SeaBird to enter into a strategic cooperation with PGSCompany News // January 28, 2011
SeaBird Exploration PLC has announced an agreement for what it callled "a strategic cooperation" to further develop Ocean Bottom Node (OBN) operations together with Petroleum Geo-Services (PGS).
The agreement enables the two companies to provide a complete seismic solution in deepwater, in areas with complex geology, and in areas with heavy infrastructure on the seabed.
"We expect this agreement to further strengthen each of the two companies leading positions in the reservoir monitoring market, which has been, and is expected to represent the fastest growing segment of the seismic market," said the company.
The use of OBN for 3D, 4C and 4D seismic to map complex reservoirs, will be particularly attractive combined with PGS' broadband GeoStreamer technology, and opens up for extending the application of the SeaBird OBN technology.
Under the terms of the agreement, PGS will gain exclusive rights to offer SeaBird's autonomous seabed recording technology at market terms in Brazil in solutions combining OBN and streamers.
SeaBird will gain access to PGS' extensive worldwide marketing network and geophysical expertise and the parties have expressed intentions to explore further areas of cooperation, such as data processing and use of GeoStreamer on SeaBird's 2D vessels.
In relation to the agreement, SeaBird will issue a five year convertible loan of NKr 240 million directed towards PGS. The loan will have an annual interest of 9 per cent that can be paid in cash or in kind. At any time, the loan can be converted into ordinary shares at a conversion price of 3.35 NKr per share until the maturity date.
The cooperation agreement and the convertible loan are subject to approval by SeaBird's shareholders. An extraordinary general meeting will be held as soon as possible, probably in mid-February 2011.
Tim Isden, SeaBird's chief executive officer, said: "We are delighted to team up with PGS' extensive marine geophysical expertise and global presence.
"The combination of SeaBird's industry-leading OBN technology and PGS' strong position in the seismic market will further strengthen the development of our OBN division, and will give SeaBird a better foundation for expanding this business segment and increase efficiency to our clients. Also, we expect that the cooperation with PGS will enhance the utilization of our 2D and Source vessels when opportunities arise."