Last quarterly is kind of interesting on cleaned up shares.
]

Push of button brings help for isolated oil, gas crews


By Dave Cooper, The Edmonton JournalMarch 17, 2009



An inexpensive, satellite-based tracking system is quickly becoming routine safety gear for workers in remote oil and gas sites in Alberta and northern B.C.

Called SPOT, the rugged, hand-held orange devices have initiated 130 rescues around the world since they were introduced in late 2007.

SPOT connects with a global positioning satellite (GPS) and then sends a person's location and message on a text-only, one-way link via a communications satellite to a pre-set e-mail list -- or to an emergency response centre if the 911 button is activated.

At EnCana Corp., which recently bought 180 of the devices, a staff member checking gas wells will touch the "OK" button every 10 minutes. This sends a message to a list of e-mail addresses, and shows his exact position on Google Earth.

If a staff member has an equipment breakdown or needs assistance, then the "Help" button is pushed. For an emergency, touching a red button will send a message to the Houston, Texas, emergency response centre, which will immediately contact the closest RCMP detachment or other rescue responders.

"We've found it is a great one-button system that allows auto-tracking and a quick alert for areas without cellphone reception," said Terry Cavalier, safety co-ordinator for EnCana operations in area near Fort Nelson, B.C.

"Our staff travel in pairs where possible, but this adds to safety for situations when staff work alone," he said.

Winter is considered the safest time in the bush because staff are always near their trucks. But things get more dicey when the land thaws and crews use quads or walk to check on wells.

Satellite phones offer two-way voice communications, but are expensive to use. The SPOT sells for $169 with a service package costing between $99 and $300 a year.

An available tracking feature works like a "bread-crumb trail" and allows users to retrace their steps.

"That can save time and improve productivity in areas where seismic (work) is being done, for example," said Fintan Robb, senior marketing manager for Globalstar Canada.

"EnCana is now our biggest oil and gas user, but some smaller firms have also bought SPOT units. We are getting very favourable feedback," Robb said.

SPOT covers most of the globe, from about 70 degrees North to 70 degrees South. The device runs on two lithium batteries, and the "911" function will send a distress signal for up to a week.

"Our first distress call was actually a Canadian kayaker in Tasmania in early 2008. The local rescue service was able to respond quickly," said Robb, who adds his firm is also discussing SPOTs with Whistler ski operators.

The devices are so inexpensive they could be rented or loaned out, and could locate lost skiers. Another feature, SPOT Assist, includes roadside assistance for motorists.

dcooper@thejournal.canwest.com

Wave of the future in oilpatch?

Technology developed by Edmonton company uses high-speed, pulsing water to force thousands of barrels of extra oil out of the ground

By Dave CooperJanuary 3, 2009

Scientists know that earthquakes cause rivers to rise and oilfields to produce more. But how do you duplicate the power of such waves of energy, which move through the ground at 100 metres a second? Wavefront, a local high-tech firm, uses water pulsing at speeds of one-tenth to one-hundredth of a second to flush oil from older reservoirs.

"We're putting something like a heart into rocks in the ground, because if you look at our simulator, the pulse shape is exactly the way a heart beats," says retired University of Alberta physicist Tim Spanos, a co-founder of the company.

And the results have been amazing.

In a just-concluded, year-long test with an international oil company in Alberta, three Wavefront injectors were used in six wells to produce an additional 14,500 barrels of oil.

And that got the attention of the oilpatch, says president Brett Davidson.

"Here's the math. We charge $36,000 for the use of each (pulsing injector) tool for a year. It cost this oil company about $235,000 to license the tools and have them installed by a service rig. Their net return was $1.2 million," he said.

"We're a trend-setter. No one else has done this. When Tim and I formed the company 10 years ago people said, 'I don't believe it, I don't believe your results, it's too simple.' But we have stayed focused," Davidson said.

After years of testing, the company had eight units in the ground a year ago.

"By the end of January we should pass the 100 mark, and then we'll aim for 1,000. It is all because of results like those 14,500 extra barrels." There are 200,000 injector wells in North America, and Wavefront's 10-year goal is to have 20,000 units in place.

The company won't sell its technology, preferring to lease it, and thus maintain a cash flow.

"That's our strategy, we aren't playing games by giving discounts. Everyone pays the same $36,000 fee for use every year." At this phase of the company's growth, Davidson is keen to build a story of success. "We have to understand the reservoir we are putting this tool into. You cannot afford to have poor results," he said.

After years of development, beginning in the heavy oil region around Lloydminster, Davidson says he hopes the hiccups are all history.

Despite current low oil prices, he says there is no better time to implement Wavefront technology.

"Oil was at $12 a barrel when we started, and companies now are calling us routinely to discuss our product." The stainless-steel body of the device, which varies to match differing pipe sizes, is made in Edmonton. The electrical solenoid that opens and closes the valve is made to order by a Rochester, N.Y., firm. The unit costs $6,000 to build, and is designed to last five years.

"But we did an autopsy on a unit we had in Oklahoma for over three years and it was in perfect condition. There was no wear. The water which flows around it acts as a lubricant, and cools the solenoid. We were pleasantly surprised," he said.

The rugged device is designed to be used right out of the box. It sits on the injection tubing and is the first thing in the well.

The physics behind Wavefront's technology is Spanos' life work. Davidson says the firm and its oilfield tool have "breathed life into Tim's equations and brought that work to industry." Spanos uses the example of a balloon to explain pulsing, the most efficient way to move fluids through capillaries in the body -- and through the earth.

"Think of a balloon with holes in it. You are blowing it up, but if you stop, it just goes back to the way it was; but every time you breathe into it, it stays up and expands." The idea works the same underground, where constant pulsing slowly builds an even pressure.

Today, oil firms use a water-flood system to enhance oil production, pumping water down to push the oil to another well, where it can be pumped out. But much like a river flowing to the area of least resistance, the water usually flows into fingers or channels.

"They might get 35 per cent of the oil before it breaks through, and then they get nothing but water," he said.

Wavefront moves the water through as a front -- an even line of pressure. It can thus recover as much as 90 per cent of the oil, much of it as an emulsion.

Wavefront's device responds to the porosity of the reservoir. The more porous the rock and the closer to the surface it is, the slower the pulses. Starting at a tenth of a second, the device can go up to a hundredth of a second for deep, tight formations.

A giant blue whale's heart beats three times a minute, while a tiny hummingbird's heart beats at one-hundredth of a second.

"But they have the same pattern; you always have to cycle back so you can do it again," just as the human heart has its systolic and diastolic stages -- when blood is pumped, and then pressure is reduced to allow the heart's chambers to fill.

Davidson says his company is well-financed and ready to grow quickly. Research and development to date has involved making the tool simpler, and linking units together for horizontal wells.

"That's exciting for us. We can now put 10 tools in a 1,000-metre-long string separated by pipe -- a daisy chain. The controllers can fire all at the same time or differently to match the porosity. A lot of fields are being drilled horizontally today, and they will all need secondary production in the future," he said.

"We think the market is huge. And with an 80-per-cent return to us each year, this is very lucrative." Oil firms are very keen to try the technology, says vice-president Tor Meling. "For the companies I talk to, the upside is too compelling" to ignore.

Ensign Energy profits rise 28%
Uncertainty over prices clouds outlook

Shaun Polczer
Calgary Herald

Tuesday, August 12, 2008

After a rough start to the year, better-than-expected drilling in Western Canada helped Ensign Energy Services post better-than-expected second-quarter financial results, the company said Monday.

However, the prospects of a full-blown rebound are clouded by continuing uncertainty for natural gas prices.

Senior vice-president and chief financial officer Glenn Dagenais said activity levels can fall just as fast depending on the direction gas prices take in the coming months.

Gas futures rose 10 cents in New York on Monday to close at $8.35 per million British thermal unit, but are down almost 40 per cent in less than five weeks.

"Yeah, we're concerned and we're watching it closely,"

Dagenais said of the drop, noting that Canadian activity levels are more sensitive to price moves than the United States, which has been a major growth area for the company.

"Our optimism has to be tempered or described as cautious at best in light of gas prices."

Ensign's second-quarter profits rose 28 per cent to $32.3 million, or 21 cents a share, compared with $25.1 million, or 16 cents a share, last year.

Fuelling the jump were stronger results from northeast British Columbia and southeast Saskatchewan, where producers have made some major oil and gas discoveries.

Saskatchewan has been cashing in on a light oil play called the Bakken while B.C. has seen the emergence of the Montney natural gas fairway.

Ensign, which claims to be the busiest driller in Western Canada, has traditionally been more active in each of those provinces. Consequently, it was able to mobilize enough equipment to take advantage of the rush.

"I think part of it is having the rigs in the right place at the right time," Dagenais said.

In addition, Ensign has been increasing its U.S. presence to offset the volatile Canadian market and diversify its geographic footprint. Revenues from the company's American division climbed 17 per cent to $152.8 million even as Canadian revenue fell two per cent to $108.4 million -- despite fielding twice as many rigs on this side of the border.

Don Herring, president of the Canadian Association of Oilwell Drilling Contractors, credited the drilling uptick to record oil and natural gas prices.

Rig counts are slightly ahead of last year at about 50 per cent utilization in what is normally a seasonally slow period.

The association had originally predicted a dismal 2008 due in part to Alberta's royalty changes and an uncertain commodity price outlook.

"Certainly, we're more optimistic for '08 than we were at the start of the year," said Herring, whose forecasts are based on a New York gas price of $9.23.

"We'd need to see prices in the range of $8 to $9 to sustain those levels through the year."

But analysts expressed doubts that drilling levels will rise much higher than last year, which was also hampered by falling prices.

"We suspect that the latest collapse in prices will quickly put a damper on activity," FirstEnergy analyst Martin King said in a note to clients.

Meanwhile, Ensign's shares surged seven per cent in Toronto on Monday, gaining $1.28 to close at $19.48.

spolczer@theherald.canwest.com
© The Calgary Herald 2008

Precision Drilling profit drops 15.6 percent

Reuters

Wednesday, July 23, 2008

TORONTO (Reuters) - Second-quarter profit at Precision Drilling Trust fell 15.6 percent as incentive compensation expenses increased, Canada's biggest oil and gas contract driller said on Wednesday.

Precision, which wants to expand its U.S. operations with a $1.8 billion takeover of Grey Wolf Inc, said profit dropped to C$21.7 million, or 17 Canadian cents per trust unit, down from C$25.7 million, or 20 Canadian cents, a year earlier.

Analysts polled by Reuters Estimates had forecast, on average, earnings of 18 Canadian cents a unit.

Revenues rose 14 percent to C$138.5 million from C$122 million, largely due to growth in the United States.

