Cost Savings Analysis Results

Thank you for your interest in SMT KINGDOM, the global market share leader for PC-based interpretation software. We know that the most important consideration for buying interpretation software is functionality. That is why we are proud to announce that KINGDOM was rated as #1 in functionality versus competition, by geoscientists, in the 2008 Welling Report on Seismic Services. In fact, KINGDOM ranked 1st (or tied) in 9 of 13 categories measured.

But we recognize that customers assess more than just functionality when choosing a solution. The road ahead in 2009 looks more uncertain for the oil & gas market than it has in recent years. As a result, organizations are looking for ways to more efficiently manage their exploration budget. As the vendor rated #1 for price competitiveness in the Welling Report, SMT can help.

The analysis below is meant to provide a high level cost comparison using estimated industry rates for competitive software. Since discount levels and science modules varies from customer to customer, the analysis below may not match exact costs in your environment. However, these results have proved to be directionally accurate for numerous customers that have switched to KINGDOM. Our sales force and technical team is available to provide you a detailed analysis of your actual cost comparison.

Inputs
Number of Interpreters	10
Number of PC-Based Interpretation Seats	5
Number of Unix\Linux-Based Interpretation Seats	5

Scenarios	3 Yr	5 Yr
Estimated Cost of Current Environment*	$1,890,000	$3,150,000
SMT Cost - NEW License PLUS Maint*	$666,000	$810,000
Percent Savings	65%	74%
Cost Savings	$1,224,000	$2,340,000

* Assumes use of software from a major vendor, and prices are based on estimated USA list. Interpretation software functionality comparison includes geological, geophysical, petrophysical, and multidimensional workflow capabilities, as well as advanced topics in validation and risk reduction like AVO modeling, attribute generation, and depth conversion.

On an Operating Expense basis in 2009 this is $558,000 in reduced expense, or a 89% savings!

Sources of Cost Saving

SMT, per seat cost, even with high-end, high-performance geoscience capabilities included, is lower than major competition. This is possible because SMT is a focused software company, and therefore, lacks some of the overhead costs of the major services companies.

In addition, SMT maintenance rates are also significantly lower than competition, helping to lower your yearly cost. Yet despite our lower cost, we provide comprehensive support services, including global support from our offices in 6 countries, an online email forum, web-based training webinars, dozens of live user group meetings, and in-person training. In fact, our training was rated #1 amongst competition in the Welling Report too! (Click here to download a part of the report.)