimulation Approaches.
Bacon said the agenda was confi rmed in early
July after receiving good response to calls for tech-
nical submissions.
“We actually had a very good response this year.
We had nine or 10 submissions at least for only
four slots,” said Bacon who is counting down the
days.
“Th ere’s quite a bit of interest. We’re expect-
ing a lot of turnout. It’s worked out really well and
we’ve got good quality speakers lined up.
“It’s been running for a quite a long time, so
there’s a lot of public interest in it as well.”
Attendance at some leading oil and gas shows
in 2012 has reached record levels including 63,000
attendees to the 2012 Global Petroleum Show in
Calgary June 12-14.
Th e 20th annual Williston Basin Conference
held this year in Bismarck, North Dakota, attracted
a record 4,033 registered attendees, representing 46
states, seven provinces and nine countries.
Next year, the show moves to Regina where
Canadian attendance records could be set due to
the continued growth of Saskatchewan’s oil and gas
and resources economy.
“I think a lot of it is people recognize that
things are going to pick up – 2014 and 2015 are go-
ing to be very big years,” said Bacon.
“Anybody who is the industry recognizes that,
and they want to get a jump-start on it as much as
possible.”
Bacon works for Champion Technologies in
Calgary and was interviewed in Aberdeen, Scot-
land, where Champion has its United Kingdom
regional headquarters.
“Aberdeen is all based on North Sea so every-
thing is off shore,” said Bacon.
“We are trying to collect best practices from all
around the world from within our company.
“We are getting hold of what they are going in
the North Sea and trying to fi gure out what we can
take from that and bring to places like Cold Lake
and Lloydminster.
“It’s a good trip and to see how people do
things slightly diff erent. Th ere is always a lot you
can learn.”
Bacon said his trip was well timed as there is
nothing left to do to get the symposium up and
running except show up, introduce the speakers and
lead the applause.
PIPELINE NEWS September 2012 A3
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Early applause for Lloyd symposium
Mark Bacon, who is pictured at the 2011 Heavy Oil Sym-posium, is the chair of this year’s Heavy Oil Technical Symposium being held in conjunc on with the Lloydmin-ster Heavy Oil Show Sept. 12-13. Bacon’s commi ee has lined up four speakers who will address heavy oil produc- on in their talks. File Photo
Mike McIntosh kicked o the 2010 Lloydminster Heavy Oil Show banquet and will likely do so again as the chair of this year’s organizing commi ee. The guest speaker at the Sept. 11 evening banquet will be Kevin Casper vice-president of produc on for Devon Canada Corpora on.
A4 PIPELINE NEWS September 2012
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Invicta completes six-well drilling program
Invicta Energy Corp.
announced the completion
of its second-quarter six (3.3
net) horizontal light oil well
drilling program at Kinders-
ley, Saskatchewan.
Due to wet weather con-
ditions in the quarter, four of
the wells were still in initial
fl ow back as of Aug. 7, but
at favourable rates. Th e fi rst
two wells of the program
have been producing for two
months at an average rate of
45 and 75 bpd, respectively.
Based on the initial produc-
tion rates of the six wells,
Invicta expects these wells to
outperform the company’s
forecasted type curve.
Current net fi eld pro-
duction is estimated to be
over 400 boepd (85 per cent
light oil). As these wells sta-
bilize they will be tied into
the company’s production
facilities.
In addition, Invicta said
it has added over 10 sections
of 100 per cent land through
Crown land sales and acqui-
sitions and now has 53,232
net acres of land in Alberta
and Saskatchewan. From
this developing land base,
Invicta has the potential to
develop a second core re-
source base to complement
its current development on
lands in Kindersley.
By Brian ZinchukPipeline News
Regina – It all came down to corrosion.
Th at was the conclusion of the report by the Regina Fire
and Protective Services into the explosion and fi re at the Co-op
Refi nery Complex last fall. Th e report was released on Aug. 16.
Scott Banda, CEO for Federated Co-operatives Ltd., apol-
ogized for the explosion and fi re at the Regina Consumers’ Co-
operative Refi neries Limited (CCRL) complex that injured a
number of workers.
At 2:06 p.m. on October 6, 2011, a fi re began in the pro-
cess area of the middle distillate unifi ner. Th e CCRL fi re and
emergency response team controlled and extinguished the fi re
with mutual aid support on standby from the Regina Fire and
Protective Services.
Th e fi re caused major damage to the compressor building,
pipe rack east of the compressor building, and adjacent compo-
nents.
Th irteen people were transported to hospital, 10 by emer-
gency medical services, and another three by a contractor work-
ing on the site, according to Vic Huard, Co-op vice-president of
corporate aff airs, who spoke with Pipeline News last October.
Of the 13 taken to hospital, 10 were treated and promptly
released. One was treated and released shortly thereafter. A fur-
ther 23 people reported injuries to Occupational Health and
Safety, but none of these required medical treatment at a hospi-
tal, according to Huard.
Page A5
Co-op apologizes for re nery reCo-op apologizes for re nery re
The Co-op Re nery Complex had a substan al re on Oct. 6, 2011 that injured several workers. This photo was not taken on that day. File photo
PIPELINE NEWS September 2012 A5
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Th e Manitoba govern-
ment collected $565,005 at
its August land sale, and has
one sale left this year to try
to break its all-time annual
bonus revenue record.
A total of 1,738.33 hect-
ares exchanged hands this
week at an average price of
$325.03. Year-to-date the
province has attracted $11.13
million in bids on 17,049.18
hectares at an average price
of $652.73. To the same
point of 2011, the govern-
ment had brought in $10.1
million as 17,798.03 hectares
were sold at an average price
of $567.60.
Last year, Manitoba set
an all-time calendar year bo-
nus revenue record of $13.14
million.
Highlights of the August
sale included EOG Resourc-
es Canada Inc. paying the
highest price per hectare for a
parcel located in the Waskada
area. Th e fi rm paid $1,052.62
per hectare and tendered a
bonus of $16,841.92 for the
16-hectare parcel. Th e com-
pany picked up the rights to
legal subdivision two of sec-
tion 11 at 2-25W1.
Fire Sky Energy Inc.
picked up two parcels, which
combined for $444,444. Each
256-hectare parcel tied for
the land sale bonus high of
$222,222, producing an av-
erage price each of $868.06.
One parcel included all of
section 20, the other all of 29
at 6-29W1.
Th is was the third of four
sales scheduled for 2012. Th e
next sale will be held on Nov.
14.
MB land sale draws $565,005 in bonus bids
Page A4
“On behalf of everyone in the Co-operative Retailing Sys-
tem, we regret what happened last October and apologize to
the citizens of Regina and surrounding area who we consider
our neighbours and who we have grown up with since 1935,”
said Scott Banda. “October 6, 2011 was a dark day for all. We
are recovering. We are rebuilding. And we are moving forward
thanks to the dedication and eff orts of all our employees as we
work to ensure overall operational integrity in order to regain
the trust of the community.”
Th e investigation reveals a high-pitched whistle was heard
by numerous witnesses immediately prior to the fi reball which
enveloped the east pipe rack. Th is was followed by two and pos-
sibly three explosions after the initial fi reball.
Th e generation of overpressure from the initial fi reball or
release was enough to cause the boom of a crane located ap-
proximately 40 metres away to sway violenty. Th e crane operator
fell from the machine to the ground.
Th e concrete pad east of the compressor building was found
to have solidifi ed aluminum alloy on it that had previously melt-
ed. On top of this they found masonry building materials from
the compressor building, indicated the compressor building east
was dislodged after the initial failure.
Banda spoke with Pipeline News by phone on Aug. 17.
“It was accidental in terms of categorization. Th eir conclu-
sion was it was a reactor effl uent line that blew apart.”
Th e culprit was a six-inch line on a straightaway that con-
tained half-processed diesel, hydrogen, and hydrogen sul-
fi de.
“Th ere was a 7.25 inch rupture in that line where it blew,”
Banda said.
Th e pipe was located in the MDU. Built in 1961, the
MDU was being prepared for extensive renovations at the
time of the fi re.
As for the ignition source, Banda said there were mul-
tiple possible sources, but it was most likely set off by a static
discharge due to pressure.
“It was just a matter of time,” he said.
Putting into context the scope of the refi nery, he noted it
is a 640 acre site with 33 process units and over one million
feet of piping. Th e area aff ected was half an acre in size.
Corrosion inspection is typically done visually, via cut-
ting and inspecting the pipe, or through X-rays inspection.
“In this particular part, in 2010, corrosion at the end of
the line was replaced. We missed a part further up the line.
We apologize. We simply missed some,” Banda said.
Th e 2011 fi re was the second major incident in the 75
year history of the refi nery. “We’ll get better,” Banda prom-
ised, adding there have been 19 changes made in processes
and inspections.
“We have to improve and we will improve. We are better
than we were a year ago.
“Th at area of the fi re has been completely removed and
rebuilt. Eighty per cent of the piping in the area has been
changed, the rest inspected.”
“It’s been very tough on our people. Th at (safety) is our
culture.”
Th ere has been a lot of counselling as well as group ses-
sions.
Th e refi nery is a huge complex critical to the economy of
Western Canada, he noted.
Asked about those who were injured, Banda said he
couldn’t comment on them. Th ey were employees of contrac-
tors, and there is a workers’ compensation process in place.
He added, “We have no information.”
When characterizing the dollar value of the damage and
business interruption, Banda said, “$100 million is a good
start.
“We’re down on our diesel production.”
Th ose impacts were felt last winter, when a diesel short-
age on the prairies had truckers scrambling to fuel up. Diesel
fuel production won’t be restored until November this year.
Th e refi nery is just nearing completion of Section 5, its lat-
est addition. Banda noted it is a few weeks away from startup.
Mechanically, the construction is basically complete.
A number of revamps are also underway and nearing com-
pletion. Th e addition of Section 5 and the revamps cost over $2
billion, “and we’re not done yet,” Banda said.
Page A8
How did it blow?How did it blow?Th e report of the Regina Fire and Protective Services
stated:
“Th e reactor effl uent line ... located within the middle
distillate unifi ner 5, 6, 7 suff ered a catastrophic failure to a
small portion of the line. Th e rupture area was located in a
pipe rack adjacent to the east side of the compressor building.
Th is failure is defi ned as a mechanical explosion. Data re-
corded indicates that the system was functioning as expected
immediately prior to the failure, with no anomalies recorded
in the hours leading up to the failure. Given the processes in-
volved in that area of the facility, coupled with the numerous
ignition sources and abundance of ignitable liquites, the fi re
that ensued would have been inevitable.
“Th e initial blast overpressure was experienced immedi-
ately following the ignition of the combustible liquid leaving
the ruptured reactor effl uent line is classifi ed as a combustion
explosion. Th ese explosions are frequently characterized by
the presence of fuel with air and an oxidizer. In combustion
explosions, overpressures are caused by the rapid volume pro-
duction of heated combustion products as fuel burns. Given
the large volume of product under pressure leaving the rup-
ture, explosions of this nature are common in this circum-
stance.
“All the damage sustained in this portion of 5, 6, 7 is
as a result of the ruptured reactor effl uent line. Direct fl ame
contact or radiant heat from the initial fi re caused a number
of hydrogen product lines to breach, thus intensifying the en-
suring fi re on other portions of the aff ected area.”
A6 PIPELINE NEWS September 2012
Publisher: Brant Kersey - Estevan
Ph: 1.306.634.2654
Fax: 1.306.634.3934
Editorial Contributions: SOUTHEAST
Brian Zinchuk - Estevan 1.306.461.5599
SOUTHWEST
Swift Current 1.306.461.5599
NORTHWEST
Geoff Lee - Lloydminster 1.780.875.5865
Associate Advertising Consultants:SOUTHEAST
• Estevan 1.306.634.2654
Cindy Beaulieu
Candace Wheeler
Kristen O’Handley
Deanna Tarnes
Teresa Hrywkiw
CENTRAL
Al Guthro 1.306.715.5078
SOUTHWEST
• Swift Current 1.306.773.8260
Stacey Powell
NORTHWEST
• Lloydminster Randi Mast 1.780.808.3007
MANITOBA
• Virden - Dianne Hanson 1.204.748.3931
• Estevan - Cindy Beaulieu 1.306.634.2654
CONTRIBUTORS
• Estevan - Nadine Elson
To submit a stories or ideas:
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stories from our readers. To contribute please contact your
local contributing reporter.
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Pipeline News has a group of experienced staff work-
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please contact the sales representative for your area to as-
sist you with your advertising needs.
Special thanks to JuneWarren-Nickle’s Energy Group
for their contributions and assistance with Pipeline News.
Published monthly by the Prairie Newspaper Group, a divi-
sion of Glacier Ventures International Corporation, Central
Offi ce, Estevan, Saskatchewan.
Advertising rates are available upon request and are subject
to change without notice.
Conditions of editorial and advertising content: Pipeline
News attempts to be accurate, however, no guarantee is given
or implied. Pipeline News reserves the right to revise or reject
any or all editorial and advertising content as the newspapers’
principles see fi t. Pipeline News will not be responsible for
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is not responsible for errors in advertisements except for the
space occupied by such errors.
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mitted for possible publication.
All of Pipeline News content is protected by Canadian
Copyright laws. Reviews and similar mention of material in
this newspaper is granted on the provision that Pipeline News
receives credit. Otherwise, any reproduction without permis-
sion of the publisher is prohibited. Advertisers purchase space
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parts thereof may be not reproduced or assigned without the
consent of the publisher.
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mation from our customers in the normal course of business
transactions. We use that information to provide you with
our products and services you request. On occasion we may
contact you for purposes of research, surveys and other such
matters. To provide you with better service we may share
your information with our sister companies and also outside,
selected third parties who perform work for us as suppliers,
agents, service providers and information gatherers.
NEWSPIPELINE
Mission Statement:Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people.
EDITORIAL
On Aug. 17, Western Canada newspaper baron
David Black threw the entire Northern Gateway
Pipeline debate and the associated oilsands produc-
tion on its ear when he proposed a massive refi nery be
built at the Kitimat terminus of the pipeline.
It’s a bold suggestion, the very defi nition of vi-
sionary, and it deserves serious consideration.
First off , Black heads up the privately held Black
Press, which owns and operates 150 newspapers in
Canada and the United States. Pipeline News, how-
ever, is not one of them. It is owned by Glacier Media,
Black Press’ main competitor.
Secondly, when most people hear the name
“Black” and word “newspaper in the same sentence,
the usually think of Conrad Black, the recently re-
turned former Canadian who had a substantial stay at
Club Fed in Florida. Th is is not the same man.
David Black’s proposal is this: process every barrel
of bitumen that comes through the Northern Gate-
way Pipeline on Canadian soil. Th e primary resulting
products – gasoline, diesel and kerosene, are light in
comparison to heavy crude. Th ey fl oat, and evaporate,
which is key should the unthinkable happen and a
tanker have a spill in pristine B.C. waters.
Along the way, you would be building one of the
top 10 refi neries in the world, capable of processing
550,000 barrels a day, easily the largest in Canada. It
would be state of the art, employing 6,000 people in
its construction, and 3,000 in its operation.
Black would like construction to start in two
years.
To say it’s an ambitious plan is an understate-
ment. No one has built new, greenfi eld refi nery in
Canada since the 1980s, and you have to go back
another decade to fi nd the newest one south of the
border. As the press has noted, refi neries are a low-
margin business.
However, they are absolutely key economic in-
frastructure. We have seen ample evidence of that in
Saskatchewan.
In the 1980s, the Grant Devine Conservative
government invested heavily in both what were once
known as the NewGrade Upgrader (Regina) and Bi-
Provincial Upgrader (Lloydminster). For many years,
Betting on upgraders in the ’80s paid off. Will B.C. make the same move?
they were slogged as being uneconomic at best and
boondoggles at worst. Th e 2005 Encyclopedia of Saskatch-ewan stated, “Th e NewGrade refi nery received substan-
tial fi nancial investment from both the federal and the
Saskatchewan governments, which has not been recov-
ered as of 2004 because of initial operational diffi culties
and because the price diff erential between heavy oil and
light synthetic oil was often too small during the 1990s
to cover the cost of the upgrading process.”
Yet now, with several decades of experience behind
us, we realize they were some of the smartest moves
Saskatchewan made.
Th e ability to process heavy oil here in Saskatch-
ewan strongly supported the growth of the heavy oil
industry. Th is September the industry will gather in
Lloydminster for that city’s biennial heavy oil show. Ask
those attending if they would have a job today if Husky
didn’t have an upgrader on the east side of town. Most
likely wouldn’t. Lloydminster, itself, would be a shadow
of what it is today.
Th at upgrader was a result of a provincial govern-
ment taking a bold strategic bet on its energy future, and
it has paid off in spades, long after the province divested
itself.
As for Regina, we see a similar story at what the
public refers to as the “upgrader,” but Co-op offi cials re-
fer to as an integral part of the “refi nery.” Long after the
province divested itself of its investments in the refi nery,
Co-op is now putting the fi nishing touches on a $2 bil-
lion expansion and revamp.
So it is in this context, not only industry players, but
perhaps the province of British Columbia itself, should
seriously consider Black’s proposal. Th ey may fi nd that in
order to make the pipeline palatable on the environmen-
tal side by reducing risk, and to the B.C. government by
creating jobs and indeed a whole new industry in the
region, they may have to take a bet on it.
And while we are loath to encourage governments
getting into business, the Conservative megaprojects
of the 1980s were, in the end, good for the province of
Saskatchewan. British Columbia Premier Christy Clark
said she wants to see more benefi ts from the pipeline
fl ow to her province. Maybe she will need to put her
money where her mouth is.
PIPELINE NEWS September 2012 A7
PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR ARE WELCOME.Email to: [email protected]
OPINION
Lee Side of LloydBy Geoff Lee
From the Top of The PileBy Brian Zinchuk
In 2008, the Bakken play put a lot of money
in the pocket of the Saskatchewan government via
Crown land sales. Th e big question now is, will that
happen again in 2014?
Last month, I wrote:
“In 2008, Saskatchewan blew all previous land
sales records out of the water with $1.12 billion in
Crown land sales. Th e vast majority of that, $915.7
million, was in southeast Saskatchewan, driven by
the push to explore and develop the Bakken play.
During the 2011 Saskatchewan Oil and Gas Show,
Oilman of the Year Scott Saxberg, CEO of Crescent
Point Energy Corp., revealed that Crescent Point
was behind $700 million of that year’s land acquisi-
tion, buying both Crown and freehold permits and
leases.
“In August 2011, Saskatchewan hit an active
drilling rig record on 122 rigs. In the meantime,
North Dakota’s Bakken play has seen its oil produc-
tion shoot past all other states except Texas.
“Now, four years after those phenomenal land
sales, the 2008 leases are nearing their expiries. In
June, Pipeline News asked the Ministry of Economy
what the results have been, and what to expect. Ed
Dancsok, assistant deputy minister of petroleum and
natural gas for the Saskatchewan Ministry of the
Economy, spoke on behalf the ministry.”
Th e long and short of it is this:
•As of late June, 85 per cent of the land leased
in the 2008 rush does not have a well on it, meaning
only 15 per cent has been developed.
•Oil companies have until March 31, 2014 to
prove it up.
•Th e historical trend is for 20 per cent to be de-
veloped and 80 per cent to revert to the province.
To reach that 20 per cent level, we are going to need
record drilling over the next 19 months
Th ere is going to be a LOT of land left over
come April 2014.
My interpretation of this is that we could pos-
sibly see another big land sale year in 2014. Not as
big as the 2008 perhaps, as the premium land has
already been developed. Th is is the leftovers. Th ere
will be a lot of land to develop, but there are a lot of
factors to consider fi rst.
In a follow-up e-mail, Dancsok told me, “We
have monitored the reposting of lands after they re-
vert back to the Crown and found that statistically
it took two to three years for industry to request the
reverted lands to be posted in a land sale. Th is range
varies greatly on a case by case basis and in the case
of hot plays like the Bakken reposting may not fol-
low that statistical average.”
He added, “Certainly it does take some time to
work up a play concept and convince upper man-
agement within a company to pursue your explora-
tion model by posting land. Also within companies
there certainly is competition for exploration budget
dollars amongst the diff erent regions that any one
company may have interests in, not to mention com-
petition for budget dollars for drilling, production
facilities, secondary and enhanced recovery projects
and any other costs that companies need to priori-
tize.
“Also, I would suspect that any rights that revert
back to the Crown in the southeast Bakken play will
likely or naturally be the less prospective areas so
that future interest in acquiring these rights may be
more tempered. All we need is another big discovery
or another sweet spot or technology breakthrough
to turn that around in
a hurry.”
Th e big players
that have emerged from the Saskatchewan Bakken
play have focused on the best prospects fi rst. Based
on the number of wells you see along the highway,
the Stoughton/Forget/Kisbey areas have proven
there was a reason these parcels went for premium
dollars.
Th e other thing to remember here is all the play-
ers have referred to the Bakken as a “resource play.”
As opposed to small pools that might be a couple sec-
tions here and there, this is a widespread play. Th at
probably means a lot of the undeveloped land still has
a lot of oil.
Th e big question revolves around Crescent Point.
In speaking with Ryan Gritzfeldt, their vice-president
of engineering for their eastern area, i.e. southeast Sas-
katchewan, I asked if expiries were a pressure for them.
He said, “No. We’re not feeling pressure. A lot of those
leases had a fi ve-year term.
“When you look at the detail, we know what we
have to drill two to three years out. We know what our
expiry situations are. We build all that into our current
drilling program. Th ere’s always a small portion of our
corporate drilling program that handles that.”
With whatever land is left over, will this turn into
an opportunity for juniors to scoop up parcels and de-
velop it? Or will a large player, such as one of the
existing Bakken producers, make a big grab?
One way or another, 2014 will be an interesting
year when it comes to Crown land sales.
Brian Zinchuk is editor of Pipeline News. He can be reached at [email protected].
Will there be big land sales numbers in 2014?
Excitement is
building on a num-
ber of fronts for the
2012 Lloydminster
Heavy Oil Show
that will be held Sept. 12-13.
Th e show is billed as the world’s premier show-
case for heavy oil knowledge and technology that
benefi ts a number of stakeholders from organizers
and exhibitors to the local hospitality industry and
the reputation of Lloydminster as a heavy oil centre.
More than 6,000 people are expected to attend
the two day show at the completely renovated Lloyd-
minster Exhibition Grounds.
For exhibitors, the show is a fantastic opportunity
to network with new and existing customers face-to-
face in a highly competitive fi eld.
It is also an opportunity for the general public to
learn more about the industry that is driving the rapid
economic growth and prosperity of Lloydminster and
other heavy oil communities in the area.
While some people may not think of the public as
a customer, it is important for the industry to gain the
public’s confi dence and to demonstrate how heavy oil
can be produced in an environmentally sensitive and
profi table manner.
Some of the visitors will be new and returning
oil and gas students from Lakeland College who are
scouting the show for potential job leads as power en-
gineers in the industry.
Show organizers from the Lloydminster Oilfi eld
Technical Society have teamed up with the Society of
Petroleum Engineers to host the Heavy Oil Technical
Symposium in conjunction with the heavy oil show
for the time.
Th e new dual purpose show is in keeping with
the trend to keep the show as innovative and relevant
to many heavy oil audiences.
A couple of the technical presentation topics
that should draw a crowd are Rodless Lift Solution for
CHOPS and An Introduction to Powerwave for Im-proved Flooding and Stimulation Approaches.
Organizers have added a couple of luncheon
speakers as well this year that will give the show more
of a conference look and feel modelled after other
successful shows such as the Williston Basin Confer-
ence that alternates annually between North Dakota
and Regina.
Th is year’s 20th annual show in Bismarck, North
Dakota attracted a record 4,033 registered attend-
ees, representing 46 states, seven provinces and nine
countries.
Oil and gas shows have never been so popular,
with 63,000 attendees at the 2012 Global Petroleum
Show held in Calgary June 12-14.
Th e 2012 Oil Sands Trade Show & Conference
in Fort McMurray will be held Sept. 10 which should
free up visitors from that show to take a look at the
368 inside and outside booths in Lloydminster.
Th e direct economic impact of the Lloydminster
Heavy Oil Show is unknown, but organizers report
all available motel and hotel rooms were booked
months ago.
Restaurants and retailers will also reap the eco-
nomic spinoff s of the oil show held during the tradi-
tional shoulder season for the hospitality industry.
Th e show will serve to strengthen Lloydminster’s
reputation as the heavy oil capital of the world and for
staging large scale events with long lasting economic
benefi ts.
It helps that this year’s show is being held in a
period of relative strength for the oil and gas industry
compared to 2010, the fi rst year of economic recovery
from the downturn in 2008-09.
Two years can be a lifetime when it comes to the
development of new technology and products that can
keep companies ahead of the game and determined to
meet the key players once again at this show.
Pent up interest in Lloyd oil show
A8 PIPELINE NEWS September 2012
Troy Illingworthcell: 780-205-1858
Tim Sharpcell : 780-871-1276
Offi ce: 780-847-4666Fax: 780-847-4661
Box 82 Marwayne, ABWelders, Service Crews, Lease Mowing
& Bobcat Service
Page A5
In addition, the following specifi c
actions, beyond normal programs,
have been completed at Co-op Refi n-
ery Complex since the incident:
1. An integrity assessment has
been completed for all hydroprocessor
reactor effl uent lines (the type of pro-
cess line that failed on Oct. 6) within
the Complex. Additional inspection
on these circuits was completed in
May 2012. All reactor effl uent lines
were found to be in good condition
with the exception of one line. Th at
portion of line was replaced and full
due diligence was completed on the
balance of the line.
2. An audit of the entire corrosion
monitoring program has been under-
taken.
3. A written procedure has been
developed that outlines how pipe
wall thickness monitoring locations
are determined. Th is procedure is in
alignment with the principles out-
lined in American Petroleum Insti-
tute’s 570 – Piping Inspection Code.
4. A written procedure has been
developed and implemented that
outlines the actions, and additional
inspection, that must be completed if
the Corrosion Monitoring Program
detects high corrosion rates.
5. Communications have been
signifi cantly enhanced between the
process and inspection departments.
In addition to a weekly meeting that
had been occurring since 2010, a
regularly schedule monthly meeting
is now being held amongst process,
inspection, maintenance and engi-
neering, the groups that form the
cornerstones of CCRL’s Equipment
Integrity Program.
6. Th e equipment inspectors
have attended a three-day risk-based
inspection training course.
7. Th e initial risk-based inspec-
tion assessment has been completed
for three process units. Th e inspec-
tion plans on certain equipment was
modifi ed based on the results of these
assessments.
8. Integrity operating windows
have been developed for three process
units.
9. An inspection of piping circuits
within the heavy naphtha unifi ner
(HNU) and the platformer unit have
been completed to verify that correct
materials have been installed in cir-
cuits at high risk for high temperature
hydrogen attack.
A further 10 additional activi-
ties have been undertaken to further
strengthen the CRC equipment
integrity program, including:
1. Continue with the further de-
velopment and evolution of the CRC
risk-based inspection program.
2. Continue with development
of integrity operating windows being
completed in conjunction with the
RBI assessment.
3. Complete the audit of the cor-
rosion monitoring program.
4. Form a reliability engineering
group that will be focused on identi-
fi cation and resolution of equipment
reliability issues. In the past this
function has been divided between
the maintenance engineering group
and the plant engineering group.
5. Reinforcement of existing
quality control system for fabrication
and installation of piping systems to
include additional fi eld verifi cation
steps.
6. Continue with development
of the process safety management
system that addresses equipment
integrity, documentation, training,
management of change, procedures,
incident investigation, emergency
response, contractor safety, process
hazard analysis, pre-start up safety
review, and audit.
7. Continue with the develop-
ment of written procedures and
documentation to formalize and
reinforce equipment integrity pro-
grams.
8. Additional management staff
will be added to the equipment in-
tegrity group.
9. Plans are currently being de-
veloped to restructure the equipment
integrity group that will include
additional staff dedicated to rotating
equipment condition monitoring.
10. Continue to complete a pro-
cess hazard analysis on all existing
process units.
In addition, the refi nery is work-
ing with a number of third party
companies such as American Petro-
leum Institute, National Petroleum
Refi ners Association, various risk
consultants and inspection contractors
related to process improvements. It
also has been working with DuPont
Sustainable Solutions since 2008 that
is providing full-scale process safety
management program support to the
refi nery.
Speci c actions taken by Co-op Re nery Complex
PIPELINE NEWS September 2012 A9
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PICKER & OILFIELD HAULING SERVICEProudly serving Lloydminster Area for over 20 Years
By Geoff Lee
Calgary – Imperial Oil Limited expects to start
producing bitumen by the end of 2012 from its
$10.9 billion Kearl oilsands open pit mining project
northeast of Fort McMurray.
Th e company is also on schedule to complete
the construction of its $2 billion Cold Lake thermal
expansion, called the Nayibe project, that will use
cyclic steam stimulation (CSS) to produce bitumen.
Imperial allocated more the $2.4 billion of its
2012 capital expenditure budget to its growth proj-
ects at Kearl and Cold Lake in the fi rst six months
of the year according to its second quarter report on
July 26.
Th e Kearl project, jointly owned by Imperial
Oil (operator) and ExxonMobil Canada will be one
of Canada’s largest open-pit mining operations with
regulatory approval for up to 345,000 barrels a day
of production.
Th e Kearl project will recover a total of 4.6
billion barrels of bitumen over its estimated 40-year
lifespan.
Th e project is the largest in Imperial’s history.
Ongoing construction of the initial 110,000 barrels
a day phase project was 94 per cent complete at the
end of the second quarter.
“Th at’s on an overall project basis. Actual site
construction is about 90 per cent complete,” said
Imperial spokesperson Pius Rolheiser during a
follow-up interview on Aug. 20.
“We expect to start up as planned by the end
of 2012. Th at will be the initial development of
110,000 barrels per day,” he said.
“Th at will increase to about 145,000 barrels in
the fi rst several years with increased mining capac-
ity.”
Th e Kearl project was sanctioned in 2009 as a
three-phase development.
Th e execution plan was reconfi gured in mid-
2010 to include an initial development, followed by
an expansion phase and then by a debottlenecking
of both phases.
Th e $8.9 million Kearl expansion project,
scheduled for start-up in late 2015, will have a
similar production profi le – initial production of
110,000 barrels per day, increasing to 145,000 bar-
rels per day over the fi rst several years.
Th e debottlenecking of both phases will in-
crease total production from Kearl to its licensed
capacity of 345,000 barrels per day by about 2020.
It is the largest ongoing project in the oilsands
with a camp-based workforce of 4,000 to 5,000
workers in August, just off the peak construction
force of more than 5,000 workers in 2011.
