Rig-n-Dig February 2012

Rig-n-DigFebruary 2012

S

What’s Happening?

In ThIs Issue Canadian Drilling Record

Innovation on Rig 420

www.savannaenergy.com 2 February 2012

Message from Management

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-DigFebruary 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: Janine Tannahill 403 267 6739 [email protected] Editor: John Bayko 403 781 9999

[email protected]

In This IssueMessage from Mgt. page 2Canadian Drilling Record page 3Innovation on Rig 420 page 4Rig Manager Conferences page 5What’s Happening? page 6Canadian Benefits page 8Savanna Classifieds page 9Savanna Phone Directory page 10Last Page page 11

Message from Technical ServicesI’m pleased to take this opportunity to formally introduce Savanna’s recently expanded Technical Services Group.

Moving into a second decade of Operations, and consistent with our core values of excellence and sustainability, Savanna determined it prudent to assemble a group of individuals focused on three key thrusts:

1. Efficient design, construction and deployment of new equipment2. Proactive research, evaluation and implementation of new technologies3. Provision of timely, responsive and diligent engineering support to Operations

That group has now been assembled, and includes some of the top project management and technical talent that I’ve worked with over the past 20 years. The fact that Savanna is able to consistently attract high caliber individuals throughout the organization is a clear testimony to Savanna’s vision, values, and reputation.

The Technical Services Group now consists of Adam Armstrong, Vlad Bilkun, Matthew Brown, Milan Cerovsek, Mitch Cooper, Bruce Freebairn, Adel Giurguis, Vasily Gleba, Leon Jantzen, Allen Krahn, Allen Littlewood, Stephen Lougheed, Dean Malowany, Bishwanath Saha, Darren Smolski, and Melissa Tan. Together we are committed to partnering with Savanna’s operations and support personnel in the design, manufacture, deployment, and support of leading edge drilling and well-servicing equipment.

Savanna has come a long way in its first decade. I know I speak for the entire Technical Services Group when I say that we are excited to be part of the team, and look forward to celebrating continued success together.

- Jim Wilton-Clark

Some of the members of the Technical Services Group. Left to right: Jim Wilton-Clark, Stephen Lougheed, Leon Jantzen, Melissa Tan, Matthew Brown, Allen Littlewood and Milan Cerovsek

3February 2012 Rig-n-Dig

Rig Profile

Canadian Drilling RecordDecember saw a first for the drilling industry in Western Canada. Rig 634 reached a

record depth for a telescopic double drilling rig whilst drilling for their client Apache

Canada Ltd. Congratulations to the crew on Rig 634!

Savanna Drilling Rig 634 reached a major milestone on December 09. This milestone was not only a first for Savanna, but also a first for the drilling industry in Western Canada and Apache Canada Ltd—Rig 634’s client. After 32 days of drilling (spud to finish), Rig 634 reached a total horizontal depth of 5454 metres; a record depth for a telescopic double in Western Canada and the longest lateral well for Apache.

The record breaking well site was located just north of Fox Creek off Simmonette Road in north western Alberta. The rig has since moved to north of Edson and is drilling a two hole pad, still for Apache Canada Ltd. Rig Manager Ron Carswell says they will probably be drilling for Apache until the end of April.

Rig 634 is one of Savanna’s First Nation partnership rigs—owned through a 50/50 joint venture partnership with Sturgeon

Lake Cree Nation since November 2006. Sturgeon Lake Cree Nation is located about 360 kilometres north west of Edmonton, Alberta, around the beautiful shores of Sturgeon Lake. Sturgeon Lake Cree Nation is a member of the Treaty 8 First Nation and is also affiliated with the Western Cree Tribal Council.

A vibrant community, Sturgeon Lake Cree Nation is at the forefront of economic, environmental, social and cultural sustainability. Constantly adapting to the changing environment, the community has many services and partnerships offering business, employment and training opportunities for community members. Along with their partnership with Savanna, Sturgeon Lake Cree Nation also has a majority ownership of Achieve Energy Services, a field construction management company with a focus on facility and pipeline construction.

Savanna’s Aboriginal partnerships are an integral part of our community involvement. Our partner communities participate as both investors and valued employees. Savanna is proud to continue and foster these partnerships and it is great to see such a milestone achieved by one of our partnership rigs.

