Rig-n-Dig December 2012

1Rig-n-Dig • savannaenergy.com

December 2012

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In This IssueD&D Makes Deranway AcquisitionFacility Tour for First Nation’s a SuccessNew Projects, Equipment Coming in 2013What’s Happening?

Happy New Year Savanna!

2 Rig-n-Dig • December 2012

Message from Ken Ledger

800, 311 6th Avenue SWCalgary, Alberta T2P 3H2Phone: 403 503 9990Fax: 403 267 [email protected]

Savanna Energy Services Corp. is listedon the Toronto Stock Exchange (TSX:SVY)For current stock information,visit tsx.com or savannaenergy.com

Rig-n-DigDecember 2012

Rig-n-Dig is published by Savanna Energy Services Corp. as an information vehicle for our employees and for our community. Suggestions and contributions are welcome and encouraged.

Editor/Publisher: Chesley Ryder 403 718 2885 [email protected]

Managing Editor: John Bayko 403 781 9999 [email protected]

In This IssueMessage from Management page 2Deranway Acquisition page 3Equipment Coming in 2013 page 4Fort McMurray First Nation page 5Training Facility Tour page 6What’s Happening? page 8Australia page 10Shaun Segher Memorial page 14Joyce Telford Memorial page 15

If you are reading this then the world did not end at “the end of days” on December 21st, and you can know, that since it didn’t end, I have been out last-minute Christmas shopping.Although the apocalypse may have been a myth it is no myth that 2012 was a great year at Savanna.

To find out how great, I spoke to a number of people and asked them to recall some memorable Savanna moments from 2012.

I thought I would capture a few gems describing how we managed change or how we accomplished our goals and maybe a couple of funny antidotes to make writing this easy. But no one mentioned department accomplishments or personal work achievements, rather they spoke openly about how their three year old learned to ride a bike, or how they left Savanna for a job closer to home and were welcomed back after realizing they missed us, or how much fun they had ice skating with friends from work, or how great it is to work in their “pod” (small group of people in adjacent cubicles, who knew?), or how nice it was to get to the rigs and meet the people who do the “real work”, or how they had a vote to name the fish in accounting (still not sure if it was Fishie, Hoff or Sushi that won).

Although this was not the input I had hoped would make writing this easy, it is the input that reflects who we are and how we work together — not just as coworkers but as caring individuals. It truly expressed what is unique about Savanna: we play together, learn together, work together, and succeed together.

As I reflect on 2012, it is amazing the changes that have occurred in just 12 months. There have been management changes, systems changes, process changes and policy changes almost every kind of change you can think of. Sure, not all things went the way we planned and not all changes ended

up positive but we approached every change together and our commitment has created a stronger Savanna, poised for continued growth and success.

It is fitting that we are at the end of the Mayan long count when the Mayans celebrate the end of the 13th b’ak’tun, a calendar cycle lasting 144,000 days. This celebration reminds us that we are still here, together. It reminds us to look back and see our accomplishments and to look forward knowing the journey is long. It is a time to recognize that change is constant and it is not the change that defines us but how we respond to that change that lasts.

I have learned in my short time at Savanna that what defines us: we are a group of people that responds together to whatever comes our way.

Although we may not be together to welcome the 15th b’ak’tun, 144,000 days from now. It is exciting to be together now and to be together as we continue our journey of change into the 14th b’ak’tun.

Merry Christmas and Happy New Year!

Ken Ledger, Director, Risk Management & Compliance


D&D Makes Deranway Acquisition

[email protected]

Redcliff, AB (Head Offi ce)403-548-2700877-548-2700

Calgary, AB (Sales)403-267-6737

Lloydminster, AB780-875-5171888-875-5171

Nisku, AB780-955-1929

Acheson, AB780-960-4703

Swift Current, SK306-750-1675

Weyburn, SK306-842-0659

D&D Oilfi eld Rentals

Effective December 1, 2012, D&D Oilfield Rentals, a subsidiary of Savanna Energy Service Corp., signed an agreement to purchase the assets of Deranway Enterprises Ltd.

“I think it’s a great acquisition, it’s going to be a great fit and it will really help D&D and Savanna as a whole,” says Ken Goldade, General Manager, D&D Oilfield Rentals.

“Deranway is a well-run company that has some good inventory in the well site business.”

D&D’s acquisition of Deranway will include over 200 pieces of rental equipment, many of which are considered long-life and high day-rate items.

In addition, 24 Deranway employees have agreed to make the move over to D&D.

This, James McArthur, Business Development Analyst says, aligns well with D&D’s long term strategy of expanding with more rental equipment in both U.S. and Canadian markets.