Page A10
Imperial’s Kearl, Nabiye on schedule
Site construc on at Imperial Oil’s Kearl oilsands project ( rst phase) northeast of Fort McMurray is 90 per cent complete. The company expects to produce bitumen from open pit mining by the end of 2012. The rst phase is designed to produce 110,000 barrels per day, rising to 145,000 a day. A second phase expansion will also produce 110,000 bpd by the end of 2015, eventually rising to 145,000 bpd. The design capacity of 345,000 bpd could be reached by 2020. Photo submi ed
A10 PIPELINE NEWS September 2012
Kenilworth Combustion Main Offi ceContact Heine Westergaard 1-780-744-3974
Nomad Electric in Northern AlbertaContact Clint Ferriss 1-780-624-2447
Pronghorn Controls in Southern and Central AlbertaContact Stan Neu 1-403-501-4895
CCR Combustion in East Central AlbertaContact Kevin Moan 1-780-872-0706
MAIN OFFICE 1-780-744-3974 FAX 1-780-744-2242
www.kenilworth.ca
Between 4,000 and 5,000 construc on workers camped at Imperial’s Kearl oilsands project have an opportunity see the sunrise over the froth treatment plant at the open pit mining site northeast of Fort McMurray. The company is also on schedule with the expansion of its Cold Lake thermal opera ons at its Nabiye project that will use cyclic steam s mula on to produce bitumen. Photo submi ed
Page A9“Our long-time operational workforce – the
guys who will actually work at Kearl once it’s up
and running, will live in camp as well. Our plan was
always to have it as a fl y-in, fl y-out operation,” said
Rolheiser.
Crews are continuing to reassemble giant size
modules on site that were constructed in South
Korea and transported to Edmonton through the
United States.
Construction at Imperial’s Nayibe project
located at the northeast section of Imperial’s leases
at Cold Lake stood at 22 per cent complete by the
end of the second quarter.
Th e project, sanctioned by Imperial in Febru-
ary 2012, is on target to produce more the 40,000
barrels of day of bitumen with a start-up by the end
of 2014.
“We actually started the preliminary site work
even before we formally sanctioned the project,”
said Rolheiser.
“In the summer of 2011, we did some prelimi-
nary site clearing and some excavation.”
Th e company also built the access road to the
site that is a new development area for Imperial.
Th e Nabiye expansion will access 280 million
barrels of recoverable reserves of bitumen.
Nayibe will include a central steam generation
and a bitumen processing plant which will also
have a 170 megawatt electrical co-generation plant
incorporated in it.
Imperial operates the largest and longest run-
ning in situ oilsands operations in Canada at Cold
Lake. Th at includes four steam generation and bitu-
men production plants.
Gross production of Cold Lake bitumen aver-
aged 152 thousand barrels a day during the second
quarter, versus 158 thousand barrels in the same
period last year.
Th e lower volumes were primarily due to
planned maintenance activities at the Mahkeses
plant as well as the cyclic nature of production at
Cold Lake.
Rolheiser says the decision to produce bitumen
with open pit mining at Kearl or to use CSS or
SAGD (steam assisted gravity drainage) at Nabiye
is primarily due to reservoir characteristics.
“Th e open pit mines are all north of Fort Mac
because the bitumen zone is close enough to the
surface,” he said.
“At Cold Lake and even further south of Fort
Mac, and even further northeast of Fort Mac, the
bitumen oilsands ore is buried so deep it’s just not
practical to surface mine it, so you employ thermal
technology.
“Th e reason we use CSS at Cold Lake is
because in that particular reservoir SAGD simply
wouldn’t be as eff ective as CSS because of reservoir
conditions.
“SAGD requires uniform reservoirs with higher
bitumen saturation to be eff ective.”
Fly-in, y-out operation
PIPELINE NEWS September 2012 A11
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By Geoff Lee
Minister of the Economy, Bill Boyd was on hand for the offi cial opening of
Kerrobert’s upgraded water treatment plant in his provincial riding of Kinders-
ley on Aug. 3.
Boyd spoke to Pipeline News about a number of oil and gas topics fol-
lowing the ribbon cutting, including the roles of his new umbrella Economy
Ministry including the Ministry of Energy and Resources now headed by Tim
McMillan.
Th e Ministry of the Economy, created during a cabinet shuffl e on May 25,
brings together a number of economic functions of the government, including
Enterprise Saskatchewan, Innovation Saskatchewan,Tourism Saskatchewan,
employment, immigration, trade, energy and resources.
Bill Boyd is also the minister responsible for SaskPower and minister
responsible for the Global Transportation Hub in Regina
New Energy and Resources Minister Tim McMillan is also minister of
Tourism Saskatchewan and Trade within the Economy ministry and minister
responsible for SaskEnergy. Depending on their schedules, Boyd and Mc-
Millan could both be at the Lloydminster Heavy Oil Show in Lloydminster
Sept. 12-13.
PN: How is the oil and gas economy of Saskatchewan right now?Boyd: Th e oil economy is pretty good. We’ve seen a bit of a pullback in
oil prices in the last 50 or 60 days which is a bit concerning. Th e oil economy
though, still remains strong. We’ve got some strong drilling activity in Sas-
katchewan.
Gas, on the other hand – there are very low prices, and as a result of that,
there is not much activity there. Fortunately, gas isn’t a big component of our
provincial revenue base – oil certainly is. We still are on track, but obviously, a
little bit concerned about the prices right at the moment.
Page A12
Minister of the Economy Bill Boyd helped to o cially open Kerrobert’s newly upgraded water treatment plant in his Kindersley cons tuency on Aug. 3. The province contrib-uted $1.32 million in provincial infrastructure s mulus funds plus $250,000 under the Municipal Rural Infrastructure Fund.
Boyd tackles A-Z media questions
A12 PIPELINE NEWS September 2012
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Economy Minister Bill Boyd, le , chats with Kerrobert Mayor Erhard Poggemiller during a tour of the upgrades to the town’s water supply and water treatment plant. Boyd was on hand for the o cial opening on Aug. 3.
Page A11PN: How important is heavy oil thermal recovery becoming to the prov-
ince?Boyd: Any of these enhanced oil recovery projects are very important.
Th e enhanced benefi ts are very real – much higher recovery rates than normal
production so they are a very positive generator of additional oil and revenue
for the province.
PN: Is this why the Saskatchewan Research Council is focusing more research on heavy oil recovery?
Boyd: Ongoing work at the SRC as well as the Petroleum Technology Re-
search Centre – always with respect to enhanced oil recovery methods or other
technology – that’s being looked at – these are very good projects that create
signifi cant wealth for our province.
PN: Is there a specifi c heavy oil strategy in the works?Boyd: I don’t know if there’s a strategy necessarily coming up. Th ere is
ongoing work all of the time with respect to enhanced oil recovery types of
opportunities here in Saskatchewan. Th ey are important for the province and
there will be ongoing work.
PN: What impact does the lower rig count in July and early August this year compared to the summer of 2011 have on the province?
Boyd: Th e drilling numbers are still pretty good here in Saskatchewan
right now. Th e weather has been much more co-operative this year than last
year, particularly down in the southeast part of the province where they were
fl ooded last year. Drilling activity is pretty strong though, across the province.
PN: Th e March budget was based on a barrel of oil at $100. Is the lower oil price aff ecting programs?
Boyd: Revenues are off a little bit recognizing we are only four months
into the fi scal year of the province starting April 1. We are a few months into
it – we don’t see our projections are off that much. Most analysts would agree
that they are expecting prices to strengthen in the fall and the winter months.
PN: Will you or Energy Minister Tim McMillan be attending the Lloy-dminster Heavy Oil Show Sept. 12-13?
Boyd: Tim is the actual minister, so I am sure he will there. I am not sure
about my schedule at the moment, but I am looking forward to it if I get the
opportunity.
Page A13
Questions answered
PIPELINE NEWS September 2012 A13
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Page A12
PN: How important is this heavy oil show to the oil and gas industry?Boyd: I think these shows are very important to the industry. It showcases
the latest technology. It certainly is a good opportunity for interaction between
the companies and the consumers of their products.
It’s a wonderful opportunity for the industry to get together and talk and
showcase the new technologies.
Husky Energy is a great example (more than 24,000 barrels of oil from
thermal in Q2).
A number of other companies across the province as well have enhanced
oil recovery projects and many of them working out very well.
Any time we can increase the recovery rates it dramatically aff ects the
amount of production as well as the royalties that are ‘thrown’ from that.
PN: How would describe your new Ministry of the Economy?Boyd: Th e Ministry of the Economy has the economic functions of gov-
ernment all involved in it now. I think that sort of makes sense. We had them
before in about four or fi ve ministries.
Th is change is a good change. It provides companies that are looking to
do business with more of a one-stop opportunity to address any problems or
concerns about setting up a business in our province.
PN: Most of the issues pertaining to energy and resources fall on Tim McMillan’s plate?
Boyd: I am still obviously involved in it as the minister of the Economy.
We have a joint role in some respects with energy.
PN: How important is the upgraded treatment plant for Kerrobert to attract new oil and gas companies or workers?
Boyd: I think it’s very important. One of the things we all take for granted
is good quality water and sewer infrastructure. You never really think about
until you turn the tap on and nothing comes out. Th is is important for the
ongoing operations of Kerrobert and the growth of Kerrobert and the area in
the future.
We are very pleased as a province to be involved in this. It provides stable
funding for the community here and a good water source going forward.
PN: What is your take on the amount of oil and gas activity in your Kindersley riding?
Boyd: Th ere is very strong activity in this area. We are seeing new technol-
ogy – the horizontal wells of course, taking over more and more – production
increasing – a lot of very good jobs and a lot of investment is taking place in
Kerrobert and area.
Th e oil activity in this constituency represents a big part of our economy,
and as a result of that, a lot of people in Kerrobert and Kindersley and other
places in the constituency have very good jobs from it.
PN: Have you visited Petrobank’s THAI thermal oil project near Ker-robert?
Boyd: I have about 18 months ago or so near Kerrobert. It’s a very leading
edge project that is showing very strong results. Th at project is involving a lot
of very good people – a lot of investment – clearly communities like Kerrobert
are benefi ting from it.
PN: Do you see any new companies getting involved in the Saskatch-ewan oilsands?
Boyd: Th ere are a couple of companies involved
in it. Unfortunately it’s slow progress. One of the
companies (Oilsands Quest) had some fi nan-
cial diffi culty. I hope they are working their way
through the process with respect to that.
Th ere certainly is a very large deposit there, and
there are some engineering and technical challeng-
es that have to be met and can be met in the future.
I suspect we will see production there sometime in
the future.
PN: Is heavy oil in this area going to play a bigger role in the province?
Boyd: I wouldn’t say more. I would say it’s a
consistent signifi cant player in the oil here in west
central Saskatchewan with more sweet or lighter
crudes in some other places. Th is has been a stable
area for production for a long time. Production is
actually increasing in this area which is good to see.
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A14 PIPELINE NEWS September 2012
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By Geoff LeeRegina – Th e Saskatchewan government should
undergo its own review of the proposed U.S. $15.1
billion takeover of Nexen Inc. by the China Na-
tional Off shore Oil Corporation announced July 23.
Th at’s the belief of potential provincial New
Democratic Party leadership candidate and econo-
mist Erin Weir, who is currently a Regina-based
economist for the Canadian Centre for Policy
Alternatives.
Weir fears CNOOC could drive down oil and
gas prices to supply Chinese consumers with cheap
Canadian energy at the expense of Saskatchewan
where he says Nexen operates more than 1,300
producing gas wells.
“I think a company like Nexen tries to sell oil
and gas at the highest possible price,” he said.
“I think the risk for Saskatchewan is that the
Chinese National Off shore Oil Corporation may
have an interest in supplying Saskatchewan re-
sources to the Chinese economy at lower prices
which would reduce Saskatchewan’s royalty and tax
revenue.”
Nexen began in Saskatchewan following the
1986 privatization of SaskOil, a Crown corporation,
and has gone on to become an international energy
giant.
Th e Nexen deal would extend CNOOC’s
global presence in Western Canada, the U.K. North
Sea, the Gulf of Mexico and off shore Nigeria –
focused on conventional oil and gas, oilsands and
shale gas.
Nexen posted an average production of 207
million barrels of oil equivalent per day (after royal-
ties) in the second quarter 2012 including produc-
tion from its Saskatchewan operations.
Weir said the main diff erence between China-
owned CNOOC and SaskOil being a former
Crown corporation is that SaskOil’s interest was to
make money for the people of Saskatchewan.
“SaskOil tried to sell oil and gas at the highest
possible prices,” he said.
“CNOOC belongs to a government that is an
energy consumer, so it has the opposite interest. It
would want to lower those prices.”
Th e CNOOC bid for Nexen will require
federal government approval under the Investment
Canada Act, which requires some foreign takeovers
of Canadian companies to pass the “net benefi t
test” of being a positive contributor to Canada's
economy.
CNOOC’s last major deal in Canada was a
$2.1 billion acquisition of oilsands developer OPTI
Canada that received federal approval.
Weir thinks more is at stake with the Nexen
deal, and he favours an open debate similar to the
one over the hostile takeover bid for Saskatchewan-
based PotashCorp by Australia’s BHP Billiton Ltd.
in 2010.
Th e federal government eventually disallowed
the foreign ownerships of PotashCorp due to
strong pressure led by Saskatchewan Premier Brad
Wall.
“It is quite striking that the government of
Saskatchewan has said nothing at all about the
proposed Nexen takeover given Nexen’s signifi cance
in the provincial economy, and given how vocal it
was about the proposed PotashCorp takeover,” said
Weir.
Page A16
Economist Erin Weir wants the Saskatchewan govern-ment to launch its own review of the proposed U.S. $15.1 billion takeover bid of Nexen Inc. by the China Na onal O shore Oil Corpora on. Photo submi ed
Economist seeks review on Nexen takeover
PIPELINE NEWS September 2012 A15
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A16 PIPELINE NEWS September 2012
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Page A14 “I think there’s a need
for a much more open and thorough review of the
proposed Nexen takeover through the Investment
Canada Act.
“In the past, these reviews have taken place
behind closed doors and usually resulted in foreign
takeovers being rubber stamped.
“PotashCorp. was only one of two exceptions to
that since the Investment Canada Act was passed in
1985.
“Th e process changed precisely because there was
so much public debate and political pressure on the
federal government to reject that proposal.”
Weir will continue to urge the government to be
more transparent about the proposed Nexen sale to
CNOOC as he ponders his next career move.
He said he will announce whether he plans to run
for the NDP leadership in September in advance of
the leadership vote next March at the NDP conven-
tion.
He has also taken a leave from his job as an
economist for the United Steelworkers Union’s na-
tional offi ce.
“I did a lot of my commentary with the United
Steelworkers, but since I am on leave, I am not offi -
cially speaking for the United Steelworkers right now,”
he said.
In a comment posted on rabble.ca on July 25,
Weir said CNOOC’s promise to establish its North
American headquarters in Calgary wouldn’t be good
for British Columbia where Nexen is expanding shale
gas extractions, nor would it be good for Saskatch-
ewan.
He said that’s due to a real risk of CNOOC
under pricing their provincial resources.
Burnaby NDP MP Peter Julian, the offi cial B.C.
opposition critic for Energy and Natural Resources,
said last month he is seeking a “transparent” review
of the transaction by a parliamentary committee on
natural resources.
He wants to examine whether the deal would cost
Canadian jobs by driving raw bitumen from Nexen’s
oilsands projects to China that could otherwise be
refi ned domestically.
Alberta’s Minister of Energy Ken Hughes said his
province welcomes investment with required compli-
ance from all oil and gas companies.
“Today’s potential transaction is further evidence
of the vital importance of Alberta’s oilsands to meet
global energy demand,” said Hughes in a new release.
“Foreign investment benefi ts Albertans, and Ca-
nadians, putting Canadian fi rms in a better position to
compete globally.
“Nexen itself is a Canadian company that main-
tains operations around the world including in the
Gulf of Mexico, Africa and the North Sea.
“Th e investment required to develop oilsands
resources is signifi cant.
“Th e oilsands have already drawn investment
from China, the United States, Norway, Japan, South
Korea, France, Th ailand and the United Kingdom.
Th e result is jobs for Canadians here and abroad, and
competitive products on an international market.”
Weir is miff ed that the Saskatchewan’s Brad Wall
government has been conspicuously silent on the pro-
posed takeover and its potential economic impact.
“I hope there is a rigorous review of the proposed
Nexen takeover, and I would like to see the govern-
ment of Saskatchewan speaking out in favour of such
a review and play an active role in that process,” said
Weir.
Weir is also critical of the fact there is no time-
frame on when a decision will be made by the federal
government.
“Th at’s the whole problem that there are really not
public hearings,” he said.
“Th ere is really no public process or timeline.
Th e process just occurs behind closed doors and we
won’t know until Industry Canada comes forward
and announces it has either approved or rejected the
proposal.
“Th at’s the problem with the process being so
secretive.”
Th e U.S. review is being conducted by the Com-
mittee on Foreign Investment, an interagency panel
chaired by Treasury Secretary Timothy Geithner that
examines deals for national security risks.
Th e U.K. government is also conducting a review
with Nexen’s extensive assets in the North Sea at stake.
2005 KENWORTH T800BStk # 980062 c/w new non grease fifth wheel, dual ex-haust, dual s.s. breathers, wet kit, webasto heater, beacon lights, alum roo bumper, 17,153 hours.
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Economist Erin Weir, le , has become on of the leading spokespeople for the NDP on economic policy. Photo submi ed.
No public process
PIPELINE NEWS September 2012 A17
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Racken Enterprises.indd 1 8/21/08 1:00:06 PM
By Geoff LeeCalgary – Husky Energy Inc. continues to tran-
sition its heavy oil operations in Western Canada
to thermal production and horizontal wells while
reducing the number of cold heavy oil production
(CHOPS) wells in the Lloydminster area.
Only three CHOPS wells were drilled in the
second quarter of 2012 compared to 60 such wells
in the second quarter of 2011, as thermal proves to
be a cost-effi cient alternative.
“We’ve been making good progress in transi-
tioning our heavy oil portfolio towards more ther-
mal production and horizontal drilling.” said CEO
Asim Ghosh during a second quarter conference
call on July 25.
“We achieved fi rst oil in the second quarter at
both the Pikes Peak South and the Paradise Hill
thermal projects ahead of schedule, and product is
now shipping from both sides.
“To accelerate this program, we have now sanc-
tioned the Sandall thermal project, and are looking
at the early stages of examination of four additional
thermal projects.
“We'll be developing these projects with a
proven modular approach, which should give us
cost and operational effi ciencies,” Ghosh said.
Production from all of Husky’s thermal projects
averaged 24,000 barrels a day including 4,500 bar-
rels a day from new Pikes Peak South and Paradise
Hill thermal projects near Lloydminster in the
second quarter of 2012.
Production from the, 8,000 bpd capacity Pikes
Peak South and 3,000 bpd capacity Paradise Hill
thermal projects will continue to ramp up by the
end of the year.
“Th ese projects, the two of them, were delivered
in aggregate slightly under budget and in about 13
months and 15 months respectively, so a very good
performance by the business unit there,” said chief
operating offi cer Rob Peabody.
Th e 3,500 bpd Sandall thermal project near
Paradise Hill was sanctioned during the quarter
with commissioning expected in 2014.
Design work continued in the quarter on an
8,000 bpd commercial project at the Rush Lake
thermal development, which is expected to begin
production in 2015.
Fifty horizontal wells were drilled during the
fi rst half of 2012, out of a planned 140 to 150 well
program this year, as heavy oil production continues
to favour thermal over CHOPS.
Only 72 CHOPS wells were drilled in the fi rst
six months of 2012 compared to 121 in the same
period of 2011.
“It’s quite simple really,” said Peabody, in re-
sponse to an investor question about the economic
and strategic rationale of thermal projects such as
Pikes Peak.
Page A18
Ed Connolly, senior vice-president of heavy oil, o ciated at the grand opening of Husky’s new CO2 Capture and Liq-uefac on Project that was held in the second quarter. Four solvent enhanced oil recovery pilots were opera onal in the second quarter, using CO2
recovered from the Lloydminster ethanol plant.
Produc on began in the second quarter of 2012 at Husky’s 8,000 barrel a day Pikes Peak South thermal project lo-cated 40 kilometres east of Lloydminster. Thermal produc on also began at the 3,000 bpd Paradise Hill project on June 16 with produc on levels at both sites con nuing to ramp up. Pictured are thermal pumpjacks at the Pikes Peak site. File photo
Husky increases thermal output, focus
A18 PIPELINE NEWS September 2012
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Page A17 “First, CHOPS has been
a great driver of our production heavy oil over the
years, but the quality at the margin of those wells
is declining, and meanwhile, with the effi ciencies
we’re seeing in executing the thermal projects, we’re
able to replicate the economics of the really good
CHOPS wells now through thermal projects,”
explained Peabody.
“And, in essence, what we see there is we’re able
to achieve the same operating costs with similar
F&D (fi nd and development costs).”
Peabody said that based on just the capital
effi ciency of Pikes Peak South and Paradise Hill,
the projects “were delivered between, on average, at
about $33,000 - $35,000 a fl owing barrel, so very
competitive overall in the portfolio.”
During the fi rst six months of 2012, Husky
spent $245 million on capital expenditures for
heavy oil projects related to thermal projects com-
pared to $232 million in the same period of 2011.
Th e fi rst phase of the Sunrise Energy Project
in the Athabasca Oil Sands using steam assisted
gravity drainage (SAGD) advanced on schedule in
the second quarter with fi rst production planned in
2014.
“Looking at the subsurface side, all 49 SAGD
well pairs are fi nished, and most importantly, we’ve
confi rmed the quality of the reservoir,” said Ghosh.
“On the surface side, the biggest component
is the central processing facility, which is about 30
per cent complete. And construction of the other
feed facilities, including the pipelines, is about half
complete.
“So to summarize, it’s been a steady quarter,
with progress against each of the elements of our
business.”
Husky achieved signifi cant milestones across
its other growth pillars with the completion of the
shallow water platform jacket at the Liwan Gas
Project in the Asia Pacifi c Region.
Th e company also awarded contracts in the
quarter to evaluate potential extension options at
the White Rose fi eld in the Atlantic Region.
Due to weaker commodity prices, Husky ended
the quarter with a profi t of $431 million compared
to $669 million in the second quarter of 2011.
Th e average realized price for the company’s
production as a whole was $51.98 per barrel of
oil equivalent in the quarter, compared to $66.33
per boe a year ago and $65.26 per boe in the fi rst
quarter.
Th e average realized crude oil pricing was
$71.61 per barrel, down from $87.87 per barrel a
year ago and $87.11 per barrel in the fi rst quarter.
On the production side, Husky averaged
282,000 boepd per day in the quarter compared to
325,000 boepd in the fi rst quarter and 311,600 a
year ago.
Th e lower number includes a 34,000 boepd
reduction due to maintenance of off -stations in the
Altantic region.
“We continue to benefi t from a strong down-
stream operational performance and reliability and
these have partially helped off set lower commod-
ity prices and refi ned product margins,” said chief
fi nancial offi cer Alister Cowan.
Th e Lloydminster upgrader contributed $42
million to quarterly profi ts, compared to $48 mil-
lion in the last quarter and $20 million a year ago.
A planned three week turnaround at the
upgrader in April was completed on time and on
budget and led to signifi cant milestones for record
monthly production and shipments.
Husky
PIPELINE NEWS September 2012 A19
Phone: (780) 875-0032Fax: (780) 808-2273Cam’s Cell: (780)205-8316Greg’s Cell: (780) 214-7808
Lloydminster – Back to school will have special
meaning for Lakeland College oil and gas students
with new power engineering programming, upgrad-
ed lab facilities and the construction start of a new
Lakeland College Petroleum Centre.
Orientation takes place Aug. 28 at the Lloyd-
minster campus for heavy oil and gas students who
may be in shock and awe over the changes.
Th e fall semester marks the start of another
one-year heavy oil operations technician or HOOT
certifi cate course for fourth class power engineer-
ing with 46 students enrolled and many more on a
waiting list.
Kara Johnston dances on the site of the rst phase of the new Lakeland College Petroleum Centre. The sod-turning ceremony will take place Sept. 11 – the opening day cer-emonies of the Lloydminster Heavy Oil Show.
Lakeland pumped for fall energy upgradesTh e new academic year also heralds the start of
the fi rst two-year heavy oil and power engineering
diploma course for third class power engineering
students.
“We are launching that program this fall, so we
will have students in the fi rst year of the diploma
program as well as students in the second year of
the diploma program,” said Kara Johnston direc-
tor of Energy, Entrepreneurship & Saskatchewan
Programming.
“We have 25 students from our current group
of HOOT students that just graduated that are
coming back to do their second year and complete
their diploma.
“Interest is picking up through the roof with
the two year diploma. Our waiting list – we have
never seen a waiting list like this. We easily have
over a 100 people who are awaiting entry.
“Our new facility can’t open fast enough so that
we can accommodate all these students,” Johnston
said.
Five of the new heavy oil power engineering
students are returning to class with $22,000 schol-
arships from Husky Energy. Husky off ers students
practicum work placements and full time employ-
ment off ers upon graduation.
Lakeland also wrapped its fi rst Introduction
to Heavy Oil and Gas program at the Onion Lake
First Nations Reserve in July with fi ve students
from that program entering the HOOT program
this fall.
Students in both one and two year program
streams will benefi t from the installation of a new
$700,000 teaching boiler in the existing lab and
new equipment upgrades for third class power engi-
neering studies.
Page A22
PIPELINE NEWS September 2012 A21A20 PIPELINE NEWS September 2012
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Full Tilt Dominator Mechanics body with sliding roof and barn doors, interior lights, front and rear work lights, back-up alarm, posi lock system, heavy duty tie down. 10,500 lb Max 6025 crane with lift to 26’ 7”, Hydraulic drive reciprocating air compressor 35 CFM @ 100 psi, Paccar PX8 300 HP Engine , Allison 3500 RDS 6 speed with PTO provision, Dana Spicer 14.6K Front axle, Dana Spicer 23K Rear axle with diff lock and Hendrickson HAS230L rear air suspension, Air brakes with ABS, 10 5/8” x 5/16 Frame rail with removable front tow hooks, 56 gallon fuel tank, Accuride painted white rims with Goodyear tires front and rear locations, Aerodynamic sloped front hood, Pinnacle cab interior equipped with Kenworth Driver Information Center, A/C, Tilt and telescopic steering wheel, air suspension gauge, am/fm/cd radio, daylight cab door design with peeper window, glove box, High back vinyl air suspension drivers seat and high back vinyl passenger battery box., Heated and polished stainless steel mirrors with convex mirrors, power LH and RH window lifts, Curved glass windshield with stainless steel exterior sun visor, Dual halogen head lamps, Full truck air kit for trailer, May not be exactly as shown.
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Page A19
“Our lab is currently a four class lab. We have a
new boiler coming to create a third class lab,” said
Johnston in early August.
“It’s currently being shipped from Oklahoma
along with a new deaerator (to remove oxygen in
boiler feedwater) and a new blow-down tank.”
Th e new boiler could be fully installed and
operational by Oct. 1.
“Th is fall, these students will get to see some-
thing really special because they will be there when
the boiler is started,” added Johnston.
“What that means for our diploma students
who are doing their third class, is they can do all of
their steam time in-house.”
Students may also take part in the sod turning
for the construction of the $15 million fi rst phase
of the new Lakeland Petroleum Centre on Sept.
11 – timed for the start of the Lloydminster Heavy
Oil Show.
“We’ll have lots of people in town and we have
invited some provincial dignitaries – the Alberta
government particularly. Th ey contributed almost
$10 million to this project,” said Johnston.
Th e dignitaries will include representatives
from sponsoring oil and gas companies including
Husky, and Canadian Natural Resources.
Husky donated $1.1 million to Lakeland in
May with $750,000 toward expansion and up-
grades and $360,000 to student scholarships and
fi nancial support for power engineering students.
CNRL contributed $500,000 this year toward
the new centre and facility upgrades and CIBC
donated $125,000 for general academic scholar-
ships in January.
“So we’re going to dig the hole and construc-
tion will be underway,” said Johnston who has ren-
derings of the new wing posted in the HOOT lab.
“Th ey are just fi nalizing their plans right now
and it looks phenomenal. We are pretty excited.
“We are still looking a bit more support from
our industry sponsors. We are not quite at our $15
million goal yet, but we are really confi dent that
our industry will come to the table,” added John-
ston.
“We have a really phenomenal investment
team that is out there now meeting with those
investment partners.”
Husky, Cenovus and Keyera Corp. are among
the industry partners that funded the development
of the new heavy oil power engineering curriculum.
Th e programming is also benefi ting from a
$1 million donation that is being paid over four
years from Calgary philanthropist Allan Markin.
Th e donation was made in 2009 through Markin’s
Healthy Learners Fund.
Lakeland is looking for funding to acquire
some specialized heavy oil equipment for the new
wing including a once-through boiler, a distillate
tower and some SAGD and upgrader simulations.
“It’s important to have the latest technology.
You can simulate the entire upgrading process,”
said Johnston.
“Students can go in and they can break it down
and see how it works. Simulation is going to be the
key to the future which is why it is important for
us to have those tools for our students.
“We actually installed symtronics simulation
(boiler simulation) this summer so students will
have some simulation for a boiler. Th at’s pretty
awesome. We are pretty excited about that,” John-
ston said.
Th e new Petroleum Centre will eventually
house three steam boilers, two large theatres,
change rooms, offi ces and numerous class rooms
when both phases are complete.
Th e fi rst phase will feature four 60-seat class-
rooms, a faculty suite, some staff offi ces and the
third class lab. A grand opening for this phase is
timed for Lakeland’s centennial year wrap up in
November 2013.
Th e City of Lloydminster has contributed
$50,000 to the Lakeland Centennial Campaign
that kicks off Nov. 10 in Lloydminster with the
Great Prairie Steak Cook-off sponsored by the
City of Lloydminster and Lakeland College
alumni.
Despite the historic investments and increased
enrolment this year, student housing may not be an
issue in Lloydminster.
All of the available rental accommodations in
the Husky Energy Residence Village will be avail-
able to students this fall.
Students will also be greeted by new faculty
members who will welcome the new third class
and fourth class power engineering students on
orientation day.
“I am very excited. We’ve worked so hard this
past year,” said Johnston.
“We’ve worked so hard on the program and
these lab upgrades, and we are fi nally starting to
see the results of all that hard work.
“We’ve got a couple of new faculty members.
We have the biggest faculty that we’ve ever had; we
have fi ve which is unheard of in this program.
“Now it’s nice to put in all into place and to
implement it.”
Construction will be underway
PIPELINE NEWS September 2012 A23
One Call Will Supply It All
Edmonton – Th ree major oil spills in Alberta this summer have prompted
a safety review of the provincial pipelines regulated by the Energy Resources
Conservation Board.
Alberta Energy Minister Ken Hughes has asked the ERCB to retain an
independent third party to review pipeline safety in the province.
Th e ERCB, in conjunction with an independent third party to be contract-
ed, will review how pipeline integrity is managed, how safety of pipelines cross-
ing waterways is ensured, and how responses to pipeline incidents are handled.
