Rig-n-Dig May 2013

1Rig-n-Dig • savannaenergy.com

May 2013S

In This IssueQ1 Results

Rig Managers’ Conference2013 ReviewCAODC Top Rig TechnicianWhat’s Happening?

photo credit: Matt Hofer

2 Rig-n-Dig • May 2013

Message from Management

Savanna is a company that strives for sustainable growth and long term success for all of our stakeholders — our shareholders, employees, customers and the communities where we work. To support these efforts, Savanna has adopted a disciplined approach to establish where we are going as an organization and how we will get there. Three years ago, Savanna took the time to establish the Core Values of the organization – the ground rules of who we are and our standards for behavior. These are the things that don’t change much over time and are the foundation of Savanna. Some of you may have been involved in the focus groups and roadshows that were held to gather employee feedback and input into the values, and hopefully you have seen them, not just on the wall, but in action within all levels of the company.We then established our vision for the company ““Define leadership in global energy services through people, innovation, and technology — The path for others to follow.” This is a great, high-level vision, but many continue to ask the important question: how do we get there?Savanna has developed planning documents that break down our vision into three to five year targets, one year goals for each business unit and functional area, quarterly actions plans and, where possible, personal goals. The three to five year targets are at a pretty high level but capture the five things that Savanna believes are going to be critical to meeting our vision. They include:1. Become the industry standard

for Health, Safety and the Environment.

2. Achieve more than 50% revenue and EBITDA from outside of Canada.

3. Continue to focus on technology application for all three existing business lines in all geographies.

4. Develop and implement all core support functions and processes required to work for multinational customers.

5. Train, develop and equip employees for high competency, commitment and succession planning.

To achieve these targets, the senior management of Savanna has established eight goals for Savanna in 2013. They are:1. Improve, coordinate, communicate

and deepen the commitment to HSE throughout Savanna.

2. Improve profitability in all existing businesses.

3. Increase our deep exposure in USA and Canada, focusing on assessing all organic and acquisition options.

4. Develop, implement and communicate our marketing plan.

5. Develop long term growth plan for our rentals division.

6. Develop financing structure to

facilitate 2013 growth.7. Inventory, assess and develop

corporate standards for support processes and functions.

8. Maintain focus on goal setting and performance management.

Our company goals then define the context for our business unit goals and from there each business unit and functional area develops one page strategic plans allowing us to really focus on where Savanna wants to be in the future and the kind of growth we want to see in those areas.These one page strategic plans are part of our quarterly business review process that gathers our leaders together to review our progress, gather input, share our plans and hold each other accountable for doing what we say we are going to do. Each business unit or functional area shares their goals with their staff to help make employees aware of where they need to put their effort, and what it is they need to do today to help Savanna be successful tomorrow. Following through on achieving these goals will allow Savanna to get to the next level of success.As an organization, we have to obligation to assess and manage our employees so we can reward them for their good work, provide them

Core Values

Purpose

Targets

Goals

Actions

Accountability

Schedule

Tim

e Fr

ame

Should

Why

Where

What

How

When

Who

Forever

Life of Leader

3-5 yrs

Annually

Quarterly

Weekly

Daily

Rachel Moore, EVP, Human Resources speaks to the annual planning process and helps employees align their daily activities to support Savanna to achieve its vision.

continued on next page


Q1 2013 Results

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-DigMay 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 2Q1 Results page 3CAODC Top Rig Technician page 4Benefits Article: Alcohol page 5Rig Managers’ Conference page 6What’s Happening? page 8Australia page 10Last Page page 14

$68 million EBITDAS generated on $237.9 million of revenue

• Canada Q2 break up expected to be prolonged (Savanna more exposed due to shallower relative fleet)

• US still waiting for rig activity to reignite (Savanna positioning and quality have cushioned us to date)

• Australia looks stronger post Q1 (NEED to drill wells to deliver gas, Slower Q1/cyclone and rain season passed)

• Proving investments

• Australia

• Well Servicing Expansion

• TDS3000 rig conversion program

increased by $65.3 million (38%) from Q4 2012



decreased by $7.1 million (9%) from Q1 2012

muted demands in North America

economic uncertainty

lower relative oil commodity pricing

lower natural gas pricing

lower utilization

decreased pricing

We need to execute better at every level of the Company

— Ken Mullen, President & CEO“ ”