Of course, special acknowledgement goes to the crew of Rig 634 for their hard work and commitment to Savanna and their client, Apache. Savanna is proud of the people we have working for us and we congratulate the crew of Rig 634 on this astounding achievement. Keep up the great work and thanks for setting the industry standard!

The award received by Rig 634


Rig Profile

Innovation is alive and well on Savanna Drilling Rig 420. Together with his Derrickhand, Charlie Gray, Rig Manager Gord Currence has devised a system to not only cut down the amount of water used on site, but also limit the number of trips being made by the water hauling and vac trucks. By setting up a system where the floc tank is plumbed into the centre fuge, the solids drawn from the well are removed before reaching the floc tank. The solids can then be hauled away by the vac truck and the remaining water recycled back to the rig. Basically, the system allows for continuous flocing.

Currence and Gray devised a similar system many years ago when working together for another drilling company. The need to create the system came about to try and limit water haulage. Originally using a devlin tank with an auger to the

Innovation on Rig 420With the use of water always a concern on a drilling

rig, Rig 420 has devised a unique system to limit water

usage, haulage and disposal.

centre fuge, their current system works in much the same way using a floc tank.

Water conservation is an important consideration for all businesses operating in oil and gas. Water is an integral part of drilling as it mixes with the drilling fluid to create mud. This mud is then piped down the drill pipe to lubricate the drill bit and then pumped back up the well, removing the cuttings with it. The cuttings are separated from the mud and then disposed of, along with a lot of the water used during the process. Currence’s process lowers the amount of water disposed of with many of the vac truck loads consisting of solids only.

The benefits to the system running on Rig 420 are numerous, with the main benefit being more money in the client’s pocket at the end of the day. Rather than using approximately 650 cubic metres

of water, the rig only uses about 200-250 cubic metres. This in turn saves money spent on water haulage, less vac truck trips, less money spent on maintenance and fuel for the trucks, less money spent on mud chemicals and it also speeds up the drilling process, with many wells drilled on average in three to four days rather than the usual four to five days. Overall, Currence says the consultants are happy with the rig’s performance and the return.

Currence also mentions another benefit to the system is using less water. With this year’s low snow fall and dry period, forward thinking and water conservation is something that needs to be considered. If Alberta continues to have a dry winter, then it is possible there will be a water shortage in some areas during the summer months. The system is also especially good if working in an area where access to water is limited.

The crew from Rig 420. Left to right: Kory Moore (Motorhand), Shane Ruchotzke (Floor Hand), Willis Heptner (Driller), Charlie Gray (Derrickhand) and Karter Kosoloski (Lease Hand)


Rig Manager Conferences

Savanna’s Annual Canadian Rig Manager Conferences have been

scheduled for April 23-25 and April 30-May 02. This year’s lineup of

presentations and activities are sure to be winners with the addition

of an awards night and trade show.

Annual Canadian RigManager Conference

April will see the commencement of Savanna Energy Services Corp.’s Annual Canadian Drilling and Well Servicing Rig Manager Conferences. Held during Spring Break-up, the conference is an excellent opportunity for Rig Managers to brush up on their leadership skills, ask important questions, network and learn what’s new in the industry.

Due to popular demand, this year’s conference will again be held in two different time slots to accommodate work rotations—so you can choose which conference to attend. The first conference will be held April 23 to 25 and the second between April 30 and May 02, both at the Capri Hotel in Red Deer, Alberta. The theme for this year’s conference is “Bringing out the best in people” with a focus on employee retention and how we can outshine our competition.

It is anticipated that a total of 250 people will attend both conferences (approximately 125 per conference). The primary attendees will include Canadian Rig Managers from Drilling and Well Servicing as well as their Field Supervisors, Executives and representatives from Savanna’s various corporate divisions like Benefits, IT and Sales.

A variety of activities and presentations have been arranged for the two days. Based on feedback from Rig Managers, speaker’s

topics will range from staff retention to financial planning, to presentations on safety and Rig Manager Performance

Assessment criteria. A panel discussion has also been arranged for the first day, where the Senior Leadership team will answer questions from the audience.

A couple of new additions to the conference this year include a trade show, awards night and a ‘fun money’ casino and auction. The trade show will be held on the second day and incorporate representatives from departments within Savanna as well as outside vendors and suppliers. So, if there is a question you have about your benefits, you’re wondering how to sign your guys up for training courses, or you’re just curious about our recruitment

strategy, then the trade show is place to find your answers! The awards night will also be a highlight of the two and a half days—recognising the work of three Rig Managers and one Field Superintendant from each division.