Precision, which runs about a quarter of Canada's onshore drilling rigs, said incentive compensation expenses rose to C$9 million from $4 million in the year-earlier period.

The company's hopes of scooping up Grey Wolf for $10 a share were lifted this month when the U.S. company's shareholders rejected a deal with Basic Energy Services Inc.

Labour shortage may slow drilling boom, analysts say
Eligible staff turned off by unstable jobs

Dan Healing
Calgary Herald

Saturday, July 12, 2008

Strong commodity prices and strengthening land sales point to a boom in Western Canadian drilling activity this fall, but a looming labour crunch will blunt its impact, service industry insiders warn.

Duane Mather, CEO of Nabors Canada, said record resource rights sales in B.C. and Saskatchewan, combined with Alberta's best conventional land sale since 2005 on Wednesday, are evidence that the oil and gas industry is recovering from the slump of the last year and a half.

"It's my belief from the market demand that's pent up right now that the industry will run every piece of equipment that we can staff (this winter)," said Mather.

But finding workers will be a problem, he added, noting that as drilling activity declined from the heights of 2006 through 2007 and into the peak winter season of 2008, experienced workers left in droves to find more reliable employment.

"I don't see them coming back until there's a very clear signal that this is a sustained activity period," he said, adding his company would need to hire at least 400 workers to get all of its available rigs back into the field.

On Friday, natural gas in New York closed at $11.904 per million British thermal units, while crude oil closed at $145.08 per barrel after hitting an earlier record high of $147.27.

In its labour force survey, Statistics Canada indicated Friday more than 5,000 jobs were created in the natural resources sector between May and June. Alberta's jobless rate in June was just 3.3 per cent, down from 3.6 per cent in May.

Wednesday's Alberta auction of conventional oil and gas resource rights raised $173 million, taking the year-to-date tally (including oilsands permits) to $640 million.

Meanwhile, Saskatchewan and B.C. have generated record land sales so far this year of $605 million and $960 million, respectively.

"(Land sales are) the confidence measure. That clearly is a leading indicator," said Don Herring, president of the Canadian Association of Oilwell Drilling Contractors.

He said the number of drilling rigs working in Western Canada this month has ranged between 340 and 390, about the same as in 2007, but far lower than July 2005 and July 2006, when more than 500 rigs were employed. Many of the employees who worked on those idled rigs have left the industry.

"I think probably the No. 1 issue facing contractors now is attracting new workers or experienced workers to come back into the business," said Herring. "They've gone somewhere else. They want a steady paycheque."

In May, the CAODC revised its well forecast for 2008 up by 4,000 to 18,000 (it was 19,144 in 2007 and 22,127 in 2006).

But its rig utilization forecast remained below 50 per cent, at just 42 per cent of 885 available rigs. In 2006, rigs were active about 69 per cent of the time.

Roger Soucy, president of the Petroleum Services Association of Canada, said his members worry the labour crunch will worsen because oil and gas companies aren't saying much yet about their specific intentions.

"It's all shaping up to look good but it would be nice if someone would tell the suppliers that. There's no feedback from the operating companies," he said.

"It translates to a big fear that on Nov. 1 the operating community is going to say 'Go!' and the supplier community is going to say, 'Can't do it because we're not ready. We don't have the people.' "

Soucy said members of his association, who provide service, supplies and manufacturing (but not drilling) to the oilpatch, indicated in a February survey they employed about 55,000 people, down from 63,000 at the same time in 2007.

Nabors Canada, the domestic unit of the world's largest onshore oil and natural gas driller, is running only 37 of the 85 rigs it has available in Canada, said Mather, after about 10 rigs were shipped to the United States or other international fields over the past 18 months.

Putting the parked rigs to work would require a lot of hiring.

"At an absolute minimum it's 400 people . . . before we could get to full capacity and that doesn't provide a relief crew," said Mather.

The impending labour crunch could result in higher rig rates, he added. Wages might have to increase to attract workers back to the rigs.

"When we start getting pushed, industry will respond with rates and if it includes an increase for the cost of manpower it will include an increase in the cost of manpower, if that's what it takes to get it done."

Kevin Neveu, chief executive of Precision Drilling Trust, said his firm has started the recruiting process earlier this year. Last year it hired more than 1,500 staff from November through January and this year it will likely need more, he said.

John Tasdemir, oilfield service research analyst for Tristone Capital, said he doesn't think energy companies are quite convinced that oil and natural gas prices are here to stay, although many are starting to believe.

"You're definitely seeing a big increase in activity," he said. "The question is what's the market going to look like in October?

"That's what's going to set the stage for pricing and more confidence levels, and the first-quarter drilling season. So, cautiously optimistic, activity's going up but we're not seeing much momentum on the (service industry) pricing front."

A forecast from UBS AG on Thursday calls for $10.80 this year and $11.50 in 2009 and 2010.

Bill Gwozd, vice-president of gas services for Ziff Energy Group, agreed drilling activity is on the way up.

"In the past three months, gas prices have been fairly strong, and that sends a signal for more drilling activity that's validated by the increase in land sales we're seeing," he said.

"While well completions year to date are down a quarter, I don't think that's indicative of what's going to happen next quarter or the quarter thereafter.

"The higher prices definitely are providing more cash flow for the producers; consequently, they have more cash to drill more wells and that's what they'll go after."

An internal Ziff report shows that gas well completions in the first half of 2008 are down 23 per cent in Alberta, 41 per cent in Saskatchewan and 32 per cent in B.C.

It forecasts between 11,500 and 13,500 gas well completions in Western Canada this year, well off the record 15,700 in 2004.

Ensign snaps up 12 drilling rigs

Jon Harding
From Herald News Services; Calgary Herald

Tuesday, July 08, 2008

Canadian driller and oilfield services company Ensign Energy Services Inc. has purchased 12 drilling rigs from private, northern Alberta-based Terracore Specialty Drilling Ltd.

The rigs, all built within the last four years, and related equipment are designed for drilling core holes in the oilsands during the brief winter freeze-up season, but they can also be used for shallow natural gas drilling in the summer.

Ensign, Canada's second largest publicly-traded drilling company, said crews that had been operating the Terracore assets will be offered positions with Ensign, whose rig fleet grows to 320 rigs, including 47 that can work in the oilsands.

Financial terms of the acquisition were not disclosed.

Bob Geddes, Ensign's chief executive officer, said Terracore was not in distress.

But he added a larger company, such as Ensign, has a better chance of retaining drilling crews once the busy oilsands drilling season ends, as it can re-deploy workers across a broader customer base.

"It's about keeping the manpower, keeping them employed. That's the real efficiency here."

The deal is set to close July 15 and Ensign said it will use working capital and available credit facilities to fund the purchase.
© The Calgary Herald 2008

MCR MACRO ENTERPRISES INC. - http://www.macroindustries.ca

I thought with the royalty review and all the teeth gnashing that went on with that that the Alberta patch was in its death throes.
CBM is dead.
Looks like we've been had.
The place I am working at right now as a Praxair air plant right outside battery limits....I walk by this place 8-10 times a day.
There are always 2-3 b-trains taking on a load of N2.
I wonder what that is used for?
Not.

Not too late. Savana has been chugging along. I don't think that they are in services anymore, Just drilling.

Should have got this thread going two months ago

Savanna Energy earns $55.78-million in 2007

2008-03-11 18:06 MT - News Release

Mr. Ken Mullen reports

SAVANNA ENERGY SERVICES CORP. ANNOUNCES 2007 YEAR-END RESULTS

Savanna Energy Services Corp. has released its year-end results for 2007.

The quarter was marked by an increase in market share in Savanna's drilling division despite the continuation of depressed industry activity levels, the continued expansion of its well servicing fleet and aboriginal partnership model, and a determination that the company's goodwill and intangible asset values had become permanently impaired, resulting in a reduction in the carrying value of both of these items.

The merger between Savanna and Western Lakota, completed on Aug. 25, 2006 (see Stockwatch news dated Aug. 25, 2006), and the acquisitions of Accell Well Services and Bear Steam Ltd. completed on Feb. 16, 2007 (see Stockwatch news dated Feb. 19, 2007), account for a substantial portion of the increase in revenue for the year ended Dec. 31, 2007, compared with the same period in 2006, with the expansion of Savanna's fleet through construction accounting for the remainder. Earnings for the current period include the results of operations for Accell and Bear Steam from the date of acquisition.

Earnings for Ultraline Services Corp. for the one month ending Jan. 31, 2007, have been included in net earnings from discontinued operations in the consolidated statement of earnings. For comparative purposes, the results for 2006 reflect the discontinuation of this division and the assets and liabilities relating to Ultraline at Dec. 31, 2006, have been shown as assets and liabilities held for sale.

In the fourth quarter of 2007, the company experienced an increase in revenues compared with the fourth quarter of 2006 due to an expanded capital base, but reduced demand, increasing operating costs, and reduced revenues per operating day and per hour resulted in an overall reduction of 14 per cent in operating margins.

On an annual basis, the company experienced an overall increase in revenue and operating margins compared with the prior year due to acquisitions and equipment constructed during the year. The annual results include not only the goodwill and intangible asset writedowns and the future tax recoveries discussed previously, but also earnings and a gain on sale of discontinued operations totalling $140.8-million, net of tax ($2.38 per diluted share), on the sale of Ultraline.

The conditions that led to the impairment of goodwill and intangibles include external factors such as depressed natural gas pricing, new government regulations regarding oil and gas royalties announced in the fourth quarter, and currency exchange rates, all of which negatively impacted industry activity levels and use rates. In addition, it is important to consider the transaction that created the initial goodwill and intangible asset balances. When Savanna merged with Western Lakota Energy Services in August, 2006, under existing accounting rules, Savanna was required to reflect goodwill to the extent of the excess purchase price, as determined based on the share exchange ratio, using the then share price of Savanna of $23.49. Despite the merger of two companies equal in size, and although no cash was paid as part of the purchase price, the transaction resulted in goodwill of $421.3-million and intangible assets of $27.3-million. Based on impairment tests performed at Dec. 31, 2007, the value of goodwill was written down by $128.6-million and intangibles were written down by $22.8-million to their fair values at the end of the year. Both the initial recording and the subsequent writedown of goodwill and intangible assets were non-cash transactions.

The quarter also includes future income recoveries relating to income tax rate reductions enacted in December, 2007, and a recovery relating to the writedown of the intangible assets described above. The net result of these factors is a reduction in future income taxes of approximately $11.0-million for the quarter ending Dec. 31, 2007.