OVERALL

EXPECTATIONS for 2013

the BOTTOM LINE

REVENUE

EBITDAS

DESPITE

RESULTING IN

Q1with feedback on what they could be doing better, and, in the end, give them the opportunity to do their very best. Ongoing feedback, whether as part of a formal goal setting and performance review process or in the form of less formal, ongoing conversations are critical elements of performance management. Savanna has already seen the benefits from this process. Managers both in the office and in the field are having effective and timely conversations and through this have been able to ensure their employees have the opportunity to excel. Overall, the performance management process is allowing us to get our key goals across the finish line, and helping individuals and the company as a whole realize how we can make our vision come alive.

Q1

continued on next page

from page 2


CAODC Top Rig Technician Award Winner

Congratulations to Savanna’s Sean Herdman on achieving the CAODC’s title of Top Rig Technician of 2012!

This award is based on the highest overall mark and a strong recommendation from an employer.

Herdman says it feels good to get recognized. He has spent more than five years in the trade, and has now completed his apprenticeship at Red Deer College.


Alcohol:Did you know?

The immediate effects of alcohol include:

The long term effects of alcohol can include:

The misuse of alcohol can also impact:

Definition of Excessive Drinking:

Heavy drinking: On average, more than 1 drink per day (women), more than 2 drinks per day (men)

Binge drinking: Consumption of more than 4 drinks (women) or more than 5 drinks (men) during one 2 hour period

the facts

Every 2 minutes, someone dies because of alcohol

Excessive drinking is the 3rd leading lifestyle-related cause of death in the U.S

Drinking alcohol is linked to more than 60 health issues

• Impaired judgment and inability to measure risks

• Lowered inhibitions

• Slower reaction time and reflexes

• Loss of coordination and balance

• Distorted vision

• Lapses in memory

• Chronic liver disease

• Cancer

• Heart disease and stroke

• Mental health issues, such as depression and anxiety

• Alcohol addiction

• Medical problems in unborn babies if any amount of alcohol is consumed during pregnancy

• Alcohol poisoning

Additional resources concerning alcohol can be found on Savanna’s E-portal.

User name: savanna

Password: safety 7

• Domestic abuse and other violent behaviors

• Relationships

• Sexual behaviour

• Finances

• Productivity

• Driving ability -- motor vehicle crashes are the leading cause of death of people under the age of 35; alcohol is involved in more than half of these fatal crashes.

• Alcohol & Substance Abuse Recognizing the Symptoms

• What Is Alcoholism

• Alcohol Awareness

• Why Alcohol Misuse is Dangerous

• Counting Calories in Alcoholic Beverages

• How to Say “No”

• When Does Alcohol Abuse Become Alcoholism

and many more.

A message from the

Canadian Benefit

Department


Savanna’s brand is how we present ourselves to the public. It identifies and associates Savanna with the quality and expertise we possess and try to demonstrate in all areas of our business. For this reason it is important for us to try and keep the Savanna brand consistent with our goals and objectives as a company and our values as well.

Integrity is Savanna’s first value and with our brand, doing the right thing can help us uphold its integrity. Using the correct logos on our vehicles and equipment or the correct letterhead or invoice templates can be viewed as little things, but if done properly, these little things will all add up to help us present Savanna in a consistent and professional manner as we continue to try and reach our goal of defining leadership in global energy services.

To help out with branding, the communications team has created a user guide to support Savanna’s branding policy which was recently approved by the Senior Executive Team. The policy will document and protect the Savanna brand and the user guide will provide some tips and tricks for working with the brand properly.

Stay tuned in the coming months for the official release of both the brand policy and guide. Here is a sneak peak at some of the things that will be included.

Thank you for reading! If at any point you have any comments or questions about anything branding related, please contact the Communications Department.

If everyone makes use of the branding policy, alongside our graphic standards (available on Savnet on the communications home page) then we can all be a part of ensuring our brand is consistent with our company’s promise to be industry leaders.

[email protected]

All vehicles must bear the Savanna logo as per our graphic standards.

An updated, organized logo library.

That does not include these:

Check out the list of preferred vendors if you are ordering any Savanna merchandise.

New and improved image library.

Why Bother with Branding?

