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DUG on a Tear

10 February 2023 12:09

Sitting at the forefront of high-performance computing services for the oil and gas industry, DUG Technology has been lighting up on the ASX since the start of the year, opening at 62.5c, its stock price has soared up to 87c, marking a 40.32 per cent rise after just over a month.

The company has proven its services as crucial for clients across the global technology and resource sectors, with multi-tiered data and analysis services, code support, algorithm development and McCloud services powered by some of the globe’s largest computer engines.

DUG’s share price began its ascension in early December upon the release of an operations report detailing how the company had secured over US$24 million dollars in new service projects for the new financial year, a 380 per cent increase from the previous period.

The announcement saw DUG’s share price sharply jump from 44c on the 5th of December to 50c the very next day, and growth hasn’t slowed since then, as the company announced it has completed a significant computing and storage investment to meet its growing workload, with its world-wide computing power now reaching 30 petaflops.

“The oil and gas exploration market is back to pre-pandemic levels and we are seeing record order intake in the services business, to secure all of last year’s revenue in new orders in the first five months of the year sets us up fantastically for a strong FY2023,” managing director Dr Matthew Lamont said.

And after a strong finish last year, DUG has kept the momentum into the new year, with a string of exciting new deals as oil and gas exploration begins to heat up again.

Most recently, DUG increased its earnings by a whopping 2.5 million dollars after the sale of a large seismic survey with 3D seismic processing and imaging it was engaged to perform in return for a share in future profits.

“This is a significant multi-client sale at a level not seen for several years. The sale is a great outcome for DUG and is also further evidence of a strong market in oil and gas exploration,” Lamont commented.

And just a few weeks ago, the company inked a US3.2-million-dollar deal for its full-featured 2D/3D/pre-stack visualisation and interpretation package DUG Insight with Petrobras, one of the largest oil and gas companies in the world.

“This is a significant deal for DUG, not only does this provide us with an uplift in overall software sales from a long-term contract, but it also demonstrates the capability and appeal of our software to the world’s largest oil and gas companies,” Lamont noted.

As more players in resources take note, it appears likely the company might soon need to bring another supercomputer or two into the building for an energetic future.

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