Manitoba Oil and Gas Review by DEL Communications Inc.

SERVING MANITOBA’S OIL & GAS INDUSTRY

MANITOBA Oil & Gas Review 2012

– Manitoba Oil Activity

PUBLICATION MAIL AGREEMENT #40934510

– Maps: The Lifeblood of the Oil and Gas Industry – Mounds, Landscapes and Place in Manitoba’s Oil Patch – Manitoba Looks to Join the Petroleum Registry of Alberta – Municipal Roadways Strain Under Increased Activity in Oil Exploration COMMUNITY PROFILES Birtle • Boissevain • Brandon • Deloraine • Estevan • Melita • Virden • Waskada

Manitoba and Area Locations Completions & Production Estevan, SK (306) 636-1640

Edmonton, AB (780) 465-0117 Toll Free 1-800-866-1176 Fishing Edmonton, AB (780) 440-2110 Toll Free 1-877-285-9206

Artificial Lift

Estevan, SK (306) 636-1640 Lloydminster, SK (780) 875-7333 Weyburn, SK (306) 842-1850 Leduc, AB Toll Free 1-888-611-7867

Wireline Systems

Nisku, AB (780) 955-3033 Toll Free1-877-955-3033

Drilling Systems

Repair Facility Nisku, AB (780) 955-2020

Upstream Chemicals

Virden, MB (204) 748-6858 Estevan, SK (306) 636-1640

Drill Bit Systems

Kindersley, SK (306) 463-2129

Estevan, SK (306) 636-1640

Lloydminster, SK (780) 875-4361

Kindersley, SK (306) 430-7000

Swift Current, SK (306) 773-0757

Edmonton, AB (780) 434-8800

Calgary, AB (403) 537-3850

PDC Hotline (780) 432-6920

Medicine Hat/Redcliff, AB (403) 526-3347

Red Deer, AB (403) 346-4765 Vermilion, AB (780) 581-8522

Pressure Pumping

Estevan, SK (306) 634-1572 Toll Free 1-888-349-2206 Lloydminster, SK (780) 875-6182 Toll Free 1-888-349-2217 Medicine Hat, AB (403) 548-6655 Toll Free 1-888-349-2209

Baker Hughes Head Office 1000 â&#x20AC;&#x201C; 401, 9 Avenue SW, Calgary, Alberta T2P 3C5

(403) 537-3400 Toll Free 1-877-285-9910 www.bakerhughes.com/canada

Industrial Chemicals Moose Jaw, SK (306) 693-4254

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Impact Oilfield Management Team

is a leading firm that specializes in supervision for the oilfield in all phases of construction, drilling and completion. What sets this firm apart from all the rest, is their desire to strive as a team.

Gregg Fischer and Steve Lobreau have both excelled in the oil and gas industry and have worked alongside each other since the early eighties. They started the Impact team in 2007 with a small core group of individuals and have grown the company into to a strong team. The Impact team has a wide variety of specialized expertise in the oil and gas industry with: • Multi-Leg Horizontals

• Source Water and Disposal Wells

• Mono-Bores

• Re-Entry Horizontals

• Underbalanced Horizontals

• Formation Stimulation

• Extended Reach Horizontals

• Liner Packer Placements

• Deep Verticals

• Hydro Fracing

• Air Drilling

• Wellsite Construction

• Shallow Gas

• Logistics and Liaisons

• Directional S-Curves

• Road Building

• Critical Sour Gas

• Pad Construction

• Core Exploration for Mining

• Reclamations

Steve Lobreau Owner

C: (306) 483-8546

Gregg Fischer Owner

Head Office: 304 7th Street West Box 1180 Carlyle SK Canada S0C 0R0 (306) 453-6248 www.impactoil.ca

C: (306) 577-8588

Let our team IMPACT your BOTTOM line

In This Issue... Overview Manitoba Oil Activity.....................................................................................................7 Manitoba Looks to Join the Petroleum Registry of Alberta..................................... 20 Southwest Manitoba Booming – Larry Maguire, MLA Arthur-Virden....................... 22 Message from Jeff McConnell, Mayor of Virden....................................................... 24 Surge Energy Inc. – Growing for Continues Success................................................. 45 Redvers & District Oil Showcase................................................................................. 48 Municipal Roadways Strain Under Increased Activity in Oil Exploration.............. 56 The Changing Face of Geosciences in the 21st Century............................................ 58 What’s in a Barrel of Oil...............................................................................................61 Clariant and Prairie Petro-Chem: Focused on Growth............................................. 62 Questions to Ask Before Hiring a Foreign Worker.................................................... 64 Mounds, Landscapes and Place in Manitoba’s Oil Patch........................................... 66 Expro – Stop the Guesswork........................................................................................ 66 Millennium Directional Services Ltd. – On the Leading Edge................................. 72 Altus Geomatics – Local Presence, Local Knowledge.................................................74 New Building Designs from Norseman Structures................................................... 77 Advanced Growth Group Works for You................................................................... 78 Maps: The Lifeblood of the Oil and Gas Industry..................................................... 80 Hodgson Custom Rolling Inc. – Expertise and Service............................................. 82 Freehold Mineral Rights.............................................................................................. 84 Get the Government’s Skin into the Game with SR&ED......................................... 86 First Energy – Focus, Commitment and Philanthropy ............................................ 88 Prairie Skills – Valuable Services................................................................................. 90 Atom-Jet Group – Leadership Through Innovation...................................................91 Outback Mats – The Strength of Family.................................................................... 94 Moving Forward with Impact Oilfield Management Team..................................... 95 Index to Advertisers..................................................................................................... 96

Community Profiles The Future Looks Bright in Virden............................................................................ 26 Brandon – Diversity and Opportunity....................................................................... 30 Welcome to Waskada................................................................................................... 34 Deloraine – Capture Your Lifetime Dreams Through Our Opportunities............. 28 Melita – Endless Opportunities....................................................................................41 Birtle – Scenery, Serenity and Safety........................................................................... 44 Boissevain – Embracing the Future............................................................................ 46 Estevan – A Wealth of Opportunity............................................................................ 52

Manitoba Oil & Gas Review 2012

Published by: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, MB R3L 0G5 www.delcommunications.com Publisher: David Langstaff Associate Publisher: Jason Stefanik Editor: Lyndon McLean lyndon@delcommunications.com Advertising Sales Manager: Dayna Oulion Advertising Sales: Jimmy Norris Mic Paterson Anthony Romeo Production services provided by: S.G. Bennett Marketing Services www.sgbennett.com Art Director / Design: Kathy Cable Advertising Art: REANNE DAWSON Dana Jensen Julie Weaver Cover Photo Courtesy of: ALTUS GEOMATICS

©Copyright 2012. Manitoba Oil & Gas Review. All rights reserved. The contents of this publication may not be reproduced by any means, in whole or in part, without the prior written consent of the publisher. While every effort has been made to ensure the accuracy of the information contained herein and the reliability of the source, the publisherin no way guarantees nor warrants the information and is not responsible for errors, omissions or statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees. Publications mail agreement #40934510 Return undeliverable Canadian addresses to: DEL Communications Inc. Suite 300, 6 Roslyn Road Winnipeg, Manitoba, Canada R3L 0G5 Email: david@delcommunications.com PRINTED IN CANADA 04 | 2012

DEL

Communications Inc.

Manitoba Oil Activity

2011 Oil Activity

2011 Highlights • 2011 was the busiest drilling year on record having 578 wells drilled, a 12.9% increase from the 512 wells drilled in 2010 and 66 wells over the previous record in 2010. • Manitoba established a new production record of 1,910,575 m3 (11.94 million barrels) during 2011, a 2% increase over the previous record established in 2010. • Four sales of Crown oil leases and exploration reservations covering 23,091 hectares generated $13.3 million in revenue to the province in 2011, an increase of 9.73% from 2010. • As of January 1, 2011, there were 13 oil fields and 174 non-confidential oil pools designated in the province.

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Manitoba Oil Activity

Crown Oil and Gas Dispositions Public offerings of Crown oil and gas rights are held under sealed tender in Manitoba throughout the year. Four Crown oil and gas sales were held in 2011. SALE DATE AVERAGE BONUS $/ha February 9, 2011 201.46 May 11, 2011 632.26 August 10, 2011 1,450.65 November 09, 2011 573.86 As of December 31, 2011, the total area of Crown oil and gas rights under disposition was 119,693.7 hectares; 115,789 hectares under lease and 3,904 hectares under exploration reservation. In 2011, the total area under disposition increased by 7.75% compared with 2010. Exploration reservations provide the holder with the exclusive right to drill for a 3-year term within the reservation area. Crown oil and gas leases provide the holder with the exclusive right to drill and produce oil and gas for a 5-year term within the lease area. Leases may be renewed for additional 5-year terms, or extended by application for one-year terms with additional rental penalties and drilling commitments. Non-productive leases are surrendered and available for lease by other interested parties. On December 31, 1982, deeper rights reversion provisions came into effect. Under these provisions, non-productive areas and rights below the producing formation revert to the Crown at the end of the first renewal of the lease term. These rights again become available for lease by other interested parties.

Freehold Mineral Ownerâ&#x20AC;&#x2122;s Leasing and Revenue Approximately 80% of the oil and gas rights in southwestern Manitoba are privately owned (freehold). Companies may negotiate leases with freehold mineral owners in areas of current interest where leases have expired or where oil and gas rights are not presently leased. Freehold mineral owners receive revenue from signing bonuses, delay rental payments and royalties when production is obtained. Freehold royalties may range from 12 1/2 to 20% of gross production sales value. It is estimated that gross royalties payable to freehold owners in 2010 were approximately $93 million (before payment of provincial and federal taxes). again become available for lease by other interested parties.

Manitoba Oil & Gas Review 2012

Manitoba Oil Activity

Geophysical Activity Eighteen geophysical programs were run in 2011 covering 3,385 km. There were seven 2D/Dyn, one 2D/Vib, five 3D/Dyn and four 3D/Vib and one 3D/Vib/ Dyn programs. The estimated cost of the programs was $8,645,025.16.

Explore Manitoba FIND OUT MORE ABOUT MANITOBA’S

• Low drilling density, under explored pre-Mississippian horizons

Manitoba Innovation, Energy and Mines – Petroleum Branch 360 – 1395 Ellice Avenue Winnipeg MB R3G 3P2

• Competitive oil and gas fiscal and regulatory regime • High producer netbacks • Multi-component drilling incentive program designed to enhance pay-out • Simple land tenure

E-mail: Toll-Free: Telephone: Fax: Website:

petroleum@gov.mb.ca 1-800-223-5215 204-945-6577 204-945-0586 www.manitoba.ca/petroleum

• Digital log and technical well file images • Comprehensive digital well database and shape files

Manitoba Oil & Gas Review 2012 MB Oil & Gas Review Ad 7’’ x 4 5/8’’

Manitoba Oil Activity

Drilling Activity In 2011, 673 drilling licenses were issued, resulting in 28 different companies drilling 578 wells, an increase of 12.7% from 2010. Eighteen drilling contractors drilled 1,068,753 metres of hole for an average well depth of 1,849 metres.

Drilling Activity by Area Field

TWP

RGE WPM

DalySinclair Waskada Virden Whitewater Pierson Kirkella Coulter Regent Birdtail

07-11 01-02 09-12 01 02-03 12 01-02 04-05 15-16

27-29 24-26 25-26 21 28-29 29 27 21-22 27

Drilling Activity by Area

Wells Drld.

Other areas Total % of Total Drilled * POW – Potential Oil Wells **Other – (WIW, WSW, SWD) Daly-Sinclair – Amalgamated in 2009

169 249 5 1 59 1 8 3 21 0 62 578

Development Drld. POW

Exploratory Drld. *POW

Total POW

Dry/ABD

**Other

161 245 5 0 54 1 8 3 18

157 243 4 0 53 1 8 3 18

8 4 0 1 5 0 0 0 3

8 3 0 0 5 0 0 0 3

165 246 4 0 58 1 8 3 21

3 3 1 1 1 0 0 0 0

1 0 0 0 0 0 0 0 0

38 533

38 525

24 45

17 36

55 561

7 16

0 1

– Waskada is the most active area in the province with a total of 249 wells drilled. Of this total 245 were development wells and 4 were drilled as Waskada – Waskada is the most active area in the province with a total of 249 wells drilled. Of this total 245 were development y. wells and 4 were drilled as exploratory. lair – Daly and Sinclair amalgamated 2010. In 2011 a total 169awells Of this total,Of 161 were wells and 8 were Daly Sinclair – Daly and Sinclairinamalgamated in there 2010. were In 2011 thereofwere total drilled. of 169 wells drilled. this total,development 161 were develexploratory. opment wells and 8 were drilled as exploratory. In 2011, Pierson there was total there of 59 was wells drilled. Of wells this total 54 were and 5 were exploratory. – Ina2011, a total of 59 drilled. Of thisdevelopment total 54 werewells development wellsdrilled and 5as were drilled as exploratory.

– Ina2011, total ofOf 21this welltotal, drilled. thisdevelopment total, 18 werewells development wells and 3as were drilled as exploratory. In 2011, Birdtail there was total there of 21 was welladrilled. 18 Of were and 3 were drilled exploratory. Other Areas – There were 62 wells drilled in other areas in 2011. Of these 62 wells, 38 were development, and 24 exploratory. eas - There were 62 wells drilled in other areas in 2011. Of these 62 wells, 38 were development, and 24 exploratory. 55 were completed as potenti 55 were completed as potential oil wells.

Manitoba Oil & Gas Review 2012

Manitoba Oil Activity

Non-Abandoned Wells 2011 Field Daly-Sinclair Waskada Virden Pierson Other Areas Whitewater Regent Kirkella Birdtail Tilston Souris Hartney Mountainside Lulu Lake Coulter Total

Active (1) Oil Producers 1990 813 648 413 87 61 58 46 36 26 23 10 6 2 4219

Active (2) Other Wells 168 3 123 4 145 5 73 6 3 0 4 1 7 11 553

Notes: (1) Wells classified as capable of oil production at year end that produced oil in 2011. Dual completions or commingled wells count as one well. (2) Includes Water Injection, Salt Water Disposal, Water Supply, Gas Injection and Other Wells.

Exploratory* Wells Drilled in Manitoba by Formation 1974-2011 (Geological Period of Deepest Formation Drilled)

Exploratory* Wells Drilled in Manitoba by Formation 1974-2011 Year

(Geological Period of Deepest Formation Drilled)

Cretaceous Jurassic Mississippian Devonian Silurian Ordovician Cambrian 1 -5 ----1 -4 1 -4 ---5 7 -----10 ------9 1 -1 ---6 1 -----8 1 1 ----21 6 -----72 5 ----1 48 9 1 --1 -32 2 -----49 2 -----30 13 -----13 19 1 --3 -9 6 ----1 2 3 1 ----15 ------1 ------2 3 ----2 9 2 -----11 5 -----9 4 -----14 14 ----2 19 21 1 3 --6 14 -----4 3 ----13 5 5 1 ---3 8 4 1 ----11 -----3 12 9 -----6 21 -----9 60 1 --3 -14 78 -1 -2 -14 28 -----6 44 ---0 1 1 31 0 0 0 0 26 20 37 0 0 0 0 6 10 29 0 0 0 11 58 529 488 8 9 0 * Exploratory - includes outpost, new field wildcat, new pool wildcat and deeper pool wildcat classifications. 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 TOTAL

Manitoba Oil & Gas Review 2012

Precambrian 12 1 --1 2 1 5 1 1 1 1 ------1 1 1 --2 -1 2 1 -1 --1 --0 0 37

Total 18 11 12 10 12 9 11 32 78 60 36 52 43 33 18 7 15 1 6 14 17 13 28 48 20 8 26 17 11 25 27 70 97 44 50 33 83 45 1140

OUTBACK

MATS oak & fir rig matting

Sales & Inquiries DOUG FENWICK

MURRAY TEMPLE

dfenwick@mymts.net

murraytemple@live.com

204-483-0775 2 0 4 - 5 5 2 - 6 5 9 7

contact

administration SHAWNA TEMPLE

204-483-0025 shawnadtemple@gmail.com

A proudly Manitoban company Box 490, Hartney, MB R0M 0X0

Manitoba Oil Activity Well License Transfers in 2011

Well License Transfers in 2011

ere were 184 well name changes resulting from well license transfers, corporate reorganizations, partnerships and amalgamations.

PREVIOUS OPERATOR Aspen Endeavour Resources Inc.

NEW OPERATOR Magellan Resources Ltd.

FIELD/AREA Daly Sinclair

NO. OF WELLS 11

Corinthian Energy Corp./ Breaker Resources Ltd.

Surge Energy Inc.

Waskada

Name Change

Lodgepole Energy Corp.

Neo Exploration Inc.

Daly Sinclair Whitewater Pierson Souris Hartney Broomhill

1 1 5 5 1

Transfer

Tundra Oil and Gas Partnership

Paradise Petroleums Ltd.

Daly Sinclair

Transfer

Molopo Energy Canada Ltd.

Legacy Oil + Gas Inc. Tundra Oil and Gas Partnership

66 10 3

Transfer

Alberta Oilsands Inc.

Pierson Coulter Daly Sinclair

IEL Enterprises Ltd.

Interwest Petroleums Ltd.

Daly Sinclair

Name Change

Tundra Oil and Gas Partnership

Interwest Petroleums Ltd.

Daly Sinclair

Transfer

Standard Land Company Inc.

Legacy Oil + Gas Inc.

East McAuley

Transfer

Crescent Point Energy Corp.

CPEC

Tilston

Name Change

Total

184

Manitoba Oil & Gas Review 2012

TYPE Transfer

Transfer

In 2011, there were 184 well name changes resulting from well license transfers, corporate reorganizations, partnerships and amalgamations.

Manitoba Oil Activity Manitoba’s Top 25 Oil Producers

Manitoba’s Top 25 Oil Producers

2011 Rank

Operator

% of Total

1 Tundra Oil & Gas Partnership 967028.5 43.8 2 EOG Resources Canada Inc. 408690.7 18.5 3 Penn West Petroleum 258825.4 11.7 4 Enerplus Corporation 176317.8 8 5 Canadian Natural Resources Limited 64007.4 2.9 6 ARC Resources Ltd. 56670.2 2.6 7 Reliable Energy Ltd. 48249.2 2.2 8 Legacy Oil & Gas Inc. 34753.7 1.6 9 Fairborne Energy Ltd. 32020 1.5 10 Red Beds Resources Limited 25024.5 1.1 11 Magellan Resources Ltd. 18504 0.8 12 Black Gold Energy Ltd. 17860 0.8 13 Kiwi Resources Ltd. 11799.3 0.5 14 Surge Energy Inc. 11753.8 0.5 15 Petrobakken Energy Ltd. 11671 0.5 16 Zargon Oil & Gas Ltd. 10080.6 0.5 17 T. Bird Oil Ltd. 8175.1 0.4 18 White North Energy Corp. 7704.5 0.3 19 Fort Calgary Resources Ltd. 7695.3 0.3 20 Cosens Drilling Limited 6585.9 0.3 21 Neo Exploration Inc. 6111.1 0.3 22 Antler River Resources Ltd. 5942.4 0.3 23 Interwest Petroleums Ltd. 5191.6 0.2 24 618555 Saskatchewan Ltd. 3898.3 0.2 25 Relative Resources Ltd. 3120.3 0.1 * Oil production figures may vary year to year due to well transfers and company mergers.

2010 m3 881783.1 339829 108241.4 205102.1 68237.1 57584.4 22104.6 39549.4 32536 5180.9 5972 7938.4 16246.3 878.3 13415 7092.1 3675.1 6186.8 1910.1 7881 7821 4828.3 5198.7 384.9 4497.8

Increase (decrease) % of Total 47.6 18.3 5.8 11.1 3.7 3.1 1.2 2.1 1.8 0.3 0.3 0.4 0.9 0 0.7 0.4 0.2 0.3 0.1 0.4 0.4 0.3 0.3 0 0.2

m3 85245.4 68861.7 150584 -28784.3 -4229.7 -914.2 26144.6 -4795.7 -516 19843.6 12532 9921.6 -4447 10875.5 -1744 2988.5 4500 1517.7 5785.2 -1295.1 -1709.9 1114.1 -7.1 3513.4 -1377.5

% Change 9.7 20.3 139.1 -14 -6.2 -1.6 118.3 -12.1 -1.6 383 209.8 125 -27.4 1238.2 -13 42.1 122.4 24.5 302.9 -16.4 -21.9 23.1 -0.1 912.8 -30.6

Box 352 Virden, MB R0M 2C0 Ph: (204) 748-2796 Fax: (204) 748-2295

CES, a proud member of Manitoba’s Energy Services Industry, is pleased to include Virden to its locations. Lampman Head Office: (306) 487-2281 www.carsonenergyservices.com

Final Copy MB OG 2012.indd 1

Supplying clients with a full range of services across Manitoba, Saskatchewan and Alberta, CES is excited to be part of the future of the industry.

22/03/2012 08:40:08 AM

Manitoba Oil & Gas Review 2012

Manitoba Oil Activity

Oil Prices Manitoba’s overall average crude oil selling price in 2011 increased from 2010 to $581.26/m3 (92.37 Cdn. per barrel). The average monthly price was lowest in February at $505.40/m3 (80.31 Cdn. per barrel) and highest in April at $664.75/m3 ($105.63 Cdn. per barrel).

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Manitoba Oil & Gas Review 2012

hotrodsoilfieldservices.com

Manitoba Oil Activity

Provincial Revenue from Oil Production During 2011, the Manitoba government collected approximately $44 million in revenues ($13.9 million in Crown oil royalties, $15.9 million in freehold oil taxes, and $13.7 million Crown lease sale bonuses, rentals and fees), resulting in a 17% increase from 2010. These figures do not include provincial revenue from corporate capital tax, sales tax, and corporate and individual income tax.

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Manitoba Oil Activity

Direct Revenues to Crown fromfrom Oil Exploration and Production in Manitoba* Direct Revenues to Crown 1951-2011 – 1951-2011 Oil Exploration and Production in Manitoba* Crown Royalties

Freehold Oil Tax

Year 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980

($000’s) 2 7 50 156 230 318 382 356 344 313 306 298 276 307 344 353 370 411 405 377 373 348 404 1,599 1,823 2,024 2,263 2,281 2,280 2,575

($000’s) --46 64 92 83 126 137 165 130 105 96 91 86 84 96 111 116 128 143 143 138 144 5,216 6,498 6,128 7,012 8,018 8,769 9,159

Crown Oil & Gas Rights Revenue ($000’s) 4 7 6 106 696 668 531 293 215 102 228 116 87 157 164 154 139 99 115 43 55 16 15 15 12 11 10 10 988 2,012

Miscellaneous

Total Direct

Fees

Revenue

($000’s) 5 9 8 24 10 18 -31 2 2 5 10 3 23 3 3 10 14 4 1 2 1 2 4 1 11 3 6 12 11

($000’s) 11 23 110 350 1,028 1,087 1,039 817 726 547 644 520 457 573 595 606 630 640 652 564 573 503 565 6,834 8,334 8,174 9,288 10,315 12,049 13,757

Crown Royalties

Freehold Oil Tax

Year 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

($000’s) 2,715 3,176 4,111 4,238 4,323 2,570 2,740 2,034 2,273 2,578 2,567 1,978 1,884 1,581 1,618 1,866 1,806 1,259 1,286 2,537 2,506 3,203 2,668 2,565 2,936 4,406 7,887 11,279 6,239 5,887 13,941

($000’s) 10,022 11,947 14,825 15,642 14,977 8,179 8,649 5,861 6,757 7,662 6,438 4,938 4,501 3,620 3,480 4,450 4,431 2,579 2,751 4,488 4,008 2,994 2,984 2,879 4,326 13,909 12,982 12,241 6,147 8,658 15,890

TOTAL

134,232

286,339

Crown Oil & Gas Rights Revenue

Miscellaneous

Total Direct

Fees

Revenue

($000’s) 1,846 1,292 1,347 2,466 4,522 1,195 855 639 364 266 213 209 1,005 1,415 2,860 2,024 6,335 752 764 783 1,272 444 431 1,491 6,269 2,646 897 5,454 6,011 12,482 13,708

($000’s) 12 28 59 67 90 53 55 40 37 35 37 21 41 44 43 51 55 30 18 21 28 60 44 41 82 128 140 62 94 163 511

($000’s) 14,595 16,443 20,342 22,413 23,912 11,997 12,299 8,574 9,431 10,541 9,255 7,146 7,431 6,660 8,001 8,391 12,627 4,620 4,819 7,829 7,814 6,701 6,127 6,976 13,613 21,089 21,907 29,036 18,492 27,191 44,050

89,331

2,428

512,333

* Does not include corporate capital tax, sales tax or corporate and individual income tax. All figures are based on calendar year receipts.

If you have comments or require more information, contact:

Manitoba Innovation, Energy and Mines, Petroleum Branch Unit 360 - 1395 Ellice Avenue, Winnipeg, MB R3G 3P2 Tel: (204) 945-6577 | Email: petroleum@gov.mb. u

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Manitoba Oil & Gas Review 2012

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alberta registry

Streamlining the Process: Manitoba Looks to Join the Petroleum Registry of Alberta

ince October 2002, the oil industry in Alberta has had access to the Petroleum Registry of Alberta, a web-based system providing services that facilitate fast, standardized, safe and accurate management and exchange of key volumetric, royalty and commercial information associated with the upstream petroleum sector. Saskatchewan has just gotten on board, and Manitoba has been in discussions with the Registry for several years and is currently in the assessment phase, required prior to joining the Registry. What is the Registry? The Registry is a joint strategic organization supporting Canada’s upstream oil and gas industry. It is represented by government (Alberta Department of Energy [DOE] and the Alberta Energy Resources Conservation Board [ERCB]), and industry (represented by the Canadian Association of Petroleum Producers [CAPP] and the Small Explorer and Producers Association of Canada [SEPAC]). On April 2, 2012, the three-year Registry Saskatchewan Inclusion Project was fully implemented, adding the Saskatchewan Ministry of Energy and Resources (SER) to the list of Registry stakeholders.

It operates under the overall guidance of a unique and proven Crown-industry governance structure. The Registry is jointly funded by government and industry stakeholders and resides in government. The Registry delivers: • Mission critical business processes and information required for assessing, levying, and collecting crown royalties for Alberta and Saskatchewan. • Essential information to support Alberta’s and Saskatchewan’s regulatory mandates and legislation. • Key services that facilitate important industry commercial activities, including partner-to-partner reporting, cheque exchange activities, financial analytics, compliance assurance and production accounting. The Registry is accessible to individuals with a legitimate business reason for using it, including operators, non-operating working interest owners, pipelines, shippers and other entities reporting to the DOE, ERCB or SER. The Registry frequently receives queries from other jurisdictions and organizations that have expressed an interest in the Registry. To assist those parties, the Registry has created a communication protocol, which can be

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Manitoba Oil & Gas Review 2012

By Lyndon McLean obtained by contacting the Registry Service Desk at petroleumregistry.energy@ gov.ab.ca. Importance and Benefits The petroleum industry is very complex. The Internet-based Registry has simplified and streamlined the collection, use, storage, and distribution of volumetric and royalty-related information reported to government and industry partners. The Registry grew out of a need to make regulatory compliance easier and more efficient. It does this by: • reducing data input errors and the need to correct and re-work processes; • reducing the time taken to advise industry of errors; • integrating data currently being reported separately to government and industry partners; and, • simplifying administration - the Registry cuts administrative costs by reducing or eliminating electronic data interchange and associated software translation packages costs, keying costs, paper chasing (photocopying, faxing, re-filing) costs, Crown invoice analysis costs and allocation administration costs. With the Registry, industry and the

alberta registry government can respond more effectively to the changing data requirements of a dynamic business environment (i.e. new requirements for government monitoring of emissions at wells and facilities). The Registry can also grow to meet future requirements in an efficient, costeffective manner. The Registry has impacted virtually every producing company in the oil and gas industry, changing the way they do business. By streamlining the way companies exchange information with the ERCB, the DOE, SER and industry partners, the Registry and associated re-engineered business processes provide a number of benefits to both government and the petroleum industry, including: • Reduced royalty over-payments, penalties, provisional assessments, and fees. The Registry has up-front validation. Operators are notified of submission errors immediately for on-line submissions and by the next morning for batch submissions, allowing for corrections to be done in a timely fashion. The Registry also uses a “factor” concept, assuring 100% completeness of allocation processes required for government and partner reporting. • Fewer amendments, reworks and reconciliation. A focus of the Registry is to ensure data submitted is as correct and complete as possible. This focus should significantly reduce the costly and time-consuming amendment, rework and reconciliation activity that existed before the Registry – a benefit to the operator submitting the data, industry partners and government. • Better, more reliable, accessible information. The Registry contains a suite of standardized reports and effective query functionality, making it an effective tool to access information, not just a means of inputting and retrieving information. • Standardization and improved effectiveness of input, reporting, and analytic processes. A significant amount of business process re-engineering has been built into the original design of

the Registry. The Registry continues to

According to the Petroleum Branch, the

add new functionality to respond to

Registry would enable industry to submit

ever-changing government and indus-

data using one source. While this would

try business practices. The result is the

be especially beneficial to interprovincial

enhancement and standardization of

producers, the Registry also has mecha-

many existing processes - industry-to-

nisms in place to allow any producer to

government,

submit data. As well, the Registry would

government-to-industry

and industry-to-industry.

enable industry to generate reports for their own use, and the reduction in data

Manitoba’s Interest

errors will benefit both producers and

So what does this mean to Manitoba?

the province. u

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MAGUIRE

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BOOMING T

he growth of the oil industry in Southwest Manitoba is phenomenal. While it has been in existence in our communities for more than 60 years, the expansion of the last five years has been tremendous. In fact, since drilling was able to safely resume after the receding f lood of 2011, the activity in Arthur-Virden is the greatest in Manitoba’s history. In 2011, Manitoba received $8.3 Million in oil royalties with greater benefits from the overall exploration investments and taxation of profiting individuals and corporations. While our agriculture industry recovers from the devastation of the worst

overland and river f looding in the Southwest’s history, the growth of the petroleum industry has provided employment and security, firstly for many of our local families, and now, for several new families and individuals—mainly young people—who are moving to our region to fill the labor void created by this growth. The spin-offs locally have spurred small businesses to stabilize and others to grasp an opportunity for investment in our community—from Boissevain to Birtle and everywhere in between. Accommodations in the form of hotels are being built and new housing develop-

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Manitoba Oil & Gas Review 2012

By Larry Maguire, MLA Arthur-Virden ment is taking place at a rapid pace in Arthur-Virden. The industry is also creating a boost for our recreational facilities, in terms of both increased activity and improvement. Some of our facilities are being completely rebuilt or replaced with much appreciated support from companies in the oil industry. Many fire departments are also being supported by industry with improvements and upgrades to their equipment, which benefits the whole region. Benefits can also be seen in the stabilization of our school population, the growing needs of our health care

MAGUIRE facilities and stable jobs. There is also a

“boom”, if I may cautiously use this

tape and barriers would help this in-

demonstrated need for upgrades to our

term (keeping production in perspec-

dustry and others f lourish throughout

infrastructure, provincially and munici-

tive – Manitoba produces about 40,000

our province. This vital oil and gas in-

pally.

barrels per day vs. over 2.2 million/day

dustry is supporting the province in

Companies have indicated their oil

in Alberta).

many ways. Now, in turn, the province

exploration investment will be in the

Since December 2010, the province

needs to do its part by committing to

billions over the next ten years, which

can’t keep up with requests for land use

infrastructure development. Road and

provides for solid and longer term

designations and permit applications

bridge repairs are needed for continued

planning for our municipalities and

to fulfill these growing needs. We need

growth in Arthur-Virden. It’s time the

businesses. New technology in drilling

the provincial government to play a

province stepped up to the plate and

and extraction, along with Enbridge’s

stronger role in the development of this

worked together with industry to en-

major pipeline upgrades and facilities

industry while listening to the needs

sure ongoing expansion and a vibrant

expansion at Cromer have spurred this

of the local landowners. Removing red

tomorrow for all Manitobans. u

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MESSAGE

Message from

JEFF McCONNELL Mayor of Virden

Hello from Virden, Manitoba’s Oil Capital!

ife has been very exciting in and around Virden in the

The oil industry has never been busier, and the oil-related

last few years. When I look at Virden Town Council’s

businesses are expanding all the time. The agriculture and oil

Vision Statement from 2008, I see that we have been

sectors contribute to the need for our many retail and service

working hard toward attaining the goals of recreation, culture

businesses. New businesses have sprouted on the highway and

and maintaining heritage. Our new multi-purpose recreation

in the downtown core, and we are ready to welcome more.

facility is proving its worth by hosting large banquet func-

Whether you are visiting or looking to stay for a while, we

tions, rodeo, concerts and regional/provincial sporting events.

think you will find Virden’s quality of life is second to none.

You definitely need to see this building. The historic Aud The-

On behalf of the council, staff and people of Virden and

ater just celebrated its 100th birthday and has undergone a

area, we hope you find exactly what you are looking for in

significant makeover to highlight its beauty and heritage.

Virden, where we have a proud heritage and strong future! u

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Manitoba Oil & Gas Review 2012

Serving Western Manitoba and Eastern Saskatchewan with ALL your test and pop tank needs Box 1, Cromer, MB, Canada Phone: 204.556.2272 • Fax: 204.556.2641

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VIRDEN

The Future Looks Bright

in Virden

he Town of Virden is located on the Trans-Canada Highway and on the mainline of the Canadian

Pacific Railway. While originally established in 1882 as a railway and agricultural service center, with the discovery of oil in the 1950s, Virden became known as Manitoba’s Oil Capital. Today Virden is a rapidly growing community of over 3,100 people, serving a market area in excess of 10,000 people. It is the largest community in western Manitoba and provides a full range of financial, retail, education and health services. The community’s economy is based on oilfield development and servicing, agriculture, chemical manufacturing, transportation and IT development. The community has seen significant and ongoing growth in the last five years. Building permit values are, on average, increasing. Recent growth includes new businesses in areas such as fast food, mo-

A T I N G

G I N

P R

P B C

Manitoba/Saskatchewan/Alberta

B L A

I E

Today Virden is a rapidly growing community of over 3,100 people, serving a market area in excess of 10,000 people.

(204) 748-2864 26

Manitoba Oil & Gas Review 2012

Prairie Blasting & Coating Ltd. Virden, MB • Churchbridge, SK Oilfield

• Tank Linings and Exteriors • External Pipeline Coatings • Plural Component Spray Units Potable Water Supply Coatings Structural Steel/Heavy Equipment P.O. Box 2109 , SE 23-10-26W, Virden, MB R0M 2C0 P.O. Box 444, Churchbridge, SK S0A 0M0 Fax: (204) 748-3020 email: prairieb@mts.net

VIRDEN

The Trans-Canada Highway area remains the fastest growing commercial corridor and this is expected to continue for the foreseeable future. tel accommodations, oil industry, senior

are being undertaken to assess and iden-

Virden is continuing to upgrade the

housing, professional services and trades.

tify the market demand, thereby support-

community’s infrastructure. A new water

New housing starts in two new subdivi-

ing the construction of new rental accom-

treatment plant was put on line in 2010

sions along with condominium develop-

modations. The largest demand in the

and has significant available capacity,

ments and life lease unit developments

rental market appears to be for multiple

which will accommodate Virden’s growth

have contributed significantly to the

independent living units, such as side-by-

for the foreseeable future. In addition, the

community’s housing market in the last

side units, which are more affordable and

community has further expanded water

two to three years. In 2011, the comple-

suitable for young families.

and sewer services to the commercial cor-

tion of a 40-unit senior housing complex

The Trans-Canada Highway area re-

ridor along the Trans-Canada Highway.

helped reduce the housing pressure in

mains the fastest growing commercial

Further projected growth in the indus-

that market segment. As predicted, it has

corridor and this is expected to continue

trial areas has begun and is anticipated to

not resolved the concern.

for the foreseeable future. But in 2012,

continue through the coming years.

The real estate market has remained

significant growth is starting to be seen

Anticipating the community’s cur-

strong, guaranteeing residential housing

in the industrial and commercial sectors

rent requirements and future growth

and business equity. While the existing

in other areas, primarily due to resource

demands, a study has been completed to

rental market is extremely tight, studies

extraction activity.

assess the various options to increase the

Virden Head Office 204-748-3944

We cover Liabilities & Property/Equipment for Oilfield related exposures such as: • Service Companies • Construction Companies • Oil Production Companies • Maintenance • Contract Operators • Oilfield Welders • Oilfield Consultants

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For all your farm parts & equipment needs Manager/Sales:

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VIRDEN

Virden has seen significant growth due to the resource extraction sector and is committed to long-term planning to build a secure and sustainable future for all sectors. capacity of the communityâ&#x20AC;&#x2122;s wastewater

growth will be a primary deciding factor

the existing swimming pool. The unique

treatment facility. The study was undertak-

and position the community for expanded

energy use system allows for total climate

en with the understanding that future in-

commercial and industrial growth.

control of all areas, through out the year.

creasing regulatory requirements will dic-

In the summer of 2011, the community

Virden has seen significant growth

tate the need for a flexible and expandable

opened its multi-use recreation facility.

due to the resource extraction sector and

system in order to meet continuing new

The facility incorporates a 1,200 seat ice

is committed to long-term planning to

standards. As with the water treatment

arena with a walking track, fitness facil-

build a secure and sustainable future for

plant expansion, capability for future

ity, a community hall and is attached to

all sectors. u

Industrial Parks New Residential Subdivisions Unique Heritage Buildings and Districts Local and Regional Recreational Opportunities

www.virden.ca | 204-748-2440 | email: info@virden.ca Please support the advertisers who help make this publication possible. 28

Manitoba Oil & Gas Review 2012

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BRANDON

Brandon – Diversity and Opportunity By Sandy Trudel, Director of Economic Development, City of Brandon 18th Street commercial area.

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Manitoba Oil & Gas Review 2012

randon is ideally located in southwest Manitoba as a centre for servicing Manitoba’s oil and gas industry. It benefits from many positive locational factors, including: • Excellent transportation infrastructure for both east-west and north-south movement of raw materials in and finished product out including trucking/ logistics companies, the Trans-Canada Highway, both national railways and excellent regional trunk highways; • Ample supplies of very affordable electricity, natural gas, water and other inputs; • Ample wastewater treatment capacity; • A reliable skilled and semi-skilled workforce. Trican Well Service Ltd., a Calgarybased pressure pumping company with operations on four continents, will be opening a regional base in Brandon in spring 2012. Trican indicated setting up an office in Brandon made sense due to the increased oil extraction that is occurring in the eastern portion of Manitoba’s oil patch. Proximity to the oil field activity is important to Trican and a natural advantage for Brandon. From its inception, Brandon was – and today remains – the education, health, retail, service and entertainment centre for the southwest Manitoba region’s 180,000 inhabitants and an important contributor to the Manitoba economy. Brandon’s diverse economic base has enabled the city to carve out a long-standing reputation as a city that offers both a stable economy and room and opportunity for businesses to compete profitably in the global marketplace.

BRANDON

From left to right: Brandon neighbourhood; local park; and view of Brandon neighbourhood.

