5 May 2009 07:00
VIALOGY PLC ("VIALOGY" OR "THE COMPANY")
Accuracy of latest oil well predictions independently confirmed
London, May 5, 2009. Vialogy (LSE:VIY) Following the announcement on 23 April 2009 that a further oil discovery had been made on the Galba Field, Texas ("Mary Ridgeway #1"), ViaLogy is pleased to announce that it has now received detailed analysis confirming the predictions made using its QuantumRD technology on the oil find. The successful well was drilled by the leaseholders, Atascosa Exploration LLC of San Antonio.
Using industry standard core analysis practices, Atascosa has received independent confirmation that the well will produce 170,000 barrels of crude oil (i.e. 35% primary recovery based on an overall actual volume of 486,000 barrels). Atascosa plans extractions of 50% of the recoverable reserves in first three years. ViaLogy's QuantumRD predictions of hydrocarbon pay zones at depth of 3050 feet with average porosity of 30%, and the oil reservoir's boundaries all proved correct. With a 10% direct working Interest, ViaLogy expects to receive revenues of approximately $650,000, assuming 35% recovery, over the life of the well (assuming an average per barrel price of $50) to be paid monthly and to begin in Q2 2009.
Atascosa's Senior Geologist, Wilford Stapp commented, "I am very impressed by ViaLogy's ability to combine geological assessment with subsurface seismic interpretation to locate hydrocarbon high saturation zones in consolidated sands. We have concluded that Mary Ridgeway #1 is a new isolated reservoir in the Bartosh formation with multiple pay zones. ViaLogy's optimized drill location has ensured that this new well will not compete with other producing wells, enhancing our total recovery from the field." Mr. Stapp has Emeritus standing with both the American Association of Petroleum Geologists and Society of Petroleum Engineers; he founded the Publication of the South Texas Geological Society, and was a Fellow of Geological Society of London. He has been an expert practicing geologist for over 50 years working with majors and independents. Besides Texas, Mr Stapp has worked in Asia, Australia, Dominican Republic, England, France, Morocco, Namibia, and the Persian Gulf.
ViaLogy has also agreed terms with Atascosa for the drilling of a third well on the Galba Field and discussions are under way for the application of QuantumRD at a number of other Atascosa lease sites. In addition, Vialogy expects to be working with other customers on additional oil discovery projects in the coming weeks.
Vialogy CEO, Robert Dean, commented, "The accuracy of ViaLogy's QuantumRD analysis and predictions on these first successful wells is impressive. The technology is widely applicable, and the Company intends to demonstrate its capabilities with an increasing variety of hydrocarbon geological formations and an expanded customer set."
For further information please contact:
ViaLogy
Robert W Dean, President & CEO - US +1 626-296-6337 (mobile: +1 703-589-3807)
Terry Bond, Chairman - UK & Europe +44 (0) 1235-834734 (mobile: 07860 842756)
Atascosa Exploration LLC
John D. Mullins, CEO (+1 210-402-3656)
Nominated Advisor to ViaLogy PLC (Seymour Pierce)
Mark Percy +44 (0) 20-7107-8000
Brokers to ViaLogy PLC (St. Helen's Capital)
Ruari McGirr / Sebastian Wykeham +44 (0) 207 628 5582
About ViaLogy: Network Centric Signal Processing
ViaLogy is a leading innovator of network-centric, real-time signal processing platforms for sensor applications. ViaLogy is currently deploying and designing computational systems, powered by its patented technologies, for applications in life sciences, public safety and security, surveillance, defense and geoseismology. ViaLogy focuses on market driven problems where automation, timeliness, quality and reliability of information processing are essential. ViaLogy's core competency incorporates rapidly and accurately detecting weak signals buried in high noise background and clutter. This technology can be employed to solve problems involving sensor integration and information overload challenges involving video, telephony and control sensors, as well as for enhancement of numerous signal processing applications. For more information, visit our website at www.ViaLogy.com.
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied.