Mr. Pramod Jain reports

CMG ANNOUNCES THE ACQUISITION OF ROSE SUBSURFACE ASSESSMENT

Computer Modelling Group Ltd. has acquired Rose Subsurface Assessment, a globally recognized provider of probabilistic subsurface risk analysis and resource assessment software, training, consulting, and operator consortium services for the global exploration and production industry.

Key acquisition highlights

• Purchase consideration $9.8-million (U.S.), consisting of $8.8-million (U.S.) paid in cash at closing, plus an amount equivalent to Rose's cash on hand immediately prior to closing, with the remainder subject to a customary holdback, and a potential earnout of up to $2.5-million (U.S.) tied to performance milestones;
• Trailing-12-month (TTM) revenue approximately $6.8-million (U.S.);
• Recurring revenue represents over half of total revenue;
• Peter Carragher, currently managing partner at Rose, to be appointed as general manager.

"Rose is a recognized leader in probabilistic subsurface risk assessment, trusted by operators around the world for its rigorous methodology and decades of calibration," commented Pramod Jain, chief executive officer, Computer Modelling. "In welcoming Rose to CMG, we're expanding our geoscience capabilities with a solution that is both scientifically robust and highly respected in the market. Rose's software and expertise complement CMG's seismic and reservoir simulation solutions in the operator workflow, creating a natural extension of our offerings. Its deep customer relationships and compelling software adoption potential make this an exciting acquisition for us. We are very pleased to welcome the Rose team to CMG."

Peter Carragher, managing partner at Rose, commented: "We are incredibly proud of the business and the community of clients we've built over many years. What makes this next step meaningful is that both Rose and CMG are recognized for working closely with customers and delivering a level of service and expertise that sets us apart in the industry. Our shared commitment to deep technical engagement and responsive support creates a strong foundation for the future, and we see significant opportunity to extend that impact as part of CMG."

About Rose Subsurface Assessment

For decades, Rose has set the industry standard in probabilistic resource assessment and subsurface risk analysis. Its flagship software, Geo Risk Analysis Studio, enables a key piece of the subsurface workflow and enables operators to make better risk-informed decisions on exploration prospects, development planning, and portfolio management in both oil and gas and carbon capture and storage projects.

Rose operates two proprietary operator consortiums with over 30 members each, providing access to 25 years of calibration data and peer benchmarking. In addition, Rose offers specialized training programs grounded in its statistical methodology, as well as consulting services that support operators in applying Rose's approach within their subsurface workflows.

About Computer Modelling Group Ltd.

Computer Modelling is a global software and consulting company that combines science and technology with deep industry expertise to solve complex subsurface and surface challenges for the new energy industry around the world. Computer Modelling is headquartered in Calgary, Alta., with offices globally.

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