1 Apr 2009 08:10
VIALOGY PLC ("VIALOGY" OR "THE COMPANY")
VIALOGY INCREASES STAKE IN SUCCESSFUL WELL
LONDON, April 1st, 2009 - ViaLogy PLC (LSE: VIY). ViaLogy announces that it has exercised an option with Atascosa Exploration LLC, of San Antonio, Texas ("Atascosa") to acquire an increased shareholding in the Galba Prospect oil well in South Central Texas ("Cindy Bartlett #2") found in March 2009 using its QuantumRD technology. ViaLogy now owns a 10% direct working interest in the Cindy Bartlett #2 well with revenue to ViaLogy expected to begin in Q2 this year. This means that ViaLogy will receive 10% of the Net Revenue Interest of the well over its lifespan. The amount of oil in the well has been calculated using industry standard core analysis practices.
ViaLogy has also agreed terms and dates with Atascosa for the near-term drilling of a second well on the Galba Prospect in south central Texas. Using ViaLogy's patented QuantumRD technology, the Company's scientists and Atascosa's geology and engineering team will immediately examine 3D seismic data and QuantumRD analysis to decide the optimum location position for the drilling rig. Spudding of the second well is expected to start within weeks.
ViaLogy's increased holding in Cindy Bartlett #2, and the drilling of the new well, to be called Cindy Bartlett #3, further cements the relationship with Atascosa following the success of QuantumRD which was announced on 23 March 2009 on the discovery of a series of three new oil formations at increasing depths on the Galba Prospect. The first well on the site, Cindy Bartlett #2, was drilled into the formation lying at 3,100 feet. Use of the QuantumRD seismic interpretation technology verifies the presence of hydrocarbons, permits characterization of the reservoir and porosity, and siting of the drill location. The technology is based on protected active signal processing software capable of exploiting the "noise" inherent in most seismic data.
"For the immediate future we are focussing our activities on Texas," said ViaLogy's Chief Executive, Robert W. Dean. "We have a new technology that is proving its ability to improve the ratio of producing successful wells instead of dry holes, which for on-shore drilling in the continental USA currently occur in six cases out of ten. But the real secret is to combine our value-added ability to more effectively interpret the seismic data with the experience of geologists and oil men who know the areas in which we work."
"In this regard, over the past six months we've developed an excellent working relationship with Atascosa Exploration, and both companies have agreed to work closely together on future projects. So we welcomed the opportunity when Atascosa offered us a larger participation in the successful well we'd developed together."
Ends
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
Broker to ViaLogy PLC (St. Helen's Capital)
Ruari McGirr / Sebastian Wykeham +44 (0) 207 628 5582
About ViaLogy:
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.