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PUBLICATIONS MAIL AGREEMENT NO. 40069240 September 2010 TURNAROUND CANADA’S OIL AND GAS SERVICE AND SUPPLY COMPANIES KEYS TO THE

Keys to the Turnaround

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Yes, the recession hit hard, but service and supply industry finds ways to keep on working.

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Page 1: Keys to the Turnaround

PUBLICATIONS MAIL AGREEMENT NO. 40069240

September 2010

Turnaround

Canada’s Oil and Gas serviCe and supply COmpanies

Keys to the

Page 2: Keys to the Turnaround
Page 3: Keys to the Turnaround

p r e s i d e n t & c e o Bill Whitelaw

[email protected]

p u b l i s h e r Agnes Zalewski

[email protected]

a s s o c i a t e p u b l i s h e r & e d i t o r Chaz Osburn

[email protected]

e d i t o r i a l d i r e c t o r Stephen Marsters

[email protected]

e d i t o r i a lEditorial Assistance

Janis Carlson de Boer, Marisa [email protected]

ContributorsJim Bentein, Jacqueline Louie

Contributing Photographer Aaron Parker

c r e a t i v eProduction, Prepress and Print Manager

Michael [email protected]

Publications ManagerAudrey Sprinkle

[email protected]

Publications SupervisorRianne Stewart

[email protected]

Art DirectorKen Bessie

[email protected]

Creative Services SupervisorTamara Polloway-Webb

[email protected]

Graphic DesignersJanelle Johnson

[email protected]

Aaron Parker [email protected]

Natasha [email protected]

s a l e sDirector of Sales

Rob [email protected]

SalesRob Byar, Linda Selin, Gregg Wolkowski

Ad Traffic CoordinatorElizabeth McLean

[email protected]

o f f i c e sCalgary: Edmonton: 2nd Floor, 816-55 Avenue NE 6111-91 Street NWCalgary, Alberta T2E 6Y4 Edmonton, Alberta T6E 6V6Tel: (403) 209-3500 Tel: (780) 944-9333 Fax: (403) 245-8666 Fax: (780) 944-9500Toll-free: 1-800-387-2446 Toll-free: 1-800-563-2946

Profiler is owned by JuneWarren-Nickle’s Energy Group. GST Registration Number 826256554RT. Printed in Canada by PrintWest ISSN 1912-5305 ©2010 1072124 Glacier Media Inc. All rights reserved. Publications Mail Agreement Number 40069240. Postage paid in Edmonton, Alberta, Canada. If undeliverable, return to: Circulation Department, 800 - 12 Concorde Place, Toronto ON, M3C 4J2. Made in Canada. We acknowledge the financial support of the Government of Canada through the Canada Magazine Fund towards our editorial costs.

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Profiler September 2010

9 Wilcox High velocity Applying the latest technologies to refurbish oilfield tools

10 Bakos (ndT) inspection (1989) ltd. Western Canada’s leader in non-destructive testing

12 desran Holdings Trucking company is here for the long haul

13 Calibre drilling Focus is on safety, diversification

14 infratech World class in every way

16 movac valve systems Helping you get the job done right

17 stuber’s Cat service Offering experienced operators, 24-hour service

18 profire Combustion Improving equipment efficiency and reducing customers’ costs

20 alberta Welltest incinerators Guaranteeing you superior results

22 remote Waste Your waste treatment industry leader

23 Willy d Boilers and Fabricating Fabricating and servicing boilers for the patch

24 sicotte diamond drill: drilling solutions

Rediscover performance, maximize your profit

26 lea-der Coatings Leading the way in innovation through environmentally

friendly safety products

4 Keys to the turnaround Yes, the recession hit hard, but service and supply industry

finds ways to keep on working

Page 4: Keys to the Turnaround
Page 5: Keys to the Turnaround

As western Canada’s economy crawls out of

its worst downturn since the 1980s, it won’t

be able to rely on a key economic engine of

the past — the shallow natural gas sector

and the entrepreneurial companies that

developed that gas and the drillers and other

oilfields service firms that produced it.

Not at today’s natural gas prices and not

at what most experts think prices will stay at

for many years.

“In the past, 70 per cent of the drilling in

Alberta was gas-based,” said Roger Soucy,

president of the Petroleum Services

Association of Canada (PSAC), which

represents the oilfield service industry. “This

year it will be 60 per cent oil-based and 40

per cent gas-based.”

To the casual observer, that might not

sound like a significant shift. But it means

the whole face of Alberta’s energy-driven

economy has been transformed, said Soucy,

with only larger companies able to operate in

the costly areas of shale gas development in

northern British Columbia, in the newer shale

oil plays like the Bakken in southern

Saskatchewan and in the oilsands.

“The small oil and gas producers are the

life of the smaller services companies and of

a lot of the economies of rural Alberta,” he

said. “Until that turns around [and shallow

gas development recovers], we won’t have

the superheated economy of the past.”

Yes, the recession hit hard, but service and supply industry finds ways to keep on workingBy Jim Bentein

Keys to the turnaround

That is reflected in statistics kept by the

Small Explorers and Producers Association

of Canada (SEPAC).

Three years ago SEPAC — which, as its

name suggests, represents mostly junior oil

and gas companies that average seven

employees each — had 450 members. It

now has 350.

Gary Leach, executive director of SEPAC,

said the combination of the credit crisis

and its impact on the ability of junior,

riskier companies to access capital, the

collapse of oil and gas prices in 2008–09,

and the continued low level of gas prices

(oil prices have since recovered and have

remained at above $70 a barrel this year)

devastated the sector.

In addition, the Alberta government’s

move to raise royalties just before the

recession (it has since lowered them and

provided incentives to the industry) brought

the sector to its knees.

Finally, the federal government’s decision

to end tax breaks for income trusts removed

an outlet for juniors, which had developed a

“symbiotic relationship” with trusts, with

junior start-ups building their reserves and

selling out to trusts.

Although the economic viability of shallow

gas development will continue to be an issue

for juniors, Leach said they will still have a

role in the energy industry.

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Page 6: Keys to the Turnaround

Expanding a dEfinition“The definition of what is a junior has to

expand,” he said. “There’s a slice of the

junior sector that is still viable. Low gas

prices have accelerated a shift of the sector

to other opportunities, such as shale gas,

legacy oilfields and the oilsands.”

Since it is costlier to operate in those

areas, he said companies will have to get

bigger so they can gain access to enough

capital.

“We represent Canada’s oil and gas

entrepreneurs,” he said. “We feel we

represent the most exciting sector of the

industry and what makes Canada’s oil and

gas sector unique.”

As an illustration of how important the

sector is, he said about 40 per cent of the

publicly listed oil and gas companies in the

world are listed on the Toronto Stock

Exchange or the TSX Venture Exchange.

Some SEPAC members, such as

Connacher Oil and Gas, are involved in in

situ development in the oilsands.

Connacher will produce 17,000 barrels per

day from its steam assisted gravity

drainage (SAGD) projects in the Fort

McMurray area by later this year and has

more ambitious plans.

Leach said better financed juniors like

Connacher have proven they can develop

SAGD projects in phases, which potentially

opens up the high-cost oilsands to other

juniors.

Leach also said SEPAC members are

anything but “ma-and-pa” operators, pointing

to Crescent Point Energy as an example of a

larger producer. Crescent Point is a big

player in the Bakken and Lower Shaunavon

resource plays in Saskatchewan, as are

other members.

Leach said that despite the difficulties in

the shallow gas sector, there are still juniors

that can remain profitable operating in the

sector by maintaining a low cost base.

The collapse in gas prices — they hovered

near the $3 per thousand cubic feet level for

much of the last year — also walloped the

oilfield service sector.

Canada’s 44 largest service and supply

companies reported combined revenues of

$4.89 billion for the first three months of the

year, down from $4.91 billion in 2009 and

$5.66 billion recorded in 2008, before the

Great Recession struck.

In 2009, as the impact of the recession

hit, revenues declined about 25 per cent for

the sector, forcing a round of staff layoffs

and cost cutting. Only three companies,

Calfrac Well Services, Xtreme Coil Drilling

and Precision Drilling, reported higher

revenues in 2009 than in 2008.

PSAC’s Soucy said the Western Canadian

Sedimentary Basin remains largely gas

development–driven, and with natural gas

prices expected to stay below $5 per

thousand cubic feet for a long period, activity

may never return to pre-recession levels.

“We’ve got a service industry here that…

still has the equipment capacities and desires

for a marketplace that’s in the 25,000 to

30,000 well count range, and we’re not going

to see that anytime soon,” he said.

PSAC recently raised its forecast for

drilling activity for 2010 to 11,250 wells it

says will be punched this year, up from just

8,350 in 2009. It believes much of that oil

drilling will drive activity, predicting oil prices

will average US$82 per barrel (West Texas

Intermediate) this year, with natural gas

averaging $4.25 per thousand cubic feet.

