Pipeline News April 2009

PIPELINE NEWSSaskatchewan’s Petroleum MonthlySaskatchewan’s Petroleum Monthly

Focus Edition

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April 2009 FREE Volume 1 Issue 11

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$720 Million Deal Page B1 Lloydminster

Bonspiel Page C6

It’s all about jobs Page A20

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PIPELINE NEWS April 2009A2

NewsNotes

Saskatchewan’s airwaves were abuzz on March

4, when CNN.com ran a good news story about Sas-

katchewan on its main page. For a brief time on that

day, it was one of the most popular stories on one of the

world’s premier news websites.

Th e story highlighted Saskatchewan’s economic

strength, noting that unemployment had dropped in

this province when all other provinces have seen it

rise.

Th e story also made a point of highlighting the

Bakken oil play and carbon dioxide sequestration.

Th e story can be found at: http://www.cnn.

com/2009/WORLD/americas/03/04/saskatchewan.

economy/index.html

Harvest Energy Trust will be holding off on south-

east Saskatchewan right now, and instead be focusing

on Alberta properties according to John Zahary, presi-

dent and chief executive offi cer.

Th e trust has elected to defer capital spending on

some projects future periods with better prices. Up-

stream capital spending will be reduced to $170 mil-

lion, down from $260 million, resulting in forecast

production of 50,000 bbls of oil equivalent per day,

down 11% from 56,000 BOE a day in 2008.

Th e focus will be on the tie-in of some of Har-

vest’s high productivity natural gas wells in central Al-

berta, completions and tie-ins at Hay River and some

EOR activities which will be economic even at current

prices, said Zahary. Although the southeast Saskatch-

ewan light oil horizontal projects are economic at to-

day’s prices, the trust will be hold off on those for now,

along with gas and light oil opportunities in the Red

Earth/Peace River area, he said.

Harvest holds off on SE Sask

CNN takes notice

NuVista Energy Ltd. entered an agreement

to purchase approximately 1,600 BOE per day

of production, primarily in the Ferrier/Sunchild,

Wapiti and northwest Saskatchewan core areas

for about $55 million. Th is acquisition closed on

Jan. 29, 2009.

Nu Vista buys in NW

By Brian Zinchuk

Pipeline News

Regina – Th e provincial

government’s 2009 budget proj-

ects oil priced to average $48.75

per barrel for WTI oil for this

fi scal year. Last year the prov-

ince budgeted $82.36 per barrel.

Land sales are also expected to

nosedive, both in volume and in

dollars per hectare.

Th e $48.75 is derived from an

expected $45 per barrel in 2008,

and $60 per barrel in 2010.

At that rate, the March 18

budget expects $573.1 million

in total oil revenue. Th at’s down

from $1.488 billion from oil for

2008-2009.

For natural gas, the province

is projected revenues of $102.2

million at a rate of $6.25 per

gigajoule in 2009 and $7 in 2010.

Coincidentally, oil on budget

day closed at $48.14 per barrel.

Crown land sales for this year

are projected at $127.8 million,

down from $192.5 billion bud-

geted and $928.1 million real-

ized last year. While the average

price per hectare for land came in

at $1,289 in 2008-2009, that’ is

expected to drop by over three-

quarters to $300 a hectare for

2009-2010

Drilling for oil in 2009 is

expected to drop to just above

2005 levels, around the 2,100

well range, before coming back

up to around 2,250 in 2010. Th at

would put drilling activity in 2010

close to 2006 and 2007 levels, but

behind 2008.

Natural gas wells are fore-

cast to drop to around 1,000

from around 1,200 in 2008. In

2010, the province is predicting a

further drop in natural gas drill-

ing to around the 800 well range,

despite a projected rise in natural

gas prices.

Boyd conservative Energy and Resources Min-

ister Bill Boyd noted they have

taken an average of a wide rang-

ing analysis, and actually lowered

what number it came up with for

an estimated oil price.

“We think it is a very con-

servative number, a number we’re

comfortable with,” he said after

the budget was tabled.

Th at number is a less than

half of what was realized in 2008,

with an average of $99.65 per

barrel.

Th at also accounts for oil’s

slide from expected top performer

to second fi ddle in expected non-

renewable resource revenue. Last

year, the province expected $352.6

million from potash, and got $1.5

billion. Th is year, it’s expecting

$1.926 billion from potash. Pot-

ash actually beat out oil revenues

last year by $11.2 million, but that

doesn’t include the $928.1 million

in crown land sales.

Province predicts

$48.75Oil

FISCAL-YEAR NON-RENEWABLE RESOURCE FORECAST ASSUMPTIONS

The provincial budget forecasts less drilling, particularly for natu-ral gas, in 2009-2010, combined with lower prices for oil and natu-ral gas.

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Environmental Division - Darwin Frehlick - Cell: 421-0491

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IAN SCOTTOxbow, Sask.Cell: 421-6662

JAMIE HANNA

Cell: 421-2435

GERALD SMITH

Cell: 421-2408

Calgary Sales Of ce: Tel: 403-237-7323 Fax: 403-263-7355

Chuck Haines, Technical SalesCell: 403-860-4660

Head Of ce:Estevan, Sask.

Tel: 634-3411 Fax: 634-6694Ray Frehlick, Manager

Cell: 421-1880Ken Harder

Warehouse ManagerCell: 421-0101

JASON LINGCarlyle, Sask.Cell: 421-2683

CHADSTEWART

Cell: 421-5198

Swift Current Warehouse:Derek Klassen - Cell: 306-741-2447

Kindersley Warehouse:Len Jupe - Cell: 306-463-7632

Lacombe Warehouse:Darcy Day Day - Cell: 403-597-6694

Mud Technicians

PIPELINE NEWS April 2009 A3

NewsNotes

In late March, Evraz laid off 75 more staff at its

Regina steel mill, formerly known as Ipsco. Th is follows

more than 100 laid off in January.

Th e company will reduce its shifts from four to three,

running fi ve days a week instead of seven, according to

Greg Maindonald, vice president and general manager

of Regina Evraz Steel. Th e cutbacks are related to oil and

gas drilling, he said.

Th e company is a leading supplier of tubulars and

steel for the Saskatchewan oilpatch.

On March 2, 2009, TriStar Oil and Gas Ltd. com-

pleted the acquisition of a private southeast Saskatch-

ewan company through the issuance of approximately

2.5 million shares and payment of $8.6 million of cash,

including the assumption of the private company's net

debt. Th e acquisition included 550 barrels per day of light

oil production and an operated production facility within

TriStar's Bakken focus area with 2.0 mmBoe of associated

proven plus probable reserves based on TriStar's internal

reserves estimates. Th e private company lands also include

10 net sections of prospective Bakken lands upon which

Tristar has identifi ed 32 net additional drilling locations.

Th e acquisition comes at the same time TriStar worked

out a mammoth deal with Talisman Energy Canada

and Crescent Point Energy Trust on Talisman’s south-

east Saskatchewan properties. In 2008, TriStar picked up

Kinwest Corporation, Bulldog Resources Inc. and Arista

Energy Limited.

Pearl Exploration and Production Ltd is continuing

its cyclic steam stimulation (CSS) at Onion Lake, a core

heavy oil property in Saskatchewan, near Lloydminster.

Pearl last year produced an average of 2,274 BOE a day

from 50 wells on the property. Pearl has an 87.5% to

100% working interest in 41 sections of land.

Pearl initiated two single-well pilots at Onion Lake

in 2008. Positive results were achieved from both pilots.

Each well topped 200 bbls of oil a day.

Th e second CSS cycle is expected to be completed

by the end of March and the company will use the infor-

mation to make a decision on development of a commer-

cial CSS project. Besides the potential CSS projects the

company said it has the potential for 100 conventional

development locations at Onion Lake.

Evraz lays off more

Tristar picks up private company

Pearl expects second CSS cycle results

By Brian ZinchukMedicine Hat – One

of the most vocal junior

producers in Saskatch-

ewan is taking a breather,

selling his company and

maybe spending some

time on his Harley.

Reece Energy Ex-

ploration Corp. is being

acquired by Penn West

Energy Trust in a paper

deal worth approximate-

ly $92.2 million, includ-

ing debt.

Lorne Swalm is

president of Reece and

largest shareholder, at

about 21 per cent, while

management staff hold

about four per cent.

Th e deal involves an

exchange of eight Re-

ece shares for one Penn

West Trust unit. Penn

West will reduce its 2009

capital program by $40

million, the debt it an-

ticipates it will assume

under the deal.

Based on 20 trad-

ing days leading up to

March 9, the exchange

places a valuation of

$1.39 per Reece share, a

50 per cent premium on

Reece’s closing price that

day. Reece is issuing ap-

proximately 4.6 million

trust units.

Th e deal is anticipat-

ed to close at the end of

April, provided there is

agreement of two-thirds

of Reece’s stockholders.

While the exchange

it’s a premium for right

now, that’s down from

the lofty heights the stock

had reached last June,

at over $4.50 a share, at

the time the price of oil

peaked.

“Th e [Saskatchewan

light oil] assets go very

nicely with what we al-

ready hold, so we felt it

would be a good move

to make, especially since

we are already in that

area,” according to Le-

anne Murphy, investor

relations analyst for Penn

West.

Reece may be based

in Medicine Hat, but all

of its production is in

Saskatchewan. Th eir core

production area at Dod-

sland, north of Kinders-

ley, where there are about

75 net wells between light

Viking oil and gas. Th ey

are also partnered with

Aldon Oil of Weyburn,

TriStar, Crescent Point,

Duce Oil and Renegade,

in holdings in the South-

east. “We bought quite a

bit of Bakken potential,”

Swalm says.

Reece also has lands

in the lower Shaunavon

play.

In total, Penn West

wil aquiare 2,100 BOE

production, with two

thirds to light oil and

one third in natural gas.

Th ere are 75,000 net un-

developed acres in the

deal.

As for the staff ,

Swalm says it will be up

to Penn West. “I suspect

some of the staff will go

over.”

But they don’t want

another president, so he’s

out.

Page A8

Reece acquired by PennWest

Reece Energy’s assets in west central, southeast and southwest Saskatch-ewan were a good t for Penn West Energy Trust, who is acquiring the ju-nior company in a $92.2 million paper deal. Here, Wayne Deschner checks out a well for Reece north of Kindersley last year. File Photo

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PIPELINE NEWS April 2009A4 EDITORIAL

Editorial

After years of the high life, the Bang of the

Boom, the oilsands have taken a hell of a beating

over the past few months. Billions in projects that

were supposed to drive not only the Fort McMurray,

but Albertan and Canadian economies for the next

several years went up in smoke last fall after refi n-

ery after upgrader after expansion was cancelled or

postponed.

In one case, we’ve heard of a pipeline welder who

showed up to work one day, and was told everyone

was being sent home, except for a few welders. Th eir

job would be to cut up all the work they’ve done so

far, because the project was being put off and the

pipe wouldn’t be going in the ground. Th is welder,

however, got sent home, like so many others.

Th e projects have been canned or put off because

of precipitous drop in the price of oil, a heavy left

after a haymaker that has left the oilsands stunned.

Now, of all things, National Geographic has come

along to deliver the sucker punch that is going to

cause the oilsands to stagger to the mat.

Nothing like being beaten when you’re down.

Th e March edition of National Geographic (www.

nationalgeographic.com) delivers a crushing blow to

the oilsands’ glass jaw. In its stunning pictures, and a

sharply biased story, the piece refers to the Syncrude

and Suncor upgraders as “dark satanic mills.”

It’s going to be really hard to recover from a

blow like that. Basically, National Geographic de-

scribed the oilsands as the spawn of Satan.

Th e best counterpunch we’ve heard so far has

been CBC/Globe and Mail editorialist Rex Murphy.

In a whithering commentary you can fi nd at www.

cbc.ca/national/blog/video/rex_murphy/, (look for

the Feb. 27 edition) he points out that, “Getting oil

out of the ground has never been pretty. Getting

anything out of the ground has never been pretty. An

Living in caves ugly, tooopen wound on the fair bosom of Mother Nature could

be the caption of every single mine that has ever existed

on this earth.”

He goes on to explain “If we want to live the way we

do in the 21st century, and apparently we do. If we want

to have jobs, houses, hospitals, schools, universities, cars,

communications, a military, a transportation network,

getting stuff out to the ground, and fi nding energy to run

the world, is an absolutely necessary thing.”

For pretty much everything we do or have, including

producing National Geographic, Murphy makes the point,

“all the elements of which were harvested out of from

ugly mines, or out of deep black, sludgy wells, that people

sweated to build, and risked money to start.”

It’s like when Jack Layton fl ew over the Fort Mc-

Murray area and then pronounced judgement during the

last election. How did he fl y? What got him airborne? It

wasn’t fl apping his arms, although perhaps he could have

done it with hot air.

Th is is not to say that the oilsands, or oil industry,

is perfect. Th e oilsands needs to get up to snuff with the

rest of the industry, where reclamation actually means

putting things back the way they were, especially in the

surface mining operations that get all the pictures taken

of them.

In a manner, however, they already have. Th e impact

of in-situ recovery, a la Steam Assisted Gravity Drainage

(SAGD) is miniscule in comparison to displacing every

cubic meter of soil in a surface oilsands mine. In-situ

recovery is the wave of the future, and will keep our

economy rolling for years to come. Reclamation after an

in-situ operation is child’s play compared to cleaning up

a tailings pond.

Yes, easy oil is rapidly dwindling. Yes, operations like

heavy oil and oilsands are becoming necessary to fuel our

economy. And yes, sometimes it is not pretty.

But then again, neither was living in caves.

Opinion


Geoff Lee

Lee Side of Lloyd

PIPELINE NEWS INVITES OPPOSING VIEW POINTS. EDITORIALS AND LETTERS TO THE EDITOR WELCOME.

Email to: [email protected]

You don’t need one of those hand-held tricod-

er devices from Star Trek to find sources of life in

the oil and gas energy or the overall economy. All

you need to do is check the glum index. It works

like this. The gloomier the news in the media, the

closer we are to a major rebound.

The inverse is the happiness index. When the

media report the economy in terms of booms, like

they did last summer, you know the end is near.

Coincidentally, the stock market began to tank just

as the so-called boom was being called a boom.

Now, the stock market is being compared to

1929 so this is a good time to buy. Trust the gloom

index that stands at nine out of 10 with reporters

tripping over each other to put the worst possible

spin on the economy.

The words plunge and freefall are used almost

with a sense of delight to describe what is a sellers'

market on the stock market by large investment

players.

It was reported in March, that the U.S. GNP

shrank by a whopping (yes whopping) 6.2 per cent

in the waning months of 2008. Can recovery be

far behind given the verbal clues that signal the up

and down glum and happiness indices?

President Barack Obama’s economic stimulus

package has already sown the seeds of a recovery. A

little more sunshine and water are all that’s needed

for some of these seeds to start sprouting.

OPEC is cutting production and sooner than

later, the laws of supply and demand will kick up

prices.

In Canada, all of the major banks reported

profits in their last quarter and a panel of mining

experts from Bay Street was decidedly bullish on

commodity prices. There’s two rays of hope right

there.

Locally, oil and gas companies continue to ad-

vertise for new help and landlords, at least in the

Lloydminster area, where I am based, continue to

get calls asking about vacancies.

Another sign the worst may be over is expec-

tations. Most energy companies and pundits have

all come out and stated the second half of the year

will be better than first half. That in itself could be

a self-fulfilling prophecy.

There's a paradigm shift underway these days,

similar to how the Swiss watch makers who didn’t

think digital watches would ever catch on, and as a

result, their fortunes plummeted for years.

Maybe that’s what is really happening now.

Today, there’s a green shift underway and once

that catches on, the economy could soar again.

The greening of the oil and gas industry is al-

ready generating a lot of new jobs and technology

from the regulations that govern the environmen-

tal side of the industry.

Most of the oilsands deposits area in-situ and

the spinoffs from environmental protection are

endless. That can only mean good things not only

for the image of the industry but for the environ-

ment and the economy as well. Environmentalists

could turn out to be the industry’s best friend.

With Obama’s green energy policy, it ’s not one

form or energy over another. It greening the fos-

sil fuel industry while developing the renewable

energy field as well. Green is also the colour of

money.

Put away your tricoders. If you are feeling

glum lately, you know there is life in the economy

and in your own hopes and dreams. But don’t get

too happy. We know what happens then, eh?

Brian Zinchuk

From the top of

the pile

The glum index gives us reason to smile

It’s funny how the death of someone ‘important,’

like a B-list actress married to an A-list actor, can

get the national media to stand up and take notice.

On Mar. 20, the Globe and Mail realized that

Natasha Richardson, the unfortunate skier, died,

and there was no helicopter to help her if she had

needed it.

She spent 40 minutes in an ambulance getting

to the fi rst hospital, and another hour in an ambu-

lance to a trauma centre before being fl own to New

York.

In the end, she died.

Sounds pretty typical for anyone who lives and

works in the boonies, i.e. outside of Regina and Sas-

katoon. A local ambulance takes you in for stabili-

zation, and hopefully you’ll survive long enough to

make it to a trauma centre.

Th e ‘golden hour’ of treatment in rural Sas-

katchewan, where all the oilpatch, agriculture, for-

estry and mining jobs are, as well as most of the

highways, can be much, much longer. Indeed, unless

you bend the rules of physics, making it to a ma-

jor trauma centre in under an hour is pretty much

impossible by wheeled ambulance, especially if you

factor in dispatch times.

Th e Globe notes that British Columbia, Alberta,

Ontario and Nova Scotia have helicopter-based air

ambulances. Th e rest of the country, does not.

Th at’s beyond surprising. It’s shocking. A popu-

lation the size of Quebec does not have a helicopter

air ambulance? Th at’s ludicrous. Th e same can be

said for Saskatchewan, being as spread out as it is.

Indeed, I’ve had a family member that ended up

being transported by helicopter – after a motorcycle

accident in southern Alberta. In Saskatchewan, it

would have been by road, or airplane if absolutely

necessary.

Th e problem is, you can’t put down an airplane

beside an oil rig, or on a right-of-way, or highway.

You can’t land on a cutline, or beside a fl y-in fi shing

camp at the lake. You need to rely on ground trans-

port to move the patient to an airstrip.

Helicopter air ambulances are not new by any

stretch. In fact, one of the fi rst practical uses of heli-

copters was in the transportation of injured soldiers

during the Korean War, in the early 1950s. Th at’s

nearly 60 years ago. Back then, a wounded soldier

was strapped into a pod attached to a landing skid.

Remember M*A*S*H? Th at’s it.

Yet we here in Saskatchewan still have not got

around to getting our own helicopter air ambulanc-

es.

One of the diffi culties with medical dispatch is

locating just where the patient is. With GPS com-

monplace these days, built into cell phones (though

not active through SaskTel, yet), the chopper can

be told exactly where to go. A cheap program for

Garmin GPS units allows you to enter in land lo-

cations, and it will be translated into latitude and

longitude, meaning that any sign on a lease can be

a landmark.

Saskatchewan should have three air ambulance

bases – Regina for the south, Saskatoon for central,

and Prince Albert or La Ronge for the north. Each

of the base hospitals – North Battleford, Yorkton,

Swift Current, Estevan, Lloydminster, for example,

should have helipads added right away, in case the

patient can’t wait to make it to the tertiary hospi-

tals.

Th ankfully, the provincial government an-

nounced in February it is looking into helicopter

air ambulances. Th ey are working with Ontario’s air

ambulance provider in assessing the implications of

adding helicopters to Saskatchewan’s air ambulance

fl eet, according to a government press release.

Frankly, it’s a no-brainer. How many lives could

have been saved in the nearly 60 years since heli-

copters came to the fore in transporting medical pa-

tients? Th is is not rocket science. Order some birds,

build some helipads, get some people trained as

fl ight medics, and get it done.

Brian Zinchuk is editor of Pipeline News. He can be reached at [email protected].

Waiting 60 years for air ambulance


Oil Chat Bruce Penton, associate-editor with the Medicine Hat Daily News and syndicated columnist will be contributing a Q&A with in uential Canadian Petroleum personnel each month for Pipeline News.with Bruce Penton

Pipeline News: What’s been more fun for you, be-ing part of the Government of Saskatchewan or farm-ing as you did for fi ve years between 2002 and 2007?

Bill Boyd: I don’t know. Th ey’re very diff erent,

of course. Th e farm has been a lifelong business aff air

and a lifelong love, but being associated with a new

government and changing the direction of Saskatch-

ewan has always been a lifelong goal as well. I don't

know if you can compare them in terms of that, but

I’m very much enjoying what I’m doing here right

now.

PN: What was it that sparked your desire to re-turn to politics after being out of it for fi ve years?

Boyd: I think a great opportunity to see the gov-

ernment change. Th e premier, then the leader of the

opposition, asked me if I would consider it. So I took

the opportunity to think about it and wanted to be

part of a government change.

PN: Were you promised the Natural Resources de-partment at the start of the campaign or did that hap-pen after the election?

Boyd: No. I’m certain the premier made no

promises to anyone about any positions, and certain-

ly none was made to me.

PN: But I’m assuming you were happy to get the portfolio of Energy and Natural Resources?

Boyd: Oh, very much so. It’s a great honour to

get this Energy and Resources department and In-

tergovernmental Relations. I think it’s the best min-

istry there is.

PN: We’re in an era of crazy oil prices which I sup-pose adds quite a bit of stress to your job. What has it been like?

Boyd: It’s been a surprise to everybody to see oil

prices rise as quickly as they did last year and also

to see the drop as quickly as they have. It certainly

challenges a government from a fi scal standpoint to

some degree to see that runup and then backing off

of prices. I think we’ll probably see prices stabilize at

a little higher level. At least that’s what our offi cials

are indicating. But from a revenue standpoint, it does

make it more challenging.

PN: Oil’s around $45 a barrel right now. Whatprice do you see it stabilizing around?

Boyd: We are forecasting for this year just that

— $45. I think a lot of industry analysts are say-

ing they could see it rise toward the end of the year,

if the economy in the United States starts to turn

around and I think that's a big question mark. But

we are using a very conservative number of $45 for

our budget.

PN: Nov. 7, 2007, do you remember that day? What’s one moment from that day you won’t ever for-get?

Boyd: I think one moment is when it was con-

fi rmed that the Sask. Party was going to be govern-

ment. I was in Kindersley at my campaign offi ce with

my family and surrounded by friends and support-

ers.

PN: It was a long time coming, eh?Boyd: Very much a long time. You know, fi rst

elected in 1991 and it was a long time before we saw

a government change and I’m very happy and proud

to be a part of it.

PN: It’s been 16 months since you were elected. How would you rate your government’s performance?

Boyd: I think our government’s performed very

well. If I were to grade it, I’d probably say a B or

B+, something like that. Certainly not perfect, but

doing pretty well. Th at’s probably a pretty conserva-

tive grade if you think about it. Saskatchewan has

vaulted to the head of the pack in terms of economic

performance in Canada and leads in terms of em-

ployment numbers. We are going to have a balanced

budget in a couple of days. A surplus budget. Th at

will be a standout in all of Canada as well.

PN: Having a surplus will certainly garner head-lines across Canada, that’s for sure.

Boyd: I think it will. I think it’s going to be . . .

even though Saskatchewan is not untouched by the

economic realities that we’re facing on a global scale,

Saskatchewan's doing pretty darn good compared to

other places.

PN: What kind of an eff ect has the royalty rate situation in Alberta had on the oilpatch activity in Saskatchewan?

Boyd: Well, it’s had an impact, there's no doubt

about it. It’s diffi cult to measure and I'm not in posi-

tion, nor would I want to be, in a position to criti-

cize decisions that were made in Alberta. However, I

think that Saskatchewan, the very fact that we made

the decision early on that we weren’t going to be

changing royalty rates, clearly indicated to the people

in the oilpatch that we were going to have a stable

regime in respect to that. We saw a huge amount of

land sales last year, a great deal of drilling activity

in our province and I think that stability has been a

positive feature of the government.

PN: You referred to land sales. What kind of re-cords did you achieve last year?

Boyd: In 2008, we were over a billion dollars in

land sales and I think the previous record was in the

area of $250 million, so approximately four times

the previous record, so a tremendous year. Now, 2009

is going to be more challenging. We’re going to see

land sales much lower, unless we start to see a big

increase in oil prices. Of course that’s a big caveat

that you’d apply to all these questions, I guess. But

the companies that paid high prices for land in the

sale last year will be wanting to seek a rate of return

on that investment, so we think the drilling activity

will remain strong.

PN: In your opinion, what’s the single greatest ac-complishment of your government so far?

Boyd: Th e biggest single? I don’t know if I can

nail it down to one. But as a fi scal conservative, if I

had to nail it down to one, I’d say paying down 40

per cent of the debt of the province of Saskatchewan

in one year.

PN: What’s one thing about life as an MLA would you like to change, if you had the power? It must be a tough life.

Boyd: If I were to be able to change one thing,

I’m not sure what it would be.

PN: How about more free time, or something like that?

Boyd: Well that would be nice. Th ere’s lots of

meetings, lots of requests, lots of travel. If one thing

could change, I guess it would be the travel. If there

was an ability to move much quicker than we’re able,

that would be nice. Th e driving and time in airplanes

seems like a waste of time in a lot of respects, but it’s

a necessary part of the job.

Bill Boyd is one of the founding members of the Saskatchewan Party and has been involved on the Saskatchewan political scene for nearly two decades.

Mr. Boyd was the MLA for the Kindersley constituency from 1991 until he stepped down in 2002. Originally elect-ed in 1991 as a Progressive Conservative MLA, Mr. Boyd became the leader of that party in 1994. He was re-elected

in 1995. In 1997, he and three of his colleagues joined with four Liberal MLAs and founded the Saskatchewan Party. When Bill was re-elected in 1999, he was one of 26 MLAs elected under the Saskatchewan Party banner. He was once again elected in the Kindersley constituency in the Nov. 7, 2007 provincial election, when the Sask. Party won the election and formed government.

Premier Brad Wall named Boyd the Minister of Energy and Resources and also Minister of Intergovern-mental Aff airs.

Bill and his wife Lynn operate a pedigreed seed feed farm near Eston. Th ey have two children in their twen-ties.

He chatted in mid-March with Bruce Penton, a couple of days before the government of Saskatchewan under Premier Wall brought down a balanced budget on March 18.

BILL BOYDMinister of Energy Resources

Minster of Intergovernmental Affairs


PN: Given your long history in politics with an old political foe like Dwain Lingenfelter, how will the po-litical winds change if and when he becomes leader of the New Democrats, especially since he’s coming from a career as an oil executive in Alberta?