“As leaders in energy production and regulation, our pipeline integrity
standards must be among the best in the world. If changes are needed, Alber-
tans can rest assured that we will make them,” said Hughes on June 20.
“Th e energy industry is the economic lifeblood of our province, and at the
same time we want to ensure that Albertans have clean water, clean land and
clean air. Today we are taking signifi cant steps to ensure this will be the case for
decades to come.”
Th e call for a review was time, with an announcement by Enbridge Inc. to
spend $500 million to change the design of its Northern Gateway pipeline in a
bid to address safety concerns of aboriginal groups and others.
Th e proposed $5.5 billion project has been the focus of heated debate
among local communities, environmental groups and politicians.
Th e request for pipeline safety review came two days after the spill of
230,000 litres of oil from an Enbridge pumping station on the Athabasca pipe-
line near the town of Elk Point on June 18.
On June 7, approximately475,000 litres of oil spilled from an old Plains
Midstream’s Rangeland pipeline near Red Deer in central Alberta.
Some of the leaked oil fl owed into the Red Deer River from a reservoir.
In late May, a Pace Energy Oil and Gas oil leak near Rainbow Lake in the
northwest of the province spilled about 5,000 barrels.
Th e new pipeline safety review will run in conjunction with the current
incident-specifi c investigations the ERCB is conducting.
Th e pipeline safety review will be broader in scope, and will look at existing
regulations and industry best practices from Alberta and around the world. At
the conclusion of the review, a report will be submitted to Minister Hughes.
Alberta has almost 400,000 kilometres of provincially-regulated pipeline.
Th e number of incidents has been steadily declining, from 885 in 2007 to 641
in 2011 said the government.
All incidents, ranging from contact with a pipeline that does not cause a
release to a spill, must be reported to the ERCB.
Pipeline spills prompt safety review
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A24 PIPELINE NEWS September 2012
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OIL AND WATER HAULING
Regina – Th e
August sale of Crown
petroleum and natural
gas rights generated
$23.3 million in revenue
for the province, which
was more than double
the $10.5 million from
the June sale.
Th e proceeds from
the August land sale
help to push the total
revenues for the year to
$78.9 million with the
next sale scheduled on
Oct. 1.
Minister responsible
for Energy and Re-
sources Tim McMillan
said the August sale not
only provided a healthy
return for the province,
but also refl ected the
strong, ongoing interest
by the industry in Sas-
katchewan's oilpatch.
“Saskatchewan
off ers a competitive, at-
tractive environment for
exploration and devel-
opment and companies
are placing a premium
on our oil and gas re-
sources,” said McMillan.
“Th at’s refl ected in
the average dollars per
hectare received in these
sales, and so far in 2012
our average dollars per
hectare price is tracking
well ahead of that of the
country's other major oil
producer, Alberta.”
Petroleum and
natural gas rights in Au-
gust sold at an average
of approximately $500
per hectare, slightly
lower than the $542 per
hectare price in June.
Alberta’s lease and
licence totals averaged
just $176 per hectare in
their bi-monthly sale of
Aug. 8.
Th e August sale in
Saskatchewan included
237 lease parcels that
brought in $22.9 million
in bonus bids and two
petroleum and natural
gas exploration licences
that sold for $366,109.
Th e Weyburn-Es-
tevan area received the
most bids with sales of
$10 million. Th e Swift
Current area was next at
$6 million, followed by
the Lloydminster area
at $5.5 million and the
Kindersley-Kerrobert
area at $1.7 million.
Th e highest price
for a single parcel was
$2.4 million. Standard
Land Company Inc. ac-
quired this 1,036-hect-
are lease southeast of
Gull Lake.
Th e highest price
on a per-hectare basis
was $11,151. Ranger
Land Services Ltd. bid
$180,533 for a 16-hect-
are lease parcel north-
east of Turtleford.
A special explor-
atory permit block
on off er southwest of
Assiniboia received a
work commitment bid
of $492,166 from Stan-
dard Land Company
Inc.
Weyburn-Estevan summary
(numbers rounded up)Th e top purchaser
of acreage in this area
was Stomp Energy Ltd.
that spent $1.8 mil-
lion to acquire 14 lease
parcels.
Th e top price paid
for a single lease in this
area was $1.1 million by
Silver Hawk Resources
Ltd. for a 648 hectare
parcel situated six kilo-
metres north of the Ry-
erson Bakken-Torquay
Pool, 13 kilometres
southeast of Redvers.
Th e highest dol-
lar per hectare in this
area was received from
Ranger Land Services
Ltd., at $5,026 per hect-
are for a 64.75 hectare
parcel located within the
Viewfi eld Bakken Pool,
6 kilometres northeast
of Handsworth.
Swift Current areaTh e top purchaser
of acreage in this area
was Standard Land
Company Inc. that
spent $4.7 million to
acquire fi ve lease parcels.
Th e top price paid
for a single lease was
$2.4 million by Stan-
dard Land Company
Inc. for a 1,036 hectare
parcel situated adjacent
to the Covington Upper
Shaunavon Oil Pool, 10
kilometres southeast of
Gull Lake.
Th is is the highest
dollar per hectare in
this area at $2,286 per
hectare.
Th e top price paid
for a single licence was
$227,337paid by O
& G Resource Group
Ltd. for a 1,292 hectare
block located within the
Hatton Milk River-
Medicine Hat Gas
Pools, three kilometres
northwest of Fox Valley.
Lloydminster areaTh e top purchaser
of acreage in this area
was Maverick Land
Consultants 2012 Ltd.
that spent $1.5 mil-
lion to acquire 10 lease
parcels.
Th e top price paid
for a single lease in this
area was $900,742 by
Ranger Land Services
Ltd. for a 259 hectare
parcel situated adja-
cent to the Turtleford
Waseca and Sparky
Sands Oil Pools, one
kilometre east of the
town of Turtleford.
Th e highest dol-
lar per hectare in the
sale was received from
Ranger Land Services
Ltd. that paid $11,151
per hectare for a 16.19
hectare parcel located
nine kilometres north-
east of the Turtleford
Waseca and Sparky
Sands Oil Pools, 10
kilometres northeast of
the town of Turtleford.
Kindersley-Kerrobert area
Th e top purchaser
of acreage in this area
was Standard Land
Company Inc. that
spent $460,543 to ac-
quire six lease parcels.
Th e top price paid
for a single lease in this
area was $204,443 by
Lane Land Services
Ltd. for a 261 hectare
parcel situated fi ve
kilometers southeast
of the Court South
Bakken Sand Oil Pool,
eight kilometres south
of Fusilier.
Th e highest dollar
per hectare in this area
was received from Stan-
dard Land Company
Inc. that paid $2,340
per hectare for a 64.75
hectare parcel located
eight kilometres north
of the Hearts Hill Bak-
ken Sand Oil Pool, four
kilometres southwest of
Denzil.
Southeast Saskatchewan led the land sales again in Au-gust, with total sales at $10 million. This wellsite is near Benson. Photo by Brian Zinchuk
August land sales revenue doubles up
PIPELINE NEWS September 2012 A25
By Geoff LeeVermilion, Alta. – Th e third annual Tony’s Con-
voy for Hope will be remembered as an emotional
event for organizer Tom Jack and the 28 truckers
who made the ride from Vermilion to Lloydminster
to fi ght cancer.
More than $30,000 was raised for the Cross
Cancer Institute by donations from 40 registered
trucks and supporters of the cause in memory of
Jack’s brother in-law, Tony Rossi from Toronto who
died from cancer in 2010.
Among the supporters for the July 21 event
were members of Jack’s family including his sister
Pat Rossi, Tony’s widow. It made for some heart-
felt opening comments from Jack at the Vermilion
Arena.
“Th e very fi rst year when we pulled out from
the weigh scale, all you truckers – I had my brother
in-law on the phone and you guys had the air horns
blowing for him,” said a tearful Jack to onlookers.
“Last year, I had my sister on the phone and
you guys blew the air horns for her. Th is year let’s
just blow them to make some noise, eh.”
Jack, who is also known as Trucker Tom, was
overcome by the presence of his sister, Pat and his
niece Sherri along with his aunt and uncle Gloria
and Ray Jack who arrived from Scotland.
“I’m super excited about it. It’s very emotional,”
said Jack as registered trucks rolled in for a 7 a.m.
breakfast provided by the Vermilion Rotary Club.
“I have 40 trucks registered, and I am hoping to
hit 50. If we get 50, the money will be there.”
Page A26
Cancer convoy raises money,
lifts spirits
A convoy of 28 trucks weaved its way on a new route through the streets of Vermilion before heading east on Highway 16 for Lloydminster. This year’s convoy raised more than $30,000 for the Cross Cancer Ins tute in Alberta.
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A26 PIPELINE NEWS September 2012
Tom Jack, with his sister Pat Rossi at his side, makes an emo onal speech before the start of Tony’s Convoy for Hope as other family members look on.
Page A25
“I have 40 trucks registered, and I am hoping to hit 50. If we get 50, the
money will be there.”
Th e event raised more than $47,000 in its fi rst two years, a fact that contin-
ues to amaze and delight Amber Williams from the Alberta Cancer Founda-
tion who celebrated her birthday at the convoy.
“Th is event is fantastic. Tom Jack has a lot of passion and he just wanted to
do something to help and, man does he help,” she said.
Th e event was also an eye opener for Pat and Sherri who made the trip out
west to experience the convoy for the fi rst time.
“It’s quite the thing to see. Th e support that is given from the community
is fantastic. Tony would have been very proud,” said Pat.
Ditto the enthusiasm of Sherri who said, “Th is is the third year and every
year my uncle says it’s getting bigger and better. We wanted to see it for
ourselves this year and be here in honour of my father, and take it all in and
experience it for ourselves.
“We are all going to be in the truck with my uncle leading the convoy.”
Jack hauls fl uid for W-K Trucking in Mundare with his red 2006 Western
Star truck that led the convoy on a new route through downtown Vermilion
before heading east on Highway 16 to the Lloydminster Exhibition Grounds.
In the pack was Darryl Huber from King’s Husky Petroleum Agency in
Lloydminster who decorated his bulk diesel truck with purple balloons repre-
senting a rare type of cancer.
“King likes to be involved in the community,” said Huber.
“Th is event is particularly in touch with us because we had a co-worker
(Richard Czuchro) died of mesothelioma earlier this year.
“I was asked by Darren Schneider (client relations) to come out. I was
actually hired as Richard’s replacement, so I am new to the company and new
to the event.”
Vermilion resident Perry Pottle who hauls produced water for Stanchuk
Trucking in Lloydminster drove in the convoy for the fi rst time with pink rib-
bons on his truck.
“My wife had breast cancer so she wanted the pink on there,” said Pottle.
“She did it."
Page A28
Over $47,000 in to years
Rob Vankosky, an operator with Op mus Transport, sprays his res in prepara on for the start of the Tony’s Convoy for Hope ride for cancer on July 21 from Vermilion to Lloydminster.
PIPELINE NEWS September 2012 A27
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A28 PIPELINE NEWS September 2012
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This year’s cancer convoy was an emo onal a air for organizer, Tom Jack who, was joined by a number of family members for the event. Back row (l-r) wearing blue shirts are John Harold (Tom’s stepson) and his wife Kiersten Har-old, Sherri Rossi (Tom’s niece), Ray Jack (Tom’s uncle) Janice King (Tom’s wife), and Sarah Jack (Tom’s daughter). In the front row are: Tom Jack, Katelyn Harold (daughter of Tom’s stepson), Mandy Jack (Tom’s mom), Pat Rossi (Tom’s sister), Gloria Jack (Tom’s aunt) and Ashley Harold (oldest daughter of Tom’s stepson).
Page A26 “I fi gured I’d been doing
this because my wife had breast cancer. It’s my day
off so I fi gured I’d come out and join the convoy.
“Th is is my fi rst year in it, but I’ve been sup-
porting it since he started it. It’s a good turnout.
Th ere are quite a few people here.”
Th e event is well promoted by Alberta sponsors
that include 106.1 FM Th e Goat in Lloydminster,
W-K Trucking in Mundare, Simply Signs and Tom
Jack Trucking in Vegreville, and Action Towing &
Recovery in Lloydminster.
John Buhnai and his wife Ginette, who own
Action Towing, entered two of the largest trucks in
this year’s convoy including their yellow Tow Mater,
one of the largest tow trucks in North America.
Th ey also bought a partially restored 1981
W900, one of two such antique trucks in the lineup.
“It’s a project that we’ve been working on for a
few months,” said Buhnai.
“We’re not anywhere near done, but we thought
we were done far enough along with it that we
would bring it along and show it off a bit.
“I am looking to raise money to help the Cross
Cancer clinic cancer out. It’s awesome.
“Th e oil patch is booming this year, and we’ve
had some oilfi eld trucks show up here today, so
that’s good to see. Th ey are supporting the convoy
better this year than they have in the last two years.”
Th e event included a fundraising barbecue
in Lloydminster with Sumo wrestling suits and a
bounce castle for kids.
Prizes were also awarded for the best three
decorated trucks.
Rob Vankosky, an operator with Optimus
Transport, took fi rst place for decorating in 2011
and he his wife Stacy pulled out all the stops with
truck cancer banners and ribbons in keeping with
the cause.
“I had lots of people from my family who have
died from cancer,” said Vankosky who hauls oil and
water for CNRL in Lloydminster.
“Th is the third year and I have been in it every
year. I can’t wait every year for it to happen. It’s a
great time. It’s nice to see everybody out.
“I think it’s supposed to rain, but all the victims
‘up there’ are going to hold the rain off for us today.”
Nothing short of running out of gas could keep
Earl Cleland and his wife Lisa away behind the
wheel of a loaner B&R Eckels Transport truck.
“Th is is my third event. I was involved in the
very fi rst one and it was such an emotional day
I just had to come back again and again,” said
Cleland, who currents works as shop foreman for
Leading Manufacturing Group (LMG).
“I will be coming back every year as long as I
can possibly keep driving these things. I love it and
my wife loves it.
“My mom survived breast cancer and there is a
long history of cancer in parts of my family so it is a
cause that’s dear to me and a very worthwhile cause
even if it I hadn’t known anybody with cancer.”
Cleland notes LMG made a donation to the
cancer convoy last year when he worked for B&R
Eckels without knowing much about him.
“Th ey sent a donation through my boss at B&R
at the time for me to make the donation,” said Cle-
land who believes what goes around comes around.
“I get along really well with the B&R manager
in Vermilion so he said come work for me for a cou-
ple of days and you can have a truck in the convoy.
So I took him up on his off er, and away we went.
“B&R Eckels made a large donation again this
year and last year. My fi rst event, I was with Lake-
land College and they made a donation that year.”
Convoy
PIPELINE NEWS September 2012 A29
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By Geoff LeeKerrobert – Petrobank continues to ramp up upgraded heavy oil production
at its toe-to-heel air injection, or THAI project, near Kerrobert using a bal-
anced operating protocol. Production was approximately 400 barrels a day by
mid-August.
Th at’s a signifi cant improvement from the 193 bpd in the fi rst quarter
and the 236 bpd produced in the second quarter due to an operating plan to
steadily increase production of upgraded THAI oil.
“Th e objective of our operating plan has been to balance air injection and
produce gas rates across the fi eld in order to actually build up the combustion
fronts,” said senior vice-president and chief operating offi cer Chris Bloomer
during a second quarter conference call on Aug. 14.
“We also optimized the confi guration and the performance of the produc-
tion pumps to help in achieving a balanced injection versus production rate,
and to extend the operating run time to reduce costs.
“Th is operating protocol has enabled more consistent operations overall
and improved well performance. To achieve this performance, we have kept air
injection at reduced rates,” he said.
“With improved performance we expect to bring up air injection rates, and
at the same time, continue to maintain a balanced approach to operations to
continue to improve production rates.”
Bloomer also noted the site experienced minimal intervention and well
downtime in the quarter due to improved pump operations with all surface
production equipment running smoothly.
Th e THAI wells were pre-steamed to heat and pressurize the formation
before air was injected into vertical injectors to ignite the oil in the reservoir.
Th at created a combustion front meant to push the oil into horizontal produc-
tion wells where it could be pumped to surface.
Th e THAI project became operational in September 2011 with 12 pro-
ducing wells after 15 months of an initial two well demonstration to prove the
technology works and upgrades recovered oil.
“Th e average quality of our sales oil is consistently upgraded at 14 degrees
API versus native oil at 10 API,” said Bloomer.
Th e current Kerrobert Phase II project has four production well pads, two
air injector pads and four compressors that can generate more than 100,000
cubic metres of air per day. Page A30
Kerrobert THAI project ramping up
The Kerrobert THAI project site includes this three stage treater with oil and water stor-age tanks in the background.
A30 PIPELINE NEWS September 2012
Saskatchewan is full of energy opportunity. We have over 40 billion barrels of conventional oil in place and exciting potential in heavy oil, oil sands, the Bakken Formation and other tight oil plays. We’re also on the leading edge of new research into enhanced oil recovery and carbon dioxide capture and storage.
Explore investment opportunities in your next energy destination, Saskatchewan. Stop by booth 262 at the Lloydminster Heavy Oil Show and visit us online at www.economy.gov.sk.ca
Ministry of theEconomy
Page A29Th e company is currently injecting air at only
eight per cent of design capacity with plans to
increase the rate of air injection to build the THAI
combustion front.
Th e balanced approach to air injection versus
the push for production is a lesson learned from
the pilot demonstration wells on how to create a
uniform combustion front on all of the producing
wells for THAI to function to its potential.
“We’ve moved toward a balanced approach,
spreading the air injection across the whole fi eld
generating a consistent burn in the combustion
front and minimizing the drawdown, and mini-
mizing the opportunity for ‘point breakthrough’
of combustion gas into the production wells,” said
John Wright, president and CEO.
“We have been very cautious in this process,
and we are starting to see what we consider to be
very good results. We are now seeing consistently
upgraded crude produced across the fi eld.”
Wright noted the cautious approach is due
to that fact not all 12 wells are producing at the
desired rate as a result of “hot spot breakthroughs”
from the combustion gas.
“We’ve tapered off on the air injection and re-
duced the drawdown on those wells to avoid having
kind of a fi ngering eff ect for the combustion front
actually going through to the horizontal well,” said
Wright who told an investor the balanced strategy
is working.
“Really, the single biggest thing that has hap-
pened in recent times is the combustion front is
starting to act like a much more elastic homoge-
neous burn front.
“It’s not a series of individual points. It’s start-
ing to join together and link up,” he explained.
“Th is is the stage we are looking forward to –
ramping up air injection rates – ramping up with-
drawal rates, and starting to really get going with
the full implementation of the THAI process.
Page A32
Chris Kennedy, instrumenta on technologist at the Ker-robert Phase II site is dwarfed by this giant size produc- on wellhead at the facility near Kerrobert.
Hot spot breakthroughs complicate THAI
PIPELINE NEWS September 2012 A31
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Page A30
“Th ere is no question we’ve taken
it slowly. We have been perhaps overly
cautious, but I think we have some
history with our pilots of creating
point breakthroughs and very high
fl ow rates which are what these wells
are capable of – but not necessarily
creating a full reservoir application of
the combustion front that allows for
the best recovery and the best sweep
of the fi re front itself.
“We are looking forward in this
next phase to ramping things up,” he
added.
Petrobank received regulatory
approval in August to initiate cold
production on its two well THAI
demonstrate pilot at Dawson in the
coming weeks.
Th e plan calls to cold produce the
wells for a period of time to order to
condition the reservoir prior to THAI
operations.
“We believe the placing of two
horizontal wells on cold production in
producing conventional heavy oil will
create a broader drawdown area along
the horizontal well,” said Bloomer.
“Th ere is the potential for a sig-
nifi cantly faster start up and ramp-up
under THAI.”
Petrobank completed three
CHOPS wells (cold heavy oil produc-
tion with sand) near Luseland and
three CHOPS wells in the Kerrobert
area in the Q2 with more to more to
come on line in the foreseeable future.
Luseland is also a potential
expansion site for THAI as noted in
Petrobank’s corporate presentations.
Wright told the conference that
he expects the second half of 2012 to
a be a productive period for Petrobank
and its oil light entity, PetroBakken.
“I am pleased to report that both
PetroBakken and Petrobank continue
to show positive improvements.
“PetroBakken’s production
increased 10 per cent quarter over
quarter even though we sold 4,100
barrels of oil equivalent a day in late
2011 and the fi rst half of 2012,” said
Wright.
“Petrobank’s Kerrobert project
has recently seen a faster production
ramp-up which we will focus on ac-
celerating.
“With 75 per cent of PetroBak-
ken’s drilling planned for the second
half, and growing production at
Kerrobert with Petrobank, we look
forward to an active and busy second
half of 2012 and stronger growth into
2013.”
Control panel operator Richard Schmalzbauer keeps tabs on the computer func ons of various produc on facili es at the Kerrobert Phase II THAI project located 20 kilome-tres south west of Kerrrobert.
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A34 PIPELINE NEWS September 2012
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patrol a month.
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Kerrobert – Th e town of Kerrobert is poised
to add new oil and gas workers to its population
of 1,100 now that it has fl ushed its reputation for
producing brown drinking water down the drain.
Th e Town celebrated the completion of $5.4
million in upgrades to its water supply and water
treatment plant Aug. 3 with Saskatchewan Minis-
ter of Economy Bill Boyd on hand for the ribbon
cutting.
“One of the things we all take for granted is
good quality water and sewer infrastructure. You
never really think about it until you turn the tap on
and nothing comes out,” said Boyd.
“Th is is important for the ongoing operations
of Kerrobert and the growth, a new reverse osmo-
sis water fi ltration system, a new well, and a new
lagoon to contain additional waste produced by the
water treatment process.
“Kerrobert has had a reputation for brown
water and that has been a big deterrent for people
moving to town,” said Mayor Erhard Poggemiller.
“Now, we have a water system where we have
clear water, and we have a lot more of it. We’ve
allowed for growth for the community. We could
easily accommodate growth to 1,500 people with-
out doing any more work to our water treatment
system.
“If we had businesses come in that want to
develop in the oilfi eld or for manufacturing they
would defi nitely be tied into our water system.”
Th e project was completed with approximately
$4.9 million in funding from the federal, provincial
and municipal governments.
Th e government of Canada contributed more
than $1.32 million to the project under the Infra-
structure Stimulus Plan and the Municipal Rural
Infrastructure Fund (MRIF).
Boyd told the audience that the province of
Saskatchewan also contributed more than $1.32
million in matching stimulus funds, $500,000 in
MRIF funding and $325,000 in an interest deduc-
tion grant.
“We are very pleased as a province to be
involved in this. It provides stable funding for the
community here and a good water source going for-
ward,” said Boyd. Page A35
Kerrobert turns on taps for growth
Kerrobert Mayor Erhard Poggemiller, with scissors in hand, waits for the cue to cut the ribbon to celebrate the completed upgrades of the Town’s water supply and water treatment plant. Poggemiller is anked by town Councillor Monica Knorr, le , and Saskatch-ewan Minister of the Economy Bill Boyd and Council-lor Wayne Mock on the right. The treatment plant lies in Boyd’s riding of Kindersley.
PIPELINE NEWS September 2012 A35
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Page A34
Th e balance of the funding comes from customer billing to recover the cost
to the Town including ongoing maintenance.
“You have to show the province that your water billing system will eventu-
ally pay for whatever indebtedness you have, and that’s what we’ve done,” said
Poggemiller.
“Th e cost of our water to the user is probably higher than most communi-
ties around us, but those communities around us are also fi nding out that they
need upgrades. Pretty soon we will all be in the same boat.”
Th e upgrades will help to open the doors to new business startups and
entice more younger families to move to the area for jobs in the busy oil and
gas fi elds around Kerrobert.
“Th e oil and gas companies that I have talked to are very happy and very
pleased that we fi nally have clear water that they can rely on. However, the cost
is a factor,” he said.
“Th e water has always been an issue in this town and that was one of the
determinants in holding the town back as far as population goes.
“People came to town and they would look at the water fi xtures in a house
or a motel or hotel and they would know that immediately we had that brown
water problem.
“Th at was a big deterrent and that’s gone. We don’t have that now,” he said.
“Th ere was a huge cost to clean that and there are also ongoing mainte-
nance costs for the reverse osmosis system that needs fi lters.
“Th ose fi lters need to be replaced on a three to fi ve year basis and that’s a
budgeted cost in that time span of anywhere from $40,000 to $70,000 depend-
ing on how bad the fi lters are.”
Th e new water treatment upgrades are well timed with the construction
start this summer on the $23 million Kerrobert & District Integrated Health
Centre that should add to the town’s workforce and population.
“What we are looking for is new families coming to town – a younger pop-
ulation,” explained Poggemiller prior to the water treatment plant ceremony.
“Some of the things we get asked about are schools, health care and what
we have for utilities.
“Th is is one of the biggest investments that we have done in the last 50
years.
“Next, I would like to see a major paving program in town. We are work-
ing with highways (Ministry of Highways and Infrastructure) to try to get the
highway through town upgraded and we are also doing upgrades to our water
pipeline.”
Mark Knorr, public works superintendent of Kerrobert, explains some of the electronic controls at the Town’s new reverse osmosis water treatment plant during the grand opening on Aug. 3
A36 PIPELINE NEWS September 2012
SEWEURODRIVE
www.kelro.com
Calgary – CWC Well Services Corp. has
boosted its original capital spending budget of
$8.7 million for 2012 by $5 million to build two
new service rigs by the end of the year.
Th e new service rigs will bring the CWC
fl eet count to 68 by year-end and position the
company to expand its area of operations into
the north central region of Alberta this coming
winter.
Th e Calgary based company released the
news with its second quarter and year-to-date
highlights of 2012 with revenue of $56 million
for the fi rst six months, a 33 per cent increase
compared to the same period of 2011.
Th e bulk of the revenue gains resulted from
the acquisition of 22 service rigs from Trinidad
Well Servicing (TWS) in June.
Without the TWS purchase the company
would have made a 3 per cent revenue gain over
2011 for the second quarter ending June 30.
Th e company said further increases refl ect
the general recovery in the oil and gas sector
and stronger demand for CWC’s equipment and
services.
Th e service rig acquisition from TWS makes
CWC the sixth largest well servicing company
in Western Canada with its well servicing and
snubbing and testing activities.
Th e service rigs provide completions, work-
overs and abandonments with depths ranging
from 1,500 to 5,000 metres with operating loca-
tions in Grande Prairie, Red Deer, Lloydminster,
Provost and Brooks in Alberta and in Weyburn
Saskatchewan.
CWC also operates 8 coil tubing units to a
maximum capacity of 2 inch coil and depth rat-
ing from 1,500 to 4,000 metres.
Th e company has one of the largest snubbing
and well testing divisions in Western Canada
with 8 rig assist and standalone snubbing units
seven of which operate at 5,000 psi.
CWC operates 12 well testing packages
ranging from 200 to 285 psi trailer-mounted
pressure tanks and 18 metre freestanding fl are
stacks.
Major capital expenditures in Q2 included
$800,000 to complete the construction of a new
double service rig, and $700,000 toward the
construction cost of a new Class III, 2-inch coil
tubing unit.
Th e company also spent $200,000 to free
stand two double service rigs.
Th e company reports it will continue to focus
on providing services to better capitalized and
fi nanced senior and intermediate companies with
higher exposure to oil opportunities instead of
dry natural gas plays due to stronger prices for
oil.
CWC said 99 per cent of its work is currently
derived from oil related activities.
Field activity levels picked up in July and
August compared to an extended spring breakup
and rainy weather in the second quarter that pre-
vented the company from getting its equipment
to the fi eld.
CWC shifted its sales and operations focus
towards maintenance, workover and abandon-
ment activity as opposed to completions oriented
work in its service rig division in Q2 resulting in
better activity levels in July and August.
Th e strategy was in response to volatile oil
prices due to a global economic slowdown that
led some exploration and production companies
to reduce their capital spending.
Th e company said it doesn’t expect to experi-
ence any pricing pressure in its service rig from
its key exploration and production customers or
incur any hourly rate reductions in the second
half of 2012.
Despite the potential for a slowdown in
global economic activity, CWC said it is confi -
dent that its well servicing division will experi-
ence good utilization and activity levels for the
rest of the year.
Th e well servicing division accounts for ap-
proximately 90 per cent of its annual revenue.
Th e company also made the TSX Venture
Top 50 Companies list in 2012 for its strong
performance in the areas of market capitalization
growth, share price appreciation, trading volume
and analyst coverage.
CWC posts strong Q2 with TWS takeover
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A38 PIPELINE NEWS September 2012
Saskatoon – Federal Minister of Natural Resources Joe Oliver extolled the
benefi ts of the government’s plan called Responsible Resource Development for
Saskatchewan during an address to the Greater Saskatoon Chamber of Com-
merce on Aug. 9.
“Responsible Resource Development achieves the balance we need now to
unleash the potential of our country’s natural resources,” said Oliver.
“It will create good jobs and economic growth here in Saskatoon and
across Canada, while strengthening environmental protection and enhancing
consultations with Aboriginal peoples.”
While in Saskatoon, Oliver met with Bill Boyd, minister of the Economy,
and Tim McMillan, minister Responsible for Energy and Resources, to discuss
the benefi ts of the resource development plan to Saskatchewan’s economic
growth.
In 2011, the natural resource sectors employed nearly 800,000 people
in communities across Canada. Natural resources represent 11 per cent of
Canada’s gross domestic product and generate billions of dollars each year that
benefi t provinces such as Saskatchewan.
“Th e Canadian oil and gas extraction industry alone pays an average of $22
billion a year in taxes, land payments and royalties. Mining adds another $2.8
billion a year to government revenues — billions of dollars a year for health
care, education and other vital services that are such a fundamental part of our
quality of life,” said Oliver.
“Th ere is optimism because the Harper government has created an eco-
nomic climate that attracts the investments we need to ensure economic
prosperity and a high standard of living for all Canadians, now and for future
generations.”
Responsible Resource Development puts in place maximum beginning-to-
end timelines for project reviews and helps to eliminate unnecessary and costly
duplication in environmental assessments while strengthening environmental
protection and enhancing consultations with Aboriginal peoples.
Oliver and Kelly Block, MP for Saskatoon-Rosetown-Biggar, also took
the opportunity to tour the Potash Corporation of Saskatchewan Inc.’s Cory
potash mine and met with employees and offi cials to emphasize the value of
Canada’s mining industry.
Chamber digests feds’ resource policy
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Zargon resumes drillingFollowing a quiet summer,
Zargon Oil & Gas Ltd. will resume
horizontal drilling for oil this fall at
Bellshill Lake (three wells), Hamilton
Lake (three), Taber South (three) and
for Williston Basin Frobisher targets
(four).
Each of these locations target
increased oil recoveries from existing
oil pools.
Field activities in the second
quarter of 2012 were mostly limited
to the completion and tie-in of wells
drilled last winter. Refl ecting spring
breakup, the second quarter of 2012
drilling program was restricted to 0.2
net oil wells that had a 100 per cent
success rate.
For the year, Zargon has drilled
9.8 net oil wells.
Zargon is developing a tertiary
recovery alkaline surfactant polymer
(ASP) oil exploitation project at
Little Bow, Alberta. Th is ASP project
entails the injection of a dilute chemi-
cal solution into a partially depleted
reservoir to recover incremental oil
reserves.
PIPELINE NEWS September 2012 A39
A40 PIPELINE NEWS September 2012
This new apartment complex on the Alberta side of Lloydminster should help to alleviate the hous-ing shortage in the city due to rapid growth led by the heavy oil industry.
Lloydminster Mayor Je Mulligan is over the moon knowing CBC television will air more than 12 hours of coverage from Lloydminster during the 2013 Sco a-bank Hockey Day in Canada event ac vi es Feb. 5-9.
NEWSPIPELINE SECTION B
September 2012
By Geoff LeeLloydminster – Th e Lloydminster Heavy Oil Show Sept. 12-13 fi ts plans by
the City of Lloydminster to make event hosting a major industry.
Event hosting could be part of Mayor Jeff Mulligan’s re-election campaign
for the Oct. 24 municipal election, based on the success of the heavy oil show
as an economic generator.
“Since I got elected, I said that we wanted to make our third industry event
hosting,” said Mulligan.
“Th e reason I was confi dent in saying that is because of events like the
heavy oil show and its suc-
cess, not just on a regional
scale, but on a national and
international scene.
“Every time we host
something here, I am left
with another relationship
that we can leverage as a
city – another source of information, another potential investor.
“Often time when we talk about the heavy oil show, we get an opportunity
to meet people who have access to energy ministers both in this country and
other countries. Th ose contacts are invaluable,” said Mulligan.
“Th is heavy oil show brings people that aren’t just interested in heavy oil,
but they’ve got to fi gure out where to put regional offi ces and where they can
get people.
“I think we can do a really good job of starting to leverage those opportu-
nities.”
Lloydminster will also have the opportunity to sell itself as a great place
to live, work and play when it hosts 2013 Scotiabank Hockey Day in Canada
events Feb. 5-9.
Th e city will also host the Women’s Volleyball Nationals March 7-9 at
Lakeland College during their centennial year celebrations.
Th e city committed $50,000 for Lakeland’s centennial, a donation that
Mulligan calls a no-brainer.
“What they’ve put into this economy in terms of people and talent and
what it means to have a college of that calibre in our city – is hard to explain
how valuable that is,” he said.
Th e city and oil and gas companies can also expect to reap valuable expo-
sure and sponsorship opportunities from CBC television coverage of Hockey
Day in Canada.
Lloyd oil show incubates event hosting
e-y
c
“Th ere will be an opportunity for us with CBC to have the oil story told
and have it told in a positive manner,” said Mulligan
“Th ey always do over 12 hours of prime time television. Th ey feature what’s
diff erent about your community.
“Th ey’re going to spend some time getting underneath the oil industry and
really showing in a light that we probably could never do.”
Mulligan will begin his pitch during the Sept. 11 banquet to kick off the
heavy oil show at the newly renovated Lloydminster Exhibition Grounds with
a message that Lloydminster is a world class centre for heavy oil.
He said he’d be telling an international audience that “we have world class
innovation; we have the best entrepreneurs; we have some of the most talented
experts in the industry, and that we continue to stake our claim to be the heavy
oil capital of the world.”
Mulligan said the most important impact of the oil and gas industry on the
development of the Lloydminster in the past two year is the rapid rate of new
construction in the Hill Industrial Park.
“Th e buildings are popping up like carrots, and it’s all to support oilfi eld
services,” he said.
“I would say there is probably 30 per new development and 60 to 70 per
cent are either guys who are trading up or consolidating.”
Construction is also underway on the City’s new $40 million Infrastruc-
ture Services Operations Centre in the Hill Industrial park.
Mulligan said the high level of industrial development means the oil and
gas industry is still very strong in Lloydminster.
“We continue to export more than ever our technology,” he said.
“We are continu-
ing to attract businesses
because it’s clearly evi-
dence there is marginable
(profi table) business to be
done here at a reasonable
price point.”
Th e city set a build-
ing permit record of $180 million in 2011, and is on track for its second best
year in 2012 with more than $82 million in permits in the fi rst six months of
the year.
Page B2
B2 PIPELINE NEWS September 2012
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Page B1 “We’ve got some big stuff going on as we speak,”
said Mulligan, referring to the ongoing construction of the new $13.3 million
RCMP building due to open sometime in 2013.
Planning is proceeding on a new Synergy Credit Union building expected
to be under construction in 2013 and a new high school could also be an-
nounced in 2013.
Construction is also proceeding on two new schools in keeping with Lloy-
dminster’s status as one of the fastest growing cities in Western Canada and
one of the youngest in terms of demographics.
“Th e oil and gas sector requires a goodly number of people that are under
45 years old for the type and style of work that’s been done,” said Mulligan.
“We continue to attract those people who are starting their lives and trying
to get a higher than average disposable income so they can make a diff erence in
their lives.”
Aff ordable housing remains a key issue as new and existing rental proper-
ties can price families out of the entry level market.
“Th ere is no ability to save the down payment,” explained Mulligan, allud-
ing to the high rental rates in the city.
“We’re blessed to have some wonderful developers in our city. Some have
actually turned their focus to building aff ordable entry level homes both in the
rental market and in the purchase market.
Page B3
Visco Demoli on Contractors are using a crusher to re-cycle concrete from the rubble of the former Nelson Lum-ber buildings at the corner of Highway 16 (44th Street) and Highway 17 (50th Avenue). The demoli on and recycling of all site materials is being managed by Fillmore Construc- on. The property is currently owned by Loblaw.
A city block of Highway 16 (44th Street) through Lloydminster is undergoing rehabilita on and repaving just three years a er it was rebuilt. Tra c issues have come to the fore in recent years with the rapid growth of the oil and gas industry in Lloydminster.
Affordable housing
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“It takes some time for those to come on stream. We have three really good
projects started right now in apartments, apartment/condos and row housing
condos.
“I think within the next 18 months, we will alleviate some of this, but the
pressure right now is on. Basically it’s moved from $52,000 to about $72,000 in
family income to be able to move into home ownership.”
Mulligan hopes Lloydminster can follow the Saskatoon model that’s
taking advantage of the Saskatchewan government’s Headstart program to
build new entry level homes in partnership with credit unions, developers and
municipal governments.
“We think we can do some things in that area. We’re working with the
credits unions that are involved in that project with the government of Sas-
katchewan,” said Mulligan.
“We’re pretty excited that in 2011 we could announce that we had the
same number of ‘residential doors’ built on both sides of the border.
“Now, there are diff erent styles of housing in some cases or diff erent values,
but we are really pleased to say last year, we were about 50-50 for the fi rst time
in anybody’s recent memory.”
Th e downside of rapid growth and construction in Lloydminster is traffi c
fl ow including tie-ups from the rehabilitation and repaving of a city block on
the Highway 16 corridor that was rebuilt in 2009.
Th e city is also in the planning stages for the staged twinning of Highway
17 downtown including ongoing water and sewer replacements on the corridor
route that could take fi ve to seven years to complete.
“Really you won’t eliminate the gridlock on Highway 17 until you’ve got
the twinning end to end,” said Mulligan, who estimates the total cost between
$37-40 million.
“Th ere is an expectation in Lloydminster that you can get anywhere in fi ve
minutes. We may to recalibrate that to anywhere to anywhere in 10 minutes as
the city grows.
“Obviously, the white elephant in the room is what about the train tracks
and what about an overpass and what about those things?
“Th ose take the co-ordination and the support of the railway companies
who have rights that pre-date our city.”
Th e industrial ring road will also require a sizeable investment from three
or four levels of government to engineer and construct better corners for large
oilfi eld and agricultural vehicles to navigate safely.
All of these planning issues will come to light with the release of the City’s
draft E4 long term strategic plan next spring that may have more to say about
event hosting for economic development.
“I like to see us start thinking again about a number of sporting events that
are on a national stage,” said Mulligan.
“We’ve got the best facilities. We’ve got the best organizations; we’ve got
the cash, so I think there is a lot of good to come from positioning ourselves as
an event host.
“Th ings like the heavy oil show every second year putting Lloydminster
best foot forward puts me in a great platform in which to talk.”
Lloydminster is one of the fastest growing ci es in West-ern Canada. Construc on of new housing was equal on both sides of the border in 2011 for the rst me in re-cent memory.
B4 PIPELINE NEWS September 2012
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By Brian ZinchukEstevan – When it comes to special wells, there aren’t many like the new
Aquistore injection well that was drilled during July and August near Estevan.
To that end, it’s not often you have an open house on a drilling rig, but
that’s what happened on July 24.
“It went pretty well. We had the mayor of Estevan, the reeve, (MLA)
Doreen Eagles and Mike Monea as the man in charge of building the CO2
capture on the power plant,” said Dr. Malcolm Wilson, CEO of the Petroleum
Technology Research Centre. Aquistore is a project of PTRC.
Aquistore is an independent research and monitoring project which
intends to demonstrate that storing liquid carbon dioxide (CO2) deep under-
ground (in a brine and sandstone water formation) is a safe, workable solu-
tion to reduce greenhouse gases. Th e project will take carbon dioxide from the
nearby Boundary Dam Power Station and inject it into the Deadwood forma-
tions just above the Precambrian basement.
A bus came from Regina carrying about 35 people to the open house.
Another half dozen were picked up in Estevan. A presentation took place at
Boundary Dam Power Station, the source of the CO2 for Aquistore, but due to
construction activity they were unable to visit the capture facility beyond driv-
ing past.
Th ere were people in attendance from the United States, South Korea and
Japan. Wilson noted the Koreans spent about a week with the PTRC, talking
to engineers and geologists.
Th ere was also interest in Aquistore from South Africa. South Africa has
a unique role in the history of carbon dioxide capture and storage. Th e nation
took a process initially used by wartime Nazi-Germany to gasify coal and built
the largest coal gasifi ers on the planet. Th ey were the model for the Dakota
Gasifi cation plant at Beulah, North Dakota, which supplies the 20-inch
pipeline feeding carbon dioxide to the Weyburn-Midale project. Th e PTRC
provided the scientifi c study for that project.
Th e South African Sasol coal-to-liquids plant is the largest single emitter
of carbon dioxide in the world, Wilson said. Page B6
Aquistore holds open house during drilling of injection well
A geologist chips o the ends of core samples before the tubes were sealed.
PIPELINE NEWS September 2012 B5
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It's a long ways down, looking down the derrick from the top drive on the Nabors triple working on the Aquistore injec on well.Photo by Brian Zinchuk
B6 PIPELINE NEWS September 2012
Page B4Now things have come full circle, with Wilson saying
the South Africans are interested in repeating the Aquis-
tore project by 2017. Th e South African Energy Develop-
ment Institute is in charge of developing a carbon capture
and storage project for their nation.
“Th ey have no background at all. It’s a country that is
heavily involved in mining,” he said regarding South Afri-
can experience in drilling.
“Any time you’re working with a gasifi cation facility,
your ability to capture CO2 is improved.”
Th e South Africans are looking at sites, he said. “Th ey
won’t be as big as Aquistore. Th ey’ll be trucking in CO2,”
he said.
Indeed, that nation’s best locations for large scale
storage are off shore. However, the test well will be done
onshore.
Th e PTRC has had a continual fl ow of tours pass
through the Aquistore site. Later in August a group from
the United Kingdom visited, as did SaskPower executives.
In mid-August the fi rst of two holes was nearing
completion. Th ree pieces of core were taken from the well.
“It’s horrendously expensive doing core,” Wilson noted.
After the open-hole logging and some side wall coring,
the next stage was the installation of the special casing,
equipped with sensors.
Following completion of the injection well, a second
well will be drilled nearby. Th e purpose of this well is for
observation. “Th e observation well has more jewelry,” Wil-
son said of the sensor package.
Th e PTRC has also launched a new website dedicated
to Aquistore. It can be found at aquistore.ca.
Coring is pricey
The grey tube is the inner core barrel as it was removed. The bar-rel contained the second piece of core taken from the Aquistore injec on well. Photo by Brian Zinchuk
PIPELINE NEWS September 2012 B7
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Story and photos by Brian Zinchuk
Carnduff – Trucking
is in the blood of the
Boyes family of Carn-
duff , owners and opera-
tors of Bandit Oilfi eld
Hauling.
Th e company is
headed up by Scott
“Scooter” Boyes and
his wife Sherry. Th eir
sons are involved as
well, with Jason, more
commonly known as
“Jake,” and Shawn, who
goes by “Gump,” both
driving.
Bandit specializes
in light and heavy oil-
fi eld hauling. Th ey have
fi ve of their own trucks
and one leased-on unit.
Th eir wheels include
winch trucks and a
Texas bed tri-drive.
Th e trailer fl eet
includes hiboys, 50- and
60-ton scissor-necks,
trombone lowboys and
jeeps.
“We’ve hauled sub-
structures, derricks, pipe
– any aspect of a drilling
rig,” Scott said.
To that end, they
work with both rig
movers in the south-
east, Fast Trucking and
Circle D. Th ey could
fi nd themselves haul-
ing tanks one day and
wellsite trailers the next.
Loaders, excavators and
dozers are also com-
monly carried.
Th ere aren’t any
pickers, though. “Th ere’s
only one person in this
outfi t with a picker tick-
et, and he doesn’t want
to run it. Th at would be
me,” Scott said.
“We started in 1976
with Fast Trucking. I
swamped for Tony Day.
He drove it, I swamped.
He had two trucks,”
Scott said.
“Th ere was about
10 of us there. I worked
with him off and on for
18 years. I truck pushed
for fi ve years,” Scott
said.
A truck push is the
supervisor on a rig move
who co-ordinates all the
action.
“I was taught by
one of the best, and
that was Tony Day. He
taught me a lot about
work skills and ethics.
I have a lot of respect
for him and Vi. If I had
an idol, that would be
him,” Scott said.
It explains a close
working relationship
with the Fast Trucking
group of companies that
continues to this day.
Page B9
Making off like a BanditSco “Scooter” Boyes.
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Sherry and Sco “Scooter” Boyes stand at the site of their soon to be constructed shop for Bandit Oil eld Hauling. Day Construc on did the dirt work.“Other people go on
Facebook. I go on Ritchie Brothers or Kijiji. I just bought two trailers and my last truck off Kijiji.”
-Scott “Scooter” Boyes
Page B8“I used to be partners with a rental company
for, oh, two-and-a-half, three years,” he said. “Apex
came along and bought us out in 2007. We had
wellsite trailers, tanks and pumps. We had one
truck and trailer.”
“Th at’s when my son and I bought a truck and
leased it on with a company out of Estevan. He
drove and I managed and dispatched.”
Scott also truck pushed for Bar-D out of Nisku,
and was stationed at Handsworth, north of Stough-
ton, moving rigs.
Bandit was incorporated in 2008. Sherry noted,
“Our youngest, Jason, who everyone calls ‘Jake,’ said
we should go out on our own. We started with one
truck, and then added a second truck.”
In the meantime, Sherry spent her career in the
fi nancial industry. “I worked for the credit union for
30 years. I took early retirement two years ago to
become the full-time bookkeeper for Bandit,” she
said.
Prior to making the jump, she was working four
days a week at the credit union.
“I was fi nding it was too much work. Now I’m
full-time offi ce manager,” she said.
She’ll soon have a new offi ce to manage, too.
Th e company is the fi rst to build on one of the
eight sites the Town of Carnduff has recently
opened up for commercial development on the
northwest corner of town.
“We ran out of yard space where we’re at,” Scott
said. Th eir current facility is south of Highway 18
on the west end of town.
Day Construction of Carnduff is doing the dirt
work.
Th e new shop will by 60 by 120 feet, with six
bays.
“I added an extra bay just in case I buy another
truck,” Scott said.
With a laugh, he added, “If you can’t fi ne me in
the oilpatch, you’ll fi nd me at Ritchie Brothers.
Page B10
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Carnduff trucking out t a family affair
Page B9“Other people go on Facebook. I go on Ritchie
Brothers or Kijiji. I just bought two trailers and my
last truck off Kijiji.”
Th at extra bay will also have wash bay capabili-
ties. But the company has been making use of the
new truck wash in Oxbow operated by Courage
Oilfi eld.
Th e company has doubled its fl eet since De-
cember. Scott noted, “When guys started walking
through the doors, looking for jobs, I said, ‘If you
want to work here, I’ll buy more trucks.’
“So I did.
“I can buy all the iron in the world, but if you
don’t have the people to run it, it just costs you
money.
“I still drive every day when we don’t have an
extra driver,” Scott said, characterizing himself as
chief mechanic and dispatcher for the seven-person
outfi t.”
Shawn went to Wyotech in Wyoming, where
he got a diploma that focused on automotive colli-
sion and refi nishing, street rod and chassis fabrica-
tion, high performance engines and custom paint-
ing.
As for Jason, he wanted to drive truck right out
of high school.
When they’re not behind the wheel, the Boyes
family can be found on the links, such as at the
Carnduff Oilmen’s Golf Tournament.
“We usually spend about six weeks in Mesa,
Arizona and golf every day,” Sherry said. “We’re
golf fanatics.”
Th e pace for the company this year has been
down compared to last year, when they had people
out every day and there was no time off . “We went
non-stop until March 22. I think we took Christ-
mas off ,” Scott said.
Th is summer has been slower, but he expects
things to pick up in September.
“We like what we’re doing. We know what
we’re doing and we’ve been doing it since 1976,”
Scott concluded.
From le , Scooter, and his sons Jake and Gump, pose around their tri-drive truck.
PIPELINE NEWS September 2012 B11
Scott (Scooter) Boyes: 306-482-8886 Scott (Scooter) Boyes: 306-482-8886 Jason (Jake) Boyes: 306-482-8883 • Shawn (Gump) Boyes: 306-482-8313Jason (Jake) Boyes: 306-482-8883 • Shawn (Gump) Boyes: 306-482-8313
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Weyburn – When you’ve got a good thing going,
you probably don’t want to mess with it. So when
it came time for Weyburn-based Panther Drilling
Corporation Ltd. to add a fourth rig to its fl eet,
they made a carbon copy of Rig 3.
Rig 3, completed in September 2010, was a
departure from their previous two rigs. Solidifying
the company’s approach to operating some of the
deepest-rated rigs in the southeast, the new rig is
built a bit beefi er.
“Rig 3 was a Range 3 double. In eff ect, it’s like
a triple-sized derrick, but we run Range 3 tubulars
which are 14 metres in length as opposed to 9.6
metres in a Range 2. We have two stands of pipe
when you rack your pipe in the derrick, as op-
posed to three,” said Jim Kopec, general manager of
Panther.
Th e result is a dramatic reduction in pipe
connections, reducing them by a third compared
to the same length of pipe using 9.6 metre joints.
If everything’s going well, and in normal drilling
conditions, it can result in a day to a day and a half
reduction in drilling time per hole.
“Th e clients like it. It saves them time in trip-
ping and surveying,” he said.
Rig 4 was nearing completion in August at
their yard along Highway 39, just a few kilometres
southeast of Weyburn.
Parts of the rig have been coming from “all
over,” according to Kopec. “We tried to do as much
locally as we could.”
Th e combination building, doghouse and
pumphouse were sourced from Stewart Steel of
Weyburn.
Th e only real diff erence between Rig 4 and its
predecessor is the use of a Caterpillar transmission
on its draw works.
“All our engines and clutches were from South-
ern Industrial,” he said. Southern Industrial and its
sister company, Rouse Industries, located on the
west side of Weyburn, specializes in power packages
for drilling rigs.
Page B12
Panther Drilling repeats a good thing
Driller Corby O’Byrne, in the black shirt, and roughneck Jason Shelly, in the red, use a telehandler to adjust the align-ment of a mudpump engine to its pump. When the engines are this big, you need something bigger than a ball peen hammer to give it a love tap. In this case, they had to use chains.
B12 PIPELINE NEWS September 2012
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Page B11“Th is is the fi rst time this transmission has been
used with this engine combination on a drilling rig
application,” Kopec said, referring to the Caterpillar
transmission on the draw works. It is attached to a
C27 Cat engine rated at 900 horsepower.
Th is confi guration had been considered for Rig
Rig 4 added to Panther’s eet3, but that didn’t come to pass.
Th e derrick, substructure and draw works came
from Nisku, with Hyduke providing the derrick
and sub. Revolution did the draw works, in a con-
fi guration similar to Rigs 2 and 3.
Th ere’s one 450 kilowatt gen set.
Th e mud tank and catwalk were built by Cenar-
ius Industries of Calgary.
Rig 4 will have two mud pumps, each rated at
1,000 horsepower.
“Th e second is basically insurance,” said Bernie
Bjorndalen, who handles sales for Panther.
“It’s a bonus to the client,” Kopec added.
A “jackknife triple”, the rig is rated for 4,500
metres of vertical, the same as the rest of the fl eet.
Th at greater capacity is useful for areas right along
the U.S. border, where Panther has been seeing
much of its action in recent years. Panther’s or-
ange rigs could often been seen south of Outram,
Torquay and Radcliff e. Kicking off the horizontal
leg of a well at around 2,000 to 2,200 metres, that
drilling hotspot is deeper than the areas around
Stoughton, for instance.
Tentatively the fi rst hole is planned for Wey-
burn-based Caprice Resources.
Recruiting hasn’t been an issue, since for the
fi rst time since Rig 3 went out two years ago, they
have a rig sitting. Th e company had seen nearly 100
per cent utilization from Sept 2010 until this past
July.
Southeast Saskatchewan’s drilling activity has
slowed considerably compared to the same time
in 2010, when things were still relatively dry, and
2011, when record drilling numbers were set even
after the fl ooding in the area. In early August 2012,
there were over 50 rigs sitting in Saskatchewan,
whereas at the same time last year, that number was
less than 20.
“Th e U.S. has a surplus. You hear stories of
pipeline capacity,” Kopec said.
“Some guys are tired of soft lease conditions,”
Bjorndalen added.
Despite a relatively dry July, Kopec noted, “It’s
wet underneath. You dig down and it’s wet.”
Bjorndalen said, “It only takes half an inch of
rain, and it’s soft again.”
Th e pair also noted there is some nervous-
ness in the world economy that may be having an
impact on drilling activity.
Panther Drilling is locally-owned and operated.
The engine packages were put together in Weyburn by Rouse Industries.
Panther Drilling is comple ng Rig 4, with the new unit expected to go to work in early September.
PIPELINE NEWS September 2012 B13
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Carnduff – Jason
Miller has hauled a bit
of everything in the
patch, but now, with a
couple of partners, he’s
working with his own
outfi t.
Miller is one of the
partners in Mil-Lar
Trucking Ltd. Th e other
partners are Al and
Shawn Larson.
Shawn’s wife Carla
does books for the op-
eration.
“Al has SLR Rent-
als, with about ninety
400 barrel test tanks,”
Miller said. “Th at’s
why we bought (the
truck) for moving them
around.
SLR has about
a half dozen treater
buildings and a lot of
production equipment,
he said.
Th e operation fi red
up in October 2011.
Th ey’ve got one
truck and two scissor
neck trailers. Th e newest
one, a 2012 Doepker,
comes with a fl ip-over
roll, making it more
universal for moving
equipment.
Miller, 39, is
originally from Ninette,
Man., 45 miles south-
east of Brandon.
“Once I got out of
high school, I worked
for the odd farmer and
worked at MTS bury-
ing fi bre optic cable,” he
said.
He moved to Car-
nduff in 1993, saying,
“When I fi rst moved
to Carnduff , I didn’t
know what the patch
was about. I wanted to
fi nd some consistency
in work. In Manitoba,
there was nothing.
“I started out with
Fast Trucking. I had my
Class 1 before I moved
down here. I worked
as a swamper for six
months, then started
driving.”
Miller was with
Fast until things slowed
down substantially
in the late 1990s. He
found work hauling
gravel at Creelman, then
returned to Carnduff
two years later.
Like many others in
his generation, he found
work in Alberta when
there wasn’t work here.
“I had gone to
Alberta and worked
for Calnash at Lac La
Biche. Th ey were doing
a lot of gas work. Th at
was the only oilpatch
working at the time. I
spent fi ve winters doing
that,” he said.
His summers were
spent at Fast Trucking
until 2003, when he
started working for a
rental outfi t that even-
tually became Peak En-
ergy Services. He spent
fi ve years there, the last
three-and-a-half as sales
representative and rental
co-ordinator.
Page B14
When work slowed down, he beat the bushes and found more
Jason Miller comes in at the end of the day a er hauling tanks for a ser-vice rig near Carndu .
B14 PIPELINE NEWS September 2012
Supplying propane & propane equipment to the southeast area
• Rental equipment for oilfi eld and construction• Gensets • Heaters & More
Phone: 1-306-842-1344 Toll Free: 1-855-345-9025 Fax: 1-306-842-1434Weyburn, SK
Originally from Manitoba, Jason Miller came to Sas-katchewan a er high school to nd work. Now he’s got his own trucking ou it, which he owns with two partners.
Page B13 In 2008 he was back in a truck,
driving for Carnduff -based B&B Oilfi eld Hauling
until this opportunity came up in 2011.
“I’ve always wanted to do it,” he said of going
on his own. “Last September, Shawn and Al ap-
proached me.”
Th e Larsons have a shop in Carnduff which is
helpful for storing the truck in winter.
Last winter things slowed down come January
1, Miller said, and a lot of tanks came back in. “I
have friends whose rig shut down the 15th of March
and still haven’t gone back to work yet,” he said.
As for this summer, things started off not too
badly, he said, but when Crescent Point Energy
Corp shut down all but one drilling rig, he said,
“Uh-oh.”
While there was work chasing two service rigs,
he started beating the bushes and found additional
work hauling equipment for a general oilfi eld
maintenance company and matting for local outfi t
Easyrider.
“It has been really good ever since,” Miller said.
Dealing withslowdowns
31/2 miles South of Estevan on Hwy 47(35 of 1 of 8, West of the 2nd)
PIPELINE NEWS September 2012 B15
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Regina – Only two
per cent of Canadians
believe climate change
is not occurring, a
new important survey
released Aug. 15 by
IPAC-CO2 Research
Inc. concluded.
Th e survey comes
on the heels of Alberta
Premier Alison Red-
ford’s recent push for a
national energy strate-
gy, which would address
the future of Canada’s
oil and gas industries,
and its approach to
carbon management.
“Our survey indi-
cates that Canadians
from coast to coast
overwhelmingly believe
climate change is real
and is occurring, at least
in part due to human
activity,” explained Dr.
Carmen Dybwad, CEO
of the environmen-
tal non-government
organization. “Th ese
fi ndings have been con-
sistent from 2011 and
2012. Canadians care
about issues like ex-
treme weather, drought
and climate change.”
Opinions about
the cause of climate
change and how to
combat it are, however,
sharply divided among
the provinces and by
region.
“Canadians most
commonly (54 per cent)
believe that climate
change is occurring
partially due to human
activity and partially
due to natural climate
variation,” said Briana
Brownell of Insightrix
Research, who con-
ducted the survey for
IPAC-CO2.
“Residents of
Quebec (44 per cent),
Atlantic Canada (34
per cent) and Brit-
ish Columbia (32 per
cent) are more likely to
believe climate change
is occurring due to hu-
man activity than those
on the Prairies (Alberta
and Saskatchewan 21
per cent, Manitoba 24
per cent).”
Canadians are also
divided on what they
believe should be the
priorities to fi ght cli-
mate change.
A total of 35 per
cent of Canadians be-
lieve the priority should
be to promote cleaner
cars running on elec-
tricity or low-carbon
fuels while only 13 per
cent favoured a tax on
carbon dioxide emis-
sions from the whole
economy. Support for a
carbon tax is lowest in
B.C. (6 per cent) and
highest in Quebec (24
per cent).
A key solution cited
by Canadians is carbon
capture and storage, or
CCS, which involves
capturing carbon diox-
ide from an industrial
source of greenhouse
gases, transporting it,
and storing it deep in
the Earth’s subsurface.
A majority of
Canadians agree that
capturing and storing
carbon dioxide should
be compulsory when
building a new coal (59
per cent) or natural gas
(57 per cent) power
plant, though Canadi-
ans are concerned about
the risks associated
with CCS.
Quebec residents
(71 per cent) would be
the most concerned
if carbon dioxide was
stored underground
within 1.5 kilometres
to three kilometres
from their home, while
Saskatchewan residents
(43 per cent) were the
least worried.
Residents of Brit-
ish Columbia (60 per
cent) are most likely to
believe that the stor-
age of carbon dioxide
represents a safety risk
in the future. Again,
Saskatchewan residents
(48 per cent) are sig-
nifi cantly less likely to
hold this belief.
“CCS is not the
“magic bullet” solu-
tion to combat cli-
mate change, but the
development of CCS
technology represents a
necessary step in reduc-
ing Canada’s emis-
sions,” said Dybwad.
For a second con-
secutive year, IPAC-
CO2 contracted In-
sightrix Research, Inc.
to conduct an online
survey of Canadian
residents. Survey re-
sponses were collected
from 1,550 Canadians
between May 29 and
June 11.
Th e percentage
of Canadians who are
unsure whether or
not they would ben-
efi t from CCS has
increased notably from
42 per cent in 2011 to
48 per cent in 2012.
Residents of
Ontario are more
likely to believe that
it would (33 per cent)
benefit them, while in
Quebec the reverse is
true, where 30 per cent
believe they would
not benefit from the
technology.
The proportion
of Canadians who
are unsure of the ef-
fectiveness of carbon
capture and storage
has increased notably
from one-quarter (24
per cent) in 2011 to
one-third (35 per cent)
in 2012.
Despite the
concerns many Cana-
dians have about the
technology, Dybwad
remained optimistic
about the future of
CCS and its impact on
Canada’s environment.
“Canadians are
concerned about the
risks and benefits
involved with CCS,
but IPAC-CO2 exists
to ensure that carbon
dioxide is stored safely
and permanently in
the ground by provid-
ing risk and perfor-
mance assessments of
carbon dioxide storage
projects.”
The 2012 survey
on Public Awareness
and Acceptance of
CSS in Canada now
is available on IPAC-
CO2’s website at:
www.ipac-co2.com/
research.
Canadians overwhelmingly believe climate change is occurring
B16 PIPELINE NEWS September 2012
When hiring Scott Land, YOU hire the Advantage...
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Shaun Kozak, Mineral Manager 306-790-4352Chad Morris, Surface Manager 306-790-4363Celeste Farrow, Surface Coordinator 306-790-4378Laurie Bielka, Assistant Branch Manager 306-790-4360Crown Sale Inquiries 403-261-6580Main Line: 306-359-9000
Scott Land & Lease Ltd.
By James Mahony(Daily Oil Bulletin)
– While posting record
revenue thanks to high
levels of pressure pump-
ing in Western Canada
and the United States, a
$9.8 million foreign ex-
change loss spoiled the
party for Calfrac Well
Services Ltd., creating
a net loss in the second
quarter.