Savanna Well ServicingS


Rig Managers’ Conference 2013

This years’ Rig Managers’ Conferences took place in Red Deer, AB on April 22-23 and May 6-7. Great feedback was received about the new organization of the event. Thank to all of our organizers, presenters, and Rig Managers who came out and made the event so successful. See you next year!

HSE’s workshop involved some hands on experience regarding hand safety

Impaired driving test amused and surprised many!

Jessica McLeod and Dawn Paquette

Custom Travel representativesThe control car at the training booth was a hit! Thanks to all who participated.

Dave Berrecloth, Laura Koronko, Dave Judge, and Bruce Nash

Enthusiastic conference goers pose with prizes


What’s Happening?

Congratulations to Don Goldade and his wife Ilca on the safe arrival of their son Jack Taylor Goldade, born April 18 2013, weighing 3.02 kg.

Congratulations to the crews on Rig 655 in the US for achieving one year incident free!

Thomas Parker, Rig 422; presented by Aaron Mills.

Above (From L to R): Chris Kurtz, Trevor Jubba, Clint Calcote, Charles Fugate, Shane Carrol, Robert Jarrell, and (kneeling) Toby Parrill

Right (From L to R): Robert Couturier, Brian Palmer, John Kurtz, Casey Dean, Justin Kay, and Johnathon Byler

Above (From L to R): Justin Kay, Dan Kelly, Carlos Rapaso, Brandon Stone, Volodymyr Blyznyuk

Missing from photos: Ernie Landridge

Congratulations to Sara Baseke on the birth of her new baby girl, born on April 22. Welcome to Kinsley Rae-Ann 8.2lbs,19 and 3/4 in long.

Savanna Babies!5 year ring!

Rig 655


What’s Happening?

David Dominique standing by Savanna’s new loadcraft service rig with our company’s banner at the OTC Conference in early May.

Thanks for the crew on 619 for a great day of video shooting this month! From L to R: Andrew Hunt, Travis Reid, Devon Brooks, Keith Offrey, Jordan Haggenstaller, and Gerald Bunz.

Derek went on holiday again, this time with Isaac Beadle to Florida.

Amanda, Receptionist at Savanna’s Calgary office, found herself amidst Game of Thrones and Lord of the Rings stars at Comic Con in early May.

Calgary Comic Con!

Rig 619

Derek’s Vacation!


Women in Oil & Gas Networking Breakfast

Savanna Energy sponsored a table at the Business Chicks (Networking Group) breakfast featuring Sir Richard Branson on Thursday, 9 May 2013 in Brisbane. The guest list included key stakeholders from Origin Energy, Arrow Energy and BG Group/QGC. The breakfast was a success in developing and strengthening relationships and hearing the inspirational story of Sir Richard Branson. Key learnings from the breakfast included creating things to be proud of, not focusing on the money, taking bold but measured risks and, as a leader, absolutely prioritising being a good listener and motivator.

Ann-Maree Baily from Origin Energy was lucky winner of the major prize of the morning winning a holiday to Hayman Island in the Great Barrier Reef!

Congratulations to Ann-Maree!

Winning Ticket Photo – Ann-Maree Baily (Origin Energy), Rosanne Meijers (Savanna Energy), Rebecca Clive (Origin Energy)

Sir Richard Branson

Standing up — Alicia Parkinson (Arrow Energy), Karin Triel (BG Group/QGC), Anita Hindle ( Savanna Energy), Claudia de Beer (Savanna Energy), Rosanne Meijers (Savanna Energy), Yana Khamulo (Arrow Energy), Maree Wotton (BG Group/QGC)

Sitting down — Karen Broader (Origin Energy), Ann-Maree Baily (Origin Energy), Rebecca Clive (Origin Energy)


“Australiana”

Quick Fact: Fortnight is a term used by Australians meaning ‘two weeks’.

This month’s topic: Australian Animals.

See below for some fun and interesting facts about just some of our well-known Australian wildlife. (Look out next month for a true blue Aussie recipe to try!).

Kookaburra – has a call that can sound like a person laughing

The nest of an Emu can be up to 1.5 metres wide and the Emu can run at speeds up to 45 km/hr!

Koalas are often referred as a ‘Koala Bear’ even though they are not a bear. The name Koala comes from an Aboriginal word meaning ‘no drink’, as Koalas get enough fluids from the eucalyptus leaves they eat.