Boyd: I don’t think it’s a foregone conclusion that

Dwain Lingenfelter is going to win the NDP lead-

ership. But should he, I don’t think he’s going to do

nearly as well as a lot of people think he’s going to, or

some people think he’s going to. I think the very fact

he was part of an administration in the past that na-

tionalized the potash industry and then jumped full

square out of that box and into a senior executive role

in an oil company, which is largely the arch-nemesis

of the NDP administration, and then back to his so-

cialist roots again, I think a lot of people will think

he’s a little bit confused in his direction. And the very

fact that Mr. Lingenfelter isn’t exactly a spring chick-

en anymore is going to be a bit of a deterrent I think

for him as well. Th ere’s a whole generation of people

in Saskatchewan who don’t even know who he is.

PN: You and him go back a long way, don’t you?Boyd: Yeah, he was here when I fi rst came to

the Legislature. He’s probably 10 years older than

me approximately, something like that. But he and I

had a good working relationship over the years. I’m

surprised, frankly, that he’d be interested in coming

back. I don’t think it’s been as easy as he thought it

was going to be, though.

PN: Somebody told me the oilsands potential in Northern Saskatchewan is greater than what they’re doing in Fort McMurray. If that’s true, when can we expect to see some development occurring there?

Boyd: I’m not sure the oilsands . . . what has been

demonstrated to be in existence is greater than what’s

in Alberta but it is very signifi cant, there’s no ques-

tion about it. I’ve seen estimates running as high as

10 billion barrels in play. Th at’s just an estimate, but

nevertheless, I think more and more of that poten-

tial production is being proved up every day. I think,

though, it’s going to take a number of things. First of

all it‘s going to take a higher price than what we’re

seeing now. Th ere’s going to be a need for infrastruc-

ture to be put in place, of which of course we rec-

ognize as a government that’s it’s a responsibility of

ours in terms of things like power, probably natural

gas, probably an infrastructure of roads and we’re

certainly recognizing that that’s going to be a respon-

sibility partly of government. I think the industry as

a whole right now is looking at how to operate with

these levels of pricing. As soon as you see the price

structure change, I think we’ll start seeing develop-

ment move forward. Th ere’s also a few technological

challenges that they have. Th e resource is going to be

extracted by in-situ methods rather than strip min-

ing activity, which is done in Alberta. It’s deeper into

the ground on the Saskatchewan side, so there’s a few

technological challenges, engineering challenges that

have to be met yet. It’ll likely be horizontal drilling,

steam assisted, but again there are some challenges

in terms of that. But I think the companies that are

involved are looking at various models to extract that

resource. and I’m sure they’ll be successful at that. But

I suspect at $45 a barrel, it’s diffi cult to raise the fi -

nancing for these very vast projects. But I certainly

think there’s potential there and I’m sure we’ll see oil-

sands development on the Saskatchewan side before

very long.

PN: It’s pretty exciting, isn’t it?Boyd: It could be an absolutely huge project for

Saskatchewan. A great opportunity for wealth gener-

ation. A great opportunity for employment and jobs

for First Nations and Metis people in the area and

obviously a bonanza of revenue for the Province of

Saskatchewan.

PN: What do you do to relax on a day completelyaway from politics?

Boyd: Well, I like to read in the winter time,

when it’s too cold to go outside and relax that way,

watch a movie, that kind of stuff . In the summer, I

like to golf.

PN: What are your favourite courses in Saskatch-ewan?

Boyd: Th ere are two or three that are favourites. I

like Nipawin, I like Elk Ridge and I like Riverside in

Saskatoon. I also like my little nine-hole local course

at Eston.

PN: If it was my treat, what would you order at afancy restaurant?

Boyd: Greco’s in Regina is not real fancy but it’s

a great restaurant and I would probably order one of

the chicken dishes that they have.

PN: When you’re in the car for a couple of hours — and you indicated earlier you do a lot of driving — what do you listen to? What’s in your CD player, or do you listen to the radio?

Boyd: I usually listen to the radio, actually. I’m

not really musical, but I do like to listen to a wide

range of music.

PN: Who’s your political idol?Boyd: Hmmm. Political idol . . . you know, prob-

ably Ronald Reagan.

PN: I guess if you said Pierre Trudeau, they’d kickyou out of the province.

Boyd: (Laughs) No, Pierre Trudeau didn’t come

to mind.

PN: When you were in high school, was politicssomething you thought might be in your future?

Boyd: Actually, yes, I did. I thought at some point

in my life I’d like to take a run at it. I didn’t know

whether the prospect would ever come around, but it

did, and I’m glad I did it.

PN: Where are you more skilled — in the kitchen, on the golf course or in the garden?

Boyd: Certainly not the kitchen. I’m pretty good

at growing things, since I’ve been in agriculture all

my life, so that’s probably my best. I love golf more

than it loves me.

PN: Who is your favourite MLA across the fl oor of the Legislature?

Boyd: Currently? Oh, I don’t know. I don’t mind

Deb Higgins from Moose Jaw. I would call her a lev-

el-headed New Democrat, if there is such a thing.

PN: Fifteen years from now, Bill, where are you going to be and what are you going to be doing?

Boyd: I hope I’m somewhere warm in the sum-

mer and a few holidays in the winter where it’s warm

as well. Probably still on my farm, but taking oppor-

tunity to travel with my wife.

PN: Are you suggesting you’re not going to be in-volved in politics 15 years from now?

Boyd: I would very much doubt it.

PN: Why is that?Boyd: I’ve been at it a long time and I think there’s

a need for change once in a while and I think my term

has probably gone more than once in a while.

BILL BOYDMinister of Energy Resources

Minster of Intergovernmental Affairs

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Page A3Pipeline News asked Swalm “Why?”

“Th ere are business cycles. Diff erent companies

are on diff erent points of cycles,” he responds. “You

come to these plateaus – spend, grow, recharge. We are

at one of those plateaus.”

Th e company had become big enough to become

of interest of Penn West, Swalm says. “We ramped

ourselves up to get to that point.”

Looking out to the future, Swalm said things

could have gone up, or they could have gone down. “It

can get quite ugly. Oil can drop to $20” he says.

Swalm has lived through that before, and was not

looking forward to it.

He envisioned three scenarios, and placed an equal

probability on each one.

Th e fi rst would see the price of oil drop, and it

would “get ugly” for one to two years. Under that sce-

nario, “We would lose a lot of value.”

Th e second scenario would have Reece “just per-

colate along.”

“We can survive quite nicely at that,” he said, re-

ferring to a certain oil price. Th ey would drill some

wells, but it would be diffi cult to maintain production

because of the decline rates of wells. “We can’t really

show accretive growth for the share price,” he says.

“I’m the biggest shareholder. Th e only reason to

invest in a junior oil and gas company is to see them

double or triple in a medium term.”

Th e third possibility would see a short turnaround

in a matter of months, with a quite snap back to oil

prices around the $85 to $100 range. Th at would put

their share price back in the $3 range at the end of the

year, but more like the middle of 2010, he says.

DinghyBy cashing out now, Swalm says it is like “attach-

ing a dinghy bouncing in rough waters to a big ship.”

Th is stock-swap strategy gives Reece investors li-

quidity. If current shareholders tried to divest them-

selves of Reece, it would have had a downward pressure

on the stock price. But if those same investors divested

Penn West Trust units, the impact would be minimal.

“I’m delivering the Reece shareholders where they

gat get liquidity,” Swalm says.

Alta, base, Sask opsReece has been around in various forms since the

1980s. Th e company was moved to Medicine Hat in

1997 in large part because of Swalm’s dissatisfaction

with the policies of the then-current government and

the general attitude towards business in Saskatch-

ewan.

“Th e Saskatchewan political environment kept

voting for the same stuff ,” he says. Saskatchewan was

not friendly to entrepreneurial risk taking. Th ey were

roadblocked, taxed and demonized.

“You were a bad person and it should be taken

away because you were successful,” Swalm recalls. Al-

berta, at the time, was more open for investment, but

they never bought any wells in Alberta.

Th e political environment in Saskatchewan is

moving in the right direction, even better than Alber-

ta, he says. Swalm at one point was campaign manager

many years ago for the current Minister of Energy and

Resources Bill Boyd.

So now what?What will Swalm do now?

“I don’t know. I wound not jump into anything for

four months. I need a break. I need to fi x a fence, take

some holidays, and [then] poke my head up.”

“I’ve learned a lot of lessons over the years, come

in contact with good and bad people, and can tell the

diff erence.”

One of those lessons is keeping operations more

centralized. He would structure the company diff er-

ently, too.

“I love our assets. We spent a lot of time getting

them there.”

If he does get back in business, he says, “I’d be back

in Kindersley or Estevan or Lower Shaunavon. Sas-

katchewan has come a long way.”

Reece acquired by PennWest


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Melita, Man. – Me-

lita Mayor Bob Walker

was born and raised

in the small southwest

Manitoba community.

Th ere was a time he says

he used to know who

lived in every house in

town.

Th at was a few years

ago. Now, there are times

when he doesn’t recog-

nize people downtown.

“I used to be able to

tell you who lived in ev-

ery house in town. Now,

I can’t tell you my own

block.

“We’ve had a real

infl ux of young people

we know are working

someplace,” says the for-

mer abattoir. He sees the

wives, girlfriends and

kids, but, “I don’t see

the guy because he’s out

working.”

Two years ago, there

were 50 for sale signs in

Melita. Now, just three

or four, he says, and any-

thing open is sold.

“Because of this,

the town is doing a new

subdivision on the north

end,” he says. Th e subdi-

vision will have around

20 lots, and is planned

for this summer.

Th at’s in addition to

a commercial subdivision

planned for the highway.

All the growth has

meant a demand for rec-

reational services. Two

years ago, the town em-

barked on a $750,000

outdoor swimming pool.

Right out of the gate,

the Richardson Foun-

dation, through Tundra

Oil and Gas, donated

$75,000. Th at was quick-

ly matched by Penn West

Energy Trust. Kids were

able to go swimming last

summer. Grand Banks

Energy Corp provid-

ed $5,000, and Petro-

fund Corp gave $2,000

“It’s huge. If we hadn’t

got that off the bat, we

probably wouldn’t have

started the pool,” he

says.

Th e arena will soon

be home to a new Zam-

boni, thanks to a further

$100,000 donation from

Tundra Oil & Gas in late

2008. Th e Zamboni will

be purchased this sum-

mer, Walker says.

Th e curling rink re-

ceived $25,000 for change

rooms renovations and

ice making equipment.

Th e growth means more

population to keep

schools and civic facili-

ties going.

Th ere is some con-

cern about longevity of

the industry, he notes,

but there haven’t been

major issues sometimes

associated with the oil-

patch, like rowdiness.

It’s been very good

for the hotel/motel busi-

ness, but it also means

they have been so tied up

with oil and construction

people, booking avail-

ability is limited, Walker

notes.

Th e town’s most

recent census pegs the

population around

1,100, but Walker says

they know there’s more.

Health board numbers

indicate the community

is old, but that’s not the

case, he says.

Melita, Man. Mayor Bob Walker

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To the core of the matter, or formationEstevan – Some

might think coring is in

his blood. Maybe it’s in

Gill Blackstock’s core.

Bad puns aside, Gill

Blackstock looked at dif-

ferent options, but de-

cided he wanted to set up

his own coring business

when the time was right.

Th at enterprise is known

as Blackie’s Coring.

Blackstock started off

with his family’s business,

working for them until it

was sold. “I saw an oppor-

tunity to go on my own,

and I jumped all over it,”

Blackstock says.

His father, Stan

Blackstock, was coring

since the 1960s. He was

coring for potash around

Bethune. He still checks

up on Gill, swapping sto-

ries. “Nearly 50 years lat-

er, I’m coring for potash

around Bethune.”

“I looked at diff erent

options. Why wouldn’t I

do something I enjoy do-

ing and feel confi dent in

doing?

“I can train someone

to cut a core, but I can’t

give them the experience

I have, and the feel for

what’s going on down-

hole.

On the lease, his job

is core supervisor. “My

job is to set up tool, su-

pervise the operation for

cutting core samples for

the geologist.

When cutting a core,

you put your hand on the

Kelly bar, he explains.

“You can actually feel

it break off the bottom.

Ninety per cent of the

time, you feel the break.

Th e other ten per cent of

the time, that’s when the

experience comes in.”

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Page A10Th at includes using procedures to make sure

you have it. For example, pulling a sample from the

Alida formation, he

would pull up

on it and

slowly run back

down. Again, feeling the

Kelly bar, if you’ve taken on weight prior to where

you left off , you have it.

An 18 m core sample weight an average 500 lbs

(227 kg). When pulling on it, you can feel the ten-

sion through the drill string. “It’s like a train eff ect.

A train pulling away,” he says. “Th e caboose is the

last to feel the jar of the engine.”

“My core barrels can cut 27 m, 18 m and 9 m,

but 18 is the most common,” he explains. You get

your top formations, oil-bearing zones, and bottom

formation. “You can get your whole formation in

one core.”

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Experience and con dence key to Blackie’s CoringI’m modifying an existing core van, setting it up on

a new truck with four wheel drive.”

A core van is a mini lab on wheels. It has tables

to lay out the core samples, and ultraviolet lights to

bring out the fl uorescence of the hydrocarbons. Th e

van provides a clean, comfortable environment

for the geologist to work in.

Blackstock does a lot of coring for pot-

ash as well as the oilpatch. “In the potash

work we’re doing, we’re cutting roughly

90 to 126 m of potash zone.

“Th ere’s no better proof of what’s

down there than an actual core sam-

ple, whether it’s oil and gas, potash,

or coal.”

Coring is not common with

horizontal wells, however. “To my

knowledge, to date, in horizontal

drilling they don’t core. It’s a proven

fi eld. To date, that I know of, there’s

been three horizontal cores cut, and

I’ve done two of them.”

Th e hardware has changed over the

years, speeding things up along the way. “When I

started, we started with diamond bits. It took 12 to

14 hours to do an 18 m core.

“Th en they came out with a tri-pack, a poly-

crystalline cutter, which reduced times to four to six

hours. From there we went to two to four hours to

cut an 18 m core.”

It makes a diff erence, because time is money on

a drilling rig, he notes.

All that core ends up in the core repository in

Regina. When he walks between the racks there, he

says “I can see cores I’ve done 20 years ago.”

“I’ve seen a lot of core.”

Gill Blackstock red up his own coring com-pany in Estevan after the family business was

sold.

A12 PIPELINE NEWS April 2009

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By Geoff Lee

Pipeline NewsCalgary –Th e Cana-

dian Association of Oil-

well Drilling Contractors

(CAODC) held its 59th

annual ball in Calgary

on March 13, but anyone

who came in work boots

felt out of step this year.

Th at’s because the

CAODC has downgrad-

ed its forecasted drilling

activity for 2009 in the

wake of low commod-

ity prices and tight credit

that small oil companies

rely on.

Th is is the fi rst time

in over two decades that

a revised projection has

been made in the middle

of the usually busy winter

drilling season.

CAODC president

Don Herring thinks the

environment for drill-

ing may improve in the

latter half of 2009 and

has held off his previous

warning of another fore-

cast downgrade following

the province’s three-point

incentive program for the

energy sector announced

March 3.

Th e Stelmach gov-

ernment will off er up a

$200-per-metre royalty

drilling credit for new

conventional oil and gas

wells, and a maximum

fi ve per cent royalty rate

for the fi rst year of pro-

duction on new wells.

Th e program runs

from April 1, 2009 to

March 31, 2010 and in-

cludes work incentives for

service rigs.

“We met with the

minister of energy and we

told him the announce-

ment essentially gives us

some confi dence that we

won’t have to decrease the

forecast again,” said Her-

ring.

“It doesn’t give us a

lot of confi dence that we

would actually make a

positive adjustment but it

might keep us from mak-

ing a negative one.

“Clearly, the decrease

in drilling activity is due

to the commodity prices

and the ability of inves-

tors to get money. In

Alberta, there is also the

royalty issue which tends

to magnify the problem a

bit.”

Th e CAODC is a

trade association rep-

resenting drilling and

service rig contractors

throughout Canada and

Herring says the mood is

glum and spreading.

“It’s not just us but

among the operating

companies too. Th ere are

large multinationals and

U.S. independents, for

example, that are not as

impacted by the credit

freeze than some of the

smaller companies that

require access to bank

fi nancing and access to

investors through selling

shares.

“Banks are not lend-

ing money to smaller oil

companies at these pric-

es,” added Herring.

“It’s an investor is-

sue but I would like to

think if we started to see

oil averaging in the $60

to $70 US a barrel range

and gas at $7 or $8 dollars

we would see quite a bit

more activity. Gas is one

of the critical issues in

the western sedimentary

basin.”

Herring says the

downgrade in anticipated

drilling activity is also due

to lower rig counts fore-

cast in October, 2008 –

and layoff s are occurring.

“As the rigs get laid

down, the crews don’t get

called back to work,”

said Herring. “Th at’s a

very hard piece of news

to give. It’s a reality, but

it’s very diffi cult for man-

agers or owners of com-

panies to convey to their

men.”

Every well drilled

supports about 120 direct

and indirect jobs, accord-

ing to the Canadian En-

ergy Research Institute.

Th e association now

expects the number of

operating days will be

95,000, well below the

129,000 originally esti-

mated.

Measured in terms of

wells drilled, the forecast

is 11,176 wells. Th at’s ap-

proximately 3,100 wells

shy of the 14,325 esti-

mated in October, 2008 –

a 22 per cent downgrade.

Th is is in line with the

revised Petroleum Servic-

es Association of Canada

drilling forecast of 13,500

wells across Canada, a 21

per cent decrease from

the 2008 total.

Th e number of wells

expected to be completed

in 2009 by CAODC is

projected to be approxi-

mately 11,184, compared

with the 16,844 wells

completed in 2008. Th e

2009 projection is almost

half of the 22,127 wells

completed in 2006 and

2005. Page A13

Drilling association blames commodity

“”


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prices and credit freeze for slowdown Page A12

Herring says most

of the drilling activ-

ity in 2008 took place in

northeastern BC “before

things started to fall off .

Of course Alberta al-

ways has drilling activity

but it has nowhere near

as much as it has in the

past.”

“In Saskatchewan,

we typically don’t see a

lot of activity in the fi rst

quarter. It tends to be

north and west and rigs

tend to move south and

east as we get through

break up and into sum-

mer.”

In the wake of lower

drilling counts, CAODC

will host a Drilling Con-

ference in Calgary May

26 to present the latest

developments and ad-

vancements within the

Canadian drilling indus-

try.

Th e conference will

also touch on promot-

ing better understanding

and awareness of best

practices, innovative well

construction processes

and regulatory changes

as well as presenting new

technologies.

Th ere will be a focus

on drilling technologies

and operations to over-

come the challenges of

accessing diffi cult geo-

logical targets. Th e con-

ference will also touch

on emerging technolo-

gies and innovative rig

concepts, drilling equip-

ment, well construction

techniques and innova-

tive rig concepts among

other topics.

Meanwhile, the

CAODC forecasts a rig

utilization rate of 30 per-

cent in 2009 with 262 out

860 rigs actively drilling.

Utilization in the usu-

ally busy fi rst quarter is

expected to average just

39 per cent with 333 rigs

operating.

Th e last time drilling

activity was this low in

a fi rst quarter was 1999,

but there were fewer rigs

back then than today.

Th e best comparable

fi rst quarter to 2009 was

the beginning of 1992

with a utilization rate of

32 per cent.

Th e CAODC esti-

mates there were be only

86 rigs on average drill-

ing during the second

quarter, a reduced level

not seen in 17 years. Th e

utilization rate will be

only 10 per cent.

Some recovery how-

ever, is expected in the

last half of 2009. A third

quarter projection calls

for an average of 267 rigs

to be drilling, similar to

the same period in 2002.

In Saskatchewan, we typically don’t see a lot of activity in the fi rst quarter. It tends to be north and west and rigs tend to move south and east as we get through break up and into summer

- Don Herring


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By Brian ZinchukKisbey – Th ese days, if you want to

work in the oilpatch, you don’t just have to

be safe, you have to prove safety is part and

parcel of your daily business. Th at means

certifi cation.

Cliff Nankivell Trucking of Kisbey and

Lampman received its Certifi cate of Rec-

ognition, or COR, on Mar. 13. It’s a major

step in the increasingly red-taped world of

safety and certifi cations in the oilpatch.

Kevin Mooney of C6 Safety Associa-

tion of Saskatchewan presented the cer-

tifi cate to owners Kalvin Nankivell and

Claudia Mullis. It was the culmination of

two years of hard work by the company.

John Voutour is the safety co-ordina-

tor for Cliff Nankivell Trucking, and spent

a lot of time with the two owners develop-

ing the certifi cation.

Seven elementsTh ere are seven elements for an eff ec-

tive health and safety program, according to Mooney.

Th e fi rst is management leadership. Th is means be-

ing actively involved in safety, and leading by example.

Second, there needs to be a hazard identifi cation

and analysis. Th is will diff er with diff erent work en-

vironments, but can include looking for slip and fall

hazards, pinch point, or H2S. Jumping out of trucks is

another one, particularly for a trucking company.

Th e third element is hazard control. Can the haz-

ard be eliminated or somehow changed? Can a solution

be engineered, i.e. gravelling liners. Can a

barrier be used to eliminate exposure?

Administration control can be used,

instituting rules and safe work proce-

dures. Th en there’s the usage of personal

protective equipment, like hard hats and

respirators.

Th e fourth element is inspections,

making sure the previous controls are

working. Th is includes circle checks by

operators, or the safety co-ordinator go-

ing out and ensuring controls are work-

ing.

Element number fi ve is communica-

tions. Th e work environment is constantly

changing, and everyone needs to be kept

abreast, through methods like tailgate

meetings and a health and safety com-

mittee.

Kalvin Nankivell says that includes

getting participation from front line staff ,

and requires a paper trail. “We kill many

trees,” Mullis says with a smile, describing eff orts to

maintain that paper trail.

Emergency preparedness is the sixth element, hav-

ing a process to respond to an emergency.

Page A15

Getting to the COR of the matter

Cliff Nankivell Trucking of Kisbey and Lampman received its Certi cate of Recognition, or COR, on Mar. 13. From left are Kevin Mooney, C6 Safety Association of Saskatchewan, Claudia Mullis, Kalvin Nankivell, and John Voutour of Cliff Nankivell Trucking. Photo by Brian Zinchuk

A15PIPELINE NEWS April 2009

Oilfield Maintenance Ltd.• General Oilfield Maintenance• Steamer Unit• Mobile pressure welder unit

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OIL TREATING COMPOUNDSESTEVAN OFFICE634-7627Fax: 634-7827Kelly: 861-6045Jeff: 421-7973Chad : 421-0338Lyle: 421-2491Armand: 421-8286Darcy: 421-1551Ryan: 421-9140

CARLYLE OFFICE453-6494Fax: 453-2598Trevor: 577-8046Mike B: 577-8153Mike L: 577-8982Paul: 577-1916James: 577-8650

Announcement of the promotion of Dean Sargent to Branch Manager, Saskatchewan

effective February 01, 2009.

Edmonton, Alberta – Greg McGillis, Vice President of Oper-ations and Business Development of Titan Logix Corp., (TSX Venture: TLA), is proud to announce the promotion of Dean Sargent to the position of Branch Manager, Saskatchewan.

In his 12 years of service, Dean has demonstrated skill, dedi-cation and professionalism. The success of any company comes from strong leadership, the building of cohesive results-oriented teams of employees, and the commitment and enthusiasm to provide customers with superior services and products. “Dean is a great advocate of our company’s business philosophy,” says McGillis. “His promotion acknowledges his achievements, his longstanding loyalty to Titan Logix Corp., its customers and its employees. We recognize Dean’s important role in our plans for growth in North America including Saskatchewan.”

Dean manages the day-to-day operations of Titan’s Lampman, Saskatchewan branch and he will have the added responsibility of working more closely with the company’s sales team throughout Sas-katchewan and Southern Manitoba.

Titan Logix Corp. congratulates Dean Sargent on his promotion and looks forward to a prosperous future with him.

About Titan Logix Corp.:Titan Logix Corp. is an industrial instrumentation and controls company focused on designing, manufacturing, distributing and servicing instrumentation and automation solutions. Our mission is to provide the petroleum and aviation ground support industries with advanced technology solutions to automate essential measurement and control processes safely and ef ciently.

Detailed information on Titan Logix Corp. is available on the company’s website, www.titanlogix.com

Corporate AddressTitan Logix Corp.4130 – 93 StreetEdmonton, AlbertaT6E 5P5Phone: (780) 462-4085Toll Free: (877) 462-4085Fax: (780) 450-8369Email: [email protected]

Announcement

Branch AddressTitan Logix Corp.Box 460Lampman, SaskatchewanS0C 1N0Phone: (306) 487-2883Fax: (306) 487-2889

Page A14Th e owners smile

about this one, because

their in-house staff is al-

ready the outside response

unit. “It was kind of funny.

All the guys are on the fi re

department,” they note.

Indeed, the trucking fi rm

supplies water for the fi re

department.

Th e last element is in-

vestigations, looking for a

root cause behind an inci-

dent. “Th e defi nition of a

root cause is a breakdown

in the management pro-

cess, the above six steps,”

Mooney explains.

Nankivell says the

whole process is based

on continual improve-

ment. “Th ere is a proactive

component to inspections

– getting people to report

near misses,” he lists as

and example.

But how do you get

people to overcome the

resistance to report on

their own slip-ups?

“It comes down to

a safety culture, focusing

not on placing blame, but

fi nding a root cause.”

“A lot of people don’t

like safety. Th e think it is

a tattle-tale thing,” Mullis

says. It’s easier if you make

it about an individual’s

safety. Put a positive spin

on it.

Long road to put in placeVoutour explains, “A

lot of companies are re-

quiring we have COR.”

Th at includes major play-

ers in their area, like Cres-

cent Point and Talisman.

“Th ey literally ask us, ‘Do

you have COR?’”

Now they can say

they do.

“We’ve been at it for

two years,” Nankivell says.

It meant rebuilding a pre-

vious safety program.

“It’s a very big job,”

Mullis concurs, adding

the bar for safety has risen

quite high in the 30 years

the company has been in

business.

While the ground-

work is done by the com-

pany, it has to be externally

audited to receive the cer-

tifi cation. Th at included

three days with two people

from the auditing fi rm,

talking to roughly 25 of

the 70-person staff . One

of the things they watch

for is a paper trail. Th e

audit verifi es information

through interviews, obser-

vation or documentation,

according to Mooney.

Certi cation a major part of the process

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321 Imperial Ave., Estevan321 Imperial Ave., Estevan

Estevan – With

things having slowed

down in Alberta last year,

Estevan was looking pret-

ty good for a Medicine

Hat fi rm. So last summer,

they started working in

southeast Saskatchewan,

putting down roots.

Renegade Oilfi eld

Construction moved into

its new shop in March,

constructed on the west

side of Estevan.