Deranway’s rental equipment includes well site trailers, trucks, lavatories, generators, loaders, and, more; however McArthur says that it is the well site trailers that will offer the greatest advantage to D&D and Savanna as a whole.

Since well site shacks are the first product requested by companies, McArthur says “the hope would be to package some of our other equipment with these and be able to offer a better package to the oil companies.”

The plan is for some well site shacks and other equipment to be sent to North Dakota in the spring in hopes of expanding D&D’s presence in that area.

The new D&D employees and well site trailers will be based out of Deranway’s locations in Brooks and Acheson, AB.

Please join us in welcoming all of D&D’s new employees!

Ken Goldade


Looking Ahead: New Projects, Equipment in 2013

Doubles Upgrade Design:

After working with the U.S. to define their requirements; looking at a variety of rig types; and compiling information; the TSG is now preparing to kick off design and engineering for two new rigs: the 750,000 lb swing up style rig for Texas and the 600,000 lb step down telescoping rig for the Rockies region.

U.S. Design: 750 Swing Up & 600 Step Down

“ ”I think it’s exciting. Not only are we prepared to build two new and improved teledoubles, but we’re putting ourselves in a position where we’ll have designs for two other styles of rigs later in 2013 if we decide it’s the time to start building those.

— Stephen Lougheed, Manager, Capital Projects

Mast in Working Position

107’‐440 Step Down Slit Substructure Telescopic Mast c/w Padmaster

Rig Up Steps Step ❾ TSG has positioned itself to be able to construct two 440,000 lb AC teledoubles. Long-lead items such as pumps, drawworks, and VFD system have already begun to arrive in Savanna’s Nisku yard. By getting this head start, the decision to build the rigs can be implemented much more quickly.

TSG is also working with our Operations team and outside engineering consultants to finalize design of the mast and sub for the new and improved deep doubles. The final product will have a wider floor and larger rotary table, as well as a Canrig top drive, Altarig drawwworks, two F-1600 pumps and more electric power.

TSG will continue to work with the Operations team to oversee the construction and coordinate rig up and commissioning of all upgrades and new builds from Savanna’s Nisku office.

The Technical Services Group (TSG) at Savanna works hard all year long to keep our technology new and innovative. Here is a sneak peak at what they will be working on in 2013.


Fort McMurray First Nation Relationship Formed

The Aboriginal Partnerships department is pleased to announce that Christina River Enterprises Limited Partnership (“Wholly owned by the Fort McMurray First Nation #468”) and Savanna Energy Services Corp. have signed a Memorandum of Understanding (“MOU”).

This event marks the beginning of a positive working relationship with Christina River Enterprises LP. We look forward to working together with Christina River Enterprises LP to begin the process of becoming Partners on a service rig and exploring opportunities in the oil sands area.

Did You Know?

Fort McMurray First Nation is located in the northeast part of the province of Alberta in the Treaty 8 territory. Fort McMurray First Nation consists of four areas, Reserve #175 is located about 20 kms east of Fort McMurray, the other three areas, #176, 176A and 176 B are located near Anzac on Gregoire Lake approximately 50 kms southeast of Fort McMurray. Fort McMurray First Nation is a Cree and Chipewyan Nation, also a member of the Athabasca Tribal Council.

Alberta Regional Oilsands Map - Fort McMurray First Nation area

From L to R (Back): Bill Woodward, Walter Cheecham, Tweela Nepoose, Laura Koronko (Front): Alain Joley, Brian Cardinal, Betty Woodward, Dwayne LaMontagne

“ ””

Any oil and gas analyst will tell you that exposure to the oil sands gives long-term viability. For that reason, we think that a relationship with the Fort McMurray First Nation will create long term sustainability for the company.

— Brian Cardinal, Business Development & Partner Relations


First Training Facility Tour a Success

On December 6, 2012, the training facilities in Lacombe played host to a number of representatives from partnership First Nations communities across Alberta.

These representatives were able to take a tour of the greenhand training facility and ask questions so they can provide better knowledge to individuals in their communities hoping to go through the training and work on the Savanna Well Servicing rigs on their land.

“I think the day was awesome,” says Laura Koronko, Diversity Coordinator at Savanna.

“Everyone was able to gain insight into what goes on at the training facility and get their questions answered.”

Charlotte Sweetgrass, Executive Assistance, Kainai Resources on the Blood Reserve agrees. She says that before the tour, she wasn’t sure what Savanna had to offer to individuals wanting to get into the industry, “but seeing exactly what they do out there, and seeing the training rig and everything gives me the information I need to answer all the questions people ask when they call in.”