As Manitoba’s second largest city and the only Canadian city with a population less than 50,000 with a university, community college and an emergency services college, Brandon boasts amenities, services, and educational and employment opportunities generally found in much larger centres. Not only does Brandon offer close proximity to oil patch activity; it provides the quality of life elements that ensure a stable and content labour force. Located in the southwest corner of Manitoba, Brandon is a short drive from Manitoba’s abundant natural landscapes, wildlife, rivers, lakes, parks and forests. It’s near some of Canada’s most amazing natural attractions, including the Spirit Sands, a prairie desert phenomenon, and the spectacular Riding Mountain National Park. Brandon is located at the junction of major highways and rail services providing access to Eastern and Western Canada, Northern Manitoba and the

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BRANDON

Water activities along the Assiniboine River.

The city is home to diverse art and cultural offerings, featuring visual exhibits, drama and musical performances in a variety of genres. A diverse offering of concerts and performances are available at the Western Manitoba Centennial Auditorium.

United States. Brandon lies 197 kilome-

quality of life for its residents.

Brandon is a sports-oriented city full of

tres west of Winnipeg and Manitoba’s

As a medical referral centre for South-

top-notch recreation facilities: multiple

international airport, 121 kilometres east

western Manitoba, the medical services

golf courses, skiing, soccer, equestrian

of the Saskatchewan border and 100 kilo-

available in Brandon are extensive. For

sports and everything in between. Bran-

metres north of the United States border.

non-teaching

Manitoba,

don’s many indoor fitness centres offer a

A low crime rate, affordable housing,

Brandon Regional Health Centre offers

full range of services and equipment, as

educational excellence, and abundant

the widest range of specialized services.

well as personalized trainers. Several rac-

recreation and cultural opportunities

There are over 100 physicians and special-

quet ball and squash courts, an outdoor

create an enviable quality of life for our

ists with admitting privileges at the health

running track and numerous indoor and

residents. Money Sense© magazine has

centre and several large family practice

outdoor swimming pools, including a

ranked Brandon #7 as one of the best

medical clinics and smaller clinics offer-

waterslide and an Olympic-sized pool,

places to live in Canada and #1 in Western

ing walk-in service located throughout

are readily available in the city. For those

Canada the past two years. Recent rank-

the city.

who are a little more adventurous, there

ings from Western Investors as one of the

Brandon’s colleges and university at-

are a variety of other challenging recre-

top 10 western Canada communities for

tract faculty and students from around

ational opportunities offered in Brandon:

investors, and the Canadian Federation

the globe by offering one-of-a-kind educa-

pilot lessons, parachute jumping and rock

of Independent Business and Financial

tion opportunities such as Applied Disas-

climbing walls, to name a few.

Post’s positioning Brandon as 37th out of

ter and Emergency Studies, Wind Turbine

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kilometres through the heart of Brandon

Brandon offers two key business success

grams and Brandon University’s highly

and 40 kilometres of paved walking and

factors: positive business climate and

acclaimed Conservatory of Music.

hiking trails, the city is an oasis for out-

hospitals

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BRANDON

From left to right: Enjoying a Brandon Wheat Kings game; Clancy’s Eatery & Drinkery, Downtown Brandon; and Great Western Roadhouse.

door enthusiasts. Hiking and cycling are

riety of genres. A diverse offering of con-

with many people using the ceramic facil-

extremely popular in Brandon and the

certs and performances are available at

ity as a studio for their own hobby or art

nearby Brandon Hills. The city offers a

the Western Manitoba Centennial Audi-

practice.

torium. The Art Gallery of Southwestern

At the end of the day, one of Brandon’s

Manitoba features national and interna-

greatest assets is the balance between

tional exhibitions and works by regional

profit and personal reward. Additional

The city is home to diverse art and cul-

artists and is home to a comprehensive

information on Brandon can be found

tural offerings, featuring visual exhibits,

art school facility. Their ceramic facility is

at www.economicdevelopmentbrandon.

drama and musical performances in a va-

unmatched by any art gallery in Canada,

com or www.tourism.brandon.com u

nice mix of man-made and natural scenic trails perfect for walking, hiking, biking, rollerblading, horseback riding, skiing and snowshoeing.

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Manitoba Oil & Gas Review 2012

WASKADA

Welcome to

WASKADA

he Village of Waskada is located at the junction of PTH 251 & 452. We are in the south-west corner of MB, six and a half miles north of the international boundary and 25 miles east of the Saskatchewan boundary. Waskada is in the Rural Municipality of Brenda, which also includes the communities of Goodlands, Medora and Napinka. Waskada is the tiniest incorporated municipality in Manitoba and became incorporated in 1949. Waskada has a population of just under 200 friendly people. This area has been a progressive farming district for many years. Many families have benefitted from this way of life. The oil boom has caused many changes in the village in the last few years. Highways are busy, houses have been rented and businesses are full of activity. The citizens of Waskada are very involved in their community and show

great community spirit and pride. Waskada is a safe and friendly community and welcomes new people to their community.

• Groceries • Oilfield supplies • Giftware • Financial institution • Hotel and restaurant

Community Highlights • Modern educational facilities (K-12 School) - “Striving for Excellence” • New daycare facilities • Public library • Indoor arena • Curling rink • Golf course • Mall in the Hall • Farmers’ market • Special events throughout the year

• Insurance • Churches • Library • Fitness centre • Grocery store • Hair salons • Senior centre and outreach services • I Net Link, regional cable & MTS, including high-speed Internet • Modern water and sewer facilities • Community well • Recycling depot

Services and Amenities Waskada is well-equipped to serve the many needs of its residents. All of these services are open regular hours and will do their utmost to fulfill your requests. • Post office

• Car wash • Veterinarian Education Waskada provides educational opportunities to all school-aged children. There are 96 students in K-12, with eight dedicated teachers who foster the following principles: • Fostering opportunities for all • Everyone striving for personal excel-

Experience, leadership, performance.

lence • Viewing education as a life-long process • Involving students, parents, teachers, support staff, seniors, business, and industry in the education of our children Options such as web-based courses, in-

Operations offices: Nisku Alberta

Manitoba Oil & Gas Review 2012

Carlyle Saskatchewan

CanElson Drilling Inc.

dependent studies and IITV are offered

Suite 700, 808 - 4th Avenue SW, Calgary, AB, Canada T2P 3E8 Phone 403.266.3922 Fax 403.266.3968

to fulfill the Manitoba curriculum. Extra-

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Within the school building is a brand

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curricular events such as volleyball, badminton, basketball and drama are offered to the students. new daycare centre that caters to clientele from a wide rural area. The staff is very

WASKADA

caring and provide an essential service

Whether it’s an indoor or outdoor ac-

to the community. Nursery School is

tivity, there are many choices available.

also an option through the daycare facil-

Hunting in the fall, curling, hockey and

ity.

snowmobiling in the winter and golf

The community benefits from a pub-

in the summer keep the residents busy

lic library located within the school.

throughout the year. • Golf course (6-hole)

Tourism and Culture

• Campground

Our small community offers a vari-

• Waskada Memorial Park

ety of activities for your leisure time.

• Fishing and hunting

Expanded new shop at

116 Supreme Street

Sales

• New & Remanufactured Wellhead Equipment & Valves

Services

• Wellhead & Frac Tree Installations

Rentals

• Frac Trees, 3”, 4” & 5”, 10,000# • Gate Valves, 2”, 3”, 4”, 5” & 7”, 2,000# - 10,000# • Miscellaneous wellhead equipment

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WASKADA

• Historic sites

Wire and cable Specialists Since 1978 Texcan offers specialized cables that are designed to withstand the harsh environments oil and gas companies operate in.

• Waskada Museum and Blacksmith Shop • Bottineau Winter Park (Ski Hill) 35 minutes away • Lake Stanley 25 kilometres from Waskada • Groomed snowmobile trails Economic Activity The Waskada area has welcomed the oil boom in the past couple of years, and numerous oil companies are working in the

We provide: • • • • •

Extensive Stock Cable Management Technical Assistance 24/7 Emergency Shipping State-of-the-Art Distribution

area. Many new wells have been drilled, with plans for many more to come. There have been new buildings constructed because of the presence of oil, and housing is in high demand, with very few vacancies in the area. The village maintains a progressive attitude and has created a new subdivision. Many opportunities are available for

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investment in the community. Driving Time From the Village of Waskada and Area: Deloraine, MB - 20 minutes Melita, MB - 20 minutes Brandon, MB - 1 hour, 30 minutes

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Winnipeg, MB - 3 hours, 15 minutes Bottineau, ND - 35 minutes Regina, SK - 4 hours Minot, ND - 1 hour, 30 minutes For more information about relocation or business development in Waskada, please contact the RM Office at 204-673-2401 or email waskadan@mymts.net. u

Manitoba Oil & Gas Review 2012

in Saskatchewan and Manitoba

DELORAINE

DELORAINE – Capture Your Lifetime Dreams Through Our Opportunities

By Shirley Bell, Economic Development Officer, Deloraine Community Development Corporation by the surrounding countryside. Only

– Region-leading health care

70 miles – about one hour – from Bran-

– Local government committed to sus-

don, the region’s core urban centre, and 15 minutes from the Canada-U.S. Border, Deloraine offers a central location to a

Overview Deloraine proves that the essence of prairie life and modern living can be combined to produce a community for the sustainable future. Located at the heart of Manitoba’s southwest corner, Deloraine, in the RM

– Modern and competitive educational facilities

variety of business opportunities, both

– Unique shopping experiences

regional and international.

– Affordable housing options

Community pride is showcased with its

– Comprehensive recreation facilities:

“Flags of the World” signature attraction.

• Skating arena

Spread throughout the community, the

• Curling rink

f lags – which represent the entire world’s

• Outdoor swimming pool

countries – were raised in celebration of

• Golf course

the millennium and are an excellent sym-

• Recreations parks and green areas

bolic icon of Deloraine’s diverse cultural

• Racing track

heritage.

• Movie theatre

Deloraine and area is proud to offer one of the most varied and affordable

Education

residential housing options in the region.

The Deloraine School addition was

Whether it is a peaceful, idyllic lakeshore

completed in 2006, and as one of Mani-

of Winchester, is a vibrant, safe, family-

cottage, the wide-open space that acreage

toba’s most modern education facilities,

orientated rural community nestled at

offers or modern condo living, Deloraine

it provides a healthy and safe learning

the foot of the Turtle Mountains. With

has it all.

environment. The school offers classes

population of 1,500 people, its pictur-

for students from kindergarten to Grade

esque small-town charm is only enhanced

Community Highlights

12. This facility has small student-driven

by the open spaces, natural beauty and

Deloraine strives to meet all its resi-

classes with a wide assortment of pro-

unlimited recreational options offered

dents’ needs – and more.

grams to produce a comprehensive and

RURAL MUNICIPALITY

of Winchester

129 Broadway Street North Box 387 Deloraine, MB R0M 0M0 Ph: (204) 747-2572 Fax: (204) 747-2883 E-mail: rmwin@mts.net

tainability

Manitoba Oil & Gas Review 2012

PIERSON WELDING LTD. Pierson, Manitoba

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DELORAINE

progressive school curriculum for all.

an agricultural focus, hardware, lumber

Recreation, Tourism and Culture

It also offers a wide variety of extracur-

supplies, financial institutions, insurance

Deloraine’s modern, diverse recre-

ricular activities and programs, includ-

agents, financial planning services, to

ational facilities provide programming

ing music, drama, choir, chess and art.

name a few – combined with a thriving

for all. The arena is the proud home to

It also accommodates a variety of sports

trades sector – ensure that our economy

the Deloraine Royals Hockey Club. It is

programs that include soccer, volleyball,

remains one of the strongest and diversi-

also the base of a strong competitive fig-

basketball, hockey and badminton, to

fied in the area. Deloraine’s small-town

ure skating club and, of course, becomes

market area offers a special shopping

the hub of the community during the

experience and includes several regional

winter months. A rare recreation com-

leaders with modern facilities and prod-

modity within the Prairies – Bottineau

ucts, while still offering its signature: a

Winter Park, only 20 minutes away – pro-

small-town charm and individual cus-

vides a winter outlet for downhill skiers

tomer care.

and snowboard enthusiasts alike. In ad-

The community’s most distinctive

dition, baseball, a swimming pool, 4-H

amenity is its rural paved airport – one

club, dance, music and art programs, a

of the few located in Manitoba – with

rifle club, snowmobiling, curling, horse-

the capacity for recreational use, as well

manship, youth groups and other pro-

as larger commercial and medical emer-

gramming opportunities are available for

gency aircraft.

everyone.

name a few. Deloraine School continues to produce some of the region’s highest academic results with the large majority of graduating students continuing to third-level education. Providing Educational Opportunities for Everyone WEE R SPECIAL Nursery School, located within the kindergarten suite at Deloraine School, provides pre-school education for children three to four years old. Campus and Prairie Skills Inc. offers continuing education. By taking advantage of technology such as the Internet, university/college courses are available within the comfort of rural communities. Services and Amenities Our excellent healthcare services boast all the amenities expected in larger ur-

DiscoverDeloraine A place for all seasons

Lake Metigoshe

ban centres, ranging from family clinics to emergency services, including acute care. With the addition of a Community Cancer Care Program, which provides regional chemotherapy treatment, Deloraine has developed into the region’s leading healthcare provider. Extended services are also provided in the personal care home and lodges. Deloraine’s business community provides essential services and more to the

A destination for everyone! Flying the Flags of the World For more information contact: Deloraine/ Winchester Tourism (204) 747-3668 www.deloraine.org towndel2@mts.net

regional residents. Although it retains Manitoba Oil & Gas Review 2012

DELORAINE

By offering all the resources, services and amenities of a larger centre – yet providing the peace, quiet, security and sense of community for which rural Manitoba has become famous – Deloraine can be the place you call home. Added to this are community library

The tourism and leisure markets have-

services and a year-round movie theatre

become the region’s fastest growing econ-

that doubles as a cultural showcase for festivals, concerts and much more. Delo-

omies over the last number of years. Offering continuous four-season activities such as hunting, fishing and bird watch-

raine is a place where you will never get

ing, along with numerous recreation

bored.

trails, the opportunities to enjoy our

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Manitoba Oil & Gas Review 2012

unique rural landscape are endless. Lakes provide many water sport activities, including boating, water skiing and tubing, jet skiing, canoeing and swimming. Located just 15 minutes from the Canada-U.S. Border, Lake Metigoshe is a recreation wonderland equipped for all seasons. With recent developments, the lake has become more than just a relaxing summer cottage destination; it’s a yearround rural community. In summer, as the population swells, this poplar destination for local residents and visitors alike offers a vast array of water sports and lake activities. During the winter months, the focus turns to snowmobiling, ice fishing and cross-country skiing. Economic Activities Agricultural businesses and services remain the cornerstone of Deloraine’s economy. The combination of local enterprising, innovative individuals, rich natural resources and strong infrastructure has resulted in an economy with varied diversification and many valueadded opportunities. The recent natural resource exploration and development adds yet another dimension to our growing local economy. The Town of Deloraine and RM of Winchester, through the Deloraine Community Development Corporation, have committed long-term resources to creating and attracting new industries to southwest Manitoba, with a goal of proactively developing Deloraine as a leading sustainable community. By offering all the resources, services and amenities of a larger centre – yet providing the peace, quiet, security and sense of community for which rural Manitoba has become famous – Deloraine can be the place you call home.

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MELITA

Endless Opportunities

elcome to Melita, where endless opportunities are waiting for you and your family! You can experience, wide open spaces, rolling crops, fresh air and friendly people. With a population of over 1,000, Melita offers an extraordinary assortment of services, employment opportunities, educational programs, recreation, tourism and cultural experiences. Melita is located at the junction of Highways 3 and 83, southwest of Brandon. The USA border is only 33 kilometres south. From Melita and area (kilometres) Brandon, MB – 134 Winnipeg, MB – 341 Regina, SK – 345 Minot, ND, USA – 139 Community Highlights • Educational Facilities • Hospital and Clinic • Indoor and Outdoor Areas • Curling Rink • Golf Course • New Outdoor Pool • New Water Treatment Plant and water source

• Events and Activities • Recreational Programming • New Commercial Lots Available • Shopping and Entertainment • Affordable Housing and Rental Properties All the services of a large center, in a safe friendly family environment! Economic Activity Our area is a modern, progressive centre in an area producing grain, livestock and resource extraction. Tourism and recreation, health and education play an ever increasing role in the community. The Town of Melita and surrounding rural municipalities are aggressively promoting the community as an alternative location for industry in Manitoba. Our area provides business and industry with the strategic location they will need to stay competitive and prosperous. Our residential area is booming with newly built single-family dwellings and developments of multi-family lodging. Vacant lots are scarce, but the local Economic Development Corporation is actively sourcing developers for three potential residential developments. The

local housing market is currently very active and strong. The newly developed commercial area is currently at capacity. In recent months, new locations have been earmarked for commercial and residential development. The community has a dire need for accommodations as the oil sector saturates our community. The EDC is currently working on attracting an accommodation facility as well as making much-needed upgrades to our community campground. Education Melita provides educational opportunities for all school-aged children. Melita School has classes for children in kindergarten up to grade 12. This facility offers a wide assortment of programs that are part of the school curriculum, as well as a variety of extracurricular activities and programs, such as music and sports. In order to prepare younger children for school, Melita manages a nursery school program for three- and four-year olds. This program is conveniently located within the Melita School. Manitoba Oil & Gas Review 2012

MELITA Services & Amenities Melita has a hospital with a personal care unit adjacent, presently staffed by full-time physicians. The health complex also provides space for community health, public health, mental health, meals on wheels and congregate meals. The Melita Clinic is adjacent to the hospital. You will also find alternative health care within the community, such as a chiropractor, massage therapy and a pharmacy. Melita offers all the services your family will be looking for in a new community and everything your lifestyle needs. A few services offered are: • Groceries • Oilfeld Supplies • Furniture • Household items • Hardware • Giftware • Financial Institutions • Accountants

• Automobile care: Dealership, auto body, tires, mechanical, parts • Restaurants • Electronics • News and Printing • Insurance • Real estate agencies • Bakery • Churches • Library • Convenience Store • Clothing • Hair Salons • Hotel/Motel Recreation Tourism and Culture Melita is the hot spot for summer! Everything is available right here – you and your family don’t need to leave the community to take part in the best summer activities for Southwest Manitoba. • Outdoor Swimming Pool • 9-hole Golf Course

All the services and amenities your lifestyle needs!

• Baseball Diamonds • Campground • Fishing & Hunting • Playgrounds • Parks and Walking Trails • Historic Sites • Museums • Bird Watching As the weather turns to snow and ice, the community of Melita turns into a winter extravaganza. There is always something to do for families on a cold winter night. The arena fills with laughing children and cheering parents. The local bowling alley is thunderous with birthday parties, leagues and tournaments. • Indoor Arena • Outdoor Arena • Curling Club • Bowling Alley • Ice Fishing • Snowmobiling • Cross-Country Skiing

R.T. Jebb Electric • OILFIELD ELECTRICAL • INSTRUMENTATION • AUTOMATION • SCADA

Melita & District Chamber of Commerce welcomes you to Melita. Where endless opportunities are waiting for you and your family! Brown Accounting & Investments Circle M Furniture Ltd. Delmar’s Hardware Ltd. - Rona McMechan Plumbing & Heating Not Just Joe Souris Valley Processors

Southwest Chevrolet Stewarts Lumber & Supply Super Thrifty Pharmacy Town Tire & Auto Valley Collision

www.melitamb.ca 42

Manitoba Oil & Gas Review 2012

RON ROSSOW Supervisor Alida/Virden Areas

Chris Jebb Phone: (204) 845-2315 Fax: (204) 845-2028 Cell: (204) 748-5847 Email: jebbelec@mymts.net

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MELITA

Everything is available right here – you and your family don’t need to leave the community to take part in the best summer activities for Southwest Manitoba.

Throughout the year our local recreation director and other community groups are organizing activities and events for everyone! • Concerts • Community Drama • Karate • Dance Classes • Computer course

• Swimming Lessons • Skating Lessons • Hockey Clinics • Fitness Center • Movie Theatre • Indoor Walking • Health and Wellness clinics • Pancake Breakfasts • Fall Suppers

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For more information about relocation or business developments in Melita, please contact: Economic Development Office at (204) 522-2490 or e-mail: melitaedo@mts.net The Town of Melita at (204) 522-3413 or e-mail: tofmel@mts.net www.melitamb.ca. u

P.O. Box 58 • Pierson, MB • R0M 1S0

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Manitoba Oil & Gas Review 2012

BIRTLE

Scenery, Serenity and Safety

This scenic valley

he RM of Birtle’s first experi-

seen on our roads. Not much changed un-

ence with oil production came

til 2010, when Tundra Gas & Oil started

in the mid 1990s. Approximate-

drilling horizontal oil wells. The intent by

ly 27 vertical wells were drilled, a bat-

fall of 2011 is to have roughly 18 horizon-

tery was created and oil tankers were

tal wells producing and the creation of a

community with its beautiful rolling landscapes beckons you to stay and make Birtle more than just a place to visit. new battery. The 18 wells are located in the southwest corner of the RM Birtle and south east of RM of Ellice. There will be some new roads built and other roads will need upgrading. Local residents will no doubt see far more traffic than in the past. Due to the level of activity, there promises to be new job opportunities available here. Birtle now has the potential to be

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Manitoba Oil & Gas Review 2012

the next hot spot in Manitoba for oil production, and the community is hoping to attract service industries for the oil sector. Extremely reasonable housing prices in a beautiful location is one of the many reasons to make Birtle your home. It is located on Highway 42 & 83, 322 kilometres west of Winnipeg and 150 kilometres northwest of Brandon, near the Saskatchewan border. This scenic valley community with its beautiful rolling landscapes beckons you to stay and make Birtle more than just a place to visit. Please call 1-204-842-3602 or visit us on the web at www.birtle.ca. Come to Birtle and enjoy scenery, serenity and safety. u

SURGE ENERGY INC.

Growing for Continued Success

urge Energy Inc. (TSX:SGY) first entered into southwest Manitoba during the summer of 2010 via an acquisition of a private oil and gas company with assets in Waskada and surrounding areas (Pierson, Goodlands). The acquisition positioned Surge in the Spearfish (Amaranth) light oil resource play, where it estimated a gross DPIIP (Discovered Petroleum Initially In Place) of more than 77 million barrels of light oil with less than one per cent recovered at that time. Subsequent to the initial acquisition, Surge has continued to expand its foothold in the area by acquiring adjacent prospective Spearfish lands via crown land sales in Wasakda and by acquiring a larger asset south of the border in North Dakota. Surge now controls more than 202 million barrels of internally estimated gross DPIIP and a drilling inventory of more than 325 gross/230 net horizontal multi-fracing oil well locations in the area. Surge has invested in Waskada since 2010 by drilling and completing new wells, building facilities and infrastructure and acquiring additional land. To date, Surge has successfully drilled a total of 21 gross/21 net horizontal multi-frac wells at Waskada.

The company is encouraged by results achieved to date and plans to drill an additional 12 gross (12 net) horizontal multi-frac wells at Waskada in 2012. Surge also plans to initiate a waterflood pilot in Waskada sometime in 2013 to further enhance oil recovery and to continue to add to its reserves. In addition to drilling operations, the company completed construction of a new oil treating facility and a 4.5-kilometre emulsion-gathering pipeline at Waskada in the fourth quarter of 2011. These facilities are forecasted to decrease operating costs in the area by approximately 30-40 per cent. Surge currently employs two full-time operators from Waskada and Melita and will continue to add qualified local residents to its operations staff. Surge strongly believes in supporting the local communities it operates in and looks forward to continued success and growth in the area in 2012 and beyond. Surge is an oil-focused oil and gas company with operations throughout Alberta, Manitoba and North Dakota. Surge’s common shares trade on the Toronto Stock Exchange under the symbol SGY. u

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BOISSEVAIN

BOISSEVAIN –

Embracing the Future

Location The Town of Boissevain and the Rural Municipality of Morton have a combined population of approximately 2,500 residents. Located 45 minutes south of Brandon on Highway 10 – just minutes north of the US Border, with a 24 hour Port of Entry – Boissevain is just east of Deloraine, nestled in the Turtle Mountain region, near Turtle Mountain Provincial Park, the Bakken oil field and the International Peace Garden. Community Amenities Our well-equipped hospital is serviced by two full-time doctors and can handle all your medical requirements. We are part of the Assiniboine Regional Health Authority.

The residential housing market in Boissevain is a stable mixture of older and newer homes. We offer a wide range of housing options, newer and older homes, rental properties, as well as our new Crocus Hill Estate. A new residential area has been constructed and is waiting for you to build your new home. Boissevain is a full-service community, with all your basis needs available. From purchasing your groceries, furniture, clothing, household needs, it is all here! We have seven different churches to meet your spiritual needs. Social activities such as indoor walking, pool, darts, baseball, bowling and hockey bring the community together, to grow and promote healthy living. Parks, fishing, camping, skiing, skating, and tobogganing are just some of the activities that can be enjoyed in the area. Economic Activity Western Archrib, providers of laminate beams, and Goodon Industries, providers of pole constructed buildings, are Boissevain’s two major manufacturing businesses, serving international clients and providing employment opportunities. Other opportunities include Prairie Partners, Miller Equipment, Turtle Mountain School Division, the local hospital, and our retail and service sector. We have an industrial park ready for your business idea, whether it’s manufacturing, servicing the oil fields, or whatever you can imagine. Education For the family, there are many child care and educational options, including day care, kindergarten, pre-school, primary and middle grades and senior high. Our adult learning centre offers university and college programs, as well as English as a Second Language. Our local

Manitoba Oil & Gas Review 2012

school offers many extracurricular activities such as drama, music and sports. You can check out our local school division at www.tmsd.mb.ca. Presently we have plans to build a new library with a theatre – for live performances and movies – as well as a cultural centre. Community Highlights Incorporated as a town in 1906, Boissevain is rich in history and culture. Our community is named after Adolphe Boissevain, who assisted in bringing the railway to the region to expand and expedite development. Our community motto is “No fear of the future nor regrets of the past.” Our community is proud to host four museums: the Moncur Gallery (prehistory), Beckoning Hills Museum (prairie pioneer), Chokecherry Junction (railway collection) and the Irvin Goodon International Wildlife Museum (over 4,000 square feet of exhibits). We host over 20 murals in our outdoor gallery, which can be toured by walking, driving or a horsedrawn wagon tour. We are a Community in Bloom – we hope that you will enjoy our flowers and parks throughout the community! Boissevain invites you to come and visit – call ahead and we’ll give you a guided tour! Start planning your visit now. Call 204-534-6303, email tmcdc@boissevain.ca or visit www.boissevain.ca. u

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REDVERS

Redvers & District Oil Showcase

ur fourth Redvers & District Oil Showcase is just around the corner. Scheduled dates are to be May 10 & May 11, 2012, and we’ve already had a great deal of interest with regards to registrations and sponsorship. This year, our keynote speaker at the supper on Thursday night will be Patrick Ward, President and CEO of Painted Pony. The previous shows were held in 2007, with the 2nd annual in 2008. The first two-day event was held May 7th and 8th, 2010, offsetting the Weyburn Oil Show, and here we are - 2012! Based on some of the feedback that we received from several exhibitors from our last show, we’ve decided to change things up a bit again this year and host the show on Thursday and Friday rather than Friday and Saturday as it was in 2010. The committee hopes that

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Manitoba Oil & Gas Review 2012

this will allow many of the people who work a variety of different shifts to attend. With Redvers being situated right in the middle of the Bakken play in southeast Saskatchewan and southwest Manitoba (as well as adjacent to the same play in North Dakota), this makes it the perfect location to showcase existing and upcoming technologies for the oilfield and related industries. Our previous oil shows revealed Redvers as a town progressing and moving forward, and we want to continue that trend. With a new hotel in progress, as well as an expansion planned at the campground, there will be ample space for all to stay in town at the next oil show. The 2010 oil show was a tremendous success, with Brett Herman, CEO of Tristar Oil & Gas Ltd., being the keynote speaker to a sold out crowd at the roast beef and “pork on a spit” banquet on Friday evening. One hundred exhibitor spaces were filled both inside and outside at the Redvers arena – showcasing a number of oilfield and other industry technologies and well over 1100 people came out to check things out. At the 2010 show, we also entered the names of all of the gold and silver sponsors to a draw for either a commercial lot in Redvers or a trip voucher, and Essential Coil Tubing won the draw and selected the travel voucher. Feedback from the last oil show was remarkable, and we anticipate a full show yet again with loads of exhibitors and hopefully a similar showing of people taking the opportunity to take a look around and make new industry contacts. BAR Engineering’s comments on the last show: “For a new company in SE Sask, it was a wonderful place to make contacts” and “the Redvers & District Oil Showcase was a very well organized show”, Ron Plett, BAR Engineering. The committee would like to thank all of the sponsors and volunteers who helped to make the 2010 event a success. We look forward to seeing you in May 2012! To be a sponsor or to request a booth at the next show being held Thursday May 10 & Friday May 11, please contact the Redvers and District Oil Showcase Committee at 306-452-3225, or e-mail redversoilshow@hotmail.ca. You may also visit the Town of Redvers website and click on the Redvers & District Oil Showcase link. u

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For more information go to www.redvers.ca and click on the link to the Redvers Oil Showcase, e-mail redversoilshow@hotmail.ca or call (306) 452-3225.

ESTEVAN

A Wealth of Opportunity

s the world continues to witness increasingly dire economic circumstances, it seems the area surrounding Estevan, Saskatchewan is unaware of what’s happening around them.

The city has seen four consecutive years of record development and each year seems to bring new major announcements and projects that continue to attract new people, wealth and opportunity to the community. Estevan has been dubbed Saskatchewan’s Energy Capital, and it’s with good reason: the city is home to a thriving oil & gas sector, two power-generating facilities, a massive coal mining operation and a young, vibrant and determined population intent on capitalizing on a once-in-a-lifetime opportunity. As the oil & gas, power generating, mining and agricultural sectors continue to thrive, the community is doing all it can to ensure it is at the forefront of new training, environmental and recreational infrastructure and technology. With programming set to begin February 27th, 2012, final details are being addressed to complete construction of Southeast Regional College’s new 44,000-square-foot Saskatchewan Energy Training Institute (SETI). Built to meet the increasing and ever-changing demands of the local energy sector, the new SETI will feature two labs designed to be reconfigured as required and a large shop lab that will allow for fall arrest and confined space training to be provided away from the elements on a year round basis. Keith Madu of SETI stated simply that the existing facility did not provide enough space to meet the growing demands of the area and that the new facility, along with the strong relationship being forged with industry, will allow the college to offer training that meets their needs and can adapt to the ongoing changes in industry requirements. Along with the new lab space, the new SETI facility has also doubled the number of program classrooms for the college, added meeting and board rooms and provides an auditorium and food service space to be able to accommodate community events. The new facility has been strongly supported by all three levels of government; the City of Estevan donated

Manitoba Oil & Gas Review 2012

ESTEVAN

a five acre lot and municipal services in the newly developed Glen Peterson Industrial Park, while the provincial and federal governments have pitched in a combined $14.1 million for the facility’s construction. They will now look to fundraising and the local business community to fund an estimated $3.5 million in order to equip the facility’s classrooms and offices. Officially announced in April, construction of the $1.2 billion Boundary Dam Clean Coal project began just a month later on May 1st, 2011. The completed venture will transform the aging unit into the world’s first and largest ful-

Manitoba Oil & Gas Review 2012

ly integrated clean coal, carbon capture, storage and enhanced oil recovery (EOR) project. While the cost is significant, SaskPower is currently working to sign on purchasers of the captured carbon dioxide that can be used to regenerate mature oil fields through EOR. The project, as of November 10, 2011, was 13% complete and had 140 people working on site. Once complete in 2014, the estimated 300 year supply of locally mined coal will continue to be used to provide a reliable, low cost fuel source for Saskatchewan’s base load power generation, while enhancing local oil production and reducing greenhouse gas emis-

sions by about 1 million tonnes per year or the equivalent of removing 250,000 vehicles from Saskatchewan roads. After receiving council approval in February, 2006 Estevan’s New Arena Fundraising Committee quickly got to work raising what would become $8.14 million in local contributions toward a $23 million project (after $10.2 million was provided through a combination of provincial funding and the Building Canada Fund, the taxpayers were only left with a price tag just over $4 million). While corporate donations provided the bulk of the funds raised (including $1 million from Spectra Credit Union to acquire naming rights for 10 years), five fundraising dinners brought significant funding (more than $1 million) and with the assistance of such guest speakers as Gary Bettman, Brian Burke, Ray Scapinello and Steve Yzerman, a tremendous amount of excitement and attention was drawn to the project. In the end, the residents of the Estevan area are left with a stunning facility featuring a 4 sided video scoreboard, 216 m. long rubberized walking track, 24 private suites and a lounge overlooking the ice surface with retractable windows providing viewers with a tremendous view and experience. The facility also includes a flooring system that was purchased to cover the ice in order to ensure Spectra Place could handle major events year round. Aside from being home to the SJHL’s Estevan Bruins, Spectra Place has already hosted two concerts, a business awards gala, an MMA Hard Knocks event, two tradeshows and in February 2012, Hedley will take to the stage to perform before a sold out (2,400) crowd.

ESTEVAN

With the continuing growth in Estevan’s oil and gas sector seeing no immediate sight in end, the most significant challenge for the community has been to accommodate the number of new residents coming to town. With over 1,200 jobs available and a 1.5% rental vacancy rate, businesses have been challenged when trying to bring in the staff they require. Fortunately, much has been done over the past two years as Estevan has led the province in housing starts per capita and much more is planned for 2012. The construction of 56 single detached homes and 22 multi-family units in 2011, along with the city nearing completion of 24 new lots has made a significant impact. Development of a new 120 acre residential development is also slated to begin in the new year, which once complete, is expected to be home to upwards of 3,500 residents. As the economy continues to thrive in the area, Estevan’s business community and residents are seeing significant change and improvements in the community’s dynamic and infrastructure. A growing number of people are calling Estevan home and with the inf lux of new residents, so too comes new opportunity; the community’s retail sector is growing, sports and culture opportunities are expanding and a constant desire to a quash status quo and seek improvement is felt strongly

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amongst the community’s residents. u Manitoba Oil & Gas Review 2012

ROADWAYS

Municipal Roadways Strain Under Increased Activity in Oil Exploration By Lisa Fattori

hile increased activity in Manitoba’s oil industry creates jobs and brings economic prosperity to the province, Rural Municipalities (RM) are faced with the challenge of footing the bill for the maintenance and repair of roads that fall within their jurisdictions. Heavier traffic on route to Cromer, as well as the higher weights of trucks and oil rigs, places a strain on municipal roadways that have been made available to accommodate the transportation needs of oil companies. These new demands on infrastructure, together with a devastating f lood season and the need to replace aging bridge systems, has resulted in escalating costs that far surpass the current budgets of many RMs. The southwest corner of the province is experiencing the most impact in damaged roads and more traffic, as a result of the oil boom. In an effort to address the concerns of local RMs, the Southwestern Oil Producing Municipalities of Manitoba (OPMM) was formed. The group

Manitoba Oil & Gas Review 2012

represents 13 RMs that extend from the Birtle/Ellice Field in the north to the Waskada Field in the south. The group’s objective is to remove the burden of the cost of infrastructure from the municipalities to government and the oil industry. “Oil has to move to the Cromer pumping station and Tundra terminal and, when trucks have restrictions on provincial roads, they will use municipal roads to get there,” says Ross Tycoles, Reeve of the RM of Pipestone and Chair of the Southwestern OPMM. “Our government has made tremendous concessions to the oil industry to get companies here, and the government is generating revenue because of oil exploration. We’d like to see both government and industry put something back into infrastructure.” Since 2004, oil production in Manitoba has almost tripled, with the oil industry spending $3 billion in drilling 2,171 new wells in the province. Manitoba Statistics has estimated that for every dollar spent developing Manitoba’s oil industry, thirty

cents goes back to the three levels of government in the form of taxes collected. One of the drivers of increased oil exploration in the province is the Manitoba Drilling Incentive Program, which has been extended to January 1, 2014. “This program is similar to programs offered in the other western provinces,” says Keith Lowdon, Director of the Petroleum Branch of Science, Technology, Energy and Mines. “The program has helped to spur activity in the province, but without other economic factors, such as pricing and technology being in place, it is unlikely we would see continued high activity levels.” At the local level, the boom in the oil industry is clear, with the need to increase maintenance on municipal roads. While RMs do receive property taxes on wells drilled, 62 per cent of that goes back into education. In the municipality of Pipestone, for example, the municipality has added one grader to its road maintenance program, for a total of five maintenance

ROADWAYS graders and one construction grader for road repairs and rebuilds. At approximately $250,000 per new grader, plus the salaries of added staff and the cost to maintain and repair equipment, incremental tax revenue is not enough to cover the up-front capital costs and the longterm cost of keeping municipal roads safe and in good working order. “We need the funding to grade main haul roads twice a week, rather than once every two weeks,” says Floyd Buhler, Chief Administrative Officer for the RM of Wallace. “Oil companies are doing well and they want the roads improved, and the province is getting revenue from taxes. We want to accommodate the oil companies, but municipalities have to be accommodated at the same time.” Alberta and Saskatchewan have undergone similar lobbying efforts in resourcerich rural areas that require more road maintenance. In 2009, Saskatchewan Association of Rural Municipalities (SARM) partnered with the province’s Ministry of Highways and Infrastructure to manage and administer the Municipal Roads for the Economy Program, which includes a Heavy Haul-High Volume Program.

“Some money has been put into funding programs for the oil industry and for other economic drivers,” says Dale Harvey, Executive Director of SARM. “Finding solutions is a balancing act. Municipalities have the ability to tax, but you don’t want those taxes so high that you scare away the oil companies. Our RMs are still lobbying for increased funding. We have hundreds of bridges that need to be replaced in the next few years, and I’m sure it’s the same situation in Manitoba.” As a relatively new association, the Southwestern OPMM is working to formulate a proposal that it can take to the provincial government, and is looking to hire a consultant to help develop a comprehensive analysis of the oil industry and its impact on local communities. Various possible solutions have been narrowed down and include designating specific corridors for heavy truck usage; namely, Highway 83 from the south, and Highway 256 south to Highway 2. At the Association of Manitoba Municipalities Annual Convention in November, the Southwestern OPMM met briefly with Manitoba’s Minister of Infrastructure and Transportation, Steve Ashton, to dis-

cuss some of the challenges facing RMs. “We’d like to see increased weight limits and permit changes that would allow usage,” Tycoles says. “By making these highways all season, traffic would be restricted to these routes, so that trucks are not using our municipal roads.” While oil companies working in the southwestern region of the province have proven to be good corporate citizens, in some cases, building roads and grading roads after transporting rigs, RMs would like to see greater consistency in sharing the responsibility of road maintenance. As oil exploration expands outward, affecting new RMs, a set policy on road usage and maintenance will be an improvement to the current ad hoc approach in meeting the needs of industry and rural municipalities. “In Pipestone, the growth of the oil industry was slow and steady, but for other areas, the growth is coming fast, and RMs don’t have the equipment and manpower to handle it,” says Tycoles. “The region is getting economic spin-offs, but all of the activity has created some stress areas. Growth is good, but with growth, you also get growing pains.” u

Manitoba Oil & Gas Review 2012

geosciences

The Changing Face of Geosciences in the 21st Century:

What You Need to Know to Survive By Larry Herd The Changing Geosciences World It wasn’t long ago (at least it seems like just yesterday) that the domestic upstream oil and gas industry was still in the exploration phase – looking for new reserves, exploring for new play concepts and enhancing technology to find new resources. Our geosciences disciplines were generally isolated disciplines that got together as technical teams but operated as generalists within their silos. The majority of geoscientists were involved in the exploration side of the business, and we spent our time and energy looking for new and yet undiscovered resources. Now, the industry compass has swung

around to other directions. Today, the most hydrocarbons being “discovered” are by the drill bit as unconventional resource. The new resource plays are based on resources that we’ve known existed in the ground for years – we just couldn’t economically get them to the surface. The “mining” of oil and gas (oil shale, tight gas, heavy bitumen) is now a materialshandling process rather than true exploration. Much of our current technology advancement is in the area of horizontal drilling, rock mechanics and induced fracturing – all designed to assist in the extraction of hydrocarbons from known areas and to bring the resource to market.

