Rig-n-Dig August 2013

1Rig-n-Dig • savannaenergy.com

August 2013

In This IssueQ2 ResultsIntroducing Jay CanizaroGoodbye Gordon WillsWhat’s Happening?

Savanna Australia’s Saied Khoshnevissan!

S

2 Rig-n-Dig • August 2013

Savanna Announces Ft. McKay Partnership

Savanna has extensive experience working in partnerships with First Nation communities throughout Alberta since 2002. Savanna has been widely recognized for their partnership approach, winning the prestigious Alberta Chamber of Commerce “Aboriginal Partnership Award” in 2005 and 2012, as well as the Premier’s Award of Distinction in 2010.

“Fort McKay is a very industrious and forward-thinking community with a history of building strong relationships in the energy industry,” said Ken Mullen, President and CEO of Savanna. “Their reputation and solid experience in the oil sands region combined with Savanna’s operational expertise, high quality equipment, and infrastructure to manage sophisticated equipment will position the Partnership for success in a desirable and growing market. With anticipated significant growth in slant, SAGD and coring drilling, and with the expected commensurate demand for completion, production and workover services and related rental opportunities, Savanna sees this partnership as a substantial potential growth opportunity for all our existing operating businesses”

SFort McKay is a Cree, Dene, and Métis community located approximately 60 kilometres north of Fort McMurray. Through the Fort McKay Group of Companies and a number of joint ventures, the Fort McKay First Nation provides a variety of services to the oil and gas industry and surrounding areas.

The FMFN believes the practice and preservation of our traditional ways of

life can occur simultaneously alongside continuous and responsible oil sands

development. This philosophy has allowed the FMFN to enhance our community's

social and economic conditions through effective partnerships with industry

and government. We are known for our good working relationships with the

surrounding oil sands companies. FMFN strives to balance resource development

with protecting the health of our community and the environment.

Image and text courtesy of www.fortmckay.com


Q2 Results

Q2 2013

Capital Expenditures

Outlook

$3 mil (from Q22012)

$23.3 mil (from Q22012) $15 mil

From Q2 2012

$28.3 mil revenue$43.8 mil revenue $40.2 milrevenue

Increases in Australia in Q2 2013 partially offset decreases in Canadian and U.S. revenue relative to Q2 2012. Due to lower customer spending, wet weather, and the usual spring decrease in activity, Canadian operating margins were down significantly from Q2 2012 levels. Down south, the US saw a minor drop in operating margins (< $1 million) but remained consistent despite soft industry demand overall.

In Australia, both revenue and operating margins increased considerably from Q2 2012 and appear poised to continue growing. In fact, based on customer demand, Savanna will be deploying an additional high-spec service rig to the Queensland market, and our performance to-date has secured this contract outside of the normal tender process. This means Savanna’s crews and equipment have done an exceptional job thus far, resulting in increasing demand for our services.

In addition to the new Australian workover rig, Savanna is also allocating incremental capital to “long-lead items for North American drilling” in the amount of $14.4 million. Long-lead items are items requiring time to manufacture or be delivered and therefore must be ordered in advance to address timing constraints for related tenders.

Canada remains dependent on activity levels, which have been trending in a positive direction into Q3, 2013. With a more marketable fleet than previous years, Savanna is set to capitalize on any industry up-tick.

In the United States, amid greater market uncertainty than usual, Savanna has several rigs that remain under contract for the next 18 months. With the addition of three transferred service rigs later in the year, and an excellent reputation for performance, US operations should remain steady in the event of any market fluctuations.

Australia continues to grow and perform. Trucking has established a niche in the market and long-term contracts have been signed for two additional rigs. Savanna remains optimistic that growth will continue in this region as the CSG market begins to fulfill delivery commitments.

“Australia is really starting to flex its muscles, especially on the drilling side where returns, on a per rig basis, are among the highest in the Company. After a fairly rough start, from a financial point of view, sustaining the current momentum will make Savanna’s adventure down under a real success story.” - Rick Torriero, Corporate Director, Accounting & Finance

800, 311 6th Avenue SWCalgary, Alberta T2P 3H2Phone: 403 503 9990Fax: 403 267 [email protected]

Savanna Energy Services Corp. is listedon the Toronto Stock Exchange (TSX:SVY)For current stock information,visit tsx.com or savannaenergy.com

Rig-n-DigAugust 2013

Rig-n-Dig is published by Savanna Energy Services Corp. as an information vehicle for our employees and for our community. Suggestions and contributions are welcome and encouraged.

Editor/Publisher/Managing Editor:John Bayko 403 781 [email protected]

In This IssueSavanna Ft.McKay Partnership page 2Q2, 2013 Summary page 3Meet Jay Canizaro page 4Savanna’s New Leduc Facility page 5Farewell Gordon Wills page 6What’s Happening? page 8Australia page 10The Last Page page 15


Introducing Jay Canizaro, US Sales and Marketing Manager

Jay comes to Savanna excited by an opportunity to get into the 1500 hp onshore drilling market, and plans on spreading the word about the company and its US sales team. “Savanna is very well known and liked with current customers, and a good reputation opens up opportunities,” he says. “But for the company to grow we need to increase our exposure in the US and let the marketplace know we are here, as well as provide longer reach horizontal rigs to stay in these markets.”

Regarding HSE, Jay is cognizant of its importance, especially when it comes to keeping Savanna’s employees safe, and working with the major US players. “HSE is a big part of what we do with any operator we work for. That’s the first thing they ask us about.” Equally important, however, are Savanna’s values, and Jay states in no uncertain terms, “we have to have integrity and be honest with customers so we can be the first out and the last in.”

In his spare time, Jay likes to spend as much time as possible with his wife and two boys. Cameron, 11, is currently playing his first year of tackle football, and Carter, 6, is following his dad’s footsteps on to the baseball diamond. When he’s not on the field or at the diamond, or at the beach with his wife, Jay enjoys developing relationships and friendships with customers who share his hobbies of golf, fishing, and hunting.

Originally from Orange, Texas, Jay has 11 years’ experience in oil and gas with Nabors offshore drilling business. Prior to his career at Nabors, Jay played professional baseball as a second baseman for both the San Francisco Giants and the Minnesota Twins.

“For the company to grow, we need to increase our

exposure in the US”Jay Canizaro According to Wikipedia, Jay’s best season in the majors was with the Minnesota

Twins in 2000, when he hit .269 as their starting second baseman.

Jay comes to Savanna with 11 years’ oil and gas experience.


Savanna’s New Canadian Facilities Get the Go Ahead

It’s time to get excited! Savanna is well underway in the development of two state-of-the-art manufacturing facilities in Leduc, Alberta.

Although

design is not

yet complete,

the end result

will be a

world class

facility.

The state-of-the-art facillities will be across the street from one another.

The process officially began back in February of 2013, when Savanna commissioned a Phase 1 Environmental Site Assessment (ESA) of two lots in Leduc comprising a total of approximately 38 acres. After the successful completion of the ESA, Savanna put down a sizable deposit on the land package, and several teams initiated the demanding process of designing two brand-spanking-new buildings for both Savanna Drilling, and Savanna Well Servicing. Supply Chain, Drilling and Well Servicing Operations, and Maintenance, Recruitment, TSG—just about everyone joined forces with Stantec to discuss all of the requirements for each space. “We didn’t just want a box. We wanted the building to suit the needs of the users and not the other way around,” explains Tim Lindsay, Savanna’s Corporate Director of Supply Chain. And because there are an incredible amount of variables associated with planning a development such as this—for example, Navigation Canada was called in to evaluate the site with relation to the flight paths from the Edmonton International Airport—the professionals at Stantec were called in. “The team at

Stantec is an amazing group to work with. They took the time to listen to all of Savanna’s requirements, and then applied their creativity and leading-edge skills in conceptualizing a modern and functional work space,” notes Troy Mattie, Savanna’s Supervisor, Supply Chain. While the project is still in the design phase, the end result will be a world class facility tailored to Savanna’s long-term business plans.

The two sites will be located a stone’s throw away from one another, and have been designed with Savanna’s vision of “defining leadership in global energy services” as a prominent consideration.

For now however, the lots are graded, the water infrastructure is in place, and road construction was set to start the week of August 19. “We’re shooting for March of 2015 to open,” says Lindsay. “It’s going to be pretty sweet.”

INSERT BUILDINGSHERE:


Happy Retirement, Gordon!

Farewell Gordon!

Gordon Wills, Savanna will miss you!Gordon made the decision to retire, and finished up with Savanna at the end of June. Gordon was employed first as the Operations Manager of the Odessa Drilling Division within Savanna USA. He started Operations for Savanna in the West Texas region, and was a critical factor in the overwhelming success of that division. Gordon stepped down as Operations Manager in November of 2012 and continued to be a vital part of the Organization on the Sales Team until his decision to retire. Dustin Brown, Operations Manager in Odessa, was quick to comment, “Gordon was wonderful to work with. He will be greatly missed at our Operation.” Further, Rick Rosa, Field Superintendent, said, “Gordon was a straight-up, stand-up guy. Based on my first interaction with Gordon, I knew that Savanna was the place I wanted to be.” Gordon has fabulous plans for retirement which include traveling the world and spending quality time with Betty, his wife. Please join us in congratulating Gordon on a successful career with Savanna and wishing him a happy, healthy retirement!

“Gordon was a straight-up, stand-up guy.

Based on my first interaction with

Gordon, I knew that Savanna

was the place I wanted to be.”

“In entering and building a new market,

local knowledge and experience are a necessity.

In Gordon we found someone

who had seen it all, and done it all in West Texas. He was a critical piece of our success,

and we are very thankful that he chose to contribute so much to our

people and operations in

that area.”

Rick Rosa

Ken Mullen

Top: Gordon and Dustin Brown. Bottom: Tom Morris and Dustin Brown present Gordon with his parting gift.


Check out Savanna’s e-store today! Availabale in

Australia, The United States, and Canada.


What’s Happening?

These are the photos from one of our safety Saturday BBQ’s. We do them every Saturday at crew change and have a big safety meeting with all Savanna personnel on tour to review safety concerns, comments, progress, outstanding items, and give out safety awards for the best Hazard ID or Observation card for the week.

Savanna Rig 409’s Safety Saturday!

Rig Manager Davin Jackle

That’s one good looking Rig!!

Davin Jackle

“”

Rig 409’s Crew

Back Row: Mick Ambrose ( Derrick hand night crew), Ryan Howe (Motor hand night

crew), Dave Bennett (Driller day crew), Tommy Te Ata ( Derrick hand day crew),

John De-Bressac (Fill in roughneck from 406), Jason Arthur (Savanna HSE Safety

Advisor), Jason Lamont ( Savanna Truck Driver), Steve Lawton (Driller Night crew),

Roy Pistorius ( Roughneck day crew), Davin Jackle ( Rig Manager)

Front Row:Jai Barrett (fill in Lease hand from 408), Scott Schaffer ( lease hand day

crew), Steve Capewell ( motor hand day crew), Col Ramshaw (Savanna mechanic)


What’s Happening?

We had not one, but TWO requests on Facebook this month to post a photo of the crew from Rig 650 out of the US!!

We don’t want to keep your fans wating, so without further ado...

L to R: Mark Watson, Mike Hemphill, Wayne Sandoval, Kevin Frunchak, Sasha Doubroff, John White, Dan Henn, Danny McEachern, Dan Mantz, Sean Strong, Brian Brock, Tim Rempel, Brandon Jones, Brennon Thoreson. Honorable absentees: Brian Gould, Tyler Steinkey, Alex Nicholas, Alex Woodruff, Kekoa Jacobs, Jasper Wheeler, Adam Wheeler

Andrew McCallum, from Australia’s Rig 407, was there to catch this excellent shot of an Aussie sunrise.

Those Saskatchewan Roughrider fans start young! The Canadian Footbal League team has a tradition of wearing watermelon helmets, and this youngster takes it to a whole new level!

By PopularDemand!

Rider Pride!GreatTiming


“Australiana”

Congratulations to all our staff who have completed their IWCF/IADC/Second Line and Certificates in Drilling

The didgeridoo is a wind instrument developed by Indigenous Australians of northern Australia around 1,500 years ago, and is still in widespread use today both in Australia and around the world. It is sometimes described as a natural wooden trumpet, or "drone pipe".

How to make your own Didgeridoo

What You Need:

• A length of PVC pipe (like the plumbers use). You can also use two cardboard wrapping paper tubes taped together. The length should be manageable. For adults, a didgeridoo is about 5 feet long. For children, 3 or 4 feet is great (depending on the height of the child).

• Paint or markers (if you use PVC pipe, you will need to use acrylic paint).

• Paintbrushes and water.

• Glue (white glue or hot glue).

• String, leather, feathers, beads and any other found objects you have lying about.

What You Do:

1. If you are using a PVC pipe, be sure to sand both ends of the pipe so there are no rough edges.

2. Once you have a length of pipe or cardboard tubing, you are ready to decorate. Using paint or markers, decorate the didgeridoo using bright, exciting colors.

3. You can glue all sorts of objects to your didgeridoo as long as you can still comfortably move it around.

4. Optional: If you wish, you can make a mouthpiece for your didgeridoo using beeswax. The way this is done is by dipping one end of your pipe or cardboard tube into melted wax, again and again until you build up an almost solid mass of wax with a small opening.

5. You can create a mouthpiece for your didgeridoo by rolling a piece of poster paper into a cone and gluing it to the end of your pipe or tube.

6. To play your didgeridoo, stand or sit with the instrument straight out in front of you, with one end resting on the ground. Place your mouth inside the tube (or on the beeswax mouthpiece) and make a loose motorboat sound with your lips.


Australia

Q: Where is home or where are you from originally?

A: I grew up on a farm outside a sleepy little town called Goomeri. Goomeri’s population is around 480 people. The town is well known for its annual Pumpkin Festival, held on the last Sunday in May each year it attracts up to 14,000 visitors to the town. My parents still live on the farm and I like to get home regularly to visit them.

Q: Any hobbies or interesting facts we should know about you?

My favourite things to do are shopping and going to the theatre with my friends. We try and organise a weekend away in Brisbane every six months or so. Apart from that, I spend my spare time with my husband and our two very spoilt dogs – Horse and Molly.

Q: How did you come to arrive at Savanna?

A: I had previously worked with quite a few people from the Savanna finance team. When Savanna was looking for a Payroll Assistant they mentioned it to me. I wanted a change from what I was currently doing so I came and found out more about the role and when I was offered the position, accepted.

Meet & Greet – Rebecca Stretton – Payroll Assistant

Q: What about the opportunity to work for Savanna appeals to you?

A: In my previous employment I worked for the manufacturing industry in tanneries. I was in this industry for 12 years, so when the opportunity to work for Savanna came up, I thought it would be interesting to be employed in a completely different industry that I knew nothing about.

I have enjoyed finding out about energy services during my time here.

Rebecca Stretton

Image:www.goomeripumpkinfestival.com.au

Source:www.goomeripumpkinfestival.com.au

During that 1990s Goomeri, like many other rural areas (in Australia), was in a time of prolonged drought and water shortages. Farmers and local businesses were doing it tough and morale was at an all time low.

A town meeting was held to discuss ideas for improving the town’s morale and lagging business economy. At the meeting, one of the ideas was to have a festival of some kind. As pumpkins had been traditionally grown in the area over a number of years, the idea of a Pumpkin Festival was born.

The inaugural Goomeri Pumpkin Festival was held on 1 June 1997 under the name Goomeri, Town of 1911, Pumpkin Festival.

The Goomeri Pumpkin Festival has continued to grow each year since 1997, to the extent where it has received state, national and international recognition. The Great Australian Pumpkin Roll™ has continued to grow and, in 2009, there were over 600 Pumpkin Rollers sending their pumpkins racing, splattering and hurtling down Policeman’s Hill. Policeman’s Hill (named so because the Police Station is at the bottom) has become a tourist attraction in its own right as people come to see where these pumpkins roll.


Australia

Rig 65 have currently been 479 days Lost Time Injury free and they are the only Rig, Savanna or otherwise working for Origin flying their Green flag because of it.

