Royal Well Servicing Ltd. has two locations in Alberta that provide oil well workover services for large and small oil companies alike.
Although the Alberta oil and gas market has seen busier days, Lloydminster, Alberta-based Royal Well Servicing Ltd. is keeping its head up by providing good, honest work, President Ken Parohl says. At its peak, the company provided oil well workover services to six to eight oil wells every day and a half, but today, the company works on about 10 to 12 per week.
Royal Well Servicing provides such services as pulling downhole equipment out of wells to clean the sand and other debris out before putting them back into production. Parohl says the company also performs remedial workovers, such as abandoning and recompleting oil and gas wells.
“We just provide a good service to our customers,” Parohl states. “We try to supply good services, and we treat our employees well. We have excellent people and excellent newer equipment.”
Royal Well Servicing also has a location in Peace River, Alberta, and it works for small and large oil companies. Parohl estimates that his company has about five bigger competitors in Lloydminster, but its hard work and top-notch services attract clients of all sizes.
“There are about 20 different oil companies in town, and we’ll probably work for the majority of them sooner or later,” he says.
‘Going with the Flow’
As is common in today’s struggling economy, Canada’s oil and gas market is an ever-changing one, and Parohl says Royal Well Servicing is willing to be patient and wait out the storm. “We’re just going to tighten the belt, and we won’t spend as much, and we’ll watch things closer,” he notes. “We try to do more in-house repairs and things like that.”
The company also is being patient with changes in labor and pricing. “Probably the biggest challenge right now is the competitive pricing,” Parohl says. “Right now, we’re just kind of going with the flow.”
Parohl founded Royal Well Servicing Ltd. in 1997 with just two rigs, but since has increased his fleet to 12. The company was founded in Turtleford, Saskatchewan, but moved its headquarters to Lloydminster in 2000. Its Peace River operations opened the doors around 2005, Parohl says.
Optimistic Outlook
Although the Alberta oil market is struggling today, Alberta Oil Magazine foresees a huge rebound in coming years. A major target for future drilling will be the Grosmont Carbonate, which some industry experts compare to the Ghawar Carbonate – the world’s richest oilfield, located in Saudi Arabia. Grosmont Carbonate is 55 kilometers wide and 225 kilometers long, which is roughly the same shape and size as Ghawar Carbonate.
“Current estimates of the Alberta formation peg its total bitumen content at 318 billion barrels,” the magazine notes. “The amount that could be produced with currently conceivable technology is projected to be 100 billion barrels. Since there is no Grosmont production yet, its colossal potential is left out by official calculations of established oil sands reserves as 170 billion barrels of bitumen, the world’s second-biggest supply after the Saudi endowment.”
Later this year, oil sands developer Laricina plans to start proving that its target formation deserves to be recognized by completing a pilot plant for extended production trials of 1,800 barrels per day, Alberta Oil Magazine notes.
Periodic experiments have been conducted at Grosmont Carbonate since 1979, and industry experts note that if the reserve is officially recognized, Alberta reserves would be greater than those in Saudia Arabia. The province potentially holds one-fifth of the world’s oil supply.
Prime Partnerships
Royal Well Servicing maintains close relationships with its partners to offer its clients successful projects. The company works with Sabre Machining and C-Tech Oilwell Technologies to provide top-notch services.
Lloydminster-based Sabre Machining offers custom machining and design services such as CNC production machines, downhole tool manufacture and repair, rig repairs and gas compressor machining repairs.
Edmonton-based C-Tech Oilwell Technologies is an oilfield technology, development, sales and services company that says it is dedicated to developing coiled rod technology and products and bringing those to market. The company is owned by Dover Corp. and operates under the energy products group of Dover’s fluid management market.
“C-Tech’s expertise in these areas has provided the company with a solid western Canadian market share as it expands awareness of its offerings to new customers,” the company explains. “Value to the customers is provided through C-Tech’s commitment to quality, service, innovative ideas and effective execution. C-Tech also is committed to growth both internally and through complementary business acquisitions.”
To provide the best products, C-Tech has full design services on site, and the products receive third-party verification by qualified engineering professionals. The company has a steel fabrication shop that has more than 21,000 square feet of space, 12 bays with 30-foot ceilings, 10- and 5-ton cranes and a 7-acre rig-up yard.
“C-Tech’s technical expertise and facilities ensure the production of quality products that are manufactured to customer’s individual specifications,” the company states.
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