Rig-n-Dig January 2012

Rig-n-Dig January 2012

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In This Issue Interview with John Cooper D&D’s Stripping Tanks What’s Happening?

The Importance of Leadership Bruce Nash, Sales and Marketing Manager for Savanna Well Servicing Canada, discusses the importance of and being an effective leader and how you can make your team be successful.

Working for Savanna provides many opportunities to improve your professional growth—and for me this has certainly been the case. In October of 2011, I had the opportunity to attend The Global Institute for Leadership Development (GILD): A six day course comprised of presentations, class room group discussions and personal coaching focusing on leadership responsibilities, leadership skills and leadership competencies. I can’t say enough about what an incredible experience it was. It put a whole new perspective on leadership and how we interact with fellow employees, family and friends.

The attendees, including people from over 70 countries, were all there to improve their leadership skills and knowledge. The presenters were comprised of former CEO’s, Harvard Business professors, a Maestro, executive coaches and even a survivor of the Miracle in Andes plane crash, (more on him later!) and were some of the most engaging and amazing presenters I have ever seen.

On day two of the conference I had the pleasure of attending a presentation by one of the most famous business leaders today, Mr. Ken Blanchard. Mr. Blanchard is the author of One Minute Manager, which I and many fellow Savanna employees have read. This certainly was one of the biggest highlights during the week as Mr. Blanchard and Colleen Barrett of Southwest Airlines spoke about people and a culture of caring in an organization.

To cover all presenters would take more time and space than I have available for this article, so I have chosen to focus on a couple of areas. First of all, I had the chance to work with an executive

coach during the week, and to focus on specific areas of improvement based on a leadership assessment completed prior to attending GILD. From here, we came up with a process for building commitment and trust within teams. With the amount of things going on during the day, we sometimes forget the important things we need to focus on. From this I developed a list of questions to ask myself every day.

They include: 1. What am I doing to ensure I am fully engaged every day with my team?

2. What am I doing to create an environment of empowerment led by myself?

3. What am I doing to ensure I have the right attitude for my team and myself?

4. What am I doing to ensure I am creating a high performance team at Savanna?

5. Fair does not mean equal As leaders we need to constantly ensure we are not only learning but teaching and mentoring at the same time. As leaders, (and we can all be leaders regardless of our positions) by asking these questions every day, we are able to focus on helping ourselves and the people around us.

For me personally, empowerment and engagement are two of the most important aspects of leadership. I feel effective leaders need to ensure commitment by evoking trust through leading by example and adhering to Savanna’s Vision and Values. Leaders must also create an environment of empowerment to help others reach higher levels of performance.

Without our “ employees we

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would be just a company that owns equipment

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January 2012

Bruce Nash, Sales and Marketing Manager for Savanna Well Servicing Canada

800, 311 6th Avenue SW Calgary, Alberta T2P 3H2 Phone: 403 503 9990 Fax: 403 267 6749 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

Rig-n-Dig January 2012

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: Janine Tannahill 403 267 6739 jtannahill@savannaenergy.com Managing Editor: John Bayko 403 781 9999 jbayko@savannaenergy.com

In This Issue

Message from Mgt. Interview with John Cooper What’s Happening?

Weather in Alberta Savanna Advertisements D&D Profile Last Page

page 2 page 4 page 6 page 8 page 9 page 10 page 11

One of the biggest take-aways from my week at GILD was their focus on people.

People are the most important aspect of any business and are the foundation of our business. Without our employees we would be just a company that owns equipment!

In order to be a successful company we not only need people but we need people who are engaged and empowered to do their job. We need to ask ourselves and all our employees at Savanna what we can do to make our jobs easier. What do we need to provide a healthy work environment?

If we show people we care and we do our best to respond to their needs, we will all benefit from a better work environment.

One of Steve Jobs’ famous quotes was “love what you do”.

Plain and simple—love what you do!

Some of the additional highlights of the conference were Patrick Lencioni and Nando Parrado. Patrick is a best-selling author who inspires and drives teams to go beyond the expected. Patrick’s presentation was based on his book,

The Five Dysfunctions of a Team, which identifies five areas where teams can fail.

Think of it like a sport team analogy.

