3 Jan 2012 07:00
ViaLogy PLC ("ViaLogy" or "the Company")
Business update
Pasadena, January 3, 2012. ViaLogy PLC (VIY LSE/AIM), a provider of reservoir characterization, geophysical imaging and hydrocarbon sizing services to global oil and gas Exploration and Production companies based on proprietary, patented active signal processing technology, reports substantial progress has been achieved in consolidating relationships with major oil and gas exploration companies on three continents during the last quarter of 2011. In Asia, a contract with a National Oil Company awaits government approval to transfer seismic information before it is signed. In the US, a pilot contract with a supermajor has been completed and acknowledged as positive by the client, and for a large independent exploration company a blind test determined porosity features across a 60 sq km prospect in Texas. In Europe, at the invitation of another supermajor, ViaLogy scientists briefed over 50 company geophysicists around the world on QuantumRD, its powerful computational weak signal processing technology which aids the discovery, characterization, and sizing of hydrocarbon deposits.
In updating the Company's progress to bring the technology to the attention of the O&G giants, CEO Robert W. Dean acknowledges that there have been time frustrations beyond ViaLogy's control; "Unforeseen delays unrelated to our work have affected the consummation of contracts," he said.
In Asia, ViaLogy expects contract awards from two global E&P companies. The first such contract, with a National Oil Company, the contract award process has been dictated by standard procedures and timelines already in place for work performed on government leased fields. Now, however, negotiations have been concluded and contract terms agreed. The final phase involves obtaining approval from the government for the export of seismic data to ViaLogy's US headquarters in Pasadena. In the second case, many similar rules apply both to leaseholder and ViaLogy, but the ViaLogy board believe that the contract process is now on track to award.
In the US, results from ViaLogy's pilot contract for its current supermajor client have been acknowledged as positive and have presented results and conclusions on porosity values that would be unattainable with technology now in use by the client. Their quantitative analysis continues, and should result in further contract work under our already-signed Master Services Agreement.
Another ViaLogy success, this one for a large US-based independent, determined porosity features across a 60 sq km prospect in Texas. In this blind test of the technology porosity values were determined in five Permian formations using seismic data from which other analysis techniques had been unable to extract this information. The client confirms this and is conducting further quantitative evaluation. Accurate predictions of porosity are fundamental in identifying hydrocarbon locations, and a measure of QuantumRD's ability to add breakthrough value in the seismic analysis industry.
Involvement in Europe resulted from an unsolicited approach to ViaLogy by a second supermajor in September. Now detailed technical examination is underway and has been ongoing for over three months. The process has extended to multiple locations, and the supermajor has engaged its most senior technical and scientific staff, as well as its operational management.
"Running this gauntlet of rigorous technical scrutiny takes time and concentration, but is at the heart of client recruitment for us in this 'big tent' part of the industry. It will serve ViaLogy well going forward, and should result in contracted project work," said Mr. Dean.
For further information:
ViaLogy PLC
Terry Bond, Chairman - UK & Europe +44 (0) 1235 834 734
Nominated Advisor to ViaLogy PLC (Seymour Pierce)
Mark Percy / Catherine Leftley, Corporate Finance +44 (0) 207 107 8000
Katie Ratner / Jeremy Stephenson, Corporate Broking +44 (0) 20-7107-8000
About ViaLogy:
ViaLogy provides reservoir characterization, geophysical imaging and hydrocarbon sizing services to global oil and gas customers based on proprietary, patented active signal processing technology. ViaLogy's QuantumRD platform assists clients in de-risking prospects over a broad range of subsurface lithologies and complex stratigraphies to generate drilling targets, position offsets and enhance recovery.
ViaLogy's core technology rapidly and accurately detects weak signals buried in high noise background and clutter, and is applicable to active/passive seismic, electromagnetic and magneto telluric data. By exploiting normally disregarded noise variations induced by changes in porosity, fluid presence and permeability across the formation, and adding computer-designed noise to the data, ViaLogy is able to amplify subtle noise variations to enhance areal and depth resolution in complex lithologies that are not achievable through conventional means. For more information on ViaLogy, visit www.vialogy.com