Operational highlights:

* Savanna drilled 4,712 wells in 2007, the most drilled by any contractor in Canada, which represents a 25.5-per-cent market share based on wells drilled. The company also ranked third in metres drilled for the year.
* The company's drilling fleet had the highest use rate among the top 5 contractors operating in Canada.
* During 2007, Savanna introduced two hybrid drilling rigs to the United States market, and expanded its U.S. drilling fleet to seven rigs by the end of the year.
* During 2007, Savanna concluded its first aboriginal partnerships with respect to well servicing, exiting 2007 with four service rigs in 50/50 partnerships.

The quarterly results of Savanna are markedly affected by weather patterns throughout the company's operating area in Canada. Historically, the first quarter of the calendar year is very active, followed by a much slower second quarter. As a result of this, the variation on a quarterly basis, particularly in the first and second quarters, can be dramatic year over year, independent of other demand factors.

Revenue for the fourth quarter showed a slight increase from the same period in 2006 as a result of a larger equipment base through construction and through acquisitions, which was offset by weaker market conditions. The large decrease in net earnings from continuing operations year over year is a result of the $151.4-million impairment loss on goodwill and intangibles discussed previously.

Contract drilling

Savanna provides proprietary hybrid drilling rigs, telescoping double drilling rigs, a pipe arm single drilling rig and coring delineation rigs through Trailblazer Drilling Corp., Western Lakota and Akuna Drilling.

In the fourth quarter, revenue from contract drilling increased by 5 per cent relative to the prior year; however, operating expenses increased substantially from the prior year as a result of rising labour and fuel expenses, causing operating margins to decrease by 21 per cent. In addition, the company experienced decreased revenue per operating day as demand and activity in the oil and gas industry weakened relative to the same period in the prior year. Despite the slowdown in the overall industry, the company's drilling division was able to increase its share of the market as evidenced by a use rate 13 per cent higher than the industry in the fourth quarter.

On an annual basis, the decrease in per rig use experienced by the drilling division was offset by the effect of a larger fleet and increased revenue per operating day, creating an overall increase in total revenues and operating margin for the year ending Dec. 31, 2007, as compared with 2006. The drilling division was able to increase its share of the market as evidenced by a significantly higher than industry average use rate for the year ending Dec. 31, 2007. Operating margins for the year did not increase at the same ratio as revenue due to increasing operating costs, specifically direct labour. The company was able to achieve an increase in revenue per operating day from 2006 levels, despite a slowdown in the market in the latter part of 2007, due to the inclusion of Western Lakota results for a full 12 months, more rigs working in the United States and the value placed on its equipment by customers relative to competitors.

During 2007, Savanna averaged a deployed fleet of 83 net rigs (2006 -- 42) and exited the year operating a fleet of 91.5 net rigs (2006 -- 78.5 net rigs).

Well servicing

The well servicing division experienced an increase in revenue and operating margin compared with the same quarter in the prior year due to an increase in equipment as a result of the Accell acquisition early in 2007. This division was negatively impacted by reduced demand in the fourth quarter of 2007, as evidenced by decreased hourly and use rates from 2006 levels.

On an annual basis, the increase in revenue and operating margin was also a result of an expanded fleet. Operating margin for the year did not increase at the same ratio as revenue due to increasing operating costs, specifically direct labour. Although this division achieved consistent revenue per hour rates with the prior year, the company's increase in available equipment coupled with the significant reduction in demand in the oil and gas market resulted in a 22-per-cent decrease in use rates from the prior year. During 2007, the well servicing division operated an average of 43 service rigs, 6.5 coiled tubing service units and 34 boilers, compared with the same period in 2006 where the division operated an average of 22 service rigs, 3.5 (net) coiled tubing service units and 12 boilers.

The well servicing division exited the current year with 56 service rigs, eight coiled tubing service units and 34 boilers.

Discontinued operations

Effective Jan. 31, 2007, the company closed the sale of its wireline division, Ultraline Services, for net proceeds of $208.0-million, plus a working capital adjustment of $1.1-million.

Immediately prior to the sale, Ultraline declared and paid a dividend of $5.5-million to Savanna, as contemplated under the purchase and sale agreement, which has been eliminated upon consolidation of the financial statements for the current period. Also included in the sale were specific real estate assets and office equipment owned by Savanna.

The decrease in revenue and net earnings from discontinued operations in 2006 is due to the fact that the 2007 results only include one month of Ultraline earnings, whereas 2006 includes 12 months of operations based on the effective closing date of Jan. 31, 2007.

Stock compensation expense of $700,000 (2006 -- $600,000) has been included in net earnings from discontinued operations for the year ended Dec. 31, 2007, and relates primarily to the remaining unamortized portion of stock compensation relating to options held by Ultraline employees.

The gain on sale of discontinued operations was based on net proceeds of $209.1-million, net of $100,000 in legal and property tax expenses. The net book value of Savanna's interest in Ultraline and the related assets that were sold on Jan. 31, 2007, totalled $36.7-million, resulting in a gain of $172.4-million ($140.4-million, net of tax).

Other

Savanna will host a conference call for analysts, investors and interested parties on Wednesday, March 12, 2008, at 8 a.m. (Mountain Time) (10 a.m. (Eastern Time)) to discuss the company's 2007 fourth quarter and year-end results. The call will be hosted by Ken Mullen, president and chief executive officer, and Darcy Draudson, chief financial officer.

If investors wish to participate in this conference call, please call 1-888-892-3255 (for participants in North America). Please call at least 10 minutes ahead of time. A replay of the call will be available until March 19, 2008, by dialling 1-800-937-6305 and entering in passcode 110765.....................................

CHC Helicopters to go private
Deal worth $3.7 billion is likely to be approved

BY FIONA ANDERSON
Vancouver Sun

VANCOUVER - Richmond-based CHC Helicopter Corp. has been bought by a private equity fund for $3.7 billion in a deal that will see some shareholders receive a premium of almost 50 per cent.

First Reserve Corporation, with offices in Connecticut, Texas and the United Kingdom, has agreed to pay $32.68 in cash for all of CHC's outstanding Class A and Class B shares for a total of about $1.5 billion. The rest of the purchase price comes from the assumption of debt and liabilities.

The share offer price represents a 49-per-cent premium for the Class A shares which closed at $21.88 Thursday on the Toronto Stock Exchange. On Friday, the Class A shares of CHC closed at $30.25. (The Class B shares, which are not as widely held, closed Thursday at $23.75.)

First Reserve bills itself as the world's leading private equity firm focusing on the energy industry. CHC is the world's largest provider of helicopter services to the global offshore oil and gas industry.

Teaming up with First Reserve will enable CHC to continue its growth strategy, CHC's president and CEO Sylvain Allard said in an interview.

First Reserve recognized the growth potential for CHC, with the price of oil and demand for helicopters at all-time highs, Allard said. The fund also understands and supports CHC's growth strategy.

"All we're getting is basically a very strong investor behind us to continue our growth and to continue our strategy. So it's all good news," Allard said.

"At the same time [First Reserve] delivered very compelling value for our shareholders," Allard added.

Allard said he believes the deal is the largest buyout ever in the oilfield service industry.
Business should continue as usual with the head office staying in Richmond and Allard remaining in the top job.

The agreement requires approval by shareholders, but the largest shareholder, the estate of founder Craig Dobbin, has already agreed to vote in favour of the deal. As the estate owns 14 per cent of the Class A shares, 95 per cent of the Class B shares and 100 per cent of ordinary shares, which are not publicly-traded, shareholder approval is likely.

But the sale will be the end of the Dobbin legacy. Dobbin started the company in Newfoundland when he bought a helicopter to take him to his favourite fishing spots. But to be able to afford the pricey toy, Dobbin realized he had to turn it into a business and Sealand Helicopters was born in 1977. After adding to the fleet, Dobbin set up CHC in 1987 - which stood for Canadian Holding Company - to buy Okanagan Helicopters and Toronto Helicopters, which he merged with Sealand.

CHC then continued expanding into Europe, Australia and around the world, and today has 300 helicopters flying in 30 countries.

While Dobbin remained primarily in Newfoundland, the head office of CHC was moved to B.C. in 2004. At Dobbin's death, in 2006, his son Mark Dobbin took over as non-executive chair.

Under the terms of the deal, Mark Dobbin will no longer be employed by CHC and neither Mark Dobbin nor the estate of his father will be allowed to invest in the fund that will buying CHC.

fionaanderson@png.canwest.com
© Vancouver Sun

Zeox receives first ZMM-ZeoFume commercial order

2008-01-31 05:13 MT - News Release

Mr. LuVerne Hogg reports

ZEOX COMMENCES SALES OF DOWNHOLE CEMENT PRODUCTS

Zeox Corp. has received its first commercial order for its patented ZMM-ZeoFume for downhole cement formulations. The product will be used in a beta trial for the completion of a number of oil and natural gas wells in Western Canada in February and March of 2008.

The ZMM-ZeoFume used in formulations offers high strength, high yields and variable densities for improved hydraulic isolation across and near pay zones. This product has excellent potential for large scale acceptance in the Eestern Canadian basin and Western United States.

The order was placed by a company engaged in the completion of oil and gas wells globally. In 2007, Zeox built and acquired the zeolite resources, mining, production and distribution capability required to commercialize these and other zeolite products, domestically and internationally. The company's facilities in Nevada and Arizona are currently producing ZMM-ZeoFume. The company's Montana processing facility will be on-line in April, 2008, to produce this product line for Canada and the Northern United States markets.

As a result of collaborative work, Zeox has a licence agreement with the National Research Council of Canada for United States patent No. 5,494,513, Canada patent No. 2180483 and Mexico patent No. 195989 for Zeolite-based lightweight concrete products. The company strengthened its patent rights in June, 2007, when it received non-exclusive worldwide licence rights to globally commercialize five patents related to zeolite-based lightweight concrete products for use for application in the oil and gas completion industry from Halliburton Energy Services Inc.

Precision plans spending surge
International market back on trust's agenda

Lisa Schmidt
Calgary Herald

Thursday, December 20, 2007

Precision Drilling Trust is boosting spending by 70 per cent in 2008 despite a weak outlook for natural gas prices that has cut demand for drilling services in Western Canada.

The country's largest oilfield services company said Wednesday it plans to spend a record $370 million in 2008 to add new rigs to its U.S. fleet as it signalled a return to international markets and possibly a corporate conversion.

"We believe that the aggressive 2008 capital program is an indication that the trust will convert back to a corporation earlier than 2011," said Todd Garman, an analyst with Peters & Co. in Calgary, referring to federal changes that will end trusts' favourable tax status.

Precision, headed by recently appointed chief executive Kevin Neveu, said it will spend about $260 million to start building 19 new rigs over the next six to 18 months. The company's U.S. drilling fleet grew from one to 12 rigs during 2007, and the pace of growth is "expected to increase with a continued mix of rig deployments from Canada and new rig construction."

The driller also said it will deploy one rig to Latin America in early 2008, nearly three years after exiting its international business.

"This contractual arrangement is enabling Precision to re-establish internal infrastructure for the international market and reflects early marketing efforts," the company said in a release.

Precision sold off its international drilling operations and its technology arm to Houston rival Weatherford International Ltd. for about $2.9 billion as part of plans to convert to an income trust. Non-compete agreements resulting from the sale of those assets will expire in August next year.

"They are trying to say in no uncertain terms that their focus is to grow and once again become a global premier player in the drilling business rather than just be stuck in Canada as a trust," said John Tasdemir, an analyst with Tristone Capital in Calgary.

Canadian drilling companies are mostly expected to cut back on spending in 2008 amid a downturn in natural gas prices that has dampened activity in Western Canada after consecutive years of record well counts. "A lot of the Canadian service companies right now are disadvantaged on the balance sheet side -- they just don't have the capital to spend and it's going to be a tough market in 2008," Tasdemir said.

"Unless you have an avenue outside of Canada it's really not worth spending any money in Canada because we've already got too much equipment."

But the U.S. market also faces a growing oversupply of drilling rigs, although demand is strong for "next-generation" rigs being built by Precision and others that are faster and more efficient, he added.

Precision units closed unchanged at $15.50 on the Toronto Stock Exchange on Wednesday. The stock hit a 52-week low earlier this week.

lschmidt@theherald.canwest.com
© The Calgary Herald 2007

Globe/CP says Finning in friendly deal to buy Collicutt

2007-11-28 05:31 MT - In the News

Also In the News (C-COH) Collicutt Energy Services Ltd

The Globe and Mail reports in its Wednesday edition that Finning International has has agreed to pay $145-million or $9.75 a share to acquire Collicutt Energy Services. A Canadian Press dispatch to The Globe reports that Collicutt employs more 450 people. The acquisition adds more than 200,000 square feet of operational capacity in Red Deer, Alta., as well as branch locations in Alberta and British Columbia. Collicutt's board of directors has agreed to unanimously recommend the firm's shareholders accept Finning's offer. Collicutt is an oil field services company active primarily in the servicing and fabrication of natural gas compression equipment and electric power generation packaging, mainly in Alberta but also in B.C. The deal "will set the stage for an ambitious new phase of development as Finning moves and grows its mining and heavy equipment preparation, and overhaul business into Red Deer in a new centre of excellence," Finning said Tuesday. Collicutt shareholders may elect to receive either $9.75 in cash or 0.325 of a Finning common share, or a combination of cash and shares. Up to 1.7 million Finning common shares may be issued. Insiders owns 82 per cent of the outstanding shares.

Talking with the inspector on the p/l yesterday........
A frac that cost $75k four ago was done for $28k this week.

Precision Drilling second-quarter profit sags

Reuters

Thursday, July 26, 2007

TORONTO (Reuters) - Second-quarter profit at Precision Drilling Trust , Canada's biggest oil and gas driller, fell 71 percent as poor weather and uncertainty over natural gas drilling in Western Canada led customers to limit spending, it said on Thursday.

Precision, which runs about a third of Canada's onshore drilling rigs, earned C$25.7 million ($24.9 million), or 20 Canadian cents a trust unit, down from year-earlier C$88.3 million, or 70 Canadian cents a unit last year.

It said the conditions pointed to a "negative outlook" extending into 2008.

Analysts polled by Reuters Estimates had, on average, expected earnings of 14 Canadian cents.

Cash flow, from which trusts pay unit holders regular distributions, fell 33 percent to C$229.1 million, or 45 Canadian cents a unit, down from C$339.6 million, or 89 Canadian cents a unit.

Revenues were C$122 million, down 45 percent from C$223.6 million in the second quarter of 2006.

Precision said it allocated around C$275 million to capital spending on property, plant and equipment in 2007.

The trust said its results were hampered by record precipitation in Western Canada, uncertainty over natural gas drilling in the region, and below-normal rig demand, all of them exacerbated by seasonal second quarter weakness.

($1=$1.04 Canadian)

ENERFLEX ANNOUNCES LETTER OF INTENT TO ACQUIRE KENTECH GROUP

Enerflex Systems Income Fund has entered into a letter of intent in support of its worldwide growth strategy.

Enerflex has entered into an exclusive letter of intent to acquire a 100-per-cent interest in Kentech Group Holdings Ltd. and its subsidiaries, headquartered in the Republic of Ireland. The letter of intent provides that the parties will proceed in good faith to enter into a definitive purchase and sale agreement by mid-September, 2007.

Kentech Group is a privately owned multinational company. Enerflex president and chief executive officer J. Blair Goertzen noted, "Kentech Group is a specialized engineering, procurement, construction, commissioning and maintenance organization providing mechanical, electrical, instrumentation and telecommunications services to the global energy sector with scale and reach in the Middle East, Europe and the former Soviet Union that aligns extremely well with Enerflex's strategic plan."

Mr. Goertzen further stated: "We are excited about the potential this acquisition brings to our regionalization strategy. Kentech Group has a solid, experienced management team in all of its international locations. Further, the culture and core values of each company are very similar, which will enable us to quickly move forward with a clear unified focus. There is a wealth of opportunities available to the combined organizations that position us for further expansion."

Kentech Group currently has operations in the Middle East (Kuwait, Qatar and Dubai and Abu Dhabi in the United Arab Emirates), the former Soviet Union (Azerbaijan, Kazakhstan and Sakhalin Island, Russia) and Latin America. Kentech Group's revenue for the year ended Dec. 31, 2006, was approximately $80-million.

Enerflex continues its due diligence review with closing of the transaction expected in mid-September, 2007.

We seek Safe Harbor.

Fiber Optic sells PinPoint to unnamed company

2007-07-04 09:15 ET - News Release

Dr. Essam Zaghloul reports

FOX-TEK PINPOINT SYSTEM CONTRACT FROM MAJOR PIPELINE COMPANY - CURRENT CUSTOMER ORDERS PITTING CORROSION MONITORING SYSTEM

Fiber Optic Systems Technology Inc. (FOX-TEK) has sold a PinPoint corrosion monitoring system to a major Canadian pipeline company. The contract involves the installation and continuing remote monitoring of a 16-inch bypass line in one of the pipeline company's stations in Southern Ontario, Canada.

Eric Kubian, director of EFM Technology for PinPoint FOX-TEK Inc., stated, "This installation within the station gives us the opportunity to demonstrate that our PinPoint systems are ideal for reducing inspection costs -- even in accessible areas -- by providing automated monitoring of corrosion." Mr. Kubian added: "The PinPoint system is designed for the difficult task of monitoring the growth of corrosion pits. In stations, and other areas of intensive activity, repeating traditional inspections cannot only be costly, but they can hamper daily operations. Our system minimizes the cost and operational impact with a buried sensor system that can monitor independently and send data out to us for analysis."

Dr. Essam Zaghloul, FOX-TEK's president and chief executive officer, said: "We are pleased that this pipeline company has added our PinPoint system to their integrity management program. Since they are also using our FT fibre optic sensor system for corrosion monitoring, they clearly see the benefits of remote, on-demand monitoring to help prevent track pipeline health. This is another step that shows the growing recognition of the many benefits of our monitoring systems within the oil and gas industry."

[Suppressed Sound Link]

Fiber Optic installs PinPoint for Malaysian oil company

2007-06-25 10:28 ET - News Release

Dr. Essam Zaghloul reports

FOX-TEK EXPANDS INTO MALAYSIA WITH PIPELINE MONITORING CONTRACT AGREEMENT WITH MAJOR SOUTHEAST ASIA OIL COMPANY TO TRACK CORROSION

Fiber Optic Systems Technology, Inc. (FOX-TEK) has completed the installation of a PinPoint corrosion monitoring system for a major Southeast Asia oil company. The contract involves the installation and continuing remote monitoring of a 10-inch hydrocarbon liquids pipeline that transports offshore production to a gas plant in the province of Terengganu, Malaysia.

Eric Kubian, director of EFM technology for PinPoint, FOX-TEK Inc., said, "This sale of our PinPoint system in Malaysia shows we can help major oil companies assess their pipelines more accurately, more easily, while eliminating many of the costs associated with inspecting remote sites." Mr. Kubian continued, "There are many such opportunities here in Malaysia, and in other regions, where water and other corrosive elements can not be entirely separated from the hydrocarbon liquids and a common problem results in which the connecting pipelines suffer corrosion damage. Our remote monitoring station means we can track the problem areas and analyze the data from our base in Canada or from anywhere in the world."

Dr. Essam Zaghloul, FOX-TEK's president and chief executive officer, continued: "No other system provides this capability for effective, remote, on-demand monitoring to help prevent pipeline failure. We look forward to furthering our relationship with this company and building on our ability to successfully address the needs of all of our customers."

Fiber Optic makes $321,911 sale to Russian company

2007-06-20 09:38 ET - News Release

Dr. Essam Zaghloul reports

FOX-TEK OPENS RUSSIAN MARKET WITH SALE TO GAZPROM SUBSIDIARY

Fiber Optic Systems Technology Inc. (FOX-TEK) is opening activities in Russia. Highlights:

- FOX-TEK's FT systems are now certified for general use in Russia;

- The first sale in Russia of FOX-TEK products is valued at more than $321,911. FOX-TEK is supplying monitors, sensors, support analysis services and training for JSC Krasnodargazstroy (KGS) for installation immediately at six locations on the Pochinki-Izobilnoye pipeline, in southern Russia near the city of Volgograd;

- FOX-TEK has agreed to co-exhibit at Russia's largest oil and gas show, the "Moscow International Oil & Gas Conference & Exhibition" on June 26 to 29.

Dr. Essam Zaghloul, FOX-TEK's president and chief executive officer, commented: "KGS is an industry leader and we are very impressed with their capabilities. They have over 6,000 staff and offices in five cities across Russia. KGS is a subsidiary of OAO Gazprom, and we believe that will facilitate introduction of our systems. We are very excited about our expansion into the Russian market."

Victor Andreev, general director of KGS, stated: "FOX-TEK has been consistently professional in helping us understand how their advanced non-intrusive systems can support our business objectives. We now understand the strong benefits of the FT system for monitoring bending or other pipeline shape distortions, compared to other techniques."

Fiber Optic signs JV deal with Middle East oil company

2007-06-05 08:14 ET - News Release

Dr. Essam Zaghloul reports

FOX-TEK BUSINESS GROWS IN SAUDI REGION WITH MAJOR PIPELINE CONTRACT

Fiber Optic Systems Technology, Inc. (FOX-TEK) has made a deal with a major Middle East oil company to jointly develop a new pipeline fault detection system for remote pipelines throughout the region. This contract will have a value of more than $200,000 (U.S.).

