INVESTOR PRESENTATION September 2014 di-ver-gent adjective 1. - PowerPoint PPT Presentation

INVESTOR PRESENTATION September 2014 di-ver-gent adjective 1. Tending to be different or develop in different directions 2. Departing from convention

Corporate Overview Divergent Energy Services Corp. is a publicly traded company listed on the TSX Venture Exchange under the symbol “DVG” Innovation Focused Service Oriented Value Driven ARTIFICIAL LIFT ARTIFICIAL LIFT FLEXIBLE PIPE FLEXIBLE PIPE CONSTRUCTION CONSTRUCTION

Management Team Ken Berg, P.Eng. with DVG since 2012 President and CEO Previously, COO, Canadian Oilfield Solutions • Prior here to, VP Sales for Sanjel Corporation and Drilling Engineer for Dome Petroleum / Amoco • Canada Scott Hamilton, C.A. with DVG since 2013 CFO and Corporate Secretary Prior here to, CFO for Solana Resources Ltd., Crossfire Energy Services Inc., and Brahma Compression • Ltd. 24 years experience with public and private entities • Phil D’Angelo with DVG since 2009 President, COTS Mexico Previously, President and CEO, Canadian Oilfield Solutions • Prior here to, 30 years with a number of private and public companies in the disciplines of • investment banking, M&A, corporate restructuring, valuation, and asset management Mitch McClannahan with DVG since 2012 VP Product Development, Karlington Artificial Lift 40 years experience in mechanical and electrical engineering including being the founder of • Karlington Electric Lead role in the co-development of the Linear Electric Submersible Pump • Justin Fultz with DVG since 2010 Area Manager, Extreme Pump Solutions 10 years experience in sales and service of submersible pump solution •

Areas of Operation Headquartered in Calgary, Alberta, DIVERGENT is positioned to capitalize on key conventional and unconventional plays across North America Viking Bakken • Calgary • Kalama Powder River Basin • Gillette Burgos Basin Villahermosa Uplift • Reynosa • Villahermosa

Flexible Pipe Flexible steel pipe combines the corrosion resistance and installation advantages of flexible pipe with a core of steel – the industry standard for durability. Performance Value Durability Distribution and Sales Installation Services API 17J certified API 15S Swaging Connectors • • Up to 21 Mpa rating (3000psi) High tension rating for longer pulls • • Sizes from 2” to 8” No product failures to date • •

Construction Driving value through high ROCE oilfield construction finance opportunities Project Management Project Finance 3% administration fee 20% finance fee • • $11.4 million in projects funded to 50% of net profits per project • • date Assignment of proceeds in place •

Artificial Lift Focused on providing innovative and cost effective technologies Energy Mining Water Sales and Service Distribution Distribution Powder River Basin in Electric motors for mine Electric motors for • • • Wyoming dewatering projects in agriculture, municipal ESP’s Canada and the USA water, and industrial • ESPCP’s Up to 500 hp water applications • • Up to 250 hp •

Technology and Innovation Linear Electric Submersible Motor The Linear Electric Submersible Motor duplicates rod pump movement without rod strings or surface lifting equipment. All moving parts are contained within the submersible pump housing, eliminating rod and tubing wear, making the Linear Motor ideal for placement into horizontal wellbores. The linear motor and reciprocating pump are landed on the end of production tubing, with the power cable banded to the tubing. How it works The submersible reciprocating pump is driven by a linear synchronous permanent magnet motor , which generates thrust from a magnetic field and permanent magnet mover. Current is supplied to the motor only when the mover is travelling, and shut off between strokes. The absence of current between strokes allows for monitoring data to be transmitted up the power cable to surface to the controller. Features Applications Reduced footprint on surface Vertical, Slant, and Horizontal Wells Lower operating cost Up to 100 bbls/day Adjustable stroke length and rate Landed depths to 1500 m Low noise No oil leakage from stuffing box Remote monitoring and adjustments

Technology and Innovation Linear Electric Submersible Pump Testing •Under development in •Full commercialization China for over ten years and introduction to other •Fall 2014 - partner has regions and reservoirs will •DIVERGENT secured been secured for a 5 well be determined by the exclusivity in 2013 pilot test performance of the •Design finalized Q1 2014 motor in phase 2. •A larger second phase implementation will take place pending test results Development Commercialization

Technology and Innovation Target Well Parameters for Linear Pump Bakken Well Profile 1500 m TVD Bakken formation 1300 m TVD landed pump • Calgary 100 bbl/day 40 API gravity sweet crude 7 pH

2014 Outlook Artificial Lift Construction Q3 Linear Motor installations Multiple concurrent operations • • 5 well pilot in Canada • Inventory of projects continue to await • Q4 Linear Motor installations funding • Potential 2 nd phase testing in Canada • Corporate Flexible Pipe Rebranding: Pemex has begun issuing flexible pipe • • New website coming September 2014 tenders. Results are expected to be • announced in late Q3. 11

Financial Results Six Months Ended June 30 Comparison* 2014 2013 % Change Revenue $3,075 $2,728 13% Gross Profit $1,082 $972 11% Net Earnings (Loss) ($2,131) ($801) (166%) Earnings (Loss) per share - Basic and Diluted ($0.01) ($0.01) Three Months Ended June 30 Comparison* 2014 2013 % Change Revenue $1,556 $1,433 9% Gross Profit $461 $506 (9%) Net Earnings (Loss) ($1,484) ($819) (81%) Earnings (Loss) per share - Basic and Diluted ($0.01) ($0.01) *All amounts in thousands, except per share amounts.

Balance Sheet As at Six Months Ended June 30, 2014 Cash and Cash Equivalents $1,583 Working Capital $3,480 Long Term Finance Contract $1,136 Property, Equipment and Trademark $902 Long Term Debt to Capitalization 26% Debentures (in CAD, due December 31, 2014) $5,750 *All amounts in USD thousands, except as noted.

Market Capitalization As at August 27, 2014 Shares 91,402,090 Warrants 13,158,200 Options 5,300,000 Fully Diluted 109,860,290 Average Daily Volume (previous 30 days) 82,547 Market Cap. (CAD) $28.3 million