Canadian Oilpatch Technology Guidebook August 2012 by JWN

VOL42012

PUBLICATIONS MAIL AGREEMENT NO. 40069240

canadian oilpatch technology guidebook drilling production Fracturing Tight Oil & Gas Data Management & Software health, safety & environment presented by

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Regent Energy Group: Enhanced Oil Recovery Specialists At the forefront of sand control and steam distribution technology Regent Energy Group is a full service sand control company focused on enhanced oil recovery, steam optimization and sand control products. A privately owned independent company established 12 years ago, Regent Energy Group is in a high growth period. It has gone from being a small slotting firm with one product line to a mid-sized company with nearly 200 employees, and a series of innovative new technologies and customized tools focused on enhancing oil recovery.

“We are not a small slotting company anymore. We are an enhanced oil recovery company,” says Butch Loewen, Regent Director, Sales & Marketing, noting that slotting is now just one aspect of what Regent does. “We are a solutions-driven company. We custom design everything along with our customers—we have no on-the-shelf products of any kind, and we are constantly looking for new innovations and new technologies to enhance oil recovery.” The company’s administration and manufacturing headquarters are located in Nisku, Alberta, with a sales office in Calgary, a manufacturing facility in Oman, and a sales, marketing and engineering office in Mexico. After CEO Laurie Venning took full control of Regent a year and a half ago, the company has rapidly expanded its international growth focus. Staging Diverter Pup Regent’s latest technology is a Staging Diverter Pup (SDP), which optimizes steam distribution downhole in SAGD or CSS wells. “As an industry, we’ve been discovering that steam is not getting to all the right parts of the reservoir,” Loewen says, noting that Regent worked very closely

with its customers to develop the SDP, which offers a multitude of options to control steam distribution. “It is retrievable, and each individual joint can be adjusted downhole, so you can pretty much put steam wherever you want it.” This new technology works in conjunction with Regent’s thermal liner hanger, which the company has been using for the past seven years. “Because it is a high pressure and a debris seal, it is a true seal. The steam gets down to where it’s supposed to go, instead of leaking off in the heel of the well. We already have 350 of those in the ground, and they all work great,” Loewen says. Flow Control Joint The SDP is based on another tool invented by Regent—the Flow Control Joint (FCJ), another steam optimization tool, which is a proven technology, with 700 units installed in CSS wells. The SDP is the next stage of the FCJ, modified to work in SAGD. Rotating/Reciprocating Cement Head Regent is about to introduce a new cement head, which both rotates and reciprocates, to the market. “Right now, the industry has a problem with getting true cement bonds, especially in slant wells,” Loewen notes. “This cement head rotates and the cement is completely distributed around the casing, so it is a true, complete cement bond. The cement head has been tested downhole, and will be introduced to the market by the end of this year on a commercial basis.” Hot Pig™ Regent’s innovations also include the Hot Pig™, a patented, exclusive way of cleaning the inside of a pipe after it has been slotted. “It is a thermal deburring,” Loewen explains. “We singe off the wickers and burrs inside the casing, which allows full open channel flow, ensuring the slots are 100 per cent clean before they go downhole.” The Hot Pig™, which has been on the market for close to a decade, is a competitive advantage for Regent.

Regent also developed the seamed slotted liner, which is engineered to control the erosive reservoir sands and allow for the smooth production of fluids, an achievement that dates back more than a dozen years.

DOUBLE PAGE 7759 Ongoing R&D The company’s dynamic R&D department Regent Ene works in conjunction with engineers in Regent’s fully staffed engineering department. Regent also works closely with Core Design, a Nisku-based company that has played a key role in helping design and build Regent’s tools. Regent’s brand new machine shop is equipped with “all sorts of machinist-type tools, so we can build and create custom-built tools for the customer,” Loewen says. In addition, several more tools are being developed and will be out on the market soon. “We think we will have another half-dozen patents issued by this time next year, all geared toward enhancing oil recovery. We are growing so fast, the future looks outstanding. We are continually hiring new people and looking at new markets in the Middle East, Latin America, and Asia. The heavy oil market is a multi-billion dollar industry globally, and steam is being used more and more around the world. Our opportunities are almost limitless right now.”

Please contact for more information: Butch Loewen Director, Sales & Marketing Regent Energy Group T: (403) 269.8088 E: butch@regentenergygroup.com www.regentenergygroup.com

Re-think youR tool selection. At Regent Energy Group, we specialize in developing the right tools to fully optimize oil recovery. From the revolutionary slotted and seamed liners to our optimized steam distribution and analysis, all the top producers trust Regent for innovative horizontal completion solutions.

We Don’t just inVest in technoloGy. We inVent it!

- TECH PROFILE 925 ergy Group

Visit us at

www.regentenergygroup.com

An enhanced oil Recovery company

Nisku • Calgary • Sultanate of Oman • Villahermosa • Tampico • France

DRILLING

FROM WELLHEAD TO RIG

BUILDING A BETTER WELL CORE

New technologies enable substitution of stranded and flared gas for drilling

Coring tools cut larger samples in shorter time, yielding more data for producers

STEERING STRAIGHT

Baker Hughes’ AziTrak system improves horizontal drilling accuracy

PRODUCTION

EOR’S QUIET REVOLUTION

In Situ Oilsands Development: The Next Generation

Polymer flooding is one area of tertiary recovery that’s showing growth, spurred by improvements in oilfield chemistry

N-Solv technology promises to lower costs, slash greenhouse gas emissions

COOKIE-CUTTER SAGD

Start-up company’s modular, portable, bitumen-producing technology could open oilsands to smaller players

6 EDITOR’S NOTE Tech Salvation 8 LIST OF ADVERTISERS

THE PROTECTOR

New treatment method to reduce damage from corrosion and abrasion has wide application

72 DIRECTORY

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FRACTURING

NOT RUN OF THE MILL

OPPORTUNITY KNOCKED

A DIFFERENT APPROACH

LEADING THE WAY

Plant exceeds expectations for treating salty water for fracking while saving money

Invention of new frac tank system turns E&P company into stock market darling

Eschewing water in fracture stimulation brings multiple advantages

Multistage fracking pioneer Packers Plus plays major role in cracking the tight oil code

55 DATA MANAGEMENT & SOFTWARE

TIGHT OIL & GAS

STARS ALIGNED

CRUDE’S COMEBACK

Technology, timing and tenacity unlock long-slumbering Bakken shale oil play

Technologies developed for natural gas set to transform tight oil production

MEETING THE TIGHT OIL CHALLENGE

Service outfits respond with a range of products, systems and innovations

A BETTER BUILD

I CAN SEE CLEARLY NOW

MINING FOR DATA

ANALOGS LEFT BEHIND AGAIN

Cloud-based website portal allows access to seismic data while it’s being created

SEAL OF APPROVAL

Tackling Climate Change

AMPLIFIED LEAK DETECTION

Leak detectives turn fugitive emissions management into a source of growing revenue

Wells tested for better sealing with fusible metal alloy

VISAGE Information Solutions software: a new tool in exploration

A GREEN THUMB FOR EMISSIONS

Software solution eases the pain of construction contractor field data tracking

HEALTH, SAFETY & ENVIRONMENT

Fully digital measurement schematic software combines diagrams with databases

Spectra’s CCS project has potential to be among the largest in the world

Fibre optic tool finds even the smallest liquid leaks downhole

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EDITOR’S NOTE

TECH SALVATION It’s not been an easy year for the Canadian oilpatch. Natural gas prices have remained weak, and are not expected to rise signifi cantly any time soon. Oil prices, while reasonably healthy by historic standards, have slipped in recent months and remain uncertain as the economies around the world show signs of continued stagnation coming out of the 2008 recession. There was a time such conditions would have left the North American oil and gas industry in a similarly recessionary state. De clining conventional oil and gas production and the high cost of unconventional production would have left little room for growth. But, to the contrary, the oil and gas industry has become one of the few bright spots in the North American economy. In the United States, by some estimates job growth in oil and gas has nearly equated to the job losses among state and local governments as that country continues to struggle to recover from the downturn. Energy research group IHS Cera says 600,000 jobs have been created due to the dramatic growth in hydraulic fracturing operations across the United States. Indeed, the development of multistage hydraulic fracking technology over the past dec ade has been the driver of a resurgence in oil and gas production in Canada and the United States. It has overturned the entire outlook for the industry, from one of terminal decline to one that points to an increasingly bright future of rising investment and production levels, increased energy security and significant energy export potential. As more and more companies shift multistage hydraulic fracking technology from gas to oil, conventional oil output has shown the most dramatic shift in the past year. The Canadian Association of Petroleum Producers (CAPP) said in June that the degree of resurgence in conventional oil production “is even greater than we predicted last year,” with continued growth expected until at least 2017. That growth, combined with accelerated expansion in the oilsands, prompted CAPP to adjust its forecast of Canadian oil production upward by almost one million barrels per day by 2025, to 5.6 million barrels per day—almost double 2011’s three million barrels per day. “The previous outlook for conventional crude oil declines has been eclipsed by the emer gence of drilling for conventional oil that takes advantage of new production and comple tion technologies,” it states in its report, Crude Oil Forecast, Markets and Pipelines. “Current estimates of the ultimate potential production recoverable from conventional reserves may still be conservative, as these technologies are still in their early stages.” To be sure, the technology is in many ways in its beginning stages, with rapid advance ment occurring in all its aspects as wells get longer, fracking involves more stages more strategically placed along the wellbore, frac fluids become more effective and understanding of the reservoir improves. The technologies are also getting greener as less water is required, more of the water used is more effectively recycled, fluid chemistry becomes increasingly environmentally benign, surface footprints shrink and equipment is switched to cleaner burning fuels. These are just some of the advances investigated in this year’s edition of the Canadian Oilpatch Technology Guidebook. As the technology—both multistage hydraulic fracking and increasingly efficient oilsands extraction techniques—further matures, it is becoming increasingly apparent that North America will see growing oil and gas production, and the jobs that go with it, for years to come. With Canada and the United States together already producing more than the world’s number one producer, Russia, we could become major energy exporters in the years ahead, a prospect few would have contemplated prior to the advent of the new technologies. And had North America not had such technological advances available to resurrect its energy industry when it was struck by the recession of 2008 and its rather anemic recovery thereafter, it would have lacked one of the few positive aspects of the economy actually pro ducing jobs, improving the balance of trade and powering industry. In addition to our focus on the technologies that helped create the resurgence in oil and gas production in sections on drilling, production, fracturing, and tight oil and gas, in this issue of the Canadian Oilpatch Technology Guidebook we feature stories focused on health, safety and environment, and software. Complementing that coverage is our extensive listing of Canadian technology providers. An online version of the Tech Guide is available on the New Technology Magazine website (newtechmagazine.com). Maurice Smith, Editor msmith@junewarren-nickles.com 6

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CANADIAN OILPATCH TECHNOLOGY GUIDEBOOK www.newtechmagazine.com

editorial Editor Maurice Smith | msmith@junewarren-nickles.com Staff writers Lynda Harrison, Richard Macedo, James Mahony, Pat Roche, Elsie Ross, Paul Wells Contributing writers Jim Bentein, Godfrey Budd, Gordon Cope, Jacqueline Louie Editorial ASSISTANCE MANAGER Samantha Sterling | ssterling@junewarren-nickles.com Editorial Assistance Tracey Comeau, Brandi Haugen, Marisa Sawchuk

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OFFICES Calgary 2nd Floor, 816 – 55 Avenue N.E. | Calgary, Alberta T2E 6Y4 Tel: 403.209.3500 | Fax: 403.245.8666 Toll-Free: 1.800.387.2446 Edmonton 6111 – 91 Street N.W. | Edmonton, Alberta T6E 6V6 Tel: 780.944.9333 | Fax: 780.944.9500 Toll-Free: 1.800.563.2946 Subscription inquiries Tel: 1.866.543.7888 | Email: circulation@junewarren-nickles.com Online: junewarren-nickles.com Printed in Canada by PrintWest. ISSN 1480-2147 © 2012 JuneWarren-Nickle's Energy Group. All rights reserved. Reproduction in whole or in part is strictly prohibited. Publications mail agreement No. 40069240. Return undeliverable Canadian addresses to our circulation department, 816 - 55 Ave NE, 2nd Flr, Calgary, AB T2E 6Y4 You may also send information on address changes by email to NewTechnology@junewarren-nickles.com. Please quote the code that begins with the prefix NTM. For members of the Society of Petroleum Engineers, please contact the SPE office directly with your address change. New Technology Magazine is owned by JuneWarren-Nickle’s Energy Group, a subsidiary of Glacier Media Inc., and is published 10 times per year. Printed in Canada by PrintWest. ISSN 1480-2147.

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LIST OF ADVERTIS E R S

List of Advertisers Absolute Completion Technologies Ltd. . . . . . 30 & 31 Absolute Completion Technologies Ltd. (ACT) (www.absolutect.com) is a Canada-based engineering, design and manufacturing company focused on the development, analysis, design and construction of downhole sand control and flow control technologies. ACT is a private company owned by the engineers, technologists and other specialists that work in the company, and deploy its technologies around the world.

Advantage Products Inc. . . . . . . . . . . . . . . . . . . . 40 & 41 Advantage Products Inc. (www.advantageproductsinc.com) is recognized as a top innovator in oilfield tools, meeting the challenges and heavy demands of the energy industry. Driven by innovation, its line of industry-first downhole tools are designed to maximize performance of progressive cavity pumps and their operators.

Baker Hughes Canada Company . . . . . . . . . . . . . . . . 10 Baker Hughes Canada Company (www.bakerhughes.com) delivers solutions that help oil and gas operators make the most of their reservoirs. Baker Hughes provides reservoir consulting, drilling, formation evaluation, completion, pressure pumping, and production products and services to the worldwide oil and gas industry.

Brother’s Specialized Coating Systems Ltd. . . . . . . 62 Brother’s Specialized Coating Systems Ltd. (www.brotherscoating.com) develops and uses specialized coating techniques for the benefit of industry across western Canada. Brother’s is able to evaluate, identify and determine the most cost-effective means of protecting equipment from the effects of corrosive and erosive environments.

Calfrac Well Services Ltd. . . . . . . . Outside Back Cover Calfrac Well Services Ltd. (www.calfrac.com) is an innovative pressure pumping–services provider focused on North America’s premier unconventional natural gas and light oil plays, plus strategic international markets. With state-of-the-art equipment—in-house R&D, a diversified customer base, an expert team of employees, experienced management and record annual revenues in 2011—Calfrac is strongly positioned for continued growth.

Flexpipe Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Flexpipe Systems (www.flexpipesystems.com), a division of ShawCor Ltd., manufactures and sells a spoolable composite pipeline system used for oil and gas gathering systems, water disposal, CO2 injection pipelines and other applications where a corrosion-resistant, highpressure pipeline is required.

geoLOGIC systems ltd. . . . . . . . . . . . . . . . . . . . . . . . . . 54 geoLOGIC systems ltd. (www.geologic.com) is a widely recognized developer of high-quality databases and premium software products that offer comprehensive, relevant solutions to the oil and gas industry. Based in Calgary, geoLOGIC has provided oil and gas professionals with industry-leading, integrated software and value-added data coupled with unsurpassed customer service for over a quarter century in the Western Canadian Sedimentary Basin.

JuneWarren-Nickle’s Energy Group. . . . . . . . . . 62 & 71 JuneWarren-Nickle’s Energy Group (www.junewarren-nickles.com) is Canada’s oldest and most recognized energy publishing house, with products such as New Technology Magazine and the Tech Guide. Providing authoritative print and online publications, data sets, maps, charts and directories, JuneWarren-Nickle’s is the Canadian leader in oil and gas and construction publishing.

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Logan International Inc. . . . . . . . . . . . . . . . . . . . . . . . . . 18 Logan International Inc. (www.loganinternationalinc.com) manufactures and sells a broad line of downhole products—retrieving tools, stroking tools, surface tools, remedial tools, and high-performance polycrystalline diamond compact (PDC) cutters and bearings for a variety of well workover, intervention, drilling and completion activities. Logan also provides high-quality well-completion products and services for oil and gas fracturing markets.

NCS Oilfield Services Canada Inc. . . . . . . . . . . . . . . . 42 NCS Oilfield Services Canada Inc. (www.ncsfrac.com) specializes in downhole completion tools and services, and coiled-tubing-deployed frac tools. Its Multistage Unlimited Frac-Isolation System combines its Mongoose Frac System with a sliding sleeve that eliminates the need for perforating at the frac-initiation point, further streamlining multistage completions and enabling operators to design completions with no practical limits on the number and placement of stages..

NGC Product Solutions Ltd. . . . . . . . . . . . . . . . . . . . . . . 9 NGC Product Solutions Ltd. (www.ngc-ps.com) is a Calgary-based company that makes, distributes, innovates and creates the next generation products and solutions for the most challenging environments in construction, process and fluid handling applications while adhering to the highest-quality design standards. NGC’s capabilities include engineering and design, as well as product solution supply, fabrication and on-site installation.

Regent Energy Group Ltd. . . . . . . . . . . . . . . . . . . . 2 & 3 Regent Energy Group Ltd. (www.regentenergygroup.com) is a privately owned independent service company which specializes in steam distribution and sand control for enhanced oil recovery (EOR) completion solutions within the oil and gas industry. Since its inception Regent has been at the leading edge of sand control technology, initially in the Canadian oilsands, and recently in locations such as the Middle East and South America.

Rogers Communications . . . . . . . . Inside Back Cover Rogers Communications (www.rogers.com) is Canada’s largest provider of wireless voice and data communications services and one of Canada’s leading providers of cable television, high-speed internet and telephone services. Through Rogers Media it is engaged in radio and television broadcasting, televised shopping, magazines and trade publications, sports entertainment and digital media.

Sanjel Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Sanjel Corporation (www.sanjel.com) is a privately owned, Canadabased, international oilfield service company with over three decades of industry experience. As a major competitor in the global oil and gas market, Sanjel delivers two product offerings: pressure pumping and completions—each with its own broad range of specialized products, and custom-designed and manufactured equipment.

Strad Energy Matting . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Strad Energy Matting (www.stradenergy.com) is the trusted name for premium wellsite equipment and services, offering flexible solutions for all wellsite infrastructure needs. Strad is the only team providing a onesource oilfield solution for matting, surface equipment, manufacturing and equipment design, communications, solids control and drill pipe.

Contact Tony Poblete at tpoblete@junewarren-nickles.com for inquiries about advertising in the 2013 edition of Tech Guide: Canadian Oilpatch Technology Guidebook

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DRILLING

image: Ulterra

he very essence of the oil and gas industry, drilling remains at the centre of technology advancement as todayâ&#x20AC;&#x2122;s producers target more and more challenging reservoirs. Faster penetration rates, improved aim of the drill bit through tighter pay zones and decreased environmental impact are among the trends seen in drilling in recent years. As the oil and gas industry faces often challenging and always unpredictable commodity prices going forward, the pressure will continue for drillers to increase efficiencies and lower costs.

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DRILLING

FROM WELLHEAD TO RIG New technologies enable substitution of stranded and flared gas for drilling

MONETIZING GAS CanGas has developed technology to capture, compress and transport natural gas from wells where it would otherwise have been flared.

The coalescence of a number of factors—from advancing technology to greater emphasis on en vironmental stewardship and a growing differential in price between oil and natural gas—have created new opportunities to monetize stranded, flared and vented gas, save on fuel costs and contribute to cleaner air. The circumstances have made it feasible to col lect and transport raw natural gas directly from a producing wellhead to drilling rigs and other mobile equipment for fuelling purposes, displacing the use of higher-cost, higher-emission diesel. CanGas Solutions Inc., a specialist in containerized gas transport, and CanElson Drilling Inc. are leading the drive to monetize the gas, typically from liquidsrich gas wells, or in association with oil production. CanGas has developed technology to capture, compress and dehydrate, and transport solution gas from wells lacking the infrastructure to bring it to mar ket. It typically trucks the gas to the nearest available pipeline tie-in, gas plant or tied-in well. The company also trucks processed gas from gas plants to equip ment in the field—from drilling rigs to frac pumpers, boilers and generators—which, with new duel fuel (or bi-fuel) technology, can substitute the costly diesel for the cheaper natural gas. The company estimates fuel cost reductions of 25–40 per cent.

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“You can displace on average about 50 per cent of the diesel that a drilling rig engine burns with natural gas,” says Don Fraser, CanGas vice-president of business development. “Gas is selling today at about $2.50–$3 per mcf [thousand cubic feet] and diesel, on an energy equivalent basis, would be about $32 per mcf, so that’s basically the opportunity.” Working with CanGas, CanElson plans to take the concept one step further by taking the natural gas straight from the wellhead to its drilling rigs. It has been piloting natural gas–fuelling on one drill ing rig operating in southeastern Saskatchewan for several months, and announced in January it would expand the program to four more rigs in the sum mer of 2012. “CanGas approached us about using [compressed natural] gas on the rigs and from there we kind of took a leap,” says Randy Hawkings, CanElson president and chief executive officer. “We just took it what we thought was one logical step further. Our thoughts were that we could take it directly from flare to a mobile unit such as a drilling rig; that’s where we felt there might be a niche worth taking a look at.” In fact, CanElson liked what CanGas was doing so much that in March of this year, it made an offer to purchase the privately owned company and the deal closed in May with CanGas now being a wholly owned subsidiary of CanElson. Key to the conversion is advanced bi-fuel technol ogy that allows natural gas substitution with minimal modification to diesel engines. The technology is supplied by several different manufacturers, includ ing U.S.-based Altronic, LLC, distributed in western Canada by Gas Drive Global LP, a limited partnership wholly owned by Calgary-based Enerflex Ltd. Using advanced electronic control and monitoring systems, the technology allows diesel engines to oper ate on up to 70 per cent natural gas without power or efficiency losses. The systems enable automated fuel switching without interruption in engine power output and no modification to internal engine compo nents is necessary. Hawkings says adopting the technology took “a bit of a leap of faith. We were taking the chance that everything everyone says [was] true—that the natural gas injected with the diesel is not going to damage the engine and that it can go back to diesel if you switch back—but we decided to do that because we thought it was the right thing to do.” He says the switch has gone smoothly. “We haven’t seen anything to date that gave us any indication of anything negative whatsoever. In fact, indications are [that] the engine should actually be running cleaner and more efficiently with natural gas as a partial fuel.” In addition to cost savings, Hawkings says natural gas fuelling could be more reliable going forward. “There have been some problems with refineries and diesel that caused some diesel shortages we had to deal with the past two winters. I thought, if we could displace a portion of that diesel, [it] would just remove that much more strain on those sorts of situations where you are looking at possibly shutting a rig down due to a shortage.”

PHOTO: CANGAS SOLUTIONS INC.

CA N E L S O N • CA N GAS

D R I L L I NG

PHOTO: CANGAS SOLUTIONS INC.

CANELSON • CANGA S With four more rigs planned to be retrofitted this summer, CanElson—with 37 rigs—is contemplating further retrofits, as well as using natural gas for other mobile diesel-burning assets, like boilers and pumping equipment. “With boilers, you either run 100 per cent diesel or 100 per cent natural gas, and we have not retro fitted our boilers with alternate burners yet, but we are looking into the possibility,” Hawkings says. “Every step [of the conversion process] brings you some new information, but so far it is all extremely encouraging.” Fraser says CanGas successfully field demon strated its proprietary process to capture and monetize previously flared solution gas with PetroBakken Energy Ltd. last year. While the oil from many single well locations is trucked to market, there was previously no way to handle the associated gas. “We are focused on wellsites where the producer ei ther does not have a pipeline tie-in to connect their gas, or they are waiting for a pipeline tie-in,” Fraser says. “With PetroBakken, we demonstrated that we could collect the raw gas, put it through our compression skid and bring it to market.” Fraser says the company is patent pending on its loading process. “We have an automated loading system that is a continuous process. We’ll have two trailers parked there and it automatically switches over between the trailers when one is full.” Fraser notes that with natural gas prices in the doldrums, some might ask if it’s worth the expense to bring to market. It is worthwhile, however, where the gas is liquids-rich, and where regulations limit flaring to the point an oil well must be shut in. “In Saskatchewan it’s very rich gas, so the value-add for the producer is the value of the liquids in the gas. The higher the percentage of heavier hydrocarbons—pro pane, butane and pentane that more closely track the price of oil—the greater the added value. “In Alberta—and now in Saskatchewan—the flar ing regulations are very stringent. Much of this gas is associated gas coming from oil wells, where produc ers are allowed to flare a certain amount, and then if they haven’t tied the gas in, they have to shut the oil in. What we are able to do with our system is either extend that period, or basically collect all of the gas until they can tie it in. We are doing that today up in the Pembina Cardium area.” CanGas is also benefiting from increased natural gas fuel shifting in the field, transporting the gas from gas plants. Operating with about half a dozen trailers now and more equipment being delivered this sum mer, CanGas is eyeing big growth ahead, Fraser says. “We are hoping to expand the company by multiples.” CanElson, which already operates in North Dakota, Texas and Mexico, is also poised for growth. “We have talked to customers both [in] Texas and in Mexico who are very interested in the technologies that the two companies bring together. There is tremendous inter est in both places where there are wells that are being restricted because of the amount of flared gas, and… in conserving that gas with a view to not impeding the production, and also being environmentally respon sible,” Hawkings says. In fact, with an estimated 15 billion cubic feet of solution gas from oil wells alone being burned daily

“ Gas is selling today at about $2.50–$3 per mcf [thousand cubic feet] and diesel, on an energy equivalent basis, would be about $32 per mcf, so that’s basically the opportunity.” — Don Fraser, vice-president of business development, CanGas Solutions Inc.

worldwide, the companies see the environmental bene fits as one of the strongest suits for the new technology. “This is one of those rare occasions [where] I can honestly say I feel like this is an environmentally responsible approach where environmentalists will be happy—because the flared gas in many cases is not going to be flared and we can displace some diesel use—and the governments and communities will benefit with more jobs and more tax revenue. And it’s good for CanGas…and our customers; in the world of balancing the environmental responsibility with a company actually getting a return for its shareholders, that’s exceptional,” says Hawkings. Maurice Smith

FUEL SWAP Cheap natural gas is enticing drillers to make the switch from more expensive diesel for fuelhungry rigs and associated equipment.

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DRILLING

BUILDING A BETTER WELL CORE Coring tools cut larger samples in shorter time, yielding more data for producers

CORE COMPETENCY Quest Coring’s Quick Core system is capable of turning around 120 feet of coring in five hours.

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Those who analyze well cores for a living say the quality of the samples they see isn’t always good enough to generate the data their clients need. That could change. A Canadian company claims its new well coring tool will speed up the coring process and improve the quality and size of the resulting cores. The new technology’s ability to deliver longer core samples is key to its usefulness, Quest Coring Services Ltd. says, noting its coring tool was designed to bridge the gap between 30-foot wireline coring and 120-foot conventional coring. While it uses wireline to retrieve samples, Quick Core offers a larger-than-usual core diameter—3.5 inches—to provide bigger samples. Quest says its technology also means improved safety for service crews, since fewer trips are needed during coring, resulting in less pipe handling. Quick Core has been used on a range of well types, from shallow heavy oil and carbonate to shale gas wells since its rollout in Canada in January 2010. Since then, Calgary-based Quest has been marketing the tool in the United States and abroad, and a number of U.S. producers have used it. Today, the tool is used in such applications as shale gas, typically in deeper, thicker reservoirs, according to Quest. Despite being used in shale, where horizon tal drilling is often used, Quick Core is best suited to vertical or directional wells. Yet, it’s suitable for coring the vertical legs of horizontals, says Jeff Sinclair, one of Quest’s managers. “At this point, I wouldn’t say [Quick Core] is widely used or even widely looked at for horizontal wellbores. Most of it is in vertical wells. On a true horizontal well, there can be operational challenges.” When it comes to core size, he quotes one overriding rule: bigger is always better. “The more rock you have to work with, the more precise your measure ments can be,” he says. “Larger-diameter core doesn’t restrict analytical testing…. A larger-diameter core allows the analyzing lab to utilize more of the well core for analysis.” Still on the bigger-is-better theme, Quest achieved what it says is a world record in May 2011, by cutting a 125-foot core run length (3.5-inch diameter) for a producer in the United States. Before that, Quest says the longest wireline core on record was a 60-foot, three-inch-diameter sample. As for safety issues, Quest’s managers say most injuries on North American rig floors arise from handling pipe during tripping. Because the company’s technology involves fewer wireline trips and fewer drill string trips, it reduces the scope for injuries. “With Quick Core, you don’t have to make a round trip to recover the pipe and remove the core,” he says. “The difference is, you can turn around 120 feet of core in five hours. If you were to do that conventionally at a depth of 10,000 feet, you’d need 12 hours to pull [drill pipe] out of the hole, and 12 more to trip back in. It’s a significant reduction of time.” Quick Core (QC) comes in three sizes: QC 89 (3.5inch diameter), QC 89 Super Slim (3.5-inch) and QC 76 (three-inch), the slimmest Quick Core tool. Each Quick

PHOTO: QUEST CORING SERVICES ltd.

Q U E ST

D R I L L I NG

QUEST

BIGGER IS BETTER Quick Core provides a largerthan-usual coring diameter of 3.5 inches, which allows for more precise measurement and analysis.

FILLING A NICHE Quest’s Quick Core system was designed to bridge the gap between 30-foot wireline coring and 120-foot conventional coring.

images: QUEST CORING SERVICES ltd.

Core tool is numbered according to its core diameter in millimetres, hence QC 89. In all, Sinclair estimates Quick Core 89 has seen service in 113 wells in Canada, working for major and mid-size producers. QC 89 Super Slim was designed to deliver 3.5-inch core in 6.25-inch (159-millimetre) hole at depths of less than 1,500 metres, the company says, while the larger QC 89 is geared to drawing core from much deeper holes. QC tools are best suited for deployment on a slickline wireline, rather than on an electronic wireline system, Sinclair says. So far, QC 89 has handled some deep holes, the longest of which ran beyond 6,000 metres (roughly 20,000 feet). “In deeper horizons, because we have the ability to cut longer lengths of core, we’re seeing a drastic reduction of overall operational rig time,” he says. In Canada, QC 89 has been used mainly in shallow, heavy oil and carbonate applications, cutting over 10,000 metres of 3.5-inch core with a recovery factor of 96 per cent, Quest says. Athabasca Oil Sands Corp. has used Quick Core in Alberta’s carbonates, coring about 30 wells, mainly in the Leduc and Grosmont formations, considered more challenging than oilsands deposits. Most of the wells cored were shallow depths under 500 metres. According to Mack Kay, Athabasca’s oil sands drilling team leader, Quick Core would remove total core of 60–100 metres from a good well, with average core runs of eight to nine metres long, despite some glitches (core runs on some wells were shorter). “When we first started working with [Quick Core], we had to do a lot of technical work with the Quest

[team],” says Kay. “The bit was too aggressive. We spent a lot of time working on it as they advanced their technology.” Once the bit problems were resolved, the system worked well, he adds. “It took some tweaking, about a season or two to get it nailed down and figure out the proper parameters to run.” The system’s real benefit, he felt, was the time saved by using wireline, instead of using a convention al coring setup that relies on drill pipe. “If I can trip on that wireline in an hour to an hour and a half, versus a five-hour round trip using drill pipe, then I’m making time on the rig. That’s the real advantage.” In the United States, Quick Core is a more recent arrival, and the QC 89 tool has been used in about 19 wells so far. Quest currently counts among its clients about eight American producers, ranging from Noble Energy Inc. to ConocoPhillips. The Quick Core system has cut over 2,560 metres (8,400 feet) of core in the United States so far, with a recovery factor of 98 per cent, according to Quest. More than two-thirds of those wells were in uncon ventional shale reservoirs. More recently, in Canada, at a depth of 2,500–3,000 metres, Quest says Quick Core cut a 37.1-metre (122-foot) core, which the com pany is calling a Canadian record. Acknowledging Quick Core is more costly than conventional coring tools, Sinclair could not say just how much more expensive the system would be, but believes it represents better value for well operators. “It’s a little more money than a conventional core barrel, but the difference [is in rig time-savings],” he says. In recent months, Quest has introduced another coring tool, Quick Capture, which improves on Quick Core. After cutting core downhole, the new tool is sealed and brought to surface, also using wireline. The benefit is that any oil or gas contained in the core downhole is preserved for analysis, making for more accurate measurement of samples that would have been lost using other tools. James Mahony

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DRILLING

STEERING STRAIGHT Baker Hughes’ AziTrak system improves horizontal drilling accuracy

REAL-TIME NAVIGATION AziTrak’s unique capability for early bed boundary detection allows operators to identify localized structural changes in the reservoir and utilize the deep resistivity image to verify the direction of boundaries.

Baker Hughes Inc. is helping operators steer their oil and gas reservoirs in the right direction with its deep azimuthal resistivity measurement tool for sub surface navigation. “We’ve provided the ultimate GPS for drilling today,” says Darren Drake, drilling systems sales manager for Baker Hughes. “We created something that allows you to be forward-looking for the first time ever. This deep-reading resistivity tool allows you to look ahead and steer accordingly—it allows you to see what you couldn’t see before. So instead of being in the pay zone some of the time, you can be in the pay zone all of the time.” The Baker Hughes AziTrak deep azimuthal re sistivity measurement tool offers another option for horizontal drilling. It’s designed to enhance reser voir performance and efficiency by optimizing well bore placement in real time, and provide distance to reservoir top and/or bottom, measuring formation resistivities with a deep-reading azimuthal resistiv ity tool that creates a 3-D image of the subsurface. The AziTrak tool brings a 360-degree view of the downhole environment and provides operators with the capacity to detect, measure and visualize bed boundaries, and detect the oil-water contact in the reservoir hours sooner than when using conven tional sensors. The technology integrates measurement-whiledrilling (MWD) and logging-while-drilling (LWD) ca pabilities into one tool by using multiple-propagation signals and detection for precise navigation data. The Baker Hughes surface tool captures data from all of the downhole MWD/LWD sensors via mud-pulse or wired-pipe telemetry that transmits real-time naviga tional data and memory-quality images. When the AziTrak tool is deployed with the Baker Hughes AutoTrak rotary steerable system, field spe cialists can benefit from the short sensor to bit spacing and apply early steering decisions, such that the well bore can be optimally placed within the reservoir.