"Moving forward with this project highlights the significant growth we continue to experience in the Middle East," said Thierry Cherpillod, FOX-TEK's director of operations, Saudi Arabia. "This client's scientific skills and extensive field knowledge are unquestioned. Matching their expertise with our innovative technology adds a key element to maintaining the integrity of the pipelines currently at risk." FOX-TEK will be working closely with the company's research group and field engineers to develop a new system that will monitor/detect the events that could potentially lead to a pipe failure. FOX-TEK's FT monitoring system uses fibre optic sensors bonded to the exterior of the pipeline to alert operators at the first sign of conditions that lead to such failures.

ZOX ...

Zeox gets worldwide licence rights from Halliburton

2007-06-21 06:50 MT - News Release

Mr. LuVerne Hogg reports

ZEOX RECEIVES NON-EXCLUSIVE PATENT RIGHTS FROM HALLIBURTON

Zeox Corp. has received from Halliburton Energy Services Inc., non-exclusive worldwide licence rights to globally commercialize five patents and intellectual property rights related to Zeolite-based lightweight concrete products for use in the oil and gas industry. Terms and conditions will remain confidential due to the competitive nature of the industry.

Zeox and Halliburton originally entered into a joint development agreement in July, 2001. The collaborative agreement outlined the terms whereby final technical qualification and performance specification work could be conducted for products marketable across the oil and gas industry service sector. The technologies involved have been fully tested and are ready for commercialization.

The Halliburton licence rights will be added to the worldwide technology licence agreement with the National Research Council of Canada (NRC) for the rights to United States patent 5,494,513, Canada patent 2180483 and Mexico patent 195989 for Zeolite-based lightweight concrete products that were created as a result of collaborative research between the NRC and Zeox.

The company has been actively engaged in developing its mineral reserves, production capacity and distribution capabilities in the implementation of the first stage of its business model. The company has 275 customers and is now capable of handling large-scale customer demand from its mines and production facilities in Arizona, Nevada and California. Additional capacity and distribution are currently being established in Saskatchewan.

Sure - its free!
http://www.petroleumshow.com/

Hadn't even thought about the oil show.
Going to get me a name card?

I actually saw a rig last week.
XPD is making some noise about punching a few holes around the farm.
Slow.

Enseco Energy loses $3.6-million in 2007


2007-06-04 18:33 MT - News Release

Mr. Kelly Nichol reports

ENSECO ENERGY SERVICES CORP. ANNOUNCES ITS RESULTS FOR THE THREE AND TWELVE MONTHS ENDED MARCH 31, 2007

Enseco Energy Services Corp. has released its consolidated financial results for the three and 12 months ended March 31, 2007.

 
                 FINANCIAL HIGHLIGHTS 
      (thousands of dollars, except per share data) 
  
                         Three months ended  Twelve months ended 
                             March 31, 2007       March 31, 2007 
  
 Revenue                          $  11,304            $  29,250 
  
 Operating (loss) (1)                  (173)              (4,188) 
  
 Earnings before interest,  
 taxes, depreciation and  
 amortization (1)                     1,506                  431 
  
 Cash flow (1)                        1,478                1,473 
  
 Net (loss)                             (93)              (3,626) 
  
 Per share data 
  
 EBITDA (1)                       $    0.11            $    0.02 
  
 Cash flow (1)                    $    0.06            $    0.06 
  
 Net (loss)                       $   (0.00)           $   (0.26) 
 

Well it looks like I get some extra unpaid days off this summer, hopefully that is all it amounts to. Our yard looks like one of those self-storage places too.

You going to the oil show?

Not sure how low it's gonna go but I averaged down this week...again:

FOX-TEK PinPoint Monitoring System Addresses Safety and Environmental Issues on Oil Emulsion Pipeline

08:00 EDT Tuesday, May 29, 2007

FOX-TEK'S Remote Monitoring Sensors Selected Over Traditional Monitoring Methods

TSX Venture Exchange symbol: FOX

TORONTO, May 29 /CNW Telbec/ - Fiber Optic Systems Technology, Inc. ("FOX-TEK"), (TSX-V: FOX), a developer of patented non-intrusive sensing systems, today announced that one of Canada's largest oil and natural gas producers has purchased and installed FOX-TEK's PinPoint EFM system to continuously monitor internal corrosion on an oil emulsion pipeline.

The remote monitoring capabilities of FOX-TEK's non-intrusive system will support the company's proactive pipeline integrity management program while also reducing costs and protecting the environment from preventable pipeline leaks.

FOX-TEK's PinPoint EFM system will continuously monitor and verify corrosion on the pipeline, providing real-time data via inexpensive encrypted cell phone remote telemetry, eliminating the need for expensive repetitive site visits. Sensors within a removable sleeve secured around the pipeline measure the size, shape and rate of corrosion for pipe wall defects. Solar-powered electronics enable measurement and automatic transmission of results, allowing for rapid and more frequent reporting cycles.

Dr. Essam Zaghloul, FOX-TEK's president and CEO commented, "The installation of this PinPoint system continues to highlight the economic and logistical advantages our pipeline monitoring technologies have over traditional methods." Dr. Zaghloul added, "Our EFM pitting monitoring system eliminates safety issues involved in confined space corrosion inspections while simultaneously providing an important monitoring data in critical areas that enables the industry to cost-effectively improve integrity and avoid environmental damage."


About Fiber Optic Systems Technology


Fiber Optic Systems Technology, Inc. "FOX-TEK" develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling, and process pressure and temperature. FOX-TEK's FT fiber optic sensor and Pinpoint systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.

FOX-TEK has offices in Canada (Toronto and Calgary), the USA (Houston), and Saudi Arabia (Al-Khobar). FOX-TEK is traded on the TSX Venture Exchange under the symbol "FOX". For more information, visit www.fox-tek.com.


This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in FOX-TEK's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. FOX-TEK has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


The TSX Venture Exchange has not reviewed and does not accept

responsibility for the adequacy or accuracy of this press release.

For further information: FOX-TEK Company contact: Dr. Essam Zaghloul, president and CEO, Fiber Optic Systems Technology, Inc., (416) 665-2288, ezaghloul@fox-tek.com; Investor Relations contact: Renmark Financial Communications Inc.: Barry Mire: bmire@renmarkfinancial.com; Christine Stewart: cstewart@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717, www.renmarkfinancial.com; Media contact: Neil Torres, Public Relations, Antenna Group for FOX-TEK, (415) 977-1942, neil@antennagroup.com

FOX-TEK Continues Expansion into Saudi Arabia with Al Hoty Stanger Project

08:30 EDT Thursday, May 17, 2007

New Al-Khobar Regional Office Targets Saudi Industrial Market

TSX Venture Exchange symbol: FOX

TORONTO, May 17 /CNW Telbec/ - Fiber Optic Systems Technology, Inc. ("FOX-TEK"), a developer and marketer of patented non-intrusive sensing systems, today announced a field project in Saudi Arabia with Al Hoty Stanger Ltd., a major Saudi industrial laboratory and inspection services company.

Al Hoty Stanger Ltd. (www.alhotystanger.com) has chosen FOX-TEK's FT technology to monitor crack growth in concrete for a large industrial facility in the Eastern Provinces of Saudi Arabia. Thierry Cherpillod, FOX-TEK's Director of Operations -Saudi Arabia, attributes the project and FOX-TEK's growing prospects in the region to the recent opening of a regional office in Al-Khobar.

"Opening an office in Saudi Arabia has led to many more opportunities such as this," Cherpillod said. "This new partnership is a further validation of our vision of the huge growth potential for the use of our innovative technology, particularly in Saudi Arabia and the surrounding Gulf region."

For the Al Hoty project, field technicians will take periodic measurements on site using FOX-TEK's new FT 3410 portable monitor. Records over time will be correlated with other data to better understand the structural integrity of the facility in relation to local settling of the ground.

"We've continually strived to provide the type of quality assessment and testing services our clients have come to expect over the past two decades," said Dr. George Korobokis, Deputy General Manager of Al Hoty Stanger Ltd. "Implementing FOX-TEK's FT system is an excellent opportunity for us to expand our services and implement the use of non-intrusive fiber optic sensors in structural health monitoring."

"We have always believed that having a senior full-time person in Saudi Arabia would speed up our sales cycle and allow us to offer better service to our clients, " said Dr. Essam Zaghloul, President and CEO of FOX-TEK. "Our work with Al Hoty Stanger Ltd. and their talented staff should be a stepping-stone to future projects. With the significant demand to monitor the structural integrity of buildings and industrial facilities in Saudi Arabia, we hope to advance discussions we are having with other large organizations in the area and other neighboring Gulf countries."


About Fiber Optic Systems Technology


Fiber Optic Systems Technology, Inc. "FOX-TEK" develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling, and process pressure and temperature. FOX-TEK's FT fiber optic sensor and Pinpoint systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.

FOX-TEK has offices in Toronto; Calgary; Houston; and Al Khobar, Saudi Arabia. FOX-TEK is traded on the TSX Venture Exchange under the symbol "FOX". For more information, visit www.fox-tek.com.


About Al Hoty Stanger Ltd.


Al Hoty Stanger Ltd. was established in 1975 as independent laboratories and materials testing. Offering a wide range of independent testing/inspection services including physical, mechanical and chemical testing of all kinds of materials (e.g. construction materials, metals, water, oil, fuel, food etc), Al Hoty Stanger Ltd. has 10 test facilities throughout the region. The company is third-party approved by a number of authorities, including Saudi Aramco, and carry ISO 9001.2000 certification from BVQI. The Company is home to one of the best-equipped laboratories in the Middle East and holder of the first National Laboratory Accreditation Certificate by the Saudi Arabian Standards Organization (SASO) in July 1988. In the KSA Al Hoty Stanger Ltd. is approved by MEPA, in the UAE by Dubai Municipality.


This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in FOX-TEK's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. FOX-TEK has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.


The TSX Venture Exchange has not reviewed and does not accept

responsibility for the adequacy or accuracy of this press release.

For further information: FOX-TEK Company contact: Dr. Essam Zaghloul, president and CEO, Fiber Optic Systems Technology, Inc., (416) 665-2288, ezaghloul@fox-tek.com; Investor Relations contact: Renmark Financial Communications Inc.: Barry Mire, bmire@renmarkfinancial.com; Christine Stewart, cstewart@renmarkfinancial.com; (514) 939-3989; Fax: (514) 939-3717, www.renmarkfinancial.com; Media contact: Neil Torres, Public Relations, Antenna Group for FOX-TEK, (415) 977-1942, neil@antennagroup.com

I wonder where these 56 Alberta rugs are working right now?
I can't remember the last one I saw.
An awful lot of steel laying down around Red Deer and Nisku, and fraccing spreads, and p/l crews, and trackhoes, and on and on.