Most teams that struggle to win have: 1) an absence of trust; 2) a fear of conflict; 3) a lack of commitment; 4) an avoidance of accountability; and finally 5) an inattention to results. Winning teams on the other hand, are built on trust where team members are not afraid to voice their opinion, are committed to the cause, hold each other accountable and deliver results!

The final presentation was by Nando Parrado. In October 1972, Uruguayan Air Force Flight 571 carrying the Uruguayan rugby team crashed in the Andes Mountains leaving 16 people stranded for 72 days on one of the highest peaks in the Andes. Losing his mother and sister, Nando and his fellow survivors spent the next two and a half months waiting for rescue. With no rescue on the horizon, Nando and fellow survivor Roberto Canessa decided to search for a way out of the mountains. From the

Our goal as “ leaders is to create

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a clear vision

Savanna Energy Services Corp.

2012 Bringing Safety Home

glacier base of the crash they climbed for four days to the summit, only to discover the plane had been horribly off course.

With no other choice but to keep going they walked in what they presumed was the right direction. Finally on the 10th day, they came across a rancher riding his horse across a river. Nando and his fellow survivor’s story of courage and strength in extreme adversity is inspiring and humbling. Nando’s experience taught him that leadership and teamwork that occurred in extreme survival situations encouraged different types of leadership.

Great leaders emerge because of their actions and instill loyalty and dedication toward the ultimate goal.

This experience has given me tremendous insight to the responsibilities of leadership and how good, bad or otherwise affect the overall performance of an organization. Our goal as leaders is to create a clear vision, lead by example, build a high performance culture that delivers results, and to never ever forget the most important aspect of any organization: THE PEOPLE!

Check out the 2012 HSE Calendar!

To be delivered to your office or rig in the very near future.

January 2012

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Getting to Know Mr. Cooper Savanna’s Vice President of Operations and COO, John Cooper, is a man of many talents. From a mathematics degree, to working in a refinery and for a waste management transportation company, to successfully amalgamating 22 companies, Cooper has found his way to Savanna.

In August of 2011, John Cooper was hired as Savanna Energy Services Corp.’s new Vice President of Operations and COO. In his new role, Cooper’s primary responsibility is to identify opportunities and challenges for all Savanna stakeholders—customers, employees, shareholders and the community. In his own words, Cooper states his secondary role is to always improve, update or upgrade Savanna’s operations. “I’m not here necessarily to make a lot of decisions,” says Cooper, “what I’m here to do is to listen very clearly and effectively and communicate what we’re trying to do and motivate and engage teams to succeed.”

Prior to joining Savanna, Cooper was the President and CEO of Enermax, a fluid management service provider operating throughout western Canada and North Dakota. Familiar with oilfield services and the energy trucking business, Cooper decided it was time for a career change and joined the executive team at Savanna. Cooper says his main attraction to Savanna was our values. “I had heard of Savanna and I was attracted to Savanna in that it was a growing company, it has a strong market share in Canada, and a lot of opportunity for growth”. “It probably sounds a little corny, but I like to make

Your favourite holiday destination?

Mazatlan, Mexico

Toronto, Canada—born and raised

Do you have any brothers or sisters?

a younger brother

www.savannaenergy.com

sure the people and the culture I am working with share the same type of values and beliefs that I do,” and Cooper was able to find that in Savanna. “Basically, my philosophy is treat your business seriously, not yourself. Make sure you identify your opportunities and follow through, but have fun along the way.”

What was your first job?

delivering papers, and flowers and soil

Where were you born?

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John Cooper, Savanna’s Vice President and COO

January 2012

Favourite band/singer?

I like lots of music, like the Rolling Stones, Beatles, The Who, REM, jazz—I can’t do just one favourite

Cooper’s educational background is in mathematics. When asked how he ended up in oilfield services, he candidly replies, “I don’t know.” At one point, Cooper thought he might like to be a teacher or professor of mathematics, but after landing a job with Gulf Oil (“back when Frisbees were made of wood” says Cooper), he decided to stay in the energy industry. Cooper says he has been involved in energy and the energy services field for about 15 years—and not always on the corporate side.

