WINTER2011/12No181

Hunting Review; the external house magazine of Hunting PLC 3 Cockspur Street,London SW1Y 5BQ, UKdavid.hunting@hunting.plc.uk Edited by Victoria Bailey and Georgia Langdon, Campaign PR. info@campaignpr.comDesigned by Anthony B Ainley MCSD tony@tonyainley.com Produced and printed by Duffield Printers Ltd martyn@duffieldprinters.co.uk

Cover Yuyuan Gardens in Shanghai Photo:David Hunting

IN ISSUE 181 WINTER 2011/12

4 Yangtze Delta pearlJiangsu Province and neighbouring Shanghai provide a fascinating backdrop for Hunting’s Wuxi facility, at the heart of China’s burgeoning economy

20 Challenging conventionThe United States’ recent advances into shale oil and gas production have captured international attention, leading the way to similar initiatives in other parts of the world

16 Maine attractionThe acquisition of Dearborn in the scenic northeastern USA enhances Hunting’s presence in high precision manufacturing for the MWD/LWD market

14 Let the Games beginThe final countdown to the Olympic Games has begun and, as the world stirs in anticipation, we take a look at how London is preparing to stage this international event

22 Take it tothe limitAn Australian drilling operation saw Hunting Welltonic’s design team step up to a challenge

10 Charged with potentialPerforating gun systems to boost horizontal production are central to Hunting’s Titan acquisition, which fits with the strategy to expand wellbore products around the world

23 Lean and cleanThe relentless drive to capture lean manufacturing efficiencies is proving successful in many situations, exemplified by the efforts of staff at the Sam Houston Parkway facility

24 News from our community

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A matter of balanceThere has been something of a sea change in perceptions about energy of late. While the quest for a low-emission environment feels intrinsically right, the political cantering after the bandwagon of the renewable sector looks set to be reined in by the practical needs of the ordinary citizen.

It’s not just that the global financial crisis shook the more outlandish claims of the renewable outriders; the advent of the shale gas boom changed the landscape completely. Its sheer abundance in the US means that natural gas import terminals are now looking for export potential. In case it goes un-noted, bucking the downward trend, more than one in five of new private sector jobs since 2003 have been in the oil and gas sector. Where the US has benefitted, others aspire. China has particular energy needs, proven shale deposits and Hunting’s strategic positioning has led to the expansion of the Wuxi facility, which is orientated to domestic demand. In this issue of the Review we look at the context in which that investment has been made.

Existing oil and gas technology and techniques are proven and combined with affordability. With this in mind, we welcome into the Hunting fold new members who have arrived during our busiest and largest ever acquisition period. It gives real pleasure to embrace this larger community which shares our sense of drive and purpose; we all have much to learn from each other. The Titan group and its perforating systems are introduced in these pages as are the folks from Dearborn, who specialise in precision MWD/LWD products. We look forward to covering more aspects of their activities in due course as indeed we do for other new colleagues also from the world of advanced manufacturing. In the meantime we round up with news from across our existing company and note the healthy section on well-earned promotions and new appointments.

I’d like to reflect on the year gone by and also take this opportunity to wish all our staff, families and dependents, as well as our wider readership a happy and healthy start to 2012.

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Hunting’s largest manufacturing facility is in the buoyant Chinese province of Jiangsu. We look at the context in which this investment has been made and how the industrial and cultural heritage of this region is driving its prosperity

YangtzeDeltapearl

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Home to Hunting’s newly opened Wuxi facility, China’s ancient region of Jiangsu is considered one of the country’s most

economically, culturally and technologically developed areas. Located in the Yangtze River Delta, the province is an active hub of economic development. This is most readily experienced at street level with bustling retail centres, traffic filled highways and the ever present cacophony of construction sites. In spite of a reported hiatus, this economic boom is still underpinned by a vast, robust manufacturing base that runs the gamut of industry. In the region’s self-proclaimed commercial and financial capital, Shanghai, manufacturing still forms nearly 40 per cent of the total output.

Under the rule of the Song Dynasty (960-1279 AD), Jiangsu first emerged as a key centre of China’s trade. In the following centuries the province continued to flourish - becoming synonymous with luxury and opulence and it remains one of the richest regions today. Significant financial reforms, introduced in the latter part of the 20th century by Deng Xiaoping, further established Jiangsu as a prime example of the country’s growing

prosperity. Two southern cities, Suzhou and Wuxi, in particular have undergone extensive development in recent times. With the help of a Chinese-Singapore government initiative in the 1990s these areas were transformed into economic powerhouses and today are among China’s top 10 for gross domestic product.

Shanghai rising Shanghai, which borders Jiangsu to the west and the East China Sea to the east, is undoubtedly the region’s liveliest city. Considered to be the commercial, industrial and financial centre of mainland China, this energetic metropolis is not only a hotbed of commercial activity but also a popular destination for tourists seeking an exuberant urban experience. It is an interesting side note that, as a political hotbed, it was also the birth place of the revolutionary Chinese communist party. The distinctive skyline has been carved out by countless contemporary constructions, while glittering new projects continue to emerge as if to celebrate the joy of development for its own sake - an expression of the city’s investment in its ambitious infrastructure.

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The estimated population in the Shanghai municipality is more than 23 million and the developed area covers 6,000sq km. A seamless transportation system is crucial to keep the constant crowds moving and the city’s urban rail system, the Shanghai metro, is rapidly expanding to accommodate rising demand. The high speed overland network also links airports and other key cities, while regular pedestrian ferries cut a busy path across the Huangpu River - a useful alternative when taxis are scarce in the city.

Unlike many of its neighbours, Shanghai has little ancient history. Only two hundred years ago the area was a simple silty corner of the Yangtze Delta where indigenous fishermen eked a subsistence living, while a rapacious pack of European colonists jostled for influence to set up concessions to trade with an emerging China. The resulting match of these cultures ignited the region’s innate entrepreneurial zeal. Extensive commercial activity quickly followed, interrupted but not extinguished by world war and revolution, while accelerating in the last two decades as Shanghai has become one of the fastest developing cities in the world.

The city is also home to the world’s busiest container port, which processed more than 29

million container units in 2010, advancing the city’s ambition to become a global centre for international shipping and associated marine industries. Automotive manufacturing has proved another key industry, which generates significant economic success and provides an important source of employment for Shanghai’s workforce.

Wuxi PrefectureLess than 150km inland is the city of Wuxi. Dubbed ‘Little Shanghai’, it was founded by two fugitive princes 3,000 years ago. Agriculture, rice, silk and fish formed the earliest of the city’s industries, which grew considerably with the construction of the Grand Canal - under the Sui Dynasty (581-618). Following the establishment of the People’s Republic of China in 1949, Wuxi continued to develop with great aplomb into textile production and heavy industry although not without some growing pains caused by such rapid expansion.

Today Wuxi is one of China’s top business districts and has been designated an investment grade city, comprising two enormous, new industrial areas in addition to the traditionally evolved criss-cross of roads and canals that congregate towards the historic city centre.

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This is dominated by contemporary skyscrapers, while the old market, canal-side buildings, alleys and bridges straddling these old backwaters are being renovated. Conversions also make good homes for trendy boutiques and a popular restaurant scene with a thriving arts community. This is also a popular quarter in which to play badminton at weekends.

Cultural charmIn addition to its brisk trade and thriving business, Wuxi is also recognised for its contribution to Chinese culture. Although adhering to traditional Chinese values, the ‘Wu’ area is also influenced by modernisation and embodies unique provincial characteristics which can be easily identified in the architecture, distinctive dialect and waterway way of life.

According to academic research into this period, the ascendance of King Wu, first ruler of the Zhou Dynasty, in 1046 saw the establishment of the Wu state. During this era, the cultures of central and southern China were uniquely blended to form the Wu culture, with what came to be Wuxi at its core. Since then, Wu has played an important part in ancient Chinese tradition and is still widespread today.

Symbolising both the prosperity of the city and its rich natural surroundings, the Wu custom celebrates holistic material, spiritual and cultural creation.

Built close to the misty shores of Lake Tai, Wuxi boasts both natural splendours and man-made attractions and proves a major tourist draw to the lower Yangtze Delta, welcoming thousands of visitors every year to this evocative fresh water lake. Rising up from the lake is the limestone bluff of Longshan Mountain which provides a spectacular verdant setting for the Lingshan Grand Buddha. Standing 289ft high, the Buddha is the world’s ninth largest statue and, with its temples, water fountains, steep paths and formally laid out grounds, provides a huge source of both local and international visitor interest.

Wuxi has produced many eminent Chinese authors while the area is also famed for its Xiju opera and handicraft specialities, such as the production of Huishan clay figurines. Other notable figures from the region include Hua Hengfang, a 19th century mathematician who aptly made significant contributions to science and technology.

The prefecture is famed for its network of interweaving inland waterways and, sweeping

through the city of Wuxi, the Grand Canal of China negotiates all of the east-west river systems. The numerous historical gardens, established by notable figures of the past, have also been well preserved - enhancing the area’s antique charm.

In the zoneWuxi’s economic development zone was first established in 1992 and is one of the country’s main industrial parks. A well-developed transportation system makes the area particularly accessible for both domestic and international markets, while qualified suppliers and a strong work force are an additional benefit.

More than 1,200 enterprises are registered within Wuxi New District (WND) - representing the area’s five main industries: electronic information; precision machining and mechanical and electrical integration; bio-pharmaceuticals; fine chemicals and new materials. Besides the manufacturing industry, the software and out-sourcing industries have been expanding at a rapid rate. Also located within WND, the Wuxi export zone encourages the development of the electronic information and optical-mechanical-electronic-integration industries.

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Canal worksStretching 1,776km, China’s Grand Canal is understood to be the longest in the world and its oldest section dates back seven centuries. The earliest excavation, which took place in southern Jiangsu, came about as a consequence of China’s core economic and agricultural region migrating from the Yellow River valley in the north, toward the southern provinces. Throughout history the canal’s primary role has been the transportation of grain to the capital, Beijing - although its institution also allowed food supplies to be easily shipped to army personnel posted at the northern frontier. The economic importance of the canal is likely to increase in the future following a recent dredging operation. Expected to reach completion this year, the Jiangsu government anticipates that the exercise will encourage a 40 per cent increase in overall shipping capacity.

Hunting WuxiBased in the commercial heart of the Wuxi economic development zone, Hunting’s new facility is already operating at full strength. Measuring an impressive 280,000sq ft, it is built to handle a throughput design capacity of 120,000 tons of OCTG per annum. The facility serves the fast-growing domestic and regional Asia Pacific market with a high quality premium product. This is an important step in consolidating and developing the regional position for Hunting’s proprietary technology including the Seal-Lock range of products.

Doing businessThe location lends itself to a variety of logistical options with a well-planned network of express highways and high speed trains. The local airport also helps to keep the city moving, offering domestic passenger destinations and providing access to the international airfreight system. A bustling trade is sustained by the city’s thriving barge market which transports bulk cargoes between interior and coastal ports. Close proximity to the leading Chinese steel mills helps keep lead and turnaround times to a minimum and provides a competitive source of supply for the customer. Hunting Wuxi can therefore supply all the major domestic national giants as well as the international operating companies and major service suppliers.

Custom plantThe facility itself is arranged with two buildings, prosaically named plants A and B. The latter provides extensive offices to house the administrative functions, while materials and inventory can be moved between buildings by steel rail and overhead crane that spans the storage yard. This is a much more efficient and safer alternative to forklift movements. Plant A

was already built by the time the site was acquired and temporarily housed the CNC threading machines while the new Plant B was being built. It now provides covered storage and a regional centre of excellence for couplings, capable of producing up to 100,000 sets annually. This gives economies of scale to the rest of the Hunting Energy Asia Pacific region, especially where land prices at other facilities are at a premium. Plant B provides a brand new state of the art operation, with custom built pipe handling systems and a factory layout planned on lean principles. Four production lines are configured for single piece flow; one line is dedicated to threading high percentage chrome material. High value casing and tubing are processed from 23/8 in to 20in diameter.

The office accommodation is designed for good communication flow and to facilitate the integrated management team comprising Finance, Human Resources (with Health & Safety) and Quality Assurance. It also provides an attractive working environment for engineering, commercial and operational functions. Continuous training is an integral part of the evolving business and in spite of the work ethic, the facility still manages to field soccer and basketball teams in a local league.

A well balanced team of highly respected local partners and Hunting staff has quickly merged into a single, strong operating unit. While mindful of the area’s rich industrial heritage, the team is also aware of the opportunity this creates with the other company facilities throughout the Asia Pacific region.

Standing from left:Bai (Purchasing Manager) Sun Jian (HR & Administration Manager)William Chan (QA Manager)Liu Jiang (Inventory Supervisor)Huang Haitao (Production Manager)Paul Zhang (Operations GM)

Sitting from left: Mary Zhuang (Customer Service Manager)Daniel Tan (MD Asia Pacific)Zhang XN (Project Manager)Xue Changfu (Director)

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Hunting announced its $775m acquisition, its biggest ever, of Titan Specialities, the US leader in ‘Perforating Guns’

and associated hardware in August last year. These tools are used to carry packages of shaped charges to predetermined points in the wellbore. There they are phased to detonate in a pre-set sequence and pattern to perforate the well casing, sending jets of molten metal into the rock formation to leave short pathways into which the oil or gas can flow back into the wellbore. This then makes its way up to the surface at a steady and controlled flow rate. While sharing the same history, these are considerably more sophisticated than the ‘Down Hole Bombs’ or ‘Bazookas’ first conceived of during the early 20th century. Titan’s product portfolio is expected to further strengthen Hunting’s market share in the technologies used for the extraction of gas from shale and developing opportunities in the shale oil sector since it is particularly suited to horizontal drilling. The newly rebranded Hunting Titan is also predicted to make the most of Hunting’s global footprint and has ambitions for international product expansion.

Perfect positioningHeadquartered in Houston, just a stone’s throw from the North American offices of Hunting Energy Services at Northpoint, the business is led by Ken Babcock, working closely with a tightly knit team of dedicated professional colleagues. The company has its origins further north in the Texas Panhandle where the manufacturing sites still primarily reside. Started as the personal vision of founder Bill Berry, the business had been steadily built up

Charged with potential

Hunting’s acquisition of Titan Specialties is designed to dovetail respective ambitions to develop a worldwide presence in an expanded range of leading energy products

during its first 40 years of entrepreneurship until 2006 when it was bought out by a private equity concern. In those intervening five years the company has grown from having seven distribution centres in 2006 to owning 20 today. It employs some 500 staff at five manufacturing locations including the main ones at Pampa and Milford in Texas. The change in emphasis really helped to light the candle beneath some nascent initiatives that had remained untested until the company took on the professional mantle provided by the Houston office. It is notable that in spite of the intense disruption caused by the recent acquisition process, successfully delivered to Hunting, the sale concluded with no let up in operations.