I am hearing there is a little more selection in the Red Deer/Sylvan housing market this spring.......probably be more listings by the end of the year.

http://www.caodc.ca/forcasts.htm

Central Alberta Well Services Corp (C-CWC) - News Release

Central Alberta plans $113-million recapitalization

2007-04-18 14:27 ET - News Release
Shares issued 41,873,273
CWC Close 2007-04-16 C$ 0.65

Mr. Darcy Campbell reports

CENTRAL ALBERTA WELL SERVICES AND TRICAP PARTNERS LTD. ANNOUNCE $113 MILLION RECAPITALIZATION PLAN

Central Alberta Well Services Corp. and Tricap Partners Ltd. have entered into an agreement for a $113-million recapitalization of CWC, involving a $50-million private equity investment in the company by Tricap and the restructuring of the $63-million three-year senior secured credit facility previously provided by Brookfield Bridge Lending Fund Inc. The debt facility will be converted from a three-year term facility to a long-term revolving facility on more favourable terms and conditions. The proceeds from the equity financing will be used to reduce outstanding indebtedness under the debt facility, to finance the acquisition of oil field service equipment for the company's 2007 and 2008 capital programs, and for general corporate purposes, including evaluating and financing opportunistic corporate or asset acquisitions in the oil field service sector. Closing of the transaction is anticipated to take place on or about June 1, 2007, subject to regulatory, TSX Venture Exchange and shareholder approval.

Under the terms of the proposed transaction, Tricap, a fund established by Brookfield Asset Management Inc. to recapitalize businesses with significant potential for value creation, will subscribe for a combination of voting and non-voting common shares of CWC at a price of 70 cents per share for proceeds of $40-million. The company will complete a concurrent private placement (either on a brokered or non-brokered basis) to raise up to $10-million, also at a price of 70 cents per share, which Tricap has agreed to backstop. Following the completion of the transaction, Tricap will hold 49.5 per cent of the voting common shares of the company, calculated on a fully diluted basis (assuming the exercise of all common share purchase warrants currently held by Tricap affiliates), with the balance of its equity investment in the company held in the form of non-voting common shares. Following the completion of the transaction, Tricap will be entitled to nominate two members to the board of CWC. Tricap is entitled under the transaction to receive a commitment fee of $350,000 payable upon closing and reimbursement of out-of-pocket expenses. There is a break fee of $2.4-million payable by CWC to Brookfield in the event that CWC fails to proceed with the transaction, except by reason of CWC's failure to obtain the requisite shareholder approval at the company's shareholder meeting. CWC plans to seek shareholder approval to the transaction, including amendments to the articles of CWC to change its common shares to Class A voting common shares and Class B non-voting common shares, and approval of a change of control in the ownership of the company, at its annual and special meeting to be held on May 31, 2007.

Directors, officers and key management of the company, representing approximately 25 per cent of the issued and outstanding voting common shares, intend to lock up and vote their shares in support of the transaction. There are a number of standard conditions preceding closing, which include due diligence, a fairness opinion and the approval of the transaction by the TSX Venture Exchange. Raymond James has been retained by the company as a financial adviser to provide an opinion as to the fairness, from a financial point of view, of the price at which the common shares will be issued under the equity financing.

Darryl Wilson, president and chief executive officer of CWC, stated: "We are excited to enter into an expanded business relationship with Tricap and Brookfield. The equity financing will allow us to reduce CWC's debt to a modest level and provide us with the necessary funds to expand our fleet to meet current demands. We look forward to a long and successful business relationship with Tricap and Brookfield."

Jim Reid, managing partner, energy, of Brookfield, stated: "We are pleased to be a significant sponsor to CWC. CWC has a very experienced management team with significant organic growth potential, and is well positioned to be an industry consolidator in these challenging times for oil field service companies and trusts."

We seek Safe Harbor.

Drilling in the doldrums as oilpatch lull continues
113 rigs now at work versus 214 last year

Lisa Schmidt
Calgary Herald

Wednesday, April 18, 2007

Drilling activity has slowed to a crawl in the oilpatch, with the number of rigs working in Western Canada dropping to its lowest level in four years.

According the Canadian Association of Oilwell Drilling Contractors, 113 rigs were working last week out of a total of 881, down from 128 rigs a week ago. During the same period last year, 214 drilling rigs were operating.

The numbers reflect a soft start to the spring and summer period, typically a slower period for drillers once the peak of winter drilling has passed.

"It's going to be weak all summer," said Kevin Lo, an analyst at FirstEnergy Capital Corp. in Calgary.

Lower prices for natural gas and rising costs prompted some of the country's biggest oil and gas producers to start slashing drilling plans last fall, tempering expectations for the oilfield services sector after consecutive years of record activity levels.

The number of new wells in Western Canada is forecast to fall about 15 per cent this year to about 19,000 wells.

At the same time, producers have ratcheted back spending on land this year, with sale values dropping about 70 per cent from last year and the amount of acres falling to its lowest level in three years.

"After a challenging 2006, producers appear to be only 'biting off what they can chew' . . . as we see less acreage posted and likely fewer wells drilled than a year ago," FirstEnergy said in a recent report.

Those lower activity levels are expected to flow through to many drilling companies in the form of lower returns. Canada's largest oilfield services company, Precision Drilling Trust, reports first quarter results next week.

It's a turnaround from the past few years when rising oil and gas prices had producers scrambling to drill as many wells as possible, prompting drilling firms to raise rates and build new equipment.

The number of drilling rigs in Western Canada has grown by about a third since 2002, increasing 11 per cent in the past year alone. Utilization rates -- the percentage of rigs working -- will look "pretty ugly" this year, added FirstEnergy's Lo.

An early spring breakup also put a damper on oilpatch work, capping off a rough start to a slower year for drilling in Western Canada.

"It's slower than people likely anticipated it to be," said Todd Garman, an analyst with Peters & Co.

Things could change heading into the fall, as the outlook for natural gas improves and lower demand forces drillers to lower rates for equipment.

"It's very tough to tell right now what will happen through the back half of the year," Garman added.

lschmidt@theherald.canwest.com
© The Calgary Herald 2007

Hi kd

I heard of the first layoffs in the service sector this past weekend.
Story is BJ Services axed 150 people in the province, 60 in Red Deer.
Got a buddy whose son is mill-wrighting with them, told to come back in August.
My little CBM gig has totally dried up.
NG prices are pretty firm.
Interesting to see when they cave in and start drilling again.

JW

LEE ...

New one...

Enseco Energy to begin trading on TSX-V March 27

2007-03-26 15:45 MT - News Release

Mr. Kelly Nichol reports

ENSECO ENERGY SERVICES CORP. ANNOUNCES COMMENCEMENT OF TRADING

Enseco Energy Services Corp.'s common shares will commence trading on the TSX Venture Exchange on the opening of trading on Tuesday, March 27, 2007. Enseco's shares will trade under the symbol ENS.

Fiber Optic reaches out to Saudi Arabia with Zamil deal

2007-03-14 12:20 ET - News Release

Dr. Essam Zaghloul reports

PARTNERSHIP WITH INFLUENTIAL ZAMIL GROUP EXPANDS FOX-TEK'S SAUDI ARABIAN FOOTPRINT; KEY DISTRIBUTOR AGREEMENT TARGETS SAUDI ARABIA AND GULF REGION WITH IN-DEMAND CORROSION MONITORING TECHNOLOGY FOR OIL AND GAS INDUSTRY

Fiber Optic Systems Technology Inc. has entered into a distributor agreement with Zamil Group, a Saudi Arabian-based provider of industrial, commercial and consumer solutions and services. This agreement signifies the beginning of a powerful alliance to provide Saudi-based oil and gas, and petrochemical companies with Fox-Tek's novel new approach to monitoring corrosion. Fox-Tek plans to increase the availability of its product and service offerings within the area, with Zamil Group playing the role of marketing, sales, engineering and support services in Saudi Arabia. A key technical expert from Fox-Tek will be stationed in Saudi Arabia to service the region, assist in the rollout and provide technical expertise.

"We have conducted our due diligence on Fox-Tek's sensing technology and are confident in its ability to significantly impact cost savings for our clients," said Khalid Al-Zamil, director of the board of Zamil Group. "Fox-Tek's ability to monitor pipeline and vessel wall thickness, pitting caused by corrosion and bending of pipelines should prove to be an invaluable asset to clients who understand the importance of maintaining pipeline integrity and see the value in lowering the total cost of ownership."

"This agreement with Zamil Group marks the beginning of our association with another well-respected and highly influential player in the Saudi Arabian market, underscoring the strength of our growing network and the demand for our solutions," said Dr. Essam Zaghloul, Fox-Tek's president and chief executive officer. "Having personally known the Zamil family for more than 15 years, I am confident of our combined synergies and in the Zamil Group's ability to efficiently roll out our systems in Saudi Arabia and the Gulf region, while maintaining the quality service and support required by our joint customers."

About Zamil Group

Zamil Group Holding Co. is a family-controlled global investment company with diverse industrial, petrochemical, commercial and consumer interests worldwide.

Zamil Group, through a vast network of manufacturing facilities in over 55 countries, offers high-quality, innovative and competitive products and solutions, as well as investment opportunities to shareholders through more than 60 businesses worldwide. The group employs over 10,000 people in more than 80 countries.

Calfrac Well earns $72.45-million in 2006

2007-03-02 06:23 ET - News Release

Mr. Douglas Ramsay reports

CALFRAC ANNOUNCES FOURTH QUARTER AND YEAR-END RESULTS

Calfrac Well Services Ltd. has released its financial and operating results for the three months and year ended Dec. 31, 2006.

Financial summary

The company had the following financial results for the three months ended Dec. 31, 2006:

* increased consolidated revenue 6 per cent to $118.3-million;
* recorded net income of $16.9-million or 47 cents per share (basic); and
* realized cash flow from operations before changes in non-cash working capital of $25.5-million or 70 cents per share (basic).

For the year ended Dec. 31, 2006, Calfrac:

* grew revenue 36 per cent to $426.4-million from $314.3-million in 2005;
* improved net income to $72.5-million or $2.00 per share (basic), an increase of 21 per cent from $60.1-million or $1.66 per share (basic) recorded in 2005; and
* achieved cash flow from operations before changes in non-cash working capital of $101.9-million or $2.81 per share (basic) compared with $80.6-million or $2.23 per share (basic) in the prior year.

