How wet is it in Saskatchewan?
It’s so wet that Crescent Point Energy Corp. has had 8,000 barrels of
oil equivalent shut in for the second quarter and expects that 1,500
boe/d will remain shut in until 2012.
President and chief executive Scott Saxberg said describing the weather as “wet” doesn’t begin to cover it.
“We describe it as a flooding. It’s not so much the wet weather and
the rains, it’s the floods that created the disruption for us in the
quarter,” he said.
“We saw that a year ago. Last year there was so much rain and bad
weather so we knew the groundwater table was really high going into Q2
so we budgeted and prepared for it as much as we could. And it was a
disaster out there … our field staff out there did a tremendous job. A
few families had their houses flooded out completely and they battled
“There’s lakes out there. It’s been hot and a lot of the water has
evaporated and the flood waters are slowly subsiding and draining into
the rivers but we feel it could be a full year before it really drains,
depending on the future weather. There’s still a concern that if it
rains hard as it did in September-October last year, we could have
difficult conditions later this year.”
Some of the oil is trucked from single well batteries and
inaccessible if the roads are washed out but the flooding has disrupted
wells that are tied in too.
“Even wells that are tied in flooded because the water was higher
than the pumpjack motors. Even though they were tied in so you didn’t
have to truck it, you couldn’t produce it.”
Alta. -- Provident Energy has taken ownership of two-thirds of oilfield
hauling fleet Three Star Trucking in a deal worth about $20 million.
Star Trucking is based in Alida, Sask. and operates in Saskatchewan,
Manitoba and North Dakota hauling crude oil and other oilfield-related
"The acquisition of this two-thirds interest in Three
Star expands Provident's logistics footprint in the Bakken area, one of
the most exciting resource plays in North America, and creates a strong
partnership with a highly regarded and growing player in the industry,"
announced Doug Haughey, president and CEO of Provident Energy.
Star Trucking operates 170 tractors and 160 trailers. Provident said
the acquisition will also allow it to expand its NGL and diluent
logistics services businesses.
The deal is expected to close on
or before Oct. 1, and Provident has the option of buying the remainder
of the company after three years.
CALGARY, ALBERTA, Jul 11, 2011 (MARKETWIRE via COMTEX) --
All values are in Canadian dollars.
Provident Energy Ltd. ("Provident")
to announce that it has reached an agreement to purchase a two-thirds
interest in the equity of Three Star Trucking Ltd. ("Three Star"), a
Saskatchewan based oilfield hauling company serving Bakken-area crude
"The acquisition of this two-thirds interest in Three Star expands
Provident's logistics footprint in the Bakken-area, one of the most
exciting resource plays in North America, and creates a strong
partnership with a highly regarded and growing player in the
industry" said President and Chief Executive Officer, Doug Haughey.
Three Star is a privately held enterprise based in Alida,
Saskatchewan operating in Saskatchewan, Manitoba and North Dakota,
providing fee-for-service hauling of crude oil and related oilfield
liquids for major Bakken area producers. Three Star has a new and
well maintained fleet of approximately 170 tractors and 160 trailers.
In addition to building a strong presence in crude oil hauling, the
transaction will also provide Provident the opportunity to further
expand its NGL and diluent logistics service businesses.
The transaction is valued at approximately $20 million, comprised of
approximately $8 million in cash, 945,000 Provident shares and
approximately $4 million of assumed bank debt and working capital.
Provident will retain the option to purchase the remaining minority
interest in Three Star after three years from the closing date,
anticipated on or before October 1, 2011. This acquisition will be
immediately accretive to both cash flow and earnings on a per share
This news release contains certain forward-looking statements
concerning Provident, as well as other expectations, plans, goals,
objectives, information or statements about future events,
conditions, results of operations or performance that may constitute
"forward-looking statements" or "forward-looking information" under
applicable securities legislation. Such statements or information
involve substantial known and unknown risks and uncertainties,
certain of which are beyond Provident's control, including the impact
of general economic conditions in Canada and the United States,
industry conditions, changes in laws and regulations including the
adoption of new environmental laws and regulations and changes in how
they are interpreted and enforced, increased competition, the lack of
availability of qualified personnel or management, pipeline design
and construction, fluctuations in commodity prices, foreign exchange
or interest rates, stock market volatility and obtaining required
approvals of regulatory authorities.
Such forward-looking statements or information are based on a number
of assumptions which may prove to be incorrect. In addition to other
assumptions identified in this news release, assumptions have been
made regarding, among other things, commodity prices, operating
conditions, capital and other expenditures, and project development
Although Provident believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue
reliance should not be placed on forward-looking statements because
Provident can give no assurance that such expectations will prove to
be correct. Forward-looking statements or information are based on
current expectations, estimates and projections that involve a number
of risks and uncertainties which could cause actual results to differ
materially from those anticipated by Provident and described in the
forward-looking statements or information.
The forward-looking statements or information contained in this news
release are made as of the date hereof and Provident undertakes no
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise unless so required by applicable
securities laws. The forward-looking statements or information
contained in this news release are expressly qualified by this
Palko Environmental Ltd. ("Palko" or "the Company")
pleased to announce that it has received regulatory approval and will
commence construction of a new oilfield waste handling facility in
the Stoughton/Viewfield area of Saskatchewan. Along with Palko's
recently announced new Oungre facility, operations are expected to
begin in the latter part of 2011.
"With estimates of total oil in place starting at 4 billion barrels
of high netback oil, the Stoughton/Viewfield Bakken is the second
largest conventional light oil pool in Canada. We are pleased to
provide our Bakken customers with superior oilfield waste handling,
recovery and disposal through the Stoughton spoke of Palko's
southeast Saskatchewan network of four facilities" said Steven
Peterson, Palko's President.
Palko obtained a wellbore next to the Stoughton facility and will
recomplete the well for disposal. The facility will accept upstream
oilfield waste fluids and treat produced oil emulsions. The facility
is adjacent to a provincial highway and Enbridge's crude oil pipeline
network. Future expansion possibilities for the site include solid
waste management, water recycling and pipeline connected
terminalling. Funding for the Stoughton facility will be attained
from 2011 operating cash flows and availability on credit facilities.
Palko is also pleased to announce that it has renewed and increased
its available credit facilities from $21.6-million to $23.5-million.
The credit facilities consist of: a $3-million operating facility due
on demand; and a $20.5-million committed 364-day extendible revolving
credit facility. If not extended for a further 364 days on May 31,
2012 the extendable revolving facility will be repayable in 24 equal
monthly payments and fully repaid by May 31, 2014. 2011 anticipated
cash flow in combination with the increased credit facility should
provide ample liquidity to fund current year operating and capital
Farms aren't the only businesses in the province suffering from the
worst spring flooding in recent memory, especially in the southeastern
part of the province where agriculture has taken second place to oil
The Bakken oil field in the Estevan-Weyburn area has become the toast
of North America's oil industry, employing thousands of people.
Flooding there has delayed work by months as drilling sites remain
submerged, forcing companies to shut down production and lay off
Muddy, washed out roads have added another layer of difficulty,
making it impossible for crews to reach some rigs, industry spokesmen
say, leading to worries about leaks and other maintenance problems.
Andy Schroeder, who runs A&S Oilfield Operating Ltd. in Estevan,
says the situation facing oil patch operators couldn't be worse.
Exploration and drilling is down about 15 per cent, Schroeder told CBC Radio's Blue Sky
program last week, thanks to a perfect storm of flooding and road bans
instituted by many rural municipalities on anything much bigger than a
half-tonne pickup truck.
The terrible situation on the ground means there is little the companies can do.
"The ground is so saturated in this area you can't ... do anything
out on the land without sinking out of sight," Schroeder said, adding
that any temporary measures to ease the situation would be throwing good
money after bad.
The companies can only wait until the water recedes, he said, adding
that even if the rain stopped immediately, it would likely take until
September for full production to resume. Even that might be optimistic,
he said. Full resumption might not return until the winter freeze.
And that means layoffs not only in the immediate industry, he said,
but also in supporting businesses, including firms that service the rigs
and trucking outfits that supply them.
The job losses will even extend to farmers, many of whom have turned
to oilpatch jobs as a means to keep the family farm solvent, Schroeder
said: Firms would be unlikely to hire them while they still have staff
waiting to go back to work.
Palko Environmental Ltd. ("Palko" or "the Company")
(TSX:PLK) announces that it has received final regulatory approval and
will commence construction of a new waste handling facility in the
Oungre/Hoffer area of Saskatchewan. Palko expects operations to begin
before the end of 2011.
"We are excited to announce the addition
of the Oungre/Hoffer facility. This addition demonstrates Palko's
commitment to servicing our expanding customer base in southern
Saskatchewan and expanding Palko's network of Oilfield services," said
Steven Peterson, Palko's President. The new facility will service the
emerging multi-zone Mississippian play in the area, existing Bakken and
Weyburn production in south Saskatchewan, and industrial customers
generating hydrocarbon impacted wastes.
Palko previously obtained
wellbores in this area and will now recomplete one waste disposal well
while maintaining the others for future development. The Oungre facility
will be approved to accept upstream and downstream oilfield wastes,
hydrocarbon impacted industrial waste fluids, and treat produced oil
emulsions. The facility is adjacent to a provincial highway, within
pipeline distance to Enbridge's crude oil pipeline network, and located
close to North Dakota's substantial Bakken production. Future expansion
possibilities include solid waste management and pipeline connected
In conjunction, Palko is pleased to announce that
the company has increased its board approved capital budget for 2011
from $1.7M to $8.3M. According to Mr. Peterson, "This increase allows us
to take advantage of opportunities in south Saskatchewan and capitalize
on the ongoing recovery in oil and gas exploration in Western Canada".
The revised capital budget includes Palko's Oungre facility, another
previously announced planned facility servicing Bakken production, and
service expansions in Alberta. Funding for the revised capital budget
will come from operating cash flow and availability on our existing
Page 3 of 26