Private equity: Oil and finance are forever intertwined

chivalrousslateOil and Offshore

Nov 8, 2013 (3 years and 11 months ago)

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The Cajundome and Convention Center, Lafayette, Louisiana USA | LAGCOE.com
2013 Louisiana Gulf Coast Oil Exposition
Show Daily Newspaper Published by
Fueling Global Energy Solutions
www.knightoiltools.com
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People Make
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Visit us in booth EH70
Day Two
Wednesday | October 23, 2013
Richard Green, deputy director of Energy Solutions
at DNV Maritime and Oil and Gas, brought LAGCOE
attendees up to speed on DNV’s new recommended
practice for shale gas risk management yesterday morn-
ing. DNV intends for the code (DNV-RP-U301) to
serve as a foundation for a set of global standards for
safe, sustainable shale gas extraction.
DNV has supported the entire natural gas chain since
the late 1960s, and plays an expert role in the oil and gas
industry. The company’s standards are well-regarded, a
truth reflected by the fact that 65% of the world’s off-
shore pipelines are installed according to the company’s
pipeline standards, which were, themselves, derived
from one of DNV’s recommended practices.
DNV established its shale gas recommended practice
to establish uniform guidance and recommendations for
the process required to ensure the safety of people and
the environment during all phases of shale gas field de-
velopment and operations. Although the recommended
practice originated in Europe, it is designed to be appli-
cable in other parts of the world, such as North America,
the world’s premier developer of shale gas resources.
Green started out by defining risk, pointing out that
a consideration of risk requires the assessment of both
probability and consequence. Green, who joined DNV
in 1995, also pointed out that the most significant risks
to shale gas development can be non-technical, and
often revolve around issues related to public welfare.
“Generally the main technical issues of drilling and frac-
turing are well understood,” said Green, “but in nearly
all locations where shale gas developments exist, there
can be, what I call, non-technical concerns.” He listed
some of the factors that could impede the development
of shale gas, including issues such as regulatory bans on
hydraulic fracturing, cost of accessibility, supplier short-
ages, limited infrastructure, permitting and water rights.
Private equity: Oil and finance are forever intertwined
Billy Thinnes
The oil and finance industries have
been forever intertwined, and will con-
tinue to be so, according to a Tuesday
morning technical presentation. Scott
Sanderson, from Farlie, Turner & Co., led
the discussion, and his remarks were aug-
mented by insight from a distinguished
panel of oilfield service company leaders
and private equity financial gurus.
“Private equity funds are pools of
dedicated capital that are earmarked to
make investments in companies with
growth opportunities and high-quality
management teams,” Sanderson said.
“Some of that money will be earmarked
toward growth, acquisition and new
equipment, while some will serve as li-
quidity for the company.”
Sanderson went on to note that U.S.
private equity activity spiked during
fourth-quarter 2012, both in respect to
total deal flow and capital investment.
Deal-making jumped 79% from Novem-
ber to December, he said. Meanwhile,
the gap between funds raised, and eq-
uity invested, stands at approximately
$300 billion. Such a gap is known in the
industry as capital overhang.
“We think that partnering with a pri-
vate equity group can be the most suc-
cessful form of financial planning for pri-
vate companies,” Sanderson said. “When
you sell to private equity, you keep your
brand, your name and your employees.
The brand and vision get extended, while
everything stays in place, and the capital
for growth does not have to come out of
your own pocket anymore.”
For companies looking at how to pre-
pare for engagement with private equity,
Mr. Sanderson advises that they under-
stand where they are making money—
understand the customer base and profit
margins. “These guys are mostly finan-
cial, and you are mostly operational,” he
said. “Financial audits are helpful to get
through the due diligence phase.” He also
encouraged those in the oilfield services
sector to diversify customers and mar-
kets, as this is a risk factor for investors.
“The more you can diversify, the more
you take risks off the table,” he said.
One of the distinguished panelists,
Ted Hogan, is the CEO of Light Tower
RichaRd GReen, DNV Maritime
Recommended practice
for shale gas risk management
ROgeR JORdan
Scott SandeRSon, Farlie, Turner & Co, led Tuesday morning’s panel discussion on private equity.



See PRivate equity, page 12
Dignitaries gather together for the ribbon cutting to signal the start of LAGCOE 2013.



See dnv MaRitiMe, page 12


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All Rights Reserved
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Email: corporatemarketing@nov.com
On Land.
Visit us at
Booth BOS 234
October 22-24, 2013
Lafayette, LA
At Sea.
Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper day tWo Wednesday, October 23, 2013 
3
After months of hard work, the LAG-
COE team had nothing left to do. All of
the exhibitors were in place. The gather-
ing’s schedule was finalized. Registration
booths had been established, parking lot
protocol was set, and the Lafayette po-
lice were well in control of traffic patterns
around the Cajundome. The only thing
left to do was host a party. Such was the
setting for Monday night’s opening recep-
tion at the Convention Center. Attendees
were in anticipatory and jovial moods,
happy to be in Lafayette and looking for-
ward to the upcoming days of networking,
deal-making and client development.
Conversations were animated and
diverse, as attendees ate from an impres-
sive spread of food and drank refresh-
ments from strategically located bars. One
topic overheard on several occasions was
praise for LAGCOE’s mobile app. The
app, which works on iPhones, Androids
and Blackberrys, enables attendees to re-
view technical sessions and add them to a
personalized calendar; search for exhibi-
tors and find them on the interactive floor
map; download exhibitor brochures; and
stay in-the-know with show alerts.
“This is the way to navigate a trade
show, especially a big one like this,” said
Carolyn Lundy, the marketing director for
Array Products Group.
Meanwhile, LAGCOE Looey was
found in his native habitat, holding court
at the center of the party, maintaining sev-
eral conversations at once, and generally
spreading good will and cheer.
“It’s a very nice night tonight,” said
LAGCOE Looey, otherwise known as
Alfred Thomas II. “We’ve got a sold-out
show and over 450 companies on the wait-
ing list.” When asked to assess the food at
the reception, LAGCOE Looey did not
hesitate. “It’s all great, but I really enjoyed
the meat pies, gumbo and crab cakes.”
“The opening reception has been very
busy and filled with friendly people,” said
Florence Kosmala, marketing manager for
Intermoor and a big fan of the seared tuna.
“It has served as a real showcase for the
days to come.”
The evening held another pleasant sur-
prise and that was the discovery that the
Scots were present in Lafayette. Scottish
International Development has a booth in
the Convention Center’s Exhibition Hall.
Kornel Rost, the group’s vice president
for the U.S. central region, explained their
presence here as such:
“We exist to promote the technologies
in Scotland that can be of use in the world’s
growing shale sector,” he said. “This is our
second visit to LAGCOE, and we couldn’t
be more pleased. Since we are the inter-
national agency for Scotland’s economic
development, we come to shows like this
to help both U.S. and Scottish companies
with contacts and networking.” When
Rost was asked about the food at the
opening reception, he gave an unequivo-
cal endorsement for the sushi.
While the Nouveau String Band played
their distinctive brand of Western swing,
interspersing originals with rave up cov-
ers of Bob Wills and the Texas Playboys,
over by the bar I met the contingent from
Republic Business Credit. Republic’s rai-
son d’être is to identify small, emerging
companies in the oil patch that have useful
new technologies. These small companies
might not yet be established enough or
large enough to qualify for bank financ-
ing, so Republic steps into that void to give
such a companies a line of credit so they
can facilitate growth.
“We are here at LAGCOE to get our
name out and help fast-growing compa-
nies,” said Candice Hubert, Republic’s
business development officer. Hubert was
accompanied by her colleagues, Leigh Gug-
lielmo and LaCour Miller. The group was
unanimous in their praise of the opening
reception’s atmosphere, and they were par-
ticularly taken by the variety of appetizers,
as well as the ice sculpture at the event.

Publisher
Ron Higgins
editor
Billy Thinnes
Production Manager
Angela Bathe
LaGcoe contacts
Angela Cring
Claire Thom
official Photographer
Peter Piazza
contributing editors
Kurt Abraham
Melanie Cruthirds
Roger Jordan
Pramod Kulkarni
advertisers:
Croft Production Systems, Inc. .................................5
Delta Rigging & Tools ............................................9
engines, inc. ........................................................7
Frank’s International ............................................19
GardnerDenver ....................................................20
Intermoor ..........................................................12
Key Energy Services ............................................10
Knight Oil Tools .....................................................1
Martin Energy Services .........................................11
National Oilwell Varco ............................................2
Wellhead Distributors International ...........................4
2 greenway Plaza, suite 1020
houston, TX 77252-77046
713-529-4301
www.WorldOil.com
Published by World Oil as three daily editions,
Oct. 22–24. If you wish to advertise in this newspaper,
or to submit a press release, please email
Billy.Thinnes@GulfPub.com.
2013 louisiana gulf Coast Oil exposition
The Cajundome and Convention Center,
Lafayette, Louisiana USA | LAGCOE.com
Wednesday OCTOBeR 23, 2013
9 a.m.–4 p.m.Cajundome International
Business Center and/or
Evangeline Room
B2B Meetings—Coordinated by the U.s. Commercial service energy Team
Ms. Pam Plagens, Senior International Trade Specialist, Houston
9:15–9:45 a.m.Cajundome
Evangeline Room
Business Opportunities in Malaysia
Sikh Shamsul Ibrahim, Director, Malaysian Investment Development Authority (MIDA)
9:45–10:15 a.m.Cajundome
Evangeline Room
Business Opportunities in singapore
Boon Ho TOH, Center Director, Los Angeles, Americas Group, International Enterprise Singapore
10–11 a.m.
Technical Presentation
Convention Center
Second Level
spotlight on new Technology: Winners showcase
Various new technologies will be showcased in a quick and informative overview format.
This session is not to be missed.
•  5D Oilfield Magnetics—Open Hole Net Magnet 
•  Baker Hughes—FASTrak LWD Fluid Analysis Sampling and Testing Service
•  Baker Hughes—SC-XP Extreme Performance Frac Pack and Gravel Pack Tool System
•  Hickman Sales & Service—Stable Data System 
•  Newpark Mats and Integrated Services—DURA-BASE
®
Advanced Composite Mats
•  Zahroof Valves, Inc.—ZPV High Efficiency Modular Valves For Gas Gathering and 
Distribution Applications
•  E&B Green Solutions—G-Clean Products
10:30–11:30 a.m.Cajundome
Evangeline Room
doing Business in angola
Jeannine Scott, President, U.S. Angola Chamber of Commerce, Washington, DC
Job Vasconcelos, Local Content Department at Negotiation Directorate, SONANGOL E.P.
Herberto Lafayette, President, Association of Angolans in Louisiana
11:30 a.m.–1 p.m.Lunch available at cafés throughout the show grounds
1–2 p.m.
Keynote Address
Convention Center
Second Level
sabine Pass lng import/export Terminal: What it Means for our state and industry
Jason T. French, Director, Government and Public Affairs, Cheniere Energy, Inc
2:15–3:15 p.m.
Keynote Address
Convention Center
Second Level
Oil and gas Market growth in india
Sudhir Vasudeva, Chairman and Managing Director of Oil and Natural Gas Corporation Ltd (ONGC)
3:30–4:30 p.m.
Technical Presentation
Convention Center
Second Level
gOM Regulatory and Permit Requirements Post-Macondo
Jodie Connor with J. Connor Consulting, Inc.
3:30–4:30 p.m.Cajundome
Evangeline Room
Opportunities in saudi arabia
David Cantrell, President, American Business Association, Eastern Province KSA
Aida Araissi, Founder, President & Managing Director, Bilateral US-Arab Chamber of Commerce  
James Lindley, Commercial Officer, US Commercial Service
On the eve of the show, opening reception dazzles
Billy Thinnes
The spread of food at the exhibitor party was extensive.
4
 Wednesday, October 23, 2013 day tWo Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper
investments in gOM and coastal louisiana
keep industry vibrant
Kirby Arceneaux is LAGCOE’s chair-
man. His day job also keeps him pretty
busy, as he is the CEO for Environmen-
tal Drilling Solutions. Mr. Arceneaux
was kind enough to sit down with World
Oil, and share his thoughts on the status
of today’s oil and gas industry, what’s
new with this year’s exhibition and how
best to approach LAGCOE as a first-
time visitor.
What is your assessment of the current
state of the uS oil and gas industry?
It appears the industry is very vibrant
due to the major investments made by
the oil and gas operators to develop
oil and gas fields in the Gulf of Mexico
(both shelf and deepwater), coastal
Louisiana and all of the shale plays
across the U.S. It is a great time to be
in the industry and our country is very
fortunate to have an abundant supply of
natural resources.
What are the industry’s challenges
and opportunities?
Challenges will always include hav-
ing the highest quality work force from
roustabouts and service technicians to
engineers available to drill and complete
wells. Additionally, it is critical that oper-
ations are handled in an environmentally
sensitive manner. Finally, low commod-
ity prices are a challenge as they directly
impact investment decisions, potentially
lowering activity. Opportunities include
the availability of high paying jobs in a
stable industry when commodity prices
are right for investment and above aver-
age returns.
What is one of your best memories
from previous LaGcoes?
Watching all of the volunteers working
together to help set up for the show.
What advice can you offer
the LaGcoe newcomer?
My advice would be to get involved
in any way possible, which allows you to
meet new people throughout the industry.
What is new and improved about
this year’s LaGcoe?
This year there are many new initia-
tives coming to fruition. First and fore-
most is the energy level and involvement
of Young Professionals of LAGCOE
(YPL). This group has surpassed all ex-
pectations of our staff, officers and ex-
ecutive committee. YPL is very engaged
in bringing younger industry people into
the LAGCOE organization and have
raised funds for our new LAGCOE Edu-
cation Fund. This fund, another exciting
creation by LAGCOE, is a Community
Foundation of Acadiana fund which
will support many education projects
and organizations. Another major im-
provement is LAGCOE’s first Career
Fair for individuals who may be looking
for employment opportunities in the oil
and gas industry. This will take place on
Thursday, the last day of show.
What motivated you to seek a seat on the
LaGcoe Board and why do you serve?
I was asked to volunteer many years
ago and have gravitated to my current
role. This organization does a great ser-
vice to the industry and community, and
volunteering is a way to give back. LAG-
COE generates over $10 million dollars
for the community and, for almost 60
years, has facilitated growth and celebrat-
ed an industry that fuels our world.

KiRBy aRceneaux
stone energy appoints
new director
Stone Energy has added David
Lawrence to its Board of Directors.
Lawrence has extensive global ex-
perience across the upstream busi-
ness. He served as an executive vice
president for Shell Upstream Amer-
icas and as the functional head of
global exploration for Shell world-
wide from June 2009 until retiring
from this position in April 2013.
His responsibilities included explo-
ration, acquisitions, divestments,
new business development, LNG,
gas to liquids and wind energy in
the Americas. Lawrence began his
career with Shell in Houston in
1984 in the global geology research
section working on the Gulf of
Mexico and early exploration con-
cepts of the deepwater.

Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper day tWo Wednesday, October 23, 2013 
5
LAGCOE attendees heard about the
plethora of business opportunities in
Canada that are available to American
companies on Tuesday morning. The
informative session featured contribu-
tions from David Weiner, consul and
senior trade commissioner in the Ca-
nadian Consulate General, Dallas, and
Crystal Roberts, senior commercial
specialist, U.S. Commercial Service, Ot-
tawa, Ontario.
Weiner pointed out the abundant
natural resources available for exploita-
tion in Canada, as well as the significant
contribution that the nation’s oil and gas
industry makes to Canada’s GDP, ac-
counting for 6.4%. He told attendees, “If
your company is going international, or
you are already international and trying
to figure out where to move your busi-
ness next, you don’t have to be a rocket
scientist to figure out where you should
go. All you have to do is follow the mon-
ey, and go where others are going.”
He reminded delegates that Canada
has considerable proven oil reserves. “In
2012, we had an estimated 172 billion
bbl of proved crude oil reserves, ranking
Canada number three in the world be-
hind Saudi Arabia and Venezuela, and,
notably, ahead of fourth-ranked Iran.
Canada has an estimated 60 Tcf of natu-
ral gas reserves, which ranks us as num-
ber 18 in the world. Of those proved re-
serves, the vast majority are in Canada’s
oil sands, located in the provinces of
Alberta and Saskatchewan.”
Weiner pointed out that between
2010 and 2035, development of Cana-
da’s oil sands will support an estimated
93,000 American jobs. The develop-
ment also should contribute $8.4 bil-
lion per year to the U.S. economy, a
figure that could rise to $14.4 billion an-
nually with successful construction of
the remainder of the Keystone XL pipe-
line. He also urged LAGCOE attendees
to take action on the matter, saying, “we
need you to lobby your congressmen,
and your President, for that Keystone
pipeline approval.”
He also drew attention to a number
of oil and gas conferences that take
place in Canada, and encouraged U.S.
companies to take advantage of them.
Some of the shows that Weiner recom-
mended include the Global Petroleum
Show (GPS), Gas & Oil Expo (now
wrapped into the GPS), and the Oil
Sands and Heavy Oil Technology con-
ference and exhibition.
Following Weiner’s presentation,
Roberts gave a brief talk, focusing on
Alberta and Western Canada in general.
She said, “Our oil sands reserve is con-
sidered to be one of the largest in the
world containing 1.8 trillion barrels of
bitumen initially in place; 1.6 million
bbl of oil per day were produced from
the oil sands, alone, in 2011.” She not-
ed that Alberta accounts for the over-
whelming majority—more than 96%—
of Canada’s oil reserves.
Roberts also drew attendees’ atten-
tion to a number of major opportunities
in Alberta. Some of the projects that she
mentioned include: Fort Hills Project
(an integrated oil sands project, with
an anticipated development cost of $10
billion for the first two phases); Fron-
tier Oil Sands Mine (a four-phase devel-
opment, with an expected cost of $14.5
billion); Joslyn North Mine ($6.9 bil-
lion); Quest (the world’s first commer-
cial carbon capture and storage, with an
estimated cost of $1.35 billion), Taiga
project (an oil sands project, with an
expected cost of $1.57 billion); and the
Telephone Lake Project ($1 billion).
“You can see, these are just a few of
the projects that are happening in Al-
berta,” said Roberts. “So, there is quite
a bit going on there.” The U.S. Com-
mercial Service is the trade promotion
arm of the Department of Commerce’s
International Trade Administration.
The group has professionals in over
100 U.S. cities, and more than 75
countries, helping American com-
panies do business in new markets
around the world.

Canada positions itself for additional activity
ROgeR JORdan
cRyStaL RoBeRtS, U.S. Commercial Service
david WeineR, Canadian Consulate General
based in Dallas, Texas
Representatives of 37
countries have registered
for lagCOe. Over 250
international visitors
are expected to attend.
6
 Wednesday, October 23, 2013 day tWo Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper
For those companies, both foreign
and domestic, looking to expand, estab-
lish and/or relocate operations, Louisi-
ana, and Lafayette in particular, should
be prime candidates. That was the mes-
sage put forth this morning by John
Voorhorst, executive director of interna-
tional commerce at Louisiana Economic
Development, and Megan Segura, direc-
tor of strategic analysis at the Lafayette
Economic Development Authority.
“Louisiana’s advantages for business are
comparable or better than those found
in Texas,” said Voorhorst, who went on
to outline a long list of attributes.
One of the key items in that list is
the state’s FastStart program, which
provides custom turnkey recruitment
and training solutions for company re-
location and/or expansion projects. It
also provides development and deliv-
ery of key certification programs across
Louisiana’s workforce development
system. “I can’t emphasize enough the
importance of customized labor force
solutions,” said Voorhorst. “This is so
critical to companies. No less than The
Economist magazine said that ‘probably
the most notable statewide workforce
development initiative is in Louisi-
ana.’ ” He pointed out, how the state,
through FastStart, has established la-
bor training centers in conjunction
with major, new operations established
by various companies.
“A good example is in Lake Charles,
where South Africa’s Sasol established
a $16-billion-to-$21 billion integrated
gas-to-liquids (GTL) and ethane crack-
er complex. Some months before that,
FastStart customized a training pro-
gram for Sasol’s 1,200-plus new work-
ers.” Also, said Voorhorst, based on Sa-
sol’s needs, FastStart recommended a
$20-million training center be built at
Southwest Louisiana Technical Com-
munity College in Lake Charles. An-
other example, he pointed out, is when
German firm Benteler Steel/Tube com-
mitted to building a $975-million hot-
rolling seamless steel tube facility in
Shreveport. In conjunction with that
project, the state agreed to assist by de-
veloping the 65,000-square-foot BPCC
Center for Advanced Manufacturing
and Engineering Technology, now un-
der construction on the campus of
Bossier Parish Community College in
neighboring Bossier City, La.
In addition to workforce training,
Voorhorst said that one of Louisiana’s
key attributes is that it has lower overall
business costs than other southeastern
states and the U.S., as a whole. “Loui-
siana has the lowest electricity rates in
the South—we’re as low as you can go,”
explained Voorhorst. “One of the rea-
sons for this is our energy source mix.
We have a lot of natural gas to fire elec-
tricity, and with the low gas prices right
now, we can do it for a very low cost.”
He also noted that a new Tax Founda-
tion/KPMG study finds that Louisiana
offers a very competitive business tax
structure. “For instance, we have the
Competitive Projects Payroll Incentive,
which provides up to a 15% rebate of
new job payrolls, each year for 10 years.
This is an extremely powerful incentive
for jobs in this state.” He also noted that
the state has excellent transportation,
featuring world class port facilities, as
well as service from all six Class 1 rail-
roads in the U.S.
For her part, Segura focused on the
current growth and future potential of
Lafayette. Along the present and future
Interstate 49 corridor, “you can find
the largest concentration of oil and gas
companies in Louisiana,” said Segura.
That concentration includes offices and
yards for some of the largest producers
and service/supply companies, as well
as smaller, niche players. “Recent figures
show that 10.8% of Lafayette’s popula-
tion works in the oil and gas industry, as
opposed to 2.8% throughout Louisiana
and just 0.7% in the U.S.” Comparing La-
fayette’s oil and gas capabilities to other
industry hubs, she described Houston
as being more oriented to planning and
management, “while Lafayette is more
operational.” Lafayette, she added, is also
closely related to Aberdeen, Scotland,
due to the oil and gas industry.
According to Segura, Lafayette is
gaining national and international atten-
tion as a favorable place to do business.
“Lafayette was named by fDi magazine
as one of the top 10 North and South
American Cities of the Future,” said
Segura. “Along with Brownsville, it was
one of only two U.S. cities in that list.”
She also noted that Lafayette was named
by Area Development magazine as one of
the leading U.S. locations for business.
That publication’s editors, she explained,
noted that their decision was based on
energy serving as a driving factor in the
ranking. In that survey, Lafayette was
ranked first in economic strength and
also first for year-on-year job growth.

louisiana region’s business advantages
touted during briefing
KURT aBRahaM
Louisiana Economic Development’s John vooRhoRSt
touts the state’s business climate during a LAGCOE briefing
on Tuesday.
MeGan SeGuRa describes Lafayette’s role as an oil and
gas center during a briefing at LAGCOE on Tuesday.
aPi kicks off lagCOe 2013 with Macondo analysis
ROgeR JORdan
LAGCOE 2013 got off to a spir-
ited start on Tuesday morning, with a
breakfast hosted by the Acadiana Chap-
ter of the American Petroleum Institute
(API). The inaugural early morning
session saw around 170 professionals,
from companies as diverse as Badger
Oil Corp., Environmental Drilling So-
lutions, Weatherford and Superior En-
ergy Services, pack into the convention
center’s Mardi Gras Ballroom.
Attendees enjoyed an authoritative
presentation by Mr. J. A. (John) Tur-
ley, entitled “An Engineering Look at
the Cause of the 2010 Macondo Blow-
out.” Turley’s mantra is that only if in-
dustry understands, and cares about,
the cause of the Macondo tragedy,
which claimed the lives of 11 men, will
we know why the tragedy should never
have happened, and why it should nev-
er be repeated.
Turley began his own investigation
in the aftermath of the tragedy, but
found that the companies involved had
closed their doors to him. As a result,
he began to study well data and investi-
gative reports for himself. He explained
how his investigation began, saying, “I
told my wife: Look, I am going to look
into this, I am going to dig into this. I
really want to know what happened.
But I am not talking to anyone else. I
don’t need any help on this. I know how
to read data. I’m an engineer; I can use
my own head. So I started pulling data.”
Turley now speaks to “anyone who
will listen,” in a bid to make sure that
a similar incident is not repeated in the
future. However, he insists that he is
not interested in pointing fingers at any
of the companies involved. “The spirit
of my presentation is, I want engineers,
operators, company men, and managers
in the office to say, those are the things
that specifically happened to cause the
blowout, and those are the things I can
fix,” explained Turley. “And if I can fix
those kinds of things, I can minimize
the chance of this happening again.”
During his presentation, Turley, a
longstanding industry veteran, indicat-
ed that there were several main causes
for the incident. He said that the cas-
ing and cementing operations caused
a leak, which was then exacerbated by
further operations. Turley warned that
the test results generated by the well
indicated the presence of an unseen
leak, but that these results were de-
clared anomalous.
Further testing, with invalid kill-line
rigging, which was performed on the
well falsely, indicated that there was
no leak. As a result of the further test-
ing, the Macondo well was wrongly de-
clared secure. The well started to flow,
due to displacement by seawater, until
it was too late to avert the blowout with
the BOPs. He said, “You cannot wait
until the well has flowed 1,000, 1,500,
2,000 barrels, or at 100,000 barrels a
day, before you say close the BOPs. I
give credit to the guys on the rig, who
closed the BOPs, but it literally didn’t
have much chance to stop the well.”
API represents over 400 corporate
members involved in all aspects of the
oil and gas industry through self-sup-
porting, autonomous local industry
organizations. API’s Acadiana Chap-
ter adheres to the association’s chap-
ter guidelines and holds bi-monthly
meetings.

hoover acquires dolphin
Hoover Container Solutions
has acquired Dolphin Energy
Equipment, a provider of cargo
and waste management rental
equipment and related consum-
ables in the Gulf of Mexico region.
Headquartered in New Iberia, with
a distribution and service center
in Port Fourchon, Dolphin’s as-
sets include a diversified fleet of
cargo carrying units certified to
standards such as DNV and API
regulations. Dolphin is best known
for its offshore baskets, trash com-
pactors, food disposal units, pipe
slings and related consumables
and services. The combined com-
pany will be a supplier of chemi-
cal, cargo and waste management
tanks, baskets, containers and re-
lated accessories and services in
the global energy marketplace.
The acquisition of Dolphin
complements the acquisition of
Consult Supply A/S which was
completed in 2012. Based in
Stavanger, Norway, Consult Supply
(soon to be Hoover Norway) pro-
vides an extensive range of prod-
ucts in the North Sea market.

Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper day tWo Wednesday, October 23, 2013 
7
The U.S. energy business is expanding
at an unprecedented rate. This growth is
fueling innovation and development in
all areas, from exploration to develop-
ment to production. The application of
technology has, historically, been slow
in this industry. Initial inroads made by
technology have been in the exploration
and production areas, but innovations in
the supporting services area have devel-
oped slowly. There is still a large lag in the
modernization of the logistics and com-
munication processes.
Recognizing that oilfield companies
need an easier, more efficient and reli-
able way to manage people, resources
and data in real time, Fieldbook ERP was
developed. “Our number-one priority
is making sure oilfield operations run as
smoothly and efficiently as possible, from
the office all the way to the lease,” said
Chuck Dettlaff, Fieldbook ERP V. P. of
sales and marketing.
Fieldbook ERP was developed to
make oilfield operations more efficient,
to increase productivity and save money.
The software allows companies to track
bids and job tickets, complete invoicing,
manage inventory, and monitor key busi-
ness metrics, all through a web-driven
system. It is enterprise resource planning
software for the oilfield services industry.
This solution was developed in Oklaho-
ma to help the industry efficiently man-
age operations, sales, accounting and
business performance from a single user-
friendly platform. With a customer-ser-
vice emphasis, it provides a cost-effective
solution to streamline operations and en-
hance efficiency of employees, resources
and assets in the day-to-day business.
Fieldbook ERP was built to give busi-
ness owners a system to manage their
companies in ways that were not previ-
ously possible. Historically, data existed
on scraps of paper, in phone conversa-
tions and on disparate spreadsheets. The
software’s mission is to bring unity and
clarity to vital business information that
traditionally has existed in multiple, dis-
connected formats. This integrated ap-
proach to operations and accounting
management gives business owners great-
er transparency. All these features com-
bine to increase productivity, by making
information more accurate and accessible.
“Some of the largest problems facing
the industry are lost inventory, tracking
sales, and connecting on-site operations
back to the office, all of which can cost
business owners a substantial amount of
money, if not done correctly and on time,”
said Dettlaff. “Fieldbook ERP solves these
problems by helping with all day-to-day
activity—tracking inventory, sales, bids,
and other items—integrated into a system
that is easy to access and navigate from the
back office, dispatch or in the field.”
Sales. Historically, bids have been done by
pencil and paper, or phoned into the back
office. The process of tracking variations
in pricing, start and end dates, and loca-
tions, has been subject to time delays and
errors in data entry. The software provides
consistency and professionalism to a com-
pany’s sales and bidding operations, in
addition to streamlining accounting and
financial reporting operations. The data is
entered once, verified and approved, and
is accurate for every operation and process
from that point forward. This automation
helps the business save money and time
by eliminating the need to review errone-
ous data and recover missing items.
Fieldbook ERP allows companies
to utilize electronic bid management,
to combine goods, services, and rental
items, together with specific customers
and their leases, to create a unified bid-
ding process. The software eliminates
potential conflicts where managers can
determine prices for their services and
enter them in the system, to ensure that
bids are priced and formatted consistent-
ly. Once prices are set, only users that are
given permission can adjust them.
User and fiscal responsibility are guar-
anteed, because of the electronic paper
trail that is created for every transaction.
This audit trail assures the transparency
of the business and the accuracy of the
data reported every day.
operations and workflow. Fieldbook ERP
allows companies to visually track real-
time availability of personnel and equip-
ment, as well as open and scheduled jobs.
This decreases the amount of manual en-
try into the system, saving time and mon-
ey, and simplifying data entry. The system
incorporates the best practices of several
oilfield service companies. These firms
partnered with the development team to
achieve efficiency in all processes.

WHEN YOU NEED IT
RELIABLE
POWER
When reliable power
is absolutely critical to
your bottom line you
need an engine that you
can depend on. That’s
why we use John Deere
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which are durable, fuel
efficient, and easy to
maintain. They are also
backed by one of the strongest engine and equipment
companies in the World.
At engines, inc. we build the best engineered package
anywhere in the oilfields and we stand behind our
package with the most reliable 24/7 support structure
in the business. Our extensive dealer network is able to
provide fast reliable service and dependable support
wherever you are, whenever you need them and our
skilled staff is always available to you on our 24-Hour
Service Line. With over 150 years of collective experience
in our shop and over 75 years of partnership with John
Deere, there is no doubt that we can give you the support
you need, when you need it, wherever you are!
WE ARE YOUR POWER SOURCE!
engines, inc.
Jonesboro, AR • 800-562-8049
Conroe, TX • 936-441-5592
www.enginespower.com
24-Hour Service Line
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software package manages operations,
administrative functions more efficiently
FiGuRe 1
The Fieldbook ERP software package ties together a number
of operational and administrative functions, and their data,
in a secure, efficient environment.
8
 Wednesday, October 23, 2013 day tWo Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper
When it comes to oil and gas, australia is open for business
Melanie CRUThiRds
During an exhibition dedicated to
promoting and advancing the Louisiana
Gulf Coast’s oil and gas industry, a panel
on development opportunities in Aus-
tralia may seem a little out of place. But,
upon further inspection, the differences
between Australian offshore develop-
ment, and the work being done in the
Gulf of Mexico (GOM), are not so vast.
While GOM E&P activity has, thus far,
outpaced many regions of the world,
Australia is widening its global reach
steadily, and hoping to draw operators
to its proven, but largely undeveloped,
troves of oil and gas resources.
In a session devoted to exploring
“Opportunities in Australia,” held on
the first day of LAGCOE 2013, a three-
member panel, from various outposts,
spoke to the potential of Australia’s
offshore, LNG and unconventional re-
sources. Opening the discussion was
LAGCOE 2012-2014 Executive Com-
mittee member Ross Keogh, who is
president and group CFO of Australia-
based Petsec Energy Inc., which also has
offices in Houston and Lafayette.
Following Keogh’s introduction was
Ms. Kelly Ralston, a senior trade com-
missioner for the Australian Trade
Commission (Austrade) in the organi-
zation’s Washington, D.C., office. Aus-
trade is the Australian government’s
trade, investment and education pro-
motion agency. According to Ralston,
the group traveled to Lafayette to reach
out and provide information to compa-
nies looking to establish business rela-
tions in Australia. The group also assists
“Australian companies in growing their
international business, attracting pro-
ductive foreign direct investment into
Australia, and promoting Australia’s
education sector internationally.
With a $1.5-trillion GDP, Australia
ranks as the world’s 12th-largest econ-
omy, and the fourth-largest in the Asia-
Pacific region, which is home to 10 of
the country’s top 12 export markets, in-
cluding Japan, China, South Korea and
India. According to Austrade, the oil
and gas support sector contributes $.3
billion annually to Australia’s economy,
with another $190 billion in capital
expenditures planned for seven major
LNG projects now under development.
With investment from operators like
Chevron, Shell, Exxon Mobil, Cono-
coPhillips, Total and Inpex, Australia is
now the world’s third-largest exporter
of natural gas, with that ranking expect-
ed to jump to second by 2016, and first
by 2020.
Much of the demand for Australian
natural resources, especially LNG and
coal seam gas (CSG), is being driven by
Chinese demand, which is expected to
quadruple by 2035. Australia will likely
be able to keep pace with growing Asian
demand, as 73 projects, totaling $270
billion in commitments, are planned,
as of April 2013. Of these projects,
Ralston said 11 “megaprojects,” those
valued at more than $5 billion, each,
were planned, including the Gorgon
and Ichthys developments.
Gas continues to dominate the Aus-
tralian natural resources landscape, as
the country is home to more than 110
Tcf of gas, earning it a 12th-place rank-
ing in terms of conventional natural
gas reserves, worldwide. Seven of the
12 major gas projects under construc-
tion, around the world, are in Austra-
lia, said Ralston, with many of those
based in the prolific Western Australia
and Queensland regions. With start-
up dates ranging from 2014-2017, the
projects include (project, operator and
partners):
•  Queensland Curtis LNG: 
QGC (BG Group)
•  Gorgon LNG: Chevron, Shell, 
Exxon Mobil
•  Gladstone LNG: Santos, Total, 
Petronas, KOGAS
•  Australia Pacific LNG: Origin 
Energy, ConocoPhillips, Sinopec
•  Prelude FLNG: Shell
•  Wheatstone: Chevron, Apache, 
Kuwait Foreign Petroleum
Exploration Company, Shell
•  Ichthys: Inpex
Ralston noted that the Gorgon LNG
project, off the northwestern coast of
Western Australia, represents Chevron’s
largest project investment in its global
portfolio. She also called Australia a “fast
follower” in the worldwide gas game,
especially in unconventional resources.
Unconventional development in Aus-
tralia, by companies with experience in
North America, is bringing along the
necessary technologies and processes
for successful exploitation.
And they will certainly need those
technologies and methods. Australia
ranks seventh in the world for shale gas
reserves, and supplies 6% of the world’s
CSG resources. To access these resourc-
es, totaling 235 Tcf for CSG and 396 Tcf
for shale, operators in, and from, Austra-
lia will need to employ some of the hy-
draulic fracturing and horizontal drill-
ing methods that were largely pioneered
in North America. To date, there are
three approved CSG-to-LNG projects
in Queensland, alone, with the com-
missioning of the projects expected to
provide a path to market for new CSG
projects within four years. Ralston said
Australia’s gas outlook is helped by its
high level of connectivity among LNG
export facilities, and its proximity to the
growing Asian demand market.
That is not to say that Australia is not
doing its part to spur technological de-
velopment within its borders. Ralston
said there is a growing focus on R&D,
with the country’s own Commonwealth
Scientific and Industrial Research Or-
ganisation (CSRIO) tackling projects
related to petroleum systems, EOR,
flow assurance and unconventional gas.
Educational partnerships have also been
undertaken, as the Western Australian
Energy Research Alliance has com-
bined the efforts of the CSRIO, Curtin
University, and the University of West-
ern Australia, along with Woodside,
Chevron and CGGVeritas. Lastly, she
said, industry leaders have established
R&D outposts in Australia, including
Chevron’s Global Technology Centre,
IBM’s Oil and Gas Research Centre,
and Shell’s Global Centre for FLNG
Learning and Research Training.
Speaking as an industry player, who
has taken advantage of the opportuni-
ties afforded in the Australian oil and
gas sector, especially offshore, was John
Bodin, the director of global business
development for Delmar Systems, Inc.,
in the company’s Houston office. Spe-
cializing in offshore mooring design,
engineering and equipment, Delmar’s
operations were 99% GOM-based, up
until 2010, when the Macondo spill
occurred. After that, Bodin said, the
Broussard, La.-based company shifted
its expansion focus to include projects
in West Africa and Australia, where
there was new income potential.
Bodin said Australia’s emerging
deepwater market is reminiscent of the
GOM 15 to 20 years ago, with offshore
infrastructure like subsea trees and
flowlines continuing to be built out, as
water depths creep from 150–600 m, up
to nearly 2,000 m in deeper plays. Al-
though the geography and reservoir po-
tential differ from the Gulf to offshore
Australia, the major players present are
not. Bodin said his company was able
to leverage existing customers and re-
lationships, established in Houston and
the U.S., to enter the relatively stable
Australian market.

KeLLy RaLSton, senior trade commissioner, Australian Trade Commission (Austrade)
Full spectrum of specialty trucks offered
Eclipse Wireline offers the best quality and craftsman-
ship in the industry, while ensuring that the highest-quality
components available will be used. The company designs
and manufactures custom wireline, slickline and fiber optic
trucks for the oil, gas, coal, seismic and geothermal industries.
Eclipse manufactures custom trucks, allowing the customer
to choose the chassis, the size and number of drums, the stor-
age options, measuring systems, and everything between.
With more than 100 years of combined experience, Eclipse
has the expertise needed to build a product that not only best
suits each individual customer, but also offers the highest
quality product in the industry. The cornerstones of Eclipse
include product reliability, customer satisfaction, integrity,
honesty and continual improvement. Every new truck comes
with a one-year warranty. Eclipse makes it a priority to provide
first-class customer service, whether through over-the-phone
assistance, parts support, or field service and training. Eclipse
backs all of its products, no matter where you are.
Customers can maximize their potential by designing
a custom-fit truck that can perform a wide variety of func-
tions. In addition to its standard product line, Eclipse also
designs and builds a full, comprehensive line of combina-
tion trucks. The company offers slickline/braided line com-
bos, slickline/e-line combos, and drums with multiple split
option designs, to accommodate any wire size. In addition
to multiple drum options, the company also offers custom
design layouts, custom tool storage options, and options to
integrate a mast, derrick or crane.
This year, Eclipse has made major improvements on its
e-line openhole/cased-hole combination truck. This double-
drum truck can accommodate an openhole wire configura-
tion of
15

32
-in. wire, and a second drum for cased-hole work
that accommodates a
5

16
-in. wire drum. Both drums run a ca-
pacity of 30,000 ft of line. The drum lift system has also been
redesigned, providing an even better visual of both drums.
Eclipse is also able to design a combination truck that allows
customers to do the full spectrum of slickline and wireline
work, all in one. Whether customers are looking to expand
current operations, or add versatility to a fleet, Eclipse can
design and build an option to meet any need.
Wireline equipment has been the cornerstone of Eclipse’s
success for the past decade, however, in response to market
evolution, the company has significantly expanded its engi-
neering capabilities.
The company is in the process of engineering and planning
a full line of CT units, with an anticipated production rollout
in mid-2014. Eclipse also provides wireline skids, data vans,
control cabs, command centers, self-contained wireline con-
tainer units, custom van bodies, mast and derrick units, and
self-contained wireline trailer units.

Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper day tWo Wednesday, October 23, 2013 
9
The Keller Ferry crosses the Co-
lumbia River at its confluence with the
Sanpoil River, from Ferry County and
the Colville Indian Reservation on the
north bank, to Lincoln County on the
south. Approximately 60,000 vehicles
travel on the Keller Ferry each year.
Walk-on passengers are few, as the ferry
route is a link in a rural highway, State
Route 21. The free ferry operates seven
days a week, 18 hr a day, from 6 a.m. to
midnight. Occasionally, perhaps every
two or three years, when lake elevations
drop below 1,248 ft, the north landing is
moved a short distance up the Sanpoil
River, extending the normal 10-min
crossing to about 20 min.
A new ferry was commissioned that
required an upgrade of the existing ter-
minal. Because the shoreline moves so
drastically, due to changing water lev-
els in the reservoir controlled by the
Grand Coulee dam, the ferry terminals
are mounted on pontoons, and are an-
chored to the shores with four mooring
lines each. Additionally, two winches are
mounted on each platform, to raise and
lower the aprons that span from the ter-
minal to the ferry, and from the terminal
to the shore. Each of the mooring and
apron hoisting winches are controlled
by a variable frequency drive interfaced
to two remote control stations.
The Washington State Department of
Transportation (WSDOT) had two pri-
mary concerns they wanted to address.
First, due to the remote location of the
terminals, back control of the winches
was required. Across the line, contactors
were provided in parallel to the VFD’s,
switch selectable on the front panel of the
motor control cabinets, to allow opera-
tors the ability to run the winches in case
of a VFD failure. Second, also due to the
remoteness of the site, the primary sup-
ply lines were limited in current capacity,
and WSDOT was concerned about the
in-rush current of using contactors. Mea-
surement Technology Northwest cre-
ated a custom current versus torque pro-
file that limited the in-rush current on
each drive, FiG. 1. Each of the mooring
winches was designed with a mechanical
brake, whose release was controlled ei-
ther by the VFD, or manually, in case all
mooring winches needed to be released
to reposition the pontoon. Each mooring
winch had a high tension limit defined
by onsite testing. Traffic arms and limit
switches on the apron were also integrat-
ed into the winch control package.
With our combination of mechanical
and electrical engineering expertise, com-
bined with uncompromising in-house
fabrication and production capabilities,
MTNW is able to complete a project like
this from inception and design, through
production and installation.

Because Every Lift Counts!
Delta Rigging & Tools has acquired Morgan City Rentals creating the leading offshore rental
and rigging provider in the Louisiana gulf coast market. Collectively our company now
offers an expanded portfolio of lifting solutions, including rigging and rental equipment as
well as compliance and load testing, inspection, field services and custom solutions for
your most challenging projects.
Combining our effort and resources, our new team is committed to providing you an
experience of total customer satisfaction. Experience the Difference!
Sal es s Rental s s Servi ce
TOGETHER WE MAKE THE DIFFERENCE!
Sal es s Rent al s s Ser vi ce s 877.408.8008 s www.del t ari ggi ng.com
S A F E T Y s S E R V I C E s Q U A L I T Y s V A L U E
Corporate HQ: Pearland, TX Angleton, TX Baton Rouge, LA Broussard (LAF), LA Grand Junction, CO Houma, LA Hurst, TX
Odessa, TX Pasadena, TX Port of Fourchon, LA (Testing Facility) Sulphur, LA Tulsa, OK Victoria, TX Wichita, KS Williston, ND
Morgan City Rentals, A Division of Delta Rigging & Tools: Broussard LA Golden Meadow, LA Morgan City, LA
Measurement Technology northwest provides
new controls for the Keller Ferry terminals
FiGuRe 1
Measurement Technology Northwest provided the Keller Ferry, in Washington State, with new terminal controls,
to meet the unique challenges of such a remotely located outfit.
safety Management systems
enters public-private partnership
Safety Management Systems
(SMS), a division of Acadian, has
entered a public-private partnership
with the University of Louisiana at
Lafayette’s National Incident Man-
agement Systems and Advanced
Technologies (NIMSAT), to provide
training and services for all-hazards
emergency preparedness.
The partnership includes a certifi-
cation program for public and private
sector executives and site supervi-
sors. This program features Incident
Command Structure (ICS) training
courses, which are required by pub-
lic sector officials, and also courses
taken by the oil industry. In addition,
SMS will be providing site-specific
disaster response consulting. Safety
Management Systems is one of six
Acadian divisions.

10
 Wednesday, October 23, 2013 day tWo Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper
Learn more about Key’s Coiled Tubing Services
and employment opportunities at

keyenergy.com or 713.651.4300
WHY KEY COILED TUBING SERVICES?

Improved Circulation

Accurate Pumping

Easier Plug Milling and
Formation Deepening

Controlled Logging
and Perforation

As a leader in coiled tubing, we know
what it takes to get a well running or
back to full production with speed and
superior equipment and advanced
technology help ensure performance

in your downhole operations with
Key Coiled Tubing Services.
Key Coiled Tubing Services
Performance is Key
Croft Production Systems has been
providing clients with solutions to their
oil and natural gas production needs
since 2007. At Croft, they specialize in
leasing, selling, customizing and consult-
ing and offer a variety of gas processing
equipment. Whether their client’s needs
are related to dehydration, ambient cool-
ing, CO
2
removal, NGL recovery, fuel-gas
conditioning or H
2
S removal, Croft Pro-
duction Systems has natural gas process-
ing equipment designed to meet the need.
PdS vs. teG. Croft’s passive dehydration
systems (PDS) are just another example
of the company’s ability to meet industry
and client needs head on. Croft has taken
a proven technology from the 1920’s and
improved it to become the leading indus-
try design of dehydration equipment in
individual well sites, pipelines and refiner-
ies running 4 Mcfd to 40 MMcfd. With no
moving parts or fired vessels Croft is able
to maximize dehydration while eliminat-
ing emissions and hazardous wastes that
are unsafe for the environment. Even the
US Environmental Protection Agency
(EPA) and Texas Commission on En-
vironmental Quality (TCEQ) acknowl-
edged the tremendous benefit to the en-
vironment the PDS has over glycol units.
Unlike traditional glycol units, they use a
specially formulated enviro-DRI desic-
cant that absorbs moisture and dissolves
into a non-hazardous brine solution,
which can be drained to a water storage on
location and retrieved by a vacuum truck.
Operating costs are also affected by
temperature, pressure and how much wa-
ter vapor must be removed and so each
customer’s application must be calcu-
lated. By comparison, operating costs of
glycol systems have a much larger range
in price considering the additional op-
erating issues of glycol loss, burner fuel,
maintenance, emissions controls, flare
fuel, fluid disposal, periodic clean-outs
and man hours required.
PDS units, a safe alternative to TEG
units, have no moving parts or open
flames and little to no emissions. Due to
the increased safety and unit’s simplicity,
minimal maintenance is required for the
PDS unit. There are no permit require-
ments for the PDS, unlike the TEG unit
with increasingly stringent regulations.
Biofuels and natural gas. The fuel-gas
conditioning system (FCS) is a skid-
mounted hybrid unit that decreases the
dew point and hydrocarbon dewpoint of
the gas by several methods. This unique
piece of equipment is designed specifi-
cally for compressor fuel, generator fuel
and instrumentation gas. These are small
processing packages that greatly accom-
modate most equipment that requires a
clean natural gas input.
With continuous growth, expansion
and increasing demand for Croft’s prod-
ucts and ingenuity, Croft is selectively
considering additional systems in the up-
coming year related to CNG and LNG.
For more information contact CROFT at
info@croftsystems.net or visit their web-
site at www.croftsystems.net.

Croft brings change to natural gas processing
FiGuRe 1
There are no permit requirements for a Croft PDS.
The show was up and running by Tuesday afternoon.
www.martinenergyservices.com
Martin Energy Services has over 30 locations
supplying lubricants, fuels, and specialty services.
Don’t let contaminated lubricants or fuel cost you
downtime or dollars. Our lubricants and fuel filtration
services will make your equipment run at optimum
levels while maintaining our goal of “No Harm To
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• SHORE-BASE SERVICES • WASTE MANAGEMENT SERVICES
12
 Wednesday, October 23, 2013 day tWo Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper
Rentals. He partnered with private equi-
ty firm Clairvest to take his company to
the next level. “We were a small regional
company, and now we are a big national
company,” he said. Clairvest came in and
offered expertise in financial reporting
and “professionalized” the business.
“We brought in a stronger executive
management team and stronger branch
management. We upgraded technology
and all aspects of business,” said Hogan.
“Clairvest stays in the background and
lets us operate. We don’t always agree on
the best way to do it, but we always have
productive discussions. All private eq-
uity groups are different. Look at where
you are, and what you want to do.”
“You need a partner who understands
what the cycle will be like,” said Michael
Castellarin, Clairvest’s managing director.
“One of the benefits of having a partner
with experience is understanding the cy-
clical nature of this sector.”
Scott Dingman, an entrepreneur and
the CEO of Delta Subsea, was another
panelist. Dingman observed that once he
made the decision to seek private equity
investment, he interviewed 85 companies
before he found the right match (which
was with SSL Energy Fund). “You have to
be aligned with your equity partner,” he
said. “They have to support you.”
John Griggs, who represented SSL En-
ergy Fund on the panel, mirrored Ding-
man’s remarks. “We like to build business-
es, starting small and hands-on,” he said.
“We’ve started seven different oilfield ser-
vices companies. We have a fund of $300
million, and we try to diversify within the
energy sector.” That diversification goal
means targeting companies onshore and
offshore in a variety of different plays, in
an attempt to avoid excessive exposure to
any one niche of the overall market.
The discussion then wound its way
back to Castellarin, who saw fit to go into
a bit more detail about Clairvest’s invest-
ment strategy. “We aim to put up 25% of
all money in a deal,” he said. We try to walk
the talk. Our preference is to do minority
deals, where we own less than 50%. That
is a critical part of achieving alignment.”
Castellarin went on to say that there
is no substitute for communication be-
tween the equity firm and the company
that they have invested in. In one exam-
ple, Castellarin noted that he still holds a
weekly call, more than six years into the
deal with one company. He also is a firm
believer in well-defined financial and op-
erational measurements. He says it is far
easier to have data and fact-based con-
versations around returns and growth.
“Guessing will lead to disagreements,” he
said. “Improving reporting is critical to
avoiding disagreements.”
The free-flowing panel discussion
wrapped up with an analysis of exit
strategy. “We don’t go into investments
without an exit strategy,” said Michael
LeBourgeois, a partner at NGP Energy
Technology Partners. “We map it out, in
conjunction with where the management
team is, and where they see the exit going.
If you go into one of these deals, where
you are misaligned with the other side
from Day 1, you are likely to have dis-
agreements.” LeBourgeois reminded the
audience that all private equity groups are
different. “We all have our strengths and
weaknesses,” he said.

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All operations were performed off the
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47
PRivate equity, continued from page 1
The recommended practice aims to
cover risk management issues that are
particular to shale gas fields. DNV is still
soliciting input for the recommended
practice and will continue to do so for the
next couple of years. The company hopes
that its new, recommended practice may
serve as a reference document for inde-
pendent assessment or verification.
Elements of the practice guard ar-
eas as diverse as health and safety,
including those specific to shale gas
development; the management of en-
vironmental aspects; ensuring well in-
tegrity; management of water, energy
and residuals; infrastructure and logis-
tics; stakeholder communications; and
permitting. This practice is designed to
establish trust, credibility and stake-
holder confidence through indepen-
dent verification. It will demonstrate
that operations are conducted in a safe,
sustainable manner; that best practices
are in use; and that regulations are be-
ing complied with.
DNV can issue a letter of confor-
mance to companies that adhere to
the recommended practice. Copies of
DNV’s recommended practice can be
found at www.dnv.com.shale. Green is
also developing a new Environmental
Services team in North America, tar-
geting clients in the energy sector that
need environmental due diligence, eco-
systems services support, and climate
change positioning services.

dnv MaRitiMe, continued from page 1
During the LAGCOE Day One Keynote Address,
Steve Thurston, V.P. of U.S. Deepwater Development
at Chevron, detailed some of the company’s latest proj-
ects and future plans for the deepwater Gulf of Mexico
(GOM). More specifically, Thurston focused his pre-
sentation on the area’s Lower Tertiary trend, and the
potential it holds for increased oil recovery and im-
provements in drilling efficiency. The latest informa-
tion from the company’s presence there highlighted the
3,000–4,000-bopd average flowback for the Cascade-
Chinook development, which Thurston said was the
Lower Tertiary’s first system to reach production.
Characterized by complex reservoirs and variable
recovery factors, the Lower Tertiary presents an ex-
pensive, unpredictable drilling atmosphere for any
operator. At Chevron, said Thurston, the company ap-
proaches the area with a so-called “deepwater factory”
system, in which equipment, planning and a standard-
ized process are employed to meet operational goals.
It also does not hurt that Chevron has a fleet of five
sixth- and seventh-generation drillships at its disposal
in the GOM, meaning the sought-after rigs can move
onto exploratory drilling, leaving wells to enter devel-
opment, in the meantime. The company’s upcoming
exploratory campaign, said Thurston, will include the
Buckskin, Moccasin and Coronado developments,
which are now in appraisal.
Several of the other Chevron projects that Thur-
ston mentioned in his presentation, including Jack/
St. Malo, Big Foot and Tubular Bells, all received
their final investment decisions in the middle of the
post-Macondo drilling moratorium, during which the
company gave approval to $17 billion of deepwater
GOM activity. This confidence in the Gulf ’s potential
is underscored by Chevron’s commitment to 31 simul-
taneous, deepwater technology project partnerships,
which may help to increase oil recovery rates in the
region’s Miocene and Lower Tertiary trends.
However, when asked by an audience member,
Thurston said that deep water is not the sole area
of focus for Chevron, with LNG, shale and conven-
tionals still comprising a good part of the company’s
core business. He characterized the deepwater Gulf
as having “unique challenges, with large rewards,” in
addition to large oil-in-place opportunities and sig-
nificant flowrates.
Thurston said that “vision and commitment to de-
velop technology now are essential to achieving suc-
cess in the future,” which falls in line with, what he
called, Chevron’s “Big Seven” for the GOM. The com-
pany hopes to enhance and enable deepwater develop-
ments through improved seismic imaging, increased
drilling efficiency, quality completions, in-well artifi-
cial lift, seafloor pumping technology, optimized.

Chevron pursues deepwater gulf with operational
excellence, technological breakthroughs
Melanie CRUThiRds
Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper day tWo Wednesday, October 23, 2013 
13
Collaborative planning pays off
for norwegian operator’s first subsea completion
MaRTin OliPhanT, Weatherford
Subsea completions of oil and gas
wells, in which the wellhead and signifi-
cant control architecture are located on
the sea floor, have been used success-
fully to improve the economics of off-
shore well development. But, as wells
are drilled and completed in deeper
waters and higher-temperature/high-
er-pressure (HPHT) reservoirs, new
completions solutions are required for
safety and optimized production.
SuBSea coMPLetion
oFFShoRe noRWay
A new operator in the Norwegian
sector of the North Sea needed a solu-
tion for the subsea installation of two
wells at a water depth of approximately
417 ft. The installation represented
the operator’s first subsea completion
in Norway, which requires compli-
ance with some of the most stringent
offshore regulations in the world.
Norway’s Petroleum Safety Authority
(PSA), which oversees technical and
operational safety in Norway’s oil and
gas operations, places special priority
on partners working to reduce accident
risks. The PSA also mandates that ap-
propriate safety barriers are imple-
mented consistently and maintained
over the life of the installation.
Weatherford was chosen to design,
build and install the subsea completion
for two satellite oil wells with 9⅝-in.
mainbore casing, which would be tied
back to a nearby wellhead platform. The
wells would contain connection points
for a production pipeline and con-
trol cable with pipes for hydraulic and
chemical delivery, signal cables, electri-
cal power cables and gas lift.
deveLoPinG oPtiMaL
coMPLetion
Weatherford’s Optimum cased-
hole completion system was selected
for this application. The system is de-
signed to implement various mix-and-
match completion technologies as a
customized solution for the needs of a
given well.
With a thorough review of the reser-
voir conditions, expected production
profiles, and planned operating life of
the wells, Weatherford’s completions
engineers conducted upfront engi-
neering, project planning and prod-
uct development work. This included
comprehensive testing of candidate
components under expected downhole
conditions of temperature, pressure,
load and strain.
Based on this early review and quali-
fication testing, Weatherford and op-
erator staff finalized a fully integrated,
subsea completion system for both
wells. The main components of the
lower completion consisted of:
•  More than 100 5½-in., 20-lb metal-
mesh standalone screens, with an
inflow control device, to regulate
flow and prevent formation sand
from creating localized erosion—
commonly known as a “hot spot”—
on the screen
•  Swellable  packers  to  isolate  differ-
ent producing zones of the forma-
tion and prevent cross-flow in the
event of a pressure differential
•  Liner  packer  hangers  to  take  the 
weight of the tubing string and act
as barriers between the reservoir
and casing.
The upper completion comprised:
•  A 9⅝  5½-in. OptiPkr hydrostat-
ic set, removable production packer
to provide a seal between the out-
side of the production tubing and
the inside of the casing
•  A chemical injection mandrel with 
shear-out valve to deliver chemi-
cals, such as scale and paraffin in-
hibitors, during production and
prevent the need for a later inter-
ventional installation;
•  Two  5½-in.  gas-lift  mandrels,  the 
lower with an orifice valve and the
upper with an unloading valve, as
simulations indicated the wells
would need artificial lift to main-
tain production rates within 12 to
18 months
•  An  Optimax  tubing  retrievable, 
subsurface safety valve (SSV) to
provide positive shutoff protection
in the event of a catastrophic loss
of well control. Per PSA, all wells
operating in the Norwegian North
Sea must have an SSV in place to
contain well-control events and
prevent the release of reservoir flu-
ids to the environment
Next, Weatherford developed a
quality-control plan with the operator,
which documented quality-assurance
requirements for the manufacture, in-
spection and testing of all cased-hole
completions equipment for the wells. It
also detailed every sequence of activi-
ties from manufacturing to the delivery
of equipment, with detailed descrip-
tions of activities, parties responsible
for approvals, reference documents and
acceptance criteria. The document also
captured any operator quality-assur-
ance and control requirements.
inStaLLation PRoceSS
Prior to running any equipment
downhole, all parties responsible for
system deployment met to systemati-
cally review the steps required for safety
and efficiency. This process, known as
a “well on paper,” was repeated several
times over five days to give the engi-
neers a thorough understanding of each
step, and to address potential installa-
tion setbacks.
The installation plan for both wells
began with a pre-job safety meeting
with all personnel. A BOP was installed
and tested to 250 bar with brine at a spe-
cific gravity (s.g.) of 1.03.
The lower completion, consisting
of  102  joints  of  5½-in.  screens  with 
swellable packers spaced between, was
installed. The 9⅝-in. mainbore casing
was prepared for the upper completion
by scraping and pressure testing to 250
bar with a 1.45 s.g. fluid.
The procedure for the upper comple-
tion consisted of running in hole:
•  The  5½-in.  tubing  handling  equip-
ment, spooling units and accessories.
•  A 7-in. seal stem with indexing mule 
shoe  and  a  7-in.  to  5½-in.  cross-
over assembly to a measured depth
(MD) of 3,090 m.
•  One  5½-in.  tubing  joint,  followed 
by a bottom-landing nipple.
•  OptiPkr production packer, includ-
ing a top-landing nipple, followed
by 5½-in. tubing joint.
•  A  downhole  pressure-test  gauge 
mandrel and chemical-injection
mandrel. Separate pressure tests
were conducted on the pressure-
test gauge (517 bar for 10 min), the
fitting between the mandrel’s injec-
tion valve and the control line (345
bar for 10 min) and the control line
(100 bar for 10 min).
•  Gas-lift  mandrel  with  orifice  valve 
and gas-lift mandrel with an un-
loading  valve  and  5½-in.,  17-lb  13 
Cr tubing in between.
•  More  5½-in.,  17-lb  13  Cr  tubing 
according to tally, to ensure correct
SSV depth placement
•  Optimax  SSV,  with  splice  subs 
above and below, followed by a
pressure test of the SSV control line
(690 bar for 10 min). The control
line was pressured up and main-
tained at 400 bar to keep the SSV
open, while running additional tub-
ing in hole.
•  Additional tubing until the tubing-
hanger depth was reached, followed
by a bumper wire anchor sub.
•  A  10¾-in.  X  5½-in.  tubing  hanger 
was then run in hole and landed,
with additional pressure tests from
above and the SSV. The production
packer was set, followed by final
pressure and inflow tests.
SucceSS SPuRS
FuRtheR coMPLetionS
Thorough planning, collaboration,
installation and testing helped ensure
that both completions were installed
efficiently—two days ahead of sched-
ule—with no injuries or recordable
incidents. This success prompted the
operator to use this strategy for future
wells in the field and in the greater
North Sea.

FiGuRe 1
Optimax tubing-retrievable, subsurface safety valve.
FiGuRe 2
OptiPkr hydraulic-set, removable production packer.
FiGuRe 3
North Sea Optimum subsea completion system.
14
 Wednesday, October 23, 2013 day tWo Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper
helical piles are revolutionizing equipment support
KRisTa deese, Magnum Geo-Solutions
Thanks in part to demand and the ris-
ing prices of fuel, there is more drilling,
processing, and refining of oil and gas
going on now in the United States than
there has been in the last two decades.
However, since the last oil boom in the
US occurred over 40 years ago, many
of the pipelines and much of the infra-
structure within refineries and process-
ing plants are aged and need rehabilita-
tion and augmentation to support rising
demands. Installation of new equip-
ment, pumping units, and expansion of
US based oil and gas capability poses
unique challenges for civil and indus-
trial engineers.
Among the challenges faced by en-
gineers today is a need for new and
unique foundation solutions. The noise
and vibrations of driven piles cannot be
tolerated within processing areas. Large
drilling machines that install drilled
shaft foundations often cannot access
areas within refineries. Both pile driv-
ing and drilling machines are expensive
to mobilize to remote mid-stream and
production sites. Processing and pump-
ing equipment are being shutdown and
reset due to the shifting and movement
of shallow foundations. One oil producer
interviewed by the author estimated that
80% of pumping unit shut-downs were
caused by shifting shallow foundations.
There is a need for a reliable, engineered
foundation solution that works in differ-
ent soil conditions for support of oil and
gas equipment.
One of the more promising deep
foundation solutions for support of oil
and gas equipment is the helical pile. He-
lical piles consist of a central steel shaft
with one or more helix-shaped bearing
elements. The entire apparatus is ro-
tated into the ground like a large earth
screw and used to permanently support
new structures and equipment. Helical
piles have been used in construction for
nearly two centuries and were invented
by a civil engineer from Ireland for sup-
port of lighthouses, docks and moorings.
To date, their use in oil and gas has been
scattered and they are not mentioned in
petroleum institute standard practices.
Safe and reliable deep foundations are a
must for oil and gas equipment, and the
helical pile’s effectiveness has caused an
emergence of interest in these devices
and a need for standardized acceptance.
Some of the features that make heli-
cal piles attractive for oil and gas work
include fast installation, lack of drill
cuttings/spoil, use of smaller, more ma-
neuverable installation equipment, avail-
ability and economy. Helical piles are
being used to replace old, deteriorated
wood pile foundations and to augment
existing foundations for support of new
equipment. Other applications include
support of new oil pumping units, pipe-
lines, processing/refinery equipment
and tanks. Helical plies have proven to be
safe and reliable.
A text book published in 2009 by
Perko (Helical Piles: A Practical Guide
to Design and Installation) states that
there are over 50 manufacturers of heli-
cal piles in at least 12 countries on four
continents and thousands of installers
in the US alone. Perko reports that over
100 technical papers and 163 US pat-
ents have been published pertaining to
helical piles. Helical piles appear in the
International Building Code and the
Canadian Foundations Manual. There
now exists a wealth of engineering
knowledge and testing data to support
use of these foundations.
One of the promising applications for
helical piles in oil and gas is re-support of
existing pipelines and equipment inside
refineries and processing plants. A num-
ber of highly successful projects have
been completed whereby helical piles
have been installed inside working refin-
eries to support equipment on deterio-
rated foundations. As an example, helical
piles can be installed on either side of an
existing pipe rack. A spanner beam can
be placed between the piles and support-
ed on a thread bar assembly. The entire
pipe rack can be lifted off existing failed
timber pile systems, elevated to the prop-
er catenary curve, and re-supported with
minimal impact to current operations.
Helical piles have been used for entire
natural gas processing plants and mid-
stream facilities. As an example, helical
piles and steel platforms were used to
support gas compressors and ancillary
equipment at a remote project in West
Virginia. Compressors are commonly
supported on a mass of concrete. Design
of these systems took careful engineer-
ing and peer reviewed by professors from
Colorado State University. The com-
pressors were started without fault and
continue to operate with minimal main-
tenance to date, nearly five years later.
According to the producer, the helical
pile supported platforms saved the com-
pany over $100,000 in construction cost
for each compressor.
Still another promising application
of helical piles is for support of crank
balanced oil pumping units. Magnum
Piering, Inc., an ISO9001 accredited
quality manufacturing company from
Cincinnati, Ohio, has invented a light-
weight manufactured steel platform el-
evated on helical piles for support of oil
pumping units. The entire assembly can
be installed in 1 day and can support a
variety of pumping unit sizes and types.
Installation requires minimal site prepa-
ration and can be done in winter or ad-
verse weather conditions. Helical piles
are sized for local geology and work in
diverse soil and subsurface conditions.
The Magnum system is engineered to
control harmonic motion, limit fatigue,
and reduce the risk of soil shifting and
long-term creep. The platforms have
many convenient features including
NEC standard grounding plate for elec-
trical components, integrated opera-
tor access step, and crane lifting points.
Platforms can be hot-dipped galvanized
or painted according to Oil Company
specifications and color. The platform
can be easily removed and worked over.
The system is ideal on multiple well sites.
To date Magnum reports that nearly
100 pumping units from six different
producers have been supported on their
foundations since introduction of the
system less than a year ago. According
to the company’s chief structural engi-
neer, Mr. Tom Hartmann, PE, most pro-
ducers have ordered five to 10 units for
trial purposes and have been monitoring
them with elevation and harmonic mo-
tion surveys. Those that have monitored
the foundations through a winter/spring
cycle, have been sufficiently pleased by
the performance that they are in process
of switching entirely to these founda-
tions for their operations. Magnum is
anticipating that the use of Magnum’s
patent pending helical pile foundation
system will reduce shut-downs, increase
production, and allow pumps to operate
longer with less maintenance. To date,
survey data has been collected from doz-
ens of sites and has shown that the Mag-
num system is already out-performing
its concrete counterpart.
Helical piles appear to be a sustainable
solution. A benefit of helical pile founda-
tions is efficient use of raw materials.
Combining a slender, yet strong tubular
shaft with larger bearing elements is an
effective method of engaging the soil and
efficiently transferring loads from be-
low ground surface to the above ground
structure with the least use of raw mate-
rials. Being lightweight, helical pile ship-
ping costs are reduced. It has been found
in studies on commercial construction
projects that the use of helical piles can
save as much as 90% in greenhouse gas
emissions. This fact combined with the
unique feature that helical piles can be
removed from ground by unscrewing
and re-used multiple times, makes them
the green alternative for environmentally
conscious oil producers.
Lost in a Louisiana bayou? Helical
piles can be shipped to remote areas.
These piling systems and steel platforms
can be moved with a forklift, hauled
when road weight restrictions are in ef-
fect, and shipped practically anywhere.
Many locations where oil and gas are
being produced do not have satisfactory
concrete and gravel aggregate supplies.
Helical piles can offer a cost saving al-
ternate to more expensive and massive
concrete foundations on improved sub-
grade. The stiffness of steel and support
from deep in the ground makes up for
the mass of concrete required for vibrat-
ing machines.
To get more information about heli-
cal piles, please contact Magnum Piering
at 1-800-822-PIER or by e-mail at engi-
neering@magnumpiering.com.

Western gOM lease sale
yielded $102.4 million
on more than 300,000 acres
The Department of the Interior’s
Bureau of Ocean Energy Manage-
ment (BOEM) held Western Gulf
of Mexico Lease Sale 233, which
offered 20.7 million acres and at-
tracted $102,351,712 in high bids
for 53 tracts covering 301,006 acres
on the U.S. Outer Continental Shelf
(OCS), offshore Texas. A total of 12
offshore energy companies submit-
ted 61 bids.
The Western Gulf of Mexico Lease
Sale builds on the first two auctions
in the current Five Year Program.
The sale offered all unleased and
non-protected areas in the Western
GOM planning area, including 3,864
tracts from nine to more than 250 mi
off the coast, in depths ranging from
16 to more than 10,975 ft. BOEM
estimates the lease sale could result
in the production of 116 to 200 mil-
lion bbl of oil, and 538 to 938 billion
cubic feet of natural gas.
Sale 233 was the third held under
the Outer Continental Shelf Oil and
Gas Leasing Program for 2012–2017
(Five Year Program), which makes
available for exploration and devel-
opment all of the offshore areas with
the highest conventional resource
potential. Together these tracts in-
clude more than 75% of the nation’s
undiscovered, technically recover-
able offshore oil and gas resources.
The highest bid on a single tract
was $30,583,560 submitted by Con-
ocoPhillips for Alaminos Canyon
Block 475. ConocoPhilips also sub-
mitted the highest total amount in
bonus bids, totaling $50,323,180 on
29 tracts.
Shell bid on one block and was
the apparent high bidder on Alami-
nos Canyon Block 772, with a bid of
$4.2 million as part of it plans for fu-
ture Perdido development.

neWs in BRieF
Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper day tWo Wednesday, October 23, 2013 
15
Frac tank floating covers for aboveground storage
Proper engineering and construction
of tanks used in horizontal drilling and
hydraulic fracturing processes is a critical
issue for the future of oil and gas produc-
tion. One element of containment that
must be considered is frac tank floating
covers, FiG. 1, which aide in overall all
containment, evaporation control and
protection of avian wildlife, among other
things. Colorado Lining International
(CLI) now offers cost-effective thermal
and evaporation control frac tank floating
covers for aboveground storage tanks in
oilfield applications.
Patent-pending tethering and ballast
systems. A new, innovative tethering
mount system has been introduced that
is designed to function in vertical walled
tanks, or containment structures that can
be circular, rectangular or irregular in
shape. The design’s purpose is to main-
tain flexible or semi-rigid floating cover
systems in their proper orientation. The
system provides the maximum coverage
over the contained media fluid, while
helping prevent wind uplift and displace-
ment by wind, or other forces, which may
be applied to the cover.
The entire cover and tethering system
is low-cost and the reusable hardware re-
duces cost over time for successive tank
sets, which would require only cover
membranes and minimal additional con-
sumables. The tethering technology re-
strains cover movement and rotation in
high winds, while allowing vertical cover
displacements, when water is pumped
into or out of the containment. With
this system, production on most cover
membranes can be made in just one or
two panels, allowing for fast installation.
A patent-pending perimeter cover ballast
system helps prevent wind uplift, allow-
ing for the use of light-weight, high-per-
formance insulated panels.
Pond, pit and impoundment liners. Custom-
sized panels, which eliminate up to 80% of
field seams, offer guaranteed quality and
speedy construction in the field. Trained
and certified field service crews all, with
the proper health and safety training, are
there to meet your specific needs.
Mobile water impoundments. The aboveg-
round storage systems are designed for
multiple sets, and are easy to install and re-
move. They are highly visible and require
very little excavation, offering rapid leak
detection and, often, less-complicated
secondary containment. The panel fabri-
cation and production is done in climate-
controlled factories, providing high-quali-
ty, certified seams that save both time and
money in the field. CLI recommends the
use of reinforced lining materials for this
type of application. With vertical wall sys-
tems, such as those found in mobile wa-
ter impoundments, the reinforcing scrim
adds tremendous strength and durability
to the wall sections of each panel.
Secondary containment and coating ma-
terial support. CLI recognizes the im-
portance and necessity of regulation
for environmental safety specific to this
trade. Secondary and spill containment is
critical for oil and gas. CLI has a trusted
reputation with geomembrane systems
for secondary containment, and is evolv-
ing with the industry. The company now
offers spray-on liner and coatings, as an
alternative and/or support to geomem-
brane systems. Coatings include LVOC
and solvent-free options, making them an
even better choice for the environment.
Coatings are easily installed, and cure and
dry quickly. They can be specified and
designed as part of a multilayer system to
meet specific regulations.
Floating covers for pits and frac tanks.
With one of the best technical groups in
the market, CLI has been able to offer in-
novative solutions to the floating cover
market in the oil and gas industry. CLI
has utilized its experience in gas collect-
ing systems for agriculture to provide
cost-effective cover systems that are de-
signed and engineered for long-term use
in oil and gas applications, like produced
water cover systems.
a belief in superior training and certification.
CLI remains a family owned and oper-
ated company that was founded in 1978
in Parker, Colo., and is a certified fabrica-
tor and installer of quality geomembranes.
The company has grown from a small,
four-person fabrication crew, to an indus-
try leader in solving complicated contain-
ment issues, with turn-key geosynthetic
services for many industries, including oil
and gas. The company has more than three
decades of service, and has fabricated and
installed more than 800 million sq ft of
geomembranes and specialty materials.
CLI credits an experienced, dedicated
and well-trained team with its success and
adheres to Safeland USA, ISNetworld and
PEC Premiere Standards. The company’s
in-house quality control programs for fac-
tory and field seam testing follow strict
ASTM standards that meet or exceed all
industry standards. CLI is an IAGI-cer-
tified installation contractor, and is dedi-
cated to training and certifying its welding
technicians through the Certified Welding
Technician Program. The company can be
reached by phone at 1 (800) 524-8672, or
online at www.coloradolining.com.