Operational highlights

Activity in the pressure pumping services industry in Canada lagged expectations throughout the fourth quarter due to the impact of lower natural gas prices and CBM land access, licensing and infrastructure issues. Consequently, the company reallocated some of its equipment and personnel to other regions within this market that were active in deep basin projects. By year-end, Calfrac was operating 15 conventional and four CBM fracturing spreads in the Canadian market. In keeping with the company's philosophy of securing a certain level of business with long-term contracts, Calfrac currently has long-term contracts on four of its Canadian fracturing spreads that will support a minimum level of activity during 2007.

Calfrac continued to enhance the scope of its cementing operations in Western Canada with a strategic focus on the deeper, more technically challenging basins of Northern Alberta and northeastern British Columbia. During the fourth quarter of 2006, the company increased its cementing equipment fleet from 11 at the beginning of October to 13 at year-end with the deployment of two new twin pumping units to service the region's intermediate and deep basins. In December, a new cementing base and a staging base for fracturing and coiled tubing operations opened in Edson, Alta., in order to extend the company's operating reach to a growing list of customers in the region. During the first quarter of 2007, the company plans to add four cementing units to its operating fleet.

During the past year, Calfrac progressed its international expansion strategy by deploying additional equipment to the Rocky Mountain region of the United States. In order to better service the company's growing base of customers in the Grand Junction district, an additional multi-pumper fracturing spread was deployed in December, 2006, for a total of five conventional fracturing spreads operating in the United States at year-end. In addition, a long-term take-or-pay contract was signed late in the year with a major United States oil and gas company to provide fracturing services to a new operating district encompassing Arkansas and eastern Oklahoma. As a result, it is expected that a multipumper fracturing spread will be deployed to the company's new operating base located in Arkansas late in the first quarter of 2007, thereby further strengthening the company's United States operations.

Calfrac continued to grow its presence in the Russian well services market by opening a new operating base in Khanty-Mansiysk, Siberia, in May, 2006. During the year, the company deployed its first multipumper fracturing spread and a deep coiled tubing unit to this new operating region. At year-end, the company was operating one conventional fracturing spread as well as three deep coiled tubing units in Russia. In February, 2007, the company deployed a second fracturing spread to its newest operating base located in Pourpay, Siberia. Two additional deep coiled tubing units are expected to be delivered to Russia by the end of the first quarter of 2007. This equipment is operating under three term commitments negotiated with two of Russia's largest oil and gas companies. Contrary to Calfrac's North American operations, its Russian operations are more heavily weighted to the oil well pressure pumping services market. For 2007, it is anticipated that the larger scale of Russian operations will help drive continued corporate growth and, to some extent, mitigate the impact of a possible slowdown in activity in certain segments of the North American pressure pumping markets.

Outlook

Calfrac believes that the fundamentals for natural gas prices over the long-term are strong, but concerns surrounding short-term natural gas pricing may negatively impact 2007 drilling activity levels in Western Canada, specifically in the CBM market. While Canadian drilling activity is expected to be lower than the record levels experienced in the recent past, it still is anticipated to be relatively strong from a historical perspective. The company is focused on continuing to grow in the pressure pumping markets of the deeper, more technical areas of the Western Canadian sedimentary basin. Despite the weakness in near-term natural gas prices, activity levels in the deeper regions of Northern Alberta and northeastern British Columbia were strong throughout 2006 and are expected to remain steady in 2007. Calfrac anticipates that the low levels of activity experienced in the Canadian CBM market during the past year will continue to be mitigated by the company's contracts servicing these operations. Shallow gas activity is expected to remain strong for at least the first quarter as a result of the company's contractual relationship with a major customer.

The strong performance of Calfrac's United States fracturing operations was a major driver of the company's 2006 financial results. Unlike the Canadian market, drilling activity levels in the United States have remained robust. Calfrac's newest operating base located in Arkansas will begin operations servicing the Fayetteville and Arkoma basins by the end of the first quarter of 2007, further diversifying the company's fracturing operations within the United States market. From this operating base, there is potential for additional growth as more equipment could be deployed into the area to better serve this new market. In 2007, Calfrac anticipates that the United States operating segment will continue to generate strong financial and operating results.

Building on the momentum of Russia's improved operating and financial performance during the fourth quarter of 2006, Calfrac believes that these operations have attained a sufficient critical mass and are well positioned for future growth. The expanded equipment fleet combined with commitments, based on awarded bids, with two of Russia's largest oil and gas companies, is expected to drive improved financial and operating performance from this geographic segment throughout the upcoming year and provide a more significant contribution to the company's consolidated financial results.

The company's financial position was strengthened further as a result of the closing of its recent $135-million (U.S.) debt financing. The offering provides the Company with additional financial flexibility to grow organically, and alternatively, may also allow the company to pursue strategic acquisition opportunities that may arise in the future.

Calfrac will continue to maximize equipment utilization and profitability by redeploying equipment to higher activity regions within its global operating reach.

    CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS 
                      (thousands of dollars) 
  
                                   Three months ended             Years ended 
                                              Dec. 31,                Dec. 31, 
                                     2006        2005        2006        2005 
  
 Revenue                          118,322     111,634     426,418     314,325 
 Expenses 
 Operating                         83,834      68,298     291,056     205,227 
 Selling, general  
 and administrative                 7,929       9,147      28,350      29,467 
 Depreciation                       7,621       4,740      25,699      17,143 
 Amortization of intangibles            -           -           -          36 
 Interest expense (income)            702          67       2,341        (129) 
 Equity share of income  
 from long-term investments             -           -         (72)       (324) 
 Foreign exchange (gains)  
 losses and other                  (1,837)         61      (2,516)        192 
 (Gain) loss on disposal  
 of capital assets                    (25)         (3)         67         152 
                               ----------  ----------  ----------  ---------- 
                                   98,224      82,310     344,925     251,764 
                               ----------  ----------  ----------  ---------- 
 Income before income taxes        20,098      29,324      81,493      62,561 
                               ----------  ----------  ----------  ---------- 
 Income taxes 
 Current                            2,903         844       7,538       1,069 
 Future                               288       1,108       1,505       1,400 
                               ----------  ----------  ----------  ---------- 
                                    3,191       1,952       9,043       2,469 
                               ----------  ----------  ----------  ---------- 
 Income before  
 non-controlling interest          16,907      27,372      72,450      60,092 
 Non-controlling interest               -           -           -         (21) 
                               ----------  ----------  ----------  ---------- 
 Net income for the period         16,907      27,372      72,450      60,113 
                               ----------  ----------  ----------  ---------- 
 Retained earnings, 
 beginning of period              148,052      68,764      94,322      37,832 
 Dividends                         (1,814)     (1,814)     (3,627)     (3,623) 
                               ----------  ----------  ----------  ---------- 
 Retained earnings, 
 end of period                    163,145      94,322     163,145      94,322 
                               ==========  ==========  ==========  ========== 
 Earnings per share 
 Basic                               0.47        0.75        2.00        1.66 
                               ==========  ==========  ==========  ========== 
 Diluted                             0.46        0.75        1.98        1.64 
                               ==========  ==========  ==========  ========== 
  
 We seek Safe Harbor.

Trican earns $172.5-million in 2006

2007-02-27 21:48 ET - News Release

Mr. Murray Cobbe reports

TRICAN- 2006 YEAR END RECORD RESULTS

Trican Well Service Ltd. has released its results for the year and quarter ended Dec. 31, 2006.

Fourth quarter highlights

Results for the quarter ended Dec. 31, 2006, reflect the impact of increased equipment capacity and strong demand for services for the company's Russian operations and lower demand for services in Canada. Russian operations set new quarterly record highs for total revenue and revenue per job, as a result of expanded equipment capacity and operational reach. Activity in Canada was hampered by producer concerns with lower natural gas commodity prices, which reduced industry activity and demand for services.

Activity in the Western Canadian sedimentary basin, as measured by the number of active drilling rigs, decreased 25 per cent for the quarter relative to the same period in 2005. Gas directed drilling in the shallow to intermediate depth areas of the basin was hardest hit, with lower demand for shallow cementing, conventional and CBM fracturing services. As a result of this significant drop in activity levels, revenue in Canada fell 18 per cent relative to the comparable prior quarter.

Trican's consolidated revenue increased marginally compared with the same period in 2005 as the contribution from Russian operations offset the decline in sales in Canada. Net income for the period of $35.3-million decreased 30 per cent over the $50.5-million recorded in the fourth quarter of 2005. Similarly, the company recorded net income per share, excluding the impact of stock-based compensation, of 33 cents (32 cents diluted) versus 46 cents (44 cents diluted) for the comparable period in 2005. Funds from operations of $63.5-million for the quarter decreased $25.4-million or 29 per cent over the comparable period in 2005 primarily as a result of lower earnings.

Highlights for 2006

Trican's financial and operational performance for 2006 reflects strong demand for services in Canada for the first three quarters of the year coupled with record levels of activity from Russian operations. The company recorded revenues of $847.5-million in the year, surpassing the previous year's record of $640.9-million by over 32 per cent. Net income set another company record at $172.6-million increasing 31 per cent from the previous year's record of $131.7-million. In line with higher net income, diluted earnings per share rose 29 per cent to $1.44 from $1.12 in 2005. Funds from operations of $226.5-million for the year established another company record and represent an increase of $24.3-million from the 2005 total of $202.2-million.

During the first quarter, a new record for the number of wells drilled in a quarter was established in the WCSB as strong commodity prices and an extended winter drilling season supported high levels of activity in the basin. However, unseasonably warm temperatures in much of North America led to a significant buildup of natural gas inventory which precipitated a decrease in the price for natural gas resulting in reduced drilling activity over the remainder of the year. The average Nymex natural gas price for the month of December, 2005, was $13.43 (U.S.) per million British thermal units; however, by the end of the year the average price in December had fallen by 47 per cent to $7.16 (U.S.) per million British thermal units. Oil prices continued to perform well relative to last year as the average spot price of West Texas Intermediate, an international benchmark for crude oil, increased 17 per cent in 2006 to $66.05 (U.S.) per barrel from $56.44 (U.S.) in 2005. However as with natural gas prices, oil prices fell later in the year causing uncertainty among producers and undermining demand for services.