Th e loss attribut-
able to shareholders was
$11.86 million or 27
cents per share, down
from earnings of $12.07
million or 28 cents per
share in last year's quar-
ter. But for the foreign
exchange loss, the net
loss in the period would
have been only about
$4.3 million or 10 cents
a share, the company
said.
Management said
fracturing and coiled
tubing activity in
Western Canada saw
“reasonably high” equip-
ment utilization during
spring breakup, which
was bolstered by several
projects in the Montney
and Horn River Basin.
Still, June's poor
weather dampened
activity and fi nancial
performance, preventing
crews from completing
scheduled work, much
of which was delayed
to the third quarter. To
maximize equipment
utilization, the company
has temporarily sent a
fracturing fl eet and deep
coiled tubing unit from
Canada to North Da-
kota, where demand has
been more resilient.
In the second
quarter, Calfrac was in
on many of Western
Canada's emerging
liquids-rich natural gas
and oil plays, such as the
Beaverhill Lake, Du-
vernay, Slave Point and
Montney. Initial data
from the plays is favour-
able and Calfrac expects
further development of
such plays to drive ex-
pansion of its Canadian
division.
Calfrac's U.S.
operations continued to
expand into oil-produc-
ing plays in the second
quarter, including North
Dakota's Bakken. In the
Marcellus shale play,
Calfrac's operations
increased from fi rst-
quarter levels, despite
customers trimming
capital spending due
to gas price weakness.
Th rough its presence in
the liquids-producing
region of the Marcel-
lus, the company was
able to realize relatively
high levels of equipment
utilization during the
second quarter.
Th e industry's shift
to unconventional oil
basins has driven high
demand and costs for
some proppants, guar
and other chemicals,
which continue to
squeeze service compa-
nies' operating margins.
Calfrac was able to
avoid a more signifi -
cant negative fi nancial
impact in the second
quarter by buying its
guar earlier in the year,
cutting its exposure to
the volatility in guar
pricing seen in the sec-
ond quarter.
In the year to date,
Calfrac booked record
revenue of $809.89
million against $606.86
million in last year's
period, led by higher
year-over-year activ-
ity in Canada, the U.S.
and Latin America.
Net income attribut-
able to shareholders
rose to $58.99 million
or $1.32 per share,
including a $4.1 million
foreign exchange gain,
compared to earnings
of $61.15 million or
$1.38 per share in the
2011 period, which
included a $10.5 million
foreign exchange gain.
Capital spending rose
to $159.40 million from
$137.80 million in the
fi rst six months of 2011.
In the three months
ended June 30, 2012,
revenue advanced to
$335.78 million from
$269.46 million in the
earlier period. Capital
spending rose to $75.29
million in the second
quarter from $72.05
million a year ago.
Calfrac sent some of its equipment to work in North Dakota during a slow period in Canada. This is the Calfrac base at Bienfait. Photo by Brian Zinchuk
Some of Calfrac’s eet jumped the border to stay busy
PIPELINE NEWS September 2012 B17
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Home Sweet! Home
Calgary – When
you see a new market
pop up, it’s time to get
into it while the get-
ting’s good.
Hall Technologies
Ltd of Calgary special-
izes in custody transfer
metering. Barry Hall,
who heads up the com-
pany, has a background
in instrumentation and
controls. Hall Technolo-
gies has been in business
for seven years.
Transloading crude
from trucks to rail cars
has really taken off in
the last two years, ac-
cording to Hall. “More
and more people are
doing it now.”
Th at’s true in West-
ern Canada and North
Dakota. He said, “We’re
seeing a lot of interest in
the Bakken fi eld and all
over.”
In Saskatoon they
have a system set up for
Kleysen Transport that
pumps biodiesel from
rail cars onto B-train
semis for transfer to
Suncor’s distribution
terminal. It’s the reverse
process of what’s done
in crude-by-rail trans-
loading.
Th ey’ve done a sim-
ilar blending transloader
for Central Manitoba
Rail in Winnipeg.
Th e company also
builds fi xed systems. In
Edmonton, they have
installed long headers
that connect with each
rail car.
Anyone driving past
Stoughton on Highway
33 can fi nd six examples
of Hall’s transloaders
working for Crescent
Point Energy Corp. Th e
oil producer established
its own, in-house crude-
by-rail facility earlier
this year, and has been
expanding its capabili-
ties since then by adding
additional transloaders.
“We’re doing some
for Enbridge in North
Dakota. Th ey wanted
pumps on those,” Hall
said.
Th eir transloaders
come in two varieties
– those with their own
pumps, and those which
use the pumps on the
trucks. Th e ones without
pumps don’t require
high-voltage power
supplies. Even a small
inverter in the back of a
truck will power them.
A transloader is
essentially a metering
package with an Enviro-
box for spill protection
where the truck hooks
up. Hall noted they have
a bulk air eliminator to
prevent air from being
metered. A meter deter-
mines density and mass
fl ow of the product.
Th e systems are
designed to moni-
tor for rail car overfi ll.
Th ey also have electrical
grounding to prevent
sparks due to static dif-
ferentials.
Th ey typically have
a stair case and platform
to access the hatch at
the top of the rail car.
One design has an ar-
ticulating platform that
can be lowered with a
screw-jack so that it is
low enough to get under
powerlines while travel-
ling on the road.
Most of their
systems load from the
top of the rail car, which
Hall said is preferred as
it is easier to work with.
“Th ey’re very
user-friendly. Train-
ing doesn’t take long,”
he said. Th e control
systems are common to
those used by truckers
throughout the industry.
Th e company has
had a lot of interest in
their transloaders, with
order sizes coming in
two, three or even fi ve
units at a time.
Hall noted it’s easier
and quicker to set up
a transloading facility
than other options such
as building a permanent
site.
“As long as the
pipelines are having is-
sues, rail will be popu-
lar,” he said.
A new market in building transloading units
These transloading units at Stoughton were built by Hall Technologies.
Photo by Brian Zinchuk
PIPELINE NEWS September 2012 B19B18 PIPELINE NEWS September 2012
FAX: 306-453-4476BOX 40, CARLYLE, SASK. S0C 0R0
www.evergreenenviro.ca
306-453-4475
* Environmental Protection Plans * Impact Assessments * Pre-Site Assessments * Environmental Audits & Assessments
* Well Site & Battery Abandonments * Drilling Waste Management * Pre/Post Water Well Testing * EM Surveying * GPS Mapping
* Formerly “Three Star Environmental”
24/7 Service
Offi ce: 306 482 3925
Brett:306 482 7590
By Brian Zinchuk
Carlyle – Th e strength of the Carlyle business community has shown itself
again this year with the establishment of a new hydraulic fracturing company –
Element Technical Services. Approximately 70 per cent of the investors are from
southeast Saskatchewan, with a strong background in growing local companies.
An independent operation, Element joins a marketplace that is dominated
by some of the largest players in the industry – Baker Hughes, Schlumberger,
Halliburton, Trican and the like. But by taking a targeted approach at their
specifi c area, the Williston Basin area of southeast Saskatchewan and southwest
Manitoba, the company is seeking to carve out its own share of the market.
Th e company launched operations in March.
“It’s really been ignored by frac companies for a long time,” Mike Grossman,
Element’s technical sales manager, said of southeast Saskatchewan and south-
west Manitoba. “Other companies weren’t sending their top level equipment or
guys.
“We’ve gathered signifi cant crew experience to bring to the table.” Gross-
man said. Th e location also puts Element a step closer to the Sinclair and
Waskada fi elds in Manitoba, the two areas that have seen the most growth in
that province.
Grossman is from Carlyle, and handles sales both in Calgary and southeast
Saskatchewan.
Element’s new shop and offi ce is located right next door to Canadian
Energy Service’s campus south of Carlyle which includes PureChem, Moose
Mountain Mud and Equal Transport. “We’re right beside one of our key suppli-
ers with lab support and blending facilities to complement our Calgary labora-
tory,” Grossman said.
Whereas of other companies need to have supplies trucked in, they are
literally a forklift load away. It also means they can keep product storage to a
minimum.
Th e new 15,000 square-foot shop has fi ve bays plus a wash bay. With 29
acres, they have lots of room for more equipment.
Frac methods a mixed bag Completion techniques have been rapidly changing in the southeast
throughout the Bakken development.
“We’ve been thrown a mixed bag. We’ve seen every completion style in the
southeast,” Grossman said.
Th ose include the ball drop system, open hole infl ate packers, and a new
trend – sliding sleeves. “Th ose are the three that win the day,” Grossman said.
“Th e vast majority in our area are sliding sleeves.
“We need to be well-versed in how these systems work. At the end of the
day, we’re pumping the same fl uids and rates, it’s largely how fast we execute the
jobs.
Second spread comingElement started off with one frac spread – a complete setup for one frac job.
Grossman said that to run one frac spread, you need three crews – one day, one
night, and one on days off . Typically there are eight to 10 workers on a crew.
“We’ll be coming out with another frac spread in November 2012,” Gross-
man said. Th erefore the company will be hiring approximately 30-40 people in
the future.
Th eir current frac spread is made up of two 2,500 horsepower trailer
mounted pumps, a body-job truck-mounted blender, chemical addition trailer,
hydration unit, truck-mounted data acquisition van, and iron truck. When it
comes to sand storage and cartage, there are also two 45-tonne trailers, one 100
tonne trailer storage, and ten 40 tonne sand bins.
Th e second spread will be slightly larger with the addition of a third pump-
er. “We have three more (pumpers) we’re about to take delivery on,” Grossman
said.
Coil tubing plannedTo round out the fl eet, Element is adding its own coil tubing unit, expected
in January.
“We’re looking at 4,400 metres of 2-7/8 inch coil,” Grossman said. “It’s a
deep unit. It’ll cover most of the deep work in the area.”
Having an in-house coil tubing unit will makes it easier logistically, he said,
explaining, “You’ve got a unit dedicated to your best interests.”
Even so, they have strong relationships with the coil providers they are
working with now.
New equipment Element has brand new equipment suited to the area. Th at’s important,
because as opposed to fracturing operations in northeastern British Columbia
or western North Dakota, the fracs in this area tend to be smaller in nature.
“In North Dakota, you’d be pumping fi ve to six cubes (cubic metres) per
minute. In our area, we’re really close to the Lodgepole (formation), so you have
to keep it under one cube per minute. Otherwise you risk fracking into the
Lodgepole which comes with a lot of water. In Williston, they don’t have that
overlying Lodgpole so close. Th ey can pump faster and create larger fracs.”
Th is is where fi tting their equipment to match local conditions has been a
key strategy. Grossman said a lot of the competitors’ equipment from Medicine
Hat’s shallow gas areas was moved into Saskatchewan, but it was suited for
pumping at higher rates.
“We have a lot smaller pumps,” he said. “Everything is sized for the lower
pump rates of our region.”
“I would almost call it pinpoint fracking. Th e industry has gone to smaller
tonnages and more zones.”
Element Technical Services established in CarlyleElement Technical Services established in CarlyleThe data van, right, is the control centre of a frac job.
Frac supervisor Patrick Spagrud keeps an eye on the numerous computer monitors as the frac progresses.
This is the view from the blender, looking at two pumpers on the le , and the coil tubing unit on the right.
Tyrell Olson keeps an eye on things from the blending unit. The heavy-duty earmu s are necessary on the loud site.
B20 PIPELINE NEWS September 2012
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ESTEVANESTEVAN
By Pat Roche
(Daily Oil Bulletin) Calgary – Th e best way to craft a Canadian energy
strategy is in discrete pieces that don't necessarily involve all governments, says
an industry group that spent two-and-a-half years drafting such a plan.
Th e Energy Policy Institute of Canada (EPIC) released its 151-page
Canadian Energy Strategy Framework at a news conference in Calgary on Aug.
2. Th e report makes recommendations in fi ve areas: regulatory reform; market
diversifi cation; energy “literacy” and conservation; innovation; and carbon man-
agement.
“It's not the end-all. It is a beginning. But we think it's a very constructive
beginning to move us forward to where we net to get,” EPIC president Doug
Black told a news conference.
EPIC is a policy advocacy group for key energy producers, transporters and
consumers as well as entities fi nancing energy projects. Members include the
Canadian Association of Petroleum Producers (CAPP), and companies such
as Canadian Natural Resources Limited, Imperial Oil Limited, Suncor Energy
Inc., TransCanada Corporation and Enbridge Inc.
Separating the drafting of a Canadian energy strategy into manageable
goals would prevent any one province from derailing the entire process.
Energy strategy possible without national consensus, says A recent attempt by Alberta Premier Alison Redford to convince other
Canadian premiers to work towards a Canadian energy strategy was derailed
by British Columbia Premier Christy Clark.
Facing a general election in May and badly trailing the provincial New
Democrats in the polls, B.C.'s Liberal premier recently declared she wants no
part of Redford's plan – or Enbridge's proposed Northern Gateway pipeline
to ship Alberta oil the West Coast – unless B.C. gets a cut of Alberta's energy
revenue.
Asked how a Canadian energy strategy could be built without B.C., Black
said, “We are continuing [our] work, the other premiers are continuing to work.
And we're saying to British Columbia, ‘When you're ready to join our delibera-
tions, we welcome you.’”
Black believes B.C.'s opposition to Northern Gateway is a temporary
problem, and until it's overcome, oil can be shipped by other means, such as
rail.
“But our work cannot stop ... we have to continue to look at diversifi cation.
I think it's fair to say at EPIC we’re optimistic and we believe this problem will
be resolved,” he said.
EPIC believes a Canadian energy strategy can be crafted without a na-
tional consensus or an omnibus framework.
“Some people, I think, felt that at the end of the day we were going to
prepare an overall document encompassing absolutely every element of energy
in the country. Th at's not the case,” said Gerry Protti, vice-chair of EPIC.
“What we did was identify fi ve areas (but not) the magnum opus of
Canadian energy strategy,” Protti continued. “But if we could work on each of
these fi ve areas and make improvements, we're going to move some distance
(towards) realizing our energy goals as a country.”
He added, “Each province has its objectives in terms of its energy strategies
and energy potential and capability. I think what this document tries to do is
bring that national pan-Canadian framework, saying this is important for every
part of the country.”
Protti noted Ottawa, Alberta, British Columbia and Nova Scotia have
already moved individually on regulatory reform.
EPIC's report groups its recommendations into these fi ve areas where it
believes change is possible and necessary.
Regulatory reform“While Canada has a strong environmental regulatory system that has
protected Canadians for years, it has become a maze of duplication and inef-
fi ciencies that has led to a drawn-out approval process unappealing to energy
investors,” said Protti.
Page B21
PIPELINE NEWS September 2012 B21
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Page B20“From the beginning of our discussions, our recommended course of action
was evident: Bring more certainty to the regulatory process by establishing fair
rules and timelines, better defi nition of the scope of environmental assessments,
what government bodies should act as the regulatory lead and fi rm deadlines
for stages of the process,” he said.
EPIC commended the federal government for already acting on some of
these recommendations through legislative changes that streamline the regula-
tory process.
InnovationIn EPIC's view, becoming a global energy leader isn't just about increas-
ing production – Canada must continually invent technologies to improve the
economic and environmental performance of its energy sector.
To spur technology development, the group recommends creating “in-
novation clusters” – collaborations of a wide range of industry players, includ-
ing producers, academics, suppliers, service providers and “non-governmental
organizations.”
Energy "literacy" and conservation EPIC is urging the federal and provincial governments to develop a shared
vision on “energy literacy” and conservation, and to actively promote this vision
to businesses and individuals.
“To assist in promoting energy understanding among our citizens, EPIC
has also recommended the development of a Canadian centre for energy learn-
ing that will serve as an energy educator for all Canadians,” Protti said.
Market diversifi cation“Globally, the world has never known a time of such energy demand. In
fact, this was part of the rationale for creating EPIC and an energy strategy to
help take advantage of this opportunity,” said Protti.
EPIC recommends taking all necessary steps to capitalize on growing
overseas energy markets – including worldwide promotion of Canada's energy
resources, and upgrading and expanding infrastructure and transportation
networks.
“To help diversify (Canada's energy) markets, ... our recommendations
rely heavily on the involvement of Canadian governments to promote our
energy through trade missions, and to put trade agreements in place with other
nations to ensure the rules of the game are clear and to solidify our market ac-
cess,” Protti said.
Carbon managementOn the question of how to deal with carbon emissions, EPIC recommends
more time and study.
“Our working group studied the diff erent approaches of the provinces and
the federal government and how they're evolving with time. As well, we looked
at developments in the United States and globally,” said Protti. “And what we
need to do at this point is to synthesize the very diff erent myriad approaches
that are occurring in Canada and around the world."
To that end, he said EPIC recommends creating a joint federal-provincial
committee of energy and environment ministers “to continue to study the issue,
begin to synthesize these developments and develop a carbon management
framework for review in 2013.”
industry group urging regulatory reform, market diversity
B22 PIPELINE NEWS September 2012
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Calgary – Th e Northwest Territories will be-
come the next oil frontier in Western Canada for
Husky Energy Inc., which has planned a winter
exploration program this upcoming season.
Husky’s plans for its Slater River Project in
N.W.T. include the construction of an all-season
road along with further evaluation of the two verti-
cal wells drilled in the fi rst quarter of 2012.
“We will have a better sense of this resource af-
ter we do our winter exploration plan this upcom-
ing season,” said CEO Asim Ghosh in response to
an investor question during the company’s second
quarter conference call on July 25.
Page B23
Husky CEO Asim Ghosh, pictured talking on his cellphone at the grand opening of Husky Place in Lloydminster in May, said the company will conduct a winter explora on pro-gram this upcoming season at its Slater River Project in the Northwest Territories.
File photo
Husky to pan NWT
PIPELINE NEWS September 2012 B23
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Page B22Th e planning is subject to a lot of approvals. Th ose plans include evaluating
an over 200-kilometre 3D seismic in the area.
“So, it’s a sequential process, and the results are being assessed, but there’s
much work still to do and in parallel we are continuing consultations with
community and offi cials,” added Ghosh.
At its property in the Saleski carbonates, south of Fort McMurray, Husky
continued to evaluate the vertical stratiographic test wells drilled in 2011 in the
quarter.
In response to an investor question about the game plan and size of the
resource, Ghosh said Saleski is at a very early stage, however.
“We gave you guidance last time about the resource evaluation that we did,
which was massive,” said Ghosh.
“And we are advancing the early work of the pilot plan and the initial envi-
ronmental monitoring, which will support a regulatory application for our pilot
plan development.
“But that’s about all it is. We don't see this as a project that will make a
diff erence to Husky in the fi rst fi ve-year timeframe. It’s something that we will
look at for the future.”
Husky also continues to evaluate and advance its large pipeline of projects
in Western Canada as it expands its focus to unconventional resource plays.
Th e company targeted its second quarter activity at the Viking, Lower
Shaunavon and Oungre projects in southern Saskatchewan and the Redwater
and Alliance Viking plays in Alberta.
A total of eight (gross) horizontal wells were drilled in the second quarter,
resulting in a total of 34 (gross) horizontal wells and two vertical wells drilled
in the fi rst half of 2012.
In the northern Cardium resource play at Wapiti in west-central Alberta,
two of three horizontal wells drilled in the fi rst quarter were brought on pro-
duction, with results as expected.
“At the Rainbow Muskwa play in Northwest
Alberta, we drilled and cased two additional hori-
zontal wells and brought one on to production,”
said chief operating offi cer Rob Peabody.
“We're looking to complete four wells over the
summer that were drilled earlier this year on the
play, along with one carryover well from last year.”
Husky continues to focus on liquids-rich gas
opportunities in Western Canada.
Drilling and completion activity at Ansell in
West Central Alberta was limited over the quarter
due to spring breakup.
A total of three wells were drilled, including
one multi-zone vertical well, one vertical Cardium
well and one Woolrich horizontal well.
“Th e horizontal well was drilled to the inter-
mediate casing point before the rig was laid down
for spring breakup,” said Peabody.
“We’ve now drilled a total of 12 wells in the
fi rst half of 2012 and completed 31 wells at Ansell.”
Four horizontal wells were drilled at Kaybob
to evaluate the liquids-rich Duvernay gas play, with
one completed and placed on production in the
second quarter.
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B24 PIPELINE NEWS September 2012
Melville, 6-29-22-06-W2 • Willmar, 11-36-5-4-W2
Calgary – Fairborne Energy Ltd. reported a loss in the second quarter, pro-
duction remained fl at with the previous year, and the company says it will focus
on its highest netback properties for the remainder of the year.
Th e company reported a net loss of $44.72 million in the second quarter
compared to a profi t of roughly $652,000 during the same period last year. Oil
and gas production was roughly fl at with last year, averaging 13,956 boepd in
the second quarter, compared to 13,915 during the same three-month period
of 2011.
Fairborne maintained its production level despite property dispositions,
production interruptions and the continued shut-in of production due to low
natural gas prices.
Transactions completed in the second quarter generated $91 million in
gross proceeds on the disposition of approximately 800 bpd of oil production,
representing the majority of the company’s properties in Saskatchewan and
Manitoba.
Production averaging 1,000 boepd from the company’s Wild River prop-
erty remained shut-in throughout the second quarter in response to continued
low natural gas prices.
Current production is approximately 13,000
boepd, with an additional 1,000 boepd that re-
mains shut in due to low natural gas prices. Capi-
tal spending in the second quarter was limited to
about $4 million, which included drilling one (0.7
net) natural gas well on the company’s Marlboro
property.
Second quarter 2012 production was impacted
by several factors including property dispositions,
production interruptions and economic decisions to
shut-in certain natural gas properties. Th e company
disposed of the majority of its producing properties
in Saskatchewan and Manitoba (approximately 800
bpd of crude oil) through two separate transactions,
both of which closed during the second quarter.
Fairborne’s production was also impacted by several
third party turnarounds including the Keyera Nevis
gas plant and the Semcams K3 gas plant.
Page B25
Fairborne disposes of most of its Sask. and Manitoba production
PIPELINE NEWS September 2012 B25
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Centrifuges
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Drilling Fluids
Page B24
With no measur-
able recovery in natural
gas prices, approxi-
mately 1,000 boepd of
production from Wild
River was shut-in at the
end of the fi rst quarter
and will remain shut-in
until commodity prices
improve.
Fairborne’s ability
to generate cash fl ow to
support a second half
capital expenditure pro-
gram is a result of the
company’s focus on its
highest netback prop-
erties, including the
liquids-rich Cardium
play at Harlech in the
Deep Basin of west-
central Alberta.
Th e company has
drilled two Cardium
horizontal wells to
date with the second well, which refi ned and advanced both the drilling and
completion techniques, continuing to deliver strong performance with an initial
production rate of 1,000 boepd and current production of 420 boepd, which
includes a consistent liquids yield of 50 bbls per mmcf, of which 35 bbls per
mmcf is high-value condensate. Th e high liquids yield present in the Cardium
wells generates a strong netback of approximately $25 per boe, even in the cur-
rent low gas environment.
With a current land position of approximately 65,000 net acres and the
previously released resource study at March 31, 2012, supporting 131 million
boe of economic contingent resource (best estimate), attributable to the com-
pany’s working interest share, the company has an extensive inventory (330
gross locations, best estimate) of exploration and development opportunities on
this high-netback property.
Fairborne’s focus for the remainder of 2012 will continue to be on areas
that generate the highest returns in the current environment. Maintaining a
cash fl ow based capital expenditure program of $20 million for the balance of
2012, Fairborne will concentrate spending on its highest netback properties,
including liquids-rich Cardium production at Harlech and high netback/low
operating cost development opportunities at Marlboro.
Fairborne Drilling was the rst client for Eagle Drilling Services Rig 6 in the sum-mer of 2009. Fairborne has since sold much of its Saskatchewan and Manitoba produc on, and Eagle is now part of CanElson Drilling. File photo
B26 PIPELINE NEWS September 2012
Rentals Ltd.
Calgary – PetroBakken Energy Ltd. boosted
production in the second quarter but recorded a
net loss during the period of $21.51 million, which
includes a $61-million non-cash impairment on its
natural gas assets in northeast British Columbia.
Second quarter production averaged 38,715
bbls of oil equivalent per (83 per cent light oil and
liquids), a 10 per cent increase over the second quar-
ter of 2011 though lower than fi rst quarter of 2012
due to reduced fi eld activity on account of seasonal
weather and the divestment of non-core properties.
Capital expenditures before dispositions totalled
$109.76 million in the second quarter, resulting in
nine net wells drilled in the quarter and 56 net wells
drilled in the fi rst half of 2012, with approximately
75 per cent of PetroBakken’s wells to be drilled in the
second half of the year.
In southeast Saskatchewan, the Bakken busi-
ness unit averaged 14,819 boepd of production
during the second quarter. A signifi cant portion of
the decrease from the fi rst quarter was the result
of the 2,900 boepd non-core Bakken disposition,
which occurred near the end of the fi rst quarter. In
addition, spring breakup resulted in moderated fi eld
activity and shut-in production due to limited access
to wells. Activity levels resumed towards the end of
the quarter, with six net wells drilled and four net
wells brought on production. As of mid-August,
PetroBakken had seven drilling rigs operating in
this business unit and has drilled 12 net wells since
quarter-end, with 11 net wells waiting to be com-
pleted or brought on production.
Th e company continues to develop its assets
in the Cardium, with production averaging 15,912
boepd in the second quarter, representing a 71 per
cent increase over the second quarter of 2011. Pro-
duction decreased slightly from the fi rst quarter of
2012 due to downtime related to spring breakup and
facility turnarounds. PetroBakken brought 11 wells
on production during the second quarter and, since
then, has drilled another 10 net wells and brought
two net wells on production, leaving a current in-
ventory of 13 net wells waiting to be completed or
brought on production. Th e company currently has
seven drilling rigs operating in the Cardium.
Th e remainder of PetroBakken’s production
came from the southeast Saskatchewan conventional
and Alberta/B.C. business units.
Th e southeast Saskatchewan conventional busi-
ness unit continued to provide a low decline, light
oil-rich production base. Production averaged 5,134
boepd in the second quarter, and the company drilled
one net well in the area with one additional well
waiting to be brought on production. One drilling
rig is currently operating in this area and new wells
drilled, combined with further additions to infra-
structure, are expected to grow production through
the balance of the year.
In the Alberta/B.C. business unit, the company
has 2,850 boepd of production and has assembled
over 190 net sections of land that are prospective for
new oil resource plays in one or more of the Nor-
degg, Montney, Duvernay and Swan Hills zones.
Activity was minimal during the second quarter but
there are plans to drill four wells in the second half of
the year to further evaluate these opportunities.
In northeast B.C., the company’s approach
in recent years has been to maintain its lands that
are prospective for natural gas. However, given the
inventory of oil-weighted prospects that compete
for capital and the current price outlook for natural
gas in North America, the company has elected not
to allocate capital to this area and consequently will
let 45 net sections of lands that were prospective for
natural gas in the Horn River area of northeast B.C.
expire and revert to the Crown, resulting in a $61
million non-cash impairment charge.
In terms of an overall outlook, the company
currently has 27 net wells waiting to be completed or
brought on production and 14 drilling rigs operating
within the core Bakken and Cardium areas. With
approximately 75 per cent of PetroBakken’s wells yet
to be drilled in its $875-million capital program for
2012, production growth will gain momentum in the
second half of the year as the company brings new
and existing wells on production. Th e company is still
expecting 2012 exit production rates of 52,000 to
56,000 boepd.
Th e monthly dividend of eight cents per share
has remained constant since the company’s inception,
resulting in total dividends of $45 million for the
second quarter.
PetroBakken see SE Sask production drop due to disposition
PIPELINE NEWS September 2012 B27
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Calgary – Th e Petroleum Services Association of Canada expects 650 fewer
wells will be drilled this year than it forecasted in April due to low natural gas
prices, the European debt crisis and declining demand from Asia.
PSAC, which represents about 260 oilfi eld service and supply companies,
predicts 12,500 wells will be drilled this year compared to its previous predic-
tion of 13,150 wells.
Th e new three per cent decline in forecast drilling activity is reported in
the third-quarter update of PSAC’s 2012 Canadian Drilling Activity Forecast released on July 30.
Th e updated 2012 drilling forecast is based on average natural gas prices of
$2.50 a gigajoule at AECO and West Texas Intermediate oil prices of US$90 a
barrel.
“Commodity prices on the natural gas side of things have had a big impact
on activity levels so far this year,” said PSAC president Mark Salkeld.
“As well, activity has been impacted by key shifts in the global economy,
including the European debt crisis and the decline in demand coming from
Asia.”
“We are cautiously optimistic about activity levels staying at or around the
2011 well count, with activity more weighted towards liquids-rich gas and oil,”
he said.
“PSAC member companies continue to be busy and the demand for their
services in Western Canada seems to have steadied following a late breakup
and some persistent wet weather.
“Our forecast update includes positive numbers with regards to effi ciency
in the patch,” he added.
“Th e average [metres] per well is up over 2,000 metres, but we are forecast-
ing that the average operating days per well will decrease by seven per cent this
year.”
PSAC expects the greatest increase in well count to take place in Manitoba
with 663 wells, an increase of 14 per cent over 2011 numbers.
PSAC is forecasting that Alberta will see a decline in the number of wells
drilled in 2012 by four per cent to 7,795 wells and British Columbia will see a
decrease in the number of wells drilled by 22 per cent to 485 wells.
PSAC believes Saskatchewan’s well count for 2012 will be relatively un-
changed from the previous year.
PSAC lowers forecast
PSAC believes Saskatchewan’s well count for 2012 will be rela vely unchanged from the previous year. However, with roughly 30 fewer drilling rigs working in Saskatchewan this summer compared to last summer, there’s going to have to be a lot of catch up to meet those numbers.
B28 PIPELINE NEWS September 2012
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Calgary – South-
ern Pacifi c Resources
Corp. is circulating
steam through all 12 of
its steam assisted grav-
ity drainage well pairs at
its STP-McKay thermal
project with bitumen
production expected be-
fore the end of 2012.
Th e STP-McKay
Phase 1 SAGD project,
located north of Fort
McMurray, began July
1 with the circulation of
steam to the fi rst pad of
six well pairs followed
by the second pad of six
well pairs on July 15.
Southern Pacifi c
said it took only three
days for steam to reach
the ends of the wellbores
in the fi rst pad, with sub-
sequent consistent circu-
lation, temperature and
pressure performance
within the well pairs as
expected.
Th e Athabasca oil-
sands project is the
only new SAGD proj-
ect coming on stream
in Alberta in 2012 and
was completed at $468
million, just $18 million
over budget.
Southern Pacifi c an-
nounced plans to expand
Phase 1 to 18,000 barrels
a day of bitumen in May
to reduce future capital
costs and boost produc-
tion.
Byron Lutes, presi-
dent and CEO of the
Calgary-based company
told BNN on July 24 that
the four cent cost over-
run of Phase 1 was rea-
sonable given the scope
of oilsands projects.
“We were hoping to
be slightly under budget
– we were fortunate –
we were one of the only
projects that was in con-
struction most of 2011,”
said Lutes.
