Rig-n-Dig February 2013

1Rig-n-Dig • savannaenergy.com

February 2013

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2 Rig-n-Dig • February 2013

In 2013 one of our main goals as a company is building an HSE culture we are all a part of and that we can all impact in a positive manner—no small challenge for an organization of our size in our industry. Especially when we look at the “S” in HSE—which traditionally was the focus of HSE departments—safety takes on very different meanings for each of us in our daily activities.

At Savanna we have people who are working in areas where they must always consider safe behaviour and safe procedures; we also have people who work in environments where safety may be considered an afterthought because the hazards present are minimal.

When viewed through this lens, it can be hard for us who don’t work directly on the rigs, to see how we can impact Savanna’s HSE culture so I’d like to shed a little light on the subject.

Savanna cares for the Health, Safety, and Environment of each and every employee which means that in addition to striving for no incidents on our rigs and protecting our Rig Technicians, we also strive to provide things like: a comprehensive Employee Assistance Plan and health benefits; a generous PTO policy to help with a positive work-life balance; a Savanna-centric training facility which provides training exclusive to Savanna’s equipment; and free taxi vouchers for Savanna staff and their families at Savanna events where alcohol may be consumed.

You see, the Health, Safety, and Environment of Savanna employees extends beyond the boundaries of the office or rig lease and when looked at from this perspective, it can become easier to see how we can all impact our HSE culture.

With this in mind, we asked each and every Savanna Australia employee, on a voluntary basis, to come up with their own Personal HSE Commitment Statement. Ken Mullen, John Cooper and myself all led the way by writing our own Personal HSE Commitments and we all agree that it was a very thought provoking and inspiring exercise.

As Mick Brennan, our HSE Team Lead in Toowoomba said, “we spend so much time telling people what to do to be safe, we also need our people to tell us and their mates what they are going to commit to and do to stay safe and keep those around them safe”.

In Australia we had over two thirds of the employees including rig crews, truckers, people in the shop and offices prepare a Personal HSE Commitment.

Below I have included one particular Personal HSE Commitment Statement from Oli Pearl, a Driller on Rig 64, which really stood out for me. I would like to challenge every Savanna employee to complete their own Personal HSE Commitment Statement.

HSE: A Priority for All — A Message from Dwayne LaMontagne

our forward thinking

Oli Pearl, Driller, Big Rig 64, Savanna Australia

Personal Health, Safety and Environmental (“HSE”) Commitment Statement for Savanna Australia: I am personally committed to building and promoting a pro-active HSE culture in all of Savanna’s operations and activities in Australia.

I will strive to achieve this by:

• Puttingthesafetyandwellbeingofmyentirecrewover all operations.

• MakingsuremyactionsandbehaviorsexceedSavanna’sexpectations.

• NotonlyadheretoSavanna’spolicyandproceduresbut strive to supersede them.

• Beconsideredasasafetyleaderbymypeersandhave my crew feel they are safe at all times, in all tasks,nomatterwhat.

• Beapproachabletoalliftheyfeeltheyareunsafeor are not completely comfortable in performing anytasks.

• Conveythefactthatanyonecanstopthejobregardlessofpositionandexperience.

• Haveallmycrewbesafetyleadersandpersonallygivethemthetimeandknowledgetodoso.

• Learnfromallincidents/nearmissesandnottodwellonmistakes.

• Stop,documentandlearnfromallunsafeactswithoutsinglingouttheindividual/s.

• Acknowledge,complementandappreciateapositivesafety culture.

• DothebestjobIcaneveryday.

• Personallyhelpnewhandsfeeltheyarepartofthecrew, an integral part of team Savanna and mold them into the best safety orientated hand they can be.

• Makemyworkplacesafe,efficientandfunforanyonewhoworkswithme.

Dwayne LaMontagne, Executive VP & CEO


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 2013

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 2Short and Long Term Goals page 3Rig 439 Embraces Safety Culture page 4Intro to Steve Dorner page 5Rig 647 Focuses on Family page 6What’s Happening? page 8Australia page 10Last Page page 14

Savanna’s Short & Long Term Goals

the company’s short and long term goals for 2013 are:

• Improve, coordinate, communicate and deepen commitment to HSE throughout Savanna

• Improve profitability in existing businesses

• Increase deep exposure in USA and Canada, focusing on assessing all organic and acquisition options

• Develop, implement and communicate marketing plan, including assessment of current structure

• Develop long term growth plan for rentals division

• Develop alternative financing structure to current to facilitate 2013 growth

• Inventory, assess, and develop corporate standards for support processes and functions

• Maintain focus on goal setting and performance management

Begin with the end in mind.