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“It’s a game-changer,” says Adeniyi Ogundana, former drilling applications advisor for Baker Hughes. “It’s a true proactive geosteering tool because it deliv ers necessary navigation data in real time and on time. We don’t have to wait until we’re out of the zone before we react or make a decision. “Drilling has become more complex. This tool will help companies stay in that sweet spot, even when the zone gets very thin. They are able to stay in the reservoir for as long as they plan and have maximum production. You can use the tool to make real-time decisions, but it also stores the collected data in its memory.” The AziTrak tool is one of a very few deep azi muthal resistivity tools available to the market. “Ours is direct measurement. You measure it and that’s it,” Drake says. “There’s a benefit to using a tool that does not require data inversion.” The hurdle for most operators considering this technology, he adds, is the cost—considerably more than that of conventional tools. “The value this tool delivers, however, greatly outweighs the cost. Clients worldwide are sold on the technology’s benefits. The people who use it the first time get it very quickly,” Drake says. “At the end of the day, it’s about money and about best production, and when you have it, people will not go back.” Calgary-based Pradera Resources Inc., a former 100 per cent oil-focused junior exploration and pro duction company chasing Slave Point and Gilwood oil in the Slave Lake, Alta., region, had excellent re sults using the AziTrak tool. In March 2011, Pradera Resources became the first company in Canada to use the AziTrak tool, in the Slave Point zone north of Slave Lake. “Deep-reading azimuthal resistivity tools allow us to maximize the amount of the horizontal section of the wellbore within the zone’s prime porosity region, for optimization of the wellbore place ment,” says Daniel Jalbert, who was vice-president of operations for Pradera Resources until it was sold in January. “The technology provides excellent benefits. With the proper interpretation, the tool will enable you to place your wellbore within your zone of interest better than traditional technologies. By placing the wellbore in the optimum position, we get higher production rates, and we’ve been able to defer the costs of wellbore stimulations until production rates warrant. You end up with a more economic wellbore.” These types of results are reservoir-specific, Jalbert adds. “It won’t apply to every zone or reservoir where you run this tool.” And, like any other type of technol ogy, in order to achieve the greatest success, the deep azimuthal resistivity tool requires a very high degree of involvement on the operator’s part. “Having that level of involvement on the side of the operator is imperative in order to have success with the tool, to optimize the geosteering of the wellbore placement, because it’s the geologic interpretation of the results you’re getting back that is so critical. It requires a 24-7 team approach to achieve success.” Jacqueline Louie

IMAGE: BAKER HUGHES INC.

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PRODUCTION

PHOTO: Joey Podlubny

hile the oilsands continue to dominate the Canadian oilpatch with new record production numbers year after year, a resurgence in conventional oil production has largely slipped under the radar. After years of declines, conventional output began creeping up once again in recent years as both multistage fracturing and enhanced oil production technologies gained traction in once-tired oilfields. Combined with the emergence of shale gas, the turnaround in oil production has re-energized an industry once considered to be in permanent decline.

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PR ODUCTION

EOR’S QUIET REVOLUTION Polymer flooding is one area of tertiary recovery that’s showing growth, spurred by improvements in oilfield chemistry ENHANCING RECOVERY Cenovus has reported extremely positive results at its Pelican Lake polymer enhanced recovery operations. The company, which has more than 170 wells injecting polymer at Pelican, expects to spend about 17 per cent of its total capital budget at Pelican this year.

A bad reputation is hard to shake, but it can happen. In the 1970s and 1980s, many producers injected chemicals such as polymers into wells to improve oil production. As can happen with any new technology, the field trials were a flop. The situation wasn’t helped by a well-intentioned fiscal incentive to spur chemically enhanced oil recov ery (EOR) in the United States. Tonnes of chemicals were dumped down wells without much to show for it except a lasting belief that chemical floods don’t work. But that was then. Technology is always improving. Everyone familiar with the oil and gas industry knows improvements in seismic data acquisition and processing have been game changers, as have advances in horizontal drilling and hydraulic fracturing. But the first horizontal wells, for example, were failures. “What people don’t realize is we need those failures to learn,” says Richard Baker, chief technical officer with the Canadian reservoir development services division of Baker Hughes Inc.

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While oilfield chemistry may never be as sexy as long horizontal wells with multiple frac stages, that business has nonetheless undergone a quiet revolution. Polymer flooding was being tried as far back as the 1960s, but it wasn’t very successful as an EOR method until about five to 10 years ago, says Baker, a veteran reservoir engineer and international EOR consultant. What’s changed, says Baker, is that the chemical formulation has improved dramatically. A problem with a lot of the early chemical floods was that iron or par ticulates in the reservoir—or just reservoir temperatures and pressures—would degrade the polymer molecules. But now the polymers are much more durable to field conditions. On top of that, the industry’s understanding of reservoir mechanics has dramatically improved in the past 30 years. Horizontal wells are longer and can be drilled with greater accuracy, accessing much more of the reservoir from a single wellbore. Comparing today’s chemical floods with those used in the 1970s and 1980s is like comparing a computer today with a computer from 20 years ago, or comparing 2-D seismic to 3-D seismic—there’s been that much of an improvement, Baker says. Results to date speak for themselves. Canada’s biggest oil and gas producer, Canadian Natural Resources Limited (CNRL), has implemented what it says is the biggest polymer flood in North America at Pelican Lake, a large, shallow heavy oil pool in northeastern Alberta, and has had great success. The

PHOTO: Cenovus Energy Inc.

BA K E R H U G H ES

P R O D U C T I ON

CNRL • CENOVUS • H U S K Y

Graph: Gaffney, Cline & Associates

GROWING EOR INVESTMENT Cenovus’s Pelican Lake capital spending tripled to $317 million last year from $104 million in 2010. Last year’s spending was on infill drilling to advance the polymer flood, the drilling of stratigraphic test wells, facilities expansions and maintenance. Cenovus drilled 31 production wells at Pelican Lake last year, up from 12 in 2010. This year Cenovus expects to spend between $525 million and $575 million—or about 17 per cent of its total capital budget—at Pelican. Production in 2012 is expected to average between 23,000 and 26,000 barrels of oil per day. Based on the polymer flood’s strong performance, Cenovus embarked on a multi-year plan to boost its

Pelican Lake Polymer Response 600

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company began testing the EOR technique in 2005 and continues to expand the flood. Converting from primary production to polymer flooding requires re-pressurizing the reservoir with the polymer solution, and CNRL says the full oil-production response at Pelican typically takes nine to 24 months. Last year, CNRL’s Pelican production averaged about 38,000 barrels of lucrative heavy oil per day and the company is forecasting average 2012 output of 38,000–40,000 barrels per day. In the longer term, the company expects output to peak in 2015 and to plateau at about 80,000 barrels per day. Polymer flooding boosted CNRL’s proved oil reserves at Pelican Lake to 276 million barrels exiting 2011, up 15 per cent from year-end 2010. The company attributed the increase to continued expansion of the polymer flood as well as optimized well configurations and injection strategies. CNRL’s 2012 capital budget for Pelican Lake is $470 million, up from $426 million last year. The company said this year’s focus is on optimization with the con struction of a new 25,000-barrel-per-day battery and the drilling of 63 polymer injector wells and 13 oil producers. More than 90 per cent of CNRL’s Pelican produced water is recycled, and the company has begun using brackish water to mix with the polymer. The company is piloting the use of polymer flood ing at two other locations. In 2006, the first patterns were flooded at Horsetail in the Brintnell field, about 25 kilometres northeast of the northern Alberta hamlet of Wabasca-Demarais. CNRL says the oil response at Horsetail takes about nine months. At South Brintnell, where polymer flooding was tested in 2009, the oil response takes about 17 months. The other big player in the Pelican Lake field is Cenovus Energy Inc. Cenovus, which is best known as a steam-assisted bitumen producer, began injecting at its own Pelican Lake polymer pilot in 2004. Today the company has more than 170 wells injecting polymer and it says the results are extremely positive. Last year, Cenovus’s Pelican Lake production aver aged 20,424 barrels of oil per day, down from 22,966 in 2010. Wildfires reduced 2011 output by about 500 barrels per day, a scheduled maintenance turnaround shaved off another 300 barrels per day and natural declines also contributed to the decrease.

Start of Polymer 100

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Time (months) Normalized from Polymer Start Date

Pelican output to 55,000 barrels of oil per day by the end of 2016. A spokeswoman says the company plans to drill 1,300–1,400 Pelican wells in the next five to seven years. To support the expansion, a new battery is in the planning stages with construction slated to start in 2013. Cenovus is also working on expanding its alkaline surfactant polymer (ASP) flood at Suffield, which began as a pilot in 2007, a spokeswoman says. Currently, there are two injector wells and seven producers at that project in southeastern Alberta. Cenovus believes the ASP flood could extend the life of the Suffield heavy oil field by at least 10 years. Original oil in place in numerous pools on Cenovus’s Suffield lands has been estimated at more than a bil lion barrels. Without the polymer flood, the company estimates it would produce 25 per cent of that oil. With the polymer flood, it expects to boost the recovery rate to 40–45 per cent. Another company that has gone the ASP route is Husky Energy Inc., one of Canada’s biggest heavy oil producers. Husky already has ASP floods at Gull Lake in southwestern Saskatchewan and at the Warner and Crowsnest fields near Taber in southern Alberta. A spokesman says production has been “in line with expectations.” The company is developing another ASP flood at Fosterton in southern Saskatchewan. Fosterton pipeline construction is finished and ASP injection is planned for the second half of 2012. Another polymer player is Pengrowth Energy Corporation. In 2011, Pengrowth kicked off the first year of a multi-year drilling program at its Bodo heavy oil properties, which straddle the Alberta-Saskatchewan border. Pengrowth has been running a polymer pilot in the area since 2006. Based on the results of the pilot, the company has said polymer flooding could improve the ultimate recovery of oil from these pools to 25 per cent from five per cent.

PRODUCTION BOOST The graph shows the response to the polymer flood at Pelican Lake, indicating oil rate and producing well count versus normalized time. Using reports from CNRL and Cenovus indicating when injection started in different areas throughout the field, Gaffney, Cline & Associates normalized the time starting at 50 months prior to polymer flooding.

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PR ODUCTION

P E N G R OW T H • Z A R G O N • E N E R P L U S • T I O R CO on both projects is expected to total $7 million this year. Still more chemical floods have been launched or are being planned in western Canada. Some of the Alberta projects have been approved for royalty relief under the Alberta government’s Innovative Energy Technology Program.

EOR MOVING FORWARD Cenovus is ramping up activity at two enhanced oil production projects in Alberta. It tripled its capital spending, to $317 million last year from $104 million in 2010, for its Pelican Lake polymer flood and is working on expanding its alkaline surfactant polymer flood at Suffield.

In 2011, Pengrowth drilled 34 wells, including 26 producers, at East Bodo. Similar drilling programs are planned over the next few years. In southern Alberta, Zargon Oil & Gas Ltd. con solidated its oil resource base at its Little Bow property through several acquisitions, and is developing an ASP flood. Earlier this year, the company said it had completed the project design studies and was proceed ing with detailed engineering and the procurement of long-lead-time equipment. Zargon estimates chemical injection into the Little Bow Upper Mannville I oil pool will start in July 2013 and a significant oil production response will occur by January 2014. The combined capital cost of the first two phases of Zargon’s Little Bow ASP project is estimated at $48 million, with $21 million to be spent in 2012. The rest is to be spent in 2013-15. On a smaller scale, Enerplus Corp. began a polymer flood at Giltedge last year, and a pilot in the Medicine Hat area of southeastern Alberta is to start injection this year. According to Enerplus’s 2011 annual informa tion form filed in March, production results from the Giltedge project area are better than anticipated and the company expects to expand the polymer flood by add ing three injection wells in 2012. Combined spending

CUSTOMIZED CHEMISTRY PUMPED UP TIORCO alkaline surfactant polymer high-pressure injection pumps. With better chemistry, the company sees growth in EOR in Canada and worldwide. 22

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Like Baker Hughes, TIORCO also cites better chemistry. “Chemical EOR today is far more efficient and cost-effective than it was 20 or 30 years ago, primarily due to significant improvements in reservoir simula tion or modelling and the introduction of customized EOR-specific chemicals which can be used in lower amounts,” King says. “These technological advances

photoS: (top) Cenovus Energy inc.; (bottom) tiorco llc

GOING INTERNATIONAL The upsurge in chemical flooding hasn’t been confined to North America. According to a July 2011 report prepared by Calgary-based Premier Reservoir Engineering Services Ltd. for the Alberta Department of Energy, the world’s largest polymer flood is at Daqing, China. By 2004, Daqing had 31 commercial-scale projects involving 2,427 injection wells and 2,916 production wells, the report says. It says the Daqing and Shengli fields—both under polymer flood—contributed about 250,000 barrels of oil per day in 2004. Worldwide interest in chemical EOR skyrocketed in recent years as an increasing number of fields matured and rising oil prices improved returns, says Denver-based TIORCO LLC. Formed in 1977, TIORCO describes itself as a global leader in EOR technologies. TIORCO says the Canadian oilpatch is among the most aggressive at implementing chemical injection to boost both secondary and tertiary recoveries. “In just the past five years, we have engaged in one or more aspects of 15 chemical EOR projects in Canada, making it our most active market outside the United States,” says Charles King, TIORCO’s district account manager for Canadian EOR solutions. After high oil prices, the biggest driver of chemical EOR in Canada is the size of the prize. Low recovery rates for heavy oil in many fields puts Canada’s typical remaining oil in place at well above 50 per cent—even after waterflooding—which repre sents billions of dollars that can be tapped with the right technology matched with reservoir conditions, King said in a written analysis of the factors fuelling chemical EOR interest in Canada. TIORCO says the third factor driving chemical EOR in Canada is the large number of independent operators concentrating on conventional oil. “While the major multinational producers have focused on developing the oilsands regions, many independents still work the more traditional fields,” King says. “In our experience, these smaller operators tend to make faster decisions to try new technologies compared with their larger competitors. As a result, they move through the critical reservoir and risk-analysis phases more rapidly and pull the trigger on field projects sooner than many of the big players.”

P R O D U C T I ON

TIORCO • BAKER HUG H E S • GA F F N E Y, C L I N E & A S S O C I AT E S help with better understanding of the risk factors as well as the improvement of overall project economics.” Unlike 20 years ago, chemical floods today are be ing considered for reservoirs hotter than 250 degrees Fahrenheit and salinities exceeding 200,000 parts per million total dissolved solids, thanks to better surfac tants and polymers, says TIORCO. “With today’s advanced chemical formulations, polymer floods and gel treatments are boosting the recovery from waterflooding by five to 20 per cent,” King says. “Surfactant-polymer floods applied as a tertiary method can improve overall production by 20–35 per cent.” He says other factors making western Canada attrac tive for chemical flooding include the region’s long his tory of chemical EOR and the gold mine of data available from the Alberta Energy Resources Conservation Board. “Few, if any, countries or states have a similar organization that maintains meticulous records on the production performance of fields, reservoirs and formations dating back for decades,” King says in his analysis. “Included in the archives are reports detailing the success—and failure—of every project implemented in Alberta. Access to this vital information gives EOR planners in that province an enormous head start in the pre-pilot analysis phase because it provides insights as to which technology may work or not.”

POLYMER GEL TREATMENT While most of this article has focused on polymer or ASP floods (long-term EOR schemes that cost millions of dollars), operators may also be able to improve their economics greatly through a polymer gel treatment—a one-time affair that may cost only $100,000–$200,000 per treatment to reduce water production. And water production is a huge issue. Baker, who has consulted on EOR all over the world, says about 80 per cent of global oil reserves bookings are from fields more than 20 years old. In other words, 80 per cent of the worldwide new reserves booked every year are added from mature fields. In North America that number is about 95 per cent. “And when you look at those fields, you produce a water to oil ratio of about 20:1,” says Baker. “Let’s say Canada produces about 2.6 million to 2.7 million bar rels of oil per day; we could produce 20 times the water.” So it’s hard to overstate the importance of water— from an economic as well as an environmental stand point. For example, if an operator can go from a 20:1 water to oil ratio down to a 10:1 ratio, operating costs may be reduced by $10 per barrel. One way to cut water production is to plug off ce ment channels or natural fractures that, in a waterflood, may allow water to flow from injection wells to oil production wells. So how many reservoirs in western Canada could benefit from the use of polymer gel treatments to achieve water shutoff? To find out, Gaffney, Cline & Associates, a unit of Baker Hughes, came up with screening criteria for Alberta and Saskatchewan oil pools, using public data. The reservoirs had to have high water cuts, very low

“ Chemical EOR today is far more efficient and cost-effective than it was 20 or 30 years ago, primarily due to significant improvements in reservoir simulation or modelling and the introduction of customized EOR-specific chemicals which can be used in lower amounts.” — Charles King, district account manager for Canadian EOR solutions, TIORCO LLC

recovery factors and oil wells being shut in due to uneconomic water production. In addition to poorly performing waterfloods, each oil pool had to have at least five million barrels of remaining oil in place to ensure that there’s enough incremental oil left to make a gel treatment economic. The result? The screening found 193 oil pools in southeastern Saskatchewan and 163 in Alberta that may be good candidates for a gel treatment water shutoff, says Kerry Sandhu, the general manager of Gaffney, Cline & Associates. Pat Roche

TERMINOLOGY •

Although most chemical EOR projects now use “designer molecules,” the basic concept behind the technology has remained the same for many years.

•

Polymer flooding is a continuous injection of low-concentration polymers during waterfloods to bring the viscosity of the injected water closer to that of the oil, thereby improving sweep efficiency in the reservoir. Like waterfloods and CO2-based EOR schemes, polymer floods are multi-year projects.

• Polymer gel treatments are a one-shot deal. Injected polymers and crosslinking agents are pumped into fractures and high-permeability “thief zones,” where they harden and reduce water production. This diverts injected water into previously unswept low-permeability layers. • Alkaline surfactant polymer (ASP) floods: In a straight polymer flood, polymer powder is mixed with injected water to produce a viscous fluid that will push more oil out of the pore spaces, improving sweep efficiency. Surfactant is essentially detergent. It changes the “wettability” of the rock, reducing the interfacial tension between water and oil. So besides the physical sweeping mechanism of a straight polymer flood, a surfactant polymer also washes oil from the rock. An ASP flood includes an alkaline chemical. In the case of Cenovus’s Suffield flood, the alkaline injectant reacts with the acids in the oil to create a natural surfactant. Organic acids in the oil reduce the amount of surfactant that needs to be purchased, thereby lowering operating costs.

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In Situ Oilsands Development: The Next Generation N-Solv technology promises to lower costs, slash greenhouse gas emissions SOLVENT ASSIST Representation of N-Solv’s Dover facility separator vessel module.

IN SITU UPGRADING It is anticipated that N-Solv’s soon-to-be-tested bitumen extraction technology will leave asphaltenes and heavy metals in the reservoir.

By the end of this year, the site in northeastern Alberta where steam assisted gravity drainage (SAGD) technology was developed could be home to a pilot for a new in situ oilsands technology. The patented solvent-based N-Solv technology of fers a more cost-effective and environmentally friendly alternative to SAGD that its proponents say will reduce CO2 equivalent emissions by about 93 kilograms per barrel, produced with no need for water. If all goes according to plan, Calgary-based N-Solv Corporation and its partners will see first oil from the 500-barrel-per-day pilot at the former Alberta Oil Sands Technology and Research Authority (AOSTRA)—now owned by Suncor Energy Inc.—by early April 2013.

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Rather than relying on steam at high tempera tures and pressures, the patented N-Solv technol ogy uses a warm pure solvent (propane or butane) injected into a reservoir to reduce its viscosity. N-Solv found a “nice little reservoir” on the Dover site with between 12 and 20 metres of pay for the $50-million pilot, which is currently working its way through the regulatory system. “As one of the engineers at Hatch [Ltd.] charac terizes it, it’s virtually an enhanced gas–oil separa tion plant, from a surface perspective, with respect to facilities requirements,” says Murray Smith, director of business development for N-Solv and a former Alberta energy minister. Hatch, a major engineering company, is the con trolling shareholder in the privately held company, along with minority owners Nenniger Inc. (a trust principally owned by members of the Nenniger fam ily) and Enbridge Inc. The pilot will consist of two horizontal wells, an injector and a producer, along with observa tion wells and surface facilities for oil and solvent separation. Suncor has already drilled seven observation wells and current plans call for the two horizontal wells to be drilled this summer. Major equipment procurement is underway and surface plant detail engineering is about 60 per cent complete. The vessels and the heat exchanger are already under construction, and N-Solv is hoping for a facility start-up by the end of the year. The well pair chamber will be warmed for about 90 days and then the solvent will be injected with an almost instan taneous response anticipated by the start of the second quarter of 2013. “You are going to get to know very quickly as to the validity and success of the pilot,” says Smith. “It’s not a soaking; think of it as an ice cube melting.” The solvent, heated to a temperature of 50–60 degrees Celsius, goes in as a vapour and condenses, reducing the viscosity of the bitumen, which then flows to surface, leaving the asphaltenes behind. At the surface, the methane and bitumen are extracted and the solvent is reinjected back downhole along with additional solvent. About 20 per cent of the sol vent remains in the reservoir where it fills the pore spaces. At the end of the pilot, the reservoir will be blown down and the solvent recovered. The technology also has the potential to provide in situ upgrading. “What we actually do is get a different quality product right out of the ground— higher-quality, lighter oil and zero-process water,” Alex Stickler, N-Solv vice-president of business operations, said in a presentation at a spring Insight Information conference. Lab reports have suggested the bitumen, which starts at about eight degrees API, could be raised to about 14 degrees API when produced due to the N-Solv process. “So there could be coking savings for integrated producers and on a full-cycle basis,” said Smith. The company believes that netbacks from the N-Solv process could be as much as two times that of existing SAGD processes. With no water, there’s

images: n-solv Corporation

N - S O LV

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N-SOLV • OAK POINT E N E R G Y no need for water conditioning, resulting in both capital and operating savings. The process will also result in a reduction of about 85 per cent in green house gas emissions compared to SAGD projects. In developing a 500-barrel-per-day pilot, N-Solv was looking at something that could give it all the statistics and data it needs as well as shortening the time to bring it to first oil, said Smith. “We think N-Solv has both scale and scalability.” N-Solv has received $10 million for the project from the federal government under Sustainable Development Technology Canada, and in July was granted $10 million in funding from the Alberta Climate Change Emissions Management Corpora tion. It also has had interest from other companies in purchasing information on the pilot’s findings under data-sharing agreements. According to Stickler, there are any number of reservoirs that currently aren’t suitable for SAGD but which could potentially be developed with a lower-temperature, lower-pressure process. “There’s sort of a no-man’s land where caprock pressures are too low for SAGD,” he told the conference. “That’s certainly a huge opportunity.” There also are some opportunities for the N-Solv process to be employed in carbonate formations. “Certainly in thin pay zones the energy efficiency is quite high,” said Stickler. “There’s a huge, huge potential to tap into new reservoirs, a resource that hasn’t been tackled thus far.” Elsie Ross

GHG Emissions per Barrel 122

Upgrading Emissions Extraction Emissions Unit: Kilograms of CO2e per barrel

76 18 SAGD

N-Solv

93 kilograms CO2e reductions per barrel EMISSION REDUCTION N-Solv’s solvent-based bitumen extraction technology could slash greenhouse gas emissions compared to SAGD production.

COOKIE-CUTTER SAGD Start-up company’s modular, portable, bitumen-producing technology could open oilsands to smaller players

image: n-solv Corporation

The high-cost and potentially high-risk prospect of extracting the oilsands of northern Alberta has tended to exclude junior oil companies without the deep pockets to withstand escalating costs, fluctuating oil prices and shareholder impatience. When the price of oil goes up, so do costs as producers rushing into the market bid up prices for essentials such as engineering services, equipment, fabrication shop space and labour. To make matters worse, producers using the most common in situ production method, steam assisted gravity drainage (SAGD), are generally using methods borrowed from the earlier cyclic steam stimulation process not necessarily optimized for SAGD, ac cording to Oak Point Energy Ltd. Borrowing from successes demonstrated in the automobile sector, Oak Point seeks to optimize the process with an assemblyline approach for modular/portable SAGD facility fabrication, whereby prices can actually decline as unit production goes up. Founded in December 2010, the company and its predecessor companies—including KemeX Ltd.,

which pioneered the technology and was acquired last September—have produced three different-sized configurations of SAGD facility designs built from the ground up to be portable, repeatable and predictable. All are designed to be assembled or disassembled in 30 days or less. “We design once and then you just keep using the same blueprints and building a number of dif ferent facilities—that’s the whole concept,” says Ken James, Oak Point co-president and co–chief executive officer. “From a capital cost point of view, we are reducing it to less than half. And we have a much smaller footprint—so much smaller that… actually, from a square-metres-of-land-disturbanceper-barrel-produced [perspective], it will outperform conventional oil.” To do so, the company concentrated on the aboveground facilities, which account for 80 per cent of upfront costs. Oak Point situates its facilities right on the well pad, he says. “Therefore, you don’t have all the land disturbance of the connecting pipelines, and you don’t have a separate plant site and well pad site.” The technology’s process simplification and auto mation were all designed with portability in mind. Manufacturing of standardized modules—based on proven equipment, but customized and optimized for SAGD production—results in less capital-intensive development and brings certainty to construction costs and scheduling, the company says. Facilities

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OA K P O I N T E N E R GY

can be quickly removed when the resource is depleted and redeployed elsewhere, leading to faster reclamation. The company’s three configurations start with the UltraLite model, with a 1,260-barrel-per-day capacity from one to two well pairs. It can function for explora tion in thin-pay reservoirs or as a portable pilot plant, says James. “Rather than building a pilot plant, using it once and then the next time you want a pilot you build another one, with this one you can use it for a short duration, prove up the quality of the resource, get a handle on your steam to oil ratio and productivity per well pair, and move it on to the next site.” Once a prospect has proven to have commercial potential, one or more of the larger commercial-scale facilities, which can be customized to particular needs, can be moved to and assembled on site. The 1nSite commercial production model, with capacity to 7,200 barrels per day with eight to 12 well pairs, is well suited to development of smaller, non-contiguous assets or where staged ramp-up of production is sought, the company says. And the largest, the MultiSite multiple-well-pad facility, is capable of producing 21,600 barrels per day from two to four well pads. James, the founder and original president of KemeX, started in the oilsands with Imperial Oil Limited at its Cold Lake CSS facility in the 1980s, and has consulted extensively on new plant designs and per formance improvement initiatives since then. He says four years of research and $10 million of investment has gone into development of the technology. “We had to pay careful attention on how we laid things out; it’s not unlike what you do in an offshore platform,” says James. For example, in the case of the MultiSite, boilers will be situated remotely at each well pad to reduce cost and scale of interconnecting pipelines, he says. “That way we don’t have to transfer steam, which requires a large-bore, high-pressure pipeline. We transfer the equivalent amount in the form of water, which [requires] a much smaller, lowpressure pipe, and we make the steam at the well pad.” 26

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images: Oak point energy Ltd.

MOBILE SOLUTION Oak Point’s portable SAGD facility design configurations include, from top, the 1n Site, the MultiSite and the UltraLite.

P R O D U C T I ON

OAK POINT ENERGY

images: Oak point energy Ltd.

REDUCED FOOTPRINT Oak Point facility designs, based on proven equipment customized and optimized for SAGD service, are substantially smaller than conventional plants.

In addition to its reduced land disturbance, Oak Point says its facilities are designed for producedwater recycling rates of 96–98 per cent and are 5–10 per cent more energy efficient than conventional SAGD facilities. Estimated costs from smallest to largest configu ration are $58 million, $152 million and $335 million. The different-sized units are calculated to operate at roughly $46,000, $21,000 and $15,500 per daily barrel of production respectively (excluding commissioning and start-up costs) based on a steam to oil ratio of 3:1 and average well productivity of 600 barrels per day per well pair. Industry leader Cenovus Energy Inc., which touts its own approach to cookie-cutter technology with module construction at a Nisku, Alta., facility, has estimated development costs as low as about $22,000 per barrel of capacity, though the industry average— excluding Cenovus—is above 40,000, according to Oak Point. The Calgary-based company, which has five patent applications pending for its technology, has signed five licence agreements with four companies, including Devon Energy Corp. for its UltraLite, and Koch Indus tries Inc. for its 1nSite commercial plant. Koch declined to comment on its use of the technology or any of its operations in Canada. James says that while Oak Point will sell its small est model, the UltraLite, it does not intend to sell its commercial-size models. It will either enter into land deals where it will jointly develop the resource with a partner, or it will take on a midstream model where companies could engage Oak Point, as owner and operator of the facility, in a lease deal, “so oilsands companies would no longer have to own their facili ties,” he says. The company itself has applied for a 1,700-barrelper-day pilot at its Lewis acreage, which is to be followed by a 50,000-barrel-per-day multi-phase commercial facility with first production anticipated for 2013. Another differentiator for Oak Point could be its de sire to keep module construction in Canada—in particu lar, southern Ontario. This both avoids the sometimes overheated Alberta labour market and takes advantage of excess capacity in Ontario’s depressed manufactur ing sector. “Their shops are 50 per cent loaded,” he says of facilities in Mississauga, Burlington and Sarnia that he has investigated. “There [are] a number of

“ We design once and then you just keep using the same blueprints and building a number of different facilities—that’s the whole concept.” — Ken James, co-president and co–chief executive officer, Oak Point Energy Ltd.

fabricating shops, so we can pick from any number of them.” Modules can be floated to Thunder Bay and loaded on trains to get them to Fort McMurray, James says. The UltraLite, consisting of 10 14-foot by 60- to 70-foot modules, is portable on standard flatbed truck or train car. Larger 1nSite and MultiSite configurations are also transportable on existing roads, the company says. In addition to melding with KemeX for its technol ogy expertise, privately held Oak Point brought to gether Bounty Development Ltd. for its land holdings and GeoTir Inc. for its seismic and project manage ment expertise. Oak Point retained engineering consultant Purvin & Gertz Inc. to review the UltraLite and 1nSite facilities’ design and cost estimates. While it found slightly high er capital-cost intensity than Oak Point’s estimates, Oak Point notes that it developed bottom-up estimates for various components while Purvin & Gertz used, in some cases, industry averages. Purvin & Gertz found the risks associated with the modular design approach are “low to moderate,” and that “[the] Oak Point team has the technical qualifications as well as the commer cial interest to ensure successful implementation of the process control scheme.” James says Oak Point’s flexible, low- and predictablecost technology could open the door to more and smaller companies seeking an oilsands entry. “At the 200 billion barrels of oilsands resource that we have in this province, we have no problem on the supply side, it’s just that individual companies have no ability to actually execute projects faster—that’s the constraint,” he says. Maurice Smith C A N A D I A N O I L PAT C H T E C H N O L O G Y G U I D E B O O K • V O L . 4 2 0 1 2

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THE PROTECTOR New treatment method to reduce damage from corrosion and abrasion has wide application COVER-UP Flint InnerArmor uses a safe, benign process to apply a near frictionless, chemically inert, protective surface on products ranging from small components to long production pipes. At right, its corrosion protection can be seen in the InnerArmor coated surface (top) compared to uncoated steel (bottom).

When Calgary-based URS Flint introduced a new technology into the North American marketplace last year, Bill Lingard, division manager, said it would “de liver an excellent solution to the challenge of corrosion and abrasion across our entire customer base,” includ ing those clients active in the oilsands sector. In March of 2010, URS Flint and Sub-One Technology Inc. of California entered into an agree ment to form a venture to commercialize InnerArmor technology. Called Flint InnerArmor, the company is a strategic partnership between URS Flint and Sub-One. It operates exclusively in North America and provides surface treatment services to clients in the oil and gas industry. URS Flint, formerly Flint Energy Services Ltd., was acquired in May by San Francisco–based URS Corporation—a leading international provider of engineering, construction and technical services—for $1.24 billion. Flint became the new oil and gas division of URS, led by Lingard, former Flint president and chief executive officer, as division president. “It’s one of those things where it is new technol ogy but the applications are far reaching, even in the oilsands. Basically, the licence that we’ve got from Sub-One is for surface oil and gas applications across North America. We are looking at how we are going to commercialize it, and get it up and running all across

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North America to add value to what our customers do,” Lingard says. A patented technology, InnerArmor uses a plasmaenhanced chemical vapour deposition process where the interior of the component acts as a process cham ber, resulting in high plasma density. When applied to a substrate, the InnerArmor process grows a very hard, durable, diamond-like surface on the inside of pipes, valves, elbows and other parts. Lingard notes that the technology, pioneered by Sub-One, protects metallic surfaces from wear, abrasion, corrosion, erosion, scaling and friction, and extends surface life while reducing maintenance costs of various components. Prior to formalizing the joint venture with Sub-One, Lingard was tipped off about the potential benefits of InnerArmor technology by a board mem ber of one of URS Flint’s other joint-venture subsidiar ies, Flint Transfield Services Limited. “He was familiar with it and knew some of the management and board of Sub-One. He said, ‘Bill, you need to take a look at this because I think it has great potential in oilsands,’” Lingard says, adding that he soon made arrangements to meet with then Sub-One chief executive officer Andrew Tudhope. “They had already been up to visit the oilsands and they toured some of the sites up there. But the Sub-One guys aren’t oil and gas guys, they’re technol ogy guys. Immediately when I met with Andy I started saying [InnerArmor] could be used for slurry lines, it could be used for high-wear spools, it could be used for valves…and his head was spinning because I was seeing so many applications for something that not only was resistant to abrasion and erosion, but also resistant to any corrosion.”

images: FLINT INNERARMOR

U R S F L I NT

P R O D U C T I ON

Photo: FLINT INNERARMOR

URS FLINT Lingard says the technology is a perfect fit for URS Flint’s various service offerings. For instance, when the company is fabricating modules for major oilsands con struction projects at its Sherwood Park–based fabrica tion and modularization division, InnerArmor can now be designed into the plant in the high-wear and highcorrosion areas prior to construction and fabrication. “I saw that our Sherwood Park facility could possibly use this type of technology to increase the life of the customer’s facilities. That was one applica tion,” Lingard says. Although not related to the oilsands, Lingard says the second application for InnerArmor in URS Flint’s suite of services is in its business segment that manufactures process equipment for oil and gas wells, mostly for heavy oil and shale gas operations. “We manufacture high-wear spools, sand traps and things like that to take the sand out of produc tion. In those cases, this type of InnerArmor would probably be very applicable there. So, I saw that as number two.” Third up was the company’s oilsands plant main tenance division. “We have four large maintenance contracts…and we thought that division, if they were providing spools to maintain the plant that had the [InnerArmor] liner in them, that it would be a great value to the client in that they wouldn’t have to replace the spools that keep wearing out as often,” Lingard says. “The steel wears out, basically, and we thought there’s another great place where Flint’s involved directly with the clients already. Of course, that was the first place we started trying this stuff, with an oilsands producer with spools that were wearing out fairly quick.” Using a spool as an example—one with a reducer, an elbow or a bend that wears out because the opera tor has a sand slurry going through it—Lingard notes that the cost savings to the client can be substantial. If the spool costs $5,000 to build and another $5,000 in labour to change it out every time it wears down (say every 90 days) the costs can pile up. But treating the spool with InnerArmor can prolong the life of the unit, more than making up for the extra cost associated with applying the technology. “Just assume you can get two or three times the life out of the spool and say it costs 50 per cent more—$7,500 instead of $5,000 to produce the spool with the InnerArmor coating on it, but you immedi ately potentially triple the life. The value to the client is huge,” Lingard says. “In not having to change that spool every three months you save maybe $20,000 a year in labour, you’ll also save maybe $15,000 in parts and you only spend $2,500 extra [for the InnerArmor treatment]. So the return to the client is very, very large.” The company’s first InnerArmor coating machine began operations in February 2011, at URS Flint’s Calgary location. Lingard says the technology is build ing momentum but it’s still in its infancy. “Because we have so many spools in on a trial ba sis, we don’t know the true extension of life yet. We’ve had some very favourable tests, but it doesn’t work in

every situation. The way you should think about this product is like the windshield on your car. For small particles hitting it, small rocks hitting it, they’re just going to deflect off of it,” Lingard says. “But if you get a very big rock hitting this thing, it is harder than tungsten carbide, but it’s going to be a little bit brittle and you can chip flakes off it if you hit it with a big, bulky material. So, in the right applica tion—just like your windshield—it will last a long time and not have penetration through it,” he adds. “We’ve had very favourable results. We’re very excited about it because we see the potential it has.” Paul Wells

MULTIPORT CAPABLE Flint InnerArmor has the ability to coat parts with complicated geometries—it is not line-ofsight restricted.

