Rig-n-Dig July 2013

1Rig-n-Dig • savannaenergy.com

July 2013S

Savanna’s Safety InitiativeQ2 2013 One Savanna Award WinnersPhoto Contest SubmissionsWhat’s Happening?

In This Issue:

photo credit: Shawn Rebman

2 Rig-n-Dig • July 2013

Sterling Rideout, VP, Global Health, Safety and Environment, and the HSE team along with communications are working on an improved plan for the company that will help Savanna be “The path for others to follow” when it comes to safety.

Rideout explains that having a new slogan and plan for HSE that comes right out of our vision will help us to achieve operational excellence.

“What do we mean by operational excellence?” he asks. “We mean being committed, being creative, open-minded, and looking out for one another.”

One of the most important aspects of the new HSE plan is greater integration with Operations.

In the past, HSE has been in charge of creating the policies and procedures that are then given to Operations for execution. Moving forward, corporate will create the standards, and then give them to Operations and say ‘you are the ones doing the work — tell us how it’s done.’

“This way, we are getting the experts in the industry, the people actually doing the work, to write the procedure then revisit it and refine it.”

Rideout explains that the people working at Savanna are here for a reason, and we value their expertise so we are going to be approaching them and asking how they want to do a certain procedure, and what is the safest way.

Once the procedure has been written up, corporate will pass it on to other workers for their input before the document becomes the standard.

“And if what I’ve seen so far from Savanna is any indication, we will have great success with this,” Rideout notes.

HSE and management teams at Savanna are hoping that this new plan for the company will spark questions.

“We are definitely looking for people to learn, read, ask questions, give feedback, and get engaged with safety.”

The goal in the end is to have zero incidents, Rideout says, but that starts with engagement; it starts with each and every employee taking personal responsibility for their actions and, as Savanna’s values define integrity: having the courage to do the right thing.

“Engagement and ownership are the two things we need to be successful going forward.”

Stay tuned in the coming months for more on “The path for others to follow”.

Savanna’s Safety Initiative

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-DigJuly 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 2One Savanna Award Winners page 3Scholarship Policy page 4US Crew Photos page 5US Update page 6What’s Happening? page 8Australiana page 10Last Page page 14

Sterling Rideout, VP, Global Health, Safety, and Environment


Q2 2013 One Savanna Award Winners

Congratulations to all the nominees and winners of this quarter’s One Savanna Award for demonstrating Savanna’s vision and values.

2013 Q3`s nominations will be due September 15, 2013.

Nomination forms can be found on Savnet under Forms, Business Unit: Communications and should be sent to: [email protected]

Arlene Lewicki Tony CarterAnita HindleHelgi Eyford Cortland Guse

Kara SewellCarrie ChanMichelle HenneberryFreddie SawyerNathan Ferrell

Nominees:

Nathan Greener, Communications Specialist, was nominated for going above and beyond expectations, specifically in regards to the way his video work for Summit for Seniors set an example for his coworkers in terms of community involvement and caring for people. Congrats Nathan!

Kimberley Taylor, Field Recruiter, was nominated for demonstrating Savanna’s vision and values by bringing a positive attitude to the Waynesburg office, a reliable source of information, and overall dedication to her job and the company. Congrats Kim!

Kerry Stout, Rig Manager on Rig 65 in Australia, was nominated for his commitment to HSE and Savanna’s safety culture. His leadership in this way has lead Rig 65 to experience many industry firsts in the country. Congrats Kerry!

Robert Hemsing, Field Superintendent with Savanna Drilling Canada, was nominated for going above and beyond expectations, and offering strength and support to those around him during the difficult time following Dave Hoogendoorn’s passing. Thank you for your commitment to Savanna, and your coworkers, Robert!


APPLY NOW!