If you have ever thought about how you would like to be talked about or remembered at your funeral and changed your actions to match that, then you have acted with an end goal in mind.

Savanna has done something similar with their corporate goals: we have thought about how we would like to be considered as a company and come up with short and long term goals to help us get there.

These goals can also be beneficial to business units that can work to align their goals with those of the company, as well as individuals who can align their SMART (specific, measurable, attainable, relevant, and time-sensitive) goals with those of the business unit so that we can all work together and recognize that we all have a part to contribute in working towards common goals for 2013 and beyond.


Rig 439 Crew Embraces Savanna Safety Culture

439 Crew (from L to r): Felipe OlluoaOvidio OlluoaTimothy BothwellDuben RosenbaumChris PohlJeff KerikChase AmosJuan LopezRichard KrellDrake AndrewsDan BouchardMatt PeelmanJosh TurnerDan VenableAndy Garcia

Dan Bouchard, Rig Manager on 439, has helped his crew reach a full year with no recordable incidents. He says that is largely in part to Savanna’s changing safety culture, and the team he has been able to put together.

Bouchard says there are a few different steps the crew takes to ensure they remain safe, and they have come to rely on these steps in order to be safe in and out of work:

Meetings“We have pre-tour meetings with the crew twice per day to talk about what they’re going to do in that shift, go over the JHAs and just get people talking about safety,” Bouchard says.

He adds that even though it sounds redundant, it’s important and the guys know that.

Matt Pellman, Driller, says the crew takes the time to recognize and talk about any potential hazards, and if these change or if anything comes up they have another meeting to discuss it.

During these meetings, Bouchard encourages his crew to talk about safety, and ask questions. He also works hard to create an environment where the guys won’t feel embarassed, but instead empowered and eager to learn.

Making it personalAs part of bringing safety to the forefront of his crews’ minds, Bouchard tries to make it personal for the guys.

“I ask them questions like ‘what would happen if?’ or ‘what would your family do if?’ to make it personal for them.”

Bouchard realizes the importance of this, because it

gives them the chance to understand the effects their actions could have on not just themselves, but others around them.

“You can have all of the safety features in the world, but if you don’t have the people then you have nothing,” he says.

Visualization“I encourage the guys to take that extra two minutes and visualize what they are about to do, and visualize doing it safely,” Bouchard says.

He adds that with Savanna’s new safety culture they have the time to do this, so they make use of it.

CommunicationLastly, and possibly the most important, is communication between crew members and between the crew and rig managers.

“The aspect of communication between rig crews and managers helps us to accomplish our job safely,” says Pellman. “This way, we can ensure everyone is working together as a team.”

Overall, Bouchard says he and his crew work well together, and even though they may not be able to put words to their actions, they are living out the company’s vision and values every day.

“Our expectations of one another are layed out and then exceeded on a regular basis,” he says, and he plans for that to persist, especially safety-wise, as they continue with their pre-tour meetings, communication, visualization, and aim to bring safety to a personal level.


Introduction to Steve Dorner, Sales Manager, D&D

D&D Oilfield Rentals Sales Manager, Steve Dorner, has recently joined the team as a full time employee.

After working with Savanna as a consultant for seven months, and throughout the sales industry since 1980 in companies such as KH transport, Speedy Transports, and Precision Rentals, he has a lot to bring to the table.

“I have a great amount of experience in sales and getting to know people,” Dorner says. “And after so many years in the industry, I also bring knowledge of the equipment.”

When it comes to sales, Dorner believes that honesty is the best policy.

“If you are positive, honest, and appreciate the customers they will appreciate you as well.”

He plans to continue spending time out in the field, or on the +15s (Calgary’s pedestrian skywalk system) meeting new customers and catching up with existing clients doing just that.

Dorner recognizes the difference the Deranway acquisition will make to customers who are looking to phone one place and get everything done.

“It will be a big help,” he says. “Especially with the addition of the well site shacks.”

These trailers are often the first piece of equipment companies ask

for, and when they do it is easier to offer them a package deal.

This will help D&D to secure contracts with existing customers, as well as look for new customers.

“The bigger the customer list the better opportunity we have to make the best use of our equipment,” he says, and adds that doesn’t change no matter how big or small the company may be.

“We don’t treat the little ones any different than we are going to treat the big ones, or the big ones any

different than we are going to treat the smaller ones.”

