Under the extended agreement RXT has the exclusive right to purchase I/O`s 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. To date, RXT has purchased three systems and has one other system on order.
The exclusivity will extend through the end of 2011. As part of the terms of the Agreement, RXT is committed to purchasing a minimum of $160 million over the four year term of the agreement, in line with its intended growth plans, and will pay I/O a revenue related royalty fee equivalent to approximately 2.1% of the revenues that RXT receives from acquisition services using all existing and future VSO systems. In addition, the two companies will work together to further develop the VSO system, including the development of a next generation system.
Bob Peebler, President and CEO of I/O, Stated:
"RXT's further commitment to the VSO system signifies the E&P industry's increasing acceptance of full-wave imaging from the seabed and the system's ability to both image complex reservoirs and operate in challenging environments. This agreement also shows how successful the relationship between I/O and RXT has been in advancing OBC technology to deliver improved image quality in an efficient, HSE-aware manner. Together, we are revolutionizing the seabed market by making full-wave imaging possible in an ever-increasing number of offshore hydrocarbon basins around the world."
Mike Scott, CEO of RXT, commented:
"The VSO system has consistently shown the ability to acquire higher quality data than has previously been possible. This data quality, coupled with the VSO's buoy technology and RXT's efficient operational techniques, are allowing us to deliver on our stated goal of providing high-quality marine OBC data, at a competitive price, to our oil & gas customers. We continue to believe this will cause a step change increase in the use of OBC data, and are starting to see this happen. This agreement will allow us to work closely with I/O as a partner to further develop and improve our goals, as well as retaining the ability to offer this unique technology on an exclusive basis."
Reservoir Exploration Technology ASA (RXT) is a marine geophysical company specializing in multi component seismic sea-floor acquisition. Multi component seismic solves several imaging challenges that cannot be resolved with towed streamer seismic, and targets improved oil recovery from existing fields. The technology also gives better data quality for exploration, and is also the solution where towed streamers are impractical due to high density of platforms and/ or shallow waters. The Company has offices in Oslo, London and Houston.
I/O is a leading, technology-focused seismic solutions provider. The company provides cutting- edge seismic acquisition equipment, software, and planning and seismic processing services 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, I/O has regional offices in Canada, Latin America, Europe, China, Russia, Africa and the Middle East.
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