Big dropThe oilfield service sector had about 70,000

employees in 2007, when almost 24,000

wells were drilled in western Canada. It’s

now down to an estimated 56,000.

“There are 800 drilling rigs in Canada and

200 to 300 are idle [because they’re

designed to drill for shallow gas] and they

may stay idle,” Soucy said.

Mike Mazar, a Calgary-based oilfield

service sector analyst for BMO Capital

“in thE past, 70 pEr cEnt of thE drilling

in alBErta was gas-BasEd. this yEar it

will BE 60 pEr cEnt oil-BasEd and 40 pEr

cEnt gas-BasEd.”

— roger soucy, President, Petroleum services association of Canada

6 prOFiler

Page 7: Keys to the Turnaround

Markets, said it’s an error for analysts,

economists and the news media to focus on

outdated statistics, such as well counts to

gauge the health of the Canadian energy

industry.

“We may see half as many wells drilled this

year as in 2008, but the mistake is to use the

same statistics as in the past [to measure

the health of the industry],” he said.

“We may be drilling half as many wells, but

those wells take 40 per cent longer to drill

[because of the shift to multi-stage fractur-

ing and horizontal drilling], so we may only be

down 20 per cent [in total activity].”

The measure of total wells drilled is

outmoded because of the shift to unconven-

tional oil and gas, which require different

equipment and skill sets than the conven-

tional oil and gas industry, he said.

BMO isn’t as bullish as PSAC in its

forecast for 2010, expecting 10,500 wells to

be drilled in western Canada.

But he’s said he’s anything but a “bear”

about the Canadian energy industry, saying

it’s just shifting away from the days when

shallow gas and conventional oil develop-

ment were the main drivers.

“The companies that are involved in

directional drilling and operate high-spec,

high-horsepower rigs are all very busy, as

are the companies involved in the

oilsands.”

Another analyst who covers the sector,

Andrew Bradford of Raymond James Equity

Research Canada, said it’s not likely service

sector firms that remained reliant on the

shallow gas sector will be able to shift

anytime soon to unconventional plays.

“The barriers to entry are significant,” he

said. “To get started in the sub-sector you

need to invest at least $50 million.”

Even if the shallow gas area does recover

— Mazar forecasts low gas prices for many

years, rendering the sector uncompetitive — he

said it will be difficult to attract workers to it.

“Many of those guys are very versatile,” he

said. “They can find jobs in construction in

Calgary or in the oilsands, rather than working

on a drilling rig [when it is] minus 40.”

A recent report by the Petroleum Human

Resources Council of Canada (PHRCC)

warned that the Canadian oil and gas

industry will face severe labour shortages by

the latter part of this decade, as the

oilsands expands and older workers retire.

PHRCC concluded that more than 100,000

additional workers could be needed in the

next decade.

But first the industry will have to recover

from a rough 2008–09 and the decline of the

traditionally important shallow gas sector.

Larger drilling firms saw the writing on the

wall early and have already abandoned the area.

Joe Bruce, president and chief executive

officer of Calgary-based Nabors Canada, said

the company is shifting its emphasis to the

oilsands and shale oil and gas areas.

He said the firm is ramping up develop-

ment of its “Fit-For-Purpose” rigs, designed

to drill horizontal wells for SAGD and at other

in situ projects in the oilsands.

“We have two of the rigs now, and in the

next couple of years we’ll have two or three

more,” he said. “We’re quoting on a few

more projects now.”

rig shiftThe rigs, which cost $20 million each, can

be shifted to equally hot shale gas and

shale oil plays in western Canada. Nabors,

which has 85 rigs in Canada, believes the

future of the industry is unconventional oil

and gas, said Bruce.

Although the shallow gas sector will

remain depressed, he is optimistic about

prospects for the oilfield service sector.

“We’re seeing a fairly significant increase

in our business prospects,” he said.

Precision, which has 200 contract drilling

rigs in Canada, sees a strong future in

drilling in situ wells in the oilsands,

according to president and chief executive

officer Kevin Neveu.

“It’s a good business for us,” he said. “It’s

a consistent, repeatable business and isn’t

as seasonal as other sectors [because

drilling can take place most of the year].”

During the winter drilling season 20 out of

120 Precision rigs that were working were

active in the heavy oil and in situ bitumen

areas of Alberta and Saskatchewan.

Meanwhile, 30 older rigs suited for shallow

gas drilling sat idle and it’s anticipated they

will remain so.

But because drillers use “factory-style

rigs” that can drill dozens of horizontal wells

a year at one site, Neveu said even a

dramatic ramp-up in in situ activity is unlikely

to add significantly to overall rig counts.

Bob Dunbar, a former senior regulator with

the Energy Resources Conservation Board

who runs a consulting practice (Strategy

West) that specializes in the oilsands, said

the sector, which saw projects worth about

$200 billion shelved or cancelled after the

recession hit, has bounced back stronger

than he would have anticipated.

“If you look at all of the proposed projects,

mining and SAGD projects included, we would

get up to seven million barrels of bitumen

production a day [by 2020], from about two

million barrels a day [once existing projects,

such as Imperial Oil’s Kearl project and others

are completed],” he said. “That’s four million

barrels more than forecast by CAPP [the

Canadian Association of Petroleum Producers].”

In early June CAPP said overall crude oil

production could rise to 4.34 million barrels

per day by 2025, with oilsands production

rising from about 1.6 million barrels per day

now to 3.5 million barrels daily.

Dunbar doubts all the proposed projects will

be developed but said significant expansion

will occur, likely more in line with CAPP’s view.

He said of the major roadblocks in the way

of all the projects going ahead will be finding

enough skilled labour — a fear that arose

with a vengeance a few years ago as project

after project was announced.

RESPONSE FACTORSome things that Canada’s service and supply industry did to weather the recession:• Shifted away from drilling gas wells to oil wells• Found work in oilsands• Found work outside traditional geographic markets• Employed new technologies

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Page 8: Keys to the Turnaround

MorE joBs coMingThe oilsands sector now employs 12,000

full-time people operating plants (not

counting the several thousands workers that

can be employed at any one time construct-

ing the plants or in the service sector) and

the PHRCC forecasts that that will

rise to 24,000 by 2020, with

thousands of spinoff jobs

related to that expansion.

The oilsands isn’t the

only growth area.

While shallow

gas production

wanes, shale

and tight gas

plays and shale oil

plays are also moving

ahead. And the companies that

specialize in fracturing and coiled

tubing services, the keys to developing

those plays, aren’t able to keep up with

the growth.

Doug Ramsey, president and chief executive

officer of Calgary-based Calfrac Well Services,

which specializes in the area, worries about

finding enough skilled workers to operate his

company’s sophisticated equipment.

“We have 2,273 people working for us

now,” said Ramsay, an oilpatch veteran of

35 years who launched Calfrac 11 years

ago. “It costs us $10,000 a year to train a

new guy. In a good year they can make

$100,000 to $150,000, but not everyone

wants to work in [northern Alberta or British

Columbia] for 15 days, with six days off. We

get a lot of competition [for workers] from

the oilsands.”

For Ramsay, who has built the company

from annual revenue of $4 million to a

projected $900 million this year, it’s a cruel

irony when he sees doom-and-gloom economic

forecasters predicting a return to a recession

while his company is having difficulty finding

enough personnel and equipment.

In June, Calfrac announced a $60-million

increase to its 2010 capital program for a

revised total of $176 million.

Calfrac, which has contracts in Canadian

tight gas plays such as the Montney and

Horn River, as well as in the Marcellus play in

the United States, is also increasingly active

in unconventional oil plays in Canada, such

as the Cardium, Lower Shaunavon and

Bakken. In addition, it is active in Russia,

Mexico and Argentina.

It’s not alone. Other companies involved in

pressure pumping, directional drilling and

drilling contractors with deep-rig capacity are

also reporting increased activity, following

difficult times for the entire service sector in

2008–09. Calfrac competitors such as

Calgary-based Trican Well Service and

Canyon Services Group are also having

problems finding enough skilled

workers to keep up with a growing

workload.

Despite that growing optimism

returning to the energy

sector and to the Alberta

and western Canadian

economy (it represents

about half of Alberta’s

economic activity), one of

Alberta’s better known

economists warned that there are still

some storm clouds on the horizon.

Todd Hirsch, chief economist with ATB

Financial, said there is still a possibility the U.S.

economy will experience a double-dip recession

sometime later this year or next year.

“I’d put it at a 25 per cent chance now,”

he said. “Six months ago I would have put it

at 10 per cent.”

But even if there is no return to recession-

ary conditions, Hirsch sees moderate growth

persisting in the United States for two to

three years because most Americans carry

debt levels that won’t allow them to return to

their past spending patterns. Since about 70

per cent of the U.S. economy is reliant on

consumer spending, the likelihood is that

growth will remain tepid. The housing

market, a key source of fuel for consumer

expenditures in the past, likely won’t return

to health for many years, he said.

