Economic Summary

Introduction

Preliminary market surveys were conducted during numerous interviews with potential industry clients. Independent experts from the drilling industry provided information about typical operational improvements that should be realized by use of the Rig-Hand System.

Improvement values were separated for onshore and offshore operations but normalized across client classes, operational costs and average annual rig up-time to calculate average annualized figures. Each cost calculation shown in the summary is documented further within the body of the referenced section.

Daily rig operational costs for the calculations were based on offshore costs of $250,000 per day and onshore costs of $20,000 per day. It was assumed that a rig using the Rig-Hand system was running 300 days per year.

The economic advantages for buying the Rig-Hand system are overwhelming

Assuming that just the minimal operational efficiencies are achieved, the Rig-Hand system has the potential to save over $70,000 per rig per year for onshore drilling operations and over $1,000,000 per rig per year for offshore operations.

Each of these areas of value are explained in the "Speed & Accuracy" and "Safety" sections.