RXT. A new multi-component marine acquisition contractor. Reservoir Exploration Technology. Michael Scott, CEO 31. August 2005

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1 RXT Reservoir Exploration Technology Michael Scott, CEO 31. August 2005 A new multi-component marine acquisition contractor

2 RXT - HIGHLIGHTS Marine geophysical company Specialising in multi component seismic OBC acquisition OBC = Ocean Bottom Cable Prime target: Improved recovery from existing fields The highest quality 4C data in the industry Minimum 25 per cent lower cost than competitors Very experienced management Will apply for listing on Oslo Stock Exchange Ultimo

3 MANAGEMENT President: Michael Scott 34 years in marine seismic 17 years in GECO Co- founder of PGS in 1991 VP Geophysics: Chris Walker 31 years in marine seismic 7 years in GECO 10 years in PGS VP Acquisition: Einar Nielsen 25 years in marine seismic 10 years Seres and GECO 10 years in PGS CFO: Odd Erik Rudshaug 10 years in marine seismic 8 years in PGS VP Houston: Larry Wagner 32 years in marine seismic 28 years with Western, 2 WesternGeco VP HSE/Q: Iain Forrester 29 years in oil industry 20 years with Mobil Oil 5 years PGS HSEQ manager 3

4 HISTORY April 2002: Company founded in Norway June 2004: First operations in the Gulf of Mexico July 2005: Listed on the OTC Market in Norway 4

5 RXT INVESTMENT CASE Strong market growth expected in 4C seismic Better data quality compared to conventional towed streamers Strong growth (25%) driven by data quality and strong oil price 4C seismic ideally suited for increased oil recovery on mature fields 2C seismic ideally suited for improved data quality and for imaging deep targets in producing fields RXT has new and improved technology At least 1 vessel less than any competing operation Buoy based recording saves time State-of-the-art seismic equipment from Input-Output RXT has competitive advantages Lower cost, enhanced productivity & better data quality than peers Exclusivity agreement with I-O 5

6 OCEAN BOTTOM SEISMIC VS STREAMER Conventional streamer: Streamers towed in the water behing the vessel Hydrophones used to measure pressure in the water (P-waves) Can be 2D, 3D and 4D Multi-component: Cables placed on the sea floor Hydrophones used to measure pressure in the water (P-waves) Geophones used to measure verticle particle motion (Pwaves) and horizontal particle motion (S-waves). Can be 2D, 3D and 4D 6

7 BENEFITS OF MULTI-COMPONENT ACQUISITION Two types of OBC data 2 Component (2C): 4 Component (4C): 1 Hydrophone 1 Geophone 1 Hydrophone 3 Geophones P-Waves only (2C) Better data quality Image deep targets in producing fields/ shallow water where towed streamer operations are impractical Combination of S and P waves (4C) Better data quality Solves several imaging challenges Improved oil recovery from existing fields 7

8 IMAGING BENEATH GAS CLOUDS AND GAS CHARGED SANDS PP PS 8

9 IMAGING AN INVISIBLE RESERVOIR USING S-WAVES The Alba Field P-Wave S-Wave Source: Courtesy Chevron and partners in Alba License Result: Main contributor to increased reserves (+70M barrels) and increased production (from 70,000 to 100,000 barrels/day). Source: Courtesy Chevron and partners in Alba License 9

10 NORTH SEA A MATURE AREA Discovering and producing resources near mature fields is a matter of great urgency. 10

11 4C IDEALLY SUITED FOR NORTH SEA OIL FIELDS Norwegian sector: Over 60% of the fields in production or under development would benefit from 4C seismic 35 of 56 fields * UK sector: Estimated that minimum 60% would benefit from 4C seismic 80 of 130 producing fields and field complexes This is conservative, given the greater variety of geological challenges in the UK sector. The market is approx. USD 220 mill in C and 4C seismic data acquisition GoM, the North Sea and the Middle East Market growth is estimated to 25% in 2005 As costs come down, 4C will increasingly replace streamer technology in the 4D market. *Source - Sagex Petroleum 11

12 OBC MARKET TOTAL VALUE AND GEOGRAPHICAL SPLIT 2005E 2C and 4C market RXT Objective C 4C Strong growth (25%) driven by falling cost and increased oil price To drive increased use of the 4C technology through: US$ mill Reduced cost Improved data quality Reduced HSE risk Source: Company estimates Actual work Based on known opportunities 12