This means there won’t be a return to

boom times anytime soon for Alberta,

Saskatchewan and other provinces reliant on

a healthy oil and gas market.

“But if the U.S. doesn’t go into a new,

severe recession, oil prices should be able

to stay above $70 a barrel, which is

important for our economy,” he said. “Right

now it’s looking good.”

Hirsch shares the view that natural gas

prices will remain low, which will limit the

economic rebound in the energy business.

The recent recession was a painful one

for Alberta, with the economy contracting

in the first quarter of 2009 by 5.1 per

cent. Oil prices virtually collapsed, dipping

to the low $30s.

Saskatchewan’s economy contracted by

6.3 per cent during that period. That

province’s economy is about one-fourth the

size of Alberta’s.

Hirsch, who remembers the days of the

National Energy Program in the early 1980s,

when the Alberta economy collapsed (he was

in university when it happened), said last

year’s contraction wasn’t as serious as that

unhappy period.

“The recession of 1981 was much worse

[with the economy dipping by double digits]

because unemployment was at 12.8 per

cent and interest rates were very high [also

in the double digits]. Last year the unemploy-

ment rate was at about 7.5 per cent and

interest rates were very low.”

The economic decline Alberta experienced

last year illustrated that, despite all of the

attempts at diversification, “it remains a

boom-bust economy.”

This year, ATB predicts the Alberta

economy will grow about 2.5 to 3 per cent,

which he called “respectable.”

The good news is that, despite last year’s

economic freefall, Alberta remains “the best

place to be in North America,” said Hirsch.

That’s because the Alberta government

has no debt and its resource-driven

piggybank, the Heritage Savings Trust Fund,

has $14.4 billion in it. Over the 32-year

history of the fund, it has generated $32

billion in investment income.

“I think this is the No. 1 reason Alberta

will weather anything that comes its way,” he

said. “Even if the government had to run two

to four years of deficits, it could do it without

raising taxes.”

Alberta remains the only province in

Canada without a sales tax and the only

government in North America with an overall

surplus.

He’s also optimistic about Alberta’s

economy because of its “entrepreneurial

spirit,” he said.

Said Hirsch: “There’s a mystique about

Alberta that it’s a land of opportunity and, in

many ways, that has become a self-fulfilling

prophecy.”

8 prOFiler

Page 9: Keys to the Turnaround

Specifically, the TAFA System JP 8000,

only the second such unit installed in

Canada, provides several quality account-

ability features. For each item or lot

handled, it can generate a customer-

specific quality-control record specifying

what type of coating was used and also

provides a real-time illustration of the

parameter settings while the coatings were

applied. This is important for engineering

follow-up as well as instilling confidence

with anyone still skeptical about the

products they are receiving as well as the

thermal spray process in general. Never

before has there been a system that can

offer such quality and accountability.

“Thermal spraying does work if done

properly,” Orich insists, adding that using

correct procedures and high-quality coating

products, while paying proper attention to

finishing, can yield up to a fivefold exten-

sion of product life. “It has to look like and

function like a brand new tool or better

when it leaves here,” he stresses.

“We would rather build our reputation and

business on providing customers with

something that will last than produce repeat

business by having a piece we worked on

break down and then be brought back to our

shop for another repair.”

CoMPany naMe: Wilcox High Velocity Ltd.

oWners: Chris Everard and Lynn Orich

year InCePted: 2006

BusIness CateGory: Protective coatings

address: 16715 114 Avenue Edmonton, AB

Phone: (780) 483-8861

WeBsIte: www.wilcoxhighvelocity.com

FAST FA

CTS

In serving the oil, gas and other industries,

Edmonton-based Wilcox High Velocity Ltd. is

bringing thermal spray systems to new levels

in Canada.

Helping make that happen is the company’s

newly acquired TAFA System JP 8000, which

delivers product-control and advanced coat-

ings technologies — such as tungsten-carbide

coatings — along with up-to-date data-

acquisition systems. It leaves clients convinced

that thermal spraying is the way to go when

refurbishing drilling and other components.

The advanced tungsten-carbide and other

coating options complement additional

Wilcox High Velocity specialized ser-

vices — notably precision milling, machining,

fusing and grinding (using some of the

largest grinders available in Edmonton).

Owner/operator Chris Everard says Wilcox

High Velocity stands ready to repair “just

about anything that wears out.” That could

entail triplex pumps, plunger parts, blowout

preventer components, turbines and

compressors, to name just a few. Wilcox

High Velocity also will fashion entirely new

equipment to meet customers’ specs.

While highly focused on oil and

gas — including overhauling equipment for

use in harsh conditions, such as H2S

environments — Everard notes that Wilcox

High Velocity also supports other areas,

including refining and upgrading, pipe-

lines, pulp and paper, and even

agriculture.

Formed four years ago by an ownership

team that also includes Lynn Orich, Wilcox

High Velocity has outgrown its original

3,000-square-foot shop. In February, it

moved to spacious 15,000-square-foot

quarters on 114 Avenue in Edmonton. From

there, the company serves Alberta, British

Columbia and Saskatchewan, as it continues

to build its clientele, which includes the

Canadian operations of major multinational

oil-service corporations.

With a combined 60-plus years thermal-

spraying and grinding experience, the

ownership team is supported by a 17-member

staff who also have extensive know-how in

these areas. In fact, in some ways the recent

oilpatch downturn actually proved beneficial.

As other operations trimmed staff, Orich and

Everard drew upon their industry connections

and insight to recruit experienced workers.

“Our people are our technology — they’re

making the difference,” says Orich, who

emphasizes that at least three sets of eyes

inspect all products leaving the shop. With

that kind of vigilance over a four-year period,

2,500 Wilcox High Velocity deliveries

generated just seven non-conformance

reports and no failed-product reports.

Wilcox High Velocity’s dedicated and

competent staff, and state-of-the-art

equipment produce turnarounds typically in

the order of three to seven days or less.

People are important, but nuts and bolts,

and bits and bytes technologies also count.

Wilcox high VelocityApplying the latest technologies to refurbish oilfield tools

prOFiler 9

Page 10: Keys to the Turnaround

“We are protecting the environment,”

Shain says. “Anything used for storage or

transportation — such as oil and gas

pipelines, virtually anything that is welded

together or subjected to the elements that

can pose a hazard to health or environ-

ment — we inspect. For example, we come in

at the construction phase of a gas plant to

make sure everything that gets put into place

is safe. We come in during operation to make

sure things continue to be safe, and we come

in at the end when they take it out of service,

to make sure things don’t cause problems in

the future.”

Shain began working in the industry in

1991 at the age of 18, “which is as early as

you can get into this business,” he says. By

age 25, Shain ranked in the top four per cent

of qualified workers across Canada in the

non-destructive examination industry.

safety and quality are top priorities at

Bakos (NDT) Inspection (1989) Ltd.,

which provides non-destructive testing

services in western Canada. Based in

Whitecourt, Alberta, Bakos NDT does new

construction and integrity inspections for all

types of industries, ranging from the oilfield,

to pulp mills, power plants and other

industrial operators.

Bakos NDT was established in 1982 by

Frank Bakos, who grew the company over the

years before handing over the reins to his

nephew, Brian Bakos, who became a partner

in 1989 and took over the company’s

operations in 1993. Frank’s son, Shain,

became a shareholder in 2004. In 2008,

Shain bought out his partners in order to

follow his visions of the future.

The quality of the people are what set

Bakos NDT apart, says Shain Bakos,

company president, who is proud of the

name that Bakos NDT has built for itself over

the years. Bakos NDT is unique among its

peers in that it has always been family-

owned and operated. Bakos NDT continually

refines itself and explores new technologies

in order to improve the service it provides to

customers. Bakos NDT’s 30 employees work

primarily in Alberta and British Columbia but

have recently began exploring the inter-

national marketplace, doing everything from

major oilfield construction projects to

electrical generating power plant turbines, jet

turbine-powered natural gas pumps, and the

pulp and paper industry. The services

provided include radiography testing,

magnetic particle testing, ultrasonic testing,

liquid dye penetrant testing, hardness

testing, corrosion surveys and life

assessment.

Bakos (ndt) Inspection (1989) Ltd.Western Canada’s leader in non-destructive testing

Shain Bakos, Bakos NDT’s president

10 prOFiler

Page 11: Keys to the Turnaround

“It gives Bakos NDT a unique experience in

the industry, compared to other companies,”

Shain says. “As an owner, I have experience

with all aspects within the industry, what jobs

to go after and how to serve the customer

best. If the top guy knows what he is talking

about under every situation, then the

customer will be confident that they are being

properly serviced.”

Although Shain doesn’t work in the field

anymore, he continues to add to his skill set,

and acts as a mentor to his workers. “I go

and check things out and bring my knowledge

back to them,” he says. “I share with them,

so they can be a lot more successful.

Customer confidence is a huge thing to me.”

