Pipeline News February 2009

PIPELINE NEWSSaskatchewan’s Petroleum MonthlySaskatchewan’s Petroleum Monthly

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February 2009 FREE Volume 1 Issue 9

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PIPELINE NEWS February 2009A2

NewsNotes

It wasn’t too long ago there was talk of hoard-

ing pipe and a tubular shortage. Th at’s changed,

however, with news on Jan. 21 that Evraz Regina

Steel, formerly Ipsco, would be laying off over 100

workers in its tubular division.

Th e layoff s are close in number to a recent in-

crease, just a few months ago.

Th e workers are organized under United Steel

Workers Local 5890.

Evraz vice president of tubular operations

Jim Clarke noted on Jan. 21, “Drilling rights right

now are at a 10-year low for this time of year.

“We have a traditional slowdown in West-

ern Canada oil drilling business in spring anyway.

However, our customers are telling us this year

that they expect activities after spring breakup to

be much slower then we would have assumed a

few months ago.”

Due in part to the current weakness in the oil

and gas industry, Badger Income Fund says it has

reduced its monthly build rate by approximately

50% for the foreseeable future.

In the third quarter of 2008, the trust indi-

cated it planned to build new daylighting units

at a rate of six to eight units per month. At the

beginning of 2008, Badger had 334 units in its

fl eet, adding 84 units and retiring four during the

year for a total fl eet of 414 units as of today, rep-

resenting a 24% growth in its fl eet year-to-date

in 2008.

In a period of economic uncertainty plus

weakness in the oil and gas industry Badger said

it believes it is prudent to reduce its build and fo-

cus on revenue generation to keep its current fl eet

in use.

Badger traditionally works for contractors and

facility owners in the utility and petroleum indus-

tries. One key technology is the Badger Hydrovac

which is used primarily for digging in congested

grounds and challenging conditions.

Evraz up, then down

Badger reduces monthly build

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Environmental Division - Darwin Frehlick - Cell: 421-0491

JIM MERKLEY

Cell: 483-7633

WAYNE HEINEstevan, Sask.Cell: 421-9555

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

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Mud Technicians

By Geoff LeePipeline News

Calgary – NuVista Energy Ltd.’s survive and

thrive strategy in 2009 will follow a familiar and suc-

cessful pattern after announcing a preliminary capi-

tal budget of $290 million in December 2008 with

up to $75 million allocated for new acquisitions.

Th e publicly traded oil and gas company, based

in Calgary, will scale back exploration and develop-

ment capital expenditures in the fi rst half of 2009 to

fund a $53 million purchase of gas properties in its

Ferrier/Sunchild, Wapiti and northwest Saskatch-

ewan core areas. Th e acquisition closed Jan. 29.

Alex Verge, president and CEO hopes to stick

with the budget plan but he said, “Th e environment

is really strange so I think at this point it’s become

diffi cult to

promise a

budget that

b e c o m e s

greater than

cash fl ow.

“We are

going to try

for the fi rst

six months

of the year to

stay within

our cash fl ow

including our

acquisitions.

It’s a com-

mon trend

largely due to

the economic

uncertainty.

“Most of the companies in this sector right now

are trading signifi cantly below their net asset value

by any conservative measure. It’s unlikely companies

will want to raise equity to fund aggressive drilling

programs.”

“We had a meeting with our technical teams in

January and we told them we need to be prepared

to execute a $290 million program. Th at being said,

most of the exploration and development will come

between June and December.”

Verge adds if equity markets bounce back and

budget assumptions about commodity prices are

correct “We are going to be in a position to deliver

on that $290 million budget.”

NuVista has budgeted to participate in drilling

90 to100 wells this year but that total will include

only six or seven wells in Q1 and no more than13

in Q2 including a couple of wells in the west central

area of Saskatchewan.

“Most the drilling we are doing in Saskatchewan

with the exception of the northwest can be done in

the third or fourth quarter,” said Verge.

No new drilling will take place this winter on

the new acquisitions in keeping with NuVista’s early

plans to live within their cash fl ow and cut back on

Q1 capital spending.

“Not only do we expect service costs to come

down but it is cheaper to drill those wells (west cen-

tral Saskatchewan) in the summer because you don’t

need a lot of equipment associated with cold,” ex-

plained Verge.

Th e corporate production target is to produce

between 27,500 and 28,000 bbls of oil equivalent per

day with a 72 per cent natural gas weighting.

“If you recall when we acquired Rider Resources

Ltd. (March 2008), we really scaled back our fi rst

quarter drilling program,” said Verge.

“We moved a lot of our wells in Alberta out to

June and July from the fi rst quarter and some of

our wells from

west central

Saskatchewan

got moved as

well.

“Basically

what happened

is both areas

got drilled.

Th ey just got

drilled in the

last half of the

year. What we

are doing this

year is no dif-

ferent. It’s just

a straight re-

sult of having

this acquisition

come early in

the year.”

With the northwestern Saskatchewan acquisi-

tion, NuVista increased its interest in a gas prop-

erty from 37 per cent to 76 per cent and gives the

company strategic access to gas in the Primrose Air

Weapons range that Verge thinks could open up to

drilling in the future.

“With the acquisition, we pick up complemen-

tary interest in one of the only pipelines that goes

through Meadow Lake Provincial Park” said Verge.

“Th at’s the pipeline that leads to the Primrose weap-

ons range.”

Verge describes the northwestern Saskatchewan

acquisition as “very stable with a long life with very

reasonable quality production.”

Current production from the acquired properties

is approximately 1,600 bbls of oil equivalent with a

73 per cent gas weighting.

NuVista bases its growth and shareholder value

on an “acquire and develop” business model to de-

velop new opportunities for drilling.

Page A6

NuVista adopts an acquire and drill later strategy

We are getting to a point in this basin

(western sedimentary) where it’s cheaper to

acquire properties than drill them yourself-Alex Verge president and CEO

“

”

PIPELINE NEWS February 2009 A3

NewsNotes

TransCanada Corp announced in mid-Jan-

uary it was delaying the proposed polygenera-

tion plant for Belle Plaine, between Regina and

Moose Jaw.

Th e facility would generate electricity, hy-

drogen, nitrogen, steam and carbon dioxide. Th e

price tag is pegged at $4 billion. Th ose costs are

being re-evaluated.

A decision is expected in the next six to 12

months.

Ironhorse Oil & Gas Inc. reports that its

winter 2009 drilling program is underway in the

Shackleton, Saskatchewan and Pembina, Alberta

areas.

Drilling has commenced on the company’s

Shackleton property where Ironhorse plans to

drill, complete and tie in up to 32 (16 net) gas

wells.

Th e company currently has two drilling rigs

working in the Shackleton area, together with

the associated equipment and services necessary

to complete and tie in the gas wells. Th e new gas

wells will be placed on production as they are

drilled and completed - as the pipelines for the

new wells were installed in November of 2008.

As of March 1, 2009 Ironhorse said it expects

the new gas wells will result in Ironhorse’s net

daily production increasing from 950 bbls of oil

equivalent per day to 1,500 BOE per day which

will be 99% gas weighted.

Ironhorse said it is evaluating and planning

to undertake additional drilling and exploration

activities in other areas throughout 2009.

Ironhorse Winter Program

Underway

Polygen plant delayed

By Brian Zinchuk

Photos courtesy Nordic Oil and GasPipeline News

Preeceville – Nordic Gil and Gas of Winnipeg is

one of several companies with land position in the

Preeceville area, where shale gas is perking some in-

terest. But Nordic is not necessarily

taking that path, looking for gas.

No, they’re looking for black gold.

“It’s an area that probably a lot

of people have never heard of,” says

Don Bain, corporate secretary for

Nordic. “An area no one knew any-

thing about.”

Nordic is affi liated with West-

ern Warner Oils Ltd., established

over 80 years ago. Western Warner’s

website notes, “Western Warner

Oils Ltd. is one of Canada’s oldest

oil and gas companies having been

involved in the exploration and de-

velopment of oil and natural gas re-

sources since 1926. Celebrating its

80th anniversary of incorporation

in 2006, Western Warner today is

the major shareholder in Desoto

Resources Limited, a privately-held

Alberta company with substantial

land holdings and assets in the Joff re, Alberta area.

In turn, Desoto Resources is the largest single share-

holder in Nordic Oil and Gas Ltd., a Winnipeg-

based public company listed on the Toronto Venture

Exchange, trading under the symbol NOG. Nordic is

an independent company engaged in the exploration

and development of natural gas, coal bed methane gas

and heavy oil in Alberta and heavy oil and shale gas

in Saskatchewan.”

“Western Warner owns a 20% interest in Special

Exploratory Permits covering 22,879 gross acres of P

& NG leases with the rights from the surface to the

top of the Precambrian. Th e results from seismic shot

have identifi ed up to 80 possible exploration locations

in the area.”

Nordic’s website notes,

“Th e Preeceville region is, in

the company's view, an area of

great promise and potential. Th e

company has an 80% interest in

37,124 gross acres of P&NG

leases with rights to the base-

ment covering an additional

22,879 gross acres.

Bain says, “We’ve got a fair-

ly big holding. We were the fi rst

people in the region. Nobody

thought much of it.”

However, he notes, “We

haven’t gone after the shale

gas.”

In November, 2007, through

the work of a third party, oil

seeps were found in an area

north of Preeceville. Th ere were

34 “shows” in total, extending

over 400 feet along the Pewei River.

“Th is was the real McCoy, not tractor oil,” Bain

says, adding that major oil fi elds have been discov-

ered as a result of oil seeps. He’s not suggesting for a

minute, however, that is the case here. “Exploration

drilling is like that. One in ten, two in ten.”

Page A6

Others are seeking shale gas, Nordic is looking for oil

This photo, found on Nordic Oil and Gas’ website, are of oil seeps they have found in the Preeceville area.

This map shows Nordic’s Preeceville holdings.

Mission Statement:Pipeline News’ mission is to illuminate importance of Saskatchewan oil as an integral part of the province’s sense of community and to show the general public the strength and character of the industry’s people.

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gatherers.

PIPELINE NEWS February 2009A4 EDITORIAL

Editorial

It’s becoming clear that while activity in the Sas-

katchewan oilpatch is down from its lofty heights of

2008, it’s still moving along.

In 2007, the year started with around 60 rigs active

and rose to the 70 range until spring breakup. In 2008,

the start was just under 50 and rose to under 70 before

the spring dropoff . As of Jan. 19, this year, there were

45 rigs active, with 82 down in Saskatchewan, for a

total fl eet of 127. Th at means just 35 per cent were ac-

tive, according to Nickles.com Rig Locator.

Alberta’s percentage is higher, at 56 per cent (316

active of 569), while BC’s is at 81 per cent at the same

point (108 active of 134). Manitoba, with only 13 rigs,

is hardly statistically signifi cant. Yet they, too, are run-

ning at 7 of 13 rigs active.

Rig counts are a bellwether indicator, because

drilling activity translates into service rig completions,

pipeline tie-ins, and everything else that follows in

the production chain. You don’t need a completion if

you haven’t drilled a well. Nor do you need to fl owline

it to a battery. Simply put, this winter, fewer people

are working on Saskatchewan drilling rigs, and that’s

going to be a downer throughout the sector compared

to last year’s frenetic pace. It might even be back to

something we used to consider normal.

With oil plummeting by approximately three

quarters of its peak price, this is to be expected. Th e

question arises as to what will happen with those who

were working on the rigs?

We’re going to see a form of bumping, like when

there are layoff s in a union shop. Th e most recent in-

fl ux of new workers will be the fi rst fl ushed out of the

All this has happened before...system. Experienced hands will have an edge fi nding

work, and those who had moved up the food chain

(roughneck-motorhand-derrickhand-driller-toolpush)

might fi nd themselves moving back down a notch,

just to keep the paychecks coming.

Companies will have the option of being more

selective in their workforce. It’s going to be more than

just a body fi lling a position. Resumes will come to

mean something again.

One strategy we heard was using the swing shifts

of some rigs to fi ll another rig’s staffi ng. It means

more rigs working, with fewer staff . It’ll be hard on

the workers, as they’re not going to see much, if any,

time off between now and spring break up, but at least

they’d be working, provided their rig is working.

Th ere’s talk from the fed of ramping up EI to

deal with the economic turmoil. As this edition goes

to press before the federal budget comes out, it’s a

crapshoot to fi gure out what will come of it. But with

more people nation-wide out of work, it’s unlikely

that benefi ts will go up substantially in value.

While EI covers a certain percentage of a person’s

insured income, it also maxes out at a certain amount

per week. For someone used to bringing in big bucks,

the EI check is a shadow of a real paycheck.

Th ose who have worked in the fi eld for a while

and know there are ups and downs will be ready.

Th ose who jumped in for quick money and spent

it just as fast will be selling off the toys they can no

longer aff ord.

Th at’s the nature of the business. It has happened

before, and will happen again.

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

Email to: [email protected]

OpinionPIPELINE NEWS February 2009 A5

Geoff Lee

Lee Side of Lloyd

Brian Zinchuk

From the top of

the pile

Since I began to report on the oil and gas sector

in the Estevan area last summer and more recently

in Lloydminster, one of the most common terms or

themes that arises is enhanced oil recovery.

In the Bakken light oil play, horizontal drilling,

multi-stage fracturing and waterfl oods are among

the most practiced enhanced oil recovery techniques.

In the Weyburn area, CO2 fl ooding is being used to

bring new life and oil to old wells with great results.

In the heavy oilsands of Alberta and Saskatch-

ewan, THAI technology is being used to increase

recovery rates of in-situ bitumen. THAI is an evo-

lutionary process for in-situ combustion which com-

bines a horizontal production well with a vertical air

injection well placed at the toe. THIA has the po-

tential to recover 70-80 percent of bitumen-in-place,

versus 20-50 percent from current in-situ technolo-

gies including steam.

To recover more heavy oil in Saskatchewan, sand

production is being used in vertical wells and experi-

ments are under way to recover oil in horizontal wells

with controlled sand production.

All of these enhanced oil recovery techniques re-

mind me of the Kellogg’s Corn Flakes slogan “Taste

them again for the fi rst time.” For the oil industry,

these new and emerging oil recovery processes and

technology, is like being able to rediscover their pro-

ducing wells all over again and again. It’s the eternal

fountain of oil to keep the industry fl ush with re-

sources and cash.

Although oil and gas prices have hit unexpected

lows lately, the future of the industry looks promising

as new enhanced oil recover technologies will come

into play, driving well-paid research and development

jobs in western Canada along with local economies.

Many of the new technologies and processes

tested in western Canada have provided Canadian

oil and gas companies with the ability to diversify

globally and export Canadian technology and exper-

tise to oil and gas fi elds around the world.

New enhanced oil recovery processes are cur-

rently being tested in the Saskatchewan oilsands that

have only begun to be explored and developed.

While most of today’s oil and gas news is nega-

tive about prices or layoff s, reports of enhanced oil

recovery technologies and approaches are akin to

sowing the seeds for a sustainable harvest of oil for

years to come. Th at’s good news, not just for oil and

gas companies, but for construction and retail sec-

tors.

Th e nice thing about revisiting existing wells to

recover more oil is that it saves companies a lot of

time and money by not having to explore for new

areas to drill. In addition, many of the techniques in

use or being developed are environmentally friendly,

which helps the industry create a positive public rela-

tions image. Being environmentally friendly is prov-

ing to be benefi cial to the bottom line as a green con-

sciousness takes hold with consumers and industry

critics.

New enhanced oil recovery techniques are also

helping to slow the depletion rate of oil which should

lead to lower infl ation and some middle ground in oil

and gas pricing to avoid unstable price hikes that we

saw last summer.

Enhanced oil recovery will also help to boost the

stock price of publicly traded companies and restart

investment. “Recover it again for the fi rst time” could

the new slogan for oil and gas producers.

Th e announcements coming out of Motor City

at the start of the Detroit Auto Show on Jan. 11

showed a large shift in the automotive world – one

that has the same implication of the shift from coal

to diesel in ships and on rail. But in a twist of irony,

we will have gone from solid coal to liquid fuel and

back to coal again in roughly one century.

Mid-January was a – fl utter with announce-

ments about electric vehicles. Ford and Canadian

auto-parts manufacturer Magna entered a strategic

alliance to build electric vehicles.

Honda announced production of its latest ver-

sion of the Insight. Toyota is updating the Prius.

Chrysler’s talking electric. GM is betting the farm

on the EV. Between all the automakers, there’s go-

ing to be a bevy of hybrids and electrically powered

vehicles coming out in the next few years.

Th ere’s one problem, though: batteries. Like the

TV commercial a few years ago of the toy jumping

crying out “More batteries!” as it gobbled them up,

all these electric vehicles are going to need batter-

ies in quantity and quality the likes of which the

world has never seen.

“We're really looking for a breakthrough in

battery technology,” the Globe and Mail quoted

Barb Samarzdich, Ford's vice-president of power-

train engineering, as saying.

Th at may be the understatement of the year.

Battery technology has progressed at an amaz-

ing rate over the last 15 years. When I got my fi rst

cell phone, its nickel-cadmium battery when t

along way to defi ning it as a “brick phone.” If you

were lucky, you got 30 minutes out if it before you

had to makes use of the forgotten skill of swapping

battery in mid-conversation. My current phone’s

battery is about the size and weight of four toonies,

and lasts for days.

Such advances, however, have not been totally

analogous to electric vehicles. A car needs a lot

more oomph than a cell phone. Th at means orders

of magnitude more raw materials needed to create

the batteries for just one car, never mind millions

each year.

Even so, most of these new vehicle announce-

ments are hybrids. It’s of necessity, because we

simply can’t make batteries that can allow a vehicle

to perform the way a liquid-based fuel currently

can. Th ey are now like the brick phones – limited

capacity, limited utility.

Th e world of electronics has gone wireless.

Cars have always been so. Th ey will work pretty

much anywhere. It’s tying them up that is going to

cause the headaches.

Th e electrical grid and our capacity to produce

electricity are going to need mammoth upgrades to

adapt from a liquid fossil-fuel based transportation

system to a plug-in model. We’re talking pylons

and wires and power plants, and lots of them, to

support plug-in cars.

Most cars will be plugged in during the night,

when there is lower demand. Th is may allow the

existing grid to handle some of the electrical con-

version, but not all of it.

Wind power expansion will help, and in some

ways is the quickest way to expand. Th e complexity

of construction and lead time to build a wind farm

is but a fraction of a nuclear plant, damn, or new

coal mine and its correlating power plant.

Here’s where our circle is complete. Wind,

hydro, and nuclear power will all play a part. In-

evitably, the world will turn back to coal. It still

provides a large portion of the baseload power gen-

eration for much of the world. For a large portion

of the world, their plug-in cars will be powered by

coal.

However, it’s going to a long, long time for

all this to come about. In the mean time, we will

be putting gas in our tanks for quite some time to

come.

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

Enhanced oil recovery a boon

Electric cars still rely on fossil fuels

Your car might end up being electric, but you’re still driving on coal.

Photo by Brian Zinchuk


Page A2“Th e market expects us to have

acquisitions as part of our business

base,” said Verge. “We’ve have a track

record of being reasonably good at it

and generating a positive return.”

Verge says the latest acquisitions

were “reasonably priced. We’re back to

2004 levels,” he said. “We are getting

to a point in this basin (western sedi-

mentary) where it’s cheaper to acquire

properties than drill them yourself.

“Everything we are delaying today,

we feel we will be able to do cheaper

either at the end of this year or the be-

ginning of next year.”

“Basically between now and June

we will create ourselves the fi nancial

fl exibility to do another acquisition of

this type or use our balance sheet to

acquire something even larger.

“We will also have the ability to

step on the gas when it come to the

exploration and development pro-

gram and drill more or less 90 to 100

wells between June and the end of the

year.”

With volatile commodity prices

and uncertain economic conditions,

Verge says the predominant mood in

Calgary is tenuous.

“We’ve seen a number of people

lose money on their stock options so

that’s taking way people’s desire,” he

said.

“On the street, we are hearing that

some larger fi rms in Calgary are going

to dramatically cut back their capital

budget but they are cutting staff along

with the capital budget.

“We are not planning on cutting

any staff . In fact, we’re saying it’s busi-

ness as usual. It’s just like last year. You

need to be able to drill these wells and

hit the ground running in June. We

keep bringing this to our exploration

meetings because we want to be ready

to go hard in June.

“We’re going to have the opportu-

nity to inventory and we will have the

wells licenses and ready to go. When

we drill them will depend on com-

modity prices and the environment

for acquisitions.”

NuVista adopts an acquire and drill later strategy

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FAX: 443-2453BOX 160, ALIDA, SASK. S0C 0B0www.threestarenvironmental.com

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* Environmental Protection Plans * Impact Assessments * Pre-Site Assessments * Environmental Audits & Assessments

* Well Site & Battery Abandonments * Drilling Waste Management * Pre/Post Water Well Testing * EM Surveying * GPS Mapping

Nordic is looking for oil instead

This photo, found on Nordic Oil and Gas’ website, are of oil seeps they have found in the Preeceville area.

Page A3

During the summer

of 2008, they did two ex-

ploration test wells, but

neither proved commer-

cially productive. Th ey

did, however, discover

additional oil. “We knew

it was there,” Bain says.

Th e fi rst well had to

be abandoned due to a

lost bit. Th e second was

not productive.

“Since then, we’ve

been mulling our op-

tions,” he says. In late

2008, they enlisted a seis-

mic company to shoot

3-D seismic over 4.5

square kilometres. It was

happening “as we speak,”

he noted, when inter-

viewed in mid-January.

Th e work was done

within a half-hour’s drive

of Preeceville.

“Once we start drill-

ing again, you never know

what you will fi nd. It’s a

very active and busy area

– a fair bit of exploration,

lots of opportunity.”


DUSTIN DUNCAN, MLAWeyburn - Big Muddy

35-5th Street NE, Weyburn, SK S4H [email protected]

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(Toll Free) 1-877-842-4810www.dduncan.ca

Sponsored by…

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Office located at Prairie Agencies Ltd. 33 Fifth Street NE, Weyburn, SK

■ Golf Tournament ■ Exhibits■ Socializing ■ Barbecue ■ Hospitality■ Keynote Industry Speaker: John Gormley,

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June 3 & 4, 2009Set-up and golf tournament—June 2, 2009

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By Patricia Ward, Weyburn Review

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Locked and loaded for the Weyburn oilpatch

Crocodile Dundee said, “That’s not a knife.

