YGEN.L Regulatory News (YGEN)

VIALOGY PLC ("VIALOGY" or "THE COMPANY")

TRADING UPDATE

QUARTERLY BUSINESS HIGHLIGHTS

London, April 4, 2011, ViaLogy PLC (LSE: VIY). ViaLogy reports the following business highlights for the quarter ending March 31.

ViaLogy has made significant progress in its strategy of winning major global oil and gas industry clients, applying QuantumRD in major onshore and offshore exploration and development projects, and positioning QuantumRD as an accepted risk reduction technology in the industry's mainstream. Having completed technical discussions and successfully concluded technology demonstration projects, detailed contract proposals have been requested and submitted both to a Fortune Global 500 E&P firm and a major National OilCompany. ViaLogy's work should complement and enhance industry tools, and the Board's intention is that it should also establish both price and revenue levels for its QuantumRD technology. Successful application of the technology could spell capital expenditure savings as well as more accurate drilling locations for the two clients. Contract timing will depend in part on government approval for work in national lease properties and specific contract terms and conditions.

Under a previously announced contract ViaLogy has analysis underway on seismic data provided for a prospect owned by a supermajor company.

ViaLogy has also launched a development project to extend the use of Quantum Resonance Interferometry (QRI), its fundamental patented IP, to the shale gas microseismic market. This rapidly developing market segment utilises seismic data to monitor subsurface activity during the fracturing process, a key step in the production of natural gas. Vast natural gas deposits in the US and elsewhere will depend upon microseismic analysis for extraction. ViaLogy believes its weak signal detection technology, and its ability to detect subtle fractures, can both reduce costs and facilitate production. Natural gas is projected to account for 24% of the global energy supply by 2020 and shale gas is expected to account for over 64% of the natural gas in the US by 2020.  ViaLogy is pursuing this work in conjunction with an international oilfield services company.

ViaLogy recently received notice that its QRI technology patent has been officially allowed in China, an important step in protecting ViaLogy's future market position in that country. Patents have already been issued in the US and Europe.

In an update to the January announcement reporting a successful well based on QuantumRD analysis, initial production has been established at over 100 barrels per day. Hydrocarbon zone depths and porosities conform to ViaLogy's projections.

CEO Robert Dean commented, "ViaLogy continues to make impressive progress as measured against our ambitious business objectives. For over a year most of our limited resources have been focused on further development of the technology, on demonstrating its use as a risk-reduction tool in the context of an accepted industry workflow suite, and its application and efficacy in tough exploration prospects by clients whose recognition will be critical to business growth. Pre-contract work for our prospective clients has contributed to a real spirit of partnership. Also, the importance of natural gas as a current and future energy source has convinced us that we have to devote effort to enter this adjacent market for our technology." 

For further information contact:

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) 207 107 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.