SAVANNA SCHoLArSHiP PoLiCySEach year, Savanna Energy Services Corp. will award a scholarship in the amount of

eligible students

second Friday in August(Aug. 9, 2013)

proof of final acceptance must be submitted in order to receive payment

application form, transcripts, reference letter

cnieva@savanna energy.com

hr@savanna energy.com

Find the complete policy, and application forms on Savnet under “Policies, Procedures and Forms” or on the Employee Portal under “Common HR Forms”

Required Deadline Proof Submit to:

to3000 4$Eligible candidates must:

The details:

Questions?

]

• be 20 years or younger as of August 1 in the year of application

• provide transcripts (60% or greater required in final year of classes)

• be prepared to enter the eligible instituion within the year of application

• be a dependent natural child, adopted child, stepchild or legal ward of an eligible Savanna employee (who has worked with us for at least 1 year)

9


cnieva@savanna energy.com

Submit to:

US Crew Photos

Rig 643 Crew (from L to R): Mattew Frazee, James Lester, Jacob LouAllen, Chris Molinar, Josh Oakley, Kenneth Brown, Russell Schoonmaker & Carl Wade.

Rig 417 Crew (from L to R): Fernando, Nathan Hernandez, Clifford Archuleta, Cosmo Underwood, Pete Barreno, Mike Wimberly, Dwayne Young, Frank Rico, James Powers

Rig 610 Crew (from L to R): Jacob Mix, Wendell Mize,

Adam Alaniz, Mike Rogers, Abel Lozano, Rick Rosa


US Update

reed Fields, - Preventive Maintenance Mgr. (left) Originally from Utica, NY, Reed spent 10 years in the Air Force as an Aircraft Maintenance Technician and Contracting Specialist. After his military hitch, he entered the oil field and has spent the last 18 years working as a Technician, Maintenance Specialist and Manager. Reed came to Savanna from Nomac and brings several years of experience and talent to the Savanna US Team. In his spare time, Reed enjoys going to the gun range, working out at the gym and going to the movies.

James Bush – Equipment Administrator (right) Originally from Webster Springs, WV, James spent 20 years in the Navy as an Electronics Technician. After he retired, Nabors recruited him to be their Maintenance Supervisor for the US Drilling Division. Recently, James joined the Savanna Team and is very excited to be a part of the group that is helping to build a solid preventive maintenance program in the US. James loves spending his free time with family and enjoying fun activities with them.

(Above) Roxanne Ficek from our US Well Servicing division in Dickinson, ND, with her daughter. Roxanne turned the BIG 5-0 on May 28th of this year! In other exciting news, her daughter is expecting a child — Roxanne’s first grandchild! Congrats!

(Below) Darlene Alexander also turned 50! The payroll diva had her office decorated by the rest of the Woodlands office crew!

Savanna’s new office in Houston. Our staff will be moving in later this month.

The Savanna Houston Crew! Harriet Kelly, Mandy Ayers, Rhonda Henderson, Diana Tucker, Jennifer Williams, Sara Baseke, Becca Sue, Mike Truitt, Julie Bell, James Bush, Jaimie Turner, Evan Russell, Jay Canizaro


Play Safe come home alive and well

in the heat

On the roadOn the water

Everyone looks forward to summer fun. We want you to enjoy it, relax and have fun but come home safe.

High core temperatures can damage our internal organs, including our brains. Fluid loss can also produce dangerously low blood pressure. By staying hydrated, our bodies are able to produce sweat to cool us down and continue to provide necessary liquid to vital organs.

Don’t leave kids or pets in vehicles!

• slow down

• don’t mix alcohol with any activity when you are operating any type of vehicle

• keep your mind on staying safe

• watch out for others who may not be paying attention

• remember your defensive skills

• you are hard to see

• the sight of you may not register on the minds of other drivers around you

• replace fluids, drink lots of water• seek shade and cool the body temperature• resting

• moderately high core temperature of up to 39°C (102°F)

• cool, pale, clammy skin• muscle cramps• headache• nausea• fatigue and weakness• dizziness or lightheadedness• possible fainting, but can be revived

• extremely high core temperature of up to 41°C (106°F)

• hot, red, dry skin• rapid pulse• rapid, shallow breathing• headache• confusion, strange behaviour• possible loss of consciousness

• make sure everyone is WEARING their safety jackets at all times

• slow down

• don’t mix alcohol with any water sport

• watch out for others who may not be paying attention

On some wheels

symptoms of heat exhaustion

preventative measures:

symptoms of sun stroke


What’s Happening?