Hunting Titan’s first team mantra is to aim for competitive pricing but with a high service offering to differentiate itself from competitors. The company has worked hard to reposition itself as the US perforating industry leader. This has been helped in no small measure by the changes that have been wrought and the systems rolled out to bolster the marketing, financial and human resource functions, including the establishment of Titan University.

Pampa - product power houseLocated some 600 miles north of Houston, an hour or so west of Amarillo is the company’s 208,000sq ft Pampa facility where perforating guns are made. The workshops house a succession of CNC turning, milling and precision laser cutting centres, as various parts of the ’gun’ are machined and assembled. Being deployed down the wellbore it is no surprise that the guns conform to a tubular

COO Rick Bradley

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shape. The outer bodies or ‘carriers’ are sawn to desired length and steel walls scalloped into weak points whose pattern reflects the shot density and blast phasing that will take place in the oil or gas formation. Each scallop will line up exactly with each shaped charge that will be placed later in the charge tube. These are then marked, aligned and slotted into place inside the carrier. No explosives are fitted into the tool until it is ready for use in the field, so at this point there are no handling protocols to impact on working practice. End plates are then fitted to fix the assembled parts in place, stringent QA traceability maintained and the perforating gun then labelled ready for shipping.

From the original mechanical offering, a range of sophistications have been developed to match the need of today’s more unorthodox geological formations. The product range has also been enhanced to offer much more in the way of electronic integration such as firing switch gear. Instrumentation of a MWD/LWD nature is also a fast growing segment that extends to wireline telemetry tools as well as highly integrated detection and logging systems. In support of its manufacturing and to ensure component integrity the company has built a state of the art dry room for the scintillation of crystal manufacturing. The capability extends to manufacturing devices designed for automated environmental test equipment that monitors heat, pressure and vibration of down hole tools as well as multiple temperature chambers, pressure vessels and neutron calibration pits. The company even boasts an indoor 1,500ft test well. Suffice to say that product quality and testing are taken very seriously indeed -

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in fact the company became ISO-9001 accredited in less than a year, once it was determined the qualification was needed.

Pampa familyHunting Titan’s Chief Operating Officer, Rick Bradley, is the exception to the executive team in that he is a long standing resident of Pampa and a company stalwart of 32 year’s service; his dedication to mechanical design engineering, technical experience and business leadership skills are legion. Indeed he could be described as one of the original pillars of the business created by Bill Berry and one of its many success stories. Titan was formed during the late 1960s from the ruins of a defunct wireline company when major energy service providers were starting to outsource their manufacturing divisions. The company sought to plug this gap for manufacturing for the majors but also to provide a source of high quality product for the smaller independent service companies which would not otherwise survive. The strategy stood the test of time and Titan can be credited with enabling the thriving independent sector of today. In growing the company, skills gaps were plugged by adding the appropriate expertise as and where necessity demanded, such as bringing in an explosives, or ‘energetics’ engineer to start to develop whole perforating gun systems instead of just parts. The majority of the work is completed in-house with the research and development department creating innovative products for customers that require equipment to be custom-manufactured to exact specifications. A prototype machine shop is dedicated to rapidly producing these unique orders.

Milford soundsAt the Milford facility, around 50 miles out of Dallas, Girven Kissell, General Manager of Energetics, oversees the manufacturing of the

Assessing the pathway of the shaped charge blast during one of the destructive spot tests

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shaped charges and setting tools. The tubing conveyed perforating (TCP) products, destined for use in perforating gun systems are managed by Joe Hanke. The shaped charge production area covers 87,000sq ft while a 9,500sq ft building is used for the TCP line. Seven years ago the manufacturing facility spread over 20 acres; today in a new, purpose built facility it covers 500 acres. Dealing with explosive materials requires strict adherence to regulations governing the layout and distance between buildings on the site. All buildings are built to military magazine standards and also double up as tornado shelters - a necessary precaution in this part of the world. It is important that industry standards are constantly monitored and civil use for commercial explosives interests are not unheeded which demands that the company maintains the highest global standards.

The workforce is highly skilled and requires a level of dexterity which leads to a large proportion of women on the team. Each product line has been set up to allow for cellular style manufacturing where a number of processes are undertaken to break the monotony of a single flow line. It also means that there is less movement needed between work stations and the work is more interesting for staff. The plant mass produces millions of shaped charges each year making the company a significant player in both the domestic North American market and in global terms. Not to assuage the menfolk, but to maintain rigorous quality standards, one in every 250 charges is destructive tested on site.

International lureNot only can Hunting Titan’s distribution points, strategically placed in the major hydrocarbon basins all over North America, including Canada, be used to distribute other products from Hunting’s extensive portfolio but the company has international aspirations

which can be supported by Hunting’s global footprint. Many synergies exist, particularly for promoting Titan’s wireline accessories to overseas markets. The company has garnered a fine reputation for supporting many of the independent operators in the USA’s shale plays and hopes to replicate this appeal to independents working on the international stage, initially in the Middle East and North African region but extending rapidly to the Far East and beyond.

Hilary LaManna, HR Director, Ken Babcock, CEO, and Roger Rivet, CFO

Girven Kissell, GM of Energetics (left) and Mike Meadows, Director Special Projects

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Let the Games begin

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Drawing on the country’s Olympic heritage, London has brought an innovative approach to staging the

2012 Games. Preparations have been in full swing since the city’s bid was selected by the International Olympic Games Committee (IOC) in July 2005.

Under the watchful eye of the Government Olympics Executive, which is co-located at 3 Cockspur St with Hunting’s HQ, the Olympics Delivery Authority (ODA) and LOCOG, the London 2012 Organisation Committee had the task of constructing all the new main venues and infrastructure for the London 2012 Games. These are now complete.

Most of the key events will take place in East London’s newly regenerated Olympic site. In the run up to the event, the ODA set out a series of milestones, clearly charting the different phases of the lengthy construction project. A challenge of Olympic proportions has seen the formerly unused, contaminated space developed into a spectacular urban park with world-class venues and new infrastructure links.

Extensive investment has totally transformed the area, from what was once a bombed out industrial wasteland into a contemporary architectural masterpiece. Sparking spectators’ imaginations and inspiring athletes around the world, international attention has been captured by the 250 sprawling acres of green space which now enclose the ultramodern Olympic Stadium and innovatively designed Athletes’ Village.

Located within walking distance of the venues, the Olympic and Paralympic Village has been designed to enhance the experience of the event’s key participants - the athletes and officials. Comprising 17,000 residential apartments, the Village provides access to shops, restaurants and leisure facilities.

Architects have also retained London’s tradition of building homes around communal squares - a lasting legacy which, after the Games, will be transformed into 2,800 new homes for developing communities.

With a capacity for 80,000 spectators, the Olympic Stadium is considered to be the most sustainable sporting structure ever built. Steel resource was in short supply so the build used 75 per cent less of it than for comparable structures and also features a low-carbon concrete, made from industrial waste. Situated on an ‘island’ to the south of the Olympic Park, the stadium is surrounded by waterways and is accessible via five bridges that link the venue to the surrounding area.

