What’s going on?

MAY 2011

WE WANT TO HEAR FROM YOU! This is your newsletter, so please share your stories, your achievements and your ideas to help improve our business. Queries and contributions can be emailed to jennifer.lambert@lucas.com.au

Marais-Lucas Micro trenching technoLogyready to revolutionise the NBN debate.

Our people, our projects, our passion

Marais-Lucas showcased its micro trenching capabilities to New

Zealand’s Economic Development Ministry at a street trial held in February. The New Zealand government is exploring options to deploy a fibre optic broadband network, similar to the network being considered for Australia.

Debate about the feasibility of a National Broadband Network (NBN) has centred around the high cost of cable installation and the potential disruption to local communities and the environment.

The team from Marais-Lucas offered an innovative solution using micro trenching technology and were invited to demonstrate their experience and

techniques on the residential streets of Kelson, Lower Hutt in New Zealand.

The Marais-Lucas team trenched and installed fibre optic duct past approximately 100 homes, with minimal disruption to traffic and local residents. Government officials and media attended the trials, where we showcased Cleanfast – a turnkey micro trencher that simultaneously cuts the trench, vacuums the waste and lays the cable – and Sidecut – a mini version of the Cleanfast machine which is ideal for tight spaces and footpaths.

Both machines cause minimal disruption to the environment, with in-built sound proofing and air filtration. The precise cutting tool reduces the

Did you

know...Lucas joined forces

with the French

engineering firm,

Groupe Marais

in 2009.

Marais-Lucas micro trenching technology

Spaces don’t come much tighter than this.

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size of the trench and the amount of spoil to be removed.

Marais-Lucas Managing Director, Gael Courcoux was pleased with the performance of the team.

“We trialled the Sidecut machine on grass verges for the first time in the world. Due to the small adaptation we

did at the back of the wheel, we opened absolutely perfect trenches, 55mm wide and 250mm deep,” Mr Courcoux said.

“This little machine is really incredible. It is probably the only one which can cut through successively different surfaces without stopping and without changing the cutting tool.”

In Australia, Marais-Lucas has already installed the first few kilometres of fibre optic cable in Hobart, as part of the NBN rollout in Tasmania. We are hoping to become one of the main players if an Australia-wide NBN is approved.

To learn more about Marais-Lucas, visit our website: maraislucas.com.au.

Did you know...

Groupe Marais has installed more than 40,000km of ultra fast broadband networks in Europe, the Middle East, Africa and North America.

This little machine is really incredible... it can cut through different surfaces without stopping and without changing the cutting tool.

Marais-Lucas on show in NZ.

Trenching with precision in a Kelson residential street.

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merciOui Oui! Au revoir

Salut!Bonjour

Good news for all you Francophiles: the Marais-Lucas joint venture has brought a little slice of France to Lucas. Managing Director Gael Courcoux and Business Development Manager Nicolas Gillard are relative newcomers to our shores (and their French accents are delightfully intact). Both are here to introduce micro trenching to the Australian market. Originally employed by the French engineering company, Groupe Marais, Gael and Nicolas have spent the past 18 months introducing local government officials and infrastructure providers to our leading-edge trenching technology. As you can see from our cover story, their hard work is generating keen interest both here and with our Kiwi neighbours.

Brush up on your high school French and be sure to say “Bonjour” next time you see them in the Macquarie Park office.

Our French connection

looK Out FOr

Based at: Macquarie Park

Joined Marais-Lucas: June 2010

Responsible for: the development of the joint venture in Australia. Focused on Power and Wind Farm industries.

A good day at Lucas is: a coffee (cap with two) at the Pinnacle, a morning spent finalising a tender, a phone call from a client to clarify a quotation, an afternoon meeting with Gael and a videoconference with France to finish my day... I forgot to mention the “How was your weekend?” discussions in the office and the good laughs with people at my desk.

Life before Lucas: In France, studying. But to tell you the truth, I spent a lot of time enjoying the student life in Toulouse. It’s the Rugby Union capital of France and is only three hours drive from Barcelona, Biarritz, Montpellier, Bordeaux, Pyrenees...

When I’m not at work: I am at the beach or on a business trip. You can try Kings Cross or the Rocks on Friday night, but don’t tell anyone that you saw me. The next two weeks, I’ll be driving from Alice Springs to Sydney in a Camper Van, just enjoying Australia.

NICOLAS GILLARDBusiness Development Manager – Marais-Lucas

GAEL COURCOUXManaging Director – Marais-Lucas

Based at: Macquarie Park

Joined Marais-Lucas: March 2009

Responsible for: the creation of the JV and its development in Australia and New Zealand.

Developing a long-term business using Marais’ trenching technologies.

A good day at Lucas is: meeting new people and starting to develop a new business in a new industry. It’s great when you get some good news about a tender or have an exciting meeting with new prospects.

Life before Lucas: I started my career in the French Caribbean islands as a young civil engineer and then worked for more than 15 years for different companies of Suez Group. Before moving to Australia, I managed Marais’ Moroccan subsidiary. It was a fantastic business and human experience with big fibre optic networks to be built in the very busy main cities.

When I’m not at work: I spend a lot of time with my wife and my doggy discovering the fantastic Sydney Harbour and looking for places along the coast as nice as my beautiful place in Brittany. I recently discover something close in Margaret River-WA, very close !!!

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Salut!Our French connection

UnDergroUnD Drilling GONE But NOt FOrGOttEN

We said farewell to our Underground Drilling Division (UIS) in March when Industrea Limited bought it for $25.5million. The sale was part of a larger plan to focus our business on surface drilling operations and completions.

Underground drilling has a long history with Lucas, starting in 2000 with two rigs and three people. In the early days of UIS, the underground drilling market was small and monopolised by an entrenched competitor. Lucas made inroads into the industry thanks to quality personnel and their commitment to safety, client-focused service and professionalism.

In the last decade, the UIS team built a reputation for handling some of the most challenging drilling conditions. At the time of the sale, the division had grown from its humble beginnings to an industry –recognised leader comprising 45 people, seven drilling rigs and eight survey systems.

Long-term UIS team member and Project Superintendent, Ray Brockway, farewelled his time with Lucas with these words: “I just wanted to thank all those of you who I worked with or along-side or got to know one way or the other. I have thoroughly enjoyed my time with the Lucas team and will miss the working friendships formed. Just under nine years of service and I enjoyed every minute.”

A few of the original members, Todd Herbert, Chris Hill and Brett Tredinnick, are still with Lucas and have become part of the senior management team.

Now the Drilling General Manager, Brett Tredinnick acknowledged the UIS Division played a significant role in the evolution of Lucas.

“Underground drilling was a formative part of our business from the start,” Brett said.

“We were really the underdogs and had to fight to build a name for ourselves. It’s a credit to the whole team that we came from nowhere to a position of strength that’s attracted an international player like Industrea. A number of the UIS team have been with Lucas Drilling almost from the beginning and some of the guys had eight or nine years under their belts. We’ve said goodbye to long-term, loyal colleagues and they will be missed.”

TRAINING INVESTMENT pAyS OFFJustin Edwards, a truck driver with our Drilling Division, recently completed his Cert IV in Frontline Management. Graduates are required to do a presentation to their managers and peers as part of their final assessment. Justin convincingly argued the case for taking better care of our equipment and brought his own truck along as an example.

A total of five groups have now completed the course. Negotiations are underway with the Australian Institute of Management (AIM) to provide Lucas employees with training in Project Management. Stay tuned for more details.

iN

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socialpage Search

What’s on your mind?

Kerry Brydon It’s about time he got a real job.

April 8 at 10.40am · Like

peggy Blair Are you sure he’s not auditioning for Deal or No Deal?

March 12 at 3.15pm · Like

Daniel Sweeting • Divisional Manager, Production Drilling ServicesMike McDermott breaks out of the boardroom.

How do you like my new rig clerk?

March 23 at 2.20pm via iPhone · Like · Comment

Terry Frankish • Information Management Manager, Lucas GroupSimon Soon gets all the best freebies.

For one brief moment we were all wondering whether Simon had won the lottery or was filming a scene from Underbelly. A briefcase full of cash ($120 dollar notes) appeared in the office and got hearts thumping...for about 3 secs. Turns out it was a promo by Canon.

March 4 at 9.04am · 7 people like this · Like · Comment

Nick Swan C’mon Col, how hard can it be? Belgium’s flat. I’m about to start the North Pole Marathon carrying both a knee and a calf injury. At least you’ve got a seat!April 5 at 4.41pm · Like

Colin Carrigan • Group Financial ControllerBelgians are crazy for cycling

Just caught a couple of the one day road races. Paris to Roubix is much bigger than the Melbourne Cup. The crowds are crazy. About to do 8 or 9 days of riding with some friends. Not looking forward to the head winds, the hills and the leg cramp.

