ROGUE ELF ADVENT CALENDAR
THE NEWSLETTER OF SAVANNA ENERGY SERVICES CORP.
PAGE 11
• AUSTRALIANA • AMERICANA • MEET GRANT • MEET RIG 656 • WHAT’S HAPPENING • WELLNESS CHALLENGE
Good Tidings DECEMBER 2014
MESSAGE FROM MANAGEMENT
A CHALLENGING MARKETPLACE by Ken Mullen, President & Chief Executive Officer
T
he year 2014 is drawing to a close. As with most years in our business, it has been highlighted by some fantastic highs, and some disappointing lows. We parted ways with some long term employees, which is always disappointing, but offset that with some tremendous additions and promotions to the Savanna team as well. The year started out with a bang, as we experienced one of the busiest winter drilling seasons in several years in Canada, improved our market position in the US, and started to generate meaningful returns
“ As with all such downturns, we have little insight into how deep the drop-off in activity will be, nor how long it will last. That said, we have been through this
THE NEWSLETTER OF SAVANNA ENERGY SERVICES CORP.
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Rig-n-Dig is published by Savanna Energy Services Corp. as an information vehicle for our employees and for our community. Suggestions and contributions are welcome and encouraged. Editor & Publisher: Patrick Brooks (403-718-2885, pbrooks@ savannaenergy.com) Managing Editor: John Bayko (403-781-9999, jbayko@ savannaenergy.com) Savanna Energy Services Corp. 800, 311–6th Avenue SW, Calgary, Alberta, Canada T2P 3H2 P: 403-503-9990 F: 403-267-6749 E: info@ savannaenergy.com Savanna Energy Services Corp. is listed on the Toronto Stock Exchange (TSX:SVY). For current stock information, visit tsx.com or savannaenergy.com.
ON THE COVER: blah blah blah
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RIG-N-DIG • DECEMBER 2014
before, and we will manage our business accordingly.” for our long term investment in Australia. Prospects for the rest of 2014 looked promising at the end of Q1, and we secured some much needed contracts on new-build equipment for Canada, Australia, and the United States as well. We continued expanding our capital plans in the first half of the year in response to ongoing requests from all of our operating groups for enhancements and improvements to existing equipment. In the US, we settled into our new offices in The Woodlands, a suburb of Houston; and in Canada, we broke ground on our Leduc drilling and well servicing facility to replace our prior shops in Nisku and to provide capacity to commission and re-certify, refurbish, and enhance our existing rigs on a go-forward basis. By year end, those facilities had begun to take shape and we are looking forward to the grand opening later
in 2015. We anticipate significant efficiencies and productivity from these facilities over the next many years. The last few months of 2014 have been just as eventful, although for very different reasons. A seemingly overnight freefall in oil prices has dramatically impacted our business since September. Prices have fallen almost 50% from their highs back in June, 2014, and at the time of me writing this article, are still falling. This radical adjustment has thrown the plans of our customers in every geography in which we operate into disarray. Capital budgets are being slashed with the inevitable result of reduced drilling and workover budgets heading into 2015. We believe that Savanna’s geographic diversification will help to offset some of these negative impacts, but we are not immune to the challenges faced by everyone in the industry. For now, activity has remained relatively strong, although we definitely do expect some slowdown to occur over the next several quarters. As with all such downturns, we have little insight into how deep the dropoff in activity will be, nor how long it will last. That said, we have been through this before, and we will manage our business accordingly. We do realize that this environment creates significant stress for our employees and their families alike. We are hopeful that the quality of our people and crews will help sustain Savanna’s utilization over the depths of the downturn, and I know our sales and marketing teams are doing everything they can to help hold on to existing work and to replace any customers we do lose. We are doing everything we can to react positively in the face of this very challenging marketplace. Despite these clouds on the horizon, we want to sincerely thank everyone for all their efforts for Savanna, and to wish all of you a safe and relaxing close to 2014. n WWW.SAVANNAENERGY.COM
H&W CHALLENGE
Resolution… Darren’s New Year’s Resolution…
The Wellness
Challenge I
n his role as Disability Management Team Lead, Darren Ferleyko knows a thing or two about how health and wellness affects an organization’s day-to-day operations and its bottom line. So for 2015, Darren is putting forward a New Year’s Resolution for Savanna that he hopes will continue past February when most resolutions are left to gather dust despite the good intentions of the participant. What’s motivating this? Darren has seen first hand that when health and wellness is made a priority, it’s a win-win situation for employees and the company. An employee can gain (or gain back!) the physical benefits of a fitness routine while the company sees their fiscal interest in reduced WCB claims, health, and disability costs. But “wellness” can be much more than just “physical fitness,” so Darren pitched the idea of a health and wellness committee with a mandate to positively impact employee wellness through a series of programs focused on the many dimensions of wellness. The committee would be comprised of Savanna employees from across varying business units whereby their differing perspectives and department connections could be exploited to reach all corners of the organization. What’s in it for Savanna? It has been shown that an employer offering an integrated and comprehensive health and wellness program will attract and retain employees who recognize a supportive wellness environment. When any number of wellness attributes are embraced by employees, it
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reduces the costs of disability and absenteeism, and reduces the effects of workplace stress. Obviously, staff who are physically fit also reduce and/or contain health costs. And apart from the positive physical benefits, it improves productivity and effectiveness at work typically increasing company morale. What’s in it for employees? For employees, a wellness challenge could lead to an increased awareness and knowledge of ways to improve one’s health. There is also increased protection from injury as reflexes and general motor skills are improved upon. The overall health and well-being of an employee would be positively impacted resulting in higher morale and greater job satisfaction, as mentioned. Liking one’s job, then, is linked to increased productivity and effectiveness at work; all while personal health care costs are reduced due to a shift in lifestyle routine. Again, a win-win for employee and the company. What will it look like? Darren and the H&W committee have developed a series of “challenges” designed around certain wellness dimensions (see sidebar). Savanna employees will be encouraged to participate in these challenges and “stamp their passport” when they have completed them. Participants of the challenges will be entered into regular draws for some Savanna swag. Stay tuned for more additional information communicated throughout the year with the kick-off slated for midJanuary. n
PROPOSED SCHEDULE January 2015 — Kick-off to the Wellness Challenge. January to April 2015 — Physical Wellness Challenge: to run for 12 weeks. May 2015 — Emotional Challenge: Individuals must find time (15 mins) for themselves every day. June 2015 — Environmental Challenge: Individuals need to implement environmentally healthy activities into their daily routine. July 2015 — Social Challenge: Individuals need to volunteer for a local charity. August 2015 — Intellectual Challenge: Individuals must try something new during the month. September 2015 — Workplace Challenge: Encourage employees to leave positive post it notes for co-workers. October 2015 — Financial Challenge: Employees are encouraged to cut down on their monthly costs. November 2015 — Spiritual Challenge: Daily positive thoughts delivered via Twitter and email to individuals participating. December 2015 — Social Challenge: Individuals will be required to bring a dish to an office potluck.
RIG-N-DIG • DECEMBER 2014
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CONGRATULATIONS
a n n a v a S s r 5 1 e 0 n 2 the arship win schol