He has also been involved with field operations and sales. “It’s never, ever dull,” comments Cooper on how he sees energy services. “Natural gas and oil prices could be up or they could be down. Our customers are solid today and then they’re bought tomorrow. Those types of things are ever changing and evolving, so you have to adapt and plan for that. That intrigues me.”

Cooper brings to Savanna a wealth of knowledge and experience in the area of amalgamations and integrations. One of Cooper’s jobs saw him responsible for the amalgamation of 22 individual companies. Cooper says the strategy behind that company was to create one large company from scratch by merging together a conglomerate of companies. Of course in that instance, you end up with a mixture of business cultures and processes. At some point, the amalgamations stop and focus is turned internally in order to create a culture and opportunities. Cooper says the best way to do this is through a

unified set of company values. He admits it can be a slow process, but the main focus through out has got to be your employees.

As Savanna continues with the amalgamation of the Canadian drilling division, Cooper says he can draw on his past experiences. “It just helps knowing that you’ve been through something like that. I guess the important lesson learnt is that the first focus is on our people and employees,” says Cooper. He is a firm believer that many amalgamations fail because not enough time is spent focusing on employees. He says everyone needs to understand what their role is in the amalgamation, what the collective goal is, how everyone will be managed and what the score card is.

For the future, Cooper sees a lot of growth opportunities for Savanna. He also believes by following the business model of creating “1 Savanna”, a lot of internal benefits will develop for employees. Also, by applying business processes from one division to another, we can all benefit by improving Savanna’s current efficiency. With Savanna sitting around the third and fourth largest well servicing and drilling company respectively within Canada, Cooper also sees room for potential growth. “I’ve noticed our folks are competitive—we want to win, we want to beat our competition,” says Cooper. And of course there is a lot of room for growth in both the US and Australia. “It’s going to be pretty exciting in the next couple of years!” concludes Cooper.

So look out number 1—Savanna is coming to get you.

Basically, my philosophy is “ treat your business seriously,

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not yourself

Are you a meat and potatoes kind of guy or do you like to be adventurous with food?

I like to be adventurous—I’ll eat anything but brussel sprouts

Do you have a phobia?

not really, but I’m not crazy about heights or bats but I’ll face them if necessary.

Winter or summer?

summer

What was the last book you read?

“Leading Change” by John P. Kotter.

How do you like to spend your non-work time?

two ways: definitely with the family (has three daughters) being with them is important to me; and I’m a bit of a fitness/athletic person, so I like to work out (Cooper was a hockey player in his younger years)

January 2012

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What’s Happening?

A Rig Christmas

The following photos were sent in by Rig 652 operating in Clearwater County in Alberta. With snow on the ground, the crew tucked in to a Christmas meal of deep fried turkey cooked on site. Rig Manager Keith Watcher’s wife made pies, stuffing, mashed potatoes and gravy, salads and all the trimmings.

Sunrise

This spectacular shot of Rig 627 at sunrise was sent in by Douglas Graham. Rig 627 was operating near Blue Ridge, Alberta, north west of Edmonton.

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Rig Goat

Here’s one for the books. A goat turned up on the site of Rig 448. Usually visited by farm dogs and the odd pig, the crew was surprised to see a goat.

Congratulations!

Congratulations to Vlad Bilkun, on of Savanna’s Engineers in Leduc, and his wife Natasha on the birth of their daughter Clara-Marina. Clara-Marina was born December 21, 2011.

Savanna, Queen of the Desert

Rig 66 is has taken on some hard yakka in the Australian desert. Located about 1300km west of Toowoomba, the rig is doing a workover on a 3600m well for Beach Energy. the photos were sent in by Don Goldade.

Rig 440 Near Vauxhall Dave McGoldrick and crew had their 2200 series rolling just north of Vauxhall, and were kind enough to pose for our cameras.

Top (L-R): Kevin Watt (Motors), DJ Korsberg (Driller), Trevor Burns (Derrick), and Rob Strange (Floorhand).

Left (L-R): Watt, Korsberg, Strange, Burns, and Rig Manager Dave McGoldrick.

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Alberta’s Unpredictable Weather As soon as the ground freezes and the temperature dives to well below 0°C, it is full steam ahead for Savanna’s Canadian divisions. The crews knuckle down and spend the colder months working as hard as they can. But this January saw unusually high temperatures and the delay of many rigs.

