West Rock Energy Consultants Ltd.

Rock on┬áInternational growth is the next step for West Rock Energy Consultants, as small oil companies around the globe seek the knowledge and technological expertise of Canadian engineers. President Greg Shpytkovsky talks to Gay Sutton about his plans for expansion. In recent years, innumerable small companies have been setting up in Canada to explore for oil and gas, and in spite of the current tough financial climate, they are continuing to find the necessary investment in fairly respectable numbers. This is where West Rock Energy Consultants comes in.   Launched in October 2006 by current president Greg Shpytkovsky and vice president Ryan GanskeÔÇötwo oil experts with a combined 34 years of experience in the fieldÔÇöthe company provides knowledge, expertise, technology and manpower to these smaller exploration companies. Where the company excels is in delivering the cutting-edge efficiencies and latest technologies that are usually only available to larger companies.West Rock offers everything from full project management services through to field consultants and recruiting services, and its areas of expertise range across the full operational spectrum, from arranging a survey, lease construction and drilling through to pipeline and facility construction, production management and abandonment. ÔÇ£We donÔÇÖt have geologists and we donÔÇÖt have accountants, other than those who manage our own books,ÔÇØ Shpytkovsky explains. ÔÇ£But we can do anything that is technical.ÔÇØ In the two years since its launch, the company has developed a healthy client list of 84 companies, most of which are spread across Alberta, British Columbia, Saskatchewan and Eastern Canada. Currently it has 35 active projects in progress, one of which involves drilling 11 wells for Darian Resources and bringing them on pipeline by the end of the first quarter of 2009. Another project that has just reached completion was drilling a series of core holes for Black Steel Oil Sands in the area of Peace River, a region that Shpytkovsky believes has a great future. The holes have yielded encouraging results, and West Rock is awaiting news on the full evaluation. If the results are good enough and the investors decide to give the go-ahead, there is the possibility of considerably more work on the project.West Rock is, however, setting its sights further afield and has plans for expansion. The Canadian oil industry has earned a worldwide reputation for being at the forefront of technological and engineering advancement, and this has become apparent as the company begins to operate abroad. ÔÇ£WeÔÇÖve noticed that in some parts of the world theyÔÇÖre doing things the way we did 30 or 40 years ago. The technology has changed dramatically. ItÔÇÖs very innovative, much more advanced, with designs that reduce overall well costs and simplify methods; thatÔÇÖs the knowledge and experience that we bring. ThereÔÇÖs a huge demand for Canadian expertise, and we have identified a great opportunity to expand internationally,ÔÇØ Shpytkovsky says.West Rock has already successfully managed a project in Cabinda, Angola, for AustraliaÔÇÖs Rock Oil Company. Oil reserves in the troubled African state are largely situated offshore, and Rock Oil was searching for reserves on land. By the time West Rock joined the project, initial surveys had been evaluated, and the company took over the drilling of nine exploratory land-based wells. The United States, however, is where the company has identified the greatest scope for expansion. The number of smaller companies in the region is likely to increase as the US vigorously pursues its policy of becoming self-sufficient in energy production.┬á West Rock currently has four consultants working in the US and is exploring the feasibility of opening an office in Denver. ÔÇ£Our intention will be not to take American jobs but to help the community weÔÇÖre working for,ÔÇØ says Shpytkovsky. ÔÇ£WeÔÇÖll be hiring local people and then sending consultants out to train them in the Canadian techniques and technology.ÔÇØ An example of this is the introduction of the Packers Plus technology into the Bakken field in North Dakota. Training and skills are wider issues that West Rock takes seriously, understanding that its reputation is based on the expertise and integrity of its consultants. The company has a portfolio of 185 field consultants, 75 of whom are actively engaged on contracts. All prospective consultants are interviewed to determine their areas of skill. Their performance is then tested and evaluated in action to quantify their experience, knowledge and communication skills. Consultants are allocated work based on their ability and experience, and their performance is continuously monitored.In such a booming industry there is often a dearth of genuine expertise, and West Rock is taking steps to ensure it continues to have access to the skills it needs. First, it has been taking in young workers and training them, beginning the process at company headquarters in Calgary and then moving them out into the field, where extensive on-the-job training is given. The second route is to identify experienced rig contractors who have the knowledge and ability to move into the consulting world. ÔÇ£In the oil and gas industry, those who reach the position of rig manager have reached the top of their career tree, and many want to progress to the consulting side,ÔÇØ Shpytkovsky explains. The company has been taking on suitable candidates, giving them experience on shallow wells and then building on that by moving them to more difficult and complex projects, ensuring that they understand the companyÔÇÖs principles and requirements.Just two years after its launch, West Rock has seen profits rise by 40 percent. But there are challenges ahead. After the eye-watering highs of the last couple of years, the recent slide in oil pricesÔÇöseen as a godsend for businesses across North America as they struggle to cope with the effects of slowdown and recessionÔÇöare not such good news for the oil industry. However, according to Shpytkovsky, in spite of falling prices and the restricted flow of investment capital as a result of the financial turmoil, the oil exploration industry is still a good place to be. ÔÇ£I think we are going to see a slower period, but things are going to start turning around late this year, and then weÔÇÖre going to be full force again,ÔÇØ he says. ÔÇ£The need for oil is not going to go away.ÔÇØ ┬á