Stock Profile: Pason Systems Symbol: PSI (TSE)

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Stats as of 6/01/01

• H/L Ratio: 1.71 • RS: 69.4 • Shares: 16,840,686 • P/E: 16.45 • Price: $10.20

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Pason Systems is a leading edge company providing electronic data management tools and services to the oil patch. Products include the Penless Electronic Drilling Recorder (EDR), the Pit Bull PVT (Pit Volume Totalizer) and LPLOT, its proprietary mudlogging software.

These various services monitor and analyze drilling parameters, high pressure hydrocarbon flows, and event data for on-site evaluation as well as home office monitoring. Wellheads and the home office are all connected by LAN or WAN. They help managers plan drilling operations as well as enhance worker safety.

Pason has grown from revenues of $500,000 a year in 1992 to $43.5 million in 2000. It has captured 82% of the Canadian market for EDRs, but has only barely penetrated the US market with around 17%. Nevertheless, their American business is almost a third of their total business and represents their biggest opportunity for expansion. Only half of American rigs are even equipped with EDRs, let alone Pason's.

One of Pason's innovations is a web-enabled monitoring through its Internet Data Hub. Data from the wellhead is updated on the company's website where drilling company management can access it through secure connections.

The company is continuously innovating and recently introduced new products - an Electronic Choke System (replacing hydraulically operated wellhead valves) their Total Gas System (monitoring borehole gases). They're also developing an electronic oilfield accounting and payment system.

As Dundee Securities put it in a research report issued May 28th, "Pason is quietly and quickly bringing the management of drilling rigs into the 21st century".

Company insiders, including President and Chairman Jim Hill, own 48% of the company. You gotta love the personal commitment to success that implies. Their numbers, shown in the tables below, are superior.

Quarterly Earnings per Share

Annual Earnings per Share