The Rocksource ASA Group ("Rocksource") has entered into a contract with ElectroMagnetic GeoServices AS ("emgs") for the acquisition of electromagnetic data on the Norwegian Continental Shelf (NCS) during the summer of 2007. This will allow Rocksource to test a large number of prospects by utilising EM technology and interpretations skills. The results from the EM campaign will be used to select prospects for drilling and to select areas for future licence applications. The total value of the contract is conditional upon a final survey programme but has a minimum estimated value of NOK 70 million.
The contract specifies a minimum of 25 survey lines that will be utilised to acquire the data, with an option, at Rocksource's discretion, to increase the total number of lines to a maximum of 50. Rocksource and emgs anticipate that the execution of the contract with the minimum data acquisition programme will take approximately three months. This period offers flexibility to both parties as it allows emgs the ability to design an efficient utilisation plan for the performance of services, while affording Rocksource with the opportunity to add survey lines to the project should that be desirable.
Rocksource has developed a high level of expertise in modelling, processing and interpretation of EM data, and it is a vital part of the company's strategy to utilise EM technology in the exploration for hydrocarbons.
emgs is the global market leader for the provision of seabed logging services, a technology that enables the detection of hydrocarbons beneath the seabed prior to drilling. emgs has developed this proprietary and patented technology over the past 10 years. Since its incorporation as a separate company in 2002, emgs has conducted more than 200 commercial surveys for many of the world's leading oil and gas companies and offshore operators.
Trygve Pedersen, CEO of Rocksource states : " We are pleased to co-operate with the largest and most experienced EM data acquisition company. We believe that their operational experience and high quality equipment will satisfy our needs for data. This contract represents a major step in implementing our strategy and allows us to utilise our competitive strengths in handling and interpreting electromagnetic data. Rocksource will utilise these datasets to select prospects with high probability of finding hydrocarbons prior to investing in expensive 3D seismic and exploration wells. This will increase our overall exploration efficiency."
Chief Technology Officer of Rocksource, Dr. Jonny Hesthammer comments: "We are very much looking forward to this collaboration. emgs provides data of high quality and Rocksource has its own proprietary system to handle the huge amounts of data to be acquired with respect to the crucial aspects of integrated processing and analyses for the decision making process. Prior to the acquisition, Rocksource has carried out extensive modelling to ensure EM suitability for the prospects to be mapped".
Terje Eidesmo, CEO of emgs states: "emgs is pleased to enter into a contract that further strengthens our existing fleet's utilisation level, while also providing us with the flexibility to efficiently manage our resources and capacity. We believe that Rocksource is an advanced user of EM data and we are pleased to see that our seabed logging technology continues to penetrate the E&P industry. We are equally pleased that our seabed logging technology will be used by Rocksource in an early exploration phase to map the potential in such a large number of prospects".
Trondheim, March 19, 2007
emgs
Terje Eidesmo
CEO
+47 73 56 88 10