It’s Renegade’s sec-

ond facility, with home

base in Medicine Hat.

Ron Lafreniere is

the Estevan manager. He

convinced owners Dar-

ren Schmaltz and Dan

Giesbrecht of the need

to set up in southeast

Saskatchewan. Th ere was

work here, whereas Al-

berta was slowly dying,

according to Lafreniere.

“Royalties are killing Al-

berta,” he says.

Th e prices don’t help

what’s going on now, but

royalties are what killed

it.”

“We should look into

Estevan,” he told them.

Companies in the

southeast told Renegade

they wanted to deal with

someone who is commit-

ted to staying, not tran-

sients. “It’s not like we’re

a fl y-by-night company.

We’ve made a pretty big

commitment with this

building.”

Th e facility is 6,000

square feet, with seven

offi ces.

“We basically moved

fi ve-six people who basi-

cally uprooted.”

Lafreniere person-

ally has been living in a

four-season travel trailer

at a local campground,

with intentions to build

a house.

“We’ve got about 15

locals hired, working for

us now.”

“We’re trying to

break into the market,”

Lafreniere says.

Construction of the

new facility started in

June, “Because of the lack

of people to build, we ba-

sically moved in March.

1.”

“Th e hold-up on the

building has made work

complicated.”

Penn West is their

biggest customer at Es-

tevan, while Enerplus

has given them work in

Manitoba. “We’re work-

ing anywhere from Me-

lita, Man., to south of

Weyburn, to the Ameri-

can border.

One of their special-

ties is fl ex pipe. “We are

one of the fi rst companies

in Alberta to install fl ex

pipe. It’s indestructible is

what it is. Non-corrosive,

unlike plastic, but it has

no memory, so it lays fl at.

Th e company does

oilfi eld pipeline, mainte-

nance, mechanical, weld-

ing work, and facilities.

“We’re revamp-

ing Enerplus’ batteries

and compressor stations.

We’ve been there since

Sept. 10.”

Estevan is smaller

than what he’s used to, he

went from seven days a

week, four hours a day to

six days a week. It’s a nice

change, Lafreniere says.

“Look at what hap-

pens to those working

seven days a week. Th ey

have no more money. But

you have a day off to relax

and enjoy their families.”

“We’re new here.

And it’s going to take

time for the oil com-

panies to trust us. But

those who have used us

are repeat customers,” he

says.

“We bid on every-

thing. We have no issues

bidding on jobs as op-

posed to hourly rates.

Medicine Hat rm comes to

Estevan

Renegade Oil eld Construction moved into its new Estevan home in early March.


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By Brian ZinchukMelita, Man. – Greg

Cousins Construction

Ltd. (GCCL) set up

shop in Melita, Man., in

July, 2007, ready to ex-

pand when the time is

right.

Th e facility used to be

a John Deere dealership,

then a Ford dealer, and

fi nally a trailer manufac-

turer before purchased by

GCCL.

“At this point, we use

it for equipment storage,

primarily tanker trucks,”

says Greg Cousins.

Th ere are two build-

ings, one heated, and one

not. Th e heated building

helps keep valves from

freezing, while the sec-

ond building is used for

storage.

“We plan on devel-

oping it further,” Cous-

ins says, “dependent on

the demands of our cus-

tomers.”

Cousins feels you

need a geographic pres-

ence to get the pulse of

an area. Probably one

quarter of their staff live

and works in the Melita

trading area. GCCL is

headquartered at Carn-

duff , with operations in

Sinclair, Man., as well.

In southwest Mani-

toba, Cousins says their

work is primarily pipeline

installation, but includes

hauling crude, emulsion,

and salt water.

Having a facility in

Melita gives them a toe-

hold to build on in the

future.

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tions demand, we already

have a presence. We’re

there,” he says. “Manito-

ba has become a signifi -

cant part of our business

over the years.”

In return, he notes

they are contributing to

the local economy.

Geographic presence needed: GCCL


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By Brian ZinchukEstevan – Estevan’s Board of Commerce, Tour-

ism and Trade is still pursuing installing a camp near

the community to house workers.

Michele Cyrenne, community development

manager, is heading up the eff ort for the board. He

still sees a need for a camp for workers.

Estevan was struck with a profound housing

shortage in 2008, to the point where an emergency

meeting was held in late November to address the

problem. Th e camp idea has come from that short-

age.

Cyrenne says

the housing issue is

not as bad as it was,

“But I don’t think

it’s to a point where

people can be com-

pletely at ease fi nd-

ing housing when

they move here.”

Th ere’s not a

lot of rental or ho-

tel space available,

Cyrenne says.

Th ere haven’t been as many inquiries for accom-

modations as there were when things were still in full

force, he notes.

So do we still need camps?

“It doesn’t seem as much as it did four to six

months ago,” he says. But with the amount of land

purchases last year, as soon as oil prices go up, com-

panies are going to be ready to go to full production

again, according to Cyrenne.

Th e board received four bids for camps, and two

are being seriously considered, with one eventually

being picked.

Th e location will likely be east of the city, likely

along the road leading to the Shand Power Station.

Th is location is close to much of the industrial sec-

tor of Estevan, as well as the power plants and coal

mines. It’s also close to the highway 39 bypass to be

built around the city.

Th ey city will also see

construction of a new

civic centre. All these

are likely to require

workers, and in turn,

places for them to stay,

in the near future.

Th e camp would

have a capacity from

100 to 200, accord-

ing to Cyrenne. As an

open work camp, there will be user fees. Th ose rates

will fall somewhere between $100 and $150 per night,

including hot breakfast, supper, and a bag lunch.

“We’d like to see it set up by the time spring

breakup is completed,” Cyrenne says.

Th e setup costs are all the responsibility of the

operator. Th e board is facilitating discussions between

the land owner and camp provider.

With all these projects, is 100 to 200 enough?

“We want to start at that. Both companies are

fully capable of expanding the camp at the snap of a

fi nger.”

Local camp still in the worksLocal camp still in the works


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Jason Waugh - Division Manager306-577-9900 (Carlyle)

Trevor Van Alstyne - Field Supervisor306-421-0344 (Estevan)

Ryan Toms - Field Supervisor306-452-8182 (Redvers)

Victor VanDresar - Warehouse Manager306-577-9934 (Carlyle)

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Estevan – Th e incred-

ible pressure on the Este-

van housing market has

dropped over the winter,

in line with the decline of

the price of oil.

Th ere are more hous-

es on the market, accord-

ing to Lynn Chipley, city

councillor and broker

with Century 21 Border

Real Estate. When Pipe-line News spoke to her in

mid-March, there were 89

houses on the market, up

from the 30-range during

the mad rush for hous-

ing last year. Having 100

houses on the market in

Estevan is what Chipley

considers a ‘normal’ mar-

ket. “A normal market

for us, forever, was 100

homes, from vacant lots to

Taj Mahals. Well, maybe

not Taj Mahals.”

“We still have a short-

age of aff ordable rental ac-

commodations,” Chipley

says. Rents had increased

to refl ect the market, and

most have stayed there for

the time being, she ex-

plains. “Whether the price

will stay at $1,000 per

month for one bedroom

apartments, I don’t know.”

Rents are high com-

pared to what people can

aff ord.

However, if you want

to buy, things have opened

up a lot, she says, and the

market has dropped 15

per cent from its peak.

John Slatnick, a land-

lord in Estevan with mul-

tiple properties including

a lodge, says his phone is

no longer ringing off the

hook. Late last year, he

was getting as many as ten

calls a day. Now it hardly

rings.

“I’m still fi lled at my

place, but I have hardly

a call now,” Slatnick ex-

plains.

Spring breakup is

traditionally a slow pe-

riod. Slatnick thinks after

breakup, there will still be

a fairly tight market, but

it won’t be as frantic as it

was.

“What the shortage

still is is the guys looking

for accommodations with

a family who want to be

living here.”

Housing pressure drops


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It’s about the jobs say Director of Manitoba Petroleum Branch

Director of the Manitoba Petroleum Branch Keith Lowdon addresses the Melita, Man., Chamber of Commerce. Photo by Brian Zinchuk

Melita, Man. – With oilpatch activity all around,

but not necessarily at Melita, Man., the Melita Cham-

ber of Commerce was given an opportunity to hear

just what is going on from the provincial government’s

perspective.

Keith Lowdon is the director of the Manitoba Pe-

troleum Branch, a division of the Manitoba Depart-

ment of Science, Technology, Energy and Mines. It’s

the equivalent of Saskatchewan’s Ministry of Energy

and Resources. He addressed the Melita chamber on

Feb. 18.

Lowdon grew up in the oilpatch, literally. His dad

is Ed Lowdon, considered one of the founders of the

Manitoba oilpatch.

“He’s seen a lot of changes,” noted Murray Cam-

eron, president of the Melita Chamber of Commerce

in his introduction of the director.

Lowdon explained the Petroleum Branch has

three offi ces – Winnipeg, Virden and Waskada. Th e

Waskada offi ce opened in 1982.

At that time, there were some ‘unscrupulous peo-

ple’ dealing with freehold mineral holders. In Manito-

ba, freehold minerals are the vast majority, 80 per cent,

as opposed to crown minerals. “Th e mineral holders

and farmers are a lot smarter than they were,” Lowdon

said. Page A21


Page A20

Quarterly reports by the surface rights board

show what people have paid for surface rights, a

valuable resource.

“What’s important about the oil industry is the

amount of people that work, not the taxes and miner-

al rights,” Keith Lowdon said, adding there are about

1550 people working in the industry in Manitoba.

At the time of his presentation in mid-February,

there were 2631 producing wells, putting out approx-

imately 23,000 barrels a day.

Manitoba’s domestic consumption is about

50,000 barrels a day, so it produces about 40 per cent

of its oil needs, according to Lowdon.

In 2008, there were 314 wells drilled, and 332 li-

censes issued. Th at resulted in $26.7 million in direct

provincial revenues. Another $90 million went to

freehold mineral rights holders, and $2.5 million for

rural municipalities. Industry expenditures totalled

$360 million.

Since 1951, there have been 6,500 wells drilled.

Public land sales take place four times a year.

Th e main drillers in 2008 were Tundra Oil and

gas, at 172 wells, Fairborne at 18, Enerplus at 14,

EOG at 11, and CNRL at 10.

Prior to 2005, production had peaked in 1969.

But the Sinclair fi eld changed all that, and $400 mil-

lion has been spent on it.

Lowdown showed a map of the Sinclair fi eld in

recent years. In 2003, there were a few wells. In 2004,

a few more. Th e main-B pool had been discovered.

Now, the area is saturated with wells.

By this past January, production from the fi eld

came to 10,400 barrels a day, on a recovery factor of

10 per cent.

Th ere’s already a pilot CO2 project in the fi eld,

being performed by Tundra. “If this pilot works out,

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there potential to leave CO2 in there.”

In 1985, Manitoba saw its fi rst Bakken produc-

tion. “Really, the Bakken production is equal to the

Mississippian production.”

“Even though we think we know so much today,

we really know nothing. Th ere could be oil all over

the place,” he said.

In the Melita area, there are 271 wells near Pier-

son. “It’s very signifi cant,” he said.

Pierson and Waskada have CO2 sequestration

potential, but there isn’t a source of carbon dioxide.

“We’re looking at Estevan,” he said.

Lowdon had previously told Pipeline News that

Manitoba does not have commercial gas production.

But he noted that there may be opportunities in cap-

turing solution gas, as CNRL does. “Are there op-

portunities like that? You bet,” he said.

Predictions for 2009 are diffi cult, Lowdon ex-

plained. He anticipates 200 to 250 wells drilled in

the province in 2009, but since that initial estimate

was made, it may be closer to 200, or less.

Horizontal wells are becoming more common in

Manitoba, he noted.

Employment most important aspect of the oil industryEven though we think we

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oil all over the place- Keith Lowden

“”


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Estevan - Th ere are

a wide variety of down-

hole tools, with large

multinationals playing a

big part in the business.

In a pool with a lot of

big fi sh, there’s room for

a smaller fi sh to swim.

Th at’s what Kash

Downhole Anchors is

doing in Estevan. Hav-

ing opened in the sum-

mer of 2008, the com-

pany specializes in one

product – anchors.

“We’re downhole

tubing anchor catchers,”

says Tracy McConnell.

He operates the business

with the assistance of his

wife, Kelly, and Leonard

Th ieven, who helps out

in the back.

Anchors are run in

new and old wells. An

anchor, he explains, is

a tool that goes on the

end of the tubing. You

run it into the hole, set

it, and pull the pipe into

tension. Th e anchor is

usually set just above

the build section of the

well in vertical casing.

Th e vertical section is

never perfectly straight,

McConnell notes. Us-

ing a set of mechanical

slips that take a bite into

the casing, the anchor

allows the tubing to be

somewhat straightened.

Th is anchors the tub-

ing in the well stopping

the tubing from mov-

ing while the well is

pumping. Th is reduces

the wear on the tubing

and rods. Th e anchor

also acts as a catcher. If

the tubing parts (break)

the anchor will hold

the tubing from falling

down the well.

Anchors can last a

long time. “I’ve pulled

anchors out of the hole

that have been there

since the 1950s,” Mc-

Connell says.

He used to work for

a large tool company

for 14 years, and saw

an opportunity. “Th ere

was defi nitely a need for

somebody to special-

ize in anchors,” he says.

Other downhole tool

companies were focus-

ing on tools and open

hole frac strings.

His level of special-

ization includes the abil-

ity to clean with a 150

degree F washer which

not only removes the oil

and grease but by heat-

ing it to 150 degrees it

expands the metal which

releases the trapped H2S

gas and other contain-

ments prolonging the

life of the anchor. Th e

sand blaster is used to

clean and exposes any

cracks or corrosion in

the metal. Th ere’s also

a specialised torque

machine in the back

to torque parts to spec.

“We take the time to

make sure everything is

up to snuff ,” he says.

“I sell anchors to

the new wells,” he says,

but also to older wells.

“When they work them

over for whatever reason,

they pull these anchors,

send them to me and I

redress them. After they

are redressed they are

sent back to the fi eld

where the rig crew runs

them back in the well.”

Room for small specialty player downhole

Leonard Thieven, service tech with Kash Downhole Anchors Inc., rebuilds a TMA belly spring anchor. Photo by Brian Zinchuk


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SaskPower is seeking yet more power generation capability, this time asking for smaller baseload generation. Photo by Brian Zinchuk

SaskSaskPower issues RFP for new baseload generation

Regina - A continual string of announcements has

been coming out of SaskPower of late, seeking new

power generation proposals or announcing its own

power generation projects.

On Feb. 23, SaskPower issued a request-for-pro-

posals (RFP) for new baseload electrical generation.

In January, SaskPower issued an RFP for between

100 MW and 200 MW of peaking generation to be in

service for the 2011/2012 winter peak. Th e deadline for

submissions for the peaking solicitation has been ex-

tended to June 15, 2009, with the successful proponent

now being announced in October 2009.

Th is comes after a Feb. 13 announcement of a new 140

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ford, and a January request for proposals for 100 to 200

MW of peaking generation.

Following a request-for-qualifi cations to fi nd pri-

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peak. Th e companies are NRGreen Power Ltd., Tran-

sAlta Corporation in joint venture with Husky Oil Op-

erations Limited, TransCanada Energy Ltd., ATCO

Power Ltd., EPCOR Utilities Inc., Northland Power

Inc., Ormat and Meadow Lake Green Energy.

“As Saskatchewan’s economy continues to grow,

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Th e deadline for the submission of proposals is

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PIPELINE NEWSSaskatchewan’s Petroleum Monthly

B-SectionApril 2009

By Brian ZinchukCalgary – A substantial shakeup of ownership in

southeast Saskatchewan took place on March 4, with

the exit of Talisman Energy and sale of nearly three

quarters of a billion dollars of assets to Crescent Point

Energy Trust and TriStar Oil and Gas.

Expected to close on June 1, the deal will see ap-

TriStar and Crescent Point team up in $720 million deal

It’s the end of the road for Talisman Energy Inc. in southeast Saskatchewan. The major player is disposing of its southeast Saskatchewan properties and will be focusing on shale gas plays. This sign was found west of Kisbey, where the Bakken potential of Talisman lands was of keen interest of the buy-ers. Photo by Brian Zinchuk

proximately $720 million cash change hands. Crescent

Point and Tristar team up to each take half ownership

of Talisman’s former properties. Th e list is extensive

(see sidebars, page B2), but includes 610,000 acres, of

which 73 per cent is in southeast Saskatchewan, in-

cluding fee title lands. Th e rest of the land is in Daniels

County, Montana. Total net production is approxi-

mately 8,500 boe/d, as well as Talisman owned and

operated infrastructure.

It gets a little more complicated, however, in that

Shelter Bay Energy, a private Bakken growth company

21 per cent owned by Crescent Point, will be getting in

on the action. Crescent Point and TriStar will be sell-

ing a portion of the Bakken assets to Shelter Bay. Th is

transaction will go for $71.1 million, half of which will

be going to each of Crescent Point and TriStar. Th e net

result will be a reduction of the purchase price for each

of the partners from $360 million to $324.5 million.

TalismanYet for such a large dollar value in assets, the num-

ber of directly aff ected employees is small, with Talis-

man telling Pipeline News 24 operations staff at Carlyle

and approximately 12 staff in Calgary are aff ected.

“In Calgary, we’re assessing options to reassign

those people,” she said. “In Carlyle, we’re working with

the purchasers to transition the employees.”

"Th is is in keeping with our strategic objective to

focus Talisman's portfolio on material, core assets,"

said John A. Manzoni, president and chief executive

offi cer in a release. "Although southeast Saskatchewan

has been part of our legacy, the majority of our capital

spending and eff ort in North America going forward

will be deployed to accelerate success in our unconven-

tional natural gas plays."

With a shift in focus to shale gas, Talisman

spokesperson Phoebe Buckland told Pipeline News they will be focusing on unconventional gas plays in

northeast British Columbia’s Montney, the Utica in

Quebec, and Marcellus in Pennsylvania and New York

State. Th at focus was laid out in January by Manzoni

in a media conference call.

Talisman will be maintaining operations in Shau-

navon and at Chauvin near the Alberta/Saskatchewan

border.

Why sell now?

“We see quite a lot of upside in it,” notes Buck-

land, explaining, “Th is will free up some capital for us

to pursue opportunities.”

Th e price refl ects the long-term value of the assets,

she adds. “We fell it is a fair price for the assets.”

While the press releases from both Talisman and

Crescent Point draw particular attention to Bakken oil

play lands aff ected by the sale, the Bakken properties

are actually a small percentage of the total deal.

According to Crescent Point, the assets they

will acquire include 312 net sections of undeveloped

Saskatchewan land. Just 25 of those are in the Bak-

ken play. Of those 25, 16 sections have no associated

reserves booked as of March 31, 2009.

TristarTriStar President and CEO Brett Herman told

Pipeline News, “Our main focus has been to focus on

large oil in place.”

After the acquisition, over 70 per cent of TriStar’s

production will come from southeast Saskatchewan.

“Going in, we were just over 20,000 bbl/day,” he said.

Exiting, they will be in the 25,000 bbl/day range, just

over a 20 per cent increase in production.

“We’re known acquisitors,” he said, anticipating

“extremely smooth transition.”

In the fi eld, they will be looking to hire Talisman

staff , noting “We’re evaluating that as a we speak.”

Operatorship was settled not long after the an-

nouncement. Th e two companies basically rolled out

maps and plotted out who has operations where.

As for development plans, “It all depends on

where commodity prices are.”

Page B2

PIPELINE NEWS April 2009B2

Talisman exits southeast Sask., pursues shale gas elsewhere

Phone: 634-5519 or 634-734124 Hwy. 39 E. Estevan

• GENERAL OILFIELD HAULING • TANK & TREATER MOVING • 24 HOUR PERSONALIZED SERVICE • PIPE CUSTODIAN • PUMP JACK HAULING

L & C Trucking

Tracy McConnellOwner/Manager

104A Perkins StreetPO Box 575, Estevan, SK S4A 2K1

Ph: (306) 634-7552 Fax: (306) 634-7558Email: [email protected]

Page B1“Th e intent is to

continue being active in

southeast Saskatchewan.

Our philosophy is to

spend in and around our

cash fl ow.”

Herman said it was

around $250 million when

interviewed on Mar. 19.

Th eir current 2009

capital budget is $200 mil-

lion, 90 per cent of which

is to be spent in southeast

Saskatchewan. Th at leaves

$50 million that could be

used for debt repayment,

acquisitions, or drilling.

Th e deal makes both

of the partners minority,

non-operating players in

the Weyburn carbon diox-

ide sequestration project.

It’s TriStar’s fi rst exposure

to carbon dioxide fl ood.

It’s to get an education on

CO2, according to Her-

man, because at some time,

the Bakken play will go on

water fl ood, then carbon

dioxide fl ood. Th is knowl-

edge will be very valuable

down the road.

While there is some

Montana land in the deal,

Herman said, “Our main

focus was Canadian op-

erations.”

“Th ere was signifi -

cant upside that Talisman

hasn’t drilled.

Crescent Point“You’re looking at

assets that are predict-

able and have low decline

rates,” Trent Stangl, Cres-

cent Point vice president

for marketing and inves-

tor relations, told Pipeline News.

Th e land changing

hands is “pretty much

across the whole south-

eastern Saskatchewan.

“It’s massive. It’s a

checkerboard across the

entire southeast.

“We will be working

in parthership in every one

of those lands and wells.

So why go halfers on

this acquisition?

“It was really the only

way we could get that deal

done in an eff ective man-

ner.”

He notes by partner-

ing up, they each removed

the other company as a

competitor.

“Th ere were lots of

guys kicking tires,” he

said.

“With our southeast

Saskatchewan exposure

and TriStar’s exposure, it

made use leading contend-

ers for sure. We are now

the second largest income

trust after Penn West.”

Indeed, the growth of

Crescent Point has been

so substantial that it is

pushing the limitations

of what it can do within

the income trust business

structure, in part because

it was caught up in some

controversial changes to

income trusts a few years

ago.

“We’ve outgrown the

limits they put on that

structure.”

As a result, on the

same day as the acquisi-

tion announcement, Cres-

cent Point stated it would

be converting to a corpo-

rate structure. Th e change

would be eff ective on or

before May 31.

Like TriStar, Crescent

Point gains some owner-

ship in the Weyburn CO2

project. Stangl calls it one

of the crown jewels of the

deal. Th ey already have a

small interest in the Mi-

dale project.

Th e big focus of the

deal is Bakken produc-

tion. “At $40 US a barrel,

we have a before-tax rate

of return of 100 per cent

and it pays out in about a

year.”

Crescent Point has

140 wells that can still be

fraced, from before the

acquisition. If these oil

prices stay low, we may

drill fewer wells, but frac

more.

“We may be looking

at diverting some of our

projects on the Talisman

lands instead, but it will

still be Bakken-focused.”

As for current Tal-

isman staff , Stangl says.

“We’ll be talking to some

of those guys.”

Shelter BayBoth companies are

reducing their exposure

somewhat, by selling some

of the Talisman assets to

Shelter Bay.

While Shelter Bay

has an independent board

of directors, it has no em-

ployees, explained Stangl.

Th e company is owned

by private investor play-

ers from New York, and a

little over a fi fth is owned

by Crescent Point.

Crescent Point does

the operations for Shelter

Bay.

“It’s a unique situa-

tion where we created the

company and looked for

investment, Stangl said. It

is not an income trust. By

2011, Shelter Bay will be

rolled into Crescent Point,

he added.

“We had no current

operations on that part

of the Bakken play,” said

Herman, thus they were

fi ne with rolling out those

properties to Shelter Bay.

Th e properties in question

are east of Stoughton.

FinancingFor both TriStar and

Crescent Point side, the

money for the transac-

tion will be coming from a

bought deal fi nancing ar-

rangement. Each company

has a syndicate of under-

writers backing them.

“Th ere are so few peo-

ple who can raise money in

this market, a lot of people

are scared to put money

in the stock market,”

Stangl said. “Th at TriStar

and ourselves were able

to show is a good strong

company with good as-

sess, a good business plan,

and a proven management

that can raise money in

this market.”

TriStar’s Talisman acquisitions:Current Production:

4,000 boepd comprised of

3,300 boepd, conventional

(97% light oil) and 700

boepd Bakken production.

Proved Producing Re-

serves: 9.8 mmboe

Total Proved Reserves:

14.6 mmboe

Proved plus Probable

Reserves: 21.1 mmboe

Proved RLI: 10.0 years

Proved plus Probable

RLI: 14.4 years

Undeveloped Land:

197,500 net acres (308.6

sections) of undeveloped

Saskatchewan land includ-

ing 25 net sections which

are prospective for Bakken

Drilling Locations: 61

net Bakken locations (37

booked, 24 unbooked)

57 net Conventional

locations (23 booked, 34

unbooked)

Bakken: 28 net sections

of which only 3 net sections

are developed resulting in

25 net sections of undevel-

oped Bakken land

Fee Lands: Ownership

of freehold mineral rights

on over 135,000 net acres

of land, resulting in overall

royalties of less than 16 per-

cent

Weyburn Unit: 2.2

percent working interest in

the Weyburn CO2 fl ood

Montana Bakken As-

sets: More than 80,000 net

acres (125 sections) of ex-

ploratory land in Montana

Operating costs of

$11.25 per boe

Source: TriStar Oil & Gas

Current production

of approximately 4,000

boepd comprised of 18

percent high netback,

Bakken light oil and 82

percent non-Bakken

crude oil and associated

natural gas;

312 net sections of

undeveloped Saskatch-

ewan land, 25 of which

are in the Bakken light oil

resource play;

16 of the 25 net un-

developed Bakken sec-

tions have no associated

reserves booked as of

March 31, 2009;

70 net low risk drill-

ing locations, 37 of which

are in the southeast Sas-

katchewan Bakken light

oil resource play;

Ownership of free-

hold mineral rights on

217 net sections of land,

resulting in overall royal-

ties of less than 16 per-

cent;

2.2 percent working

interest in the Weyburn

Unit CO2 fl ood;

More than 125 net

sections of exploratory

Bakken land in Montana;

Tax pools estimated

at more than $324 mil-

lion; and

Operating costs of

less than $11.50 per boe

Source: Crescent Point Energy Trust

Crescent Point’s Talisman acquisitions:

PIPELINE NEWS April 2009 B3

Estevan Office:Phone: (306) 634-2681Fax: (306) 636-7227

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Waskada, Man. – Long,

long before the 1980s oil

boom in southwest Mani-

toba put Waskada on the

map, Jolly Construction

was playing in the dirt.

Today, they are still

doing dirt and gravel work,

with a good chunk of their

business coming from the

local oil patch.