These are just a few of the reasons that

Bakos NDT continues to thrive. “We’ve been

riding out the storm quite successfully,”

Shain says. “More tenders for large projects

are crossing my desk than I’ve ever seen

before. What we are watching for is that all

these large tenders actually turn into real

work. It’s difficult — only time will tell

whether the recovery is real.”

For Bakos NDT, “2009 was a rebuilding

year. Everything was looking pretty rough.

You’ve got to take that negative, turn it

around and say, ‘What will make our

company more attractive for the work that is

continuing?’” For Bakos NDT, the answer was

to increase the quality of its people,

procedures and equipment. “That way, when

you go and sell yourself, you have a better

product to give than the person that didn’t,”

Bakos says. “I’m not building the company

for pure profit, I’m building it for longevity.”

To this end, Bakos NDT is offering several

new services, including remote visual

inspections, ground penetrating radar, and

API inspections for vessels, tanks and piping.

The company has also been working to forge

agreements and associations with other

non-destructive testing firms, in order to

offer a broader service offering and compete

on a larger scale. “It’s making really good

contacts, seeing where we can come

together and letting us compete with some of

the union outfits.”

In the past year, Bakos has made changes

to the company’s administration structure

and has been going after more jobs,

including international contracts — a move

that is promising to take Bakos NDT to an

entirely new level. “At Bakos, we are striving

to compete in the international market, and

so far have had a good response from it.”

And for the industry as a whole, Bakos

sees things levelling out. “People are

starting to go back to work. The future is

bright if we can all hold on.”

CoMPany naMe: Bakos (NDT) Inspection (1989) Ltd.

PresIdent: Shain Bakos

Founder: Frank Bakos

year InCePted: 1982

nuMBer oF eMPLoyees: 30

BusIness CateGory: Service industry, industrial inspections

address: 3510 43 Avenue, Whitecourt, AB

Phone: Toll-free 1 (888) 763-5575

WeBsIte: www.bakosndt.com

FAST FA

CTS

prOFiler 11

Page 12: Keys to the Turnaround

Owned by husband and wife David and Faye

Desranleau, who founded the business in

1978, Desran Holdings provides services to

assist companies that are maintaining gas

and oil wells and doing workovers and

completions. Desran Holdings provides

dependable, quality service

and over the years has

acquired the

equipment it

needs to

assist

companies doing exploration in the

Athabasca area. It works primarily in

a 160-kilometre radius of Perryvale,

which is located just south of

Athabasca.

“We are very hands-on,” says Faye

Desranleau, the company’s secretary-

treasurer. “My husband works with the

employees — we have up to 12 employees

at our busiest time of year. Because we are

a mom-and-pop company, and with the

small turnover of employees that we’ve had,

we’ve been able to give really good service.

That’s what has kept us going and growing

over the years.”

In addition to trucking,

Desran Holdings

supplies potas-

sium chloride

and inhibitor.

Both of

these

chemicals

are not

readily

available

in the

area,

unless they

are ordered

and shipped

in. Desran

Holdings saw a

need and

stepped in to fill it.

“We always keep

these on hand — that

makes their life a little

easier,” Desranleau says.

Desran Holdings also supplies

heated water to oilfield companies. “The hot

water makes everything a whole lot easier in

the winter when we are working with the

service companies. Rather than trying to

work with ice-cold water at 40 below, they’ve

got hot water, which warms up their

equipment.”

Desran Holdings is here for the long haul.

Since the start of the recession the company

desran holdingsTrucking company is here for the long haulDesran Holdings is an Alberta-based trucking company that hauls produced water and oil for the oil and gas industry.

has seen a slowdown, especially since much

of its work involves gas exploration and

production. However, the North Athabasca

area has seen a flurry of oil exploration

activity at the same time, which has helped

balance things.

“We haven’t had as good a year as before,

but we’ve done perfectly well,” Desranleau says.

Looking forward, she expects that oil

and gas companies will be working in the

Athabasca area for years to come. With the

development of new drilling and comple-

tions techniques, “areas passed over 20

years ago are suddenly becoming very

interesting to exploration companies. I

think there is always going to be a lot of oil

work, and natural gas is always going to

be needed.

“We grew with the development in our

area. It’s been good for us, and I think we’ve

been good for them.”

CoMPany naMe: Desran Holdings

PresIdent/Founder: David and Faye Desranleau

year InCePted: 1978

nuMBer oF eMPLoyees: 8–12 depending on season

BusIness CateGory: Trucking

address: Box 102, Perryvale, AB

Phone: (780) 698-2137

eMaIL: [email protected]

FAST FACTS

12 prOFiler

Page 13: Keys to the Turnaround

Calibre Drilling is dedicated to providing time-efficient, cost-effective drilling services for its customers and helping oil and gas companies reduce costs substantially. All rigs are truck-mounted and the support equip-ment is on trailers to reduce moving costs between locations.

The Spruce Grove–based company has been doing pre-sets and drilling wells for more than a decade, and has established an excellent reputation for service. “The key to our success has been in diversification, and this has also helped us to retain conscientious and safety-minded employees,” says Calibre Drilling owner/president Randy Riedlinger, who runs the business together with partner and operations manager Clay Cunningham.

Calibre Drilling is a privately owned firm that has grown from one drilling rig doing oilfield water well rentals, to three rigs with full support equipment for pre-sets, coring and deepwater wells for steam assisted

gravity drainage projects. Calibre has worked across Alberta, into northern British Columbia, and as far north as Yellowknife. In addition to oilfield work, the company provides drilling services for commercial and industrial projects, and water wells for acreage owners and farm use.

Calibre Drilling prides itself on having jumped on the “safety train” early on, first by attaining its Certificate of Recognition — a certification the company has held for more than six years — and then by subscribing to a safety program used by most large oil firms as a screening tool for prospective contrac-tors. Calibre Drilling became involved in this program because it wanted to promote a “Safety First” attitude. By showing its commitment to safety, the company wants to raise awareness among all employees of the value of working safely.

Calibre Drilling’s dedication to safety is also related to maintaining its equipment in

good repair, which is a top priority. Since the company devotes a significant portion of its budget to equipment maintenance, the possibility of something malfunctioning and causing an accident is low to none. Its maintenance program also ensures maximum efficiency in the field. Providing training for workers to ensure they know how to operate the equipment properly is also key — once again reducing the risk of accidents.

The future is hopeful for the Spruce Grove–based company, which is starting to see signs of economic recovery. “The work is becoming more steady,” says Riedlinger, who expects that business will start to pick up in the coming year.

Looking forward, Calibre Drilling sees the Canadian North opening up with drilling opportunities. At the same time, the company hopes to build strong business ties and relationships with aboriginal communities in the North.

Calibre drillingFocus is on safety, diversification

CoMPany naMe: Calibre Drilling

toP eXeCutIVes: Randy Riedlinger, president; and Clay Cunningham, operations manager

year InCePted: 1999

nuMBer oF eMPLoyees: Seasonal fluctuations between 10 and 35 employees

BusIness CateGorIes: Drilling/pre-sets/coring/water wells

address: Box 4083, 431 South Avenue, Spruce Grove, AB

Phone: (780) 960-2992

WeBsIte: www.calibredrilling.com

eMaIL: [email protected], [email protected]

FAST FACTS

Clay Cunningham, Calibre Drilling’s operations manager

prOFiler 13prOFiler 13

Page 14: Keys to the Turnaround

IC_NickelsAd_103533_072910_FullPage.indd 1 29/07/10 1:57 PM

IC_NickelsAd_103533_072910_FullPage.indd 1 29/07/10 1:57 PM

Infratech, a customer-focused Whitecourt,

Alberta, company founded in 1987, provides

world-class combustion process and

incineration-related products and specialized

technical services to a global client base.

Infratech manufactures its products to

exacting specifications, creating application-

specific incinerator designs and cost-

efficient, environmentally sensitive combus-

tion solutions for solid, liquid and gas waste

applications. The company provides a variety

of incinerator configurations, plus state-of-

the-art infrared imaging and thermographic

consulting services, including industry-

leading infrared gas leak detection services.

Infratech is an ISO 9001:2008-Certified

company which provides products and services

for customers across Canada and worldwide,

with orders going to Russia, Japan, Kazakhstan,

the Middle East, Africa, Mexico, Venezuela, the

Caribbean and the United States.

For the Canadian oil and gas industry,

Infratech’s Whitecourt base is a central

location to serve customers effectively.

“Within a 4.5-hour radius of Whitecourt, we

can be in places like Cold Lake, Fort

McMurray, Fort St. John, Calgary and

everywhere in between,” explains Infratech

vice-president Dan Guenette.

INCINERATION EqUIPMENT AND DESIGN

Whether for a gas waste stream in Alberta,

camp waste on a drilling platform in Russia or

pathological waste in Mexico, all Infratech

incinerators are designed to the client’s

specific application, minimizing auxiliary

fuel-use requirements, reducing emissions and

optimizing the combustion process. “We don’t

provide a generic solution, and therefore our

equipment is more efficient,” Guenette says.