On your marks...Construction of the Aquatics Centre began in 2008 under the direction of acclaimed international architect Zaha Hadid, cousin to Cynthia, a long serving member of staff, although now retired, at Hunting PLC. Archaeological investigations on the site of the Aquatics Centre uncovered evidence of an Iron Age settlement - including an ancient burial site with four skeletons. The modern venue features an inventively designed ‘wave’ roof, 160m long and 80m wide, while a vast bridge which runs over the top will provide the gateway for up to two-thirds of visitors to the Olympic Park. After the Games, the centre will become a facility for the local community, clubs and schools, as well as elite swimmers.

Featuring 39 sporting disciplines including athletics, badminton, modern pentathlon and taekwondo, the London Olympics promise a celebration of sport and culture, of volunteers and business. Indeed, from security firms to construction companies, 1,500 UK businesses have won around £5bn worth of Games-related contracts. However, the Games will also leave a lasting national legacy. The area has been economically transformed, with thousands of future new jobs planned for the Park alone. Further benefits for the wider community include cross-city transport into London - extending employment and tourism opportunities.

London preparesFinal arrangements for the 2012 event rely on a comprehensive testing programme, dubbed ‘London Prepares’, a series of 42 competitions set up to assess vital areas of LOCOG’s operations. Held in early January, these preliminary events will focus on testing essential aspects such as the field of play, scoring and timing systems. In some cases

the series will also provide a chance for international athletes, who have yet to qualify, to compete for selection in their respective Olympic team.

British hopefuls such as the 2008 Beijing Olympic medalist Louis Smith and double Olympian Beth Tweddle will compete in the London Prepares International Gymnastics event, while the FINA Diving World Cup, held February 20-26 at the newly built Aquatics Centre, will be the last opportunity for athletes to qualify in both individual and synchronised diving categories.

Relight the fireIgniting hope in the heart of proud nations, the Olympic Torch plays an intrinsic part in the Games. The flame finds its origins in ancient Greek history, introduced into the early Games as a symbol of fire stolen from the god Zeus. According to legend, the flame has never been extinguished and follows the same precise ritual every four years. Reviving its role in the run up to the 2012 Olympics, the flame will feature in a traditional ceremony at the Temple of Hera in Olympia and take a short passage through Greece, before it is delivered to Britain on May 18 to continue its journey.

Earlier last year, the British public was encouraged to nominate inspirational individuals to take part in the 2012 torch relay and the 8,000 successful Torchbearers have had their places confirmed. Starting at the southernmost tip of the UK on May 19, the ancient emblem will weave its way through the streets of 1,000 UK cities, towns and villages. Transferred from one Torchbearer to the next, the flame will generate global excitement as it is carried over 8,000 miles for 70 days. The epic journey will end in spectacular style on July 27 as the last bearer lights the cauldron at the Olympics’ Opening Ceremony, marking the official start of the Games.

International attention is on London as it gets ready to stage this year’s Olympic Games. The city’s approach will combine both its unique history and stadium innovation

Velodrome

Aquatics centre

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Dearborn Precision Tubular Products Inc., in the US State of Maine, was acquired in August 2011 to form Hunting Dearborn.

At this site the company manufactures high precision tubular and rotating metal components for customers that require products with exacting tolerances and unique configurations. The components are used primarily for MWD/LWD applications in the oil and gas sector.

A little historyThe founder, Howard Dearborn, moved from Cleveland Ohio in the mid 1960s to the historic town of Fryeburg. He had been attracted originally as a visitor to the natural grandeur of the Saco River and stunning White Mountains region. The business had started off making aero engine piston blanks and gradually became known for drilling high end tubular

The Maineattraction The second of Hunting’s

acquisitions last year opens up possibilities for growth in the MWD/LWD sector

parts including control rods for shipboard nuclear reactors. Super accuracy in ‘deep-hole drilling’ had formed the basis of the company’s reputation and Dearborn continued to develop on that speciality in Fryeburg.

In 1975 the founder brought Tom Shaffner, his former patent attorney, to Fryeburg to help him run the business. For the next two years Howard and Tom worked with GE Nuclear, positioning the company for substantial production of control rod drive tubes for its commercial reactors. That business set the stage for growth and more hiring. In 1977 Bill Findeisen met the founder through a mutual interest in aviation and after a somewhat idiosyncratic interview Bill was hired as a trainee.

A ramp up in production followed a growth in orders from GE Nuclear and soon this formed the bed-rock of business, which was to continue through the late 1970s. The first building created for this purpose is just across the driveway from the bulk of the present premises that have continued to be developed as the company has grown. Meanwhile, back in the early 1980s, the initial growth trajectory was abruptly stalled by the 3-Mile Island accident which led to a government-imposed moratorium on nuclear projects. It became a logical imperative to seek similar engineering work in a competing energy industry to survive - that chosen being the oil business.

Into the oil patch The Texas centred oil and gas industry had built manufacturing expertise for drill collars around standard grades of alloy steel. With the commercialisation of measuring while drilling technology the demand boomed for 30ft long non magnetic survey collars. Not only were the new alloys difficult to machine, the customer expected greater control of the wall thickness. Precision drilling of exotic alloys for drill collars and other oilfield parts proved to be the next great market for the company. In 1986 there was a sale of some of the business assets to a major specialty steel company. The company was restructured with management holding equity and Bill Findeisen was appointed General Manager. It was not a great time for most manufacturing businesses but perseverance paid off with regular sales calls to Sperry Sun in Texas and Teleco in Connecticut. Sperry Sun

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(now Halliburton) and Teleco (the first to bring MWD commercial) became good customers. Dearborn was able to bring precision drilling skills, a well developed quality system and reliable quality to the market. The customers wanted more, they wanted turnkey drilled, turned, threaded, milled, shotpeened, finished parts. This was the start of where Hunting Dearborn is today. As the company invested in CNC equipment to produce finished parts for customers Bill, Tom, longtime Engineering Manager John Berg and many others in the company worked to position the company as a leader in quality and service with a reputation for doing the difficult jobs well.

Power and flightMeanwhile a start was also made in developing as an aircraft engine component manufacturer for GE. The buyer, with whom Bill had the established relationship at GE Nuclear, had moved up to Cincinnati and fortuitously was able to introduce him to the right colleague for aviation engineering. So began a longstanding relationship, developed in the mid 1980s and enduring since - with much of the product being sole source. Other aerospace work ensued for a number of OEM’s including United Technologies. A successful related diversification into power generation has seen the building of equally long-term business bonds.

Corporate developmentAs 1986 saw the beginnings of a redefinition of the business beyond the founding family - the process continued with another ownership transition in 1994 when Tom Shaffner and Bill Findeisen became the majority shareholders.

