RXT to Purchase an Additional VectorSeis Ocean SystemAugust 25, 2006
The acquisition reflects the increasing market demand for ocean-bottom seismic monitoring devices.
HOUSTON and OSLO, Norway /PRNewswire-FirstCall/ -- Input/Output Inc. announced the receipt of a purchase order valued at approximately $29 million from Reservoir Exploration Technology (RXT), a marine seismic contractor headquartered in Oslo, Norway, for their third VectorSeis Ocean (VSO) system. VSO is a redeployable, ocean bottom cable (OBC) seismic imaging system equipped with VectorSeis digital, full-wave sensors for multicomponent data acquisition on the seabed.
I/O plans to begin delivery of the system later this year. The new system will incorporate several hardware and software enhancements to reduce upfront equipment cost and improve operational efficiency, including Gator integrated command and control software from Concept Systems, a subsidiary of I/O.
Chuck Ledet, vice president of marine imaging systems division at I/O, commented, "As oil and gas companies seek to recover reserves in areas that are harder to access or from reservoirs that are more difficult to image, seabed seismic is emerging as a valuable solution. I/O has designed VSO to help contractors achieve step-change improvements in productivity and help their oil and gas company customers obtain high-resolution, full-wave images. It has been extremely valuable to collaborate with RXT over the past several years to improve the system even further. We expect that the recent improvements delivered in the third system will significantly increase operational efficiency. We look forward to continuing our close partnership with the RXT team."
Mike Scott, CEO of RXT, added, "RXT is excited to purchase our third VSO system from I/O. We have been extremely pleased with the data quality and cost efficiency achieved with the first two systems and look forward to putting the third system into operation early next year. As the general market demand for ocean bottom seismic continues to increase, we have plans to expand our operations into the Middle East, West Africa, and the Caspian to meet the growing seismic activity in these emerging markets. We appreciate I/O's commitment to further developing the VSO system for continued productivity and image quality improvements."
Last year, I/O and RXT jointly announced the signing of a multiyear agreement that provided RXT with worldwide exclusivity subject to future purchase commitments. By placing this order, RXT maintains their exclusive access to VSO through the end of 2006.
I/O is a leading, technology-focused seismic solutions provider. The company provides cutting-edge seismic acquisition equipment, software, planning, and seismic processing services and data libraries to the global oil and gas industry. I/O's technologies are applied in both land and marine environments, in traditional 2D and 3D surveys, and in rapidly growing areas like time-lapse (4D) reservoir monitoring and full-wave imaging. Headquartered in Houston, TX, I/O has regional offices in Canada, Latin America, Europe, China, Russia, Africa and the Middle East. Additional information is available at the company's Web site.
Reservoir Exploration Technology is a marine geophysical company specializing in multicomponent seafloor acquisition. The company was formed originally as Terra Seismic Services in April 2002 in Norway and is funded by the private equity funds 3i and Lime Rock Partners with $18.8 million of committed capital in April 2004. A U.S. entity was established in 2004, and the first operation started in the Gulf of Mexico in June 2004. In July 2005, RXT received a secondary capital commitment of $35 million in a private placement. Additional information is available at RXT's Web site.
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