11700 Katy Freeway, Suite 200 Houston, Texas www

As we enter 2012, I’d like to personally thank each of you for your continued hard work and dedication. Our performance in 2011 was outstanding. We identified opportunities in the market and were able to capitalize on them by using our knowledge, flexibility and capabilities to execute at the wellsite in an efficient and safe manner. Our success in meeting customer expectations has created momentum that will continue with accelerated expansion into new basins where our customers are most active, particularly those plays that are considered oil and liquids rich. Some of the highlights of the past year included:• Increasing revenues from $1.5 billion

in 2010 to more than $2.2 billion in 2011;

• Significantly increasing our workforce to handle the demand for our services. Over the past year, the number of employees increased 23.8 percent to more than 7,600;

• Investing more than $420 million in new equipment and facilities; and

• Expanding our positions in the Marcellus, Eagle Ford, Bakken and Niobrara markets by leveraging customer relationships and expertise developed with these customers in other areas; For example, when customers extended their footprint from the Barnett Shale to the Eagle Ford, many asked us to join them in setting up operations in these new locations.

Our successful performance led to a new development last year as well. In October, we announced that Complete would merge with Superior Energy Services. This transaction, which should be finalized by early February, will create a top-tier diversified oilfield services

company with a presence in both the North American and international markets. We believe the combination will create significant new growth opportunities for all of us in the coming years, by accelerating our growth in North America and providing us the platform to expand internationally. As we move forward into this new year, we plan to continue expanding our presence in the most active basins, including expansion throughout the Permian Basin in West Texas. The industry outlook for demand of oilfield services is strong in 2012, particularly North America, where rig counts are expected to rise as producers boost domestic oil production while we strive to rely less on imports from increasingly volatile global regions. We should all be proud of our accomplishments in 2011, and look forward to another successful year. I hope you enjoy reading about some of the accomplishments of your fellow workers. Safety, execution and community service are, as usual, the common themes found throughout the stories in this publication. Thanks for doing your part in helping us become a leading oilfield services provider.

Sincerely,

COMPANYUPDATE

CONNECTION Complete

Complete

Production Services

Production Services

Strong performance in 2011 builds momentum for new year

For more information about the Complete Connection, call Ken Nibling at 281.372.2318 or send him an e-mail at knibling@ completeproduction.com

11700 Katy Freeway, Suite 200Houston, Texaswww.completeproduction.com

“We believe this is technology that can be used around the world where operators are consistently having to clean the wells to get the buildup out and optimize production,” Hammond said. “It’s a new step in using coiled tubing.” On the cusp of the completed tests of the new coiled tubing cleanout system, Petrotec also had two contracts renewed to provide coiled tubing services for PEMEX in the northern and southern parts of the country. The contracts run for three years, and continue a long-standing relationship - which has now spanned more than

16 years - between Petrotec and the Mexican state-owned petroleum company. In the north, Petrotec will continue to work at the vast Chicontepec Formation where there are an abundance of low-pressure, low-production wells where the company has had much success getting the jobs done quickly and economically, allowing PEMEX to keep the values in the field. In the south, Petrotec is working in a region around Villahermosa where the wells are typically very deep, and where the company can employs its expertise and its 1 3/4” coiled tubing units to maintain the wells at significant depths.

should be tailored to the specific challenges and threats a worker will face on the job, whether that job is on an oil rig or in the cab of a truck. An example is a video she helped put together recently. Ryel said she had found that most of the training materials available were out-of-date or too broad in their scope to be of real use for today’s oilfield worker. So, working with AESC, Ryel’s committee was able to produce a video targeted at those workers and providing up-to-date information. The video was shot on an active worksite and used actual oilfield employees, many from the West Division. She believes the video will go a long way toward educating and protecting workers in the field. Over the years, Ryel has worked to foster a good working relationship with the Occupational Safety and Health Administration, the Department of Transportation, and other agencies that oversee workplace safety. This not only helps keep her company’s worksites in compliance with agency regulations, but enables her to keep up-to-date with the latest information and requirements. That information is essential for keeping workers safe. “If they don’t know the dangers, they can’t protect themselves,” Ryel said.

RYELINNOVATION

MERCER

operations. Pittman said that visit sealed the deal for Campos and the three operators, and they agreed to come on board and help launch the Permian operations. Just two weeks after launching operations in the Permian, one of Mercer’s assistant yard managers, Gary Sefcik, indicated he wanted to move back to West Texas where he started his career. In September, Sefcik joined Campos in managing the company’s operations in the Permian. “Both guys have done a tremendous job bringing on quality crews and they have a very solid customer base” Pittman said. Mercer plans to build several Slick 550 service rigs and send them to the

Permian this year. In addition, with the number of rigs working between Pecos, Texas, and southeast New Mexico, Mercer plans to open a facility in Kermit, Texas, in early 2012. The Kermit facility will be managed by Sefcik, while Campos will continue to head up operations in Odessa. Just five months after setting up operations in Odessa, the team eclipsed a significant sales milestone that led to Pittman agreeing to cook for the entire team. On Nov. 19 more than 70 employees showed up for the cookout, and food was delivered to the four rig crews that had to work that day. “Our goals are to have the best people, regard safety as our No. 1 priority and provide our customers with the best service possible,” Pittman said. “We wouldn’t have achieved the success

WHAT’S INSIDE

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New safety video featuresComplete employees