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Manitoba Oil & Gas Review 2012

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The Geoscientist of Today For the benefit of the undergrad student peering into the looking glass, trying to get a glimpse of our industry, I have classified today’s geoscientist into three broad classifications. • The Explorationist: There are still a myriad of small to medium-sized companies in the exploration game, and they are doing a great job of finding oil (since natural gas is a four-letter word today). Geoscientists still play a vital role in finding these resources, and many senior geologists and geophysicists can be found at the helm or in the management team of most small outfits. They have a general knowledge of many aspects of their respective fields – seismic including acquisition, processing and interpretation, and geology – depositional environments, core and cutting analysis and play-making, having all cut their teeth early in their careers with large oil companies or major service companies. • The Exploitationist: If you “follow the money”, however, you find that most investment dollars are flowing into the unconventional resources. These geoscientists work as part of an integrated team to develop unconventional resources. They possess more specific knowledge of resource extraction technology and apply geology and geophysics to rock mechanics, pore connectivity and fracture analyses. • The Specialist: One segment of our discipline that I believe is a growing component is the geoscientist who excels in a specific field of geology or geophysics. These are the ones most likely to speak at technical luncheons and who understand and do research in a specific, nar-

geosciences place and expect good salaries to spend on multitasking gadgets. They are the generation of “multi-taskers” and utilize technology to read, listen, type and talk all at the same time.

row field of study. They are the technical leaders in whatever field they work in and are usually, but not always, found in major service or oil and gas companies. A Primer for the Gen-Y Geophysicist What do you need to know to survive once you “get there”? Well, here are my credentials: I graduated from the University of Manitoba in 1978 and am a full-f ledged stereotypical baby boomer. My parents are classical “builders” (traditionalists) and my children (a relative term) are generation Y. I have managed a service company of baby boomers, gen-X and gen-Y staff for many years and I have at least a cursory understanding of the issues. For my sources of information, I f lagrantly plagiarize from reliable Internet sources like Wikipedia and various blogs, rely on innuendo and hearsay, discuss issues with my peers over beverages and read the odd professional management article. All in all: sound and reliable sources of fully pedigreed information – see note of apology below. Kids these days... “They waste time chatting with co-workers. They show up for work in shorts and T-shirts. They plug in their music, text on their phone and try to work at the same time. And then they take the afternoon off to go skiing.” (Overheard in a management meeting.) Welcome to the “Age of Entitlement”, the brave new world of generation Y. Gen-Yers value positive reinforcement, autonomy, positive attitudes, diversity, money and technology. They have grown up in prosperous and tranquil times and, as a result, have a very optimistic outlook on life. They demand more input into their learning regimen, crave supportive feedback and lots of variety in the work-

Why Understanding the Generation Gap is Important to the Gen-Yer You (the gen-Yer) need to understand the relational working environment in which you (hopefully) find yourself. I call it the “Totem Pole Concept of Corporate Hierarchy” – chances are that when you start into your new role as a young geoscientist, you will be at the bottom of the totem pole. Your boss will likely be a gen-Xer and his or her boss will likely be a baby boomer. If you think your boss doesn’t understand you – try talking to his or her boss! Gen-Xers believe in investing in their own development rather than in their organization’s and they embody the entrepreneurial spirit. They are cautious about investing in relationships with employers because experience has shown that these relationships are not reliable. To a genXer, this may mean two-week’s notice. They usually have clear goals and prefer managing their own time and solving their own problems rather than having them managed by a supervisor. This generation works hard but they would rather find quicker, more efficient ways of working so that they have more time for fun. While the baby boomers worked hard to move up the ladder, gen-Xers are working hard so that they can have more time to balance work and life responsibilities. When communicating with this generation, use email and texting as your primary tool, and talk in short soundbites to keep their attention. Keep them in the loop and ask them for feedback regularly. Baby boomers, who coined the phrase “workaholic”, value peer competition. They work hard because they view it as necessary to climb the ladder of success, which is a fundamental belief. Boomers are the “show me” generation and body language is important when communicating. When dealing with boomers, answer questions thoroughly and expect

to be pressed for the details, and present options to demonstrate flexibility in your thinking. They embrace the team approach to business and as long as you perform to their standards, they will accept you as an equal. They don’t appreciate rules for the sake of having rules, and they are not afraid of challenging “the system”. Baby boomers have strong principles and will fight for a cause if they believe in it. Supportive Tips to Gen-Yers As a guideline to help you, the genYers: • Experience does count. Learn from others’ experiences. • If you don’t know, ask. If you don’t get an answer, ask again. • Continue to network – your bosses may not understand, but your network of peers is an invaluable tool for both you and the company for which you work. • Technology is a tool, not an answer. Use the technology to its fullest but remember that technology only assists in the creation of knowledge. Auto-picking the 3-D seismic survey on a workstation provides the data picks but doesn’t tell you how to interpret the trap. Supportive Tips to Gen-Y Bosses and Their Corporations As a guideline to help the supervisors of Gen-Yers: • Don’t manage; mentor. Don’t assign; explain. They thrive on learning through mentorship. • Use action words - and challenge them Manitoba Oil & Gas Review 2012

geosciences at every opportunity. • Don’t dictate; solicit. Gen-Yers appreciate interaction, and resent being talkeddown to. • Don’t ignore; respond. Gen-Yers have little patience for bosses who don’t respond. Email is preferred. • Don’t conceal; communicate. Provide an open-door policy and make sure you talk to your gen-Yers. Seek their feedback and provide them with feedback regularly. • Use humour and create a fun learning environment. Don’t take yourself too seriously. • Encourage risk-taking. Encourage them to break the rules so that they can explore new ways of learning. As a leader of a corporation whose employees span the three generations, you

might consider restructuring leadership across the generations, providing compensation, benefits and incentives to satisfy each generation. The traditional boomer’s “one-size-fits-all” strategy won’t work. Stop trying to communicate using the standard company line – effective corporate communications must now include multiple formats and styles. Closing note: the Scale-up Challenge As an industry, we are facing an incredible dilemma. Our brain trust demographic is retiring, and we have a small group to fill their shoes. While the job market should be running full throttle to replace us, the rapidly departing baby boomers and early gen-Xers, hiring is still subjected to the whims of the ebb and f low of oil economics. Yesterday, all of

the new grads were offered jobs; today, there are many who go without an interview. As soon as the industry regains its traction and needs to fire on all cylinders, where are the experienced talent to drive business forward? We had better figure out more ways to keep our young people enthused about the geosciences or we won’t have replacements coming in our stead.

Author’s note: An apology to my sources (Sharyn Devereux, Catherine Jones, Shane Austin, Jennifer Blanchard and Ray Williams); I have mutilated this discussion so much over the years so as to make all references from reputable sources indistinguishable from my own. If you recognize any of the text as direct quotes, I will just plead ignorance so I ask your indulgence. About the author: Larry Herd is the president of RPS Boyd PetroSearch, a geophysical consulting arm of RPS Energy, and is also the 20112012 president of the Canadian Society of Exploration Geophysicists. u

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Manitoba Oil & Gas Review 2012

bird river resources inc.

Understanding What’s in a Barrel of Oil By Nelson Shodine

his article is not written for the professional but for the ordinary citizen who may be sitting in the

tor gasoline. Distillate accounts for 10.03 gallons, and jet fuel accounts for 4.07 gallons. Residual fuel accounts for 1.72 gal-

doctor’s or dentist’s waiting room read-

lons of the overall refined product.

ing this magazine who may have been

Other petroleum products created

inundated every day with the changing

from a barrel of oil during the refining

price of a barrel of oil. It is especially dif-

process include still gas, petroleum coke,

ficult for Canadians who have gone from

liquefied refinery gas, asphalt and road

imperial gallons to litres and now to bar-

oil, various oils for food stocks, lubricants,

rels that are 42 US gallons. Following is

special napthas, kerosene, waxes and an

a thumbnail sketch to help relate to the

assortment of miscellaneous products.

consumer price of motor gasoline at the

(It should be noted that the different

pumps. US gallons are used throughout this article. The standard barrel contains 42 US gallons of crude oil. After refining, the 42 gallons will result in more than 44 gal-

Can you imagine another resource that results in so many different products that benefit the world as crude oil when it is refined?

end products that can be produced from

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a barrel of oil differ in their percentages

1059 Selkirk Avenue

depending on what part of the world the

Winnipeg, MB R2X 0C2

crude oil originated from.)

Phone: (204) 589-2848 u

lons of petrol products. This is actually an increase in the volume of product realized because there is a reduction in the density of some of the original crude oil as different petroleum products are created during the refinement process. The refining process involves the distillation of crude oil into its constituent elements. After distillation, conversion – the the process of cracking molecules to allow for further refinement of the elements

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that form crude oil in the very beginning – occurs. Finally, enhancement occurs. This is a process trough which the qual-

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in various ways, such as reducing sulphur. The largest portion of the 42 gallons of US crude ends up as 19.65 gallons of mo-

Participate in Manitoba’s oil wealth through the only publicly traded Manitoba company incorporated in 1958. Bird River Resources Inc. • Trading on CNSX - BDR Manitoba Oil & Gas Review 2012

CLARIANT & PRAIRIE PETRO-CHEM

Clariant and Prairie Petro-Chem:

Focused on Growth

n April 2011, global specialty chemicals company Clariant acquired Prairie Petro-Chem, an Estevan, Saskatchewan-based company with about 40 employees and a 40-year history of serving the southern Saskatchewan and southern

Manitoba market. The acquisition, which integrated Prairie Petro-Chem into Clariant’s oil services business line while allowing it to retain its name, significantly enhanced Clariant’s presence in Canada and the Bakken Shale. Nearly a year lat-

Innovation Assured, Value Delivered Prairie Petro-Chem, a Clariant Oil Services business, is a leader in the development and application of oil and gas treating compounds and industrial chemicals. Our expanded geographic position and talented and knowledgeable team of experts are ready to help you improve your operations. Contact us today to learn more about our chemical technologies and services. Prairie Petro-Chem, A Clariant Oil Services Business: 738-6th St., Estevan, SK S4A 1A4. Phone Orders: 306-634-5808. Fax Orders: 306-634-6150. Email Orders: orders@petrochem.ca. General Inquiries: 306-634-7362. General Fax: 306-634-6694. Web: www.oil.clariant.com. Twitter: @ClariantOilSvcs

Manitoba Oil & Gas Review 2012

What do you need?

er, both companies are pleased with the progress of the acquisition, according to Blane Fichter, Assistant General Manager for Prairie Petro-Chem. As a facet of the company’s integration, staff at Prairie Petro-Chem met with existing customers to answer questions and explain what the integration meant for the company’s capabilities and service offerings. Initially concerned, customers began to realize that by joining Clariant, Prairie Petro-Chem had access to more resources and expanded geographic reach. “Our customers have been asking us, ‘What other things, now that you’re bigger, can you help us with?’” Fichter said. The answer to that question, Fichter said, is quite a lot. “Gaining the technical expertise that comes with a larger company, improving the quality of facilities, and adding production facilities and manufacturing plants has advantages both technically and economically,” he said, adding that Prairie Petro-Chem can now compete for larger contracts that it would have been unable to secure before joining Clariant. Jubal Slayer, technical coordinator, relocated from Houston, Texas, to Prairie Petro-Chem’s headquarters in Estevan to oversee the company’s transition into the Clariant family. Change has been implemented gradually at Prairie Petro-Chem, Slayer emphasized, and employees are on board with the new structure. Slayer said Clariant has learned from experience that parties in an acquisition can take time to gel, but that this one has been remarkably smooth. “Certainly, whenever one company acquires another, there’s always a fear of redundancies. But that hasn’t happened here,” Slayer said. “That’s definitely been a positive.” In 2012, Prairie Petro-Chem is focused

CLARIANT & PRAIRIE PETRO-CHEM

As Prairie Petro-Chem adjusts to life as a member of Clariant’s large, international network, it maintains a commitment to local customers and providing excellent, customized solutions. on growth: growing its customer-base in Northern Saskatchewan and establishing a larger presence in Alberta, particularly in Calgary. Business has increased and sales have steadily climbed upward, and Fichter said that trend should continue. As Prairie Petro-Chem adjusts to life as a member of Clariant’s large, international network, it maintains a commitment to local customers and providing excellent, customized solutions. “Our customers expect a high level of service,” said Fichter. “As a Clariant company, we have the resources and capabilities to continue to exceed their expectations.” u

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Manitoba Oil & Gas Review 2012

FILLMORE RILEY

Five Questions an Employer Should Ask Before Hiring a Foreign Worker

By Sofia Mirza

s an immigration lawyer, I can’t tell you how many times I’ve heard new clients say, “I wish I

taining one before the process starts and

depending on the position in question.

getting it right the first time.

For instance, the requirements for hir-

Here are five questions to ask which

ing a foreign national for higher skilled

had known that before” or “If I had just

may help you to avoid some of the more

work are different than what is required

consulted you before I filed the applica-

common errors:

for lesser skilled work. The nature of the position also affects what other support-

tion, this mess could have been avoided.” Some examples of complications that

1. Does the position and candidate fit

ing documentation may be required for

may occur when a step is missed in the

within a legal exemption that could sim-

certain application processes.

work

plify and speed up the process of hiring the

Some work permit categories are exempt

lengthy delays in the hiring process, of-

foreign worker?

from the aforementioned proof step.

ficers rejecting applications and inter-

Generally, before an employer may

Knowing that an exemption exists can

ruptions in the work term of a valuable

hire a foreign national, the employer

save the employer time and money as

foreign national employee.

must first prove they tried to hire a Ca-

certain steps in the general process may

Many of these situations may be avoid-

nadian citizen or Canadian Permanent

be avoided completely.

ed if the right issues had been considered

Resident (landed immigrant). However,

first and the proper steps had been taken

in certain cases, this step may not be nec-

2. Does the candidate have a criminal

in the process at the right time. Correct-

essary.

record?

ing mistakes after they happen and re-

The general “proof” must be demon-

If the foreign national candidate has a

taining a lawyer at that time to assist is

strated in accordance with specific adver-

criminal record, it may have an impact

often significantly more costly than re-

tising and other requirements and varies

on his or her ability to obtain Canadian

authorization

process

include

work authorization. The type of criminal charge(s), what conviction was entered, when the conviction was entered and

Proceed with more confidence.

when the sentence was completed are all relevant factors in the analysis of assessing whether the inadmissibility may be overcome. In some cases, and depending on the seriousness of the crime(s), the inadmissibility may be overcome in a timely fashion; in others, an officer may choose not to permit entry to Canada. When it comes to criminal records, you don’t want any surprises. So being aware

Sofia Mirza (204) 957 8335 smirza@fillmoreriley.com

Maria Penner (204) 957 8302 mpenner@fillmoreriley.com

tant because in certain cases steps can be taken to resolve the criminal inadmissi-

Fillmore Riley LLP Barristers, solicitors and tradeMark agents

of a candidate’s criminal record is impor-

www.fillmoreriley.com

bility, at least temporarily, for the duration of the work authorization.

Manitoba Oil & Gas Review 2012

FILLMORE RILEY 3. Does your proposed candidate require a

vance that some work permits may be

Doing your homework ahead of time and

medical exam?

renewed and others may not. This knowl-

asking the right questions so you can de-

Depending on the duration of the

edge will help you plan for the long term,

termine what options are available will

work term, citizens of some countries

giving you time to consider what options

make the process easier on both you and

are available to you and your employee.

your employee.

may have to undergo an immigration medical exam as part of the work authorization process. Only designated medical

Knowing the factors to consider before hiring a foreign worker helps to avoid

Sofia practises immigration law at

costly errors in the process and will help

Fillmore Riley LLP. You can reach her at

such immigration medical exams. If your

move the process forward in the most

smirza@fillmoreriley.com or

candidate requires a medical exam, this

cost-effective and efficient way possible.

(204) 957-8335. u

practitioners authorized by Citizenship and Immigration Canada may perform

may increase work authorization processing times by a few weeks while the medical results are processed. 4. Where is the candidate eligible to apply for their proposed work authorization? Citizens of some countries, such as the United States, do not require a visa before they apply to enter Canada. When it comes to applying for work authorizations, this can speed up the total processing time significantly as certain work authorizations may then be adjudicated at specific ports of entry to Canada instead of applying outside of Canada first. Citizens of some other countries must have their work permit applications adjudicated outside of Canada first. If the candidate is resident in a country that is not their country of citizenship, other filing location options may also be available. Of course, all supporting documents required must be in order and the candidate must still meet all requirements under the Immigration and Refugee Protection Act of Canada and amendments thereto. 5. Have you considered the long-term picture for your proposed foreign worker? Letâ&#x20AC;&#x2122;s assume your foreign worker has successfully obtained Canadian work au-

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thorization and settles in nicely only to learn a few months into the job another work permit is required. Knowing in advance what steps are required and how long they take is critical to avoiding costly and unexpected interruptions in employment. You also need to be aware in ad1691 WCB MB Oil Gas 2010 Ad.indd 1

Manitoba Oil & Gas Review 2012

10-05-25 11:44 AM

Western heritage

Mounds, Landscapes and Place in Manitoba’s Oil Patch By Terry Gibson, Shabnam Inanloo Dalloo, Peggy McKeand and Jim Finnigan, Western Heritage

From left to right: DkMh-18 north side of Pipestone Creek, looking south; DkMh-18 north side of Pipestone, looking NNW; and DkMh-18 site area on north side, looking north.

boriginal Earthen Mounds are not a common feature in Western Canada and by most measures could be considered rare. Manitoba is an exception, and the southwest corner of the province contains over one hundred known mound sites, and probably many more that have gone unrecorded yet may be known about locally. Manitoba is also somewhat unique in the west in that its mounds were investigated scientifically as early as 1857 when Henry Youle Hind, a professor of chemistry and geology, partially excavated a mound to test its origins: “We found a number of conical mounds, and the remains of an intrenchment. Our half-breeds said it was an old Mandan village; the Indians of that tribe having formerly hunted and lived in this part of the Great Prairies. We endeavoured to make an opening into one of the mounds, and penetrated six feet without finding anything to indicate that the mounds were the remains of Mandan lodges.” In fact, as Hind suspected, he did not dig into an earth lodge, but he very likely was digging into a burial mound prob-

Manitoba Oil & Gas Review 2012

ably associated with what is now referred to as the Devils Lake-Sourisford Burial Complex, a series of archaeological remains associated with Siouxian ancestors who lived in the area between Devils Lake in North Dakota and the Sourisford locality of southwestern Manitoba. Although not the only mound builders in the province, Devils Lake-Sourisford is the largest mound complex in North America. Many of these mounds were excavated in the decades subsequent to Hind’s explorations and found to contain human remains, usually associated with elaborately decorated pottery. Evidence suggests that some may have served much like cemeteries of today, being ancestral locations where aboriginal bands may have regularly placed the bones of their dead members as bundles, probably the important members who had some status in their society. Today the mounds are the most visible indication of the past human occupation of southwestern Manitoba and as characteristic of the works of people then as were grain elevators of the last century and the ever-increasing numbers of pump jacks and oil field batteries in the area today.