l be they wil itution t s in y r da st-secon o the po f 2014. t e c n a t cep ll o rs, Sa- ac nding in the Fa l schola ners of top-leve s, deme t in t ly w a n t o h t t ig ie no to the e Award and Par r were ommunit s, lations this yea bers of their c to tionship hip s s d la r r e e e d la R n a o ongratu e , in h h y c w m S e it e s r r 4 u o m g 1 h e O t T 0 ic 2 f In rd. ra dynam vanna’s values o me ext hip Awa but also Scholars tudies with so vanna’s bility. a S g in nership s ina onstrat ondary e: Tribe (a nd Susta post-sec heir pockets ar llence, a e Blood e h c t llx f E t o n; eady we mber money in ux Natio , is alr , a me ) io to d a S a s n e e n a H p a t o v o w h d ruise . She ith Sa B is Nak atthe it w x u e M c le n r e A ; ir y e n c a t e l ib par odeo f th choo in d Tr i- R Nations thern Alberta r he Bloo lexis o , Superv to vet s degree t A ie t s g t f t o ir in n a F o a d M g h u of Nat Troy d Hea the so als by aduate Harper son of Bruise known in er love of anim ing her undergr e. ames lry (step J a a Rayne C lg n h t f ethbridg a a o le e C p of kakw tzen ity of L ontinu r com s e c r t e f a ; iv ) n r n U e a Gataric Chain); Mihs n; Mark Jan the hew gine a tio ply ject En Saskatc nces at yee, is sor, Sup on Lake Cree Na nior Pro r of Michael ical Scie e g S lo , io a emplo hool of n e n e B n g z e r t a t in u v n h t a a g S S u J B Sc a (da the ,A eon ther is bridge, minster Edwards he hopes on of L of Leth of Lloyd tor); and whose fa tudent at the S gary (s r d , . o d y n d y a lo n lo w L o e L s K r Tori erce ordina skatch o ; Tori m a ) C r S m e t uisite fo o g f n q Jessica C o a e e r n r ersity Equipm ig Ma lid pre . st-yea o R iv n , s n ir d , io f U y d t a r a lo e a e L N h b ll Co ill t t evor Cree tream w siness a le Lake er of Tr ter Bu this program s he Sadd s (daught t o f f . o d s r n t a e e a at hir a few y for Sarecogniz tion at a th Nipin S 00 each nership school in shed to ca ,0 li w u 3 b d la $ a e t f s e e o e t Part unt r th omo was larship d to pr s submitted fo the amo ach for o n e h a in c s 0 t e t n 0 r e n e h a e n T io $1,0 rds pend achievem applicat an inde cipi- The awa olarships, and academic dary level. All ted by e h a r c S lu e a h v a t e n n o nd van ere post-sec 2014 a rams w ia inhips. n criter hip prog in June s Scholars io r r t c la o t o le h a e e c s lv ic s d o ic v ju if d in c a e p y n s rty unit third-pa elected based o nt and comm oof of s e e ovide pr m r r e e v p w ie o h s t c d a e ent d e ic e m n ts acade applican cluding ccessful u s e h T ment.
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MEET RIG 656
For
the month of December, HSE would like to recognize Jeff McKinnon and his crews on Rig 656 as they near completion of the building of an electric double. Below, Jeff shares his thoughts on what it means to build a new rig as well as the challenges he has faced on past rigs. Q: How long have you worked for Savanna? How long have you been a Rig Manager? A: I have been with Savanna about nine years and four as a Rig Manager. Q: As a Rig Manager, what does the opportunity to build Rig 656 mean to you? A: It brings some new challenges to my career and it gives me the opportunity to
HELLO
our rig will be
656
provide input into some of the features of the rig. Q: Do you have any of the same crew from 638 working with you? If so, why is this important? A: I have two drillers and a motor hand from 638. This is important because I know I can trust them and they have
experience working on an electric rig. Having knowledge from working on an electric rig is good because it helps with any troubleshooting that we may have to do. They also know what I expect as a Rig Manager and how the day-today operations at the rig should be performed. Q: How do you promote safe work practices at the rig while it is in the yard? A: I believe that the same expectations that employees are held to in the field should apply to the yard as well. My crew know this and understand the importance of safe work practices. Q: Can you think of a time that you have used Savanna’s Vision and Values to make a decision at the rig? A: We generally try to use the Vision and Values in everything that we do — whether it is interacting with each other or with any contractors in the yard. It is important to make sure that we do things the right way so that everyone is all on the same page. Q: What are some of the challenges that you have faced building this rig? A: Some of the newly implemented ideas needed some tweaking. The challenge was making them work for us. Coming together with the various services and coming up with a solution was key. Q: What challenges do you see in the future? How will you tackle these? A: The first hole. This will be a great opportunity to ensure that everything works as intended to keep rotating to the right. Fortunately I have great guys in the yard to help me out with anything that comes up. Q: Do you have any other comments that you would like to add? A: I am really looking forward to getting this rig out of the yard and working, and I hope that everything runs as smoothly as it did on 638 with the crews that I had there.
Left to Right: Curtis Greeley (Driller), Roland Williams (Derrickhand), Peter Cosgrove (Leasehand), Craig Fogg (Driller), Donovan Thomason (Derrickhand), Gavin Gould (Motorhand), Jeff McKinnon (Rig Manager). WWW.SAVANNAENERGY.COM
RIG-N-DIG • DECEMBER 2014
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AUSTRALIANA
well done, jordan
H
O
n December 7, 2003, a 13-year-old Australian boy, Daniel Morcombe, was tragically abducted and murdered while he was waiting on the side of the road to catch a bus. Daniel had accepted a lift from a stranger. On Friday, October 31, 2014 when family and friends were commemorating the sad loss of Daniel, Andrew Robertson (a Savanna employee), did the right thing. Andrew’s good deed will not go un-noticed. Andrew was driving to deliver some parts to another Savanna employee when he noticed a boy in school uniform on the side of the road. He was still there when he was returning after delivering the parts. It was very hot and Andrew pulled up; spoke to the child (who we believe had missed his school bus); gave him some water; and put him in the car in the air conditioning. At the same time, Andrew was alert enough to ring the Police so that they could take charge. The Police responded immediately to his request and everything ended well. Andrew was concerned for the boy’s welfare, not only from heat, thirst, and exhaustion, but also the possibility of abduction. A lot of other drivers simply drove past the boy without stopping. Understandably, those drivers may have had concerns about “stranger danger” but Andrew’s level of concern was the right approach to take. Andrew put the boy’s welfare up front and also ensured he involved the appropriate authorities. It is currently storm season in Australia, so there is a lot of lightning activity as Matt Reeves (Field Mechanic) found out one evening.
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ere is what you may not know about Jordan Hilse, one of Savanna Australia’s HSE Advisors. Jordan is a seasoned HSEQ professional with over 12 years post university experience working in Safety, Environment, and Quality roles including field roles in mining and O&G, and corporate management roles in a number of industries. Jordan has taken postgraduate courses in Quality and Safety and is currently studying law. Jordan has also spent time living in remote Aboriginal communities including Kalkaringi and Daguragu in the remote Northern Territory. As a result, Jordan remains involved in community and indigenous engagement, cultural awareness and competency training through the KUWUL Group which specialises in the design and development of program delivery methodologies that recognise and embed Indigenous cultural practices and protocols. This involves a commitment to consultation and collaboration with First Nations/Indigenous communities, to ensure work is conducted in a manner that is culturally sensitive and appropriate. Further, the cultural knowledge acquired or collected through this process and used is acknowledged, respected and shared only with permission. Jordan assists First Nations to secure a sustainable future for their children by supporting the development of business management and entrepreneurial skills. Jordan has worked with the Mandandanji people of Roma and surrounding districts in the Surat Basin, to leverage the benefits flowing from resource development on their country towards the creation of corporations that will form a foundation of economic improvement for their people. This includes assisting key leaders in the community to develop sound business management skills, which will enable them to run successful, sustainable businesses in their communities. n WWW.SAVANNAENERGY.COM
AUSTRALIANA
graduation ceremony Congratulations to Brett Moseling (Information Technology Team Lead) for successfully completing a Certificate IV in Frontline Management, “The Challenge of Leadership.” Brett was supported by Steve Ross, Cameron Torell, and his course mentor, Claudia Correa, throughout the 26-week program.
AMERICANA
The Houston office Adopted A Family for the holidays. Pictured here are the Houston Three taking the bagged gifts to the drop off site. Kathy Bell followed up the delivery with an email to the Houston office congratulating them on everything that was collected. This was a very successful project and one that everyone is proud of. From left to right: Sarah Carter (Interfaith of the Woodlands rep); Julie Bell (Benefits Administrator), Kayla Portis (HSE Administrator); and Becca Sue (Operations Administrator).
Brian Palmer from West Virginia caught this great sunrise behind Rig 654.
colorvibe 2014 Savanna employees were showered in a kaleidoscope of colour during Toowoomba’s first ColorVibe event. The event drew more than 5000 people to the local showgrounds including Savanna Employees, April Lancaster-Smith (thumbs-up), Elise Yung (middle right), Tracey Peterson (top right), Tyler Yung (bottom right), and other friends and family. Funds raised went to Global Care who will distribute the money to drought-stricken farmers throughout Queensland, Australia.
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Carlos Raposo (Driller on 655), left, receives his five-year ring.
way to go, rig 449! We would like to take this time to congratulate the crews on 449 and their support staff on the great accomplishment of one year incident free. This is no easy task and comes from a lot of hard work and dedication from everyone. RIG-N-DIG • DECEMBER 2014
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WHAT’S HAPPENING
Tyler Radke (Relief Rig Manager on 441), left, receives his five-year ring from Ryan Dreger, Field Superintendent.
Bill Lawless (Field Superintendent), right, presents Dean Gerber, Rig Manager on 627, with his five-year ring.