This is Saied Khoshnevissan from Rig 67, who recently went Sky Diving in his Savanna Coveralls!!

Thanks for sending in such a great photo Saied!!

Rig 65: One Year LTI Free!

And in Case You Were Wondering...

Congratulations to Rig 65 for receiving the 365 days free LTI award from Origin last month.


Savanna Photo Contest

Brett Moseling: Sydney Harbour Bridge

Adam Pearce: Summer Storm over Rig 603

Brent Stephens: Rig 629 Lightening

Tamara McCuaig: Untitled


Some things to consider:

• Fire alarms in working order with fresh batteries

• The need for Carbon Monoxide Detectors

• Do you have dangerous chemicals in or near your home properly stored?

• Is medication properly stored and out of reach from children?

• What’s your fire escape plan, and does your family know it? Have you practised the plan?

• 2nd storey safety – windows are both intriguing and hazardous for children

• Have you taught your children to respect the hazards of electricity?

• Fire pits and BBQ’s are DANGEROUS for children. Do you know the risks, and practice safety with these items?

Two fantastic websites to get the advice of the experts to learn, practice and teach our family to stay safe are: www.municipalaffairs.gov.ab.ca/ss and www.safety1st.ca/eng/Home-Safety-Tips

Savanna’s Benefit

Department

Home Should Be A Safe Place.

How do I get to the E-portal?

Contact our Benefits Administrators

Go to savannaenergy.com and scroll down to the bottom of the page.

Or type in: http://www.savannaenergy.com/default.asp?id=2

Check out two new articles on the employee portal: Arthritis: Making Good Lifestyle Choices, & Caring for Aging Parents

Each month, as we continue to bring you messages on practical solutions to achieve a healthy status, extra resources will be added to the Employee portal for your convenience.

We all would like to think that our home is our safe place for us & our children, but is it?

This month we encourage you to assess your home from an HSE perspective. During the summer, when we are typically busy with many activities and holidays, we may choose to put off doing some things aorund the house. And why not?? Everyone deserves a chance to take some time off to put the feet up!! However, please take a moment to ensure those things you may have scheduled for the fall or winter are not those that could put you and your family at risk.

Enter the username and password above to access health and wellness resources, forms, the Employee store and much more!

Group Benefits — Drilling & RRSPAdiel Rautenbach at 403-267-6779 or [email protected]

Group Benefits — Well Servicing, D&D Rentals, Corporate and Rotators Application for Short Term Disability, Long Term Disability or Life ClaimSylvia Sargeant at 403-214-5950 or [email protected]

Click on “Employee Portal”

savanna

safety7

S

Is Where the is!


The Last Page

101RIG TERMINOLOGY

1. Spain; France; Mexico; Republic; Confederacy; US 2. 186,000 miles per second3. 340.29 miles per second 4. Brazil 5. Wood Buffalo 6. Meryl Streep7. Superbowl I was in 1967. GB Packers 35, KC Chiefs 10

PIPE DOPE: Lubricant applied to pipe connections.

HORSEHEAD: Horsehead-shaped steel piece at the front of a pumping unit beam where the bridle is attached in sucker rod pumping.

ELEVATORS: Handles that grasp drill pipe so that it can be raised or lowered.

Is Where the is!

A roughneck walks into a hardware store.

The attendant asks what he needs and he replies “a wrench”.

When asked what type of wrench, the roughneck replies: "it don't make no difference I'm going to use it for a hammer anyway.”

A man was told by his doctor he has only one year to live.

The man asked, "Doc, what can I do?"

"Buy a drilling rig," the doctor answered.

"Will that give me more than a year to live?" the man asked.

"No," replied the doctor, "but it will make the year feel longer."

Name the flags of the six flags over Texas.

What is the speed of light?

What is the speed of sound?

Which country is larger, Australia or Brazil?

What is the largest National Park in Alberta?

What actor has the most Oscar nominations?

What team won the first Superbowl and in what year?

Bad Joke

Even Worse... Trivia

The average Canadian will spend

their last ten years in sickness.

Change your future now.

How will you spend your last 10 years?

Rig-n-Dig August 2013

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