Koil Energy Solutions Inc. (KLNG): Joe, Thanks. Here are some of the "syner...

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SageWise

Re: JoeSmith post# 42482

Tuesday, 12/18/2007 10:57:09 PM

Tuesday, December 18, 2007 10:57:09 PM

Joe, Thanks. Here are some of the "synergy" type items mentioned today:
1) Expansion of the equipment rental pool (to include DDI products)
2) Expansion of the ROV fleet to increase rental revenue and increase service revenue from two and three man ROV operating crews.
3) Additional sales channel (in Mako) to sell more launch and retrieval systems ("LARS").
4) Expanding Mako internationally with the capital and connections available from DDI.

Other items that were brought up in earlier discussions on this board:
1) Selling Mako branded products that DDI could potentially manufacture.

"We believe we can significantly enhance Mako's current annual revenue base of approximately $6.8 million by expanding the equipment rental pool and ROV fleet."

"An expansion of the ROV fleet can yield benefits beyond increased rental income, including increased service revenue from two and three man ROV operating crews and the opportunity to sell additional launch and retrieval systems ("LARS").

"With Deep Down's relationships and access to capital, we foresee the ability to expand our ROV fleet and take advantage of our customers' growing need for both planned and "emergency" offshore rental equipment in support of their growing level of oil and gas exploration occurring in the Gulf of Mexico. We also plan to expand our operations internationally," commented Jacob Marcell, Mako Technologies' chief executive officer.

Sage