PowEra Financial Feasibility Analysis

Memo
To: Kris Hans
University of Calgary
2500 University Drive NW
Calgary, AB, Canada T2N 1N4
From: Aditya Verma
Chris Hoang
Diana Dang
Eric Salkauskas
Emilia Konoeva
Justin Charron
File: Group Project 3 Date: November 24, 2019
Reference: Field Logging Digitization – Financial Feasibility Memorandum
INTRODUCTION
PowEra was found to be feasible from the financial analysis based on a positive cash flow in year 3,
given the high capital needed to maintain the company in the first two years is obtained. To ensure
the continued success of this company, we require a growth rate of 50 rigs per year. This is most
realistically achieved by obtaining large clients that can apply the technology to their whole fleet. Even
if this does happen for a few years, the current 806 rigs in Canada and the United States will act as a
limiting factor for this business’ success (BOE Report, 2019). In the long term, then, there will need to
be an alternate business plan or pivot, or an appropriate exit strategy.
ASSUMPTIONS
The assumptions used in this analysis are based primarily on three sources - the first of which is the
in-class tutorial and FSM session led by Pouyan Shojaei. This is complemented by the reported
inflation rate as per Stats Canada and accounts for many of the basic growth and interest rate inputs.
There was also a consultation with Krista Thompson, CA, former senior accountant at PWC and
current accountant at Spartan Controls. Krista aided in providing appropriate figures for many
infrastructure costs, start-up costs, and other basic administrative and overhead costs, based on her
professional opinion and expertise.

November 24, 2019
Kris HansUniversity of Calgary2500 University Drive NW Calgary, AB, Canada T2N 1N4
Page 2 of 22
The costs of goods sold breakdown is based on the required parts as described by Justin and the rest
of the engineering team as it relates to the building of a diesel-powered rig and the Powera module.
The cost of each part was analyzed by Chris through his industry knowledge and experience with
vendors such as Emerson and Detronics, to quote appropriate equivalent or substitute parts for the
engineering team’s design and arrive at a final cost estimate. These figures are used in the cost of
goods sold section of our analysis.

November 24, 2019
Page 3 of 22
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Income Statement
Revenue Growth 2.24% 2.24% 2.24% 2.24% 2.24% 2.24% 2.24% 2.24% 2.24% 2.24%
Revenue $2,500,000 $5,290,180 $8,424,392 $11,966,540 $15,959,917 $20,452,108 $25,574,955 $31,494,701 $38,374,503 $46,359,044 $55,614,387
Growth 4.24% 4.24% 4.24% 4.24% 4.24% 4.24% 4.24% 4.24% 4.24% 4.24%
Price $50,000.00 $52,120.00 $54,329.89 $56,633.48 $59,034.73 $61,537.81 $64,147.01 $66,866.84 $69,702.00 $72,657.36 $75,738.03
Number of Installations per annum 50 102 155 211 270 332 399 471 551 638 734
Growth 3% 4% 5% 5% 5% 7% 9% 10% 10% 10%
Number of increased installations
per annum 50 52 54 56 59 62 66 72 80 87 96
COGS Growth
Cost of Goods Sold (COGS) $2,157,500.00 $3,674,405.00 $5,251,710.23 $6,907,438.26 $8,645,500.32
$10,470,002.9
8
$12,421,405.3
0
$14,547,249.7
0
$16,884,288.8
1
$19,453,610.9
6
$22,278,412.6
3
Growth 2.24% 2.24% 2.24% 2.24% 2.24% 2.24% 2.24% 2.24% 2.24% 2.24%
COGS Solution $1,457,500.00 $2,958,725.00 $4,519,999.00 $6,159,336.70 $7,880,641.29 $9,688,011.10
$11,621,896.8
0
$13,729,832.2
1
$16,048,561.1
7
$18,599,163.0
2
$21,404,825.0
6
Employee Wages (Salaried) $600,000.00 $613,440.00 $627,181.06 $641,229.91 $655,593.46 $670,278.76 $685,293.00 $700,643.56 $716,337.98 $732,383.95 $748,789.35
Employee Benefits $100,000.00 $102,240.00 $104,530.18 $106,871.65 $109,265.58 $111,713.13 $114,215.50 $116,773.93 $119,389.66 $122,063.99 $124,798.22
Gross Profit $342,500.00 $1,615,775.00 $3,172,682.20 $5,059,101.79 $7,314,416.20 $9,982,105.45
$13,153,549.5
8
$16,947,451.6
2
$21,490,214.6
3
$26,905,432.9
4
$33,335,974.4
1
Expenses $900,000 $920,160 $940,772 $961,845 $983,390 $1,005,418 $1,027,939 $1,050,965 $1,074,507 $1,098,576 $1,123,184
Marketing and Business
Development $150,000 $153,360 $156,795 $160,307 $163,898 $167,570 $171,323 $175,161 $179,084 $183,096 $187,197
SG&A $250,000 $255,600 $261,325 $267,179 $273,164 $279,283 $285,539 $291,935 $298,474 $305,160 $311,996
Other Admin and Infrastructure
Costs (i.e. HR, IT, Legal) $500,000 $511,200 $522,651 $534,358 $546,328 $558,566 $571,077 $583,870 $596,948 $610,320 $623,991
Earnings Before Tax -$557,500.00 $695,615.00 $2,231,910.62 $4,097,256.92 $6,331,026.01 $8,976,687.31
$12,125,610.0
8
$15,896,486.2
8
$20,415,707.6
6
$25,806,857.0
2
$32,212,790.3
9
Taxes $0.00 $139,123.00 $446,382.12 $819,451.38 $1,266,205.20 $1,795,337.46 $2,425,122.02 $3,179,297.26 $4,083,141.53 $5,161,371.40 $6,442,558.08
Net Income -$557,500.00 $556,492.00 $1,785,528.49 $3,277,805.54 $5,064,820.81 $7,181,349.85 $9,700,488.06
$12,717,189.0
2
$16,332,566.1
3
$20,645,485.6
1
$25,770,232.3
1