Sterling Jolly is the

principal behind the com-

pany, which was started

when his father Jack,

known universally as“J.T”

in the Waskada area, got

his fi rst truck in 1946. Jack

used to do everything from

hauling coal and cleaning

out grain annexes to deliv-

ering groceries and parcels

with a tractor and trailer

around the small village of

Waskada. “Th ey called it

dray in those days,” notes

Sherry Louttit, Sterling’s

sister.

Th e two siblings are

part of seven in the Jolly

clan, including two sets of

twins. Four are still active in

the company – Sterling, the

youngest, who heads up the

operation, Doug, who runs

equipment and acts as fore-

man; Don, Doug’s fraternal

twin, heads up trucking ef-

forts; and Sherry, who runs

the offi ce doing everything

from payroll to safety.

Sherry’s identical twin

Shelly got her start in the

business, and now works

in the offi ce of an northern

Alberta oilpatch company.

John now runs a similar

construction business based

in Calgary. Only Ted, the

eldest, did not get involved

in the business.

Sherry says, “It’s been

a good life. A hard life. Dad

worked the hardest. With

all of us pulling together,

we sort of got a business.”

She notes that you

can count on family, even

if sometimes they seem to

talk about the business all

the time.

In the third generation,

Sterling’s teenage daughter

Amanda helps out from

time to time.

“When I’m out on the

weekend, fi xin’, she’s hand-

ing me the wrench,” Ster-

ling says.

It’s not far from that

age that he began working

for his dad, back in the late

1970s, in his mid- to late-

teens. “I was running my

dad’s equipment,” he says,

noting they would gravel

roads, or put down a pad,

making use of a crawler.

Th ere was a little oil

activity in the area before it

really took off in the early

1980s, Sterling explains.

His fi rst oilpatch work

was for Ken Lee, working

for Omega Hydrocarbons

from Midale. Th at included

hauling “a bit of gravel and

pushing some dirt around,”

he recalls.

Th e 1980s went quick-

ly, and they kept buying

equipment here and there

– a backhoe, a few gravel

trucks, a Cat, another Cat.

It was a good time,

Sterling notes, saying at

one time he took a drive

and saw 11 rigs.

Th ey expanded some

more in the last decades, he

says, noting, “In the last few

years, six to ten years, we

bought quite a bit of stuff .”

Th e company’s pay-

roll varies from four to 15,

Sterling says. “It’s all part

time, mostly local people.”

“It’s pretty hard to get

people to move to a small

town,” he says, noting that

while the sign says Waska-

da’s population is around

the 200 mark, it’s less than

that.

Th ings slow down for

Jolly Construction in the

winter, but heavy snowfall

this year has kept things a

little busier.

Wedged in the south-

west corner of Manitoba,

and just a few miles north

of the US border, those

borders can be a little lim-

iting, making it diffi cult to

expand. Th eir area of oper-

ation goes as far as the Sas-

katchewan border to the

west, with occasional forays

as far north as the Sinclair

fi eld in the north. But, Ster-

ling notes, “Ninety-nine

per cent is right around the

Waskada-Goodlands area.”

“We do munici-

pal gravelling. We have a

crusher. We do farm work.

We were in the grain haul-

ing business, but it’s was

too competitive, so we let

that go.”

“I take it day by day,”

Sterling says, “We just do a

little bit of everything, but

mostly to do with gravel

and dirt.”

Th e last year was a

good one for Jolly Con-

struction, and it’s anyone’s

guess what 2009 will bring.

“It was good, probably

very good, for me,” he says.

“2009 is unpredictable.

“Th ings could change

very quickly. If oil goes back

up to $70 - $80 a barrel, [it

could be] as good as last

year. If it stays at $30 - $40,

I might be unemployed like

other people.”

Sterling notes, “Th e

oil’s done good for this

area, and done well for me.

I’m not a millionaire, but

I’m making a living.”

Doug Jolly of Jolly Construction gets ready to do some lease work east of Waskada, Man., the com-pany’s base. Photo by Brian Zinchuk

In the dirt decades before oilpatch cameIn the dirt decades before oilpatch came


ENVIROTRAP SYSTEMSSecondary Wellhead Containment

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Register Today

Estevan Safety Training Courses (Rural locations speci ed)

CPR/1st Aid – Apr. 1-2; 7-8; 15-16; 18-19; 27-28; May 5-6; 9-10; 19-

20; Carnduff – Apr. 22-23; May 23-24; Carlyle - Apr. 13-14; May

25-26; Redvers – Apr. 29-30

CPR/1st Aid Refresher – Apr. 9; May 13

Confi ned Space – Apr. 17; May 13; Carlyle - Apr. 3; 23; May 28;

Carnduff - Apr. 20; Redvers - Apr. 27

H2S Alive - Apr. 6; 14; 21; 29; May 7; 21; Carnduff - Apr. 24;

Carlyle - Apr. 1; 16; May 12; 27; Redvers - Apr. 28

Waskada, MB - Apr. 7

TDG/WHMIS - Apr. 9; May 12

Detection & Control - Apr. 24; 25

Ground Disturbance - Carlyle - Apr. 2; 17; May 14;

Carnduff - Apr. 21;

OH&S/WHMIS - Apr. 13; Carlyle - Apr. 15

SECOR Refresher - Apr. 1

COR - Apr. 2-3; Virden, MB - Apr. 6-7

Fall Protection - Apr. 1-2; 4-5

Rig Rescue - Apr. 3; 6

Well Service BOP - Apr. 13-16; 20-23

Service Rig Assessor - Apr. 17

Safety Mgmt. & Reg. Awareness - Apr. 20-22

SMRA Refresher - Apr. 23

1st Line BOP - Apr. 20-23

Motorcycle Training - May 8-10

Early Safety Training Week in Estevan & Carlyle - Apr. 13-19

Students ages 16-21 may apply for an Early Safety Training

Bursary

Carnduff Safety Training Week - Apr. 20-24 - C. Space;

Gr. Disturbance; CPR/1st Aid; H2S Alive

ENFORM Classes at the Estevan Campus:

Supervision, Team Leadership & Motivation - Apr. 6

Safety Inspection Skills - Apr. 14-15

Safety Training for Jobsite Supervisors - Apr. 16-17

SAIT Business Courses at the Estevan Campus:

Presentation Skills - Apr. 30

For more info or to register call toll free

1-866-999-7372

Call us if you need a class set up just for you – we deliver

safety training on our site or yours.

We also off er 1A Truck Driving

Call 637-4921 for info.

Check out our website at www.southeastcollege.org

Ahealthy

lifestyle startshere

See us for the area’s largest selection of

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Old Fashion Foods405 Souris Avenue NE

Weyburn, SK. • 842-3003

Estevan – Multi-

stage fracturing technol-

ogy has made southeast

Saskatchewan a hotspot

in recent years, allowing

for several new entrants

into the business. One of

those entrants is Xtreme

Oil Tools of Estevan, lead

by president and part-

owner Cory McGillicky.

Xtreme works prin-

cipally in the southeast,

as well as Kindersley

country. “We spend a

lot of time out there,”

McGillicky says.

Th e company is one

-and-a-half years old,

started from scratch.

How do you get es-

tablished in the down

hole tools business?

“You’ve got to have a

proven product line and

the reputation with the

people you’ve worked

with and the people

working with you,” says

McGillicky.

“We have a pile of ex-

perience running around

the shop. Our newest

tool hand has over 10

years experience.”

Page B5

Xtreme focusXtreme focus

Big wrench for the big man. Cory McGillicky heads up Xtreme Oil Tools of Estevan.


634-3009 Estevan

DENNIS TROBERTDENNIS TROBERTOwner - 421-3807

Norm MeyersNorm MeyersSales - 421-8640Les McLenehanLes McLenehan

Dispatcher/Sales - 421-8810

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Serving Southeast Serving Southeast Saskatchewan’s Saskatchewan’s

well servicing needs well servicing needs since 1972since 1972

Page B5Most of those people are hands McGillicky says he hired into the industry.

Th ey have seven staff in Estevan, plus two in Calgary doing sales.

A typical day may see a hand go out to a rig, and make a bottom-hole as-

sembly. Or they could be running a common permanent isolation bridge plug

to isolate diff erent zones in a well bore. Th en again, they could be working a

horizontal multi-stage frac system.

Th e biggest part of the business is multi-stage fracs, according to McGil-

licky. “Th is has only become big in the last couple years. Th at’s when it took

right off .”

Typically it means isolating an open hole leg for up to a mile, with eight to

12 evenly spaced stages.

Th ey cost more to do than a vertical well, but they also produce more.

Th e tools can be run in with either a drilling rig or service rig.

We look at some packers in the back of the shop, but no pictures, please.

Th at sort of stuff is highly protected, proprietary information. “I can give you

cartoon drawings,” he says with a smile.

A packer used for a multi-stage frac is basically a balloon on a stick, McGil-

licky explains. As you apply pressure to the inside of the pipe, it sheers screws,

and a ratchet mechanism squeeze the rubber outward, securing its placement

against the wellbore. It’s similar to stepping on a pop can, except it expands out-

wards. When you release the pressure, the ratchet holds the elements in place,

allowing it to stay set.

Th ey are placed at regular intervals, interstitially with liner joints.

On the inside of the packer is a seat that blocks the frac ports. A ball is used

to apply pressure to the seat, opening the ports on the packer. You start with

small balls at the end of the leg, and work your way up as you progress closer to

the surface.

Th e balls are eventually retrieved when the well fl ows back.

Th e result is similar to doing a perforation through the liner.

“What makes every packer diff erent is the major components that go in it,”

according to McGillicky

Th is makes up about three quarters of their business, according to McGil-

licky. “Th at is where the money is – big dollar jobs.”

Th ings have slowed down since Christmas, according to McGillicky.

“Th ere’s no doubt, we’ve been hit hard. We’re not like last year. But last year was

a phenomenal year.

“Usually at this point, it’s an utter panic. But not this year, due to the drop

in the prices of oil.

Th ey’ve felt the drop in drilling rigs, down by over half.

“It’s a change in pace of what we doing things at. It was just a real rate

race.”

Th ey now have more time to prepare, and they have seen a switch back to

conventional cased-hole work.

“Th e biggest thing from last year to this year is there was 97 drilling rigs,

now there are 32, 30. Th e overall outlook is a third of last year.”

“Th e 67 rigs were all focused on Bakken liners, basically,” notes Paul Gigian,

with Xtreme.

How do they deal with that drop off ?

Expansion, replies McGillicky. Move into areas you are not in now. “We can

take what we’ve learned here and apply it elsewhere.”

Xtreme looking to focus skills in new areasXtreme looking to focus skills in new areas


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By Brian ZinchukMelita, Man. – Head

offi ce is hardly notice-

able. Indeed, you might

be thinking you’re going

in renew your drivers li-

cense or perhaps to buy

a house or mutual fund.

Yet Antler River Re-

sources, whose president/

CEO operates out of the

Cameron Agencies of-

fi ce on the Main Street

of Melita, Man., is plug-

ging away, drilling wells

and keeping active.

Th e slowdown in the

patch makes it more eco-

nomical for those who

are active, he says. “Prices

are more negotiable now

than they have been for a

considerable time. Basi-

cally it is an opportunity.

When everyone else is

sitting on the sidelines,

I’m just getting going,”

according to Murray

Cameron.

Th e small, privately-

held junior oil producer

has been active Manito-

ba since 1983, when the

extreme southwest cor-

ner of Manitoba became

active with the Waskada

fi eld

“We’re really junior,”

says Cameron. “We’re

one of the smaller com-

panies in Manitoba.”

Th e Manitoba oil-

patch is to Saskatchewan

what Saskatchewan’s oil-

patch is to Alberta – al-

most an order of magni-

tude smaller. “We’ll have

seven rigs working here

and we’ll think we’re

busy,” he says.

“A number of local

residents came to me,”

Cameron says of the

company’s startup. It’s

got six active partners,

and a number of smaller

partners at present time.

“We’re drilling at

Sinclair in the Bak-

ken,” he says. “We have

six wells up there right

now.”

But that’ not where

most of their wells are.

“In Manitoba, we

call it the MC3. In Sas-

katchewan, you call it the

Frobisher.”

“We do a majority of

verticals, but we are doing

a horizontal in the Fro-

bisher,” he says. In mid-

February, Eagle Drilling

Services punched a hole

from them at Pierson,

just west of Melita. It’s

near where CNRL has

a number of horizontal

wells.

“We’ll drill maybe

three over the winter,

another three over the

summer,” he says, with

six wells a year in total.

“Th at seems to be our

goal at the present time.”

Page B7

What we make on the ferris wheel,

Desk and Derrick

The Southeast Desk and Derrick club checked out Prairie Rat Hole Services Ltd. on Mar. 16. There they provided with a dem-onstration of what a rat hole rig does. In the

coveralls on the left is Mel Trobert, owner. Operators Corey Simon, in the rig, and Travis Paterson set up the rig.



1120 East AvenueWeyburn, Sask.

S4H 3E4Ph. 842-7290 Fax 842-7277

Welcome to Industrial Electric

Industrial Electric (Weyburn) Ltd is a major maintenance and installations contractor for manufacturing and processing industries in the oil and gas sector. For over 35 years, IEW has provided high quality maintenance and installation services for some of Canada's largest companies.

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we lose on the merry-go-round

Jack Vanhove, Murray Cameron and Greg Barrows have a brief lunch at the local Chinese cafe in Melita, Man. Cameron acts as president/CEO for Antler River Resources, while Barrows participates with several wells on a farm-in basis. Jack Vanhove does occasional maintenance for Antler River Resources, noting, “I set the jacks.”


Page B6“Manitoba has al-

ways been sort of the

marginal area. When

prices did go up, so does

discoveries. “When oil

was $12 a barrel, I’ve

been around then,” he

notes.

“We’re happy with

$50 to $70 oil. We can

do quite well with that.”

Th e company has

about 22 wells, all but

one were active as of ear-

ly February. All are oil, as

he notes Manitoba has

no commercial gas pro-

duction. Grades are from

light to medium crude.

Th e wells are located

in the Sinclair, Hartney,

Coulter and Regent ar-

eas.

Pointing to the loca-

tions on the Manitoba

Petroleum Branch GIS

map, some of the those

fi elds appear pretty tiny,

barely a few miles across.

Th ey’re pretty small too,

he notes.

In the Bakken, one

well is a dual producer,

pulling from the Lodge-

pole and Bakken forma-

tions.

“We’ve hired CNRL

and Tundra to do our

cleaning, knocking the

water out of it.”

All their wells are

tanked, and trucked to

terminals. “We deliver

to Cromer, and CNRL

in Pierson which is

pipelined into Saskatch-

ewan.”

For operational staff ,

it’s pretty small. Th ey

have an offi ce in Pierson,

with a full time book-

keeper. “We hire two

contract operators - one

for north, one for south.”

“Getting leases is

quite economical,” he

says. It helps to be local,

and that people know

they’re trying to build up

the area.

“I think I’ve paid my

price a few times. We’ve

survived a few rough

times. We’re well funded

now.”

“We know there’s

valleys and rises at times.

It’s part of the business.”

It’s important to

keep lifting costs to what

you can handle, he says.

If the price goes too low,

you have to shut in wells.

“Our lifting costs are

fairly reasonable. [Our]

oil is light, fairly clean.”

Th e company has

been re-investing, he

says, noting, “We basi-

cally pay as we go. We do

joint ventures with vari-

ous companies.”

Greg Barrows is

a partner in Cameron

Agencies, and he’s also

a partner on a number

of wells, on a farm-in

basis. Sitting down with

Cameron and this re-

porter at the local Chi-

nese cafe, Barrows notes

with a smile, “Keeping

you broke keeps you am-

bitious.”

“Once you get going,

the income off the other

wells keeps you drilling

wells.”

Barrows is involved

with fi nancial planning

when he’s not in the

oilpatch, but it’s a good

combination, he notes,

as few people in that

fi eld have an intimate

knowledge of the patch.

Quoting from a

former director, the late

Harvey Clark, Cameron

says, “What we make

on the ferris wheel, we

lose on the merry-go-

round.”


General Oilfield HaulingManitoba, Saskatchewan, Alberta

8 to 30 Ton Picker Service

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Air-Ride Equipment

Tank Rentals

634-8888 - ESTEVAN, SK634-8888 - ESTEVAN, SK

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KellyKellyMember of CAODC, locally owned with four free standing

double rigs and two free standing single rigs

Ron Newett - 861-1062 • Al Vilcu - 861-5253Field Supervisor - Darren Wanner • 861-9990

Box 895, Weyburn, SK, S4H [email protected]

Bus: (306) 842-3401Fax: (306) 842-3402

Southern RangeWell Servicing Ltd.

Owned & Operated by Keith & Janice HansonOwned & Operated by Keith & Janice Hanson#306 Wicklow Centre - 1133-4th Street, Estevan, SK#306 Wicklow Centre - 1133-4th Street, Estevan, SK

SUN VALLEY LAND LTD.

634-6684

www.sunvalleyland.ca • [email protected]

By Brian ZinchukEstevan – Trent’s Truck and Tire Repair, located between

Ounger and Torquay has established a beachhead in the Estevan market, setting up shop in a bay of Dart Services on Estevan’s west side.

Th e Estevan location is called Trent’s Tire, and is owned by Trent Emmel. He’s taking advantage of some space available in his brother Davin’s shop. Davin Emmel and his parter Marty Hanson own and operate Dart Services.

Trent Emmel says “We were always getting calls out here for tires from Estevan.”

Lonnie Elder heads up the Estevan location. He says they saw an opportunity to set up in Estevan.

Operations started on Jan. 5, but he notes people were ask-ing for service in the weeks preceeding the actual opening of the story.

Th e tire shop currently employs four.Th eir product line is mostly just tires right now, according to

Elder, anything from ATV to farm tractors. “I just had a customer come in yesterday with a ’59 Ford looking for wide whitewalls. I found them for him.”

“I’m hooked up with fi ve suppliers,” he notes.Inventory is mostly kept in sea containers, with high

throughout items kept on a rack in the bay.Th e shop is equipped with a tire balancer, car tire machine,

and two large truck tire machines.Th ere’s a one-tonne service truck in the works, according to

Elder. Come this summer, Trent Emmel hopes to begin construc-

tion of a new facility nearby the Dart Services building, on the 10 acres Davin Emmel and Hanson own. “Probably right next door,” Trent says.

“Th e shop we want to build is like a drive through. Come in one end, leave the other,” Elder explains.

Th ey would likely expand into servicing and safety, according to Trent Emmel, in the new facility.

Currently they have enough room to get a B-train semi in-doors. Th at’s useful, because a good chunk of their customer base is local oilpatch companies.

Have they had a good response to their entry in the Estevan market?

“Buddy, unbelievable,” Elder says. A minute later, a customer comes in, asking to set up a new account.

Establishing a Establishing a beachheadbeachhead

Mike Saar of Trent’s Tire in Estevan works on an oilpatch truck in the bay. Photo by Brian Zinchuk


Toll Free: 1-888-638-6433 or 1-306-634-6400Plant: 1-306-388-2344 Fax: 1-306-634-7828

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Chris Scholpp421-0557

[email protected]

• Completions• Consulting & Supervision• Contract Battery Operating• Production Management• Canada & USA 24 Hour Hot Shot Service

Phone: 487-7790Of ce: 487-2201

REDLINE WELL SERVICE

Outgrew last shop in two yearsEstevan – Having

outgrown its last shop

in just two years time,

Supreme Oilfi eld Con-

struction moved into its

new headquarters just

east of Estevan in early

March.

Th e new facility is on

the road leading to the

Shand Power Station,

and is a short distance

from where the new by-

pass around Estevan will

terminate on the east

side, joining Highway

39.

“We’re a full ser-

vice oilfi eld pipeline and

construction company,”

explains Kent Pachal,

controller. Th at includes

building batteries and

gas plants.

Don Biette is the

president of Supreme.

Th e company averag-

es about 110 employees,

depending on the season,

and peaked last summer

around 150. While they

have worked in Alberta,

southwest Saskatchewan,

and southwest Manitoba,

Supreme principally op-

erates in southeast Sas-

katchewan.

Pachal reports they

have been busier this past

January and February

compared to the norm,

but not as much as the

last two years. “Th ere’s

defi nitely a big push

right now,” he noted in

early March, referring

to the lead up to spring

breakup.

Construction on the

new shop started in June,

2008. Temporary of-

fi ce space was located in

downtown Estevan, and

the previous shop was

located on the north side

of the city. Th ey grew out

of it in just two years.

Th e biggest diff er-

ence with the new loca-

tion is space – they now

have lots of it. Before,

Pachal says there was

“nowhere for our guys

to do skid work of the

bolting up of headers.

Even the yard wasn’t big

enough.”

Th ere was no room to

manoeuvre trucks, which

is important, considering

they went from one trac-

tor unit to six.

Th e new home is on

one of six lots, four have

been sold or are in the

process of selling. Border

Insulators will soon be a

neighbour, and two other

lots have gone to a pri-

vate party. One more lot

is in the works.

With 19 acres, Pachal

says, “I think we’re pretty

much set.” Page B10

The washbay in Supreme Oil eld Construction’s new shop is large enough to put two trucks in it side by side.

The welding shop in Supreme Oil eld Con-struction’s new Este-van building is three times large than the area they used to work in. Welder Sarah Schi-estel now has far more space to work with.


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Page B9Th e building is 240

ft. by 100 ft. Th e red-

roofed shop has three

areas, plus offi ces. Offi ce

space fi lls the east end of

the building, followed by

a mechanical shop, weld-

ing shop, and wash bay.

Th ere’s plenty of storage,

and a plan do to more

gravelling of the lot.

Th e welding shop

is equipped with two

10-tonne overhead

cranes, something that

welder Lorne Turk says is

a welcome addition. “It’s

like heaven,” he says with

a smile, working in the

welding area. He’s par-

ticularly happy to have a

fl at fl oor to work on.

Th e large welding

shop, three times larger

than their previous quar-

ters, means the company

can become more verti-

cally integrated, doing

work they would have

otherwise subcontracted

out.

Th e wash bay is big

enough to put several

vehicles in, and wide

enough to put semis in

side-by-side. It will be

used primarily for wash-

ing, however.

In-fl oor heat is in-

stalled in the shop areas.

Th e offi ce area in-

cludes a board room, and

allows for confi dential

meetings. It makes it

easier for management

to work together, Pachal

notes, saying. “It’s im-

portant you run lean and

mean.”

“We’re going to be

able to manage the whole

business better.

Supreme also has

locations in Oxbow and

Kipling.

Supreme Oil eld Construction’s new facility just east of Estevan provides a lot more room for moving around as well as building things like skid pack-ages.

It’s a lot easier to do mechanical work in a large, heated shop. Supreme Oil- eld Construction’s new shop gives their mechanic a new home to tackle

maintenance issues.

Fast growth


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Estevan – With

oil inching up towards

the $50 mark by mid-

March, Brad Bennett,

area manager for Eagle

Well Servicing, antici-

pates more work come

summer.

“We were going real-

ly hard until Christmas.

Come January, it slowed.

But it looks pretty posi-

tive after breakup.”

Bennett says this on

St. Patrick’s day, when

oil is hovering around

the $47/bbl range. It’s

Anticipating more action after breakup

Eagle Well Servicing Rig No. 31 works on an endless tubing cleanout north-east of Kisbey on March 13. BJ Services Company Canada took part.


getting close to what he

feels is a tipping point.

“Most of the companies

are looking at $50+,” he

says.

Prices need to sta-

bilize and stay there, he

notes. Th at’s the thresh-

old where companies

will spend more. “Th e

biggest problem is it

fl uctuates.”

In mid-March,

Eagle had fi ve of seven

service rigs going, drop-

ping to three by Mar. 17.

With roadbans coming

on, everyone’s gearing to

stop, he says.

Bennett expects a

long road ban, given the

weather the southeast

has had. Th ere will be

some work, depending

on what RMs allow, but

breakup will be catchup

time. Maintenance will

be done, and he says,

“We’ve got a bunch of

courses we have to put

the guys through. Road

bans are a good time to

do it.”

B12 PIPELINE NEWS April 2009

Visit us at #1-502 6th Street

Advanced Thinking–Down to Earth ServiceAdvanced Thinking–Down to Earth Service www.cai-esp.com www.cai-esp.com

• Service Technician and Spool Truck available

• For service call Chris at 306.461.6644• For sales call Karry at 306.421.7435• For all other inquiries call 306.634.6281

Estevan Sales & Service Facility Now Open!Estevan Sales & Service Facility Now Open!

Manufacturer of downhole Electrical Submersible

Pumping Systems as well as surface Horizontal

Pumping Systems and Variable Frequency

Generators to the oil industry.

Join the Oil Wives Club of Estevan, a social club for women whose significant others work in the oil patch.

We understand relocation and how hard it may be to meet people in a new town.

With our long established “Links of Friendship” via over 29 clubs in B.C., Alberta and Saskatchewan, you will always have a group of friends wherever the patch may take you and your family.

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Come out and meet with women who share similar interests and take the opportunity to make life-long friendships.

Our next meeting will be held April 16w, 2009.

For more information call Cindy Beaulieu at 634-4970 or Connie Spencer at 634-1012

Check out our website at: www.oilwives.com

Hey Girls!Hey Girls!

Just wanna have

fun?

Frac crew needed a home

Estevan – With a

new frac crew having

moved into Estevan last

summer, Trican Well

Service needed some-

where to put them.

Construction start-

ed on the new shop

started last year, and

hopefully they will be

in it by mid-spring.

Th e new facility, lo-

cated on the southwest

corner of their Estevan

yard, includes four bays,

a drive through wash

bay, and a pit for ser-

vicing and inspection.

When completed the

shop wil have offi ces, a

coff ee room and train-

ing room.

“We needed a frac

crew in the area to pro-

vide full service and

compete with competi-

tors,” explains Rod Fisk,

interim manager of the

Estevan location.

“We had employees

transfer from all areas

of Alberta and some

from BC.”

Th ere are about 15

people on a frac crew.

Th e old shop was

getting too congested,

Fisk says.

Th e main thing is

to have a good place

to do services, a place

where mechanics can

make sure equipment is

looked after properly.

Most of their frac-

ing is in the Bakken,

where Fisk notes, “Th e

technology is just over-

whelming and ongo-

ing.”

Prior to the arrival

of the frac crew, ce-

menting and acidizing

was the key ingredient

in the Estevan opera-

tion. It still makes up

75 per cent of Trican’s

southeast Saskatchewan

operations, with the re-

mainingg 25 per cent

coming from fractur-

ing. Th ey have 55 peo-

ple based in Estevan,

with the next closest

Trican bases set up in

Lloydminster, Provost

and Medicine Hat.

