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HYDUKE ENERGY SERVICES INC Canadian Companies Doing B usiness in Mexico Congress Mexicano del Petroleo , Cancun, Mexico – June 7, 2013. CANADIAN QUALITY GLOBAL FOCUS. CORPORATE PROFILE Company Overview – Hyduke Energy Inc. Experienced - over 35 year history
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HYDUKE ENERGY SERVICES INC Canadian Companies Doing Business in Mexico Congress Mexicano del Petroleo, Cancun, Mexico – June 7, 2013 CANADIAN QUALITY GLOBAL FOCUS
CORPORATE PROFILE Company Overview – Hyduke Energy Inc. • Experienced - over 35 year history • Drilling and well service industries • Canadian &International market • Oilfield Product Development • Turn-Key Equipment • Design & Engineering • Life Cycle Management • Single Source Supply • Based in Alberta, Canada • Publicly traded on TSX exchange
OPERATIONS Turn-Key Equipment – Drilling / Workover Rigs • HYDUKE ENERGY SERVICES INC • Industry leading reputation • Proven rig designs • Project management expertise • Design, engineering and drafting • Extensive equipment knowledge • Rig surveys, accident investigations • Modernization & Retrofit Projects • Modern and efficient API facilities
OPERATIONS Hyduke’s International Markets • Worldwide Operations - MEXICO • Hyduke has Extensive International Experience • Existing Markets – United States, Cuba, Trinidad & Tobago, Bolivia, Brazil, Ecuador, Peru, Russia, Kazakhstan, Algeria, Libya, Egypt, India, Indonesia, Malaysia, Australia, Gabon, Oman & MEXICO
HYDUKE’S MARKET ENTRY STRATEGY MEXICO • Intelligence Gathering • Various Oil and Gas Shows • Company Introductions • Sector Competition Analysis • Business Expectation • Establish Qualified Contacts • Initiating Due Diligence • Mexican Partner Selection • Gaining Trust • Communications
FAILURES AND SUCCESS MEXICO • Foreign Country Business Risks - Proceed with Caution – EDC’s Help • Select a Trusting Local Partner / Joint Venture / Agent • Decision Making – Expect Lengthy Time - Expand Due Diligence • Contracts - Canadian Jurisdiction • Local & State Laws – Knowledge • Employment / Labor Laws • Regulatory Laws, Permits, Licenses • Importation Laws / Taxes • Preparation to Exit • Profits back to Canada • Exist Mechanism
CULTURE FACTORS MEXICO • Culture Barriers • Language - Spanish • Security - Canadian Gov’t Info • Cultural Differences • Customer Policies • Partnership - Mexican Law • Business Strength with Locals
SUMMARY • Opportunity - Intelligence Gathering • Prioritize Area / Territorial Regions • Accessing Business Opportunities • Selecting JV / Partner / Agent • Understanding Mexican & Local Laws • Conduct Business w/ Local Culture • Repatriating Margins back to Canada • Use Caution to Minimize Risk • Understand Mediation Process • Develop Trust for Long Term Relations
HYDUKE ENERGY SERVICES INC Hyduke Contacts Gordon R. McCormack, President & CEO Telephone: +1 780 955 0357 E-mail: gordon.mccormack@hyduke.com Boris Makowecki, Executive Vice President Telephone: +1 780 955 0359 E-mail: boris@hyduke.com Tony Bulman, VP Market Development Telephone: +1 780 955 0355 E-mail: tbulman@hdyuke.com HEAD OFFICE 609- 21 Ave Nisku, Alberta, Canada T4X 1L3 Ph 001-780-955-0355 E-Mail info@hyduke.com Head Office 609 – 21 Avenue Nisku, Alberta, Canada, T9E 7X9 Telephone: +1 780 955 0355 Facsimile: +1 780 955 0368 www.hyduke.com