All of Infratech’s incinerators are manufac-

tured to meet the most stringent codes and

specifications, using leading-edge and

best-available technologies. The standard

incinerator package includes nano-

programmable logic controller technology,

allowing for fully automated operation. The

control philosophy can be tailored to suit the

required process and always includes all

required safety systems and devices.

FUGITIVE EMISSION MANAGEMENT SERVICES

Infratech provides full turn-key fugitive emission

management services for its clients, with

documentation that meets or exceeds legislative

requirements in both Alberta and British

Columbia, and fully prepares the client for any

regulatory audit that might occur. “We are the

leaders in fugitive emission management

services in western Canada,” Guenette says.

The leading-edge GasFindIR camera that

Infratech uses is an infrared imaging camera

that acts as a portable inspection system to

detect gas leaks quickly and easily.

Infratech’s certified technicians can scan

large areas of equipment throughout a facility,

and identify gas leaks with pinpoint accuracy.

The portable Hi Flow Sampler allows

Infratech’s technicians to accurately measure

gas-leak rates. With gas leak quantification, a

complete, economical analysis will determine

the payback period of each leak, and assist in

planning maintenance and repairs.

INFRARED INSPECTION SERVICES

Infratech has been providing specialized

infrared inspection services to industry in

Canada since 1987. It was the company’s

main focus when it was founded and

something they still take a lot of pride in

doing well. They specialize in electrical, heat

loss/refractory condition, and refinery and

gas plant production furnace tube coil

inspections. The production furnace tube coil

inspection application is the most demand-

ing and challenging for the equipment and

the technician, as the technician scans and

reports tube surface temperatures of the

tube coil while the furnace is operating under

normal loads. No shutdown is required for

this inspection. “It provides the client with

essential predictive maintenance information

as to how the furnace is actually operating,

and what upcoming maintenance or

operational changes may be required to keep

the furnace running in its optimal range. Over

the years, we’ve perfected this service and

are considered the leaders in Canada,

completing services at gas plants and

refineries across Canada.

OTHER SERVICES

Infratech also provides contact operators to

the industry, with a focus on high-quality

individuals with an emphasis on ongoing

industry training. In addition, they have

in-house engineering and drafting to

supplement their designs and fabrication, and

therefore also provide drafting and design

services to clients in the Whitecourt area.

A RELENTLESS FOCUS ON qUALITY

“We’ve got what we would consider to be

absolutely top-notch staff,” Guenette says, as

he describes the company’s approximately 40

workers. “They take ownership in what they

do, and care about the client and about the

outcome of the service or product.

“The other thing is the direction the

company has always taken — having the

best-quality product or service in the industry.

We are not really interested in being second-

best at anything. We put a lot of extra effort

into making sure we can provide the client

with the best service, the best results and the

best product at the end of the day, period.”

These are just a few of the reasons that

Infratech has been growing through the

recession, posting a 15 per cent growth rate

last year and another 15 per cent growth to date

this year. “We’ve been able to do that because

of our focus on the client,” Guenette says.

For service companies, Guenette thinks

the keys to weathering the economic storm

include a strong balance sheet, looking after

clients and keeping the clients you have.

“We think the recovery is just now beginning,

and things are looking great.”

InfratechWorld class in every way

CoMPany naMe: Infratech

PresIdent/Founder: Don Guenette, president; Dan Guenette, vice-president

year InCePted: 1987

nuMBer oF eMPLoyees: 40

BusIness CateGorIes: Equipment design and fabrication, infrared inspections, fugitive emission management, fired equipment service, contract operators incineration

address: 3415 35 Avenue, PO Box 2099, Whitecourt, AB

Phone: (888) 377-5432 (toll-free); (780) 778-4226

WeBsIte: www.infratech.cc

Fast Fa

Cts

14 prOFiler

Page 15: Keys to the Turnaround

IC_NickelsAd_103533_072910_FullPage.indd 1 29/07/10 1:57 PM

Page 16: Keys to the Turnaround

stuber’s Cat serviceOffering experienced operators, 24-hour service

CoMPany naMe: Movac Valve Systems

PresIdent: Paul Robb

BusIness CateGory: Valves — Actuators

address: 5638 88 Street, Edmonton, AB

Phone: (780) 468-6077 (866) 468-6077 (toll-free)

eMaIL: [email protected]

FAST FACTS

Movac Valve Systems is an Edmonton-based

automation and actuation company that

specializes in valve actuation, emergency

shutdown systems, gear ops, chain ops,

spring return handles, valve repair, replace-

ment and servicing.

In business for more than 30 years,

Movac serves a wide range of industries,

from oilfield services, to pulp and paper, to

water treatment. “Just about everything to

do with automation and actuation, we fit

together to accommodate what customers

need,” says Movac Valve Systems manager

Paul Robb.

Movac Valve Systems serves customers

across western Canada and the United

States, as well as overseas. In the past

two years, the company has expanded from

two to eight employees, and from a

2,000-square-foot shop to a 7,000-square-

foot warehouse and automation centre.

The company also has a salesman based

in Calgary.

Movac Valve Systems carries several

product lines:

automax — Valve and damper actuators

Movac — Manual gear operators

uni-Lift — Machine screw and ball screw jacks

atI — Linear operators

auMa — Electric actuators

“We try to have the products that

customers require,” Robb says. “There are

specialty items that some customers

require, and we try to have them on the

shelf, ready to go. We try to look ahead. If

you might need these items down the road,

we put them on the shelf. We are definitely

there to help them.” This way, Robb explains,

Movac can save customers both time and

expense, since it means the company won’t

have to build systems from scratch.

Movac Valve Systems has seen steady

growth over the years, and the recent

economic slowdown didn’t affect the

company much, Robb says. “We didn’t really

see much. It wasn’t anything I was really

worried about.”

As far as the future goes, Movac’s

approach is to “just keep moving ahead.”

“No matter what your need or application,

talk to us,” Robb says. “We can help you get

the job done right. We have years of

experience in all kinds of industrial valves

and valve systems.”

Movac Valve systemsHelping you get the job done right

16 prOFiler

Page 17: Keys to the Turnaround

stuber’s Cat serviceOffering experienced operators, 24-hour service

Stuber’s Cat Service specializes in wellsite

preparation, wellsite cleanup and reclama-

tion, along with general Cat and track hoe

construction. Serving central and northern

Alberta, we offer 24-hour service with

experienced operators and specialized

training, which is a company mandate.

We are an industry leader in heavy

equipment operation, and are committed to

offering top-quality work for the construction

of oilfield leases and access construction, as

well as wellsite cleanup and reclamation. We

have the skills and equipment necessary to

complete every project.

Located in the Barrhead area, Stuber’s

Cat Service is active in many different

locations, including Whitecourt, Drayton

Valley, Athabasca, Westlock, Morinville,

Spruce Grove and surrounding regions.

Owned and operated by Mike and Delphi

Stuber, the company was established in

1975 and incorporated in 1980. When he

first started out in the business, Mike ran

equipment for his father, Edward Stuber,

who owned Cats. Mike bought his first Cat

from his dad in 1975, then continued

expanding, buying and upgrading equip-

ment making Stuber’s Cat Service what it

is today. Mike is the company’s president

and chief executive officer, while Delphi is

office manager and company safety

officer. Their son Trevor also owns and

operates equipment, and works alongside

his father.

Stuber’s Cat Service is a third-generation

company offering 24-hour service with highly

experienced, trained personnel who perform

their duties while maintaining safety and

high-quality work as a top priority, and

complete their work with the least amount of

impact on the environment as possible.

Stuber’s Cat Service prides itself on

having the best safety and environmental

standards in the industry and on doing a

quality job on time, for each and every

customer.

Our company holds a Certificate of

Recognition and are proud members of

Comply Works (formerly HSE Safety

Canada), ISNetworld and Partnerships in

Health and Safety.

Currently, our main challenges are to

diversify and continue maintaining top-quality

workmanship in these challenging economic

times. Further expansion will depend on

future economic growth.

CoMPany naMe: Stuber’s Cat Service

PresIdent/Founder: Michael Stuber

year InCePted: 1980

nuMBer oF eMPLoyees: 20 full-time

BusIness CateGory: Oilfield construction/reclamation

address: Site 7, Box 12, RR#2, Barrhead, AB

Phone: (780) 785-2173 (office), (780) 785-2646 (fax)

eMaIL: [email protected]

FAST FACTS

Stuber’s Cat Service president Mike Stuber (left), Trevor Stuber (centre) and office manager/safety officer Delphi Stuber with dog Shaker.

prOFiler 17

Page 18: Keys to the Turnaround

This past June, Profire unveiled its new

flagship product at the Global Petroleum

Show in Calgary. The Profire 2100 Burner

Management System (BMS) offers a head-up

on the competition with its stackable

expansion modules, which allow the user to

add nearly any functionality, such as modbus

and data tracking, to the system. This

reduces the cost of the base model, while

allowing for precise tracking and manage-

ment of the burner when required.