“A lot of our costs
were done over a period
of time when they wasn’t
a lot of industry activity,
Only in the last months
we really noticed an in-
crease in activity levels
and some stress on our
costs, so that’s how we
wound up slightly over
budget.”
Lutes said construc-
tion of the Phase 1 ex-
pansion won’t begin
until 2014 when activ-
ity and labour and ma-
terials costs could be
higher.
“We have noticed
industry activity picking
up, and that is defi nitely
a concern that we have
to manage as we move
forward,” added Lutes.
Th e Canadian As-
sociation of Petroleum
Producers estimates oil
companies will spend
around $20 billion in
2012 in the oilsands
with SAGD costing less
than bitumen mining.
“Th ere’s lots of ac-
tivity. We’re a relatively
small component of
that, but there is a lot of
activity and companies
in Alberta are not slow-
ing down. Oilsands proj-
ects – you can’t just stop
and start them,” Lutes
told BNN.
Page B29
Southern Paci c steams McKay SAGD
Southern Paci c started up its STP-McKay SAGD project north of Fort McMurray in July with rst produc on expected before the end of 2012. The company conducted core evalua ons of the site in February 2011 prior to construc on of Phase 1. File photo
PIPELINE NEWS September 2012 B29
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Southern Paci c also has thermal opera ons at Senlac Saskatchewan. Pictured are processing and steam buildings at Senlac. The company started its Phase 1 STP-McKay SAGD project with the rst steam circula on on July 1. File photo
Page B28“It’s back to the fundamental belief that there is an overall supply shortfall
in the world for our products and we have a very large neighbour to the south
who consumes a lot of our oil products.
“As long as that keeps going, I think there is going to be lots of activity in
Alberta in terms of oilsands development.”
Lutes said Southern Pacifi c avoided the high cost of camp labour and
transportation at McKay by fabricating equipment for the central processing
facility in Calgary and trucking the components to the construction site.
“Th ey are basically put together like a very large Lego kit,” explained Lutes.
“You can save a lot of your steel costs. Your steel costs are by far your most
expensive in terms of labour – you’re probably paying 60 per cent more for
somebody to work in the fi eld, having to pay for their camp costs and their
access in and out of the campsite, so that’s where the savings can be fundamen-
tally diff erent from a mining project.
“We watch costs very carefully. If you go back to the big boom that hap-
pened in 2007-08, I don’t think we are going to experience that type of cost
increase again.
“Number one, a lot of us, as producers, learned a lesson from that. Th e large
majors are spacing themselves out. Th ey are working together to manage the
labour force.
“Secondly, there’s not as many mines being put on stream today as there
was a few years ago. I just think the overall demand for labour is going to be a
little bit less.”
All components of the McKay facility have been commissioned and are in
use. Th e central processing facility is generating all of its own power from two
to three cogenerators.
In addition to steam being circulated, the return fl uids from the wellbores
are being separated. Produced water is treated onsite and recycled for steam
generation.
Southern Pacifi c plans to proceed with its 6,000 bpd Phase 1 expansion
before it constructs its Phase 2 expansion to boost overall production to 36,000
barrels a day of bitumen at McKay.
Th e company fi led its application for the 18,000 bpd Phase 2 expansion in
November 2011.
Approval for the Phase 1 expansion will be incorporated into the Phase 2
approval process. Regulatory approval for the projects is expected in the fourth
quarter of 2013.
Phase 2 will be a separate facility located approximately fi ve kilometres east
of Phase 1 and will include a central processing facility, well pads and associ-
ated well pairs.
Th e Phase 2 project will also require the construction of a distribution and
gathering system and access roads.
B30 PIPELINE NEWS September 2012
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Edmonton – Th ey came, they saw and they ap-
plauded the early improvements for a three-year oil
sands monitoring program between the federal and
Alberta governments.
Th e joint program will set up a series of envi-
ronmental monitoring sites for air, water, land and
biodiversity in the oilsands region of Alberta.
Canada’s Environment Minister Peter Kent,
and Alberta’s Environment and Sustainable Re-
source Development Minister Diana McQueen
toured several of the new oilsands monitoring sta-
tions in July.
Both ministers were pleased with the progress
they saw, noting that the monitoring enhancements
for the fi rst year of the joint plan are well underway,
that the joint approach is working well, and that
initial results from the new enhanced monitoring
are expected this year.
“Th e Alberta oilsands are a key driver of the
Canadian economy. Th ey are currently responsible
for over 400,000 jobs,” said Minister Kent.
“In February, Minister McQueen and I
launched one of the most transparent and account-
able oilsands monitoring systems in the world.
“Today, it is clear to see that this system is on
track for full implementation in 2015. We challenge
others in the international oil producing commu-
nity to match Canada's commitment to environ-
mental monitoring.”
By the time the three-year plan is fully-im-
plemented in 2015, the number of water sites will
increase from 21 to 40 and the number of air sites
will increase from 21 to 30.
Th e number biodiversity/wildlife contaminant
sampling sites will increase to 25 from three to 25
and biodiversity monitoring will increase to more
than 70 locations from 35.
“Th e enhanced monitoring program for the oil
sands region provides assurance to Albertans, Ca-
nadians, and the world that this critical resource is
being managed properly,” said Minister McQueen.
“I’m confi dent that these enhancements are set-
ting the stage for a truly state-of-the-art environ-
Ministers tour oilsands monitorsmental program for the oilsands region.”
Implementation will continue to be phased
in over three years to ensure installation of neces-
sary infrastructure, incremental enhancement of
activities and appropriate integration with existing
monitoring activities in the region.
B32 PIPELINE NEWS September 2012
Members of the Canadian Association of Oilwell Drilling Contractors
booked 51,565 operating days in the fi rst six months of 2012, Rig Locator
records show, down from 54,565 days booked in comparable period last year.
But total metres rose to 10.02 million in the January-to-June period from
9.38 million metres to the end of June 2011.
Th e average length/depth per well for CAODC members continued to
be greater than 2,000 metres. In the fi rst quarter of this year, it rose to 2,011
metres per well, and in the second half lifted slightly to 2,013 metres per well.
It took CAODC members an average of 10.40 days to drill a well over the
fi rst six months of 2012 compared to 10.20 in the January-to-June interval last
year.
Including oilsands evaluation holes and experimental wells, the top con-
tractor of the half was Precision Drilling. Th e contractor drilled 1,650 wells and
fi nished 2.51 million metres of hole. Second-place fi nisher Ensign Drilling Inc.
rig released 1,302 wells and drilled 1.73 million metres.
Precision’s main customer during the half was Canadian Natural Resources
Limited, which accounted for 540 of its wells (32.7 per cent). Husky Energy
Inc. (126 wells, or 7.6 per cent) and Encana Corporation (115 wells, or seven
per cent) were the following top customers for Precision.
Canadian Natural was also the main customer of Ensign Drilling (216
wells, or 16.6 per cent), followed by Cenovus Energy Inc. (147 wells, or 11.3
per cent) and Suncor Energy Inc. (139 wells, or 10.7 per cent).
Savanna Energy Services Corp. was the only other contractor to drill more
than one million metres during the half. Th e company drilled 787 wells and
fi nished 1.23 million metres of hole.
Panther Drilling tops out rig utilization numbersRanked by wells drilled, Trinidad Drilling Ltd. rig released 434 wells
during the fi rst six months of the year, compared to 347 for Nabors Drill-
ing, although Nabors drilled more metres (888,818) than Trinidad (843,604
metres).
Excluding test wells, Precision’s share of the market declined to 26.88 per
cent in the fi rst half of 2012 from 27.91 per cent in 2011. Ensign’s market
share rose to 17.86 per cent from 16.92 per cent.
Precision was the top contractor for horizontal wells during the half with
702 wells rig released and 1.83 million metres of hole (excluding test or ex-
perimental wells). Ensign was second with 502 horizontal wells (1.22 million
metres), followed by Trinidad with 303 horizontal wells (749,408 metres),
AKITA Drilling Ltd. with 212 wells (461,267 metres) and Savanna with 202
wells (643,724 metres).
Rig utilization during the second quarter for CAODC members stood at
35.78 per cent, up from 21.73 per cent in last year’s second quarter.
As usual, smaller contractors dominated rig utilization and most metres
drilled per rig categories.
Panther Drilling Corp.’s three rigs had a 59.16 per cent utilization rate.
AKITA’s 38 rigs booked a 55.1 per cent utilization rate, while Fox Drilling
Inc.’s two rigs had a 53.3 per cent utilization rate.
Ironhand Drilling Inc. ranked fi rst in metres drilled per rig (29,727
metres), followed by Betts Drilling Ltd. (21,883 metres) and Lasso Drilling
Corporation (19,894 metres).
Savanna’s rig 412 drilled drilled 64 wells to the end of June, the highest
count for a rig.
Excluding test wells, Savanna had the biggest year-over-year jump in
operating days for the half, reaching 7,520 days from 4,837 in the fi rst half of
2011. Western Energy Services Corp.’s operating days lifted to 3,673 in the
half from 2,608 in the comparable period last year.
PIPELINE NEWS September 2012 B33
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Blackbird Energy Inc. is buying Ruger Energy Inc., an Alberta junior oil
and gas exploration and development company with 100 per cent working
interest in 680 acres in the Alsask area on the Alberta/Saskatchewan border.
Blackbird entered into a non-binding letter of intent Aug. 2 for the acqui-
sition of Ruger, whose assets consist of cash as well as oil and gas, and plans to
build on the strength of its Bigstone liquids-rich Deep Basin gas play.
Th e company is now in a position to capitalize on the assets where it is the
operator and will focus on making additions, said Garth Braun, CEO of Black-
bird.
Blackbird's Bigstone project is comprised of lands and licences covering
5,120 (1,120 net) acres in Township 60, Ranges 22 and 23W5 at Bigstone,
Alberta.
By completing the terms of a farm-in agreement with Donnybrook Energy
Inc., Blackbird earned 25 per cent of Donnybrook's interest in the Bigstone
lands and in any future operations within an area of mutual interest.
Th e acquisition, an arm's length transaction, will be subject to the approval
of the TSX Venture Exchange.
Ruger's Alsask property has three producing Mannville oil wells and one
glauconite water-disposal well that takes water on vacuum at 150 bbl. of water
per day.
Current production is 20 bbls of 15-degree API oil per day.
Th e Mannville pool is an outlier to the large Conoco Marengo pool six
miles east. Other outlying pools have been discovered in the area as well. Th ese
wells have produced in excess of 230,000 bbl. of oil to date.
Proved and probable producing remaining reserves are 29,000 bbl. Present
value before taxes discounted at 10 per cent is $1.01 million.
If the acquisition is completed pursuant to the terms of the letter of intent,
Blackbird will acquire Ruger by issuing common shares of its capital stock to
Ruger at a deemed price per share of 12 cents, based upon the net asset value of
Ruger at closing.
Th e net asset value of Ruger as determined at closing may not represent
fair market value.
Th e acquisition is subject to a number of conditions that include comple-
tion of due diligence reviews by the parties, successful negotiation of a de-
fi nitive purchase agreement, and receipt of all required regulatory and stock
exchange approvals.
As a result of the issuance of the acquisition shares, Ruger will become an
insider of Blackbird.
“We are very pleased with the development of Blackbird and the addi-
tion of two very experienced operators to the team,” said Braun. “We feel that
adding this tremendous operational expertise will enhance shareholder value, as
value achievement for our shareholders must be created both through the de-
velopment of our existing project and also with the origination of new projects
that are oil-weighted.”
Blackbird to acquire Ruger
B34 PIPELINE NEWS September 2012
Curly’s Picker Service Ltd.Curly’s Picker Service Ltd.Mark T. (Curly) Hirsch
1595 Dieppe Cres.Estevan, Sask.S4A 1W8
Secor Certi edCell: (306) 461-5898Fax: (306) 634-6690Cell: (306) 487-8120 Bus: (306) 487-2608 • Fax: (306) 487-2296
Lampman, SK. Email: [email protected]
HUTT’STRUCKING LTD.
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Primate – After be-
ginning the fi rst phase
of its summer drilling
program early, Edge Re-
sources Inc. has success-
fully drilled, cased and
completed two wells in
Primate, Saskatchewan,
southeast of Mack-
lin, one of which has
resulted in the discovery
of a new pool.
Both wells will
begin production testing
and pressure buildup
analysis simultaneously.
Additionally, the
company acquired 100
per cent of the land
it posted at a recent
Crown land sale, adding
395 net acres of con-
tiguous property to its
existing Grand Forks oil
asset.
In Primate, the
company had secured
the drilling rig, which
was between wells on
a nearby program for
another operator, on a
short-term window. Th is
allowed the company to
start drilling earlier than
it had planned.
Th e wells were
successfully drilled to
the primary target, the
McLaren formation, at
less than 850 metres,
having passed through
several other potentially
hydrocarbon-bearing
sandstones. On-site
geological analysis
and logs indicate no
less than 12 metres of
McLaren formation
sands were encountered
in both wells.
Th e company is
now equipping the wells
for pressure buildup
analysis and production.
Production testing com-
menced in mid-August
and will likely require
four weeks, but possibly
up to three months,
before a stabilized pro-
duction regime can be
established, as is normal
with all CHOPS (cold
heavy oil production
with sand) wells.
“We are very happy
with the initial geologi-
cal results from these
wells,” Brad Nichol,
president and CEO,
said in a news release.
“We are especially
pleased with the well
drilled in the eastern
section, which was
previously given zero
value on our reserve re-
port. Our Primate asset
continues to represent
a wonderful opportu-
nity to increase both oil
production (and associ-
ated cash fl ow) and asset
value. It was nice to drill
the fi rst two wells early
and establish production
in the eastern section
before drilling the rest
of the program.”
Th e fi rst well was
drilled in an eastern
section of the company’s
property at Primate.
Th is section is a non-
producing section that
immediately off sets a
very actively-drilled
area. As this section
did not contain any
producing wells, it was
previously allocated zero
value in the company’s
reserve report and bal-
ance sheet. Th is new
pool, described as a
mid-Mannville heavy
oil accumulation, is
off setting a similar, but
separate, pool to the
east, which is believed
to be currently produc-
ing over 2,000 bbl. of oil
per day.
Th e second well was
drilled into the compa-
ny’s existing, producing
pool and encountered
approximately 15 metres
of net pay. Th is was the
southernmost location
into the existing pool
to-date, which helped
to further delineate
and defi ne a relatively
undrilled area of the ex-
isting pool. After being
perforated, the well was
shut in to begin a multi-
day pressure buildup.
Production testing
started after several days
of collecting pressure
data.
Edge discovers new oil pool at Primate
PIPELINE NEWS September 2012 B35
B36 PIPELINE NEWS September 2012
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NEWSPIPELINE SECTION C
September 2012
Par 3 Winners:1st Nolan Rohatyn Brett Blackstock Shawn Boyes Wilson McKinnon2nd Jeff Pratt Dustin Wilson Devon Carrington Lorne Tytlandsvick3rd Wayne Carley Bill Halkyard Colin McInnes Clayton JahnHorse Race 1. Nolan Rohatyn 2. Jeff Mosely 3. Darin TrimbleChampionship Flight 1. Kris Carley 74 2. Brett Blackstock 75 3. Darin Trimble 77First Flight 1. Jamie Didrick 73 2. Cory Anderson 77 3. Dustin Wilson 82Second Flight 1. Lorne Tytlandsvick 84 2. Keith Hamilton 84 3. Scott Haliday 85Third Flight 1. Terry Theil 91 2. Laurier Carriere 93 3. Sam Bachorick 93Fourth Flight 1. Wilson McKinnon 88 2. Brad Dutton 89 3. Al Walker 91Fifth Flight 1. Gerry Naka 93 2. Trevor Davies 100 3. Arnold Marcotte 100Sixth Flight 1. Thayne Giroux 93 2. Tony Thompson 97 3. Nick Shier 99Seventh Flight 1. Jim Trimble 93 2. Curt Ermantraut 100 3. Ben Dizzarri 103Eight Flight 1. Brad Meyers 94 2. Graham Ball 103 3. Bob Hahn 106Ninth Flight 1. Ian Taylor 113 2. Ken McClemment 116 3. Josh Bayliss 126
Ken Bayliss gets evaluated on his swing. The ladies in the back all gave the boss a 10. The crew from Easyrider Trucking, is, from le , Natasha Bevan, Randi Thiry, Pamela Miller and Fay Myers.
By Brian ZinchukCarnduff – Th e three-day Carnduff Oilmen’s Golf
Tournament was a success, with 120 golfers taking part on
the 9-hole course.
Th e tournament took place Aug. 10 to 12 at the Car-
nduff Golf Club.
Th e par 3 event on the Friday, Aug. 10 had all its slots
taken, with 27 teams participating.
Saturday saw the end of the qualifying round, com-
pleted with a Calcutta and a horse race. In the horse race,
12 golfers start on the 4th hole, and two are dropped on
each subsequent hole. Only two are left on the last hole.
Sunday was a shotgun start.
“Th e money we raise, the majority of it goes back to the
golf course,” said Al Larson, president of the event. “One of
the bigger things we support is our junior golf program.”
“It’s a good secret we have here. Guys come back until
they die,” Larson laughed. “It’s just a good bunch of guys.
Th ere’s a lot of hard work that goes into it.
“It’s a lot of fun. Th e guys can sit back and relax.”
Page C2
Carnduff Oilmen’s Golf Tournament
Results:
Kent Kirkhammer powers through a tee o . Carnduff Carnduff
Oilmen’s a Oilmen’s a successsuccess
C2 PIPELINE NEWS September 2012
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Right: Mike Fowler of Bak-er Hughes serves up some souvlaki. They were so good, you couldn’t stop at just one.
Right: Thayne Giroux of Peak En-ergy at Lampman knocks his put in the hole.
Shawn “Gump” Boyes watches his put head toward the hole. Shawn drives truck with his family’s busi-ness, Bandit Oil eld Hauling, of Carndu .
Jason Miller of Mil-Lar Truck-ing connects on the tee.
Above: Spearing Service’s Ken Mc-Clement watches his ball y down the fairway.
More More Golf Golf Action Action
PIPELINE NEWS September 2012 C3
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Crude-by-rail is con nuing to gain trac on in Saskatchewan. Torq Transloading now has facili es near Shaunavon, Unity, Lloydminster and, most recently, Bromhead.
Torq Transloading facilities popping up everywhere By Brian Zinchuk
Bromhead – Th e move away from pipeline
shipping and toward crude-by-rail is gaining
steam, as yet another transloading facility has
begun operating in southeast Saskatchewan.
Torq Transloading announced in early August
they would being shipping crude-by-rail just west
of the hamlet of Bromhead, approximately 55
kilometres west of Estevan. Th e facility makes use
of a new shortline railway – Long Creek Railroad
(See related story page C5)
Jarrett Zielinski is president and CEO of
Torq Transloading, as well as one of the owners.
Torq got its start in May 2011, and since then
has been establishing crude-by-rail facilities
throughout Saskatchewan and Alberta.
“We are a sister company of Goulet
Trucking,” Zielinski said. Both opera-
tions are owned by parent company
Torq Capital Partners. It’s a pri-
vately held company with four
owners. Page C4
C4 PIPELINE NEWS September 2012
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Page C3“Goulet is a
52-year-old business
we purchased over a
year-and-a-half ago,”
he said.
Th eir transloading
sites are popping up all
over.
“We have six in
total,” Zielinski said.
One is at Instow, just
outside of Shaunavon.
“We off er our
customers a portfolio
of loading facilities in
order to capture the
best economic arbi-
trage opportunities,” he
said. Th eir objective it
to be diversifi ed across
a cross-section of crude
types and to freely
move about diff erent
areas to take advantage
of price diff erentials
between two markets.
“We also operate
two facilities on behalf
of CP Rail,” Zielinski
explained. One is at
Tilley, Alta., east of
Brooks, while another
is at Lloydminster.
“We have one in
Unity and another in
Whitecourt, Alberta,”
he said. “Th e one in
Whitecourt we operate
on behalf of CN.”
Th e Unity facil-
ity, using trackage at
North West Terminal,
started in April.
“We can load up to
40 cars per day in its
current status,” he said.
“Th at facility is fairly
busy. We are loading
15 to 20 cars per day
there.”
“We load fi ve to
seven cars per day. We
have a 27 car spot,”
Zielinski said in refer-
ence to the Instow site
where Torq has one
transloading operation.
Torq has one
transloading system
there.
Th ey load from
the bottom and use
closed-loop vapour
recovery systems.
Asked why they
got into the crude-by-
rail business, Zielinski
said, “Th e demand is
there. Pipeline ap-
portionment is more
frequent. It leads
producers to make
a decision between
shutting in or explor-
ing alternatives that
increase their netback.
“In addition, all
the producers we
work for are looking
to achieve greater
economics for their
products.
“We’re not
marketers. We’re a
fee-for-service trans-
loader. We follow the
crude markets and
understand the arbi-
trage opportunities. By
shipping crude to areas
underserviced by pipe-
lines or accessing large
amounts of water-
borne crude, refi ners
and terminals fi nd an
advantage by receiving
crude by rail.
Zielinski noted
there are opportunities
between the Brent and
West Texas Intermedi-
ate diff erential, be-
tween WTI and West-
ern Canadian Select,
and Maya and Western
Canadian Select.
As for where it all
goes once this crude
hits the rails, Zielinski
said, “Typically about
50 per cent of our
shipments go to the
eastern markets. Forty
per cent is southbound,
and 10 per cent is
westbound.”
“We don’t own
any cars. We expect
cars from marketers,
producers and refi ners.
Th ere is a shortage of
cars right now. It’s 18
months delivery for
new cars. We’ve seen
asphalt cars moved to
crude service. Every
day it seems more cars
are coming online. It’s
substantial.
“Our business has
seen increased volumes
and demand year over
year.”
BromheadTh e Bromhead lo-
cation is called South-
hall. Th ey chose it in
part because there was
already a loading facil-
ity in Estevan, one that
got a cool reception
from city hall.
“It’s a sensitive
topic. Th at is part of
the decision of choos-
ing the location we did.
It mitigates trucking
and environmental
impacts,” he said.
Zielinski pointed
out Southhall is an iso-
lated location, with low
population density.
Th ere is a “Y”
turnaround track at
the site, roughly where
the loading will take
place. Th ey are starting
with a 10 car spot. Th e
track to Oungre from
the “Y” has long been
abandoned and pulled
up.
“We have the abil-
ity to move cars,” he
said, adding they can
load up to 20 cars a day
in its current phase.
“In later phases
there are designs for
us to load unit train
volumes, between 100
and 120 cars,” he said.
“Looking at some of
the licensing activity
in that area, we felt it
would provide an op-
portunity as the area
continues to develop.”
Th ere’s no small
coincidence that the
Bromhead site is prac-
tically within spitting
distance of the U.S.
border. Th ere are two
ports south of Bro-
mhead. A key target
market is attracting
North Dakota oil to
come north across the
border to be loaded
onto Canadian trains.
Another issue with
crude-by-rail sites has
been damage to roads.
Torq has worked out
a road maintenance
agreement with the
rural municipality for
the portion of RM
roads needed to access
the site.
Th e company’s
expansion plans aren’t
over yet. “We’re cer-
tainly looking in
northern Alberta, and
some smaller things in
southern Alberta, and
another opportunity in
west central Saskatch-
ewan,” Zielinski said.
“We are looking at a
couple of opportuni-
ties that are pipelined
with fi xed infrastruc-
ture.”
Bromhead location out of town, and close to border
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By Brian ZinchukEstevan – It took seven years for farmers west of Estevan to get to the
point where they have their own railroad. Now that they have it, a new oppor-
tunity has been thrown into the mix – shipping crude-by-rail, in quantities a
lot larger than they were initially expecting.
Long Creek Railroad starts just east of the KFC in Estevan and runs 41
miles west to Tribune along a line that has seen little use for many years.
Glenn Pederson is president and a shareholder. He’s one of about 25 farm
producers in the area who are involved in the new shortline. He spoke to
Pipeline News via cellphone while combining on his farm north of Bromhead.
Pederson farms 7,500 acres with his father, Dallas.
“Th ere’s no oilfi eld money in the purchase or maintenance of the track,” he
said.
“Back in 2005, Canadian Pacifi c listed it on their three-year abandonment
plan. We felt the Canadian Transportation Agency miscalculated the net sal-
vage value. Th ey didn’t include land reclamation and statuatory payments. We
took that to court and made an application.”
Th e result was a settlement on net salvage value, but it took until 2011 to
achieve. “Th en we had a fi nal price,” Pederson said.
Th e fi rst year was a tough one for the fl edgling railroad.
“Last year we fl ooded out and had no crop, so we had no traffi c,” he said.
Th e line was washed out in some spots, and they had no grain to haul.
Indeed, before the handover, a key portion of track within the city of Este-
van near the overpass over Highway 39 subsided several feet. Canadian Pacifi c
took care of that.
Th ere’s one elevator at Outram owned by a farmer, two at Torquay and two
at Bromhead. Two of the three owners of elevators are also are investors in the
railroad, but Pederson is unsure if those elevators still have the capacity to load
rail cars. Th e sidings are still in place, however.
“We have all our sidings and switches intact,” he said. As a shortline, they
can spot cars on sidings or their mainline.
Th e decision to set up a short line came down to a matter of economics, he
explained. It’s a lot cheaper to haul grain fi ve miles away than to Weyburn. It
costs an additional $5 to $7 per tonne to truck grain to Weyburn. When you
factor in the charge for using the elevator, the costs for Pederson personally can
be up to $20 to $25 per tonne.
“Th at’s where we see the value. Th e oil was an afterthought,” he said. “I
strongly believe it will benefi t everyone bargaining with the elevator.
“Our distance from the ocean has not changed. Th e grain will still be
loaded on rail, despite the demise of the Canadian Wheat Board.”
Opportunity knocksCoincidentally, the past year has seen an upsurge in crude-by-rail in south-
east Saskatchewan. And it so happens that Long Creek Railroad runs along
one of the most active drilling spots in the province, right along the U.S. border
south of Highway 18.
“Currently we are working with Torq Transloading period. We’ve built a
loading site at Southhall between Bromhead and Tribune,” Pederson said. (See
related story page C3).
Torq told Pipeline News they initially are looking at loading 20 tanker cars
per day, and are considering expanding that to unit train capabilities. A unit
train can be 100 to 120 cars.
Th at’s a fair bit more than the “conservative number” of 500 grain cars per
year the railroad initially planned for.
He noted that several years ago, the idea of shipping crude-by-rail had
been brought up, but it was “nothing we could put in our business plan.”
“Th ey contacted us,” he said of Torq. “We’ve had half a dozen interested
parties.
“I believe there’s two or three more waiting to see if they want to invest.
We never advertised.” Page C6
Shortline was planned for grain, but may end up hauling more crude than kernels
COMPRESSION CONSULTING LTD.
www.annugas.comToll Free 1.866.ANNUGAS
C6 PIPELINE NEWS September 2012
They may end up hauling a lot more than initially planned
The owners of Long Creek Railroad are glad they didn’t buy a road-railer, as it looks like they may end up pulling more cars then they ini ally planned.
Photo by Katrina Zinchuk
Page C5“Th ere’s a tremendous amount of oil business to be had. Pipelines are only
so big, and they can only move so much.”
Indeed, while Canadian Pacifi c had divested itself of the rail line, their
website now lists Long Creek Railroad as a partner.
“I must say, CP has been good to work with,” Pederson said.
He pointed out that the line to Radville, which had been slated for aban-
donment, is not being torn up, despite all the conditions for abandonment
having been met.
As for pulling the trains, Long Creek does not have its own engines, at
least, not yet. “We hired the services of Central Canadian Rail from Manitoba
to pull cars for us.”
Th ey have one locomotive, freshly painted blue, which is in Estevan now.
Another can be added in the future.
Pederson said they are going to take a wait-and-see approach to engine
power. Th ey had initially considered a Brandt road-railer, a half truck/half rail
engine. Th at might have been suitable for moving some producer cars of grain,
but woefully inadequate for large oil shipments. Now he said they are glad they
didn’t go down that route.
In the long term, he said, “We’re considering getting our own locomotive.”
Pederson said perhaps we need to looked at the mindset of 100 years ago, a
mindset of development. “Th is whole Western Canada – let’s get at ’er and fi nd
ways to solve problems. Today there’s a lot of negative talk,” he concluded.
PIPELINE NEWS September 2012 C7
SUZANNA NOSTADT Vice President of OperationsTel: 306-842-6100/Fax: [email protected]
C8 PIPELINE NEWS September 2012
301 Kensington Ave.Estevan, SK.
Phone: (306) 634-3616
3902 - 75th Ave.Leduc, AB.
Phone: (888) 835-0541
Fort Nelson, B.C.Phone: (250) 774-2615
Serving the oil patch of Western CanadaLONG HAUL - Canada & US
For much of the summer, a sole CanElson rig, simi-lar to Rig 21 seen here, was the only drilling rig working for Crescent Point. The company usu-ally has over a dozen.
Crescent Point resumes drillingCrescent Point resumes drilling By Brian Zinchuk
Calgary – Th e rumour fl ashed around the Es-
tevan OTS Golf Tournament in June like wildfi re:
Crescent Point Energy Corp. had shut down their
drilling program and released their rigs. Th at’s a big
deal in a town where the active rig count is a lead-
ing economic indicator. When one of the most ac-
tive drillers shuts down activities, there are impacts.
In this case, the rumour was true. Saskatch-
ewan’s second largest oil producer, which had 15+
drilling rigs working in Western Canada, mostly in
Saskatchewan, had dropped to just one active rig
for much of June and July. Th at one rig, CanElson
Rig 23, could be found working in their core View-
fi eld Bakken play.
By early August, things began to turn around.
Th e company had three rigs working in southeast
Saskatchewan and one in a new area in southwest
Manitoba. Soon more would be at work in south-
west Saskatchewan and in Alberta. By Aug. 17,
that number was up to eight.
Crescent Point vice-president of engineering
east Ryan Gritzfeldt explained to Pipeline News the
reasoning behind the companies deferral, and then
resumption, of much of its drilling program.
“Th e production results we had in fi rst and
second quarter were well ahead of target,” he
said. As a result, the company was in no hurry to
ramp up spending right after breakup, especially
given the volatile price of oil and the
pipeline diff erential.
Another major factor was the declining price of
oil, which in recent months had fallen into the $70
range for WTI before climbing back to the $90
range seen in mid-August.
Gritzfeldt said, “If you combine that with the
current volatility in the pipeline diff erentials, it
actually put realized wellhead prices not far off of
the low 2009 price levels.”
At that time, oil prices were somewhat lower,
but the diff erence in the exchange rate made up
for it.
Th e pipeline diff erential is the diff erence be-
tween what the going WTI price is and what
you are getting paid. It has been in a discount
situation due to the shortage of pipeline ship-
ping capacity. “Th ey were as high as $20,” he
said of the diff erential per barrel.