THAT’S a knife.” Well, Andrew Shanaida of Chip 9 Machining took that concept to assault ri es, and hung one up

as a sign in Weyburn. See story and more photos on Pages A8&9.



Visit us at #1-502 6th Street

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• 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

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MIDALE 306•458• 2811

midale@totaloil eld.ca

By Brian ZinchukWeyburn – You want

to be sure to get some-

one’s attention? Point a

gun in their face.

Well, maybe don’t do

that.

But you get the point.

Guns get noticed.

As such, there’s now

a giant, to-scale, 14-foot,

6-inch long CAR-15 Colt

Commando, a derivative

of a Vietnam-era M-16

taking aim at the sky in

front of Chip 9 Machin-

ing, a Weyburn machine

shop along Highway 39.

Andrew Shanaida

and his wife Alison took

over the shop fi ve years

ago. “When we took it

over in 2004, the previous

owner for 16 years was

winding things down. It

took a bit of work to re-

build the clientele.

“Advertising, we

found, to be our most

valuable tool.”

Shanaida is a jour-

neyman machinist. Orig-

inally from Weyburn, he

started his training in

Saskatchewan, but com-

pleted it at NAIT. Th at

was a benefi t, because his

qualifi cations are now in-

ternationally recognized.

Saskatchewan’s train-

ing pushes you to be a

machinist/welder, while

in Alberta, Shanaida says

you have to be a machin-

ist/millwright.

“A machinist is the

guy who builds it. Th e

millwright puts it to-

gether.”

Th e shop employs

another journeyman, and

an apprentice.

Alison Shanaida does

the books.

Page A9

Andrew Shanaida shows off some of wares the new four-axis CNC ma-chines at Chip 9 Machining are capable of.


Gunsmithing and machining:


CUSTOM BUILT WELLSITE ACCOMMODATIONS

Wheeled UnitsWheeled UnitsSkid UnitsSkid UnitsService Rig DoghousesService Rig Doghouses

(306) 861-5655(306) 861-5655www.dembytrailer.comwww.dembytrailer.com

WE CARRY SIZES FOR THE BIG AND TALL

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1210 4TH STESTEVAN634-8232

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112 2ND ST.WEYBURN842-3006

RON'SRON'SThe Work Wear Store Ltd.The Work Wear Store Ltd.

Check out our large selection of Oil eld Products:

FR Coveralls, Bib Overalls, Shirts & Pants

CSA Work Boots from KODIAK, JB Goodhue, CAT

Hard Hats, Replacement Suspensions and Accessories

Safety glasses, Rubber gloves, Work gloves

and so much more!

DuPont™NOMEX

Page A8“Our meat and po-

tatoes is oilfi eld,” he say,

with a niche in service

and repair on conven-

tional pumpjacks. “One of

our biggest clients is En-

Cana,” for whom they do

some R & D work.

“We’ve got a pump-

jack saddle component

we’ve redesigned as a

retrofi t for these older

pumpjacks out there.

“Because the patch is

moving and growing so

much in this area, Estevan

used to be central. As the

patch moves north, we’re

trying to make it known

we’re here to do the repair

work,” he says, speaking of

their Weyburn location.

In taking over the

shop, a lot of equipment

went out the door, pronto.

“I had to drag this shop’s

ass into the 20th century,”

he says. Th ey got rid of a

lot of worn out equipment

in the second year. “We’ve

been constantly upgrad-

ing our equipment.”

A big part of that was

the addition in the last

year of not one, but two

four-axis CNC machines.

“Th is last summer, just

by the hair [of our teeth],

with the Canadian dollar

being at par, we bought

two CNC machines. We

made a move.”

Big gunsWalking into Chip

9 is not your typical ma-

chine-shop experience.

You see, machining and

gunsmithing make a good

combination, and Shanai-

da does both. In an era of

gun control where most

gun shops have closed

and you can’t even buy a

.22 at Canadian Tire any-

more, he opened a gun

shop. Guns have been

part of the business since

day one. Th ere are pistols

under glass, holographic

sights, and a rack hung

with various body armor

vests.

Who buys the bullet-

proof vests?

“Paintballers,” he

says. Th ere’s no actual ar-

mour plating, but it stops

paintballs from hurting so

much.

As for the big gun

outside, he says. “I had

an idea in my mind. We

wanted something that

would get people’s atten-

tion. When travelling,

you’re always looking for

landmarks. We didn’t

want to go with just a

regular hunting rifl e.

What determined the

size was some electrical

insulation boxes he found

as scrap. It’s been scaled

up remarkably closely to

the real thing, but no, it is

not functional.

Th e coating shop in

the back is applicable to

several applications, not

just gunsmithing. Th e

bluing and Parkerizing

capabilities are handy.

Th e Shanaida fam-

ily moved back to Wey-

burn after becoming

dissatisfi ed with the Al-

berta experience. “We

spent about eight years

in Alberta, spinning our

wheels. Th e money was

there, but there’s always

someone to take it from

you. We weren’t getting

anywhere.”

He considered going

to school for mechani-

cal engineering at the

University of Alberta,

but they wanted to move

back to be closer to their

parents.

Another option was

a job at the RCMP F-

Division in Regina, do-

ing repair work at their

armoury. However, they

couldn’t nail down a start

date for him.

“In the mean time,

this shop was for sale, and

I though, ‘Let’s give it a

go.”

Th e gunsmithing has

led to the shop’s certifi ca-

tion as a military contrac-

tor, an association with

the Canadian Association

of Defence and Security

Industries (CADSI) It

qualifi es Chip 9 Machin-

ing to sell to police depart-

ments and corrections.

This tool, a design of Chip 9 Machining, incor-porates the gunsmithing and oil patch machin-ing sides of the business. It uses a daytime green laser to align shivs, combined with a block insert and a carpenter’s square.


smokin’ patch combination


By Brian ZinchukRegina – Last year

was a banner year for

drilling in Saskatchewan,

posting the second high-

est number on record for

wells drilled.

According to Sas-

katchewan Energy and

Resources, the total came

in at 4045 oil and gas

wells, up 17 per cent from

2007. It should come

as no surprise, with the

number of active drill-

ing rigs in Saskatchewan

hovering around 80 to100

for much of the latter half

of 2008. September saw

that number spike at over

100.

In comparison, 2007

was the tenth best year on

record, with 3451 wells

drilled.

“Th ese drilling num-

bers are the latest indica-

tor of the robust perfor-

mance of our oil and gas

industry,” Energy and

Resources Minister Bill

Boyd said. “Combine

them with the record

revenues we received last

year from the sale of pe-

troleum and natural gas

rights, and it’s obvious

that the industry has tre-

mendous confi dence in

Saskatchewan as both a

dynamic oil jurisdiction

and an excellent place in

which to do business.”

Of the well drilling

total, 2,824 were oil wells,

a 23 per cent increase over

2007’s fi gure, and 1,221

were gas wells, a 5.6 per

cent increase over 2007’s

number.

Th e highest drill-

ing count was in the

Weyburn-Estevan area,

where 1,398 wells were

drilled, largely refl ecting

the continuing interest

in the Bakken play. Th e

Kindersley area was next

with 1,006 wells drilled,

followed by the Lloyd-

minster area with 865

wells and the Swift Cur-

rent area with 776 wells

drilled.

One-third of the total

wells drilled in 2008 were

horizontal. Boyd noted as

recently as 20 years ago,

horizontal drilling tech-

nology was experimental,

but that horizontal wells

now account for roughly

45 per cent of Saskatche-

wan’s total oil production.

Th e year saw prices all

over the map, with WTI

oil starting 2008 at $99.62,

peaking at $147.27 in

July and plummeting to

$33.87 by Dec. 19.

Th is is the time of

year when the provincial

Ministry of Finance wants

to know what numbers it

should plug into the up-

coming budget. Th at’s go-

ing to be a tough one for

Energy and Resources to

come up with.

“I have seen forecasts

from ‘experts’ from $20

to triple digits,” says Roy

Schneider, of Energy and

Resources. “It’s kind of a

take-your-pick thing.”

So what does Energy

and Resources tell Fi-

nance when they ask?

Th at number is a

closely guarded secret

until the budget comes

out. “We will be expect to

tell them something very

soon. It will be tough to

come up with a number,”

he notes.

One forecast had

suggested Saskatchewan

would see a 9 per cent rise

in drilling this year. Th at

forecast is since being re-

vised, he says, noting it’s

out the window.

Schneider notes,

“We’ve had some good

drilling years in the past

with prices at the current

level. In 2003, the price

was just $31.99 for a year-

round average.

Th at was Saskatch-

ewan’s best drilling year

on record.

“We are still cau-

tiously optimistic this

can be a positive year in

the oilpatch,” Schneider

notes, pointing out that

with recent changes to

Alberta’s royalty structure,

Saskatchewan has become

more competitive.

2008 banner year for Sask drilling

2008 was the second best year on record for oil and gas wells drilled in Saskatchewan.


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ESTEVAN306-634-9900

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EMAIL: [email protected]

ALIDA306-443-2281


- A locally owned & operated company where their employees make their business successful!

Rig #12,500 Metre Double

Rig #22,800 Metre Double

Rig #33,500 Metre

Telescopic Double

Thanks to Dave Oldhaver, Kevin Skjerdal & all the crews Thanks to Dave Oldhaver, Kevin Skjerdal & all the crews who have continued to work hard on Rig #1 & Rig #2.who have continued to work hard on Rig #1 & Rig #2.

Red Dog Drilling would like to thank all the fabricators, Red Dog Drilling would like to thank all the fabricators, suppliers and contractors that helped in the building of suppliers and contractors that helped in the building of

Red Dog Rig #3.Red Dog Rig #3.

Thanks to Brad Gall and Tyron Tangedal for their assistance Thanks to Brad Gall and Tyron Tangedal for their assistance & hardwork in the building & design of Rig #3. & hardwork in the building & design of Rig #3.

Thanks as well to all the crews that helped put it together.Thanks as well to all the crews that helped put it together.

Photo Courtesy Brian ZinchukPhoto Courtesy Brian Zinchuk

308 C Superior Ave. Box 1085 Estevan, SK S4A 2H7

Wayne ZandeePresident

Tel: (306) 634-8311Fax: (306) 634-8360Cell: (306) 421-1465

Email: [email protected]

Red Dog Drilling on Rig #3Red Dog Drilling on Rig #3

342 5th Street, Estevan - Phone: 634-3601

Congratulations

McCOMB AUTO SUPPLY LTD.

Congratulations Red Dog Drilling Inc.Red Dog Drilling Inc.on the Completion of

Congratulat

ions Congratulations Rig #3Rig #3

The rst trip up the derrick is a two-hook affair to retrieve the fall arrestor cable. This is the trip down, after having pounded a few frozen pins into locking position.

A12 PIPELINE NEWS February 2009

CongratulationsCongratulations

Th anks for the opportunityTh anks for the opportunity to be involved! to be involved!

Red Dog Red Dog DrillingDrilling Rig #3Rig #3

Rig-specpec

Welding & FabricationWelding & Fabrication9203 - 35 Avenue, Edmonton, Alberta9203 - 35 Avenue, Edmonton, AlbertaPh: (780) 485-6885Ph: (780) 485-6885

Story and photos by Brian Zinchuk

Estevan – For most

products, big and small,

you go to the store or

dealer, and pick it off the

shelf or buy it off the lot.

You need a hair dryer, you

might go to the depart-

ment store. A pickup?

Head over to the local

dealer and take one for a

spin. A dozer? You might

have to pre-order it, but

it’s likely to be quite liter-

ally run-of the-mill.

Not so for drilling

rigs. While it is possible

to go to a company and

order a standard model,

it’s also pretty common to

build it yourself.

Red Dog Drilling

Inc. of Estevan is fi nish-

ing off Rig No. 3. Once

again the rig will be

launched in February. As

the number indicates, it’s

the third rig they’ve built.

Th e fi rst Rig was started

in November, 2004, and

drilled its fi rst hole in

February, 2005. Rig No. 2

drilled for the fi rst time in

February, 2007, and Rig

No. 3 will be ready to drill

its fi rst hole in February,

2009 – all two years apart.

“ It was not planned that

way,” says Wayne Zandee,

president of Red Dog.

“But is kind of neat all

the same.”

Rigging in His BloodZandee was born

with “rigging blood.” His

father, Al Zandee, along

with several uncles, all

have a history in the oil-

patch. His father worked

on rigs from 1959 to

1977. He worked as a rig

manager for General Pe-

troleums starting in 1972.

Wayne himself

worked rigs for several

years, as well as was a fi eld

superintendent before he

started Red Dog Drilling

Inc. in 2004. Looking at

a historical photo in last

month’s Pipeline News, Zandee thinks he recog-

nizes the derrick, just by

its shape. “I think I worked

on that derrick. Th at was

the fi rst rig I worked on

Simmons Drilling No. 2,

he says.” Th at was back in

1979. Th e only thing orig-

inal would be the derrick,

now, he says. “If it’s kept

in good shape and looked

after for many years, you

can use it for a long time,”

he says.

Telescopic Double“Rig No. 3 is a 3500

metre telescopic double,”

Zandee says. It’s the

company’s fi rst telescopic

unit. Such a design means

one less load when doing

a rig move, as the derrick

and drawworks all go on

one load. You don’t need

a separate truck for the

derrick.

Page A13

Not buying off the lot:

Drawworks incorporates innovative

mounting of rotary clutch

Rigworks Oil-

fi eld Solutions out of

Leduc, Alberta, built

Rig No. 3’s drawworks

– Model RWD 700T.

Dan Flaherty of

Rigworks Solutions

has been in Estevan

for the last couple of

weeks to help com-

mission the new

drawworks and to in-

stall the drilling con-

trol panel and brake

linkage on Rig No. 3.

“Drawworks design

has changed quite a

bit from the 1950s,

early 80s,” notes Fla-

herty. He notes that

space is a challenge

on telescopic double

drilling rigs. Rig No.

3 drawworks incor-

porates an innovative

rotary shaft design for

the gear box. Th e ad-

vantages are improved

safety and service-

ability. A conven-

tional gear box design

for the rotary shaft

would be rotating at

all times. With the

Rigworks design, the

rotary shaft is only ro-

tating while drilling.

Tyrone Tangedal, left, and Dean Deroo assemble plumbing in the pump shack of Red Dog Drilling’s Rig No. 3


CongratulationsCongratulations Red Dog Drilling Red Dog Drilling

on the on the launch of launch of rig #3!rig #3!

621 5th Street621 5th Street634.SIGN634.SIGN30

6.30

6.

CongratulationsCongratulationsRed Dog Drilling on Red Dog Drilling on the completion of the completion of

Rig #3.Rig #3.

Call #5 KRJ Industrial Park: 421-9576 or 421-2244Call #5 KRJ Industrial Park: 421-9576 or 421-2244

CongratulationsCongratulationsRed Dog DrillingRed Dog Drilling

on Rig #3on Rig #3

Specializing in Rig Mats

Canadian Owned and Operated

www.lougheedwelding.com405 - 18th Ave • Nisku, AB T9E 7T5

BUS: 780-9555-3700 • FAX: 780-955-4724

Training Opportunities

Estevan Safety Training Courses(Rural locations speci ed)

CPR/1st Aid - Feb. 18-19; 21-22, Mar. 2-3; 16-17; 21-22, Carnduff - Feb. 10-11, Carlyle - Feb. 16-17, Mar. 30-31, Oxbow - Mar. 23-24Con ned Space - Feb. 5; 20, Carlyle - Feb. 25; Mar. 18, Oxbow - Mar. 25H2S Alive - Feb. 4; 17; Mar. 11; 24; 28, Carnduff - Feb. 12, Carlyle - Feb.19, Brandon - Feb. 19, Oxbow - Mar. 26CPR/1st Aid Refresher - Feb.12, Mar. 11TDG/WHMIS - Feb. 5, Mar. 10Detection & Control - Feb. 13Ground Disturbance - Mar. 20, Carlyle - Feb. 20, Oxbow - Mar. 27Ground Disturbance Train the Trainer - Mar. 4-5OH&S/WHMIS - Feb. 16, Carlyle - Feb. 18Special Provisional Engineer - Mar. 23-26

Early Safety Training Week in Estevan & Carlyle - Feb. 16-21. Students ages 16-21 may apply an Early Safety Training Bursary

Oxbow Safety Training Week - Mar. 23-27 - take all four classes & save $100

Carlyle Safety Training Week - Mar. 30-April 3 - take all four classes & save $100

SEESS (Southeast Environmental Safety Seminar) - Mar. 18 in Weyburn

Incident Command System (Enform) - Mar. 9The Petroleum Industry in Canada (Enform) - Mar. 31 - Apr. 1Supervision, Team Leadership & Motivation (Enform) - Apr. 6Safety Inspection Skills (Enform) - Apr. 14-15Safety Training for Jobsite (Enform) - Apr. 16-17

Register toll free 1-866-999-7372Call us if you need a class set up just for you - we deliver

safety training on our site or yours.We also offer 1A Truck Driving - call 637-4921 for info.Check out our website at www.southeastcollege.org

Congratulations Red Dog Drilling

on the completion of Rig #3!

Proud to be of service!

Red Dog Drilling assembles Rig No. 3

Page A12“We wanted it to be

quick moving,” Zandee

says, noting it was a pri-

mary design priority.

Rig No. 3, while

similar to other telescop-

ic doubles in the Indus-

try, has its own design in

some ways.

“Th ere are compa-

nies that will build you

a complete rig,” explains

Wayne Zandee, presi-

dent of Red Dog Drill-

ing. “You’ll get what you

get. It may not always be

what you want.”

“I preferred my own

guys put their ideas

into the design of the

rig. Th ere are no better

people to get input from

than the guys who work

the iron everyday. Th ey

have a sense of owner-

ship and pride in a rig

when they help design

it,” he explains. Th at in-

cluded a lot of sitting

down and sharing of

ideas. Some of it came to

plumbing decisions, how

you rig up your plumb-

ing. Th ought went into

making quicker to rig up

and roughneck and drill-

er friendly. Last but not

least, safety was a crucial

factor when it came to all

design work.

However, it’s impor-

tant in building your rig

that you don’t create a

one-off that is too diff er-

ent from the norm. “You

don’t want to stray too far,

or you could be building

a pink elephant – nobody

wants it.”

Components came

from several suppliers in

the Edmonton region.

“We went to a few dif-

ferent companies. Th e

drawworks came from

Rig Works of Leduc.”

Th e buildings came from

Rig-Spec in Edmonton.

Major components, in-

cluding the sub structure,

derrick and drawworks

carrier came from Hy-

duke Drilling Solutions

of Nisku, and the electri-

cal from Mustang Con-

trols and the plumbing

from Wil-Tech Indus-

tries in Estevan.

Page A14

The pieces are coming into place, with the substructure, bottom left, pump shack, right, and derrick, top right, on location by Nov. 27, 2008.


Page A13Roughneck friendly and Safe

“It’s an important factor

for someone who’s been around

rigs for a long time.” Zandee

says. Constantly in their minds

was the concept of making the

Rig No. 3 ‘roughneck friendly’

and ‘safe’. Th at meant more us-

able room in the pumphouse,

for instance. Th ey put all of the

plumbing overhead “so you don’t

have to step over lines.”

“Our electrical on this rig is

much simpler to rig up.”

”Th e hydraulic catwalk is

defi nitely a plus”, he notes. Th is

rig will be equipped with a wire-

less remote controlled hydraulic

catwalk. Th is is a huge safety

feature for the hands – it elimi-

nates the need for workers to be

on the catwalk while tubulars are

being lowered and raised to the

rig fl oor.

Rig No. 3 incorporated

many of the trademarks of Mus-

tang Controls out of Devon,

Alberta for just that reason - be-

cause they are rig user-friendly

and safe. Pat Christopher, Fore-

man for Mustang Controls, has

been camping out in Estevan for

the last three weeks completing

the electrical on Rig No. 3. A

Mustang trademark is a driller’s

console that is mounted on the

rig fl oor – enabling the driller

to perform all of his duties from

one position on the Rig fl oor.

Th is increases safety and pro-

ductivity. Mustang Controls is

also the promoter and designer

of the mounting of transform-

ers in each building using higher

voltages and decreased cord sizes

– roughneck friendly again.

Mustang Controls also in-

stalled their Crown Alert Sys-

tem on Rig No. 3 – a system

designed to reduce the risk of

crown strikes by the traveling

block. Crown Alert is a reliable,

economical approach to derrick

safety, according to Red Dog.

Assembly“September was when we

really got into it,” says Brad Gall,

whose been working on the rig

steady from then until the Janu-

ary day when the derrick fi nally

fully extended. “Four months

– that’s pretty good.” Gall says,

noting it can take a lot longer

than that. Page A15

Roughneck friendly & safe

Hyduke Energy Services Inc. is pleased to join you in congratulating Wayne Zandee and his team at RED DOG DRILLING INC. on the addition of their third drilling rig. Hyduke is committed to supporting

RED DOG DRILLING’S success as they grow in the future.

Hyduke Energy Services Inc. has over 30 years experience in the drilling equipment and supply industry. Our manufacturing facilities are API 4F and ISO certi ed, our business model supports being a Single Source Supplier to our customers. We are proud to have served RED DOG DRILLING INC. in the fabrication of the mast, substructure and mud pump building for RED DOG, Rig 3.

Congratulations on the purchase of the RS-F1000 mud pump, sold and serviced by Hyduke.

Recently added service - Industrial Paint & Sandblasting!

Above: Subtrades have been in and out of the assembly site, with this welder on loca-tion in late November.

Right: Outlaw Oil eld Hauling delivers the drawworks, which went straight into the shop at Wil-Tech Industries.

A15PIPELINE NEWS February 2009

Brendon Abernethy, of Wil-Tech Industries, works on a control panel for Red Dog Drilling Rig #3.

Tangedal & Gall instrumental

Page A14

Red Dog Rig No. 2,

built locally in Saskatch-

ewan, took longer only

because we were in a big

supply crunch at that

time, Zandee says.

“Th e pumphouse

on Rig #3 was basically

put together by Tyron

Tangedal,” Zandee says.

Tangedal, having worked

rigs for 11 years prior, 6

years as a driller, started

with Red Dog in March

of 2005 as a derrickhand

and is now the rig man-

ager for Rig No. 3.

Brad Gall is project

supervisor/fi eld superin-

tendant for Red Dog. His

prior experience includes

working as a rig manager

with Big Sky and Lakota.

Th is was his fi rst rig build

from the ground up, but

the fourth or fi fth rig

build that Gall has been

involved with. Th e pair

did a large portion of the

custom work and design

on the rig, combined with

Zandee’s input.

