LETTER FROM OUR CEO AND PRESIDENT
Headwater is very pleased to issue our inaugural ESG report highlighting our ability to deliver responsibly produced energy and offer long term sustainable value for our shareholders. We are incredibly proud of our employees and the culture they have created. This culture is founded on honesty, respect, and integrity. We integrate the best interests of our people, communities, and the environment into our pursuit of creating value for our shareholders and our country.
2021 was our first year of operation in the Clearwater play, located in Alberta. We grew our corporate production by more than 200% while reducing corporate emissions intensity by approximately 50%. Over 1 million working man hours were required to produce these results and we can proudly say we finished 2021 without any lost time accidents and materially outperformed our total reportable incident frequency target.
Headwater is passionate about reducing our environmental footprint and being a responsible neighbor within our local communities. Throughout the year we implemented technologies including oil-based drilling fluid recycling practices and the use of saline water sources for waterflooding. Combined, these technologies took our corporate fresh water usage to less than 5 liters of water per barrel of oil produced, an 80% reduction throughout 2021. In addition, more than 5% of the capital spent in 2021 was awarded to local Indigenous companies; these companies are important to Headwater, and we will continue to build these relationships in 2022 and beyond. We also established a strong presence in our local communities by growing our local workforce.
As Headwater continues to grow, we recognize the importance of maintaining a foundation of strong governance practices with a focus on continual improvement. Headwater’s governance is demonstrated through compensation aligned with shareholders and ESG-related improvements, risk management and Board diversity with a focus on shareholder value creation and free cash flow generation. As part of Headwater’s commitment to increasing diversity, we have formalized our commitment to increase female representation on the Board to 30% by the 2023 annual general meeting.
We are very proud of the organization we have built and look forward to continuing to provide responsibly produced Canadian energy to the world. On behalf of the Board and management team, we would like to say thank you to our staff, Indigenous partners, local communities, service providers and investors for your continued support.
NEIL ROSZELL, P.Eng. JASON JASKELA, P.Eng.
CEO & Chairman President & COO