IPS operations in Mexico find new use for coil

Colorado office supports each other in 10K race

Mercer expands successfully into the Permian Basin

WINTER 2012

Joseph C. WinklerChairman & CEO

Merger with Superior opens new opportunities

NEW SAFETY VIDEO FEATURESCOMPLETE EMPLOYEES

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COMPANYNEWS COMPANYNEWS

Superior Energy Services and Complete Production Services announced in October that the two companies would merge, creating the premier diversified oilfield services company that will serve both the North American and international markets. The merger, which should be completed by early February, was a good fit for Complete and its employees for a number of reasons, said Complete Chairman and Chief Executive Officer Joe Winkler. “We’ve agreed to enter into this

transaction because it creates a much larger, stronger platform to provide future opportunities for growth,” Winkler said. “We believe the combined strength of the organization will allow us to take advantage of those opportunities in North America and then go beyond this continent’s borders at the appropriate time. While Superior has been working internationally already, this creates a new opportunity for all of us at Complete.” For employees, the transaction will result in few changes because there is

very little overlap in the service lines provided by the two organizations. “There are a couple of areas within the two companies where there will be exceptions, but for most everyone in Complete, it’s business as usual,” Winkler said. “There will be no changes as a result of the merger in compensation, bonus opportunities or our benefits package in 2012. We will continue to make market adjustments as required to remain competitive.”

Crews from Stride Well Service, along with equipment and personnel from Hamm & Phillips, are featured in a new safety video created for the Association of Energy Service Companies. Joyce Ryel, director of Health, Safety and Environmental for Complete’s West Division, said filming of “In One Breath,” a short feature focused on safe working practices for oilfield service

crews, was recently completed. “It’s a project I’m really proud of, and I think it’s going to improve the safety of thousands of workers,” Ryel said. The video was shot by KJ Productions of Enid, Okla., and was funded by the AESC. Videos can be purchased for $100 on the AESC Web site, www.aesc.net.

Due to potentially lethal concentrations inherent in some hydrocarbon areas like oilfields, awareness, detection and monitoring of Hydrogen Sulfide is a critical component to ensuring the safety of crews working in the nation’s oil & gas fields. Scott Mercer, director of Health, Safety and Environmental for Complete’s East Division, said Hydrogen Sulfide, or H2S as it’s typically called, is a naturally occurring gas that is highly flammable and extremely toxic. While it has a characteristic “rotten egg” odor at lower concentrations, it is virtually odorless when it exists at higher concentrations because it fatigues a person’s sense of smell, meaning

It is important that every oilfield worker understand the characteristics of H2S. Knowing these Hydrogen Sulfide characteristics are valuable when you have to evaluate a potential H2S hazard at your work location.

The characteristics of Hydrogen Sulfide are:• It is colorless – H2S cannot be seen as a gas.• It can have a rotten egg smell – Due to its sulfur content, H2S has a

distinctive smell.•This smell is only apparent in low concentrations.•The olfactory nerve suffers fatigue at higher concentrations, and the

sense of smell is lost.• H2S is also flammable – H2S has a flammable range of 4.3% to 46% in air,

and an ignition temperature of 500°F. By comparison, the temperature of the tip of a lit cigarette is over 700° F.

• H2S is heavier than air – H2S has a vapor density of approximately 1.19, which makes it slightly heavier than air (1.00). This is why H2S settles in low areas.

• H2S is water soluble – H2S will mix into a solution with water, and will be carried to the surface in produced water and drilling mud.

• It is also corrosive – When H2S mixes with water, a weak hydrosulfonic acid is formed. This acid will deteriorate metals with high iron content, creating Iron Sulfide Scale. Also, this causes irritation of the eyes, nose, and throat areas of the exposed person.

• And most important, H2S is toxic – Hydrogen Sulfide ranks as the second most deadly naturally occurring gas, behind Hydrogen Cyanide.

•H2S kills by paralyzing the nervous system area that controls the involuntary function of breathing. The result is lack of oxygen to the brain, followed by death in minutes.

- Source: West Texas Safety Training Center

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Training focuses on awareness, monitoring of H2S

See H2S on Page 7

many of its victims are unaware of its presence, even while it’s potentially killing them. Mercer said H2S training - which is a significant piece of Complete’s overall training program - provides the tools and knowledge necessary for survival. He said the importance of the training was made clear at a well in North Texas recently. “We had an incident where employees’ monitors went off and our guys acted appropriately,” Mercer said. “They not only prevented themselves from being injured, but there were other company’s personnel who were not wearing monitors. Because of their training and their actions they potentially saved lives that day.”

HOW TO IDENTIFY THE CHARACTERISTICS OF H2S

EMPLOYEES

H2S

quarter panel hard enough to force it into the back of another car. The van then flipped, ejecting its driver through a rear passenger window before coming to rest on its passenger side, trapping a woman inside. Reid stopped his van within feet of the injured driver. At that point, each of the former Marines got out and went to work. Reid called 911 on his cell phone and began directing traffic around the accident scene. Phillips also called for assistance, then helped check on the pickup truck driver and the occupants of the car that the van hit. None of them had serious injuries. Puga immediately went to the van driver who was on the ground.

“He didn’t look like he was breathing,” Puga said. “Thank God we had gotten that CPR refresher course.” Puga began talking to the man trying to get him to open his eyes. Eventually, the injured man gasped for breath and began to respond. At this point, an off-duty EMT had stopped to help and began working on the injured driver. Puga then noticed Muniz and the other men working to free the woman from the wrecked van. Muniz, Sayers, Pepper and Morey had tried to kick out the van’s windshield to free the woman who was crying for help. Pepper was attempting to break the wrecked van’s windshield when he smelled gasoline. He said that’s when Muniz went to the back of the van to get

the woman away from the flammable liquid. Morey said the group was able to move her from the wreckage and stayed with her until an ambulance got to the scene. Once law enforcement arrived and interviewed them, the men said they were sent on their way. All credited not only their military training but also the IPS safety training with helping them know what to do that day on the highway. “(The training) helped quite a bit because it helped keep me focused and able to think,” Reid said. Morey agreed. “We just got out and did what anybody else would have done, or should have done, anyway,” he said.