TJ Cekic, Lorne Stang, Mike Wurz, Justine Gordon, Mark Heasman, Angela LaFleur-Nowell, and Jordan Lennerton enjoy an afternoon of golf.

Clairmont BBQ

Golfing Fun

Annual Cultural & Educational Assembly with Dene Tha’ First Nation

SWS family BBQ in Grande Prairie to celebrate 90 injury free days!


What’s Happening?

Rod Langkopf; presented by Alex Petrie Hank; presented by Ryan Wyatt

Derek the Derrick at the Stampede Parade Savanna Baby!

5 year ring

Isaac Lappin (Floorhand, Rig 407) and wife Keira welcomed a baby girl, Harper Lilly-Rose Lappin on 6 March 2013. Born 7 weeks premature, weighing 4lb 81/2 (or 2.050kg).


Q&A with Mike Bill, GM, Savanna Australia

Q: How long have you been with Savanna?

A: I started with Savanna in July of 2010. I had been working in Australia previous to that, and at that point in time, in late 2010, we were bringing in four rigs (two drilling, two completion) so I believe I was the fifth person that was hired by Savanna in Australia and I’ve been there ever since.

Q: How have you seen Savanna in Australia grow since then?

A: We have gone from four rigs up to eight and we are in the process right now of accepting another drilling rig in October and another completion rig we are manufacturing for early next year. We are also looking at another that would come in the first quarter — that would bring us up to 11.

As I mentioned before, I think I was the fifth person that started and my understanding is that we are right in the 350 employee range. In the space of a little bit over three years we’ve grown from zero to 350!

Q: if you could choose one word to describe Savanna in Australia right now what would it be?

A: One word, I would probably call it exciting. We are at a very exciting stage right now in the company’s history — in Australia we’re in a great position, a lot of our clients are looking towards us because we’re the new person in town. We’re bringing new ideas in and they are always very keen in Australia to get technology out of North America. That’s where they see the benefits that are going to reduce their well costs, drilling time and completion time. It’s nice because we are seeing not just the big four companies but the second tier companies are knocking on our door and saying can you bring in equipment for us too? So it’s exciting.

Q: What rigs do we have down there right now?

A: Right now we have four CT1500s and we’re going to bring another one down for 5. We have 4 completion rigs working right now, one of them has a top drive. We are going to build 2 more completion rigs, with the 6 completion rigs in total and 5 drilling rigs. That will take us up to first quarter 2014.

Moving forward in Australia, we think that the TDS3000TM will be a really good application and we’re currently marketing that with the big companies that we deal with.

Q: Who are our customers?

A: When we signed our original contract back in 2009, prior to the start of the company in Aus, it was with APLNG — a 50/50 partnership with ConocoPhilips and a local Australian Company called Origin. At the moment we have 8 rigs working, 4 drilling, 4 completion and of those 8, 3 of the drilling rigs are with APLNG and 3 of the completion rigs are with APLNG so they have 6 of our 8 rigs and account for 61% of our revenue. We have one drilling rig with Arrow Energy (50% partnership with Shell and CNOC) and a completion rig working for Santos and those two account for the other 40% of the revenue (roughly 20% each). We also have some trucking which we do for some moving of tubing and casing for APLNG.


Q&A with Mike Bill, GM, Savanna Australia

Q: How does the equipment we offer fit the needs of these customers?

A: In APLNG’s mind, the CT1500 is the perfect rig for their application. They are drilling primarily vertical wells right now they drill a well every couple of days so the moving component of the well is very important, hence the reason they like the CT1500.

The completion rigs are designed to meet their requirements, so we took the standard that we have in Canada and moved it across to Australia. The two new rigs that are going to be built here shortly will be built on a carrier base.

