Corporate Governance

Although not mandated by law for private companies, corporate governance helps to ensure the long-term success of all companies, public as well as private. It supports value creation, responsible business practices, and the accountability of management to shareholders. It provides the structure for setting and pursuing corporate objectives, while addressing the needs of the social, regulatory and market environments. It specifies the distribution of rights and responsibilities among all stakeholders, and provides the rules and procedures for corporate decision making. It also provides a mechanism for monitoring and evaluating the effectiveness of the actions, polices and decisions undertaken by the corporation.

Red Wolf Corporation has voluntarily adopted a corporate governance program that promotes corporate fairness, transparency and accountability. The strength of Red Wolf’s program is based on a proactive and flexible organizational structure, which is aligned with efficient policies and processes.

The key objectives of Red Wolf’s corporate governance program include the following:

• guide the oversight of the Board of Directors, its relationship with management and its accountability to shareholders
• ensure that the value of the company is protected for shareholders
• promote responsible business practices that reflect industry best standards and meet or exceed all required legal and regulatory requirements
• attract external investment
• drive competitiveness
• reduce the cost of raising capital
• ensure the alignment of interests and the long term success of all stakeholders, including investors, employees, financial institutions, customers, suppliers, and the general public

Health, Safety and Environment

Although not mandated by law for private companies, corporate governance helps to ensure the long-term success of all companies, public as well as private. It supports value creation, responsible business practices, and the accountability of Red Wolf, is committed to creating and maintaining a workplace that is safe and secure and which preserves and protects the health and wellbeing of our employees, contractors, visitors, the public, and the environment. We will achieve operational excellence through the consistent application of established health, safety and environmental loss control principles and practices and the effective adoption of new and evolving technologies. The following objectives form the basis of our health, safety and environmental policies, and are reflective of the core values of our organization:

• We will utilize new and evolving technologies to enhance the management and delivery of our health, safety and environmental loss control systems and to provide greater levels of safety and security to all participants in Red Wolf operations.
• We will make the most efficient use of our resources in order to minimize the potential impact of Red Wolf activities on the environment and the people and places affected by our operations.
• We will regularly conduct assessments of health, safety and environmental risks and implement appropriate control measures to ensure that the potential for any negative impact to people and the environment is carefully managed and is kept as low as reasonably achievable.
• We will implement our health, safety and environmental loss control systems throughout all levels of company operations and will provide the necessary direction and support to all stakeholders to ensure consistent implementation and the desired results.
• We will have in place all required Emergency Response Plans (ERP), supported by effectively trained and appropriately equipped personnel, at all levels of the organization.
• Our loss control systems will ensure that all personnel engaged in work activities on Red Wolf sites are competent in the skills required to complete their tasks and that each individual is aware of Red Wolf loss control policies and their responsibility to implement and support those policies.
• Through our loss control systems we will ensure that the performance expectations of third party services are clearly defined and communicated and that performance results are continually evaluated for improvement opportunities.
• We will have systems in place for the reporting and investigation of incidents as required by regulation and will ensure that any corrective actions necessary for the prevention of reoccurrences will be determined, communicated and implemented in an expedient manner.
• Our loss control systems will contain a document management program to ensure that all required health, safety and environmental documentation is retained in a manner that is protected and accessible.
• We will monitor and regularly evaluate Red Wolf progress, internally and externally, against benchmarking tools in order to continually improve the Company's health, safety and environmental performance

Quality Management

As part of our mandate for achieving operational excellence, Red Wolf has designed a comprehensive Quality Management Program that will assist the company in attaining the highest possible level of performance. Integral to the success of this program is Red Wolf’s commitment to completing ISO 9001 and ISO 14001 certification within the first two years of operations. ISO certification provides the framework for increasing efficiencies, lowering costs, reducing corporate risk, and ultimately, increasing the value of the company for shareholders.

The oil and gas industry operates in an environment that is subject to a variety of risks, including the handling of flammable and explosive fluids (liquids and gases), often at high pressures, utilizing a variety of systems and processes. Accordingly, considerations for the safety of site personnel and the public are of paramount importance and achieving the highest levels of safety requires rigorous conformity to all required engineering, user and regulatory requirements. In addition, safeguarding the environment and protecting business continuity require the highest possible level of operational integrity. To meet these requirements, Red Wolf’s Quality Management Program will ensure that all necessary QA/QC policies, procedures and resources are implemented across all levels of the organization, and that all personnel understand and work towards defined and measurable operational objectives.

Through the implementation of ISO Standard systems, Red Wolf will be ideally positioned to document and address actual and potential non-conformances, not only internally but also those occurring externally in the company’s service and supply chain. Records of key performance indicators will also be kept and regularly audited and evaluated against internal and external criteria to determine the effectiveness of existing practices, and driving continual improvement in the company’s overall performance.