WTI OIL: US$97.50+$1.57

September deliveryNYMEX: N Gas: US$4.53

+$0.013 per MMBTUAugust delivery

Published By NEWS COMMUNICATIONS since 1977 Canadian Edition Wednesday July 20, 2011

NORTH AMERICAN RIG COUNTThe U.S. rotary rig count was up 18 at 1,905 for the week of July 15, 2011. It is 334 rigs (21.3%) higher than last year. The number of rotary rigs drilling for oil increased 6 to 1,013. There are 433 more rigs targeting oil than last year. Rigs drilling for oil represent 53.2% percent of all drilling activity. Rigs directed toward natural gas were up 12 at 885. The number of rigs currently drilling for gas is 94 lower than last year's level of 979. Year-over-year oil exploration in the U.S. is up 74.7 percent. Gas exploration is down 9.6 percent. The weekly average of crude oil spot prices is 26.3 percent higher than last year and natural gas spot prices are 1.4 percent lower. Canadian rig activity is up 63 at 394 for the week of July 15, 2011 and is 29 (7.9%) higher than last year's rig count.

ALBERTA CALLS FOR ANOTHER

ROUND OF APPLICATIONS The Government of Alberta is funding six innovative energy projects through the ground-break ing Innovat ive Energy Technologies Program (IETP) as part of its commitment to establish the province as a world-class centre for responsible energy development. “Alberta is a leader in advancing state-of-the-art technologies to unlock our energy reserves in a responsible manner,” says Energy Minister Ron Liepert. “These investments are key to our commitment to support a strong and vibrant energy sector.” The successful projects were submitted by Cenovus Energy, EnCana Corporation, Laracina Energy, Pengrowth Corporation, and PennWest Petroleum. The projects address a variety of research interests such as advancing production technologies to produce bitumen in reservoirs that are not yet commercial, better understanding of coalbed methane production, and expansion of new enhanced oil and gas recovery technologies into previously inaccessible oil and gas deposits. The six projects will receive royalty adjustments totaling up to $27.5 million under the fourth and fifth rounds of the IETP. This is in addition to the $134.3 million already allocated to 31 previously approved projects. For project descriptions visit www.energy.alberta.ca/Oil/docs/IETP4and5.pdf. With the successful completion of rounds four and five, the IETP is now open for another round of applications (Round Six). Applications will be accepted until September 30 with the expectation that successful applicants will be notified by the end of the year. For further details, including a p p l i c a t i o n f o r m s v i s i t : www.energy.alberta.ca/Oil/768.asp.

CAPP SUPPORTS NATIONAL ENERGY STRATEGY

A Canada's upstream oil and gas industry strongly supports efforts to develop a Canadian energy strategy. Such a strategy would enable us, as a country, to develop policies and take actions aligned with a collective vision of our energy future. The just concluded Energy and Mines Ministers' Conference, which focused thematically on "Framing the Future of Energy and Mines", is a positive step in advancing a Canadian energy strategy over the period leading up to

would recognize fiscal and regulatory competitiveness as key factors in facilitating growth in energy production. It would emphasize the role of technology and innovation to improve environmental performance and cost competitiveness across the full spectrum of supply and use. And it would view hydrocarbon production with lower carbon intensity as a key requirement for Canada's future prosperity. The strategy would also drive concerted action on energy conservation and efficiency across the economy, recognizing that energy consumers play a key role in addressing greenhouse gas emissions. "Responsible environmental performance, including reductions in greenhouse gas emissions, is an important element in the energy strategy, but it should not be the overriding driver,"

use of energy, benefitting all Canadians and contr ibuting posit ively to Canada's international reputation and responsibilities. CAPP recommends a strategy driven by prosperity arising from growth in both increasingly sustainable hydrocarbon production and renewable energy, along with concurrent shifts in energy demand arising largely from energy eff iciency and conservation. Governments have an important role to play in developing and implementing public policy to realize an effective Canadian energy strategy. The strategy must, however, be grounded in a fundamental view that market forces are the key determinant in decisions on energy supply, transportation and use, both domestically and in Canada's trading relationships. A Canadian energy strategy

their next meeting in Prince Edward Island in 2012. "Canadian energy is fundamental to our economy and jobs - it is the key to continental energy security and it is essential to our quality of life," said Dave Collyer, president, Canadian Association of Petroleum Producers. "It only seems reasonable we should develop a collective view of our energy system and a strategy to realize our full energy potential." Public awareness of the crucial role energy is playing in the Canadian, North American and global context is increasing. And there is a broad consensus that Canada needs a coherent public-policy framework that establishes a longer-term direction on energy. CAPP's proposed Canadian energy vision is as follows: Canada is a global leader in responsible, sustainable development and

ilfield NEWSoilfieldnews.ca www.markmilne.com

Call or email Lou Pesta to arrange a private viewing at403-863-7510 or lpesta@wwclawyers.com