April 5 at 1.25pm via iPhone · Like · Comment

Theresa Lisle • Contracts Administrator, Exploration Drilling ServicesNot a Bridezilla in sight! Ale Jimenez marries in style.

All that planning and preparation paid off. The bride looked beautiful, the groom was smitten and the guests behaved (mostly). It was great to see Ale and Miguel looking happy and radiant on their big day. Just don’t ask what married name Ale will take... apparently that’s still up for debate.

April 16 at 3.30pm · Like · Comment

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Home Profile Account

Brett Tredinnick Well done Dribs. You and your team are consistently delivering results in safety and production.

March 1 at 12.35pm · Like

Dryden Strange DRS087 was cut off. The Leichardt Hwy at Nine Mile Creek flooded. Boys were trying to get to the rig, but couldn’t go any further.January 18 at 11.37am · Like

Christine Englund Our thoughts are with everyone in Brisbane and Nth Qld. The Macquarie Park office is offering support by fundraising for the Salvos. Hope our teams further north are all OK.January 20 at 8.15am · Like

Dryden Strange • Project Manager, Production Drilling Services6 Month Milestone achieved

Origin sent through their congratulations to the crew of DRS087. We are one of their most efficient and best performing rigs. Rig has gone 6 months without a recordable injury and we’ve set a new drilling record in CSG (previously held by Ensign).

March 1 at 10.03am · Like · Comment

Jason Sentinella • Contract Manager, Exploration Drilling ServicesCleaning-up after the Brissy floods.

My father-in-law’s house was inundated. It took 2.5 days to get rid of the mud. We had to gut the whole house. Had 50 volunteers helping us. We didn’t know most of them. Makes you proud to be an Aussie.

January 18 at 9.15am via iPhone · Like · Comment

Anne Sheddan Sounds impressive, but does it make coffee??

February 18 at 9.12am · Like

Jordan Hooper • New Equipment Engineer, Drilling ServicesCheck out our new rig.

This is DRS112, one of 5 new rigs that have just gone into the field. This one’s a Sandvik DE810 (UDR650) fitted with a KL rod loader, fire suppression system, sound enclosure, engine compliant with tier 3 emissions ratings, hydraulic walkways and handrails. It’s also got a winch limiter, rod makeup camera and rod fall protection.

February 17 at 3.33pm · Like · Comment

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We’ve had some significant contract wins across both divisions...BciRobertson Sewerage Treatment Plant $19M - April 2011 startMayfield to Broadmeadow Pipeline $10M – April 2011 startTea Gardens Substation $650,000 – Jan 2011 start

DrillingSantos CSG Production (12 month contract extension) $10M – ongoingArrow Energy Chip & Core Holes $6M – April 2011 startAnglo Coal Grass Tree SIS (10 month extension) $6M – ongoing

ring thE BELL!!

MEssaGE FrOM aLLaN caMPBELL, cEO

The Company is extremely busy at the moment,

resulting in significant demands being placed on

management and staff.

Firstly, ERP will “Go Live” in eight weeks. This is the critical

stage where training and familiarisation of the system takes

place. Super Users, Business Leads and all those directly

involved require everybody’s support and assistance to

ensure that the launch is a success.

Secondly, we are recapitalising. As you are aware, the

prolonged period of wet weather in the second half of

2010 and some problem projects have caused cash flow difficulties in 2011. We have

been engaged in an exercise for the past four months to introduce new capital into

the Company and strengthen the balance sheet. This is going well and should be

concluded by the end of May.

Thirdly, we have reorganised and restructured both the Drilling Services and BCI

Divisions in an endeavour to reduce inefficiency, duplicated services and to provide

a sharper, more client responsive service offering. In Drilling, this will result in

some satellite yard/office closures. In BCI, this will see the business organised along

activity/sector lines, as opposed to function.

Fourthly, we are spending a great deal of effort on winning work. As the economy

recovers and the resources boom enters a new phase, we have positioned ourselves

well in the emerging coal seam gas sector and the expansion of the coal sector. The

Drilling Division is fully booked at present and we are having to knock back work!

In addition, we have positioned ourselves well in the water & waste water sector and

it is in this sector that we have recently won a lot of work.

Our safety performance continues to dramatically improve, well done everybody!

As at March 2011, our company-wide TRIFR is 9.8 and LTIFR is 1.2. The challenge is

now to stay in the Safety Zone and build on our achievements as we strive to create

the safest environment for any company in our sector. Remember, it requires the

commitment of all of us to be ever vigilant, considerate of our work mates and

respectful of our own personal safety.

The newsletter gives you an indication of the number of things happening in the

Company at present. We are certainly active! Due to lack of space, we haven’t

included many interesting and exciting achievements... next time.

I thank you all for your efforts during these demanding times and ask for your

continued support during the next few months. All of these initiatives are business

improvement exercises – the successful conclusion of which will make our daily

working lives easier and more pleasurable. Please work with us to get them over the

line. Look out for, and look after, each other.

Regards,Allan

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I grew up... with my brother in Parramatta. It was pretty rough there back in the sixties, but we didn’t know any different.

My first job was... selling tools.

I got into drilling... through a mate who was a driller with McDermotts. I got a job off-siding for him back in 1980. I could never work inside. I tried it once. I went to a factory, can’t remember what I was doing there – but it was that boring I didn’t last long. I like moving around. With drilling, you’re never in one place for too long and every day is different. It’s repetitive work but every hole is a different hole and nothing ever goes the same. It makes you think all the time.

When you talk about safety at work... it hasn’t really changed. We always wanted to go to work and come home. Now you’ve just got to document it more. Keep your eyes on the job and use common sense - it’s not that complicated.

People know me for... being a bit of a bastard if my ute gets dirty. If you’re with me, you’ve got to put a clean shirt on before you get in the ute. It doesn’t

take much to keep yourself clean and it says a lot about your work standards. I always look after my equipment.

My advice for anyone new to the industry is... learn something from everybody. Never think you know everything, ‘cos I’m still learning every day. I don’t care if someone’s only been on the site for one day. I’ll listen to them. I’ve learnt a lot of good things that way.

If I could change one thing, I’d... get rid of paperwork and computers. There’s too much theory and not enough practical. A lot of people know how to move levers up and down but don’t know enough about what’s going on down the hole.

I’m looking forward to... a little bit of fishing. I’m happy to get up and go to work. I enjoy working. I couldn’t think of anything worse than retiring. I think I’d just be too bored.

Bob ponfieldExploration Driller, NSW

5 minUteS With...

Bob with the crew of DRS048. Hope these guys brought a clean shirt for the ride home!

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you will all have read about Project Cornerstone in previous newsletters. This is our systems upgrade to take our business to the next level and is critical to the future success of our company. Our current management and accounting systems are nearly 10 years old and it is essential that we upgrade these if we are to remain competitive.

The word “Cornerstone” is exactly what this project is all about. We have chosen to use Oracle’s Enterprise Resource Planning (ERP) system, one of the world’s best. For the last six months, a dedicated team has been re-engineering all our business processes (BPR) based on Oracle’s best practice system, procedures and training materials.

The staged introduction of Oracle will commence early July 2011.

People from every business unit have been asked to get involved. They’re known as Super Users and will test the new business processes and identify how their team will be affected by the changes.

Super Users: @ Provide a reality check about how

current processes and reporting requirements work

@ Test the new work flows

@ Flag what will change under the new system and who will be impacted

@ Identify and work through issues to ensure standard approaches are used across Lucas

@ Provide feedback to the project and help solve problems

What’s next?Most office-based people will be involved in one way or another in the coming

weeks. There will be about 100 training sessions conducted throughout the whole business on all the re-engineered processes and all the business functions. We have engaged Technical Trainers to write and deliver Lucas-specific training modules, with workbooks and exercises that will be delivered face to face for everyone required to use ERP as part of their work.

People who won’t be using ERP as part of their day-to-day job may see some minor changes to frequently – used forms including payslips and timesheets. These changes will be communicated via tool box talks and team meetings across the business. Updated forms, reference documents and process flows will be available on the Lucas Management System (LMS)

Upgrading our business processes via Oracle’s Enterprise Resource Planning System is critical to our future success. So important is this change, that CEO Allan Campbell meets with the ERP Project Team and the Executive Team weekly, to make sure that all issues or project risks are discussed and tackled.

Mr Campbell says this project is a “cornerstone” for Lucas as we strive to achieve best practice with the best systems, processes and procedures.

“The new systems will be a company transforming initiative and I therefore encourage all of you to embrace this change,” he said.

Be part of our business transformation: ask questions, get involved, understand what’s changing and participate in the training and communication sessions coming your way soon.

Email your comments or queries to: askCornerstone@lucas.com.au

erP UPDAtePrOJEct cOrNErstONE

These are our Technical Trainers Robyn Wilson, Christian Kelly, Fiona Beecher and Donna Christie

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remote operations. This portable communications kit contains everything a project site needs to stay connected with the rest of the world - router, computer, printer, microwave and toaster (ok not the last two, but you get the idea).

The Service Desk team often work around the clock to keep our operations connected and diagnose and resolve issues for our remote teams. Oh, and they have some of the best lunches in the office (must be their mixture of nationalities -Indian, Scottish, Burmese and Australian) Just don’t mention the soccer... or the cricket.

“Service Desk” sounds tame, but for David Ross, Mark Htoo, Daniel Cotterell and Shamsher Katoch it pays to have a cool head when everything else is in meltdown.

When your computer crashes, your phone dies or you just need someone to talk to, these are the guys who untangle the cords, check everything is plugged in and keep a straight face as they remind you to turn the power switch on.

They’re often a lifeline to our teams in the field and created the Rig-In-A-Box concept especially for our

Mark Htoo, Daniel Cotterell, David Ross and Shamsher Katoch.

WhO yOu GONNa caLL?

The Lucas Design and Construction Water team, headed by Rob Wale, is due to start its first project – an A$19 million sewerage treatment system for the 2000 residents of Robertson.

Lucas will be installing an advanced sewerage treatment system using Siemens membrane technology. The system removes 99.99% of all contaminants, allowing the treated water to be safely used for irrigation and discharge into reservoir. We’ll be

constructing a reticulation network, including a 14km pipeline and

a 49 million litre treated water storage dam, to

connect all the residents and

commercial

businesses to the new sewerage treatment facilities.

Our role also involves working closely with the local community. We’ll have a dedicated Community Relations Manager to liaise with residents, farmers, business owners and tourism operators. Alan Massoud is the Project Director and has brought his extensive pipeline and construction experience to the project. He is supported by Sri Nayak who is responsible for the advanced sewerage treatment plant design.

Future projects: Lucas aims to be a main contractor for similar combined sewerage treatment systems, reclaimed water systems and sewer reticulation networks. More projects are already in the pipeline.

Back Row L to R: Alan Massoud, Project Director; Sri Nayak, Design Manager. Front Row L to R: Robert Wale, Business Development Manager; Tom Amrien, Site Engineer.

WATER TEAM WINS THEIR 1ST pROJECT

SPotlightiN thE

it BUSterS

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Some people like a little moderate exercise. Others want something more strenuous. Then there’s Company Secretary Nick Swan. No longer satisfied with marathons such as the Blue Mountain’s 6 Foot Track, the 32km Beyond the Black Stump bush run (held in searing summer heat) or Hawaii’s Honolulu Marathon, Nick recently competed in one of the most difficult and remote marathons available to runners (who have taken leave of their senses) – the North Pole Marathon.

Held in temperatures of minus 32 degrees, treacherous ice terrain and often howling gales, competitors run on the Arctic ice floes amidst dramatic ice sculptures carved by the wind.

Q: How do you prepare for extreme cold weather running when you live in Sydney?

A: By training in a commercial food freezer, obviously. Nick donned the full thermal kit and ran on the spot amongst the frozen peas and ice cream for an hour at a time as part of his training regime in the months leading up to the race.

Due to start on April 7, the race was delayed by a day due to a crack appearing in the North Pole runway; a timely reminder that there is only 6-12 feet of ice separating runners from the Arctic Ocean. The 42km race, run on a 3km circuit, started at 10pm (this is the Land of the Midnight Sun) with the first competitor crossing the finish line 4hrs 54mins later. Nick finished in a credible 7hrs 12 mins.

“I could have shaved at least an hour off that time, except that I was hauled off the circuit for medical attention to some early stage frost bite. My balaclava had frozen to my face,” Nick said.

“It was an amazing experience. The landscape was really dramatic, like a massive ice sculpture. It was surreal to think I was standing on the top of the world. Also that I was running through the night yet it was broad daylight throughout. But nothing could have prepared me for the cold. Now there’s the South Pole Marathon to do, but I think I’ll stick to warmer climes from here-on.”

Nick Swan TOO COOL

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