FiGuRe 1
Colorado Lining International’s frac tank floating covers
offer cost-effective thermal and evaporation control 
for aboveground storage tanks in the oil field.
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 Wednesday, October 23, 2013 day tWo Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper
haynesville-Bossier shale: signs of life starting to emerge
JiM Redden
Ragan Dickens counsels those ready
to wrap a “Rest in Peace” wreath around
the once-venerable Haynesville-Bossier
shale, to look well beyond its current ill
health. “It’s not going to return tomor-
row, but we have stability for the long
term,” says Dickens, North Louisiana
director of the Louisiana Oil and Gas As-
sociation (LOGA).
While a recovery of the Haynesville-
Bossier to anywhere near its vigor of yes-
teryear is unforeseeable, signs of life are,
nevertheless, starting to emerge in the
predominately dry gas play that stretches
some 9,000 sq mi across northern Loui-
siana and East Texas. This time last year,
the technically daunting Haynesville was
clinging to life with very feeble fingers.
Formerly hyperactive players were either
suspending drilling operations, or writ-
ing down assets that were seen as being
on the downside of commercial attrac-
tiveness. Today, both new well, and rig,
counts have increased, albeit modestly,
and while no one is forecasting a return
to the halcyon days of double-digit gas
anytime soon, prices are inching upward.
But, more importantly, prices have stabi-
lized to a degree, spawning a manufactur-
ing renaissance along the Gulf Coast, as
companies seek to take advantage of the
plentiful, and inexpensive, gas reserves in
their backyard.
Meanwhile, barely a fraction of the
more than 75 Tcf of technically recover-
able gas reserves, that the U.S. Energy In-
formation Agency (EIA) estimates resides
in the Haynesville, have actually been put
into the production stream. Consequent-
ly, operators with sufficient resources are
taking Dickens’ advice to heart and using
the play as an in-ground savings account,
by bolstering reserve bases that can quick-
ly be sent to the pipeline, once the price
reaches an acceptable level.
“We look at the Haynesville as a swing
field for us, in terms of our ability to go
ahead and increase capital spending,” said
Rod Skaufel, president of North Ameri-
can Shale for BHP Billiton Petroleum.
“We like the Haynesville, but, with the
current gas prices, we have no driver to
maintain activity any higher than we are
now. As long as we continue to hold good
liquids-rich opportunities in our portfo-
lio, when things [gas prices] switch, we
want to be in a position to go full throttle.
We probably have the best acreage posi-
tion in the heart of the Haynesville, so we
have good economic opportunities now.
But, if there’s an increase in gas prices, we
can go to the Haynesville and have really
good economic opportunities.”
BHP Billiton is operating five rigs in
its core Haynesville Louisiana acreage,
up one from the average it was running
last year. However, despite the few rigs,
the operator plans to drill more Haynes-
ville wells this fiscal year, which Skaufel
attributes to the improved per-rig effi-
ciencies achieved over the past year.
EnCana, which suspended drilling
operations last year, likewise will run up
five rigs this year. “There was a time, they
were so low it couldn’t be profitable,”
a company spokesperson told LOGA.
“But, gas has come up, and we are, and
continue to be, a low-cost producer.
We’ve become so good at what we do,
we’ve been able to keep supply cost low,
so that has really helped us.”
WeLL, RiG countS on the uP
Baker Hughes’ latest well, and rig,
counts show slight increases in both cat-
egories, with 112 new wells drilled in
the Haynesville in the second quarter,
compared to 109 in the same period last
year. Meanwhile, as of Sept. 17, a total of
39 rigs were making hole in the Louisi-
ana and Texas sectors, up one from the
same period last year. Of those, 21 are
drilling in the East Texas portion of the
play, primarily comprising Harrison, Na-
cogdoches, Rusk, Panola, San Augustine
and Shelby counties, where the Haynes-
ville is part of some operators’ legacy
fields that yield a quantity of liquids, as
opposed to the gassy Louisiana sector,
FiG. 1. The remaining 18 rigs are active
in the Louisiana Haynesville fairway, an
area that primarily encompasses Caddo,
DeSoto, Red River and Sabine Parishes.
Unsurprisingly, despite the moder-
ately higher well, and rig, counts, gas
production continues to slide. As of July,
the Louisiana Department of Natural
Resources (DNR), the state’s oil and gas
regulator, estimates that operators pro-
duced 166.88 Bcf from its Haynesville-
dominant northern district, compared
to the 221.57 Bcf produced by July 2012.
Across the border, the latest data avail-
able from the Railroad Commission of
Texas (RCC) show a similarly expected
decline in gas production, which is offset
by an increase in liquids output. Produc-
tion figures from RCC District 6, which
includes the core, six-county Haynes-
ville sector, showed dry gas production
of 597.09 Bcf between January and July,
down year-on-year from the 681.85 Bcf
produced in the same period last year.
However, the most recent District 6 liq-
uids production increased to just over
9.14 MMbbl of oil and condensate, com-
pared to slightly more than 9.0 MMbbl
for the first six months of last year.
Going forward, new authorized drill-
ing permits are down for both Texas and
Louisiana. In the former, the RCC is-
sued 318 new permits in the six-county
Haynesville area between January and
Sept. 18, compared to 428 issued over the
same eight months last year, FiG. 2. While
the DNR does not break out permits for
the core Haynesville, the Louisiana regu-
lator issued 904 onshore drilling permits
in the state, as of July, down from 957 au-
thorized in the same 2012 timeframe.
ReducinG coStS, unceRtaintieS
The Upper Jurassic Haynesville shale
directly overlies the Smackover lime-
stones, and is unconformably overlain
by the prospective, but lightly explored,
Lower Bossier sandstones of the Cotton
Valley group. Ranging in thickness from
150 to 300 ft, the Haynesville is unique
to North American shales, in that access
requires wells from 10,000 to 14,000 ft,
TVD. At this depth, bottomhole tem-
peratures can soar as high as 350°F, and
pressure gradients of 0.85 to 0.93 psi/ft
can send wellhead stimulating treatment
pressures past 10,000 psi.
Although Haynesville wells have re-
corded some of the highest flowrates
of all the unconventional plays, with
enviable per-well, estimated ultimate
recoveries (EUR), the downhole chal-
lenges also make them among the most
expensive. Accordingly, when gas prices
nose-dived, the economic margins in
the Haynesville went with them. Little
wonder then, that reducing well costs has
been the top priority for operators with
rigs in the Haynesville.
Prolific Haynesville player EXCO
Resources touted its cost reduction pro-
gram during its second-quarter earnings
release. “Our cost reduction and effi-
ciency program is delivering positive re-
sults. We continue to see improvements
in drilling times, stimulation costs and
FiGuRe 2
Wells completed and permitted in the East Texas Haynesville 
shale, as of September (source: Railroad Commission of Texas).
FiGuRe 3
As symbolized by this image, the question of how best to optimize frac design is a vital issue. The image shows a 7-well 
pad, using Valveworks USA’s API 6A frac valves, in the Haynesville (photo courtesy of Valveworks USA).
Anderson
Angelina
Bowie
Camp
Cass
Cherokee
Delta
Franklin
Gregg
Harrison
Henderson
Hopkins
Houston
Jasper
Lamar
Marion
Morris
Nacogdoches
Newton
Panola
Polk
Rains
Red River
Rusk
Sabine
San
Augustine
San
Jacinto
Shelby
Smith
Titus
Trinity
Tyler
Upshur
Van
Zandt
Walker
Wood
Choctaw
Latimer
Le Flore
McCurtain
Pittsburg
Pushmataha
Allen
Avoyelles
Beauregard
Bienville
Bossier
Caddo
Caldwell
Claiborne
De Soto
Evangeline
Grant
Jackson
La Salle
Lincoln
Natchitoches
Ouachita
Rapides
Red
River
Sabine
St. Landry
Union
Vernon
Webster
Winn
Ashley
Bradley
Calhoun
Clark
Cleveland
Columbia
Dallas
Garland
Grant
Hempstead
Hot Spring
Howard
Je￿erson
Lafayette
Little River
Lonoke
Miller
Montgomery
Nevada
Ouachita
Perry
Pike
Polk
Pulaski
Saline
Scott
Sevier
Union
Yell
Legend
Not in Haynesville formation
In Haynesville formation
Louisiana
Texas
Arkansas
Oklaoma
FiGuRe 1
An overview of the Haynesville-Bossier shale.
One of the five rigs drilling in BHP Billiton Petroleum’s core Haynesville shale acreage (photo courtesy of BHP-Billiton Petroleum).
Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper day tWo Wednesday, October 23, 2013 
17
overall capital efficiency. Our current
DeSoto Parish well costs are averaging
approximately $7.7 million per well,” the
independent stated.
EnCana says that maximizing ultimate
reservoir drainage, by increasing laterals
from an average of 7,100 ft to 10,000 ft,
has delivered noticeable improvements
in ultimate economics, particularly in its
wells in Red River and DeSoto parishes.
“We’re just getting better. We continue
to advance our completion optimization
and our resource play up. We are able to
capture more of the resource that we did
before,” a spokesperson said.
Operators say one of the drawbacks to
fully optimizing efficiencies, and in turn
costs, in the Haynesville is the myriad
geological unknowns that remain, despite
the flurry of drilling activity in the play’s
heyday, when gas prices were at some of
their highest levels. Haynesville pioneer
Chesapeake essentially kicked off the play
in March 2008, which sparked a frenzy of
drilling activity that led to the construc-
tion of more than 2,400 wells. However,
LOGA’s Dickens and others say those
wells represent only around 25% of the
resources remaining, which bodes well
for long-term supply, but also presents a
host of geological uncertainties.
“With our acreage position, we can
drill very economical wells there, even
with today’s gas prices,” says BHP Billi-
ton’s Skaufel. “But, we want to continue
activity there in order to build up our
technical understanding, namely how
do you optimize your frac completions,
what spacing do you drill the field on,
and is there any Bossier potential above
the Haynesville? There are a lot of unan-
swered questions in the Haynesville, and
given our position, we want to continue
to answer those questions. Then, as gas
prices recover, and we decide to shift
back to gas, we’ve worked through those
questions and can really execute on the
development of a field. Once we resolve
these uncertainties, when we decide to
go full force from a development point of
view, we can really bang it out.”
Skaufel said well spacing remains
one of the primary uncertainties in the
Haynesville, noting that the majority of
sections presently hold only one, or two,
wells, each. According to Skaufel, BHP’s
base development plan calls for six wells
per section which, given the natural frac-
turing in the Haynesville, may or may not
be appropriate. “There hasn’t been enough
work from an empirical standpoint,” he
said. “We need to drill a lot of wells with
different spacing to determine the level of
interference, as well as the interaction be-
tween spacing and frac design.”
“The frac design is probably where the
biggest opportunity exists in all the shale
plays, in terms of maximizing the stimu-
lated rock volume,” he added. “Again,
for us, how to optimize the frac design
(FiG. 3) is a question that is unanswered
at this point, and one of the reasons we’re
maintaining activity there.”
While some consider the Haynesville,
and the overlying Bossier, one and the
same, they are two distinct formations.
While the Bossier, which can range in
thickness up to 1,000 ft, has been evaluat-
ed to a degree, Skaufel said too few wells
have been drilled to get a reasonable fix
on its potential. “A great deal of trial and
error, and empirical results, goes into the
shale plays, and with so few wells having
been drilled in the Bossier, there is very
little control. So, when you look at well
results, you simply don’t know if you’ve
had any frac optimization. Our activity
is focused on the Haynesville, but the
Bossier is on our minds.”
In the meantime, Skaufel said pres-
ent-day well efficiency and economics
have been enhanced considerably with a
changeover to the new-generation H&P
Flex Rigs. “We’re learning how to really
use the efficiency of these rigs to drive
our costs down. Early results show that
we’re drilling wells significantly faster
with these flex rigs,” he said. “Overall,
we just want to maintain an activity level
that, first, allows us to learn in terms of
how to drill these wells at less cost, but
secondly, on the completion side, how
can we get more gas per dollar invested.”
Key oPeRatoRS StiLL dRiLLinG
The slightly improving fortunes of the
Haynesville play are reflected in the ac-
tivity levels planned by some of the core
players and major asset swaps.
BhP Billiton Petroleum
holds 239,000 net
acres in the core of the Haynesville, all of
which is held by production (HBP).
The
operator plans to drill 35 gross-operated
wells in FY 2014 with five rigs, compared
to the 24 wells it drilled in FY13 with an
eight-rig program.
encana
resumed drilling operations this
year, with seven wells completed in the first
half of the year on the 218,000 net acres
that it holds in northern Louisiana and East
Texas, FiG.
4. So far this year, the Cana-
dian operator has drilled 14 wells, with
an additional 11 planned. “We have been
successful over time at creating greater ef-
ficiencies that allow us to profitably drill
in the Haynesville, even in a low-price en-
vironment,” a company spokesman said.
Second-quarter gas production
dropped to 375 MMcfd, compared to the
418 MMcfd recorded in the same period
last year.
exco Resources
closed on the acquisition
of approximately 9,600 net acres, in DeSo-
to and Caddo parishes, formerly held by
Chesapeake in July, FiG. 5.
Upon finaliza-
tion of the sale, EXCO CEO Doug Miller
said, “We are executing our strategy of
acquiring assets in both our existing core
areas and strategic new plays. Our recent-
ly announced acquisition in the Haynes-
ville shale fortifies our leading position in
that area.”
EXCO, which held 123,600 net acres
in the Haynesville before the acquisition,
reported its operated gross gas produc-
tion reached 971 MMcfd in June, while
non-operated production added 302
MMcfd. The Dallas-based independent
operated three rigs in the second quar-
ter and completed 15 gross wells. EXCO
said it plans to continue running three
rigs and drill 26 gross wells this year.
chesapeake,
which suspended drilling op-
erations last year, has released no informa-
tion on any activity planned on its remain-
ing Haynesville acreage during 2013.
anadarko Petroleum corp., which oper-
ates in the East Texas Haynesville sector,
is running seven rigs, targeting prospec-
tive liquids in both the Haynesville and
Cotton Valley formations. Anadarko’s
East Texas net sales volume in the sec-
ond quarter was nearly 56,000 boed, a
54% increase over second-quarter 2012.
Anadarko said its acreage holds more
than 300 million BOE of net resources
and 450 identified drilling locations.
Freeport-McMoRan copper & Gold inc.
entered the Haynesville in late May with
its acquisition of Plains Exploration and
Production Co. which, at the time of
the buyout, held 84,000 net acres. The
acquired properties produced 134,200
Mcfed in the first quarter, with 11,000
identified drilling locations remaining.
The $16.3-billion transaction preced-
ed Freeport-McMoRan Copper & Gold’s
late June acquisition of McMoRan Ex-
ploration Co. No information has been
made available on 2013 drilling plans for
the newly acquired properties.
MaRKet ReLieF in oFFinG
This time last year, much of the buzz
centered on plans for three LNG export
facilities in various stages of approval,
and development, along the Louisiana
coast. While some hoped the facilities
would take a significant chunk out of the
supply glut, the sanctioned export vol-
umes will barely make a dent in overall
production, and even then, LNG will not
start flowing from the Gulf Coast until
2015, at the very earliest.
The real potential game-changer, most
say, is the surge in new gas-driven manu-
facturing facilities in Louisiana that have
been announced recently. Over the past
year, more than $62.3 billion in capital
investments has been released for new
manufacturing facilities in Louisiana,
which are planned to take advantage of
the abundant, and inexpensive, gas sup-
ply, said David Dismukes, professor and
associate executive director of the Loui-
siana State University (LSU) Center for
Energy Studies. Dismukes was the author
of the study “Unconventional Resources
and Louisiana’s Manufacturing Develop-
ment Renaissance,” which was released in
January. It was co-sponsored by LOGA
and American’s Natural Gas Alliance.
Along with the LNG facilities, Shell
and Sasol have announced plans to build
separate gas-to-liquids plants in Louisi-
ana, while Sundrop Fuels is constructing
a plant near Alexandria, to produce what
it calls “green gasoline.”
In late September, Shell said it had
selected a site in Ascension Parish for a
proposed $12.5-billion gas-to-liquids
(GTL) plant that would produce diesel,
jet fuel and other liquids. As the project
has not yet received final sanction, Shell
has given no timeline on when it could
be completed and in operation.
“Today’s announcement (Sept. 24) is
a historic new opportunity for Shell to
potentially expand its manufacturing op-
erations onshore in a world-class, gas-to-
liquids facility in Ascension Parish on the
Mississippi River,” Louisiana Governor
Bobby Jindal said in a statement. “Here in
the heart of Louisiana’s world-scale petro-
chemical industries, the Gulf Coast GTL
project would give thousands more of our
people an opportunity for a rewarding ca-
reer right here at home.”
In a press release announcing the pro-
posal, Shell said that if the GTL plant
receives final approval it would create at
least 740 direct and 3,900 indirect jobs.
Estimates from Louisiana State Univer-
sity have the project delivering an eco-
nomic impact of $77.6 billion over the
construction period and its first 15 years
of operation.
Owing to the potential economic
impact, Louisiana offered Shell an in-
centive of $112 million, according to a
state news release. “The State of Loui-
siana offered Shell a competitive incen-
tive package that would include a per-
formance-based grant of $112 million to
reimburse costs associated with neces-
sary public road improvements, land ac-
quisition and other infrastructure costs,”
the state said.
Elsewhere, German steelmaker Ben-
teler Steel/Tube broke ground, in Sep-
tember, on a $975-million, hot-rolling
seamless-tube mill in Caddo Parish, its
first in the U.S. The plant is expected to
be completed by the end of the next year.
In November, steelmaker Nucor
Corp. entered into a long-term agree-
ment with Encana for an onshore U.S.
gas drilling program. The agreement,
which does not specifically target the
Haynesville, calls for the manufacturer
to pay a share of the drilling costs. Nucor
said the agreement ensures “we will en-
sure a reliable, low cost supply of natural
gas for our existing and expected future
needs for more than 20 years.”.

FiGuRe 4
An Encana location, prior to suspension of Haynesville 2012 drilling activity (photo courtesy of Encana Corp.).
16N
12W
16N
13W
16N
14W
15N
12W
15N
12W
15N
14W
13N
12W
13N
13W
13N
14W
De Soto core
De Soto
15N
15W
CHK op deal
EXCO op deal
EXCO lease hold
13N
15W
FiGuRe 5
Overview of the 9,600 Haynesville acres that EXCO 
Resources acquired from Chesapeake this summer
(map courtesy of EXCO Resources Inc.).
18
 Wednesday, October 23, 2013 day tWo Louisiana Gulf Coast Oil Exposition 2013 Show Daily NewSpaper
sCenes FROM lagCOe 2013
Shannon McLeod, LiLy McLeod and david KniGht look over the oil rig ice sculpture.
Baker Hughes has assembled a knowledgeable team for LAGCOE, including eRneSt J. PothieR, toM LeBLeu
and RoWnie noRthcuLt.
the nouveau StRinG Band provided music
for the assembled masses.
King Oil/GEFCO’s team takes a break: MiKe RaaG, LLoyd Savoy, Ron LandWehR and JeFF WRiGht.
Stacy eSteS, iRMa FundeRBuRK,
JenniFeR PaLLadina and LindSey RaGGin
had a lively discussion at the exhibitor’s party. 
In the GHX booth, JeSSie LeBLanc tells a hunting story to fellow LAGCOE attendees RichaRd daiGLe,
Joe deRzaPF and Steve nation.
aLFRed J thoMaS ii (LAGCOE Looey) is seen with LAGCOE board members KiRBy aRceneaux,
Steve MaLey and Kenny cRouch at the exhibitor’s party. 
The team from WeLLhead diStRiButoRS inteRnationaL gathers around the company’s
CSS Frac Stack. Tim Greer is leading the company’s operation here at the show.
coRtec’S booth on the floor of the Cajundome was a hive of activity on Tuesday.
Brenda Stelly (center) has assembled a dedicated group to represent oiL centeR ReSeaRch inteRnationaL.
We graciously thank our
employees, investors,
and customers for
helping us achieve
75 years in business
Keith Mosing, Chairman & CEO
Frank’s International
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