Q: Why is this good news for Savanna as a whole?

A: I think what Australia can provide Savanna is an alternative to working in a cyclical market. As we all know, Canada has the busy periods in the winter months and then as soon as break-up hits it can be a potentially long period of time (depending on how June is).

In Australia the work is 365 days a year again providing we don’t get wet weather. In Queensland the wet weather is predominantly December, January, February, March and the rest of the year is dry so we can take some of the slower periods and provide some certainty across the course of the year.

Q: What is the overall impression of Savanna in Australia?

A: Savanna is viewed very well in Australia. We’re the new player on the block, we’ve had to prove ourselves. One of the comments I hear when I talk to people I’ve worked with in the past is that they look at Savanna as a very stable company. When you talk to some of the people who provide personnel they very rarely see anyone leaving Savanna but they see a lot of people requesting to join Savanna and there are some of the other companies seeing a higher turnover. People are attracted to come and work for us — we provide stability and the opportunity for career advancement so at the moment I’d say we’re the company in demand to come and work for.

Q: Can you tell us a bit about trucking?

A: When we spoke to APLNG and secured a contract for the initial 2 drilling rigs and 2 completion rigs, APLNG realized that a potential downfall would be the lack of trucks to move them. There is currently a shortage of trucks in Australia for trucking companies so they approached Savanna and asked if we’d be interested in arranging for an original nine trucks to work moving the four rigs we had. Since then, it’s three years later and we are up to 21 trucks. In addition to moving for APLNG, we move our equipment for Santos and take delivery of casing and tubing on the dock in Brisbane and transport that to a holding yard in Toowoomba and then distribute it on to the well.

Trucking has become a very self-sustaining and profitable operation for us.

Q: How is the HSE culture down under?

A: Safety is a very big concern for the companies we work with, there’s no doubt about that. We have been working extremely hard to improve our safety record in Australia. For the first year or so we had a very good record. We encountered a few problems in our second year but we’ve made some changes with Sterling’s assistance and lately we’ve seen a really good turn around in our safety performance. We are always looking to modify our procedures, policies, we’re fine tuning our job descriptions for our employees. Our customers in Australia are very keen to have HSE coverage on location, which we are now providing. HSE assists the operations in ensuring everything is done safely. It’s working out really well and I think we will see some benefits from this in the upcoming months.


“Australiana”

Savanna Energy Service’s Australian Operations office is based in Toowoomba, dubbed ‘The Garden City’, as it boasts more than 150 public parks and gardens.

Facts:

• Host of Carnival of Flowers — annual carnival attracting visitors from all over Australia

• Australia’s largest non-capital inland city

• Population of 157, 023

• Climate — average 27 °C (81 °F) in summer and 16 °C (61 °F) in winter

George Pequin (WS Superintendent) taking part in Working at Heights training

We have had lots of training happening in Savanna’s Toowoomba yard.

Dan McCoy (HSE Advisor) & Kevin Voeller (Technician) in their breathing apparatus, about to enter a confined space

Training

ToowoombaBrisbane


Meet & Greet

Meet & Greet — Steve Kitzul (Drilling Field Superintendent – Australia)

iWCF Certificates in Drilling

Certifications

EEHA

Congratulations to all our staff who have completed their IWCF, Certificates in Drilling and EEHA (Electrical Certificates – Installation and Maintenance of Electrical Equipment in Hazardous Areas).

Name Rig Level

Dylan Dawson 407 DrillerHeath Bartlett 406 DrillerAdam Gore 66 SupervisorScott Johnson 409 DrillerWill Green 408 DrillerKyle Hall 407 DrillerRyan Thompson 408 Driller

Name Date

Luke Ryan 31/05/2013

Name Rig Level

Matthew Hickson 408 Cert IIKevin Pressey WS Super Cert IIIDavin Jackle 409 Cert II & IIIDaniel Stafrace 64 Cert IIBlaine Thomas 407 Cert IIJoseph Harbour 407 Cert IIMark Wallis 408 Cert IIOliver Pearl 64 Cert II

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

A: I grew up in a small town in Saskatchewan called Foam Lake. I am currently living in Toowoomba.

Q: Any prior experience in oil and gas?

A: I started in the oilfield in Janurary of 1996. I have worked for 2 other drilling contractors in Canada as well as running power tongs for about a year. I will have been with Savanna 9 years this August.

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

A: New technology and the opportunity to travel to other countries for new start-ups. I have been to Texas, Mexico and now Australia with Savanna. Q: How did you come to arrive

at Savanna?

A: I was bored with the company I was working for at the time and wanted a new challenge with a new company and new rigs.

Q: What do you do outside of work?

A: I enjoy hunting, riding Harleys, fishing, golfing and hanging out with friends as much as possible.


CAODC Well Servicing Awards

CLASSiFiEDS Careers Apply online at savannaenergy.com/careers

Congratulations to all of Savanna Well Servicing’s Rig Managers who received the 2013 Operator Scroll Awards:

Brent AbramWade AndersenKorby AndrewsDoug BarnesRob BarriePhilip BatesRob BergDave BuseniusRick BushHarry ClarkeKen CrydermanMatt CummingsRyan DemeriaDave Donald

Murray DraperCory FeuserSteve FordEhren GetzKenny GladneyPaul GougeonTrent HagelSteve HaithwaiteBrian HansonPreston HansonCraig HewlettDennis HugetBernard Hunke

Scott HusebyDave JonesCraig KaminskiDavid JudgeDan KeohaneRaymond KnockaertChad KoochinCurtis KrushelniskiGeorge LamontageDave LebsackMorris LevyBarry LepardJamie MacDonald

James MacLeanJason MandelJason MohrJon MartinBrian McLeanJames MontgomeryDennis NoerRob OmothBrent OsmondJason PetersSteve PorterPaddy ReidCraig Richard

Steve SeghersScott SimpsonCurtis SitkoConor SmithScott StevensonRichard St. PierreLyle StuutJimmy TimminsSteve TownsendWylie WhelanMike WilsonJohn WurzPeter Wurz

HSE Advisor (Nisku, AB, Canada)Savanna Drilling is actively recruiting for an individual who will promote total job safety and a proactive safety culture within Savanna. Must have 3-6 years drilling industry background, experience with incident investigation and knowledge of safety regulations.

Wellsite Service Technician (Weyburn, SK, Canada)D&D is currently looking for an individual who will help maintain and service their rental equipment. Must have mechanical and trouble shooting skills. Apply online or send resumes to [email protected] with the subject line: Wellsite Technician.

Cleaner (Redcliff, AB, Canada)D&D is currently looking for an individual who will be responsible for cleaning well sites and office units. Previous relevant experience is considered an asset. Apply online or send resumes to [email protected] with the subject line: Cleaner.

Shop & Safety Supervisor (Lloydminster, AB, Canada)D&D is actively recruiting for an individual who will be responsible for the maintenance, inventory, safety and personnel at this location. Must have strong leadership skills, more than 4 years of relevant work experience with a mechanical aptitude, and a safety related background.


Photo Contest Entries

Lightning near Redcliff; submitted by DJ Patterson

Please note: if you submitted an image and do not see it below, please resend to [email protected] as there was an error in the email provided last month. Sorry for the inconvenience!

Sunrise; submitted by Troy Mattie

Meridian Beach, AB; submitted by Kayla Holden

Meridian Beach, AB; submitted by Kayla Holden

Sunset; submitted by Isaac BeadleFlowers; submitted by Isaac Beadle

Sunset; submitted by Isaac Beadle Peacock; submitted by Naomi WiensButterfly; submitted by Isaac Beadle


Savanna will match employee flood relief donations, dollar for dollar, with a donation to the Red Cross up to a maximum of $20,000

If you wish to donate, please email a copy of your tax receipt to [email protected]

SavannaS

Documents

Rig-n-Dig July 2013