Genesis Petroleum Enters Seismic Data Acquisition Deal
Genesis Petroleum has entered into an agreement with one of the world's leading offshore seismic data providers to access modern offshore 3D seismic data from a data library of approximately 150,000 square kilometers covering proven hydrocarbon basins offshore Norway, Denmark, Netherlands, Germany and the UK.
Seismic data is the primary tool used by oil and gas companies in the search for hydrocarbons. 3D seismic data can be interpreted to generate a three-dimensional model of the earth's sub-surface which is then used to determine the likelihood of oil and gas deposits and the optimum drilling location for their exploitation.
The Company believes that access to the data on the terms agreed and review by Genesis technical staff will give it a significant advantage exploring for oil and gas in the region. Genesis believes that its technical review of data over specific areas, at minimal initial cost, will enable it to be technically more objective and focused in its selection of, and application for, offshore acreage in the region. The Company also believes the agreement will allow it to have better informed discussions with other oil companies about potential joint ventures and farm-in arrangements, without the usual expense of acquiring seismic data.
Speaking for Genesis, Gerry Harrison (CEO) said:
"This Agreement complements our existing agreement with another seismic data provider which covers 50,000 square kilometers of mainly internationally located seismic data and provides Genesis with access to a total data base of 200,000 square kilometers of 3D seismic. The data provides the Company with a fantastic regional perspective which allows us to be very selective about taking acreage positions and developing farm-in opportunities. We intend to apply for offshore acreage only where we already have an informed view of its prospectivity based on the latest 3D technology. This reduces the exploration risk.
In addition, this agreement gives us the dual advantage of both reduced cost as
we only incur significant fees when we win acreage as well as a reduced time to
drilling since a significant amount of the technical work will have already been
done. We have already demonstrated the benefits of this type of agreement by
winning five Blocks in the North Sea and forming partnerships with Lundin
Petroleum and ConocoPhillips. This latest agreement allows us further
opportunity to selectively win good acreage and form strong partnerships."
- Genesis Picks Up UK North Sea, Norwegian Blocks (Jun 15)
- Genesis Scoops Up Production License Offshore Norway (May 01)
- Genesis Grabs Interests in 2 UK North Sea Licenses (Nov 13)