“Guys are still go-

ing to work every day,

but we are noticing a bit

of a slow down,” Fisk

says, noting there has

not been as much of a

big push for the end of

the winter season.

“We try to keep

everyone on board,” he

notes, during spring

breakup. Th ere are sign-

up lists for training

posted in the offi ce, and

there will be plenty of

polishing.

Trican Well Service’s new shop, still under construction, will house the frac crew the company brought into Estevan in the summer of 2008.


This will be the of ce area for the new shop.


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2009

(780) 875-0203 LloydMallLloydminster

Last year was great. This year? A little slower

Melita - Last year

was the best year they’ve

had to date, but the man-

ager of the Melita, Man.,

branch of TS & M, ex-

pects things to slow down

somewhat this year.

“Right now we are

in a slow down trend due

to the price of oil,” says

Wayne Sonnenberg.

TS & M is an oil-

fi eld supply store affi li-

ated with National Oil-

well Varco, with its head

offi ce in Estevan.

“Th ere’s going to be

a reality check with the

way prices have infl at-

ed,” Sonnenberg notes.

“Everybody was short

staff ed, everybody had

to pay higher wages to

hold onto the people you

had.”

“I thinking things

will pick back up when

the price of oil picks up.”

“Talking to a few

guys, it looks like it’s go-

ing to be at least fall,”

Sonnenberg said in Feb-

ruary. Not long before, he

was expecting things to

pick up in the summer.

“Overall, last year was

the best year we’ve had,”

he says, noting there is a

correlation to their recent

expansion. Th ey saw a lot

of crew from Estevan

and Alberta, with plenty

of walk-in traffi c from

out-of-province workers.

“We probably doubled

our clothing sales last

year.”

Sonnenberg has

been with TS & M in

Melita since the compa-

ny opened its doors there

in 1983. “I came down

and started it,” he says,

noting he was originally

with the Weyburn offi ce.

One of the original own-

ers of TS & M had come

into Melita a few times a

week prior to that.

Th is worked out the

best,” he says of the Me-

lita location. “We’re cen-

trally located.”

To the southeast is

the Waskada fi eld, with

Whitewater and Hart-

ney to the east, Sinclair

and Virden to the North,

and Pierson and Gains-

borough to the west.

“You’ve got pools

here and there, not one

great big fi eld,” he says.

Some of those pools

are pretty small, like the

Coulter fi eld, south of

Melita near where High-

way 83 meets the US

border.

“Either you go west

to Oxbow or north to

Virden. We’re kind of the

only one left in town,” he

says of supply stores for

the oilpatch.

Two years ago, TS &

M expanded their Me-

lita operations substan-

tially. Where it used to

be just two full-timers,

including Sonnenberg,

for literally decades, now

they’ve got fi ve full time

positions and two part

timers. Th e new shop,

two years old this spring,

is 8,800 square feet, more

than four times bigger

than their older location.

“We probably have

fi ve to six businesses set

up in town that have a

shop or offi ce,” he says

of the local oilpatch.

“Overall, we have about

25 companies that have

people in town.”

“We probably have

as many employees now

as we did back then, but

not as many businesses in

town,” he says, compared

to when the Waskada

fi eld fi rst put the area on

the map in the 1980s.

He says about 95

people live in Melita but

work elsewhere in the

oilpatch. Th at’s a sub-

stantial chunk of the local

populace, and as a result,

he says, “Th roughout the

day, you don’t see much

traffi c in town. Gone at

six to seven in the morn-

ing are Fast Trucking and

service rig crews.”

TS & M in Melita grew from two full time staff to ve, with a couple part timers. Back row, from left” Lynn Vanbe-selaere, admin; Danial Forster, repair shop. Front row: Wayne Sonnenberg, branch manager; James Ternovetsky, coun-ter. Missing are Jen Schoonbaert, admin; Gerry Vanmackelbergh, repair shop; and Ryan Crepeele, repair shop.


BAKER PETROLITE

Estevan Of ce83 Devonian Street

636-1640

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By Brian ZinchukEstevan – Ever try to

reach for something that

fell behind the couch?

When you’re lying on

the fl oor, with your arm

behind the couch, there’s

only so much you can do

with your hand to ac-

complish your task.

Downhole tools

are, in a way, like that.

You can push, pull ro-

tate or pressure activate

them. But that’s about it.

Pretty much everything

you want to accomplish,

from setting mechanical

grips to hold on to the

well bore, to opening or

closing ports, to infl ating

plugs, has to be accom-

plished using these lim-

ited actions.

Yet the ingenuity of

the oilpatch has creates

all kinds of tools that can

accomplish a myriad of

purposes thousands of

meters underground.

Weatherford Com-

pletions of one of those

companies working

on and with downhole

tools.

“We run production

and completion tools on

drilling and service rigs,”

explains Brian Fuhr, area

manager for Weatherford

Completions in Estevan.

Just what is a down-

hole tool?

Fuhr explains it is

a mechanical tool for

running the well. It can

include packers, plugs,

infl atable tools, anchors,

injection tools among

others. Plugs will shut

off a well, while a packer

is used to isolate sections

of the wellbore. An an-

chor-catcher anchors the

tubing on a traditional

pumping well, keeping

the tubing in tension so

that it is not moving with

the rod string, as well as

keeping it from falling to

the bottom of the well.

Some tools are re-

trievable, while others are

permanently set. Packers,

for instance, are usually

permanently set once put

into place.

Th ere are service

tools, used for purposes

like cementing or acidiz-

ing. Straddle infl ates al-

low you to selectively

isolate a portion of the

hole, and can be used for

swabbing, as an example.

“We assemble the

tools here, then we have

service reps take them

out into the fi eld, to drill-

ing or service rigs.”

Downhole tools can

be run at the end of a

drilling string, tubing, or

even wireline.

With the Bakken

play, frac liners are the

biggest thing right now,

Fuhr explains. Weath-

erford is a later entrant

into the fi eld, he says,

noting they spent a lot of

time on research, devel-

opment and testing.

“We’ve been doing

a lot of packer work for

EnCana CO2 injection

wells. We’ve been work-

ing with them for a few

years.”

Th at has necessitated

the use of nickel-coated

permanent packers, be-

cause carbon dioxide

creates a highly corrosive

environment. Page B15

Getting a lot done Getting a lot done at downholeat downhole

Brian Fuhr, manager of Weatherford Completions Estevan location, says packers are the big thing when it comes to downhole tools in the Bakken-play. Photo by Brian Zinchuk

B15PIPELINE NEWS April 2009

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Page B14

“It’s been good. We

went to nickel because it

seems to hold up better,”

Fuhr explains.

Most packers use a

single shot sleeve, where

a ball is used to apply

pressure to the sleeve,

opening up the ports.

Once opened, they stay

open.

A less common mod-

el is a reshiftable sleeve,

which allows ports to be

opened and closed using

a tool run on the end of

tubing or a coil.

Yet another design

is the monobore, which

uses a tool to shift open

or closed.

Ball-activated de-

signs are the simplest,

and make up for about 90

per cent of sales, accord-

ing to Fuhr. But having

the ability to shut down

a zone is useful, particu-

larly if you may be get-

ting watered out from a

particular zone.

“We’re trying to get

customers interested in

the reshiftable,” he says,

noting there are more

options with that design

down the road.

“We want to keep

doing traditional stuff

too,” he says.

Th e bulk of their

work is in horizontal

wells.

Other than push,

pull, rotate or pressure

activate, are there other

way a person can ma-

nipulate a downhole tool,

like radio signals?

“We’re working on

that,” Fuhr says, noting

Weatherford is looking

at more intelligent tools.

“We’re there more

for optimizing the well.

If they can increase pro-

duction, they’re better

off . A lot of times in this

area, it’s getting rid of

water.”

RebuildRace car motors are

continuously rebuilt. So,

too, are downhole tools.

“Each time a tool is used,

it is redressed,” Fuhr

says. Th at includes re-

placing O-rings, elasto-

mers, sheers or elements,

as needed. When tool

hands are not in the fi eld

running tools, they’re in

the shop, prepping or

rebuilding. “Sometimes

they look fi ne, other

times, tore right up.”

“It’s a big part of our

job. Half of it is in the

shop, half is in the fi eld,”

Fuhr says. “We have a

machine shop we use

quite a bit.”

Right now a lot of

Weatherford Comple-

tions inventory is in Ed-

monton. Fuhr notes they

would like to set up a

warehouse in their Este-

van yard.

RIght: Sometimes you need a good whack to motivate the part you’re work-ing on. This lesson in motivation is brought to you by the shop at Weather-ford Completions, Estevan. Below: Tools for clients ll the racks in the back of the Weatherford Com-pletions shop in Estevan.

Apex wins Carnduff Oil Ladies Bonspiel

Carnduff – Apex won the A-side of the Carnduff

Oil Ladies Bonspiel March 6-8. Fourteen rinks par-

ticipated.

Th e winning rink was skipped by Tricia Macken-

zie. Th ey beat out Zargon for the championship.

Th e second event went to TriStar, skipped by

Sherrilee Orsted, beating out Carsons, skipped by

Larissa Murray.

Th e third event went to Eagle Drilling’s Misti

Big Eagle Bayliss’ rink. Th ey conquered Betts Con-

tract’s Sandra Chadney’s rink.

Weatherford Weatherford knows the tools knows the tools of the tradeof the trade



C-SectionApril 2009

By Geoff Lee

Marshall –Canasonics, a Calgary-based company is making waves in the oil-

patch with new downhole tools that use sonic technology to clean, stimulate and

remediate wells.

Two of the most popular tools are the APT acoustic pulse tool that runs

downhole with joint tubing, and the smaller Sonics stimulation tool, used

with coil tubing.

“We have really good success with injection wells,” said Don Tara-

siuk, the Canasonics rep in the Lloydminster area. “Th at’s where

it really shines.

“It works extremely well opening up the formation

and the perforations to accept a higher volume of dis-

posal water.”

An injection well is used by heavy oil companies to

dispose of the salt water that gets pumped to the sur-

face with oil. Th e perforations in the pipe can get

plugged like they do with production wells.

“We go down with our tool and clean

it out,” said Tarasiuk. “Th is enhances their

disposal rate and capacity. Th ey can pump

so much faster and get rid of the salt wa-

ter into the formation faster.”

Canasonics tools have been used to

stimulate or remediate more than 650

wells including many heavy oil and gas

wells with a success rate of 68 to 87 per cent

depending on the type of well and application.

“It has applications in lighter oil too, wherever

there is a problem plugging off the formations or per-

forations,” said Tarasiuk. “It’s a stimulation and a re-

mediation tool.”

Both tools work by creating a pulse in the fl uid

matrix of a wellbore. Th e pulse is an acoustic pulse

that fl ows through the fl uid. Th e tool creates up to 90

hp of pulse pressure.

Th e unit has a fl uidic oscillator with a shut-off

valve so when one side is pulsing, the other side is

not.

“It creates a back and forth motion of fl uid down

in the hole,” said Tarasiuk. “Th e action moves every-

thing around down there and cleans it out. Slots and

perforations in the formation casing downhole have

a tendency to plug off with whatever foreign material

might be down there. Th e tool and the pulse it gener-

ates, clean it out.”

Th e fl uid used is water with a brine-based heavy

oil chemical from diff erent suppliers. Production wa-

ter is also used in conjunction with a pressure truck

to activate the tool to 2,000 to 2,500 lb. of pressure.

Th e tube-driven APT tool requires the use of a

service rig to pull the tubing and attach the tool to

the end of the string.

Th e smaller Sonics Stimulation tool is inserted with coil tubing and goes

downhole between the casing and the tubing, making it ideal for use in horizontal

wells.

“We are hoping the tools end up to be a large part of the production of heavy

oil here and in other countries,” Tarasiuk. “We are looking at possible

work in northern United States and Australia.

“Th ere’s a lot of new technology coming down the pipe from Ca-

nasonics. Th ere are quite a few diff erent pumping units under devel-

opment and variations on our existing tools.

“We are experimenting with leaving them down an injection

well permanently and injecting through them. So far, we’ve got posi-

tive results from those experiments.”

Tarasiuk says a lot of new stimulation and remediation tools are

springing up in the industry as oil companies need to get oil out of

the ground as cheaply as they can with the greatest volume

possible.

“Th e recovery of heavy oil in this area is about eight

per cent of what is in the ground,” said Tarasiuk. “Th ey

heavy oil companies need all the technology they

can to recover the remainder that is down there.

“Th e stimulation or remediation of the for-

mation makes it so the production reaches the

pumps and makes it to the surface.”

Tarasiuk works one or two days a week

out of his home after been coaxed out of re-

tirement following a lifetime of jobs as a mu-

sician, a crop duster and farmer along with

lengthy oilpatch experience pumping wells

for Husky Energy and drilling wells before

that.

As a Canasonics consultant, Tarasiuk re-

builds the tools after each use and delivers them to

the lease and directs their action down the hole.

“I tell the operator what to do with it, how to oper-

ate it and how to stage the tool within the perforation,”

said Tarasiuk. “It’s a matter of directing pressures and

fl uid rates and the rate of movement of the tool in the

perforations to make sure we’re in the right place and

cleaning out those perforations.”

When it comes to well stimulations with Cana-

sonics, Tarasiuk says oil companies gauge the success

of the tools by the cubic meter per day increase in the

well.

“Th e end result of a well stimulation or remedia-

tion with our tool makes it way cheaper than a lot of

other eff ort companies are trying to achieve down

well,” he said.

Canasonics downhole tools making waves

Don Tarasiuk rebuilds the innovative Canasonics APT acoustic pulse tool after each use.

Photo by Geoff Lee

PIPELINE NEWS April 2009C2

Box 1905, Regina, SK S4P 3E1Ph.: 306-721-8888 • Toll Free 1-800-723-3324

Fax: 306-721-5118 Email: [email protected]

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CANADA/USA – BONDED CARRIER

By Geoff LeeLloydminster –Brock Johnson, Nex-

en Inc.’s lead production engineer for

coal bed methane (CBM) gas, shared

his company’s remedies for gas pains

over its CBM play in northern Alberta

at the March luncheon of the Lloyd-

minster Petroleum Society.

Formally, the topic was “Produc-

tion Challenges with Methane Extrac-

tion from Alberta’s Mannville Coal”

in Nexen’s Fort Assiniboine CBM gas

play where de-watering is a major is-

sue.

“In our wet CBM wells, we start

out without producing any gas what-

soever,” said Johnson. “We will produce

water from one to three months before

that fi rst ounce of gas comes out of the

reservoir.”

“Th en the water rate will drop off

and typically, the gas rate peaks six to

eight months after we start production.

Th ere’s a quick decline before it levels

out in a very steady decline, so it’s long-

term resource.”

Unlike conventional gas sandstone

reservoirs where gas fi lls the voids be-

tween sand grains, in Mannville coal,

the gas is part of the coal itself, lying

1,000 to 1,300 metres below ground

“It won’t release out of that coal

until you produce a signifi cant amount

of water which will de-pressure the

formation allowing that gas to escape

the coal,” explained Johnson.

“By de-watering it you are reduc-

ing the pressure inside that formation

which allows that gas to escape the

coal. It’s that pressure that is holding

the gas in the coal.”

At the wet Mannville CBM site,

gas is captured at the surface. Th e well-

bore is used as a gas/water separator.

“We produce the water up the tub-

ing and typically, the intake is sumped

well below where the gas is entering

the wellbore,” said Johnson.

“So the gas, by gravity will bubble

up through that fl uid level and get cap-

tured on the casing side of the wellbore

and sent to a processing facility in the

area.”

Th e water will travel up the tubing

that will typically lead to a storage tank

at surface and is injected back into a

disposal well.

Today, a wet Mannville well will

produce an economical volume be-

tween 250,000 to one million cubic

feet of CBM gas a day, depending on

the geology of the well.

Th at goal was achieved by a deci-

sion Nexen made to switch the ar-

tifi cial lift system based on Electric

Submersible Pumps (ESP) to a more

reliable and cost-eff ective reciprocating

rod pump system.

“Th e big challenge is the water,” said

Johnson. “Th e water isn’t crystal clean

water that you would hope to produce.

It’s contaminated with fi nes from the

coal or by chunks that probably broke off

the coal during drilling and make their

way into the wellbore.

“Once that dirty water makes it into

the pump, it will have the capacity to

plug the pump or the intake of the pump

so you can no longer produce water.”

Page C3

Nexen relies on Lloyd know-how

Ryan Roen with the Lloydminster Petroleum Society presents a gift to guest speaker Brock Johnson from Nexen Inc.

Photo by Geoff Lee

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Brock Johnson holds a rock from a “wet” Mannville well that can damage a pump.

Photo by Geoff Lee

Page C2“Th e ESP pumps

are an excellent pump

but even the vendors will

tell you they are not very

good for producing sol-

ids. We didn’t anticipate

the solids in our water

that we later found we

had.”

Johnson said be-

fore the switch, it cost

$153,000 for an aver-

age ESP workover and

there were 3.1 workovers

per well per year. With

the rod pumps, work-

over costs plummeted

to $71,000 and only one

workover per well per

year was required.

“We changed our

focus on artifi cial lifts

and with that change

we drastically reduced

our operation costs and

made the Mannville play

very economical,” said

Johnson.

Johnson credits ICI

Artifi cial Lift Solutions

Inc. and Weatherford

Canada Partnership in

Lloydminster for their

technical solutions that

allowed Nexen to com-

plete the system using

hydraulic pump jacks

made by both compa-

nies.

“My experience in

heavy oil allowed me to

keep those companies in

the back of my mind,”

said Johnson. “When we

were looking to address

an artifi cial lift system,

I knew where to get the

surface equipment.”

In fact, Johnson is

well known in Lloyd-

minster social and pro-

fessional circles. He grew

up on his parents’ acreage

in nearby Blackfoot and

attended high school in

Kitscoty.

After he graduated

from the University of

Alberta in 2001 with a

B.Sc in mechanical en-

gineering, he worked in

Calgary for a year and

was transferred back to

Lloyd where he spent

fi ve years with Nexen on

heavy oil projects. He was

also held executive posts

on the petroleum society

board of directors.

“I learned every-

thing I know today from

heavy oil,” said Johnson.

“Th ere is a huge knowl-

edge base here. Th ere are

a lot of guys who know

a lot about artifi cial lift

systems and I was lucky

enough to learn from

those individuals in the

area. I was able to apply

what I learned from my

stint in Lloyd on CBM

production in Leduc.”

Johnson also told

his audience Nexen has

CBM gas plays in the

Horseshoe Canyon near

Wetaskiwin and Cam-

rose, a resource which

he describes as shallower

dryer coal.

“We also have some

test Mannville wells in

that area too,” said John-

son. “Th ere is still some

research and develop-

ment being done and we

are still proving commer-

ciality there.”

Johnson says the wet

Mannville CBM he spoke

of in his presentation was

in the experimental stage

“but we are at a point

now where we have had

a steady state production

of water and gas. It’s been

a commercial property at

Fort Assiniboine for two

years.

“Luckily, we got

through our biggest pro-

duction challenges just

when the price of gas was

so good. Although we are

re-evaluating how fast

we develop the rest of

our land base, we’re still

going ahead with all of

the production we have

on stream and the future

looks bright for CBM.”

Johnson says despite

the recession, unconven-

tional plays like CBM

gas hold a lot of promise.

“Before the recession

it was always easier to ac-

cess conventional plays in

Alberta and in the world,”

he said. “Th ose plays are

getting harder to fi nd so

when demand stays the

same or goes higher and

the supply gets smaller,

the price of oil and gas is

going to go up.

“Th at price has

reached a point where

unconventional

r e s o u r c e s

that were seen as uneco-

nomical in the past, have

suddenly seen a new

light. Th ey are the next

resource to be addressed

in Alberta.”


At Dominion Lending Centres (DLC) – we believe there are only 2 ways to get a mort-

gage in Canada and that’s either from your retail Banker or one of our very own Mort-gage Professionals. The mortgage indus-try in Canada has changed tremendously over the past 10 years alone, and it is not by accident that the Mortgage Broker chan-nel now accounts for well over 30% of all mortgage origination in Canada. With well in excess of one thousand DLC mortgage professional men and women across Can-ada, it’s a trend that continues to grow at a very rapid rate and the ever sophisticated Canadian mortgage consumer is reaping every benefi t. It is important to note that when making the most important fi nancial decision of your life, namely the purchase or refi nancing of a home, the interest rate you pay is absolutely paramount…but it is equally important that the person you deal with is educated and professional in secur-ing the proper mortgage terms that go with that rate.

Some simple points to consider…Your Banker represents the “retail side” of

the mortgage industry and your DLC Mort-gage Expert represents you to the whole-sale side of the mortgage industry. Our im-mediate objective at all times, is to secure the absolute best interest rate commanded by the merits and strengths of our qualifi ed applicants.

Your Banker may be well “rehearsed” when it comes to selling their employer’s products, where as your DLC Mortgage Expert is an accomplished and professional advisor when it comes to all Lender’s prod-ucts.

While your particular Banker only of-fers you limited product choice starting at their higher posted rates, you are benefi t-ing from the fact DLC as a whole, sends 100’s of millions in mortgage business each year to Canada’s foremost and largest Mort-gage Lenders and Brand Name schedule “A” Banks. As a result, our clients benefi t

from the Trust, Confi dence and Security. They are getting the absolute best rates of the day and products to match every one of their mortgage needs.

The math of your interest rate NEVER lies and is undeniably the key factor in whether you will continue to over pay an excessive amount of interest during the life of your mortgage OR possibly worse never real-izing the true buying power of your hard earned dollars. As of February 10, 2009, upon getting my fi nal proof into the SP for this special feature article my 3 year fi xed discounted Broker rate was 3.75%**, a full 2% off the banks posted 3 year fi xed rate of 5.75%. To illustrate this further, lets as-sume a $300,000 mortgage amortized over 35 years and compare the difference in in-terest rates and you decide which is worse:

Your Bank’s quote >> $300,000 @ 5.75% amortized over 35 years = $1647.05 or,

DLC’s Broker quote > $300,000 @ 3.75% amortized over 35 years = $1278.60

The difference of $1647.05 - $1278.60 = $368.45 of pure interest charge each and every month for 3 years or a total of 36 pay-ments = $13,264.20. Now assuming we are all in agreement that your home is quite possibly the biggest investment you will ever make, is it worse knowing that you are over paying every month by $368.45 OR that your hard earned dollars could have actually commanded a better investment or in this case perhaps a better home. Case in point, if you were mentally and fi nan-cially prepared to accept your Banks offer and pay the $1647.05 every month look how much more home you could afford if we now match the DLC Broker 3 year fi xed rate of 3.75% to a mortgage amount that gives you approximately the same payment of $1647.05…and that fi gure comes in at approximately $385,000 @ 3.75% amor-tized over 35 years = $1640.86.

So again you have to ask yourself is it worse knowing that $13,264.20 would have looked a heck of lot better say in your RRSP or that the interest rate is keeping

you from truly owning the house you’ve al-ways wanted and deserved.

Today there are mortgage products and simple techniques available that your own Banker is unaware of or simply unable to make available to you that…

pay-off your mortgage fasterpay less interestfree up more incomeBe rest assured we at DLC not only make

it our top priority to get you into the best mortgage product at the most competitive rates available, but we will also show you how to get out. As your Mortgage Expert, not only do we understand everything that there is to know about mortgages - we will explain it in plain English. At Dominion Lending Centres, we are completely dedi-cated to helping you fi nance whatever your mortgage and lending needs might be…

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By Geoff LeeLloydminster –When it comes to oilfi eld

stuffi ng boxes, Brightling Equipment Ltd. in

Lloydminster has built a better mouse trap that

is catching on with heavy oil customers in a

cost-conscious market.

Stuffi ng boxes are designed to keep oil from

spilling on the ground by redirecting produced

fl uid pumped from downhole to the tank, but

these devices are prone to frequent and costly

breakdowns.

Brightling’s stuffi ng box is called the BEL

FS and features an evolutionary fl oating seal

that company founder Craig Hall designed for

longer life.

“Th e stuffi ng box is the fi rst thing to go,”

said Hall. “Our challenge was to come up with

something that would last longer. If you can the

double the life, you save yourself the down time,

the workover costs and the cost of service crews to clean

up spills on the ground. Th ere is a tremendous cost hav-

ing the stuffi ng box fail.

“Our issue was to improve on the run time and we

also wanted something that would fi t on existing equip-

ment. We didn’t want to sell a new drivehead every time

we put a new stuffi ng box in.

“We wanted to be able to sell something that would

fi t onto equipment that was already out there. Th ere are

thousands of these things out in the fi eld.”

Hall’s leading solution was to design a stuffi ng box

with his fl oating Tefl on seal that eliminates upward or

downward pressure on the seal and reduces wear and

tear.

“Th e advantage is that it lasts longer and saves

downtime,” said Hall who tweaked other parts as well.

“Everybody wants something that works and is cost

eff ective. We’ve had absolutely great feedback. We’re

taking products customers are doing workovers for as

frequently as every two weeks and stretching that out

to a year.”

Hall says his inspiration for the product was a pro-

gressive process based on his analysis of what causes the

failure of so many stuffi ng boxes and he says more prod-

ucts are in the works.

Hall also designed and marketed a Brightling

drivehead with a hydraulically operated gearbox called

a HOG that is compatible with the company’s BEL FS

stuffi ng box.

“It’s very quiet and very small,” said Hall. “It’s what

turns the progressive cavity pump. It has a smaller mo-

tor that can go very fast. It has a small footprint and it’s

very quiet.”

Hall formed the company three years ago and was

joined shortly after by his business partner Daryl Lypkie

whom he worked with at Weatherford for many years.

Hall was an engineering manager and Lypkie

worked in quality control. Both men saw a need to

service local companies better that multi-nationals

could.

“It wasn’t that we saw a product niche but a

service niche,” said Hall. “It seemed people weren’t

serving this area anymore. When we started we had

no customers at all. We walked out of the door and

said this is what we wanted to do and we’ve built

ourselves up from ground one.”

Brightling currently has grown to eight em-

ployees who work out of a spacious shop to rebuild,

repair all makes of rotating stuffi ng boxes and as-

semble Brightling products.

“For the fi rst year, we were strictly a service com-

pany. Th at was kind of a fact-fi nding year,” said Hall.

“Th e last two years, we’ve grown exponentially.”

Even during the current economic slowdown

Hall says business is good. “One of our biggest is-

sues is trying to keep up with demand. Th e market

is strong.

“We are saving down time, so anybody who is cost

conscious knows they have to go with value. Our sales

have been fantastic.”

Brightling reports they have rebuilt and repaired

more than 3,000 existing stuffi ng boxes and sold more

300 of their own designs since startup. Th ey have also

rebuilt a couple of hundred wellhead drives and installed

dozens of their own HOGS in the fi eld.

