Brian Zinchuk is editor and owner of Pipeline Online
Here’s the derrick for a Rawhide Energy rig. Rawhide Energy
By Brian Zinchuk
ESTEVAN – While on an energy tour in mid-October, Pipeline Online told Saskatchewan’s ministers of energy and environment that no one has built and deployed a new drilling rig in Saskatchewan since 2015.
It turns out, that is no longer the case. Derrick Big Eagle, founder of Eagle Drilling Services, and Jason Geysen are back in the drilling game, and are about to start up a new drilling company in this province.
After over a decade during which dozens of rigs have been cut up, this is the first instance of new capitalization in Saskatchewan’s drilling rig fleet, a sign of hope after over a decade of darkness.
The company will be known as Rawhide Energy LTD, based in the Carlye area.
Big Eagle said, “The name Rawhide Energy reflects the strength and durability of rawhide leather. Our rigs are designed with those same qualities in mind. They can accommodate emerging technologies and evolving industry requirements, and we have increased their horsepower and structural capacity to support future energy-drilling projects in Saskatchewan.”
He continued, “Rawhide Energy will follow the principles established by its predecessor, Eagle Drilling Services (EDS). Founded in 2005 to serve the newly discovered Bakken play, EDS introduced a class of rig with greater horsepower, heavier components, longer reach, higher safety standards, and more worker-friendly equipment. Before its sale to publicly traded CanElson Drilling in late 2010, EDS achieved the highest utilization rate among Canadian drilling companies for five consecutive years. During that period, it drilled approximately 500 wells in southeastern Saskatchewan, ranging from the region’s shallowest to its deepest and including exploratory potash, oil and gas, saltwater-disposal, and re-entry wells.”
Indeed, Pipeline News, predecessor to Pipeline Online, ran many stories during that time about how Eagle Drilling Services was running close-to, and sometimes full utilization amongst its eight rigs.
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This took place in an era when oil prices hovered around the US$100 mark for West Texas Intermediate. And at the time of writing, WTI was trading for US$100.80. Energy analyst for the MacDonald-Laurier Institute Heather Exner-Pirot told the Lloydminster Oil Show in mid-September it’s looking like we’re going into a commodity supercycle. And Big Eagle just happened to launch EDS in time for the last supercycle.
Big Eagle said, “EDS succeeded because our employees treated the company as their own. Their commitment to excellence attracted energy companies that trusted us to help achieve their goals, guided by our directive: ‘Best People, Best Equipment and Best Service.’ A strong management team, and experienced board of directors supported that commitment through quick, decisive action that kept EDS highly competitive. The Saskatchewan Chamber of Commerce later recognized EDS with ABEX Awards for ‘Business of the Year’ and ‘New Business Venture of the Year.’ RBC also nominated us for Ernst & Young’s ‘Entrepreneur of the Year’ award for the Prairie Provinces, where we became one of three private-sector finalists. These strengths provided the foundation for Rawhide Energy.”
He added, “Drawing on our experience with Eagle Drilling Services, we built Rawhide Energy around the same principles: ‘Best People, Best Equipment and Best Service.’ Rawhide is designed to stand apart through investments in leading technology, automation, and equipment that reduces emissions and fuel consumption. As multilateral and extended-reach wells exceed 8,000 metres, we are building rigs intended to perform at the highest level in this field.
The Rawhide will start the development of their rig fleet by rebuilding two tele-double rigs from the ground up. These donor rigs will be torn right down and made structurally stronger and re-equipped with the latest AC electric components, larger pumps, higher volume mud tanks and a level of automation not regularly seen in Saskatchewan. These rigs will be universal in properties allowing them to be highly utilized in the long reach, multi-lateral well designs, according to Big Eagle. They will be updated with numerous new worker friendly components along with full focus on a higher level of safety.
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This is a top-drive unit to be installed on a Rawhide Energy rig. Photo courtesy Rawhide Energy
Why build and why now?
So what led Big Eagle and Geysen to decide to build drilling rigs again?
He said, “Several factors led to the creation of Rawhide Energy. As with Eagle Drilling, we saw a need for a more worker-friendly approach, particularly in Saskatchewan.
“Industry feedback revealed an opportunity to adapt drilling services to changing needs. With an entire generation largely absent from the industry’s workforce, we anticipated staffing shortages and more recruits with little or no experience, prompting us to prioritize automation. Although the industry was pursuing greater cost efficiency, operational savings received less attention. Rawhide is using innovative technology that demonstrates there is no need for a trade-off between environmental and financial performance—we can achieve both. We therefore focused on reducing fuel consumption through AC electric power and battery-assisted horsepower. With drilling speeds already near their limits, we saw better data and new technologies as the next opportunity to help energy producers refine their operations and improve well drilling.
“The third major focus was to offer customers something different from the conventional rigs they were accustomed to and help improve the energy industry’s image. We concentrated on reducing emissions, improving fuel efficiency, and using the best available technology. Most rigs in Saskatchewan can drill at similar speeds, so there is little speed left to gain. However, better wells can be drilled when energy companies receive better data, helping them reduce costs. These improvements also create a more worker-friendly environment that attracts the industry’s best people. We believe we are building the safest, most technically advanced, and most efficient company for those who want to be part of a new era in energy drilling.
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“Our focus is on a smaller footprint, greater horsepower, longer reach, heavier ratings, improved fuel efficiency, lower emissions, automation and the highest levels of safety and technology available today.”
He said, “These rigs will be heavy tele-double rigs with a smaller universal footprint being able to accommodate the multi-well pads, standard energy wells, inner city drilling for geothermal direct heating purposes for commercial and subdivision needs for heating and cooling, eliminating a lot of noise pollution.