REPUTATION HELPS TO SECURE NEW CONTRACT

Successful Innovation

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APPALACHIAN WELL SERVICE NEWS

Servicios de Petrotec finds new use for coiled tubing expertise in Mexico

INTEGRATED PRODUCTION SERVICES NEWS

As more companies drill ever more wells throughout the Marcellus Shale, it has become increasingly important to develop and leverage relationships in an effort to differentiate from the competition in the market. Gary Violi, division operations manager for Appalachian Well Services, said the company is well on its way to becoming the service provider of choice in many areas throughout the shale gas play because of the work it has done on past jobs for large producers in the region. As of late October, AWS Pressure Pumping began a three-year contract to provide stimulation services for EOG Resources in Clearfield County, Pa. Violi said the company was able to leverage the contract based on its reputation and prior working relationship with EOG. “I believe that part of it had to do with our very good working relationship with EOG within CPX and also in the

Northeastern U.S.,” he said. “We’ve worked with them over the years, providing ancillary pump down services, cementing services and perforating services. We didn’t have high-pressure fracking back then, but they were familiar with the quality of the personnel that is associated with AWS.” Under the contract, AWS crews will provide hydraulic fracturing on horizontal Marcellus shale wells. The contract is designed to provide services 18 hours per day and seven days per week. The fleet consists of 16, 2,250-HHP frac pumps running two shifts per day. Violi said there will be an estimated 70 employees servicing this work throughout the duration of the project. “It’s a pretty big undertaking. We feel that there are ample opportunities in the Marcellus Shale and other emerging plays, and that this will be a long-term opportunity,” Violi said. “Demand (for oilfield services) is still much greater than the supply.”

In addition to providing a steady revenue stream and job security for AWS employees, Violi said the contract is another opportunity for AWS and Complete to make names for themselves in the Marcellus region. AWS was able to work closely with fellow Complete company, Pumpco Energy Services, in the months prior to the actual start-up of the contract. The cooperation, experience and relationships that grew, in combination with the resources provided by Complete, were directly responsible for the success of the contract, and, it is hoped that this contract will lead to other jobs for other operators. “Obviously we like to grow,” Violi said. “We want to leverage off this contract to develop additional opportunities. None of this could have been possible without the support of Complete and the help they gave us in regard to the training of new personnel through Pumpco Energy Services.”

A new technological innovation developed by Servicios de Petrotec - IPS’s division in Mexico working for PEMEX - has the potential to revolutionize the use of coiled tubing as operators continue to try and get more production from aging wells. The innovation - developed by Petrotec’s engineers Jocabeth Ramos and Joel Cantu and president Tony Hammond - involves substituting the sucker rods from the traditional mechanical pumping system with coiled tubing to keep the wells continually cleaned out and operating optimally. “We developed this technology at the request of PEMEX,” Hammond said. “Where we were doing a lot of work in the Chicontepec Formation we realized

that the wells were having to be worked over continuously or they would fill up with sand and silt and wouldn’t work properly.” The new system, on the other hand, calls for the installation of coiled tubing into the well to allow for the ongoing circulation of fluids to keep it clean and operating optimally, reducing the periodic maintenance and the downtime associated with that cleanout. The innovation has now been installed on numerous wells in the Chicontepec, and PEMEX is so pleased with the results it plans to release a paper on its test wells during an upcoming Intervention & Coiled Tubing Association (ICoTA) conference.


As the rented van cruised down Interstate 40 on a Thursday evening in early August, the seven new IPS employees riding inside were discussing the day of training they’d just completed and what they planned to do that night once they arrived back at their hotel. It had been a busy day of instruction in Oklahoma City for the former Marines, who were recruited to the company as part of IPS’s push to hire military veterans, and were now receiving training on the skills and responsibilities of being a coiled tubing helper. Already, the group - which included veterans Roberto Puga, Daniel Phillips, Marcus Pepper, Michael Muniz, Matt Sayers, Thomas Morey and Scott Reid - had been to IPS headquarters in Houston, where they completed the hiring process, took a defensive driving course and brushed up on first aid. That refresher on first aid - along with their copious training as Marines who had all been in active duty overseas - would turn out to be a fortuitous combination in the minutes ahead on the sprawling interstate. As Reid drove the van back to the hotel, he was following a dually pickup truck that was towing an empty flatbed trailer. Both vehicles crested a small hill only to be confronted with traffic that had ground to a halt. Reid hit his brakes and started to slow down as quickly and safely as he could. The pickup-trailer combo in front of Reid’s van tried to swerve to miss a stopped van in front of it, but clipped the vehicle’s rear

New employees take the initiative at scene

See Innovation on Page 8See Employees on Page 7

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WEST DIVISION NEWS EAST DIVISION NEWS

Finding a way to honor loved ones as well heighten awareness about breast cancer was the focus of a day of activities for Complete’s Enid, Oklahoma, office in late October. Jackie Forster, payroll manager for the West Division, said the Breast Cancer Awareness Day was held during lunch on Oct. 28, and that most of the employees at the Enid office participated in the silent auction and distributed door prizes to those who contributed money to a fund that was donated

to the Susan G. Komen for the Cure Foundation. “We are always finding ways to help get employees involved in a good cause and we felt like this particular one was very worthy of our time and efforts,” Forster said. “There are a lot of women who work in our office here, and we felt that since breast cancer affects so many women that we know, we wanted to do something special as a group of employees.”

