Thank you
So I'm going to show you today. Well. I think creating a technology
Company you know downturn is a is a good idea
so there's no doubt
In any way of looking at if the oil industry is going through a tough time at the moment. We've seen a tremendous
dropping commodity prices and
As we continue to develop more and more difficult resources the costs to exploit those resources are going up
over time and the
Combination of the two at the moment has left us with quite a lot of inactivity in the in the oil field
But that's coming to a halt. There's a lot of growth in this in this behavior at the moment of
Trying to find ways to replenish the dropping production
the Innovation though drives
Is driven by the downturns we saw that in [the] 80s when we took Geology my science out of the field and into the 2D?
Workstation
Allowing us to Target Deeper and more complex reservoirs
The downturn in the 90s took that two dimensions and brought it into the third
And we were able to make for the first time some very precise estimates of fluid flow in the ground
And that's really essentially where I have my speciality in predicting how how the rock properties vary between the world Data
But my career
Within largely within Chevron I got to see a lot of the times when this meant quite badly wrong
I was involved in doing a look back on a project that went significantly south
A [4] billion dollar field development that was only operating at four percent of its capacity
And what we determined after a careful study of what had gone wrong?
Is that people had made a precise estimate a precisely wrong estimate of what was in the ground and [the] entire?
development was underpinned on a geological concept that wasn't true as
An industry what we actually want to be is approximately accurate precisely wrong is very expensive
Approximately accurate we can work with we want to understand that degree of accuracy so that we can explore
Where we need to appraise the Fields and reduce the uncertainty?
This is driving us today into the third generation of software for our science
And that is software capable of managing uncertainty not producing a single answer, but producing many
Honoring the fact that the geological data is limited we have wells with kilometers of rock in between we take seismic information
that's a below vertical resolution, and we try to blend together experience and intuition to draw the best conclusions of what could lie between
Giving one answer is only going to give you a wrong answer giving a range and understanding
[how] you could go about reducing that range or
Determining if that range is sufficient to move forward on an investment decision is the critical way of making money in this particular
climate today
Our first product hutton comes to market at the moment
I'm quite
Happy to announce that we just got a down payment from [the] second largest oil company in the world
On a corporate license that will net us several million dollars in the next coming months
Hutton allows the geologists to replace the concept of making a best guess
So instead of trying [to] say what is this answer and then putting some fluff around the edges?
We replace that with a concept where we use scenario-based
Uncertainty we allow the geologists like myself to say this reminds me of a rock I saw in Argentina
This is something that looks like something [from] Iraq. We can use [that] that experience the intuition to drive the model and
Leverage that cognitive bias that we actually seek in our industry to expand on that
importantly
part of the the Journey is [to] drop this this false pursuit pursuit of precision and
instead focus on the economic impact of the uncertainty
If the uncertainty is significant, and it changes my business decision. I care if it doesn't change a business decision
It's just an academic exercise and of no interest to an oil company
So [where] focus very quickly on to understanding what app?
Impacts the business decisions around that and it comes because as founders we are geologists who do those?
Activities, and we're tired of trying to Force software to remember that the oil industry is about making a profit
Not just a scientific exercise and we can deliver results
For thousands of different geological scenarios in the time frame that the contemporary software produces one precise estimate
and this is why we have been able to
Secure the interest of the markets in a downturn because we are responding to the need to focus upon them
We have a host of products in queue as experts ourselves
We have a host of different technologies that we need to
Deliver to our peers that [we'll] be wrapping together into a service orientated architecture
Currently these plug into second generation software platforms we plan on bringing them together into one of the the first of the third generation
software platforms focused on accuracy and efficiency
rather than precision and the best guess and
Importantly we've heard a lot over the last couple of days about the impact of artificial [intelligence] Machine learning Big Data
What we've discovered is the industry this is that the data structures that we have behind
The systems that we use to interpret geological information oil field data aren't well suited towards those incoming
technologies
So we're working on a database
That's designed to share the knowledge of the geo scientists who allow to explain expand that across the asset teams
This is not company sharing in sight between companies. It's within the oil company itself
It's tremendously difficult to share that asset based knowledge from one location to another within a super major organization
For us we have already dearest the journey that we're on at the moment to provide plug-in technologies to the second generation platforms
First product is in Beta testing with Chevron Shell and saudi Aramco today
And we have been put on the budget cycle for exxon
[conocophillips] and several other majors for next year
In the next with this round at the moment
We're doing a [3] million pound, raise that will allow us to deliver to other technologies in the next year
But we're looking for series a investors capable of following on
Because one of the things that we do have in our industry is a lot of very a clever technology created out of universities
But by people that haven't understood what I needed as an end user
So there's a tremendous opportunity with the down turn now to acquire some of that best-in-class technologies and actually dumb it down
to the point that it becomes pragmatic and useful for the end user and
So at the end of next year. We'll be coming back for series B
to look to
Build on the Inorganic pipeline as well because the ultimate Journey the total market size
That you have the software sciences
The software for the petroleum industry is 4.5 billion dollars per [year] and the market leader produces 1.2
Billion dollars by itself, so it is an interesting niche
It's one that you need to understand is a very much a beat a very big bee market
But because of the domain expertise required it's a very uncrowded one
Thank you very much
you