Relationships are one of our core Values and the Rig Manager Conferences will provide ample opportunity to build upon this value. It will provide everyone with the chance to put faces to names and build trust between out front line managers and the corporate services that support them.

If you have any questions regarding this year’s Canadian Rig Manager Conferences, please contact Jessica McLeod at 403 267 6776 or [email protected]. A more detailed agenda will be available soon.

Images courtesy of Kristi Osmond; Rig Manager Conference 2011


What’s Happening?

Karen with Richard Dickson from CTS

The crew from Rig 36. From left to right: Barry Rudd, Sterling Labatte, Jordan

Marcoux and Steve Seghres

What’s Happening?CTS Profile WinnerThe folks from Custom Travel Solutions (CTS), Savanna’s new corporate and leisure travel provider, recently awarded Karen Wasylyshen, HRMS Specialist, a prize package for being the first Savanna employee to complete their online travel profile. Congratulations to Karen!

An online personal travel profile must be set up with CTS before making any travel arrangements. To find out how to do this, a video tutorial is available at http://sesc-vmsp2010/os/Pages/Welcome.aspx.

CTS can help with both personal and corporate travel and offer Savanna employees some great perks. To find out more information, have a read through Savanna’s Travel Policy located on Savnet under policies. Any questions you have can also be directed to Liz Daubney at [email protected].

Birthday Time!Brad Kingston (left), VP and General Manager for Savanna Well Servicing Canada, celebrated his 40th birthday on February 09. Surprised with a fantastically decorated cake, Brad was happy to play along with the festivities.

And George Chow (right), Executive VP Corporate, turned 50 on February 27. He was surprised with 50 cupcakes from Bliss and Co. cupcakes.

Rig of the MonthSavanna Well Servicing Rig 36 was awarded January’s Rig of the Month-Safety Leadership Award. Congratulations to all the crew members: Barry Rudd (Derrickhand), Sterling Labatte (Floorhand), Jordan Marcoux (Driller-filling in for Sean Seghers) and Steve Seghers (Rig Manager).


What’s Happening?

We also received another shot of 652E with a large helicopter parked right beside it. The client, Petrobakken, flew in with a photographer to take some photos of the rig and the helicopter. Feels like we should almost give Rig 652E ‘VIR’ (Very Important Rig) status!

Doghouse

Engines

Electrics

Motors

Rig 652E ShotsThese panoramic shots of various buildings on Rig 652E were taken and sent in by Greg Hobbs. Greg is the Motorman for 652E and was able to capture some great shots of the motors, engines, doghouse and electrics.


Canadian Benefits at a Glance

How do I prepare before travelling?Please read the brochure and front and back of your GMA card before traveling. Take both the brochure and card with you. Let your travel companion know where this information is and how to use it on your behalf. Leave a copy of the brochure and card with a family member so they know what your medical emergency services coverage is, should they need to use it during your medical emergency.

What do I do in the event of a medical emergency?Call emergency responders immediately for emergency medical care such as an ambulance, or go to the nearest medical emergency care centre.

What’s Next?Once medical care has been initiated, either you or your travel companion must call GMA.

Global Medical AssistanceOne of the benefits provided to Savanna Energy Services employees is Global Medical Assistance. GMA

covers 100 per cent of medical emergency services whilst out-of-province or out-of-country. GMA also

covers other services associated with a medical emergency while out-of-country.

On the back of the GMA card are phone numbers to call depending on your travel location. Call the appropriate number and ask for a medical emergency claim number.

What information will GMA require from me to get a claim number?Policy Number 328620/164117 held with Great West Life (found on the front of your card)Your GWL ID NumberYour name Your Employer’s name - Savanna Energy Services Corp

What do I do with this claim number?Give your claim number to all treating facilities. They will use this number to submit their invoices and receive payment from Great West Life. There is no need for you to pay out of pocket for any service. Great West Life will take care of all medical emergency costs on your behalf.

The GMA BrochureThe brochure has a lot of services that may be utilized during a medical emergency. You may call GMA to have

them co-ordinate any of these services for you by giving them your GMA claim number. Both the brochure and your GMA card are provided to you in your benefit information package. You may also print off extra copies from the Employee Portal on Savnet.

What if I or my family need assistance understanding my benefits?Please feel free to call your Benefit Administrator at Savanna for assistance or support.