“We are a service-based company,” said Hall. “We

don’t just fi x the problem and leave it at that. We try to

fi nd out why there is a problem. Th at’s where we are get-

ting our business from.

“We are trying to grow by dealing with customers

on a personal level. As we deal with clients one-on-one,

we spread like wildfi re. Our company grows as people

talk to each other and say ‘Brightling solved my prob-

lem’.

Ainsley Karolat is the focal point of this photo with her avail-able co-workers Arlee Olson, Clarke Code, co-owner Craig Hall and Codey Saville. Photo by Geoff Lee

Better stuf ng box & friendly service drive Brightling’s early successBetter stuf ng box & friendly service drive Brightling’s early success


By Geoff Lee

Lloydminster –Th e ice at the Lloydminster curl-

ing rink was in Briar shape for the start of the 42nd

annual Heavy Crude Open Bonspiel but the curling

was vintage oilmen – as it should be.

Th is is an event where fun trumps competition

except for the diehards in the A-event such as de-

fending champion Weather-

ford BBW with tournament

chair John Stayner aboard.

“We’re doing alright. We’re

2-0,” said Stanyer who was

scheduled to face Monte Arm-

strong’s Granite Oilfi eld Ser-

vices’ squad following a break

for the opening ceremonies.

Catch up on how Stayner,

Armstrong and the other com-

petitors fared in the May edi-

tion of Pipeline News. Final re-

sults were not available at press

time for this edition.

Th e ceremonies were held

after a full day of curling with

a parade of players and dig-

nitaries including Jeff Latos,

bonspiel president and Stayner,

the master of ceremonies. Th e

party was led on to the ice by

the Lloyd Pipers.

Stayner welcomed teams to

the bonspiel and he and Latos

presented Oilman of the Year, Frank Jezowski and

wife Claudette with gifts.

Jewoski threw the fi rst ceremonial rock as ice

maker Brian McLasky rallied his crew to restore the

ice to competition form.

“I think the ice is good so far but it’s starting to

get a little dirty,” he said after a whole day. “You try

to clean it as good as you can and not put too much

pebble on it and keep it nice and clean.”

Asked if he picked up any ice maintenance tips

from watching the Briar, McLasky said, “I’ve had

those guys curl here before. I have made ice for a lot

of those guys. Th ey have given me tips when they

were here.

“Maybe it was in Briar shape this morning but

not now.”

Organizers had hoped for 96

teams but settled for 80 which left

Stayner saying he “was a little disap-

pointed.”

He attributes the shortfall in reg-

istration to the economy which has

aff ected all oilmen’s bonspiels this

year.

“Th e support from the oil and

gas companies and other sponsors has

been really good though,” he said.

Ditto that from Armstrong. “Ev-

eryone’s having fun. We have had

pretty good support from all of our

sponsors,” he said.

As for his team’s prospects? “We

got by our fi rst two games but we play

last year’s winner (Stanyer’s team) in

our next game which will be a little

tougher. We will hang in as long as

we can. Where ever we end up, that’s

where we’ll end up.”

Th e bonspiel wrapped up March

22 and included a banquet at the

Stockade Convention Centre.

Lloyd’s heavy crude bonspiel Lloyd’s heavy crude bonspiel as slick as it ought to beas slick as it ought to be

er-

nt

’re

was

m-

er-

ak

er,

m-

di-

re-

ess

eld

th

g-

os,

er,

The

by

g y p

te

St

po

ist

aff

ye

ga

be

er

pr

sp

go

la

ou

to

w

w

Ted Tryhuba and Monte Armstrong measure a rock for the closest to the button event.

Photo by Geoff Lee



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By Geoff Lee

Lloydminister – Husky Energy employees and

contract staff continue to be a force for good in the

community by presenting local agencies with a re-

cord contribution of $173,000 raised through the

Husky Energy Charitable Campaign.

Th e total includes $105,779.81 from employees

and approximately $86,000 from Husky to match a

portion of the contributions.

“Th ere is a huge demand for money from chari-

ties,” said Dawn Veltikold Husky community rela-

tions offi cer.

“With the economy the way it is, we are really

excited that Husky employees have come on board

and have upped their ante. Th is is the largest amount

of employee pledges that we have received from the

employee complement.

“It will be a challenge to top this next year,”

added Veltikold. Last year, employees raised over

$85,000.

Veltikold and Husky facilities technician Kris

Stokoe presented cheques to representatives of 10

charities favoured by employees at Husky’s corpo-

rate offi ce on Highway 16 on Feb. 25.

“November is our major blitz but we do fund-

raising all through the year and we do a one-time

dispersal of the funds – that’s today,” said Veltikold

minutes before the cheque presentation.

Some of other fundraisers during the year are a

silent auction during an employee fall BBQ, an offi ce

luncheon, a farmer’s market, coins for the campaign

and the pledge campaign kickoff in November.

Th e Charitable Campaign is Husky’s larg-

est fundraiser of the year supported by employees

pledging to assist one of 10 agencies through payroll

deductions that start on January or by a cheque do-

nation.

“We give it to the charities up front and behind

the scenes payroll takes it off employees’ paychecks,”

explained Veltikold.

“Employees have the option to choose how they

want to distribute the funds. Once we have calculat-

ed the percentage of the fund distribution, then we

distribute the Husky portion in the same percentage

allotment.”

Husky also raises funds for charities each year

during the Autumn Leaves Charity Golf Tourna-

ment but organizations that benefi t from that event

are not eligible for funds from the employee Chari-

table Campaign.

“We try to make sure that we are not double

dipping our charities so we can support a broader

group of charities,” said Veltikold.

Prior to involving employees in the selection and

donation to local charities seven or eight years ago,

Husky contributed only to the United Way.

“Once we started getting more employee in-

volvement, then we opened it up to a lot of agencies

that are very worthwhile,” said Veltikold. “Now it’s a

broad spectrum of agencies ranging from employee

wellness to animal welfare and youth groups.

“It’s an employee based campaign and I can’t say

enough about the support we receive from out ven-

dors who provide us with items for incentive prize

draws. Our vendors have been phenomenal to help

us with the charity.” Page C9

employee charitable campaign

Representatives from 10 Lloydminster agencies are all smiles after receiving charitable cheques from the Husky Energy Charitable Campaign. Photo by Geoff Lee


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Husky’s Dawn Veltikold and Kris Stokoe hold up a cheque for MS reps Te-resa Adams, left, and Johanna Green.

It was smiles all around for SPCA’s Trevor Ollen who shakes hands for a cheque presented by Husky’s Dawn Veltikold. Beside Trevor is SPCA rep Kelly Efford and Husky co-presenter Kris Stokoe.

Page C8Th e fi rst cheque for $5,325.84 went to the Bea Fisher Foundation for home

improvements on their existing shelter for persons with developmental disabili-

ties. Big Brothers/Sisters of Lloydminster were presented with $13,407.48 for

after school programs.

Th e Lloydminster and Area Brain Injury Society received $7,536.76 for

program enhancements while the Th orpe Recovery Centre was presented with a

benefi t cheque of $12,250.73 for a new facility.

A cheque for $7589.53 went to the Lloydminster Rescue Squad to purchase

hydraulic cutters and $8,533.83 was given the MS Society of Lloydminster &

Battle River for multiple sclerosis couples therapy.

Th e Lloydminster Handivan Society received $15,782.22 toward the pur-

chase of a new van and the Lloydminster Region Health Foundation will use its

$28,625.95 cheque for surgical scope and local mammography.

A cheque for $30,713.90 will help the Lloydminster and District SPCA

fi nd a new animal shelter facility. Th e Lloydminster and District United Way

was handed a cheque for $44,013.57 to cover approved projects for 16 local

agencies.

A force for good

Macklin Mayor Pat Do-etzel, at the town of ce, works for Astec Fire and Safety in nearby Provost, Alberta.

Photo by Geoff Lee


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By Geoff LeeMacklin – If you

are driving one of the

5,000 vehicles a day that

approach the town of

Macklin, Saskatchewan

,from the intersection

of highways 14 and 31,

think of the asphalt as a

welcome mat.

Macklin is a friend-

ly community of 1,634

people that uses it charm

to host a wide variety of

large and unusual events

like the World Bunnock

Championship and the

Prairie Egg Gathering

of Boler trailer enthusi-

asts who camp at nearby

Macklin Lake Regional

Park.

Newcomers to

Macklin over the past

few years have tended to

be young people drawn

by plentiful and well-

paying jobs in the oil

and gas industry that has

driven growth.

Nexen Energy, Mur-

phy Oil and Husky En-

ergy are some the major

operators in the area.

Macklin has become an

active service and sup-

ply centre strategically

located three kilometers

east of the Alberta bor-

der and 110 km south of

Lloydminster.

Kim Gartner, the

town’s administrator,

says Macklin is putting

its best foot forward to

keep the economic ball

rolling in tougher times

and attract new visitors,

businesses and entrepre-

neurs.

“Our number one

priority is to have our lo-

cal people invest in the

community,” said Gart-

ner. “If you can keep do-

ing that, it provides an

atmosphere where more

young people want to be

here.”

Gartner says young

investors are backing the

construction of a new car

wash under construction.

A new Rona Building

Centre and a motor inn

are scheduled for devel-

opment this year on a

43-acre commercial site

the town purchased on

Hwy. 14.

Th e town has also

purchased land for 34

new residential lots and

about 16 of those will be

serviced this year in an-

ticipation of an economic

rebound.

“We still have inqui-

ries about lots but it’s not

as busy as the last couple

of years,” said Gartner. “I

think there is enough ac-

tivity going on. It’s slow-

ing down, but we hope it

doesn’t last too long.”

A $2 million gym-

nasium renovation for

the Macklin K-12 school

is underway and there

are plans for a daycare,

an outdoor swimming

pool, an historic walk-

ing trail and downtown

beautifi cation and repav-

ing projects.

“Th e oilpatch has

certainly allowed us to

move ahead and build a

new hockey rink, curling

rink and a community

hall, “said Gartner.

“Th e golf course has

seen a lot of upgrades in-

cluding a new clubhouse.

We’ve see a new health

facility go in. Th is is all

in the past 10 years. It’s

been quick and success-

ful and the oilpatch has

been a big part of it.”

Th e construction and

upgrading of Enbridge’s

pipelines beginning in

1995, prompted contrac-

tors Bannister Majestic

Inc. to fund the expan-

sion of the campground

to accommodate annual

summer work crews.

“We’ve had diff erent

pipelines go in at diff er-

ent times,” said Gartner.

“Th e park will fi ll up

completely with pipeline

guys. Th ey are always

willing to help make it

better.”

Th e park boasts 135

serviced sites today and

has made Macklin a sum-

mer destination town.

Th e bunnock champion-

ship draws 4,000 visitors

a year to town.

Young families energize

Economic development of cer, Gary Thompson at the site for new com-mercial development on Highway 31. Photo by Geoff Lee


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Macklin’s character in the oilpatch

This life-like image of a young girl helps to slow traf c near Macklin’s K-12 school. Weatherford sponsored the portable units.

Photo by Geoff Lee

During last year’s gathering of Boler trailer

owners, the Chamber of Commerce rolled out

the red carpet with a pancake breakfast. Th e

Macklin Wildlife Federation ran a trout derby at

the lake.

Macklin will also welcome back yet another

pipeline crew this summer for landscaping work

on Enbridge’s Alberta Clipper pipeline 10 km

south of town.

“Th ere isn’t even a doubt the oilpatch has

had a big responsibility for our community and

the success of it,” said Mayor Pat Doetzel who

works for Astec Fire and Safety in Provost,

Alberta.

“As the oilfi eld has been successful, so has

Macklin.

“Young people have seen there is an oppor-

tunity out there and they weren’t afraid to invest

in Macklin and established themselves here.”

Doetzel says that most of the supply and ser-

vice companies in Macklin have been around for

awhile “so they can weather some of the eff ects

that the industry is going through right now.”

Th e same can’t be said for the town’s infra-

structure that was designed for a community of

1,000 to 1,200 people. A water treatment plant

was built in 2007 for $2.3 million and a costly

new lagoon system and water mains are on the

to-do list.

Gartner says Macklin will receive $140,000

of infrastructure funding from Saskatchewan’s

Ready for Growth initiative to replace old water

lines.

Other projects on the civic wish list like

repaving the old part of town will cost taxpayers.

“It’s getting to the point where people are

saying it’s costing a lot of money to here live but

they are still choosing to do that,” said Doetzel.

Economic development offi cer Gary Th omp-

son helped to celebrate a mortgage - burning

party last year for the arena built in 1997.

“We’re always doing new things,” he said.

“A committee was formed to plan for a new

outdoor pool. Th e cost is $1.6 million and right

now they have raised $700,000.

“Th e whole town is a fantastic place to live.

A lot of young people stay here and build houses

and grow families.”

With about 450 students, Macklin has the

second highest school population in the Living

Sky School Division.

“Growth has been predominately due to the

oil industry and related industries. It’s been phe-

nomenal for us. It’s been excellent and steady,”

said Th ompson.

Building permits for construction and hous-

ing have risen from $545,000 in 2002 to $4.2

million in 2007 but it could be a diff erent story

this year.

“With the downturn, we’ve had a few plans

from diff erent businesses put on hold until

things get back to a more normal state,” said

Th ompson.

“We wonder if we should be advertising. Th e

growth has been there and we’ve stayed away

from that venue. It always seems like we get

more inquiries than we send out feelers for.”

In town it’s unanimous that Saskatchewan

is no longer the poor cousin to Alberta’s en-

ergy industry and that’s another marketing tool

Macklin can use.

“At certain times in the past, I don’t know

if Saskatchewan has been that friendly of a

province to locate in with the PST and the cost

of servicing,” said Gartner. “It’s not as large a

detriment anymore.

Th at tax structure is a lot better and the roy-

alty is a lot better. Th e PST is a lot lower. It all

adds together to create a better environment.”

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Macklin –Justin Bast wears two hats on the job in

Macklin Saskatchewan.

One is for his role as branch manager of MRC-

Midfi eld and the other is when he is called to duty as

the fi re chief of the Macklin & District Fire Depart-

ment.

Bast is a former long-term alderman on town

council who is taking steps to lessen the impact of the

economic slowdown on his operations and protecting

jobs and lives in the community where he grew up.

“We’ve slowed down by about 35 per cent,” said

Bast. “We haven’t had to lay anyone off . We had a few

employees who wanted to be maintenance contrac-

tors, so we set them up as contractors. Th ey pro-

vide maintenance for hydraulic pump units that

are in the fi eld.

“We’ve also worked hard on reducing

our inventory to carry more of what we sell

and less of what we don’t.”

Th e Macklin Midfi eld branch is one

of 85 branches in the Midfi eld Group of

Companies and specializes in the sales and

service of oilfi eld supplies such as pipes,

valves and fi ttings.

Th ey also sell and service progressive

cavity pump systems and provide fi eld ser-

vice mechanics for all types of facility work

such as pipelines and battery construction and

well completion tie-ins.

Midfi eld opened in Macklin in January, 2006

to tap into the heavy oil market.

“It’s been successful so far,” said Bast. “Most of our

business is within a 40 kilometre radius of Macklin for

heavy oil clients.

“It was good timing to come in when we did. We

are not looking forward to the downturn in our third

year of business, but we are committed to being here.

“Th e maintenance side of the business tends to

stay as busy or grows during slowdowns as companies

utilize their customers’ property rather than purchase

new.

“We are hoping to grow our service side by add-

ing more fi eld service mechanics in the future but it’s

tough to predict with the current state we are in.

“From a community standpoint, there is noth-

ing good that can come from a

slowdown. If people lose their jobs, they spend less and

everyone suff ers.”

Community and workplace safety got a big boost

in March when the fi re department took delivery of a

new rescue vehicle.

Th e purchase was made possible, in part, to a

$75,000 donation from Nexen Inc. and a $25,000 do-

nation from Canadian Natural Resources Ltd. during

a 2008 fundraising drive.

“Th e oilfi eld has always supported us,” said Bast in

his role as fi re chief. “Th e oil companies are involved in

their communities.”

Th e new rescue truck can carry seven fi refi ghters

to a call and is equipped with a compressed air foam

system for extinguishing oilfi eld fi res and fi res from

vehicle accidents.

“Fires in the oilpatch can occur in tanks or

shacks,” said Bast. “Th ere are also a lot of vehicle

fi res. Now, we can put them out a lot easier.”

Bast grew up in Macklin and got his start

in the oilfi eld service sector in 1992 with

BMW Monarch, purchased by Weather-

ford, before managing the Midfi eld shop

located on the busy commercial strip on

Highway 31.

Midfi eld boasts a 12,500 square foot

warehouse that includes $1.4 million of in-

ventory, a service bay and space for pump

sales, repairs and maintenance.

Sucker rods, tubing and downhole pumps

are some of the most common production

products in demand.

Bast says the buzz on the street is that oilpatch

activity will pick up in the fourth quarter, but he cau-

tions the spring break up may be tough for everyone.

“Most of the businesses have a lot of owner opera-

tors. Th ere are the guys who get hit. Th ey don’t get the

hours.

“When it’s slow, we do maintenance on our ac-

counts and catch up on paperwork. It’s also important

to pay attention to your customers.

Mid eld takes steps for slowdown and safteyMid eld takes steps for slowdown and saftey

Justin Bast, MRC - Mid eld


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Calgary –If Don Herring were at the controls of the

Alberta’s energy legislation, he would have reset Alberta’s

royalty regime to what it was before Jan. 1, rather than

introduce the short-term stimulus announced March 3

to revive drilling.

“Quite frankly what would be a better announce-

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look at the competitiveness of their fi scal regime and

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Th e Stelmach government is off ering a $200-per-

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Th e three-point program runs from April 1 to

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at keeping service rigs busy cleaning up inactive oil and

gas well sites.

Th e energy incentive package follows Alberta’s con-

sultation with representatives from the energy industry

and the fi nancial community about the current challeng-

es facing investment and oil and gas activity in Alberta.

CAODC recently downgraded its forecasted drill-

ing activity for 2009 in the wake of low commodity pric-

es and tight credit that small oil companies rely on and

had warned of a further downgrade if conditions don’t

pick up.

“While we cannot make up for the impact that

global fi nancial markets are having on Alberta, we are

doing what we can,” said Energy Minister Mel Knight

at the news conference in Calgary where the incentive

package was announced.

“Th is short-term incentive program introduces in-

novative ways to help spur activity in our energy drilling

and service sector during this economic downturn.”

Th e number of wells CAODC expects to be com-

pleted in 2009 is projected to be approximately 11,184,

compared with the 16,844 wells completed in 2008.

Herring says the province’s announcement “gives

us some confi dence that we won’t have to decrease the

forecast again.

“It doesn’t give us a lot of confi dence that we would

actually make a positive adjustment but it might keep us

from making a negative one.”

Herring thinks the fi rst two elements of the incen-

tive program are good for drilling while the third ele-

ment will help the service rig industry.

“What they’ve done is recognized the costs of drill-

ing so they are off setting the costs,” said Herring. “Th e

second element is introducing a fi ve per cent royalty rate.

Th is is a lower rate than what would have been in place

if this program wasn’t there.

“Th is is all very much a short term issue and inves-

tors have to believe that that matters. Th e government

has also said depending upon how the program is used

or works or what happens with commodity prices, it may

be extended.

“Th e evidence in the past suggests that you if can

‘come to the party’ and introduce some adjustments

temporarily, people will respond positively to them be-

cause there are tied to a fair regime.

“Now what you’re asking them (investors) to do is

to come in recognizing that they object to the platform

itself. Really, what you are doing is enticing them to the

investment circle using a short term stimulus. Some in-

vestors will do it and others will say forget it. Th at’s the

risk they take.”

Based on drilling forecasts, the two initiatives could

cut $1.5 billion from provincial energy royalties but

Herring says “no one knows what the cost of the pro-

gram is.

“It may not cost them anything if investors don’t re-

act to it. Th at fi gure has a huge assumption on take-up.

Th ere may be very little take-up for all we know. If there

is no take-up, there is no cost.”

Th e energy incentive package follows consultation

with representatives from the energy industry and the

fi nancial community about the current challenges facing

investment and oil and gas activity in Alberta.

Th e province will monitor the impact of the incen-

tive program, and at the end of the year, assess whether it

is necessary or appropriate for it to be continued.

Lobby prefers changes to Alberta’s royalty structure


17th Williston BasinPetroleum Conference

& Prospect Expo

Prospect Expo

Register Onlineat

www.wbpc.ca

April 26 - 28, 2009Delta Regina and

Casino Regina Show Lounge,Regina, SK Canada

For Expo booths, call (306) 787-2577For Sponsorships, call (306) 787-9104

All other information, call (306) 787-0169or Email: [email protected]

Workshops

Technical TalksActivity Updates “Hot Plays”

Regina –News of a

big oil discovery has a

way of attracting a large

crowd.

More than 1,000 en-

ergy professionals, mainly

geologists and engineers

from Canada and the

United States, could be

heading to Regina for

the 17th Williston Basin

Petroleum Conference

April 26-28.

Th e topic of collec-

tive interest is the famous

Bakken oil play, specifi -

cally the subsurface geol-

ogy and the technology

that made the Bakken

bonanza possible.

Th e Bakken forma-

tion of the Williston

Basin is a success story

of horizontal drilling,

fracturing, and comple-

tion technologies result-

ing from the geological

analysis of data on the

decades-old producing

area that has helped to

identify uptapped re-

sources.

“Th e basin is becom-

ing better understood

because there is certainly

more focus and there’s

been more experience

with extracting oil from

the Bakken,” said Chris

Gilboy, event co-director

and director of petroleum

geology with the Sas-

katchewan Ministry of

Energy and Resources.

Oral presentations,

poster displays and

workshops will focus on

practical applications of

geoscience and engineer-

ing technology that help

identify what works –

and what doesn’t work –

in the search for new hy-

drocarbon accumulations

and the development of

known pools.

Th e conference is

sponsored by Energy and

Resources along with the

North Dakota Petroleum

Council and the North

Dakota Department of

Mineral Resources.

“We are hoping for

about 1,000 people,” said

Gilboy. “Last year, in

Minot (North Dakota),

there were about 1,370

people which was a huge

increase over previous

numbers. With the in-

terest in the Bakken last

year, there has been a

major increase in atten-

dance.”

In the early years,

these conferences were

known as the horizontal

well workshops that drew

about 400 people.

Gilboy says now the

emphasis is on anything

that is helpful in terms

of technology or geosci-

ences knowledge to help

with exploration and de-

velopment of the petro-

leum industry.

“Th e conferences

seem to be important be-

cause they are good net-

working opportunities,”

he said. “I think that is

one of the main reasons

why they tend to be pret-

ty well attended.

“Th ere is a lot of shar-

ing on an individual level.

Th e technical sessions are

also a value to people.”

Garth Simmons, who

works with engineering

services at Energy and

Resources, is lining up

some of the presenters

including TriStar Oil and

Gas on its operations in

the Bakken in near Este-

van.

“Th eir presentation

will look at the diff er-

ent lengths of horizontal

wells that are being tried

along with fraccing,” said

Simmons.

“We do ask our pre-

senters to focus on case

studies rather than on

theoretical possibilities.

It’s really experience-

based presentations.”

Presentations will

also be made by compa-

nies from North Dakota

and there will be a series

of speeches on every-

thing from an overview

on exploration and devel-

opment in Saskatchewan

to a review of shale gas

prospects in southwest-

ern Manitoba.

“Th is a technical

conference for geologists,

engineers and some lands

people,” explained Sim-

mons who backs Gilboy’s

prediction that atten-

dance will be strong de-

spite the economic slow-

down.

“It’s held during

spring break up,” he said.

“I don’t think there are

many companies busy

during that period. One

thing about having it in

Regina is that it’s easier

for the Canadian opera-

tors to get to. We tend

to get more people from

Calgary the years we hold

it in Canada.”

Meanwhile, Gilboy

added when things are

really busy, “a lot of the

geologists and engineers

don’t have time to go to

conferences. It’s not high

on their priorities.

“As long as people

are not losing their jobs,

there is more time avail-

able for people to attend

to share their knowledge

at these events.

“Th ere will be a lot

a people coming in from

the U.S. and Calgary. Th e

city will benefi t from

that.”

Williston Basin conference

We are hoping for about 1,000

people- Chris Gilboy,

Event co-director”

“mmhh WW

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By Geoff LeeLloydminster – Th e

Lloydminster chapter of

the Petroleum Society of

Canada has voted 92 per

cent in favour of joining

forces with the Society of

Professional Engineers

(SPE). Th e vote was cast

in March with a 40 per

cent voter turnout.

“Th is gives us a

step toward closing that

merger,” said Ryan Roen,

public relations manager

for the Lloydminster Pe-

troleum Heavy Oil Sec-

tion.

SPE is a professional

association with more

than 88,000 members

worldwide engaged in

energy resource develop-

ment and production.

Roen broke the news

of the pending merger

at the March luncheon

in Lloyminster and ex-

plained merger talks

have been ongoing for

over a year.

“Th e petroleum so-

ciety and the SPE have

a lot of overlapping ob-

jectives in terms of pro-

viding their membership

and our membership

with resource technol-

ogy and advancement,”

he said.

“With SPE being a

major international or-

ganization, it just makes

sense that we are moving

in a direction to combine

with them.”

SPE is a leading re-

source for technical in-

formation related to oil

and gas exploration and

production and pro-

vides services online and

through its publications,

meetings, and other pro-

grams.

Roen advised the

luncheon that until all

the paperwork is signed

the vote means, “it’s basi-

cally a name change from

the Lloydminster Petro-

leum Society to SPE.”

Roen also explained

that existing member-

ship with the Petroleum

Society would automati-

cally roll over to the SPE

when the merger is of-

fi cial.

“Any current balance

we have will remain in

Lloydminster to spend

on Lloyd activities,” add-

ed Roen.

“We will still carry

out the same lunch ‘n

learn that’s here and we

will also still hold our

annual heavy oil sympo-

sium. We will be able to

leverage SPE knowledge

and resources.”

Anyone with sub-

missions for the 16 an-

nual symposium to be

held in Lloydminster

Sept. 16-17 is asked to

contact Mahesh Mak-

kar at Husky Energy at

(306) 825-1298.

Petroleum society votes to merge with new professional body

Ryan Roen from the Lloydminster Petroleum So-ciety.


By Geoff LeeLloydminster – Dia-

mond B Transport,

based in Lloydminster, is

maintaining good trac-

tion in the heavy haul

business despite the slip-

pery slope of a down-

ward economy.

“Th is year for us has

been good so far because

we have a large contact

list of clients. You really

need the contacts,” said

owner Murray Barnett.