Daryl Johnston, Rig Manager, receives his five-year ring from Ryan Dreger (left), Field Superintendent.
Rig 51 had some good fun recently when they urged one of their floorhands, Thomas Corkery, to try on some 52Tall coveralls while they were waiting for a Safety Stand Down conference call. His 6″5′, 395-pound frame didn’t quite fit into the standard-issue covvies.
Thanks to Nathan Greener for snapping this panoramic shot of the D&D facility in Lloydminster, currently under construction.
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This stunning sunrise was caught behind SWS Rig 117.
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WHAT’S HAPPENING The wall-sized reproduction of this drawing — currently adorning the reception area of the Savanna Drilling office in Redcliff, Alberta — will need to find a new home soon. Gene Carriere (Vice President, Operations Support) commissioned his old friend James Marshall (inset) to commemorate Savanna’s industry-leading hybrid drilling rig with a pencil drawing of one of the rig sites. Carriere arranged for Marshall to visit one of the hybrid rigs for a few hours so he could draw the scene from life instead of from a conventional photo. Once completed, copies were given out to customers while the original still hangs in Gene’s office in Redcliff. The supersized reproduction above Bobbie Elhart-Palech’s reception desk will be taken down and a new home will be chosen by Aaron Mills later in 2015.
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EMPLOYEE PROFILE
MEET GRANT SUGAMORI HSE Field Administrator based in Redcliff, AB
What brought you to D&D Oilfield Rentals and what is your role? My current title is HSE Field Administrator. I took the opportunity to work at D&D due to the HSE experience it would give me in the energy sector. How long have you been at D&D? I’ve been here for close to a year. Where have you worked previously? I was a Program Facilitator for a safety training company before joining the D&D Team. What was your very first job? My first job was working on the maintenance crew for a golf course. It was a great experience except for the day that I was attacked by a swarm of bees while trimming hedges. Trying to get away I dove into a water hazard. It turned out that the water hazard was only about nine inches deep so I ended up face planting into what was essentially a giant mud puddle. The bees kept stinging me and I ended up looking like Swamp Thing when I finally got into the pro-shop. The snack shop girls saw the whole incident and laughed at me for weeks afterwards. I don’t blame them. I’m sure it looked like a clip from a Chris Farley movie, but it wasn’t exactly a confidence booster for an awkward fourteen-year-old. The lesson: Always do a hazard assessment before starting a task! What is your favorite book? Apology, by Plato. What do you like to do when you’re not working? I’m pretty fanatical about spending time in the wilderness especially when it involves fishing. Being out west is great since it gives me an opportunity to explore the Rockies once again. I do miss the lakes in northern Ontario, but hiking and in the mountains on weekends is a nice tradeoff for canoeing in Algonquin Park. Did you encounter any culture shock moving from the big city to Redcliff? There are a few differences between a big city and small town. Shortly after starting at Savanna, I was driving down the Trans Canada with a coworker and he began to complain about all the traffic. I looked around the truck and counted five vehicles on the road. Back home I usually started my day on a 400 series highway stuck in three to five lanes of stop-and-go traffic so my definition of ‘traffic’ is a little different. Any final thoughts on your role or experiences with D&D? I find that D&D and Savanna have a great work atmosphere. I’ve worked for other large companies before and in many of those situations staff shared a feeling of disconnectedness, often stating that they felt the company treated them as a number rather than a team member. It is refreshing to be in a corporate environment that seems to have found a good balance between being big and still creating a supportive work atmosphere.
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THE ROGUE ELF ADVENT CALENDAR
THE LAST PAGE
Buddy the Elf has had enough. At first he tolerated the juvenile poses and hiding places the parents put him in because that was his job and he was loyal to Santa. But when the scenarios became too much for him, he slowly drifted to the dark side. At first, he was simply acting out through minor pranks and acts of vandalism, but as we can see below, the countdown to Christmas gets very bleak indeed. If Santa’s expression is any indication, Buddy knows he’ll be on the naughty list for a very long time.
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thank you Inn from the Cold relies on the generosity of our community to help us meet the essential needs of Calgary’s homeless families, and we want to thank you for your unwavering support.
Give. Volunteer. Engage. You can continue to help those in need by volunteering your time or donating to the shelter to brighten someone’s new year. Visit innfromthecold.org to see where we need you the most.
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