USA Flowback Services Welcomes Rapid Growth

It has been another hectic quarter for the Enseco Energy Services US Flowback Division. Because of our teams efforts Enseco was successfully awarded a large extension with one our major clients while securing new clients in 2013. This work along with potential upcoming work has allowed Enseco to meet a major goal of a more diverse customer and revenue base.

The past 12 months have brought a significant number of changes and improvements to the US flowback team as management strengthens the group with promotion and growth. Additions to the team range from an Administrative Assistant, to Flowback Superintendents, Night Supervisors, an EH&S Advisor, an Operational Manager and a Business Development Manager.

Enseco US Flowback has continued to challenge itself and the team with procedures, processes, culture and equipment. The implementation of a comprehensive competency program for our staff includes revised policies and procedures, a “hands on passport”; training verification forms; and competency exams that guide employees through the training process. This better equips Enseco with a standardized method to measure knowledge and progression while encouraging staff to gain the understanding necessary to advance their careers.

The focus on our culture this quarter is “what will you do today to ensure you make it home safely?” encouraging employees to focus on the task at hand. Working safely for the moment leads to working safely for a minute, hour, shift, quarter, year, etc.

Equipment improvements include a recent installation of a sparging system in one of our vessels as a solution to a client’s needs. The unit continues to be monitored for effectiveness and all reports show that the system is working as promised. We anticipate the installation of the system in up to six additional vessels in the near future.

All indications point towards an exciting and prosperous 2013. The management team would like to thank our staff for their patience, commitment and continued hard work and dedication.

Phil Hemmelgarn, Operational Manager
& John McAuley, Business Development Manager

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Enseco’s Canadian Production Testing Division Prepares for a Busy Quarter

Enseco’s Canadian Production Testing division took advantage of lower than average activity periods throughout the past quarter to reinvest in personnel through training and improve its internal procedures and policies. The fully operational training facility in Clairmont, Alberta has ensured that all employees are receiving the training needed to work safely and effectively in the field. This has resulted in outstanding quality of work.

The sales team will be out in the field throughout the next quarter thanking all Production Testing personnel for these high standards as well as their individual contributions.

Management is currently preparing for an increase in field activity this next quarter in which they anticipate all crews being very busy with both new and existing clients. Existing clients in the northern district include; Encana Wembley, Progress Bucking Horse, Crew Septimus, Apache Kaybob. The Southern area will be busy with; Torc, Vermilian, Velvet, and Cardinal.

Finally, I would like to remind all Enseco employees the importance of continuing your good work. The work you do now will hold us in good stead over the spring and summer months.

Thank you.

Steve Beaudet
Sales Manager
Production Testing

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Financial Update – Enseco Remains Focused on Mission

As you know, we have changed our year end to December 31 from March 31 so we are once again, at the brink of yet another year end audit. As I reminisce over these past nine months I realize how much Enseco accomplishes each quarter; a realization that sometimes gets lost in the haze of our day jobs as we continue to focus on the future. We look to the future and we see uncertainty in our industry. Our clients have pipeline constraints and difficulties getting their product to market. Drilling levels are lower than they have been in the past and that will not change in the near term. When you turn on the radio or watch TV the media talks about the oil industry needing to change. We have no need to worry; change is something Enseco has become very good at.

As I look back over the three years I have been with Enseco, the company as it was in December 2009 is no comparison to the company as it is today; it has changed. We were in five product lines, now we are focused, competitive and profitable in two. We had just entered the USA market place, now almost half of all our revenue comes from the USA and we continually focus our efforts on growth south of the border. Our debt has continued to decline to a level that is manageable and we have continued to invest heavily in new capital. Our asset base has evolved, Enseco has evolved.

Accounting has also evolved. We have an integrated online PO system and my gratitude goes out to all that use it. The PO system has provided quick accumulation of our financial results and better communication of those results to divisional management. We also launched Papersave, a digital online invoice approval and storage system. This has dramatically reduced the amount of time it takes to handle the flow of paper through the company and the time it takes to ultimately pay vendors. Our online AFE system is also now complete, designed to budget and track capital expenses. Enseco’s systems are continuously improving our ability to track and report results.

As always, we remained focused on our mission “to provide consistent high quality service – responsibly”. I believe part of the meaning of “responsibly” is to provide our services “profitably” (what kind of CFO would I be if I didn’t believe that?). There is a lot of competition in our industry. The sales group is out working hard every day to get more work at a higher price for the company, but they have to be competitive to get that work. In order to become more profitable we have to continue to look at all our costs, to justify where we spend our resources, and to find ways to spend less. It is the summation of everyone’s efforts that has led to the improved profitability in the past and it is our continued efforts that will show up in the profitability numbers in the future.

Thanks for all that you do. It has made all the difference at Enseco as the company has redefined its self as a leading supplier of directional drilling and production testing services.