The most well-known, preserved mounds are found at the Linear Mounds National Historic Site, locally referred to as the Sourisford Burial Mounds. They are located a few kilometres north of the Hamlet of Coulter, in the Sourisford Locality. These mounds are federally protected, designated a National Historic Site of Canada. Today they are difficult to see on the prairie, having settled somewhat over the more than half dozen centuries when they were first estimated to have been built. When considering their visibility, one wonders what they would they have looked like when they were first built. Archaeological evidence suggests that they were varied in form and size, some representing single interments (or perhaps just markers) that were less than a metre high and maybe two or three metres across. Others were quite large, perhaps 10 metres across and built up over two metres in height, so that they could contain one or more pits that were layered with poles, sod and clay forming an elaborate burial enclosure. Some were even overlaid with slabs of stone. The ones in the Sourisford Locality are more than mounds: they are actually complex linear earthworks, one

I N N O V A T I V E

S O L U T I O N S

T O

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Archaeology, Geomatics and Near-Surface Geophysics Since 1990, the oil and gas industry has relied on Western Heritage Services Inc. and its various subsidiary companies, for specialized compliance and information needs. The Western Heritage advantage is the decades of industry speciﬁc experience provided by our senior management team; our proven ability to deliver solutions collaboratively with other service providers; and our comprehensive OHS and risk management programs. Western Heritage is known for archaeological services but also offers geomatics and remote sensing services (including high resolution satellite imagery), and near-surface geophysics (for cemeteries and other industrial concerns). Used synergistically, these three services can address the most demanding issues.

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Case Study: Screening Risk Factors The diagrams at the right show two independent measures of risk. The line diagram shows a pipeline network ranked by slope risk, where segments crossing higher slopes have an enhanced risk of being damaged by soil failures. The lower image is a special classiﬁcation of disturbed soils. The large yellow area is a sandy area that was destabilized by the north south road. Both of these can be quantiﬁed and added to an overall risk model. Other risks related to land use or soils can be incorporated 130 Fort Street, Winnipeg, MB R3C 1C7

shrubs

disturbed soil

Western heritage

From left to right: DkMh-19 site area south side of Pipestone Creek; DkMh-19 south side, looking SSE; and the mound.

being nearly 200 metres long and six metres wide, with circular mounds attached to each end. At the time, the end mounds could likely have been observed from a great distance on the level prairie because they were located in highly visible areas overlooking the Souris River valley. Visibility was probably a key factor in the placement and the way that they were laid out. Parks Canada, in describing the character-defining elements of the mounds, recognized the landscape where they were placed was important, stating that “landscape itself, with its uninterrupted views of the mounds and surrounding prairie” is a key element contributing to the heritage value of a site. It would appear that at that time people were building mounds not only to inter their dead, but possibly as a way to identify themselves with places in the

landscape. Even now, these mounds are cultural elements in today’s landscape; they make the landscape unique and special. Cultural landscapes are about connectivity, about people and their interaction with the surrounding environment, about culture and nature, and about the tangible and intangible. The mounds provide one of the few outwardly obvious connections to the people who lived in southwestern Manitoba in the ancient past. Following from this, any industrial player, like an oil field developer, has to consider the impact that their planned developments may have on a cultural landscape, especially one that is closely tied to the natural environment. In Alberta, for example, oilfield developments are regulated to avoid affecting the scenic view of provincial parks, especially ones

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Manitoba Oil & Gas Review 2012

that provide an historic vista, like the North Saskatchewan River valley viewshed of Fort George/Buckingham House Historic site or the Milk River valley containing Writing-on-Stone Provincial Park. Furthermore, Alberta restricts developments in the vicinity of sacred First Nations sites such as medicine wheels because of their spiritual nature. To do so otherwise would be to profane the landscape and destroy the special place represented by these kinds of features. This is only to be expected, just the same as most oilfield developers would think twice before putting an active oilfield battery adjacent to a rural church or a pump jack and tanks beside a cemetery. In the case of mounds, the problem is that they are hard to recognize. Over the centuries they have settled into the landscape and been subject to a century or more of intensive agricultural modification or been plowed over or fenced in as pasture land and appear to blend into the landscape. A recent archaeological investigation of a proposed pipeline in southwestern Manitoba illustrates the above points. A pipeline route was originally planned to follow along the gently rolling upland on the north side of Pipestone Creek. Much of this landscape has been under cultivation for many decades, although some parts of the route remained in native grass as pastureland. A review of historical records showed that a possible earthen mound recorded in 1986 was located in the vicinity of the proposed pipeline route. The general characteristics of the mound fit the description of a simple rounded mound characteristic of the

Western heritage

It would appear that at that time people were building mounds not only to inter their dead, but possibly as a way to identify themselves with places in the landscape. Devils Lake-Sourisford Burial Complex. In-field investigation was undertaken to relocate and protect it. On the ground, the mound was difficult to see at first since it was situated on the edge of a bluff of trembling aspen, hawthorns, and willows next to an open section of pasture. Once relocated, however, it was quite apparent, measuring roughly nine metres in diameter and about one metre high. The pipeline, originally planned to pass adjacent to its location, was slightly rerouted into a cultivated field to the north of the site, preserving the mound and its immediate surrounding landscape. But the archaeological work didnâ&#x20AC;&#x2122;t stop there. Testing on either side of the creek on uncultivated pasture revealed even more historically intangible locations. These were two buried archaeological sites, probably encampments, represented by the remains of stone tool making and bison bone. Dating of the bone indicated the sites were occupied at different times, one as recently as 200 years ago and the other about 600 years ago. There is no way to know how these sites relate to the mound, although one of them seems to fall in the same date range as the estimated range for the burial complex that the mound may be associated with. Since neither site was investigated in any detail (the pipeline was also routed to avoid them, and they were left as protected locations), this remains a question for future investigation to address. The example shows that in planning for new developments it is critical for oilfield developers to recognize that the mounds in southwestern Manitoba, wherever they may be, are a component of the larger landscape in which they reside and not separate from their surroundings. They are special places and they require careful stewardship. Also, special ancient places arenâ&#x20AC;&#x2122;t restricted to mounds, although they are the easiest to see. There are ancient places all over the landscape, buried in the ground, and they are as worthy of

protection, if only because they are so few

lightly and left unchanged as much as

of them left after a century of intensive

possible. Cultural landscape manage-

landscape modification in the province.

ment is not about freezing a landscape

How can an oilfield developer help to

in time and blocking change. Rather, it is

preserve ancient landscape features that

about participating in the process, being

yet remain? At the outset, it is better to

part of the story and managing change to

be proactive, to plan ahead of time and

ensure the continuity of what is left of the

to be aware that there are places on the

old landscapes can be passed on to future

landscape that need to be trodden on

generations. u

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EXPRO

Stop the Guesswork T

he age of technology has brought about many changes in how an operator collects information to optimize production. Few inventions have been as inf luential and revolutionary as the downhole video camera. Understanding the tremendous value of this service, Expro has identified itself as a global leader in downhole video technology. Expro’s highly skilled Canadian team is equipped with the product line, incomparable service standards and experience to best assist customers in achieving their unique objectives. Seeking to view f luid entry? Our realtime, full-motion video services utilize a cutting edge fiber-optic telemetry system. The system uses a patented optical fiber cable to transmit video information from the downhole camera to surface, producing distortion-free transmission of clear, sharp images. The system captures even the most subtle movements, making it a perfect solution for examining perforations and viewing production. Live broadcasts have been captured at depths over 5,000 meters and viewed in real time! Looking to examine mechanical problems such as a fish, casing damage or lengthy pipe inspection? The HawkEyeIII electric line video system transmits an image every second, making it perfectly suited for the viewing of a motionless mechanical failure. The robust video system

incorporates a 1-11/16 backlight camera, and operates on virtually any single or multi-conductor wireline cable. Due to this versatility, the system has overcome traditional cable limitations and allows video surveying of wells with corrosive f luid conditions, high-temperature, and high-pressure. The HawkEye can successfully assist operators who wish to examine the location and orientation of plugs, whipstocks and windows in multilateral completions. Examining the pipe wall, BOP stack or openhole formation fractures? The latest addition to Expro’s downhole video services is the ViewMax, which incorporates a second side-view camera in the patented backlight camera system. Operators can switch between down-view and side-view, and rotate the camera to get a circumferential view of the casing, pipe or openhole. These close-up images assist our customers in identifying the causes of failures in their wells. ViewMax is compatible with either the fiber optic video system, or the HawkEye series of electric line cameras, making is an extremely versatile tool. Requiring casing inspection? In addition to downhole camera systems, Expro offers a variety of casing integrity inspection options. Our extensive caliper services include 24-, 40- and 60-arm electronic Sondex tools. These tools can be run on memory or real-time surface read-out to

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suit customers’ applications and can be deployed via mechanical slickline, electric line, conventional and smart coil. Caliper services can be run in conjunction with Expro’s MTT tool to identify metal thickness and external corrosion. New to Canada! The Kinley line of mechanical calipers offer virtually unlimited temperature and pressure ratings, making them the perfect tool for thermal and critical well applications. Expro has also combined video and caliper investigation with a unique combination tool, CalVid. CalVid allows operators to inspect casing visually with a 40-arm caliper and camera combination, giving you surface read-out caliper/camera service in a single entry. Investigating production and zone contribution? Expro also offers a full suite of specialty and standard production logging tools. Our production logging services allow operators to effectively measure zonal contribution in vertical, deviated and horizontal completions. Our horizontally focused MAPS array tools offer a unique tool design with circumferentially mounted sensors. This means you are able to measure individual phase hold ups and velocities, resulting in superior reservoir management. For further information, please contact Expro Group Canada Inc. at 403-532-0873.u

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Manitoba Oil & Gas Review 2012

For operations, call 403-885-4054 For Sales or information, call 403-532-0873

MILLENNIUM DIRECTIONAL SERVICE LTD.

Millennium Directional Service Ltd. –

On the Leading Edge on directional grassroots and horizontal wells in southeast Saskatchewan and Manitoba provided an excellent business opportunity.” At start up, competition in southeast Saskatchewan was primarily from larger, publicly traded, Calgary-based directional drilling contractors. “There were no small, independent directional drilling companies in the area that provided a complete range of new directional drilling equipment with the reliability and high service standards that we were determined to achieve,” Eddy says. “The objective was to react quickly and be far more proactive than our competition.”

illennium Directional Service Ltd. was founded in 2005 in response to demand for quality, reliable directional drilling services in the Williston Basin area of southeast Saskatchewan and Manitoba. Based in Carlyle, SK, with a sales office in Calgary, the company is now the provider of choice for many of the largest and fastest growing oil & gas companies in Western Canada and can provide services on 12 separate drilling operations at any given time. “The potential for directional and horizontal wells in the Western Canadian Basin was significant at start up,” says company president Dan Eddy. “The number of horizontal wells drilled in Western Canada was steadily increasing. Our focus

Manitoba Oil & Gas Review 2012

Clients First Local companies were Millennium’s initial focus. By providing directional drilling tools in a timely fashion with superior performance and service standards, this group became the company’s loyal client base. “We are committed to the development of long-term relationships with our clients based on personal service and professional performance,” says Eddy. “Our goal is to provide clients with the most reliable equipment, combined with highly skilled technicians and experienced field personnel to eliminate downtime, increase productivity and optimize drilling operations.” Tools and Technology Millennium’s high service standards, state-of-the-art equipment and software technology – coupled with consistent reliability and cost-efficiency – maximize economic benefits to clients. This has served the company well and allowed it to surpass original business goals and objectives. “By combining the latest advances in

directional drilling technology and the expertise of reliable, proven manufactures, we stay at the forefront of current and emerging industry trends. We work closely with our clients and suppliers to ensure all equipment issues are addressed and all technical requirements are met, in order to achieve performance goals and maximize our client’s drilling potential,” says Eddy. “That’s what really sets Millennium apart from our competitors – the reliability of our tools and the experience of our personnel. We designed our MWD system specifically for the conditions experienced in southeast Saskatchewan and Manitoba and regularly see upwards of 3,000 hours MTBF. “Clients can also pick and choose basically any motor configuration to suit the particular area or formation they are drilling. We work with three suppliers – National, Dynomax and Shamrock – which enables us to provide a large variety of top-of-the-line mud motors. And we are always happy to offer a recommendation of what has worked best in a certain area in the past.” Experienced Personnel The company has made impressive gains while remaining true to its original goals and objectives. According to Dan Eddy, Millennium’s personnel play the biggest roll in the success of the company. “All of our personnel are well-versed in teamwork and the roles of others that combine to plan and execute a successful drilling venture,” he says. “We are privileged to count among our employees some of the most experienced and skilled directional drillers and MWD operators in the business, all of whom have shown their commitment to superior service. As new processes and technologies become available, constant upgrading, training

MILLENNIUM DIRECTIONAL SERVICE LTD. and educational seminars allow our per-

employees and consultants. “Millennium

management and field supervisors – are

sonnel to keep up to date on advancing

takes pride in its responsibility to con-

responsible and accountable for imple-

industry trends.”

duct business in a safe and reliable man-

menting safety initiatives.”

ner,” Eddy says. “We comply strictly with

The result has been no lost time ac-

Safety and the Environment

all environmental legislation and safety

cidents since the company began doing

Millennium is also committed to pro-

regulations in every aspect of our work,

business in 2005, adding to the company’s

viding a safe working experience for all

and employees at all levels – including

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By providing directional drilling tools in a timely fashion with superior performance and service standards, this group became the company’s loyal client base.

Dependable, cost-effective solutions to meet your drilling program demands Bakken and Cardium specialists Personal service, professional performance Highly skilled, experienced personnel State-of-the-art technology & equipment Positive pulse & electromagnetic MWD Committed to your success “Locally owned and operated since 2005”

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Calgary, AB Ph: (403) 264-8206 Manitoba Oil & Gas Review 2012

altus geomatics

Local Presence, Local Knowledge

ltus Geomatics and Altus Geomatics Manitoba take pride in providing the best service to their clients. This is accomplished by having the right people in the right places. We have highly trained and, more importantly, dedicated staff with “client first” attitudes. With a network of offices across Western Canada (see coverage map), Altus can provide the best in class service – something our clients have come to expect. And with the newest addition of Winnipeg, you can find an Altus Geomatics office within reach from the Manitoba-Ontario border to the Alberta-BC border. To maximize the reach of field crews,

Manitoba Oil & Gas Review 2012

Altus has strategically placed offices to minimize travel time while also providing a full complement of full-time staff. All offices include administration, drafters, plan checkers and project managers and land surveyors. These people are the core of Altus’s business. We provide extensive knowledge of local regulations to streamline client projects. We know and understand the area you work in, and we know it’s the small intangibles that can sometimes help a project move through the system faster and more efficiently. Many of our employees have grown up and lived in the areas they now work. Knowing your surroundings “like the back of your hand” cannot be taught in schools or universities. Altus’s network of offices across Canada gives clients faster turnarounds and competitive pricing. We’re constantly improving our processes through technology and training. The ability to mobilize crews from the closest office allows for more f lexibility and ensures those rush jobs get executed quickly. Altus is well-versed in both conventional survey methodologies and LiDAR methodologies, and we were one of the

companies to pioneer the LiDAR process in Alberta. We pride ourselves applying new technology and processes in order to enhance the timing, quality and costs associated with our services. Altus has been doing this in the field since the introduction of the first electronic distance measurement device that replaced the steel surveyor’s chain. GPS technology has become standard survey equipment, but when it was first introduced to our company there was a 30% to 50% decrease in the length of the survey, depending on the area of work. Along with the adoption of GPS, Altus implemented surveying directly in UTM coordinates. This move provided several distinct advantages over other companies, one being that, because well site survey requests are mostly provided to us in the form of UTM coordinates, we do not lose any accuracy in converting the coordinates to other systems. As well, we can integrate surveys over large areas and reuse information from previous surveys we have done. This results in decreased time to survey and draft projects. A third advantage is that the data is passed smoothly from field to office with little manipulation which increases speed

Capitalizing on Strengths. Delivering Solutions. Together, we deliver unprecedented access to resources and technical expertise.

Altus Geomatics (Manitoba) Professional Land Surveyors and Altus Geomatics Limited provide professional land surveying services to the energy sector, construction industry and the legal/municipal sector. Positioned at the forefront of the industry in Western Canada, we offer the resources and expertise to take on any scale of project, leveraging our best-in-class technologies and delivering survey solutions that work for our clients.

Brandon 100-158 11th St. Brandon, Manitoba R7A 4J4 T 204 727 0651

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altusgeomatics.com

Winnipeg 661 Century St. Winnipeg, Manitoba R3H 0L9

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altus geomatics

and quality. Another field application of GPS and technology put together by Altus is the use of an IPAQ and a software program named Oziexplorer for digital, hand-held, real-time navigation of plans or maps while scouting in the field. Altus has also been a leader is 3D scanning as it relates to field processes. Using 3D scanning for complicated as-builts of existing facilities can save on average 25% from traditional survey costs. Fuller and more accurate survey can be obtained this way, providing information that can be used by engineers for precise design and practically eliminating return visits to the field because it gathers so much information. We are also currently investigating an unmanned aerial vehicle which can be used to take aerial photos of an area to augment conventional, LiDAR and 3D scanning surveys and adjust for regular changes to a site or area. For instance, a field could be f lown every six months to provide up to date as-built information. Using aerial photos as part of our

Manitoba Oil & Gas Review 2012

field information has also greatly assisted in scouting. In the digital age, Altus has taken this one step further to offer a unique service that enables our clients to access and view not only aerial photos but also over 85 mapping layers, such as ASRD information, ERCB information and your Altus survey plans online. With this added service, finding information regarding projects is very time efficient: turnaround time for a survey plan from time of final copy to viewing online is about 24 hours. This internet-based GIS mapping site is available to both your office and field staff and is a secure site with each individual using their own login and password. Another key component to this GIS Service is the ability to upload your own drawings and/or documents for any projects youâ&#x20AC;&#x2122;re working on, ensuring accuracy, efficiency and organization of project-specific work within lands. This program is especially useful for preplanning multi-well or pipeline projects.

