OHM "sells technology to save business"Company News // October 4, 2010
Herald Scotland reports that Offshore Hydrocarbon Mapping (OHM) has sold off a key part of the technology it spent millions of pounds developing for just US$150,000 (£96,000) to help keep the business afloat.
Aberdeen-based OHM has agreed to sell two subsidiaries that complete surveys for oil and gas firms to a consortium of Norwegian firms in a deal which will trigger a £6 million book loss for the firm.
The disposal includes the equipment required to complete surveys using Controlled Source Electromagnetic Imaging and associated intellectual property developed by OHM.
The company claimed that this provided firms with a more reliable means of identifying hydrocarbon deposits than conventional techniques. However, after struggling from slow take-up rates, OHM has racked up hefty losses.
Announcing the disposal, directors said they had considered placing the units that they planned to sell – OHM Ltd and OHM Malaysia – into administration.
“Directors would draw attention to the fact that, in their opinion, if the proposals are not consummated in full in the near future the Group may run out of funding alternatives,” the company said.
The disposal will free the group from the need to provide the US$10 million working capital and investment that the firms it is selling will require before December 2011.
The slimmed-down group will focus on the interpretation of the complex information that is gathered by surveys. It has retained ownership of the technology used to interpret the results of CSEM surveys. It has also kept the Rock Solid Images subsidiary, which specialises in integrating data from multiple sources, including seismic.