He has noticed that there are a lot of people who are very happy with D&D because of the way the equipment looks.

“It’s clean and well looked after. I know that how I present myself to the customer reflects their view on our equipment.”

Outside of work, Dorner says he likes golfing, fishing, remote racecars, and spending time with his grandkids.

[email protected]

Redcliff,AB(HeadOffice)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&DOilfieldRentals


Rig 647 Focuses on Family

647 Crew (from L to r):

Steve Petterson (Rig Manager)

Lance Carter (Floorhand)

Jimmy Ingram (Motorhand)

RJ Sorter (Floorhand)

Robert Sorter (Assistant Driller)

Josh Durr (Driller)

MJ Jordan (Derrickhand)

Aaron Ivey, HSE Superintendent for Rig 647 describes the crew accruately when he says “they are a tight knit group of guys who don’t want to see each other getting hurt,” and after over one year of seeing no recordable incidences on their rig they have proved that the family image of each other pays off when it comes to safety.

Rig Manager Steve Petterson agrees that the guys take care of him and he takes care of them in a way that could be seen as family-like.

“Each one of the guys takes the responsibility of safety on themselves, but they also take the responsibility of each other’s safety on themselves,” Petterson says. “We all take care of one another.”

He describes how this has become increasingly important as the attitude regarding safety in the oil industry changes.

After more than 40 years in the oilfield, Petterson has seen the attitude change from “get the job done at all costs” to “get it all done with no one getting hurt” and he knows first hand how important this is.

“There’s no gain in the world that’s worth a human life,” he says. “But there’s also no easy answer to

safety, you just have to take your time, and even though they say time is money there are instances where money has to be set aside and time has to be priority so that the job can get done safely.”

As a Rig Manager, Petterson says he is working to mentor his crew and teach them how to have that view.

“If everyone doesn’t learn something everyday, then I’m not doing my job,” he explains. “They look to me for a lot, and I look to them for a lot as well, and if we all treat each other the way we want to be treated then we will work together and keep safety as the top priority.”

Ivey has noticed that Petterson’s crew has experienced a change in safety attitude.

“For them, safety is more of a personal deal than a company policy,” he says, “and this attitude starts from the top and has worked its way from the Rig Manager to the driller and all the way down.”

As for Rig 647, Petterson says he plans to keep doing what he’s doing in terms of safety, and has no doubt that his crew will reach the two year safety milestone, in fact, he says that they are already looking forward to the day when it happens.


WANT MORE ENERGY?THE RIGHT FUEL COMBINATION IS THE ANSWER.

By putting the right fuel in our bodies every 3 ½ hours satisfies hunger and maintains our energy without the highs and lows throughout the day. This promotes the brain chemistry control over our appetite, and changes us from emotional eating.

We already know that when our vehicles have dirty filters, old spark plugs, and are running on empty with low grade gas, they do not perform well.

The same is true for our bodies. Without adequate sleep and efficient fuel sources, day by day, week by week, and year by year they too will break down. The problem is, that unlike a vehicle, we can’t just get another body which is why it is so important to fuel and maintain our bodies with premium.

We are not going to talk about diets, as we know only 2 % of diets have a lasting effect, but the good choices and habits we maintain on a daily basis do.

An easy way to remember is:

Breakfast like a King Lunch like a Prince Dinner like a Pauper

Maintaining energy throughout the day depends on keeping the fibre, insulin, proteins, and good carbs balanced:

Fibre — keeps you full Fruits— keep your energy levels up and gives you mental alertness Protein — gives you energy Good carbs (green carbs) — keep up serotonin A Little Fat — turns off hunger

Just as our vehicle doesn’t run on empty, neither do our bodies. Fuel yourself with premium choices for optimum running performance.

Homewood Human Solutions is all about providing resources to you to assist you in making the healthy choices for optimum health. Related articles, podcasts and videos can be found on the website www.homewoodhumansolutions.com including:

• Health e-Podcasts

• Health e-videos

• Health Library

• Life line

Sounds simple, and it is.

Bon Appetite!

Make a life time decision to fuel your body efficiently each day.

The Canadian Benefit

Department


What’s Happening?

629 working for Cresent Frontier in Saskatchewan

Rig 654 shots from Wes McLeod

Safety Stand down

rig 654


What’s Happening?

Elizabeth Daubney, Corporate Host/Travel Coordinator at Savanna passed her Canadian Citizenship test. Way to go Liz!

Left: Joe Gibeau’s grandson tries on some coveralls and practices for his future career with Savanna!

Above: Joe Gibeau’s granddaughter, born early morning February 18, 2013

Congratulations Liz!

grandchildren galore!


rEfErraL PoLiCyS

Fill out the Employee Referral Bonus Program Form, attach the resume, and send to HR via interoffice mail or [email protected] before the individual applies.

SavannaEnergyunderstandstheimportanceoffindinggoodemployees,andweknowthatsomeofthebestcomefromreferrals—that’swhereyoucomein!DoyouknowsomeonewhoyouthinkwouldbeagoodfitforSavanna?Here’showitworks:

Once the referee has been hired and worked

the referrer will be paid

250hrs

1000

3monthsfor salaried employees

• forms must be submitted before hire date

• Operations Managers• Area Operations Managers• Recruiters• Crew Coordinators• HR Coordinators• Recruitment Administrators

• Referee cannot have worked for Savanna in the last 12 months

• Temporary, summer, and contract employees are not eligible candidates for referral

• Both referrer and referee must be employed in order to be paid

Rules:

The following positions DO NOT qualify for a referral bonus:

500

or

or$ $

for “hot jobs” such as drillers, rig managers, executives, etc.

Remember!


Australia

australia day Celebrations!

2013 toowoomba oil Patch golf Carnival

Eldon Sutter and kangarooAustralia Day eats

Ingrid and KellieMike Kuiper

Ken White, Steve Kitzul, Kevin Huculiak, Matt Colins

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

Check out this month’s question!

Which 2 Aussies are linked by the words “Such is life”?

a) AFL player Ben Cousins and bush ranger Ned Kelly

b) Little Aussie bleeder Norm Cunston and former governor general Sir John Kerr

c) Rugby league and union star Sonny Bill Williams and writer David Williamson

c) Radio personality Kyle Sandilands and actor Magda Szubanski

What has been termed “un-Australian”?

a) Not eating lambb) Blocking access to footy sites at workc) Serving mid-strength beer at the cricketc) All of the above


Australia

As part of your employment at Savanna you are required to undertake a Cert II & III. If you have already completed either package please provide a copy of your qualification to the Training Coordinator. If you have completed or partially completed either one of these packages but have yet to submit it, please make an appointment with one of the Training Managers to review the package(s).

You are required to complete the following modules:

Cert ii – drilling• MSAPMSUP172A Identify and minimize environmental hazards • RIICOM201A Communicate in the workplace • RIIERR202A Contribute to the control of emergencies and critical situations • RIIOGD204A Perform rig floor operations • RIIOGN201A Carry out rig lease operations • RIIOHS201A Work safely and follow OHS policies and procedures • RIIRIS201A Conduct local risk control • RIISAM209A Carry out operational maintenance • MSAPMPER200B Work in accordance with an issued permit • MSAPMPER205B Enter confined space • MSAPMOHS217A Gas test atmospheres • RIIOHS204A Work safely at heights

Cert iii – drilling• BSBCMN311B Maintain workplace safety• BSBFLM303C Contribute to effective workplace relationships• MSAPMSUP172A Identify and minimise environmental hazards1• RIIERR302A Respond to local emergencies and incidents• RIIOGD209A Operate and maintain ancillary equipment• RIIOGD301A Conduct and maintain derrick operations• RIIOGD302A Trip casing• RIIOGD303A Trip pipe• RIIOGN302A Operate mud pumps• MSAPMPER300C Issue work permits2• RIIRIS201A Conduct local risk assessment• PMASUP236B Operate Vehicles in the Field2• RIIOHS204A Work Safely at heights2

Note: (1) Where the competency has already been achieved in the Cert II no requirement exists to repeat the competency in Cert III (RPL is applied) and (2) This course is provided by an External Trainer.

The Training Model at Savanna requires that you complete Theory and Practical assessment for each competency. Further some training is provided by an external provider. Once all competencies are completed with signatures from your supervisor(s) you are required to submit the whole package for review by the Training Department. Note that our Technical Training Manager will do a final review and a gap analysis to ensure that all requirements have been met prior to submission to the RTO.

The RTO will then mark the package, if you have successfully completed all modules, the RTO will issue a qualification at the appropriate level.

If at any time you have difficulty with completing parts or all of this package, please contact one of the members of the training department. We offer training or mentorship in the following areas:

• Technical Drilling • Frontline Management• Health, Safety & Environment• Numeracy & Literacy Skills• Computing Skills

Finally, good luck on starting your Drilling Career with Savanna!