Providing access and timely information to all stakeholders involved in a project realizes gains in quality, timing and costs. Using this site has allowed Altus to provide one-day kick-off for survey projects and at times has allowed for field crews to be re-tasked en route to a job site for priority or emergency surveys. Altus Geomatics and Altus Geomatics Manitoba has an industry-leading safety program because safety is not just a program but a way of life. We firmly believe that no activity in our operation is more important than ensuring the safety of our workers, subcontractors, clients, equipment, general public and environment. Altus ensures every person is certified for their role, and we maintain several safety association memberships. Contact your nearest Altus Geomatics or Altus Geomatics Manitoba office to discuss your surveying needs with one of our professionals. u

norseman structures

Norseman Structures Introduces New Building Designs

fter months of research, engineering and design, Norseman Structures has introduced two new buildings to the steel-framed, fabriccovered building market. The A-Series building is the cost-effective, engineered building solution perfect for manufacturing facilities, warehousing operations, salt and sand storage, riding arenas and airplane hangars. The building is available in 30’ to 70’ widths, manufactured to any length. The 6’ and 8’ leg options provide increased clearance, allowing for improved storage capacity. Designed with functionality and cost in mind, this building is available in a variety of mounting options, resulting in versatile installation, decreased shipping and foundation costs and reduced labor and installation expenses. The F-Series building is the heavy-duty, wide-span premier engineered building solution for large-scale operations. This building is available in 90’ to 130’ widths, manufactured to any length. The I-beam leg provides f lexibility in sidewall height, allowing for various overhead door and side entrance options. As well, the straight sidewall design allows customers to utilize complete square footage and store oversized items and materials directly against walls. For added building security, the straight sidewall design permits various exterior finishes, such as metal cladding. Some applications for this structure include sports centres, commodity and equipment storage and production plants. Both the A-Series and F-Series buildings are available worldwide and designed in accordance with structural requirements of the International Building Code, CSA A660-10 and CSA S367. Norseman Structures operates over 200,000 square feet of quality controlled

manufacturing space and, combined with an extensive distribution network and corporate offices, is a world leader in the manufacturing and distribution of steelframed, fabric-covered buildings. We are

committed to becoming the leading and most respected supplier of innovative building solutions in the world. Norseman Structures – fiercely reliable since 1921. u

Alternative Building Solutions Norseman Structures clear-span buildings provide a strong alternative building solution for oil & gas site operations. Our structures are ideal for: • Equipment and machinery storage • Maintenance shops and warehousing • Fusion buildings and cold storage • Aggregate, salt and sand storage • Wash facilities and warm up tents

Check out our NEW website - www.norsemanstructures.com TF: 1.855.385.2782 Manitoba Oil & Gas Review 2012

ADVANCED GROWTH GROUP

Advanced Growth Group

Works for You

Dwight Logeot

dvanced Growth Group provides clients a one-stop solution for all financial needs by providing purchasing strategies, financing and leasing options for land and equipment. We have aligned ourselves with key insurance brokers with solutions for producers to protect their investments. We believe our innovation, honesty and experience can bring growth to your bottom line. Advanced Growth Group has recently diversified into the oil industry, offering equipment leasing in several areas of the oil field. We have successfully placed leasing for assets such as pump jacks and a variety of oil field trucks from vac trucks to hot oilers. The biggest advantage to leasing comes when acquiring buildings, like pole structure or steel. This type of asset depreciates very slowly, and it can take years to get your tax dollars back. We’ve been setting up leasing for pole sheds and steel structure buildings amortizing from two year period to as high as ten years. This allows you to retrieve 100% of your available tax dollars over this time frame. Using several lending companies to give you access to the best rates in Canada, Advanced Growth Group is not the country’s biggest broker but we are the most personable and we strive to provide fast approval times with the greatest selection of companies for your financing needs. We have access to more than a dozen leading leasing companies, allowing us several options for our clients. Many of our leasing companies have very specific appetites and require precise information and packages. We pride ourselves on having aligned ourselves with the right companies and partners to get the best products and services to our clients. The biggest misconception of brokers is

Manitoba Oil & Gas Review 2012

that we come at a cost to the client. We do get paid for our services – we’re compensated by the bank or leasing company, so there are no added costs to our clients. We pride ourselves on being able to get the banks and leasing companies competing for your business, letting the client to stay at arms length from the situation. But remember: the best rate isn’t always the best deal for our clients. The leasing world hasn’t always been represented honestly by all institutions and brokers; it can be misleading or there could be extra expenses and fees incurred if you don’t have all the information. We offer free consultation to help with your business needs and discuss the many advantages and disadvantages of leasing, depending on your situation and the asset. We work for you, not the bank! The Advanced Growth Group Team Dwight Logeot, Partner Dwight Logeot grew up in Southwest Manitoba and gained hands-on experience from five years of farm equipment management, along with 10+ years of agriculture equipment sales, in both leasing and financing parts. Complimenting that experience are his technical knowledge, including a three-year management-training course as well as several other industry training courses, his ongoing studies help keep him current on today’s changing business landscape. He is currently finishing his General Insurance License and plans to continue his studies in succession planning. Dwight founded Advanced Growth Group (AGG) with a clear purpose: “I will continue to get my clients the best possible service and products for their needs. I look forward to the possibilities that AGG

Tammy Thompson

can bring to the community and look forward to establishing relationships with new clients as well as dealing with clients that I have supported in the past.” Glen Tosh, Partner Glen brings over 10 years of lending experience to Advanced Growth Group, including seven years as a Branch Manager for a local Credit Union, handling residential mortgages and working closely with agricultural and commercial clients. For the past three years, Glen has been a mortgage broker for Dominion Lendings Advanced Growth Group, finding clients the right residential mortgage while assisting commercial clients start up or expand their business. Glen is also a licensed Real Estate Agent working with Royal Lepage Martin Liberty Realty based out of Souris. Glen is focused on delivering first-class service to his valued clients and putting them and their needs first. It shows, as much of his business comes from client referrals. Glen wants to build strong, lifelong relationships one person at a time. Tammy Thompson Tammy brings more than 15 years experience in financial and mortgage lending. Starting with Wells Fargo Financial as a customer service representative and working her way up to store manager, Tammy’s main focus is customer needs, and she continues to strive for 100% customer satisfaction. Tammy is currently working as a mortgage broker in Brandon and currently works with clients across Canada to put them into their dream homes or help customers get into a better position financially. u

Access to the very best products and rates available across Canada.

Leasing

Vac trucks to pump Jacks, automotive and trucks.

Consolidate all your high interest debt into one low monthly payment. We can also help with residential mortages and house lines of credit. Dwight Logeot / Franchise Owner Leasing & Mortgage Professional dwight@advancedgrowthgroup.com

www.advancedgrowthgroup.com Dwight: 204.573.7787 â&#x20AC;˘ Fax: 204.573.7787 #20 Suite, 7 â&#x20AC;&#x201C; 18th Street, Brandon, MB R7A 5B6 LOCALLY OWNED AND OPERATED

PACIFIC GEOTECH

Maps: The Lifeblood of the Oil and Gas Industry

he oil and natural gas industries are major drivers of Canadaâ&#x20AC;&#x2122;s economy. It is estimated that upstream oil and gas accounts for $100 billion of revenue annually in Canada. And over the next 25 years, it is expected that the Canadian oil and gas industry will deliver almost 25 million person years of employment, or almost one million jobs each year. This is expected to have a $3.6 trillion impact on the Canadian economy. Spatial Data and the Exploration Process Exploration is a vital part of the success of both petroleum and mining companies focusing on the discovery and definition of resource assets to be developed and put into production. Spatial data or maps are the lifeblood of the exploration process. Arguably, exploration is a process of continuously generating, analyzing and reporting spatial information to enable go-no-go decisions about the exploitation of the resource asset.

Manitoba Oil & Gas Review 2012

There are two broad categories of mapping: reconnaissance and operational. Reconnaissance is the discovery and definition of a particular oil and gas play or ore body and it involves both surface and sub-surface work. Airborne and surface surveys seek to define the probability that a resource asset is present. This is the basis for follow-up drilling programs that progressively discover and define the extent of the asset. In both cases, considerable geological, geophysical and geochemical data and analyses are generated. These datasets are processed, modeled and displayed using a wide range software tools and applications including 3D modeling and decision support systems. The operational side deals with the regulatory dimension, which is no less considerable. This includes the acquisition and continuous management of properties and tenures in different jurisdictions, environmental assessments and stakeholder consultations. This is particularly the case with unconventional or shale

gas plays: because more wells have to be drilled and because of the amount of water and sand that is used to fracture and stimulate the shale rock to release the gas, there is more of an imprint on the community. This involves more extensive environmental assessments and more intensive community relations. All of this involves a wide range of maps: first, asset definition, modeling and analysis; second, asset development and production planning. Asset definition maps include geological, geophysical and geochemical survey and drilling results modeling and displays as well as topographical, water bodies and other base maps. Asset planning maps include similar base maps and additionally, land title and land use data, integrated transportation, administrative boundaries, ecological datasets and critical infrastructure. The Challenges There are three main challenges facing petroleum and mining geomatics groups: 1. There is considerable valuable map data that reside on paper maps that are typically stored in vaults, often inaccessible to analysts or for digital decision support tools; 2. Digital map data is often maintained on file systems with no clear documented rules on the structure of the system or the format of the files. This results in duplicates, update redundancies and inaccessible to applications other than those originating the data; 3. The petroleum and mining industries are hungry for solutions that can compile relevant, authoritative and related datasets and present comprehensive results in a single toolset for effective analysis and decision-making.

accurate overlays of relevant spatial datasets and ready access to spatially-defined quantitative data and reports and the application of analytical tools to enable more effective exploration workflow processes.

This leads to a failure to access existing and appropriate quality datasets resulting in either additional costs or worst still, missed opportunities. Solutions The solution to these challenges begins with the deployment of a well-designed spatial data repository to store, manage and access all spatial data to ensure data integrity. A central spatial data repository maintains the authoritative version of all corporate spatial data. It strictly enforces business rules with respect to acquiring,

storing, updating, managing and accessing data quickly and accurately to support rapid analysis and effective decisions. The spatial data repository can be used to support the migration of paper maps to digital data by scanning, geo-referencing, feature digitization, cataloging and storage for effective management, access and use. This requires an effective, automated workflow process that integrates the participation of all stakeholders to ensure the quality and integrity of the data. Finally, the customization and deployment of a â&#x20AC;&#x153;digital light tableâ&#x20AC;? can provide

About Pacific GeoTech PGTS is one of Canadaâ&#x20AC;&#x2122;s leading e-business and e-government solution providers and software development companies, combining strong business understanding and technical expertise to deliver spatial data infrastructures and custom webbased business solutions for land use and resources management. PGTS has demonstrated knowledge and expertise in the design, development, deployment and support of web-enabled mineral and petroleum (oil & gas) tenure management systems. For more information, please visit our website at: www.pacificgeotech.com or contact info@pacificgeotech.com. u

Manitoba Oil & Gas Review 2012

mnp

Freehold Mineral Rights by Stino Scaletta, CA

“Freehold Mineral Right” is Canadian Resource Prop-

is significant, the tax liability on the final tax return may create

erty (CRP) for income tax purposes and is not consid-

an unwanted tax burden to the estate causing a situation where

ered capital property; any gain on the disposition of

the only recourse for the estate is to sell the CRP.

CRP either on a sale or upon death will be taxed at the 100%

Valuation of an interest in CRP has become complicated in

inclusion rate.

that the Canada Revenue Agency (CRA) had previously allowed

Income received from CRP is generally treated as investment

or not challenged the rule of thumb method of valuing CRP.

income and as a result is not considered earned income for

The rule of thumb method uses a multiple applied to the aver-

RRSP purposes nor is the income eligible for the small business

age annual royalty income received. Recently the CRA has stated

rate for income tax if received by a corporation. A Canadian-

through their audit process that a simple multiple of annual

controlled private corporation that receives royalty income and

cash flow is not sufficient evidence of value and that a proper

pays a dividend to its shareholders will be entitled to a refund of

valuation should take into account initial production, decline

some of the corporate taxes paid on the royalty income.

rates, price forecasts and discounts factors. For situations when

Upon the death of an individual CRP holder, there will be a

CRP is not yielding royalty income and a value is needed for

deemed disposition for proceeds equal to the fair market value

estate or tax planning, consultation with a geologist, business

on the final tax return and by definition the CRP cannot be re-

valuator and tax specialist should be done prior to commencing

ported on a “Right or Thing” tax return. If the value of the CRP

the transaction.

We put our energy into knowing your business.

The oil and gas industry is constantly changing. That’s why you need strategic business advice from a professional who understands our business and the market in which you operate. At MNP, our teams of specialists resolve complex issues by delivering premium solutions that help you respond to emerging trends, anticipate risk, improve performance and operate more efficiently. Working closely with you, we also help you determine which business structure, including ownership and entity, will best serve your business and tax planning needs so you can keep your business opportunities flowing. It’s knowing your vision, your business and you. At MNP it begins with a relationship. To find out what MNP can do for you, call Julee Galvin, CA in Virden at 204.748.1340, Deb Calverley, CGA in Deloraine at 204.747.2842 or Audrey Bonkowski, CA in Moosomin at 306.435.3347.

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Manitoba Oil & Gas Review 2012

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For estate planning purposes, a popular strategy is to incorporate CRP thereby changing an income asset into a capital asset.

Advantages to Incorporation The transfer of CRP can be done on a tax deferred basis with the ability to “freeze” the value of the estate. This frozen estate value can then be reduced over time on a tax-efficient basis. There is also the ability to income split the royalty income with other family members. On death, the disposition of shares will be subject to tax at

*Mark of Schlumberger.

the 50% inclusion rate thereby reducing the estate tax on the CRP by 50%. Disadvantages of Incorporation The tax rate for Income on royalty income will be higher than the personal tax rate. There are potential pitfalls in that obscure tax such as corporate attribution, “kiddie” and land transfer tax may apply after the incorporation of the CRP. Although incorporation of CRP can be used to minimize tax upon the death of a CRP holder, this strategy may not be appropriate for all situations and professional advice should be sought before proceeding. u

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sensus

Get the Government’s Skin into the Game with SR&ED By Frank Bennett, CGA, Office Manager for Sensus Partnership of Chartered Accountants, Virden Office

“The man who comes up with a means for doing or producing almost anything better, faster or more economically has his future and his fortune at his fingertips.” – J. Paul Getty

have often heard of the Canada Revenue Agency being described as “the silent business partner that assumes no risk but shares in the profit”. The SR&ED Program is a Canadian Government initiative to stimulate scientific research, experimentation and development by reimbursing up to 46% of allowable expenditures to qualifying corporations. The SR&ED incentive program has resulted in over $5 billion being put into the pockets of 18,000 businesses per year in the form of either cash payments or reduction of taxes payable. Over 75% of the businesses in receipt of SRED are small to medium-sized companies. According to CRA, over half of the companies performing scientific research, experimentation and development work are missing out on the benefits of this program. Is

Harold reid, Ca audra NyCHuk, Ca MarCia Sedor, Ca

your organization taking advantage? The payment of SR&ED tax credits is dependent upon having a qualifying project. According to Section 248(1) of the Income Tax Act, the prospecting, exploring or drilling for, or producing, minerals, petroleum or natural gas is precluded from scientific research and experimental development project eligibility. This specifically relates to the drilling of a well in whole. There are, however, unlimited projects within the drilling process that will qualify. For example, the drilling of an exploration well will not qualify; however, the creation of new tool or modifying an existing tool used in the exploration well would qualify. Failure to make this distinction has led many in the oil and gas industry to forego valid claims. Your company does not need to invent

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Yorkton

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Virden

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Manitoba Oil & Gas Review 2012

the mouse trap; just make it better and SR&ED will beat a path to your door. The experimental development to accomplish technological progression in order to improve materials, devices, products or processes may qualify for SR&ED funding. As long as the applied research, which increases the scientific knowledge base of the organization, is used in a specific practical application the work may qualify SR&ED tax credit. The provision of engineering expertise, modelling, process analysis, statistical examination, computer programming, data collection or testing may be part of an SR&ED claim, but only if the work is corresponds directly to the eligible experimental development, or applied or basic research. The prevalent fallacy encountered with SR&ED is the misconception that

Partnership of Chartered Accountants We understand your business.

sensus SR&ED is the realm of scientists and

ciated with an SR&ED project qualify as

The Department of Finance is respon-

their white lab coats tucked away in se-

well. Sub-contract payments for tasks in

sible for the legislation that governs the

cret hi-tech research facilities. Ninety per

support of an SR&ED project may earn

SR&ED Program and the CRA oversees

cent of SR&ED dollars are due to work

further credits. Often the most beneficial

the administration. As with any govern-

out in the field or work done on the shop

credit applies to wages of staff completing

ment initiative, change is inevitable and

f loor. One-off projects to solve an infre-

SR&ED work, as this may also include

often. Attain the confidence of a compli-

quent obstacle and ad hoc remedies are

the fair market value of owner remunera-

ant SR&ED claim and receive the maxi-

often over looked while SR&ED dollars

tion. In order to maximize the value of

mum benefit with the assistance of a

are gone astray. An ongoing review of an

an SR&ED claim, seek professional as-

professional experienced in the SR&ED

organization’s day-to-day work f low by

sistance to unearth hidden yet allowable

Program. In doing so, you will add to the

qualified professionals is the only way to

costs.

value of your company. u

ensure your company receives their maximum entitlement. The SR&ED program permits your organization to request a tax credit based upon most of the expenditures related to accomplishing research and development each fiscal year. Expenses relating to materials devoted an SR&ED projects, including scrap, may be claimable. The addition of capital assets used solely in an SR&ED projects may enhance a claim. A

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proxy of leases and overhead costs asso-

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first energy

Focus, Commitment and Philanthropy Drive First Energy to the Top By Kathy Hnatiuk – Peritus Communications

lmost twenty years ago, four thought leaders met secretly behind closed doors at the Cal-

FirstEnergy has always taken an innova-

in its second year despite a massive glob-

tive approach, excelling as problem-solv-

al financial downturn. It was great tim-

ers to their clients. As of March 2012, the

ing supported by hard work and strong

gary Petroleum Club. For a year they

tightly knit, hardworking team has raised

planning. London is the energy financial

developed a company vision, solidified

over $89 billion for clients through 1,142

centre of the universe, providing an inter-

their core values, defined their area of

energy sector financings. Lead by one of

national portfolio of clients, with antici-

concentration and knew that when the

the company’s co-founders, Jim W. Da-

pated growth of 45% to our business over

doors opened in September 1993 at the

vidson, FirstEnergy has a long history of

the next decade.”

top of the (boom and bust) cycle, they

consistency and top tier performance.

FirstEnergy’s innovative approach cre-

were not in business to test waters but

Since inception, FirstEnergy has con-

ates new opportunities for energy com-

to make waves in the investment com-

tinued to grow and has increased its glob-

panies requiring capital and enhances the

munity. Their timing was defining: the

al reach by diversifying energy offerings

evaluation and dissemination of energy

TSX energy index plunged for the next 18

to its clients through partnership with

related research to new levels of quality

months. Where many companies would

France-based Societe Generale in 2005.

and accuracy. Their business model has

have failed, strong planning and a very

In 2009, FirstEnergy opened a London

reshaped the way financial companies

cost conscious approach prevailed keep-

office to service the growing demand for

specialize in specific sectors, including

ing FirstEnergy in good stead, to this day,

energy investment in South America, Af-

energy. The strong work ethic may come

during times of volatility. Today, FirstEn-

rica, Southeast Asia, the Middle East, Eu-

from the company’s structure; FirstEn-

ergy is a top tier investment bank focused

rope and the former Soviet Union. “The

ergy has always been a private company,

on one sector – energy.

partnership with Societe Generale en-

with directors who are also owner opera-

This focus has enabled FirstEnergy to

abled local knowledge and global reach,”

tors.

become experts in energy by support-

according to Jim Davidson, Chairman

FirstEnergy’s dedicated focus on the

ing oil and gas companies with finance

and CEO of FirstEnergy. Jim further ex-

energy sector is seen as their competitive

requirements, providing advice and shar-

plains their expanded reach: “Our global

advantage and distinct value proposition.

ing highly detailed research analysis on

presence increased in 2009 with the Lon-

Comprised of 100 staff in Calgary and 35

the 200 companies currently covered.

don office opening which was profitable

in London, the firm represents clients

LARRY’S OILFIELD ENGINE Service – Rentals Shop: 204.748.2111 Cel: 204.748.5928 88

Manitoba Oil & Gas Review 2012

Serving you from locations in Elkhorn, Miniota, Birtle, Rossburn and Russell MB Contact Info 204-842-3387 Fax 204-842-5326 www.twinvalleycoop.ca

first energy globally. From inception, FirstEnergy’s strategy has ensured profitability in every quarter of it 19 year history. It is the leading underwriter of oil and gas securities with research analysts consistently receiving high ranking in their disciplines. Jim’s innovative spirit, acute sense of timing and high level of industry credibility has resulted in strong financial returns for the company. FirstEnergy’s open office environment has the managing directors working alongside staff members ensuring they are accessible for guidance and leadership. The founding partners have always ensured clients are the focus and foundation of FirstEnergy by incorporating the highest levels of integrity, timeless values and strong compliance. FirstEnergy’s client functions are renowned throughout the industry. Rather than marketing FirstEnergy, the company redirects energies to marketing their clients through annual conferences held in major financial centers such as New York, London, Toronto, Montreal and, last year, in Colombia. In addition, clients are invited to market updates with Martin King, Vice President of Institutional Research. The advent of enhanced web technology means these “invite only” conferences and updates are both free and accessible to everyone through webcasts on the FirstEnergy website home page (www.firstenergy.com). Additionally, other innovative research such as FirstIndex, an energy-based index, is available to anyone at anytime. Market indices are the leading measure of investor sentiment. Through FirstIndex, the public can more easily and accurately predict prevailing attitudes in the energy industry. Along with following market trends, FirstEnergy maintains close watch over changes to markets closer to home. FirstEnergy recognizes the increased prominence of Manitoba in the Western Canada energy landscape and supports a number of clients with growing presence in the province, including: ARC Resources, Crescent Point Energy, Fairborne En-

ergy, Legacy Oil & Gas Inc., Penn West Exploration, Petrobakken Energy, Renegade Petroleum, Surge Energy and Whitecap Resources. Clients with interests in Manitoba are benefitting from the industry’s technological advancements, which include enhanced recovery through multistage fracturing techniques and waterf looding. The Spearfish formation near Waskada has significant potential for oil and gas companies. Infrastructure development and increased transportation routes will further enhance the regions attractiveness. This, coupled with no royalties incurred on Manitoba crown land, illustrates why FirstEnergy clients have strong incentives to pursue this region. The demonstrated success of its clients is evidenced by their early entry into the region and recently reflected through increased land prices and higher values for acquisitions. For example, Fairborne Energy recently entered into a strategic alternative review process and has current production of 850 bbls/d on its Sinclair assets, which are targeting the Three Forks/Bakken oil. Fairborne Energy has approximately 15 sections of land with an estimated 140 undeveloped locations. FirstEnergy anticipates high interest from potential buyers for this high netback asset. FirstEnergy is not all work; one of their core values, which forms part of the company’s DNA, is giving back to the community, with 2.5% of gross revenues given back to local charities regardless of market conditions.

In over 19 years, FirstEnergy and its partners have donated over $32 million to 300 plus charities. In 2011, highlights include: FirstAid charitable trading day, raising over $500,000 in response to the Slave Lake wild fires; $285,000 raised for the Enbridge Ride to Cure Cancer; and over $250,000 raised through FirstRowdy, the company’s annual Stampede function. Closer to home in 1997, Manitoba experienced the most severe flooding of the Red River with $500 million in damage. FirstEnergy allocated its trading commissions to the Manitoba flood relief, raising $450,000. Giving back to local charities has been both a point of differentiation and a marketing tool as clients recognize that we care. With the level of financings and focus on corporate social responsibility comes peer recognition, including the Ernst & Young Entrepreneur of the Year Awards, numerous top 40 under 40 awards, Canada’s 50 Best Managed Companies, Best Place to Work, and Volunteerism and Community Involvement awards. As the twentieth anniversary of FirstEnergy approaches, a few things remain certain: a continued focus on energy in Western Canada and beyond; a commitment to good business; and a sense of responsibility to give back to the community. * FirstEnergy Capital Corp. is a member of IIROC and the Canadian Investor Protection Fund. u

232 12th Avenue, Estevan, SK S4A 1E2

Garth Hoffort - Land Manager Sheila Guenther - Operations Manager

Surface:

Services offered:

Wellsite acquisitions Pipeline right-of-ways Damage settlements Third party agreements Rental reviews

Minerals:

Freehold lease acquisitions Crown lease acquisitions Locate missing title owners All related administration Confidentiality

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Manitoba Oil & Gas Review 2012

PRAIRIE SKILLS EMPLOYMENT SERVICES PROJECT

Prairie Skills Valuable Services

rairie Skills Employment Ser-

cover letter, job applications, interviews,

skills programs and a Youth Community

vices Project is hosted by Prairie

assistance with assessing skills or return-

Plan, both funded by Service Canada. PSI

Skills Inc., a non-profit organiza-

ing to school to upgrade skills. PSESP

is currently looking at offering oil ticket

tion run by volunteer board members

also assists employers in the local com-

courses and Class 1 training. Due to the

and funded 80% by the Government

munities with job posting, labour market

high demand in these fields and the lack

of Manitoba & 20% by Service Canada.

information and job referrals. The main

of skilled labourers, PSI feels it would be

PSESP assists individuals to prepare, find

office is in Deloraine, with new computer

beneficial to host these programs to help

and maintain employment within rural

facilities and free Internet access avail-

both employers and potential employees.

Southwest Manitoba.

able to the public. We also have itiner-

These are valuable services offered to

PSESP offers a professional and friend-

ant sites in the Turtle Mountain Adult

all the local communities in the South-

ly service to all individuals in need of

Ed Centres in Boissevain & Killarney on

west Region to aid and benefit individu-

assistance, using a number of resources

Tuesdays, the Melita Library on Thursday

als/employers. Access to services of this

to help clients achieve their end goals,

afternoons and Hartney by appointment

type is normally found in the cities and

whether they’re looking to gain employ-

when needed.

without the support, programs like these

ment and need support creating a résumé/

In the past, PSI has offered several life

disappear from the rural areas. u

Prairie Skills Employment Services Project We offer the following services: Oakland Industries is the company to call for

✓ Resume and cover letters ✓ Interview preparation

all your electrical needs. We’ve been in business for more than 14 years, and our exceptional electrical contracting professionals are the best

✓ Job search techniques ✓ Placements and referrals

in the business. Give us a call and let us know how we can help you today!

✓ Career exploring/planning ✓ Information on training opportunities

Servicing the rural communities of: Deloraine, Boissevain, Killarney, Melita & Hartney areas

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Manitoba Oil & Gas Review 2012

 Oil and Gas Facility

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atom-jet group

Atom-Jet Group –

One Stop for Every Oilfield Need

elebrating 50 years of experience in sales, service, manufacturing and repair, Atom-Jet Group is positioned to continue to grow and expand their relationships with clients the oil & gas industry. With a diversified portfolio of with divisions, the organization provides their clients a solution-based approach to business, driven by their corporate vision of “Leadership Through Innovation”. Offering a broad scope of industrial services, Atom-Jet Group is proud to provide a “one-stop shop” benefit to their clients, including precision Machining and Advanced Manufacturing services, a division dedicated to Structural Steel and Metal Fabrication and a commercial grade Powder Coat Paint Facility. With an international presence in Russia, Eastern Europe, Australia and throughout North America, the Agriculture Division of Ground Engagement Tools and Hydraulic Solutions has led the industry introducing innovative products - a direct result of Atom-Jet Group’s commitment to Research & Development. Expansion into custom Carbide Brazing and the recent addition of the AJILity Lift, a device to assist disabled individuals

continue employment, help further their commitment to innovation. This defined business strategy earned the company a Business Excellence Award in 2009 and ranked Atom-Jet Group as one of Manitoba’s Top 50 Fastest Growing Companies over the last decade. Guided by non-negotiable core values that define the organization, AtomJet Group places key importance on corporate citizenship. This fact exemplified upon receipt of the Lieutenant Governor General’s Award for Outstanding Contribution to the Community. A Range of Services With two plants in Brandon, Manitoba and over 50,000 square feet of operating space, Atom-Jet Group employs nearly 100 skilled trades and senior management. The company collaborates with clients on every aspect of the job to deliver a superior product. From custom machining to general repair to mass production, Atom-Jet is the only stop for any client’s oilfield needs. Atom-Jet Group specializes in tank manufacturing - personal, industrial or municipal. Well known for custom solutions in hydro-vac trucks, they can also provide immediate delivery on industrial waste handling equipment and potable water systems - backed with a full line of replacement parts and a knowledgeable service team. Full welding services are also available, both in-house and on-site, structural steel and other metal fabrication, along with mechanical installation services. The paint facility boasts both powder coat and wet paint options, including industrial sandblasting on a commercial scale. Atom-Jet Group operates the largest custom machine shop in Western Mani-

toba. The division is fully equipped with a variety of conventional machining tools, as well as state-of-the-art multi-axis CNC machines fully capable of handling almost any request: “one-of-a-kind” parts, driveline and hydraulic cylinder repair, align boring, production machining, and custom fabrication - all CWB accredited and approved by ISO Quality Assurance management. Atom-Jet Group’s custom carbide application covers a variety of areas and needs. What started with in-house brazing, forming and welding, opened the door for carbide applications in agriculture, forestry, oil & gas and other industries over the last 25 years. They can also assist with the design & manufacturing for any high-wear situations application. The Atom-Jet Group Advantage Atom-Jet was founded with a vision of creativity, quality workmanship and fair dealings – a philosophy still embraced in the organization today. The Atom-Jet Group Advantage is a result of that belief which led the company to focus on four

Manitoba Oil & Gas Review 2012

atom-jet group

essential areas crucial to their success: Reliability – “On Time, Every Time” service has become a mantra at Atom-Jet Group. They understand the importance of timeliness and the potential negative impact that can occur on the bottom-line as a result of missed deadlines. Quality Assurance – Atom-Jet Group is committed to the highest standards.

Consistent and methodical internal audit procedures, ongoing training and certifications held by Atom-Jet Group divisions – including CWB, COR, ISO 9001-2008, ISNetworld, CTEA and CRN – ensure a positive and professional working relationship with clients. Innovation – Proud to be at the leading edge of the industry, Atom-Jet Group is prepared to invest in innovation. Research & Development is a key element in the company’s growth and development that represents their vision as an organization. Over the last five years, they’ve introduced seven new products to the marketplace. Team – Atom-Jet Group knows a successful organization is built on the foundation of a solid team. That’s why their primary goal is attracting, developing and retaining the best talent through global recruiting drives and challenging their

employees, all while fostering a collaborative, mutually supportive environment. Atom-Jet Group works to these high standards every day, with a mission to be a reliable resource to all customers by consistently providing innovative solutions to improve productivity and profitability. These core values and wealth of experience provide their clients the Atom-Jet Advantage. Visit www.atomjet.com or call 1-800-573-5048. u

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Manitoba Oil & Gas Review 2012

TRAINING YOU IS OUR BUSINESS *Aerial Lifts *Cranes *Excavators *Forklifts *Logging *Railway *Equipment *Rigging *Consulting

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outback mats

Outback Mats Brings the Strength of Family to Business

stablished in 2011, Outback Mats is a family owned company located in Hartney, Manitoba. Out-

“We are a farm family who saw a

has worked away from home for a lot of

need in the local oilfield that we could

years. This was something we could do

fill,” says Shawna Temple, who owns the

back is in the business of selling and rent-

business with her husband Murray and

together and keep everyone at home so

ing rig mats to the oil and gas sector and

her parents, Doug and Helen Fenwick.

offers both oak and fir mats, available in

“My mom has been a successful business

different sizes.

owner for more than 25 years and my dad

we have more time with our family.” Shawna says they are trying to work together to add to their farm, business and provide for our family so our children can come back to a rural community if they choose. She says they currently farm 5,000 acres and would like to expand, but with the increasing land values, lack of available land and experienced labour heading to the oilfield, they started looking at different options to add to our business. They own the one remaining elevator in Hartney and purchased the trackside, allowing access to rail service to bring in mats by railcar. “We do our very best to provide excellent customer service,” Shawna says. “We are efficient and are committed to building strong relationships with our customers.” u

Manitoba Oil & Gas Review 2012

IMPACT OIL

Moving Forward with Impact Oilfield Management Team

regg Fischer ranched in the Interlake of Manitoba in the mid‘70s, and in order to support the family farm, Gregg and his father-inlaw both went to Alberta to roughneck in the oilfield. In the early ‘80s, the oil and gas brought Gregg back into Manitoba, in the southwest corner. He then moved his family to the Melita area and worked as a Rig Manager for Can-Am Drilling, where he met up with Steve Lobreau from Pipestone, Manitoba. Steve and Gregg worked for a few oil companies but mainly for Manitoba Oil and Gas, which later became properties of Tundra Oil and Gas. They both remember the ‘80s as being fun and enjoyable from every aspect of their lives. Their families and work families were closely connected and found themselves often skating on ponds or rinks with family and co-workers, hunting and fishing together on their time off or bonding as a crew during shift. The oilfield came to a screaming halt in 1986, and Steve stayed farming in Pipestone. Gregg moved his family to the Steinbach area and went from oil rigs to the water well rigs. He worked for Friesen Drillers, the mother company of Can-Am. There, the value of our freshwater resources and the recourse we need to take while drilling in the oil and gas industry became very clear. In early ‘90s, the oilfield started getting things moving just down the road into

Saskatchewan, where horizontal drilling first came into play. Friesens gave Gregg their blessing and he headed west, back to the oilfield, where he saw many familiar faces. Within the year many of the Can-Am men were back working together. During this time, Steve and Gregg were rig managers and company representatives for the Williston Wildcatters based in Arcola, Saskatchewan. There were many wells drilled, lots of learning and new technologies. Anywhere from different polymer mud systems, mud motor drilling, PDC bits, MWDs that sped up the industry and from there has further excelled the industry to where it is today. The first horizontal wells were taking as long as a month to be drilled and now some of the same wells can be achieved in less than a week. In 1995, both Gregg and Steve joined up with a consulting company called DLM Oilfield Supervision of Carievale, Saskatchewan. They gained extensive knowledge in the new technologies and were able to work in other parts of North America, broadening their perspective of the industry. In 2007, they acquired the company and renamed it Impact Oilfield Management Team Inc. What sets Impact apart from the rest is the belief of leaders, leading with integrity and its strong family values. Family is important, and so is feeling part of a team. The Impact office is located in Carlyle, Saskatchewan, Gregg’s home, and the Impact team is always welcomed to sit around the dinner table and share a meal or stop in for a coffee anytime. The team members live as far away as Grimshaw, Alberta and Kamarno, Manitoba. But as a team we invite all the families together for fun a couple times a year.

Over the years we have done some skeetshooting, along with a BBQ, had family fun games and even entered an Impact f loat during the local winter parade of lights and had many of the children of the team ride along and toss candy. Most of the team enjoy many outdoor activities such as hunting, fishing, quad rides, motorcycle rides or just each other’s company. Both Steve and Gregg have realized that as they travel and move forward, it doesn’t matter where the industry takes them; they meet up with the same people they have rubbed shoulders in their past. The Impact team is big enough to meet all of your company needs, yet small enough to care. u

Manitoba Oil & Gas Review 2012

Index to Advertisers

24-7 Enterprises Ltd.................................................................................. 58

Ener-Test Well Servicing & Rentals Ltd............................................ 43

ABCO Supply & Service Ltd...................................................................31

Essential Coil & Stimulation Services.................................................19

Accu Land Services Ltd............................................................................ 58

Estevan Chamber of Commerce...........................................................53

Advanced Growth Group......................................................................... 79

Estevan Meter Services Ltd.................................................................... 54

Advanced Growth Group | Outback Mats........................................13

Estevan Plastic Products Ltd.................................................................. 55

Agwerks............................................................................................................ 25

Expro Group Ltd............................................................................................71

All Test International Inc........................................................................... 63

Fast Trucking Ltd.......................................................................................... 33

Allen’s Machine Works.............................................................................. 33

Fillmore Riley LLP........................................................................................64

Altus Geomatics Manitoba...................................................................... 75

Fontana’s Trucking (2006) Ltd............................................................. 63

Annugas Compression Consulting Ltd.............................................. 23

Fountain Tire.................................................................................................. 29

Atom-Jet Group........................................................................................... 93

Four Corners Associates.......................................................................... 27

Baker Hughes................................................................................................IFC

Freightliner Manitoba Group...................................................................31

Bird River Resources Inc...........................................................................61

GB Contract Inspection Ltd....................................................................80

BSM Wireless Inc..........................................................................................16

Graham Group Ltd.................................................................................. OBC

Cancade Company Limited....................................................................60

Grimes Sales & Service Co. Ltd........................................................... 69

CanElson Drilling Inc.................................................................................. 34

Harmax Services Ltd.................................................................................. 40

Carson Energy Services Ltd....................................................................15

Heat Hawg....................................................................................................... 25

Central Hotel.................................................................................................. 63

Hodgson Custom Rolling Inc.................................................................. 83

Clariant Oilfiled Services / Prairie Petro-Chem............................ 62

Hot Rod’s Oilfield Services Inc...............................................................16

Classic Vacuum Truck Ltd....................................................................... 45

Hydrodig Canada......................................................................................... 20

Countryside Inn............................................................................................. 85

Impact Oilfield Management Team....................................................... 4

D&G Polyethylene Products Ltd...........................................................14

Integra Tire Auto Centre........................................................................... 87

D.B. Higgenbotham.................................................................................... 28

Ironrider Oilfield Services........................................................................ 48

Dalziel Oilfield Consulting Ltd................................................................ 43

Jay’s Inn & Suites......................................................................................... 25

Days Inn Brandon........................................................................................ 33

Larry’s Oilfield Engine................................................................................88

Diamond Shelters......................................................................................... 11

Lee’s Service Centre................................................................................... 27

Elite Safety Services Inc........................................................................... 22

Manitoba Innovation Energy & Mines.................................................. 9

Enbridge Pipelines (Virden) Inc............................................................ 42

Melita Chamber of Commerce............................................................. 42

Manitoba Oil & Gas Review 2012

Metra Equipment Inc................................................................................. 35

RM of Wallace............................................................................................... 92

Midwest Industrial Services.....................................................................21

RM of Winchester........................................................................................ 38

Midwestern Redi-Mix (1980)................................................................ 27

Rocking Horse Energy Services.............................................................. 7

Millennium Directional Service Ltd..................................................... 73

Royal Oak Inn & Suites..............................................................................31

MNP LLP.......................................................................................................... 84

R.T. Jebb Electric........................................................................................... 42

Neset Consulting Service......................................................................... 24

Ryan Bochek Consulting Ltd.................................................................. 44

Noble Well Services Inc............................................................................ 87 Norbertâ&#x20AC;&#x2122;s Trailers.......................................................................................... 44 Norman G. Jensen, Inc.............................................................................. 45 Norseman Structures................................................................................ 77 Oakland Industries Ltd..............................................................................90 Outlaw Oilfield Hauling Ltd.....................................................................68 Pacific Geotech Systems Ltd...................................................................81 PennWest Exploration...................................................................50 & 51

Safety Source................................................................................................ 85 Schlumberger Canada Ltd...................................................................... 85 Sensus Partnership of Chartered Accountants...........................86 Sto/Van Oilfield Maintenance................................................................ 29 Sunrise Credit Union................................................................................... 17 Suretuf Secondary Containment Partnership............................... 37 Testlabs International Ltd......................................................................... 22 Texcan................................................................................................................ 36

Pierson Welding Ltd................................................................................... 38 Pioneer Steel Buildings............................................................................. 87 Power & Mine Supply Co. Ltd............................................................... 63 Prairie Blasting & Coating Ltd...............................................................26 Prairie Skills Employment Services Project....................................90 Precision Well Servicing..........................................................................IBC Pro-Drill Industries Ltd.............................................................................. 92 PTI Group Inc.................................................................................................... 5

Town of Deloraine........................................................................................ 39 Town of Virden.............................................................................................. 28 Triangle Welding & Machine Ltd...........................................................47 TSL Industries Operations LP................................................................ 29 Tutthill Construction.................................................................................... 20 Twin Valley Co-op........................................................................................88 United Centrifuge Ltd................................................................................... 3

PWR Custom Fencing Ltd....................................................................... 29

United Rentals of Canada Inc.................................................................18

Raeâ&#x20AC;&#x2122;s Training & Consulting.................................................................... 92

Virden Mainline Motors............................................................................. 29

Ranchers Welding....................................................................................... 24

Watson Land Services (1994) Ltd......................................................89

Redvers Oil & Gas Show.......................................................................... 49

Western Financial Group......................................................................... 30

Redwood Motor Inn.................................................................................... 32

Western Heritage Services..................................................................... 67

Reliable Metal Buildings Ltd................................................................... 32

Workers Compesation Board of Manitoba..................................... 65 Manitoba Oil & Gas Review 2012

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