While most of us in Alberta were happy to get 2012 off to a warm start and have a reprieve from the seasonal cold temperatures, activities in the field were somewhat restricted due to the warmer temperatures. Just like during the annual Spring Break-up that occurs in Alberta during the change of the seasons, many rigs were shut down due to road and lease inaccessibility. Aaron Mills, Operations Manager for drilling in Canada says about ten drilling rigs were affected with work delays anywhere from one week to a month.

For many of the guys (and gals) who work on the rigs, this stoppage is nothing new; but generally once winter hits, it is full steam ahead until Spring Break-up in April (weather depending).

Mills says most people look forward to winter coming and working solidly through the season. When work stops, everyone gets a little anxious to get back out in the field. Unlike the corporate side of Savanna, if the rigs aren’t operating, then the rig guys don’t receive a pay cheque. As Kevin Lagasse, Rig Manager for Rig 435, says “I just budget my money, workout and enjoy the quiet time.”

So just how warm has it been in Alberta this January?

Environment Canada lists Calgary’s daily average temperature as -8.9°C (15.9°F) with an average minimum of -15.1°C (4.8°F), while Edmonton’s daily average temperature is -13.5°C (7.7°F) with an average minimum of -19.1°C (-2.4°F). This year, the average maximum temperature recorded in Calgary between January 01 and 14 was 6.1°C (43°F) on the plus side with some days hitting the 15°C (59°F) mark. Average maximum

Rig 652 working in approximately -30˚C weather near Sundre, Alberta

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temperatures in Edmonton were slightly cooler, but still on the plus side averaging 1.5°C (34.7°F), and these temperatures were reflected across central Alberta—definitely warmer than normal!

As explained by Brad Carlson, Canadian Marketing Manager, operating delays occur when the ground is too soft to drive on or set up operations. The ground coverage in parts of Alberta and boreal areas is muskeg, an acidic soil also commonly known as a ‘bog’ or ‘bogland’. Comprised of mainly decomposing vegetation, sphagnum moss or peat, muskeg can easily become waterlogged and soft. Carlson says the muskeg is very environmentally sensitive and it is important for it to be completely frozen solid before putting any equipment on it.

Some of the problems faced during the warmer periods are a delay in operations and keeping staff busy and available for when the weather turns cold and business returns to normal. On the positive side though, operations should be busier at the end of winter (around March), if the weather stays cold. “If it stays cold, we’ll have the work,” says Carlson. “The drilling season will be longer due to all the work being pushed along.” As many client contracts are based on operational days, if the contract is delayed, then the missed days are added on to the end of the contract.

Since hitting the -30°C (-22°F) mark during the third week of January, sales and operations have picked up once more. Carlson says many calls from clients have been made with everyone trying to play catch up, but he remains confident that the time will be made up—as long as the weather stays cold.

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Search jobs and submit your resume Online at: http://savanna.appone.com Email to: savannacareers@savannaenergy.com Savanna Energy Services Corp. is a premier contract drilling and well servicing company operating in the oil and gas sector internationally and throughout Western Canada. Our goal is to demonstrate a values-based culture through our people, innovation and technology.

The successful candidate will possess the following: • Excellent verbal and written communication skills • Strong organizational and time management skills • A friendly, outgoing personality and ability to work with individuals or groups

Savanna is currently looking for a Field Technician based out of Redcliff, Alberta.

Education and Experience: • High School Diploma or equivalent • Technical/Mechanical Diploma • Related experience in the oil & gas and/or drilling industry

The Technician will troubleshoot, maintain, and repair electronic and PLC systems and components on all equipment as well as carry out regular preventative maintenance tasks and inspections as required. The preferred individual will have a high school diploma or equivalent, technical/mechanical diploma, experience with PLC and/or instrumentation, as well as 4-8 years related experience.

Savanna offers competitive wages, a comprehensive benefits package effective on your first day of work, and an RRSP contribution program.

January 2012

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D&D’s New Stripping Tanks D&D Oilfield Rentals recently acquired new inventory: five stripping tanks. These tanks offer huge reductions in water transportation by efficiently separating drilling liquids and solids.

D&D Oilfield Rentals has recently added a new and innovative tank system to their rental inventory. Known as a stripping tank, the tank is a one lift, one load system consisting of a complete de-watering control package in a single transportable unit. It allows for high quality fluids handling and efficient solids control in all types of drilling fluids by incorporating: 1. A unique mixing system and settling tank for flocculation 2. A self-contained hydraulic lifting centrifuge stand capable of mounting up to three centrifuges, and 3. Polymer mixing tanks with a variable speed injection system for dewatering or flock water-drilling operations Now, to put all of that in layperson’s terms, the tank allows for transportation of all the necessary solids control equipment to a rig site in one single load. Once the tank is set

up, it efficiently separates all the drilling solids and sediment (all the rock chips and dirt from the well hole) from the drilling fluids used to drill the well. The tank’s unique patent allows for low gravity solids less than five microns in size (one micron equals one millionth of a metre) to sink to the bottom of the tank for easy removal of the fluid. The fluid can then be reused in the drilling process or for fracing purposes.

The benefit to using a stripping tank on site is the reduction of waste water and subsequent water transportation. By recycling the water on site, the need for constant water transportation is reduced which in turn saves time, money and road usage. Chemical costs are also lowered and the tank is very beneficial for cleaning remote sumps, contaminated sites and tailings ponds.

The tank includes many safety features such as no moving parts in the main tank.

Low profile walkways are located on the

CONTACT: Calgary, AB - 1.403.267.6737 Lloydminster, AB - 1.888.875.5171 Redcliff, AB - 1.877.548.2700 Swift Current, SK - 1.306.750.1675 Weyburn, SK - 1.306.842.0659 info@ddoil.net www.ddoil.net

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January 2012

tank and all mixing tanks and agitators are covered with grating. Polymer pumps contain no rubber seals which make them durable for KCL, PHPA and salt-based mud systems.

D&D has five stripping tanks available for rental. Depending on the popularity of the tanks, D&D may increase their current inventory. At the moment, all the tanks are located at D&D’s Redcliff location as they undergo thorough maintenance checks and re-painting; however, Greg Fehr, D&D Sales Representative, says the tanks will be placed where the demand is. Fehr also states that D&D have received positive feedback about the tanks and one has already been rented to a customer. “They will be pretty popular once word gets out,” says Fehr.

If you would like any further information on D&D’s new stripping tanks, please contact your nearest D&D location.

Savanna’s E-store Savanna’s online merchandise store, E-store, is now up and running for the folks in Canada*.

A multitude of items are available including jackets, shirts, safety gear and work boots.

Payment can be made using credit card or payroll deduct. As Office Services is no longer processing merchandise orders using the original manual form, all merchandise orders must now be processed online via the Employee Portal and E-store. Any order submitted by e-mail or fax to Office Services will not be accepted.

To access the Employee Portal, visit www.savannaenergy.com.

The link to the Employee Portal is located at the bottom right of the Home page under the heading ‘About This Website’ (you will need to scroll all the way to the bottom of the page). Once you have clicked the Employee Portal link, you will be asked to enter the username and password, which you can get from your manager. *It is hoped the online store will be available in the US in the very near future and available in Australia by the end of the year

Chinese New Year January 23 saw the ringing in of the Chinese New Year. The year 2012 marks the year of the dragon. Chinese tradition states the year of the dragon will be exciting, unpredictable and exhilarating; however, 2012 ushers in the water dragon, which is said to have a calming influence.

People born under the year of the dragon are passionate, brave and self-assured. In general, they are blessed with good fortune, are smart, enterprising and have a wicked sense of humour.

They also have a natural flair for fashion and are the people to consult if you want to catch up on the latest trends!

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See the ability Holly is a 12 year old avid kayaker.

She also happens to be a person with Down syndrome.

The Canadian Down Syndrome Society is a national non-profit organization providing information, advocacy, and education about Down syndrome. This year we are celebrating 25 years of supporting self-advocates, parents, and families through all stages of life.

Our Vision: A proud Canada, where ALL are welcome, we embrace diversity and we value everyone equally.

For more information, visit us at cdss.ca or call us toll-free at 1-800-883-5608