At Poseidon, our affinity for our customers has solid roots. That’s because we envisioned, invented, field-tested and rolled-out our innovative Poseidon fluid handling system while working at a junior E&P company ourselves. The Poseidon system directly addresses the producer’s needs, because it was developed directly for a producing company.
It was a story of responding to necessity. Our E&P company’s well completions costs had been going up, and the scarcity of key services was causing delays. At the same time, our frac jobs were getting larger as we started to drill horizontal wells completed with multi-stage fracturing. That meant our fluid needs were rising as well, and instead of needing 10 or 20 steel tanks to store our fracturing and flowback fluids, we were finding ourselves trying to source up to 80. We also tried using lined pits, but there were environmental drawbacks. There had to be a better way!
Cliff Wiebe was sure there was. Cliff was the E&P company’s well completions manager who also had more than 25 years’ experience working at senior service and supply companies. Cliff designed a product that was tough and reliable. By early 2010, the first prototype had been built.
We field-tested during that winter’s drilling season at several of our horizontal wells in the Alberta Deep Basin, where our fluid needs were large. The system worked great, proving easy to set up even in cold weather. Poseidon’s first revenue-producing job came in June 2010 and we also applied to patent the ingenious fastening system that makes it so fast and easy to set up – without a single bolt.
By the end of 2010 we had dozens of tanks manufactured and deployed. In January 2011 Poseidon secured its first customer in the Bakken play in North Dakota, and 2011 became a year of rapid growth across North America. We introduced two new models, the 41,000-barrel Atlantis and the 9,000-barrel Triton, to complement the core 18,000-barrel Poseidon model.
In mid-2011 we received notice of patent in Canada, and it was formally granted in July. By the end of 2011 our tank fleet had grown to 240 systems and we were active in 14 states and in virtually every major unconventional play across Western Canada. Two-thousand eleven was crucial in another way as well. Through a Plan of Arrangement Poseidon became an independent, publicly traded, pure-play service and supply company. We commenced independent trading on November 4, 2011, and on December 15, 2011 we distributed our first monthly dividend of $0.09 per share to our shareholders.
In 2012 we extended our activities at unconventional oil and liquids-rich gas plays across North America, broadened our tank lineup to five models, rolled out new, innovative products and services and increased our rental fleet to over 500 pieces.
In the fall of 2012 we unveiled the Volcano™ E-Z Heat. Its ingenious concept makes it the industry’s most thermally efficient method of heating fracturing fluids in the field – and it can run on natural gas as well as diesel. Our lengthening field experience and growing internal capabilities also allowed us to broaden our service offering to cover complete fluid management solutions – including logistics, remote tank monitoring, hub-and-spoke central storage engineering and design, “pump-and-pipe” construction, and more.