Savanna Rig 66 is currently in the Toowoomba yard being commissioned ready to head back to the field for Origin Energy. Here is just some of the Rig 66 crew working hard to have the Rig ready to go.

Rig 66


Graduates & Payment Summaries

It has been a month of graduations here at Savanna Australia!

(Below): Congratulations go to Claudia de Beer, HR Manager – Australia, for graduating with a Bachelor of Education in Adult Education with a Major in HR Development.

(Below and to the right): Congratulations also go to Ingrid Lindsay-Smith, Corporate Accountant (pictured with daughter Sian) for graduating with a Bachelor of Commerce with a Major in Accounting.

The final pay for the Financial Year for payroll in Australia will be pay period ending 8 June 2013 pay date 18 June 2013.

Your Payment Summary (T4 Equivalent for Canadians) will be available on the ADP Website on the same screen where you access your Payslips. You will not see your Payment Summary on this website before 30 June 2013 but they will be available no later than 14 July 2013 as required by the Australian Taxation Office (ATO).

Please ensure you check your access to the website before the end of June and refer back to the letter that was sent to you in January with instructions on how to access it. This will also be a great opportunity to setup your secret questions and answers in order to reset your own passwords.

Log on to the ADP website as usual https://secure.adppayroll.com.au/index.php

• Select Change Password

• Select Secret Questions and Answers Tab

If you forget your password the next time you log on, tick the box ‘Forgot Password’ and a new password will be sent to your email address that we have on our records. You can also check what that email address is on the Tab on the same Secret Questions and Answers Screen.

Important Note: Please be aware that you will need to print off your payslips regularly as these are not held on the website for longer than 12 months.

End of Financial Year 2013 — Payment Summaries

Graduates


Meet Jennie Lowe

Jennie Lowe, Administration Team Lead – Transport

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

A: I grew up in Goondiwindi since the age of 10

Q: Any prior experience in oil and gas?

A: I have experience in engineering, accounting and administration management in the civil construction industry which is a very similar industry in comparison to the oil and gas industry, being project driven, compliance orientated and financially focused.

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

A: The oil and gas sector is a dynamic industry to be a part of. Savanna is a new player in the Australian arena, facing a wide range of challenges and opportunities as it establishes its foothold for excellence, to be part of the team to be able to achieve this will be a rewarding role for me.

Q: How did you come to arrive at Savanna?

A: In September 2012 I relocated to Toowoomba and started at Savanna Transport division in a temp admin role, which later turned to full-time employment.

Q: What do you do outside of work?

A: In my spare time I like to hang out with friends and family.



Last Page

101rig terminology

Cellar: Place under the rig floor where the BOP is stored.

Mud Can: A piece of equipment used when taking sections of tubing apart that have fluid in them to prevent it from splashing on the floor.

Raddigan: A tool that seals around the rod to prevent fluid leaking from the well.

Regan: A tool used for holding onto a section of rod to prevent it from falling into the hole. Similar to, but smaller than, a raddigan.

Savanna nearly has 500 followers on Twitter! Help us get there by visiting our page: twitter.com/savannaenergy

Or if you don’t tweet, check us out on Facebook, LinkedIn, Google+ or YouTube for regular Savanna updates!

SOCIAL MEDIAUPDATE

SudokuFill the grid so that every row, every column and every 3x3 box contains the numbers 1 to 9.

See if you are right afterwards by checking your answers below.

7 6

5 2 7

6 7 2 9

9 3

1 8 6

4 1 8

8 5 1 2

2 5

4 6 7 914725836

582639741

637148295

258961473

391874652

746253918

865417329

179382564

423596187


LUXURY TRAVEL PERFECTED B YSilversea Cruises$50

OFF

PER P

ERSO

N

EXCL

USIVE

TO SA

VANN

A EMPL

OYEE

S

Rome, Italy to Malaga, Spain 7 Days

• Departure date: November 19, 2013• Vista Suite fare from $2,050per person

• Receive $200 onboard credit

Malaga to Canary Islands, Spain 7 Days

• Departure date: November 26, 2013• Vista Suite fare from $2,450per person

• Receive $200 onboard credit

Athens, Greece to Istanbul, Turkey 7 Days

• Departure date: September 19, 2013• Vista Suite fare from $3,650per person

CALL 877.864.4562 OPTION 2 or EMAIL [email protected]

Documents

Rig-n-Dig May 2013