Ten employees from Complete’s Frederick, Colo., office - along with four members of those employees’ families - participated in the one of Colorado’s largest 10K races in 2011. Scott Wright, one of the participants from Complete, said the Bolder Boulder held each year in Boulder, Colo., is considered a premier race by longtime runners. “A couple of us here in the office are runners, and the Bolder Boulder is one the largest races out there, in terms of number of people, which can exceed 50,000 entrants,” Wright said. “So, we basically tried to talk as many people in our office into running/walking the race

with us. We had done this race in the past, but this was the largest turnout for our office.” Wright added that when Joni Stoner, director of Human Resources for Complete’s West Division, got involved in the event, the group had T-shirts - which were provided by A&W Water Service and Northern Plains Trucking - designed to wear at the event. Those participating from the Frederick office were Jo Ann Smith; Shawn Martinez and his wife Ginger; Todd Pene, his wife Alisa, and their sons, Caleb and Joshua; Kathy Grasteit; Logann Grasteit; Kyle Patterson; Kelly Russell; Tom Flinn; Wright; and Stoner.

Mercer Well Service’s successful entry into the Permian Basin in 2011 was the result of finding the right people to head up and maintain its operations while developing contacts with large producers flocking to the region. Bill Pittman, vice president of Mercer, said we entered the Permian in April by dispatching three rigs from its fleet to Odessa. Almost immediately, he said, those rigs were put to work, and the team in West Texas started fielding calls from customers who needed more personnel and equipment to handle the work there. By November, Mercer

had 19 rigs working full-time and had added a swab unit to its Permian fleet. “All of the growth for Mercer in the Permian has been organic,” Pittman said. “By the end of 2011, we planned on having 21 service rigs, a swab rig and one anchor truck working between Big Springs, Texas, and Carlsbad, New Mexico.” Mercer’s entry into West Texas followed Pittman’s meetings with producers who are active throughout the region to gauge the market and find the right person who could launch the operation there.

“Over and over, I kept hearing the name Geronimo “Keno” Campos, who has been in the well service business for more than 30 years, and has worked with various well service companies throughout West Texas” Pittman said. He contacted Campos about the planned Permian entry and during their conversations, Pittman said it became clear Keno was the right fit for the job. But before he’d make a commitment to work for Mercer, Campos and three rig operators came to Mercer’s facilities in Gainesville, Texas, to see the company’s

As the Association of Energy Service Companies’ HSE chairwoman, Joyce Ryel is responsible for presenting the Safety Person of the Year award at the committee’s annual meeting. But as the committee prepared for last year’s meeting in Forth Worth on Oct. 4, she was told no one had won the award. “We had agreed not to give an award this year,” Ryel said. “As I opened the conference, they surprised me.” As it turned out, Ryel - a 13-year safety veteran who is the director of HSE for Complete’s West Division, received the 2011 award for her continuing work to promote and enhance safety in the oil, gas and trucking industries. Ryel, who holds a degree in adult education with an emphasis in industrial safety from the University of Central Oklahoma, said her guiding safety philoshopy has always been that informed workers are safe workers. “Most of the things that happen, happen because people are not aware of the dangers,” Ryel said. “It’s really important that we educate.” In her role as HSE director, Ryel has pushed for more comprehensive and targeted training. She believes that training

Joyce Ryel, center, along with Brian Moore, Complete’s President and COO; and Ron Boyd, West Division President.

The Frederick, Colo., running crew (from left): Kyle Patterson, Kathy Grasteit, Shawn Martinez, Scott Wright, Joni Stoner, Tom Flinn, Caleb Pene, Todd Pene, Alisa Pene and Jo Ann Smith.

Continued robust drilling activity in the Eagle Ford Shale in South Texas and new business opportunities in the Permian Basin in West Texas have led to the opening of three new facilities by Shale Tank Truck. Doug Gossett said Shale Tank Truck opened a location in Carrizo Springs, Texas, in June and another in Karnes City, Texas, in September to handle the increasing workload in the Eagle Ford. “I estimate we have 50 people working in Carrizo Springs and 19 more in Karnes City,” Gossett said. “There is a lot of activity in South Texas, and we are right in the thick of it.” Between the two yards, Shale Tank Truck now has 160 frac tanks and 36 trucks handling the delivery of freshwater to wellsites and the removal of flowback and produced water. In addition, Shale has drilled saltwater disposal wells at both locations, enabling the company to handle the disposal of the production material at its own facilities. “That is a major piece of the puzzle that makes us even

more competitive in the Eagle Ford,” Gossett said. In West Texas, Shale has been busy opening a new facility in Odessa to handle the influx of producers that are flocking to that region as well. Gossett said the Odessa location includes 11 trucks, 130 frac tanks and 10 acid tanks. He added that the company has also leased a parcel of land south of Midland to help it meet the expected high demand for its services in the Permian Basin in the ensuing years. “We have 27 employees in Odessa right now but I’m hopeful we’ll have closer to 100 working in the Permian by the end of this year,” he said.


Joyce Ryel named Safety Person of the Year by AESC

Enid, Okla., office holds Breast Cancer Awareness Day

Mercer makes successful entry into Permian

See Ryel on Page 8

GROUP BECOMES MOTIVATING FORCE

SHALE TANK SOLIDIFIES PRESENCE IN EAGLE FORD, PERMIAN BASINS

See Mercer on Page 8

Shale’s new facility in Carrizo Springs, Texas.