Diamond B special-

izes in the coordination

and transport of over-

sized and overweight

moves – mostly large oil-

fi eld tanks – from 400 to

4,000 barrels to clients

from Manitoba to Brit-

ish Columbia.

“Th e slowdown

hasn’t hit us, but it’s

coming,” said Barnett

who hasn’t had to lay off

any of his 11 employees,

but he has put off buying

new equipment until the

oilpatch perks ups.

“If we were just in

the Lloydminster area,

we’d be dead,” he said.

“We are on the road ev-

ery day. We just haul ev-

erywhere.”

Th e moves are ac-

complished by brute

force with Diamond B’s

fl eet of powerful winch

and highway tractors

and pickers with a six

ton, 30-ton and 45-ton

lifting capacity.

Th e fl eet includes

tri- and tandem axle air

ride hydraulic tank trail-

ers, oilfi eld lowboys and

drop deck trailers.

Diamond B also

hauls cranes, buildings,

treaters and separators

which refl ect the com-

pany slogan, “If it is big

n’ ugly we can haul it.”

Barnett has a set of

framed photographs in

his new offi ce highlight-

ing the biggest move

in company history, a

38-foot diameter tank

moved from North Bat-

tleford to a lease site in

Belle Plaine.

“We haul from the

tank manufacturer right

to the lease site and stand

them up,” said Barnett.

Th e hydraulic trail-

ers can right a 2,500 bar-

rel tank and Diamond

B’s picker trucks can

set a 1,000 barrel tank

in place. A crane is de-

ployed to unload heavier

oilfi eld cargo.

Diamond B hauls

on highway and winter

roads and has a 48-wheel

trailer that can carry up

to a 130,000 lb. payload.

Each move is quar-

terbacked by Barnett or

manager Birnie Syrnyk

who keep in touch with

oil company engineers

who design the tanks

and batteries and expect

cost quotes before com-

mitting to the transfer.

Th e transportation

process begins with a

series of hauling permits

and phone calls to au-

thorities such as power

companies, city utilities,

railways and the RCMP.

“Some of the big

moves involve a lot of

coordination to set up

the move before it hap-

pens,” said Barnett. “We

get into places where you

have to have the RCMP

stop traffi c.

“In some places, you

have to drive the wrong

way to avoid overhead

structures like signs. “

Diamond B has sev-

en pilot trucks and com-

pany drivers have report-

ed people holding them

responsible for being late

for their hairdressing ap-

pointments.

“We stopped a judge

one day and he said he

was going to be late for

court,” said Barnett with

a grin. “When we get

power crews lifting lines,

everything waits.”

You can recognize a

Diamond B convoy by

the sight of the compa-

ny’s white coloured Ken-

worth trucks and white

GMC pickups.

Barnett thinks the

oilpatch is in for a slow

summer but he expects

activity to pick up in

the fall. “We will wait

and see what the patch

brings,” he said.

Diamond B also

moves a lot of equipment

besides tanks which gives

the company a competi-

tive edge.

“We do some of the

biggest moves and a lot

of stuff that other haul-

ers don’t want to do,”

said Barnett.

Barnett has worked

in the oilfi eld hauling

business for more than

30 years and launched

Diamond B with his wife

Echo seven years ago.

“I just decided to

work for myself,” he ex-

plained. “It was the best

decision I made.”

Barnett recently

moved his dispatch op-

erations from his home

to his shop just west of

Lloydminster to estab-

lish improved landline

communication with his

fl eet drivers and custom-

ers.

Momentum drives Diamond B Transport

Two pilot vehicles guide the de-livery of a 4,000 barrel stainless steel tank. Photo submitted


Maidstone – Th ere were lots of high-fi ves and superlatives thrown about on

the fi nal day of competition at the seventh annual Maidstone Oilmen’s Curling

Bonspiel, and deservedly so.

Although only 19 out of a possible 28 teams showed up, everyone, including

Bruce Slade on the A-event championship Hurricane Industries Ltd. team, went

home with prizes and good memories.

Slade and his team each won a $200 gift certifi cate from Keranda Industrial

Maidstone bonspiel comesand goes with three cheers

Keeping a watchful eye on the rock are Glen Chambers and Wayne Kyk-kanen with team 3K Oil Services. Photo by Geoff Lee

Supplies Ltd. for their 8-2 win over SMK Carson Farms and the right to be asked

how they did it.

“Our skip didn’t miss a shot,” explained Slade who admitted he fi red a few

good stones of his own. “Th e important thing was the third and the skip didn’t

miss anything.

“It wasn’t as big of a tournament that we would have liked, but it was a good

tournament. We always have fun at the Maidstone.”

Th e event was held March 5-8 and included an auction Calcutta, a sponsored

breakfast by B & M Coil Tubing from Maidstone, and a banquet and entertain-

ment featuring the comedy of Paul Sveen.

Don Tarasiuk with team Hurricane was the MC for the banquet, and in his

words the entire event was “Excellent. It’s a great place to join up and network

with a lot of people that work in the oilpatch. Th e banquet was excellent, the en-

tertainment was good and the food was great, so you can’t beat that.”

Keranda sponsored gift certifi cates for the top four winners in the A-event

while TWB Construction Ltd. did likewise for the B-event and Husky Energy

followed suit with the C-pool.

Kudos were also heaped on ice maker Cal Donald for his work in preparing

and pebbling the rinks that were in championship form on the fi nal Sunday.

Moments before stepping on to the ice with his Weatherford BMW team-

mates to take on team 3K Oil Services in the B-fi nals, Monte Armstrong let it be

known he came for the fun.

“It’s always worth coming here. It doesn’t matter how you make out curling.

It’s fun to be here,” he said.

Monte normally skips but because he missed Friday’s game for a family mat-

ter, he penciled himself in as a front end sweeper for the fi nals. It’s a strategy

that helped Weatherford down their 3K opponents 5-1 in a game described by

Monte’s brother, Mickey.

“Actually, we played pretty steady. It was a clean game,” he reported. “Our

competition was an awesome team. Th at’s the reason why they made it to the B

fi nal. We got one in the second and stole three in the third and it went from there.

We just kept it clean from there and they ran out of rocks.” Page C18


MLA Mike Chisholm and his wife Heather check out the action.

Page C17It’s typical at the Maidstone that a player like Jordi Johner from team Keranda

lost his C-event semi fi nal game but still felt he was richer for the experience.

“We were just lucky that we made it this far,” he said just minutes after step-

ping off the ice. “Th is is our sixth year. We try to make it a family team. Th is year,

two of our family members couldn’t make it, so we picked up a couple of guys and

made it to the C semis. We ended up losing, but I made some money and had

some fun.”

Taylor Field who skipped Midwest Truck to a 6-5 win over Amazon Hotshot

Service in the C- event fi nal credis the victory to what he said was a lucky start.

“Th e other team had a couple of bad breaks,” he said. “We got up 5-0 after four

ends but they did come back and make a game out of it. We played fi ve games. It

was a really good tournament.”

Among the spectators was Turtleford/Cut Knife MLA Mike Chisholm and

his wife Heather who popped in on their way to Regina to catch the start of the

A event fi nals.

“Some years they’ve had more entries but they certainly have had lot of action.

It’s been a really successful weekend for Maidstone,” he said.

“One of my friends, Jim Johnston, is curling in the A fi nals with the SMK

team. I am partner on the Calcutta for that team so I have a monetary interest as

well as just taking it in.”

Another person with money on his mind was curling club president Scott

Owens who estimated the event would raise about $3,000 to $4,000 to help main-

tain the three sheets of ice. Th e club also gets 20 per cent of the Calcutta money

pot.

“Other than the low turnout, every aspect of the event was great, “” he said.

“Th e organizing committee did an excellent job, the draw prize committee did a

great job and the ice conditions were fantastic. We had lots of compliments about

that.

“Th e banquet was fantastic and the comedian was good. He appealed to ev-

eryone.

“It’s a lot of work to organize. It requires a lot of volunteers. All members of

the club stepped up and contributed.

Sponsorships make the happen and the full list of sponsors was included in

the program guide.

Team Weatherford’s Mickey Armstrong , his brother Monte and Glen Moore sweep a rock on route to their B-event championship. Photo by Geoff Lee

Maidstone holds seventh annual Oilmen’s bonspiel


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Lloydminster –An ounce of prevention is worth a pound of cure.

Endeavor Machining Solutions is using this philosophy to market its thermal spray coating so-lutions that can extend the life of oilpatch equip-ment subjected to abrasive and corrosive wear.

High pressure seals, packing surfaces, rotary drive components and pump components fi t the bill for Endeavor coatings in a cost-conscious economy.

“Coatings are a value-added product,” said owner Brad Matthews who started the business in Lloydminster during the boom of 2008.

He is keeping busy in the downturn with cus-tomers who he says are “looking for diff erent av-enues to save money.

“Th e phone is ringing more from companies that are re-evaluating how they do business and their products, to look at how far ahead they can be of the competition when the economy picks up, by improving their products now,” said Mat-thews.

“If you have a part that is relatively inexpen-sive as opposed to your entire assembly such as a pump which is $1 million and a small part that is $1,000, it makes more sense to protect that part from failure as opposed to having to tear that pump out in six months.”

Endeavor specializes in the thermal applica-tion of tungsten carbide and chrome carbide coat-ings applied by a high-velocity oxygen fuel spray system which creates a strong mechanical bond.

“Th e main use of tungsten carbide is to create a hard abrasion-resistant surface,” said Matthews. “Th e tungsten coating is a very hard wearing sur-face. Th is coating is good for any high pressure seal or any type of product that is exposed to abra-sive wear.”

Most of the coatings start off in a powder form and are applied at a slow rate in thin layers until the specifi cations are met.

“Tungsten carbide coating is bonded with about 12,000 psi,” said Matthews. “Th at means it

could be broken off if hammered but it’s for a seal application not for absorbing impact.

“Most of the work we do is with cylindrical parts but it’s not limited to that. Th ere’s a lot of fl at work as well.”

Endeavor uses an aluminum bronze coating that Matthews describes as “as sliding wear coat-ing” that can be used to extend the life of stuffi ng boxes for positive displacement pumps.

Th is is applied using a low-velocity combus-tion powder and combustion wire that is com-monly used to protect a cross head for pumps as it ‘slides’ in a casing.

Th e same process is used to apply a stainless steel coating for corrosion protection and for re-storing worn surfaces of parts.

“Th e spray and fuse coatings are a metallur-gical bond that is similar to welding so they can’t break off ,” said Matthews. “Th ey are more of an impact and wear-resistant coating.

“Coatings will save a customer a lot of money for making a part last longer or repairing an exist-ing part and making it last longer.”

Endeavor has a machine shop for preparing parts for coatings as well for fi nishing parts after the coatings are done.

New parts can be manufactured too but as Matthews likes to say, “Our philosophy is that we are a coatings shop fi rst and a machine shop sec-ond.

“We do a lot of consulting with a customer who will call and ask me, ‘Can you fi x this part?’ or ‘Can you make a part and coat it?’.

“We have all of that happening. Over the past year, we have defi nitely got more and more calls about fi xing parts. We are defi nitely repairing more than we are manufacturing new.

Endeavor’s machinists will use a cylindrical grinder with high abrasive diamond wheels for grinding the coatings to a shiny fi nish.

“It’s a very precise machine,” said Matthews.“We also have a numerically-controlled turn-

ing centre for doing multiple parts for prepara-tion and fi nishing. We have a variety of mechani-cal machines for repairs and manufacturing.”

Matthews has four employees and more than 15 years of personal experience working with ro-tating equipment in diff erent types of pumps in the oil and gas industry that allows his to off er so-lutions to his customers in the heavy oil sector.

“I have found it’s an advantage in this busi-ness to understand what a part does and how it works,” he said.

“Th at gives you a better understanding of how it needs to be fi nished and what kind of tolerances it requires. Th at knowledge helps in the parts last-ing longer. I’ve gained a lot of business because of that.

“When a customer feels more comfortable that I understand what his part does and I am asking questions, they realize I can be a benefi t to them.

“I am not just a shop that will apply what they want. I can actually off er solutions to their prob-lems.” So, it’s been pretty steady and hopefully the future holds excitement for us.”

Endeavor is beginning to tap into coating applications for the agricultural sector and Mat-thews sees blue sky ahead for coatings uses and his own business.

“Tungsten carbide is now used as the chrome replacement in the aerospace,” he said. “In the last 10 years it’s come on stronger because of the economic value of it to make parts last longer.”

Endeavor’s thermal coatingstimely in a cost-conscious oilpatch

Joel Bolton polishes a tungsten carbide coating on a Moyno pump shaft.

The shiny top part of this centrifugal pump shaft held by Endeavor owner, Brad Matthews, has a tungsten carbide coating.

Photo by Geoff Lee


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By Jayne FosterFreelance Reporter

North Battleford - SaskPower is looking at a seri-

ous gap growing between expected demand for power

and what its aging facilities can deliver.

With up to 10 power generating sites to be re-

tired over the next two decades, SaskPower is looking

to fi ll the gap with a mix of power producing options.

Amidst the mix is a plan to build a natural gas pow-

ered three-turbine power plant in the North Battl-

eford area. Th ere is also a two-turbine plant going in

near Kerrobert.

When they fi re up the two plants, in 2009 and

2010 respectively, SaskPower’s capacity should reach

approximately 3,800 megawatts (MW), meeting ex-

pected demands for that point in time. But demands

of 5,200 MW or more are projected over the following

20 years.

SaskPower already has four natural gas powered

stations. Th is type of electricity generation is typically

favoured for meeting peak loads, as the aero derivative

turbines can be turned on and off quickly to meet de-

mand for electricity at peak times – such as hotter pe-

riods in the summer, or colder periods in the winter.

Such turbines also produce up to 50 per cent less

carbon dioxide per MW-hour than traditional coal

fi red plants, says SaskPower, fi tting into their plan to

replace aging facilities with cleaner ways to generate

power.

On Feb. 25 in North Battleford, SaskPower held

an open house information session regarding its plan

to install approximately 140 MW of natural gas-fi red

simple cycle turbines in the area.

Simple cycle gas turbines (SCGTs) can be in-

stalled fast enough to meet 2010 power needs, says

Cheryl Stang, an engineer with SaskPower’s Supply

Development department. Th ey are also relatively low

cost installations and allow for operating fl exibility.

SaskPower has already made the rounds present-

ing its plans to local urban and rural municipalities and

First Nations.

Th e exact location for the $250 million project is

yet to be determined, but three sites have been short

listed from fi ve potentials, with a possible decision by

the end of March, said Bernie Bolen, Supervisor of

Environmental Issues Management. Input from the

open house will defi nitely be used to help make the

decision, he said.

Th e three sites being considered include a location

within Parson’s Industrial Park in North Battleford, an

area along Highways 16 just outside of the city lim-

its, and a parcel of Poundmaker First Nation property

southeast of the city.

Th e size of property needed, says Elaine Pearse,

land offi cer with SaskPower, is 400 metres by 400

metres, which is about one quarter of a quarter sec-

tion of land. Ideally, SaskPower will negotiate with

the landowner of the desired site to purchase it.

Th e site decision is to be based on the availability and

cost of the fuel supply, connecting to the transmission

grid, transmission system effi ciency and future trans-

mission system benefi ts (Up to 11 per cent of the elec-

tricity SaskPower generates can be lost during trans-

mission through its 155,000 kilometres of power lines,

so the fewer lines, the better.)

Th e noise factor will also impact the decision.

Wherever it is eventually built, SaskPower intends

to follow the industry’s strictest standards, the strin-

gent regulations used in Alberta.

Using silencers on the plant’s exhaust, SaskPower’s

goal is to see the typical noise level at the fence line to

be about 59 decibels, between that of a passenger car

going 60 km per hour at 20 metres (65 decibels) and

conversation at one metre (55 decibels).

At the fence line, there will also be a lower fre-

quency noise which will be more “felt” than heard,

similar to the “rumble” of a diesel truck passing by 20

metres away.

Th is largely unheard noise, said Justin Caskey of

Patching Associates Acoustical Engineering Ltd., is

the kind of frequency that might rattle windows and

can aff ect some individuals adversely without their

even being able to hear it.

Page C21

Natural gas power plant site decision dueNatural gas power plant site decision due

At a Feb. 25 open house at the North Battleford Don Ross Centre, Harjit Singh Bajwa, a mechani-cal engineer with SaskPower, displayed a map highlighting three areas short listed as favour-able sites for the construction of a gas-powered power plant in the North Battleford area.

Photo by Jayne Foster


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Kim LeipertPh. 306.825.5355

Cell: 306.821.2880Fax: 306.825.5356

www.heavyoilfi [email protected]

1980 Cardwell service rig69 ft. teliscoping derrick, power tongs, handtools, 2 years left on level four inspection,

1996 Mack fl ushby 3x5 triplex pump42 ft. fl ushby mast, 50,000 lbs., HL-25 pullmaster winch, 12 m3 wabash tank, weight inicator, sea level gauges, slant compatible, cat line winch.

Coil tubing drilling rig package National oil well RT-100 injectorreel, mud pump, mud tank, BOP,s, safety trailer, drilling rig trailer, control cab, hydraulic system, catwalk skid, combo building

2008 Freightliner accelerater unitLash and C-tech acclerator unit, 10 ton picker, 3 spools, Full locking rears.

Page C20

Air and noise stud-

ies are to be conducted

in the spring, followed

by biological field stud-

ies, geotechnical stud-

ies, and finally con-

struction.

Construction, slated

to commence in August

2009 and scheduled to

run until October 2010,

should employ about

120 to 150 people.

Once the plant is

in operation, it will be

monitored and con-

trolled remotely and

be visited regularly for

maintenance.

SaskPower cur-

rently operates three

coal-fired power sta-

tions, seven hydro-

electric stations, four

natural gas stations and

two wind facilities with

an aggregate generat-

ing capacity of 3,214

megawatts (MW).

SaskPower also has pur-

chase agreements with

the Meridian Cogen-

eration Station, Cory

Cogeneration Station,

SunBridge Wind Power

Project and NRGreen

Kerrobert Heat Recov-

ery Project bringing the

total available capacity

to 3,668 MW.

SaskPower also

operates two wholly-

owned subsidiaries —

NorthPoint Energy

Solutions, which is an

electrical energy mar-

keting and trading ser-

vice, and SaskPower

Shand Greenhouse,

which grows and dis-

tribute seedlings free of

charge to schools, com-

munities and individu-

als for conservation and

wildlife habitat projects.

Bernie Bolen, supervisor, Environmental Issues management, SaskPower, talked with City of North Battleford of cials Tim La freniere, city planner, Jim Toye, city manager, and Denis Lavertu, director of business develop-ment, at the Feb. 25 open house regarding SaskPower’s plan to construct a new electrical generating site in the area.

Photo by Jayne Foster

SaskPowerSaskPowertrying to ll trying to ll the gapthe gap


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Lloydminster – Ev-

eryone at Avenger Oil

Tools Ltd., even Mr.

Magoo, the company cat,

seems to have fi rm grip

on how to drive business

with customer service

at a time when sales of

their completion tools

are leaner than normal.

It starts with a fi rm

handshake and a smile

from Sheldon Cope-

land, vice-president of

operations in Lloydmin-

ster and his Calgary-

based executive partners

Robert Lawrence, Dale

Miller and Tyler Th e-

berge, who came to town

to greet major custom-

ers and introduce their

business to the Pipeline News. Mr. Magoo sport-

ed a Cheshire grin.

“Every month we

have management meet-

ings and we are visiting

all of our major cus-

tomers in the area,” said

Lawrence who is the

company president and

CEO.

“We try to stay in

close contact with them.

We take great pride in

that. We work directly

with our customers and

we have developed good

close relationships. It’s a

team.”

Avenger operates

as an area partner with

Smith International and

specializes in the sales,

rental and servicing of

Smith completion tools

including retrievable

bridge plugs, permanent

bridge plug, composite

bridge plugs and drilling

motors.

“We have been joint

venture partners with

Smith since we began

three years ago,” said

Copeland.

“Th ey are a heck of

a good company. We

solely run their brand of

tools and product line.

Primarily, everything we

run downhole is a Smith

product.”

Smith cement re-

tainers are used to re-

lieve hydrostatic pres-

sure during cementing

operations.

In Alberta, a per-

manent bridge plug is

“a quick and easy way to

abandon a well or iso-

late a zone” according to

Copeland.

Avenger also has

its own 9 5/8 inch out-

er diamter retrievable

bridge packer used for

isolating a well. Parts

are machined by Orion

Machining & Manufac-

turing Inc. in Lloydmin-

ster and assembled by

Avenger.

“A drilling company

can retrieve the bridge

plug after they frac or go

after a zone of interest,”

explained Copeland.

Customers can also

chose to use Smith com-

posite plugs made of

aluminum and plastic.

“When oil and gas

companies frac their

wells, they will run

stacking composites to

make it easy for them to

drill out,” he said.

Avenger currently

has work from Fort Mc-

Murray to Kindersley

with light and heavy oil

and gas corporations in-

cluding Apache, CNRL

and Husky that get to

know Avenger’s employ-

ees during service calls.

“In today’s market,

the demand for comple-

tion tools is still there

but I think quality and

service are what makes

us strong,” said Cope-

land who likes the face-

to-face contact.

“It’s what you off er

on location – your man-

power and experience –

and being professional.

“We are doing a lot

more servicing right

now. Th ere’s not as much

sales, just more rentals

and service.”

At the shop, tech-

nicians will tear apart,

clean and repair tools

and prep rental equip-

ment.

Page C23

Avenger Oil Tools focuses on service until sales rebound

Avenger’s Sheldon Copeland is framed by these 177. 8 mm OD M1-X double grip coated packers by Smith International. Photo by Geoff Lee

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STRETCH, STRENGTHEN, BALANCE AND BREATHE

Robert Lawrence and Sheldon Copeland display a 244.5 mm OD retrievable bridge plug machined in Lloydminster by Orion Machining & Manufac-turing Inc.

Page C22“Th e rental market

is a challenge now but

I think in Lloydminster

there is still going to

be ongoing work so we

are looking forward to

maintaining our market

share,” said Lawrence.

“Our equipment can

be used in all applica-

tions – heavy or light oil

and gas. Specifi cally, to

the regional market, we

feel we are very strong

with the type of prod-

ucts that we have.

“Our joint venture

with Smith is with the

completion tools and

remedial workover tools

which are the bread and

butter of this local area

for packers, bridge plugs,

cement retainers – that

type of product.”

Th e decision to

manufacture their 9-5/8

inch retrievable bridge

plugs also pays dividends

when it comes to image

and public relations.

“We try to use the

local market,” said Law-

rence. “We have not

manufactured any tools

outside Lloydminster.

We use local vendors

and machine shops in

town to bring some sta-

bility to the local mar-

ket. We like to work

with the people in the

area.”

Customers likely

know that Copeland

grew up in Lloydmin-

ster and had more than

15 years of the experi-

ence in the oil industry

when he and his part-

ners launched the com-

pany to fi ll a product

and service niche in the

local area.

“Th e response has

been good, “said Cope-

land. “ We’ve been very

busy for the last three

years. Th at’s good feed-

back that we have been

busy and we’ve become

a leader in Lloydminster.

We have solid engineer-

ing, solid backing and a

great tool line.”

Avenger is also a

sponsor of the Lloy-

dminster Bandits of

the North Eastern Al-

berta Junior B Hockey

League.

We use local vendors and machine shops... We like to work with the people

in the area.- Robert Lawrence

Avenger keeps it local and focuses on service


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P.O. Box 1155, Lloydminster, AB T9V 1G1Email: [email protected]

Clayton “C” Gessner, C.E.T./A.Sc.T. /A.P.I.653Manager/Owner

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Troy IllingworthCell: (780) 808-3183

Macklin – For those

who follow the leader, let

Kudu Industries Inc. be

your guide with their in-

novative progressive cav-

ity pumps systems with

driveheads and power

units.

Kudu plans to stay

ahead of the curve with

some new pump-related

products that shop man-

ager Kevin Fischer in

Macklin, Saskatchewan

wants his heavy oil cus-

tomers to know about.

Th e new product ar-

rivals are a Kudu-made

PCP well manager, a

thermal pump, a top tag

system and a new anti-

corrosive pump rotor

coating.

“New products are

developed in Calgary and

fi eld-tested before going

into production,” said Fis-

cher. “We want to be the

industry leader and pro-

vide solutions for custom-

ers.”

Th e PCP well man-

ager has been developed to

adapt to hydraulic power

units or electrifi ed wells to

maximize the effi ciency of

well performance.

“It controls the well

from damaging your

pump,” said Fischer. “It

keeps the pump from

starving from fl uid. It is

continually ‘hunting’ for

production. It self-mon-

itors the torque and fl ow

and it’s continually mak-

ing adjustments to maxi-

mize production.

Kudu has also

launched a new thermal

pump called the Vulcain

that is suited to thermal

processes such as steam

assisted gravity drainage.

“It’s a PCP pump

but it’s metal-on-metal

for thermal applications,”

said Fischer. “It’s a high

temperature metal-on-

metal pump.”

Fischer says Encana

has the only thermal op-

eration in his business

area but says the product

is typical of Kudu’s quest

to grow through innova-

tion and helps to attract

new customers during the

slowdown.

“Th e day-to-day ac-

tivity has kept us busy but

we are not breaking any

records,” he said. “We are

watching our costs and

keeping our inventory

levels low.

“We have adopted

the Toyota manufacturing

way of thinking – stay-

ing lean and getting away

from having a lot of in-

ventory. Th e other factor

is innovation.”

Another new Kudu

product is an improved

top tag system that al-

lows the pump operator

to locate the rotor inside

the stator without the

need for the standard tag

system. Th is means there

is no restriction on in-

take and it decreases the

chance of plugging off .

“Th e tag has only

been out for nearly a year

but it’s been very popular

in the Lloydminster area,”

said Fischer. “Th e tag sys-

tem improves the pump

intake.”

Kudu has also im-

proved its PCP rotors

with a new spray coating

called Tough Coat that is

anti-corrosive and abra-

sion resistant.

“Th ese rotors are be-

coming popular in fi elds

with a high C02 and H

2S

environment,” said Fisch-

er who is proud of Kudu’s

ever-evolving product and

service line.

“Corporately, we

have expanded quite a

few times and we have

added some new stores.

In Macklin, we have ex-

panded our service side,”

he said.

“Th ree years ago we

relocated from Provost to

Macklin to be more cen-

tral to our customers. We

have always worked on

both sides of the border.

Drilling in this area has

increased twofold in the

past few years.”

Th e Macklin shop

stocks and services a wide

array of rotors and stators

and its fl agship driveheads

and power units that com-

plete the PCP system.

“We repair Oryx seals

(Kudu brand) and do

everything from engine

rebuilds to welding,” he

said.