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technologyprofile Changing the Game in Sand Control and Flow Control Better wells, higher well productivity, and greater reserve recovery—at Calgary-based Absolute Completion Technologies Ltd. (“Absolute”) it’s all about unique products that make a real difference to your business—not just cheaper ways of doing the same old thing. A private Canadian company that celebrates its 10th anniversary this year, Absolute Completion Technologies designs, manufactures and distributes sand control and flow control systems for oil and gas well completions. Since 2008, Absolute has quadrupled in size, with sales in more than 35 countries worldwide. Over the past decade, the company has been hard at work developing new sand control technologies that are different from any other sand control devices on the market, with a particular focus on filtration media performance and unique tool geometry. Why Absolute’s Products are Different “Our new patented screen designs and structures allow oil, gas, fluids and fine non-harmful sand to flow through into the wellbore without plugging the outer surface of the system and stopping the flow into the well. Older technology can either plug with finer sands or suffer erosion or corrosion failures,” explains VP Thane Russell, P.Eng. “Sand production is costly, reduces productivity and can pose safety concerns if erosion to surface facilities occurs. “That’s how we’re changing the well completions game—we improve wellbore productivity by increasing the filtration media’s flow and sand retention capability.” Increasing the retained permeability of the near wellbore area means higher-productivity wells and longer-life wells. In addition, the new designs allow operators to change and improve the well geometries they are capable of drilling. “Our products enable operators to drill longer laterals, shorter bend radiuses and largerdiameter completions,” he adds. “Absolute can truly claim to be innovative because our patented products are different from all other types of sand control—there is nothing else like them on the market. They’re not just cheaper

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ways of making the same old thing. We are especially proud to create them here in Alberta and export them around the world.” Absolute is focused on three main areas of product development: MeshRite™ - Absolute’s most mature product meets the challenges facing operators who develop reserves in highly unconsolidated, heterogeneous reservoirs, and difficult operating conditions, in terms of fluid viscosities and temperature extremes. With MeshRite, “we see productivity gains in wells that reflect the retained permeability improvements we measured in the lab. MeshRite’s retained permeability is at least twice what we see in conventional sand control systems,” Russell says, adding that results always depend on an operator’s unique reservoir conditions. “We now have well installations with run lives exceeding 10 years that are still producing extremely well. We have numerous examples of wells where the decline rate is less than similar wells completed with older, conventional technologies.” Increased well productivity over the long term is the result of MeshRite’s high open flow area and improved plugging resistance. What makes MeshRite unique, Russell notes, is that unlike most other filtration systems, MeshRite has a distributed pore structure with a wide range of pore sizes and shapes. “Other technologies have a very narrow pore size distribution, and all pore shapes are the same. MeshRite is the exact opposite. It uses threedimensional, as opposed to two-dimensional filtration geometry. This means there is less need to match exactly the filter size to the particle size distribution in the reservoir.” This gives an operator drilling long horizontal wells a lot of flexibility, and reduces the risk of impaired well performance as a consequence of a mismatch between filter and particle size—especially as the heterogeneity of the sands they are trying to retain increases. MeshRite is relatively insensitive to heterogeneous sand. “Test after test shows and

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MeshRite™

we’ve got a track record around the world— these wells produce more. Our filter media has extremely high retained permeability once it’s used in the wellbore. Lack of sensitivity to grain size change, high erosion resistance coupled with very high retained permeability—that’s how we give you better productivity, longer well life and plugging resistance.” Building on the success achieved in more than 35 countries, MeshRite is becoming a proven and accepted technology in most basins around the world, particularly in heavy oil applications. FacsRite™ Flush Absolute Cartridge System “FacsRite™ represents our efforts to bring the advances made in filtration media over the last 10 years—in both productivity and retained permeability—to CSS and SAGD applications. FacsRite meets both the price point expectations and challenges of the Canadian market— relatively low cost and extreme reservoir conditions.” FacsRite’s unique filtration geometry embeds the filtration media in the shape of disks directly into the casing wall. “This gives industry a capability it didn’t have before,” Russell explains. “Our technology is two to four times stronger mechanically in all the combined stress modes that are likely to be encountered in a well, yet has an open flow area that is two or more times the open flow area of traditional products currently used for sand control. Open flow area is directly proportional to well productivity. More strength, more productivity and a comparable price are

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significant advantages. Your well geometries get the maximum possible flexibility, because the system has a very high ID/OD (internal diameter to outside diameter) ratio.” Absolute’s filtration media innovations mean “FacsRite performs better and lasts longer,” Russell says. “We design filter media into stronger tool geometries, so it will survive the stresses of installation into deviated and horizontal wells and stand up to thermal and thermal cyclic loading forces. “Being mechanically strong during installation and initial operation is one thing, but FacsRite also lasts longer due to its resistance to corrosion. It is a completely weld-free product and we can use an almost unlimited range of metallurgies. “In International applications where SAGD and CSS are not yet common, FacsRite is gaining acceptance because it will survive increasingly long horizontal well lengths, and allow deployment by drill in, rotation and circulation, which few other screen products are capable of.” FluxRite™ inflow control and injection control systems can be used on their own, or with sand control screen devices. Flow control means the operator can selectively produce different zones of the wellbore, control inflow or injection into or out of those zones, and adjust flow regimes over time. “Integrating FluxRite devices into the wellbore design can have a dramatic impact on long-term reserve recovery, long-term productivity and overall long term economics of the well,” Russell says. FluxRite combines MeshRite with inflow control devices (ICDs) for injection wells and for horizontal production wells to minimize water/ gas coning; evenly sweep the reservoir from toe to heel to maximize oil recovery; and minimize water influx from high-permeability streaks such as fractures. “We have successfully applied these technologies in the Middle East, Southeast Asia, Latin America and Russia, and we know they work. We look forward to bringing them to Canada, where there are many applications.” Celebrating 10 Years Absolute, which also operates a plant in Singapore, moved into a new, larger manufacturing facility in Edmonton in January, and then completed an expansion to the facility in July. The

CYCLIC

STEAM

FacsRite™ Filter Disc Insertion Machine approximately 50,000-square-foot plant and the approximately 100 employees that work there allow Absolute to produce more than 40,000 feet of screen products each month. Absolute is owned by the founders who work in the business, and Schlumberger, which became a partner in 2007. “We are fortunate to have access to the level of technical capability resident in Alberta such as Alberta Research Council and Alberta Innovates – Technology Futures with the capability to help developers test new technologies. “We think the future is very bright,” Russell says. “A lot of today’s industry drivers are positive for our business segment and for our company in particular. Worldwide adoption of horizontal well geometries is driving technical change around the ways these wells are completed and operated. “Absolute has 5 international operating centres providing technical support to clients and our channel partners. More than 70 per cent of our revenue is derived from international activities, and we expect that to continue. We expect to continue to grow the company at the same robust levels we’ve seen over the last five years.” Included in Absolute’s plans, is expansion of its manufacturing capacity beyond Edmonton into other parts of the world. “We are giving people the technology to build

THAI

better wells, and we are doing it in a truly innovative, creative way right here in Canada.”

Please contact for more information: Jose Francisco Albornoz Technology Application Manager, North America D: (403) 750.2265 E: josef@absoluteCT.com www.AbsoluteCT.com FacsRite™ and MeshRite™ are patented technologies, with patents pending on other developments.

FacsRite™

VERTICAL

WELLS

Makes accountants giddy. Gives engineers goosebumps. SUREstack™ is the world’s first proven single-trip fully retrievable ball & seat system requiring no milling or drilling. So it leaves the wellbore completely intact with full access for conventional workover tools. That means reduced cost – you’ll save up to 40% on post fracturing completion time. That means all those IQ tests your parents made you take were right about you.

FRACTURING

PHOTO: sajnel

dvances in multistage fracturing along horizontal wellbores are the foundation of todayâ&#x20AC;&#x2122;s tight oil and shale gas phenomenon. But while characterized as a single technology, it represents a combination of technological advances ranging from more precise and longer-length horizontal drilling to the development of various multistage techniques, more effective fracturing fluids, improving water handling and treatment systems, and advanced planning for increasingly large frac jobs. Continued improvements in all those areas are opening up new opportunities across the technology spectrum.

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NOT RUN OF THE MILL

Plant exceeds expectations for treating salty water for fracking while saving money Water Solution Debolt water treatment plant provided a novel means of supplying the vast quantities of water needed for fracking operations in the remote Horn River area of northeastern British Columbia.

Needing water to perform hydraulic fracturing operations on its shale plays in the Horn River Basin of northeastern British Columbia, a joint venture was lucky enough to find a good nearby source: the Debolt formation. Located 700 metres underground, it contained water so salty it was no good for any other purpose—but there was a problem. The water contains trace amounts of hydrogen sulphide (H2S), making it unsafe to use. “It’s actually saltwater that’s in an oil and gas res ervoir,” says Mark Taylor. He was Encana Corporation’s team lead on their Two Island Lake development when the plant was built, but has since moved on to another company. Aiming to cut down on freshwater use, the 50/50 partnership between Encana and Apache Canada Ltd. (which holds more than 182,000 gross hectares in the Horn River) came up with a three-pronged approach to remove gas from the Debolt water before putting it through fracking equipment. The partners designed and built the Debolt water treatment plant, which can treat up to 100,000 barrels of water per day. They started getting water from the Debolt system in late May/early June of 2010, and expected to treat more than 12 million barrels of water in 2011.

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Since then, natural gas prices have fallen so low that drilling has slowed in the area and the plant has been shuttered but can be started up again quickly. Explaining the process, Taylor says the first step is to flow the water through some sweet gas. H2S has a preference to go with the gas versus the water, so it essentially strips some of the H2S out—but not all. To remove a little more, they adjust the pH of the water by adding a little hydrochloric acid. “The H2S prefers not to stay in acidic water,” he says. That left them with a small amount of sour gas that’s removed by using a chemical they have found that works to completely remove whatever gas is left, says Taylor. The chemical, which he declined to name for competitive reasons, is more widely used in agriculture to control algae in irrigation ditches, but it also has an affinity to H2S. It’s also used in waterfloods at oilfields. When the chemical is mixed with water, the H2S con verts to a harmless substance in a matter of minutes. “As far as we know this plant is the first of its kind in the world,” says Taylor. Using saline water from a deep underground aqui fer for hydraulic fracking is also new, maybe not in the world but at least in North America, he believes. Another first at the plant is the electric submers ible pumps at two wells. Capable of moving 8,000 cubic metres per day of water, they’re the largest in the West ern Hemisphere, according to the partnership. “You’d have to go to the Middle East to find anybody running pumps that big.” The pumps, which had been in service for more than a year at the end of 2011, had been shown at that point to be incredibly reliable, says Taylor. A third, 5,000-cubic-metre-per-day pump acts as backup.

PHOTO: ENCANA CORPORATION

Debolt water plant

F R AC T U R I NG

PHOTO: Poseidon Concepts Corp.

Debolt water plant • P oseidon The companies were aiming for the plant to supply 80 per cent of needed frac water. For the most recent well pads Encana and Apache have fracked in the Two Island Lake area toward the end of 2011, it supplied more like 90–95 per cent of frac water. “We’ve been very lucky and had exceptional run times with the Debolt plant,” says Taylor. The water comes out of the ground at about 35 de grees Celsius and because of its heat, the CO2 and H2S in it is highly corrosive, says Graham Carter, Apache’s joint-venture manager (Carter was the senior facility en gineer for the project during its construction). Therefore the plant’s pipes are made not of steel, but of fibreglass, he says, adding it’s probably the largest plant ever to use such pipes. Three large steel vessels, about 10 feet wide by 40 feet high, needed special coatings. The equipment used to analyze the H2S in the water is also unique. For workers’ safety, the water that leaves the plant is required to contain less than four parts per billion. “That has to be very accurately measured and it had never been done before,” says Carter. “Most people talk about parts per million.” So far this year, the remainder of the required fresh water has been pumped out of borrow pits (dug during road excavation that fill naturally with water because of spring runoff and muskeg) at various points along nearby roads. In 2010, water was taken from Two Island Lake, north of Encana’s operations. “We didn’t need to use any of that water in 2011,” says Taylor. After fracking shale wells, about 25–35 per cent of the water used flows back to the surface in the first three to 12 months of production, and is disposed of back into the same formation a few kilometres from the source wells, helping to maintain the Debolt as a source of water. “The fun part of the story for my team, when we were doing this, is that we were trying to figure out how to do something that, we couldn’t just go to a book or some SPE [Society of Petroleum Engineers] paper and say, ‘OK, well the guys in Arkansas do this all the time and we’re just going to copy them,’“ says Taylor. “Starting from square one and figuring out a process, the partnership’s management team took a fairly large gamble by saying, ‘You can go ahead and build this plant based on the little bit of pilot work [you’ve] done.’“ The number one goal was to reduce the amount of fresh water the partners would have to use, but it ended up also being economical, he says. He estimates savings of around $8–$10 per cubic metre (depending on the season), at 4,000–5,000 cubic metres of water per frac, or about $40,000–$50,000 on every frac job. Now some of Encana’s other shale operations are in vestigating using subsurface saltwater for fracking as well. The project received the Canadian Association of Petroleum Producers’ (CAPP) Responsible Canadian Energy Award in the environmental performance category in 2011. The awards recognize CAPP mem bers that have demonstrated exceptional performance in their commitment to responsible development of Canada’s petroleum resources. Lynda Harrison

OPPORTUNITY KNOCKED Invention of new frac tank system turns E&P company into stock market darling

Mother of invention Necessity is what prompted Poseidon’s Cliff Wiebe to devise a new tank storage system that propelled the creation of the fast-growing spin-off company.

It’s surely a rarity when an exploration and produc tion (E&P) company becomes a stock market champi on, partly because it was not able to get the equipment it needed from the service sector in a timely manner. That’s what happened last year with Open Range Energy Corp. as a result of its then–completions manager having devised a new tank storage system that can accommodate the massive amounts of liquid required on site for today’s huge hydraulic fracture and completion jobs. The company began and ended the year with share prices of $1.90 and $1.87, respectively, but in the meantime it had spun off another company, Poseidon Concepts Corp., with a share price at year-end of $12.47. When Open Range announced in September that it planned to spin off its Poseidon energy services unit, share prices jumped 48 per cent in anticipation of the move. The day the two companies began trading separately, November 4, the new Open Range closed at $2.08 and Poseidon at $11.52. Shareholders did well out of the deal. Each share in the old Open Range was exchanged for one in the new Open Range, plus 0.8839 of a share in Poseidon. The inventor behind the stock market buzz is Cliff Wiebe, now president and chief operating officer at Poseidon. In the fall of 2009, oil prices were rebounding from the 2008 crash and E&P companies were scrambling to ramp up field operations, in an effort to get the jump on any possible future slide in commodity prices. As completions manager at Open Range, Wiebe had concluded that the conventional 400-barrel frac tanks that industry had been using at drill sites for decades were an inadequate storage system for today’s frack ing operations.

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“ It [the Poseidon modular tank] was designed and built out of need, not desire.” — Cliff Wiebe, president and chief operating officer, Poseidon Concepts Corp.

Assembly ReQuired Built with uniform interlocking 12-foot-high steel panels, Poseidon’s modular tanks can accommodate the massive quantities of water required for today’s large hydraulic fracture and completion jobs.

Service companies were busy too, and scouting around for an outfit that would quickly design and build the kind of tank storage equipment Wiebe felt was needed effectively drew a blank, given the timelines of the winter drilling season. “I asked just about anybody who would listen, but [people] said it would take a long time to develop, maybe six to eight months,” he says. Wiebe is an oilpatch veteran with more than 25 years of experience. Prior to joining Open Range, he was co-founder and vice-president of operations at Compass Petroleum Partnership. Before that, for about 20 years, he worked for one, then a second, major international services company. “In the service sector, I worked in everything from field operations to upper-level management,”

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he says. He did some design work on occasion, but in a big outfit there’s typically extensive compart mentalization with little overlap between, say, design work and field operations. Wiebe’s assigned focus was mostly field operations, but only about 20 people work full-time at Open Range. “There’s not quite the division of labour you see at large corpora tions,” he says. It took him a day to design a large-capacity storage tank that could be assembled on site in a matter of hours. “I did the design on Dec. 15, 2009, and it was then approved by an accredited APEGGA [Association of Professional Engineers, Geologists and Geophysicists of Alberta] engineer,” says Wiebe, whose formal education concluded with Grade 12. By Jan. 20, 2010, steel panels for two tanks had been fabricated, and the tanks were assembled and filled with water. “It was designed and built out of need, not desire,” says Wiebe. As he says, the design for the modular tanks can be seen as an extension of conventional spill containment structures—except that the walls are 12 feet high and on-site assembly involves no bolts that might fall to the ground and, in winter, perhaps bury themselves in snow. Poseidon tanks, which originally came in three sizes, are now available in five. The biggest, with a capacity of 41,000 barrels, consists of 15 insulated panels and has a diameter of about 157 feet. Next down is a tank that holds 26,500 barrels. The next has a capacity of 18,000 barrels, and uses 10 panels and has a diameter of 105 feet; another has a capacity of 9,000 barrels with a diameter of 73 feet, and the small est holds 4,500 barrels. All panels measure 12 by 33 feet, are insulated and are connected with interlock ing components that are integral to the panels. Keeping on-site stored water from freezing can be a challenge in winter. “We’ve done jobs with 104 frac tanks. It’s almost impossible to keep them warm enough,” says Wiebe. The insulation on the Poseidon tank panels deals with this, achieving about 75 per cent insulation value. By adding a floating insulated cover, “then we are over 95 per cent insulated,” he says. The floor of the tanks is insulated with a geotex tile material, and a liner covers the floor and walls of the tank, “so tanks are protected from corrosion. It means that panels are always clean for the next client,” says Wiebe. About 2,000 assemblies have been done from the company’s 400-tank fleet for clients in Canada and the United States. The company should have a total of about 500 tanks by early October. For safety, says Wiebe, Poseidon tanks have no belowwaterline valves. Instead, four-inch riser pipes are used for filling and 10-inch riser pipes used for removing the fluid. The Poseidon tanks can dramatically cut trucking requirements. The 10 panels for an 18,000-barrel tank can be loaded onto two trucks. Setting up the same storage capacity on site using standard 400-barrel tanks, with typically two units per truck, would need about 23 truckloads. Godfrey Budd

PHOTO: Poseidon Concepts Corp.

poseidon

F R AC T U R I NG

GASFRAC

A Different Approach

PHOTO: Gasfrac energy Services Inc.

Eschewing water in fracture stimulations brings multiple advantages Among the greatest obstacles to the massive multi stage fracture jobs giving rise to the shale gas and tight oil revolution across North America are those dealing with water. The makeup of the chemical concoctions pumped downhole in slickwater fracs and the massive quantities of flowback and formation water brought to surface after fracking are two of the issues most readily used by opponents to shale gas and tight oil production as potential public health and safety concerns. While the industry labours to deal with those chal lenges, a Calgary company stands virtually alone in its offering of a water-free fracking technology alternative. But, for the most part, GASFRAC Energy Services Inc. promotes its proprietary waterless liquid petroleum gas (LPG) gel process not so much for its environmental advantage but for its contribution to the bottom line. While its technique may cost more, the company main tains it can significantly boost production, more than making up for the added cost. “When applied in the optimum applications, we typically see production rates two to five times greater, and we see ultimate recoveries in the range of 20–50 per cent higher over the life of the well,” says Robert Lestz, GASFRAC’s chief technology officer. The company, which performed its first frac in early 2008, has expanded from western Canada to New Brunswick and a number of U.S. states, from Texas to

Colorado and Pennsylvania. It recently signed longterm contracts with anchor companies BlackBrush Oil and Gas, L.P. in the United States, and Husky Energy Inc. in Canada, as well as a development deal with a European company, eCORP International LLC. GASFRAC, which has completed over 1,200 stimulations on 400 locations in over 45 different reservoirs, as deep as 4,000 metres and as large as 450 tonnes (one million pounds) on a 10-stage 1,200-metre (3,900-foot) horizon tal, hopes to grow its fleet to 12 this year. On the environmental side, GASFRAC joined forces with Green Field Energy Services in January to develop equipment that will allow it to power its fracs more efficiently and with up to 85 per cent less emissions of CO2 and nitrogen oxides, say the companies. GASFRAC currently delivers stimulation services through conventional diesel-powered pressure pump ing units. Green Field has developed a unique split shaft turbine–powered frac pump capable of using multiple fuel sources, including natural gas and pro pane. In addition to burning cleaner fuel, the turbine frac pumps (TFPs) offer improved energy efficiency, a smaller physical footprint and exceptional power density, Green Field says. The combination “will allow us to put more horse power on a trailer, which results in fewer trucks coming to location,” says Lestz. “The turbine engine has a lower weight-per-horsepower ratio, so that means we can po tentially put two motors and two pumps on one trailer and still be within my weight load [restrictions] of what I now have with one.” Green Field worked with Marine Turbine Technologies to develop the technology. Designed for harsh military duty and high cycles, the turbines have fewer moving parts and weigh only about 770 pounds. Powered by a split-shaft turbine engine with varying speeds for the fluid end, the TFP has realized outstanding performance results to date, Green Field says. And unlike its diesel counterpart, which depends on

Fracking Sans Water Unlike conventional hydraulic fracture jobs, which require massive quantities of water to be brought on site and treated, the GASFRAC system is conspicuous for its lack of need for water and the infrastructure needed to support it.

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gear reduction to provide enough power to overcome pressure increases, split-shaft turbines do not sacrifice pump rate. Combining the companies’ technologies “provides customers with the industry’s most environmentally friendly hydraulic fracturing solution,” says Rick Fontova, president of Lafayette, Louisiana–based Green Field. The effectiveness and efficiencies derived from fracking without water, however, remain the main advantage of the GASFRAC system, says Lestz, who, toward the end of more than two decades at Chevron Corporation, helped to develop the LPG concept. While at Chevron, Lestz also led a multidisciplinary research and development organization focused on unconven tional resources. He holds five patents (including those associated with the GASFRAC technology) and has additional patent applications pending. Lestz notes that—unlike with conventional frack ing— GASFRAC’s process saves millions of gallons of water per well, eliminates the need to source water and deal with post-frac waste water, uses no biocides or carcinogens and reduces or eliminates damage to the formation often caused by water, 30–80 per cent of which stays in the reservoir.

with liquids—liquid LPG—and they think we only frac gas wells. In reality, there are probably more advan tages to fracking oil wells and liquids-rich wells with our technology.” Miscibility is part of the reason for that. “We create two stimulations. One stimulation is the mechanical cracking or fracking the rock. The second stimulation is, as the propane goes out into the reservoir away from the fracture we created, it’s actually reducing the viscosity or the thickness of that crude oil, which makes it much easier for that crude oil to flow.” GASFRAC patents cover its unique system to de liver gelled propane downhole, where it reverts to va pour and returns to surface with the produced gas or oil and can be recycled. Unlike water, it does not carry salts, chemicals and other contaminants to surface. A small fire at a Husky drillsite in January 2011, that caused injury to three workers and led to a three-week voluntary suspension of operations, was found to have occurred when a brief propane flash caused the ignition of lubricating fluids and tires on two frac pumpers. An isolation system in place prevented any propane combustion beyond the initial flash.

As with drilling, where more costly components can make sense when they cut the time to drill to more than make up for the higher cost, fracking with LPG adds more to the value side than it takes on the cost side, Lestz says. “The fact that water is not part of the equation is definitely becoming part of the reason people are coming to us, but it’s not because we are not using water as much as it is because that not using water creates more value,” he maintains. “At the end of the day the real value that we are creating by stimula tion is about production. If you look at how many dollars you save in the completion to get X amount of barrels, you are seeing that the LPG jobs are having a lower dollar-per-barrel developmental or completion cost.” As decade-low natural gas prices and relatively healthy oil prices prompt more companies to shift production from dry gas to liquids-rich gas and tight oil, GASFRAC is well positioned to meet the demand, Lestz says. “There are two misnomers about our company and I think a lot of it stems from our name. People think we are fracking with gas, when we are fracking

The company created a series of automated safeguards and remotely operated modules so it can safely conduct the process from a remote command unit. Visual and thermal cameras monitor all pressur ized lines and equipment throughout the entirety of the stimulation process, and the company uses pres sure transducers to monitor unanticipated changes in pressures throughout the system. The company has also computerized its entire system to a far greater extent than those systems in place for conventional frac systems, it says. Husky’s signing of a three-year contract with a two year renewal option is seen as a vote of confi dence in the safety measures taken since the inci dent. “Husky and GASFRAC and other third parties reviewed what had changed since 2008 and what new additions or changes needed to be incorporated,” says Lestz. “In fact, Husky has developed an internal docu ment on how to assure safe LPG operations and has committed to seeing that the industry deals safely in LPG operations such that they have made a large part of their procedures and protocols in doing these LPG jobs available to any of our customer base.” Maurice Smith

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PHOTO: Gasfrac energy Services Inc.

The Next level GASFRAC has entered a new growth phase, anticipating the expansion of its fleet to 12 crews in 2012.

GA S F R AC

F R AC T U R I NG

PACKERS PLUS

Leading The Way

image: Packers Plus energy Services Inc.

Multistage fracking pioneer Packers Plus plays major role in cracking the tight oil code When the history of all the business success stories emerging from the development of the tight oil and gas reservoirs in western Canada and the western United States is chronicled, the story of a 12-year-old Calgarybased company that specializes in an area of oilfield technology unheard of until the last few years might be the most remarkable. “We started small,” says Dan Themig, president of Packers Plus Energy Services Inc. “When we were starting to set up our offices, I brought a computer from my house and we bought office furniture at the Salvation Army.” A decade later, the privately owned company employs over 750 and has annual sales likely in the hun dreds of millions of dollars—although Themig refuses to divulge revenue figures. He says dollar figures aren’t important and serving customers is. Packers Plus has built two state-of-the-art manufac turing centres and a Rapid Tool Development facility— specializing in engineering, research and development, and testing—in Edmonton. It also maintains a U.S. cor porate office, a technology centre and a Rapid Tool De velopment facility in Houston. It has seven offices and/ or facilities overall in Canada, 11 in the United States, and has offices worldwide, including in the Middle East, the North Sea region, China and Latin America, with 31 offices overall. Themig says it’s inevitable that it will double its workforce in the next few years. Themig and partners Ken Paltzat and Peter Krabben, who had all worked together at the former Dresser Industries and then for Halliburton Energy Services Inc., which bought out that company, knew exactly what they wanted to do with the fledgling company when they left secure jobs and formed it. “We were committed from day one to bringing technology to the land-based drilling industry, with a focus on horizontal completions,” said Themig. That focus led to the development of a number of completion technologies, starting with the StackFRAC system, which revolutionized the completions sector by introducing multistage fracturing systems in horizontal wells, credited with unlocking the potential of tight and shale oil and natural gas. The firm has since introduced dozens of products, including the new QuickFRAC system in 2011, which allows for up to 60 stages downhole while pumping 15 treatments at surface. “QuickFRAC is a great technology that can meet the need for increased stage numbers in formations such as the Bakken, Horn River and the Montney as well as many others,” said Themig. “QuickFRAC allows the operator to do the job of pumping 15 stages on surface

while Packers Plus does the job downhole, providing as many as 60 individual stages. This is done by taking a single pumping treatment on surface and precisely directing it into two to five stages downhole. For the operator, pumping time and costs are reduced signifi cantly and production results are greatly increased.” Last summer it introduced its RepeaterPORT sleeve technology, which allows operators to increase the number of stages per lateral when they utilize existing Packers Plus systems. “When we started the company we saw the need for high-end fracturing completions technology,” said Themig. “There was horizontal drilling going on, but nobody was fracking.” The idea of starting a service firm that concentrated on a value-added niche came partially as a result of a class Themig took while he was studying towards a master’s degree in business administration. “The pro fessor said a business can either be a Saks Fifth Avenue or be a low-end alternative,” he said. “We picked the Saks model.” Packers Plus first introduced its completions tech nology in the Barnett shale in 2003 and it now domi nates the completions segment in most land-based tight and shale oil plays.

“When we started you could do five fracs,” he said. “Our StackFRAC brought that up to 20 and now we have technology that can do 60.” More recently it has moved into the offshore market. “Offshore reservoirs might have an extended production life of 20 years or so because of our technol ogy,” said Themig. “We don’t think the market under stands that potential yet.” It continues to be an engineering-focused company, with about 10 per cent of its employees having engineering or technology degrees. He said the company has dozens of engineering projects underway and a number of projects in the developing stages. Themig said the firm will be introducing a range of new products over the next six to seven years. And it’s expanding its manufacturing capacity for a good reason. “We can’t keep up with demand,” he said. Jim Bentein

faster, Greener Capable of fracturing 60 stages downhole while only pumping 15 treatments at the surface, the Packers Plus QuickFRAC system also greatly reduces water usage by using consistent pumping rates.

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advertorial

technologyprofile

API Enhances Operational Potential Oilfield tool innovator maximizes performance Advantage Products Inc. (API) works hard to help oil and gas companies maximize their operational potential. Founded in 1997, Advantage Products Inc. builds and designs highly robust, simple-to-operate, extremely cost-effective products for customers in North America and around the world. API President, Jim Weber, and a partner established the Calgary-based company with the goal of going into the torque anchor business and developing new products. API, which designs and manufactures its tools in Alberta, has a number of shareholders, most of whom are active in the Canadian oil and gas industry. With decades of experience, API’s dedicated team of engineering, sales and operations professionals have made API a top innovator in oilfield tools. The company’s line of industryfirst downhole tools has been designed to maximize the performance of progressive cavity (PC) pumps and their operators. TorqStopper™ To date, API’s most successful commercial product is its flagship tool, the TorqStopper™, which combines innovation, performance and superior design. It is the top-selling torque anchor tool in North America, with nearly 40,000 units sold worldwide. The TorqStopper’s™ proprietary design eliminates the torque applied by the PC pump to the tubing string, significantly reducing the risk of the pump or tubing string becoming unscrewed and falling down the well. This simple tool has saved customers hundreds of thousands of dollars in downtime, operational

and repair costs, and provides them with a competitive edge. PCP (Progressive Cavity Pump) Stabilizer™ Recently, API has developed a progressive cavity pump stabilizer that has been very successful in initial field trials, and is now available on the market. “We had one in service for several years that was working well. We were asked to make more, and demand is building for it,” Weber says. API’s PCP Stabilizer™ is installed at the top of the PC pump and is hydraulically set and is activated by pressure generated by the pump. When used in conjunction with the TorqStopper™, the two tools hold the pump rigidly within the casing, preventing damaging vibrations caused by the pump operation. The stabilizer is released simply by releasing the pressure in the tubing (by draining the tubing). As soon as you pull the rotor out of the stator, the pressure is equalized in the casing and tubing . Once the pressure is equalized, the tool is released. The PCP Stabilizer™ minimizes harsh motion from the pump by preventing it from moving. It reduces the tubing string’s dynamic vibration, drastically reducing the potential for excessive tubing wear and failure, and eliminating costly workovers. Using hydraulic pressure generated by the pump, the tool attaches to the top of the pump and pushes the pump to one side of the well casing, holding it firmly in place. The PCP Stabilizer™ is a powerful, proactive, cost-saving tool that enhances customers’ operations.

TorqDrive™ API has also developed a direct drive permanent magnet motor for use as a drive head or top drive for a progressive cavity pump. These motors do not require any type of speed reducer, either belts or gears, and provide full torque from 0–450 rpm and are continuous rated at full torque from 30–450 rpm. A number of first-generation units are currently out in the field operating on wells. Based on the success of the TorqDrive™, API has begun the development of a secondgeneration motor scheduled to hit the market in early 2013. The new generation motor is not only smaller and lighter, but it is also less costly. By the new year, a wider variety of sizes and capacities will be available for API’s TorqDrive™. Spin-Through Rod Coupling API has been working feverishly to develop a new type of spin-through rod coupling to alleviate rod-tubing wear. It uses a non-rotating polymer bearing sleeve installed on a specially designed coupling, which prevents the rod coupling from contacting the tubing. “We believe it will greatly alleviate tubing and rod string wear,” Weber says. “We are ready to test, and expect it to be out on the market in the new year.”

Please contact for more information: Advantage Products Inc. T: (403) 264.1647 Toll-Free: 1.877.255.2002 (North America-wide) www.advantageproductsinc.com

Thinking OuTside The bOx Advantage Products Inc. is recognized as a top innovator in oilfield tools, meeting the challenges and heavy demands of the energy industry. Driven by innovation, our line of industry-first downhole tools are designed to maximize performance of progressive cavity pumps and their operators. www.advantageproductsinc.com Toll Free 1.800.255.2002

Frac isolation on coiled tubing

+ sliding sleeves

High-performance alternative to plug & perf and ball-sleeve systems Coiled tubing

Frac ports open

Sand-jet perforating sub (standby)

Resettable bridge plug grips and shifts inner barrel and isolates hole below

Sleeve locator

Isolation assembly and sleeve after shifting

Plug & perf and ball-sleeves and packers are basically brute-force techniques, with ﬂuids and fracs bullheaded down the casing and into the formation, with no feedback about formation response at the frac zone, no recourse in the event of a screenout, and no way to conserve water and chemicals. Also, both methods can require extensive post-stimulation work to drill out plugs or ball seats. With the Multistage Unlimited system, coiled tubing provides both a circulation path to the frac zone and a work string, giving this unique system a number of important advantages and none of the disadvantages of the other methods.

Fast frac isolation, mechanical sleeve shift The coiled tubing running string permits the use of a remarkable, patented, dual-purpose tool that 1) isolates the target zone during the frac and 2) shifts the sliding sleeve open at each stage. This sand-friendly Multistage Unlimited resettable bridge plug eliminates the need for

pump-down plugs and sleeve-shifting balls, cutting time between fracs to only 5 minutes. Fracs are pumped down the coiled tubing/casing annulus (smaller, low-rate fracs can be pumped through the coiled tubing).

Circulation path to the frac zone The circulation path to the frac zone throughout the completion operation provides four important beneﬁts: • It is a means to monitor actual frac-zone pressure in real time for better control of sand placement • It provides a way to manage fluids to reduce water and chemicals consumption up to 50% • It provides quick recovery from screenouts by reverse circulating excess sand out of the well • It enables the use of sand-jet perforating to add stages in blank casing, without tripping out of the hole. It all adds up to better frac control, lower-cost completions, and lower environmental impact. Call us or visit our website for more information.

Leave nothing behind.

ncsfrac.com

409.925.7160 (US)

403.862.0870 (Canada)

info@ncsfrac.com

TIGHT OIL & GAS

Illustration: Jeremy Seeman

he most exciting story arising out of the North American oil and gas industry in recent years, the dramatic rise of the shale gas revolution followed closely by the exploitation of previously uneconomic tight oil have changed the fortunes of the entire industry. The predictions of permanently declining North American natural gas and conventional oil output of just a decade ago have shifted to todayâ&#x20AC;&#x2122;s forecasts of a century worth of natural gas supplies and sharply rising crude oil production as new technologies make shale gas and tight oil fields producible. It is a trend sure to continue as technologies are further refined and brought to market.