• Employees with Drilling within Canada - Adiel Rautenbach 403.267.6779

• All other Employees - Sylvia Sargeant 403.214.5950

Provincial Health Care CoverageAt some point during the processing of a claim, GMA will require your provincial health care number to co-ordinate payment of services obtained whilst travelling. If you do not have provincial health care coverage, you will not be covered by GMA Insurance and will be responsible for any expenses.

Have a wonderful and safe travelling experience!!

The Canadian Benefit

Department

If you have any questions, please contact your Benefit Administrator:Savanna Drilling within Canada: Adiel Rautenbach, 403.267.6779,[email protected] other employees: Sylvia Sargeant, 403.214.5950, [email protected]

Emergency Numbers

Call collect from ANYWHERE in the world:

Baltimore, USA 410-453-6330

or call Toll-free:

from within Canada and USA 1-800-527-0218from within the United Kingdom 0-800-252-074

from within Mexico 001-800-101-0061

(if you have difficulty with any of the toll-free numbers, call the Baltimore number shown above, Collect)


Savanna Classifieds

@AskCustomTravel Custom Travel Solutions Custom Travel Solutions

Sip * Savor * Safari South Africa ~ Presidents Tour

Tour of Soweto Private game lodge safari experience (two different lodges 4 nights)

Wine tasting and touring in the Cape Winelands National Gallery, Cape Town

Table Mountain and Cape Peninsula Tour Golf while on safari and in the Winelands

Luxury accommodations throughout

For $6449 Land Only Experience South Africa on an Escorted Tour

Contact Sheri Bennett at [email protected] or visit our website @ www.custom.travel/vacation-travel/specialty-vacations/ for itinerary details

S

Travel Roadshow

presented by

Savanna Energy

Custom Travel Solutionsand

April 1911:00am - 1:00pm

Head Office, Calgary

Have something to sell or give away?

Looking for something buy?

Place an ad in the Savanna Classifieds!

For more information and inquiries, contact Janine Tannahill at:

[email protected] 267 6739


Savanna Phone Directory

Phone DirectoryBenefits

Communications

Company Cell Phone Help


IT Help Desk

Payroll

Travel Inquiries

Adiel Rautenbach 403 267 6779

Sylvia Sargeant 403 214 5950

Jeff Miller 281 907 4800

Darlene Hutchinson 403 267 6746 Your local field office

Business Hours 403 267 6700 Business Hours 07 4633 6787

Cheryl Dmitroca 403 781 9995 Marcia Wilkinson 07 4633 6717

Elizabeth (Liz) Daubney 403 718 2887

Custom Travel Solutions 403 272 1000 1 877 864 4562

Cameron Torell 403 267 5525

After Hours 403 801 9234 After Hours 0417 790 467

Paula Renner 403 718 2885

[email protected]

Heather Hemsing-James 403 214 5951

Reception 403 503 9990John Bayko 403 781 9999

DRILLINGWELL SERVICING, D&D, CORPORATE, ROTATING

USA EMPLOYEES

All Canadian Divisions Australia

LEISURE AND CORPORATE TRAVEL

Canada USA

Canada & USA Australia


Last Page


In MemoriamDebbie Hepfner

1958 - 2012

Debbie Hepfner was employed with Savanna Energy Services

Corp. for five years. She began as a receptionist and worked

her way to senior administrator for Savanna Drilling’s Redcliff

office. The one thing everyone will remember about Deb is her

smile—she was always pleasant and respected everyone. She did

everything that she was asked to do, if it helped someone out.

Deb was a great team player.

We will all miss Debbie and our thoughts and prayers are with

her and her family.

- Gene Carriere,

VP Operational Support

Deb passed away

February 17 at

Medicine Hat,

Alberta. She

was 53.

Tracey Vavrek, Executive Director Community Foundation of Greater Grande Prairie 200, 11330 - 106 Street, Grande Prairie, AB T8V 6C9 Business: (780) 538-2820 Fax: (780) 532-0672 E-mail: [email protected] Website: www.buildingtomorrowtoday.com

Together we are improving our communities – the places where we all live, work, play and raise our kids. The place we call home. We’re all about community. We’re all about forever.

To learn more about the foundation movement, visit our website: www.buildingtomorrowtoday.com

All For Community Inspire Invest Forever

A Proud Member of:

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Rig-n-Dig February 2012