 
Butch Gering (right) started Diamond Energy Services with one rig in 1996, turning his knowledge as a rig mechanic into an entrepreneurial direction. His childhood buddy, Mick MacBean, gave up a lucrative corporate job in the Calgary oil patch to return to Swift Current and help Butch build Diamond into a leading operator in southwestern Saskatchewan. They are both looking for help in western Canada's tight labour markets. Diamond Energy Services was established in the 1996 with one service rig operating out of Swift Current, Saskatchewan. Today, Diamond has become a market leader in providing well servicing to both the oil and natural gas sectors in southwestern Saskatchewan, with a growing presence in central Alberta. With 130 employees, Diamond operates through two divisions:
Service rigs and coiled tubing units are used throughout the life of producing oil and natural gas wells for completions, maintenance, work-overs and abandonments. Drilling companies like Diamond Energy Services are busy these days as exploration activity in the western Canadian sedimentary basin is at record levels. Markets served by Diamond are strong because of increased oil and gas extraction activity driven by strong commodity prices and increased levels of shallow gas and coal bed methane activity in its key operational areas. The inescapable fact is that energy supplies are tightening while demand continues to grow for petroleum products, providing Diamond Energy with a promising future filled with many opportunities to grow its business. TerraVest owns an 87% interest in Diamond, which it acquired in September 2005 for $33.7 million. The Fund purchased its interest in Diamond from a number of individual and institutional investors, who had provided the resources to finance its rapid growth since it was founded in 1996. Diamond’s management team holds the remaining 13% of the business and will participate in the future success of the business. Diamond Energy Services has grown through rapidly since it was first established by Michael (Butch) Gering, Diamond’s president. Diamond’s first rig went into service in the fall of 1996 with five employees. Over the next four years, the operation added another rig each year, bringing the fleet up to five, all working out of the Swift Current area. CEO Mick MacBean joined Diamond in 1998. In 2000, Diamond added its first coiled tubing unit. With six rigs now in service (and seventh coming on line shortly), Diamond’s coiled tubing business operates from Medicine Hat. Diamond purchased Sage Well Services in 2002, its major competitor in the Swift Current area, which added 11 rigs to its operation. The Sage acquisition served as catalyst for Diamond to expand its business into central Alberta. During the past year, Diamond added two more rigs for the Swift Current area and built its first swabbing unit, responding to the needs of its customers. After closing, Diamond will operate as an independent business within the TerraVest portfolio with no changes to its operations or management team. For further information, please visit: www.diamondenergy.ca |
