The results from the EM campaign will be used to select prospects for drilling and to select areas for future license applications. The total value of the contract, conditional upon a final survey program, has a minimum estimated value of NOK 70 million.
The contract specifies a minimum of 25 survey lines that will be utilized to acquire the data, with an option, at Rocksource`s discretion, to increase the total number of lines to a maximum of 50. Rocksource and emgs anticipate that the execution of the contract with the minimum data acquisition program will take approximately three months. This period offers flexibility to both parties as it allows emgs the ability to design an efficient utilization plan for the performance of services, while affording Rocksource with the opportunity to add survey lines to the project should that be desirable.
Rocksource has developed a high level of expertise in modeling, processing and interpretation of EM data and it is a vital part of the company's strategy to utilize EM technology in the exploration for hydrocarbons.
Trygve Pedersen , CEO of Rocksource stated:
"We are pleased to co-operate with the largest and most experienced EM data acquisition company. We believe that their operational experience and high quality equipment will satisfy our needs for data. This contract represents a major step in implementing our strategy and allows us to utilize our competitive strengths in handling and interpreting electromagnetic data. Rocksource will utilize these datasets to select prospects with high probability of finding hydrocarbons prior to investing in expensive 3D seismic and exploration wells. This will increase our overall exploration efficiency."
Chief Technology Officer of Rocksource, Dr. Jonny Hesthammer, commented:
"We are very much looking forward to this collaboration. emgs provides data of high quality and Rocksource has its own proprietary system to handle the huge amounts of data to be acquired with respect to the crucial aspects of integrated processing and analyses for the decision making process. Prior to the acquisition, Rocksource has carried out extensive modeling to ensure EM suitability for the prospects to be mapped."
Terje Eidesmo, CEO of emgs, stated:
"emgs is pleased to enter into a contract that further strengthens our existing fleet's utilization level, while also providing us with the flexibility to efficiently manage our resources and capacity. We believe that Rocksource is an advanced user of EM data and we are pleased to see that our seabed logging technology continues to penetrate the E&P industry. We are equally pleased that our seabed logging technology will be used by Rocksource in an early exploration phase to map the potential in such a large number of prospects."
On March 14, 2007, Rocksource announced a bank loan facility with DnBNOR Bank for NOK 150 mill related to exploration on the NCS. This facility will allow for efficient use of the company's financial resources related to the exploration carried out on the NCS, including this EM campaign.
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