FOR SALE BEARSPAWEXECUTIVE HOME

two fully treed and privates acres with two ponds and tons of wildlife close to the cityunique open floor plan features a great room with two storey tall cathedral sized windows and library loft.

huge deck off living room and kitchen ideal for entertainingthree fireplaces, hardwood floors and other extraspaved driveway with lots of parking for guests.

NOW ONLY $898,800

GOLFVIEW MOBILE ACRES

KINDERSLEY(306) 463-3839

WIFI, 4 SEASON, FULL HOOKUP

RV PARK

PUMPSVALVESFITTINGS

780 432 69574216 - 76 Avenue, Edmonton, AB T6B 2H8

"Specialists in Chemical Injection Pumps"

SALES & SERVICE INC.A Division of of Unified Valve Ltd.

www.unifiedvalve.com

NOEL'S INSPECTION AND CONSULTING SERVICE LTD.

Serving Alberta's Oil & Gas Industryfor over 25 Years

St. Paul, Alberta (780) 715-4959

PipelinesAccess Roads

Right of WaysWellsite Leases

You`ve had a hard dayNow rest easy

Full Service Facilities...At their Finest

Tel: (780) 349-4483Fax: (780) 349-6503Res: 1-888-768-9959

10411 - 100 StreetWestlock, AB T7P 2G7www.westlockinn.com

Double BB Glass Ltd.Specializing in All

Glass Services

780 349-4483ALCOMDALE, ALBERTA

SERVICE COMPANYLooking for

for Flush-By.

Competitive wages & benefits.Must have class 3 or 1 licence

Fax 403-314-0616

OPERATORS& ROUGHNECKS

1-800-798-7176

Replacement ExpertsDiamond Shippers

WHOLESALE DIAMOND

RENT TO OWN

Edmonton1& 2 Bedroom Condominiums

2 & 3 Bedroom Houses447 - R E N T7 3 6 8

bbl/d Algar bitumen production operation at Great Divide in Alberta's oil sands. Initial target solvent injection rates were achieved within approximately three hours of startup on July 16, 2011. This pilot project is designed to measure the increase in bitumen production due to the downhole reduction of bitumen viscosity, through the interaction of the solvent and bitumen at the steam oil interface and the amount of solvent recovered after it is injected. Connacher anticipates there will be a measurable improvement in individual well and overall steam:oil ratios as a consequence of the solvent injection. In turn, this is anticipated to be further improved as a result of anticipated increases in individual well productivity and overall Algar production levels. If the field trial project proves to be as successful as Connacher's initial laboratory and simulation results, solvent injection may be expanded to all seven wells on Pad 203 by year end 2011. Further applications to the two other Algar well pads and possibly also to Pod One would then be under consideration for 2012. Connacher is excited about the potential of SAGD+™. It represents another technical innovation being applied to bitumen recovery initiatives at our Great Divide oil

repaired by fall freeze-up," he said. "I do not anticipate the cleanup will take that long." The pipeline will also have to be dug up to allow for an investigation into why it failed, DeRuyter said. Lisburne, managed as part of the Greater Prudhoe Bay Unit, has produced no oil since June 18, according to Alaska Oil and Gas Conservation Commission records, suggesting maintenance work requiring a prolonged shutdown. Dawn Patience, BP Alaska spokeswoman, said there is not yet an estimated time for the Lisburne field to be back in production. In 2009, a crack in a flow line that serves Lisburne spilled around 46,000 gallons of a mixture of oil and water on to the snowy tundra. BP in May agreed to pay a $25 million civil penalty and spend $60 million on enhanced safety measures, to settle a federal probe of a pipeline oil spill on Alaska's North Slope in 2006.

