RigManager 101
The following is a brief description of who we are, what a “RigManager” does and
how we earn our revenue. Below you will find the following:
WHO IS RMS
RMS was formed out of the amalgamation of Tiger-Cat Energy Ltd. and C-Data Communications
Inc. in 2008. The RMS Common Shares trade on the TSX Venture Exchange under the
symbol RMS. Our head office is located in Calgary, Alberta. The focus of our operations
is North America although our products may also be actively marketed around the
world.
OVERVIEW OF THE RIGMANAGER
RMS Systems Inc. and its wholly owned subsidiaries: RigManager Services Ltd. and
RigManager Inc. (its US subsidiary) have developed industry leading technologies
(the “RigManager System”) which allow drillers of oil and gas wells to view the
data that the drill bit sees from the comfort of their own home, office or mobile
device. Oil and gas wells are commonly drilled in rural areas and are difficult to travel
to. The RigManager Electronic Drilling Recorder ("EDR") allows the rig operators,
engineers, and geologists to monitor drilling progress in near real time. This allows
oil and gas companies drilling wells to make informed decisions concerning their
drilling before it is too late! The advantages of the RigManager System over the
systems of its main competitors are many. These include faster access to the data
the drill bit is seeing, customizable report generation, and the RMS communications
system which provides our customers much higher bandwidth, lower latency and improved
IP (Internet Protocol) phone voice quality over systems that have historically been used in the EDR business.
The RMS products have been developed by RMS technicians meaning they are more customizable
to meet customer needs.
The Company is the developer of its software and utilizes licensed industry proven
data collection sensors in the RigManager System. The Company licenses the RigManager
System in Canada to its wholly owned subsidiary, RigManager Services Ltd. (an Alberta
Company) and in the United States to RigManager Inc. (a Texas company).
A Company drilling an oil or gas well wants to know what the drill bit is seeing.
RMS believes that its RigManager gives drillers an advantage to ensure that drilling
errors are not made. Time is money in the drilling business--RMS can save its clients
both time and money.
THE RIGMANAGER IN DETAIL
Today, electronic drilling information is an essential part of the oil and gas industry.
RIGMANAGER is a hardware and software solution, with secure internet access that
provides the foundation of drilling information management. RIGMANAGER electronic
data solutions are used to create meaningful data analysis, increased productivity,
improved customer satisfaction and a strengthened competitive advantage. RMS was
founded in 2005 by a small group from Calgary, Canada. Since the its
inception, RMS employees have been dedicated to the development of an open platform
hardware and software solution which monitors, stores and distributes data from
oil and gas drilling rigs. The RigManager System is designed to be a turn key solution,
combining hardware and software features. The RigManager System operates in two
separate parts: the on-site rig installation and the web-based data management software.
On the rig:
At the drilling site the RigManager System is installed along with multiple sensors
networked to a central PLC Hub. These sensors are installed on the drill
bit and around around the rig, relaying data on items such as drill bit speed and transmitting it
to the PLC Hub located on the Rig. This hub is connected
to a RigManager Field Data Processor which then automatically directs the data via
the RMS unique data communication system or satellite secure internet connection
to a server located in Calgary and owned by RigManager.
Web-based management Software:
Upon receiving data from the rig via the secure connection, the RigManager web server
decrypts the information and files the data in a Microsoft SQL Server database. The end user
(the owner of the oil and gas well) is connected to their data by way of a secure
web-site portal accessible only by it. This interface allows customers the ability
to view data on the web seconds after it’s collected on-site. This allows the driller
of the well to see what has been happening on the rig from the comfort of the home, office,
or even on a handheld mobile device.
Schematically it works like this:
RigManager Solution Overview Diagram
OUR MAIN PRODUCTS:
EDR
The RigManager EDR was developed utilizing .net technology, so is very reliable,
flexible and easily customizable to meet our customer's needs.
Web Portal
Providing fast access to what you need to view in a logical fashion, you'll see
your data, how you want to see it, in near real-time from anywhere in the world
SiteWatch
SiteWatch combines the EDR and the Web Portal. SiteWatch allows you to view a copy
of the EDR application as its used on the rig, but from the comfort of your office
or home!
Mobile Site
On the go? RigManager mobile site allows you to monitor your drilling operations
through any internet enabled cell phone from anywhere in the world
Data Acquisition Hardware
RigManager has developed our own hardware utilizing “off the shelf” programmable
logic controllers coupled with additional electronic components. This solution along
with our proprietary logic, allows RigManager to source the needed equipment from
many suppliers eliminating our dependency on a single supplier.
Communication
RigManager has developed a communications system that provides our customers much
higher bandwidth, lower latency and improved IP phone voice quality over systems that have
historically been used in the EDR business. This communication system is deployed
on all RigManager installations and allows our service technician to respond remotely
to many service requests.
THE ECONOMICS: HOW DO WE EARN MONEY?
The RigManager System and its associated products are essentially charged out on
a “day rate” basis. What this means is that when a rig which has the RigManager System
is installed on it is in use, we get paid a day rate. On average approximately $10,000
per installed rig is earned per month (earnings do vary based upon the time of season
and the nature of the well being drilled). The approximate cost of manufacturing
each RigManager System is $100,000 such that, on average each unit is essentially
paid for after ten months of use. For international applications, the RigManager
System will be sold to the driller for a one time price.
COMPETITION
The main competitor in the rig data management software market is Pason Systems
Corp. (T-PSI). Other competitors are Epoch Well Services, Inc., Chimo Equipment
Ltd. and some smaller regional providers. At RMS we believe that the RigManager
System is superior to our competitors in that:
- Our unique communications system is faster and has greater capacity;
- Data transmission is faster;
- Because we designed and build the RigManager System ourselves, it is easily customizable
to meet our customers’ needs;
- We believe in customer service. Being small every customer is important to us!
RigManager provides state of the art computer hardware and proprietary software
that is very flexible, customizable and accurate along with the most reliable sensors
available. Our service, equipment and enhanced communications systems provide our
customers with the necessary tools and data to manage their drilling operations
more effectively than ever before.
Please do not hesitate to contact us for more information.
