At Stoneham Drilling, we aspire to be recognized as a world class performer through our ability to provide a service that excels with health, safety and environmental excellence as its trademark. We are strongly committed to providing service excellence without compromising the health and safety of our employees, customers, suppliers, or the general public. Our policies and practices, along with customer requirements, are an integral part of how we conduct our business.

The health and safety of our personnel is paramount in everything we do, and we have bolstered this commitment by choosing to work with like-minded customers who share our view and maintain high safety standards. This alignment with customers that share the same values and beliefs has enabled us to deliver industry leading results in reduced incident frequencies. These results have, in turn, translated into favourable discounts in our Alberta workers compensation premiums.

We believe the best results are achieved through a coordinated effort, mutual understanding, respect, and consideration; we seek to encourage rather than punish. We lead by example, and our proactive safety program encourages active participation by all employees - from entry level to senior management. This approach has effectively facilitated open communication that has stimulated continuous improvement. Our program addresses training needs, tools, supervision, and intervention and includes providing situational and technical training for employees, performing regular equipment maintenance, and conducting frequent safety inspections. Performance is measured through frequent internal program audits and annual external safety audits.

We know that crew retention is fundamental to continuous improvement. Our focus on safety, our newer, efficient equipment and our opportunity-rich work environment has contributed to Stoneham's reputation as an attractive employer, which means that we are able to attract and retain the industry's best people. This ultimately leads to operational excellence and customer satisfaction.

Stoneham Target Zero Initiative

At Stoneham, we believe that safety is the result when all aspects of the organization's attentions are aimed in a positive direction. The Target Zero initiative strives for an incident-free oil industry workplace. We have taken the target zero initiative several steps further to include: Target Zero for Disrespect, Target Zero for Complacency, Target Zero for Incidents, Target Zero for Failures, and Target Zero for Downtime. We are also committed to providing a substance free workplace for all employees. In 2007, we expanded our substance abuse program with increased safety-sensitive site testing.

Environmental

We work to minimize the environmental impact of our operations. We support and encourage efforts to minimize the impact of our operations on the environment and the community and we are responsive to the concerns of government, the general public, and our employees regarding our activities. Our operating practices comply with provincial standards for oilfield waste management. These standards and our expectations with respect to environmental protection are regularly communicated to our personnel to ensure compliance. Environmental protection measures are incorporated into our regular procedures for equipment, site inspections, and waste disposal, and we use environmentally friendly products.