Sweetgrass admits that on the reserve, its hard for young people to gain the training needed to get good paying work, mainly due to their financial situation.

“What Savanna is doing right now is really great,” she says. “Really all they have to do is get here and everything is taken care of for them. They are just doing a great service for these young people.”

Joe Pastion, Manager, Economic Development on the Dene Thà First Nation, says that their partnership with Savanna offers their community the chance to invest in their future.

“Sustainability is the biggest benefit for our community, it’s investment in our community, our future, and our youth.”

Koronko hopes that when people see the level of training that’s being offered, the facilities will be utilized more and be used as a tool for Savanna’s partnerships able to contribute to the sustainability of First Nation’s communities across the province.

Charlotte Sweetgrass

Joe Pastion


Savanna Employees Save Lives

On the morning of December 3, 2012, my crew and I were driving toward Weyburn, Saskatchewan when we saw a white truck in the ditch that had been in some sort of accident.

We pulled over and got out of our vehicle. The driver and another uninjured occupant of the other vehicle informed us that their crew had been in a head on collision.

When we approached the truck, we saw one man had his feet pinned under the drivers’ seat. One of his crew members went to remove him from the vehicle but we noticed that he had experienced head trauma, so, with our first aid knowledge at front of mind, we advised them to leave him be.

The rest of my crew, who were following not far behind, stopped at the scene as well.

We directed them to retrieve first aid kits, blankets, sweaters, and coveralls: anything that could be used to keep the injured crew warm on the cold, snowy night.

While we waited for EMS to arrive we followed First Aid procedures: checking his breathing, applying gauze to his wounds, covering him with clothing, and attempting to stabilize him.

When paramedics came, we immediately escorted them to the man trapped inside the vehicle. We helped them to get his feet out from under the driver’s seat, move him onto the spine board, and carry him to the ambulance.

Shortly thereafter, another ambulance came and we all worked together to take care of the other injured individuals on scene.

- Billy Wilson, Area Operations Manager

Savanna Energy Services Corp. would like to thank the crew of Savanna Well Servicing’s Rig 37 for demonstrating the courage to do the right thing and assisting

victims of a vehicle accident they came upon when traveling home from work. Good work demonstrating the Value of Integrity and caring for others!

Rig 37 Crew (From L to R): Michael Trojan, Sam Johnson, Aaron Lenos, Elarbi Elbhilat, and Victor Howells


What’s Happening?

Robert Clelland (Rig 92); presented by Dale Mohr John MacNeil; presented by Al Cyr John Miller; presented by Lorne Stang

Joe Gibeau; presented by Bruce NashAlex Petrie; presented by Robert Hemsing Colin Conlin; presented by Dave Berrecloth

Neil Gould; presented by Cindy Orom

Stewart Smith; presented by Rolly LintGord Pack; presented by Bill LawlessJohn Wurz (Rig 85); presented by Al Cyr

Terrence Gould; presented by Dave Hoogendoorn Adam Guindon; presented by Darren Smith

Greg Newell; presented by Darren SmithPat Rawlek; presented by Darren Smith Marlin Robblee; presented by Ken Isaac

Five year rings!


What’s Happening?

Jackson Duncan, son of Brandon and Ashley Duncan, was born on May 11, 2012. After Brandon was hired on as a Derrickhand for Rig 47, and Jackson has taken to sleeping on his Savanna hat!

The US Corporate office worked to collect 155 lbs. of food and fifteen $25.00 HEB gift cards to help the local food bank provide Christmas dinner to less fortunate families. Well done!

Congratulations to DJ Patterson, Amy and big brother Stryder, on the new addition to their family! Korbin Jay Patterson, was born November 2, 6lb, 7oz.

Don Sealock, Office Manager, and David Tongs, Maintenance Coordinator at the D&D Redcliff office.

When Natasha Cooper (Accounts Payable Coordinator) left for vacation, Tamara McCuaig, Alexis Jennings, Chance Ismond and Cara Taber set to work to decorate her office. This was the result!

Congratulations to Rig 635 for receiving this award for doing a record well for Reliance Energy in West Texas!

Jim Okrusko (Purchaser) delivering toys from Savanna Drilling’s toy drive to the Stollery Children’s Hospital in Nisku, AB.

Wylie Whelan (Rig Manager, orange); Caleb Boucher (Operator, Green); Wilson Parker (Derrick, Red); Ethan Wight (Floorhand, “Agressive Salmon (Pink)”; Jacob Warhuus (Floorhand, Baby Blue); and Ken Mullen

Thank you to Rig 32 for having the communications team out for a visit! The crew: David Judge, Jared Bruyere, Aaron Schermerhorn, Ben Bignell, and Max Ouellette.

This month Derrick soaked up some sun with Camille Nieva (HR Advisor) in the Mayan Riviera!


Australia

Which Aussie held the world record for skolling 1.4L of beer in the world record time of 11 sec?

a) Former prime minister Bob Hawke, then Rhodes scholar at Oxford

b) Wikileaks founder Julian Assange, while staying at posh Ellingham Hall during his extradition hearing

c) Feminist and author Germain Greer, who said the amber ale put a smile on her dial

d) Author Clive James, on getting his first by-line in a London newspaper

What do Australian’s love according to the 1970’s advertising jingle?

a) Mashed potatoesb) Football, meat pies, kangaroos, and

Holden carsc) A weekend with the in-laws in New Zealandd) Koalas and a cold VB

Answer to last month’s OZ IQ Test! How did you do?

Check out this month’s question!

This month’s new words:Lairy — flashly, “Gee that’s a bit lairy!”Idiot box— television, “Watched the idiot box all night.”Hooroo — goodbyeGalah — a silly person, “What a galah!”Coathanger — The Sydney Harbour Bridge

Do You Speak Australian?

IT News — Citrix is Changing As part of the Windows 7 Rollout, users of Dynamics, Spira and other Citrix-hosted programs will have a new way to access these programs. The Citrix Online Plugin is being replaced with a new Citrix product – Citrix Receiver.

Citrix Receiver will run in the background and allows users to connect to a web page to access the programs currently accessed via the plugin.

This website – https://access.savannaenergy.com is accessible from anywhere in the world, on any computer that has the Citrix Receiver installed on it.

This will eliminate the need for remote users to connect to the VPN before connecting to their Citrix applications.

To log in to the website, users will use their Windows credentials, which will connect to a site similar to this:

While not all users will see all programs listed here, this will become the launch point for all Citrix programs.

From here, the programs will operate as per usual.

Thanks!

IT Team

New Addition to the Savanna Family!

The Savanna Team would like to extend their congratulation’s to the Lullfitz Family. Nick works on Rig 406 as a Lead Floorhand and Felicity works in the office with the HSE Department. Nick and Felicity were blessed with Conrad Hendrick on the 28 November. Both Mum and babe are doing fine.


Australia

Savanna Trucking Operations The Savanna Trucking Division have expanded their role from initial rig moving to include drill casing and tubing deliveries, Drilling and Completions stores deliveries, well water transport and equipment rental, Savanna Transport are operating on both 12 and 24 hour continuous operations able to move rigs 24 hours per day.

Transport logistics is a demanding and complex industry. The allocation, logistics, control and regulations placed on Savanna’s Trucking Operations from various stakeholders, such as local, state and national government authorities, clients, conditions of roads, etc Truck pushers are not only pushing rigs but controlling an array of tasks relating to the support of our drilling and completions rigs in the field. Their role in supporting and governing the stringent controls placed upon the management of heavy vehicle movement in Australia is testimony to a job well done.

Logistics News from Tom Ingledew

Savanna Pipe YardThe Savanna Pipe Yard in Toowoomba recognised as the most professional pipe yard in Australia has grown significantly since the contract commencement early in 2012, The Pipe Yard covers an area of 12000m2 and was created following Savanna Trucking winning a 5 year contract with Metals One to transport and store casing and Tubing for Savanna’s major customer Origin APLNG, the Savanna Pipe yard is expected to increase in volume in 2013 by up to 50%.


Savanna recently deployed two work over rigs to Santos. Rig 67 completed testing and spuded there first well December 15 /12 on a long term contract. Rig 66 also started with Santos to work in the Cooper Basin leaving the Toowoomba yard on Saturday December 15 2012 on a short term contract.

I would like to acknowledge the efforts of all who were involved in commissioning these Rigs. A job well done, keep up the great work. Savanna Australia hopes this will be the start of a long relationship with Santos

Operations News from Don Goldade

Australia


Dareeion’s Story

In May of this year, Dareeion Knockaert, son of Raymond Knockaert, Rig Manager on Well Servicing Rig 37, was experiencing pains in his legs.

At 10 years old, everyone brushed these off as growing pains, until one day when the family went camping and they got so bad he couldn’t even walk.

Raymond and his wife took Dareeion to the nearest hospital, where he received an x-ray and MRI before being transported from Saskatchewan to the Winnipeg hospital where he was able to see a specialist and receive a biopsy.

From these tests, he was diagnosed with Sarcomas, a type of bone cancer, on August 14, 2012.

