EDM, Engineering

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EDM, Engineering Drilling Machinery AS

• General presentation of the Company

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Company Structure
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Organisation Chart
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ISO Certified
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References

• All key products innovated by EDM AS have been
  manufactured and successfully put into
  operation.
• Products have been delivered to key companies
  operating mainly in the North Sea basin.

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References

• EDM150T Tunnel Rig Rennesøy Baseutvikl.
• 100T Casing / Riser Jacking Unit Saga Petroleum
• 200T Casing / Riser Jacking Unit PPCoN
• Dolsnub 7, Rig Assist / Snubbing Unit Dolphin
• Horizontal Pipehandler Transocean
• Horizontal to Vertical Pipehandler Transocean
• Lifting Equipment for BOP PPCoN
• Manipulator Arm, Deep Sea Trym Odfjell
• Manipulator Arm, Byford Dolphin Dolphin
• Substructure Pipehandling system Dolphin
• Telescopic Mousehole Transocean
• Rathole Smedvig

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Completed deliveries

• Rack Pinion Rigs
• 150T Onshore rig
• 150T Offshore Workover Unit (project start
  January 2001)
• (Project include tower, rig floor structure, two
  stair towers and a catwalk/pipechute)
• Snubbing Units
• 340T Rig Assist Unit
• 100T Casing / Conductor Jack
• 200T Casing / Conductor Jack
• Power Slips for Snubbing Units Rigs

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Completed deliveries

• Pipe handling
• Horizontal to Vertial Pipehandler (HTV)
• Pipe Deck Pipehandler for Semi Sub. Rig
• Manipulator Arms for Semi Sub. Rig
• Telescopic Mouse Hole

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Completed deliveries

• Other
• Substructure, skidding system and Pipe Conveyor
  system
• BOP lifting tool
• 60 Rathole for aux. Well centre
• Test ramp for Multi Lateral Wells
• Big Bag mixing system

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PATENTS PATENTS PENDING

• Rack Pinion Concept
• RP Hoisting System
• RP Heave compensation and Tension System
• RP Mud Pump
• Pinion reinforcement
• RP Single Tower
• RP Artificial Lift Pump

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PATENTS PATENTS PENDING

• Other Concepts
• Finger board with curved fingers
• Rotary Table
• Telescopic Mousehole
• Flexible Coupling
• Explotion Proof Lubrication system
• Pipehandler for landrigs
• ABS Anti Buckling guide System

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Other Developed products

• Tention System
• Moonpool Guide system
• Heave Compensation system for Winches

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Potential Projects 2001

• Offshore Workover Rig, North Sea,
• Letter Of Intent signed Contract signed. del.
  Nov. 01
• Landrigs in Iran
• EDM are on the short list
• Landrigs in Syria
• Bid delivered September 2001
• Landrigs in USA
• Contract negotiations Contract signed.
  Delivery Mar. 02

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Potential Projects 2002-2004

• North Sea 2 3 rigs
• Middle East 10 20 rigs
• US 2 20 rigs
• This is our main Market Targets, where we will
  concentrate our marketing activities.
• The above numbers indicates that EDM gets a 1-10
  share of the new built rigs

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Competitive advantages

• The EDM RP hoisting system has the following
  main design benefits
• Expand push and pull capacity
• Reduced weight
• Streamline rig up/rig down time
• Increase cost-effectiveness

Our broad product range within our market
segment, makes EDM capable of delivering a
complete product package.
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Competitive advantages

• The EDM RP hoisting system has the following
  main design benefits
• Expand push and pull capacity
• Perform UBD (Under Balanced Drilling)
• Perform Top Hole Drilling without
• special arrangement
• Perform long horisontal drilling without
• changing Drill Collar arrangement

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Competitive advantages

• The EDM RP hoisting system has the following
  design benefits
• Cost effectiveness through
• No draw works
• Use standard components
• Ease maintenance
• Simplify the hoisting process
• Design benefits
• Lower centre of gravity
• Improve safety and working environment
• Ensure accurate control
• Modular design

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Market outlook

• Demand has exceeded supply of oil
• Oil price range US20-30 per barrel
• More oil fields are now profitable to exploit
• Outcome
• Several oil projects will possibly be initiated
  in the very near future,
• Rising interest for our drilling equipment and
  drilling rig services

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Revenue Profit/loss
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Tender offers

• EDM is gradually building up its international
  reputation. The tenders listed proves our
  marketing effort in markets such as - the North
  Sea basin, - Eastern Europe, - the Middle
  East and - America.
• Most of the tenders have been submitted on
  request from the listed companies.
• The majority of the tenders relate to RP
  Drilling Rigs, one of our key products.

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Tender - log
350T Onshore drilling rig - 3 rigs in
total OIECQ, Iran 500T Onshore drilling rig - 3
rigs in total OIECQ, Iran Rig Assist
Unit Emirates Western Petr. Serv., Abu
Dhabi RP Drilling Rig - 4 rigs in
total Rennesøy Baseutvikling as 250T Workover
Rig ADCO / NDC, Abu Dhabi 350T Land Drilling
rig SPC, Syria Rig Assist Unit Dolphin,
UK Water Well Rigs Iraq 250T Landrig
Baron Oil, USA
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Cash flow statement

• The first 3 years of operations have been used to
  innovate improved drilling equipment
• Despite the large efforts dedicated to RD, EDM
  has managed to generate revenue through
  operations to fund most of the RD activity

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Cash flow statement