Revolutionizing Pump Technology

A Neodymium magnet is the most widely used and strongest

type of permanent, rare-earth magnet commercially
available

INVESTOR PRESENTATION
FEBRUARY 2016

TSXV: DVG

This Corporate Presentation contains certain forward-looking statements and forward-looking information (collectively referred to
herein as forward-looking statements) within the meaning of applicable securities laws. All statements other than statements of
present or historical fact are forward-looking statements. Forward-looking information is often, but not always, identified by the use
of words such as could, should, can, anticipate, expect, believe, will, may, projected, sustain, continues,
strategy, potential, projects, grow, take advantage, estimate, well positioned or similar words suggesting future
outcomes. In particular, this Corporate Presentation contains forward-looking statements relating to future opportunities, business
strategies and competitive advantages. The forward-looking statements regarding the Company are based on certain key
expectations and assumptions of the Company concerning anticipated financial performance, business prospects, strategies, the
sufficiency of budgeted capital expenditures in carrying out planned activities, the availability and cost of labour and services and
the ability to obtain financing on acceptable terms, all of which are subject to change based on market conditions and potential
timing delays. Although management of the Company consider these assumptions to be reasonable based on information currently
available to them, they may prove to be incorrect.
By their very nature, forward-looking statements involve inherent risks and uncertainties (both general and specific) and risks that
forward-looking statements will not be achieved. Undue reliance should not be placed on forward-looking statements, as a number
of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and
anticipations, estimates and intentions expressed in the forward-looking statements, including among other things: inability
to
meet current and future obligations; inability to implement the Companys business strategy effectively in Canada, Mexico and the
United States; inability of the Company to continue meet the listing requirements of the TSX Venture Exchange; general economic
and market factors, including business competition, changes in government regulations; access to capital markets; interest and
currency exchange rates; technological developments; general political and social uncertainties; lack of insurance; delay or failure to
receive board or regulatory approvals; changes in legislation; timing and availability of external financing on acceptable terms; and
lack of qualified, skilled labour or loss of key individuals.
Readers are cautioned that the foregoing list is not exhaustive.
The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The
forward-looking statements included in this Corporate Presentation are made as of the date of this Corporate Presentation and the
Company does not undertake and is not obligated to publicly update such forward-looking statements to reflect new information,
subsequent events or otherwise unless so required by applicable securities laws.

 High-growth, publicly-traded technology firm (TSXV: DVG)

Advancing innovative Artificial Lift systems for the oil & gas industry:
Revolutionary Electromagnetic Submersible Pump
Alternative to traditional pump jack
Powered by a permanent magnet motor(1)
Offers lower costs, reduced maintenance and minimal environmental footprint
Pump installed in client oil well in SE Saskatchewan Jan, 2016
Commercialization anticipated in 2016, initially in Western Canada

Existing cash flow positive business unit in Gillette, WY

Conventional electric submersible pumps (ESP):

Increasing market share

Improved gross margins year-over-year(2)

Near-term catalysts as the next generation Electromagnetic Pump nears

commercialization
(1) Referred

to as a Linear Motor in the permanent magnet motor industry.

in Appendix as endnotes

(2) Footnotes included

Mission: Changing

ESP Supplier*

25
TSXV: DVG

the way clients produce energy

Years in business

5.6

Employees

Safety incidents YTD

%
Insider Owned

$0.19 - $0.54

$28.4MM

94.8MM

52 week range

Market cap as at Mar 4 16

Shares outstanding

*Gillette, WY - Powder River Basin gas wells; based on internal estimates

The Pump

Near commercialization with no immediate competition

Lower capital cost and operating cost when compared with pump jacks

The Market

Nearly 20,000 Oil wells (Bakken, Shaunavon, Cardium, Viking, Niobrara, etc.) where pump jacks are
used to produce oil have been identified as candidates

In Canada alone, 90% of all new wells are drilled for oil and 88% of all new wells are drilled
horizontally

750,000 pump jacks already in use in North America

The Opportunity

Exposure to a high growth company with pivotal operational catalysts on the horizon

Agreement in place with large oil company and first commercial version of the Pump installed
January, 2016

Ongoing discussions with other clients to install additional Electromagnetic Pumps

Increases in directional drilling, and horizontal wells in particular, have created new challenges:

Bends in the well create points of contact between the rod string and the production tubing;

Rod string suffers excessive wear as it cycles up and down 3 million times per year, leading to
eventual failure of the rods and occasionally the production tubing;

Limited advancements in pumping technology are creating rising costs to produce oil.

Critical points
of contact in
oil wells that
result in
excessive wear
and eventual
failure of rod
strings.