November 24, 2019
Page 4 of 22
Balance Sheet
Assets
Cash & Cash Equivalents $485,000.00 $193,867 $1,211,674 $3,771,745 $8,154,549 $14,676,494 $23,691,925 $35,644,112 $51,089,160 $70,698,525 $95,256,567
Accounts Receivables $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Growth 2.24% 2.24% 2.24% 2.24% 2.24% 2.24% 2.24% 2.24% 2.24% 2.24%
Inventory $1,457,500 $2,958,725 $4,519,999 $6,159,337 $7,880,641 $9,688,011 $11,621,897 $13,729,832 $16,048,561 $18,599,163 $21,404,825
Current Assets $1,942,500 $3,152,592 $5,731,673 $9,931,081 $16,035,191 $24,364,505 $35,313,822 $49,373,944 $67,137,721 $89,297,688 $116,661,393
Office and Equipment $1,000,000 $880,000 $774,400 $681,472 $599,695 $527,732 $464,404 $408,676 $359,635 $316,478 $278,501
Other Assets (PP&E for other
businesses) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Goodwill
Total Assets $2,942,500 $4,032,592 $6,506,073 $10,612,553 $16,634,886 $24,892,237 $35,778,226 $49,782,620 $67,497,355 $89,614,166 $116,939,894
Liabilities
Short Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accounts Payable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Shareholders Equity $1,442,500 $2,090,092 $3,353,481 $4,880,880 $6,703,804 $8,857,047 $11,413,721 $14,468,798 $18,123,411 $22,476,445 $121,026,800
Equity Capital $2,000,000 $1,533,600 $1,567,953 $1,603,075 $1,638,984 $1,675,697 $1,713,232 $1,751,609 $1,790,845 $1,830,960 $95,256,567
Retained Earnings -$557,500.00 $556,492.00 $1,785,528.49 $3,277,805.54 $5,064,820.81 $7,181,349.85 $9,700,488.06
$12,717,189.0
2
$16,332,566.1
3
$20,645,485.6
1
$25,770,232.3
1
Additional Financing to balance
assets $1,500,000 $1,942,500 $3,152,592 $5,731,673 $9,931,081 $16,035,191 $24,364,505 $35,313,822 $49,373,944 $67,137,721 -$4,086,906

November 24, 2019
Page 5 of 22
Statement of Cash-Flows
Cash Flow from Operating
Activities (CFO)
Net Income ($557,500.00) $556,492.00 $1,785,528.49 $3,277,805.54 $5,064,820.81 $7,181,349.85 $9,700,488.06
$12,717,189.0
2
$16,332,566.1
3
$20,645,485.6
1
$25,770,232.3
1
Depreciation & Amortization (Add
to Net Income)
Increase in Accounts Payable (Add
to Net Income)
Decrease in Accounts Receivables
(Add to Net Income)
Increase in Inventory (Subtract
from Net Income)
($1,457,500.0
0)
($1,501,225.0
0)
($1,561,274.0
0)
($1,639,337.7
0)
($1,721,304.59
)
($1,807,369.8
1)
($1,933,885.7
0)
($2,107,935.4
1)
($2,318,728.9
6)
($2,550,601.8
5)
($2,805,662.0
4)
Operating Cash Flow
($2,015,000.0
0) ($944,733.00) $224,254.49 $1,638,467.84 $3,343,516.22 $5,373,980.04 $7,766,602.36
$10,609,253.6
1
$14,013,837.1
7
$18,094,883.7
6
$22,964,570.2
7
Cash Flow from Investing Activities
(CFI)
Capital Expenditure
($1,000,000.0
0) ($880,000.00) ($774,400.00) ($681,472.00) ($599,695.36) ($527,731.92) ($464,404.09) ($408,675.60) ($359,634.52) ($316,478.38) ($278,500.98)
Proceeds from sale of property
Investing Cash Flow
($1,000,000.0
0) ($880,000.00) ($774,400.00) ($681,472.00) ($599,695.36) ($527,731.92) ($464,404.09) ($408,675.60) ($359,634.52) ($316,478.38) ($278,500.98)
Cash Flow from Financing
Activities (CFF)
Equity Capital Invested $1,500,000 $1,533,600 $1,567,953 $1,603,075 $1,638,984 $1,675,697 $1,713,232 $1,751,609 $1,790,845 $1,830,960 $1,871,973
Borrowings of Long term debt
Increase/decrease in debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Financing Cash Flow $1,500,000 $1,533,600 $1,567,953 $1,603,075 $1,638,984 $1,675,697 $1,713,232 $1,751,609 $1,790,845 $1,830,960 $1,871,973
Net Increase/Decrease in Cash
($1,515,000.0
0) ($291,133.00) $1,017,807.13 $2,560,070.62 $4,382,804.52 $6,521,945.01 $9,015,430.77
$11,952,186.9
2
$15,445,047.5
9
$19,609,365.2
5
$24,558,042.6
7
Cash at the beginning of year $2,000,000 $485,000.00 $193,867.00 $1,211,674.13 $3,771,744.75 $8,154,549.27
$14,676,494.2
8
$23,691,925.0
5
$35,644,111.9
7
$51,089,159.5
6
$70,698,524.8
1
Cash at the end of the year $485,000.00 $193,867.00 $1,211,674.13 $3,771,744.75 $8,154,549.27
$14,676,494.2
8
$23,691,925.0
5
$35,644,111.9
7
$51,089,159.5
6
$70,698,524.8
1
$95,256,567.4
8

November 24, 2019
Page 6 of 22
Valuation
Earnings Before Interest Tax (EBIT) ($557,500.00) $695,615.00 $2,231,910.62 $4,097,256.92 $6,331,026.01 $8,976,687.31
$12,125,610.0
8
$15,896,486.2
8
$20,415,707.6
6
$25,806,857.0
2
$32,212,790.3
9
Taxes (Subtract) $0.00 -$139,123.00 -$446,382.12 -$819,451.38 -$1,266,205.20
-
$1,795,337.46
-
$2,425,122.02
-
$3,179,297.26
-
$4,083,141.53
-
$5,161,371.40
-
$6,442,558.08
Capex
($1,000,000.0
0) ($880,000.00) ($774,400.00) ($681,472.00) ($599,695.36) ($527,731.92) ($464,404.09) ($408,675.60) ($359,634.52) ($316,478.38) ($278,500.98)
Change in working capital $0
($1,501,225.0
0)
($1,561,274.0
0)
($1,639,337.7
0)
($1,721,304.59
)
($1,807,369.8
1)
($1,933,885.7
0)
($2,107,935.4
1)
($2,318,728.9
6)
($2,550,601.8
5)
($2,805,662.0
4)
Free Cash Flow
($1,557,500.0
0)
($1,824,733.0
0) ($550,145.51) $956,995.84 $2,743,820.86 $4,846,248.12 $7,302,198.28
$10,200,578.0
1
$13,654,202.6
5
$17,778,405.3
8
$22,686,069.3
0
Enterprise Value $8,799,043.25
Equity Value $9,284,043.25

November 24, 2019
Page 7 of 22
INTERPRETATION OF RESULTS
Cash Flow
Based on our analysis, it was found that our net income would be in the negative by a substantial amount
of $557,500, yet would quickly increase to over $1,000,000 by the third year. This is due to our high costs
of the product, six employees from the beginning and overhead which includes lawyers, IT and HR. The
quick increase is attributed to the assumption that the amount of products sold will increase substantially
each year which is accurate for the first few years due to our reliance on selling to large clients who own
many rigs.
Based on the high amount of debt we will incur and our capital expenditure, a net increase in cash will
only happen in year 4 and we will only have a positive amount of cash by the end of the fifth year.
Looking at these lines alone puts us at great risk due to the substantial amount of growth we are
projecting, which may not occur. Nonetheless, if we are able to be as successful as we predict, the
amount of money we will be making after the fifth year is substantial and can therefore will provide a good
payoff to investors, meaning our company is profitable. However, a high amount of initial capital needed
and reliance on a high volume of sales makes this company more volatile than the oil and gas industry.
Income Statement
When considering strictly the sales of the product, our business has a positive gross profit from year one
and has positive earnings starting in year two. This provides an encouraging sign because if we decrease
capital expenditures, overhead and our loan, our product allows us to be profitable without needing an
overly large amount of sales per year. An issue that makes the cash flow unencouraging is that we would
need to spend a substantial amount to have a large inventory right away but for the purposes of the
income statement and our success, this allows us to have a bit of a fall back option in terms of getting
money back if our business were to ever fall into a hole. Due to a high price to cost of goods ratio and an
assumption that we’ll be selling substantially more battery packs every year, our profits increase to the

November 24, 2019
Page 8 of 22
tens of millions by year 7 which could provide a positive argument when trying to attract potential
investors.
LIMITATIONS
The three main risks of our financial feasibility analysis lie in the growth of products sold over the years,
our ability to gain a large amount of capital up front and clients being able to pay the $50,000 price per
rig, which is a generous assumption based on almost 200% of the cost of goods. The estimate for the
number of products sold in our first two years may be low due to our business model of selling to large
clients who are likely to buy in bulk and adopt their whole fleet to our technology. There is an issue if we
expect to keep growing with the same trend in years 3 and beyond because currently, there are only 806
active rigs in Canada and the US, 466 in Canada and 93 in Alberta (BOE Report, 2019). Although there is
potential to expand into offshore drilling which would require a different type of product and can therefore
possibly provide greater profit, our company would still be profitable even if we stopped expanding as
much as we’re predicting after the second year. Regardless, since we’re selling to one company at a
time, the prediction for how many products we sell the first year or any year after that is highly variable.
Over the first few years, the financial analysis showed that we’d have to have capital in the millions to be
able to afford all the products along with the overhead. This would require either generous investors, a
generous bank loan or a substantial amount more from our employees and their families. Since there are
a limited number of rigs in North America, limiting our potential, investors may find it difficult to see a long
term payoff. Bank loans and finances from employees and family would depend on the economy and our
persistence but could be helped by people’s interest in the oil and gas industry as well as the potential of
the industry during a boom. Therefore, although this may be a difficult risk to overcome, our persistence
and passion to push this idea through, plus a little bit of luck from the economy, would help us get the
capital needed.

November 24, 2019
Page 9 of 22
Oil and gas companies often have substantial amounts of capital to be able to spend on new innovations
so $50,000 isn’t a difficult price point to work with. It may be difficult for small companies to manage,
especially if they have a few rigs, unless they see substantial diesel fuel savings. For larger companies,
they may have the capital, but they would likely look to invest in their whole fleet, increasing their cost to
the millions. Therefore, if the economy is in a good state and the energy savings are noticeable, they’re
more likely to be willing to pay this amount. Otherwise, our company may switch to our backup cost structure
of giving these products away for free and getting paid a percentage of the company’s energy savings
yearly. This would require an even higher amount of capital, making it a very difficult alternative to make
into a reality but if the capital was there, this could provide the potential for our company to be making profit
many years into the future which would be beneficial in attracting potential investors.
CLOSURE
This financial feasibility analysis was completed for Kris Hans. All assumptions are strictly based on
current knowledge and are subject to change.
University of Calgary
Aditya Verma
Chris Hoang
Diana Dang
Eric Salkauskas
Emilia Konoeva
Justin Charron
Attachment: Appendix A – Assumptions
Appendix B – References

Memo
APPENDIX A - ASSUMPTIONS
Assumption Input Reasoning/Source
Corporate tax rate 20%
Per Pouyan’s Assumptions
Depreciation rate 12%
Discount rate 25%
Interest Expense 5%
Annual Repayment of Debt 10%
Inflation 2.24% Stats Canada Rate for 2019
Initial Cash Invested $2,000,000 Based on scale of business and
other assumptions relating to
costs, this seems to be a good
starting point
Initial Inventory $0 As a startup we would not have
any inventory on hand to begin
with
Assume Price Growth at 2% +
Inflation
4.24%
Based on Pouyan and StatsCan
Variables costs grow the same
rate as inflation
2.24%
Growth Rate of Business
Revenues
`3%, 4%, 5%, 5%, 5%, 7%, 9%,
10%, 10%, 10%
Assumed aggressive growth
modelled after historic figures for
introduction of other similar
innovations based on cost/benefit
(i.e. early SAGD implementation)
into oil and gas industry
Employee Salaries $100,000/employee Based on Kris’ description of six
figure salaries, and skillset,
expertise and qualifications of our
group members, we assume this
to be the minimum viable salary to
pay ourselves in this startup
Employee Benefits $100,000 When consulting with Krista
Thompson (CA) as a primary
source, it was advised to set this

November 24, 2019
Page 11 of 22
at $100,000 to account for
employee insurances, various
vacation coverages, and potential
backfilling, contracting, or
outsourcing to account for
vacation, sick, medical, or other
leave of absence
Marketing and Business
Development
$150,000 When consulting with Krista
source, a business operating in
the energy industry in
Alberta/Western Canada with
projections of 50 customers and
$2,500,000 revenue would
reasonably require this amount of
investment into marketing
materials and business
development/client meetings (i.e.
meals, flights, transport,
entertainment, etc.)
SG&A $250,000 When consulting with Krista
source, she advised start-ups
such as ours would require
outsourcing and backfilling
accounting resources, auditing,
shipping and freight charges, and
other direct sales costs which
should be accounted for under
SG&A as it relates to the sales of
goods (i.e. no sales, no extra
accounting - no sales, no taxation,
no audit) and is therefore
accounted here instead of in
infrastructure costs
Admin and Infrastructure Costs
(i.e. HR, IT, Legal)
$500,000 When consulting with Krista
source this is an approximate
estimate for patent filing,
contracted legal counsel, general
outsourced IT (low needs), and
administering external
HR/arbitration resources when
adding additional employees or
contractors

November 24, 2019
Page 12 of 22
Office and Equipment $1,000,000 When consulting with Krista
source, this is an estimated cost
for a professional office in Calgary
with all required equipment and IT
infrastructure (i.e. computers,
desks, chairs, office supplies, wifi,
phone plans, printers, etc.)
Cost of Goods Sold Various Based on Chris’ industry
experience and vendors who work
with Spartan Controls, these are
the prices quoted for
similar/equivalent equipment to
the ones referenced by Justin in
his rig design(s)

Memo
Product Cost and Development (COGS)
Item Qty Unit Cost Total Cost Vendor/Source for Pricing
GENERATORS
Drawworks, 600 HP, with 600 HP AC motor 1 $7,500.00 $7,500.00 Rosemount
Mud Pump, 1600 HP with 1150 HP AC motor 2 $4,000.00 $8,000.00 Fisher-Rosemount
Air Compressor , 350 H.P. 600V, 3 Phase. 1 $8,500.00 $8,500.00 Aircom
Topdrive , 300 HP 1 $15,000.00 $15,000.00 Emerson Topworx
150 HP AC Motor 2 $8,500.00 $17,000.00 Detronics
PLUG BOARDS - GENERAL
DVC 6200 plug board AC 6000 V 3 $6,200.00 $18,600.00 Fisher
Protective Covering, AC Shielding, 6000 V 3 $750.00 $2,250.00 Guillevan
Power Cables, Lugs withstanding 1135 amps or higher with insulating
covers 3 $500.00 $1,500.00 Electronic Connectors (YEG)
All AC/GEN. Control plugs and receptacles will be Pyle National or
equal unless specified by customer. 1 $500.00 $500.00 Detronics
All 600-volt AC distribution receptacles to be Appleton or equal. 1 $650.00 $650.00 Detronics
Mast
RL100 fixture c/w compact fluorescent bulbs for outdoor application or
equal with plugs 22 $6.50 $143.00 Electronic Connectors (YEG)
RL96 120volt 15 amp VT receptacles mounted outside Class1 Zone 2
area or equal 6 $180.00 $1,080.00 Detronics
HPS 82 120 volt 15 amp cord caps or equal 8 $120.00 $960.00 Detronics

November 24, 2019
Page 14 of 22
Sub
RL100 crown lights complete with Red globes 2 $150.00 $300.00 Electronic Connectors (YEG)
208/120 volt power feed cord complete with 30 amp APJ cord cap for
lights and receptacle power 1 $200.00 $200.00 Detronics
Communication cord for top drive system control 1 $800.00 $800.00 Emerson Regulators
Class1 Zone 2 400 watt metal halide fixtures or equal 4 $775.00 $3,100.00 Emerson Regulators
Lot of stranded wire, cast boxes, cable tray, rigid conduit, fittings,
connectors and tack cable etc. to complete the installation. 1 $500.00 $500.00
Estimation with Industry
Experience
Indicator for dog engagement on tele mast 1 $38.00 $38.00 Yaskawa
Indicator for injector latch engagement 1 $72.00 $72.00 Puffer Sweiven
Explosion proof 4’ bubble lens fluorescent fixtures or equal in the cellar 4 $350.00 $1,400.00 Electronic Connectors (YEG)
2’ bubble lens fluorescent fixtures or equal on the step down section 4 $250.00 $1,000.00 Electronic Connectors (YEG)
RL96 120volt 15 amp VT receptacles mounted outside Class1 Zone 2
area or equal 6 $150.00 $900.00 Detronics
HPS 82 120 volt 15 amp cord caps or equal 8 $200.00 $1,600.00 Detronics
600 volt power feed cord complete with 100 amp ACR Receptacle on
carrier for Catwalk power 1 $100.00 $100.00 Detronics
Communication cord for system control 1 $120.00 $120.00 Detronics
Class1 Zone 2 400 watt metal halide fixtures or equal 4 $300.00 $1,200.00 Detronics
AR 30 amp receptacle for manifold/catwalk 208/120 volt outlet 1 $300.00 $300.00 Detronics

November 24, 2019
Page 15 of 22
Class 1 Zone 1 switches for steam heater 2 $450.00 $900.00 Fisher-Rosemount
100 amp APJ complete with feed cord for 50 HP hydraulic pump
Catwalk 1 $500.00 $500.00 Fisher-Rosemount
lights and receptacle power 3 $100.00 $300.00 Rosemount
connectors and tack cable etc. to complete the installation. 1 $500.00 $500.00
Estimation with Industry
Experience
Pumphouse # 1 & 2
RL485 4’ bubble lens fluorescent fixtures or equal 6 $50.00 $300.00 Detronics
RL 483 4’ bubble lens fluorescent fixtures or equal 2 $75.00 $150.00 Detronics
RL96 120volt 15 amp VT receptacles or equal 6 $350.00 $2,100.00 Detronics
HPS 82 120 volt 15 amp cord caps or equal for steam heater 1 $1,000.00 $1,000.00 Detronics
DS 185 VT switch 120 volts 15 amp for steam heater 1 $1,500.00 $1,500.00 Detronics
Set of Camlocks for AC motor connection 1 $1,800.00 $1,800.00 Electronic Connectors (YEG)
Power distribution center for AC motor loads 1 $4,300.00 $4,300.00 Puffer Sweiven
Set of feeder cables for Power distribution center 1 $3,000.00 $3,000.00 Fisher
AC 1150 HP motor 1 $7,500.00 $7,500.00 Fisher
Set of feeder cables for AC motor sized for 1150- Hp continuous 1 $185.00 $185.00 Fisher-Rosemount
100 amp ACR for 60 HP Pre-charge pump 1 $400.00 $400.00 Rosemount
60 amp ACR for Mud Tank Panel 1 $750.00 $750.00 Emerson Regulators
Power circuit for 20 HP Blower 1 $1,050.00 $1,050.00 Puffer Sweiven
Power circuit for 20 HP Air Compressor 1 $1,200.00 $1,200.00 Fisher
Power circuit for 5 HP Liner wash/Oilier 1 $1,500.00 $1,500.00 Fisher
30 amp AR receptacle for boiler feed 1 $1,750.00 $1,750.00 Fisher-Rosemount

November 24, 2019
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connectors and teck cable etc. complete the installation. 1 $500.00 $500.00 Rosemount
DS 185 VT switch 120 volts 15 amp for steam heater 2 $490.00 $980.00 Emerson Regulators
XT-100 Xproof Stat for steam heater 2 $860.00 $1,720.00 Emerson Regulators
Water Tank
5200/4 4’ fluorescent fixture for outdoor Class1 Zone 2 application or
equal 1 $85.00 $85.00 Detronics
RL96 120volt 15 amp VT receptacles or equal 3 $7,500.00 $22,500.00 Detronics
HPS 82 120 volt 15 amp cord caps or equal for steam heater 1 $3,500.00 $3,500.00 Detronics
DS 185 VT switch 120 volts 15 amp for steam heater 1 $800.00 $800.00 Detronics
XT-100 Xproof Stat for steam heater 1 $1,500.00 $1,500.00 Puffer Swieven
Catwalk
Vapor tight Panel feed 1 $5,000.00 $5,000.00 Detronics
100 amp APJ complete with feed cord for 50 HP Setup HPU 1 $7,500.00 $7,500.00 Detronics
100 amp APJ complete with feed cord for 60 HP Reel trailer HPU 1 $3,500.00 $3,500.00 Detronics
208/120 volt manifold power feed cord complete with 30 amp APJ cord
cap for lights and receptacle power 1 $1,000.00 $1,000.00 Detronics
30 amp AR receptacle for the manifold power outlet 1 $1,500.00 $1,500.00 Detronics
Enclosed Panel 100 amp 208/120 volt complete with 12 ea. 3 pole
Circuit Breakers 1 $1,800.00 $1,800.00 Electronic Connectors (YEG)

November 24, 2019
Page 17 of 22
2 pole Circuit Breakers 1 $4,300.00 $4,300.00 Puffer Sweiven
30 amp AR receptacles 7 $3,000.00 $21,000.00 Fisher
V.T. manual motor starters for the 10 HP water pumps 1 $7,500.00 $7,500.00 Fisher
30 amp AR receptacle for the water pump outlet 1 $1,850.00 $1,850.00 Fisher-Rosemount
30 amp Cord caps for power feeds to the Water Pumps 1 $4,000.00 $4,000.00 Rosemount
Flexible power feeds to the doghouse 2@ 15 amp and 1 @ 30 Amp 1 $750.00 $750.00 Emerson Regulators
connectors and teck cable for installation 1 $500.00 $500.00
Estimation from Industry
Experience
Doghouse
Catwalk electrical by outside vendor 1 $1,200.00 $500.00 Detronics
connectors and teck cable etc. to complete the installation. 1 $1,500.00 $490.00 Detronics
RL485 4’ bubble lens fluorescent fixtures or equal 3 $1,750.00 $2,580.00 Detronics
Class1 Zone 2 400 watt metal halide fixtures or equal 4 $490.00 $1,960.00 Detronics
RL96 120volt 15 amp VT receptacles or equal 14 $860.00 $12,040.00 Electronic Connectors (YEG)
Vapor tight switches for steam heater 1 $50.00 $50.00 Puffer Sweiven
Wall mount A/C-c/w electric heater @5 kw 1 $75.00 $75.00 Fisher
provision for 15kw electric heater 1 $350.00 $350.00 Fisher
HPS 82 120 volt 15 amp cord caps or equal for steam heater 1 $1,000.00 $1,000.00 Fisher-Rosemount
HPS 82 120 volt 15 amp cord caps or equal for flood lights 4 $1,500.00 $6,000.00 Rosemount
600 volt –208/120 volt transformer 1 $1,800.00 $1,800.00 Emerson Regulators
Panel board 208/120 volt 100 amp 3 phase 1 $4,300.00 $4,300.00 Detronics

November 24, 2019
Page 18 of 22
Combination Building / Toolhouse/ Change room/Acumm
RL485 4’ bubble lens fluorescent fixtures or equal 7 $400.00 $2,800.00 Detronics
RL96 120volt 15 amp VT receptacles or equal 1 $490.00 $490.00 Detronics
Panel board 208/120 volt 100 amp 3 phase 1 $860.00 $860.00 Detronics
Power feed for a 20 HP accumulator 1 $50.00 $50.00 Detronics
HPS 82 120 volt 15 amp cord caps or equal for fuel pump 2 $75.00 $150.00 Detronics
DS 185 VT switch 120 volts 15 amp for fuel pump c/w rl96 receptacle 1 $350.00 $350.00 Electronic Connectors (YEG)
lot of power and control receptacles for main plug board 1 $1,000.00 $1,000.00 Puffer Sweiven
connectors and teck cable etc. complete the installation. 1 $1,500.00 $1,500.00 Fisher
provision for 15kw electric heater 1 $1,800.00 $1,800.00 Fisher
VFD Building
RL485 4’ bubble lens fluorescent fixtures or equal 7 $300.00 $2,100.00 Detronics
RL96 120volt 15 amp VT receptacles or equal 1 $24,300.00 $24,300.00 Detronics
Panel board 208/120 volt 100 amp 3 phase complete with: 1 $15,400.00 $15,400.00 Detronics
Mud Tanks
Engine /Generator control and 600volt power distribution system. 1 $25,000.00 $25,000.00 Emerson Regulators
Power distribution center for AC motor loads 1 $12,250.00 $12,250.00 Detronics
AC 1500 HP 600 volt drive 4 $5,000.00 $20,000.00 Linde

November 24, 2019
Page 19 of 22
Brake Resistor 1 $4,650.00 $4,650.00 Linde
Air Conditioner sufficiently sized to cool AC drives 1 $20,000.00 $20,000.00 Fisher
Power feed for a Series 12V-2000 Type G 1050 HP ,800 KW generator
complete with all lugs and terminations back to the distribution system. 2 $14,500.00 $29,000.00 Fisher
lot of power and control receptacles for main plug board 1 $790.00 $790.00 Fisher-Rosemount
connectors and teck cable etc. complete the installation. 1 $500.00 $500.00 Rosemount
90 kw light plant 30 $125.00 $3,750.00 Detronics
Provison for two 15kw electric heaters 1 $950.00 $950.00 Detronics
RL485 Flour. Lighting fixtures 2 $750.00 $1,500.00 Electronic Connectors (YEG)
400-Watt Metal Halide Flood Lights 6 $1,050.00 $6,300.00 ELectronic Connectors (YEG)
60 amp 600 Volt Custom V.T. panel complete with CBs 4ea.agitators,
hole fill pump, spare 30-amp outlet,. 1 $17,570.00 $17,570.00 Puffer Sweieven
Allen Bradley 609 BEW (or equal) Size 1 starters for the agitators
Stop/Start Station for the Mix Pumps rated for Class 1 Div. 2 Class1 Div
2 switches for the Exhaust Fan. 1 $13,540.00 $13,540.00 Fisher
Class1 Div 2 switches for the Steam Heater 1 $1,500.00 $1,500.00 Fisher-Rosemount
Class 1 Div 2 Thermostat for the Steam Heater Feed cables complete
with APJ 10487 ends RL 96 lighting receptacles 1 $789.00 $789.00 Fisher-Rosemount
RL80 lighting cord caps 1 $320.00 $320.00 Fisher-Rosemount
1 ea. Lot of stranded wire, cast boxes, rigid conduit, fittings, connectors
and teck cable etc. to complete the installation 1 $500.00 $500.00 Fisher-Rosemount

November 24, 2019
Page 20 of 22
POWER ENGINE/GENERATOR CONTROLS
Frequency meter
1 $785.00 $785.00
Emerson Automation Controls
LP
Voltmeter
1 $650.00 $650.00
LP
One- (1) set AC ground detection lights
1 $850.00 $850.00
LP
One- (1) 600 VAC ground test button
1 $900.00 $900.00
LP
AC bus surge suppression module
1 $6,500.00 $6,500.00
LP
Bus Overload Limit and Monitoring control system to allow power
limiting of the AC to prevent blackouts in case bus frequency starts to
drop below a set value. 1 $5,000.00 $5,000.00 Emerson Regulators
600 VAC FEEDER/DISTRIBUTION SECTION
One- (1) 600 volt feeder section to consist of the following components: 1 $7,500.00 $7,500.00 Emerson Regulators
One- (1) feeder breaker - 1000AF / 1000AT, bolt in construction for
Pump Building. 1 $5,800.00 $5,800.00 Fisher-Rosemount
One- (1) feeder breaker – 400 AF / 400 AT, bolt in construction for
Power distribution center 1 $6,700.00 $6,700.00 Fisher-Rosemount

November 24, 2019
Page 21 of 22
ELECTRONIC RIG CONTROLS
Main Driller’s Control Console 1 $75,000.00 $75,000.00 Emerson Regulators
Generator/Accumulator Control Panel 1 $45,000.00 $45,000.00 Emerson Regulators
Trailer Control Panel 1 $35,000.00 $35,000.00 Emerson Regulators
Pumphouse Control Panel 1 $28,000.00 $28,000.00 Emerson Regulators
TOTAL RIG COST $676,107.00
UPCYCLE ENERGY MODULE
OEM3000TM AC DRIVE SYSTEM 1 $8,700.00 $8,700.00 Emerson Topworx
OEMV3000 Controller Interface 1 $6,200.00 $6,200.00 Emerson Topworx
OEMV3000 Input/Output Interface Card 1 $3,000.00 $3,000.00 Emerson Topworx
Profibus Interface Card
1 $1,500.00 $1,500.00
LP
Lot Forced Air Cooling 1 $1,800.00 $1,800.00 Detronics
Semi-Conductor Fusing, 700V, 800Amps - Door Mounted Start
Pushbutton 1 $2,000.00 $2,000.00 Detronics
Automated Transformer 6000V 1 $5,000.00 $5,000.00 Detronics
AC Modular Control Bypass 1 $950.00 $950.00 Detronics
TOTAL MODULE COST $29,150.00

Memo
APPENDIX B - REFERENCES
Adams, M. (2019, November 21). Retired Drilling Rig Manager . (D. Dang, Interviewer)
BOE Report. (2019). Canada Rig Count. Baker Huges.
Howard, D. (n.d.). Oil Rigs and Power. Retrieved from Repco: https://www.repcoinc.com/about/blog/Oil-
rigs-need-power-too-bd.html
Thompson, K. (2019, November 18). Chartered Accountant. (C. Hoang, Interviewer)
Onshore Drillers Trending Toward Fast-Moving, AC Rigs. (2013). Retrieved 15 November 2019,
From https://www.naturalgasintel.com/articles/4958-onshore-drillers-trending-toward-fast-moving-
ac-rigs
Romanow, S. (2018). How Oil & Gas Operators Are Investing for Innovation. Automation.com, 1-2.
Statistics Canada. (2019). Retrieved 16 November 2019, from
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810025601

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