“The biggest thing is that it’s user-friendly.

It is designed around user expansion, with

optional add-on cards,” says Profire

vice-president Justin Hatch.

After the debut of the 2100 controller,

requests for Profire’s new flagship controller

and its additional functionality have been

steadily increasing. “Our end users couldn’t

be more pleased with the new functionality,”

states Hatch.

Harold Albert, Profire Combustion

president, observes: “Our Profire 1100

blazed the trail for safety and efficiency.

Coupled with the service rendered by our

experienced team, the 2100 will take its

place in meeting the needs of our custom-

ers by decreasing operating costs, increas-

ing efficiencies and eliminating downtime.”

Based in Spruce Grove, Alberta, Profire

Combustion has been at the forefront of the

burner industry almost since the inception of

the electronic management system. Profire’s

knowledgeable employees have served the

burner industry for a combined total of 30

years. Over the years, the now publicly

traded corporation has focused its efforts on

building the most robust BMS on the market.

Profire Combustion is the operating division

of Profire Energy (PFIE: OTCBB).

UNPARALLELED SERVICE

Profire has expanded its service department

to ensure it can continue taking good care of

its customers, as well maintain its firm hold

on the market.

Currently, Profire has four highly skilled

service technicians, who specialize in

everything from commissioning to

efficiency testing. The commissioning

process is one in which they take

particular pride. According to service

manager Brendan Frank, “Our processes

have been carefully structured around

checks and balances, to ensure that the

fuel train and controller are synchronized

to create the highest-efficiency of the

burner. Meeting a high efficiency

decreases the frequency of service visits,

reduces fuel consumption and ensures a

longer-functioning system.”

Along with commissioning, Profire techs

also do preventative maintenance on the

various burner units. This includes Flame

Arrestor Testing, which is the API 12N

procedure for ensuring the flame arrestor

is still able to effectively quench the flame.

Ensuring that fuel trains are set up in

accordance with the B149 Gas Code

Profire CombustionImproving equipment efficiency and reducing customers’ costs

Profire Combustion supplies reliable, quality products and services to the oil and gas industry, providing the latest in burner control. Profire is committed to doing all it can to improve

equipment efficiency and reduce operating costs for its customers.

18 prOFiler

Page 19: Keys to the Turnaround

CoMPany naMe: Profire Combustion

PresIdent/Founder: Partnership — Harold Albert and Brenton Hatch

year InCePted: 2002

nuMBer oF eMPLoyees: 18

BusIness CateGory:Oil and gas burner industry

address: Box 3313, Bay 12, 55 Alberta Avenue, Spruce Grove, AB

Phone: (780) 960-5278

WeBsIte: www.profireenergy.com

guidelines is a top priority, and the Profire

team has been carefully trained to meet

this standard.

SPECIALIzED PRODUCT LINES

In order to meet the needs of its valued

customers, Profire carries many product lines

specific to industry needs. Along with its

proven line of BMSs, including the 1100,

1100i and now the 2100, Profire is proud to

offer lines such as Kimray, Fisher, Neo,

Maxon, Asco and Wohler. The Wohler

combustion analyzers are among the finest

in the combustion analysis market. After

carefully aligning itself with some of the

finest manufacturers, Profire has been able

to boast an unfailing lineup for its fuel trains.

Independently tested, the Maxon burners

have repeatedly outperformed their competi-

tion and a close second is the Eclipse line,

which Profire also distributes. Asco has

introduced its low-power solenoids, which

are proprietary to the 2100 BMS. Neo ball

valves are among the only CSA-certified

manual ball valves on the market and Profire

represents Neo in western Canada. Ensuring

that they work with the best allows the team

at Profire Combustion to provide a reliable,

manageable system.

FUTURE GROWTH

Marking the recession as a starting gate to

consider the market’s future, Profire

devoted its energies during this slower

time to prepare for growth. As the market

for BMSs expands, Profire’s team of

experts continues to traverse the

rocky economic landscape, emerging

stronger and more able to provide for

customers’ needs.

“The state of the economy has helped us

be more cognizant of the value of a quality

product founded on the principles of

service,” Hatch says. “Our customers

require the best product and efficient

service at an affordable price. And that’s

just how we roll!”

The Profire team believes in a strong

future, built on the value and reliability of

its products, as well as on dependable

service. After considering what the future

could hold, Profire positioned itself for

further development in the market. By

increasing the number of qualified staff it

employs, Profire management has prepared

the company for growth, opened doors that

had previously been closed, and paved the

road to further developments serving the

combustion industry.

FAST FA

CTS

prOFiler 19

Page 20: Keys to the Turnaround

w w w . a w i n c i n e r a t o r s . c o m 1 - 8 8 8 - 7 7 8 - 0 9 6 0

Well Tested. Nature Approved.

At AWI we are dedicated to reducing oil and gas related production test flaring. Our low emission burner technology provides advancement over existing conventional flares and with over 80 years experience in incineration and production testing, we guarantee you superior results. Competitive rental rates, 24 hour service and client satisfaction — that’s the AWI promise.

AWI_Nickels_FullPage_103530_072810.indd 1 29/07/10 1:41 PM

w w w . a w i n c i n e r a t o r s . c o m 1 - 8 8 8 - 7 7 8 - 0 9 6 0

Well Tested. Nature Approved.

At AWI we are dedicated to reducing oil and gas related production test flaring. Our low emission burner technology provides advancement over existing conventional flares and with over 80 years experience in incineration and production testing, we guarantee you superior results. Competitive rental rates, 24 hour service and client satisfaction — that’s the AWI promise.

AWI_Nickels_FullPage_103530_072810.indd 1 29/07/10 1:41 PM

Alberta Welltest Incinerators (AWI) provides

industry-leading incineration technology that

is dedicated to reducing the environmental

impact of oil and gas-related production test

flaring. AWI’s low-emission burner technology

provides a significant edge over conventional

flares and enclosed flaring equipment, along

with competitive rental rates, 24-hour service

and an intense focus on client satisfaction.

With more than 80 years of experience in

incineration and production testing, AWI

guarantees you superior results.

AWI’s industry-leading incineration

technology is highly effective and efficient,

converting 99.99 per cent of methane to CO2

and H2O. The system disperses combustion

products thanks to its high operating

temperatures, increased stack velocities and

a forced draft system.

Designed specifically for well completion

applications and patented in Canada and the

United States, AWI’s equipment is “the most

efficient and effective on the market for that

purpose,” says AWI vice-president, Dan

Guenette. “It is the only incineration

equipment in the industry specifically

designed for well completions and well

testing applications — that’s really the big

thing. We designed it specifically for doing

that job, and it does it very well.”

Based in Whitecourt, Alberta, AWI works

primarily in Alberta, British Columbia and

Saskatchewan. The company was founded

in 2004 by two sets of brothers: Dan and

Don Guenette, and Greg and Steve Tipper.

Greg Tipper is president of AWI, which

employs two full-time workers: a manager

and a sales representative, who handle

AWI’s day-to-day operations of renting

portable incineration equipment for well

completion and well testing applications.

AWI’s employees are “top-notch people,”

says Dan Guenette, who believes it is AWI’s

people who make the company the success

that it is, as much as its equipment.

AWI represents the best available

technology to handle the effects of

high-volume flaring associated with well

testing, improving combustion and high

internal temperature retention, and

preventing noise pollution. The AWI burner

system provides optimum fuel and air

mixing energy, ensuring extremely high

combustion efficiency. Alberta welltest

incinerators run quietly and efficiently,

emitting no odour, no smoke, no visible

flame and no heat radiation.

AWI’s control system includes a

patented forced draft multi-point vortex

burner, automated air delivery system, dual

pilot continuous ignition system, and

continuous temperature measurement and

recording. Instantaneous online tempera-

ture monitoring and recording take place

through the on-board communications

module. Clients can access temperature

data with a password, and monitor

real-time temperatures and well test

progression, from any computer with

Internet access.

The simple automated control system is

user-friendly, with a rapid set-up. The

equipment is skid-mounted for ease of

loading, transportation and installation.

Installation is completed in just 20 minutes,

with no guy wires and zero ground

disturbance.

Compared to conventional and enclosed

flaring, AWI technology offers:

• Combustion efficiency of 99.99 per cent,

resulting in improved air quality and

reduced greenhouse gas emissions;

• Stable, consistent combustion in an

enclosed, lined chamber unaffected by wind;

• A freestanding unit with zero ground

disturbance, no smoke, no visible flame

and no odour;

• No heat radiation at ground level, resulting

in improved protection of personnel,

equipment, and Arctic/tundra and other

sensitive environments;

• Oversized load permits and pilot trucks are

not required with AWI’s equipment, which

measures 40 feet long by 11.5 feet wide

and weighs 16,500 kilograms;

• Uses significantly less fuel than a flare to

efficiently incinerate low heat content

gases (H2S) with 99.99 per cent combus-

tion efficiency;

• Compliant with Energy Resources

Conservation Board (ERCB) Directive 60.