The Linear Pump:

No immediate competition for this technology
Reciprocating pump is a modified industry standard rod-pump
Powered by permanent magnet motor - magnets lose only 1% of magnetism over 10
year period
No external moving parts; everything moves internally in the Pump housing
2nd Generation Pump improved with 25% more power & 50% less friction than
prototypes
Ideal for light oil, shallow horizontal wells - can be set inside the horizontal section in
a well

The Linear Pump effectively:

Eliminates surface lifting equipment (pump jack)
Smaller footprint means reduced construction
costs, lower environmental impact, and lower
impact on farming and ranching.

Eliminates sucker rods

Worn and broken sucker rods can cost clients
up to $153,000(2) annually to maintain,
including the oil not being produced during
failures.
Eliminates leaking wellheads
Wellheads typically leak oil at the stuffing box
(the seal around the sucker rod). This is a
chronic environmental issue with pump jack
operations.

(2) Footnotes included

in Appendix as endnotes

 Low cost manufacturing, attractive margins, and ability to quickly scale-up

Simple installation in the field & limited maintenance required for producers

Compelling in oil price downturn - lower cost installation and maintenance compared
to pump jacks
Divergents management team has hands-on experience building companies and
generating value for owners; supported by strong and committed board
Initial Target Markets in North America
Viking, Cardium,
Slave Point

Uinta
Basin

Bakken, Viking,
Shaunavon,
Spearfish

Niobrara, Powder River

Basin

7,500

candidate wells identified

in Saskatchewan

9,500

candidate wells identified

in North Dakota

Poza
Rica

Divergents Wyoming Electric Submersible Pump (ESP) operation is

Cash flow positive for the past 11 consecutive quarters

Improved gross margins year-over-year despite market conditions(1)

Exceeding expected activity levels during the current industry slowdown
Largest Provider* of ESPs for gas producers in the Powder River Basin

Market Share

Increasing market share each quarter

2013
Divergent

2014
Competitor 1

Competitor 2

2015
Competitor 3

*Source: Internal Estimates of ESP Products & Services for dewatering Powder River Basin gas wells
(1) Footnotes included

in Appendix as endnotes

2015
Pump Lands in SK
Staging Yard

Results of Linear Pump

performance

Debenture
Resolution

Continue operations in Wyoming

and potential introduction of the
Linear Pump in Powder River Basin
Continued business development
to operators in other oil fields
Agreements with additional new
operators to test and install the
Linear Pump

Expansion of Linear Pump

inventory based on increased
client demand

Pump Installed

Pump Results
Pump Testing by
Additional Clients
Commercialization
& Ramp Up
Pump Orders
Increase
Client Base
Expansion

Clear line of sight to profitability

2016 & Beyond

PUMP

Approaching commercialization
Cost-effective & efficient
Low environmental footprint
All horizontal oil plays will need artificial lift

MARKET

Sizeable & growing target market (7,500

wells in SK & 9,500 in ND)
Application in other basins & plays globally
Significant near-term catalysts

OPPORTUNITY

First commercial version of Linear Pump

installed Jan 2016
Agreement with large oil company +
discussions ongoing with others

TSXV: DVG

Changing the way clients produce energy

Divergent Energy Services Corp.
Corporate Office
1170, 800 6th Ave SW
Calgary Alberta T2P 3G3
T: 403.543.0060
F: 403.543.0069
www.divergentenergyservices.com

APPENDICES

1.

The Linear Pump uses a modified industry standard reciprocating pump currently used with pump jacks, known as a rod pump.
The pump is driven by an electromagnetic motor that uses permanent magnets to create thrust to move the shaft of the motor in
a reciprocating, or linear, motion. Permanent magnets maintain their strength almost indefinitely, losing approximately 1% of
their strength every 10 years.

2.

Gross Margins improved to 30% from 23% in the nine months ended in 2015 and 2014 respectively.

3.

Annual Rod Pump Cost Assumptions:

Rod Strings $20 per meter;
10% of string replaced after a failure event;
Service Rig $12,000 per day, 2 days per failure event;
5 days lost production per rod failure;
rod string failure rate of 4 failures annually.
Oil price of $45/bbl and production rate of 50 bbl/day;

Current Technology Drawbacks

Linear Pump Benefits

Surface lifting equipment (Pump Jack) has a high

capital cost and requires a large footprint

The submersible pump has a lower capital cost, reduces

construction costs due to no surface lifting equipment

Rod strings in deviated and horizontal wells

cause excessive wear due to rubbing against the
tubing

No external moving parts means that the Linear Pump can

be placed in deviated and horizontal wells as easily as
vertical wells

Rods strings wear from the 3,000,000 annual

up/down cycles, which can cost up to $168,000(3)
annually to maintain, including the oil not being
produced during failures

No rod string, no external moving parts. Everything moves

internally in the Pump housing

Mechanical inefficiencies and variable power

draw can lead to high electricity costs

Permanent magnet motors run on low Amps with no

mechanical gears to reduce efficiency

Leaking wellheads around the rod (from the

stuffing box) is common

Seal not an issue - no moving parts exit the wellhead

The Pumpjack was invented in 1925 by Walter Trout, an employee of Lufkin Foundry and Machine

Electro-Magnetic Submersible Pump (The Pump)

Permanent magnet motor technology.
Reciprocating pump (similar to rod pumps).
Ideally suited for deviated and horizontal oil wells.
An alternative to conventional pump jack installations.

Electric Submersible Pump (ESP)

Conventional pump technology.
Rotating pump with multiple impellers.
Pumps moderate to high volumes of fluids.
24 m3/d (150 bbl/d) to 24,600 m3/d (150,000 bbl/d).

Electric Submersible Progressing Cavity Pump

Also called screw or Moineau pumps.
Heavy oil, high sand production, gassy wells.
Now deployed as a submersible pump system.
Eliminates surface motors and costly rod string wear.

Comparative Results: All amounts in USD thousands, except per share amounts and as noted.

Three Months Ended September 30

2015

2014

% Change

$1,192

$1,698

(30%)

$321

$428

(25%)

Net Earnings (Loss)

($882)

($1,438)

(39%)

Earnings (Loss) per share

- Basic and Diluted

($0.01)

($0.01)

2015

2014

% Change

Revenue

$3,799

$4,773

(20%)

Gross Profit

$1,315

$1,510

(13%)

Net Earnings (Loss)

($4,430)

($3,569)

(24%)

Earnings (Loss) per share

- Basic and Diluted

($0.04)

($0.04)

Revenue
Gross Profit

Nine Months Ended September 30

All amounts in USD thousands, except per share amounts and as noted.

As at September 30, 2015

Cash and Cash Equivalents

$287

Property, Equipment and Trademark

$751

Debentures (in CAD, due December 31, 2015)

$5,750

As at March 4, 2016
Shares

94,848,820

Warrants

7,725,000

Options

6,800,000

Fully Diluted

109,373,820

Market Cap. ($CAD)

$28.4 million

 Management team brings decades of experience in the energy services arena

Background of the team ideal to move product to commercialization and capture ongoing market
share from existing and outdated pump jack technology
Alignment with shareholders and strong corporate governance

Management Team

Board of Directors

Ken Berg President & CEO

Scott Berry Chairman

Previous - Sanjel, Amoco Petroleum, Dome Petroleum

Past Executive Director of Empowering Minds

Scott Hamilton, CA CFO & Corporate Secretary

Previous - Solana Resources, Crossfire Energy Services, Inc., Brahma
Compression Ltd.

Kenneth Bagan
Director of Trican Well Services, past Director of PSAC, Member ICD

John Grisdale
Past President of CanAir Nitrogen; Past President of US Division, Calfrac

Martin Hall
Director of Karnalyte; Past Sr VP Finance & CFO of Tesco Corporation

Robert Riecken
VP Drilling, Completions, Construction, and Supply Chain, Repsol

Ken Berg
President & CEO, Divergent

$0.60

$0.50

Mar 2014:
Final tranche of Debenture
($597k); total gross proceeds of
$5.75MM

$0.40

Feb 2016:
DVG Announces
$550k Private
Placement

Mar 2015:
DVG Pump test
commences

Jun 2014:
Shareholders approve name
change to Divergent (previously
Canadian Oilfield Solutions Corp)

June 2015
Ops update +
SK operations
facility identified

Dec 2014:
Extends maturity
of outstanding
debentures to
Dec 31, 2015

Dec 2013:
$5MM Debenture Issue
Announced

Jan 2016:
DVG Pump
installed in client oil
well in SE SK

Nov 2015:
DVG Pump lands
in SK for client
installation

$0.30
New management requests a Cease
Trade Order to address disclosure
concerns in previously released
financial statements.
$0.20

Aug 2015:
Q2 Results reported;
WY activity levels &
market share beat
estimates

Aug 2014:
Q2 results + 5
DVG Pumps
ready to ship to
Canada. New BD
Manager hired

Feb 2015:
Signed 5 year service
agreement for Linear Pump
with large oil company; 1st
candidate well identified

$0.10

Dec 2014:
Signed 3 year extension to exclusive
rights to Linear Motor technology with
manufacturer

Dec 2013:
Revocation of Cease Trade Order &
resumption of trading after
managements concerns resolved

$0.00

Q3

Q4
2013

Q1

Dec 2015:
Debentures extended to
Dec 2017, and amended
to allow interest
payments in shares

Q2

Q3
2014

Q4

Q1

Q2

Q3
2015

Q4

Q1
2016

Changing the way clients produce energy

Divergent Energy Services Corp.
Corporate Office
1170, 800 6th Ave SW
Calgary Alberta T2P 3G3
T: 403.543.0060
F: 403.543.0069
www.divergentenergyservices.com
TSX-V: DVG