•Dearborn employs some 250 people; the total Fryeburg population was a little over 3,000 at the last census

•46 years of commitment to the town of Fryeburg, whose colonial history spans more than 246 years

•140,000sq ft of climate controlled premises, including areas under construction

•Fitness programme boasting wellness centre and recreational facilities on an 80 acre site; bring snow shoes in winter

•SHARP - ‘Exemplary status’ for Occupational Safety and Health accreditation by the State of Maine

•Deep-hole drilling, trepanning with multiple off-centre, angled and bottle shaped bores: 650 manufacturing hours can be invested in just one piece

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because there are none close by. For similar reasons the company tries to hire people who have an empathy and reason to be in Fryeburg other than just their job. In 1991 there were 50 employees with many still remaining on board today; the workforce now numbers 245 in total, performing some 3,000 different processes. Typically there are 8-10 people doing ‘on the job training’ to deal with attrition, retirements and so forth. Not all trainees work out but that some will not, is as inevitable as it is rare. Everyone - that is everyone - takes a basic aptitude test before consideration for employment - benchmarks set over the years suggest someone with a mechanical bent and high degree of accuracy are those best suited to work here. Interest is the most powerful indicator - not horsepower or dexterity. Training can add much to the skill set but cannot change the basic mind set.

Some recruitment is done with trade schools - primarily in upstate New Hampshire and Maine - all are close but not on the door step. In the past the company has sponsored youngsters through college and these applicants are often recommended by relatives of employees; the view is taken that no-one is

The professional team has been continually strengthened since then. In 2009 Frank Lawrence Jr graduated to Sales Manager, from specialising in just oil and gas sales. Also in 2009 Rob Newton, Staff Accountant since 1998 was promoted to CFO. John Berg with 40 years of experience is currently transferring his knowledge and responsibilities to John Santerelli and his team of manufacturing engineers. Other long term employees filling key roles are Dave Pasquale - Operations Manager, Brad Gould - QA Manager, Justin Bartlett - QC Manager, Jerry Knapp - Aerospace Sales, and Andy March - Aerospace Manufacturing.

Location and peopleThere is an advantage in being positioned in a rural location for retaining employees, but a disadvantage for finding new people with the right skills. However a well-established and positive work ethic and strong potential in raw material is happily available. The company is the largest employer in Fryeburg by some margin and easily so in the private sector. The location, while arguably remote, encourages a loyalty for employees to stay with the company and discourages technology transfer to competitors

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going to recommend someone who is unlikely to measure up.

Not just the toolsCommitment to building its own tooling and equipment leads to the employment of full time tool designers, a small team of machine makers and an engineering section for rebuilds and upgrades. In other organisations this might be seen as an overhead, but here it means that the materials, intellectual property and process technologies stay in-house and are not distributed. On occasion the company has tried to hire in programmers for CNC modifications but the high specification of exotic materials used tends to frighten them off - some of the front end costs for the materials deployed in the oil and gas sector are very expensive. The margin that material earns is great, provided it is worked correctly, but the risk of failure has an equally high value that would be ruinously costly.

Concurrent engineering is typically achieved in association with the customer since there is constant development of tools with each set of engineers keen to build a new and proven fleet of MWD/LWD products. New product development is very much the flavour of the

future and customers’ R&D looks set to remain with the corporate parent with their desire to keep IP close to their chests. However this means there will always be a requirement for a stable inventory of parts which will be difficult to offshore in order to service this particular work stream, whatever the industry cycle.

Community With a relatively large presence in the district, community involvement has traditionally been embedded in a culture of good citizenship that goes beyond the corporate and embraces individuals. This has not lent itself to a high profile while a history of generous and serious long-term support in money and people’s time has been equally low key. Awards are made and are typically local: the rescue squad, fire department and local school district all benefit. Voluntary service and support to the academic sector have been special features with the company and individuals, just being good neighbours, figuring how to help out rather than seeking public profile or simple hands off donations. From left: Bill Findeisen, Frank Lawrence Jr,

John Berg and Rob Newton

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America’s shale oil and gas boom continues apace. Indeed this unconventional energy source has been credited with producing

something of an industrial renaissance in those economically depressed parts of the USA which have discovered financially viable reserves. The shale phenomenon is attractive to landowners, who receive good prices for leasing drilling rights on their land, and has gained significant investment from major oil operators in terms of building property holdings with drilling rights. Of course work with the operating companies has helped to increase employment thus stimulating the economy around the drilling locations. Since 2003 it is reckoned that one in five new jobs in all of the USA is directly associated with this energy sector.

One of the largest discoveries in recent years has been the Bakken Shale, located in the Williston Basin Formation, covering parts of North Dakota, Montana and Canada. The Bakken play is estimated to contain between 3-5bn barrels of recoverable oil as well as just under 2Tcf of natural gas (BakkenShale.net).

The country is now in the enviable position of having around 100 years of natural gas supply on its own doorstep. Unlike other world markets, increased supply has been a consumer’s dream, driving US gas prices to historical lows. Indeed such is the turnaround of America’s natural gas strategy that it is now developing its first liquefaction plan to enable gas to be exported. But is this set to remain a uniquely American experience or is there potential for energy markets around the world?

European perspectiveAdvocates of shale gas believe European production could help break Europe’s dependence on gas imports from Russia and the Middle East as supply gradually eases from the established North Sea fields. Concessions for shale gas test drilling have been granted

in the Netherlands, Germany, Sweden, Hungary, Switzerland and Spain. Theoretically European recoverable shale gas reserves could cover European gas demand for another 60 years - although significant development of unconventional gas resources in Europe is not expected to have a major impact before 2020.

The picture in Eastern Europe also looks positive. Chevron is exploring shale gas potential in Romania and Bulgaria, while Poland has been a prime mover in European shale gas exploration; the country is estimated to have 187Tcf (US EIA) of recoverable gas. Some of the most promising European shale plays are offshore in the North Sea although these have yet to be commercially proven - an occurrence that analysts believe is more down to economic viability rather than any technology challenges.

However the path to shale gas is not running smoothly across all of Europe. After announcing a significant UK shale gas discovery in 2011 - enough to meet UK gas demand for 64 years - the brakes have been temporarily applied to further exploration while environmental concerns are addressed. This appears to be an issue over the lack of a body of scientific research rather than assessment of potentially damaging techniques. Compared with the USA, European unconventional gas resources are located substantially deeper - beneath groundwater levels; this raises exploration costs but lowers groundwater containment risk which may go some way to mitigating environmental concerns. Certainly tight regulation and safety measures are likely to be demanded and given by the industry.

Southern hemisphere viewsMeanwhile the US Energy Information Agency (EIA) believes that Australia is sitting on the fifth largest reserve of shale gas. Cooper Basin on the South Australian/Queensland border is leading the way with Canning Basin in Western

Unconventional oil and gas exploration is spreading beyond the USA where it has transformed the country’s energy markets. Is it now a game changer for other nations?

Australia expected to follow suit. Again, a bumpier ride is expected in Australia than the USA has experienced. In addition to dealing with the technological challenges and public concerns for drilling, labour costs are higher than in America and the continent’s vast distances and infrastructure challenges, point towards slower progress.

The world’s fourth largest holder of shale gas, Mexico, also faces infrastructure issues in producing its shale gas. Analysts estimate that unlocking this Mexican treasure trove could cost up to $80bn. Thousands of wells would need to be drilled in remote areas which have little or no existing infrastructure to transport gas from wellhead to market. Added to this Mexico has a relatively low rate of gas consumption - some areas of the country are not yet linked to a national gas distribution grid. The country’s location right next to America is ironically another disincentive as it can theoretically import low-cost gas, which is already being produced on a grand scale from existing infrastructure.

The picture in South America is similar. Argentina, which has an estimated 774Tcf (US EIA) of shale gas reserves, currently lacks the financial incentive for developing new sources of energy as both oil and gas prices are strictly regulated and kept artificially low. As global competition and liquefied gas transportation is developed through international spot markets, this is sure to change.