“Th is approach keeps our balance sheet
strong, a key attribute of our corporate strat-
egy since our inception of our company. Now
we’re well-positioned fi nancially in Q3 going
into Q4, which enables us to capture any
opportunities that come along. Th ey usually
do come along in lower, volatile price com-
modity cycles,” he said in reference to their
delaying the drilling program.
Page C9
PIPELINE NEWS September 2012 C9
Page C8Th ere were other factors as well. Th e Canadian dollar exchange rate with
the U.S. dollar has an impact. Exporters, like Crescent Point, see more of a
return when selling in U.S. dollars when the Canadian dollar is worth less than
the American buck. Th e loonie has recently been fl oating near par with the
Greenback.
Gritzfeldt noted, “Out Bakken formation (wells) are economic at $30.”
Th e delayed drilling allowed the company to build up cash. An average
Saskatchewan Bakken well runs around $1.8 million to $2 million to drill,
complete and tie in, but in North Dakota and Alberta’s Swan Hills, the prices
are higher.
After having delayed their drilling program, things are set to resume.
Noting the company is well positioned fi nancially, Gritzfeldt said, “Now we’re
executing the rest of our program as planned.
“It’s about our sustainable growth targets. We analyze them weekly,” he
explained, adding that during a low price commodity cycle, they can hold back
a little bit. Now prices has stabilized somewhat.
Crescent Point has normally had over a dozen rigs operating during ac-
tive drilling seasons, many of which were working in the Bakken, but also in
southwest Saskatchewan and in Alberta. Th e company is also drilling in North
Dakota’s Bakken play as well. During the fi rst quarter of 2012, the total num-
ber of rig was 15 or higher.
“We’ll be back up to that 15 company-wide,” he said.
“We still have a lot of locations to drill in southeast Saskatchewan,”
Gritzfeldt said.
One new fi eld for Crescent Point is just across the Manitoba border, north
of Highway 1, known as the Elkhorn, with some south Kirkella and Birdtail in
for good measure. Th e land was acquired as part of the deal for Reliable Energy.
Gritzfeldt said, “We’ll probably have a rig going there for the rest of the year.”
One of the things Crescent Point has done over the past year to address
the pipeline diff erential is to shift some shipping to rail. Earlier this year it es-
tablished its own crude-by-rail transloading facility just west of Stoughton and
a few miles north of its key Viewfi eld facility. “When pipeline diff erentials are
at it’s peak, we do a lot better on rail,” Gritzfeldt said. “If pipeline diff erentials
come down, we’re doing better on pipe.
He noted that Enbridge’s line 14 closure in late July meant they were
restricted 30 per cent in shipping capacity by that method.
It’s no surprise, then, that the shortline between Stoughton and Regina has
seen constant activity with oil tanker cars at most of the sidings and frequent
trains in motion.
Th e company is also looking into rail at Shaunavon, where they could go
with their own facility like Stoughton, or use a third party.
“We’re looking into Alberta as well,” Gritzfeldt said.
Expiries not an issueAt the 2011 Saskatchewan Oil and Gas Show in Weyburn, Crescent Point
president and CEO Scott Saxberg noted how they did $700 million in 2008
deals that year. Th e company was the largest player in that record-breaking year
for Crown land sales.
Now many of those leases are coming closer to their end. Th e Saskatch-
ewan Ministry of the Economy told Pipeline News in late June that much of
the Crown leases purchased in 2008 will expire April 1, 2014, just 19 months
from now, and that 85 per cent of the land leased that year (by all players, not
just Crescent Point) had not yet been proven up.
Asked if Crescent Point is feeling pressure to prove up land before it ex-
pires, Gritzfeldt said, “No. We’re not feeling pressure. A lot of those leases had
a fi ve-year term.
“When you look at the detail, we know what we have to drill two to three
years out. We know what our expiry situations are. We build all that into our
current drilling program. Th ere’s always a small portion of our corporate drill-
ing program that handles that.”
Bristow Projects Bristow Projects was doing some pipeline work near Benson on Aug. 10. Photo by Brian Zinchuk
C10 PIPELINE NEWS September 2012
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Calgary – In second quarter 2012, Crescent
Point Energy Corp. achieved a new production
record and averaged 96,972 boepd, weighted 92 per
cent to light and medium crude oil and liquids. Th is
represents an overall growth rate of 47 per cent over
second quarter 2011. Second quarter 2012 produc-
tion also represents growth of more than 6,500
boepd over fi rst quarter 2012.
As a result of strong 2011 and fi rst half 2012
drilling, acquisitions completed year to date and a
spring breakup that was less severe than expected,
the company is upwardly revising its 2012 guidance.
Crescent Point’s average daily production in 2012
is expected to increase to more than 95,000 boepd
from 88,500 boepd and its 2012 exit production
rate is expected to increase to 100,000 boepd from
97,500 boepd.
In second quarter 2012, the company spent
$188.4 million on drilling and development activi-
ties, drilling 75 (34.8 net) wells with a 100 per cent
success rate. Crescent Point also spent $47.6 mil-
lion on land, seismic and facilities, for total capital
expenditures of $236 million.
On June 1, 2012, the company closed an agree-
ment with a senior oil and gas producer to acquire
certain assets in the Shaunavon area of southwest
Saskatchewan for cash consideration of $343 mil-
lion. Th e Shaunavon assets acquired include pro-
duction of approximately 2,500 boepd, 98 per cent
oil-weighted, from three operated legacy units and
one non-operated unit in which the senior producer
had a minor working interest. Th ese assets are adja-
cent to and contiguous with Crescent Point’s exist-
ing Shaunavon land base and solidify the company’s
dominant position in southwest Saskatchewan.
Page C11
Crescent Point sets production record
A service rig can be seen working on Crescent Point land near Stoughton on Aug. 9. Photo by Brian Zinchuk
PIPELINE NEWS September 2012 C11
SPECIALIZING inLOG HOMES/BUILDINGS
South East Rentals Ltd.
Page C10Crescent Point continued to increase oil
deliveries through its Stoughton rail terminal,
providing access to diversifi ed refi ning markets
and improving netbacks. In late second quarter,
Crescent Point completed an expansion to the
facility, increasing capacity to more than 16,000
bpd. Current throughput exceeds 16,000 bpd,
with an additional 1,000 bpd also being delivered
to third-party sites. To provide a hedge against
price diff erential volatility, Crescent Point plans to
continue to increase crude oil deliveries through
its new Stoughton rail facility, which is providing
access to new markets.
Crescent Point announced on Aug. 10 it had
entered into an agreement, on a bought deal basis,
with a syndicate of underwriters for an off ering
of 13.42 million Crescent Point shares at $41 per
share to raise gross proceeds of approximately
$550 million.
Th e maximum gross proceeds raised under
this off ering will be approximately $633 million,
should this option be exercised in full. Closing was
expected to occur on or about Aug. 30, 2012. Net
proceeds of the fi nancing will be used to reduce
indebtedness and for general corporate purposes.
“We’ve signifi cantly outperformed in the fi rst
half of this year, relative to expectations. Spring
break-up was better than expected but, more im-
portantly, we’ve had strong drilling results in 2011
and the fi rst half of 2012. Our waterfl ood pro-
grams in the Bakken and Shaunavon, as well as fa-
cilities’ optimizations, have also contributed to our
results,” said Scott Saxberg, president and CEO of
Crescent Point. “We’ve executed a successful drill-
ing program, our oil production is well-hedged
and we are well positioned as we move into the
second half of the year, all of which has allowed us
to upwardly revise our production forecasts.”
Given the company’s signifi cant production
gains in second quarter 2012, Crescent Point
delayed capital projects until the middle of third
quarter 2012, allowing it to optimize the remain-
ing 2012 budget. With reduced industry activity,
Crescent Point also expects cost pressures to be
alleviated in the second half of 2012, which will
help improve operating costs and capital effi cien-
cies across all areas. (See related story page C8)
Th e company will also continue to expand the
waterfl ood programs in the Viewfi eld Bakken and
Shaunavon resource plays, which continue to show
positive results.
Southeast Saskatchewan and Southwest Manitoba
In second quarter 2012, Crescent Point par-
ticipated in the drilling of 23 (13.9 net) wells in
southeast Saskatchewan and Manitoba, achieving
a 100 per cent success rate. Of the wells drilled,
12 (10.0 net) were horizontal wells in the Bakken
light oil resource play. the Company also partici-
pated in the drilling of 11 (3.9 net) horizontal oil
wells in conventional zones. During the quarter,
the company converted 2 additional Viewfi eld
Bakken producing wells to water injection wells.
By end of second quarter 2012, the company had
converted a total of 35 producing wells to water
injection wells in the play. Production performance
from water injection patterns in the Viewfi eld
Bakken resource play continues to exceed Crescent
Point’s expectations and has demonstrated the
fi eld wide applicability of waterfl ood to the play.
Discussions with potential unit partners and the
Saskatchewan government to implement a unit-
wide waterfl ood are advancing.
Page C12
2012 exit production expected to crack six gures
C12 PIPELINE NEWS September 2012
Page C11Southwest
SaskatchewanDuring second
quarter, the company
participated in the
drilling of 8 (5.3 net)
oil wells in southwest
Saskatchewan, achiev-
ing a 100 per cent
success rate. Of these
wells, 3 (2.9 net) were
drilled in the Shau-
navon area.
During the quar-
ter, Crescent Point
integrated the senior
producer’s operations
in the Shaunavon area.
Integration of the
assets is now largely
complete.
The company
is currently inject-
ing water into seven
horizontal injection
wells in five pressure
maintenance programs
in the Lower Shau-
navon zone. Crescent
Point continues to be
encouraged by results
to date in all pro-
grams. Plans to con-
vert up to four wells in
the Upper Shaunavon
zone to water injec-
tion wells in 2012 are
also underway and
are expected to bring
the total number of
injection wells into the
play to 11 by year-end
2012.
Crescent Point
completed construc-
tion and commis-
sioned one of three
new batteries planned
for 2012. Construc-
tion on the remaining
two is underway, with
commissioning antici-
pated by fourth quar-
ter 2012. Also during
the quarter, the com-
pany’s new gas pro-
cessing plant became
operational. The gas
processing plant has a
capacity of 6 mmcf/d
and is expandable to
12 mmcf/d.
AlbertaDuring second
quarter, 20 (10.2 net)
oil wells were drilled,
achieving a 100 per
cent success rate. Of
the wells drilled, 14
(5.8 net) were in the
Beaverhill Lake light
oil resource play. The
company’s plans for
its first waterflood
pilot in the play are
well underway, hav-
ing begun reservoir
modelling and facility
design. Crescent Point
expects the pilot to be
operational in early
2013.
Crescent Point has
access to a significant
land base in southern
Alberta and has been
pursuing several explo-
ration projects in the
area. During second
quarter, the company
drilled 1 (1.0 net) well
to follow up on previ-
ously drilled uncon-
ventional exploration
wells in the Alberta
Bakken play and 2 (2.0
net) horizontal wells
in conventional zones
in southern Alberta.
Plans for 2012 include
drilling up to 14 net
conventional and un-
conventional wells on
these lands.
United StatesDuring second
quarter, the company
participated in the
drilling of 24 (5.4 net)
oil wells, of which 12
(2.6 net) targeted the
Three Forks forma-
tion, achieving a 100
per cent success rate.
In total in 2012,
the Company expects
to drill up to 18 net
wells targeting the
Bakken and Three
Forks zones. Crescent
Point has secured
adequate drilling,
service and fracture
stimulation equipment
to complete its current
2012 capital program.
For the remainder
of 2012, the company
expects to continue
to develop its emerg-
ing plays in Beaverhill
Lake, North Dakota
Bakken/Three Forks
and southern Alberta.
Crescent Point’s North Dakota drilling numbers similar to SE Sask
This are near Benson is bright during the day, but even more so at night, visible for many miles. Photo by Brian Zinchuk
Burning bright
PIPELINE NEWS September 2012 C13
www.crescentpointenergy.com
We’re proud to be a part of your community.
738 5th Street (back door) Phone: 634-3522
24 Hour Service - 7 Days A Week!
• Two Way Radios• Alarm Monitoring
• Safety Checks
"We Dispatch for the Oil Patch"
Although I had only
met him on a half dozen
occasions, Tim Floden’s
death in July of 2011
from lung cancer at the
age of 52 years aff ected
me deeply. At the time
of his death, Tim was
working for Crescent
Point in the comple-
tions division of the
company as a comple-
tions technician. Many
of the tickets I had
written up for Crescent
Point in my job as a hot
shot driver prior to his
diagnosis of cancer were
directed to his attention
in the Weyburn offi ce.
I did not know him
well, but we shared a
number of things in
common. We were
the same age, we had
lived for a time only a
couple of blocks apart
in Estevan, we had a
similar hard work ethic,
we loved our families
intensely, and we adored
pie. To be specifi c, we
both adored lemon me-
ringue pie and we both
adored Sweetie Pie.
Lemon meringue
pie needs no introduc-
tion – the sweet but
tart lemon fl avored
pie topped with fl uff y
melt in your mouth
meringue. But you may
need an introduction to
Sweetie Pie – Iris Elena
Floden, born in March
2010. Tim and I shared
a deep and instant love
for one sweet little girl
born as a result of the
marriage of the Floden’s
son, Ryan, to the Elson’s
daughter, Monica.
Tim’s diagnosis of
lung cancer took him by
surprise. He had been
on top of the world
fi guratively and literally
only six months before.
He and his wife Debo-
rah had been in Swit-
zerland on a mountain
peak (proudly wear-
ing his Saskatchewan
Roughrider colours)
as part of a European
trip in June 2010. He
had the world by the
tail. After years of hard
work on service rigs in
Alberta, Saskatchewan
and Russia and consult-
ing for 12 years in his
own company, he was
recruited by Crescent
Point in 2008 for his
dream job.
His wife, Deborah,
maintained a daily blog,
a memorial love story,
from his diagnosis of
cancer in January to his
fi nal day of life on July
29, 2011. It allowed
his friends and family
members a glimpse into
the couple’s daily jour-
ney of cancer and death,
witnessing beauty and
joy along with messi-
ness, fear, and sadness.
Crescent Point
closed down their ser-
vice rigs on Wednesday,
Aug. 3 to allow Tim’s
friends and co-workers
to attend his memorial
service in Regina. Chad
Lundberg, team lead
completions engineer
for Crescent Point in
Calgary, and Tim’s boss
and friend was the
emcee for the service.
He held a football and
spoke of Tim’s love
of the Saskatchewan
Roughriders. He told us
about Tim’s hard work
ethic. He said that Tim
had more knowledge
in his head about the
Crescent Point leases
than Crescent Point had
in their computers. He
told us about Tim’s love
for his family and that
Tim was infl uential in
getting Crescent Point
to close down their
service rigs every second
weekend as a matter
of course so the guys
could spend time with
their families. Tim had
missed a lot of family
time as a result of his
work so he knew how
hard it was on the men.
He also spoke of their
friendship and how he
would miss Tim.
I had wondered in
the months leading up
to Tim’s death about his
spiritual needs. He had
attended church with
us when the kids were
married and for Iris’
baby dedication, and
in the months leading
up to his death, did not
rebuff off ers of prayer,
but still I had wondered.
I got my answer when
Chad announced that
the musical selection to
be played next in the
service was Tim’s favor-
ite hymn – It Is Well
With My Soul.
“… Though Satan
should buffet, though
trials should come,
Let this bless as-
surance control,
That Christ has
regarded my helpless
estate,
And shed His own
blood for my soul! ...
Refrain- It is well, it is
well with my soul!”
And so on Sunday,
July 29, 2012 I marked
the one year anniver-
sary of the death of
Tim Floden with two
kinds of pie – Sweetie
Pie and lemon me-
ringue pie. I cut a
small piece and served
it to her. “Th is is pie,” I
said.
“Pie” she repeated
in her clear sweet little
voice. “Mmmm!”
“Grandpa loved
pie!” I said. “And you,
too!”
Nadine lives in Es-tevan with her husband and family, and works as a hot shot driver in the oil patch regularly deliver-ing goods in and around Estevan and Shau-
navon, and Sinclair and Waskada, Manitoba. Her mission, beyond deliver-ing the goods quickly, is to have every interaction be a positive one. She can be reached at [email protected].
Honouring Tim Floden’s life with pie
One Woman’s Perspective on Life, Liberty and the
Pursuit of Land Locations By Nadine Elson
Shifting Shifting GearsGears
C14 PIPELINE NEWS September 2012
By Brian ZinchukBrandon, Man. – In the oil business, the usual pattern is to go to where the
resource is. Towns fl ourish near active fi elds, and some places, like Fort Mc-
Murray, would hardly exist otherwise.
But in southwest Manitoba, Trican Well Service is turning that on its head.
It’s going to where the resource is, but in this case, it’s human resources.
As such, in January, the company established a base in Brandon, Manitoba.
Down the road from Virden, Manitoba’s long-time oil capital, Brandon’s
still quite a way from where most of its services are currently needed, including
the fi elds around Cromer and Waskada. But it’s a little closer than Estevan, and
more importantly, it has two things other centres lack: housing and people. A
shortage of both has been a continual issue for southeast Saskatchewan busi-
nesses that typically service the southwest Manitoba oilpatch.
Other places were considered, but Brandon was the choice.
Brandon base manager Curtis Nerlien said, “We are just over 50 (employ-
ees). Fifty-four was our last count.”
“A lot of our guys are from western Manitoba. A few are from this area
and have worked for us out west and have transferred back.”
Some are from eastern Saskatchewan as well.
“Th e biggest thing is we need to be in a place with a population big enough
to draw from,” Nerlien said.
Th ey also needed truck services to support the fl eet. As Manitoba’s second
largest city and being located on the TransCanda Highway, there are plenty of
truck servicing outfi ts, from Fort Gary Industries to Peterbilt.
Nerlien said that as a larger centre, Brandon off ers more attractions for
employees.
In the shop you can fi nd mechanic Dwayne Woytkiw. He’s originally from
Swan River, Man. Woytkiw went to work for Trican at Clairmont, Alta., in
2006, having moved to Grande Prairie. He was off ered a transfer to Manitoba,
which brings him closer to family and the opportunities for future promotion.
“Lots of guys who are from Manitoba working out west can now move
back home and work,” Nerlien said.
Nerlien, himself, started with Trican as a bulk cement hauler in Lloydmin-
ster 12 years ago. Originally from Porcupine Plain, Sask., the former farm boy
brought his wife and three children with him to Brandon. It’s closer to family
for him as well.
“We deal with fracturing and cementing right now,” he said, but there are
plans in the works for expansion into coil tubing,
nitrogen and acid. Th e company has begun hiring
for those positions already.
“We’ve got guys in training,” he said.
Page C15
Mechanic Dwaye Woytkiw is originally from Swan River, Man. He was o ered a transfer back home to Manitoba a er working in Alberta for several years. It’s a story o en heard in Saskatchewan – where locals went to Alberta to nd work, only to return once more work became available at home. Here Woytkiw changes an air intake pipe.
Trican establishes Manitoba beachhead
PIPELINE NEWS September 2012 C15
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Currently one frac crew is based in Brandon. They will soon be joined by coil tubing, nitrogen and acid opera- ons. The new base is a beachhead for the oilpatch in a
city more known for agriculture.
Page C14Before the end of the year, most of Trican’s
pumping services will be off ered in Brandon.
“We’ll be around the 70 employee mark,” accord-
ing to Nerlien.
His offi ce is currently in a rental trailer. Th at
will soon change, as there are plans for a newly
constructed building to be located on their
campus just east of Brandon. “We’re going to be
building on this site soon. Th e contractor is fl ag-
ging out the yard this week,” he said Aug. 1.
“It’ll be a fi ve-bay shop with a cement bulk
plant and chemical warehouse. Th ere will be of-
fi ces as well.
Th eir closest frac job is about 115 km from
Brandon. Th at’s shorter than the distance from
Estevan, where Trican also has a base. With the
fl ooding last year and a bridge still out west of
Waskada because of it, their service area can be
more accessible from the new base, especially in
spring.
In establishing its Brandon base, Trican
also created a beachhead for the oilpatch in a
city whose hockey team is known as the Wheat
Kings. It’s the fi rst large oilpatch venture of its
type in the city. It comes at a time when Mani-
toba has been setting records for drilling and
production. As of Aug. 1, there were 27 rigs in
Manitoba, with 16 active. Th ose numbers were
unheard of until the past year-and-a-half. Riglo-
cator.ca actually had to adjust its graph to allow
for a higher number of rigs for Manitoba.
“We managed to fi nd a good crew of guys, a
good solid bunch,” Nerlien concluded.
C16 PIPELINE NEWS September 2012
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Lloydminster, SK306-825-3363
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By Josh LewisEstevan - Th e Estevan Oilfi eld Technical
Society held its 14th Annual Oilwomen’s Golf
Tournament on July 20.
Th e tournament, which resumed after a
one-year hiatus due to fl ooding, took place at
both the Estevan Woodlawn Golf Club and
Hidden Valley Golf Resort, due to the current
redesign taking place on Woodlawn’s back
nine.
Just under 80 women participated in the
one-day event.
Th e winning team was comprised of
Trudy Firth, Tami Kofoed, Maggie Stephen
and Darlene Sens.
Th e second-place foursome included
Shelley Naka, Shannon Knibbs, Mary Jane
Pineo and Shelly Big Eagle.
Coming in third was the team of Jennifer
Moore, Brandi Day, Arliss Schindel and Shelli
Schlingmann.
Nearly 80 golfers attendEstevan Oilwomens’ tourney
Trudy Firth lines up a put during the Estevan Oil eld Technical Society 14th Annual Oilwomen’s Golf Tournament on July 20.Photo by Josh Lewis/Estevan Mercury
PIPELINE NEWS September 2012 C17
Gibson Welding Ltd.Oilfield Trucking & Rentals
John 861-1280Fax 842-1707
[email protected]. BOX 926, WEYBURN, SK S4H 2L2
• 35, 30 & 23 Ton Pickers• Bed Truck• Pipe Custodian• Pipe Racks• Rig Matts• Flarestack Sales & Rentals• Tubing Trailers• 400 BBL Test Tank Sales & Rental• Wellhead Sales & Installation• Backhoe & Skid Steer• Steamer• Crew Truck• Test Separators• Work Strings• Light Towers• COR Certified
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John 861-1280
Saskatoon – Allstar Energy Ltd., a 100 per cent
owned subsidiary of 49 North Resources Inc., plans
to develop its heavy oil properties on its Riverside
lands near Leader, Sask. with a farm-in agreement
with Westcore Energy Ltd.
Westcore will spend up to $1 million to com-
plete a 3D seismic survey at Riverside with a
planned drilling program to follow.
Under the terms of the agreement announced
July 25, Westcore will earn up to a 60 per cent
working interest in certain wells drilled on the Riv-
erside lands under that drill program.
Westcore has also been granted an ongoing
right of fi rst refusal to participate in additional
wells on Riverside lands.
Th e Calgary-based Westcore can fund up to
100 per cent of drilling, completion and equipping
costs (to a maximum amount of $1 million) for up
to a further 60 per cent working interest in such
wells.
Th e transaction is subject to the review and ap-
proval of the TSX Venture Exchange.
Th e farm-in agreement follows news that All-
star completed its second re-entry well at Riverside
with a combined two well production of 160-170
barrels of oil per day by July 20.
“After removing the abandonment plug and
equipping the well bore for pumping, the targeted
formation has been performing above initial expec-
tations,” said Ashley Drobot, president and CEO of
Allstar.
“Much like the fi rst re-entry well in the pro-
gram, the second well had initial 24-hour pump
tests in excess of 100 barrels of oil per day.”
Drobot said the second well was restricted and
produced at a stabilized rate of approximately 60-
70 bpd in excess of 30 days up to the news update
in July.
Given favourable pressures and fl uid levels
evident in the wellbore, Allstar was able to increase
the pump rate on the second well to approximately
100 bpd.
Allstar is a potential major player at Leader
with title to approximately 31,360 acres at River-
side.
Th e company acquired an additional 16,000
acres of property at Riverside from third party
producers in May following the purchase of 15,360
acre in a Crown sale in October 2011.
Th e neighboring Mantario oilfi eld 20 kilome-
ters north of Allstar’s Riverside property has been
producing heavy oil since the early 1990s with
cumulative production in excess of 47 million bar-
rels of oil.
Th ose fi elds continue to produce oil with the
help of secondary recovery methods such as water
and polymer fl ooding.
At Riverside, Allstar has successfully incor-
porated new pumping methods and equipment
that have shown to vastly improve operations and
production over previous activities in the area.
In total, Allstar now owns or has exclusive
exploration and development permits covering ap-
proximately 58,000 acres of highly prospective Vi-
king oil, Viking gas and heavy oil lands all located
in west central Saskatchewan.
49 North is a Saskatchewan focused resource
investment company with strategic operations in fi -
nancial, managerial and geological advisory services
and merchant banking.
Allstar to farm-in Riverside wells
C18 PIPELINE NEWS September 2012
SVEIN BRYEIDE SVEIN BRYEIDE CONSTRUCTION Ltd.CONSTRUCTION Ltd.
HWY. 47 N. AT BENSON Fax: 634-9798 Cell: 421-0203
• Trackhoe and Backhoe• Lowbeds and More
Serving Sask for over 30 years.
• Earth moving and Oilfield Construction
• Lease Preparations and Restorations
• Pipeline Construction and Maintenance
• Road Building, Dugouts• Dozer Ripper and Winch Cats
• Motor Scrapers, Graders, Gravel Truck
634-6081
National Oilwell Varco completes acquisition of CE Franklin
NOV Distribution Services ULC, a wholly-owned subsidiary of National
Oilwell Varco, Inc., has completed its previously-announced acquisition of CE
Franklin pursuant to a plan of arrangement as of July 23.
Th e arrangement resulted in NDS acquiring all of the issued and outstand-
ing common shares of CE Franklin for cash consideration of $12.75 per share.
Th e arrangement was approved by the shareholders of CE Franklin and by
the Court of Queen’s Bench of Alberta on July 16, 2012. Articles of arrange-
ment have been fi led by CE Franklin with the Registrar of Corporations for
the Province of Alberta, pursuant to Section 193 of the Business Corporations
Act (Alberta).
Pursuant to the arrangement, NDS paid an aggregate of approximately
$239 million to acquire CE Franklin, which is now a wholly-owned subsidiary
of NDS.
Th e common shares of CE Franklin are expected to be voluntarily delisted
from the TSX and NASDAQ by the end of July.
What do you call a group of sidebooms? A ock? A eet? A herd? There’s got to be a
joke in there somewhere. These sidebooms will be working with Surerus on the Enbridge Bakken Pipeline. They were sighted at the Frobisher boneyard. Photo by Brian Zinchuk.
Sidebooms
PIPELINE NEWS September 2012 C19
Weekdays 7:00 a.m. - 5:30 p.m.; Sat. 7:30 a.m. - 5:00 p.m. • After Hours Call CHAD 634-0195 or cell 421-1896
Dan O’ConnorOperations Manager
204-748-5088
Office - Kola, MB.Office - Kola, MB.204-556-2464204-556-2464
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By Elsie Ross(Daily Oil Bulletin) – Alberta will be the largest benefi ciary of upstream
oilsands development resulting from new projects spurred by additional pipeline
capacity to export markets, says a new study.
Of the cumulative GDP growth of $2.82 trillion in Canada between 2011
and 2035, nearly 95 per cent or $2.67 trillion (2010 C$) would accrue to Alberta,
according to the Canadian Energy Research Institute study, Pacifi c Access, Link-ing Oil Sands Supply to New and Existing Markets. Th e various cases in the report
are based on the eff ect of the addition of the Keystone XL, Trans Mountain
expansion and Northern Gateway pipelines.
Alberta also would see the economic impact of $551.6 billion in taxes paid
by citizens and businesses and 13.55 million person-years of employment with
the three new pipelines in operation. Th at shouldn't be surprising, given that
the oilsands are in Alberta, Dinara Millington, co-author of the report with Jon
Rozhon.
With its manufacturing base that can provide products for the oilsands and
its large population, Ontario would see GDP growth of $83.3 billion and tax-
es of $27.4 billion, followed by British Columbia with $36.8 billion in GDP
growth and another $9.8 billion in taxes paid.
Th e study was the fi rst of three that CERI would be releasing over a two-
week period. Th e second study due out Aug. 9 would look specifi cally at the
economic impact of the construction of Northern Gateway and Trans Mountain
expansion while the third study, released Aug. 14, looked at the impact in Brit-
ish Columbia related to natural gas development for the oilsands and for LNG
export markets.
Th e results of the fi rst study indicate that Kinder Morgan Canada's Trans
Mountain expansion would have the lowest economic impact on Canadian
GDP at $307.9 billion compared to $617.4 billion for TransCanada Corpora-
tion's Keystone XL and $373.5 billion for Enbridge Inc.'s Northern Gateway.
Th is could be due to the fact that TMX has the lowest capacity addition to the
total export capacity and hence the bitumen production volumes that will be
transported via TMX are the lowest among the cases, the study suggests.
In the case of Keystone XL, which opens up new markets to the United
States Gulf Coast, the incremental GDP impact in Alberta would be $583.2 bil-
lion in Alberta, $18.6 billion in Ontario and $8.3 billion in British Columbia.
In contrast, TMX would result in incremental GDP of $291.3 billion in Al-
berta and $9 billion and $4 billion in Ontario and B.C., respectively. Th e North-
ern Gateway case projects incremental GDP of $352.3 in Alberta, $11.4 billion
in Ontario and $5.1 billion in B.C.
Apart from existing pipelines, Keystone XL would spur the largest incre-
mental tax revenue of $131 billion ($121 billion from Alberta), followed by $80
billion for Gateway and $65 billion for Trans Mountain. Th e same pattern holds
for employment with the largest benefi ts under Keystone XL, apart from exist-
ing pipelines, followed by Northern Gateway and TMX.
Excluding the existing pipeline operations case, royalties collected by the
Alberta government are the second highest under the Keystone XL case, fol-
lowed by Northern Gateway and then TMX.
On an annual basis, total royalty revenues from all cases will increase signifi -
cantly to just over $35 billion in 2035 from $3.4 billion in 2010. Cumulatively,
Alberta will collect $585.7 billion in oilsands royalties over the 25-year period.
Under CERI's reference case scenario, oilsands production is projected to
increase to 3.3 million bpd by 2020 and 5.3 million bpd in 2030 from 1.5 mil-
lion bpd in 2010.
In 2010, non-upgraded bitumen and synthetic crude production accounted
for 52 per cent of total Canadian crude production and 76 per cent of Alberta
total production, versus 54 per cent and 77 per cent, respectively, in 2011.
Over the 25-year projection period, the total initial capital required for all
oilsands projects is projected to be almost $281 billion under the realistic sce-
nario. New investment dollars start to drop off by 2030.
Th is does not refl ect a slowdown in oilsands investments but instead CERI's
assumptions for project start dates and announcements from the oilsands pro-
ponents as CERI does not include in its scenarios any future projects unless
publicly announced by the companies involved.