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WEST DIVISION NEWS EAST DIVISION NEWS

Finding a way to honor loved ones as well heighten awareness about breast cancer was the focus of a day of activities for Complete’s Enid, Oklahoma, office in late October. Jackie Forster, payroll manager for the West Division, said the Breast Cancer Awareness Day was held during lunch on Oct. 28, and that most of the employees at the Enid office participated in the silent auction and distributed door prizes to those who contributed money to a fund that was donated

to the Susan G. Komen for the Cure Foundation. “We are always finding ways to help get employees involved in a good cause and we felt like this particular one was very worthy of our time and efforts,” Forster said. “There are a lot of women who work in our office here, and we felt that since breast cancer affects so many women that we know, we wanted to do something special as a group of employees.”

Ten employees from Complete’s Frederick, Colo., office - along with four members of those employees’ families - participated in the one of Colorado’s largest 10K races in 2011. Scott Wright, one of the participants from Complete, said the Bolder Boulder held each year in Boulder, Colo., is considered a premier race by longtime runners. “A couple of us here in the office are runners, and the Bolder Boulder is one the largest races out there, in terms of number of people, which can exceed 50,000 entrants,” Wright said. “So, we basically tried to talk as many people in our office into running/walking the race

with us. We had done this race in the past, but this was the largest turnout for our office.” Wright added that when Joni Stoner, director of Human Resources for Complete’s West Division, got involved in the event, the group had T-shirts - which were provided by A&W Water Service and Northern Plains Trucking - designed to wear at the event. Those participating from the Frederick office were Jo Ann Smith; Shawn Martinez and his wife Ginger; Todd Pene, his wife Alisa, and their sons, Caleb and Joshua; Kathy Grasteit; Logann Grasteit; Kyle Patterson; Kelly Russell; Tom Flinn; Wright; and Stoner.

Mercer Well Service’s successful entry into the Permian Basin in 2011 was the result of finding the right people to head up and maintain its operations while developing contacts with large producers flocking to the region. Bill Pittman, vice president of Mercer, said we entered the Permian in April by dispatching three rigs from its fleet to Odessa. Almost immediately, he said, those rigs were put to work, and the team in West Texas started fielding calls from customers who needed more personnel and equipment to handle the work there. By November, Mercer

had 19 rigs working full-time and had added a swab unit to its Permian fleet. “All of the growth for Mercer in the Permian has been organic,” Pittman said. “By the end of 2011, we planned on having 21 service rigs, a swab rig and one anchor truck working between Big Springs, Texas, and Carlsbad, New Mexico.” Mercer’s entry into West Texas followed Pittman’s meetings with producers who are active throughout the region to gauge the market and find the right person who could launch the operation there.

“Over and over, I kept hearing the name Geronimo “Keno” Campos, who has been in the well service business for more than 30 years, and has worked with various well service companies throughout West Texas” Pittman said. He contacted Campos about the planned Permian entry and during their conversations, Pittman said it became clear Keno was the right fit for the job. But before he’d make a commitment to work for Mercer, Campos and three rig operators came to Mercer’s facilities in Gainesville, Texas, to see the company’s

As the Association of Energy Service Companies’ HSE chairwoman, Joyce Ryel is responsible for presenting the Safety Person of the Year award at the committee’s annual meeting. But as the committee prepared for last year’s meeting in Forth Worth on Oct. 4, she was told no one had won the award. “We had agreed not to give an award this year,” Ryel said. “As I opened the conference, they surprised me.” As it turned out, Ryel - a 13-year safety veteran who is the director of HSE for Complete’s West Division, received the 2011 award for her continuing work to promote and enhance safety in the oil, gas and trucking industries. Ryel, who holds a degree in adult education with an emphasis in industrial safety from the University of Central Oklahoma, said her guiding safety philoshopy has always been that informed workers are safe workers. “Most of the things that happen, happen because people are not aware of the dangers,” Ryel said. “It’s really important that we educate.” In her role as HSE director, Ryel has pushed for more comprehensive and targeted training. She believes that training

Joyce Ryel, center, along with Brian Moore, Complete’s President and COO; and Ron Boyd, West Division President.

The Frederick, Colo., running crew (from left): Kyle Patterson, Kathy Grasteit, Shawn Martinez, Scott Wright, Joni Stoner, Tom Flinn, Caleb Pene, Todd Pene, Alisa Pene and Jo Ann Smith.

Continued robust drilling activity in the Eagle Ford Shale in South Texas and new business opportunities in the Permian Basin in West Texas have led to the opening of three new facilities by Shale Tank Truck. Doug Gossett said Shale Tank Truck opened a location in Carrizo Springs, Texas, in June and another in Karnes City, Texas, in September to handle the increasing workload in the Eagle Ford. “I estimate we have 50 people working in Carrizo Springs and 19 more in Karnes City,” Gossett said. “There is a lot of activity in South Texas, and we are right in the thick of it.” Between the two yards, Shale Tank Truck now has 160 frac tanks and 36 trucks handling the delivery of freshwater to wellsites and the removal of flowback and produced water. In addition, Shale has drilled saltwater disposal wells at both locations, enabling the company to handle the disposal of the production material at its own facilities. “That is a major piece of the puzzle that makes us even

more competitive in the Eagle Ford,” Gossett said. In West Texas, Shale has been busy opening a new facility in Odessa to handle the influx of producers that are flocking to that region as well. Gossett said the Odessa location includes 11 trucks, 130 frac tanks and 10 acid tanks. He added that the company has also leased a parcel of land south of Midland to help it meet the expected high demand for its services in the Permian Basin in the ensuing years. “We have 27 employees in Odessa right now but I’m hopeful we’ll have closer to 100 working in the Permian by the end of this year,” he said.