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Message from the President – Enseco Makes Huge Strides

Our company continues to make huge strides in delivering premium service and equipment. Enseco’s competitive advantage lies in our ability to provide our services at higher level than our competitors. We are achieving this by investments in equipment, improvements in technology and a commitment to safety, people and processes. In short we have come a long way as a relatively young company but we have many areas that need further work and opportunities to grow.

We recently were approved by Enform for our COR audit renewal. Our COR audit standing and our yearly Safety stats recently published show our commitment to our EH&S culture and Zero Harm philosophy. This commitment is paramount and integral to our strategy of delivering service excellence. We will not differentiate ourselves without this steadfast commitment to zero harm and zero incidents. Quality service and quality service delivery go hand in hand with Safety. With this in mind and with unpredictable weather causing increased driving risks, please take extra time and caution when needed traveling to and from locations.

Hopefully the Spring-like weather of recent will hold off for the time being and we will get a full Winter Season in this year.

Thank you to all of our staff who are continuing to go that extra mile, delivering service excellence, and raising Enseco above the competition.

Kent Devlin, President

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Enseco Prepares for Winter Drilling Season in Western Canada

Year end is quickly approaching as we enter the winter drilling season in Western Canada. Directional Drilling Management continues to carefully monitor industry activity levels, which remain at 50-60% to ensure equipment and manpower are positioned to provide sustainable equipment utilization rates. Enseco took the opportunity during low levels of activity to reinvest in its personnel through training and education as well as review and improve its internal procedures and processes.

Directional Drilling personnel throughout the company continues to deliver superior service quality. Our well planning group remains on the front lines as they support the needs of our clients in both Canada and the US; down-hole Tool Manager, Sandy de Waal leads his skilled team of technicians and inspectors towards the internal goal of servicing all of our lines of motors; and MWD Manager, Nicolai Pacurari, guides his technicians, engineers and coordinators, as they continuously improve the reliability of Enseco’s existing technology.

Two additions to the Canadian Directional Drilling Sales team were implemented over the past six months – Brad Schaal was hired on as Account Manager on July 9, 2012 and Ken Knuff joined the team on September 17th, 2012. Both bring with them several years of oilfield experience in the areas of directional field operations, measurement while drilling and account management.

The Company’s strategy will remain focused on improving its current fleet of tools, including developing proprietary technology improvements for its MWD and motor fleet and expanding sales.

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Enseco Continuously Improves Health & Safety Culture

Enseco management, employees and contractors have made a strong statement about their commitment to improving the health and safety culture within this organization. Recently our Loss Prevention programs and systems where reviewed to determine how well they stood up to a set program criteria and auditing standards.  The process is still under review. Once complete the COR Certification will be issued by Alberta Employment and Immigration and co-signed by the Certifying Partner, Enform.

A successful loss prevention program has elements like hazard control, hazard assessment, policies and procedures, training and competency, work place checklist, inspections and emergency procedures. Having all these elements in the safety manual may mean our organization is safe on paper. However the performance of this program relies heavily on the safety culture and individual’s commitment. The EHS department would like to thank everyone; field staff, support staff and management for doing their part in building a safety culture that is proactively reducing material, equipment, environmental and personal loss.

In an effort to improve the evaluation of hazard ID’s, field checklists, journey management cards and site inspections, the EHS department has tracked these documents. I would like to focus on the Hazard ID and note that the quality of reported Hazards submitted has improved substantially. Between July and Sept a total of 541 Cards were reviewed by management, EHS Department and in some cases Oil Companies. The Hazard ID’s are a process for identifying, quantifying and controlling hazards and risks in the workplace. They are intended to ensure safe reliable operations and when utilized properly can help in reducing material, equipment, environmental and personal loss.  The EHS department chose the top Hazard ID reports and pooled them together then randomly selected 3. Let’s congratulate Tyler Vandale, Bob McKenzie and Matt Mitrega for helping do their part in Loss Prevention. All 3 employees will receive a gift card from their local Manager or EHS Department.

A few things we can focus on in the upcoming months are:

  • Continue to follow all standards defined by our Safety Management Systems and Processes
  • Report immediately any conditions or practices you think might cause injury to employees or damage to equipment.
  • Whenever you or the equipment you operate is involved in an incident, regardless how minor, report it immediately to you supervisor, manager and or EHS department.

What is COR anyway? In order to recognize employers who have developed a health and safety management system that meets established standards, a Certificate of Recognition (COR) is awarded. The Alberta government does not directly administer the COR audits or audit criteria.  Several Certifying Partners (ENFORM, ACSA) have been allowed to set program criteria, auditing standards, and complete the audit with Enform as the Certifying partner. Our Loss prevention programs are currently under review and will be rewritten to further enhance our processes as well as align us with the ongoing future requirements as defined by the Alberta Government.

Kristy McGale – EH&S Advisor, Grande Prairie, Alberta

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