“As our drilling industry advances through technology, these rigs will be set up to adapt to all needs leading up to our automation concept – ACAR (AC Automated Rigs.)
“These rigs will be controlled from a driller’s counsel inside a controlled temperature environment with visible access to all areas of the rig.”
He added, “Rawhide rigs will be equipped with an AC powered top-drive unit capable of handling any well application needed to be drilled in Saskatchewan.
Here’s the drawworks under assembly for a Rawhide Energy rig. Rawhide Energy
“As technology progresses, so will Rawhide Energy, while adapting to the available automated pipe handling components, while working towards a full pipe handling aspect of automation.
“These rigs will be designed for quicker rig moves and faster rig up times. On multi-well programs, these rigs will be able to be relocated with a very limited amount of rigging down required and will be able to be over the next well site in a short timeline and little rig up time required to get right back at drilling on the next location.
“We will be incorporating a new-to-Saskatchewan crew model which will allow drillers and assistant drillers to be more available to work closer with the crews.
“These rigs will be a one stop shop for all aspects of drilling required in Saskatchewan. They will move quicker, cheaper, safer, and will be able to service any energy companies needs.”
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More than oil and gas
In recent years, drilling in Saskatchewan has gone far beyond oil and gas. Several emerging industries are making use of the same oilfield technologies and service companies to develop entirely different resources.
Big Eagle said, “Oil and gas will be one of our focus areas, but Rawhide will serve the broader energy and resource sectors. For Canada to become a reliable energy superpower, many forms of development will require drilling. Our rigs are designed for applications including geothermal energy, carbon capture, potash, helium, lithium, hydrogen, and oil and gas.”
As for the first rig’s initial project, he said, “Our launch is expected shortly after the 2027 road bans. We have letters of intent from major oil and gas companies and we are listed to drill geothermal wells for the first commercial-scale greenhouse in southeastern Saskatchewan. Once completed, it will be Canada’s first geothermal application of its kind. We expect the project to generate significant interest in expanding this technology across Canada for greenhouses and for heating and cooling new subdivisions and larger commercial buildings in surrounding communities.”
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Experienced board
Following the model established at EDS, Rawhide has assembled a board of directors whose members bring expertise in complementary fields, according to Big Eagle.
Gregory G. Turnbull, KC, serves as chair of the board. He has been an officer or director of numerous public and private companies, including Crescent Point Energy, Heritage Oil, Storm Resources, and Sunshine Oilsands. He has also chaired Alberta Health Services and the Calgary Zoo. Turnbull was a strategic adviser at Fasken Martineau DuMoulin LLP, and was previously a long-time partner at McCarthy Tétrault LLP. He brings extensive experience in corporate governance, advising boards and special committees, as well as in finance and securities transactions, including public and private equity and debt financings, takeover bids, initial public offerings, business combinations, and international stock exchange listings. “His expertise will be instrumental in helping Rawhide Energy in achieving its goals,” according to Big Eagle.
Director Dr. Soheil Asgarpour is a Canadian business executive, engineer, and recognized leader in energy-sector innovation, with more than 40 years of experience in technical, operational, and strategic roles in the oil and gas industry.
He is the former president and CEO of the Petroleum Technology Alliance Canada (PTAC), where he provided strategic leadership and oversight for the launch and implementation of more than 500 research and development projects. These projects focused on developing best practices, informing effective policies and regulations, and advancing the commercialization of technologies to reduce the environmental footprint of oil and gas operations.
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During his tenure at PTAC, he established a national innovation ecosystem to accelerate methane mitigation, contributing to a 45 per cent reduction in methane emissions from Canada’s oil and gas industry. In recognition of his contributions he received the King Charles III Coronation Medal. He is also the recipient of the University of Calgary’s 2024 Canadian Engineering Leader Award. In recognition of his contributions to sustainable energy innovation, PTAC established the PTAC Soheil Asgarpour Scholorship in Sustainable Energy at the University of Calgary.
Dr. Asgarpour currently serves as chair of the board of the Council of Canadian Acadamies (CCA). He is the former President of the Canadian Academy of Engineering (CAE) and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). His previous leadership and governance roles include vice-chair of the Petroleum Recovery Institute, chair of the Petroleum Society of CIM, and director of the Clean Resource Innovation Network (CRIN) and the Photonic Innovations (CIPI), a Canadian Network of Centers of Excellence.
“Dr. Asgarpour will be instrumental in helping Rawhide Energy into the next generations of drilling services.” Big Eagle said.
Director, CEO, and president of Rawhide Energy Ltd. is Derrick Big Eagle. He brings decades of oil and gas industry experience. He began working in drilling industry at age 15 and served as a floor hand on the world’s second horizontal well. He progressed through every drilling role and later worked as a drilling consultant for Spectrum Resource Group, Northrock Resources, and several small producers. Derrick co-founded Eagle Drilling Services Ltd. and Element Technical Services, a highly regarded fracturing services company. He also co-founded Cheveyo Energy, a private oil and gas producer in southeastern Saskatchewan, where he served as chairman, CEO and president. His honors include the Saskatchewan Chamber of Commerce ABEX Business of the Year and Saskatchewan Industry and Resources New Venture of the Year awards in 2006, the First Nations Business of the Year award in 2006, the Economic and Employment Development First Nation Business Person award in 2007, Saskatchewan Hall of Fame Oilman of the Year in 2013, and Southeast Saskatchewan Oilman of the Year for 2021–22. Big Eagle has also served as a strategic adviser to the University of Regina’s newly established geothermal program.
Rawhide Energy Ltd. is seeking additional directors to complete its board and strengthen the expertise represented at the governance level.
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