Kudu in Macklin hails new pump

Kudu shop manager Kevin Fischer is dwarfed by his parts stock these stators and rotors for pro-gressive cavity pumps.


[email protected]

SAFETY & SERVICE GUARANTEED

Bruce PristieOwner/Operator

306.774.4246306.773.0325

Box 952Swift Current, SKS9H 3W8

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Transportation and LogisticsRig Transportation Services

Pipe Storage Facility

40229221•09/05/08

Cold Lake – Imperial Oil has launched a pilot

project at its Cold Lake oilsands operations to test a

new way to recover bitumen from undeveloped de-

posits of the Clearwater formation.

Th e pilot is also a way for Imperial to determine

the best recovery processes for its yet to be developed

oilsands deposits near Fort McMurray.

At the Cold Lake site, Imperial uses its patented

cyclic steam stimulation (CSS) to produce approxi-

mately 150,000 barrels of bitumen a day from what is

the largest in-situ oilsands operation in the world.

Imperial also patented steam-assisted gravity

drainage and has begun the long-term test of a de-

rivative process known as solvent-assisted SAGD

(SA-SAGD) using a natural gas condensate.

“What this pilot is about is ultimately assessing

the long-term potential of conventional SAGD and

SA-SAGD for new reservoir areas at Cold Lake and

also in the Athabasca deposits near Fort McMurray,”

said Pius Rolheiser, an Imperial spokesman.

Th e new pilot project is focused on assessing the

resource recovery performance of SA-SAGD.

“Th is is not about fi nding an alternative to the

CSS process we use at Cold Lake,” said Rolheiser.

“Th is is about fi nding the best process for the por-

tions of the reservoir that we believe might be more

amenable to this type of production.”

Imperial uses CSS at Cold Lake and not SAGD

that it patented in 1982 because SAGD would not be

an eff ective recovery method for most the reservoir.

“Th is is because of reservoir conditions and how

consolidated the reservoir is,” said Rolheiser. “We

recognized there may be parts of the reservoir that

might be amenable to recovery with SAGD as well

as reservoirs in the Athabasca formation.”

CSS, however, is not a one size fi ts all technology

either for some undeveloped portions of the Cold

Lake oilsands with top gas and bottom water in the

formation.

Rolheiser says the SA-SAGD pilot will oper-

ate for a couple of years “until we get fairly defi nitive

data.”

Imperial has increased bitumen recovery from 13

per cent to more than 30 per cent in the past 20 years

through continued research and technology develop-

ment.

Page C26

Imperial pilot testing a new oilsandsrecovery process in Cold Lake

This photo shows Imperial’s Mahkese steam-generation, cogeneration and bitumen process-ing plant in Cold Lake.

Photo submitted


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(780) 875-0203 LloydMallLloydminster

Imperial’s Cold Lake operation uses multi-well pads to minimize surface disturbance and to access the largest area of underground reservoir.

Photo submitted

Page C25“Through this pi-

lot, we will be assessing

the recovery potential

which we can com-

pare with conventional

SAGD well pairs,” said

Rolheiser.

“Basically the

SAGD process is work-

ing with a pair of hori-

zontal wells, one above

the other. The top well

injects steam. The bot-

tom well, after a period

of time, is used to pro-

duce the bitumen and

the water that has been

condensed from the in-

jected steam.

“What the SA-

SAGD process does,

is add a percentage of

hydrocarbon solvent to

the steam to see if that

would be more effective

and efficient in recov-

ering bitumen.”

The pilot project

has been set up in the

southwestern part of

the Cold Lake property

near Imperial’s Mah-

keses steam-generation,

cogeneration and bitu-

men-processing plant.

The project site in-

cludes a new well pad

and called for the drill-

ing of two horizontal

well pairs. Imperial also

drilled a number of ob-

servation wells around

the well pairs. The fa-

cilities are tied into the

Mahkeses operations.

“By tying it in, we

can bring steam gen-

erated from the Mah-

keses plant to the pilot

plant and then we can

send the bitumen back

to the plant,” said Rol-

heiser.

“Because we have

existing facilities to

generate steam and

process bitumen, the

main facilities to be

built were the wells.”

A new recovery process being tried out



Aluminum Tankers, Backhoes, Boilers, Braking Systems, Casing Elevators, Casing Scrapers, Casing Slips, Cement & Acid Equipment, Cement Bulk Trailers, Cement Mixers, Cement Pumps, Cement Storage, Centrifugal Pump, Centrifugal Pumps, Chemical Pumps, Choke Manifolds, Closing Units, Coiled Tubing Unit Parts, Coiled Tubing Units, Control Systems, Crane Trucks, Cranes, Crown Blocks, Traveling Blocks, Dehydrators, Ditch Witch, Double Drum Workover Rigs, Double Phase, Double Studded Adaptors, Dozers, Drawworks & Substructures, Drift Indicators, Drill Collar Elevators, Drill Collar Slips, Drill Collars, Drill Pipe, Drill Pipe Elevators, Drill Pipe Elevators Slips Combinations, Drill Pipe Spinners, Drilling Choke Control Systems, Drilling Components, Drilling Rigs, Dual Drilling Control Consoles, Duplex Pumps, Electric Motor Drive, Farm Tractors , Fiberglass Tanks, Flat Bottom Junk Mill, Flatbed and Lowboys, Fluid / Mud Cleaners, Front End Loaders, Gas Processing Plants, Gate Valves for Blowout Preventers, Gauges, Gloves, Glycol Pumps, Glycol Pumps, H2S Safety Valves, Handling Tools, Hard Hats, Heater Treaters, High Pressure Hoses, High Pressure Pump Skids, High Pressure Pump Trailer, High Pressure Valves & Fittings, Highway Tractors, Hydraulic Ampli ers, Hydraulic Casing Tongs, Hydraulic Drilling Chokes, Independent Rotary Drive Skids, Laydown Equipment, Laydown truck mounted, Liquid Tanks, Mandrels & Sleeves, Manifold Skids, Manual Tongs and Casing, Metal Tanks, Motors, Mousehole / Rathole, Mud Motors, Mud Pumps, Nitrogen / Cryogenic Equipment, Off-Road Tractors, Pipe Bins / Racks / Material Storage, Pipe Wrenches, Power Swivels, Production Casing, Production Pipe, Production Rods, Production Tubing, Propane Tanks, Pulling Units, Pump Trucks / Trailers, Pumpjacks, Pumps & Pump Skids, Pup Joints, Quintiplex Pumps, Rags, Re nery Equipment, Releasing and Circulating Overshot, Reverse Circulation Junk Baskets, Rig elevators, Road Graders, Roller Reamers, Rotary Slips for Drill Pipe, Rotary Tables & Kellys, Safety Clamps, SCR Houses, SCR Power, Single Axle Roustabout, Single Joint Elevators, Single Phase, Skid Mounted, Skid Mounted Pumping Units, Skid-Mounted Equipment, Slick line Units, Slip Type Elevators , Soap, Spinning Wrenches, Spiral Grapples & Controls, Spools for Blowout Preventors, Stabilizers, Steel Tankers, Steel Toe Boots, Structural Casing, Structural Pipe, Structural Rods, Structural Tubing, Subassembly, H2S Subassembly, Swabbing Units, Top Drives, Trailer-Mounted Equipment, Treaters, Triple Phase, Triplex Pumps, Truck/Trailer Mounted, Truck-Mounted Equipment (Single and Twin Cementers), Tubing Spider, Tubing Tongs, Vacuum Trucks, Wireline Parts, Wireline Skids, Wireline Trailers, Wireline Trucks, Workover Equipment, Workover Service Rigs, Aluminum Tankers, Backhoes, Boilers, Braking Systems, Casing Elevators, Casing Scrapers, Casing Slips, Cement & Acid Equipment, Cement Bulk Trailers, Cement Mixers, Cement Pumps, Cement Storage, Centrifugal Pump, Centrifugal Pumps, Chemical Pumps, Choke Manifolds, Closing Units, Coiled Tubing Unit Parts, Coiled Tubing Units, Control Systems, Crane Trucks, Cranes, Crown Blocks, Traveling Blocks, Dehydrators, Ditch Witch, Double Drum Workover Rigs, Double Phase, Double Studded Adaptors, Dozers, Drawworks & Substructures, Drift Indicators, Drill Collar Elevators, Drill Collar Slips, Drill Collars, Drill Pipe, Drill Pipe Elevators, Drill Pipe Elevators Slips Combinations, Drill Pipe Spinners, Drilling Choke Control Systems, Drilling Components, Drilling Rigs, Dual Drilling Control Consoles, Duplex Pumps, Electric Motor Drive, Farm Tractors , Fiberglass Tanks, Flat Bottom Junk Mill, Flatbed and Lowboys, Fluid / Mud Cleaners, Front End Loaders, Gas Processing Plants, Gate Valves for Blowout Preventers, Gauges, Gloves, Glycol Pumps, Glycol Pumps, H2S Safety Valves, Handling Tools, Hard Hats, Heater Treaters, High Pressure Hoses, High Pressure Pump Skids, High Pressure Pump Trailer, High Pressure Valves & Fittings, Highway Tractors, Hydraulic Ampli ers, Hydraulic Casing Tongs, Hydraulic Drilling Chokes, Independent Rotary Drive Skids, Laydown Equipment, Laydown truck mounted, Liquid Tanks, Mandrels & Sleeves, Manifold Skids, Manual Tongs and Casing, Metal Tanks, Motors, Mousehole / Rathole, Mud Motors, Mud Pumps, Nitrogen / Cryogenic Equipment, Off-Road Tractors, Pipe Bins / Racks / Material Storage, Pipe Wrenches, Power Swivels, Production Casing, Production Pipe, Production Rods, Production Tubing, Propane Tanks, Pulling Units, Pump Trucks / Trailers, Pumpjacks, Pumps & Pump Skids, Pup Joints, Quintiplex Pumps, Rags, Re nery Equipment, Releasing and Circulating Overshot, Reverse Circulation Junk Baskets, Rig elevators, Road Graders, Roller Reamers, Rotary Slips for Drill Pipe, Rotary Tables & Kellys, Safety Clamps, SCR Houses, SCR Power, Single Axle Roustabout, Single Joint Elevators, Single Phase, Skid Mounted, Skid Mounted Pumping Units, Skid-Mounted Equipment, Slick line Units, Slip Type Elevators , Soap, Spinning Wrenches, Spiral Grapples & Controls, Spools for Blowout Preventors, Stabilizers, Steel Tankers, Steel Toe Boots, Structural Casing, Structural Pipe, Structural Rods, Structural Tubing, Subassembly, H2S Subassembly, Swabbing Units, Top Drives, Trailer-Mounted Equipment, Treaters, Triple Phase, Triplex Pumps, Truck/Trailer Mounted, Truck-Mounted Equipment (Single and Twin Cementers), Tubing Spider, Tubing Tongs, Vacuum Trucks, Wireline Parts, Wireline Skids, Wireline Trailers, Wireline Trucks, Workover Equipment, Workover Service Rigs, Aluminum Tankers, Backhoes, Boilers, Braking Systems, Casing Elevators, Casing Scrapers, Casing Slips, Cement & Acid Equipment, Cement Bulk Trailers, Cement Mixers, Cement Pumps, Cement Storage, Centrifugal Pump, Centrifugal Pumps, Chemical Pumps, Choke Manifolds, Closing Units, Coiled Tubing Unit Parts, Coiled Tubing Units, Control Systems, Crane Trucks, Cranes, Crown Blocks, Traveling Blocks, Dehydrators, Ditch Witch, Double Drum Workover Rigs, Double Phase, Double Studded Adaptors, Dozers, Drawworks & Substructures, Drift Indicators, Drill Collar Elevators, Drill Collar Slips, Drill Collars, Drill Pipe, Drill Pipe Elevators, Drill Pipe Elevators Slips Combinations, Drill Pipe Spinners, Drilling Choke Control Systems, Drilling Components, Drilling Rigs, Dual Drilling Control Consoles, Duplex Pumps, Electric Motor Drive, Farm Tractors , Fiberglass Tanks, Flat Bottom Junk Mill, Flatbed and Lowboys, Fluid / Mud Cleaners, Front End Loaders, Gas Processing Plants, Gate Valves for Blowout Preventers, Gauges, Gloves, Glycol Pumps, Glycol Pumps, H2S Safety Valves, Handling Tools, Hard Hats, Heater Treaters, High Pressure Hoses, High Pressure Pump Skids, High Pressure Pump Trailer, High Pressure Valves & Fittings, Highway Tractors, Hydraulic Ampli ers,

CHANGECHANGEBUY SELL TRADE

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FOR SALE

www.donsspeedparts.com • 1.800.431.CATS

OILFIELD

TRAILER(CT127TE-DHI)

SALE $9,999


PIPELINENEWS

Saskatchewan’s Petroleum MonthlyCHANGECHANGE

BUY SELL TRADE

il eld

FOR SALE2008 PJ 30 ft. High Boy Trailer

7000 pound axles, 16” tires, spare tire, 2 front jacks & LED lighting & pintle hitch.

Reduced to clear!!

$$799579950000

Call Wendell at (306) 726-4403

ForFor SaleSale

ReconditionedReconditioned 750 BBL Tanks 750 BBL TanksHeated & Insulated c/w Heated & Insulated c/w

Hawkeye guageboard assHawkeye guageboard assemblyembly

Phone PaulPhone Paul (403)664-0604(403)664-0604Oyen, AB.Oyen, AB.

Successful well established oil eld trucking company located in south eastern Saskatchewan available for immediate transfer or ownership. This well managed company has shown steady year after year growth and does not show any signs of slowing. Long term trained employees in place for a new owner to act in management capacity. The downturn in drilling activity in the oil industry has had no effect on the revenues of this uid hauling company. Take your earning po-tential in your own hands and provide a great income for you and your family. Owner is willing to stay on for a negotiated length of time to train new owner.

Offering price: $750,000Real Estate Negotiable, Earning over 25% ROI

Darryl Fox, B.Admin.,CMA

Sales Consultant201-2750 Faithfull Ave. Saskatoon Sk. S7K 6M6

Tel: 306-382-5075 • Fax: 306-382-5073 • Cell: [email protected] • www.sunbeltwork.com

Business For Sale

The place to go to buy or sell a business.

FOR SALE

2009 CHEVROLET LTZ DIAMOND SPECIAL EDITION5.3 Leather, Convenience Pkg., Rear Camera and much much more$43,500 Call Larry Alward 780-853-0941 or 1-888-773-4646

3.67 acres of prime commercial property on Escana Street, in the east industrial area of Estevan, Sask. Property has great highway

access and visibility. Available for lease, build to suit/development or purchase.

Phone 306-421-0564 or 306-634-5304


CLASSIC ENCLOSED

TRAILERCar hauler (CVT2483TE)

SALE $11,499


2008 HONDA

TRX700XXFully independent suspension

SALE $9,999


PIPELINENEWS

Saskatchewan’s Petroleum MonthlyCHANGECHANGE

BUY SELL TRADE

il eld

2009 BUICK ENCLAVE8 passenger, Remote Start, Tri Zone A/C, Onstar*, Bluetooth*, Trailer Pkg.$38,150 Call Larry Alward 780-853-0941 or 1-888-773-4646

3 - D.A. Manufacturing Coil Tub-ing Injectors 30,000 lb. push/pull, single speed;

1 - Coil Tubing Reel, ready to install on truck. Can hold 3,000 metres of 1.5” coil tubing;

1 - Complete Arch & Tray c/w Ram to install on Coil Tubing Arch Unit truck;

1 - Complete C15 Cat Engine c/w transmission out of 2002 Ken-worth T800 tandem/tandem truck. Has been in rollover.

Call Ron for Pricing 1-866-363-0011 (toll free)

FOR SALE

Steve HodgsonPH. 1-306-483-2490Fax 1-306-483-2805email- [email protected]

Fit easily to back of your pickup. Excellent for weed control on

leases. Diaphram pump that will take

agressive chemicals. Call for pricing!

Field Field SprayersSprayersfor for Sale!Sale!

Description: 37 ft. Derrick, 3 x 5 Oil Well Pump – Triplex, 8m3 1 Section Tank, HL 25 Pullmaster Hydraulic Winch c/w 2-speed ¾” Drill Line, Gearmatic Winch c/w 3/8” winch line, 3” Bowie Pump, T6DC Tandem Hydraulic Pump, 25 Ton Single Line Blocks, Spicer Drop Box, Weight In-dicator (Line Type)

Call Ron for Pricing 1-866-363-0011 (toll free)

1992 MACK TANDEM FLUSHBY UNIT

FOR SALE


2009 ARCTIC CAT

PROWLER1000 XTZ(Winner of the 2008 Baja 100!)

SALE $14,999

Maureen Tkachuk Leasing Professional Tel: 1-877-875-6183

1-780-808-6182 www.maureentkachuk.ca

Dominion Lending Centres – LatitudeFinancial

Ind

epen

den

tly Ow

ned

& O

pera

ted

ResourcesResources GuideGuidePIPELINE NEWS April 2009C30

Cell: (306) 461-9679

Your Sandblasting, Painting & Coating Specialists with over 20 yrs. experience in the industry

Spool Coating now available

P.O. Box 54 • Benson, SK • SOC [email protected]

BullyBlast & PaintServices Ltd.

• Shop & Field Service• Tank Linings

Bus.: (306) 457-2264

• Structural Steel• and more

• Pressure Vessels• Well Testers• Frac Recovery• Wellbore Bleedoff• Ball Catchers• 400 bbl Tanks• Rig Matting

Dale (306) 861-3635 • Lee (306) 577-7042Lampman, Sask.

• Complete Trucking Services

HYDROVAC SERVICES306.388.2225 - 306.421.5954

TERRY DODDS(24 hrs.) (306) 634-7599

Cell. (306) 421-0316

“All Your Construction and Maintenance Needs”SPECIALIZING IN: ENGINES, PUMP UNITS, UNIT

INSPECTIONS, PIPE FITTING, TREATERS AND PRESSURE TICKET WELDING

Box 1605, Estevan, Sk. S4A 2L7Cell. (306) 421-3174, (306) 421-6410, (306) 421-2059

Fax: (306) 634-1273

M.E.T. OILFIELDCONST. LTD.

Cory BjorndalDistrict ManagerDownhole Tools

93 Panteluk StreetKensington Avenue NEstevan, Saskatchewan S4A 2A6PHONE: 306-634-8828CELL: 306-421-2893FAX: [email protected]

RP Automotive Inc.Complete Automotive Repair

Reliable & Affordable • Fast & Friendly

• Tune Ups, Injector Purges• Transmissions, Clutches• Shocks and Struts• Oil Changes• Diesel Repair• After-market Accessories• Wheel Alignments• Engine Repair• Steering and Suspension

• Cooling System Flush & Repairs• Brakes• Differentials• Exhaust• Diesel Purges• SGI Inspections• Flywheel Resurfacing

47-13th Street, Weyburn, SK

842-4022®

Certi edService Centre

SONAR INSPECTION LTD.Head Of ce1292 Veterans CrescentEstevan, Sk. S4A 2E1E: [email protected]

P: 306-634-5285F: 306-634-5649

“Serving All Your Inspection Needs”UT - LPI - MPI

Wayne Naka 306-421-3177Taylor Gardiner 306-421-2883Cory Rougeau 306-421-1076

COR Certi edEstevan, Sk.

634-7348

VegetationControl

(Chemical or Mechanical)

Southeast Tree Care

4” Hevi Wate Drill PipeBrad Lamontagne

(306) 577-9818 or (306) [email protected]

Box 868Carnduff, SKS0C 0S0

Bob BettsOperations Manager

Offi ce (306)482-3566Fax (306)482-3567Cell (306)482-8787

[email protected]

Peter Koopman - Industrial Tank Sales, Southern SaskatchewanPh. 306-525-5481 ext. 311 Cell 306-596-8137

www.westeel.com www.westeel.com www.northern-steel.comwww.northern-steel.com

100, 200 and 100, 200 and 400 BBL Tanks400 BBL Tanks

Serving the Saskatchewan Petroleum Upstream from our facilities in Regina & Tisdale.

Please call us with your Custom Fabrication Requirements!

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

Fresh Water HaulingCustom Bailing & Hauling

Gordon HartyBox 95 Marwayne, AB T0B 2X0

Bus. Phone(780) 875-9802

Fax No.(780) 847-3633

Res. Phone(780) 847-2178

Resources Resources GuideGuide


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

Proudly Serving Alberta & Saskatchewan

Full Hydrovac • Services

Capable of • Steam

24 HOUR DISPATCH24 HOUR DISPATCH

780-205-7666780-205-7666Lloydminster, AB

www.silverbackhydrovac.com • [email protected]

COIL TUBING SERVICESFLUSHBY SERVICES

Serving Alberta, B.C. & SaskatchewanToll Free1-866-363-0011

www.tazwellservicing.com

COIL TUBING SERVICESFLUSHBY SERVICES

OILFIELD HAULING LTD.Specializing in Hauling Well Site Trailers

Bruce BaylissOwner/Operator

Of ce: 482-3132Dispatch: 485-7535Fax: (306) 482-5271

Box 178Carnduff, Sk.

S0C 0S0

Experienced Crew ForemanFOR LLOYDMINSTER AREA

MUST: • Have Valid Drivers License & Be A Team Player• Safety Tickets • Picker & Bobcat Experience An Asset

C’s OFFERS: • Top Wages • Benefits Package• Performance Bonuses • Scheduled Days Off

• Opportunity For Advancement• C.O.R. Safety Program • AB & SK B31.3 Q.C.

• Premium Equipment

DUTIES: • Daily Operation Of A Light Picker Truck• Pipe-fitting & Construction

Apply inconfidence to:

Fax (780) 808-2273

OILFIELDCONSULTING & CONSTRUCTION

SERVICE LTD.

CNC Plasma / Oxyacetylene Operators

Applicants must have welding background.Driver’s license required. Reliable, team player.

Wages depend on experience. Benefi ts available.Performance bonuses.

Only those to be interviewed will be contacted.

Apply in confi dence to: Fax (780) 808-2689

www.suretuf.com

CareerCareerOpportunitiesOpportunities

NYMEXCrude Oil

futures

March 3, 2008 -March 19. 2009


1 888-773-4646 www.collegeparkgm.com 1 780-853-0941

#C416 1992 Cadillac #C415 2002 Buick #5012A 2007 Chevrolet #5013A 2008 Pontiac #4966A 2004 Chevrolet #5155A 2004 ChevroletSeville LeSabre Ltd Impala LS Grand Prix Malibu LT Impala Leather

Sunroof 25000 K 35000 K 35000 K 80000 K

$4,500* $9,700* $17,400* $16,700* $10,900* $8,900*

#5079B 2007 Nissan #5129A 2007 Chevrolet #C409 2007 Chevrolet #5248A 2006 Chevrolet #4076 2006 Pontiac #5176A 2005 ChevroletVersa Cobalt SS Supercharged Cobalt Coupe Optra LT Wagon Grand Prix GT Impala

35000 K 14000 K

Take Over Lease

$13,250* $17,900* $335,00/ Month* $11,900* $17,900.* $9,900*

#5078A 2007 Chevrolet #4104 2007 Chevrolet #4734A 2007 Chevrolet #4960A 2008 Pontiac #5264A 2008 Chevrolet #5265A 2008 ChevroletHHR LT Limited Edition HHR LS HHR LT Grand Prix Impala LS Impala LS

35000 K 20000 K 22000 K

#5046 2008 Pontiac #5175 2009 Chevrolet LT #5229 2009 Pontiac #5185 2009 Chevrolet #5152 2009 Chevrolet #5288 2009 ChevroletTorrent FWD Crew 4x4 G 3 Wave Cobalt LS Coupe Cobalt LT Aveo LS

5.3 5 Door A/C ABS A/C 5 Spd

#4998 2009 Chevrolet #5138 2009 Pontiac #5195 2009 Chevrolet #5118 2009 GMC W/T #5233 2009 GMC #5289 2009 GMCUplander G 8 GT Silverado W/T 3/4 Reg 4X4 Canyon Crew 4x4 Cab/Chassis 4x4

V8 6.0 Reg 4x4 5.3 Diesel 161.5” wb

MSRP 27005 MSRP 41725 MSRP 35980 MSRP 43630 MSRP 38110 MSRP 51915

$19,200* $33,500* $27,650* $33,500* $32,200* $41,600*

#5284 2009 GMC #5246 2009 GMC SLT #5269A 2006 F350 #C41A 2007 Chevrolet #5085A 2006 Chevrolet #5143A 2006 ChevroletW/T 2500 4X4 GAT All Terrain Diesel Crew 4x4 LTZ Crew 3/4 4x4 LT Diesel Crew 4x4 1/2 Crew HD 8600 lb

Crew 4x4 Leather 6 passenger Diesel 4x4 71000 K

#5272A 2008 GMC SLE #5292A 2006 Chevrolet #5171A 2007 Chevrolet #5293A 2008 Chevrolet #5204A 2006 Chevrolet #5126A 2007 KiCrew 4X4 Buckets LT Z71 4X4 3/4 4x4 LT Tahoe LTZ Trailblazer LT Sportage AWD

5.3 20000 k Diesel Crew 70000 K 2.7 V6 37000 K

$18,800* $13,500* $14,500* $16,700* $17,400* $17,400*

$39,500* $44,900* $27,000* $44,000* $26,500 $19,500

$31,500* $20,900* $24,000* $42,500* $18,900* $17,900*

$19,500* $12,900* $10,350* $12,500* *35,900 $11,500*

EMPLOYMENT-OFFICE MANAGER

-SALES CONSULTANT*SEE LARRY

ALWARD

$1,250* $9,500* $19,500* $24,000* $12,900*

#3002B 1990 Chevrolet #5291B 2004 Durango #52A 2007 Pontiac #C411 2004 GMC #5124A 2001 Chevrolet3/4 Rwd 5Spd SLT Torrent SLE 1 TON CREW Tahoe 4x4

value point AWD Diesel 4x4 Clean 155000 K

#C410 2004 GMC SLE #4327A 2003 Chevrolet LT #5091A 2003 Chevrolet #5052A 1999 GMC SLE #4727A 2007 GMC SLT #5259A 2003 GMCCrew Diesel 4x4 Silverado Crew 4x4 Silverado 4x4 Ext Z71 Ext 4x4 Acadia AWD Envoy

4.8 Certified 30000 k Local trade in w DVD

*CASH PRICES LISTED

CALL DONNA FOR

YOUR FINANCE

REQUIREMENTS

MSRP 29745 MSRP 43765 MSRP 15390 MSRP 19365 MSRP22760 MSRP 16840

$23,500* $34,700* $11,750* $15,800* $18,250* $13,250*

VERMILION AB

Pipeline News April 2009

Documents

th e trust

th e focus

th ats

wti oil

oil priced

light oil opportunities

day of production

bakken oil play