Operations

Servicing the North American oil and natural gas industry, CES is a leading provider of technically advanced consumable chemical solutions throughout the life-cycle of the oilfield. This includes total solutions at the drill-bit, at the point of completion and stimulation, at the wellhead and during production, and finally through to the pipeline and midstream market. The Corporation’s two core businesses are drilling fluids and production and specialty chemicals which combined represent over 90 percent of the Corporation’s current revenue stream. The drilling fluids business implements drilling fluid systems for North American based oil and natural gas producers. The production and specialty chemicals business designs and manufactures a complete line of production specialty chemicals for use in both the North American oil and natural gas industry and for specific industrial applications. Headquartered in Calgary, Alberta, Canada, CES has operations in western Canada servicing the entire WCSB and has operations in twenty states in the US, where the Corporation is active in the major US basins.

The Corporation’s integrated business is organized as follows:

Core Business: Drilling Fluids

The Corporation’s drilling fluids business operates throughout North America. CES earns revenue when it sells a drilling fluid system to a customer, typically an Operator. In advance of the sale of the drilling fluid system, CES works collaboratively with the Operator to design a drilling fluid system that will clean the hole, stabilize the rock drilled, control subsurface pressures, enhance drilling rates, and protect potential production zones while conserving the environment in the surrounding surface and subsurface. The Corporation has an extensive product line with several proprietary drilling fluid solutions suitable for all of the onshore and shallow water off shore oil and natural gas drilling currently being done in the North America.

Core Business: Production and Specialty Chemicals

The Corporation’s production specialty chemicals business operates in the US and in the WCSB, with an emphasis on servicing the major oil and natural gas liquids resource plays. The Corporation’s Jacam Catalyst division manufactures and sells both retail and wholesale, a complete line of production and specialty chemicals designed for both the oil and natural gas production and industrial markets. The Corporation’s PureChem division designs, blends, and sells specialty drilling fluids for the drilling fluids business and designs, blends, and sells stimulation and production chemicals for oil and gas producers in the WCSB.

Complementary and Supporting Businesses: Environmental and Transport

CES provides environmental and drilling fluids waste disposal services to Operators active in the WCSB through its Clear Environmental Solutions (“Clear”) division. The business of Clear involves environmental pre-site assessments; 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.

CES provides trucks and trailers specifically designed to transport drilling fluids to Operators active in the WCSB through its Equal Transport (“Equal”) division. The business of Equal is to provide 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.