CONNACHER INITIATESSAGD+™ AT GREAT DIVIDE

Connacher Oil and Gas Limited has announced that it has initiated the injection of solvent with steam on wells 203-2 and 203-3 on Algar Pad 203, two of seven horizontal steam-assisted gravity drainage well pairs on one of three wellpads at the company's

Collyer said. "A robust energy strategy must concurrently advance economic growth, environmental performance, and energy security and reliabil ity - the 3Es." Diversification of markets and supporting infrastructure development must be key elements of the Canadian energy strategy - for all forms of energy production and for energy technology and services. A Canadian energy strategy comprised of these key elements would build on Canada's current strengths, keep options open for the future, and focus on the many areas of cross-sectoral and cross-jurisdictional alignment. "Developing a Canadian energy strategy should be an inclusive process with broad participation, rather than a top-down process," Collyer said. "It should involve the full energy value-chain, from producers to consumers, as well as parties with direct interest in the energy system."

BP PIPELINE LEAK UPDATEBP has reported another pipeline leak at its Alaskan oilfields, frustrating the oil company's attempts to rebuild its reputation after last year's disastrous Gulf of Mexico oil spill. BP said on Monday that a pipeline at its 30,000 barrel-per-day Lisburne field,

currently closed for maintenance, had ruptured during testing and spilled a mixture of methanol and oily water onto the tundra. The Alaska Department of Environmental Conservation said the spill occurred on Saturday and amounted to 2,100 to 4,200 gallons, affecting 4,960 square feet of gravel pad and about 2,040 square feet of wet and aquatic tundra. Production from the entire Lisburne field remains shut off while the spill is addressed, Alaska officials said. A BP spokesman said the cleanup was under way and the company would determine the cause "in due course." The federal Pipeline and Hazardous Materials Safety Administration, which oversees most U.S. pipelines, said late on Monday that it does not have jurisdiction over the BP pipeline. However, the federal government may still have a role in the accident through the Environmental Protection Agency because the pipeline spilled fluids into wetlands. Immediate efforts are focused on containment and cleanup, said Tom DeRuyter, state on-scene coordinator for the Department of Environmental Conservation. Cleanup must be completed before the pipe section is excavated, he added. "BP has got a goal to have the investigation completed and the line

WE NEED QUALIFIED PROFESSIONALTEAM PLAYERS

OUR TEAM REQUIRES IMMEDIATELYTHE FOLLOWING CONTRACT PERSONS:

WE NEED EARTHWORK CIVIL SUPERVISORS.If you are a Civil, Dirt, Road or Lease Construction Supervisor,

You Need to:

SUBMIT YOUR RESUME TOFAX: 403-770-8570

E-MAIL: SAGD-resumes@shaw.ca

Our Staff are aware of this advertisement

Project ManagersField Engineers and CET's All DisciplinesContract, Accounting, Admin, Support StaffSchedulers, Document ControlQAQC Supervisors & Inspectors All DisciplinesConstruction Supervisors & Inspectors All DisciplinesMaster Electricians, Civil Supervisors, Civil CET'sEnvironmental Managers and InspectorsShop Inspectors All Disciplines

THREAD/CONNECTION SUPERVISOR

Hunting Energy is currently looking for a dynamic individual to fill the position of

Candidate must work well with people, have good communication skills, can multi-task in a fast pace environment. 24 hr - 7 day/week. Previous experience with tongs, thread inspection, and thread supervision.

Hunting offers competitive salary, plus day rate, and benefits package.

FAX: 780-955-8764HESCL.job.applications@hunting-intl.com

HUNTING ENERGY SERVICES (PIPE DIVISION) LTD.

We have great career advancement opportunities!

Immediate Positions Available:

Fax resumes and Driver's Abstract to 780-724-4024 or email to

coralk@e-can-oilfield.com

Provincially regulated (including hours of service)

Flush By Operators

Tri Vac Operators

Body Vac Operators

Pressure Truck Operators

Dispatcher (local area)

Fluid Truck Sub Contractors

Fluid Truck Operators

* Overtime after 9 hours *Full Benefits Package * Flexible Shifts

5 YR DRIVER'S ABSTRACT REQUIRED BEFORE HIRE

Box 510, Elk Point, AB, T0A 1A0

OILFIELD SERVICES LP

BUY YOUR TROPICAL PARADISE!64-Acre White Sandy Beach Tropical Paradise

Roatan, Bay Islands, Honduras Rated #1 Islands Mag."Best Place to Retire".

