VisuNet XT OEM Tiers - Sales Strategy

The VisuNet XT is targeted at Oil and Gas applications. The primary application is upstream exploration and production, in particular LWD (Logging while drilling) or MWD (mudlogging while drilling). Secondary application may present themselves on rigs, midstream (custody transfer terminals) and downstream (terminals and refinery tank monitoring/blending). Other markets with outdoor applications may accept the product for its high bright display, temperature range, processing capability, etc., but these are secondary and may be pursued as they present themselves.

Three OEM tiers in Upstream Exploration

The top tier customer profile is a full service or multiple service OEM. These customers focus on complete solutions for rig applications including MWD/LWD. A secondary area is a driller’s chair, driller’s console, driller’s cabin, ballast control systems, blow-out prevention systems, drawworks, topworks, and coil tubing. The atmosphere in these applications ranges from General purpose to Zone 1. The majority have migrated to Zone 2 / Division 2.

Tier one These companies include NOV, GE (Geolink/Hydrill, Sondex), , Pathfinder, Canrig/Nabors, Schlumberger, Inteq, Transocean, Weatherford, FMC, Insco. This is a partial list, but the key attributes are: • Multiple divisions • Global supplier • Greater than $1 billion in annual revenues

The challenge is to find the right division and right set of contacts. Usually, this will be a director of engineering or engineering manager, but in larger companies, it may be a VP of engineering.

Tier two These OEMs may be limited in their offerings, or focused in one or two specific applications and are sub $1 billion in annual revenues. These include Forum Energy Services, Dyna Drill, Pason, Datalog, Accutech, Tesco, Axon, Atlantic Directional, etc.

The third tier OEM will be small start-ups or providers of mobile land rigs. Usually these are sub $25 million companies, highly specialized, or working on venture capital or shoestring budgets. Cost will be a driver, so they will either design their own, or buy lower end products. With these companies, we want to address a) international reach, b) failure of existing suppliers, c) growth plans or alternative products.

Tier three These OEMs include Rigminder, Rigmanager, and a ton of others…. These are primarily OEM suppliers to larger companies, drillers or End users.

End Users These companies include BP, Chevron, Shell, Tesoro, Valero, Petrobras, Pemex, PetroJam, etc. These end users are also candidates for our products at their sites, but often have an approved product list to select from. If you come across this obstacle, contact Lou Szabo or Stefan Sittel with the contact information, so we can devise a plan to pursue corporate approval.

Rig and Drill There are seven types of offshore rigs: Barge, Drill ship rigs, jackup rigs, platform rigs, semi-submersible rigs and submersible rigs. Land driller rigs typically fall into two categories, Mobile and fixed. The top 10 US land drillers with 30+ rigs in through 1 May, 2013 include:

1. Helmerich & Payne, Inc. 2. Patterson UTI Drilling Company, LLC 3. , Ltd 4. Precision Drilling Corporation 5. , Inc 6. Nomac Drilling, LLC 7. LTd 8. Pioneer Energy Services Corp. 9. Savanna Energy Services Corp. 10. Cactus Drilling Company, LLC

These companies may have their own division that with utilize are products (Canrig / Nabors), subcontract or lease equipment from Tier One and Tier Two suppliers above.

Some web resources: http://www.rigzone.com/search/c/companies/drilling_well_services/directional_drilling/ https://oilandgasglobalnet.com/index.php?option=com_sobi2&catid=18

Sales Strategy

Tiers One and Two: 1. Determine if and which division of the company is involved with Drilling (MWD/LWD). 2. Contact the director of engineering or R&D. 3. Determine their current supplier and if they have any issues with them. If you hear Azonix, GE Wolverine, ISIS, Daisy Data, or RStahl. 4. Ask them how the product is being used (logging, drilling, blow out prevention, etc). 5. Provide the Datasheet for the 15” and 19” highlighting the key selling points below. 6. Ask if they are interested in reviewing the product and determine a configuration from the datasheet. 7. Ask if they accept the unit, what is their timeline for testing, approving and implementing our solution. 8. Determine their annual usage and if possible the exact model and price point of the competition.

Tier Three: 1. Determine if the company is involved with Drilling (MWD/LWD). 2. Contact the engineering manager or president. 3. Determine their current supplier and if they have any issues with them. If you hear Azonix, GE Wolverine, ISIS, Daisy Data, Laversab, Citadel, Strongarm, Siemens or RStahl. 4. Ask them how the product is being used (logging, drilling, blow out prevention, etc). 5. If they are using Citadel, Laversab, or a homemade solution, determine if there are any performance issues in the field, or plans to sell internationally. 6. Provide the Datasheet for the 15” and 19” highlighting the key selling points below. 7. Ask if they are interested in reviewing the product and determine a configuration from the datasheet. 8. Ask if they accept the unit, what is their timeline for testing, approving and implementing our solution. 9. Determine their annual usage and if possible the exact model and price point of the competition.

Key selling points: 1. VisuNet XT has true global approvals from third party agencies. 2. VisuNet XT has a range of processor options for direct data logging or remote monitoring of data acquisition systems. 3. Pepperl+Fuchs is a global supplier for hazardous area monitoring and protection equipment. 4. VisuNet XT has a range of best in class categories, including a. Industry leading extended Temperature range b. Quad core processor c. Field maintainability d. Optical clarity (brightness and viewing angle) e. Global support and repair 5. VisuNet XT is the best value in rugged purpose built industrial workstations.