Shale gas dragon?The country sitting on top of some of the largest deposits of shale gas - China - also faces its own challenges to make its shale gas dream come true. Developing deposits in areas such as the Sichuan Basin is still in its early days - but it is certainly high on the agenda as the market for a cleaner source of fuel for power generation becomes a priority. It’s certainly not going to be

Technically recoverable shale gas resources (from US Energy Information Administration)

Drilling Fracking

Challenging convention

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a case of simply replicating America’s success. A number of factors are in play here: the densely populated areas and competing demand for natural resources are going to make development planning a crucial hurdle to be overcome along with the complex geology. It’s a tricky conundrum because freeing up home-grown shale resources would reduce China’s reliance on coal, which currently accounts for 70 per cent of its electricity needs (ScientificAmerican.com). It would also ease its imports requirements and provide energy security in the event of Russia and other neighbours restricting gas supply. Lack of experience in drilling horizontal wells forms another technical hurdle but with the assistance of the International Oil Companies, which have already been signed to develop these resources, a pathway can be visualised. While US landowners have mineral rights, in China, as in many other countries, the government owns the mineral rights which can be a two edged instrument, both speeding and delaying contract awards through the central and regional administrations. Royal Dutch Shell has signed a partnership agreement to help PetroChina build wells and Exxon is partnering with Sinopec to explore the Sichuan Basin - but these are still early days and analysts point out that developing these areas will not happen overnight.

America looks likely to remain several steps ahead of the rest of the world over the next few years in terms of the speed and capacity of its shale gas extraction. It is helped in no small measure by the pioneering efforts of energy industry players over the last 20 years to develop the processes and technologies to make it economically viable. Others may follow but they have a long way to catch up and respective geopolitical and local obstacles will not make replication easy. Economics suggests however, that these barriers will in time be addressed as a cheaper, cleaner source of fuel becomes an imperative.

Estimated shale gas technically recoverable resources for select basins in 32 countries,compared to existing reported reserves, production and consumption during 2009

2009 Natural Gas Market(1)

(trillion cubic feet, dry basis) Technically Recoverable Proved Natural Shale Gas Gas Reserves(2) Resources Imports (trillion (trillion Production Consumption (Exports) cubic feet) cubic feet)EuropeFrance 0.03 1.73 98% 0.2 180Germany 0.51 3.27 84% 6.2 8Netherlands 2.79 1.72 (62%) 49.0 17Norway 3.65 0.16 (2,156%) 72.0 83UK 2.09 3.11 33% 9.0 20Denmark 0.30 0.16 (91%) 2.1 23Sweden - 0.04 100% 41Poland 0.21 0.58 64% 5.8 187Turkey 0.03 1.24 98% 0.2 15Ukraine 0.72 1.56 54% 39.0 42Lithuania - 0.10 100% 4Others(3) 0.48 0.95 50% 2.71 19

NorthAmericaUnited States(4) 20.6 22.8 10% 272.5 862Canada 5.63 3.01 (87% 62.0 383Mexico 1.77 2.15 18% 12.0 681

AsiaChina 2.93 3.08 5% 107.0 1,275India 1.43 1.87 24% 37.9 63Pakistan 1.36 1.36 - 29.7 51

Australia 1.67 1.09 (52%) 110.0 396

AfricaSouth Africa 0.07 0.19 63% - 485Libya 0.56 0.2 (165%) 54.7 290Tunisia 0.13 0.17 26% 2.3 18Algeria 2.88 1.02 (183%) 159.0 231Morocco 0.00 0.02 90% 0.1 11Western Sahara - - - 7Mauritania - - 1.0 0

SouthAmericaVenezuela 0.65 0.71 9% 178.9 11Colombia 0.37 0.31 (21%) 4.0 19Argentina 1.46 1.52 4% 13.4 774Brazil 0.36 0.66 45% 12.9 226Chile 0.05 0.10 52% 3.5 64Uruguay - 0.00 100% 21Paraguay - - 62Bolivia 0.45 0.10 (346%) 26.5 48

Totalofaboveareas 53.1 55.0 (3%) 1,274 6,622Totalworld 106.5 106.7 0% 6,609

Sources.1‘Dry production and consumption: EIA, International Energy Statistics, as of March 8, 2011.2 Proved gas reserves: Oil and Gas Journal, Dec., 6, 2010, P. 46-49.3 Romania, Hungary, Bulgaria.4 U.S. data are from various EIA sources.

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As a market leader in specialist thru-tubing tools, Hunting Welltonic was recently faced with a unique and unusual request

for a suite of Large-Bore Latch Disconnects to be used in a Coal Bed Methane (CBM) prospect in Queensland, Australia. Typically it is not cost-effective to spend more than a couple of days of valuable rig time working on a jammed pipe, so Hunting’s task was to come up with a suite of job specific tools - hydraulic disconnects or release subs - to assist in the event of any Bottom Hole Assemblies (BHA), drill string or directional drilling equipment becoming ‘stuck’ down-hole. This is especially desirable in remote locations where the chance of finding a timely solution to a problem, once it has occurred, is unlikely.

The brief from customer, AJ Lucas’s Drilling Services, was to provide large OD Hydraulic Release Disconnects compatible with the operation’s existing range of drill-pipe together with its range of specified connections.

Equipment selectionThe thru-tubing tool selected was the Large-Bore Latch Disconnect. This is a torque driven disconnect that is released via a drop-ball and hydraulic pressure differential mechanism. The tool enables the operator to ‘drop a ball’ and pressure up the tubing in order to disengage from a stuck fish or, in the case of AJ Lucas, a trapped down-hole BHA. The tool can handle both straight pull and torque loads without affecting the release device.

Previous sizes for this sort of disconnect tool had been well proven in 2 7/8 in to 31/8 in OD,

Hunting Welltonic achieves a major step change in well inter-vention fish tool design for a Coal Bed Methane operation in Australiahowever, AJ Lucas’s need had to be up to 5.00in which meant engineering, manufacturing and testing a completely different beast. Technical data and associated tool requirements were handed over to the in-house engineering team in Aberdeen; factors included high torsional and tensional strength, a range of optional low pressure shear ratings for the shear pins and the inclusion of a rupture burst disc assembly. Although these large-sized disconnects are bespoke and not held in the company’s rental fleet, the engineering group was able to supply the appropriate drawings in less than a week.

The outcome of this was a new selection of Large-Bore Latch Disconnects at 3 3/4 in, 4 3/4 in and 6 3/4 in OD. As a comparison, the conventional 3 1/8 in OD disconnect comes in at 21.47in - 1.75ft shoulder to shoulder, while the 6 3/4 in OD Large-Bore Latch Disconnect measured a whopping 53.00in - 4.41ft and weighed 280kgs (620lbs); the stainless steel drop-ball for this ‘Godzilla’ was itself a massive 3 3/8 in OD.

Take itto the limit

Accepting the proposed solutions, the AJ Lucas Drilling engineers were happy to commission six sizes of drilling disconnect and burst disc tools from 3 3/4 in - 6 3/4 in OD. Hunting also ensured that sufficient redress kits and spares were also provided. In addition Chrome Stainless Steel Drop Balls were included from 2 3/8 in to 3 3/8 in OD, as well as appropriate hybrid rupture discs of various pressure ratings. The whole project was completed in just six weeks - from receipt of the purchase order by Hunting Welltonic Asia, through engineering specification fixed in Aberdeen, to sourcing the material, manufacture, assembly and testing in Dubai, ready for shipping.