Only large property on north-shore with its own deep water bay. Perfect for a private estate or world class resort. 90% roads in, power & water. Avg temps 75 to 85 year round. 2+hrs from Miami, Houston, New Orleans, 7-major cities fly direct Calgary, Toronto, 5-min from the Black Pearl-Pete Dye Golf Course, Duty Free Island, Pro-Business government. Our Loss is Your Gain. Bank Appraisal $ 6,425,965 Asking price $ 4,750,000

Contact: US 971-340-8676 milagrobay@gmail.com

Phase 1 of the Breagh development comprises a platform on the western side of the field from which 10 wells will be drilled, a 100 kilometer 20 inch gas export pipeline to Teesside together with an associated smaller pipeline and cable, and an onshore pipeline and modifications to the Teesside Gas Processing Plant. Work on this phase of the development continues to progress well. Fabrication of the topsides is 90 percent complete and commissioning is expected to begin next week. The jacket is 77 percent complete and expected to be fully complete by the end of this month. Sail-out and installation is expected during early September 2011. The Company previously reported that the 3 inch methanol line and 20 inch export gas line have been laid away to the platform location and the beach crossing for both lines has been made. Over the remainder of July, the Company expects to connect the beach crossing lines to the offshore lines, thereby completing the pipeline from the platform location. Onshore pipeline operations are expected to commence in early August. It is planned to achieve peak full field 2P production for Phase 1 in 2015 at 167 million cubic feet of sales gas per day (MMcf/d) (100 percent) as estimated by the Company's independent reserves evaluator RPS Energy. Phase 2 of the Breagh development is currently under consideration and could comprise a second platform with further wells on the eastern side of the field, tied back to the first platform, or possibly a sub-sea development. Assuming this goes ahead, incremental production from Phase 2 would be expected to commence in 2013 and peak full field 2P sales gas production would be expected in 2016 at 186 MMcf/d (100 percent), as estimated by RPS Energy.

arrival of our contracted drilling rigs, we will be spudding our first new wells at Twining and Penhold, likely during the week of July 18, 2011. Field operations in central Alberta have been curtailed and affected by extremely wet weather conditions since breakup, as has been reported by all operators. Our production from Twining has also been temporarily constrained by the capacity of available facilities. Nevertheless, we are producing over 1,000 boe/d of conventional production, well above levels following the successful sale of our properties at Battrum, Saskatchewan and Marten/Randall, Alberta.

STERLING NORTH SEA UPDATECalgary's Sterling Resources Ltd. has announced announce that it has signed a loan facility agreement with a group of banks for a GBP 105 million senior secured loan for the Phase 1 development by its wholly-owned subsidiary, Sterling Resources (UK) Ltd, of the Breagh gas field in the UK Southern North Sea (Sterling 30 percent). The loan amount provided under the Facility comprises a main tranche of GBP 95 million and a cost-overrun tranche of GBP 10 million, and the loan has a life of 6.5 years. The Facility also has a step-up amount of up to GBP 50 million for the Phase 2 development on an uncommitted basis. The Facility has been arranged with Société Générale Corporate & Investment Banking (acting as Sole Bookrunner, Mandated Lead Arranger and Technical Bank), BNP-Paribas (acting as Mandated Lead Arranger and Facility Agent) and Commonwealth Bank of Australia (acting as Mandated Lead Arranger). The Company is now awaiting final approval of the Field Development Program by the UK Department of Energy and Climate Change.

sands operations in northeastern Alberta. Our oil sands projects are the company's most significant assets, including 180 million barrels of proved reserves and over 500 million barrels of proved and probable reserves, as estimated by GLJ Petroleum Consultants Ltd., independent petroleum consultants, in their report dated February 18, 2011 and effective December 31, 2010. Connacher has already built and operates two SAGD projects at Great Divide, namely Pod One and Algar. We have already produced approximately 10 million barrels of bitumen. Backed by our proved, probable and possible reserves totalling 604 million barrels, including 104 million barrels of possible reserves, GLJ estimated we have the prospect of sequentially developing over 70,000 bbl/d of productive capacity from these Great Divide reserves. Access to this excel lent p ipel ine of development opportunities has a high level of immediacy, as we have already submitted an application to regulators to secure authorization to expand our productive capacity at Algar by 24,000 bbl/d. We expect this application will secure approval before year end 2011. In addition, the company also owned 221 million barrels of best estimate contingent resources and 80 million barrels of best estimate prospective resources as at year end 2010 (as again estimated by GLJ) and anticipates its winter 2011 core hole drilling and 3D seismic programs at Great Divide and at Thornbury, situated southwest of Great Divide, could contribute to new contingent resource recognition when the company completes its year end 2011 reserve report. This, in turn, could further enhance future growth possibilities if these resources are upgraded over time to reserve status. Development of this productive potential may