The equipment is approved to incinerate

sour gas above five per cent, as per ERCB

Directive 60 requirements. The system

features a 40-foot exit elevation; dual

continuous pilots; continuous temperature

monitoring and recording; and the ability to

maintain a temperature of 600 degrees

Celsius for H2S incineration, reducing or

eliminating additional fuel requirements.

Oil and gas producers choose AWI over

conventional and enclosed flaring primarily when:

• Working within a close proximity to

neighbours and stakeholders (farmers,

ranchers, residential and urban areas,

cottage country);

• Completing wells while ensuring “tight

hole” status when necessary;

• Ground disturbance and ground tempera-

ture radiation advantages are necessary

in environmentally sensitive areas; and

• There’s a presence of H2S in the well gas stream.

It’s no surprise that AWI has been gaining

market share, right through the recession.

“This year, we are up about 20 per cent over

last year,” says Guenette, who sees a very

bright future for AWI. “We’ve got strong market

share in western Canada, and are looking to

take the technology into the U.S. and other

markets. We are very excited about that.”

Alberta welltest incinerators are efficient,

hassle-free and easy to operate. Just one

button. Turn it on. Walk away.

alberta Welltest Incinerators Guaranteeing you superior results

CoMPany naMe: Alberta Welltest Incinerators

PresIdent/Founder: Greg Tipper, president; Dan Guenette, vice-president; Don Guenette, Dan Guenette, Steve Tipper, Greg Tipper, founders

year InCePted: 2004

nuMBer oF eMPLoyees: 2

BusIness CateGory: Oil and gas industry equipment rentals

address: PO Box 447, Whitecourt, AB

Phone: (888) 778-0960 (toll-free); (780) 778-0960 (office)

WeBsIte: www.awincinerators.com

FAST FA

CTS

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w w w . a w i n c i n e r a t o r s . c o m 1 - 8 8 8 - 7 7 8 - 0 9 6 0

Well Tested. Nature Approved.

At AWI we are dedicated to reducing oil and gas related production test flaring. Our low emission burner technology provides advancement over existing conventional flares and with over 80 years experience in incineration and production testing, we guarantee you superior results. Competitive rental rates, 24 hour service and client satisfaction — that’s the AWI promise.

AWI_Nickels_FullPage_103530_072810.indd 1 29/07/10 1:41 PM

Page 22: Keys to the Turnaround

Remote Waste provides

safe, reliable and efficient

waste water treatment

solutions for the Canadian

oil and gas industry.

Established in 2003 in Fairview, Alberta,

Remote Waste specializes in designing,

installing and operating on-site sewage

treatment systems in Canadian sub-zero

conditions.

The company’s state-of-the-art, industry-

leading equipment and sewage treatment

systems are in use throughout western

Canada, the Northwest Territories, Yukon and

beyond. Remote Waste’s mobile waste water

treatment plants can accommodate most

applications, with a modular design allowing

waste water treatment units to be connected

in parallel, providing efficient treatment for

any volume of sewage.

What is most important for Remote Waste

and its clients is the fact the company

excels at cold-climate operations in northern

Canada. It has done so “through years of

experience and knowledge, because it’s

something you can’t just grab off the shelf,”

says Remote Waste manager Darren

Lubeck. “It has taken several years to

develop our procedures and acquire

equipment and supplies. We do a lot of our

own manufacturing. We’ve spent a lot of

time perfecting the ability to pump water

when it’s 45 below. We’ve had to come up

with innovative techniques and procedures

to keep their service going, which makes for

happy clients.”

Full regulatory compliance is another

major concern for the Fairview-based

environmental firm, which takes great care

to remain at the forefront of new technolo-

gies and regulatory requirements.

Something we are actively involved with

is staying on top of the latest trends and

regulations so that we keep ourselves in

good standing, as well as our clients,”

Lubeck explains. “It’s our responsibility to

ensure the highest quality standards, while

at the same time providing a safe, secure,

economic solution for clients’ waste water

treatment needs.” To this end, the

company’s accredited technicians attend

regular training sessions to keep on top of

updated industry standards and operating

procedures.

“The number one focus for us is to have a

product that works and is reliable,” Lubeck

says. “Just as important are our service

people. Our company is based on quick

service and immediate repair, because when

you can’t flush a toilet, it’s amazing how

productivity is affected. At Remote Waste,

we do keep things flowing.”

remote WasteYour waste treatment industry leader

CoMPany naMe: Remote Waste LP

PresIdent/Founder: Ron Milner

year InCePted: 2003

nuMBer oF eMPLoyees: Varies between 18 and 25

BusIness CateGory: Environmental/oilfield rentals

address: P.O. Box 2476, Fairview, AB

Phone: (780) 772-0772

It’s no surprise the company remained “fairly

busy” during the economic downturn and did not

have to lay off staff or change the way it works.

“We took advantage of the extra time to review

our processes, improve procedures and our

ability to enhance value for our clients,” Lubeck

explains. And looking ahead, Lubeck is upbeat

about what the future has in store. “I believe we

are going to be busy into the time ahead, as far

as I can see,” he says.

FAST FACTS

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Page 23: Keys to the Turnaround

Willy D Boilers and Fabricating is an Alberta

Boiler Safety Association–certified

company that fabricates and ships

complete boiler units for the oilpatch, from

skid to shack to the boiler. The Alberta-

based firm specializes in providing

customers with new and refurbished

boilers, boiler recertification and repairs,

boiler rentals, parts, 24/7 field service

and safety valve recertification. Established

in 2008 by partners with well over 30 years

of boiler industry experience, Willy D

Boilers operates a 10,000-square-foot

facility in Nisku where it designs and

manufactures its own burners and control

panels, and carries approximately half a

million dollars’ worth of inventory in stock.

The company also fabricates custom boiler

skids and buildings, and does partial or

complete installations.

Willy D Boilers provides service out in the

field as well as in shop, with service

technicians who travel across western

Canada, getting boilers ready for the winter

drilling season.

Owned by three partners, the company has

nine employees and approximately 60 regular

customers.

“It is the people that make us stand out

from others — the people employed with us

and the people we do the work for,” says

Willy D Boilers partner and general manager,

Ken Skoreiko. “The people that work with us

are the ones that make the company. They

are really dedicated. They go above and

beyond to try and make this company stay

afloat. And the people we do the work for

have been really dedicated to helping us

grow. We want to grow with all of the

companies we are doing work for, and we

want to be able to accommodate them in

every form and fashion.”

Willy D Boilers is a distributor for Williams

& Davis Boilers, which for the past 88 years

has been building reliable steam boilers of

the highest quality, designed and built to

exceed American Society of Mechanical

Engineers code standards.

These are some of the reasons that Willy

D Boilers has done well since it first opened

its doors. When the company started up,

the recession was in full swing, but they

made it through the difficult times just fine.

“Because we were such a small company,

we were able to stay under the radar,”

Skoreiko says. “We stayed busy all through

it. Now, we can see that it is picking up.

There are a lot of people that are calling for

pricing and ordering units.”

While things aren’t yet where they should

be, “this winter is going to be good for

everyone,” Skoreiko says. “If people just

keep their belts tight, I think things should

level out after this winter.”

CoMPany naMe: Willy D Boilers and Fabricating

PresIdent/Founder: Mario Michel

year InCePted: 2008

nuMBer oF eMPLoyees: 9

BusIness CateGory: Fabricating/distributor

address: 3390 8 Street, Edmonton, AB

Phone: (780) 955-7182

WeBsIte: www.willydboilers.com

“It is the people that make us stand out from others — the people employed with us and

the people we do the work for.”– Ken Skoreiko, Partner and General Manager, Willy D Boilers

Willy d Boilers and FabricatingFabricating and servicing boilers for the patch

FAST FA

CTS

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Page 24: Keys to the Turnaround

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Controlling cost is the key to a success-ful drilling program. Alberta-based Sicotte Drilling Tools and Diamond Drill have met this challenge by combining products and services to bring you comprehensive drilling solutions, from surface to total depth. Their goal is to maximize rate of penetration and longevity. And their success rate ranks among the highest in industry.

“Our bits are excellent in directional and horizontal drilling,” says Diamond Drill president Gordie Bath, a 30-year oilfield veteran.