Ongoing investment, in the form of sustaining capital, will take place on an
annual basis. Th e annual sustaining capital required for the oilsands (excluding
royalty revenues, taxes, and fi xed and variable operating costs) grows to almost
$5 billion by 2035 from the current amount of $2 billion, with an annual average
of $4 billion per year.
Total operating costs account for the largest share of total oilsands costs.
Between 2011 and 2035, total operating costs will be $759.6 billion, with an an-
nual average of $30.4 billion.
New pipelines would generate upstream bene ts
C20 PIPELINE NEWS September 2012
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Regina – It’s hard to
make arguments either
for or against an idea
without background
knowledge. CCS101.
ca has recently been re-
vamped to do just that.
CCS here refers
to carbon capture and
storage. CCS101.ca’s
purpose is to explain the
basics about the process.
“It’s really our at-
tempt in Canada to put
up an informational
website good for Grade
5 to Grade 12 students,
and linking to places
for materials for teach-
ers,” said Dr. Malcolm
Wilson, CEO of the
Petroleum Technol-
ogy Research Centre
(PTRC). Th e PTRC is
behind the CCS101.ca
website.
Th e website also
provides basic informa-
tion for people who
want to know what
carbon capture and
storage is. Wilson said
they are trying to do it
in a manner that is “in
an unbiased fashion as
possible.”
Th ere’s is a more
detailed section called
CCS Pro, where Wil-
son said they “dive into
more detail.”
Th e website is
designed to be digestible
by the public as well.
Th e site has a new
version of a teach-
ers’ page with a new
international curricu-
lum guide for teachers
produced in Australia.
Its resources are varied
from “six-hat thinking”
to an argument map
about the pros and cons
for carbon capture and
storage.
CCS101.ca also
introduces younger
students to the carbon
cycle.
CCS101.ca seesa revamp
This screen capture shows the teachers’ page on CCS101.ca.
PIPELINE NEWS September 2012 C21
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(Daily Oil Bulletin) – Operators across Canada
licensed 907 new wells in July, as Manitoba was the
only western province to see a lift in well authoriza-
tions from last year.
Th e 907 well permits represent a 32 per cent
decline from 1,341 licences approved in July 2011.
Manitoba granted 64 well authorizations in
July – a record for that month – and up 25 per
cent over 51 well permits issued in the year-ago
period.
Over the fi rst seven months of the year, Mani-
toba authorized a record 397 new wells, up from
333 wells to the end of July last year, and close to
British Columbia's tally through the January-to-
July period.
B.C. assigned 57 new licences in July, while
63 were approved (input). To the end of July, the
province had assigned 411 new permits (off from
641 a year ago).
In Alberta, the 517 well authorizations in July
were off about 41 per cent from last year's 872
permits. Th e province had licensed 5,333 wells to
the end of July, down over 1,000 wells from last
year, or 16 per cent, from 6,358 permits in the fi rst
seven months of 2011.
Saskatchewan granted 265 well permits in July
2012 compared to 342 in July 2011, and to the end
of July has authorized 2,669 licences compared to
3,027 a year ago.
Operators in Western Canada licensed 643 oil
and bitumen wells in July, down from 893 a year
ago. Over the fi rst seven months of the year, 6,111
oil and bitumen wells were permitted compared to
6,687 a year ago.
Gas permitting in Alberta, B.C. and Saskatch-
ewan continued to decline. In July, only 199 gas
wells were licensed compared to 311 a year ago.
To the end of July, just over 1,000 gas wells have
been authorized (1,049), off about 44 per cent from
1,864 in the comparable period of 2011.
Only four oilsands evaluation holes were li-
censed in July, down from 27 a year ago. Operators
have licensed 774 oilsands evaluation holes to the
end of July compared to 1,083 a year ago.
Th rough the fi rst seven months of the year,
operators licensed 4,614 horizontal wells, off almost
12 per cent from 5,217 horizontal wells permitted
to the end of July 2011.
Th e top fi ve licensees of new wells in July, ex-
cluding experimental and oilsands evaluation holes,
were Encana Corporation (88), Husky Energy Inc.
(80), Royal Dutch Shell plc (52), Canadian Natural
Resources Limited (49) and Cenovus Energy Inc.
(46).
Drilling licences were down in July, in keeping with a trend for lower ac ve drilling rig num-bers for the same month. Here a crew clears mats from a drilling site near Sinclair, Man. on Aug. 5. Photo by Brian Zinchuk
Manitoba only bright spot in Western Canada licence count
C22 PIPELINE NEWS September 2012
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(Daily Oil Bulletin) – CanElson Drilling Inc.
saw earnings in the second quarter rise 43 per cent,
more than doubling in the fi rst six months, thanks
in part to sharply higher revenue from the United
States and Mexico.
Income in the quarter rose to $3.88 million or
fi ve cents per share from $3.33 million or fi ve cents
per share reported in last year’s period, while year-
to-date earnings leapt to $19.48 million or 26 cents
per share from $10.07 million or 15 cents a share in
last year’s period.
“Our expanding, modern drilling rig fl eet and
operations in key oil-weighted basins across North
America enabled us to generate strong fi nancial
results ... even though it is a period of seasonal
slowdown in Canada and North Dakota,” Randy
Hawkings, CanElson president and chief execu-
tive, said in a statement accompanying the second-
quarter report.
Revenue in the drilling contractor’s foreign
division, consisting of the U.S. and Mexico, grew 62
per cent, to $26 million, representing 69 per cent of
total revenue in the second quarter. Total revenue in
the period jumped 49 per cent, to $37.49 million,
from $25.14 million a year ago.
On May 15, 2012, CanElson acquired the
shares of CanGas Solutions Ltd. in exchange for
about 2.05 million of CanElson’s own common
shares. CanElson’s management believes CanGas is
the only provider of compressed natural gas (CNG)
transportation services by truck-hauled CNG trail-
ers in Western Canada that is positioned for rapid,
profi table growth and potential cost-savings to
customers.
Looking ahead, the company expects its 2012
capital program to be about $89 million, of which
$57.9 million should be incurred in the second half,
with a signifi cant amount funded by cash fl ow.
Key parts of the second-half capital program
are drilling services, at $38.3 million, with $25.8
million for construction of four tele-doubles, long-
lead items for one tele-double, and other growth
capital investment. Th e company will also spend
$12.6 million for spares, shop upgrades and mainte-
nance capital, management said. Page C23
U.S., Mexico boost CanElson's revenue
PIPELINE NEWS September 2012 C23
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Randy: 634-5405 - Cellular 421-1293Darcy: 634-5257 - Cellular 421-1425 • Fax: 634-4575
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CanElson Driling Inc. is con nuing its rig build program. This is CanElson Rig 21, working near Ben-son in early August. It was formerly an Eagle Drilling Services unit before the company was purchased by CanElson.
Photo by Brian Zinchuk
Page C22For CanGas, the
company plans to spend
$19.6 million in the sec-
ond half to convert the
primary diesel engines
on 14 of its drilling rigs
to bi-fuel capability by
the end of 2012, so that
the engines can operate
on a mixture of natural
gas and diesel fuel; to
expand its fl eet of truck-
hauled CNG delivery
trailers to more than
50 from six currently;
to expand the portable
compression units by
four to six units; and
for further research and
development associated
with the company’s pro-
prietary small-scale, raw
gas conditioning tech-
nology to employ por-
table, small-scale fi eld
facilities to condition
raw stranded natural gas
so that it would be suit-
able for consumption in
engines.
Also in the second
half, CanElson plans to
deploy 27 per cent of
its fl eet to crude oil-
directed drilling in the
Permian Basin in Texas,
where management
believes its equipment is
likely to achieve utiliza-
tion over 90 per cent in
2012, similar to 2011,
with the only non-utili-
zation being attributable
to rig move intervals.
In Mexico, man-
agement expects its
customer to move to
a production-sharing
contract with PEMEX
in the next six months.
Th e change may cause a
“minor and temporary”
lull in activity later this
year in the transition
of contracts, but should
provide CanElson
with an opportunity
to expand service and
increase its exposure to
performance-related
contract terms in 2013
and beyond, manage-
ment said.
At Nisku, Alberta,
CanElson is building
three more small-foot-
print, ultra-heavy-duty,
telescoping double drill-
ing rigs at an estimated
cost of $8 million each.
Th e company will de-
ploy these new rigs with
long-term contracts in
the second half.
C24 PIPELINE NEWS September 2012
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Box 4 • Midale, SK S0C 1S0Phone: (306) 458-2367 Fax: (306) 458-2373
email: [email protected]
By James Mahony(Daily Oil Bulletin)
– While posting healthy
production increases
in the second quarter
and year-to-date, ARC
Resources Ltd. saw earn-
ings in both periods drop
sharply, due to continu-
ing low commodity
prices.
In the second quar-
ter, net income fell 75
per cent to $38.10 mil-
lion or 13 cents per share
from $150.10 million
or 52 cents per share in
last year's period, while
earnings in the fi rst half
dropped 63 per cent to
$79 million or 27 cents
per share from $215.30
million or 75 cents per
share in the fi rst half of
2011.
Higher production
had a positive aff ect on
netbacks and funds from
operations in both the
quarter and fi rst half, but
these gains were eroded
by sharply lower natural
gas prices and higher
crude oil diff erentials
during the fi rst half of
2012, the company said.
ARC saw combined
oil and natural gas liq-
uids (NGL) volumes rise
19 per cent in the second
quarter, advancing 14
per cent in the year-to-
date, while natural gas
volumes rose 11 per cent
in the quarter and 25 per
cent in the fi rst half.
In releasing second
quarter results, the com-
pany said it had decided
to keep some Montney
land in northeast British
Columbia that it had
put on the block back in
February. Th e land repre-
sented about one-tenth
of ARC's B.C. land base,
and in pulling it off the
market, management
said it had only planned
to sell the assets if an of-
fer representing "supe-
rior value" materialized.
ARC also said it
would issue stock to
raise about $300 mil-
lion, which will be used
to increase working
capital and fund ongo-
ing capital development
programs. Under the
bought-deal agreement,
about 12.7 million com-
mon shares at $23.65 per
share will be issued. Th e
underwriters have been
granted an over-allot-
ment option to buy up
to 1.90 million common
shares on the same terms
as those sold under the
off ering, to cover over-
allotments, if any.
Th e company also
confi rmed it will cut
its 2012 capital budget
from the original $760
million to $600 million,
due to low gas prices and
volatile oil diff erentials
in the year's fi rst half.
ARC will continue to
invest in its oil proper-
ties at Ante Creek and
Pembina in Alberta,
Goodlands in Manitoba
and southeastern Sas-
katchewan as well as in
liquids-rich gas plays in
B.C.'s greater Parkland
area.
It recently submitted
an application to build
two 60 mmcf per day
gas processing plants at
Parkland with capability
of up to 130 bbls of oil
and liquids per mmcf.
Preliminary estimates
for the company's 2013
capital budget call for
about $800 million in
spending, which would
see commissioning of
Phase 1 of the Parkland
gas and liquids process-
ing facilities late in 2013.
ARC's second
quarter production
was 93,997 bbls of oil
equivalent per day, up 14
per cent from the second
quarter of 2011. In the
fi rst half, production of
94,484 boepd was 21
per cent higher than
the 2011 period. ARC's
drilling program in last
year's second and this
year's fi rst half, the com-
missioning of the new
30 mmcf/d Ante Creek
gas plant in February
and smooth operations
at ARC's Dawson facili-
ties contributed to the
higher production.
Th e company's sec-
ond-quarter liquids pro-
duction of 36,125 bpd
rose 19 per cent from
the second quarter of
2011. Strong production
results from new wells at
Pembina and Goodlands
and expanded processing
capacity at Ante Creek
have contributed to the
signifi cant increase in oil,
condensate and NGLs
production in 2012.
Capital expenditures,
prior to acquisitions,
in the second quarter
totalled $97.9 million, as
ARC drilled 18 oper-
ated wells, comprised
of 14 oil wells and four
liquids-rich gas wells.
In fi rst half, ARC spent
$284.8 million of capital
(prior to acquisitions),
drilling 77 gross oper-
ated wells, comprised of
67 oil wells, nine liquids-
rich gas wells and one
gas well.
ARC said it would
continue to focus on oil
and liquids-rich op-
portunities at Tower,
Ante Creek, Pembina,
Goodlands and south-
east Saskatchewan in
2012. Th e company's
anticipates it will drill
approximately 150 gross
operated wells this year.
Th e 2012 capital pro-
gram will prioritize the
highest return projects,
mainly focused on oil
and liquids projects.
In the three months
ended June 30, 2012,
funds fl ow fell to $169
million or 58 cents per
share from $236.70 mil-
lion or 83 cents per share
in last year's second
quarter. Capital spending
in the quarter dipped to
$103.30 million (includ-
ing acquisitions) from
$157.90 million in last
year's period. Revenue
in the quarter fell to
$317.80 million from
$374.90 million in the
2011 period.
In the six months
ended June 30, 2012,
funds fl ow declined to
$353.50 million or $1.22
per share from $428.80
or $1.50 per share report-
ed in last year's fi rst half.
Capital spending in the
fi rst half fell to $308.50
million (including acquisi-
tions) from $329.60 mil-
lion posted in last year's
half. Year-to-date revenue
fell to $684.60 million
from $699.60 million
reported in the fi rst half
of 2011.
Low prices gouge ARC earnings, as budget pared
PIPELINE NEWS September 2012 C25
Leading The Wayg y
Setting new standards Setting new standards for performancefor performance
Fast Growing Fast Growing CompanyCompany
www.CanElsonDrillingCanElsonDrilling.com
Box 312Carlyle, SK S0C 0R0Office: 306.453.2506Fax: 306.453.2508
Suite 700, 808 - 4th Avenue SWCalgary, AB, Canada T2P 3E8Phone: 403.266.3922Fax: 306.266.3968
TSX: CDI
Opportunities On Our RigsOpportunities On Our RigsCanElson Drilling Inc. is currently looking for hard working individuals that are looking CanElson Drilling Inc. is currently looking for hard working individuals that are looking
for challenging and rewarding work on top-of-the-line equipment in Saskatchewan. for challenging and rewarding work on top-of-the-line equipment in Saskatchewan. We provide competitive wages and bonuses, stock options for Drillers and Rig We provide competitive wages and bonuses, stock options for Drillers and Rig
Managers. Interested individuals can drop off resumes in person at our Managers. Interested individuals can drop off resumes in person at our Carlyle Office or fax to 306-453-2508. Carlyle Office or fax to 306-453-2508.
Offices in Calgary, Nisku, and Carlyle, as well Offices in Calgary, Nisku, and Carlyle, as well as Midland, Texas and Mohall, North Dakotaas Midland, Texas and Mohall, North Dakota
Since it was established in late 2008, CanElson Drilling Inc. has grown quickly to become one of Canada’s premier drilling contractors. In addition to building its own drilling rigs, the company is expanding its eet of drilling and service rigs through acquisition. CanElson now operates a eet of 37 rigs (34 net).
With operations in Western Canada, West Texas, North Dakota and Mexico, CanElson Drilling Inc. is setting new standards for rig utilization.
With right-sized, purpose-built rigs built for horizontal and resource play drilling and experienced, well trained crews, the company is achieving new records for cost-effective, ef cient drilling operations.
C26 PIPELINE NEWS September 2012 I
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Cold Lake – Osum Oil Sands Corp. could be in a position to steam ahead
with the development of its 45,000 barrel a day Taiga thermal bitumen project
in the Cold Lake oilsands region in early 2013.
Th e privately held company hopes to receive regulatory approval from
Alberta’s Energy Resources Conservation Board for the 23,000 bpd fi rst phase
project by the end of 2012 with fi rst production expected in 2016.
Th e ERCB began public hearings in Cold Lake in mid-July with news
Cold Lake First Nations have withdrawn their objection to the $2.9 billion
project. Page C27
Osum opts for SAGD and CSS at Taiga
Osum Oil Sands is tes ng SAGD in the Grosmont carbonates at Saleski with its joint venture partner Laricina Energy Ltd. Privately held Osum hopes to receive regulatory approval in 2012 to construct the rst phase of its 45,000 Taiga thermal bitumen proj-ect north of Cold Lake in 2013. Osum’s applica on calls for the use of SAGD and CSS in the Clearwater forma on. Image submi ed
PIPELINE NEWS September 2012 C27
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Page C26
“We are very
pleased with Cold Lake
First Nations’ decision
to withdraw their objec-
tion, and we’re excited
to move forward and
deliver an outstanding
project that will benefi t
the region for decades
to come” said Rick
Walsh, Osum’s CEO.
“We’re confi dent
that we have a fi rst-rate
project that will raise
the bar for our industry,
and we take great pride
in sharing the Taiga
story, how it will benefi t
the community and how
oilsands development
benefi ts all Canadians.”
Osum has already
spent approximately $3
million on pre-approved
contracts with Ab-
original businesses with
more economic oppor-
tunities to follow once
the fi rst phase of the
project gets the green
light.
Osum plans to
recover oil from bitu-
men in the Clearwa-
ter formation using a
combination of steam
assisted gravity drain-
age (SAGD) and
cyclic steam stimulation
(CSS).
CSS is a popular re-
covery method utilized
in the formation by
competing companies in
the area such as Impe-
rial Oil because shale
layers within parts of
the formation have low
vertical permeability.
SADG requires
high vertical perme-
ability for horizontal
well pairs to operate
eff ectively by producing
steam around the upper
well to drain bitumen
into the lower produc-
ing well by gravity.
Imperial’s Cold
Lake thermal oil pro-
duction in Cold Lake
has been ongoing for
more than 30 years,
yielding approximately
of 160,000 barrels of
bitumen a day.
Osum plans to use
SAGD on the por-
tions of the Clearwater
that have good vertical
permeability and CSS
on areas with limited
permeability.
Osum’s Clearwater
property north of Cold
Lake is well suited to
SAGD because “it’s
laterally and vertically
permeable,” said Walsh
in response to a ques-
tion at a TD Securities’
Energy Conference in
Calgary in mid-July.
“Th ere is a portion
of the lease that has
more limited vertical
permeability, and that is
where you want to apply
cyclic steam stimulation
to kind of open up the
rock a bit,” said Walsh.
Osum’s application
for a two phased in situ
thermal project will
include a cogeneration
unit, making the project
among the most energy
effi cient of its kind.
Th e company
initially applied for ap-
proval from the ERCB
in January 2010 with a
central processing facil-
ity that would occupy
30 hectares of land on
the east side of second-
ary Highway 897.
Based on feedback
from the community,
Osum determined a site
three kilometres to the
west on the west side
of Highway 897 was
a more suitable loca-
tion. Th e new location
is the old Norcen pilot
site which is an already
impacted area.
Osum has also
reduced the number of
project well pads from
69 in its original plans
to just 36 to reduce
ground disturbance.
Th e project will also
be built in two con-
struction phases instead
of three as previously
planned to reduce the
number of days of heavy
traffi c fl ows in a shorter
construction schedule.
Th e Taiga project
will be one of the fi rst
thermal developments
to use zero fresh water
for steam generation.
Th e water will be re-
cycled using the latest
water treatment tech-
nologies.
Osum is also
partnered with La-
ricina Energy Ltd. in
an ongoing pilot and
potential commercial
development of bitu-
men in the Grosmont
carbonate trend at
Saleski.
The joint venture
project to test optimal
recovery factors using
SAGD and exploring
the potential of sol-
vents began in 2010.
Osum’s net stake
in the Grosmont
carbonates represents
an estimated 2.3
billion barrels of
recoverable resources.
C28 PIPELINE NEWS September 2012
CAREER Gu de
#6 - 461 King St. • Estevan, SK
637-3460 www.petrobakken.com
Strength In Our Resources
Canyon is the fastest growing fracturing company in North America. We deliver quality customized pressure pumping and service solutions to the oil and gas industry, improving our industry one job at a time. If you’re looking for a career with a leading organization that promotes Integrity, Relationships, Innovation and Success, then we’re looking for you.
Now hiring Canyon Champions for the following positions:
Operators: Fracturing, Nitrogen, Coil, Cement & Acid Class 1 or 3 Drivers
Supervisors: Fracturing, Nitrogen, Coil, Cement & Acid Applicant Requirements:
Self-motivated Willing to work flexible hours Safety-focused
Team oriented Oil & Gas related experience is preferred Clean drivers abstract
Why Canyon? Dynamic and rapidly growing company Premium compensation package New equipment 3 weeks vacation to start
Paid technical and leadership training Career advancement opportunities Paid flights for rotational program (22/13) Seasonal work programs available
We thank all applicants; however only those selected for an initial interview will be contacted.
How to apply: email: [email protected] fax: (306) 637-3379 website: www.canyontech.ca
PIPELINE NEWS September 2012 C29
We’re currently looking for:
• Lease Construction Supervisor• Dozer Operator• Grader Operator• 1A Operators (Bed & Winch Truck / Picker Truck)• Crew Foreman (Facility / Pumpjack / Pipeline)• Labourers
101 Supreme St. (Shand access road)
Sun Country Well Servicing Inc. is currently seekingexperienced Service Rig Personnel. Preference will
be given to Class 1A and 3A applicants.
Interested individuals can submit a resume via email or fax to Shannon Leibel at:
Email: [email protected] 306 634 1200 • Cell 306 421 3418
CAREER Gu de
C30 PIPELINE NEWS September 2012
PIPELINE NEWS September 2012 C31
Do you want to work for a progressive company that takes safety seriously and uses today’s newest technologically advanced equipment? If your answer is “yes”, we are interested in talking to you!We are currently seeking to fill the following positions in the Provost, Consort and Lloydminster areas.
Well Servicing Division
Tool PushesDrillers
DerrickhandsFloorhands
All applicants must have a valid driver’s license, as well as all of the required industry training for the position they are applying for. We offer higher than industry standard wages, an exceptional employee benefits package, several employee incentive programs and unlimited opportunity for advancement.
If you want to grow with a company where you are known by your name and not your employee number, please forward your resume to:
Central Well Services Corp.Box 1360
3803 52nd AveProvost, AB T0B 3S0
E-mail: [email protected]
Quality people delivering quality service.
Oilfield Construction Limited
NOW
COME JOIN OUR TEAM! We’re hiring for various
projects throughout Southern Saskatchewan
Over 50 years strong, Arnett & Burgess
Oilfi eld Construction Limited safely
provides quality pipeline construction,
facility installation, pipeline integrity,
custom fabrication, maintenance and
related construction services to the
energy industry.
Compensation:Competitive wages
Overtime
Daily Subsistence /Living
allowance
Preferred Certifi cationsH2S Alive
Standard First Aid & CPR
Required Certifi cations Driver’s License
Ground Disturbance – (Heavy
Equipment Operators only)
For more details and other career opportunities please visit:www.abpipeliners.com
For Inquiries please call: 780.384.4050
Please submit your resume to :email: [email protected] • Fax:403.265.0922
• CONSTRUCTION MANAGER- Candidates must have previous leadership/managerial experience within the Pipeline Construction industry (mainly underground lines max 16”).This position’s home base is in Regina.
• FIELD SAFETY ADVISOR- The ideal candidate will have a CSO designation. This position will oversee pipeline construction projects in southern sk with a home base in Regina
• PIPELINE CONSTRUCTION LABOURERS • FOREMEN• HEAVY EQUIPMENT OPERATORS-Employee & Owner Operators with Pipeline Construction Experience
All positions require previous experience in Pipeline Construction.
Previous experience on Pipeline Integrity projects is an asset.
We require the following:
Matrix Well Servicing
Permanent Full-TimePenta Completions requires a
Warehouse/Yard Assistantfor our Estevan operation.
Penta Completions Supply & Services Ltd.58 Devonian Street P.O. Box 667
Estevan, Sk. S4A 2A6Fax: 1-306-634-6989
or Email: [email protected]
Duties Include• Shipping & Receiving
• Inventory control• Invoicing
• Some on call work is required
Requirements• Valid Class 5 drivers licence
• Computer experience would be an asset• Successful candidate will earn a current
WHMIS and TDG certi cate
Submit resume including references to:
C32 PIPELINE NEWS September 2012
Equal Opportunity EmployerAll applications are welcome
Currently seeking• Cathodic Protection Technicians
• General Labourers• Journeyman Electricians
Experience an asset but willing to trainCompetitive wages
Apply today with resume at:937 Henry Street, Estevan, SK S4A 1N5
Ph: 306-634-1917
Fax: 306-634-1918
Be Part of TEAM!
CAREER Gu de
PIPELINE NEWS September 2012 C33
Journeymen Electriciansand Apprentices
PowerTech Industries Ltd. in Estevan is seeking
Journeymen Electricians and Apprentices for
work in the Estevan and Carnduff areas.
Experience: Safety Certifi cates are needed.
1st Aid/CPR, H2S. Applicants must have a valid
driver’s license. Full benefi ts packages and RSP
plan.
Duties: Day to day electrical construction and
maintenance in the oilfi eld.
Wage/Salary Info: Depending on experience &
qualifi cations.
To Apply: Fax: (306) 637-2181, e-mail
sschoff [email protected] or drop off resume to
62 Devonian Street, Estevan, SK.
EMPLOYMENT OPPORTUNITYPERMANENT FULL-TIME
HYDROVAC OPERATORS
• Require class 3 or class 1 licence
• Safety tickets
HYDROVAC SWAMPERS
• Require safety tickets
Offering competitive wages, benefits available after 3 months. Offering living accomodations.
Email resumes to:[email protected]
or fax to:306•483•2082
About Tundra Oil & Gas LimitedTundra Oil & Gas Limited is a wholly-owned subsidiary of James Richardson & Sons, Limited, a private, family-owned company established in 1857 with operations in agriculture, food processing, financial services, property management and energy exploration. Tundra’s corporate head office is located in Winnipeg, Manitoba, where we commenced operations in 1980. Our field office in Virden, Manitoba oversees the operation of 1,800 wells, while our office in Calgary, Alberta, provides our geological, geophysical and reservoir engineering support. The Tundra family of companies also includes Red Beds Resources Limited and Tundra Energy Marketing Limited. To learn more about us, we invite you to visit www.tundraoilandgas.com.
Tundra Oil & Gas Limited is Manitoba’s largest oil producer, currently exceeding 25,000 barrels of light, sweet crude per day. Our oil and gas exploration company operates over 95% of our production, with core properties located within the Williston Basin in southwestern Manitoba and southeastern Saskatchewan.
This is a very exciting time to be part of the Tundra team as continued growth and expansion has created new opportunities in our Virden, Manitoba location. Take a closer look at these available opportunities:
If you are interested in joining our rapidly growing team, please visit the Employment section of our website at www.tundraoilandgas.com and to submit your cover letter and resume, along with your salary expectations.
Drilling Field Superintendent• High school diploma is required with an equivalent of 10-15 years specific job related experience; or• Technical school/college diploma in Petroleum Technology with an equivalent of 7-10 years specific job related experience; or• An undergraduate degree in Petroleum Engineering with an equivalent of 5-8 years specific job related experience.
Completions Engineer / Technologist• Undergraduate degree in Engineering or a diploma in Petroleum Technology• 5-10 years completions experience working in oil
Production Engineer / Technologist• A sound knowledge of production engineering, 5 – 10 years of relevant experience.• Exposure to rod pumping artificial lift systems; well completions and workovers; waterflood facilities and monitoring.• Oil production facilities exposure an asset.
Maintenance Manager• Post-Secondary education• Preventative Maintenance programming • Requires extensive technical knowledge of facilities and equipment. • Requires 8 or more years of experience in maintenance, manufacturing support, or production.
Drafting/Design & Technical Support Technician• Engineering / CAD Technology Diploma. • New grads are welcomed.
CA
REE
R
Gu
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C34 PIPELINE NEWS September 2012
www.aspentrailer.com
Aspen Custom Trailers
6017-84th Street S.E.
Calgary, AB T2C 4S1
[T] 403 236 2244
[F] 403 236 8829
[C] 403 813 6319[Toll Free] 877 236 2244
Lance Wotherspoon
Regional Sales Manager
BIG D’S LEASE SERVICE
P.O. Box 544
Stoughton, Sask. S0G 4T0
(306) 457-7033(306) 457-7673
Backhoe
Mowing
Snow Removal
Towing
Fencing
Road Grader
Gravel Supplies & Hauling
LECLAIRTRANSPORT
Lyle LeclairCell: 306-421-7060
General Oilfi eld Hauling
Cordell JanssenCordell JanssenDistrict ManagerDistrict Manager
DownholeDownhole
93 Panteluk Street, Kensington Avenue N93 Panteluk Street, Kensington Avenue NEstevan, SaskatchewanEstevan, Saskatchewan
PHONE:PHONE: 306-634-8828 • 306-634-8828 • FAX:FAX: 306-634-7747 [email protected] • www.nov.com
JUSTIN WAPPEL - Division Manager
401 Hwy. #4 S. Biggar, SaskatchewanPO Box 879 S0K 0M0Ph (306) 948-5262 Fax (306) 948-5263Cell (306) 441-4402 Toll Free 1-800-746-6646Email: [email protected]
a l t u s g e o m a t i c s . c o m
Specializing in well site and pipeline surveys
Yorkton
306.783.4100
Weyburn
306.842.6060
Regina
800.667.3546
Swift Current
306.773.7733
Lloydminster
780.875.6130
Medicine Hat
403.528.4215
Edmonton
800.465.6233
Calgary
866.234.7599
Grande Prairie
780.532.6793
Lloyd Lavigne • Kirk ClarksonOwners/Managers
6506 - 50th AvenueLloydminster, AB
Phone: (780) 875-6880
5315 - 37th StreetProvost, AB T0B 3S0
Phone: (780) 753-6449
Fax: (780) 875-7076
24 Hour ServiceSpecializing in Industrial & Oilfield Motors
Your best choice for accommodations
in Carlyle, Sk.• Full kitchen and upscale extended stay
• Complimentary continental hot breakfast• Free high speed internet
• Meeting roomReservations: 306-453-2686
RICK CORMIERManager
Box 609 Bus: (306) 634-8084Carlyle, SK Cell: (306) 577-8833S0C 0R0 Fax: (306) 453-6075www.truetorq.ca [email protected]
RESOURCE Gu de
CN TransloadingCN is con nuing to expand its Bienfait transloading fa-cility. This packer was making several runs along the north side of the site on Aug. 11.
Photo by Brian Zinchuk
PIPELINE NEWS September 2012 C35
• Oilfi eld, Industrial, Commercial,
Residential, Agricultural
• Fully Equipped Field Units
• GPS Equipped for Faster Response Time
• Knucklepickers
• Excavation Equipment
• Generators – 50-200 KW
• Directional Boring
• Trenchers, Skidsteers, Mini Hoes
Ph: 306.453.2021 Fax: 306.453.2022Cell: 306.577.7880Email: [email protected]
Box 1238 Carlyle, SK S0C 0R0
All Aspects of Electrical All Aspects of Electrical ConstructionConstruction
C36 PIPELINE NEWS September 2012