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STARS ALIGNED Technology, timing and tenacity unlock long-slumbering Bakken shale oil play TRANSFORMATIVE TECHNOLOGY Horizontal multistage fracturing systems, like Packers Plus Energy Services’ QuickFRAC multistage batch fracturing system, were instrumental in making shale gas and tight oil plays economic.

We’ve always known the oil was there, but it took a convergence of factors to make it happen. Those elements included the development of new, more sophisticated horizontal drilling and fractur ing technologies, timing—as higher oil prices made investments in those costly technologies viable—and the tenacity of start-up explorers and producers, and the oilfield service firms who made it possible. Those three Ts—technology, timing and tenac ity—have led to the development of a number of tight and shale oil plays in North America that is unlock ing billions of barrels of oil and turning once-sleepy economies, like those of North Dakota and southern Saskatchewan and now even parts of southwestern Manitoba, into booming areas where there are never enough skilled workers, houses or hotel rooms. Dubbed Saskatchewan’s and North Dakota’s equivalent of the oilsands, the king of the shale oil plays is the Bakken, a pool of light oil trapped under an impermeable layer of 350-million-year-old shale within the Williston Basin, a huge formation under the

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plains of North Dakota, eastern Montana, southeastern Saskatchewan and the western corner of Manitoba. Until the early part of this decade, that potential motherlode—Saskatchewan alone has an estimated 5.5 billion barrels of crude trapped in its Bakken, with North Dakota having that and more—lay virtually dormant, since conventional vertical wells were only able to tap about one per cent of the crude in place, rendering the Bakken uneconomic. Then came a series of technological advances, led by horizontal drilling, which allowed for access to more of the reservoir. By drilling horizontally into the shale, then fracturing the rock with high-pressure liquid and sand, fissures were created in the source rock through which the oil could flow. That technology was further refined so that fractures could be accurately positioned, creating multiple flow points, sending oil gushing into one long horizontal well. Trent Yanko decided early in the decade that the potential of the Bakken was too great to pass up and he has since become a wealthy man as a result and one of the pioneers of development there. In the early part of the decade, the start-up that he led, Mission Oil and Gas Ltd., began picking up land positions in Saskatchewan and contracting with oilfield service companies deploying the new technologies being used to unlock the Bakken’s potential. Mission expanded its production there from just 500

image: packers plus energy services inc.

L egacy O il + Gas

T I G H T O I L & GAS

Legacy Oil + Gas • P roven R eserves E xploitation

barrels of oil equivalent per day to 7,000 barrels, before being sold in 2007 to dominant Bakken player Crescent Point Energy Corp. for $670 million. But that wasn’t the end of Yanko’s tight oil adventure, as soon after he and partners formed Legacy Oil + Gas Inc., which evolved after the takeover of the former Glamis Resources Ltd. in 2009. A series of acquisitions followed, starting with buying privately owned Medora Resources Inc. and Renegade Oil & Gas Ltd. and then with the purchase of a land position in Saskatchewan from Bonavista Trust for $282 million. Those acquisitions have continued as Legacy more recently bought Connaught Energy Ltd. and CanEra Resources Inc., and also picked up a land position from Athena Resources Ltd. All those acquisitions have been focused on shale oil plays in Saskatchewan, North Dakota and Manitoba and on an emerging play in southeastern Alberta dubbed, optimistically, the Alberta Bakken—although it is not geologically connected to the Saskatchewan and North Dakota Bakken. (In July, Legacy sold its southern Alberta assets, excluding its substantial land position in the Turner Valley area, to Bowood Energy Inc. in exchange for 200 million common shares of Bowood.) While the Bakken is the most established of the tight oil developments, other tight oil plays, such as the Cardium, Viking and Lower Shaunavon, are either in development or seen as having great promise. Illustrating tight oil’s potential, Legacy has achieved production of about 16,000 barrels of oil equivalent (85 per cent light oil and natural gas liquids), up from about 10,000 barrels per day a year ago. Yanko continues to be a strong believer in the potential of tight oil, likening it to the resource plays in shale gas areas such as the Horn River Basin of north eastern British Columbia or the Alberta oilsands. “You know the resource is there and there’s a big target,” he said. “It’s technologically driven. The frac is the secret to a lot of these plays and execution by management is the key. We’re spending $1.5 million to $10 million per well, so you need to have a technical focus and you need to execute.” Indeed, Legacy has a group that is second to none when it comes to the creation and application of new technology, Yanko said. “We do use technology a lot—we work on the drilling side, the completions, our fracking, our production operations,” Yanko told the company’s annual meeting in May. “Everything we do, we try to leverage technology.” The company has not only successfully accumu lated an attractive inventory of light oil opportunities, but “we are actually very good at going out there and getting it out of the ground.” The payout in tight oil plays can be 12–18 months, he said, contrasted with years for oilsands investments.

But the plays have characteristics similar to oilsands investments, since they are long-lived, said Yanko. “Once you’re there and you have the land position, you can produce for years,” he said. “You could have 10 or 15 years of inventory.” It is also an economy-of-scale process, much like other resource plays, said Yanko. And as with the oil sands, it helps that oil prices have remained elevated. “We wouldn’t be doing these tight oil plays if oil prices were at $15 a barrel,” he said. The good news is that secondary recovery meth ods will only lead to increased production. “We have 120 sections overall and we could have 1.2 billion barrels under management. If we can increase recoveries by five to seven per cent, that could mean 70 [million] to 100 million barrels more of potential reserves.”

“ We do use technology a lot—we work on the drilling side, the completions, our fracking, our production operations. Everything we do, we try to leverage technology.” — Trent Yanko, president and chief executive officer, Legacy Oil + Gas Inc.

And Yanko believes that kind of potential, and beyond, is possible. It starts with relatively simple ap proaches, such as in-fill drilling, then moves on to waterfloods, which Legacy, Crescent Point and other large Bakken producers have deployed. Eventually he sees CO2 injection unlocking even more of the oil in place. Yanko believes it’s not inconceivable that eventual re coveries, now at 10–15 per cent, could reach 35 per cent from his company’s lands and from much of the Bakken. “We are big believers in enhanced recovery,” he said. Calgary-based engineering consultant Granger Low, president of Proven Reserves Exploitation Ltd., argues that miscible floods using natural gas would unlock hundreds of billions of barrels of oil in reser voirs like the Bakken and in conventional oil pools. “Injecting low-priced gas to produce high-cost oil just makes sense,” he said, commenting on a paper he produced on the subject. He calculated that doing so would lead to the production of 30 billion barrels of oil in Alberta’s C A N A D I A N O I L PAT C H T E C H N O L O G Y G U I D E B O O K • V O L . 4 2 0 1 2

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conventional pools alone, almost double the 16 billion barrels that has already been produced from those reservoirs. He also calculated that at today’s prices that would cost $1 billion and would unlock $1 trillion in oil production. Injecting gas into tight and other unconventional oil plays would multiply those production levels many times more, he argues. PetroBakken Energy Ltd., with over 1.8 billion barrels of light oil in place in its southeastern Saskatchewan Bakken lands, is also a big believer in enhanced recovery. The company has only booked five per cent of its reserves there as proven and probable, but company executives have said they think that could rise to 25 per cent once secondary recovery technologies are applied. Even as Bakken production surpassed the 60,000-barrel-daily mark last year in Saskatchewan, up from just 750 barrels in 2004, it continues to be a

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developing technology story. North Dakota production, almost all from the Bakken and Three Forks shale, has similarly skyrocketed from 100,000 barrels daily to, as of April, 545,000 barrels per day, according to data from the North Dakota Industrial Commission. The technology most often credited with unlocking the Bakken’s potential was Calgary-based Packers Plus Energy Services Inc.’s StackFRAC completion method, which allows individual zones in the same horizontal wellbore to be isolated and fracked separately. Leg acy and other producers utilize similar approaches, which dramatically raised Bakken production rates and profitability. Crescent Point has increasingly shifted to cemented liners for its completions, based on the belief they are better suited to large-scale waterfloods, which it is in creasingly turning to, in order to boost production. PetroBakken continues to utilize Packers Plus completion technology, along with bilateral horizontal wells. In this approach, two 1,400-metre horizontal legs are drilled from one vertical wellbore with 15 fracs per horizontal leg. Most of PetroBakken’s wells are now bilaterals, said Peter Scott, its senior vice-president and chief financial officer. PetroBakken has been doing pilot tests of gas floods on its Bakken lands. “It would be a new approach there,” Scott said. “Crescent Point and Legacy have done water floods, but we feel natural gas might be more effective.” He said the company tested CO2 injection but has decided gas floods may have more potential, especially since it co-produces gas. At the company’s annual general meeting in May, John Wright, president and chief executive officer, said PetroBakken was continuing to test the concept of using natural gas flooding for enhanced oil recovery in the Bakken. “We looked at waterflooding, we looked at natu ral gas flooding and we looked at CO2 flooding,” he said. “It would appear that CO2 probably is the best technical solution for the Bakken.” The next best solution appears to be natural gas, while the least effective from a recovery perspective is waterflooding. “You have to think of the Bakken as an incredibly poor-quality rock, so the ability to actually inject a fluid into it at ratable rates is difficult,” Wright said. “One of the single biggest issues associated with CO2 is that it’s a great fluid to inject into the reservoir and it’s a horrible fluid to run through your facili ties. CO2 forms carbonic acid, and carbonic acid eats through everything.” Existing field performance studies indicate natural gas—less expensive and less corrosive than CO2—will be an effective injection fluid. The majority of natural gas will be recovered and sold at a later date, enhancing the full-cycle economics of EOR due to future expected natural gas prices, the company said. “[In the Bakken] when we’re done our primary [recovery], we’re only going to recover 15–17 per cent

image: packers plus energy services inc.

UNLOCKING TIGHT OIL High-end horizontal multistage fracturing like that provided on an industrial scale by Packers Plus vastly outperforms vertical well completions while limiting the surface footprint.

Petro Bakken • Packers Plus

T I G H T O I L & GAS

PetroBakken • AJM Deloitte of the oil in place, which 10 years ago would have been considered a miracle,” Wright said. “The flip side of that is we’re going to leave 83–85 per cent of the oil behind because we don’t have a way to get it out. “The concept that we’re pushing hard with is natural gas flooding. We’re going to have six pilots going by the end of this year looking at natural gas flooding.” If this cracks the code on the next layer of growth, “we’re off to the races again,” he added. Robin Bertram, associate partner at AJM Deloitte, said production from Bakken and other tight oil plays will only grow over time. “I attribute it to cracking the code,” he said. “Companies are continuing to push the envelope with technology.”

Horizontal drilling technologies have improved, better fracking fluids and muds have been developed, computerized approaches have allowed for better placement of stages and the industry is increas ingly shifting to enhanced production methods like waterfloods, gas floods and CO 2 injection that sweep the remaining hydrocarbons to where they can be produced. “There are some technologies we haven’t developed yet, and they and existing technologies will ulti mately lead to more production from tight reservoirs,” Bertram said. “I don’t know what that production will be, but it will be a big number.” Jim Bentein

CRUDE’S COMEBACK Technologies developed for natural gas set to transform tight oil production

PHOTO: Gordon hunter/PHOTOS.COM

OIL UPTICK New technologies making tight oil economic to produce have reversed the decades-long decline in conventional oil production in North America.

The resurgence in North American natural gas production precipitated by the deployment of gamechanging horizontal drilling and multistage fracturing technologies appears set to repeat itself in oil, as the technologies are applied to previously marginal tight and shale oilfields. While its still early on the crude oil side as companies experiment with the best production parameters to solve individual plays, an increasing number of studies are suggesting the prize—in not only increased pro duction but in new jobs and growing royalties—could be huge as more and more plays are solved. As with natural gas before it, North American crude shows signs of halting its decades-long produc tion declines to (at least in the short to medium term) resurrect an industry thought to be in terminal decline. Assisted by buoyant oil prices while natural gas prices remain weak, drilling has shifted from gas to oil as the technologies are increasingly adapted to oil plays—as well as liquids-rich gas plays—in Canada and the United States. In addition to an enormous natural gas resource base that’s “potentially transformative for the American economy, energy security and the environment,” the National Petroleum Council (NPC) stated it is “per haps surprising to many [that] America’s oil resources are also proving to be much larger than previously thought…. The United States and Canada together produce four per cent more oil than Russia, the world’s largest producer.” C A N A D I A N O I L PAT C H T E C H N O L O G Y G U I D E B O O K • V O L . 4 2 0 1 2

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TIGHT OIL REVISITED New production technologies have put once ignored tight and shale oil plays back on the map.

N ational Petroleum Council • Canadian E nergy R esearch Institute In a comprehensive draft report delivered to U.S. Energy Secretary Steven Chu last fall entitled Prudent Development: Realizing the Potential of North America’s Abundant Natural Gas and Oil Resources, the NPC stated that these oil resources “offer substantial supply for decades.” Technology leadership and sustained investment led the way, according to the study, which involved about 400 people, half outside the oil and gas industry, and took two years to complete. After years of declines, North American oil production rose in 2009 and 2010 “due to advances in technology and significant investment in exploration and development by companies over a number of years.” While the oilsands and offshore fields are contribut ing to the resurgence, tight oil, found in geological for mations where the oil does not easily flow through the rock, such as the Bakken formation of Saskatchewan and North Dakota, could play a major role as it benefits from “technologies similar to those used for shale gas, includ ing hydraulic fracturing. Over the next 20 years, tight oil production could continue to grow,” the report states.

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L. TRIASSIC JURASSIC SWAN HILLS

BELLY RIVER CARDIUM SECOND WHITE SPECKS JURASSIC

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The rapid learning and deployment of new production techniques in recent years to unlock the natural gas supply are still being adapted to oil, it states, pointing to more future potential as techniques mature. “Such learnings have not yet been fully ap plied to new and emerging oil opportunities. As the emerging oil opportunities develop both onshore and offshore and with application of some of the technologies now enabling access to unconventional natural gas, similar upward re-appraisal of potential oil supply will likely follow.”

DECLINE REVERSAL Conventional oil production in the Western Canadian Sedimentary Basin has been on the decline since it peaked at about two million barrels per day in the early 1970s. Production had fallen more than 50 per cent by 2010 to about 900,000 barrels per day even with signifi cantly increased wells on production—38,886 in 2010 compared to about 9,100 wells in 1970. The migration of drilling and completions technol ogy that had been so successful for tight and shale gas to the oilfield is only now changing that picture. Prior to the worldwide recession of 2008, the move toward horizontal drilling targeting tight oil was already underway in Canada, being first noticed in Saskatchewan, according to the Canadian Energy Research Institute (CERI). Emerging horizontal well technology was directed particularly to the Bakken play of southeastern Saskatchewan, where the number of horizontal wells climbed from 384 to 1,233 between 2003 and 2008, acting to stabilize production declines in that province. With economic recovery, the pace has quickened, in some regions very rapidly. “In Saskatchewan, the percentage of horizontal wells grew from 24 to 49 per cent between 2004 and 2009, and the assumption is that this percentage will continue to grow,” states the last year’s report, Economic Impacts of Drilling, Completing and Operating Conventional Oil Wells in Western Canada (2010-2035). Similarly, in Alberta—where plays such as the Cardium and Viking are leading the way—the number of horizontal oil–directed licences swelled from 24 per cent of all oil wells in 2006 to 62 per cent in 2010, when a total 3,095 oil-directed wells were drilled.

VIKING GLAUCONITIC

MISSISSIPPIAN FISH SCALES

BAKKEN THREE FORKS SHAUNAVON

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Canadian Energy R esearch Institute • Alberta Energy R esources Conservation Board Driving the growth in more costly horizontal wells, of course, is improved production. Fewer but more productive horizontal wells will stabilize and grow production in Alberta and Saskatchewan, CERI pre dicts. With increased horizontal well–drilling comes “the potential for increasing initial production rates in the future, based on longer horizontal legs.” In some cases, the increases have been striking. CERI points to average initial production rates increas ing, for example, from 50 to 170 barrels per day over three years in the Edmonton area. While not quite as dramatic an increase was reported in the Bakken, the average horizontal well there still consistently ac complishes initial production rates three times greater than a vertical well does. CERI forecasts conventional oil drilling will plateau by 2016 and thereafter decline two per cent per year as oilsands and natural gas activity pick up toward the end of the decade. The impact on the economy of oil will continue to be substantial. Examining the impact of conventional crude developments anticipated in Alberta, which will create the largest impact of all the provinces, CERI predicts a cumulative sum of additional Canadian gross domestic product (GDP) from 2010-35 (as a result of continued operation of existing wells and the addition of new wells) of $572 billion. Employment in Canada (direct, indirect and induced) is anticipated to grow from 87,000 jobs to a peak of 130,000 jobs in 2018, while direct employment in Alberta is estimated at 29,000 jobs at the begin ning of the study period, reaching a peak of 42,000 jobs in 2018. Compensation of Canadian employees is expected to reach a cumulative total of $155 billion by 2035. Alberta royalty payments are projected to grow from $1.98 billion in 2009 and just $700 million in 2010, to a peak of $4.7 billion in 2027 and fall off slightly year-to-year after that to $4.57 billion by 2035.

PHOTO: rumo/PHOTOS.COM

TECHNOLOGY-DRIVEN GROWTH According to the Alberta Energy Resources Conservation Board’s (ERCB’s) supply/demand outlook for 2011-20, crude oil production was anticipated to grow 6.8 per cent in 2011, in contrast to the slight decline of 0.4 per cent in 2010 and the five-year average decline rate of 4.2 per cent, “primarily due to the expected increase in drilling activity and use of multistage fracturing technology on horizontal wells. Crude oil produc tion is expected to peak in 2013 and begin declining at an average decline rate of four per cent over the remainder of the forecast period, as production from increased wells drilled and wells drilled with new technology somewhat offset declining production from existing wells.” The ERCB cautions, however, that “if the use of multistage completion technology in horizontal wells becomes more widespread in Alberta, the forecast may prove to be conservative.” Horizontal multistage–fractured wells drilled in 2010 were credited with halting the decline in aver age annual production of oil wells that dated back to 1973. In 2010, 2308 successful oil wells were drilled, a surge of 143 per cent from 2009. The last time Alberta

experienced this high level of drilling was in 2005, says the ERCB in its annual review. In 2010, 1,023 new horizontal oil wells (including those using multistage fracturing technology) were brought on production, a 276 per cent increase from 2009, raising the total number of horizontal wells to 4,850. The largest reserves change in 2010 was recorded in the Pembina Cardium Pool, where initial established reserves rose almost seven per cent as a result of extensive horizontal drilling over the last several years, mostly to the south of the main pool. “Horizontal multistage fractured wells have expanded the limits of the pool by allowing economic production from lower permeability sands and silts,” the ERCB notes. Reserves were also increased in several Suffield Upper Mannville pools in part due to infill horizon tal drilling, and there is “potential for significant reserves growth from new horizontal wells in the Cardium Formation at Pembina, Willesden Green and other fields. Horizontal multistage fractured wells are being drilled on the periphery of the main pools where permeability declines to less than one millidarcy as a result of a change to a shalier facies. These techniques are also being used in many other formations, including Montney, Glauconitic, Pekisko, Duvernay and Viking.” The ERCB’s forecast, which included the cat egory of multistage fractured horizontal wells for the first time despite limited information available on their production, projected the number of new multistage fractured horizontal oil wells placed on production to increase from 745 in 2010 to 1,200 from 2011 to 2013. This number is expected to decline to 1,000 in 2014 and stay at this level for the remainder of the forecast period. “This projection considers the option that com panies have in diversifying their drilling activity with natural gas, given the expected increase in gas de mand and price over this same period, but may prove to be conservative based on the crude oil opportunities present in the basin,” it concludes. Maurice Smith

T I G H T O I L & GAS

JOB CREATION The upswing in oil-directed drilling and the growth in infrastructure that accompanies it will create tens of thousands of new jobs in Canada over the next six years, according to the Canadian Energy Research Institute.

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MEETING THE TIGHT OIL CHALLENGE Service outfits respond with a range of products, systems and innovations APPLIED TECHNOLOGY Calfrac has launched several custom frac fluid solutions in the past two years designed to increase production, result in quicker cleanup and better flowback, and reduce produced water.

The stunning success of horizontal drilling and multistage fracturing technologies in shale gas has doubtlessly played a role in the increased applica tion of these technologies in conventional oil plays that are designated as tight oil because of their low porosity and permeability. Armed with these technologies, companies smell fresh profit potential from old oil reservoirs. In the Western Canadian Sedimentary Basin (WCSB), as the Canadian Energy Research Institute (CERI) noted in a report pub lished in 2011, “The industry is returning to old, thought to be depleted, reservoirs equipped with horizontal well drilling techniques to recover more of the resource that remains in the ground.” With the lion’s share of conventional oil’s lowhanging fruit in the WCSB already exploited, and oil prices rebounding since the third quarter of 2009, operators have increasingly pursued tight oil plays in the Cardium, Viking, Bakken and elsewhere

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across the basin. CERI’s numbers for Alberta, for example, highlight the expanded role of horizontal wells and tight oil plays in the region’s conventional oil sector. “In Alberta, in 2010, the number of hori zontal oil-directed licences grew to 62 per cent of all oil-directed licences. This is a significant change from 2006 where the number was 24 per cent,” said the report. Multistage horizontal fracturing (MSHF) has not only a critical role in the productivity of a well in a tight oil formation, but, as in shale gas, it typically accounts for a huge part of a completion budget. According to an analysis from Fracturing Horizontal Well Completions Inc., frac days, on average, ac count for about 72 per cent or more of total comple tions and stimulations costs when using MSHF. Pointing to a chart used in the analysis, Tim Leshchyshyn, president of Fracturing Horizontal, says it refers to all formations, based on data his firm has gathered. He adds, though, that because some completions expenses are entered as part of drilling reports, “particularly in the case of openhole packers,” his figure of 72 per cent may under state the actual percentage of completions costs. “[It] could be five to 10 per cent higher.” Leshchyshyn says that, once the oil is found, as much as 90 per cent of well productivity optimiza tion is frac-related. So, given the costs involved and importance of its role, implementing the best possible fracking program—for every well that uses MSHF—has become imperative for operators.

PHOTO: calfrac well services ltd.

Canadian Energy R esearch I nstitute • F racturing H orizontal

T I G H T O I L & GAS

PHOTO: calfrac well services ltd.

Fracturing H orizontal • Geo W ebworks Also, because of the demand for fracking services, he says, companies can no longer count on free con sultations from fracking outfits, and must plan their completions programs carefully in advance. A chemical engineer with a talent for computer science and more than 20 years of experience in the fracturing sector, Leshchyshyn is in demand for his consulting services in North America and overseas and as a conference speaker. He was conference chair at the recent Shale Oil Summit for Western Canada in Calgary and chaired the Insight Tight Oil Forum in Calgary in December. He is chairing the Insight Tight Oil Forum in Calgary again this year, and is scheduled to speak at other conferences. Part of the reason is his firm’s unique suite of services, which are geared to resolve some of the key well history/data challenges of the horizontal fracking era—as well as playing a key role in helping companies figure out how best to proceed with each of their specific frac jobs. Fracturing Horizontal, in partnership with Geo Webworks Inc., which has been providing public exploration and production (E&P) data to industry since 2000, appears to have a critical tool for MSHF completions and improving productivity in the form of a fast-growing completion, fracturing, drilling and well files database that is tied to production figures. “It’s a database for optimizing frac completions,” says Leshchyshyn. The firm has recently launched a new product series—its Know-It-All reports. “These collect all well files and extracted engineering data for a specific play and year. The Know-It-All: Cardium study that is currently underway is already helping E&P companies make the right decision at the right times,” says Leshchyshyn. Besides bridging a knowledge gap between key in put variables of fracking completions and production figures, the firm’s FracKnowledge database—which is supported by software, maps, graphing, reports, tables and ways to export to Excel from Geo Webworks—can save engineers a lot of time. “Reports go to provincial libraries—fine—but about 10 years ago, companies started scanning all documents and putting the [well] reports on a site. But an engineer might have to look at over 100 reports, each 100–300 pages long. It took too much time. I’ve given industry a tool to get the same information in five minutes. With FracKnowledge, all the key variables of the reports are captured and categorized,” says Leshchyshyn. The database, supported by Geo Webworks software tools and Fracturing Horizontal’s consulting, when needed, is a significant step in the develop ment of data-supported analytic tools for fracking optimization, says David Burns, business development manager at Geo Webworks. The complexity of today’s completions sector and the lack of data tying MSHF completions variables with production history have been a challenge and source of debate within the industry. The advent of FracKnowledge looks like an important step toward reducing risk and improving the chances of success, putting uncertainty and debate to rest on some issues, while, as Burns suggests, sparking new debates on

other issues as the fast-growing completions sector continues to evolve. For decades, the key determinants of productivity were porosity and permeability, says Leshchyshyn. “But in the last five years, multifrac horizontals have changed everything.” When vertical wells dominated the industry, the number of key input variables, aside from geology, when deciding on the type of frac to do, could be boiled down to three, he says: frac fluid type, proppant type and amount of sand. “Today, the inputs are cost, frac fluid chemistry, total number of stages, spacing, the type of isolation or diversionary liners—for ex ample, cemented liner versus open-hole are among the variables—tonnes of proppant per stage, production figures; all these can be cross-referenced in several ways,” he says. Fortunately, “about 90 per cent of the time, all the key input variables are reported to the provinces—for us to find. This allows the users of FracKnowledge

R&D Several service companies are devising a variety of fracture fluid formulations in the laboratory for application in emerging tight oil plays.

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N C S • Horizontal Solutions International

NEW PRODUCT DIVERSITY TACKLING TIGHT OIL Top: Sanjel researchers develop new frac fluids. Bottom: Supported by Gydex, Horizontal Solutions International provides software and consulting services for geosteering and geo-navigating horizontal wells.

BUILT-IN FLEXIBILITY Right: Sanjel operates largecapacity, skid-mounted 3,500-horsepower pumpers that can run on diesel, natural gas or a combination of both.

To meet the demand for fine-tuned fracking solutions, established companies and firms in the service sector have been expanding their product offerings, with newer firms often filling a gap with niche solutions or, as in the case of Fracturing Horizontal, specialized products with potentially broad application. Another case in point of the latter is NCS Energy Services Inc., re-launched in 2008 as a downhole tool company focused on MSHF. In 2010, NCS introduced

a new sliding sleeve that sits as a section of the casing string and runs with the same internal diameter, burst and collapse strength of the host casing. Instead of perforating at the frac-initiation point, the sleeve’s frac ports provide access to the formation and are opened by the Mongoose packer on the tubing string. There is thus no need for pump-down plugs for stage isolation or sleeve actuating balls. The casing annulus sealing can be either cement or swellable packers. The key benefits of the new sleeve, says Eric Schmelzl, sales manager at NCS, are cost reduction, better reliability and improved speed of execution. “You don’t need to go in and out of the hole for each stage,” he says. In the event of a sand-off, “since you have the tubing in the hole, you just circulate to remove the sand. Also, while doing the frac, the operator can see the actual bottomhole pressure because of static pressure inside the tubing, and it is being measured right where the ports are. By having an accurate pressure reading, it’s easier to predict screen-out and avoid it,” he says.

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NCS’s new Multistage Unlimited system’s frac isola tion assembly, which combines the new sleeve technol ogy with many elements of its existing Mongoose packer and frac system, includes among its key components a resettable bridge plug, a mechanical sleeve locater, an abrasive jet perforating sub and an equalizing valve/ reverse-circulating sub. “The locater saves time by only recognizing frac sleeves, which makes locating the next stage of the frac operation fast and simple,” says Schmelzl. After a frac stage is done, a pull on the coiled tub ing opens the equalizing valve and un-sets the bridge plug and the isolation assembly is moved to the next sleeve. Once all frac stages are completed, tubing and isolation assembly are pulled from the hole, with no components to remove and no plugs or ball seats to drill out. With only about five minutes between fracs, Schmelzl says a key benefit of Multistage Unlimited is

the money saved with a speedier, more seamless frack ing operation. “With this system, we have routinely placed 10 30-tonne stages in less than eight hours,” he says. The system can accommodate additional frac stages on the fly, even where there is no sliding sleeve, by using the system’s integral jet-perforating sub Schmelzl estimates that about 5,500 Multistage Unlimited sliding sleeves are now in the ground, deployed in both cemented and packer-style comple tions. A new low-cost version of the sleeve has been introduced, which targets the lower-pressure frac re quirements found in some of the more shallow Viking, Spearfish and Bakken formations.

BETTER AIM Earlier in the E&P process, during horizontal drilling, guiding the drill bit along what is sometimes a relatively thin formation pay zone can be tricky, especially in some of today’s tight oil plays. Horizontal Solutions International (HSI) has worked on horizontals since the late 1980s and provides software and consulting services to keep the drill bit on track. “We’ve geosteered

PHOTOs: (top left and right) Sanjel corporation; (bottom left) Horizontal Solutions International

to learn from others’ mistakes or success, and adapt these lessons to their own wells,” he adds. Geo Webworks provides clients with training on running the software analytic tools and Fracturing Horizontal provides a range of consulting to help clients understand the data content and, says Leshchyshyn, “We support their getting more data of a specific type that they might request.”

T I G H T O I L & GAS

Departure • S anjel • Calfrac • GA S F R AC and geo-navigated about 8,000 wells. We also provide software to some end-users that use the software on their own,” says Ken Bowdon, president and chief executive officer of HSI. The company uses LatNavNet software to incorpo rate a range of data sets from the well and the formation, including gamma ray data. “It models the data so that the distortion that results from the horizontal plane is removed. The software does require an interpreter. The data is sent off-site to the geosteering team, or some times to a geologist on site. Directions typically come back within a short time,” says Bowdon. Supported by Gydex LLC IT, HSI has recently beefed up infrastructure and client support services to meet the current growing demand, says Bowdon, who is a co-founder and managing partner at Gydex. A technology for augmenting horizontal drilling, which has been successfully used in the United States to depths of over 12,000 feet, has begun to be used more in Canada. Departure Energy Services Inc. recently added an electromagnetic measurement-while-drilling (EMWD) tool to its suite of downhole equipment. The technology is much less expensive than those used off shore but can improve the depth capacity of horizontals. Also, “it helps operators steer better within reservoirs,” says Dan Robson, director of strategic development at Departure. In some of the thin formations of tight oil plays in the Cardium, it’s likely this could be helpful. Quality materials and high-end metallurgy are also assuming a greater role in the composition of downhole tools for horizontal drilling. “We now build a mud motor for the horizontal drive train to advanced metallurgy [standards] in order to support the aggressive [ac tion] of drill bits and power sections,” says Robson. Until recently, some of Departure’s downhole tool steel components had a yield strength that equalled that of landing gear for a Boeing 747 jumbo jet. But now those same parts are made to specs that compare with those on a satellite, he says.

PHOTO: calfrac well services ltd.

FRAC FLUID CUSTOMIZATION Fracking fluids have assumed increased importance be cause of MSFH and their growing variety is a response to the need for precisely targeted products. Sanjel Corporation’s recently introduced Kappajel water-based surfactant is geared to clean up, so there is no chemical residue left to reduce porosity at the wellbore. “It’s be coming more widely used in light oil in the Cardium and Viking plays. Its single purpose was flowback without residue. It can be used in oil and gas,” says Ken Berg, vice-president of sales at Sanjel. The company is also adding large-capacity 3,500-horsepower pumpers to its fleet. Each of these almost replaces two standard units. “Construction costs are cut and the pumps are so robust that repairs and maintenance are also cut. A frac job could go from 25 to 15 units by using them,” says Berg. The skid-mounted units can run on diesel or natural gas or combinations of both. The renewed interest in the Cardium and other tight oil plays requiring MSFH has also prompted others to expand their fracking fluid offer. Calfrac Well Services Ltd., for instance, has introduced several new

targeted, custom solutions in the last two years. Under the company’s rating system, some are classed as green, including one called CleanTech. “CleanTech was de signed specifically for the Cardium, Bakken and Viking, which are predominately low permeability. It’s green and low-viscosity and minimizes filter cake, and, more importantly, chemical residuals. The proof is in the num bers. We’ve seen higher production, lower produced water, quicker cleanup and better flowback, and faster production start,” says Chad Leier, sales and marketing manager at Calfrac. The water-based frac fluid can be pumped on its own or foamed with nitrogen. Most fracking fluid suppliers include both oil- and water-based products, but one company, GASFRAC Energy Services Inc., has been focused almost exclu sively on a particular type of petroleum-based fracking system since it was launched in 2007. According to its latest annual report, GASFRAC is the only fracture stimulation company using gelled liquefied petroleum gas (LPG), usually propane, as the frac fluid. One of the main reasons for the LPG-based system is that fracking operations can benefit from the excep tionally low surface tension of liquefied propane—about one-tenth the surface tension of water and about onethird that of most frac oils. The GASFRAC system has been successfully used in tight oil formations in the Cardium and depleted res ervoirs in the Viking. In explaining the thinking under lying the use of LPG, former GASFRAC president and chief operating officer Reid MacDonald said, “When you use a liquid wedge with such a low surface tension, the fluid cleans out the fracture almost completely, increasing the effective fracture length. This translates into improved well productivity over the short and medium life cycle of the well, higher recovery factors and improved reserves.” Godfrey Budd

FLUIDS DELIVERY Calfrac takes its customdesigned fluids to the field. The ramp-up in tight oil drilling has revitalized many rural areas previously abandoned by producers.

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They can copy us. They just canâ&#x20AC;&#x2122;t be us. If imitation is the sincerest form of flattery, weâ&#x20AC;&#x2122;re one flattered group. Drawing on a quarter century of oil and gas experience, geoLOGIC continues to be the market leader in data, software solutions and support. And while we lead the way, our competitors desperately create parity products, sometimes years after us. For details on how geoLOGIC leads the way, visit www.geoLOGIC.com/leader

Leading the way with customer-driven data, integrated software and services for your upstream decision-making needs. geoSCOUT | gDC | petroCUBE at www.geoLOGIC.com

DATA MANAGEMENT & SOFTWARE

PHOTO: linuxgeek/sxc.hu

revitalized North American oil and gas industry is one that has become more complex, more data intensive and more reliant on labour-saving automation. Into this picture has come new and improved software and information technology to sustain the new demands placed on the industry. The results range from better costs controls and streamlining of operations to improved seismic interpretation and higher levels of real-time operational control.