Going largeOne of the challenges facing the workshop staff in Dubai was the fact these sizes of latch disconnects had never been manufactured before let alone ‘man handled’ in the workshop. Their assembly and testing required different techniques and in some cases the rental or manufacture of specialised tools to ensure the project came together. This order was probably the most different, if not challenging in many ways, that Hunting Welltonic’s sales, engineering and workshop personnel have recently undertaken. The bonus is that it has clearly demonstrated that with the right preparation and planning, and the ability of Hunting personnel to react to the customer’s needs it was possible to achieve and deliver the desired result - all to the customer’s satisfaction.

Pradeep Meattinkara getting to grips with ‘Godzilla’

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Hunting’s Sam Houston Parkway facility houses more than 30 CNC manufacturing centres producing everything from

components used in MWD/LWD to precision engineered OCTG accessories. All this machinery requires hundreds of gallons of machine coolant each year to keep it ticking over efficiently. To sustain the company’s high reliability manufacturing processes means keeping coolant levels at the optimum - and this had necessitated replacing coolant in each machine on a monthly basis at a total annual cost of $60,000.

In addition to the significant sums spent on coolant, the facility was dogged by a smoke problem which occasionally permeated it. Produced as the coolant is activated, the smoke is a typical side effect of the manufacturing process and is often found on similar industrialised sites. But when several of the machine operators also complained about skin irritation and a pungent odour seeping from the equipment - a typical sign of bacteria build up in the coolant - it became clear that rapid action needed to be taken. A lean project team consisting of site Maintenance Manager Ron Tuttle and Equipment Specialist Dale Mollenkamp got straight to work, under the guidance of Hunting’s lean manufacturing champion Ken Oberholz. Director of Manufacturing Technology, Ken is charged with identifying and implementing lean opportunities across the Hunting stable of manufacturing businesses. While this project was small scale in terms of financial savings, it was an excellent example of how lean can make a dramatic difference to employees’ health and surroundings as well as reducing waste.

Pursuing the lean dreamWith clear economic and organisational benefits, Hunting is instilling a culture of lean manufacturing across its entire global portfolio and continues to implement measures accordingly. Ron and Dale swiftly devised a scheme to cut costs on the machine coolant, combat the contamination and clear the offensive odour.

A refractometer, used to decipher the machines’ coolant levels, quickly confirmed that the concentration of the fluid being deployed was two and a half times in excess of the supplier’s recommendation. Efficient fluid management can significantly increase savings so the project team’s first step was to stabilise coolant levels at the accurate rate of refraction.

By removing coolant and diluting it with water, the fluid mixture was soon corrected, while several previously empty 270 gallon containers were put to good use storing the contaminated fluids. The constituent liquids

Lean and cleanA lean project team at Hunting’s Sam Houston Parkway facility successfully

tackled a troubling coolant issue

could then be separated out and stored either for disposal or recycling.

The facility’s maintenance department has now been tasked with measuring each machine on a regular basis to ensure that the critical 4:6 refraction ratio is adhered to. This allows the reclaimed and rebalanced mixture to be used when machine coolant levels drop.

Lean paybackWith coolant levels under control, the team’s efforts had an immediate effect - eliminating the smoke and unpleasant odours. Employees have noted the improved air quality, and in the first four months following the scheme’s

implementation, the facility has reduced the cost of its coolant consumption by a dramatic 97 per cent. In addition, the site is now able to recycle and sell the separated oil at a commercial rate. Another bonus from the increased use of recycling has been that less coolant containers are needed each month, which has increased the availability of valuable space in the workshops.

Learning never stopsFollowing this success a future programme will focus on sustaining the correct lubricity of the coolant - a measure that the project team anticipates will significantly increase tool life and further streamline the business.

Dale Mollenkamp (left) and Ron Tuttle

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Our HuntingCommunity

Aberdeen celebrationOn the opening evening of the 2011 Offshore Europe exhibition and conference, Hunting held its seventh biannual Scottish/Japanese party. The event, which took place at the Aberdeen Art Gallery, celebrates the company’s strong business and social relationships with its Japanese partners that span more than 30 years.

Guests were invited to don colourful Japanese ‘happi coats’, before joining Bruce Ferguson with Mr Masakazu Tanimoto (below left) from MISI and Mr Akihiko Ishida from JFE Steel (right) in an authentic Kagami Wari ceremony - breaking the seal on a barrel of sake, imported especially for the evening. The gathering was also treated to a vibrant 10-piece taiko Japanese drumming display.

Time charter seminar

More than 70 guests from across the tanker market attended Gibson’s inaugural time charter seminar, which was held in the historic crypt of St Ethelreda’s church in London. The event provided delegates an excellent opportunity to examine the important issues currently affecting the industry. Discussion was led by an expert panel, comprising: Philippe Evrard, Strategy Advisor, Total; Tim Horne, Managing Director, Teekay London; Rory Butler, Litigation Partner, Holman Fenwick and Willan. Rory’s colleague Holly Colaço produced a comprehensive paper on piracy. Steve Christy and Merrick Rayner of Gibson chaired the panel. Declared a resounding success by all involved, Gibson plans to repeat the event in the coming year.

Aberdeen 2011 Decathalon

It has been another year of intense sporting endeavour for staff at Hunting’s Scottish facility, after they competed in the Aberdeen Corporate Decathlon for the second year running. Kicking off in February 2011, various events are staged throughout the year, including canoeing, ballroom dancing, highland games and the personal health challenge - which sees a team’s fitness assessed by British military fitness experts. Two new sports, orienteering and basketball, were added to the list of activities, which the Hunting team entered with its customary enthusiasm. The competition culminated in a glittering sports ball and award ceremony - an evening of celebration for the Hunting athletes, who won first place in the personal health challenge. The sterling work of Team Captain Jennifer Wood (below left) was also recognised when she was named Captain of the Year.

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Appointments and PromotionsHunting PLC is pleased to announce the following

Hunting PLCAndrew J Szescila has filled the place vacated by George Helland and has been appointed a non-executive Director of the company. Andrew is a former executive of Baker Hughes Inc, where he was Chief Operating Officer from 2000-2003. Currently he is also a non-executive Director of Frontera Resources Corporation and between 2009 and 2010 was a Director of Nova Drill. Andrew will join Hunting’s Audit and Nomination Committees as well as taking on the role of Chairman of the Remuneration Committee.

After 10 years of service to Hunting, George Helland has retired from the Board. George’s valuable contribution in his role as non-executive Director has helped position the company for growth in key areas of the world and we wish him all the best in his retirement.

Sid Harper has joined the Hunting PLC corporate office in Houston as Manager - Financial Analysis. Prior to his new role, Sid worked for companies such as Boeing and Dresser-Rand and brings with him a broad experience of reporting systems, data extraction and analysis.

At the London office we welcome Mark Jarvis as Group Financial Controller and Karl Kent as Group Tax Manager.

Hunting North AmericaJim Johnson has been promoted to the role of Chief Operating Officer of Hunting Energy Services, following 23 years with the company. During this time Jim has demonstrated great ability in the international arena, where he has directed the company’s growth. These skills will be well-suited to his new role, especially in light of Hunting’s recent acquisitions. His responsibilities include directing the group managers throughout the organisation, facilitating the consolidation of new products and executing the initiatives necessary to achieve the company’s future goals.