Joyce Ryel named Safety Person of the Year by AESC

Enid, Okla., office holds Breast Cancer Awareness Day

Mercer makes successful entry into Permian

See Ryel on Page 8

GROUP BECOMES MOTIVATING FORCE

SHALE TANK SOLIDIFIES PRESENCE IN EAGLE FORD, PERMIAN BASINS

See Mercer on Page 8

Shale’s new facility in Carrizo Springs, Texas.

REPUTATION HELPS TO SECURE NEW CONTRACT

Successful Innovation

2 3

APPALACHIAN WELL SERVICE NEWS

Servicios de Petrotec finds new use for coiled tubing expertise in Mexico

INTEGRATED PRODUCTION SERVICES NEWS

As more companies drill ever more wells throughout the Marcellus Shale, it has become increasingly important to develop and leverage relationships in an effort to differentiate from the competition in the market. Gary Violi, division operations manager for Appalachian Well Services, said the company is well on its way to becoming the service provider of choice in many areas throughout the shale gas play because of the work it has done on past jobs for large producers in the region. As of late October, AWS Pressure Pumping began a three-year contract to provide stimulation services for EOG Resources in Clearfield County, Pa. Violi said the company was able to leverage the contract based on its reputation and prior working relationship with EOG. “I believe that part of it had to do with our very good working relationship with EOG within CPX and also in the

Northeastern U.S.,” he said. “We’ve worked with them over the years, providing ancillary pump down services, cementing services and perforating services. We didn’t have high-pressure fracking back then, but they were familiar with the quality of the personnel that is associated with AWS.” Under the contract, AWS crews will provide hydraulic fracturing on horizontal Marcellus shale wells. The contract is designed to provide services 18 hours per day and seven days per week. The fleet consists of 16, 2,250-HHP frac pumps running two shifts per day. Violi said there will be an estimated 70 employees servicing this work throughout the duration of the project. “It’s a pretty big undertaking. We feel that there are ample opportunities in the Marcellus Shale and other emerging plays, and that this will be a long-term opportunity,” Violi said. “Demand (for oilfield services) is still much greater than the supply.”

In addition to providing a steady revenue stream and job security for AWS employees, Violi said the contract is another opportunity for AWS and Complete to make names for themselves in the Marcellus region. AWS was able to work closely with fellow Complete company, Pumpco Energy Services, in the months prior to the actual start-up of the contract. The cooperation, experience and relationships that grew, in combination with the resources provided by Complete, were directly responsible for the success of the contract, and, it is hoped that this contract will lead to other jobs for other operators. “Obviously we like to grow,” Violi said. “We want to leverage off this contract to develop additional opportunities. None of this could have been possible without the support of Complete and the help they gave us in regard to the training of new personnel through Pumpco Energy Services.”

A new technological innovation developed by Servicios de Petrotec - IPS’s division in Mexico working for PEMEX - has the potential to revolutionize the use of coiled tubing as operators continue to try and get more production from aging wells. The innovation - developed by Petrotec’s engineers Jocabeth Ramos and Joel Cantu and president Tony Hammond - involves substituting the sucker rods from the traditional mechanical pumping system with coiled tubing to keep the wells continually cleaned out and operating optimally. “We developed this technology at the request of PEMEX,” Hammond said. “Where we were doing a lot of work in the Chicontepec Formation we realized

that the wells were having to be worked over continuously or they would fill up with sand and silt and wouldn’t work properly.” The new system, on the other hand, calls for the installation of coiled tubing into the well to allow for the ongoing circulation of fluids to keep it clean and operating optimally, reducing the periodic maintenance and the downtime associated with that cleanout. The innovation has now been installed on numerous wells in the Chicontepec, and PEMEX is so pleased with the results it plans to release a paper on its test wells during an upcoming Intervention & Coiled Tubing Association (ICoTA) conference.


As the rented van cruised down Interstate 40 on a Thursday evening in early August, the seven new IPS employees riding inside were discussing the day of training they’d just completed and what they planned to do that night once they arrived back at their hotel. It had been a busy day of instruction in Oklahoma City for the former Marines, who were recruited to the company as part of IPS’s push to hire military veterans, and were now receiving training on the skills and responsibilities of being a coiled tubing helper. Already, the group - which included veterans Roberto Puga, Daniel Phillips, Marcus Pepper, Michael Muniz, Matt Sayers, Thomas Morey and Scott Reid - had been to IPS headquarters in Houston, where they completed the hiring process, took a defensive driving course and brushed up on first aid. That refresher on first aid - along with their copious training as Marines who had all been in active duty overseas - would turn out to be a fortuitous combination in the minutes ahead on the sprawling interstate. As Reid drove the van back to the hotel, he was following a dually pickup truck that was towing an empty flatbed trailer. Both vehicles crested a small hill only to be confronted with traffic that had ground to a halt. Reid hit his brakes and started to slow down as quickly and safely as he could. The pickup-trailer combo in front of Reid’s van tried to swerve to miss a stopped van in front of it, but clipped the vehicle’s rear

New employees take the initiative at scene

See Innovation on Page 8See Employees on Page 7

Merger with Superior opens new opportunities

NEW SAFETY VIDEO FEATURESCOMPLETE EMPLOYEES

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COMPANYNEWS COMPANYNEWS

Superior Energy Services and Complete Production Services announced in October that the two companies would merge, creating the premier diversified oilfield services company that will serve both the North American and international markets. The merger, which should be completed by early February, was a good fit for Complete and its employees for a number of reasons, said Complete Chairman and Chief Executive Officer Joe Winkler. “We’ve agreed to enter into this

transaction because it creates a much larger, stronger platform to provide opportunities for growth in future,” Winkler said. “We believe the combined strength of the organization will allow us to take advantage of those opportunities in North America and then go beyond this continent’s borders at the appropriate time. While Superior has been working internationally already, this creates a new opportunity for all of us at Complete.” For employees, the transaction will result in few changes because there is

very little overlap in the service lines provided by the two organizations. “There are a couple of areas within the two companies where there will be exceptions to that but for most everyone in Complete, it’s business as usual,” Winkler said. “There will be no changes in compensation, bonus opportunities and our benefits package in the first year after the deal is approved. As a result of the merger, we will continue to make adjustments as required to remain competitive in our markets.”

Crews from Stride Well Service, along with equipment and personnel from Hamm & Phillips, are featured in a new safety video created for the Association of Energy Service Companies. Joyce Ryel, director of Health, Safety and Environmental for Complete’s West Division, said filming of “In One Breath,” a short feature focused on safe working practices for oilfield service

crews, was recently completed. “It’s a project I’m really proud of, and I think it’s going to improve the safety of thousands of workers,” Ryel said. The video was shot by KJ Productions of Enid, Okla., and was funded by the AESC. Videos can be purchased for $100 on the AESC Web site, www.aesc.net.

Due to potentially lethal concentrations inherent in some hydrocarbon areas like oilfields, awareness, detection and monitoring of Hydrogen Sulfide is a critical component to ensuring the safety of crews working in the nation’s oil & gas fields. Scott Mercer, director of Health, Safety and Environmental for Complete’s East Division, said Hydrogen Sulfide, or H2S as it’s typically called, is a naturally occurring gas that is highly flammable and extremely toxic. While it has a characteristic “rotten egg” odor at lower concentrations, it is virtually odorless when it exists at higher concentrations because it fatigues a person’s sense of smell, meaning

It is important that every oilfield worker understand the characteristics of H2S. Knowing these Hydrogen Sulfide characteristics are valuable when you have to evaluate a potential H2S hazard at your work location.

The characteristics of Hydrogen Sulfide are:• It is colorless – H2S cannot be seen as a gas.• It can have a rotten egg smell – Due to its sulfur content, H2S has a

distinctive smell.•This smell is only apparent in low concentrations.•The olfactory nerve suffers fatigue at higher concentrations, and the

sense of smell is lost.• H2S is also flammable – H2S has a flammable range of 4.3% to 46% in air,

and an ignition temperature of 500°F. By comparison, the temperature of the tip of a lit cigarette is over 700° F.

• H2S is heavier than air – H2S has a vapor density of approximately 1.19, which makes it slightly heavier than air (1.00). This is why H2S settles in low areas.

• H2S is water soluble – H2S will mix into a solution with water, and will be carried to the surface in produced water and drilling mud.

• It is also corrosive – When H2S mixes with water, a weak hydrosulfonic acid is formed. This acid will deteriorate metals with high iron content, creating Iron Sulfide Scale. Also, this causes irritation of the eyes, nose, and throat areas of the exposed person.

• And most important, H2S is toxic – Hydrogen Sulfide ranks as the second most deadly naturally occurring gas, behind Hydrogen Cyanide.

•H2S kills by paralyzing the nervous system area that controls the involuntary function of breathing. The result is lack of oxygen to the brain, followed by death in minutes.

- Source: West Texas Safety Training Center


Training focuses on awareness, monitoring of H2S

See H2S on Page 7

many of its victims are unaware of its presence, even while it’s potentially killing them. Mercer said H2S training - which is a significant piece of Complete’s overall training program - provides the tools and knowledge necessary for survival. He said the importance of the training was made clear at a well in North Texas recently. “We had an incident where employees’ monitors went off and our guys acted appropriately,” Mercer said. “They not only prevented themselves from being injured, but there were other company’s personnel who were not wearing monitors. Because of their training and their actions they potentially saved lives that day.”

HOW TO IDENTIFY THE CHARACTERISTICS OF H2S

EMPLOYEES

H2S

quarter panel hard enough to force it into the back of another car. The van then flipped, ejecting its driver through a rear passenger window before coming to rest on its passenger side, trapping a woman inside. Reid stopped his van within feet of the injured driver. At that point, each of the former Marines got out and went to work. Reid called 911 on his cell phone and began directing traffic around the accident scene. Phillips also called for assistance, then helped check on the pickup truck driver and the occupants of the car that the van hit. None of them had serious injuries. Puga immediately went to the van driver who was on the ground.

“He didn’t look like he was breathing,” Puga said. “Thank God we had gotten that CPR refresher course.” Puga began talking to the man trying to get him to open his eyes. Eventually, the injured man gasped for breath and began to respond. At this point, an off-duty EMT had stopped to help and began working on the injured driver. Puga then noticed Muniz and the other men working to free the woman from the wrecked van. Muniz, Sayers, Pepper and Morey had tried to kick out the van’s windshield to free the woman who was crying for help. Pepper was attempting to break the wrecked van’s windshield when he smelled gasoline. He said that’s when Muniz went to the back of the van to get

the woman away from the flammable liquid. Morey said the group was able to move her from the wreckage and stayed with her until an ambulance got to the scene. Once law enforcement arrived and interviewed them, the men said they were sent on their way. All credited not only their military training but also the IPS safety training with helping them know what to do that day on the highway. “(The training) helped quite a bit because it helped keep me focused and able to think,” Reid said. Morey agreed. “We just got out and did what anybody else would have done, or should have done, anyway,” he said.

As we enter 2012, I’d like to personally thank each of you for your continued hard work and dedication in making Complete a leading North American oilfield services provider. Our performance in 2011 was outstanding, and was a result of identifying opportunities and using our knowledge, flexibility and capabilities to execute at the wellsite in an efficient and safe manner. Our success in meeting customer expectations has created momentum that will continue an accelerated expansion into new basins where our customers are most active, particularly those plays that are considered oil and liquids rich. Some of the highlights of the past year include:• Increasing revenues from $1.5 billion

in 2010 to more than $2.2. billion in 2011;

• Significantly increasing our workforce to handle the demand for our services. Over the past year, the number of employees increased 23.8 percent to more than 7,600;

• Deploying more than $420 million in new equipment to take advantage of opportunities in emerging plays;

• Expanding our presence in the Marcellus, Eagle Ford, Bakken and Niobrara formations by leveraging customer relationships and expertise we forged in basins where our customers were previously active. For example, when customers extended their footprint from the Barnett Shale to the Eagle Ford, many asked us to join them in setting up operations in these new locations.

Our continued strong performance

led to a new development last year as well. In October, we announced that Complete would merge with Superior Energy Services. This transaction, which will be finalized by February, will create a top-tier diversified oilfield services company with a presence in both the North American and international markets. We believe the combination will create significant new growth opportunities for all of us in the coming years by expanding the demand for our services and expertise globally. As we move forward into this new year, we plan to continue accelerating our presence in the most active basins, including expansion throughout the Permian in West Texas. The industry outlook for demand of oilfield services is strong in 2012, as producers boost domestic oil production while relying less on imports from increasingly volatile global regions. I’m proud of our accomplishments in 2011, and look forward to another successful year. Thanks for doing your part in helping us continue as a leading oilfield services provider.

Sincerely,

COMPANYUPDATE

CONNECTION Complete

Complete

Production Services

Production Services

Strong performance in 2011 builds momentum for new year

For more information about the Complete Connection, call Ken Nibling at 281.372.2318 or send him an e-mail at knibling@ completeproduction.com

11700 Katy Freeway, Suite 200Houston, Texaswww.completeproduction.com

“We believe this is technology that can be used around the world where operators are consistently having to clean the wells to get the buildup out and optimize production,” Hammond said. “It’s a new step in using coiled tubing.” On the cusp of the completed tests of the new coiled tubing cleanout system, Petrotec also had two contracts renewed to provide coiled tubing services for PEMEX in the northern and southern parts of the country. The contracts run for three years, and continue a long-standing relationship - which has now spanned more than

16 years - between Petrotec and the Mexican state-owned petroleum company. In the north, Petrotec will continue to work at the vast Chicontepec Formation where there are an abundance of low-pressure, low-production wells where the company has had much success getting the jobs done quickly and economically, allowing PEMEX to keep the values in the field. In the south, Petrotec is working in a region around Villahermosa where the wells are typically very deep, and where the company can employs its expertise and its 1 3/4” coiled tubing units to maintain the wells at significant depths.

should be tailored to the specific challenges and threats a worker will face on the job, whether that job is on an oil rig or in the cab of a truck. An example is a video she helped put together recently. Ryel said she had found that most of the training materials available were out-of-date or too broad in their scope to be of real use for today’s oilfield worker. So, working with AESC, Ryel’s committee was able to produce a video targeted at those workers and providing up-to-date information. The video was shot on an active worksite and used actual oilfield employees, many from the West Division. She believes the video will go a long way toward educating and protecting workers in the field. Over the years, Ryel has worked to foster a good working relationship with the Occupational Safety and Health Administration, the Department of Transportation, and other agencies that oversee workplace safety. This not only helps keep her company’s worksites in compliance with agency regulations, but enables her to keep up-to-date with the latest information and requirements. That information is essential for keeping workers safe. “If they don’t know the dangers, they can’t protect themselves,” Ryel said.

RYELINNOVATION

MERCER

operations. Pittman said that visit sealed the deal for Campos and the three operators, and they agreed to come on board and help launch the Permian operations. Just two weeks after launching operations in the Permian, one of Mercer’s assistant yard managers, Gary Sefcik, indicated he wanted to move back to West Texas where he started his career. In September, Sefcik joined Campos in managing the company’s operations in the Permian. “Both guys have done a tremendous job bringing on quality crews and they have a very solid customer base” Pittman said. Mercer plans to build several Slick 550 service rigs and send them to the

Permian this year. In addition, with the number of rigs working between Pecos, Texas, and southeast New Mexico, Mercer plans to open a facility in Kermit, Texas, in early 2012. The Kermit facility will be managed by Sefcik, while Campos will continue to head up operations in Odessa. Just five months after setting up operations in Odessa, the team eclipsed a significant sales milestone that led to Pittman agreeing to cook for the entire team. On Nov. 19 more than 70 employees showed up for the cookout, and food was delivered to the four rig crews that had to work that day. “Our goals are to have the best people, regard safety as our No. 1 priority and provide our customers with the best service possible,” Pittman said. “We wouldn’t have achieved the success

WHAT’S INSIDE

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New safety video featuresComplete employees

IPS operations in Mexico find new use for coil

Colorado office supports each other in 10K race

Mercer expands successfully into the Permian Basin

WINTER 2012

Joseph C. WinklerChairman & CEO

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