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If you are an industrial builder, it’s hard to imagine a better place to be than Alberta, where healthy growth seems set to continue for decades. The Canadian Association of Petroleum Producers forecasts that oil sands production will double between 2010 and 2020 and reach over 3.7 million barrels per day by 2025. Looking further out, the Canadian Energy Research Institute predicts that output will reach 5.1 million barrels per day by 2042, with total initial capital spend ing estimated at $257 billion over the next 35 years. And oilsands investment will generate $1.7 trillion in economic activity over the next 25 years, says the Oil Sands Developers Group. In the past, in particular in the overheated oilsands building boom prior to the 2008-09 recession, massive

millions, or billions, of dollars, they can’t wait for a company to close off their month end and give them monthly costs. They want to see daily costs, which financial systems aren’t very good at doing.” DTC is not replacing companies’ financial systems, but rather, “essentially extending them out into the field,” Cuthbert explains. Typically, financial systems need to process payroll every two weeks—as well as to receive invoices, issue purchase orders and perform all of the legitimate func tions that need to happen in order for them to comply to generally accepted accounting principles, Cuthbert says. “Whereas with our software, we have rates set up, and contractors on site can just enter their labour, equipment and materials and we can instantly produce cost reports for them. “We still need to interface with the financial systems, but we can be much more immediate than a financial system. It helps the owner keep a closer handle on costs, and there are a lot of efficiencies that can be realized. They can certainly reduce their overhead costs, which typically the owner pays for, and for a megaproject, it can save the contractor and

cost overruns became the norm, sometimes running into the billions of dollars. There are several reasons for blown construction budgets, and an Edmonton company believes it can solve one of them as construc tion heats up once again. According to Digital Time Capture Inc. (DTC), mil lions of dollars are lost every day in the building indus try due to construction and financial systems that do not effectively communicate with each other. Its DTC time-tracking and invoicing approach was created to eliminate that deficiency. The company, which specializes in complex, high-volume project cost tracking, has developed technology that allows companies to track labour, equipment, material and subcontractor information as it happens on site. “It was created in the vein of trying to give the oil companies what they need, which is the daily cost reports—something we produce out of our software, which is what they ask their contractors to provide,” says Scott Cuthbert, DTC’s chief executive officer. “Typically, when oil companies are running megaprojects, where they are spending hundreds of

the operator a couple of hundred thousand dollars on each job.” There is the qualitative value of having information immediately, versus having to wait two or three weeks, which—while it’s more difficult to quantify—creates efficiencies and additional value, he adds. “When their contractor can provide their daily costs, they are able to make management decisions on a daily or a weekly basis rather than on a monthly basis. In a lot of the megaprojects, if you can identify that you are off track early on, you can take some corrective actions that much earlier and stay on track before it’s too late.” In constructing a strip mall or a high-rise build ing, it is relatively easy to visually quantify how much work has been done, Cuthbert says. “But to see the megaprojects at Fort McMurray [Alta.] or the refiner ies in Strathcona [near Edmonton], it’s very difficult to stand there and judge the progress because the job is so complicated. So they really need to be able to break down the costs into really small chunks, which we can do, and then they need to know each day how they are doing against their forecasted progress, which again we can help out with,” he says.

A BETTER BUILD Software solution eases the pain of construction contractor field data tracking

KEEPING TRACK Digital Time Capture’s field data capture software can encapsulate the complexities of large construction projects, such as oilsands megaprojects, into daily cost reports to help ensure they remain on track.

D I G I TA L T I M E CA P T U RE

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imagess: digital time capture Inc.

DATA M ANAGEME N T & SO F T WA R E

images: digital time capture Inc.

DIGITAL TIME CAPTUR E

DATA M A N AG E M E N T & SO F T WARE

“Of course, there are a lot of reasons why cost overruns happen, but the feedback we have received from major oilsands operators like Syncrude [Canada Ltd.] and Suncor [Energy Inc.] is that customers who use our software give them accurate information, which allows them to make good decisions. They can trust that if they are using our software and they are predicting a cost overrun, that it probably is going to be a cost overrun and they need to do something immediately.” A strategic alliance with Automatic Data Processing, Inc. (ADP) allows DTC to integrate with ADP’s payroll service, allowing delivery of a single-sourced solution to highly complex construction payroll. Electronic time sheets allow for easy entry of personnel, equipment, expenses and subcontractor information into the system, while online access gives project managers and company executives immedi ate access to up-to-date project information. Security features allow the set-up of access based on company department, position or geographic locations. The software, built in the Microsoft .NET frame work, allows companies to compare estimates to

A 23,000-employee firm with over $6 billion in an nual revenue, CH2M HILL initiated a selection process to find a solution, believing their findings would lead to an in-house resolution. Instead, it found DTC best fit the bill, according to Sam Burgin, CH2M HILL sys tems analyst. “We entered into a nine-month software selection process and after screening over a dozen software vendors, we selected DTC as the solution that best fit our requirements for enterprise field data capture,” he says. DTC’s technology gave CH2M HILL quick access to time sheet data and allowed the company to enter time sheet information through its easy-to-use inter face. The system gives CH2M HILL complete control of how the data is handled and allows the company to make any corrections to the data in DTC while main taining a clear understanding of how the changes will affect its financial system, Oracle Financials, allowing it to manage time sheet data more efficiently, accu rately and in volume. In March, DTC announced a partnership with DRAXware Inc., a technology spinoff from the University of Alberta’s Department of Civil and Environmental

actuals for productivity measurement, to achieve visibility and standardization across projects and to analyze historic information to better estimate future project costs. Though DTC has no physical presence in the United States, Cuthbert says that, curiously, interest has been stronger south of the border, where the company has clients not only in oil and gas, but in the mining, utilities and nuclear industries. The company has about 35 clients across North America. “I would say 60 per cent of our customers are out of the United States,” he says. CH2M HILL, a Denver-based company involved in consulting, design, operations and program manage ment for industrial, energy and government clients, turned to DTC after it purchased several construction companies and replaced their payroll systems with ADP. It found deficiencies remained, such as the in ability to edit time sheet data and updates that were done through ADP—which led to dual maintenance of updates—and the inability to manage or calculate all the necessary pre-payroll items to correctly process parts of its payroll.

Engineering, to create DRAXware Solutions Inc. DRAXware supplies productivity enhancing software and consulting services to infrastructure projects. Among DRAXware’s clients are Edmonton-based PCL Construction, Canada’s largest construction firm, Kiewit, a U.S. construction, mining and engineering firm, and the City of Edmonton. The two companies combine leading-edge research and development with practical hands-on industry expertise. “It’s a marriage of years of industry expertise and cutting-edge, productivity-boosting technology. We are now positioned to become the industrial construction’s go-to IT tool box,” says Jianfei Xu, DRAXware president and chief executive officer. Cuthbert says the merger, to be completed this fall, will double the size of the company and open up new opportunities. “DRAXware Solutions Inc. has the unique ability to provide customers with the most comprehensive construction management software on the market. It is a combination that can provide flexible, innovative solutions to an industry with unique needs.” Maurice Smith C A N A D I A N O I L PAT C H T E C H N O L O G Y G U I D E B O O K • V O L . 4 2 0 1 2

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I CAN SEE CLEARLY NOW Cloud-based website portal allows access to seismic data while it’s being created

S E I T EL been incredibly valuable to our company,” says Mark Watson, senior vice-president of sales and marketing for Olympic Seismic. “When we propose a new pro gram to a potential client, it differentiates us from our competition and helps us to close opportunities. It’s a perfect example of leveraging superior technology that our competitors don’t have, that allows us to promote our company and generate revenue.”

SEEING IS BELIEVING Using Google’s Fusion Technology, Seitel was able to load North America’s largest seismic database into Google’s cloud database tables.

The headquarters for Bonavista Energy Corporation are situated in a modern skyscraper in downtown Calgary. Staff can gaze north and west from their office windows toward the snow-capped Rocky Mountains and the western plains, where they have earmarked $400 million for seismic and drilling exploration during 2012. What their vista doesn’t show, of course, is how the work is going on the ground. For that, they need the Project Portal. In 2011 Bonavista participated in a major 3-D survey shot by Olympic Seismic Ltd., in northeast ern British Columbia over the Montney play. “I used their portal tool,” says Kevin Mullie, a senior geophysi cist at Bonavista. “You could pull it up every morning and see the project status from the previous day show ing how much line had been cut, how many shot holes drilled and the safety records. It was very valuable.” Olympic’s Project Portal is a groundbreaking web site that uses the latest in cloud-computing technology, to allow clients to access an immense amount of seismic information as it is being created. “Project Portal has

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image: SeiTEL, inc.

SEISMIC SHIFT Every year, oil companies spend billions of dollars around the world on seismic data. In turn, service companies invest heavily in research and development to improve acquisition, processing and interpretation capabilities so that companies can leverage that data to discover and efficiently produce untapped reserves, such as the subsalt plays in ultra-deep waters in the Gulf of Mexico and offshore Brazil, and in the shale basins of North America. However, one area has lagged in technological advance: the ability for clients to access data as it is be ing acquired. Seitel Inc. is a leading provider of seismic data and services to 1,600 companies in the oil and gas industry. Seitel and its Canadian subsidiary, Olympic Seismic, have the largest seismic land database in North America. It owns over 44,000 square miles of 3-D, and approximately 1.1-million linear miles of 2-D seismic data concentrated in the major active North American oil and gas producing regions. Seitel has several major divisions within its busi ness: marketing, seismic acquisition, seismic processing and solutions (the technology and delivery engine for its extensive data library). On any given day, the company is shooting data in the field, adding new products to its catalogue, issuing quality inspections, licensing new and existing data sets, and complying with geophysi cists’ requests for updates on processing and acquisi tion projects. In order to better service clientele, Seitel launched its first web portal in 2002. In early 2010, Seitel began to experiment with Google Maps, a web-mapping solution based on cloud computing. Both public and proprietary data can be viewed from the website portal on a variety of devices, which include tablets, smartphones and the client’s desktops. The use of Google’s Fusion Technology provided the ability to load North America’s largest seismic database into Google’s cloud database tables, replicating it worldwide throughout Google’s server farms. Seitel unveiled the new website at the Canadian Society of Exploration Geophysicists conference in May 2011. Using the system is easy and intuitive. Starting with a Google map, the user zeros in on a specific geographi cal area or play. Then, a series of mouse clicks allows the user to highlight specific land sales, producing wells, available seismic and current acquisition programs, as well as proposed projects. Further details, including shooting parameters, processing highlights and dataquality inspections are easily accessed and downloaded to create sophisticated geoscience data files. “You have the ability to navigate to an area of interest and col laborate with your team in real time,” says Bill Leakey, vice-president of technology and development for Seitel.

DATA M A N AG E M E N T & SO F T WARE

SEITEL • VISAGE Clients can view acquisition projects currently underway, accessing information and reviewing infield progress in fine detail, down to the cutting, surveying, drilling, shooting and processing. LiDAR (light detec tion and ranging, an optical remote sensing technology) and photographs of the terrain are available for review. Graphs show actual progress on a daily basis. “Our website isn’t just static, it’s interactive,” says Leakey. “No other competitors have this.” Industry response has been positive. Crew Energy Inc., based in Calgary, works three core areas in western Canada. In the last year, it has more than doubled production, to over 30,000 barrels of oil equivalent per day, and plans to spend up to $300 mil lion in 2012, drilling 141 wells. As part of its explora tion program, Crew invests in several new seismic projects every year. “We contract mostly 3-D,” says Grant Wennberg, manager of geophysics for Crew Energy. “We need data to delineate stratigraphy and structure, so that we can place our wells in the most productive zones. We are also looking at how the Poissons ratio relates to frack ability. You need high-quality data to do all of that.” For Wennberg, timely access to information is very important. “We operate in regions where the competi tion is high. Being dynamic is very important; you are always under a time crunch. You want to get in and out before breakup, you want information before your leases expire; to do that, you want to get your seismic and make a decision.”

With Olympic’s Project Portal, Crew geophysicists can see what is happening with their seismic acquisition in almost real time. “For instance, permitting delays are a big issue; if you see that happening, you know it quite quickly,” says Wennberg. “I can also do a lot of quality inspection while the shooting is going on in order to ensure that the quality is good.” For Olympic, the interactive website both improves service to clientele and allows for rapid expansion. “Our business is built on acquiring and adding new data; including our clients in the data creation process means they get a better product,” says Leakey. “It is also allow ing us to scale up. We add more data, not staff. It’s also been a tremendous efficiency gain for us because the potential client can download brochures and param eters for our data themselves, whenever they want.” In the end, however, the success of the Project Portal rests on delivering value to the oil and gas indus try. “The portal has a progress report bar that tells you the completion status of each part of the seismic survey: permitting, survey, line cutting, drilling and recording,” says Mullie. “This has management value as you can go into a meeting and report on how close the survey is to completion. You can also download shot records during the recording phase. That way, you have confidence in the quality of the survey once it is done.” “I’ve been using it for over a year now; it’s easy, it’s functional and it is well designed,” says Wennberg. “I can check the status of my shoot in two minutes.” Gordon Cope

MINING FOR DATA VISAGE Information Solutions software: a new tool in exploration Launching a new oil and gas company has always been a challenge, but an innovative Calgary-based software company is helping to reduce some of that initial exploration risk. The tool developed by VISAGE Information Solutions allows for the rapid access, analysis and visual interpretation of more than 710,000 wells in the Western Canadian Sedimentary Basin. Elkhorn Resources Inc. used that visual analytics technology to screen exploration areas in building its business plan, says Kory Galbraith, vice-president of engineering for Elkhorn, who nominated VISAGE as a New Technology Magazine Technology Star in 2011. “It’s a very powerful tool, but very user-friendly,” he says. “With the click of a button, we were able to analyze different play types and technical concepts utilizing all publicly available information and all in real time. The VISAGE product enabled us to make quick and accurate decisions that were thoroughly researched and well-founded.” The start-up company had identified the geo graphic area in which it wanted to operate—Manitoba, southeastern Saskatchewan and North Dakota—and used the software to look at a number of different plays

from an engineering perspective to complement the geology. For example, Elkhorn was able to determine the average type curve for a well in the Spearfish play in different settings in order to decide if it was going to become a Spearfish player. In the end, Elkhorn narrowed its focus to an eight-township area in southeastern Saskatchewan. It identified an area with available land that was pro spective for the application of the technology to drive strong economic returns. As an operator, Elkhorn uses the technology to focus in on a particular area and to give it a better understanding of the economics for a potential play type with the actual numbers to back it up, based on public production data. “It’s a very, very large data set,” says Galbraith. The VISAGE software gives an operator the ability to look at that data and make sense of it, sorting through it and normalizing it against a number of variables. “I typically will look at 150–200 wells, and it’s [in] a matter of less than a minute,” he says. “The efficiency of it is real time in my mind with the data sets I am running. “When you are a small company like ours, every software product has to have a direct cost benefit, which VISAGE definitely does. We run very lean on our staff so we have to make it efficient to be able to do what we need to do, and that’s what this tool does.” Because all the plays Elkhorn is involved with are technology-driven, it has benefited from being able to see what other companies have learned in drilling

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DATA M ANAGEME N T & SO F T WA R E

V I S AGE

1,400,000 1,300,000 1,200,000 1,100,000 1,000,000

Oil Rate (bbl/day)

900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0

1962

1964

1904 (1)

1966

1910 (1)

1929 (31)

1930 (45)

1946 (44)

1947 (103)

1968

1970

1911 (4)

1972

1974

1912 (1)

1931 (25)

1913 (9)

1932 (10)

1948 (231)

1933 (8)

1949 (544)

1950 (770)

1976

1978

1914 (4) 1934 (9)

1982

1984

1935 (6)

Year

1918 (1)

1936 (9)

1937 (28)

1988

1990

1920 (1) 1938 (41)

1992

1921 (1) 1939 (37)

1994

1996

1923 (4) 1940 (42)

1998

1924 (5) 1941 (57)

2000

1925 (6) 1942 (45)

2002

2004

1926 (5) 1943 (58)

2006

1927 (10) 1944 (80)

2010

1928 (16) 1945 (58)

1953 (927)

1954 (703)

1955 (1167)

1956 (1421)

1957 (968)

1958 (1230)

1959 (1067)

1960 (1128)

1961 (1081)

1962 (931)

1964 (1131)

1965 (1159)

1966 (882)

1967 (849)

1968 (968)

1969 (827)

1970 (730)

1971 (826)

1972 (1157)

1973 (1318)

1974 (1515)

1975 (2334)

1976 (3663)

1977 (4006)

1978 (3503)

1979 (3327)

1981 (4712)

1982 (4693)

1983 (4344)

1984 (4794)

1985 (5256)

1986 (5780)

1987 (3560)

1988 (4110)

1989 (3120)

1990 (3042)

1991 (3246)

1992 (3092)

1993 (5985)

1994 (7293)

1995 (6567)

1996 (8100)

1997 (10446)

1998 (7955)

1999 (8989)

2000 (12720)

2001 (12867)

2002 (11356)

2003 (15452)

2004 (18568)

2005 (19583)

2006 (20419)

2007 (16298)

2008 (13409)

2009 (8159)

2010 (8158)

2011 (5110)

their wells. “It definitely gets you up that [technology] curve quicker,” says Galbraith. Percentile (cumulative probability) distributions provided a comparison of various completions attempt ed on the target reservoirs, leading to the conclusion that if single-leg horizontal wells could be fracture stimulated, they could yield the same production po tential as multi-leg horizontal wells. The software’s ability to generate representative type curves (rate versus time) that can be easily up dated has allowed the company more time to actually analyze the data, he says. The results are shared within the multidisciplinary engineering, geology and geo physics team in order to “truth” the technical models. Another VISAGE innovation is a method of combin ing cumulative probability distributions with type curves to provide a visual tool to communicate the variability in the production rates that make up type curves. VISAGE, which was formed by a group of former Schlumberger Canada Ltd. employees, went commer cial seven years ago, says president Bertrand Groulx. Initially, it focused on production operations. More recently, VISAGE has incorporated into its software the mechanisms that will enable operators to

240

80,000

Normalized Production Type Curve (HZ Wells Since 2005)

P90 Rate = 212 bbl/day

220 200

2,000

Cumulative Oil Produced (bbl/well) For example after 3 years the average total production is 44,611 bbl. At an $80 netback/bbl the total net operating income would be $3.6 million

180 160

48,000

Mean Rate = 109 bbl/day

120

Producing Well Count represents the number of wells used to calculate the type curve. For example, 1,018 wells have produced for 2 years or less (about half of the HZ wells)

P50 Rate = 98 bbl/day

100

32,000

80 60 40

1,500

1,000

16,000

500

P10 Rate = 19 bbl/day

20 0

Producing Well Count 60

Oil (bbl/well)

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Months

CD Avg Oil (bbl/day/well)

P50

P90

P10

Producing Well Count

140

64,000

Cumulative Oil Volume (bbl)

Oil Rate (bbl/day)

2008

1963 (1114)

PREDICTIVE ANALYTICS VISAGE software demonstrates statistical methods to quantify the range of possible outcomes.

1952 (973)

1986

1917 (1)

1980 (4218)

VISUAL INTERPRETATION Alberta oil production by on-stream year as depicted by VISAGE software.

1951 (785)

1980

1915 (1)

easily and rapidly navigate massive amounts of public information. Exploration and exploitation companies are interested in adding the software as another tool in the exploration process, he says. It can help them find the hot wells, who is drilling them and what technolo gies they are using. Groulx says it would take him less than two min utes, starting from scratch, to bring up all the data for a type curve for the northeastern B.C. Montney forma tion, based on data from 2,000 Montney wells. “You are not actually just analyzing data, you are exploring it, because once I get those Montney wells up, I can group by company and actually see a type curve by company, and see which is the better com pany, and that takes literally two seconds,” he says. “I can group by drilling contractor and who has drilled the most wells, who has got the best record, and I can look at horizontal length [and] azimuth direction of my wells.” Because of its speed, the tool allows engineers the time to do what they are actually being paid to do: ana lyze and explore data. “The frustration that I hear from engineers is that they spend the bulk of their time hunting and gathering data—grunt work—and very little time actually doing stuff with it,” says Groulx. He says his company chose a licensing model that would allow it to grow the company while making it palatable and low-risk for clients. “Because we are user-based, we are a rounding error in the grand scheme of things if you want to try out one licence. But if we prove to be very effective, there are some companies where we have [several] users from operators all the way up to the [chief financial officer].” Elkhorn has a floating licence so that anyone can use the product, but only one person at a time. “They make it so that the product is affordable for small enti ties such as ourselves,” says Galbraith. And because the software continues to fund VISAGE’s development, “it is constantly getting better, and our ‘to-do’ list from clients on how to make the tool more powerful never gets shorter,” says Groulx. “It will always be evolving.” Elsie Ross

graphs: VISAGE information solutions; data by geoLOGIC Data Center

Alberta Oil Production by On Stream Year 1,500,000

GUILDONE

ANALOGS LEFT BEHIND AGAIN

images: GUILDONE INC.

Fully digital measurement schematic software combines diagrams with databases A new software-modelling tool for tracking how fluids are transported from the well to downstream facilities allows entire companies to update operational changes, and give more accurate reports of production inputs and outputs. Ultimately, it allows them to become more compli ant with Alberta Energy Resources Conservation Board (ERCB) regulations on metering and measurement. GuildOne Inc.’s Facility Studio has a number of applications, but number one, says James Graham, GuildOne partner, is to meet the ERCB’s updated Directive 17 and the constraints of its Enhanced Production Accounting Procedures. Measurement schematic requirements are already required in British Columbia, Graham adds. In 2009, the ERCB came to industry and funda mentally said, “Before, we’ve been more focused on flaring, safety and other things. But this year’s theme is production accounting and measurement because, as an industry, you guys are about a C-minus, maybe a D. Really, you’re not that solid,” says Graham’s partner, Rhon Rose. “There was a long period of consultation with in dustry and the one thing that came out of that, in terms of a true regulatory change, was that industry will be compelled to do measurement schematics across the board. Starting in 2011, every president—once a year— has to say what the state of their company’s measure ment schematics are,” says Rose. Producers are now required to file their schemat ics on a far more regular basis, agrees Graham. “So if I make a change in the field, within 30 days I have to report that change to the government. So the concept of constantly having a flow of paper through to the draftsman and then that paper not being as shareable as an online interactive model, there’s a tremendous amount of time-saving involved in the maintenance of these schematics. That’s probably the single biggest benefit coming out of the box.” A preliminary unveiling was held at the Canadian School of Hydrocarbon Measurement in Grande Prairie, Alta., last October and a commercial launch was held at that school’s Calgary campus in March. In the pilot stage for about a year and recently made available commercially, nine client companies are using the software, he says. They have signed agreements that contain confidentiality clauses, says Graham, so none of them were available for interviews. A measurement schematic is a visual representa tion of how the fluids flow from the wellhead to the point of sale. Imagine a mixture of gas wells and oil

DATA M A N AG E M E N T & SO F T WARE wells in a field, says Rose. Some of the fluids will flow through compressors and some of them might go directly to a tank. There will be different types of measurement batteries. That information is put into measurement schematics so the production accoun tant can track where fuel is being used, who uses the fuel, where gas is being flared and where things are delivered, he says. “It is the one place where the production account ing group, field operators, engineers and measure ment specialists all get together and agree with what is out in the field and how it is being treated. If the op erators and the measurement people are saying there is an artificial lift on a gas well with a pumpjack, with a 50-horsepower engine, the production accountant can say, ‘It should be using this kind of fuel. It should be on artificial lift hours.’ So I get a royalty break for doing that.”

Until Facility Studio came along, measurement schematics were produced on paper. Facility Studio constructs fully digital diagrams filed with metadata— structured data that describes the characteristics of a resource—that give far more detail on the wells, com pressors, flares and metres found in the field. Facility Studio’s measurement schematics are automatically designed and partially built from ERCB public data sources and the Alberta/Saskatchewan Petroleum Registry. Therefore, none of this data needs to be manually gathered or updated by its clients. The remaining information required for building the measurement schematic is entered through ques tions and answers using pull-down menus. Questionand-answer prompts are structured according to ERCB requirements. Automated reports notify clients of problem areas such as if a specific measurement schematic violates ERCB regulations. The problem with the traditional, paper measure ment schematics is that they are extremely labourintensive to update and get value from, says Rose, who once ran BP Canada’s gas measurement and produc tion accounting optimization efforts.

DIGITAL DETAIL GuildOne’s Facility Studio produces fully digital diagrams filed with metadata that provides far more detail on field facilities than was available on measurement schematics produced on paper.

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DATA M ANAGEME N T & SO F T WA R E

G U I L D O NE

“ There was a long period of consultation with industry and the one thing that came out of that, in terms of a true regulatory change, was that industry will be compelled to do measurement schematics across the board.” — Rhon Rose, partner, GuildOne Inc.

“To give you an example, I worked for a company that changed its name,” he says. “We had approximate ly 1,500 wells in the province of Alberta. We had to go into our AutoCad drawings, highlight each instance of the name appearing and either cut, paste or retype. But we had to do it 1,500 times. “With Facility Studio you simply go in, make the search command, do the ‘find and replace,’ and it’s done.” But on paper, if a production accountant generates a new well and adds it into the ERCB registry, it doesn’t automatically feed right into a measurement schematic. Then, two different parts of the organization have com pletely different information, he says. Fundamentally, paper and PDF drawings of meas urement systems can’t be interrogated without actually

See the heart of the oilsands like you’ve never seen it before!

eyeballing them, he continues. “You literally have to look at every picture and count. If you want to count your compressors over 100 horsepower, you have to go in and start turning pages and keep a little score.” Another advantage over paper or PDF, says Rose, is that, because it’s flexible enough to add individual at tributes, a single master data set of what the field looks like can be built for the whole company. For example, the ERCB requires that companies report major pieces of equipment that use fuel, such as dehydrators. From a measurement schematic point of view, it doesn’t matter whether a dehydrator uses a dry-bed desiccant or a glycol type of system, he says. “However, from your environmental department, they want to know which ones are glycol because of the benzene emission–reporting requirements. To make it useful for more people, you add that one word. You’ve now got a unified list that can work for the environmental group to do their annual testing.” Facility Studio’s pricing depends on the size of the company and number of facilities represented. The software is built upon GuildOne’s Synergy platform (New Technology Magazine, November 2002, “Eliminating IT Roadblocks”) whose system is geared toward master data management and business intel ligence in the oil and gas sector. GuildOne, a software and services provider, has been around since 2001, having evolved from a software consultancy boutique that started in 1995. Lynda Harrison

“Industry Leading Quality & Service Since 1987” Specialists in internal & external coating applications

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HEALTH, SAFETY & ENVIRONMENT

PHOTO: Joey Podlubny

s the need for social licence to operate in the oil and gas industry seemingly becomes more stringent every year, new opportunities are opened up for companies with new ways to create efficiencies and trim emissions, enhance worker safety and shrink the overall environmental footprint in which companies operate. With such pressures likely to intensify, health, safety and environment is a segment of the industry likely to only increase in prominence as the industry grows in future years.

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A GREEN THUMB FOR EMISSIONS Leak detectives turn fugitive emissions management into a source of growing revenue

METHANE TRACKER GreenPath personnel aim a heat-sensitive, infrared camera at field facilities near Dawson Creek, B.C.

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G R E E N PATH

What’s increasingly a liability for oil and gas producers is fast becoming an asset to a small group of companies serving the industry. Although of less concern to the industry in its early years, fugitive emis sions are now on the radar of most producers. Described as the unintended, often undetected release of gas or vapours, fugitive emissions can come from a range of sources, including natural gas wells, pipelines, compressors, gas-processing plants and other field facilities where gas is produced or handled. At their most basic, fugitive emissions are gas leaks that are typically invisible to the naked eye, but show up clearly on special infrared (IR) cameras as black plumes that look much like rising smoke. For those using the cameras, the smoke means escaping gas and, once located, the leaks are often easy to fix, sometimes as little as tightening a valve, nut or screw. For producers, leaks that go undetected can create a host of health and safety hazards. Employees work ing in an enclosed facility are vulnerable, while the threat of fire is another risk. Fugitive emissions also raise red flags when it comes to greenhouse gas (GHG) emissions. Methane, a known GHG, is the most com mon source of fugitive emissions. Although a liability for producers, fugitive emis sions are bread and butter for companies like Calgarybased GreenPath Energy Ltd., which specializes in emissions management, also described as detecting, monitoring and remediating gas leaks for oil and gas producers and other companies. While there’s debate within the industry about how much gas is lost through fugitive emissions each year, there’s no question that, industry-wide, the amount is substantial and translates to lost revenue for producers. A related issue is just how much revenue producers are losing each year through such leaks. “It’s a hard number to peg,” says Joshua Anhalt, GreenPath’s president. “But it’s very high.” For one client that operates about 200 field facilities across western Canada, he estimates the financial loss due to fugitive emissions is roughly $1.4 million per year. If that figure is any guide, total losses from western Canada’s roughly 30,000 field facilities would amount to far more. While not the main factor for most companies, the economics of leak repair and remediation are never theless considered, especially if the leak concerned poses no threat to health, safety or the environment. In these cases, low gas prices or the high cost of a plant shutdown could persuade a company to delay repairs. Yet, the benefits of remediation can be substantial, Anhalt says, since often only a few leaks will account for a disproportionate share of a company’s fugitive emissions. Indeed, he quotes a rule of thumb that roughly 10 per cent of the leaks often account for 90 per cent of total fugitive emissions. As producers become more aware of GHG emis sions, fugitive leaks will be more of a concern, since the trend in Canada is toward stiffer regulation. When it comes to worker health, safety and the environment, producers and midstream firms have a strong incentive to track emissions. If another incentive is needed, the Energy Resources Conservation Board’s Directive 60

PHOTOs: GREENPATH ENERGY LTD.

HEALTH, SAFETY & E N V I R O N M E N T

PHOTOs: GREENPATH ENERGY LTD.

GREENPATH

requires producers and field facility operators to intro duce fugitive emissions management programs. At the field level, gas leaks vary in size and rate, although Directive 60 offers few firm thresholds that conclusively define when a leak must be repaired. Instead, it refers producers to another guide, the Best Management Practice (BMP) on Fugitive Emissions Management adopted by the Canadian Association of Petroleum Producers (CAPP). As well as Directive 60, producers can check the BMP to answer such questions as whether or not a leak represents an immediate hazard to worker health, safety or the environment. With that in mind, the CAPP guide provides a decision tree to guide decision making. Because it’s goal-oriented rather than prescrip tive, the BMP effectively puts decision making in the company’s, rather than the regulator’s, hands. At the same time, since the BMP’s focus is partly to determine whether or not a hazard exists in certain conditions, the approach is often subjective and leaves awide scope for interpretation, which Anhalt acknowledges. “[The BMP] is basically a recommendation,” he says. “They set the bumper limit pretty wide and left lots of room for interpretation within the best manage ment practices.” Nevertheless, the BMP will likely guide decision making for most or all of Alberta’s producers for the foreseeable future, at least when it comes to fugitive emissions. Some companies handle emissions in-house, while others retain specialists. OMERS Energy Services LP, for example, relies on GreenPath to detect and monitor its fugitive emissions. If it can’t remediate a problem, GreenPath makes recommendations on how it may be done. According to Christine McCardle, OMERS’ man ager of health, safety and environment, GreenPath regularly surveys the company’s field facilities, includ ing wells, pipelines, compressors and plants. On each survey, the facility is scanned and photographed by a GreenPath crew member using an IR video camera. A facility might be checked once yearly, or every three or five years, while others are checked quarterly or semi-annually, depending on the gas volumes han dled. As a rule of thumb, older facilities are surveyed more often, for obvious reasons. “The surveys themselves are not expensive,” says McCardle. “Even at low gas prices, we’ve at least been able to break even, if not come out ahead, with just simple fixes.” The latter she describes as tightening a

H E A LT H , S A F E T Y & E N V I R O N M ENT

nut or bolt, or replacing a small part. “I definitely see a value in it.” On the other hand, economics can influence the decision. “If they identify a leak that’s not a simple fix—say you have to replace a valve—that’s when the economics become tight with low gas [prices],” she adds. In that case, the company considers how soon the repair would pay for itself. In some cases, if pay back is expected to be timely, the decision to repair is straightforward. In others, repairs might have to wait, say, until the facility’s next maintenance shutdown. To show how sensitive an infrared camera can be, McCardle recalls the time GreenPath surveyed OMERS’ facilities at a remote Alberta wellsite. When complete, the survey showed no leaks from the facilities, but one coming from the ground nearby. As it turned out, one of OMERS’ fuel gas pipelines—not among the facilities being surveyed—had sprung a leak. In the past year, McCardle estimates GreenPath has surveyed 70 of OMERS’ field facilities in western Canada as part of an ongoing fugitive emissions pro gram. In her view, the service has been cost-effective, notwithstanding recent low gas prices. Back at GreenPath, Joshua Anhalt says the com pany is broadening its focus beyond just detecting and tracking fugitive emissions. Now, it’s also remediating them. “We are trying to solve the problem of actually eliminating emission sources for producers in a profit able fashion, especially in an environment with gas prices so low,” he says. As well, the plentiful data GreenPath staff generate in surveying a company’s field facilities can often be turned to other uses, such as monitoring and control ling CO2 emissions, he says. That work will continue, along with the company’s ongoing emissions detection and monitoring. James Mahony

HEAT SEEKER In the black and white IR photo, the dark, shaded area below the cylinder represents leaking methane gas. In the colour photo, the blue-shaded area shows leaking methane. Colour photos depict warmer areas as orange or red, while cooler areas are green and blue.

“ We are trying to solve the problem of actually eliminating emission sources for producers in a profitable fashion, especially in an environment with gas prices so low.” — Joshua Anhalt, president, GreenPath Energy Ltd.

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SEAL OF APPROVAL Wells tested for better sealing with fusible metal alloy WELL CONTAINED Sample cross-section of a Seal Well casing plug set within a steel tube. The electrical heater tool melts the alloy and after the alloy cools and solidifies, the tool is pulled out (central cylindrical space within the plug body). The steel mandrel (red) surrounded by solidified bismuth-tin alloy, remains in situ.

LEAK FIXER Seal Well uses a bismuth-tin eutectic alloy, which expands by four per cent when it goes from a liquid to a solid, to permanently plug abandoned wells.

When oil and gas companies decide they have pulled as much hydrocarbon as economically possible from their wells, they are said to abandon them, and are required to follow strict rules for doing so. Tradi tionally, that’s been to cement them, but that may not be enough to prevent gas from seeping out. Leaking wells can emit noxious and toxic chemi cals, and in worst-case scenarios lead to incidents such as BP plc’s Gulf of Mexico Macondo well blowout in 2010. Natural gas flowed unnoticed into the oil well be ing drilled, causing an explosion, 11 fatalities and the worst offshore oil spill in U.S. history. Cement is an inexpensive and universally available material for plugging purposes, but it has certain inherent properties that make it a less-than-ideal material to seal against gas flow, says a chemical engineer who believes he’s come up with something better to seal wells. The grade of cement usually employed shrinks as it sets, compromising its ability to form an effective seal against a solid surface such as a steel casing wall, says Homer Spencer, president of Calgary-based Seal Well Inc. He says cement requires many hours or even days to set completely, and during the setting process

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S E A L W E LL

it passes through a weak transitional phase during which pressure is not contained and flow channels can form. Cement is attacked by naturally occurring, or deliberately sequestered, acid gases such as CO2 and hydrogen sulphide. Furthermore, cement quality can degrade over time and is porous and permeable to a small, but sometimes important, extent, says Spencer. He says estimates vary on the reliability of cement plugs; one study quotes a 30 per cent failure rate. “We’re using a bismuth-tin alloy. It’s fusible, which means it melts at a low temperature [137 degrees Celsius] to seal oil and gas wells for various purposes, one of which is to abandon them so they don’t leak, which is a big problem in Alberta,” says Spencer. Another potential use is for wells used in the car bon capture and sequestration process, he adds. Seal Well has been designing, constructing, patenting, and field-testing tools and procedures for using a bismuth-tin eutectic alloy to plug Alberta wells for more than four years. Spencer melts the alloy in situ with an electric heater—similar to what is used to light charcoal barbecues—deployed on a standard, single-conductor, wireline electrical cable. He then squeezes it through perforations or into leaking areas of production casing with the application of external hydraulic or gas pres sure. “Then we turn the power off and let it freeze. It forms a plug and that’s it,” says Spencer. The sealing medium is a corrosion-resistant, bismuth-based fusible metal that’s non-toxic and expands by four per cent when it goes from a liquid to a solid. “It forms a very tight, impermeable seal. That’s the whole reason for doing what we’re doing; plus the corrosion properties are so good for our purposes.” A real-time data capture and retrieval system has been developed and used to monitor downhole tem perature and pressure during the process and can be expanded to add other real-time communication tasks. The technology has thus far been tested on two wells, both sweet gas. Both tests were very success ful, according to Spencer. More tests were expected soon—the company has a busy schedule of beta test ing in the field planned over the summer. It will also work on sour gas wells, “but you don’t want to test that first,” he says. Spencer says another promising application for molten bismuth alloy is for water production control.

images: SEAL WELL INC.

