
The core business of CES is to design and implement drilling fluid systems for oil and natural gas producers. CES operates in the Western Canadian Sedimentary Basin (“WCSB”) and in various basins in the United States (“US”), with an emphasis on servicing the ongoing major resource plays. The drilling of those major resource plays includes wells drilled vertically, directionally, and with increasing frequency, horizontally. Horizontal drilling is a technique utilized in tight formations like tight gas, tight oil, heavy oil, and in the oil sands. The designed drilling fluid encompasses the functions of cleaning the hole, stabilizing the rock drilled, controlling subsurface pressures, enhancing drilling rates and protecting potential production zones while conserving the environment in the surrounding surface and subsurface area. CES’ drilling fluid systems are designed to be adaptable to a broad range of complex and varied drilling scenarios, to help clients eliminate inefficiencies in the drilling process and to assist them in meeting operational objectives and environmental compliance obligations. CES markets its technical expertise and services to oil and natural gas exploration and production entities by emphasizing the historical success of both its patented and proprietary drilling fluid systems and the technical expertise and experience of its personnel.
CES’ head office and the sales and services headquarters are located in Calgary, Alberta and its stock point facilities and other operations are located throughout Alberta, British Columbia, and Saskatchewan. Moose Mountain Mud, a division of CES located in Carlyle, Saskatchewan, was formed in 2004 to enhance sales of drilling fluid systems to exploration and production entities in southeast Saskatchewan. Due to a focus on strong local relationships, proprietary drilling fluid products and effective inventory management, Moose Mountain Mud has become a significant component of CES operations.
CES’ indirect wholly-owned subsidiary, AES Drilling Fluids, LLC (“AES”), conducts operations in the United States from its head office in Denver, Colorado and in the mid-continent and Marcellus shale regions through its Champion Drilling Fluids division headquartered in Norman, Oklahoma. AES has stock point facilities located in Oklahoma, Texas, Pennsylvania, Colorado, North Dakota and Utah.
Clear Environmental Solutions (“Clear”), CES’ environmental division, provides environmental and drilling fluids waste disposal services primarily to oil and gas producers active in the WCSB. The business of Clear involves determining the appropriate processes for disposing of or recycling fluids produced by drilling operations and to carry out various related services necessary to dispose of drilling fluids.
Equal Transport (“Equal”), CES’ transport division, provides its customers with the necessary trucks and trailers specifically designed to meet the demanding requirements of off-highway oilfield work, and trained personnel to transport and handle oilfield produced fluids and to haul, handle, manage and warehouse drilling fluids. Equal operates from two terminals and yards located in Edson, Alberta and Carlyle, Saskatchewan.
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