Gall’s work included

planning and coordina-

tion of services, including

electricians and pipefi t-

ters in Alberta. Tangedal

lived on site in the rig

manager’s shack. Satur-

days and Sundays were

all part of the job of put-

ting this new rig together.

Gall spent the better part

of two and a half months

in Edmonton, working

on the project.

Th e rig manager’s

shack was one of the fi rst

arrivals, followed by the

substructure. Eventu-

ally the drawworks and

derrick would fi nd their

place, too.

Th e company’s site,

on the east side of Este-

van, has seen all sorts of

subtrades coming and go-

ing, installing instrumen-

tation, welding, and the

like. Some of the work

has been done right next

door, at Wil-Tech.

Crews, consisting

of driller Brad Lamon-

tage, derrickhands Les

Oldhaver and Jay Mar-

tel; motorhands Dean

DeRoo, Dillon Krupka,

Joel Chicoine and Jeremy

Anderson worked hard in

the yard rigging up the

rig, once it all arrived.

A very well-known

oil fi eld dog named Lin-

coln – has been seen

around the site, the pet

of a local welder, Zane

Olson whose also been

working on the project.

Page A16

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Congratulations Red Dog Drilling!

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crown saver. SenchukSenchukFord Sales Ltd.Ford Sales Ltd.

118 Souris Ave. N. Estevan • 634-3696


on the

Completion of Rig #3

CCongratulationsongratulationsRED DOG DRILLINGRED DOG DRILLINGon the completion of on the completion of

RIG #3RIG #3

Complete Hydraulic System was supplied and installed by WIL-TECH INDUSTRIES.

Serving the Oil Industry for 17 years.

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634-6743(24 Hour Service)

A cable is threaded into a shiv on Jan. 20.


CongratulatesRed Dog Drilling

on the completion of Rig #3

RIGWORKS specializes in manufacturing complete

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also complete Mud Pump Packages.

3904 - 84 AVE.LEDUC, ALBERTA

Phone: 780-980-0449Fax: 780-980-0454www.rigworks.ca

Red Dog Rig No. 3 is fully extended for the rst time on Jan. 20The crew who has assembled Red Dog Drilling’s Rig No. 3 includes, back row from left: Jay Martel, Les Oldhaver, Tyrone Tangedal, Brad Gall and Dean Deroo. On the stairs are Crystal and Wayne Zandee, who head up the operation.

CongratulationsRed Dog Drilling

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634-3009 Estevan

DENNIS TROBERTDENNIS TROBERTOwner - 421-3807

Norm MeyersNorm MeyersSales - 421-8640Les McLenehanLes McLenehan

Dispatcher/Sales - 421-8810

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General Oil eld HaulingGeneral Oil eld Hauling

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Congratulations On The Congratulations On The Completion of Rig #3.Completion of Rig #3.


Rig manager Tyrone Tangedal, left, and eld superintendent/project supervi-sor Brad Gall were an important part of designing and building the new rig for Red Dog Drilling.

This dog has been everywhere in the Estevan oilpatch. His name is Lincoln, and he belongs to welder Zane Olson. What are the odds a welder would name his dog “Lincoln?”



on the launch of Rig #3Continuing your commitment to the

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Completion of Rig #3Completion of Rig #3

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Congratulations

Red Dog Drilling on the

Completion of Rig #3

Proud To Supply Your Oil eld Needs.

From everyone at

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An Association ofProfessional Accountants

1123 - 4th St., EstevanPh: 306-634-7331

Proud to Provide Our ServicesCongratulations to

on the Completion of Rig #3 Proud Supplier ofRed Dog Drilling

634-3561 Estevan

CONGRATULATIONSFROM VARSTEEL LTD.

Families paramount: not just numbers Page A17

On January 20th,, the

day the derrick fully ex-

tended for the fi rst time,

Gall could be seen stop-

ping his truck, taking a

picture as the sun cast

its setting hues on the

derrick, before heading

off to a much-deserved

few days off .

Price tagZandee won’t say

what the fi nal cost is,

but notes that prices

can be all over the map.

For a typical double,

you can expect to spend

upwards to $8 million.

By doing their own

build, they save money.

“It’s more cost eff ective

to do it this way”.

Finding work and Staffing

Expanding the

small drilling compa-

ny’s fl eet by one more

unit, from two to three,

is a big move, especially

at a time when the in-

dustry is slowing down

due to the drop in oil

prices. “It is an issue.

Th ere’s less work out

there now. You have to

be very strategic to keep

all your rigs working. It

will be the reputation

of Red Dog Staff , Rig

Managers and work-

ers on Rig 1 and Rig 2,

that will sell Rig 3.”

Caroline Zandee,

runs the admin side of

the company. She notes

how important it is to

keep families working.

“Our guys are important

to us - Th ey’re not just a

number,” she stresses.

“We know all of our

men. Th ey are our most

important asset.”

“Caroline notes that

‘hands stay with good

leaders and we have

good leaders – Kevin

Skjerdal, Dave Oldhav-

er and Tyron Tangedal,

the rig managers for

Rig No 1 and No. 2 and

No. 3.”

“Being local helps

in getting the best men

for the job,” Wayne says.

“Th e good local hands

will want to stay with

local contractors.”

“When an operator

goes looking for a rig,

that’s what they look at

– track record and repu-

tation. We have had op-

erators that have called

for specifi c rigs because

of their reputation.”

Th e company will

have 66 staff at full

strength, with three rigs

running.

“We have chosen to

work three – eight hour

shifts in a 24 hour pe-

riod. Th is rotation, as

opposed to two 12 hour

shifts seems to work the

best as we get the maxi-

mum performance out

of our employees. Most

of our employees are lo-

cal and are able to drive

back home and still be

able to spend time with

their families, which is

important to them.

However, they may

run the third rig by

using swing crews for

the other two, reduc-

ing the number of new

hands needed. If there’s

work for all three rigs, it

would mean not much

time off until spring

breakup.

People are coming

in regularly now, seek-

ing work. It seems the

days of extreme labour

shortage may be end-

ing. “We’ve had a lot of

people apply,” Caroline

says. A few minutes lat-

er, a younger man came

in, resume in hand,

looking for work.


18 Hwy. 39 East, EstevanPhone: 634-3412

Congratulations Congratulations Red Dog Drilling Red Dog Drilling

Rig #3!Rig #3!

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Congratulations to Red Dog Drilling on Completing Rig #3!

CONGRATULATIONSto Wayne and his staff on the

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Hats off to Wayne for staying in Saskatchewan and starting his

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All brine in 09’New tanks are installed on Jan. 12 at Arcola’s Bakken Salt Water Disposal. Eagle Oil eld Services of Arcola did the lifting, while McGillicky Oil eld Construction of Estevan did the hook-ups.



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Heavy Duty Heavy Duty Truck TiresTruck Tires

By Brian ZinchukEstevan – “Th ere’s the reason right there,” Ken Sholter says, pointing to an

empty elevator shaft in early January. By not having a functioning elevator in

place, it’s been one more thing to hold back the hotel that is coming to comple-

tion long after the initial plan.

Operating under the Motel 6 fl ag, the hotel should be open some time in

February.

With 68 rooms on three fl oors, it should provide a pressure relief valve for

some of the housing issues that have faced Estevan. But if it had been completed

on time, those issues might not have been as pressing. “Th ere was no space for

quite a while. Probably this hotel would have solved a lot of problems,” he says.

Sholter is the managing partner and majority shareholder in the hotel. He

acts in a similar capacity at Estevan’s Perfect Inns, and used to be involved in the

Weyburn Perfect Inns.

Th e new hotel was in planning for two years this past November. Th ey went

through two project managers before being satisfi ed with the third – Dominion,

out of Winnipeg. Th e project was hit hard by infl ation. Did it hurt? “Oh yeah, big

time. In Regina, the cost of this would have been 20 per cent less.”

Much of labour had to be imported from Brandon and Winnipeg.

Actually, it could have been twins, he says, for the length of time it’s taken to

build.

Supply and demand was the big reason behind the new hotel. Th e rumors of

it being fully booked before even opening are mistaken, however. “Th at’s normal,”

he says of such rumors. It’s also normal for those rumors to be false.

“I know the demand is here. I wish we were open already.”

Even if there is a slowdown, he expects the allure of a new hotel should help

fi ll rooms. A good chunk of those rooms will be used by oilpatch people. “We’re

basically catering to the business sector of southeast Saskatchewan, ag, mining

and oil.”

Relief valve nears completion

Ken Sholter surveys the halls nearing com-pletion of the new Mo-tel 6 in Estevan. It’s located near the Wal-mart, on the east side of the city. Photo by Brian Zinchuk


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Estevan – Th e shrimp was tasty and the steak juicy and thick at Borets-

Weatherford’s grand opening in Estevan Jan. 22.

Borets is a large Russian Electric Submersible Pump (ESP) supplier, accord-

ing to Brad Ward, sales manager for Borets-Weatherford. Borets purchased the

electric submersible pumping division of Weatherford, and Weatherford took a

stake in Borets. All this occurred in January, 2008.

Th e Estevan location opened the doors to its new facility in the fall of 2008,

located on the west side of the city. Prior to that, they were operating out of a

Weatherford facility.

Electric submersible pumps take the a lot of the concepts of conventional

pumping, with a rod string reciprocating a sucker pump or a spinning a pro-

gressing cavity pump, and throw them out the window. Instead, three electrical

cables of a very heavy gauge are insulated with an elastomer, and protected by

lead sheathing. Th e down hole underground setup includes, from bottom up, a

telemetry unit, motor, seal, intake and pump.

At the surface, an electrical control unit known as a Variable Frequency Drive

(VFD) is about the size of a large refrigerator. Unlike other pumping systems,

it’s silent. If need be, it can be tucked out of the way, out of sight. It requires high

voltage three-phase power, and can be run from a gen set.

As a closed system, there are no leak paths, such as stuffi ng boxes.

By eliminating the rod string, you also eliminate the wear on the tubing.

Th e system works for light and medium crude, as well as water applications,

but isn’t designed for the high sand cuts associated with heavy oil production.

Pumping capacity can run from 75 to 25,000 bbl/d. “We get as big as 1250 hp

down hole,” explains Ward. “Typical around here is 140 cubic metres per day.

In addition to ESP setups, the company off ers surface horizontal pumps as

the local bread and butter.

“We run a lot of surface horizontal pumps here, and more and more down

hole,” Ward says. Page A23

ESP provider sets up Estevan shop

Garth Hoffort of Innovative Supervision tries out the mammoth shrimp provided during the Este-van Borets-Weatherford grand opening Jan. 22.


Laid out are the components of a Borets-Weatherford Electric Submersible Pump, or ESP.


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Borets-Weatherford area manager Bill Connelly, left, and Kevin Wallewein of Canada Capital Energy Corp show off the spooling equipment for electri-cal cable at Estevan’s new Borets-Weatherford facility.

Page A22The Estevan facility currently

hosts a spooling truck and spooling equipment. “We plan to grow,” ac-cording to Ward, noting they built the facility with three bays.

There’s not a lot inventory kept in Estevan. Most of that is at their Nisku, Alta., manufacturing plant.

“We’re just nicely getting open, just got the facility put together,” he says.

Staffing is an issue, in that right now they have just one local employ-ee. The rest are rotated in from Ni-sku. “We are looking for staff – spool truck drivers and installers – electri-cians,” Ward explains.

Grand opening for Borets Weathorford in Estevan


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By Josh SchaeferFreelance Reporter

Battleford - Th e economic hard times have fi nally hit the Battlefords.

On Jan. 21, G.L.M. Industries in Battleford quietly handed out temporary

lay off notices to a number of its employees. G.L.M. wouldn’t comment on the

number, but one employee who did not wish to be identifi ed has said anywhere

between 20-30 people were given the notices.

Dean Hartman, of G.L.M., said that although they did not want to comment

at the time, layoff s like this happen numerous times throughout the year.

“We’ve hit the end of the fi ve year peak,” he explained. “About every fi ve years,

the oil industry starts to slow down, and it eventually goes back to normal.”

He could not speculate at when those who were laid off will have the chance

to come back to work, but explains that it’s a hard time for the oil industry.

“Across western Canada, there’s probably about 10,000 people that were laid

off . Th e worst hit is Fort McMurray.”

With the entire country heading towards an economic recession, layoff s have

been seen all across western Canada, most recently, Evraz in Regina.

With oil trading at just under $150/bbl only six months ago, and now sitting

at around $40/bbl, the reason for cutbacks is quite evident.

G.L.M. Industries is taking another look at some of the larger projects that

they’ve started and are trying to fi nd ways at saving money in creating their stor-

age tanks for the oil patch.

For now, it’s business as usual for the rest of the Battleford operation, but

with gloomy forecasts in the economy one can only hope that this is the last cut

of jobs for awhile.

G.L.M. Industries’ Battleford facility is one of four located in Saskatchewan

and Alberta, and was opened in 1980. Employees usually fabricate a typical 1000-

bbl tank in approximately fi ve days.

An unidenti ed employee welds a tank on Jan. 21, the day a number of lay-offs were announced at G.L.M. Industries facilities in Battleford.

Photo by Josh Schaefer

Oil industry pitfalls hit the Battlefords


Innovation in multi-stage fracturing

Estevan Of ceBox 171, Estevan, SK S4A 2A3

P: 306-634-9056 • F: 306-634-9058

Precision Well Servicing362 7th AveBox 1569 Virden, MB R0M 2C0Ph: 204.748.2381 Fax: 204.748.2564Area Manager - Rick: 204.748.7134Field Supervisor - Brent: 204.851.0436

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(LSF)

Regina - It took six

years, but SaskPow-

er has finally joined

other Crown utilities

along with two dozen

pipeline companies in

Saskatchewan’s 1st Call

network.

Its absence in the

c a l l -be fo re -you-d ig

program left a gaping

hole in the system. The

addition should reduce

headaches for anyone

dealing in ground dis-

turbance.

Sask 1st Call is

Saskatchewan’s location

screening and notifica-

tion service for contrac-

tors and customers who

are planning to dig or

excavate. The network

includes SaskEnergy,

TransGas, SaskTel,

SaskPower and 24 oth-

er pipeline companies.

In 2008, Sask 1st Call

surpassed 100,000 re-

quests, which was a 14

per cent increase over

2007.

“The addition of

SaskPower is an im-

portant step in the con-

tinued growth of Sask

1st Call, a service that

supports the strong

and steady growth of

our economy,” said Ken

Cheveldayoff, Minister

of Crown Corpora-

tions. “Sask 1st Call is

all about our Crowns

and the private sector

working together to

ensure the safety of our

communities and the

reliability of services

provided by the infra-

structure of all member

companies.”

With the addition

of SaskPower, Sask 1st

Call now covers ap-

proximately 400,000

kilometers of buried

infrastructure through-

out Saskatchewan with

the goal of one day be-

ing a full One Call or-

ganization, as found in

other jurisdictions in

North America.

“Having many dif-

ferent companies to

contact for line locates

can be confusing for

any contractor, with an

equipment operator,

and potentially the en-

tire community, at risk,

if buried infrastructure

is accidently hit while

excavating,” said Ron

Canfield, President

of NIS Contractors.

“Contractors depend

upon Sask 1st Call, and

now that SaskPower is

a member, the safety of

our crews is greatly en-

hanced.”

Sask 1st Call was

established as a subsid-

iary of SaskEnergy in

January 2003, and pro-

vides a service to mem-

ber companies that

have underground in-

frastructure. A call to

the Sask 1st Call’s toll-

free number will con-

nect you to a trained

and experienced Cus-

tomer Service Repre-

sentative (CSR) who

will take all the perti-

nent information con-

cerning the proposed

excavation and enter it

into the screening da-

tabase. The software

will then determine

which of the member

companies have un-

derground facilities at

that location and no-

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Each company is then

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By Brian Zinchuk

Kindersley - In the wedding busi-

ness, this is the time of year when all

the arrangements are being made. In the

oil business, there’s some nuptials being

planned, too.

With the tanking of the price of oil

over the last six months, it was bound to

happen – companies are going to begin a

round of mergers and acquisitions.

“It’s no secret – the focus in Calgary

right now is consolidation of small ju-

niors,” says Arnie Hansen, founder, pres-

ident and CEO of Reef Resources.

It’s not a mail order bride, but they

did put out an ad on Nickles Daily Oil

Bulletin in early January.

Th e ad read, “Small Calgary based

publicly trading junior oil and gas com-

pany, interested in a potential merger with

a private company with similar goals and

objectives. Short term focus area's are a

blend of low to medium risk Saskatch-

ewan oil and gas prospects with a long

term focus on development of multiple

section/twp shale gas fi eld(s) in southern

Saskatchewan and Alberta. Management

brings extensive production, operations

management and development skills.”

Hansen explains, “We’re looking for

a target company, with 100 to 300 BOE

production per day.”

Areas they are looking at include west

central and southwest Saskatchewan, and

east central Alberta. “Anywhere south of

Saskatoon or Edmonton,” he notes.

Th ey specifi cally are not interested in

foothills deep gas plays. It has a lot to do

with royalty changes in Alberta.

Reef ’s core areas are in the Kinders-

ley and Senlac areas of west central Sas-

katchewan, where they recently revised a

farmin agreement with Marianas Energy

Ltd. for the two sections. Reef also has

project underway in southwestern On-

tario.

Share prices for public companies

have been pummelled in recent months,

so how does one evaluate the value of

private company at present? Compare

net asset value to net asset value, Hansen

explains.

“Th e public capital markets aren’t

your friends,” according to Hansen.

He notes there is a huge disconnect

in market value right now, and it is unfair

to compare public to private.

Private companies, he notes, are hav-

ing diffi culty fi nding capital. “For the

most part, you need to raise equity to

drill,” he says.

Growth will be through merger and

acquisition, he says.

Reef is also going to keep its eye out

on land sales, as there may be bargains

to be had. “You have to be selective in

Alberta due to revised royalties,” he says,

adding Saskatchewan is more stable.

Reef Resources is publicly traded on

the Toronto Venture Exchange, under

the symbol REE.


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08

Valentine’s on steroids

White Hill Lakes - Mooncor Oil

and Gas is seeking out heavy oil on the

western side of Saskatchewan, but if

the fi nd shale gas, it’s an added bonus.

“We’re an unconventional oil and

gas company, specializing in shale gas

and heavy oil,” says Richard Cohen,

chair of Mooncor.

Mooncor has approximately 12 sec-

tions at White Hill Lakes, in northwest

Saskatchewan, where some wells on the

property were drilled in the 1960s. “We

went out and drilled fi ve shale gas wells

on the property.”

He says the partner they were

working with didn’t go deep enough,

and there were issues with the frac. “We

are very keen on drilling another series

of wells at White Hill Lakes,” Cohen

says, looking for heavy oil. If they fi nd

shale gas, that’s an added bonus.

Th at quest will includes drilling

into the shale and taking core samples.

“First we want to shoot 20 km of

2D seismic. We’re pretty confi dent

there’s a shale gas play in that area.”

Can you get the recovery is the key,

he notes.

As such they want their heavy oil at

Waseca as the primary consideration.

Mooncor has also recently acquired

about 60,000 acres on the BC-Alberta

border on the Alberta side. In late Janu-

ary they had scheduled a recompletion

on a suspended well.

“Th at’s got us really excited,” he

says of the Alberta prospects.

In a depressed market, he notes,

you have to be careful in choosing.

“We could have a major, major dis-

covery there.”

Th at, in turn puts White Hills Lake

on the backburner.

Th e company also has some land

in southwestern Ontario, yet another

shale gas play. It’s a farm-in on Utica

Shales. Th ere’s also a land acquisition

program in the Antrim Shales in the

same region.

“In Saskatchewan, you’ve got the

Colorado Shales. Th ere has not been a

lot of success in unlocking it.”

Stealth Ventures, working at Al-

berta’s Wildmere area, seems to have

had some success, he notes. “Th ey have

cracked the code on recover the gas.”

Cohen calls it a major success story

that could bode well for Saskatchewan.

“We’re going to be using some of the

same technologies and contractors,” ac-

cording to Cohen.

“Hopefully some of the shale gas

producers in Saskatchewan will be able

to duplicate what Stealth has done.”

“I think Saskatchewan is one of the

new frontiers if they ever get the Bak-

ken and shale gas going.”

On the heavy oil side, he says they’ve

got some sanding issues they are over-

coming, trying to get the wormholes

formed in the formation.

It was getting to the point where

they had to call in a fl ushby once a

week. Th at’s down to once a month.

Finding the code for Saskatchewan shale gas

Snow removalClarence Molyneux of Turnbull Excavating was in high demand after Estevan got roughly seven inches of snow in one night in mid-January. After clear-ing out Trican’s lot, it was down the road to Brandt’s yard.


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Arcola – In a prime place to take advantage of

the growth of the Bakken oil development, Arcola is

feeling the warmth of Saskatchewan’s hot play.

“We were fortunate. Twenty years ago, they reno-

vated and added onto the school. Th e hospital? A fair

amount went into tit. Now we’ve had an infl ux,” says

Mayor Harry Laurent.

In 2006, he notes, “As a council, we felt we were

out of room,” so they chose to develop some lots.

“Within a year, they were gone.

“Holy ___, we’re in trouble,” he recalls.

Th e second phase saw 17 lots developed. Six have

sold so far, with 11 left. Laurent says he “kind of ex-

pects” to see them sell this summer, for new stick-

built or ready-to-move units. Modular and trailer

homes are not allowed.

Th e vast majority of new homes in the commu-

nity of just under 600 are ready-to-move. Just one of

the 16 is custom-built.

Local builders don’t have time to build homes,

he notes. Th ey’re too busy building things like shops.

Laurent is in a special position to know. He is one.

His company, Harry Laurent Construction, has been

busy doing commercial work.

Th e interview takes place in the small back room

of his other venture, a lumber yard called Arcola

Building Supplies, located on main street. Th e build-

ing is old and cramped, which is why he’s one of sev-

eral businesses setting up shop along the highway.

Th e new industrial park, with seven lots, is being

developed by Scott Hislop. “He chose to be a bit ag-

gressive,” Laurent explains. Th e result is a payoff for

the town. “By doing so, he sold all that land.”

Page A29

Arcola’s new industrial park sells out, fast

A tanker enters Arcola from the north.


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KellyKelly

Page A28“It sold out, fast.”

Indeed, Laurent says

there are plans to develop

another fi ve lots, likely

this summer.

Technically the in-

dustrial development

is in the RM of Brock,

not the town proper, but

to the average Joe, they

would consider it part of

Arcola.

Some of the lots

have already been built

on, others are waiting.

One shop is under con-

struction. Th e tenants in-

clude Aikiens Construc-

tion, a trucking company

owned by Colin Brown-

ridge, a two shop bay,

Laurent’s Arcola Build-

ing Supplies, and an Al-

berta fi rm whose shop is

already up. Finally, Lees

Sales and Service intends

to move its service sta-

tion from the main street

of the town to the indus-

trial lots.

“We’re building the

walls right now in out

other shop. We hope to

be open for the spring,”

Laurent says. Th e new

facility will also house

Harry Laurent Con-

struction.

“I sure hope it works.

I’m too old to go broke,”

he says with a laugh.

“People are happy

with the new govern-

ment in rural Saskatch-

ewan. You can feel it.

“It’s been good for

Arcola.

“For a small centre,

we hold our own. I credit

Arcola’s Co-op is expanding. Oil eld trucks fuelling up is a common sight at the co-operative.

it to the businessmen

and residents of Arcola.

Th ey’re friendly, aggres-

sive, and they make stuff

happen. My concern

with all the positives is if

we ever had a change in

government, I think we

would be in the biggest

recession ever.”

Growing Arcola

Arcola Mayor Harry Laurent sketches out the industrial lot expansion along the highway at Arcola.


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Arcola – Th e brick exterior exudes

permanence, authority, institution. Th e

high ceilings in the main courtroom

must have had countless accused

criminals staring up at its curved cor-

ners, wondering if the daylight com-

ing in would be the last they see for

a while.

Th e old Arcola courthouse lives

again, but this time, instead of sending

people to the big house, they can live

in the big house. Th e big court house,

that is.

In 2008, Arcola Lodge opened its

doors as a dormitory-style boarding

house. What were once offi ces and le-

gal meeting rooms are now bedrooms.

Th e judge’s chambers, with the private

toilet, is a now a washroom. It will

eventually have a whirlpool tub.

Th e grand staircase, which once

carried robed barristers to important

matters of law, now services rough-

necks and truck drivers. What was

once likely a secondary courtroom on

the main fl oor now hosts a big screen

TV and lounge area. A bar pool table

sits in the middle of the lobby.

I'll see you in court

If you get unruly staying at the Arcola Lodge, there’s always the cells that you can stay in to sleep it off, as manager Mike Van Dinter points out.


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Sleeping in courtMike Van Dinter

lives there, running the

lodge for owner Charles

“Chuck” Aschenbrenner.

He bought the place af-

ter his sister, Ramona,

and her partner Gary

Kerr purchased the High

House, a heritage build-

ing on main street which

houses Buddy’s Pub,

Shirley’s Buff et and Mi-

chael’s Pizza. Ramona

Aschenbrenner says her

brother fell in love with

the courthouse after she

fell in love with the bar.

“I moved in in Au-

gust from London, On-

tario,” Van Dinter says.

Th e previous owner

had used the heritage

building for antiques. Th e

upper fl oors had been

blocked off for a number

of years, and it didn’t do

the building any favours.

Van Dinter is plugging

away, fi xing this and that

as the building returns to

life.

“We have 12 rooms.

Some have two beds,” Van

Dinter says as he takes

Pipeline News on a tour.

Th e “Presidential suite”

has a view and a private

deck, he points out.

One crew fi lled the

place towards the end of

last year.

“Th ey claim this place

is haunted,” he says as we

head down to the base-

ment. Th ere, you can see

where police used to pro-

cess prisoners. A creaky

old boiler looks like it

could have been used on

the Titanic, and is quite

possibly the same vintage,

since it’s hard to imagine

how they could have got it

into the building without

demolishing a pathway in.

In the southwest corner

are the cells. If the graffi ti

is authentic, then some of

the notes scrawled on the

bricks have been there for

80 years. “W. Amos Feb.

15, 1926,” one says. A

more recent one writes,

“B.K. May 23/73”

Th e holding cells

are two steel cages, with

a common, solid wall,

and square rods for bars.

Th ere’s a slot for food

or securing and cuff s

through the doors. If their

dungeon-like appear-

ance wasn’t foreboding

enough, the black paint

seems to suck the life out

of you.

It’s possible some-

one may have died down

there, Van Dinter notes.

A client refused to go

downstairs at night be-

cause he thought he saw

a ghost.

At the time of our

visit, they had six board-

ers. Th e vast majority of

the clientele are oil-patch

related.

With a room you get

cable TV, linens, washer

and dryer, and use of a

kitchen. “All you bring is

your clothes, and that’s

it,” he says.

If anyone gets unruly,

he says the cells are still

usable.

The pumpjack probably wasn’t on the lawn of the Arcola courthouse when it was in original operation. However, with most of the boarders working in the patch, it’s not out of place, either.


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Gas innortheast Sask

As early as 1932, wells were be-ing drilled in the Hudson Bay area due to local reports of surface gas seeps near the town. From 1932 to 1950 over 100 wells were drilled in the east-central area of the province, (from the Pasquia Hills to Yorkton area), some of which reported gas shows within the Colorado shales.

Saskatchewan government well les show that some of these wells fuelled nearby farms for an unde ned period of time. According to local historical re-ports, by 1937, Coal Gate Oils Co., Ltd had three shallow wells in the Kam-sack area producing and supplying gas to the local electrical company (Paluck, 1988). By 1946, over 74 gas wells had been drilled, in the immediate vicinity of Kamsack. Of these, nineteen where producing. Saskatchewan government oil and gas well le records attributed production from these wells to only one well with total gas reported to be 4,744 x 103 m3 (168,389 mcf). Gas fuelled the electrical plant, part of the town and several farms nearby for over 15 years, albeit often with disrupted service in town due to lack of pressure, condensation and freezing problems and occasionally spring ooding.

-Source: Spinning stories, a woven history : Kamsack, Togo, Veregin, Runny-mede, Cote.-- Kamsack, Sask” which is a Kamsack History Book, published by the Kamsack History Book Committee, 1988.

By Brian ZinchukPipeline News

Preeceville - Th e Montney shale gas play is to

British Columbia what the Bakken oil play is to

Saskatchewan. It's where all the action is, where

heavy investment and adoption of newer technolo-

gies are making a big

diff erence. Land sales

in each of those regions

have been some of the

heaviest the respective

provinces have seen.

What's not so well

known is that Saskatch-

ewan has several oper-

ators seeking out shale

gas, too. Th e centre of

the action is unassuming

Preeceville, a farming

and livestock commun-

ity about an hour's drive

north of Yorkton at the

intersection of High-

ways 9 and 49.

If you're a hunter,

you'd recognize the

area as being defi ned as

'forest fringe' on game

maps. Th ere are moose

and whitetail. A little

further north, and you

hit the bush.

It's in this region

that numerous compan-

ies have acquired explor-

ation permits. Nordic

Oil and Gas is one of the most prominent, and

has received the most local attention. Th ere's also

Panterra, which has land positions in three areas

of the province. Midway Gas Corp has the largest

holding in the region, with 307,000 hectares under

permits for the Preeceville, Weekes and Porcupine

Plain areas.

Hunt Oil has been drilling in the area this

winter, including a well north of Norquay near a

blip on the map known as Arabella.

Th ese are areas where drilling rigs are not com-

monplace. When a fl are was visible near Preece-

ville, it attracted quite a bit of attention, according

to local residents.

Right now, it's still in the exploratory phase.

“We don't have any production yet,” says Paul

Mahnic, acting director of the Petroleum Tenure

Branch, Saskatchewan Ministry of Energy and

Resources.

What is shale gas?

“Essentially, it's gas that is produced from rocks

that are extremely fi ne grained,” explains Melinda

Yurkowski, a senior research petroleum geologist

with the Saskatchewan Ministry of Energy and

Resources.

In conventional gas plays, the gas would be

found in sandstones and siltstones, with a much

higher permeability than shale. (Permeability is

the ability of a rock to transmit fl uids). While a

conventional gas formation might have its perme-

ability measured in millidarcies, for shale, Yurkow-

ski explains, it is orders of magnitude less perme-

able. “We're looking at nanodarcies.”

Th e gas itself is CH4, methane, a biogenic gas.

Th e trick is to get it out of the ground. “What you

need is a conduit to get the gas to the wellbore,”

Yurkowski says.

Th at can be through natural fractures, via hy-

draulic fracturing, or through siltstone or sand-

stone interspersed as thin layers in the shale.

With the very low permeability, how do you

extract it? It's being done in several shale basins

already, such as the Barnett shale in Texas. But

we don't know enough about the geology of these

shales in Saskatchewan to know how well this

would work here, she explains.

Page B2

What's going on around Preeceville?Shale gas exploration in Saskatchewan

This core was taken from Ventures Kamsack No. 4. Photo courtesy Sas-katchewan Energy and Resources.

PIPELINE NEWS February 2009B2

Page B1It's been known

there's gas in the region for quite some time. Kam-sack had its own gas util-ity in 1937. Th e Kamsack geology is similar to that at Preeceville, she notes.

“Generally speaking, we have a lot of Upper Cretaceous shales, espe-cially in southeastern Sas-katchewan, where they're pretty thick,” Yurkowski says, noting that in the

Weyburn area, they can be up to 1000 m thick. Th ey gets thinner as you go north, she points out. In the Preeceville area, the section is about 250 m thick, but that's highly variable.

Not all shales hold gas, she notes. “You have some richer zones, and some leaner zones.”

A lot of the wells in the area have been drilled to a depth of 300 to 435

m, according to the Sas-katchewan Oil and Gas Infomap, found at www.er.gov.sk.ca.

It's not the fi rst time wells have been drilled in the area, either, the map shows a number of aban-doned dry wells punched in 1952 and 1955. One is north of Stenen, another near Ketchen. Th ere were several around Endeavour, north of Preeceville. One 1958 well is an anomaly, at

1027 m, compared to the much shallower depths drilled in the area.

A 1967 well near Danbury, north of Hyas, is also listed as dry and abandoned. Another 1968 dry hole is found a few kilometres southwest of Panterra's current wells, just southwest of the town of Preeceville.

Recent interestInterest started up

again in 2004 and 2005,

with a number of explora-tion permits issued. Th ose permits are soon reaching their fi ve-year deadlines, and it's coming time to convert some into licences. “Is it going to be com-mercial? Is there enough to make a go of it?” says Mahnic of Saskatchewan shale gas. He notes issues of infrastructure, com-pressors and density of wells.

“It's there. I would

think price is going to be the big thing.”

As for the BC ex-citement in the Montney play, well it's diffi cult to compare Saskatchewan's potential with BC recent success. “It's a very diff er-ent environment,” Yur-kowski says, noting the BC play is far deeper, with higher pressure, and get-ting incredible amounts of gas. “It doesn't really relate at all.”

1-888-458-2270458-2270www.lynco.ca

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

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SVEIN BRYEIDE CONSTRUCTION Ltd.SVEIN BRYEIDE CONSTRUCTION Ltd.

HWY. 47 N. AT BENSONFax: 634-9798 • Cell: 421-0203

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Shale gas exploration in Saskatchewan

This are near Preeceville got the town buzzing, however much of the gas burning was propane used in the stimulation process.

Photo courtesy of Preeceville Progress

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PIPELINE NEWS February 2009 B3

A who’s who of shale gas in Saskatchewan

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Phone: (306) 634-3616(306) 634-3616

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Who’s doing what in Saskatchewan shale gas?

With shale gas gaining prominence, especially in

Northern British Columbia, Saskatchewan is now

seeing some attention in the quest for unconven-

tional natural gas. Much of the action is around

Preeceville, an hour north of Yorkton. Th is list is

courtesy of Saskatchewan Ministry of Energy and

Resources.

Crown Petroleum and Natural Gas Dispositions in areas prospective for shale gas

Notes: ‘gas wells’ includes both wells completed

and cased for gas.

Th e following information is in the public do-

main and can be gathered from the Saskatchewan

Oil and Gas InfoMap at the ministry website (www.

er.gov.sk.ca). No postings in shale gas areas for Feb-

ruary 2009 land sale.

Preeceville AreaPanterra Resource Corp

Th ree permits issued in 2005 (5-year term)

Permit (183,500 ha) located in Preeceville area

north of Yorkton in East Central Saskatchewan

(Referred to as “Foam Lake” by Panterra)

17 gas wells

Permit (155,800 ha) in Moose Jaw area (Near

Davidson, Craik and Elbow)

16 gas wells

Permit (79,600 ha) located 50 miles northwest

of Prince Albert (Referred to as “Shell Lake” by

Panterra)

3 gas wells

Western Warner Oils Ltd.Affi liated with Nordic Oil & Gas

10 leases issued in 2006, 2008, and 2009 (5-year

primary term)

30 km north of Preeceville

12,900 ha

3 gas wells

Leases selected from permits

Midway Gas Corp.Th ree permits in Preeceville area, around Week-

es and Porcupine Plain

One issued in 2004, two in 2006 (5-year term)

307,140 ha

11 gas wells

Saskatoon Assets Inc.One permit northeast of Preeceville (198,000

ha)

Issued in 2007 (5-year term)

4 gas wells

Hunt Oil Company of Canada owns these

wells

Nucoal Energy Corp.

One permit immediately northwest of Yorkton


60,500 ha

No gas wells

Rest of SaskatchewanLane Land Services Ltd.

Th ree permits from south of Melville eastwards

to Cupar (30 miles north of Regina)


199,700 ha

No gas wells

Great Plains Exploration Inc.One permit in Big River area, 50 miles north-

west of Prince Albert


53,900 ha

1 gas well

Redstar Oil and Gas Inc. owns well

Keppoch Energy Ltd/Pan Pacifi c LandCorporation

One permit 40 miles northeast of Prince Al-

bert


37,285 ha

No gas wells

Whitland Consulting Inc.One permit in Duval area 35 miles northwest

of Regina


96,700 ha

1 gas well

Well confi dential to Feb 28, 2009

Estevan – Este-

van’s Oilfi eld Techni-

cal Society is planning

a bonspiel to remem-

ber this year, and for

good reason. It’s their

50th, after all.

Th e event will take

place at the Estevan

Curling Club Mar.

26-29. Th ere will be a

banquet and dance at

the Beefeater Plaza on

the Friday.

Th e vent is known

for its massive amount

of door prizes. Recent

years have also had an

added bonus – with

winning teams

receiving an en-

velope with some

cash after each

win.

“It’s our 50th,

so we’re going

to step it up and

make sure it is the year

everyone remembers,”

says Jeff Mosley, vice-

president of the Este-

van OTS and one of

the organizers.

Entry fees are

$300 per rink, and that

guarantees four events.

“We’re shooting for 64

teams again,” Mosley

says.

Registration can

be done online at the

Estevan OTS website

(estevanots.com).

Registrations close

Mar. 20.

One toremember


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By Brian Zinchuk

Estevan – It was close – within minutes, really

– of being wiped out by fi re. A lightbulb broken dur-

ing the installation of insulation in the expansion of

Wil-Tech Industries set the building on fi re during

its construction phase in on Dec. 2, 2007. Passersby

called it in, and a quick response by the Estevan Fire

Service turned a potential calamity into a setback.

Fast forward to January 2009, when Wil-Tech

held its grand opening after the completion of an ex-

pansion that nearly quadrupled their fl oorspace and

doubled their staff over three years. Th e fi re service

was high on this list of people thanked by Jim Wil-

son, who heads up the family fi rm.

It’s also fi tting, perhaps, that the grand opening

came within days of the 25th anniversary of Jim and

Crystal Wilson coming together as a couple. Mar-

ried for 23 years, they have been running Wil-Tech

together for 17 years. During that time, all three of

their children, Nicole, Steven and Dustin, have be-

come part of the fi rm.

Wil-Tech specializes in hydraulic systems and

explosives. Part of the expansion was the branding

as a “Parker Store.” Parker is their primary hydraulic

line, and representatives were on site for the occasion.

“We do motion control, fl uid connector products, hy-

draulics, and pneumatics,” noted Tony Balla, western

regional manager for Parker. “If it moves, we’ll have a

component on it.”

Page B5

Nearly quadrupled in size, doubled in staff: Wil-Tech

The staff at Wil-Tech Industries has grown to about 24 over the last three years.Photo by Brian Zinchuk


Page B4Th e company is also

the Explosives Unlimited

dealer for southern Sas-

katchewan. Th e company

has supplied approximate-

ly 20 drilling rigs’ complete

systems, the most recent

being Red Dog Drilling

Rig No. 3, assembled right

next door.

Barry Gervais, shop

foreman, took Pipeline News on a tour of the ex-

panded facility. Behind the

offi ce is the Parker store,

with a sales desk and in-

ventory. In the back is the

expanded shop. Th ey’ve

gone from 5,000 square

feet to 19,000 square feet.

Th ere’s a new machine

shop, mostly for in-house

work or when customers

bring something in to be

fi xed.

A new cylinder tear-

down bench can generate

55,000 foot-pounds of

torque. Th ey’re pretty rare,

apparently.

How did they do it

before? “Struggle,” Ger-

vais says. “Make do.”

A new cylinder hone

works on the inside of

mammoth cylinders. Th e

hone is capable of work-

ing on cylinders up to 24

inches in diameter, and

40 feet long. “It’s all auto-

matic and computerized,”

he says.

Jim Wilson says

“Th e hone and disassem-

bly bench fi t some of the

largest cylinders you will

fi nd.”

Th e hone is among

the largest in Western

Canada. He notes that

some of the largest equip-

ment is in the Estevan

area, with the local mines.

“We feel we have

went from a local service

to a provincial-type player,

and will try to draw busi-

ness from all over the

province or provinces.

Th ere’s a mammoth

parts washer that makes

your Kitchen Aid dish-

washer at home look like

a dollhouse toy. “You can

put 2.5 tonnes of stuff in

that thing for weight,”

Gervais says. It’s also en-

vironmentally friendly.

Two overhead cranes

assist in the ability to re-

pair long truck-mount

cranes. In the past, cus-

tomers had to go to Sas-

katoon or Edmonton for

such work.

Page B6

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‘From local service to a provincial-type player’

Mike Holowchuk per-forms troubleshooting and repairs in the eld, part of being a mobile hydraulic mechanic for Wil-Tech Industries.

Jim Wilson thanks everyone for coming, and for their support of Wil-Tech during the grand open-ing of their expansion. Wil-Techs award winning chili


Page B5Th ere’s also a 350 hp

test unit for extremely

large pumps. A 125 hp

component test stand is

used for hydraulic pumps,

motors and valves.

Th e services truck on

display has a new chassis

under it.

Th e refreshment table

prominently features Jim’s

chilli, for which he re-

ceived an award in 2008.

Jim and Crystal cooked it

all for the big day.

“It’s been about three

years – concept to com-

pletion,” he notes. Th is

place has basically been a

plan I’ve had for years. I’ve

been sourcing equipment

for years, purchasing piec-

es here and there.

“I did a lot of re-

search. Our goal was to

be the largest and most

extensive.”

Th e company now

seeks to expand their

horizons, marketing to a

much larger area.

Most of Wil-Tech’s

work is in the oilpatch,

but they also cater to min-

ing, SaskPower, and agri-

culture.

“Obviously the ener-

gy sector is our lifeblood

in Estevan,” Jim Wilson

told the gathered crowd

at the ribbon cutting.

“Our key to our busi-

ness is it is diverse, al-

though the majority of

our business comes from

the oilfi eld,” Wilson ex-

plains later.

“It’s been a long

haul,” Jim says. “We did

have some major setbacks

including a major fi re.”

“Th e customers

are why this happened.

Without their support,

we wouldn’t be here.”

He thanked the staff

as well, noting a lot are

like family. Well, four are.

“We started in a little

back bay, 17 years ago,”

Crystal Wilson says, not-

ing how proud they are of

their employees and kids.

Th e total staff now num-

bers around 24.

Working so close with

family, she says, “Some

days are good. Some days

are bad. We had to make

a decision: work is work

and family is family.”

It’s plain to see, she’s

happy to have them

around.

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Major growth in three short years

The Wilson family cuts the ribbon on the opening of their substantially ex-panded shop at Wil-Tech Industries. From left are Steven Wilson, Crystal Wilson, Jim Wilson, Nicole Wilson and Dustin Wilson.


Kisbey - South of

Kisbey, there is an oil

well, a single, solitary

oil well in the middle of

the busy Bakken oil play.

Th ere are other wells in

the area, but this one is

special.

Th at well was drilled

by a local farmer, Terry

Johnston, with the back-

ing of “friends and fam-

ily.” It’s operated under

the company name T-45

Oil Corp.

Johnston’s modest

about the whole thing,

after having garnered the

attention of a national

newspaper around the

time the well was drilled.

It’s a producer, but its

decline rate was a little

more than expected, and

Johnston wishes it put

out a little more.

“Th ere’s still oil

there, but it is going to

be a long time paying

out,” he says.

Seeing all the action

around, it was something

he just had to do, or he’d

regret it for the rest of

his life.

“I’m just a farmer.

I’ve been interested in

it all my life,” says John-

ston, noting he wanted

to drill a well for a long

time.

Th e Johnston farm

is on the south edge of

Kisbey, a little village

between Arcola and

Stoughton on Highway

13. While the Johnstons’

land is in the area of

the Bakken action, they

didn’t hold the mineral

rights to it. “We had

quite a bit of drilling

activity on our land,” he

notes.

Instead, he acquired

the freehold lease rights

of a neighbour whose

land was more in the

centre of things. A geol-

ogist was hired through a

connection with a small

local oil company John-

ston is involved with.

Th ey didn’t have seis-

mic to go by, but rather it

was a shot in the dark on

account of the proximity

of nearby wells. It would

end up as a horizontal

multi-stage frac.

Th e well was drilled

in early June, 2008, and

went into production in

early July. “Th e day be-

fore it [oil] hit the best

price.”

Asked if drilling your

own well is like jumping

out of an airplane, he re-

sponds, “Very much like

that.”

Th e company is now

focusing on a water dis-

posal well drilled just

outside of Arcola that

went into operation this

fall. Will they be drill-

ing more wells in the

future?

“Probably we will

at some time,” Johnston

says.

Taking a chance: Why not drill your own well?Taking a chance: Why not drill your own well?

T-45 0il drilled is rst, and so far, only well, south of Kisbey in June.Photo submitted

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2008

She’slyingShe does want

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Arcola – A new venture just east of Arcola is already expanding.

Bakken Saltwater Disposal is operated by T-45 Oil Corp, a one-well private oil company that drilled its fi rst, and so far, only oil well near Kisbey this last summer.

Th e saltwater disposal well was drilled in the fall, and is a diversifi cation of sorts for T-45.

When Pipeline News visited in early January, three additional tanks were being installed, each at 1000 bbls. Th ere’s room to add another three 1000-bbls tanks, if needed.

Th ere are three unload points, with the ca-pacity to add additional points, should condi-tions warrant. Th e unload points are in a U-shape around the south, east and north sides of the facil-

ity. Th e Bakken play had been working its way

from the west, so the owners saw the new disposal well as an opportunity to meet a local need.

A similar well, operated by Palko Energy, is located north of Midale. Th e owners of the Arcola facility conferred with Palko in setting up their operation.

Getting rid of brine

Increased demand has led to an expansion of capacity of Bakken Salt Water Disposal, just east of Arcola.Photo by Brian Zinchuk

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Newalta Inc. announced that on

Dec. 31, 2008, it completed the pre-

viously announced unitholder and

court approved conversion whereby

all outstanding trust units of Newal-

ta Income Fund were exchanged

for common shares in the capital of

Newalta on a one-for-one basis. The

amalgamation of various subsid-

iary operating entities of Newalta in

connection with the conversion was

completed on Jan. 1, 2009.

Newalta specializes in waste dis-

posal, and has Saskatchewan opera-

tions in Alida, Halbrite, Plover Lake,

Richmound, Regina, Swift Current

landfill and Unity landfill.

On Jan. 19, Newalta announced

measures to curtail spending. Accord-

ing to a release, “Management de-

ferred orders on long-delivery equip-

ment and as a result, outstanding

commitments are very modest. Total

capital expenditures in 2008 are ex-

pected to be $125 million, comprised

of growth capital expenditures of ap-

proximately $105 million, and main-

tenance capital of approximately $20

million. Capital investments in the

first half of 2009 will be tightly con-

trolled and are expected to total ap-

proximately $15 million, comprised

of growth capital expenditures of $10

million, and maintenance capital of

$5 million. The capital program for

the remainder of 2009 will be estab-

lished in the second quarter based on

the performance of the business and

the outlook for the market.

“Actions to control costs and re-

duce debt including the control of

all discretionary spending, travel and

hiring restrictions, and the suspen-

sion of salary increases are expected

to have a positive impact in the first

quarter. As certain areas of Newal-

ta’s business are continuing to grow

while others are facing weakened

demand, management will reallocate

people to retain the talent developed

throughout the company, wherever

possible.”

Newalta now corp, reigns in spending

Regina - With a

growing demand for

power in the province,

SaskPower has issued

a request-for-proposals

(RFP) for new electrical

generation.

Following a request-

for-qualifi cations to fi nd

private sector partners in-

terested in providing new

generation, SaskPower

has invited fi ve compa-

nies from across Canada

to submit proposals for

between 100 megawatts

(MW) and 200 MW

of peaking generation

to be in service for the

2011/2012 winter peak.

Th e companies are Trans

Canada Energy Ltd.,

ATCO Power Canada

Ltd., Northland Power

Inc., Epcor Utilities Inc.

and SNC-Lavalin Inc.

A week before the

request for proposals was

issued, TransCanada an-

nounced it was delaying

its plans to build a poly-

generation plant near

Belle Plaine, between

Regina and Moose Jaw.

Th e 300 MW plant had

initially been slated for

operations to commence

in 2013.

“As Saskatchewan’s

economy continues to

grow, there is an in-

creased demand for

power as people invest in

the province and make

it their home,” Crown

Corporations Minister

Ken Cheveldayoff said.

“As part of this process,

SaskPower is exploring

opportunities for private

ownership or investment

in new generating facili-

ties.”

Th e deadline for the

submission of proposals

is April 8, 2009. Th e suc-

cessful proponent will be

announced in July 2009.

SaskPower will is

continuing with the

development of other

supply options. Future

options under consid-

eration include clean

coal™, polygeneration,

demand-side manage-

ment, cogeneration, nat-

ural gas, imports, nuclear,

large and small hydro

and renewables – like

biomass and wind.

Jan. 18, 2009, marked

the 80th anniversary of the

creation of SaskPower.

TransCanada among power generation contenders


Arcola – With all the new Bakken wells in the

Arcola area, there’s plenty of lease work to be had.

“It’s been extremely busy. Every day you can pos-

sibly work, you do,” says Jeremy Johnston, owner of JJ

Trucking. “For us, our end of it is still busy.”

When did they see the uptick?

“Really for us, it was this time a year ago,” John-

ston says when the action hit them. “We were do-

ing municipality work, some commercial, and oilfi eld

work. We still do all that, but more of a percentage is

oilfi eld.”

“We’re in trucking, sand and gravel business, rec-

lamation work.”

Johnston says oilfi eld work now makes up about

70 per cent of their business. It’s led to a near dou-

bling of their fl eet in a year. “We run 12 trucks.”

Th ose trucks include belly and end dump, as well

as lowboy trailers. Th ey have seven payloaders, two

extra graders, and a few excavators. One quad-trac

tractor sees winter duty in snow removal, and scraper

duty in the summer.

“Once the berms are put back, we gravel them

up. In low-lying areas, we haul material in to build

the lease. Around the Kisbey area, there’s lots of low-

lying land that needs material hauled in.”

Th e fi rm has gravel and clay pits near Arcola.

Page B11

Every day you can possibly work

Jeremy Johnston, owner of JJ Trucking, has seen his eet nearly double in the past year.


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JJ Trucking principal, Jeremy Johnston, is hon-oured by a sign at the entrance of Arcola, in the same manner proud town make billboards out of local hockey heroes.

Page B10Th e company has a

shop just west of Arcola

along Highway. Head-

quarters are in the old

Land Titles building, a

heritage building with an

ornate interior that could

pass for a old-time movie

set. Th ey are going to build

a new building on Main

Street.

Why?

“I just want to be

in town,” Johnston says.

“Keep Main Street go-

ing.”

Originally from a farm

near Kisbey, Johnston, 31,

started out with one truck

in the late 1990s.

During those early

years, his time was partial-

ly taken up by competi-

tive snowmobile racing.

Indeed, there’s a sign on

the entrance to town pro-

claiming “Home of 2001

USSRA World Cham-

pion Snowmobile Racer

Jeremy Johnston.”

“I was picked up by

Team Ski-Doo and ran

out of Valcourt, Quebec,”

he says.

“A guy in town, Garth

Gordon, was doing some

drag racing. We got into

the oval circuit together.”

Gordon actually

works with Johnston now,

one of about 25 staff .

All good things must

come to an end, however.

“Th e business got busy,

and I couldn’t get away

anymore. It’s full time.

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Over 35 years of legal experience

No shortage of work to be done for trucking company

You’re away all winter. You

race every week.

“I still do some Ski-

Dooing just for fun.”

With a slowdown

in the patch, will he have

time for more sledding?

“We haven’t seen it yet,

but we are prepared to see

it.”

“So much work

backed up, it’s taking time

to clear.”

“We’re in a really

good area,” he says, not-

ing recent land sales mean

there will be lots of drilling

to do over the next several

years to keep the rights.

Indeed, Arcola was so

pressed for housing, that

Johnston bought a house

a while ago to put up a

couple guys. “You had to

fi nd a place to stay.”

A local restaurant can’t

fi nd help, and was closed

the day Pipeline Newscame to visit. A Chinese

restaurant closed a couple

years ago, at probably the

least opportune time. “Th e

boom comes, and they’re

gone,” he says.

If things do peter out

in Arcola, Johnston says

he would try to seek work

elsewhere, if necessary,

paying particular atten-

tion to highways projects.

“Th ey’re talking about

doing some work around

here.”

“I think we’re very

fortunate to be where we

are with what is going on

in the world.”

B12 PIPELINE NEWS February 2009

See us for all of your instrumentation needs!

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Phone: (306) 634-4797 or 634-7334

Pictured L-R: General Manager - Wayne Vande Velde and Vice-President - Suzanna Nostadtand Vice-President - Suzanna Nostadt

Tremcar West Inc.Tremcar West Inc.

Tremcar West Inc. is the rst Western Canada tanker trailer service repair Tremcar West Inc. is the rst Western Canada tanker trailer service repair shop, part of Tremcar Technologies Inc, Tremcar U.S.A., and Hutchinson shop, part of Tremcar Technologies Inc, Tremcar U.S.A., and Hutchinson Industries and all of the other subsidiaries. Tremcar Technologies Inc. is a Industries and all of the other subsidiaries. Tremcar Technologies Inc. is a family owned business originating in 1962 in Quebec and has become one family owned business originating in 1962 in Quebec and has become one of the largest tanker manufacturers in North America. of the largest tanker manufacturers in North America. The owner and president Mr. Jacques Tremblay with his keen insight and The owner and president Mr. Jacques Tremblay with his keen insight and resources recognized a desperate need in the Western provinces for a resources recognized a desperate need in the Western provinces for a coded service shop capable of tanker repair, testing, inspections, part coded service shop capable of tanker repair, testing, inspections, part sales, customer service, and tanker trailer leasing. Mr. Jacques Tremblay’s sales, customer service, and tanker trailer leasing. Mr. Jacques Tremblay’s long awaited service repair shop of cially opened on Oct. 18, 2008. long awaited service repair shop of cially opened on Oct. 18, 2008. The Vice-President Mrs. Suzanna Nostadt (20 years) experience in the The Vice-President Mrs. Suzanna Nostadt (20 years) experience in the tanker trailer business and the General Manager Mr. Wayne Vande Velde tanker trailer business and the General Manager Mr. Wayne Vande Velde (25 years) experience combined with Mr. Jacques Tremblay (46 years) of (25 years) experience combined with Mr. Jacques Tremblay (46 years) of expertise and his son Daniel Tremblay and their family of companies are expertise and his son Daniel Tremblay and their family of companies are looking forward to serving the businesses in Weyburn, Estevan and the looking forward to serving the businesses in Weyburn, Estevan and the surrounding areas.surrounding areas.

Ph: 306-842-6100 • Fax: 306-842-6101Ph: 306-842-6100 • Fax: 306-842-6101For more information visit our website: www.tremcar.comFor more information visit our website: www.tremcar.com

#5-22nd Ave. #5-22nd Ave. Weyburn, SK S4H 2L2Weyburn, SK S4H 2L2

Arcola - Th e nice

thing about family busi-

nesses is that when you

decide to spend some

time in warmer climates,

the younger generation

should be able to run the

shop

And indeed, that’s

what’s going on with Ea-

gle Oilfi eld Services, an

Arcola-based company

that has two primary di-

visions – equipment sales

and trucking. Th ey also

have a blasting and coat-

ing division.

Cody Grimes takes

care of the sales, while

Micky Grimes leads the

trucking eff orts. Paul

Grimes is the president,

while Bev Grimes takes

care of the admin side.

Th e last two are the ones

who get to enjoy the

warm weather.

Paul has been in-

volved in the industry for

30 years via Eagle Energy

Ltd., a private oil pro-

ducer.

Micky, 25, went into

the service rigs after high

school, and was received

his boom truck ticket at

the very early age of 19,

having apprenticed under

his uncle, Kevin Grimes.

In those days, the

company wasn’t moving

much, and needed pickers

and winch trucks. Micky

got his class 1 drivers li-

cence, and that got things

going.

“We got a boom

truck half-way through

the fi rst year,” he says,

noting they started with a

boom truck and picker at

the same time.

“We started renting

tanks and selling tanks

and hauling tubing,” he

explains. Th e fl eet has

since grown to three

winch trucks, two picker

trucks, one knuckle picker

and over a dozen trailers.

Th ey move rig shacks and

mats, but not the rig it-

self. Th e fl eet is set up for

short haul trucking, with

most of their work within

an hour radius of Arcola.

Page B13

A swamper directs his crane operator on a tank lift near Arcola. Eagle Oil eld Services of Arcola does most of its hauling work within an hour of home base.

Might work 6 days, instead of 7, a week


Cody Grimes, left, and Micky Grimes head up the equipment sales and trucking divisions, respec-tively, of Eagle Oil eld Services in Arcola.


Page B12While Micky went

into the hands-on por-

tion of the industry right

away, Cody, 26, graduat-

ed with a commerce de-

gree from the University

of Manitoba, then came

home.

On the equipment

side, he says, “We de-

sign tanks, pressure ves-

sels, treaters, full water

knockouts, portable test

separates and header

packages.” Th ey also do

well heads and tubing

sales.

An example might

be an API12F-certifi ed

steel tank with a nozzle

placement set up specifi -

cally for treating Bakken

oil.

“When we fi rst start-

ed, we rarely dealt in new

equipment,” Cody says,

noting a lot was recondi-

tioned.

“As this boom hit,

there’s no way you could

keep up with the equip-

ment needed, nor was

there anything left to buy.

We spent months lining

up suppliers, engineers,

and talking to people in

the patch.”

In 2006, Eagle Oil-

fi eld Servicing went into

new product sales, with

their fi rst test separator

built in 2007.

Cody speaks of their

location advantage –

one hour from Estevan,

Weyburn, Carduff , Ki-

pling and the Manitoba

border. It also means they

end up competing with

businesses from Estevan

Weyburn and Carlyle. “A

lot of the time you do get

overlooked. You have to

spend some extra time to

sell the equipment.”

But on the trucking

side, Micky notes, “We’re

closer to everything

else.”

Th ey found Sask-

Jobs.com to be great for

fi nding employees, but

it’s hard to fi nd places for

people to stay. Th ey fre-

quently receive resumes

from people from On-

tario.

Th ere’s a dormitory-

style boarding house in

town, set up in the former

court house. “We’ve used

that a lot,” Cody says, un-

til they fi nd somewhere

more permanent to stay.

For 2009, Cody notes,

“We’re optimistic. It’s go-

ing to change things a bit.

Can we predict what’s

going to happen? Not a

clue. But we’re still buy-

ing equipment.”

Micky notes that

weekends now are a lot

calmer. Th ey might work

six days a week instead of

seven.

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Estevan (306) 634-5454Regina ...................... (306) 352-2662Saskatoon................. (306) 244-4847Regway..................... (306) 969-2126Moose Jaw ............... (306) 694-4322

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Location a major asset to Eagle Oil eld Services

Darryl Fox, B.Admin.,CMASales Consultant

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Experienced, reliable, references available. Rates negotiable. Available immediately.

13 Annual Southeast Environmental & Safety Seminar

Join us at McKenna Hall in Weyburn, SKJoin us at McKenna Hall in Weyburn, SKWednesday, March 18, 2009Wednesday, March 18, 2009

for this informative one-day seminar onfor this informative one-day seminar onEnvironmental & Safety issuesEnvironmental & Safety issues

Featured SpeakersFeatured SpeakersJohn Grigg - Sask Watershed AuthorityJohn Grigg - Sask Watershed Authority

Curtis Weber - Worker’s Compensation BoardCurtis Weber - Worker’s Compensation BoardRandy Nygren - Ministry of EnvironmentRandy Nygren - Ministry of Environment

Steve Wallace - Sask Heavy Construction Safety AssociationSteve Wallace - Sask Heavy Construction Safety AssociationColin Steadman - Safety/EnvironmentColin Steadman - Safety/Environment

Tim Vandenbrink - Fire & SafetyTim Vandenbrink - Fire & Safety

For more info or to registerFor more info or to registerContact Debbie at 306-637-4926 or Charlotte at 306-637-4922Contact Debbie at 306-637-4926 or Charlotte at 306-637-4922

Email: [email protected]: [email protected]

Your $135 registration fee to the seminar includes breakfast, a full course Your $135 registration fee to the seminar includes breakfast, a full course dinner, a chance to win one of two $500 gift certi cates, & lots of door prizes.dinner, a chance to win one of two $500 gift certi cates, & lots of door prizes.

Register Today!!Register Today!!

thth

Virden, Man. – Th e 'Trilogy’ part of Lennon Tril-

ogy Professional Land Surveyors is an inside joke.

You see, it was started by four people, but they

called it a trilogy, based on the Hitchhiker’s Guide to the Galaxy. It was a trilogy, too – of four books.

Eventually the four book trilogy became fi ve, but

that’s a whole diff erent point.

It’s a bit of goofi ness for a serious business, one

that relies on exacting precision. Th e company has

landed a major contract this past year, surveying on

the Enbridge Alberta Clipper project.

“We’re anticipating another busy year, even with

oil going low and the economy going to crap,” says

Deke Baley, operations manager, matter-of-factly.

Th e company was founded by his father, Ken Ba-

ley, who was a Manitoba land surveyor out of Win-

nipeg. He wanted to expand the operations for the

company he was working for to Virden, but that was

a no-go, so Trilogy was created, with the four of them

– Ken, Ian, Todd and Deke Baley.

Most of Trilogy’s work was focussed on the oil-

fi eld. Th ey would end up purchasing Lennon Surveys

of Brandon, who work mostly in legal surveys. “We

didn’t want to put all of our eggs in one basket,” says

Baley.

Th e company has three land surveyors on staff –

Ken Baley, the father who runs the show, Todd Baley,

one of the sons, and Grant Watson. Ian Baley is proj-

ect manager, while Deke Bailey handles operations.

Th ere’s one other brother – Kyle. But he doesn’t

work in the family business. Rather, he does com-

puter work, in the Bahamas. Deke says, “He was the

smart one – must be doing something right.”

Lynn, the mom of the pack, is a retired nurse.

She’s able to put her medical skills to use as the safety

co-ordinator.

Page B15

A 4x4 and two quads: oilpatch, A 4x4 and two quads: oilpatch, hydro and mining surveying hydro and mining surveying

B15PIPELINE NEWS February 2009

Ltd.

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• Industrial Cleaning Products

92 Hwy. 39 E, Estevan • www.cbsterling.com

Blaine FallisGeneral Manager306-421-2623

306.634.6549

SWIFT CURRENTKevin Burton - Technical Service Rep • 421-3473

Steve McLellanChemist

Rick Breisnes421-5502

Dean CarriereTechnical Service Rep.306-421-1238

637-2121

89 Escana Street, EstevanMon. - Fri. 8:00 a.m. - 5:00 p.m

On Call 24 Hours a Day Toll Free 1-866-332-2121 Fax: (306) 637-2124

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Frobisher Location - Phone: 486-2044

Genset / Light TowersGas Powered Pumps

Telescoping Fork & Scissor LiftsBackhoe / Trenchers / Trailers

Temporary Power Cable

Oil eld, Industrial, CommercialPh:(306) 634-9888

ELECTRIC MOTOR DIV.New/Used Sales

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REPAIR SHOPTrash Pumps, Lights, Heaters,

Generators, Compressors, Converters

Page B14Starting as a rodman

in 1993, Deke notes, “Be-

fore that, dad took you in

the back yard and made

you do everything.”

Th e three brothers all

worked on survey crews

on pipelines in the early

1990s. Keeping up those

relationships paid off now.

Ian’s been dealing

with the Alberta Clip-

per and Southern Lights

pipeline projects for En-

bridge. “We did work on

the Keystone line, south

of Portage La Prairie to

Morden,” Deke notes.

“We had a crew up

in Jasper for a year and a

half,” he says, working on

the Kinder Morgan line

through the national park.

Th e company has

grown substantially from

its 2001 start, now with

approximately 32 employ-

ees. “We’d go out, do the

fi eld work, draft all night,

and get the product out,”

says Deke.

Page B16

Keeping up on old relationships pays offKeeping up on old relationships pays off

With a lot of their work around Virden, Lennon Trilogy Professional Land Surveyors has their own private survey marker just outside the of ce, al-lowing the GPS system to send out the proper data to nd exacting loca-tions in the eld.


Arti cial Lift SystemsBMWTM Products & Services

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ENVIROTRAP SYSTEMSSecondary Wellhead Containment

ENVIROTRAP SYSTEMS1-306-489-2250

Sales Contact: CHEYENNE OILFIELD SERVICES 1-306-483-7924E-mail: [email protected] www.envirotrap.com

THE SOLUTION EASY TO INSTALL, EASY TO USE

quick, easy installation (well shutdown during installation is recommended)separate models available for any style stuffi ng boxesspacious, semi-transparent holding tank - instantly monitor fl uid levelsEnviroTrap two-piece cover is easy to remove and replace to accommodate packing changes and cleaningavailable with Murphy Auto shutdown switch

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Preserve your good working relationship with landowners by demonstrating your commitment to responsible environmental practices.

ADVANCED DESIGN FEATURESfully enclosed and self-containeddurable, rust-free constructionU.V. resistantall hardware is corrosion-resistant stainless steelsloped collection tray provides natural drainage, making the unit more drainage effi cient and maintenance-freetapered polish rod washer drains migrating fl uid back into collection unitautomatic pumpjack shutdown also available360º installation

This is what our customers are saying...

I am pleased to say the operators are ecstatic about the new version of covers on this last round of containments. We tried some of your competitors containments and I surely wish we had not.In any case we will be putting in an order later in the fall and you will be our only supplier from now on.

Bruce MinersenerPLUS RESOURCESPembina Lead Operator

Page B15During the sum-

mer months, they could

have used a few more

crews. Th ey had two

from Brandon, four from

Virden, and three work-

ing on the pipeline, sub-

bing through Tri-City.

“We added three

crews to do it,” Deke

says.

“We’re anticipating

we’ll have enough work

for them to keep going

on regular oilfi eld work.

We’re looking at expand-

ing.”

Th at includes sur-

veying for mining claims

in northern Manitoba.

But they don’t have to

go too far to do mining

work – just a little west

and a little north, it turns

out.

Saskatchewan Party

Leader Elwin Herman-

son once said that dino-

saurs had died on both

sides of the Alberta/

Saskatchewan border,

yet from some reason

there was a lot more oil

and gas development on

the Alberta side. Simi-

larly, the inland sea dried

up on both sides of the

Saskatchewan/Manitoba

border. Th ere’s a major

potash mine just to the

west of that line, at Ro-

canville. It follows there

may be some potash east

of it too. “We’re doing

some potash work north

of here,” he says. “You

can see the [Rocanville]

plant from where’ we’re

surveying.”

Asked if there might

be a new mine, he says,

“I think in the next fi ve

years, we’ll see one pop

up.”

While there is likely

potash on both sides of

the border, working on

both sides is another

matter. In a highly regu-

lated fi eld, to work in

Saskatchewan requires

a Saskatchewan license

land surveyor. “We do

have an agreement with a

fi rm to do some work in

Saskatchewan now,” he

says. It involves sharing

resources and manpow-

er between southeast-

ern Saskatchewan and

southwestern Manitoba.

Manitoba Hydro is

doing a lot of new con-

struction of dams in

northern Manitoba, and

there’s ancillary trans-

mission line work to go

along with that. It takes

people willing to go in

the rough stuff and bat-

tle mosquitoes to do that

sort of work.

Th at’ll be in 40 above

and also in the extreme

cold. “It’s not a very

physical job,” he says, but

there’s a lot of walking.

Th e crew chief does a lot

of calculating, and there’s

plenty of public relations

work with landowners,

consultants and environ-

mentalists.

“A city crew will be

a half tonne and some

equipment,” Deke says.

“Ours will be one 4x4

with two quads on top.”

A family operation, surveying was taught in the backyard before going in the eld for the Baleys. Three of four brothers banded with father Ken Baley to start Trilogy, and later Lennon Trilogy Professional Land Surveyors, in Virden, Man. Deke Baley is operations manager.

Expansion still Expansion still being consideredbeing considered


Preeceville – With

exploration permits

spread throughout

southern Saskatche-

wan, PanTerra Resource

Corp has got one of the

strongest land positions

in the province for shale

gas development.

“We’ve got a mil-

lion acres,” says Fred

Rumak, president and

CEO.

Those acres have

been earned by spend-

ing $12.5 million, drill-

ing 36 wells and shoot-

ing seismic.

“Everything’s been

going okay,” Rumak

says, but adds it is a

long, drawn-out pro-

cess.

“We’re out in the

field as we speak,” he

explains, contacted in

mid-January.” We’re in

the completion phase,

perforating, fracturing

and testing.”

All the wells at this

point are vertical. “You

don’t drill horizontal-

wells until you know

what you’ve got verti-

cally.”

“Right now we’re in

our Moose Jaw block,”

he explains.

Panterra’s project

list, www.panterrare-

source.com/projects .

html, indicates work at

Foam Lake, Moose Jaw,

and Shell Lake. How-

ever, those locations are

a little off from where

the action is really tak-

ing place.

The Moose Jaw

block, for instance, is

actually in the area of

Davidson, Craik, El-

bow and Eyebrow, “All

in that area,” he says,

and has 16 wells.

“We’re in the ex-

perimental completion

stage. We’re getting

ready to go into them

in the spring time.”

The Shell Lake

block is actually closer

to Spiritwood.

“We did some geo-

physical work at Shell

Lake,” he says, includ-

ing seismic. There

are three wells in that

block, with nine town-

ships centred around

Spiritwood.

As for “Foam Lake,”

well, it ’s actually closer

to Preeceville, with

wells right outside of

the community. “We’ve

got 20 townships there,”

Rumak says.

Other operators in

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the Preeceville area in-

clude Nordic Oil and

Gas and Hunt Oil.

There are 17 wells

drilled by PanTerra in

the Preeceville area.

“We have some initial

results that are encour-

aging enough to go

back in,” he says.

Preeceville is not

exactly oilpatch coun-

try. The amount of in-

frastructure there is

minimal. But PanTerra

has spoken to Trans-

Gas, and there’s ample

pipeline capacity in

area, they’re told.

“It ’s all timing and

money, and money is

hard to come by right

now for a lot of people,”

he says.

Their capital was

raised in the spring

time, and they have

some flow-through

dollars. The company

is “prudently spending

to advance the project,”

he notes.

Some of those ex-

ploration permits are

coming due relatively

soon, in late 2010. “We

have five years to con-

vert,” he says, referring

to conversion from ex-

ploration permits to

leases.

Shallow and steadyThe shale gas Pan-

Terra is looking for

is shallow. “Basically,

they’re lower rate pro-

duction, but the re-

serves last a long time,”

Rumak says. A conven-

tional gas well might

have a five to ten year

lifespan, varying on

how it is produced.

Northern British

Columbia is getting a

lot of press for its bur-

geoning shale gas play.

BC is high impact,

high risk and high re-

ward, Rumak says. In

contrast, Saskatchewan

is lower impact, and

lower risk, but longer

reservoir life.

To develop Sas-

katchewan’s shale, “The

horizontals may be the

ticket,” he says. As for

multi-stage fraccing,

he’s not sure. “It would

probably be.”

“It gets very pricey.

We’re hoping we don’t

have to get into all

that.’

The geology may

allow for completions

at less cost, that may

not have as complicated

a stimulation package

as originally thought.

While PanTerra

is out there, trying to

get it started, they’ll be

looking for some mus-

cle at later stages in the

game. “We’ll be looking

for a partner once we

get to a certain stage,”

he says. “We can’t do it

on our own.”

“We’ve got to get

someone serious, not

Mickey Mouse.” He’s

referring to a senior

producer.

A million acres: now just to squeeze the shale gas out of it


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Arcola – Th ings may

have backed off a little

bit, but for TPZ Servic-

es Ltd. of Arcola, that

means they might actu-

ally be able to breathe a

little bit now.

TPZ Services Ltd.

is headed up by broth-

ers Mike and Brent

Heidinger.

Th ey provide general

oilfi eld hauling, includ-

ing pipe, rods, casings

and the like. “We stock

anybody’s pipe in the

yard that asks us,”Mike

Heidinger says.

Th e fl eet includes

four tractors, three pick-

ers, four bed trucks and

fi ve one tonnes, work-

ing principally within

100 miles of home.

TPZ has about 22

on staff, working out

of three shops in Ar-

cola and on 70 acres of

land. One shop is un-

der construction, across

the road from the main

building. It will pri-

marily be for parking

vehicles.

“We’ve been busy

for five to six years.

It ’s just been busier,”

Heidinger says. Christ-

mas, road ban season

and the Calgary Stam-

pede are about the only

times they have seen a

slowdown.

“Our customers are

talking 150 to 200 holes

they’re going to drill.

Between three custom-

ers, that’s 600 holes,” he

says, anticipating being

busy all summer.

He speaks of the

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ness, noting, “I’ve been

through this before, in

1997. We felt that, we

all did.

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now. We’ve been out

there for for 13years.

They guys we work for

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Scott Birnie of TPZ Services, Arcola, sorts pipe on a cold January day.


Anticipating a busy summer


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Breaker fracs its rst horizontal gas well near ProvostProvost – Breaker Energy Ltd. plans to invest $80

million this year on a cash fl ow budget and continue

its trend of delivering annual average production and

production per share growth in 2009.

Th e company’s original 2008 budget was set at

$70 million. It was subsequently raised to $174 mil-

lion.

Th e company said its diversifi ed high quality,

year-round accessible asset base provides fl exibility to

expand beyond the $80 million projected 2009 funds

from operations budget if economic conditions war-

rant during the year.

Average production for 2009 is estimated at

7,700 bbls of oil equivalent per day with a year end

production rate of 8,450 boe/d.

Th e company continues to demonstrate success

with its three major horizontal multi-frac resource

plays at Irricana, Provost and Fireweed, highlighted

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tal.

Th e company also completed it fi rst horizontal

multi-frac well in its extensive Viking gas resource

play at Provost.

Th e initial fl ow rate, with signifi cant frac fl uids

left to recover, was approximately 2.5 mmcf a day. Th e

well was drilled in 13 days and completed with seven

successful fracs.

Breaker said it has 80 potential horizontal drill

locations in its extensive inventory at Provost, with

a large operated infrastructure including a company-

owned gas plant and gathering system in this all-sea-

son accessible area. Current production in the area is

1,100 boe/d. Breaker also acquired 460 boe/d in its

fourth quarter.

At Irricana, Breaker has drilled and completed

its fi rst well outside of the original oil pool boundary.

Th e well recently tested in excess of 500 bbls of oil

equivalent per day, successfully extending Breaker’s

100 percent owned light oil development play.

At Fireweed, the company is currently drilling

the horizontal section of its fi rst horizontal multi-

frac well in its large original gas in place Montney/

Doig property in British Columbia.

Funds from operations for 2009 are estimated at

$75 million or $1.82 per basic share. Year-end net

debt is forecast at $103 million. Breaker will have an

unused bank line of $27 million in January 2009.

Th e forecast is based on a $67.75 (U.S.) per bbl

WTI oil price, a $6.85 (Cdn.) per mcf AECO gas

price and a Canadian dollar of 82 cents to an Ameri-

can dollar for 2009.


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C-SectionFebruary 2009

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By Geoff LeeLloydminster – It’s

back to the drawing

board, but the initial re-

sults of laboratory studies

by the Alberta Research

Council using sand pro-

duction to improve the

productivity of heavy oil

in horizontal wells look

promising.

Th e research, led by

ARC scientist Brigida

Meza, is based on the

need to adapt the proven

cold production recovery

process of vertical wells

to horizontal wells to

boost productivity and

cut costs.

Cold production us-

ing sand has boosted the

recovery rate of conven-

tional heavy oil primary

production to between

fi ve and 20 per cent in

vertical wells equipped

with special pumps.

“We have the ex-

ample in vertical wells

whereby, if you produce

sand, you can recover

more oil and extend the

life of the well,” said

Meza.

“Th e problem is if

you produce sand aggres-

sively in horizontal wells,

the well gets blocked so

you have to clean it and

that gets too expensive.”

Finding the right

slot size in well liners,

to match the grain size

distribution of sand and

fl uid fl ow rates could re-

duce the need for costly

sand cleanouts in hori-

zontal wells.

A controlled sand

production strategy that

increases the permeabil-

ity of the surrounding

formation could help to

optimize cold produc-

tion in horizontal wells

from unconsolidated

heavy oil reservoirs.

Meza updated guests

on her controlled sand

production experiments

during the Lloydminster

Petroleum Society Janu-

ary lunch at the Best

Western Hotel with her

“Sand on Demand” pre-

sentation.

“We are trying to

see if we can control

sand production and

produce a small amount

for a long time and get

the benefi t of improved

oil production and ex-

tend the life of a well,”

explained Meza.

“Th ere is a strong

interest in the develop-

ment of viable and envi-

ronmentally sustainable

bitumen/heavy oil re-

covery processes that are

less energy intensive and

use less water than steam

based processes.

“Injecting water or

gas to increase the pres-

sure of the reservoir or

steam with bitumen

comes with an energy

cost.

“It is important to

try to extend the life of

primary recovery be-

cause it’s less energy in-

tensive and more envi-

ronmentally sustainable.

“With primary, you

recover oil with the en-

ergy the reservoir has.

You don’t have to add

anything to the reservoir

to help fl uids come to

the well.

Th e research Meza

is doing at ARC is

aimed at increasing oil

production rates and re-

covery factors through

the managed production

of sand.

Page C3

The Lloydminster Petroleum Society hosted a January learn and lunch featuring a talk by Alberta Research Council scientist Brigida Meza titled “Sand on Demand.”

Photo by Geoff Lee

Sand research could boost heavy oil productivity in horizontal wells

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PIPELINE NEWS February 2009 C3

Scientist Brigida Meza, the guest speaker at the Lloydminster Petroleum Society January lunch helps Husky Energy host Ryan Roen with door prize draws.

Photo by Geoff Lee

Page C1Meza believes this approach has

the potential “to mitigate the decline

in oil production rates in horizontal

wells “in a manner similar to cold pro-

duction.”

Meza’s project is based on the

premise that a limited amount of sand

into horizontal wells, small enough to

avoid plugging, may help to increase

the permeability of the formation

around the wells leading to increased

production rates.

Meza used heavy oil samples from

Husky Oil in Lloydminster to closely

replicate fi eld conditions in the lab

studies.

“We did the research in Edmon-

ton with oil from Lloydminster be-

cause this is a very important heavy

oil area,” she said. “Th is is where cold

production was redeveloped in the 80s.

Our main aim at (ARC) is to develop

technology that can help Alberta.”

Th e research focused on param-

eters such as the eff ects of slot size,

confi ning pressure, fl uid velocity and

sand grain distribution on sand pro-

duction and strategies for enhancing

primary production in horizontal wells

through managed sand production.

In her presentation Meza report-

ed that based on the project fi ndings,

it is possible to generate signifi cant

increases in permeability around the

well through controlled sand produc-

tion.

“Th is improved permeability in-

cludes a reduction of skin eff ects and

the formation of high permeability

channels,” Meza said. “It also high-

lights that with proper slot size selec-

tion and correct handling of produc-

tion fl ow rates, that sand production

could be managed.

“Th is opens the possibility that

primary heavy oil production with

sand in horizontal wells could be de-

veloped into a technical and economic

success.”

Th e correct strategy Meza believes

will help heavy oil producers to “in-

crease oil production with reduced

energy and a smaller environmental

footprint with the secondary processes

they are currently exploring.

“Th e conclusion is that we need

to continue investigating but it’s very

promising,” she said. “It may be pos-

sible to do it, but you have to have the

correct slot size and you have to han-

dle your fl uid fl ow rate correctly.”

Meza noted that more research

has to be performed to support the

fi ndings “especially with numerical

modelling to forecast the impact of

managed sand production on oil pro-

duction rates.”

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Edmonton - Oil has fewer places to hide during a reservoir fl ooding, thanks

to Wavefront Energy & Environmental Services Inc. and its Powerwave technol-

ogy.

Powerwave uses an enhanced oil recovery process that is well suited for oil

companies looking to maximize their oil recovery and productivity in new and

mature waterfl oods in the current economic downturn.

Wavefront is a fl uid injection technology company based in Edmonton. Th e

company reported in December, 2008, that its year-long test using three of its

patented Powerwave injector tools produced an additional 14,500 barrels of oil

from 16 wells for a major oil company near Wainwright, Alberta. Th e test compa-

ny earned a reported net return of $1.2 million from the Powerwave application.

“Powerwave is an injection technology,” said Brett Davidson, president and

CEO of Wavefront. “We all know that oil companies inject fl uids to enhance

production. Powerwave is an optimization technique.

“Our technology is aimed at any fl ooding process. We have a means by do-

ing the fl ooding operation, to access what we call bypassed oil trapped in nooks

and crannies. Until Powerwave came along there weren’t many ways to get that

bypassed oil.”

Powerwave technology is designed into a downhole tool attached to the end

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move fl uid in a more uniform and accelerated front. An electrical solenoid opens

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“What this highly accelerated water does is – it doesn’t follow the path of

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fl ow paths to the injected water so the distribution of the injected water is greater.

It makes greater contact with the oil in place, and over time, that means increased

oil production from the overall reservoir.”

Wavefront has orders for more than 100 Powerwave tools, some of which are

now being used in a CO2 fl ood in the Gulf Coast of the United States. Sales reps

have been fi elding calls lately from companies in Syria, Venezuela, Saudi Arabia

and all regions of Canada.

“Th e reaction has been very positive,” said Davidson. “It all comes back to

companies wanting to maximize oil recovery.

“If you look at a heavy oil reservoirs in the Lloydminster area, companies are

lucky to get 20 per cent recovery. If you come to a company and say ‘with Power-

wave, you can increase your recovery to 30 or 40 percent,’ that’s signifi cant.”

Wavefront generates cash fl ow through the licensing of its patent. Th e com-

pany doesn’t sell any products. Th e minimum licence period is one year at a cost of

$36,000 per tool. Clients also pay for their service rig time to install the tool that

can pay for itself with the increased oil productivity.

“I have had a lot of investors call me and ask what the price of oil has to do

with Wavefront and at the end of the day, my answer is, companies are always

interested in maximizing productivity and profi tability regardless of the economic

conditions,” said Davidson. “Powerwave gives them the opportunity to do that at

minimal cost.”

Davidson formed Wavefront in Lloydminster in 1997 in partnership with

two professors with some early research focused on cold heavy oil production.

When their Powerwave technology was developed, the fi rst Powerwave project

was with former heavy oil company Wascana operating in Saskatchewan.

“Our roots have always been in heavy oil because that what we are most

familiar with,” said Davidson. “Heavy oil is the most diffi cult situation for the

technology to be applicable with.

Page C5

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bar on enhanced oil recoveryWavefront president and CEO Brett Davidson displays one his company’s patented Powerwave injection tools being used to en-hance oil recovery and productiv-ity in mature water ood.

Photo courtesy Wavefront

Page C4 “Th at’s where we got our fi rst results. Not only have we done fi eld-wide stim-

ulations like a waterfl ood, but we routinely do well stimulations or workovers on

wells in Lloydminster and Saskatchewan.

“We have a long history in the Lloydminster area on both sides of the border

in the area of well stimulations and enhanced oil recovery.”

Wavefront’s subsidiary company, Wavefront Sand Pumps & Rentals Ltd.,

located in Marsden, SK, is involved with well stimulations using Powerwave.

Wavefront is predominantly involved in older waterfl oods that have been go-

ing on for 10 years or longer but the company is also working on a new waterfl ood

for a Calgary-based junior oil and gas company in Saskatchewan.

Th e fi rst generation of Powerwave tools was trucked on two 53-foot long

trailers, but the latest model is a four foot long missile shaped object with a stain-

less steel body designed in various diameters from three to seven inches.

“We are working on other facets of waterfl ooding too,” said Davidson. “We

are looking at tools to pulse for steam applications. We have had a lot of calls from

companies that operate steam assisted gravity drainage applications (SADG) ask-

ing if the technology will work for applications injecting steams. We have used

Powerwave in the past to fracture coal bed methane beds.”

One of selling points for Powerwave is reduced operating costs. Powerwave

allows companies to increase the rate they inject water without having to increase

pump pressure and electrical output.

With the valve on the Powerwave tool closed, energy builds up like in the

kinked hose analogy, and when it’s open, there is an accelerated fl ow. Th at allows

the reservoir to accept the liquid more readily and reduce the amount of pressure

needed to inject the equivalent of fl uid.

“If you look at Powerwave compared to other technologies, it’s very cost ef-

fective,” said Davidson. “Powerwave gives the operator the ability to increase their

yield from existing oilfi elds with very little investment.

“If you want to get more oil, you could drill another well. Drilling is more

expensive than trying to implement Powerwave to determine the upside potential

on extra oil recovery.”


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Photos and storyby Geoff Lee

Marwayne –If first

impressions count, the

Village of Marwayne,

located at the cross-

roads of Highway 45

and Hwy. 897 on the

L l oyd m i n s t e r - C o l d

Lake corridor, scores

strongly on many

fronts. But don’t take

our word for it.

Last summer, Mar-

wayne took part in an

exercise called First

Impressions Commu-

nity Exchange (FICE)

with visitors from the

town of Weskatanau

who found Marwayne

to be a clean, friendly

and vibrant commu-

nity.

“In their initial

impressions, they no-

ticed what lovely flow-

ers we had; they loved

Marwayne lays the groundwork to grow with oil and gas

The No Need to Nock store, owned by Kari Rook-Whelan who stepped out for a photograph, houses the village’s mini-mall in a historic 1940 stone building.

our signage; they liked

our wide streets and

thought our entrances

were attractive,” said

village CAO Joanne

Horton. “They liked

the customer service

from businesses and

felt very welcome.”

The out of towners’

impressions were music

to the ears of Mayor

Jenelle Saskiw who is

working with council

and community groups

to implement the key

initiatives of a new

Marwayne Sustainabil-

ity Plan for the future

approved in October,

2008.

The plan stresses

the need to develop and

market a new industrial

park, serviced residen-

tial lots and small town

core values to attract

new oil and gas, agri-

culture and retail busi-

nesses and families.

“Councils come

and councils go, and

we wanted to make

a plan so that things

could keep rolling 20,

40 and 50 years down

the road,” said Saskiw.

“The number one pri-

ority is to get the south

industrial subdivision

going. Once we have

that, everything else

will fall into place.

“Having a new in-

dustrial park can re-

ally increase our busi-

ness base and keep this

community vibrant. We

are a young commu-

nity and it ’s essential

that we get this park up

and running so we can

maintain the longevity

of the community.”

Page C7


““

””

Marwayne boasts a wide and busy main street. The village is on the well travelled Lloydminster to Cold Lake corridor.

Cheryl Eikeland who owns the historic Marwayne Hotel built in 1926 hams it up with village CAO Joanne Horton. The interior of the hotel is lled with historic photographs of Marwayne.

Page C6Marwayne annexed

a quarter section of land

from the County of Ver-

million River in July,

2008, to add 51 much-

needed industrial lots.

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Th e lots will be sold by

the land owner and the

village will determine

how to fi nance servicing

in the coming months.

“Council identifi ed

the need to fi nd some

new land,” said Horton.

“We know we are lack-

ing in our non residential

assessment. We need the

added tax base so people

can live and work here.

“We are just starting

to determine the target

market of the new sub-

division,” said Horton.

“We are thinking it’s oil

and gas service compa-

nies but we don’t know

for sure. We are just in

the process of doing the

planning for the subdivi-

sion.

“We are checking

on the pricing and ask-

ing what people can af-

ford and what do people

want. Do they want fully

serviced lots or partly

serviced? We have to de-

termine how to fi nance

this and determine what

the market will dictate.

We are grappling with

all that.

“Interest in lots is

coming from oil and gas

service industries. Th ey

want to locate here be-

cause Marwayne is on

that corridor between

Cold Lake and Lloyd-

minster.

“We have several

oil and gas companies

here. Th ey are located in

the county but they are

strong Marwayne sup-

porters.”

Marwayne’s major

employers include Arc’n

Spark Welding, ITS

Contaminated Trans-

port, Riverhill Enter-

prises Ltd., T & T Oil-

fi eld Services Ltd., and

Cargill Limited.

Mayor Saskiw says

the village is looking to

grow its agriculture base

“but oil and gas would

be perfect because we are

that corridor from Lloy-

dminster to Cold Lake.”

Marwayne is also

one of the few com-

munities in oil and gas

country with an abun-

dance of serviced resi-

dential lots. Th ere are

22 available lots in the

Marwayne Estates Sub-

division where prices

range from just $25,000

to $52,000. Lots are

tax-free for the year

they are purchased.

Page C8

We are just starting to

determine the target market

of the new subdivision

- Joanne Horton

Planning on growth of oil and gas sector

“

”


Mayor Jenelle Saskiw holds up a report of positive rst impressions of Mar-wayne recorded by invited visitors from Weskatanau last summer.

Page C7“Last year, we had six new hous-

es built. For a town with only 225

houses, that’s a lot of new houses,”

said Horton. “We are hoping we have

enough inventory for a few more

years.”

New housing includes a mix of

single detached

homes, mobile

homes, RTM homes

and a rental duplex

that is new to the

market.

Marwayne has

a population of 569

and has been grow-

ing by five per cent a

year, just higher than

the provincial aver-

age. The commu-

nity boasts a mod-

ern K-12 school, a

seniors’ residence, a

public library, a volunteer fire depart-

ment and a community hall.

Recreation facilities which are

run by volunteers from the Mar-

wayne Agriculture Society include

an arena, a curling rink, an outdoor

skating rink and tennis courts.

“We have great recreational fa-

cilities” said Saskiw. “Our vision is to

see a recreational area developed in

the south part of town. Everything

would be a one-stop shop from a new

or improved community hall to our

ball diamonds, hockey rink and curl-

ing rink all in one (centralized) area.

“We are a

young vibrant

community so I

think if anybody

came in and had

a look what is of-

fered here, they

would be very ex-

cited about mov-

ing here.”

“We have

been asking new-

comers why they

relocated here

and they say it’s

because this is a

friendly place,” added Horton.

“Because of FICE, I can tell you

what people’s first impressions are of

our town. The first impression is that

we are busy and our businesses are

active and we are friendly.”

Page C9

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- Joanne Horton

First impressions have been leaving their mark


Marwayne Mayor Jenelle Saskiw brought her young daughter, Orysha to work to demonstrate her town is a young and vibrant community.

Joanne Horton, Marwayne’s CAO pours over the plans for a new 51 lot industrial park for the south end of the village. The village hopes to attract new oil and gas service companies.

Page C8Th e FICE report card has led to actions plans for Marwayne’s sustainability

blueprint to identify opportunities for new retail stores, downtown revitalization,

tourism and heritage attractions and recreational facilities.

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By Geoff LeeLloydminster-Th rowing rocks at the house can

be relaxing or competitive. Th ese are the two ways

curlers can approach the 42th annual Lloydminster

Heavy Crude Open Bonspiel to be played March 11

to 15 at the Lloydminster Curling Club.

Th is is one of the biggest open oilfi eld bonspiels of

the season and it attracts competitive and recreational

curlers from all parts of Alberta and Saskatchewan

vying for trophies and just plain fun.

Among the serious curlers is organizing chair

and defending A-event champion John Stanyer, who

works for works

for Weatherford.

Stanyer plays third on

a rink skipped by Doug

Zingel from Wild Rows

Pump Services Ltd., along with

second Martin Code from Husky

Oil Ltd. and lead Doug Larson from

Devon Canada Corporation.

“Doug Larson and I have curled to-

gether for four or fi ve years and I’ve curled

with Doug Zingel several times,” said Stanyer.

“We have to come back and defend our title. Hope-

fully, we will win all of our games.”

Stanyer has also won the Maidstone Oilmen’s

Bonspiel in past years with other curlers. He plays

three times a week in league play up to Christmas

and twice a week the rest of the season. He says at 50

it’s getting hard to curl, let alone win.

Ninety six teams will play off this year, the same

as in 2008, but down from the all-time high of 112.

To enter, 100 per cent of a player’s income must come

from oilfi eld employment.

“Over the years, it’s built up a following,” said

Stanyer. “Last year, we had trouble attracting teams

for some reason, so we cut it back to 96. Th is year, we

decided to do that again.

“One of the reasons we did that is to hold all the

curling in Lloydminster instead of having to include

another rink out of town. With everything at one

venue, it’s easier to manage.”

Th e bonspiel is a tournament format and each

team is guaranteed four games in eight respective

events with the serious curlers like Stanyer duking it

out in the A and B events.

Page C11

First Truck Centre was the winner of the B-event. The tournament will celebrate its 42nd season March 11-15 at the Lloydminster Curling Club with up to 96 teams of competitive and recreational curlers.

Photo by B&R Photography Ltd - Lloydminster

Ninety-six teams to sweep into Lloyd for the 42nd heavy crude bonspiel

Over the years, it’sbuilt up a following

-JohnStanyer


John Stanyer, played third on winning A-event team of Weatherford BMW in 2008. The team will be back to defend its title. Stanyer, chair of the upcoming 2009 Lloydminster Heavy Crude Open Bonspiel,

Photo by B&R Photography Ltd - Lloydminster

Page C10“Th e way it works, if

you lose your fi rst game,

you drop down to the sec-

ond event. If you lose your

second game you can drop

into the third or fourth

event etc. If you lose your

fourth game you are out of

the spiel,” he explained.

“We give prizes for

the fi rst four positions in

each event. Th e prizes we

get from companies we

use as door prizes. Entry

fees are used to purchase

prizes too. If we have

anything left over, we can

donate to the curling club

and we have done that.”

Stanyer’s main role on

the organizing committee

is to handle the registra-

tion and invoicing.

When contacted in

mid-January he admitted

he was leery about entry

numbers because of the

economy. “Time will tell

on that,” he said. “We can’t

really get a handle on it

until we see how the en-

tries are doing.

“We’ve had teams

from Calgary and Ed-

monton and Kindersley

and Elk Point. It’s a good

economic boom for the

town. You get guys stay-

ing at the hotels. We have

had good representation

from oil companies. It’s

a chance to do some net-

working but everyone at

that time of the year is

looking at having a good

time and relaxing. No

sales are taking place.

“Th e March 11 start

is a good time for bon-

spiel. You’re getting into

break-up. Usually the oil

companies have had a

pretty good run through

the year and it’s a time to

relax a bit.”

One of the highlights

of the event is the annual

banquet and a presenta-

tion to the oilman of the

year who is yet to be an-

nounced by the organiz-

ing committee.

Th e oilman of the

year is also feted dur-

ing an opening ceremony

the evening before the

banquet. More than 700

people are expected to at-

tend the awards banquet

at the Stockade Conven-

tion Centre.

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Lloydminster Heavy Crude bonspiel

C12 PIPELINE NEWS February 2009

By Geoff Lee

Calgary – Crescent Point Energy Trust has

strengthened its presence in the Bakken play in

southeast Saskatchewan with the completed ac-

quisition of Villanova Energy Corporation in mid-

January.

Villanova is currently producing approximately

1,750 boe/d of high quality light oil in the Bak-

ken.

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undeveloped land holdings in the Bakken to 416

net sections with the addition of Villanova’s 26 net

sections of undeveloped Bakken land.

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tion is in the southeast Saskatchewan Bakken

play.

Th e deal also provides Crescent Point with

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Crescent Point currently has more than 10

years of drilling inventory, equating to more than

$1.8 billion of development capital projects to

maintain current production.

Th e Villanova acquisition was fi nalized for a

total consideration of 4.625 million of Crescent

Point’s trust units plus the assumption of approxi-

mately $23.6 million of Villanova debt. Total con-

sideration is approximately $123.1 million based

on a value of $21.51 per trust unit.

Crescent Point boosts its Bakken resources with Villanova purchase

Look both waysOne of the busiest intersections in Lloydminster for oil eld and industrial truck traf c is this turn-off from Highway 16 to 62 Ave. leading to one of the city's main industrial parks on the Alberta side of the border.

Photo by Geoff Lee


NW Sask - for all of your advertising needs contact: Ph: 780.875.6685 Fax: 780.875.6682


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Hurry hard and register to thePIPELINE NEWS February 2009C14

By Geoff LeeMaidstone - Hurry

hard and register today

for the eighth annual

Maidstone Oilmen’s

Bonspiel March 4 to 8.

Th e Maidstone Curl-

ing Club can handle up

to 28 teams and will wel-

come back last year’s A-

event squad skipped by

Monte Armstrong, one

of the owners of Granite

Oilfi eld Services Inc. in

Lloydminster.

“It’s a good little

spiel. It’s lot of fun,” said

Armstrong who is also

on the executive of the

Lloydminster Curling

Club.

“When you play in

a small town bonspiel

there’s a good atmo-

sphere. Th ey put on a

good event and it helps

their curling club. It’s

important to support

those.”

Aside from Lloyd-

minster curlers like Arm-

strong, the bonspiel at-

tracts teams from Unity,

Turtleford and St. Wal-

burg. Cal Donald, the ice

maker, wants readers to

know it’s one of the more

fun bonspiels.

It’s also a major

fundraiser for the curl-

ing arena which has just

three sheets of ice and

needs some TLC as the

rink is showing its age.

“We’ve fi xed our

rocks. We bought a nip-

per (ice maintenance

tool) for the ice and

used profi ts for general

improvements to the

curling club,” explained

Donald who gets lots of

practice making perfect

ice for the oilmen’s bon-

spiel.

“We have our regular

curling and we have an

open bonspiel, a ladies’

bonspiel and a youth

bonspiel so it keeps you

busy. I also work at the

Lloyd curling club too.

It’s a full time job. I also

farm.”

To qualify, each team

has to have three of its

four players work for

an oil-related company.

Mixed teams are wel-

come. Th e entry fee is

$250 per team and each

team is guaranteed three

games.

Page C15

The 2008 Maidstone OIlmen’s Bonspiel included a few chuckles courtesy of comedian Jody Pe-ters who performed at the banquet.

Photo courtesy Danica Lorer

The Granite Oil eld Services team won the A event of the 2008 Maidstone Oilman’s Bonspiel. The event was sponsored by Keranda Industrial Supply. Left to right are Mike Armstrong, Tyson Armstrong, Mickey Armstrong and Monte Arm-strong.


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Maidstone oilmen’s bonspiel

Mickey Armstrong res a rock with sweeper Mike and Tyson Armstrong ready to brush the stone to the mark.


Page C14“We normally get anywhere between 24 and 32

teams but we are shooting for 28,” said Scott Ow-

ens, president of the curling rink and tournament

committee chair.

“It makes for an even draw and we can handle

that many teams. We’ve fi lled it mostly every year.”

By contrast, the Lloydminster Heavy Crude

Open Bonspiel that follows Maidstone, March 11

to 15, has 96 teams on eight sheets of ice. Th e entry

fee for the big Lloyd event is $400 per team.

Th e Maidstone Oilmen’s bonspiel is the only

oil-related tournament of the year in town and Ow-

ens notes it’s good for the community and the curl-

ing rink too. He thinks the economic downturn will

have little bearing on tournament entries.

“I don’t think the economy will have a negative

impact on the tournament,” he said. “If anything,

we will get more people interested in curling if they

have a lighter workload.”

Donald says the bonspiel is a boon for motels,

hotels and restaurants in town. “People stay over

and they support the restaurants. Our lunch counter

at the arena does very well too,” he added.

“We have a bar and a live Calcutta auction. We

auction all the teams off so people can do a bit of

gambling. People guess who is going to win the

bonspiel. We have a banquet on the Saturday night

with a comedian or a hypnotist. So it’s a full week-

end. Th ere are trophies and prizes every year. Th ere

are nice prizes.

“It ends on a Sunday and the Lloydminster

bonspiel starts on the following Wednesday, so it’s a

good warm up for Lloyd bonspiel. Some guys like to

warm up and play at Maidstone then they are ready

to play in Lloyd.”


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By Geoff LeeIt’s the frac being heard around the world by Packers Plus. Th e completions tech-

nology company is applying its multi-stage fracing technology throughout the world

as oil and gas companies learn how it re-energized the oil and gas industry in tight

formations like the Bakken and the James Lime.

Packers Plus has completed open hole multi-stage fracs for companies in West

Africa, Mexico, the Middle East, Romania, Argentina and most recently for Petro-

china and another client in northern China in partnership with Schlumberger an-

nounced in December.

“We took our multi-stage fracing equipment over there in conjunction with

Schlumberger,” said Jim Athans, Packers Plus international operations manager in

Houston, Texas. “We did some continuous stage fracing for Petrochina and we en-

chanced their production.

“Schlumberger is the one that approached the Chinese oil companies and showed

them this new completions technology just like we are using in other parts of the

world. “It is really enhancing their gas production. Th ey are getting it back tenfold.”

In a December news release, Athans described the project as “a textbook job and

the entire well operation went very smoothly. Th e well exceeded the customer’s ex-

pectations.”

Packers Plus multi-stage fraccing system, greatly increases the eff ectiveness of

acidizing and fracturing operations by producing a distributed placement of stimula-

tion fl uids throughout the horizontal zone.

“If you are planning on doing an acid frac or a sand frac you want to do a continu-

ous operation to save you some rig time,” explained Athans. “What you are doing is

individually fraccing each zone. Th erefore you are getting a better penetration instead

of doing several zones at one time where you are limited on your penetration because

as you know fl uid will go to the least resisted area.”

Th e Packers Plus foray into China in follows close on heels of a open hole com-

pletion in Romania noted earlier in 2008. Oil and gas companies in Indonesian could

be next in line in 2009.

“We have achieved success across North America this year and have found that

our technology is becoming widely accepted in the marketplace,” reported Packers

Plus president Dan Th emig in a news release. “Because of this we are seeing that

translate into more international work as well.

“As we complete more wells in diff erent formations across the globe, we continue

to demonstrate the versatility of our technology. Th is results in high-value production

results for the customer.”

Working internationally is also helping Packers Plus to stay busy and competitive

in an economic downturn.

“If you look back on your downturns, you will see that international business has

stayed up,” said Athans.

“We are focused on Canada and the U.S. as well. Our work has not slowed up.

Our company doesn’t anticipate this downturn to last very long. We are still gearing

up and we’re still in the hiring mode. Everyone (globally) has plans to extract more

oil and gas.

“In the Congo we are using our technology for oil and in china it’s oil and gas. In

Argentina it’s gas. You can use it for oil and gas. It works in tight formations and other

formations. You’re going in and fracturing the zone and opening it up.”

Today, Packers Plus technology is also proving itself in formations such as the

Montney, Barnett Shale, Marcellus and Shaunavon and other fi elds throughout the

world.

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By Geoff LeeLloydminster - Lloyd-

minster could be the best place to shelter from the economic eff ects of low oil prices, a slump in housing starts and ris-ing unemployment that is having a big impact in other parts of the coun-try.

Th e buzz on the street is that Lloydmin-ster is weathering the economic storm better than most places so far.

Ward Read, the city’s community develop-ment offi cer and leading real estate personalities, Scott Musgrave, from Musgrave Agencies Ltd., and Keith Weinbender, broker and co-owner of Century 21 are among those who support those convictions.

Here’s a selection of some of their statements and opinions on the lo-cal economy and the im-pact of the oil and gas economy on real estate in Lloydminster.

Ward Read - Community

development offi cer, City of Lloydminster

“As we have seen, with the price of oil go-ing down, drilling activ-ity has been reduced. We have to see how Alberta’s new royalty structure plays out in the long term. We are relatively doing quite well com-pared to the rest of the world.”

“Th e retail sector shows good strength. By the spring, new re-tail developments will take place at the Power Centre at the west end of

Lloydminster.”“In October (2008)

we were named by the Canadian Federation of Independent Business and the Financial Post as the number one commu-nity of any size in Cana-da for small business. A lot of our oilfi eld service businesses would fi t into that small business type.”

“Permits for renova-tions and improvements in residential, commer-cial and industrial prop-erties were up with this year (2008).

“I am still getting calls from investors in Ontario and so forth about multi-unit resi-dential real estate.”

Page C18

Lloydminster weathering the economic storm better than most

Construction continues on a new condo development at the west end of Lloydminster.Photo by Geoff Lee

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Keith Weinbender – Broker and co-owner

Century 21 “Real estate hit its

peak in the fall of 2008.

We have seen a 10 per

cent adjustment since that

time. It is hard to judge

where we are at. Th is time

of the year is our slowest

time even when things are

really busy.”

“We have noticed is

that things have started

to pick up again in the

last few weeks. Buyers are

starting to buy. Th ere are

some good deals out there.

It’s been a buyers’ market

for the past few months.”

“In 2009, I am look-

ing at getting back to a

more even marketplace

between buyers and sell-

ers. Buyers have been cau-

tious because they have a

lot to choose from. A year

and a half ago, you may

have had a choice of fi ve

homes. Now you have a

choice of 20.”

“If you have to be

anywhere to ride out the

slower economy I can’t

think of any other place

to be.”

Scott Musgrave – Musgrave Agencies Ltd., real estate &

development“In Lloydminster, we

are tied to the oil patch. As

the oil patch slows down,

so does real estate.

“In terms of values,

the values have dropped

since the peak in 2007, but

they are still above where

they were in 2006 and

the year previous to that.

Sales in January 2009 will

not exceed 2007 (for the

same month) for our fi rm,

but they will exceed that

of other years. Sales have

slowed down but it’s not a

crisis.”

“About 25 per cent of

our clients are in the oil

patch.”

“We haven’t seen any

repossession of a house

or panic in house sales. I

think the fear of the stock

market has more eff ect on

real estate than the price

of oil. Th e best dollar for

oil we had was last spring.

Th at should have been our

best time for real estate if

it were an embedded re-

lationship. In 2007, there

was an attitude that the

best thing to invest in was

real estate.”

Page C19

Lloydminster continues to show strong growth commercial and retail real estate. Another new retail store is under construction at the new Power Centre across from Home Depot on the west end of the city. New construction is expected this spring.

Photo by Geoff Lee

Lloydminster continues strong growth


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New home constructionNew home construction has slowed along with the economy, but builders are using the cooling off period to catch up on a backlog of single home starts in 2008. Permits for renovations for all types of properties rose sig-ni cantly in 2008.

Photos by Geoff Lee

“In 2008, we dealt

with more traditional

buyers instead of specu-

lative buyers. In terms

of overall sales, 2008

was good and was the

second best in terms of

pricing.”

“Commercial devel-

opment is as strong as

it’s ever been. We have

new retailers looking

at Lloyd. We have sold

six raw lots in January

(2009) to people who

want to build homes.”

“Apartments are still

hard to fi nd today. Th ere

is a future need for oil.

At some point, that price

will be strong again. We

are the third youngest

community in Canada.

Employment income is

higher than the national

average. It’s a solid com-

munity. Over the long

haul, Lloydminster is

one of the best invest-

ments in Canada.”

New retailers looking into building inLloydminster in 2009

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Ian Kossey, head of the Heavy Oil Oper-ations Technician program at Lake-land College, says job prospects for students are strong thanks in part to the grow-ing use of steam to recover oil.

Power engineer-ing student Trent Rawluk takes notes while in-structor Terry Hagell checks gauges on the Lakeland Col-lege laboratory steam turbine. (submitted)

Steam usage drives demand for By Geoff Lee

Lloydminster –Lakeland College’s heavy oil operations

technician program continues to generate steam for stu-

dents on a number of employment fronts, particularly

in the heavy oil sector, despite a noticeable cooling of

the economy.

Th at’s the opinion of HOOT program head,

Ian Kossey and power engineering instructor,

Terry Hagell who had a bit of breathing room

in January with students on practicum, to speak

about job prospects for students.

“Even with oil coming down, these oil fa-

cilities are not going to turn off the switch and

shut down,” said Kossey. “Th e students taking

the course are looking at the long term. Th e de-

mand for these jobs is still there.

“I just got an e-mail from Esso. Th ey are

looking for 48 people right now. About 20 jobs

are for oilfi eld positions involving some work

with steam and 28 positions working in oil

plants.”

Th e HOOT program trains students in the

basics of electricity, process control/instrumenta-

tion, thermodynamics, steam generation and water

treatment combined with heavy oil operations .

Th ose who pass the provincial 4th class power engi-

neering exam can obtain high-paying entry level jobs in

refi neries, hospitals, oil and gas facilities, power generating

plants, and pulp mills.

“We’ve go 40 students in our program consistently,” said Ko-

ssey. “It’s over-subscribed every year by double that. It’s a unique pro-

gram. Th e course combines both power engineering and heavy oil courses.

“You can get into oilfi eld maintenance, operating plants and batteries and

you can get into pulp and paper or into a school or a hospital. You can get into a

lot of careers with this. About 60 percent of the course is power engineering, and

using that, you can work wherever they make steam.”

Graduates can earn more than $60,000 in their fi rst year training

to operate and maintain a variety of industrial equipment like boilers,

turbines, generators, pumps, compressors, pressure vessels and com-

plex controls.

Th ey head into the workforce with certifi cation for defensive driv-

ing, fi rst aid, CPR, H2S, confi ned space entry, WHMIS and transpor-

tation of dangerous goods.

“You can come out of this course with very little investment for

time and money and go out and the return on your money is phenom-

enal,” said Hagell who worked for Husky for 19 years before joining

the power engineering faculty this school year.

Hagell says with Husky, new HOOT grads assigned to operations

might work on the oil side or the steam side with thermal fl oods. With

the upgrader, they could be working on one of the process units, the

distillation units or the hydrocracker or hydrotreater units.

“Th e industry is crying for good skilled people that have the right attitudes,” said Hagell. “What

companies are looking for in attitude are people with the ability to work on their own and in a team role.

You have to have the attitude that you will keep learning.

“What they require now at most of these plants is a 3rd class power engineering ticket. What they do with

new hires is have them sign a learning contract to meet expectations. Two of those expectations would be to

upgrade to a 3rd class and be qualifi ed to work in a unit that you’ve been assigned to train in.

Page C21


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Lakeland College H T grads

Students Terry Pe-ters and Tanner P i d w e r b e s k y work on an as-signment in the boiler room lab. (submitted)

Page C20“If you are working at the hydrocracker at the upgrader, you are working with 22,000 kPa of hydro-

carbons mixed with hydrogen at 430 C. You need to know what you’re doing.”

While some oil companies have laid off employees, Hagell thinks low commodity prices and

the global recession will have little impact on the demand for HOOT

graduates.

“Th e amount of energy we use keeps increasing and the amount of

energy that’s out there in fossil fuels keeps decreasing,” he said. “Th ey

are talking about other sources of energy like nuclear power, but it’s all

using the same type of equipment. Th ere will always be jobs no matter

what the source of energy is.”

Kossey meanwhile, says another factor behind the continued

recruitment of HOOT grads by the heavy oil sector is the growing use

of steam for enhanced oil recovery.

“As long as we have a demand for oil, steam is good, he said. “Power engineering and

SAGD (steam assisted gravity drainage) is going to be increasing. It’s the way of the future as

far as getting the oil out of the ground.

“It’s all about recovery rates. Right now, we recover about seven to 10 per cent of heavy oil

with cold oil production. With steam, the recovery rate can go as high as 30 to even 60 per cent

depending on the formation.”

HOOT uses a working boiler at Lakeland as a teaching tool. “We get students to run it,” said Ko-

ssey. “It’s not a huge scale but it’s a good starting point to teach them what power engineering is all about.

“Th e practicum is important. Students are out in the fi eld and are getting their steam time. Th ey come

back in April for another four months of class time. We have the lab, but for them to see all of the equipment

that they will eventually be working on, brings it all together.”

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Calgary – EnCana Corporation is off ering a huge cash reward of up to

$500,000 for information leading to the arrest and prosecution of whoever is

responsible for four bombings of EnCana pipelines facilities in the past three

months near Dawson Creek, British Columbia.

Th e most recent bombing occurred on Jan. 4, at a metering shed on an En-

Cana well site south of Dawson Creek. Two of the bombings, under investiga-

tion by the RCMP, occurred at pipelines and one at a well head.

“Th e safety of our workers and the people who live in the communities

where we operate is of paramount importance,” said Mike Graham, EnCana’s

executive vice-president & president, Canadian Foothills division in a news

release.

“Th at’s why we are putting up this reward to help stop these bombings and

end the threat that they pose to people in the Dawson Creek area.

“Whoever is responsible for these bombings has to be stopped before some-

one gets hurt. We hope this reward will encourage anyone who has knowledge

of those responsible for the bombings to come forward and help put an end

to these dangerous attacks that threaten the well-being of our staff , those who

work for us and the residents and communities in the Dawson Creek area.”

Anyone with information about these bombings who want to qualify for

the reward are encouraged to contact the RCMP.

Encana posts $500,000 reward for tips on B.C. bombings

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Calgary – Canadian Phoenix Resources Corp. is coming off what CEO Th omas

Stan says in his guidance statement is “its most exciting quarter” and has set a capital

budget of approximately $37 million in 2009 with estimated cash fl ow of $8 million.

“Canadian Phoenix has cash in the bank, undrawn credit lines, and a structure

that will enable us to continue to consolidate companies and assets,” stated Stan.

Canadian Phoenix’s production forecast for the year is approximately 2,389

bbls of oil equivalent per day comprised of four per cent light oil and natural gas

liquids, 29 per cent heavy oil and six per cent natural gas.

“While both the fi nancial and commodity markets have been going through a

turbulent period, it is a time of opportunity and we appreciate the ongoing support

of our shareholders,” said Stan.

Stan says Canadian Phoenix plans to grow in 2009 by “actively

pursuing acquisition opportunities as juniors are forced to either

seek creditor protection or sell off key assets to stay in business.

“As they are brought under the Cana-

dian Phoenix umbrella, we can and will pro-

vide the capital and technical expertise to in-

cubate these businesses for a liquidity event

in the future, at a time of higher commod-

ity prices and improved market fundamentals.”

In the third quarter of 2008, Canadian Phoenix

made news with the acquisition of a 50.01 percent investment interests

in Serrano Energy Ltd. and a 56.51 percent interest in Marble Point Energy Ltd.

Marble Point’s operations are focused on shallow natural gas production in

the Dodsland area of Saskatchewan. Th e company purchased approximately 1,000

BOE per day of production in the Dodsland area in April 2008 through two sepa-

rate transactions.

In the third quarter, Marble Point drilled 20 natural gas wells on the prop-

erty adding production of 225 BOE per day. Th e average production for the three

months ended Sept. 30, 2008 was 1,712 BOE per day (93 percent natural gas).

Marble Point intends to further develop these lands through down spacing

and the drilling of additional wells and is currently drilling an additional 120 wells

on the lands it acquired and from its own drilling inventory, at four wells per sec-

tion spacing.

In light of the current economic uncertainty and fl uctuation in commodity

prices, Marble Point is focused on future prices before deciding on its 2009 capital

program.

Marble Point also has cash in the bank and a $42 million credit facility with a

chartered bank which has been partially drawn to repay that debt.

Serrano’s operations are focused on heavy oil in the Lloydminster area of Sas-

katchewan and it has an interest in the Blackrod area on the southern end of the

Wabiskaw oilsands deposit south of Fort McMurray.

By the end of the third quarter, Serrano had drilled 49 wells in 2008 and was

averaging production of 826 BOE per day for the quarter.

Serrano minimized capital spending during the fourth quarter and activity

will be restricted to only those commitments it had previously entered

into in 2009 given low commodity prices.

Serrano raised $7 million through a fl ow-through share private

placement which closed Nov. 19, 2008. In addi-

tion, Serrano has agreed to transfer, pending reg-

ulatory approval, a 15 percent working interest

in the Blackrod oilsands leases to Pearl Explora-

tion and Production Ltd. in exchange for certain

capital commitments and the return to treasury

of 4.04 million Serrano common shares held by

Pearl.

Following the completion of the private placement and the transaction with

Pearl, Canadian Phoenix will hold 56.5 percent of the issued and outstanding

shares of Serrano.

Canadian Phoenix completed a workover on a well in the Campbell area of

Alberta that increased production to approximately 235 BOE per day.

Th e company is also currently engaged in an exploration program with in-

dustry partners to participate in the completion of two exploration wells, drill two

more exploration wells, and shoot a three-dimensional (3-D) seismic program in

the Samson area of central eastern Alberta.

Canadian Phoenix will also participate in the drilling of three more explora-

tion wells - one in the Klua area of British Columbia, one in the Parkland area of

Alberta and one in the Fourth Creek area of Alberta.

Canadian Phoenix to rise higher from the ashes of the economy


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By Geoff LeeShaunavon – Penn

West Energy Trust will

focus its 2009 oil drilling

program on its produc-

tive Lower Shaunavon

resources in southwestern

Saskatchewan on reduced

corporate spending be-

tween $250 million and

$325 million in the fi rst

half of 2009.

“Th e primary drilling

focus in Saskatchewan

will be in the Shaunavon

area,” said Penn West

CEO Bill Andrews. “We

started already.”

“We’re basically con-

tinuing a program that

we’ve had ongoing for

awhile. We will have one

or two rigs drilling in

there full time over the

next year. Th e plan this

year calls for about 35 to

40 new wells to be drilled.

Th at’s about the same as

last year.

“We like the area. It’s

lighter oil and it’s a de-

cent production rate. We

will use horizontal drill-

ing and multi frac com-

pletions.”

Th e plan to “aggres-

sively develop” the Lower

Shaunavon is in keeping

with the company’s plans

to emphasize low-risk

projects with a focus on

low-cost volume addi-

tions through production

optimization and low to

medium risk drilling fa-

vouring light oil and nat-

ural gas

over

heavy oil.

“Shaunavon is a play

that was developed in the

last three to fi ve years and

it’s seen a lot of activity,”

said Andrews. “Four or

fi ve companies are active

in the area.” As for gener-

ating cash fl ow, Andrews

says Shaunavon “is good

that way.”

Penn West’s fi rst half

capital spending budget

for 2009 is a reduction of

approximately 50 percent

from fi rst half 2008 cap-

ital expenditures. Th e

trust also announced

a cut in its distribu-

tions to 23 cents per

unit from 34 cents

subject to changes in

commodity prices, pro-

duction levels and capi-

tal expenditures.

Penn West

said in its

c a p -

ital spending news release

that it anticipates its 2009

capital expenditures will

total between $600 mil-

lion and $825 million.

Records show 2008 capi-

tal spending likely ex-

ceeded $900 million.

In announcing its

50 per cent reductions

to fi rst half spending this

year, the trust stated in-

dustry costs have not yet

declined to the same ex-

tent as commodity prices.

Th e company plans to

limit its near-term capital

expenditures until supply

and service costs are more

refl ective of current com-

modity pricing.

Penn West said it is

positioned to maintain

fi nancial fl exibility as it

evaluates opportunities

available to it in 2009 and

beyond.

“We always have a

reasonable (drilling) pro-

gram in and around the

Kindersley area so we

will continue that,” said

Andrews. “Up in Lloyd-

minster area, we won’t be

doing a lot of drilling but

we will be doing a lot of

optimization work.”

Page C27

Penn West focuses drilling in Shaunavon area

Penn West CEO Bill Andrews


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STRETCH, STRENGTHEN, BALANCE AND BREATHE

By Geoff LeeAxe Lake – Oilsands

Quest Inc. resumed work

in January on its overbur-

den study and reservoir

test activities at test sites

1 and 3 at Axe Lake in

northwest Saskatchewan.

Th e project follows

the preliminary engineer-

ing of a 30,000 barrel of

oil per day commercial

project reported in Pipe-line News last August.

Building facilities and

key equipment are now in

place for phase one of the

test program at the test

site 1, including power

and steam generators,

water treatment handling

equipment and process

control facilities.

Th e company is lead-

ing the establishment of

Saskatchewan’s emerging

oil sand industry in ad-

dition to developing its

contiguous Raven Ridge

bitumen properties in Al-

berta.

McDaniels & As-

sociates Consultants Ltd.

estimated the total discov-

ered and undiscovered oil

at Raven Ridge and Axe

Lake combined at up to

6.5 billion barrels in 2008.

Oilsands Quest

properties cover more

than 730,598 acres over

two provinces. Th e com-

pany also has more than

489,730 acres of oil shale

land in the Pasqua Hills

area in east-central Sas-

katchewan.

Work also re-started

in January on Oilsands

Quest’s 2009 winter ex-

ploration drilling program

on Raven Ridge in Al-

berta.

“We expect drilling at

Raven Ridge will increase

our resource estimates and

capitalize on last winter’s

exploration success on

these lands,” said Jamey

Fitzgibbon, president and

chief operating offi cer, in a

news release.

Approximately 50

workers and three core

hole drilling rigs are be-

ing mobilized with a plan

to drill and log 25 core

holes in the Raven Ridge

area in Alberta. Drilling

is planned to commence

on Township 94, Range

1, West 4, towards the end

of the week and the fi eld

portion of the program is

expected to be completed

by late February.

Th e exploration pro-

gram will gather addition-

al data to assist in confi rm-

ing geological models and

bring further confi dence

to the company's resource

estimates, Oilsands Quest

said.

“Given the uncertain-

ty prevailing in the mar-

kets, it is imperative that

we maintain the balance

between preserving our

liquidity and increasing

our value through high

impact investments,” said

Christopher Hopkins,

chief executive offi cer.

“We will control our costs

and sustain our team and

assets through this glob-

ally challenging period.”

Last year’s winter

exploration program to-

talled 175 exploratory and

delineation drill sites (150

in Sask. and 25 in Al-

berta). Th e company also

completed extensive 2D

and 3D seismic surveys

in both provinces and up-

graded Raven Ridge from

a prospect to a discovery.

At Axe Lake test site

3, the company is continu-

ing its preliminary testing

of low energy heat transfer

and fl uid mobility within

the reservoir this winter.

At test site 1, the company

is completing construction

and commissioning of

steam/injection facilities

as it plans for fi rst steam

injection later in 2009.

Oilsands Quest is un-

dertaking a comprehen-

sive drilling, coring and

testing program to evalu-

ate the physical properties

of the complex layering of

sand, lacustrine clay and

till within the Quaternary

age sediments overlying

the McMurray formation

in the Axe Lake area.

Th e data gathered will

be used to accurately cali-

brate laboratory, modeling

and simulation work and

help confi gure the instru-

mentation at test site 1.

Oilsands Quest working its Axe Lake and Raven Ridge properties


Contact your local pipeline sale rep.

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Speci c Targeting

One constant

thread Pipeline News has heard over the past

eight months is that

the changes in Alberta’s

royalty regime has driv-

en business east, into

Saskatchewan. January

1 saw Alberta’s royalty

regime updated.

Th e proposed new

oil sands royalty regime

in Alberta became ef-

fective January 2009.

Royalty rates are deter-

mined by a sliding scale

based on the price of

West Texas Intermedi-

ate (WTI) oil in Cana-

dian dollars per barrel.

Th e Base Royalty

Rate, charged on gross

bitumen revenues prior

to payout, will remain at

one per cent up to $55

Cdn per barrel. Th is will

increase for every dollar

oil is above $55 Cdn per

barrel to a maximum

of nine per cent when

WTI is priced at $120

Cdn per barrel.

Th e Net Royalty

Rate, charged on net

bitumen revenues after

payout, will remain at 25

per cent up to $55 Cdn

per barrel. Th e rate will

increase for every dollar

oil is above $55 Cdn per

barrel to a maximum of

40 per cent when oil is

priced at $120 Cdn per

barrel.

Th e province will

exercise its existing

right to receive “royal-

ty-in-kind” on oilsands

projects (raw bitumen

delivered to the Crown-

operated Alberta Petro-

leum Marketing Com-

mission in lieu of cash

royalties) to support

value-added upgrading

projects in Alberta.

The royalty rate in Saskatchewan

unchangedTh e oil sands royalty

regime for Crown lands

in Saskatchewan are

based on one per cent of

gross revenues prior to

payout and 20 per cent

after payout. (Payout

is achieved when there

has been cash recovery

of eligible capital costs

and expenses.)

No changes for

2009 have been an-

nounced or planned. In

fact, premier Brad Wall

has publicly stated that

he aims to provide a

regulatory environment

that will help build the

emerging unconven-

tional oil and gas sector

in Saskatchewan, and

that this may include

government help with

research and develop-

ment.

Alberta starts 2009 with new royalty regime

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RJ HOFFMAN HOLDINGS

Flush By and Steamer positions available. We train drivers. $23/hr starting driving wage or higher wages for experienced opera-tors. We pay overtime and provide benefi ts. 7-3-7-4 schedule. Maximum 14 hr days.For more information contact Eugene at 780-205-5680 or fax resumes with references and drivers abstract to Eugene at 780-871-0782 or email to [email protected]

IS ACCEPTING APPLICATIONS FOR

CLASS 1A & 3A DRIVERSCLASS 1A & 3A DRIVERSBased out of St. Walburg, SK or Lloydminster, AB

FLUSHBY OPERATORfor Elk Point area.

Must have or willing to get B.O.P. ticket.Excellent wages, benefits and scheduled days off.

Safety tickets an asset.

Contact Cody 780•645•0040

1509 RAILWAY AVE.BOX 275CARNDUFF, SK.S0C 0S0306-482-5105

is currently accepting applications for the following position:in the Estevan/Carnduff area

• Chemical Circulating, Batching and Delivering• Part-Time Pressure Truck Driver (1A Required)

Applicants must have a minimum of 3 years oil eld experience and a clean driving record.

Email or fax your resume to Kris at:candnoil [email protected] • Fax: 306-482-5213

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Savanna Well Servicing Inc. is activelyseeking personnel for the following positions:

Page C25Penn West has po-

sitioned its capital proj-

ect inventory to enable

expansion of the com-

pany’s 2009 program

when commodity pric-

es and industry costs

improve from current

levels.

Penn West said it

anticipates production

volumes will average

approximately 180,000

bbls of oil equivalent

per day in the first half

of 2009. (This volume

would be reduced by

the amount of any dis-

positions that close in

the first half of 2009.)

Third quarter 2008

production averaged

over 190,000 BOE a

day.

Late in 2008,

the trust placed vari-

ous producing assets

deemed non-core into

the market for sale. It

anticipates closing all

pending deals by the

end of the first quarter

with estimated com-

bined proceeds of $150

million. These proceeds

will be applied to bank

debt.

In 2008 Penn West

hedged its 2009 pro-

duction to cushion the

impact of commod-

ity price volatility. It

currently has approxi-

mately 31 per cent of

its 2009 crude oil pro-

duction hedged (before

royalties) with a floor

WTI (West Texas In-

termediate) price of

$80 (U.S.) per bbl and a

ceiling price of $110.21

a bbl.

According to Penn

West approximately 20

per cent of its 2009 nat-

ural gas volumes have

been hedged (before

royalties) with floors of

$7.88 (Cdn.) per giga-

joule and ceilings of

$11.27 per gigajoule at

AECO.

OpportunitiesOpportunities

Primary drilling focus to be in the southwest for Penn West


By Geoff Lee

Wainwright –If it’s

February, spring and

summer can’t be far

away. That’s the prom-

ise that led Owen John-

ston, owner of OJ’s

Leisure Products in

Wainwright, Alta., to

purchase boating ads in

the January edition of

the Pipeline News to en-

tice oil patch consumers

to warm up to the idea

of buying a summer

boat now. You might

need a big axe to chop a

hole in the ice for your

boat now, but warmer

weather is definitely on

the mind.

“Between now

and spring is our busi-

est sales months,” said

Johnston who has

owned the Yamaha

franchise since 1994.

“Boat shows are start-

ing now. The attraction

for buying a boat now is

that it’s cold outside.

“It’s a mind game.

People want to look at

something that’s they

associate with warm.

On the May long week-

ends, people open their

cabins up so you’ve

got January, February

March and April to get

hooked up with a new

boat and get ready for a

new season.

“All of our stock

comes in November so

it’s ready for sale before

April in May. A sunny

day will bring a lot of

people in for browsing.”

Johnston says, “The

oil patch worker is one

of our main clients.”

OJ’s ads feature

his popular line of G3

boats for fishing and

Grew fibreglass boats

for waterskiing and lake

cruising. Prices for the

most expensive models

range from $12,000 to

$60,000.

“We sell a lot of the

G3 boats,” said John-

ston. “They are very

popular. They have the

pontoon boat line and

you can pull a wake-

boarder or someone on

a tube. The other side of

the G3 line is the deep

V fishing boats for deep

water and flat-bottomed

jon boats.”

OJ’s has more than

40 boats in stock. John-

ston says a sunny day

will bring a lot of peo-

ple in to browse.

Johnston says an-

other plus for advertis-

ing early is that most

people don’t worry about

test driving a boat. “It’s

not like a car or a snow-

mobile,” he explained.

“With boats, people

know they float and a

motor pushes them.”

Page C29

Welding & Maintenance Ltd.Estevan location is seeking individuals

to ll the following positions:

Crew Foreman • Pipeline ForemanCrew and Pipeline Labourers

• Applicants with experience, safety tickets and valid driver's license preferred• Group RRSP Plan• Group Insurance bene ts package and competitive wages offered

All inquiries will be kept con dential.

These positions are open immediately.Contact - Dan Beaulieu

634-0551 Or Fax: 634-9448Email: [email protected]

Estevan Branch of

Hydrovac Operator• 1A licence required• Clean drivers abstract• Applicants with experience and safety tickets preferred • Will train the successful applicant

Zargon Energy Trust requires a

Production Field Foreman For South-East Saskatchewan focused mainly in the Estevan area. Minimum 10 years oil and gas operating experience, 5 years at a supervisory level.

Forward your resume in confidence to: [email protected] prior to February 6, RE: Production Foreman.

Zargon is a sustainable energy trust with a 16-year history as a publicly traded

company. For more information, visit Zargon’s website at: www.zargon.ca.

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

OpportunitiesOpportunities

CareerCareer ELECTRICAL APPRENTICES & JOURNEYMEN REQUIRED

Require safety certi cates & valid drivers licence.Competitive wages and bene ts package.

Fax resume to 637-2181 or deliver to:62 Devonian Street, Estevan, Sk.

Boating ads aimed at summerBoating ads aimed at summer

ResourcesResources GuideGuide


lusting oil patch consumerslusting oil patch consumers

- Oil eld Maintenance - Service Crews- Pressure Welding - Pipeline Construction

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Randy: 634-5405 - Cellular 421-1293Darcy: 634-5257 - Cellular 421-1425 • Fax: 634-4575

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24 Hour ServiceSpecializing in Industrial & Oilfield Motors

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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

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

Dwight G. Blomander, CFP

600, 2010-11th Avenue, Regina, SK S4P 0J3

THE

Great-West LifeASSURANCE COMPANY

Tel: (306) 761-7506 • Fax: (306) 352-9474E-mail: [email protected]

Toll Free: 1-888-495-7275Cellular: (306) 421-1935

• Life Insurance• Disability Insurance• Critical Illness Insurance• Employee Bene t Plans

QualityLAMICOIDS

Estevan Trophy & Engraving

Phone/Fax: 634-6005Email: [email protected]

Call Linda for more informationEf cient Service

& m& metal cable tags

Page C28A couple of the most popular boating lakes are Pigeon Lakes near Bonnyville,

Alberta and Lake Diefenbaker in Saskatchewan.

Johnston says he has sold boats to people in the oilfl ield from as far away as

Saskatoon, Grande Prairie, Fort McMurray and Calgary. “We get a lot of people

from Lloydminster,” said Johnston. “We’ve got a really good service department,

so word of mouth travels pretty fast. We’re set up with dynos (for tuning) and all

of our guys are licensed.

Johnston started his franchise selling Yamaha ATVs, snowmobiles, side by

sides and motorcycles and added Yamaha boats four years ago to meet demand.

“Boating has become more popular in Alberta,” he says. “Baby boomers have

more disposable income and older families are spending more.”

Johnston expects sales to be good this year despite the slowdown in the oil

and gas sector.

“Last year and the year before were great years,” he said. “People still want

to have fun and take holidays. Th ey still want to go to the lake. With boats, it’s a

diff erent clientele – it’s family oriented. It’s something the whole family can use

versus a motorcycle or a snowmobile.

“Everyone in the service sector is still working. Production may be down but

they are not laying anyone off at the (Lloydminster) upgrader. In the tarsands,

new projects are being put on hold but all the people who back up the system still

have to come to work.”

Resources Resources GuideGuide


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

RADVILLE, SK“ Line Locating for All Your Oil eld,

Residential or Farm Needs”

Cell: (306) 869-8181 • Cell (306) 463-8021

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 Manager

Downhole Tools

93 Panteluk StreetKensington Avenue NEstevan, Saskatchewan S4A 2A6PHONE: 306-634-8828CELL: 306-421-2893FAX: [email protected] 311 Kensington Avenue, Estevan • 634-1400

www.pennwest.com

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 Care4” Hevi Wate Drill Pipe

Brad Lamontagne(306) 577-9818 or (306) 739-2263

[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] Fresh Water Hauling

Custom Bailing & Hauling

Gordon HartyBox 95 Marwayne, AB T0B 2X0

Bus. Phone(780) 875-9802

Fax No.(780) 847-3633

Res. Phone(780) 847-2178

COIL TUBING SERVICESFLUSHBY SERVICES

Serving Alberta, B.C. & SaskatchewanToll Free1-866-363-0011

www.tazwellservicing.com

COIL TUBING SERVICESFLUSHBY SERVICES


LISTINGS START AT ONLY FOR A FULL YEAR OF EXPOSURE

72,500 copies of the COSSD are distributed throughout the Western Canadian Sedimentary Basin, into the US, and internationally.

TIME IS RUNNING OUT TO PLACE YOUR LISTING IN THE 2009/10 CANADIAN OILFIELD SERVICE & SUPPLY DIRECTORY (COSSD)

ALSO AVAILABLE ON DVD AND ONLINE

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Jane HowatTOLL FREE (888) 563-2946 ext. 144Email: [email protected]

DEADLINE:FEBRUARY 13, 2009

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Documents

Pipeline News February 2009