Midstar designs and implements procedures to drill wells as safely and economically as possible. We work closely with the drilling contractor, service contractors, and compliance personnel, as well as with geologists and other technical specialists. Midstar is responsible for ensuring that costs are minimized while getting information to evaluate the formations penetrated, protecting the health and safety of workers and other personnel, and protecting the environment.
Midstar Energy Corporation is now offering the industry’s first hybrid turnkey drilling services. The hybrid turnkey drilling and completion services are designed so that Midstar Energy acts as the project manager and performs all services and functions of the drilling and completion process with consultation and input from the operator. The operator has the discretion to control all aspects of the drilling process within the scope of an approved AFE and retains full responsibility and liability for the project.With conventional turnkey drilling contracts, the drilling contractor assumes full responsibility for the well in accordance with predetermined milestones. Examples of drilling milestones are successful running of logs at the end of the well, the successful cementing of casing in the well or the completion of the well. Until the milestone is reached, the contractor bears the full risk and financial responsibility of the well, therefore the cost of drilling the well under this arrangement may be inflated.
Midstar functions as the operator’s representative with the hybrid turnkey drilling service and identifies several “pause points” in the process which allow for the operator to provide full funding according to the approved AFE. Midstar insures prompt payment to the vendors upon completion of the services and the operator retains discretionary control of all the services required. Midstar secures proposals from vendors based on the following key criteria: service quality, health safety and environmental practices. product performance, area expertise, product availability, and competitive pricing.
Midstar Energy hybrid turnkey drilling service allows operators who may be new to the industry, have a depleted staff, or financial challenges, to drill wells economically and safely without having to ramp up an internal operations staff.