Aker Exploration AS has entered into a contract with Electromagnetic Geoservices ASA (emgs) for the acquisition of Seabed Logging (SBL) data in the Barents Sea, Norwegian Sea and North Sea, commencing on the Norwegian Continental Shelf (NCS) in May 2007.
The minimum seabed-logging program to be performed by emgs for Aker Exploration in 2007 has a contract value of $30.8 million. Aker Exploration has the option for an additional seabed-logging program in 2007 from emgs with a contract value of $6.7 million.
In addition, the contract provides that Aker Exploration has the option to extend the scope of work to be performed by emgs on an annual charter-based contract for each of the years 2008 through 2011. If all options were to be exercised by Aker Exploration, the contract price for the four additional years would total $196 million.
There can be no assurance that any of the options in the contract, including the 2007 option, will be exercised by Aker Exploration. The contract is subject to customary termination provisions.
emgs will conduct a unique and complete seabed-logging package. The contract specifies pre-survey feasibility studies and related modelling, survey planning, data acquisition and data processing and interpretation. Areas in the Barents Sea, Norwegian Sea and North Sea will be surveyed using emgs` proprietary scanning method.
The survey will allow Aker Exploration to test prospects by utilising emgs` seabed-logging technology and interpretations skills. The survey will constitute an important part of the selection of drilling prospects and areas for future licence applications. 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.
'Through the contract with Aker Exploration we have received further recognition for our premier service within SBL. We are proud to be selected as partner for Aker Exploration in their offensive move on the NCS', comments Terje Eidesmo, CEO of emgs.
'We believe that seabed-logging technology will become the increasingly adopted methodology to help oil and gas companies achieve better results going forward', he says.
Aker Exploration is a pure exploration company, focusing in northern part of the North Sea, Norwegian Sea and Barents Sea on the NCS. Aker Exploration was pre-qualified as an oil company on NCS in November 2006, and the company has secured a 5 year contract with a sixth generation rig commencing fourth quarter 2008. Sufficient financial strength has been secured December 2006.
'By entering into this contract will enable Aker Exploration to integrate this tool to reduce risks in preparing for the drilling campaign commencing fourth quarter 2008. If we can avoid drilling one well or add one successful drilling we have justified the cost of this survey. Aker Exploration believes this tool integrated with other subsurface competence will add value to our business proposition on NCS,' says CEO Bård Johansen.
For additional information, please contact:
Terje Eidesmo, Chief Executive Officer
+47 73 56 88 10
Terje Eidesmo, Chief Executive Officer
+47 73 56 88 10
This press release includes statements that may constitute forward-looking statements. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond emgs' management's control. All statements other than statements of historical facts included herein may constitute forward-looking statements. Although emgs' management believes that the expectations reflected in the forward-looking statements are reasonable, emgs can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect our operations, financial performance and other factors