DUG Technology: seismic imaging software wins over oil and gas majors
A niche seismic-imaging product called Elastic MP-FWI has turned DUG Technology from an overlooked small-cap into a fund manager favourite, anchored by a multi-year Petronas deal and a growing order book of oil and gas majors following its lead.
31 May 2026 · 4 min read
In short
DUG Technology signed a multi-year deal with Petronas in September 2025 for its Elastic MP-FWI seismic imaging software, which Perennial Partners said drove a 68.5% share price gain in a single month.
1851 Capital noted the MP-FWI product now makes up over half the company's order book, which has grown by more than $70 million over eight months, while the stock trades on an attractive price-to-earnings multiple of around 30 times given its growth outlook.
Perennial Partners reported in May 2026 that a strong quarterly update showed operating leverage taking hold, with revenue growth translating into stronger earnings momentum heading into FY27.
DUG Technology Ltd (ASX: DUG) spent much of the past year converting a specialist seismic-imaging product into a broader fund manager thesis. 1851 Capital described the opportunity in September 2025 in plain terms, noting the company's Elastic MP-FWI software helps oil and gas companies better interpret seismic data to decide where to drill, an important capability given the hundreds of millions of dollars majors spend annually on exploration wells.
This particular product is now over half the company's order book and they've had a number of wins over the last eight months. They've grown their order book by more than $70 million... A lot of people haven't heard of the particular company. The prospects and the growth outlook for that business is very, very strong.
1851 Capital, Article, September 2025
A landmark deal validates the technology
The clearest proof point for the thesis arrived the same month, when Perennial Partners reported DUG Technology signed a multi-year deal with Petronas for the supply of its MP-FWI imaging software and supporting data centre and scientific capacity, a deal that was later upgraded once the scope was finalised. The fund said the share price rose 68.5% on the news, and argued other majors were likely to follow the Petronas example given many have completed, or are close to completing, their own pilot projects using the software.
A seasonally slow quarter, then a return to form
The stock's path since has not been linear. Perennial Partners noted DUG Technology finished October 2025 down 19.8% after quarterly numbers came in a touch below market expectations, though it attributed the softness to September being seasonally the slowest quarter for the business and maintained that full-year consensus remained achievable. That view was borne out in February 2026, when a strong interim result made DUG a positive contributor to performance, and again in May 2026 when a quarterly update showed continued global demand for the MP-FWI technology.
What managers are watching next
The May 2026 update was notable for what it revealed about the underlying economics of the business rather than just the revenue growth itself. Perennial Partners said the result demonstrated operating leverage taking hold, with revenue growth translating into stronger earnings momentum heading into FY27, while broader tailwinds from an improving oil and gas capex outlook and elevated energy prices provided additional support. With the Petronas relationship now established as a reference case, the next catalyst fund managers are watching for is further conversion of the pilot projects other majors have been running into signed, multi-year contracts of similar scale.
Questions
What is DUG Technology's key product?
DUG Technology's Elastic MP-FWI is a seismic imaging software product that helps oil and gas companies better interpret seismic data to make more informed decisions about where to drill, and 1851 Capital notes it now accounts for over half the company's order book.
Why did DUG Technology shares rise 68.5% in September 2025?
DUG Technology signed a multi-year deal with Petronas for the supply of its MP-FWI imaging software and supporting data centre and scientific capacity, a deal Perennial Partners said drove the sharp share price gain and that it expected other majors to follow.
Is DUG Technology's business showing operating leverage?
Yes. Perennial Partners reported in May 2026 that a strong quarterly update demonstrated operating leverage in the business, with revenue growth translating into stronger earnings momentum heading into FY27.
5 managers, 11 comments, with each manager's latest recorded position.
See DUG