13 3D TOWED STREAMER ACQUISITION COST VS MARKET GROWTH % '000 sqkm Cost 1) Marine 3D Market Growth 2) Per sqkm, normalised to = Worldwide, 000 sqkm 13

14 RXT - USING LEADING EDGE TECHNOLOGY New solid state Input-Output Vectorseis sensors Unique in the marine environment First time ever used at the Ekofisk field by RXT The reduction from 3- and 2-vessel operations to a single vessel operation RXT has exclusivity under certain restrictions Time-saving acquisition methods Using the latest developments in: Recording instruments Data storage FireWire peripheral data transfer Accurate GPS timing & synchronisation High speed radiolinks combined with wireless network technology 14

15 CONOCOPHILLIPS CONCLUSIONS FROM THE EKOFISK TEST Internal Vertical Orientation (VOR) measurement of the MEMS sensor appears to be accurate gimbaled receivers not needed Vertical MEMS component exhibits higher frequency content than the hydrophones Frequency content of VectorSeis data is excellent (90 Hz P-P data at target) VectorSeis sensors would be a good candidate for future OBC acquisition at Ekofisk Ekofisk VectorSeis data shows improved vector fidelity when compared to the Eldfisk OBC data (E511720, N ) Inline Crossline Ekofisk Inline Crossline Eldfisk (E513720, N ) 15

16 THE RXT COMPETITIVE ADVANTAGE Lower base cost One less vessel than any competing operation Minimum 25% lower cost than competitors Enhanced operational efficiency Buoy based technology, advanced back deck systems Improved data quality VectorSeis Ocean system has the best sensor characteristics in the industry, and a patented sensor isolation mechanism In combination they provide the highest quality 4C data in the industry RXT has exclusivity with VectorSeis Ocean, under certain restrictions HSE strengths Fewer vessels and less people at risk during a survey Highly automated back deck systems 16

17 4C COMPETITION WesternGeco 2 Q-Seabed crews m water depth limit - 40 km of cables, 25m station spacing 1 shallow water crew - 100m water depth limit - 75km+ cables, 50m station spacing - Gimballed sensors PGS 1 4C crew m water depth limit - 36km cables, 25m station spacing - Gimballed sensors Seabed Node system, 250 nodes, RoV deployment Largely complementary to RXT technology Fairfield Node system, 900 nodes, RoV deployment First commercial use in GoM in late summer 2005 for BP Multiwave No permanently rigged crew 40km cables, 50m station spacing 17

18 FINANCIALS Funding April 2004: $16m funded by 3i and Lime Rock Partners July 2005: $35m Private placement to fund growth Listing/trading The OTC market in Norway in July 2005 RXT intends to apply for listing on Oslo Stock Exchange ultimo 2005 Share price Private placement in July 2005: NOK Currently trading at NOK 340 Market capitalizaton NOK 567m ($88m) outstanding shares 18

19 REVENUE & EBIDTA Revenue by Quarter EBIDTA by Quarter US$ 000' Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 US$ 000' Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q

20 OVERVIEW OF ECONOMICS Crews: One crew in operation Second crew May more crews in 2007 Capex per crew: $25-30m For seismic equpment, vessels are rented on time charter Targets: Revenue per crew per year: $30m EBIDTA per crew per year: $10m EBIDTA 2005 $ 4m 20

21 REVENUE BREAKDOWN Yearly revenue a factor of: Contract price Utilization Efficiency. Utilization: Number of months on contract Efficiency: Actual time spent on acquisition when on contract. Factors which reduce efficiency - Technical downtime, vessel and/or equipment - Weather - Standby due to field activity Assumptions: Utilization per year: 9 months Efficiency: 50% 21

22 RXT - HIGHLIGHTS Marine geophysical company Specialising in multi component seismic OBC acquisition OBC = Ocean Bottom Cable Prime target: Improved recovery from existing fields The highest quality 4C data in the industry Minimum 25 per cent lower cost than competitors Very experienced management Will apply for listing on Oslo Stock Exchange Ultimo

23 Appendix 23

24 INCOME STATEMENTS 24

25 BALANCE SHEET 25

26 JULY 2005 Private placement $35 mill 956,284 shares at NOK i/ LR Loan end June $17M Interest July $7M Repayment $10M Conversion to equity $14M ( shares at NOK ) $4.6 mill cost reduction in Q3 Agreement with supplier Remaining interest bearing debt $8.2m Payable over 3 years from December % interest 26

27 OWNERSHIP 27