HEALTH, SAFETY & E N V I R O N M E N T

PHOTO: SEAL WELL INC.

SEAL WELL The key is to do it while leaving the entire casing di ameter open at the end of the procedure, he says, and Seal Well has a patent in the United States covering such a procedure. He says Seal Well’s plugs within casing will seal for as long as the casing is competent and outside casing will last more than 10,000 years. They are no more expensive than the least-expensive well abandonment procedures and are much less expensive if the conventional procedure requires an on-site rig, says Spencer. It’s also much faster, he adds. The technology has limitations for thermal wells because they won’t freeze. However, another sub stance, such as pure bismuth which melts at 271.5 degrees Celsius, could be used on those, he says. Bismuth is a co-product from smelting and min ing ores such as zinc and lead. Most of it is mined in China, Mexico, Bolivia and Poland. As so often happens with discoveries, Spencer stumbled on the idea while working on something else entirely in a discussion with metallurgists about the properties of various metals. “It was pointed out to me that there are not very many materials in nature that expand like water does when it goes from water to ice. There are only four: water, bismuth, antimony and gallium.” The latter two are toxic, plus gallium is rare, expensive and has a low melting point, he says. Seal Well has received support from Encana Corporation and Cenovus Energy Inc. through their environmental opportunity funds, which sponsor companies with promising new technologies to help in their development and reduce the companies’ impact on the environment. In addition to supplying an undisclosed amount of funding, the oil and gas companies are supplying 10 wells for testing and in return, they “get a piece of the action,” says Spencer, declining to go into detail. Cenovus has 15,000 shallow gas wells at Suffield, Alta., which are pretty handy, he says. Industry has a lot of wells that need to be aban doned, says Rudy Sundermann, technical adviser, energy management for Cenovus in its environmental technology investments group. His group is looking for ways of eliminating gas venting. Cenovus’ record for non-leaking wells has been good but there have been some wells that are “really, really difficult to stop and that’s where we need better technology and we were hoping Homer’s tech nology would be the one,” says Sundermann. That technology is currently having “teething prob lems” in the field, related to understanding the condi tions of the casing and tubing downhole, plus making sure conditions are right for the alloy to melt, he says. But the technique does work where the alloy is placed, he adds. As with conventional cement packing, there may be leaks in the casing above it that have to be found and sealed, but he believes Seal Well will overcome whatever difficulties arise. “There are things they have to work out as routine procedure but I’m confident that we’ll get it nailed down within the next three or four wells,” says Sundermann. In January, Alberta’s Climate Change and Emissions Management Corporation approved the funding of

H E A LT H , S A F E T Y & E N V I R O N M ENT

“ We’re using a bismuth-tin alloy. It’s fusible, which means it melts at a low temperature [137 degrees Celsius] to seal oil and gas wells for various purposes, one of which is to abandon them so they don’t leak, which is a big problem in Alberta.” — Homer Spencer, president, Seal Well Inc.

the company’s research and development project proposal, Permanent Sealing of GHG Emitting Wells. The project is to commence this fall once the necessary industry-matching funds are in place. Lynda Harrison

SHUT-IN Run on standard wireline, a Seal Well casing plug is inserted into a Cenovus well near Suffield, Alta.

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HEALTH, SAFETY & E N V I R O N M E N T

Raw Gas Dehydrator Vented CO2, SO2 and H2O Amine Contactor

Inlet Separator

9 MW Back to Plant or to Power Grid Steam

Sales Gas

Air Generator

Steam

Steam Turbine

Amine Regenerator

Fuel Gas Gas Turbine

Low-Pressure Compressor

Reaction Furnace

CO2/H2S to Injection

Boiler Feed Water Heat Recovery Steam Generator

Filter

CO2/H2S 7 psi

Waste Heat Boiler

CO2 H2S to Injection High-Pressure Compressor

Converter Condenser Sulphur

120 million cubic feet per day Sour CO2 1,800 psi

Fuel Gas Thermal Oxidizer

Tackling Climate Change Spectra’s CCS project has potential to be among the largest in the world GHG MITIGATION Spectra’s feasibility concept to complete the sour CO2 capture and storage project.

Governments around the globe often beat the drum of conservation, energy efficiency or the de velopment of alternative energy as important cogs in the effort to lower greenhouse gas (GHG) emissions and reduce the impacts of climate change. And while efficiency and conservation will no doubt help, they are effectively low-hanging fruit and represent a fraction of the solution. The devel opment of alternative energy on a massive and costeffective scale is likely still years, if not decades, away. More bold—and costly—moves will likely be needed today to significantly wrestle GHG emissions as the world’s population rises and people in developing nations use an increasing amount of energy to support their newfound and growing affluence. Carbon capture and storage (CCS) has been touted as a major answer to the complex ques tion of how to lower emissions, but it will require work, time and large investments. One large-scale project is being planned in British Columbia where Houston-based Spectra Energy Corp. (formerly Westcoast Energy Inc.) is helping to develop a CCS project that has the potential to be among the larg est carbon sequestration deployments in the world. The company says there’s the potential to se quester up to 2.2 million tonnes of CO2 annually, or

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the equivalent of removing more than 500,000 cars from the roads each year. The project could be at the forefront of setting standards from both a technical and operational perspective for the CCS industry in British Columbia, Canada and abroad, according to Alan Laundry, Spectra’s director for the Fort Nelson CCS project. “We expect that the project will be closely measured for its effectiveness to economically sequester large volumes of sour CO2, and we expect that the project will generate international interest from other organizations from around the world inter ested in the development of large-scale sour CO2 sequestration,” he says. The project was first announced in May 2008 with the provincial government in British Columbia providing a $3.4-million grant to help fund an initial feasibility phase to determine whether deep under ground saline reservoirs and associated infrastruc ture in the area were appropriate for CCS. The project is an international collaboration that includes Spectra, the province, Natural Resources Canada, the Plains CO2 Reduction (PCOR) Partner ship and the U.S. Department of Energy. It’s antici pated to be one of the largest carbon-sequestration projects in the world. Laundry explains that the project will be de signed to capture the sour CO2 (CO2 that contains a small percentage of hydrogen sulphide) that currently goes to the sulphur extraction facilities at Spectra’s Fort Nelson Gas Plant, which is the largest sour gas processing facility in North America. The sour CO2 will then be compressed to increase its pressure from approximately seven to 1,800 pounds per square inch. During compression, the sour CO2 will also be dehydrated. Once the sour CO2 is compressed and dried, it will be sent roughly 20 kilometres west to an injection site. The sour CO2 will then be injected roughly 2.5 kilometres below the ground surface into a brine-filled geological formation for permanent storage. “The Fort Nelson CCS project would build upon our experience in CCS applications in western Canada,” Laundry says, noting that the company has been recognized by the UN Intergovernmental Panel on Climate Change as a world leader in CCS applications. “We currently have eight facilities in western Canada which are equipped with technology to cap ture and inject CO2,” he says. “Together, they remove about 190,000 tonnes of greenhouse gases from the atmosphere each year. “Our natural gas–processing facilities are al ready designed to process, or separate, the various components of raw natural gas when it comes into our plants. This means that while other industries considering CCS may be examining how to capture and how to store it, we in the natural gas–processing industry already have the technology around carbon capture in place,” says Laundry. “A number of these monitoring technologies have been employed at other CO2 injection sites at various locations around the world; however, each

Image: Spectra Energy Corp.

S P E C T RA

H E A LT H , S A F E T Y & E N V I R O N M ENT

SPECTRA • HIFI reservoir is unique, so any technology selected will have to be effective for the reservoir type and the northern location of our injection site.” Technologies that are chosen for evaluation and monitoring work at Fort Nelson will have to be employed in a situation-specific manner because of the northern location, and the rock and ground conditions in the Fort Nelson area. “Choosing the best available technology that is most suitable for the northern environment, while minimizing the project’s environmental footprint, is something the project team is currently addressing,” he says. “The project is progressing well and our evaluation of the reservoir leads us to believe that the reservoir has the attributes required for the safe, permanent disposal of large volumes of sour CO2.” From the province’s perspective, CCS is one of a portfolio of GHG measures to mitigate emissions from the oil and gas industry, says Jake Jacobs, a spokesman with the B.C. Ministry of Energy and Mines. The province, he notes, has been an advocate of CCS development since the 2007 energy plan and has legislated GHG reduction targets. “As part of B.C.’s climate-action plan, industry has been working with government through the natural gas climate-action working group to develop a GHG management plan for northeastern British Columbia, which includes CCS,” Jacobs adds. In British Columbia, CCS will complement other reduction strategies such as conservation, alterna tive energy development and more efficient usage.

“Conservation is important but will not achieve deep emissions cuts,” Jacobs says. “CCS can provide significant cuts in CO2 emissions which are neces sary to meet GHG reduction targets and maintain leading standards for environmentally responsible natural gas activities.” Richard Macedo

AMPLIFIED LEAK DETECTION

Photo: Spectra Energy Corp.

Fibre optic tool finds even the smallest liquid leaks downhole

For oil and gas producers, the optics of finding downhole leaks just got a little brighter. In 2011, a Calgary-based company rolled out a tool for finding natural gas leaks in wellbores. Since then, industry uptake has accelerated, and the team has broadened and refined its fibre optics–based tools. Today, engineers at Hifi Engineering Inc. are also applying the same fibre optics tools to the task of finding leaks of liquid in wellbores, says Hifi president John Hull. Ever since Alberta’s Energy Resources Conservation Board (ERCB) turned its attention to leaks, the industry has taken notice. Whether due to casing vent flow or migration, natural gas leaks are a common concern for producers, not least because the ERCB demands they be monitored and, in some cases, reported. According to Hull, finding downhole leaks of liquids—as opposed to gas—is usually not a problem, especially at higher volumes, since these are usually easier to detect with traditional tools,

SOUR GAS EXPERTISE Spectra’s sour gas processing facility near Fort Nelson, B.C., is the largest in North America.

such as microphones. But as flow rates decline, the leak becomes harder to detect and, at very low flow rates, might not be detected at all using conven tional tools. That’s a gap Hifi plans to fill with LeakSonar. On the market for over a year now, the technology puts specially treated fibre optic line downhole, where it acts as an acoustic sensor and a transmitter of data. In effect, the fibre optic line becomes an optical micro phone and a conduit to transmit data up-hole. Because a fibre optic line is the transmission line, much more data can be carried than would be possible with wires or cables. While many fibre optic lines have limited sensitiv ity, Hifi’s technology converts the line into a supersensitive sensor capable of detecting very faint sounds that other sensory tools would miss, says Hull, an engineer with fibre optics expertise. Those sounds might include background noise, but they might also include the sounds of low-flow liquid leaks, including water and hydrocarbons. LeakSonar represents an order-of-magnitude dif ference from traditional technology, especially when it comes to acoustic sensitivity, Hull says. Indeed, he compares Hifi’s leak-detecting technology to the high-fidelity, digital music recordings found on compact discs. “Think of it as if you’re trying to identify a song, and I give you the best CD out there with headphones,

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HEALTH, SAFETY & E N V I R O N M E N T

HIGH SENSITIVITY Hifi’s LeakSonar tool is able to detect and characterize extremely low-rate leaks with high definition and clarity. Standard sonic and ultrasonic magnitude curves up to 20 kilohertz are presented on every log.

Typically, Hifi’s LeakSonar tool is only used after a well is completed or when it’s producing. While testing is being done, production is stopped, and production tubing is usually pulled from the well to allow the wireline operator to place the tool into the well. The real breakthrough achieved by LeakSonar’s software may be in recognizing the acoustic signa ture of liquid leaks, including very low-volume leaks too faint to be detected by other tools. Hull describes LeakSonar as “many times more sensitive” than conventional acoustic microphones. In processing the data generated, Hifi’s software uses passive sonar technology, he says. Finding applications for LeakSonar might not take long, and a few major Canadian producers are using the technology. While shallow gas wells are a common application, there’s also a use for LeakSonar in testing steam assisted gravity drainage wells, espe cially those with very low water flow, Hull says. Reading the logs resulting from a LeakSonar sur vey is not hard. Hull points out that the area shaded in red (see photo) represents a leak of liquid. In the final analysis, the logs also facilitate well remedia tion. When a leak, whether gas or liquid, is detected, the operator can often repair it by applying a cement squeeze to fill the cracks. Later, when the cement has set, the operator can run another LeakSonar log to ensure that all leaks have been filled. If not, another cement squeeze can be done to fill any remaining holes. Since Hifi rolled out LeakSonar, it has developed another tool to characterize leaks. VentMeter is a natural gas flow metre able to remotely monitor pressure buildup and flow on leaking gas wells. Installed on a well, it can detect gas from casing vent flow with very low or sporadic flow patterns. VentMeter, which can be used on shut-in or abandoned wells, collects and reports data, and can be remotely controlled. Designed to operate as a stand-alone unit, it can be installed on a well for days, weeks or months at a time, monitoring a well continuously. Hull notes that some gas wells won’t leak for long periods, but then purge themselves suddenly after accumulating gas downhole. VentMeter is designed to tackle just such wells. As for its connection to LeakSonar, Hull says the two technologies “are like peas and carrots. They’re designed to work together.” James Mahony

Images: HiFi ENgineerinG Inc.

LEAK FINDER Hifi’s LeakSonar fibre optic acoustic sensor array is specifically designed to detect and locate fluid migration in wellbores, even through multiple strings of casing.

versus an old, scratchy record. If you listen to the CD, you can hear the little things, like cymbal taps, whereas with a scratchy record, you’re not going to hear the background sounds, and that’s where the clues are,” he says. “Anybody can listen to the loud sounds in a well, but it’s finding the really hard-tofind ‘snaps’ or fluid flow, that’s important. “The clues lie in [sounds] we can’t really hear with our ears,” he adds. “But if you look at the fibre optic data, you’ll notice there’s a lot there that we’re missing.” While Hull won’t say exactly how Hifi treats fibre optic line to make it sound-sensitive, he acknowledg es that LeakSonar technology alters the line and uses its own processing software to interpret the logs when the downhole survey is made. Like other log ging tools, LeakSonar can be deployed on wireline, starts at the bottom of the well and is pulled upward slowly, generating data as it goes. While logging is ongoing, a section of fibre optic line about 10 metres long is exposed to the wellbore, and picks up sounds there, as well as from outside the casing. For example, the sounds of liquid flowing between the production casing and surface casing would be detected.

H IFI

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Technology is revolutionizing Canada’s oil & gas industry

Help us find the 2012 Technology Stars

2012

New Technology Magazine editor Maurice Smith is scouring the industry to find the best of the best; he could be looking for you! If you know of a ground-breaking new product that is being used by industry that deserves recognition, let us know. Visit newtechnologystars.com for information or email msmith@junewarren-nickles.com with your suggestion. Technology Stars categories include: ★ Best Exploration Technology ★ Best Drilling Technology ★ Best Production Technology ★ Best Health, Safety, Environment Technology

Submissions close September 1, 2012. To be eligible, a company must operate in Canada with its product or service deployed here. Visit newtechnologystars.com for more information.

newtechnologystars.com

Technological advances through the years:

1890s

wood drilling mast

1910s

rotary table

1920s

blowout preventer

1930s

hard hats

1940s

directional drilling

1950s

multi-lateral wells

1960s

downhole drilling motors

1970s

mud-pulse telemetry

1980s

horizontal drilling

1990s

coiled tubing rigs

2000s

casing drilling

DIRECTORY DRILLING 3D Drilling Tools Inc. 8135 Wagner Rd. Edmonton, AB T6E 4N6 780-440-1922 www.3Ddrillingtools.ca Accudrill Inc. Bay 14, 702 - 18 Ave. Nisku, AB T9E 7V8 780-955-9337 www.accudrill.com Advance Drilling Ltd. 410, 233 West 1st. St. North Vancouver, BC V7M 1B3 604-980-5973 Aero Drilling & Consulting Ltd. Box 263 Bentley, AB T0C 0J0 403-748-3603 AKITA Drilling Ltd. 900, 311 - 6 Ave. S.W. Calgary, AB T2P 3H2 403-292-7979 www.akita-drilling.com Alta. Can. Oil Tool Int. Ltd. Box 370 Avonlea, SK S0H 0C0 306-868-2291 Beaver Drilling Ltd. 910, 500 - 4 Ave. S.W. Calgary, AB T2P 2V6 403-265-6472 www.beaverdrilling.com Beck Drilling and Environmental Services Ltd. 9919 Shepard Rd. S.E. Calgary, AB T2C 3C5 403-297-1399 www.beckdrill.com Bertram Drilling Corp. 10 Main St., Box 100 Carbon, AB T0M 0L0 403-572-3591 www.bertramdrilling.com

Boundary Equipment Co. Ltd. 10740 - 181 St. Edmonton, AB T5S 1K8 780-483-3133 www.boundaryequipment.com

Decarson Rentals 1203 - 4 St. Nisku, AB T9E 7L3 780-955-9420 www.essentialenergy.ca

Foremost Industries LP 1225 - 64 Ave. N.E. Calgary, AB T2E 8P9 403-295-5800 www.foremost.ca

Calmena Energy Services Inc. 700, 333 - 7 Ave. S.W. Calgary, AB T2P 2Z1 403-225-3879 www.calmena.com

Densak Pipe & Oilfield Trucking Service 20 Strathcona Rd. S.W. Calgary, AB T3H 1V5 403-246-5551

Garritty & Baker Drilling Inc. 5715 - 56 Ave. Edmonton, AB T6B 3G3 780-433-8786 www.garrittyandbakerdrilling.com

CanElson Drilling Inc. 700, 808 - 4 Ave. S.W. Calgary, AB T2P 3E8 403-266-3922

Drilformance ULC 201, 6051 - 47 St. Leduc, AB T9E 7A5 780-980-5881

GroundForce geoDrilling Solutions Inc. 650, 910 - 7 Ave. S.W. Calgary, AB T2P 3N8 403-804-6953 www.groundforcedrilling.com

Drilling Controls Canada Inc. 607 - 22 Ave. Nisku, AB T9E 7X7 780-955-2400

Halliburton Group Canada 1600, 645 - 7 Ave. S.W. Calgary, AB T2P 4G8 403-231-9300 www.halliburton.com

Drilling Fluids Treatment Systems Inc. (DFTS) 7530 - 114 Ave. S.E. Calgary, AB T2C 4T3 403-279-0123 www.dfts.com

Highwood Drilling (High River) Box 38, Site 3, R.R. 3 High River, AB T1V 1N3 403-938-3888

Dril-x-Fluids Inc. 800, 839 - 5 Ave. S.W. Calgary, AB T2P 3C8 403-444-1517 www.dril-x.com

HiTech Fluid Systems Ltd. 1800, 505 - 3 St. S.W. Calgary, AB T2P 3E6 403-547-2906 www.hitechfluid.com

Encore Coring & Drilling Inc. 1345 Highfield Cres. S.E. Calgary, AB T2G 5N2 403-287-0123 www.ensignenergy.com

H.M.F. Oil Co. Ltd. 408 Mississippian Dr., Box 938 Estevan, SK S4A 2A7 306-634-7688 www.hmfoil.ca

CARBIDE.CA 55 Queens Dr. Toronto, ON M9N 2H3 416-895-4769 www.carbide.ca Cathedral Energy Services Ltd. 1700, 715 - 5 Ave. S.W. Calgary, AB T2P 2X6 403-265-2560 www.cathedralenergyservices.com CCI Thermal Technologies Inc. 5918 Roper Rd. Edmonton, AB T6B 3E1 780-466-3178 www.ccithermal.com Champion Drilling Inc. Box 1090 Brooks, AB T1R 1B9 403-362-4400 www.ensignenergy.com Chinook Drilling 2550, 300 - 5 Ave. S.W. Calgary, AB T2P 3C4 403-269-2612 www.chinookdrilling.ca Classic Oilfield Service Ltd 5211 - 65 St. Lloydminster, AB T9V 2E8 780-875-3276 www.classicoil.com Columbia Oilfield Supply 9280 - 25 Ave. Edmonton, AB T6N 1E1 780-437-5110 www.precisiondrilling.com Compass Directional Services Ltd. 400, 525 - 11 Ave. S.W. Calgary, AB T2R 0C9 403-237-8799 www.compassdirectional.com ContainerWest 11660 Mitchell Rd. Richmond, BC V6V 1T7 800-561-9530 www.containerwest.com

Enerflow Industries Inc. 4800 - 27 St. S.E. Calgary, AB T2B 3M4 403-279-9696 www.enerflow.com Energy Drilling Services Inc. 8921 - 50 St. Edmonton, AB T6B 1E7 780-485-0999 www.energydrilling.ca Ensign Directional Services 14, 10672 - 46 St. S.E. Calgary, AB T2C 1G1 403-290-1570 www.ensignenergy.com

Horizon Drilling Inc. 900, 606 - 4 St. S.W. Calgary, AB T2P 1T1 403-290-0308 www.horizondrilling.ca Hyduke Drilling Solutions 2107 - 6 St. Nisku, AB T9E 7X8 780-955-0360 www.hyduke.com Hyduke Machining Solutions 2915 - 15 St. N.E. Calgary, AB T2E 7L8 403-250-5323 www.stratex-mco.com

Ensign Energy Services Inc. 1000, 400 - 5 Ave. S.W. Calgary, AB T2P 0L6 403-262-1361 www.ensignenergy.com

Impact Rock Bits Box 6448 Peace River, AB T8S 1S3 780-624-2640 www.impactrockbits.com

Excalibur Drilling Ltd. 700, 435 - 4 Ave. S.W. Calgary, AB T2P 3A8 403-269-2041 www.excaliburdrilling.com

Ironhand Drilling Inc. 405, 535 - 10 Ave. S.W. Calgary, AB T2R 0A8 403-237-6789 www.ironhanddrilling.com

Excell Specialty Ltd. 9516 - 62 Ave. Edmonton, AB T6E 0C9 780-437-2776

Jomax Drilling (1988) Ltd. 2020, 355 - 4 Ave. S.W. Calgary, AB T2P 0J1 403-265-5312 www.jomax.ca

Bico-Faster Drilling Tools Inc. 805, 505 - 6 St. S.W. Calgary, AB T2P 1X5 403-262-5595 www.bicodrilling.com

Control Drilling Service (1987) Ltd. 5921 - 87A St. Edmonton, AB T6E 5W6 780-465-6006 www.controldrillingservice.com

Big Sky Drilling Inc. Box 659 Oxbow, SK S0C 2B0 306-483-5132

Cougar Drilling Solutions 7319 - 17 St. Edmonton, AB T6P 1P1 780-440-2400 www.cougards.com

Black Diamond Energy Services 2000, 715 - 5 Ave. S.W. Calgary, AB T2P 2X6 403-206-4747 www.blackdiamondlimited.com

Cubex Limited 12126 - 44 St. S.E. Calgary, AB T2Z 4A2 403-258-1544 www.cubexltd.com

Fiberbuilt Manufacturing Inc. 3613 - 63 Ave. N.E. Calgary, AB T3J 5K1 403-274-6366 www.fiberbuilt.com

K & D Pratt Ltd. 210 John Savage Ave., Box 279 Dartmouth, NS B3B 0C9 902-468-1955 www.kdpratt.com

B-Line Directional Drilling Box 1240 Elk Point, AB T0A 1A0 780-210-2225

D & D Oilfield Rentals Corp. Box 1197 Redcliff, AB T0J 2P0 403-548-2700 www.ddoil.net

Fill Movers Inc. 300, 400 - 5 Ave. S.W. Calgary, AB T2P 0L6 877-513-7455 www.fillmovers.com

K Tec Industries (2005) Inc. Box 1060 Grande Prairie, AB T8V 4B5 780-538-1855

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D I R E C TORY Komat Drilling 328 South Railway St. S.E. Medicine Hat, AB T1A 2V4 403-580-7476 Lory Oilfield Rentals Inc. 1004 - 15 Ave. Nisku, AB T9E 7S5 780-955-2626 www.oilfieldrentals.com Lougheed Welding & Fabrication (2005) Ltd. 405 - 18 Ave. Nisku, AB T9E 7T5 780-955-3700 www.lougheedwelding.com Marquis Alliance Energy Group Inc. 1800, 800 - 6 Ave. S.W. Calgary, AB T2P 3G3 403-264-1588 www.marquisalliance.com Matco Manufacturing Ltd. Box 2, Site 2, R.R. 2 Sexsmith, AB T0H 3C0 780-568-4484 www.matcomanufacturing.com MaxxiMat Inc. 21074 - 5 St. Nisku, AB T9E 7X4 780-979-6588 www.maxximat.com McCaw’s Drilling & Blasting Ltd. 4228 - 47 Ave., Box 2250 Rocky Mountain House, AB T4T 1B6 403-845-3101 www.mccawsdrilling.com

Prinoth Ltd. 6815A - 40 St. S.E. Calgary, AB T2C 2W7 403-279-7271 www.prinoth.com

Teledrift Canada Inc. 7, 4275 - 78 Ave. S.E. Calgary, AB T2C 2Y4 403-203-0840

XI Technologies 1700, 734 - 7 Ave. S.W. Calgary, AB T2P 3P8 403-517-0111 www.xitechnologies.com

Prudential Energy Services Ltd. Box 887 Grande Prairie, AB T8V 3Y1 780-539-1444 www.prudentialenergy.ca

Tempco Drilling Company Inc. Box 5543, Stn. A Calgary, AB T2H 1X9 403-259-5533

XL Fluid Systems 1800, 800 - 6 Ave. S.W. Calgary, AB T2P 3G3 403-265-4344 www.xlfluids.com

Quintera Drilling LP Box 1408 Brooks, AB T1R 1C3 403-501-3704

Terracon Geotechnique Ltd. 800, 734 - 7 Ave. S.W. Calgary, AB T2P 3P8 403-266-1150 www.terracon.ca

Rangeland Energy Services Box 5098 High River, AB T1V 1M3 403-652-3253 www.rangelandinc.com RBI Canada 2000 Inc. 5677 Burleigh Cres. S.E. Calgary, AB T2H 1Z7 403-255-3730 www.rbi-canada.com Reliance Industrial Products Ltd. 606 - 19 Ave. Nisku, AB T9E 7W1 780-955-7115 www.relianceindustrial.com Rheotech Drilling Fluid Services Inc. 610, 700 - 4 Ave. S.W. Calgary, AB T2P 3J4 403-237-8870 www.rheotech.ca

Mi Casa Rentals Inc. 200, 435 - 4 Ave. S.W. Calgary, AB T2P 3A8 403-262-2288 www.micasa-rentals.com

Richfield Equipment Ltd. 337, 440 - 10816 Macleod Trl. S Calgary, AB T2J 5N8 403-236-0056 www.richfieldequipment.ca

Nabors Canada 2800, 500 - 4 Ave. S.W. Calgary, AB T2P 2V6 403-263-6777 www.nabors.com

R & M Energy Systems Canada 3703 - 98 St. Edmonton, AB T6E 5N2 780-465-9500 www.rmenergy.com

Newsco International Energy Services Inc. 7000 Railway St. S.E., Box 8388 Calgary, AB T2H 3A8 403-243-2331 www.newsco.ca

Rocking Horse Energy Services Inc. Box 67, Site 20, R.R. 2 Strathmore, AB T1P 1K5 403-324-4224 www.rockinghorseinc.com

Noble Drilling (Canada) Ltd. 4 Fl., 10 Fort William Pl. St. John’s, NL A1C 1K4 709-758-4400 www.noblecorp.com Norseman Inc. 14545 - 115 Ave.Edmonton, AB T5M 3B8 780-451-6828 www.norseman.ca NorthBasin Energy Services Inc. 2704, 350 - 7 Ave. S.W. Calgary, AB T2P 3N9 403-648-8600 www.northbasinenergy.com Northwell Rentals (Lloydminster) Inc. 9111 - 39 Ave. Edmonton, AB T6E 5Y2 780-437-7469 N.O.V. Downhole 2700, 144 - 4 Ave. S.W. Calgary, AB T2P 3N4 403-234-9999 www.nov.com OK Drilling Services L.P. Box 700 Red Deer, AB T4N 5G6 403-343-8860 www.okdrilling.com Parsons Oilfield Services & Supply Inc. 88 Scandia Rise N.W. Calgary, AB T3L 1V6 403-818-2005 Pason Systems Inc. 6130 - 3 St. S.E. Calgary, AB T2H 1K4 403-301-3400 www.pason.com Patterson - UTI Drilling Canada Limited 1450, 101 - 6 Ave. S.W. Calgary, AB T2P 3P4 403-269-2858 www.patdrilling.ca

Rotary Sales & Service 9516 - 62 Ave. Edmonton, AB T6E 0C9 780-434-3621 Savanna Energy Services Corp. 800, 311 - 6 Ave. S.W. Calgary, AB T2P 3H2 403-503-9990 www.savannaenergy.com Saxon Energy Services Inc. 1700, 700 - 4 Ave. S.W. Calgary, AB T2P 3J4 403-716-4150 www.saxonservices.com Sentry Pumping Units International 1150, 444 - 5 Ave. S.W. Calgary, AB T2P 2T8 403-775-7077 www.sentryinternational.net Schlumberger 525 - 3 Ave. S.W. Calgary, AB T2P 0G4 403-509-4000 www.slb.com Sicotte Drilling Tools Inc. 1101 - 77 Ave. Edmonton, AB T6P 1M8 780-440-6700 www.sicottedrillingtools.com Simmons Group Inc. 800, 906 - 12 Ave. S.W. Calgary, AB T2R 1K7 403-244-5340 www.simmonsenergy.com Singletouch Canada Inc. 1300 - 8 St. S.W. Calgary, AB T2R 1B2 403-648-3930 www.singletouch.com Smith Services 710, 396 - 11Ave. S.W. Calgary, AB T2R 0C5 403-264-6077 www.smith.com

Terracon McKay Ltd. 800, 734 - 7 Ave. S.W. Calgary, AB T2P 3P8 403-266-1150 www.terracon.ca

Production

Terroco Drilling Ltd. 4044, 39139 Hwy. 2A Red Deer County, AB T4S 2A8 403-343-6236 www.terroco.com

4-Way Equipment Rentals 8430 - 24 St. Edmonton, AB T6P 1X8 780-464-4929 www.4-way.com

Tervita Corporation 1800, 140 - 10 Ave. S.E. Calgary, AB T2G 0R1 403-233-7565 www.ccscorporation.ca

Absolute Completion Technologies 302, 600 Crowfoot Cres. N.W. Calgary, AB T3G 0B4 403-266-5027 www.absolutect.com

The Crossing Company Inc. 1807 - 8 St. Nisku, AB T9E 7S8 780-955-5051 www.thecrossingcompany.com The Motor Company 5420 - 53 Ave. S.E. Calgary, AB T2C 4R3 403-230-3055 www.themotorcompany.ca Thor Drilling Ltd. Ste. B, 2638 - 27 St. S.W. Calgary, AB T3E 2G5 403-263-5555 Total Energy Services Inc. 2550, 300 - 5 Ave. S.W. Calgary, AB T2P 3C4 403-216-3939 www.totalenergy.ca Tracer Supervision 1110, 340 - 12 Ave. S.W. Calgary, AB T2R 1L5 403-261-7097 www.barlon.ca Tracker Sales & Rentals Ltd. Box 809 Bowden, AB T0M 0K0 403-224-0000 www.trackersalesltd.com Trendon Bit Service Ltd. Box 548 Redcliff, AB T0J 2P0 403-548-7242 www.trendonbitservice.com

Access Waterwells Inc. Box 7297 Edson, AB T7E 1V5 780-723-2242 www.accesswaterwells.com Accu-Flo Meter Service Ltd. 4028 - 7 St. S.E. Calgary, AB T2G 2Y8 403-243-1425 www.accuflo.com Accurata Inc. 120 MacEwan Park Rise N.W. Calgary, AB T3K 4A1 403-295-1637 www.accurata.ca Advantage Mud Systems Ltd. 730, 777 - 8 Ave. S.W. Calgary, AB T2P 3R5 403-262-1120 www.advantagemud.com Advantage Products 273, 1919B - 4 St. S.W. Calgary, AB T2S 1W4 403-264-1647 www.advantageproductsinc.com AERO Rental Services 6525 - 67 St. Red Deer, AB T4P 1A3 403-340-0800 www.aerorentals.com A.J. Industries 600, 407 - 2 St. S.W. Calgary, AB T2P 2Y3 403-262-8900 ALCO Gas & Oil Production Equipment Ltd. 5203 - 75 St. Edmonton, AB T6E 5S5 780-465-9061 www.alcogasoil.com

Treo Drilling Services L.P. R.R. 2 Ponoka, AB T4J 1R2 403-783-5720 www.treodrilling.com

Alpha Controls & Instrumentation 6, 361 Steelcase Rd. West Markham, ON L3R 3V8 905-477-2133 www.alphacontrols.com

Trinidad Drilling Ltd. 2500, 700 - 9 Ave. S.W. Calgary, AB T2P 3V4 403-265-6525 www.trinidaddrilling.com

Alpine Mud Products 5 Fl., 700 - 2 St. S.W. Calgary, AB T2P 2W2 403-290-5300 www.miswaco.com

Tri-Service Oilfield Manufacturing Ltd. 9545 - 58 Ave. N.W. Edmonton, AB T6E 0B8 780-434-9596 www.tsm.ca Tristar Resource Management Ltd. 800, 815 - 8 Ave. S.W. Calgary, AB T2P 3P2 403-262-8595 www.tstar.ca Univar Canada Ltd. 9800 Van Horne Way Richmond, BC V6X 1W5 604-273-1441 www.univarcanada.com Varel Rock Bits Canada Inc. 9926 - 29 Ave. Edmonton, AB T6N 1A2 780-435-5706 www.varelrockbits.com

Peloton Computer Enterprises Ltd. 450, 1000 - 7 Ave. S.W. Calgary, AB T2P 5L5 403-263-2915 www.peloton.com

Southwest Distribution Ltd. 9691 - 45 Ave. N.W. Edmonton, AB T6E 5Z8 780-434-3473

Petris Canada 805, 734 - 7 Ave. S.W. Calgary, AB T2P 3P8 403-225-4954 www.petris.com

Sphere Drilling Supplies 3112 - 80 Ave. S.E. Calgary, AB T2C 1J3 403-720-9333 www.spheredrilling.com

Pinnacle Drilling Fluids Ltd. Box 20055 Calgary, AB T2P 4J2 403-233-2500 www.pinnaclefluids.com

Stoneham Drilling Inc. 1020, 850 - 2 St. S.W. Calgary, AB T2P 0R8 403-264-7777 www.stonehamdrilling.com

Precision Drilling Corporation 800, 525 - 8 Ave. S.W. Calgary, AB T2P 1G1 403-716-4500 www.precisiondrilling.com

Tall Pine Drilling Ltd. Box 700 Bentley, AB T0C 0J0 403-748-2955 www.tallpinedrilling.com

