Houston, Texas (December 2, 2003) - A2D Technologies announced today that it has signed agreements with two leading geoscience firms to create high-value derivative exploration products. In separate deals with each company, A2D will supply log data and be the exclusive marketer of certain specialized well data products for Knowledge Systems and Loren & Associates.
"With these alliances, A2D has reached another milestone in our strategic vision to offer the industry easy access to valuable non-proprietary wellbore-related data," commented Rod Starr, Executive Vice President Sales & Marketing A2D Technologies. "The partnerships with Knowledge Systems and Loren & Associates will enable A2D to combine our leading online well log library with domain expertise to create high-value data to support exploration success."
Under the terms of the agreement with Knowledge Systems, A2D will supply its vast well log data for the creation of pore pressure and fracture pressure datasets. A2D's abundant digital data resources combined with Knowledge System's industry leading geopressure expertise will provide a product line to considerably impact an operator's success and create efficiency in exploration. Crucial in selecting the proper drilling techniques, these datasets will be created on-demand for clients exploring in the U.S. Gulf of Mexico.
"I am extremely pleased to have this new relationship with A2D as it provides an important outlet for our company to capitalize on the geopressure experience we have gained from analyzing geopressures for more than 1000 difficult wells in all parts of the world," remarked James W. Bridges, Chairman and CEO of Knowledge Systems, Inc. "With the industry losing billions of dollars each year as a result of geopressure and geomechanical related drilling problems, I am convinced that the ready availability of this data is an important step towards reducing drilling cost and improving safety while drilling."
In an agreement with Loren & Associates, A2D will provide critical data for creation of a purified well log dataset. The Loren method - log purification - is a multi-well, multi-zone, multi-parameter nonlinear regression technique for replacing inaccurate or missing log data. This process dramatically improves the quality of synthetic seismic traces created from the well logs and therefore helps the end user to properly calibrate direct rock property measurements to seismic data. The companies will initially produce purified logs on-demand in the highly active deep gas plays in the Gulf of Mexico offshore Louisiana. Discussions are currently underway with several operators for early participation.
"This relationship with A2D and access to their large digital log database will enable purified log products to be offered on an expanded basis at a reduced price" noted Dennis Loren, President of Loren & Associates, Inc., "Loren's purified log products have consistently enabled our clients to profit from improved seismic interpretation due to better synthetic seismograms, wavelet extractions, inversions, AVO modeling, check shot understanding, and other fundamental geophysical prerequisites."
A2D's strategy to enter into alliances with leading companies that provide unique high-quality, high-value exploration data is expected to contribute to A2D's long-term revenue growth and visibility in the competitive geoscience data marketplace.
"Capitalizing on synergies between seismic data from our parent company, TGS-NOPEC, and now alliances with third parties allows us to grow sales of both our well log assets and our suite of related services," said Starr.
A2D Technologies, a wholly-owned subsidiary of TGS-NOPEC Geophysical Company, pioneered the delivery of digital well log data over the Internet and currently offers a one-of-a-kind integrated solution for well log data sourcing, well log data management and well log correlation.
TGS-NOPEC is a leading global provider of non-exclusive seismic data and associated products to the oil and gas industry. TGS-NOPEC specializes in the planning, acquisition, processing, interpretation and marketing of non-exclusive surveys worldwide. The company places a strong emphasis on providing high-quality seismic data and the highest level of service to the industry.
All statements in this press release other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions. These include TGS-NOPEC's reliance on a cyclical industry and principal customers, the company's ability to continue to expand markets for licensing of data, and the company's ability to acquire and process data products at costs commensurate with profitability. Actual results may differ materially from those expected or projected. TGS-NOPEC undertakes no responsibility to update forward-looking statements.
TGS-NOPEC is listed on the Oslo Stock Exchange (OSLO:TGS). Web-site: www.tgsnopec.com
TGS-NOPEC is listed on the Oslo Stock Exchange (OSLO:TGS). Web-site: www.tgsnopec.com
John Adamick, VP Business Development
TGS-NOPEC Geophysical Company
Telephone: +1 713 860-2100
Email: jada@tgsnopec.com
Rod Starr, Executive VP Sales & Marketing
Arne Helland, Chief Financial Officer
TGS-NOPEC Geophysical Company ASA
Telephone: +47 91 88 78 29/+47 31 29 20 33
Email: arne@tgsnopec.no