Despite a year-over-year 6-per-cent decrease in drilling activity for the year, revenue from the company's Canadian operations increased over 18 per cent as a result of additional equipment capacity and the company's strategic operational focus on the deeper, more technically challenging areas of the WCSB. The number of wells drilled fell 6 per cent to 23,441 in 2006 versus 24,899 in 2005 and 22,729 in 2004. Activity levels were particularly hard hit in the shallow and intermediate depth areas as a result of producers' concerns over natural gas commodity prices. This led customers to reduce spending on marginal gas plays impacting shallow gas and coal bed methane exploitation programs. However, Trican's revenue in the northern and deeper areas of the basin increased 31 per cent compared with last year, reflecting the company's significant investment and strong operating presence in these markets. Work in these areas was less affected by short-term commodity price weakness, as these development programs are focused on longer lived reserves with longer delivery times to market. However, activity in this area fell late in the year as producers completed or scaled back development programs.

Revenue from the company's Russian operations benefited from a full year of operations from the Nefteyugansk base added late in 2005. Operating capacity was also expanded as Trican added two additional fracturing crews during the year, which drove record revenue of $191.8-million, a 125-per-cent increase over the prior year's $85.3-million. Operating margins also improved as a result of higher activity levels, management focusing on increasing operational efficiencies and improved pricing relative to the prior year.

   CONSOLIDATED STATEMENT OF OPERATIONS AND RETAINED EARNINGS 
                        (thousands of dollars) 
  
  
                                         Three     Three 
                                        months    months      Year      Year 
                                         ended     ended     ended     ended 
                                       Dec. 31,  Dec. 31,  Dec. 31,  Dec. 31, 
                                          2006      2005      2006      2005 
  
 Revenue                             $ 208,329 $ 207,502 $ 847,472 $ 640,898 
  
 Expenses 
  
 Materials and operating               137,870   118,673   531,875   393,347 
  
 General and administrative              9,147     5,828    31,405    22,373 
                                     --------- --------- --------- --------- 
 Operating income                       61,312    83,001   284,192   225,178 
  
 Interest expense on long-term 
 debt                                       71       356       736     1,624 
  
 Depreciation and amortization           9,848     6,775    34,798    24,335 
  
 Foreign exchange (gain)/loss             (853)      460    (2,027)     (798) 
  
 Other income                           (1,079)     (487)   (2,321)     (838) 
                                     --------- --------- --------- --------- 
 Income before income taxes and 
 non-controlling interest               53,325    75,897   253,006   200,855 
  
 Provision/(recovery) for current 
 income taxes                            1,386    (3,780)   70,816    26,967 
  
 Provision for future income taxes      16,372    29,102     8,817    41,795 
                                     --------- --------- --------- --------- 
 Income before non-controlling 
 interest                               35,567    50,575   173,373   132,093 
  
 Non-controlling interest                  240       112       810       363 
                                     --------- --------- --------- --------- 
 Net income                             35,327    50,463   172,563   131,730 
  
 Retained earnings, beginning of 
 period                                362,485   235,084   285,547   153,817 
  
 Dividend                               (5,760)        -   (11,504)        - 
                                     --------- --------- --------- --------- 
 Retained earnings, end of period    $ 392,052 $ 285,547 $ 446,606 $ 285,547 
                                     ========= ========= ========= ========= 
 Earnings per share 
  
 Basic                               $    0.31 $    0.45 $    1.50 $    1.17 
  
 Diluted                             $    0.30 $    0.42 $    1.44 $    1.12 
  
 Dividend per share                  $    0.05 $       - $    0.10 $       - 
  
  
 We seek Safe Harbor.

Oilsands set for slow spring as snow, prices slow drilling



Feb 22 2007

GRANDE PRAIRIE (CP) — A winter drilling dropoff in Alberta’s oilsands seems set to extend well into spring as natural gas and oil prices remain well below last year’s levels.

The Canadian Association of Oilwell Drilling Contractors says there were 450 rigs drilling across all of Alberta for the week ending Feb. 13.

That’s compared to 528 for the same period last year.

Rob Petrone, president of the Grande Prairie Petroleum Association, says activity remains down from an initial slump at the start of winter.

He adds deep snow will also make it problematic to access more remote drilling sites.

He says he expects the trend to continue into spring.

“The second and third quarters are definitely going to be lower than last year. The drilling rigs will really drop off,” he said.

Snow levels in the region are far higher than over the last two years.

As that snow melts, it will make it difficult to move any heavy machinery in rural areas, Petrone said.

Many companies are now doing as much work as they can in remote access areas and come spring, the sites might be accessed by helicopters, he said.

“Spring breakup is typically a slower time . . . with the amount of snow we’ve had it could last quite a while.”

Northeastern British Columbia’s oil and gas activity has also taken a significant drop.

The Petroleum Services Association of Canada, representing the service, supply and manufacturing sectors within the petroleum industry, has estimated a 34 per cent decrease in drilling levels throughout B.C.

I dunno, my focus is elsewhere these days.
Trade or LT?
Probably look like a good buy 18 months from now.

Is it time to buy again?

I guess not!

Savanna Energy acquires well servicing and rental businessesadvertisement

CALGARY, Feb. 19 /CNW/ - Savanna Energy Services Corp. ("Savanna") (TSX: SVY) is pleased to announce the acquisition of the assets of a privately-held well servicing company, and the shares of a related well servicing and rental business for aggregate proceeds of $67.8 Million, consisting of $50.8 Million in cash and $17 million of Savanna common shares. The Savanna common shares issued pursuant to the transaction will be placed in escrow and released over a 3-year period.

The combined acquisitions include 20 service rigs plus associated field locations, boilers and support equipment, as well as 1 additional service rig under construction. The acquisition increases Savanna's current well servicing fleet by 83% to 44 rigs.

The operational focus for the purchased equipment is primarily in east central Alberta and west central Saskatchewan, areas in which Savanna does not currently operate. The majority of the fleet of service rigs was built in the last 4 years, and the purchase includes a manufacturing, maintenance and repair facility and personnel that will be used to support the entire go-forward Savanna well-servicing fleet.

All of the principles have agreed to remain with Savanna in their present roles, and all have executed independent three year employment and non-competition agreements.

Based on normalized 2006 estimated results, the acquisition is valued at less than 4 times earnings before interest, income taxes, depreciation and amortization ("EBITDA").

Post this transaction, Savanna's well servicing fleet will consist of 44 rigs, with 8 rigs scheduled for manufacture and delivery in 2007.

This transaction reinforces Savanna's growing position in the well servicing market in a production-oriented area of the basin, and adds significant additional scale to the core well servicing business to complement Savanna's strong existing drilling presence.

Savanna Energy Services Corp. is a leading North American contract drilling and oilfield services company providing a broad range of drilling, well servicing and related services with a focus on fit for purpose technologies for the North American market and industry-leading aboriginal relationships. Post this transaction Savanna will operate 87 drilling rigs, 44 well servicing rigs and 8 coil service units in Canada and the United States.

This Report contains forward looking statements which reflect management's expectations regarding the Company's future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as "believe", "expect" and similar expressions have been used to identify these forward looking statements. The statements reflect management's current beliefs and are based on information currently available to management. Forward looking statements involve significant risk, uncertainties and assumptions. A number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward looking statements. Although the forward looking statements contained in this Report are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date hereof and the Company assumes no obligation to update or revise them to reflect new events or circumstances.


© 2007 The Canadian Press - Stockgroup

Savanna Energy Services (SVY : TSX : $19.07)
Makes $68 million service rig purchase
RBC Capital Markets maintains a "top pick", target price raised to $28.00
TD Newcrest maintains a "hold", 12-month target price is $21.00

Foremost Industries looks into strategic alternatives


2007-02-08 15:44 MT - News Release

Mr. James Grenon reports

FOREMOST INCOME FUND ANNOUNCES COMMITTEE TO CONSIDER STRATEGIC ALTERNATIVES

Foremost Industries Income Fund's board of trustees has decided to consider strategic alternatives that have the potential to enhance value for the unitholders of the fund. The fund has engaged Sprott Securities Inc. as its financial adviser to assist in consideration of these strategic alternatives.

The board and management remain confident in the prospects for Foremost's underlying businesses. While the demand of various industries and for various product lines is always fluctuating, overall demand for the products of the fund's businesses remains strong.

We seek Safe Harbor.

Flint sub wins $1-billion services contract from Suncor

2007-02-05 15:28 ET - News Release

Also News Release (C-SU) Suncor Energy Inc

Mr. W.J. Lingard of Flint reports

FLINT ENERGY SERVICES COMMENCES NEGOTIATIONS FOR OIL SANDS ASSET MANAGEMENT SERVICES CONTRACT WORTH IN EXCESS OF ONE BILLION DOLLARS

Flint Energy Services Ltd.'s subsidiary, Flint Transfield Services Limited (FT Services), together with a consortium of companies, has been selected to enter into exclusive negotiations with Suncor Energy Inc. for the provision by FT Services of asset management services at Suncor's Fort McMurray, Alta., oil sands operations and its Sarnia, Ont., refinery operation, valued in excess of $1-billion.

FT Services is owned 50 per cent by Flint and 50 per cent by Transfield Services Limited of Australia. The other companies participating in the consortium are Calgary-based Colt Engineering Corporation and ThyssenKrupp Safway Inc.

Upon completion of a formal agreement, the asset management services to be provided to Suncor would include: turnaround and shutdown services for Suncor's Fort McMurray oil sands operation and Sarnia refinery; sitewide maintenance services at Suncor's oil sands operation; contract maintenance services to the Sarnia refinery and the extraction and upgrading facilities at the oil sands facility; and engineering, project management and construction services for select sustaining capital projects under $20-million.

Negotiations between FT Services and Suncor are expected to be concluded by the end of the first quarter in 2007. The negotiations are aimed at concluding a rolling five-year, performance-based agreement with an anticipated value in excess of $1-billion in revenues over the first five-year period. In performance-based contracts, supplier profitability is aligned and linked to the supplier achieving Suncor stated objectives and delivering on key principles.

Upon signing of a formal agreement, the consortium, through FT Service's operating entities, would ramp up its presence on Suncor's sites over the next six months. The consortium would assume responsibility for the delivery of maintenance services in Fort McMurray in the third quarter of 2007 and Sarnia in the fourth quarter of 2007 or the first quarter of 2008. All efforts would be focused on a smooth transition with a continuing commitment to safety and reliable operations.

Bill Lingard, president and chief executive officer for Flint, said, "At Flint, we saw the opportunity to combine Flint's deep customer relationships and strong operational footprint in Canada with Transfield Services' global experience and reputation in providing sophisticated asset management services." Mr. Lingard continued: "This is the natural extension of our strategy to build it and maintain it, offering our customers full project life cycle management and maintenance services from wellhead to refinery. This addition to our existing production services; oil sands infrastructure; oil field transportation; processing equipment; and tubular management businesses makes Flint unique in North America in offering such a broad range of related services to the continent's oil and gas producing sectors."

We seek Safe Harbor.