Wenzel Downhole Tools Ltd. 1000, 717 - 7 Ave. S.W. Calgary, AB T2P 0Z3 403-262-3050 www.downhole.com

Predator Drilling Inc. 92 Ammeter Close Red Deer, AB T4R 2Y5 403-896-9299

Technicoil Corporation, Drilling Division 1100, 509 - 2 St. S.W. Calgary, AB T2P 0C1 403-509-0700 www.technicoilcorp.com

Westquip Diesel Sales (Alta.) Ltd. 208 Walker Cres. Acheson, AB T7X 5A4 780-960-5560 www.westquip.ca

Viper Rentals & Services Ltd. 10709 - 95 St. High Level, AB T0H 1Z0 780-926-3366 www.viperrentals.ca Walters Oil Tool Machine Ltd. 9924 - 29 Ave. Edmonton, AB T6N 1A2 780-462-4744

Amos & Co. Ltd. 708, 804 - 3 Ave. S.W. Calgary, AB T2P 0G9 403-272-9981 Annugas Compression Consulting Ltd. 3601 - 48 St. Wetaskiwin, AB T9A 3N9 780-361-2350 www.annugas.com Apex Distribution Inc. 550, 407 - 2 St. S.W. Calgary, AB T2P 2Y3 403-268-7333 www.apexdistribution.com Apex Energy Consultants Inc. 700, 815 - 8 Ave. S.W. Calgary, AB T2P 3P2 403-269-9550 www.apexenergy.com Apex Equipment Ltd. 116, 5726 Burleigh Cres. S.E. Calgary, AB T2H 1Z8 403-214-2049 www.apexequipmentltd.com Apex Oilfield Services (2000) Inc. 910, 734 - 7 Ave. S.W. Calgary, AB T2P 3P8 403-257-5152 www.apexoil.ca API Oilfield Hauling Inc. R.R. 1 Red Deer, AB T4N 5E1 403-309-7400 Aramark Remote Workplace Services Ltd. 9647 - 45 Ave. Edmonton, AB T6E 5Z8 780-437-5665 www.aramarkremote.com Arbrux Limited Unit 6, 33 Alliance Blvd. Barrie, ON L4M 5K2 705-739-7878 www.arbrux.com

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DIRECTORY Ardy Rigging Ltd. Box 180 Valleyview, AB T0H 3N0 780-524-3459 www.ardyrigging.com

Canyon Technical Services Ltd. 2900, 255 - 5 Ave. S.W. Calgary, AB T2P 3G6 403-355-2300 www.canyontech.ca

Daniel Industries Canada Inc. 4215 - 72 Ave. S.E. Calgary, AB T2C 2G5 403-279-1879 www.daniel.com

Argus Machine Co. Ltd. 5820 - 97 St. Edmonton, AB T6E 3J1 780-434-9451 www.argusmachine.com

Carbon Controls Ltd. Bay 124, 11979 - 40 St. S.E. Calgary, AB T2Z 4M3 403-238-9944 www.carboncontrolsltd.com

Davis Controls Limited 2200 Bristol Circle Oakville, ON L6H 5R3 905-829-2000 www.daviscontrols.com

Armor Well Servicing Ltd. 5, 707 - 12 Ave. Nisku, AB T9E 7M2 780-979-9922

Carnwood Wireline Service Ltd. 108, 3907 - 98 St. Edmonton, AB T6E 6M3 780-434-1122 www.carnwood.com

D & D Oilfield Rentals Corp. Box 1197 Redcliff, AB T0J 2P0 403-548-2700 www.ddoil.net

ATECH Application Technology Limited 2927 - 13 Ave. N.W. Calgary, AB T2N 1M1 403-261-0005 www.atech.ca

Cartel Energy Services Inc. Box 155 Beiseker, AB T0M 0G0 403-947-3334 www.cartelenergy.com

Baker Hughes Canada Company 1000, 401 - 9 Ave. S.W. Calgary, AB T2P 3C5 403-537-3400 www.bakerhughes.com

Cathedral Energy Services Ltd. 1700, 715 - 5 Ave. S.W. Calgary, AB T2P 2X6 403-265-2560 www.cathedralenergyservices.com

Delta-P Test Corp. 300, 85 Shawville Blvd. S.E., Box 18039 Calgary, AB T2Y 3W0 403-254-5445 www.delta-p.net

Baron Oilfield Supply 9515 - 108 St. Grande Prairie, AB T8V 5R7 780-532-5661 www.baronoilfield.ca

C.B. Engineering Limited 5040 - 12A St. S.E. Calgary, AB T2G 5K9 403-259-6220 www.cbeng.com

Bell Industries 5317 - 91 St. Edmonton, AB T6E 6E2 780-434-4401 www.bellindustries.net

CE Franklin Ltd. Box 6776, Stn. D. Calgary, AB T2P 2E8 403-531-5600 www.cefranklin.com

B & H Tank Systems Inc. 6012 - 62 St. Taber, AB T1G 2J4 403-223-9198

Chad Equipment Ltd. 311 Hwy. 40 East Box 445 Neilburg, SK S0M 2C0 306-823-4561

Big Bear Energy Rentals Ltd. Comp. 7, Site 5, R.R. 1 Sylvan Lake, AB T4S 1X6 403-887-2839 www.bigbearenergy.com

Champion Technologies Limited 2200, 144 - 4 Ave. S.W. Calgary, AB T2P 3N4 403-234-7881 www.champ-tech.com

Black Ink Oilfield Mechanical Inc. 6 Wellhead St. Devon, AB T9G 1Z6 780-987-4924 www.black-ink.ca

Chemline Plastics Limited 55 Guardsman Rd. Thornhill, ON L3T 6L2 905-889-7890 www.chemline.com

Black Ridge Consulting & Oilfield Services Ltd. Box 90 Griffin, SK S0C 1G0 306-848-1995 Bonnett’s Energy Corp. Box 1, Site 33, R.R. 2 Grande Prairie, AB T8V 2Z9 780-513-3400 www.bonnettsenergy.com Bouchard Well Service Ltd. 459 Aquaduct Dr., Box 1955 Brooks, AB T1R 1C7 403-362-4732 Boundary Equipment Co. Ltd. 10740 - 181 St. Edmonton, AB T5S 1K8 780-483-3133 www.boundaryequipment.com Bowie Pumps of Canada Ltd. 9333 - 41 Ave. N.W. Edmonton, AB T6E 6R5 780-465-7812 www.bowiepumps.com Brost Well Servicing Box 25012 Red Deer, AB T4R 2M2 403-314-0434 Brother’s Specialized Coatings 6150 - 76 Ave. Calgary, AB T6B 0A6 780-440-2855 www.brotherscoating.com C.B. Engineering Limited 5040 - 12A St. S.E. Calgary, AB T2G 5K9 403-259-6220 www.cbeng.com Cactus Gas & Oil Operators Ltd. 26 Chinook Dr. S.W. Medicine Hat, AB T1A 4B3 403-526-8910

Frontier Power Products Ltd. 7983 Progress Way Delta, BC V4G 1A3 604-946-5531 www.frontierpower.com

Dewitz Enterprises Box 2014 Whitecourt, AB T7S 1P7 780-778-6232

General Well Servicing Ltd. Box 700 Carnduff, SK S0C 0S0 306-482-3244

Diamond Energy Services 1521 North Service Rd. West Swift Current, SK S9H 3S9 306-778-6682 www.diamondenergy.ca

Global Flow Inc. Bay 2, 2315 - 30 Ave. N.E. Calgary, AB T2E 7C7 403-219-7373 www.globalflow.com

DPS Microbial Solutions 312 - 3 St., Box 116 Frobisher, SK S0C 0Y0 306-486-2110 www.dpsmicrobial.com Dril-x-Fluids Inc. 800, 839 - 5 Ave. S.W. Calgary, AB T2P 3C8 403-444-1517 www.dril-x.com

Classic Oilfield Service Ltd 5211 - 65 St. Lloydminster, AB T9V 2E8 780-875-3276 www.classicoil.com

DrSCADA Automation 160, 32 Westwinds Cres. N.E. Calgary, AB T3J 5L3 403-264-5937 www.drscada.com

Codeco Energy Group Inc. 2 Fl., 717 - 7 Ave. S.W. Calgary, AB T2P 3H6 403-237-7808 www.codecoenergygroup.com

Eagle Well Servicing 8113 - 49 Ave. Close Red Deer, AB T4P 2V5 403-346-7789 www.eaglerigs.com

Cofex Ltd. Box 179, 3428 - 99 St. Edmonton, AB T6E 5X5 780-914-4010

Electric Motor Service Limited 8835 - 60 Ave. Edmonton, AB T6E 6L9 780-496-9300 www.emsl.ca

Coltek Energy Services Ltd. 11474 - 96 Ave. Grande Prairie, AB T8V 3M4 780-538-9878 www.coltekenergy.com

Elmridge Engineering Inc. 15 Allaura Blvd. Aurora, ON L4G 3N1 905-726-7730 www.elmridge.org

Computer Modelling Group Ltd. 150, 3553 - 31 St. N.W. Calgary, AB T2L 2K7 403-531-1300 www.cmgl.ca

Endeavor E-Line Services 1100, 250 - 2 St. S.W. Calgary, AB T2P 0C1 403-265-9423 www.endeavoreline.com

Cool Air A/C Service & Repair Box 370 Avonlea, SK S0H 0C0 306-868-2291

Frac Rite Environmental Ltd. 2, 4416 - 5 St. N.E. Calgary, AB T2E 7C3 403-265-5533 www.fracrite.ca

Galvanic Applied Sciences, Inc. 7000 Fisher Rd. S.E. Calgary, AB T2H 0W3 403-252-8470 www.galvanic.com

Clariant (Canada) Inc. 950, 717 - 7 Ave. S.W. Calgary, AB T2P 0Z3 403-262-7846 www.oil.clariant.com

Conn Pumps 630, 1010 - 1 St. S.W. Calgary, AB T2R 1K4 403-262-5151 www.connpumps.com

Fourth Meridian Enterprises Ltd. Box 1908 Lloydminster, SK S9V 1N4 306-825-3373

Demand Data Services Inc. 520, 736 - 6 Ave. S.W. Calgary, AB T2P 3T7 403-263-3023 www.demanddataservices.com

Drive Systems Group Unit 1 & 2, 7150 Torbram Rd. Mississauga, ON L4T 3Z8 905-405-0310 www.drivesystemsgroup.com

Concord Well Servicing 1800, 140 - 10 Ave. S.E. Calgary, AB T2G 0R1 403-233-7565 www.ccscorporation.ca

FMC Technologies Company 6703 - 68 Ave. N.W. Edmonton, AB T6B 3E3 780-468-9231 www.fmctechnologies.com/ SurfaceWellhead.aspx

Endress + Hauser Canada Ltd. 1075 Sutton Dr. Burlington, ON L7L 5Z8 905-681-9292 www.ca.endress.com Enerchem International Inc. 3900, 205 - 5Ave. S.W. Calgary, AB T2P 2V7 403-266-1985 www.enerchem.com Enerflex Ltd. 904, 1331 Macleod Trl. S.E. Calgary, AB T2G 0K3 403-387-6377 www.enerflex.com

Global Steel Ltd. 401, 888 - 4 Ave. S.W. Calgary, AB T2P 0V2 403-237-8108 www.globalsteel.ca Global Well Servicing Ltd. Box 7745 Drayton Valley, AB T7A 1S8 780-515-9885 www.globalwellservicing.com GPM Sales & Service Inc. 4216 - 76 Ave. Edmonton, AB T6B 2H8 780-432-6957 www.wwwunifiedvalve.com GS Hitech Controls Inc. 6173 - 6 St. S.E. Calgary, AB T2H 1L9 403-255-7884 Halliburton Group Canada 1600, 645 - 7 Ave. S.W. Calgary, AB T2P 4G8 403-231-9300 www.halliburton.com Hertz Equipment Rental 8660 - 61 Ave. Edmonton, AB T6E 5P6 780-435-3711 www.hertzequip.com High Arctic Energy Services Inc. 8112 Edgar Industrial Dr. Red Deer, AB T4P 3R2 403-340-9825 www.haes.ca HiTech Fluid Systems Ltd. 1800, 505 - 3 St. S.W. Calgary, AB T2P 3E6 403-547-2906 www.hitechfluid.com Hi-Tech Seals Inc. 9211 - 41 Ave. N.W. Edmonton, AB T6E 6R5 780-438-6055 www.hitechseals.com Honeywell 5925 Centre St. S.W. Calgary, AB T2H 0C2 403-509-1200 www.honeywell.com/acs/indsol Horizontal Well Testing Ltd. 10, 5915 - 40 St. S.E. Calgary, AB T2C 2H6 403-880-4030 www.horizontalwelltesting.com Hot Rods Oilfield Services Inc. Box 428 Carnduff, SK S0C 0S0 306-928-2245 www.hotrodsoilfieldservices.com

Calfrac Well Services Ltd. 411 - 8 Ave. S.W. Calgary, AB T2P 1E3 403-266-6000 www.calfrac.com

Couturier Oilfield Anchors Ltd. 50119 R.R. 75, Lot 206, Box 5039 Drayton Valley, AB T7A 1R3 780-542-6358 www.couturieranchors.com

Calmena Energy Services Inc. 700, 333 - 7 Ave. S.W. Calgary, AB T2P 2Z1 403-225-3879 www.calmena.com

CTE Industries Ltd 2451 - 76 Ave. N.W. Edmonton, AB T6P 1P6 780-485-8799 www.cteltd.com

Entero Corporation 500, 1040 - 7 Ave. S.W. Calgary, AB T2P 3G9 403-261-1820 www.entero.com

Cameron Canada Corporation 600, 715 - 5 Ave. S.W. Calgary, AB T2P 2X6 403-261-2800 www.c-a-m.com

C-TECH Oilwell Technologies Inc. 3201 - 84 Ave. Edmonton, AB T6P 1K1 780-464-3800 www.ctechenergy.com

Essential Energy Services Ltd. 1100, 250 - 2 St. S.W. Calgary, AB T2P 0C1 403-263-6778 www.essentialenergy.ca

Canadian Nitrogen Services Ltd. 610B McCool St., Box 1909 Crossfield, AB T0M 0S0 403-946-0404 www.canadiannitrogen.com

Cummins Western Canada 18452 - 96 Ave. Surrey, BC V4N 3P8 604-882-5000 www.westerncanada.cummins.com

Ex-Cel Well Servicing Ltd. 420 Boscuruis Ave., Box 775 Oxbow, SK S0C 2B0 306-483-2281

Husky Transport Ltd. 12155 - 242 Rd., Box 6070 Fort St. John, BC V1J 4H6 250-785-8335 www.huskytransport.com

Canadian Wellhead Isolation 34 Industrial Dr. Sylvan Lake, AB T4S 1P4 403-340-3356 www.wellheadisolation.com

CWC Well Services Corp. 6763 - 76 St. Red Deer, AB T4P 3R7 403-341-3933 www.cwcwellservices.com

Extreme Telematics Corp. 111, 1144 - 20 Ave. N.E. Calgary, AB T2E 7P1 403-290-6300 www.etcorp.ca

ICI Artificial Lift 6010 - 53 Ave. Lloydminster, AB T9V 2T2 780-872-7470 www.icisolutions.ca

Canamara - United Supply 8750 - 53 Ave. Edmonton, AB T6E 5G2 780-468-4064 www.canamara-united.com

Danco Equipment (2009) Inc. 9111 - 41 Ave. Edmonton, AB T6E 6M5 780-468-5151 www.dancoequipment.com

Flexpipe Systems 3501 - 54 Ave. S.E. Calgary, AB T2C 0A9 403-503-0548 www.flexpipesystems.com

ICS Group Inc. 250081 Mountain View Trl. Calgary, AB T3Z 3S3 403-247-4440 www.icsgroup.ca

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Enerflow Industries Inc. 4800 - 27 St. S.E. Calgary, AB T2B 3M4 403-279-9696 www.enerflow.com

Hotshot Fire Trucks Ltd. 51532 Range Rd. 25 Box 2728 Stony Plain, AB T7Z 1Y2 780-823-0063 www.hotshotfiretrucks.com Hotwell Canada Ltd. 516 Moraine Rd. N.E. Calgary, AB T2A 2P2 403-247-3480 www.hotwell.ca

D I R E C TORY Impact Rock Bits Box 6448 Peace River, AB T8S 1S3 780-624-2640 www.impactrockbits.com

Mayco Well Servicing Inc. Box 575 Oxbow, SK S0C 2B0 306-483-2367 www.maycowell.com

Oyo Geo Space Canada, Inc. 2735 - 37 Ave. N.E. Calgary, AB T1Y 5R8 403-250-9600 www.oyogeospace.com

ProMinent Fluid Controls Ltd. 490 Southgate Dr. Guelph, ON N1G 4P5 519-836-5692 www.prominent.ca

Import Tool Corporation Ltd. 5533 - 48 St. N.W. Edmonton, AB T6B 3R1 780-434-6406 www.importtool.com

McAdoo Flow-Systems Ltd. Bay 6, 6115 - 4 St. S.E. Calgary, AB T2H 2H9 403-547-5002 www.mcadooflowsystems.com

Pacific Valve Services Inc. 9750 - 62 Ave. Edmonton, AB T6E 0E3 780-463-3972 www.pacificvalve.com

Propak Systems Ltd. 440 East Lake Rd., Airdrie, AB T4A 2J8 403-912-7000 www.propaksystems.com

Infinity Oilfield Services Inc. R.R. 2 Sundre, AB T0M 1X0 403-230-6031 www.infinityoilfield.com

M-I SWACO 5 Fl., 700 - 2 St. S.W. Calgary, AB T2P 2W2 403-290-5300 www.miswaco.com

Packers Plus Energy Services Inc. 2200, 205 - 5 Ave. S.W. Calgary, AB T2P 2V7 403-263-7587 www.packersplus.com

PRO-ROD 3201 - 84 Ave. Edmonton, AB T6P 1K1 780-449-7101 www.prorod.com

Integrated Production Services Ltd. 1900, 840 - 7 Ave. S.W. Calgary, AB T2P 3G2 403-266-0908 www.ipsadvantage.ca

Miller Well Servicing Ltd. Box 1341 Weyburn, SK S4H 3J9 306-861-6154

Pajak Engineering Ltd. 300, 707 - 7 Ave. S.W. Calgary, AB T2P 3H6 403-264-1197 www.pajakeng.com

ProTechnics 2100, 125 - 9 Ave. S.E. Calgary, AB T2G 0P6 403-269-2055 www.protechnics.com

International Frontier Resources Corporation 100, 601 - 10 Ave. S.W. Calgary, AB T2R 0B2 403-215-2781 www.internationalfrontier.com

Mow-Tech Ltd. 17740 - 118 Ave. N.W. Edmonton, AB T5S 2W3 780-484-6356 www.mowtech.com

Parcels Trucking (2007) Ltd. 4713 - 41 St. Stettler, AB T0C 2L0 403-742-2781

Proven Reserves Exploitation Ltd. 1730, 734 - 7 Ave. S.W. Calgary, AB T2P 3P8 403-218-7000 www.proven-reserves.com

International Oilfield Equipment Brokers Ltd. 4, 4063 - 74 Ave. S.E. Calgary, AB T2C 2H9 403-299-2244 www.oilfieldequipment.com

Mud Master Drilling Fluid Services Ltd. 530, 1015 - 4 St. S.W. Calgary, AB T2R 1J4 403-237-8900 www.mudmaster.ca

ParVal Equipment Ltd. 201, 14207 - 128A Ave. Edmonton, AB T5L 4P5 780-437-2334 www.parval.ca

Q’Max Solutions Inc. 1700, 407 - 2 St. S.W. Calgary, AB T2P 2Y3 403-269-2242 www.qmaxsolutions.com

Isotopes Canada Ltd. 3, 1216 - 34 Ave. N.E. Calgary, AB T2E 6L9 403-250-3968 www.isotopescanada.com

Muis Controls Ltd. 29 Riel Dr. St. Albert, AB T8N 3Z2 780-459-7080 www.muiscontrols.com

PCM Canada 303, 6707 Elbow Dr. S.W. Calgary, AB T2V 0E5 403-252-8902 www.pcm.eu

Raise Production Inc. 1810, 715 - 5 Ave. S.W. Calgary, AB T2P 2X6 403-699-7675 www.raiseproduction.com

John Crane Canada Inc. 423 Green Rd. Stoney Creek, ON L8E 3A1 905-662-6191 www.johncrane.com

M.W. Hagel Consulting Ltd. 18 Golden Key Estates Calgary, AB T3P 1A5 403-265-7800 www.optimus.ab.ca

Peace Country Rentals & Sales Inc. 9619 - 108 St. Fort St. John, BC V1J 6S4 250-785-8951 www.peacecountryrentals.com

Rangeland Energy Services Box 5098 High River, AB T1V 1M3 403-652-3253 www.rangelandinc.com

Kanex Energy Corp. 41 Springland Way Calgary, AB T3Z 3N6 403-240-1863

Nabors Production Services 33 Schenk Industrial Rd. Sylvan Lake, AB T4S 2J7 403-887-7400 www.nabors.com

Pembina Controls Inc. 9611 - 42 Ave. Edmonton, AB T6E 5R2 780-432-6821 www.pem-controls.com

Rebco Oil Tools Inc. 4226 Ogden Rd. S.E. Calgary, AB T2G 4V3 403-243-1380 www.rebcooiltools.com

Keddco Mfg. Ltd. 645 Keddco St., Box 999 Sarnia, ON N7T 7K6 519-336-2960 www.keddco.com

National Process Equipment 5049 - 74 Ave. S.E. Calgary, AB T2C 3H2 403-219-0270 www.natpro.com

Penetrators Canada Inc. 8002 Edgar Industrial Ave. Red Deer, AB T4P 3S2 403-346-7474 www.maxperf.ca

Redmont International ULC 3336 - 47 Ave. S.E. Calgary, AB T2B 2W1 403-297-0910 www.redmont.com

Ketek Group Inc. 20204 - 110 Ave. N.W. Edmonton, AB T5S 1X8 780-447-5050 www.ketek.ca

Navigator Resource Consulting Ltd. 610, 7015 Macleod Trl. S.W. Calgary, AB T2H 2K6 403-233-7380 www.navigator-resource.com

Penta Completions Supply & Services Ltd. 9543 - 56 Ave. Edmonton, AB T6E 0B2 780-436-6644 www.pentarods.com

Regent Energy Group 1600, 734 - 7 Ave. S.W. Calgary, AB T2P 3P8 403-269-8088 www.regentenergygroup.com

KSM Inc. 1904 - 4 St. Nisku, AB T9E 7T8 780-955-3456 www.ksmrig.com

NCS Oilfield Services Canada 1170, 800 - 6 Ave. S.W. Calgary, AB T2P 3G3 403-988-6342 www.ncsfrac.com

Peterson Instruments 123, 5655 - 10 St. N.E. Calgary, AB T2E 8W7 403-291-9169 www.petersoninst.com

Reliance Well Servicing (2002) Ltd. Box 7285 Drayton Valley, AB T7A 1S5 780-542-5295 www.reliancewell.com

Kudu Industries Inc. 9112 - 40 St. S.E. Calgary, AB T2C 2P3 403-279-5838 www.kudupump.com

Nelgar Services Inc. 101, 7477 - 49 Ave. Red Deer, AB T4P 1N1 403-309-2620 www.nelgarservices.com

Lamarre Equipment Inc. 9419 - 27 Ave. Edmonton, AB T6N 1C9 780-438-3493 www.lamarreequipment.com

Netzsch Canada, Inc. 740 Huronia Rd. Barrie, ON L4N 6C6 705-797-8426 www.netzsch.ca

Lanco Well Services Ltd. 14630 - 119 Ave. N.W. Edmonton, AB T5L 2P2 780-452-3744

Newpark Canada Inc. 300, 635 - 6 Ave. S.W. Calgary, AB T2P 0T5 403-266-7383 www.newpark.ca

Leader Energy Services Ltd. 700, 706 - 7 Ave. S.W. Calgary, AB T2P 0Z1 403-265-5400 www.leaderenergy.com

NGC Product Solutions 110, 3160 - 118 Ave. S.E. Calgary, AB T2Z 3X1 403-295-3114 www.ngc-ps.com

Lochterra Inc. Box 2096, Stn. M Calgary, AB T2P 2M4 403-651-4090

Northern Pressure Systems Inc. 1000, 825 - 8 Ave. S.W. Calgary, AB T2P 2T3 403-262-4698

Lockwell Servicing Ltd. Box 700 Kindersley, SK S0L 1S0 306-838-2014

Northstar Drillstem Testers Inc. 201, 736 - 1 Ave. N.E. Calgary, AB T2E 0B8 403-265-8987 www.northstardst.com

Logan International Inc. 635 8th Ave. S.W. Suite 850 Calgary, AB T2P 3M3 403-930-6810 www.loganinternationalinc.com

Oak Environmental Inc. 103, 4712 - 13 St. N.E. Calgary, AB T2E 6P1 403-250-9810 www.oakenviro.com

Lonkar Well Testing Ltd. 8080 Edgar Industrial Cres. Red Deer, AB T4P 3R3 403-347-9727 www.lonkar.com

Oil & Gas Instruments Inc. 3, 265 Main St., Box 237 Glencoe, ON N0L 1M0 519-287-3554

Lufkin Industries Canada Ltd. 1050, 808 - 4 Ave. S.W. Calgary, AB T2P 3E8 403-234-7692 www.lufkin.com

Oil Lift Technology Inc. Bay 3, 1820 - 30 Ave. N.E. Calgary, AB T2E 7M5 403-291-5300 www.oillifttechnology.com

Marquis Alliance Energy Group Inc. 1800, 800 - 6 Ave. S.W. Calgary, AB T2P 3G3 403-264-1588 www.marquisalliance.com

OilPro Oilfield Production Equipment Ltd. 530 Cleveland Cr. S.E. Calgary, AB T2G 4A9 403-215-3373 www.oilpro.ab.ca

Master Flo Valve Inc. 4611 - 74 Ave. Edmonton, AB T6B 2H5 780-468-4433 www.masterflo.com

Opsco Energy Industries Ltd. 285175 Kleysen Way Rocky View, AB T1X 0K1 403-272-2206 www.opscoenergy.com

Matrix Drilling Fluids Ltd. 1240, 540 - 5 Ave. S.W. Calgary, AB T2P 0M2 403-265-7660 www.matrixdrillingfluids.com

OptiFrac Chemicals Services 530, 1015 - 4 St. S.W. Calgary, AB T2R 1J4 403-237-8900 www.optifrac.com

Production Equipment Performance Reporting Inc. 700, 521 - 3 Ave. S.W. Calgary, AB T2P 3T3 403-966-7377 www.peprinc.com

Maxquip Inc. 6235A - 86 Ave. S.E. Calgary, AB T2C 2S4 403-258-3685 www.maxquip.ca

Optimus International Technologies Inc. 18 Golden Key Estates Calgary, AB T3P 1A5 403-265-7800 www.optimus.ab.ca

Proficient Oil Tools Ltd. 105, 616 - 71 Ave. S.E. Calgary, AB T2H 2R1 403-255-4070 www.proficientoiltools.com

Petro Management Group Ltd. 401, 100 - 4 Ave. S.W. Calgary, AB T2P 3N2 403-216-5100 www.petromgt.com Petroleum Technology Transfer Inc. 5008 Nesbitt Rd. N.W. Calgary, AB T2K 2N5 403-282-6183 PHH Petroleum Consultants Ltd. 240, 1121 Centre St. N.W. Calgary, AB T2E 7K6 403-232-6822 www.phhpc.com Photon Control Inc. 200, 8363 Lougheed Hwy. Burnaby, BC V5A 1X3 604-422-8861 www.photon-control.com Platinum Pumpjack Services Corp. Box 10207 Lloydminster, AB T9V 3A3 780-875-7145 www.platinumenergy.net Polycore Tubular Linings Corporation 430, 736 - 8 Ave. S.W. Calgary, AB T2P 1H4 403-444-5554 www.polycore.ca Porteous Resources Limited 5008 Nesbitt Rd. N.W. Calgary, AB T2K 2N5 403-282-6183 Powerstroke Well Control Ltd. R.R. 2, Site 33, Comp. 4 Grande Prairie, AB T8V 2Z9 780-539-0102 www.powerstroke.ca Precision Drilling Corporation 800, 525 - 8 Ave. S.W. Calgary, AB T2P 1G1 403-716-4500 www.precisiondrilling.com Presidential Industries Ltd. 520 - 35 Ave. N.E. Calgary, AB T2E 2K8 403-277-1918 Primary Flow Signal Canada, Inc. 4003 - 97 St. Edmonton, AB T6E 5Y5 780-440-0109 www.primaryflowsignal.com

Rheotech Drilling Fluid Services Inc. 610, 700 - 4 Ave. S.W. Calgary, AB T2P 3J4 403-237-8870 www.rheotech.ca Ringer Well Service Ltd. Box 506 Cochrane, AB T4C 1A7 403-208-9733 www.ringerwell.com R & M Energy Systems Canada 3703 - 98 St. Edmonton, AB T6E 5N2 780-465-9500 www.rmenergy.com Rockwell Servicing Partnership 1000, 400 - 5 Ave. S.W. Calgary, AB T2P 0L6 403-265-6361 www.ensignenergy.com Rod Anderson Holdings Ltd. 399 Whiteridge Cres. N.E. Calgary, AB T1Y 2Y9 403-293-0583 Roll’n Oilfield Industries, Ltd. 305, 5208 - 53 Ave. Red Deer, AB T4N 5K2 403-343-1710 www.rolln.com Ronwood Enterprises Ltd. Box 600 Consort, AB T0C 1B0 403-577-2060 www.ronwoodpressuretrucks.com Ross Energy Services Ltd. 66 Cranridge Heights S.E. Calgary, AB T3M 0C1 403-236-0122 Rotation Power & Equipment Inc. Box 500 Neilburg, SK S0M 2C0 306-823-4818 www.rotationpower.com S.A. Armstrong Limited 23 Bertrand Ave. Scarborough, ON M1L 2P3 416-755-2291 www.armstrongpumps.com Sabre Oilfield Equipment Ltd. 2412 Cameron Ravine Dr. Edmonton, AB T6M 0J2 780-446-6054 www.sabreoilfield.com Safety Boss Inc. Bay 1, 2501 Alyth Rd. S.E. Calgary, AB T2G 1P7 403-261-5075 www.safetyboss.com Sanjel Corporation 200, 505 - 2 St. S.W. Calgary, AB T2P 1N8 403-269-1420 www.sanjel.com

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DIRECTORY Savanna Energy Services Corp. 800, 311 - 6 Ave. S.W. Calgary, AB T2P 3H2 403-503-9990 www.savannaenergy.com

Strad Energy Services Ltd. 1200, 440 – 2 Ave. S.W. Calgary, AB T2P 5E9 403-232-6900 www.stradenergy.com

Tryton Tool Services 5107 - 62 St. Lloydminster, AB T9V 2E3 780-875-0800 www.essentialenergy.ca

Zazula Process Equipment Ltd. 1526 - 10 Ave. S.W. Calgary, AB T3C 0J5 403-244-0751 www.zazula.com

Saxon Energy Services Inc. 1700, 700 - 4 Ave. S.W. Calgary, AB T2P 3J4 403-716-4150 www.saxonservices.com

Stream-Flo Industries Ltd. 4505 - 74 Ave. Edmonton, AB T6B 2H5 780-468-6789 www.streamflo.com

TS&M Supply Box 28 Estevan, SK S4A 2A2 306-634-6494 www.natoil.com

Zedi 902 - 11 Ave. S.W. Calgary, AB T2R 0E7 403-444-1100 www.zedi.ca

Schlumberger 525 - 3 Ave. S.W.Calgary, AB T2P 0G4 403-509-4000 www.slb.com

Sumitomo Canada Limited 2800, 150 King St. West Toronto, ON M5H 1J9 604-691-6000 www.sumitomocanada.com

Tucker Wireline Services Canada Inc. 900, 444 - 5 Ave. S.W. Calgary, AB T2P 2T8 403-264-7040 www.tuckerenergy.com

Ziff Energy Group 180, 6025 - 11 St. S.E. Calgary, AB T2H 2Z2 403-234-4297 www.ziffenergy.com

Schneider Electric, Telemetry & Remote SCADA Solutions 48 Steacie Dr. Kanata, ON K2K 2A9 613-591-1943 www.controlmicrosystems.com

Sure Flow Consulting Services (1992) Inc. Box 7400 Bonnyville, AB T9N 2H7 780-826-6864 www.sureflowconsulting.com

Twylight Pressure Controls Ltd. 10124 - 94 Ave. Fort St. John, BC V1J 5J6 250-785-2178

Syndicated Ventures Inc. 1500, 520 - 5 Ave. S.W. Calgary, AB T2P 3R7 403-264-7474

Unified Valve Ltd. 4, 12181 - 44 St. S.E. Calgary, AB T2Z 4H3 403-215-7800 www.unifiedvalve.com

Tank-Life Cradles Ltd. 2032 Crocus Rd. N.W. Calgary, AB T2L 0Z8 403-269-5525 www.tanklife.com

Univar Canada Ltd. 9800 Van Horne Way Richmond, BC V6X 1W5 604-273-1441 www.univarcanada.com

Tartan Controls Inc. 4003 - 53 Ave. Edmonton, AB T6B 3R5 780-463-3366 www.tartancontrols.com

Variperm (Canada) Limited 7, 3424 - 26 St. N.E. Calgary, AB T1Y 4T7 403-250-7263 www.variperm.com

Tax Back Ltd. 710, 7015 Macleod Trl. South Calgary, AB T2H 2K6 403-252-3128 www.taxback.ab.ca

Vetco Gray Canada ULC 3500, 525 - 8 Ave. S.W. Calgary, AB T2P 1G1 403-264-4146 www.geoilandgas.com/vetcogray

TDH Fluid Systems Inc. 112, 422 - 11 Ave. S.E. Calgary, AB T2G 0Y4 403-228-7018

Viking Pump of Canada, Inc. 661 Grove Ave., Box 398 Windsor, ON N9A 6M3 519-256-5438 www.vikingpumpcanada.com

Techmation Electric & Controls Ltd. 1, 43 East Lake Cres. N.E. Airdrie, AB T4A 2H5 403-243-0990 www.techmationelectric.com

Viking Surplus Oilfield Equipment Ltd. 36 Hwy. 39 East, Box 1460 Estevan, SK S4A 2L7 866-634-6612 www.vikingsurplus.com

Technicoil Corporation, CT Service Division 1100, 250 - 2 St. S.W. Calgary, AB T2P 0C1 403-509-0700 www.technicoilcorp.com

Volant Products Inc. 4110 - 56 Ave. N.W. Edmonton, AB T6B 3R8 780-490-5185 www.volantproducts.ca

TestAlta Services Ltd. 3011 - 23 St. N.E. Calgary, AB T2E 7A4 403-250-1790 www.testalta.com

Waste ‘n WaterTech 321, 11979 - 40 St. S.E. Calgary, AB T2Z 4M3 403-252-9056 www.watertech.ca

Tetrale Group Inc. 380, 1500 - 14 St. S.W. Calgary, AB T3C 1C9 403-457-0555 www.tetrale.com

Waterflood Service and Sales Ltd. Box 1490 Estevan, SK S4A 2L7 306-634-7212 www.waterflood.com