Assuming the role formerly held by Jim Johnson, J R Bateman has been appointed as Managing Director - Western Hemisphere, Hunting Energy Services. He joins Hunting after a 28 year career at GE Oil and Gas (previously Vetco Gray), where he held several key management positions, including Senior Vice President.

Ken Oberholz has been promoted to the position of Director of Manufacturing Technology. In his new role Ken will help each of Hunting’s business units coordinate the company’s manufacturing strategy, including developing best practices for the procurement of its manufacturing equipment. Ken will also continue to progress Hunting’s lean initiatives, which he has been successfully implementing in the USA, Asia and Europe.

Scott George is the newly appointed President of Hunting Innova. Scott has been with the company for 12 years and was previously Vice President of Operations overseeing the day to day activities of the organisation at all levels.

Hunting AsiaJoe Kitney will be relocating to Singapore to take up the new position of Managing Director, Hunting Asia Well Intervention. This business unit is moving to a larger facility, located in the west of the island, which Joe will manage once operations begin. Having spent several years living and working in the region, Joe has a good depth of experience of the market which he will apply to expanding on the company’s recent growth in this area.

Hunting EuropeAlan Reid has been promoted to Director of the European Well Intervention division and will also lead the expansion of the thru-tubing division into new markets such as the United States and Africa. Alan has run the Welltonic business in Aberdeen for several years and has considerable experience of international well intervention.

Doug Stuart has been promoted to Deputy General Manager and Technical Manager for Hunting Equipment Management Services.

Ian Park has been appointed Facilities Manager for the Hunting Badentoy and Fordoun offices; this key role will ensure that all buildings and interiors are kept in good order. Ian will also continue to head up marketing for the international group.

Dave MacWilliam has been promoted to Group Engineering Manager from his previous role as Seal-Lock Manager Europe.

Tony Laplante has been promoted to Hunting Energy Services (Well Intervention) Engineering Manager. Formerly Tony was the Welltonic Engineering Manager.

Quality Assurance

Greg Farmer has been promoted to Director Quality Assurance, Hunting Energy Services. He has spent 17 years involved in all aspects of this activity for the company. He will work with each manufacturing facility, engineering department and marketing team.

Greg takes on the role pioneered by Dean Goodson whose sudden death shocked all of us but whose wisdom and foresight endures.

Mike Webber has been appointed Quality Assurance Group Manager - Total Quality Assurance. Mike’s responsibilities include ensuring that the TQA system is properly implemented and maintains global conformity.

.Lantern Raya celebrationsThe close timing of the Chinese Mid-Autumn Festival and Islam’s Hari Raya Puasa resulted in a combined day of celebration at Hunting’s Singapore facilities. While the Mid-Autumn or ‘Moon-Cake’ festival celebrates the symbolic reunion represented by the full moon, the Hari Raya Pasa marks the end of Ramadan.

As part of the festivities, employees were organised into 10 teams and challenged to design a decorative lantern to be displayed during the shared celebrations. Traditional snacks, pastries, fruits and other varieties of food were served, before representatives from each team presented their lantern creations - each reflecting the joint celebration with colours, symbols and wording.

Four judges were left with the tricky task of selecting three entries for a special prize. The team from Service Delivery and Purchasing was awarded the top prize by MD Daniel Tan for its presentation, which included the recital of an original poem.

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Our HuntingCommunity

In support of the Canadian Cancer Society’s Face Off Against Cancer campaign, a team from Hunting’s Calgary office recently competed in a charity ice hockey tournament.

Despite stiff competition from former players in the National Hockey League, the Hunting team rose to the challenge in spectacular style, winning its division and raising more than CDN$8,000. All proceeds from the event will be used to fund Canadian cancer research, support people living with the disease and provide comprehensive cancer information in the country.

Project Harper updateAs the Review was going to print, the co-location of seven of Hunting’s North East Scotland facilities into two major sites at Fordoun and Badentoy, was nearing completion. Following a programme of expansion, the Badentoy site will support the Well Intervention and Thru Tubing business while Fordoun will oversee all OCTG threading and tubular management services. Staff will be ready to start the New Year with state-of-the-art facilities and equipment.

Demonstrating the company’s commitment to its North Sea customer base, the move underlines its intention to set the standard in service within the industry.

Doffing acquisition WL Doffing, which was acquired in September 2011, provides high precision machining components to the global energy services industry. The Doffing business is focused on equipment used in MWD/LWD and provides critical tolerance machining, prototyping and first-pass specialist production services. Delivering products to exacting machining requirements is increasingly a feature of oil and gas drilling. Doffing’s expertise is excellently matched to Hunting’s existing advanced manufacturing capability. Additionally, the company holds intellectual property for manufacturing other key components used in the well bore, strengthening Hunting’s position in the Well Construction and Completion market. Founded in 1977, the company operates from one 30,000ft sq facility in Houston and currently has a workforce of 75 personnel.

Face Off Against Cancer

Last summer saw a combined London offices team, comprising 12 determined runners from HQ and Pensions, compete in the 2011 JP Morgan Corporate Challenge, London Series. Staged in Battersea Park, the annual 5.6km road race was held in aid of Barnado’s, a UK charity working with disadvantaged children and young people. In all 26,000 participants from 332 London based companies took part in the event.

JPM Corporate Challenge

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Specialty acquisitionThe purchase of Specialty Supply in November 2011 completed last year’s acquisition programme. The company manufactures precision machined MWD parts, used in directional drilling markets around the world. Established in 2003, the business operates out of two Houston-based facilities. The company additionally provides a comprehensive range of running gear, drill pipe screens and a complete line of down-hole filter sub rentals. Since inception, Specialty has been prominent in the growing MWD market, which complements Hunting’s Drilling Tools business. These benefits will be pursued with Hunting’s operational footprint in key shale drilling regions.

Indonesians break fastEmployees at Hunting Energy Services Batam facility, came together last August with local community leaders and business partners to mark Ramadan, Islam’s holy month of fasting. Breaking the fast at sundown is often a community affair and this special occasion was held at the Pusat Informasi Hotel in Batam Centre. The break-fast was addressed by HM Ir Nur Syafriadi, Speaker of the Batam Parliament, who led the prayers and praised the community’s emphasis on mutual respect, regardless of its religious affiliation.

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Hunting PLC3CockspurStreet,LondonSW1Y5BQ,UKTel+44(0)2073210123www.huntingplc.com

Hunting PLC (USA)24WaterwayAvenue,Suite700,TheWoodlandsHouston,Texas77380,USATel+17135952950

Hunting Energy (North America)2NorthpointDrive,Suite400,HoustonTexas77060-3236,USATel+12814427382

Hunting Energy (Europe)BadentoyAvenue,BadentoyPark,PorthlethenAberdeenAB124YB,UKTel+44(0)1224787000

Hunting Energy (Middle East)1505,LOB19JebelAliFreeZonePOBox261929,Dubai,UAETel+97148865799

Hunting Energy (Asia)34BenoiRoad,Singapore629901,SingaporeTel+65(0)68616176

Gibson ShipbrokersPOBox278,16ElyPlace,LondonEC1P1HP,UKTel+44(0)2076671000