also be accelerated upon completion of a joint venture later in 2011, as there are few similar near-term production opportunities from defined 2P reserves available to third parties in the oil sands, as most joint ventures have emphas ized ear ly s tage resource opportunities. Development of growing, reliable bitumen production at Great Divide is the foundation of Connacher's five point strategy leading to value recognition. We believe our SAGD+™ project will accelerate the realization of this goal. We have already completed the streamlining of our balance sheet with our successful refinancing of our long-term debt. This transaction lowered our cost of capital and with no financial maintenance covenants and no principal repayments until maturities in 2018 and 2019, our funds from operations, supplemented by third party funds through farm outs and joint ventures, will be available to fund growth activities in the oil sands and in our prospective conventional resource plays at Twining and Penhold, both in central Alberta. Our asset rationalization program is also well-advanced and we continue to high-grade our asset base and monetize non-cash generating assets to maintain a high level of liquidity. We are committed to the strategy we have enunciated, with a view to completing component parts in a systematic and effective manner. In this regard, we are well advanced and remain optimistic about our outlook, despite challenging market conditions for heavy oil, exacerbated by the large Brent/WTI differential, the prevailing heavy oil differential, the strong Canadian dollar, general cost pressures in the oil business arising from strong demand for services, especially in the unconventional resource space and the usual challenges of producing bitumen. Weather permitting and upon the

7320 30 Street S.E., Calgary, Alberta T2C 1W2

Phone: (403) 279-(403) 279-6615 Fax: (403) 236-4249 Toll free: (800) 708-7453 CompassBending.com

Better than anyone else!

This is what we do.

Experience, Quality & Service.

7320 30 Street S.E., Calgary, Alberta T2C 1W2

1-877-467-5149780-467-5149

170 Valley Point South, 22555 TWP RD 530, Sherwood Park, AB T8A 4T7

Visit our website for more information www.horizoncanada.net

MOBILE TREATMENT CENTERQuality emergency care and off-road transportation Slides into any full-size pickup truck CMVSS & Transport Canada CompliantReinforced fiberglass constructionTwo-patient capacityInsulated & heated

Available for all full or mid-size trucks4.5 – 6 ft interior heightShort or long box Many options availableCustomize to individual requirementsDurable marine grade construction

UTILITY & ADVENTURE

Mobile cold storageA/C or heater availableCompletely insulated (R12) Large payload capacityDurable constructionFits all full-size pick-up trucks

CLIMATE CONTROL

Authorized dealer for:

www.tufport.comB Y H O R I Z O N

starting at $199,900

Sub-Contractors needed for the Edam area

What we offer...

Assigned Trailers - each Truck is assigned a trailer, no constant switching outPayment we pay you twice a month via direct depositSafety Courses - we provide all the training you'll need to upholdthe highest safety standardsScheduled days offBuying power - use Corporate discount buying power to purchasefuel, tires, and moreWell Maintained Trailers - our shop will do the trailer maintenance for you on a timely basis

Human ResourcesFax: 780-875-5825E-mail: astishenko@heavycrudehauling.comNo phone calls please.Only selected applicants will be contacted for an interview.

Interested and qualified applicants should forward resumes to:

Qualifications:

Class 1 LicenseClean Drivers AbstractTruck must be equipped with fluid pump and positive air shut down

For Subscriptions or Ad Information call 1-800-503-4563

Founded in 1957, Broda Group of Companies is a growing Saskatchewan based Mining and Heavy Construction Company, with an operating equipment fleet of over 400 units and growing. Broda specializes in contract mining, infrastructure development involving heavy and civil construction and aggregate processing.

Wages are competitive with industry standards complete with health benefit package, group RRSP contributions and work scheduling to balance quality of life.

Candidates duties will include:Safely and productively operate equipment in a team environment.Complete daily equipment checks and general housekeeping of equipment.

Ability to speak, read, write and understand the primary language used in the workplace.Past experience in the operation of the equipment and the ability to understand construction stakes.Ability to complete preventative maintenance checklistsAbility to maintain focus on the on tasks at hand.Ability to act upon observations and relate appropriate Company policies and procedures to situation.Ability to work affectively and efficiently both independently and in a team environment.Ability and flexibility to work varied shifts, including weekends.

HEAVY EQUIPMENT OPERATORSBroda Group of Companies is currently seeking

to work in a fast paced, safety conscientious, energeticwork environment with a strong emphasis on team work.

We are poised for growth and need your talent and expertise. If you areinterested in this exciting opportunity, please apply in confidence

via fax (306) 763-5788 or e-mail to sherry.nard@sasktel.net

FOR OUR CALGARY RUNWAY DEVELOPMENT PROGRAM

Requirements: