WHY CSG?

CSG has developed its business plan from an understanding of the problems faced by CSG companies Australia wide.

CSG understands the issues

Problems and issues highlighted through consultation with CSG industry professionals include:

1.The cost of drilling exploration wells has become prohibitive.
2.There is too much downtime and standby.
3.Slow and poor data turnaround.
4.Impairment of strategic planning
5.Administration and invoicing issues.

CSG provides cost effective solutions to help CSG companies overcome these issues. To do this, CSG has  analysed the reasons for the above mentioned problems and inadequacies.

1. Cost is prohibitive. Issues pushing prices up include:

• Lack of competition between certain contractors, and scarcity of equipment/staff creates a ‘we will take the best price we can get’ attitude.
• Multiple contractors increase costs associated with extra administration staff to handle invoices,  payments and banking, as well as costs associated with managing and controlling independent  contractors.
• Downtime and standby issues drive costs up and productivity down.
• Data turnaround is affected by contractor and supplier commitments from other clients. This increases  costs due to inability to forward plan, standby waiting for data, and the inability to use data in a timely fashion for stock market announcements and resource estimates.

2. There is too much downtime and standby.

Through our analysis of the CSG industry, CSG has identified a great deal of downtime and standby during exploration and production phases of CSG prospect development.

• Standby and downtime has usually been associated with:
  • Drilling crew changes
  • Waiting on other contractors
  • Waiting on equipment
  • Waiting on drilling and other forms of consumables
  • Miscommunication between contractor companies
  • As well as those factors harder to control like equipment breakdown – which seemed to be extended due to lack of redundancy/contingency plans.
• We have also noticed that there can be downtime resulting from inefficient accommodation services. Driving long hours to site, whether it is for the start of a shift or a crew change, reduces productivity and negatively affects safety.
  

3. Slow and poor data turnaround.

• Data turnaround is affected by contractor communication problems, contractors being snowed under with work from various clients, contractors subcontracting others, and lost time due to samples or data being transferred amongst various companies and people –all of which have no vested interest in each other, or their clients profitability.
• CSG staff members productivity will be negatively affected by slow data acquisition. This will increase stress, create idle and therefore expensive and non-productive staff members as well as hampering the financial security of the CSG company.
  

4. Impairment of strategic planning

• Slow data acquisition results in an inability to make sound business decisions and to strategically plan ahead.
• Initial risk assessments are not carried out and planning is negatively affected. There is a need for advanced assessment of project areas in regards to support services (diesel fitters, earthmoving companies, boilers makers etc) and field based personnel to inform management of weather conditions and any other likely sources of downtime.
  

5. Administration and invoicing issues.

• Dealing with several contractors involves a lot of administration, invoicing and banking.
  Dealing with a number of companies requires extra staff in order to track and maintain invoice payments and invoice integrity.
• Accounting and bookkeeping staff are not used effectively because they are dealing with so many suppliers. This can lead to errors and omissions and even over-payments.
  

How CSG works to solve these issues

Outlined below is how CSG works to solve all the issues outlined above.

• CSG will work together with our clients, and our suppliers, to ensure a reasonable and cost effective drilling rate.
• CSG drilling operations has a contingency and redundancy regime in place which greatly reduces downtime. Because CSG is integrated we eliminate downtime resulting from miscommunication as all of our operations  and entities work together and are managed from a single location.
• CSG Accommodation Services provides quality, comfortable accommodation ON SITE. This reduces downtime from crew changes and daily travel. It also works to augment site safety by providing a first aid room and air conditioned rooms to escape high temperatures.
• CSG employs skilled individuals to work ahead of any program. Their job is to set up accounts  before we arrive, to source suppliers of equipment, expertise and any other resource we may need, all of which  are close to the project area. This ensures we have adequate back-up in the event of a breakdown. Their job also includes doing risk assessments and informing head office of weather conditions or any other eventualities likely to affect the project.
• CSG considers data submission to our clients to be of utmost importance. We have well developed systems in  place to ensure data is collected and made available as soon as possible. We have a company server which hosts  all of our clients data, whether it be coal quality, gas content and composition, geological data, survey, geophysical data, reports or whatever a client needs. Our clients all receive a log-in name and password so their  data can be accessed immediately, 24/7. The server is secure and monitored by independent IT specialists in  order to protect client data. All data stored on our server is deemed confidential and is only accessible by CSG  staff working on that project, and allocated staff from our clients offices.
• As well as a data portal, our clients will have access to spreadsheets which tabulate the status of their data,  letting them know exactly where and at what point their data is at.
• By being integrated, CSG ensures data is submitted as soon as it is available. With CSG managing all  aspects of the project, it will ensure that our clients can make timely and effective business decisions  and can strategically plan their operations effectively.
• Another advantage of CSG’s combined service service means our clients only deal with the one invoice. All associated invoices are attached to the one main invoice for perusal, but only one payment is necessary. This means our clients accounts and bookkeeping staff are able to track and monitor costs much more effectively.

View an outline of the component services that make CSG Services a valuable asset in any CSG operation on Our Services.