“It was such a shock,” Raymond says. “One minute you think your kid has growing pains and the next you find out its cancer. It turns your life around 180 degrees.”

Following the diagnosis, Dareeion went through 12 weeks of chemotherapy, and then was flown to Vancouver for a 14 hour procedure to replace his femur. Unfortunately, there were some complications with the healing process, and fluid was being held inside, so he had to stay another week in Vancouver and undergo another procedure before he could come home.

Now that he is back at home in Saskatchewan, Dareeion still has 10 more weeks of chemotherapy to go, which involves driving four hours to the hospital on a regular basis.

With two younger children, the Knockaert family is constantly adjusting, but doing relatively well, especially Dareeion, Raymond says.

“He knows that he has to go through these things if he wants to be here, so he’s getting through it.”

Even though the treatment is nearly done, Raymond says his son currently uses crutches and will still have a year or so of rehab and recovery from the surgery.

Unfortunately, he will probably never be able to play hockey or football, or be super active again, Raymond says, but with time he should be able to walk on his own.

Raymond is thankful for the support of his family and would also like to thank Savanna Well Servicing in Carlyle for donating the proceeds from their Christmas party to his son.

Dareeion’s leg after surgery.

Dareeion’s leg after surgery.


Seghers, Shaun Michael late of Weyburn, Saskatchewan passed away tragically on Tuesday, December 11, 2012 at the age of 25 years. Shaun is lovingly remembered by parents, Allan and Kathy Seghers of Weyburn, SK; brothers, Steve (Tamara) Seghers of Weyburn, SK and Scott (Meghan) Seghers of Weyburn, SK; the two most precious people in his life, niece and nephew, Samara and Titan Seghers; aunts and uncles, Don (Rose) Hornsberger of St. Albert, AB, Shirley (Bob) Wanner of Okotoks, AB, Sharon (Howard) Cornick of Fairmont Hot Springs, BC, Carol (Rudy) Tangedal of Salt Coats, SK, Lori (Dallas) Locken of Tribune, SK, Wayne (Carole) Seghers of Fairview, AB, and Val Foote of Weyburn, SK; A/K Combines Hockey Team; as well as numerous cousins, relatives and friends. Donations in memory of Shaun may be made to the Arcola Kisbey Combine Hockey Club or the Canadian Diabetes Association. Condolences may be left at: www.fletcherfuneralchapel.com

— Published in Regina Leader-Post Dec. 14 and 15, 2012

Shaun SeghersDriller, Rig 361987 – 2012


TELFORD, Joyce - (October 8, 1957-November 22, 2012) A long time resident of the Grande Prairie area passed away at Point West Living Hospice on November 22 2012 at the age of 55 years. Joyce was born in Wolfville Nova Scotia. Her father being in the military, life took Joyce across Canada. In 1970 she moved with her family to Morinville Ab. Where she met her husband Brian in 1972. They were married in 1974. For the next 40 years Joyce and Brian built a family and careers of their own. Taking them to Hinton, High Prairie and then to the Grande Prairie Area. Joyce worked for Savanna Energy Services Corp. for the last 6 years. She had numerous friends she scrap booked with, camped with and just enjoyed each others company with. She will be sadly missed by her husband Brian, her children Charlene (Brian), Melissa (Walter),

Ryan (Miranda) & Keith. Her grandchildren Jesse, Justin, Dakota, Zachary, William, Emily & Kayla. Her mother Avis Foster, her sisters Shirley (Marcel), Vicki (Barron). Mother-in-law Shirley Telford, brothers-in-law, Dennis, Paul (Linda), Edward (Anne) Jeff (Sharon). Her sister-in-law Kathy (Brian) & numerous nieces & nephews. Joyce was predeceased by her brother Robert Foster, her father Gerald Foster and her father-in-law Edward Telford. Joyce’s husband and her four children would like to take this time to thank the staff at the Cancer Clinic, the staff at the QEII hospital 5 North and all the staff at Point West Living Hospice.f you wish to send flowers send to 12802 88a Street Grande Prairie, AB T8X 1T6 or a donation can be made to MADD.

— Published on yourlifemoments.ca

Joyce TelfordField Administrator

1957 – 2012


Honoured to be Changing Lives for 15 Years.

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and we want to thank you for your unwavering support.

Give. Volunteer. Engage.

You can continue to help those in need by volunteering your time or donating to the shelter to brighten someone’s new year.

Visit innfromthecold.org to see where we need you the most.

Suite 106, 110 - 11 Avenue SE Calgary, Alberta T2G 0X5Phone: 403.263.8384 | Fax: [email protected] | innfromthecold.org

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Rig-n-Dig December 2012