Diamond Drill and Sicotte Drilling Tools are privately owned companies that joined forces in 2005, with more than 20 employees, a business develop-ment office in Calgary and distribution centres all across western Canada including Alberta, British Columbia, Saskatchewan and Manitoba. Both Diamond Drill and Sicotte Drilling Tools provide repair services, sales and rentals of drill bits and downhole tools in addition to offering a complementary suite of products and services to assist clients with all of their drilling require-ments. Each company has a solid history of serving the oil and gas industry.DIAMOND DRILL

Diamond Drill, established in Acheson,

Alberta, in 2005, is a growing company that

operates a state-of-the-art repair facility in

Acheson. Diamond Drill (Bit-Tech Canada)

provides matrix and steel body PDC and

bi-centre drill bits. It is the exclusive

Canadian and northern U.S. distributor for

Bit-Tech PDC drill bits. Bit-Tech is a

Texas-based PDC bit manufacturer that

manufactures matrix and steel body PDC bits

and bi-centre bits for specialty applications.

In addition, for customers with special

requirements, Diamond Drill is capable of

designing and custom-manufacturing these

bits within 30–60 days.

Diamond Drill, which primarily serves the

western Canadian oil and gas industry, is

now expanding overseas and is doing work in

Sudan and Egypt. The company has worked

in the United States in the past, and intends

to return to the U.S. market this year.

Diamond Drill is ISNetworld-certified.

SICOTTE DRILLING TOOLS

Founded in 1976 by the Sicotte family,

Sicotte Drilling Tools was acquired in 2003

by Steve Shim, who has more than 20 years

of oilfield-related experience. Sicotte Drilling

Tools, which provides new and rerun,

reconditioned roller-cone bits and downhole

tools, is the official North American

distributor for TSK Roller-cone Bits of Japan.

Sicotte is Secor (Enform) certified,

ISNetworld-certified and ISO 9001-certified

(quality Management). It is the only ISO

9001–certified roller-cone bits reconditioning

facility in North America.

Together, Sicotte/Diamond Drill offer one

of the widest ranges of downhole products

and services in the market, including:

• Matrix PDC bits by Bit-Tech

• TSK roller-cone bits from Japan

• Retip, rerun and brand name new

surplus roller-cone bits

• Hole openers from 7 7/8 inches to

45 inches

• Customer bit repairs at their state-of-

the-art matrix PDC repair facility

• 24/7 sales and service

CoMPany naMe: Sicotte Diamond Drill

PresIdent/Founder: Gordie Bath

year InCePted: 2005

nuMBer oF eMPLoyees: 22

BusIness CateGory:Oilfield rentals

address: 820, 510 5 Street SW, Calgary, AB

Phone: (403) 237-6777

WeBsItes: Diamond Drill: www.diamonddrill.ca

Sicotte Drilling Tools: www.sicottedrillingtools.com

sicotte diamond drill: drilling solutionsRediscover performance, maximize your profit

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Page 25: Keys to the Turnaround

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• Industry-leading repair technicians with

over two decades of experience

• Scrap bit charity program.

TSK and Bit-Tech PDC bits have proven

themselves capable of handling the toughest

drilling challenges and the Sicotte/Diamond

Drill Calgary-based business development

team will recommend the best bits to optimize

drilling performance. Their four-person

business development team has more than

85 years of combined oilfield experience.

These are some of the reasons that

Sicotte/Diamond Drill made it through the

recession “fairly well,” Bath says. “We’ve got

some very good customers who were loyal to

us through the slow times.” Bath is positive

as he looks ahead the next few years. “We

are hearing extremely good things about the

future. The industry is strong here in Canada

and in other parts of the world.”

Page 26: Keys to the Turnaround

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Page 27: Keys to the Turnaround

CoMPany naMe: Lea-Der Coatings

toP eXeCutIVes: Darrell Demers, president; Ron Hipfner, account executive; Steve Latcham, manufacturing team leader; Barbara Barrett, office manager

year InCePted: 1994

BusIness CateGory: Safety — equipment

address: Box 4086# 18, 321 Saskatchewan Avenue Spruce Grove, Alberta T7X 3B3

Phone: (780) 962-5060

WeBsIte: www.lea-der.com

the move this July into a new custom-

designed facility in Spruce Grove, Alberta,

allows Lea-Der Coatings to continue a tradition

of service to the oil and gas industry dating

back to the company’s founding in 1994. The

move coincided with the introduction of Swift

Environmental Equipment to Lea-Der Coating’s

range of environmentally friendly products, and

the expansion of Lea-Der’s worldwide

distribution network into Asia.

While listening to and working with rig

companies to develop polyurethane-based

safety products, Lea-Der Coatings continues

to research the latest technologies to create

products that ensure customers have the

best equipment for personnel safety and

environmental protection.

Research and development has allowed

Lea-Der to expand its original product lines

consisting of direct-apply coatings for

residential and commercial use, and easily

installed traction matting for rig floors. Along

with research, the commitment of long-term

staff — including president Darrell Demers,

who acquired the company in 2007 after

working for the firm as a sales rep for a dozen

years — contribute greatly to Lea-Der success.

The new Spruce Grove facility allows

Lea-Der to continue delivering a high standard

of service and trusted product lines — several

of which are now standard items on drilling

rigs and platforms.

Specifically, Lea-DerTM Traction Matting

— a tough, durable custom-made industrial

polyurethane rotary table and rig floor

matting — has provided traction surfaces on

rig floors for many years. Several years ago,

Lea-Der introduced the colour changes in

matting that are now an industry standard.

The high–visual impact of colour in Lea-Der’s

matting clearly identifies danger zones in

work areas. With the recent addition of heat

to the options available, Lea-Der’s custom-

designed matting continues to meet the

challenges of today’s drilling industry.

Lea-Der Traction Matting is an integral part

of a range of products, each with individual

function, that combine to contain, control,

direct, filter, collect, recycle and store fluids

used in drilling. The grooved grid in the

traction surface of the rig floor matting directs

fluids to the Stealth fluid collection system.

The Stealth System’s engineered design

combines maximum strength with ultra-

light weight. Designed for use on service

rigs, drilling rigs and offshore drilling

platforms, this multi-functional, custom-

manufactured product collects drilling

fluids/solids for separation and contain-

ment, while providing employees with a

cleaner, dryer and ultimately safer

workplace. The carbon-fibre mudcan

completes this control system. Lightweight

and with multiple seal sizes, this unit is

easily operated by one person.

Introduction of Swift Environmental

Equipment complements Lea-Der’s

fluid-control product line. Swift

Environmental Vacuum Systems ensure a

rapid, contained cleanup. The Rig Floor

Cleaning Wand, designed for industrial and

mat cleanup, eases cleaning of work areas.

The range of Vacuum Systems ensures

there is a unit to fill cleanup requirements

safely, while protecting personnel and the

environment from fluid spills.

Lea-Der Coatings’ custom moulding for

drilling safely manufactures blowout

preventer wear rings, Kelly Bushing savers,

Pipe Arm Blocks, Bumper Blocks, the new

cable trays and more. Custom moulding is

another Lea-Der speciality.

Safeguard Technology designs, develops,

and manufactures quality safety products to

maximize safe working conditions in working

and walking areas, by preventing slips and

falls. Safeguard Technology Hi-Traction

Safety Covers are a custom-made, retro-fit

product with a wide range of applications.

Safeguard Technology Hi-Traction Safety

Covers are made in various traction grits,

and can be installed to several types of

substrate. The easily installed covers include

step and ladder rung covers, walkway covers,

and pipe and cable covers. Safeguard

products are used extensively by manufactur-

ing and industrial facilities worldwide.

A recent customer survey on safety

products available established Lea-Der

Coatings as leaders for quality, value,

delivery time and overall high standard of

service. Lea-Der continues to work closely

with industries to bring the best products

available to the marketplace.

Lea-der CoatInGsLeading the way in innovation through environmentally friendly safety products

Fast FaCts

Lea-Der Coatings continues to research the latest technologies to create products that ensure customers have the best

equipment for personnel safety and environmental protection.

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Page 28: Keys to the Turnaround

I GREW UP ON A FARM. I KNOW WHAT IT MEANS TO HAVE THE LAND RESTORED.”

The Canadian Association of Petroleum Producers (CAPP) represents

member companies that produce approximately 90 per cent of Canada’s

natural gas and crude oil, including Canada’s Oil Sands Producers.

The Canadian Association of Petroleum Producers (CAPP) represents

A message from Canada’s Oil Sands Producers

I GREW UP ON A FARM. I KNOW WHAT IT MEANS TO HAVE THE LAND

RESTORED.”Getting a forest started is the critical part of reclaiming

the land. For years, at oil sands drilling locations,

we started the process by planting grass, and it would

take 10 to 20 years for the trees to emerge from the

natural seed bank. Recently, drawing on research from

the University of Alberta, we learned how to create

conditions that allow us to plant aspen, spruce and pine

seedlings right away. So now, the forest can re-establish

itself in a few years, rather than a few decades.

Finding innovative ways to limit environmental impacts

is key to meeting our energy needs responsibly.

Take a closer look at capp.ca/oilsands

Garrett BrownConocoPhillipsGarrett BrownGarrett Brown