The Motor Company 5420 - 53 Ave. S.E. Calgary, AB T2C 4R3 403-230-3055 www.themotorcompany.ca

Welltec Canada Inc. 4860 - 25 St. S.E. Calgary, AB T2B 3M2 403-263-2248 www.welltec.com

Ashbrooke Quality Assurance Ltd. 78038, 3295 Coast Meridian Rd. Port Coquitlam, BC V3B 7H5 604-552-0496 www.ashbrooke.com

The OPS Group International Inc. 4119 - 55 St. N.E. Calgary, AB T1Y 4B5 403-216-1216

West Rock Energy Consultants Ltd. 1110, 910 - 7 Ave. S.W. Calgary, AB T2P 3N8 403-663-4860 www.westrock-energy.com

Banner Consulting Services, Inc. 269 Valley Springs Terrace NW Calgary, AB T3B 5P8 403-510-5351

Thuro Inc. 4650 - 50 Ave. S.E. Calgary, AB T2B 3R4 403-243-0276 www.thuro.ab.ca

Westcomm Pump & Equipment Ltd. Unit 2, 3424 - 26 St. N.E. Calgary, AB T2E 7A4 403-215-7867 www.westcommpump.com

Bennett Jones LLP 4500, 855 - 2 St. S.W. Calgary, AB T2P 4K7 403-298-3100 www.bennettjones.com

Top-Co LP 7720 - 17 St. Edmonton, AB T6P 1S7 780-440-4440 www.top-co.ca

Westpower Equipment Ltd. 4451 - 54 Ave. S.E. Calgary, AB T2C 2A2 403-720-3300 www.westpower.ca

Black Gold Projects - Inspection 3809 South Island Hwy. Campbell River, BC V9H 1M4 403-262-4653 www.black-gold.ca

Total Enerflex 9715 - 115 St. Grande Prairie, AB T8V 5S4 780-532-8347 www.totalenerflex.com

Wilco Wireline & Swabbing Services Inc. 1, 4451 - 58 Ave. S.E. Calgary, AB T2C 1Y3 403-279-8895 www.wilcowireline.com

Boundary Technical Group Inc. 8, 421 East Lake Rd. N.E. Airdrie, AB T4A 2J7 403-948-2198 www.btgi.ca

Tracer Supervision 1110, 340 - 12 Ave. S.W. Calgary, AB T2R 1L5 403-261-7097 www.barlon.ca

Wildcat Well Servicing Inc. Box 2374 Kindersley, SK S0L 1S0 306-463-1114

Britt Land Services 1100, 630 - 6 Ave. S.W. Calgary, AB T2P 0S8 403-266-5746 www.brittland.com

TRC Hydraulics Inc. 855 Champlain St. Dieppe, NB E1A 1P6 506-853-1986 www.trchydraulics.com

William Nichols Consulting 4616 Brockington Rd. N.W. Calgary, AB T2L 1R6 403-714-3330 www.williamnichols.com

Calvin Consulting Group Ltd. 1A, 3850 - 19 St. N.E. Calgary, AB T2E 6V2 403-547-7557 www.calvinconsulting.ca

Treeline Well Services Inc. 750, 333 - 11 Ave. S.W. Calgary, AB T2R 1L9 403-266-2868 www.treelinewell.com

Wizard Well Servicing Ltd. 5211 - 65 St. Lloydminster, AB T9V 2E8 780-875-6035

Canadian Institute of Resources Law 3353 MFH, University of Calgary Calgary, AB T2N 1N4 403-220-3200 www.cirl.ca

STEP Energy Services 300, 505 - 3 St. S.W. Calgary, AB T2P 3E6 403-457-1772 www.stepenergyservices.com

Trendon Bit Service Ltd. Box 548 Redcliff, AB T0J 2P0 403-548-7242 www.trendonbitservice.com

World Oil Tools Inc. 6, 3504 - 72 Ave. S.E. Calgary, AB T2C 1J9 403-720-5155 www.worldoiltools.com

CanGas Solutions Ltd. 2010, 444 - 5 Ave. S.W. Calgary, AB T2P 2T8 403-452-7789 www.cangassolutions.com

Stewart & Stevenson, Canada 3111 Shepard Rd. S.E. Calgary, AB T2C 4P1 403-215-5300 www.stewartandstevenson.com

Tri “3” Well Servicing Ltd. 1, 5316 - 43 St., Box 743 Provost, AB T0B 3S0 780-753-2927

Wrangler Well Servicing Ltd. 6108 - 24 St. Lloydminster, AB T9V 3J8 306-821-7292

Clear Environmental Solutions 440, 840 - 6 Ave. S.W. Calgary, AB T2P 3E5 403-263-5953 www.clearenv.com

StimSol Canada Inc. 7478 - 10 St. N.E. Calgary, AB T2E 8W1 403-264-9599 www.stimsol.com

Trican Well Service 2900, 645 - 7 Ave. S.W. Calgary, AB T2P 4G8 403-266-0202 www.trican.ca

XL Fluid Systems 1800, 800 - 6 Ave. S.W. Calgary, AB T2P 3G3 403-265-4344 www.xlfluids.com

Cordy Oilfield Services Inc. 1000, 1520 - 4 St. S.W. Calgary, AB T2R 1H5 403-266-2067 www.cordy.ca

Stowell Pumps 5415 - 99 St.Edmonton, AB T6E 3N8 780-438-2485 www.stowellpumps.ca

Trinidad Drilling Ltd. 2500, 700 - 9 Ave. S.W. Calgary, AB T2P 3V4 403-265-6525 www.trinidaddrilling.com

XYLEM Water Solutions 300 av. Labrosse Pointe-Claire, QC H9R 4V5 514-695-0100 www.xylemwatersolutions.com/ca

DANA Technical Services Ltd. 104, 3016 - 19 St. N.E. Calgary, AB T2E 6Y9 403-571-0390 www.danats.com

Secure Energy Services Inc. 1900, 205 - 5 Ave. S.W. Calgary, AB T2P 2V7 403-984-6100 www.secure-energy.ca SEI Industries Ltd. 7400 Wilson Ave. Delta, BC V4G 1H3 604-946-3131 www.sei-ind.com Select Energy Systems Inc. 4215 - 54 Ave. S.E. Calgary, AB T2C 2A2 403-243-7542 www.selectesi.com Sentry Pumping Units International 1150, 444 - 5 Ave. S.W. Calgary, AB T2P 2T8 403-775-7077 www.sentryinternational.net Servipetrol Inc. 502, 903 - 19 Ave. S.W. Calgary, AB T2T 0H8 403-266-2535 www.servipetrol.com Servipetrol Resources Ltd. 502, 903 - 19 Ave. S.W. Calgary, AB T2T 0H8 403-266-2535 www.servipetrol.com Siberian Well Service Ltd. Box 218 Brooks, AB T1R 1B3 403-362-9155 Sienna Contracting Ltd. 683 - 18 St. S.W. Medicine Hat, AB T1A 7Y1 403-527-9881 www.siennacomposite.com SIGIT Automation 540, 734 - 7 Ave. S.W. Calgary, AB T2P 3P8 403-723-4256 www.sigitautomation.com Simark Controls Ltd. 10509 - 46 St. S.E. Calgary, AB T2C 5C2 403-236-0580 www.simark.com Sim-Con Oilfield Equipment Ltd. 800 - 10 St. West, Box 246 Kindersley, SK S0L 1S0 306-463-4938 www.simconoil.com Simmons Group Inc. 800, 906 - 12 Ave. S.W. Calgary, AB T2R 1K7 403-244-5340 www.simmonsenergy.com Slurry Cementers Ltd. 9525 - 62 Ave. Edmonton, AB T6E 0E1 780-435-3451 Spartan Controls Ltd. 305 - 27 St. S.E. Calgary, AB T2A 7V2 403-207-0700 www.spartancontrols.com SPM Flow Control Ltd. Unit A,8060 Edgar Industrial Cres. Red Deer, AB T4P 3R3 403-341-3410 www.weiroilandgas.com Stady Oil Tools Ltd. 300, 1601 Westmount Rd. N.W. Calgary, AB T2N 3M2 403-262-8022

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ENVIRONMENT Abandonrite 2800, 500 - 4 Ave. S.W. Calgary, AB T2P 2V6 403-263-6777 www.nabors.com ABKO Holdings (1977) Ltd. 2422, 246 Stewart Green S.W. Calgary, AB T3H 3C8 403-262-3221 Accurata Inc. 120 MacEwan Park Rise N.W. Calgary, AB T3K 4A1 403-295-1637 www.accurata.ca A.F.M. Resources Ltd. R.R. 2 Okotoks, AB T1S 1A2 403-938-2158 Altus Geomatics Limited Partnership, Environmental & Forestry 17327 - 106A Ave. Edmonton, AB T5S 1M7 780-481-3399 www.altusgroup.com AMEC Earth & Environmental 140 Quarry Park Blvd. S.E. Calgary, AB T2C 3G3 403-248-4331 www.amec.com Aresco Ltd. 108 Varsity Cres. N.W. Calgary, AB T3B 2Z4 403-247-1449

D I R E C TORY Diagnostic Engineering Inc. 111, 616 - 71 Ave. S.E. Calgary, AB T2H 2R1 403-253-4856 www.diagnosticgroup.ca

McNally Land Services Ltd. 215, 5718 - 1A St. S.W. Calgary, AB T2H 0E8 403-503-5263

TERA Environmental Consultants 1100, 815 - 8 Ave. S.W. Calgary, AB T2P 3P2 403-265-2885 www.teraenv.com

JuneWarren-Nickle’s Energy Group 2 Fl., 816 - 55 Ave. N.E. Calgary, AB T2E 6Y4 403-209-3500 www.junewarren-nickles.com

Energy Insurance Group Ltd. 1500, 727 - 7 Ave. S.W. Calgary, AB T2P 0Z5 403-261-6061 www.eigltd.com

MediaLogic Inc. 105, 620 - 8 Ave. S.W. Calgary, AB T2P 3G2 403-261-5690 www.naturalresource.ca

Trek Construction & Environmental Services Ltd. 63A Skyline Cres. N.E. Calgary, AB T2K 5X7 403-274-1000 www.gettrekin.com

MacdonaldCole Inc. 912 Lake Twintree Cr. S.E. Calgary, AB T2J 2W3 403-271-6908 www.macdonaldcole.com

EnviroConsult Inc. 201, 225 - 10 St.N.W. Calgary, AB T3H 3C8 403-804-4311 www.enviroconsultinc.com

Milepost Manufacturing 55004, Range Rd. 251 Sturgeon County, AB T8T 1R6 780-459-1030 www.milepostmfg.com

Visser Consulting Ltd. 290, 6815 - 8 St. N.E. Calgary, AB T2E 7H7 403-239-3797 www.visserconsulting.ca

Merlin Edge Inc. 100, 602 - 12 Ave. S.W. Calgary, AB T2R 1J3 403-237-7684 www.merlinedge.com

Waterworks Technologies Inc. 2024 - 12 Ave. N.W. Calgary, AB T2N 1J7 403-289-3198 www.waterworks.ca

Microhard Systems Inc. 150 Country Hills Landing N.W. Calgary, AB T3K 5P3 403-248-0028 www.microhardcorp.com

Enviro-Guard Reclamation Inc. 252 Sienna Hills Dr. S.W. Calgary, AB T3H 2Y8 403-540-9312 Envirosoft Corporation 10-B, 1235 - 64 Ave. S.W. Calgary, AB T2H 2J7 403-225-8760 www.envirosoft.ca Epic Environmental Technologies Inc. 48 Carlton St. Box 700 Redvers, SK S0C 2H0 306-452-3200 www.epicenvirotech.com FDI Acoustics Inc. 250, 600 Crowfoot Cres. N.W. Calgary, AB T3B 0B4 403-547-9511 www.fdiacoustics.com Frac Rite Environmental Ltd. 2, 4416 - 5 St. N.E. Calgary, AB T2E 7C3 403-265-5533 www.fracrite.ca Geo Webworks Inc. 2020, 801 - 6 Ave. S.W. Calgary, AB T2P 3W2 403-301-4001 www.geowebworks.com Geophysics GPR International Inc. 100, 2545 rue de Lorimier Longueuil, QC J4K 3P7 450-679-2400 www.geophysicsgpr.com Ghostpine Environmental Services Ltd. 111, 10699 - 46 St. S.E. Calgary, AB T2C 5C2 403-291-9238 www.ghostpine.com Golder Associates Ltd. 2535 - 3 Ave. S.E. Calgary, AB T2A 7W5 403-299-5600 www.golder.com HFP Acoustical Consultants Corp. 1140, 10201 Southport Rd. S.W. Calgary, AB T2W 4X9 403-259-6600 www.hfpacoustical.com HMA Land Services Ltd. 100, 7710 - 5 St. S.E. Calgary, AB T2H 2L9 403-692-0850 www.hmaland.com Hunter and Associates/GIS Unit 18, 2285 Dunwin Dr. Mississauga, ON L5L 3S3 905-607-4120 www.hunter-gis.com Hydrogeological Consultants Ltd. 17740 - 118 Ave. N.W. Edmonton, AB T5S 2W3 780-483-7240 www.hcl.ca HydroQual Laboratories Ltd. 4, 6125 - 12 St. S.E. Calgary, AB T2H 2K1 403-253-7121 Integrity Land Inc. 9940 - 99 Ave. Fort Saskatchewan, AB T8L 4G8 780-992-1500 www.integrityland.com J.K. Engineering Ltd. 320, 7930 Bowness Rd. N.W. Calgary, AB T3B 0H3 403-247-1777 www.jkeng.ca Kanuka Thuringer LLP 1400, 2500 Victoria Ave. Regina, SK S4P 3X2 306-525-7200 www.kanukathuringer.com KCM Engineering Ltd. 84 Oakmount Way S.W. Calgary, AB T2V 4Y1 403-807-6576

Millennium EMS Solutions Ltd. 208, 4207 - 98 St. Edmonton, AB T6E 5R7 780-496-9048 www.mems.ca Morgan Construction & Environmental Ltd. 702, 702 Acheson Rd. 53016, Highway 60 Acheson, AB T7X 5A7 780-960-6966 www.mcel.ca Naft Canada Resources Ltd. 125, 315 - 24 Ave. S.W. Calgary, AB T2S 3E7 403-239-3003 New Paradigm Engineering Ltd. 10444 - 20 Ave. N.W. Edmonton, AB T6J 5A2 780-448-9195 www.newparadigm.ab.ca Nichols Environmental (Canada) Ltd. 17331 - 107 Ave. N.W. Edmonton, AB T5S 1E5 780-484-3377 www.nicholsenvironmental.com Nickpoint Environmental Services Inc. 110, 239 - 10 Ave. S.E. Calgary, AB T2G 0V9 403-260-6702 www.nickpoint.ca Nor-Alta Environmental Services Ltd. 157, 9768 - 170 St. Edmonton, AB T5T 5L4 780-486-4931 www.nor-alta.com Normcan 1800, 140 - 10 Ave. S.E. Calgary, AB T2G 0R1 403-233-7565 www.normcan.com North/South Consultants Inc. 83 Scurfield Blvd. Winnipeg, MB R3Y 1G4 204-284-3366 www.nscons.ca Outcrop Communications Ltd. 800, 4920 - 52 St. Yellowknife, NT X1A 3T1 867-766-6700 www.outcrop.com Pratum Resource Consulting Ltd. 2320 - 41 Ave. N.E. Calgary, AB T2E 6W8 403-717-0493 www.pratum.com Production Equipment Performance Reporting Inc. 700, 521 - 3 Ave. S.W. Calgary, AB T2P 3T3 403-966-7377 www.peprinc.com Remedx Remediation Services Inc. 305, 1550 - 5 St. S.W. Calgary, AB T2R 1K3 403-209-0004 www.remedx.net Roy Northern Environmental Ltd. Box 847 Fairview, AB T0H 1L0 780-835-2682 www.roynorthern.com Saskatchewan Research Council 125, 15 Innovation Blvd. Saskatoon, SK S7N 2X8 306-933-5400 www.src.sk.ca Scace Environmental Advisors Inc. 2416 Sandhurst Ave. S.W. Calgary, AB T3C 2M6 403-246-8303 Seaway Energy Services Inc. 1250, 700 - 4 Ave. S.W. Calgary, AB T2P 3J4 403-235-4486 www.seawayenergy.com

Whitland Consulting Inc. 2320 McIntyre St. Regina, SK S4P 2S2 306-757-8511 Williams Engineering Canada Inc. 2410, 10180 - 101 St. Edmonton, AB T5J 3S4 780-409-5300 www.williamsengineering.com Wotherspoon Environmental Inc. 104, 429 - 14 St. N.W. Calgary, AB T2N 2A3 403-269-4351 www.wenv.com

COMMUNICATIONS Applied Electronics Limited 5170-B Timberlea Blvd. Mississauga, ON L4W 2S5 905-625-4321 www.appliedelectronics.com Barnett Engineering Ltd. 215, 7710 - 5 St. S.E. Calgary, AB T2H 2L9 403-255-9544 www.barnett-engg.com Benchmark Data Solutions 5, 4001 - 19 St. N.E. Calgary, AB T2E 6X8 403-590-9101 www.benchmarkdata.ca BH Electronics Ltd. 179 Inverness Way S.E. Calgary, AB T2Z 2X6 403-278-2084 www.www3.telus.net/hendersb Canadian Centre for Energy Information 1600, 800 - 6 Ave. S.W. Calgary, AB T2P 3G3 403-263-7722 www.centreforenergy.com Carbon Controls Ltd. Bay 124, 11979 - 40 St. S.E. Calgary, AB T2Z 4M3 403-238-9944 www.carboncontrolsltd.com Cartel Energy Services Inc. Box 155 Beiseker, AB T0M 0G0 403-947-3334 www.cartelenergy.com Daily Oil Bulletin 2 Fl., 816 - 55 Ave. N.E. Calgary, AB T2E 6Y4 403-209-3500 www.dailyoilbulletin.com Energy Processing/Canada 500, 900 - 6 Ave. S.W. Calgary, AB T2P 3K2 403-263-6881 www.northernstar.ab.ca Firemaster Oilfield Services Inc. 4728 - 78A St. Close Red Deer, AB T4P 2J2 403-342-7500 www.firemaster.ca Focal Technologies Corp. 77 Frazee Ave. Dartmouth, NS B3B 1Z4 902-468-2263 www.moog.com/marine Glentel Wireless Solutions 8501 Commerce Crt. Burnaby, BC V5A 4N3 604-415-6500 www.glentel.com

Keneco Environmental Services (2000) Inc. 200, 717 - 7 Ave. S.W. Calgary, AB T2P 3H6 403-237-8137 www.kenecoenviro.com

Seguin Construction (1979) Ltd. 913 - 8 St. N.W., Bag 10 Slave Lake, AB T0G 2A0 780-849-3091 www.seguinconstruction.ca

Lehder Environmental Services 210, 704 Mara St. Point Edward, ON N7V 1X4 519-336-4101 www.lehder.com

Skypics 10420 Maplemont Rd. S.E. Calgary, AB T2J 1W4 403-271-5094 www.skypics.ca

GrahamChandler Writers Inc. 311, 317 - 19 Ave. S.W. Calgary, AB T2S 0E1 403-229-3309 www.grahamchandler.ca

Lorrnel Consultants 400 - 6 St. S.W. Calgary, AB T2P 1X2 403-233-0900 www.lorrnel.com

SLR Consulting 200, 1620 West 8 Ave. Vancouver, BC V6J 1V4 604-738-2500 www.slrconsulting.com

Guardian Telecom Inc. 7552 - 10 St. N.E. Calgary, AB T2E 8W1 403-258-3100 www.guardiantelecom.com

Marquis Alliance Energy Group Inc. 1800, 800 - 6 Ave. S.W. Calgary, AB T2P 3G3 403-264-1588 www.marquisalliance.com

Tansley Associates Environmental Sciences Bay 3, 1470 - 28 St. N.E. Calgary, AB T2A 7W6 403-569-8566 www.tansleyaes.com

Infosat Communications, Inc. 3130 - 114 Ave. S.E. Calgary, AB T2Z 3V6 403-543-8188 www.infosat.com

Mustagh Resources Ltd. 134 Hubman Landing Canmore, AB T1W 3L3 403-265-5255 www.mustagh.com Network Innovations Inc. 4424 Manilla Rd. S.E. Calgary, AB T2G 4B7 403-287-5000 www.networkinv.com Offshore/Onshore Technologies Association of Nova Scotia 202, 305 Cambridge Tower 1 Dartmouth, NS B3B 1T5 902-425-4774 www.otans.com Platinum Communications Corporation 280, 550 - 71 St. S.E. Calgary, AB T2H 0S6 403-301-4590 www.platinum.ca Priority Leasing Inc. 3615 - 9 St. S.E. Calgary, AB T2G 3C7 403-216-1930 www.priorityleasing.net Propane Canada 500, 900 - 6 Ave. S.W. Calgary, AB T2P 3K2 403-263-6881 www.northernstar.ab.ca Rig Locator 2 Fl., 816 - 55 Ave. N.E. Calgary, AB T2E 6Y4 403-209-3500 www.riglocator.ca Rigstar Communications Inc. 227 Exploration Ave. S.E. Calgary, AB T3S 0B6 403-243-0600 www.rigstar.ca Rittal Systems Ltd. 6485 Ordan Dr. Mississauga, ON L5T 1X2 905-795-0777 www.rittal.ca Rogers Communications Inc. 700-500 4 Ave S.W. Calgary, AB T2P 2V6 855-626-3282 www.rogersoilandgas.ca Strad Energy Services Ltd. 1200, 440 - 2 Ave. S.W. Calgary, AB T2P 5E9 403-232-6900 www.stradenergy.com Terra Management Inc. 611 - 71 Ave. S.E. Calgary, AB T2H 0S7 403-269-6090 www.terramanagement.com The Roughneck Buy & Sell 500, 900 - 6 Ave. S.W. Calgary, AB T2P 3K2 403-263-6881 www.northernstar.ab.ca Traverse LandGroup Ltd. 300, 1011 - 1 St. S.W. Calgary, AB T2R 1J2 403-265-1050 www.traverselandgroup.com Trinity Electronics Systems Ltd. 10708 - 181 St. Edmonton, AB T5S 1K8 780-489-3199 www.trinity-electronics.com Western Midland Communications Ltd. 8, 3601 - 19 St. N.E. Calgary, AB T2E 6S8 403-250-9433

Global Thermoelectric Bay 9, 3700 - 78 Ave. S.E. Calgary, AB T2C 2L8 403-236-5556 www.globalte.com

Software 3esi 200, 1601 Westmount Rd. N.W. Calgary, AB T2N 3M2 403-270-3270 www.3esi.com Alternate Solutions Inc. 565 Arvin Ave. Stoney Creek, ON L8E 5N7 905-643-8289 www.asifluid.com

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DIRECTORY AVEVA 2600, 144 - 4 Ave. S.W. Calgary, AB T2P 3N4 403-303-3335 www.aveva.com

GuildOne, Inc.

B & G Systems Canada 54, 850 Tapscott Rd. Scarborough, ON M1X 1N4 416-646-2885 www.b-gsystemscanada.com

Halliburton Group Canada

Brillium Corporation 12 Hamptons Pl. N.W. Calgary, AB T3A 6B8 403-614-3913 www.brillium.ca

Halliburton Landmark Software & Services

Canadian Discovery Ltd. 300, 706 - 7 Ave. S.W. Calgary, AB T2P 0Z1 403-269-3644 www.canadiandiscovery.com C-FER Technologies 200 Karl Clark Rd. Edmonton, AB T6N 1H2 780-450-3300 www.cfertech.com CGI Information Systems and Management Consultants Inc. 900, 800 - 5 Ave. S.W. Calgary, AB T2P 3T6 403-218-8300 www.cgi.com

901, 304 - 8 Ave. S.W. Calgary, AB T2P 1C2 403-355-8900 www.guild1.com 1600, 645 - 7 Ave. S.W. Calgary, AB T2P 4G8 403-231-9300 www.halliburton.com 1600, 645 - 7 Ave. S.W. Calgary, AB T2P 4G8 403-231-9300 IFP Technologies (Canada) Inc. 810, 744 - 4 Ave. S.W. Calgary, AB T2P 3T4 403-234-0342 www.ifp-canada.com IHS 200, 1331 Macleod Trl. S.E. Calgary, AB T2G 0K3 403-770-4646 www.ihs.com/energy Independent Data Services (Canada) Inc. 1700, 840 - 7 Ave. S.W. Calgary, AB T2P 3G2 403-209-1528 www.idsdatanet.com

CL Consultants Limited 3601A - 21 St. N.E. Calgary, AB T2E 6T5 403-250-3982 www.clconsultants.ca

Intergraph

Computer Modelling Group Ltd. 150, 3553 - 31 St. N.W. Calgary, AB T2L 2K7 403-531-1300 www.cmgl.ca

Jedex Equipment Ltd.

Copyseis Ltd. 6705 Fairmount Dr. S.E. Calgary, AB T2H 0X6 403-253-3425 www.copyseis.com

Micotan Software Company Ltd.

CriticalControl Solutions Inc. 1100, 840 - 7 Ave. S.W. Calgary, AB T2P 3G2 403-705-7500 www.criticalcontrol.com Datacon Core Imaging Inc. 2410F - 2 Ave. S.E. Calgary, AB T2E 6J9 403-270-9350 www.dataconimaging.com DGL Software Services Ltd. 200, 1040 - 7 Ave. S.W. Calgary, AB T2P 3G9 403-234-9202 Energy Navigator 2200, 101 - 6 Ave. S.W. Calgary, AB T2P 3P4 403-233-9400 www.energynavigator.com Enersight Corp. 320, 30 Springborough Blvd. SW Calgary, AB T3H 0N9 403-246-7447 www.enersight.com

2912 Memorial Dr. S.E. Calgary, AB T2A 7R9 403-569-5500 www.intergraph.ca 4, 4063 - 74 Ave. S.E. Calgary, AB T2C 2H9

403-910-1010 www.micotan.com M.W. Hagel Consulting Ltd. 18 Golden Key Estates Calgary, AB T3P 1A5 403-265-7800 www.optimus.ab.ca NEOTEC 430, 910 - 7 Ave. S.W. Calgary, AB T2P 3N8 403-277-6688 www.neotec.com Open Door Technology Inc. 108, 7710 - 5 St. S.E. Calgary, AB T2H 2L9 403-777-2410 www.opendoor.ca P2 Energy Solutions 2100, 639 - 5 Ave. S.W. Calgary, AB T2P 0M9 403-774-1000 www.p2energysolutions.com Pandell Technology Corp. 215, Bldg. B8- 2526, Battleford Ave. S.W. Calgary, AB T3E 7J4

Envirosoft Corporation 10-B, 1235 - 64 Ave. S.W. Calgary, AB T2H 2J7 403-225-8760 www.envirosoft.ca

403-571-1555 www.pdgm.com

Fekete Associates Inc. 2000, 540 - 5 Ave. S.W. Calgary, AB T2P 0M2 403-213-4200 www.fekete.com

403-263-2915 www.peloton.com

Fluid Life 9321 - 48 St. Edmonton, AB T6B 2R4 780-462-2400 www.fluidlife.com

403-225-4954 www.petris.com

Fugro Data Solutions Canada Inc. 4221 - 23B St. N.E. Calgary, AB T2E 7V9 403-250-1119 www.fugro-data.ca

403-216-5100 www.petromgt.com

Paradigm Geoservices Canada Ltd. 2110, 125 - 9 Ave. S.E. Calgary, AB T2G 0P6 Peloton Computer Enterprises Ltd. 450, 1000 - 7 Ave. S.W. Calgary, AB T2P 5L5 Petris Canada 805, 734 - 7 Ave. S.W. Calgary, AB T2P 3P8

Canadian Centre for Energy Information 1600, 800 - 6 Ave. S.W. Calgary, AB T2P 3G3 403-263-7722 www.centreforenergy.com

SustaiNet Software International Inc. 140, 887 Great Northern Way Vancouver, BC V5T 4T5 604-717-4327 www.sustainet.com Teknica Overseas Ltd. 2700, 350 - 7 Ave. S.W. Calgary, AB T2P 3N9 403-269-4386 www.teknicaltd.ca Trivision Geosystems Ltd. 314, 602 - 11 Ave. S.W. Calgary, AB T2R 1J8 403-777-9454 www.powerlogger.com XI Technologies 1700, 734 - 7 Ave. S.W. Calgary, AB T2P 3P8 403-517-0111 www.xitechnologies.com Zedi 902 - 11 Ave. S.W. Calgary, AB T2R 0E7 403-444-1100 www.zedi.ca

Canadian Energy Pipeline Association 200, 505 - 3 St. S.W. Calgary, AB T2P 3E6 403-221-8777 www.cepa.com Canadian Gas Association 809, 350 Sparks St. Ottawa, ON K1R 7S8 613-748-0057 www.cga.ca Canadian Heavy Oil Association 400, 500 - 5 Ave. S.W. Calgary, AB T2P 3L5 403-453-0178 www.choa.ab.ca Canadian Society for Unconventional Resources 420, 237 - 8 Ave. S.E. Calgary, AB T2G 5C3 403-233-9298 www.csur.com Canadian Society of Exploration Geophysicists 600, 640 - 8 Ave. S.W. Calgary, AB T2P 1G7 403-262-0015 www.cseg.ca Canadian Well Logging Society 2200, 700 - 2 St. S.W. Calgary, AB T2P 2W1 403-269-9366 www.cwls.org Environmental Services Association of Alberta (ESAA) 102, 2528 Elwood Dr. S.W. Edmonton, AB T6X 0A9 780-429-6363 www.esaa.org

RESEARCH Alberta Innovates-Technology Futures 250 Karl Clark Rd. Edmonton, AB T6N 1E4 780-450-5111 www.arc.ab.ca Alberta Sulphur Research Ltd. 6, 3535 Research Rd. N.W. Calgary, AB T2L 2K8 403-220-5346 www.chem.ucalgary.ca/asr Canadian Energy Research Institute 150, 3512 - 33 St. N.W. Calgary, AB T2L 2A6 403-282-1231 www.ceri.ca C-FER Technologies 200 Karl Clark Rd. Edmonton, AB T6N 1H2 780-450-3300 www.cfertech.com Geological Survey of Canada (Calgary) 3303 - 33 St. N.W. Calgary, AB T2L 2A7 403-292-7000 www.nrcan.gc.ca Petroleum Research Atlantic Canada 802, 10 Fort William Pl. St. John’s, NL A1C 1K4 709-738-7916 www.pr-ac.ca National Research Council Institute for Ocean Technology Box 12093 St. John’s, NL A1B 3T5 709-772-2479 www.http://iot-ito.nrc-cnrc.gc.ca The Arctic Institute of North America 2500 University Dr. N.W.Calgary, AB T2N 1N4 403-220-7515 www.arctic.ucalgary.ca

Offshore/Onshore Technologies Association of Nova Scotia 202, 305 Cambridge Tower 1 Dartmouth, NS B3B 1T5 902-425-4774 www.otans.com Petroleum Services Association of Canada 1150, 800 - 6 Ave. S.W. Calgary, AB T2P 3G3 403-264-4195 www.psac.ca Petroleum Technology Alliance Canada 400, 500 - 5 Ave. S.W. Calgary, AB T2P 3L5 403-218-7700 www.ptac.org Small Explorers and Producers Association of Canada 1060, 717 - 7 Ave. S.W. Calgary, AB T2P 0Z3 403-269-3454 www.sepac.ca Society of Petroleum Engineers 900, 521 - 3 Ave. S.W. Calgary, AB T2P 3T3 403-930-5454 www.spe.org/Canada The Association of Professional Engineers, and Geoscientists of Alberta 1500, 10060 Jasper Ave. N.W. Edmonton, AB T5J 4A2 780-426-3990 www.apega.ca The Association of Science and Engineering Technology Professionals of Alberta (ASET) 1630, 10020 - 101 A Ave. Edmonton, AB T5J 3G2 780-425-0626 www.aset.ab.ca

Petro Management Group Ltd. 401, 100 - 4 Ave. S.W. Calgary, AB T2P 3N2

GOVERNMENT

PHH Petroleum Consultants Ltd. 240, 1121 Centre St. N.W. Calgary, AB T2E 7K6 403-232-6822 www.phhpc.com Production Equipment Performance Reporting Inc. 700, 521 - 3 Ave. S.W. Calgary, AB T2P 3T3 403-966-7377 www.peprinc.com

Geomodeling Technology Corp. 1100, 665 - 8 St. S.W. Calgary, AB T2P 3K7 403-262-9172 www.geomodeling.com

Quest Computer Consultants

Glenbriar Technologies Inc. 1100, 736 - 8 Ave. S.W. Calgary, AB T2P 1H4 403-233-7300 www.glenbriar.com

RiskAdvisory, a division of SAS (Canada)

Schneider Electric, Telemetry & Remote SCADA Solutions 48 Steacie Dr. Kanata, ON K2K 2A9 613-591-1943 www.controlmicrosystems.com

210, 1011 - 1 St. S.W. Calgary, AB T2R 1J2

403-271-0701 www.pandell.com

geoLOGIC systems ltd. 900, 703 - 6 Ave. S.W. Calgary, AB T2P 0T9 403-262-1992 www.geologic.com

Canadian Association of Oilwell Drilling Contractors 800, 540 - 5 Ave. S.W. Calgary, AB T2P 0M2 403-264-4311 www.caodc.ca

403-531-8670 www.jedex.ca

Entero Corporation 500, 1040 - 7 Ave. S.W. Calgary, AB T2P 3G9 403-261-1820 www.entero.com

Gas & Oil Accounting (1988) Ltd. 200, 1040 - 7 Ave. S.W. Calgary, AB T2P 3G9 403-234-9202 www.dglsoftware.com

Schlumberger Information Solutions (SIS) 600, 322 - 11 Ave. S.W. Calgary, AB T2R 0C5 403-294-4300 www.slb.com/sis

145, 6815 - 8 St. N.E. Calgary, AB T2E 7H7 403-275-2775 www.geometrix.ca

ASSOCIATIONS Alberta Geological Survey 402, 4999 - 98 Ave. Edmonton, AB T6B 2X3 780-422-1927 www.ags.gov.ab.ca Canadian Association of Drilling Engineers 800, 540 - 5 Ave. S.W. Calgary, AB T2P 0M2 403-264-4311 www.cade.ca

970, 401 - 9 Ave. S.W. Calgary, AB T2P 3C5

Canadian Association of Geophysical Contractors 1045, 1015 - 4 St. S.W. Calgary, AB T2R 1J4

403-263-7475 www.riskadvisory.com

403-265-0045 www.cagc.ca

C A N A D I A N O I L PAT C H T E C H N O L O G Y G U I D E B O O K • V O L . 4 2 0 1 2

British Columbia Oil & Gas Commission 100, 10003 - 110 Ave. Fort St. John, BC V1J 6M7 250-261-5700 www.ogc.gov.bc.ca Energy Resources Conservation Board 1000, 250 - 5 St. S.W. Calgary, AB T2P 0R4 403-297-8311 www.ercb.ca National Energy Board 444 - 7 Ave. S.W. Calgary, AB T2P 0X8 403-292-4800 www.neb-one.gc.ca Saskatchewan Research Council 125, 15 Innovation Blvd. Saskatoon, SK S7N 2X8 306-933-5400 www.src.sk.ca

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