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Top: Paul Baker, Hartt O’HearnBottom: Stephen Livinuiuk, Justin Shipowich, Dan St Thomas


Australia

Q: Where is home or where are you from originally?

A: Born in Cape Town South Africa, immigrated to Australia at the end of 2006 with my husband and 2 children.

Q: What about the opportunity to work for Savanna appeals to you?

A: Savanna Australia is new and expanding and it’s exciting to be part of that process. I’m sure I will be able to grow too as the company grows. Fitting in and agreeing with a company’s culture in my opinion is key to longevity within a company and I think I found that fit with Savanna. The operations here in Australia, together with the finance team in Canada, make it a great environment to work in every day.

Q: Any hobbies or interesting facts we should know about you?

A: I love birds (have 2 tame pet parrots) and we live on an acreage so I also get to ‘live’ with wild birds. I’m an avid moviegoer, and see a movie at least every week. Recently I’ve learnt to ride a motorbike & have been getting to know the Darling Downs on short trips with my hubby.

Q: Any prior experience in oil and gas?

A: No prior experience in Oil & Gas, just previous accounting experience

Q: How did you come to arrive at Savanna?

A: I met Craig (Financial Controller at Savanna) through a mutual colleague at a Toowoomba accounting firm we both worked at. He knew that I wanted to be in commercial accounting rather than tax accounting and the opportunity arose when they were looking for someone at Savanna. I was interviewed & subsequently hired.

Also, congratulations to Ingrid on finishing her Bachelor of Commerce degree! She is scheduled to graduate in April.

Meet & greet — ingrid Lindsay-Smith


Last PageTREASURES OF PERU

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PACKAGE INCLUDES:

• Domestic airfare

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• Accommodation

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Last Page

Guy walks into a bar with a slab of asphalt under arm. Says to the bartender: “I’ll take a beer, and one for the road.”

A man from Louisiana was working the derrick in Brazil.Every day on his tower he would see this monkey watching him from a tree, so he started bringing up bananas and feeding the monkey. Well it didn’t take long and that monkey was in the derrick with him and he taught the monkey how to rack pipe.

After a few days the derrickhand didn’t have to do anything. The monkey was doing it all!

Well the rig hand got laid off. He went home to South Louisiana. He sat home for 6 months then the phone rang. They wanted to know if he wanted his derrick job back in Brazil.

Right away he said “Uhuh Y’all finally figured out that I was better than that monkey huh?” They said “No sir, the monkey made toolpusher, he’s the one said to call you.”

JOKEs:

Do you have a story or photo to share in the Rig-n-Dig? Send it to [email protected]!

101rig terminology

Babbit: A metal that is heated with a tiger torch, melted, and poured to secure a cable in a rope socket.

Nipple Up: Install a BOP on a wellhead.

Pup Joint: A short piece of tubing used to fine tune the placement of tubing in a well or lined from the pump to the wellhead.

Artist Statement for cover photo by Michael Zopp.

Talent comes in many different ways. The hand drawn picture was penciledbySavannaWellServicingUSshophandMichaelZopp.Mikecameto Savanna from Hayward, Wisconsin in September 2010. He started as atraineeandworkedhimselfuptoFloors,andastheshopgotbusyhetransferredintotheshopwherehehasworkedcloselywithShopManagerRon Heidt in helping to manufacture and create material to be used on or aroundourrigs.TogetherwithRonandMikeintheshoptheyhavesavedalotofunneededspendinginrepairs.WethankMikeandRonfortherededication,andweappreciateMike’sabilityasanartist.


Is there a charity you think Savanna should support?here’s how it works:

Requirements

How is Support Provided?

the following will not be considered

Sponsorship

Employee Involvement

(Charitable Hours consent form must be filled out)

Charitable Support

Donations

(Financing project/event arranged or hosted by another organization)

Must be able to guarantee that Savanna, or its subsidaries receive publicity

• Alignment with our Vision & Values

• Registered charity/organization within the countries that Savanna operates

• Contribute to sustainable development

• Monetary donations

• Gifts or silent auction items

• Participation in fundraising events

• Discounted services

$500 for minimum 40 hrs volunteer work •

Donation made straight to charity •

• Any event supporting specific political individuals, groups, or organizations.

• Any event supporting specific religious figures, groups, or organizations.

• Any event supporting a single individual.

• Non-specific fundraising projects and appeals.

(Financial giving to charitable organization)

Maintained by Savanna’s Charity Committee•

Submit a “request for Charitable donation form” to OfficeServices

V&V

Documents

Rig-n-Dig February 2013