According to ASI president Gilles Labbe, ASI intends to use the database to generate prospects and acquire and drill leases primarily in the deep gas play of the Gulf of Mexico shelf.
Under the terms of the agreement, PGS will receive an equity position in ASI following completion of private equity funding. PGS will also receive a royalty from ASI for commercial completions drilled using the database.
"ASI believes that the deep gas shelf play is the next cycle in the continuing development of hydrocarbons in the Gulf of Mexico," said Labbe. "Given its potential for large field sizes (100-plus billion cubic feet), the existence of an infrastructure for access to markets, and the probability of natural gas prices remaining well above $3 per million cubic feet, the time is right to enter the deep-gas shelf," he added.
Mark Wilkinson, president, North and South America for PGS, said, "PGS is pleased with the reputation, experience, and strategy that ASI has brought to this new Gulf of Mexico endeavor. We have confidence that ASI can utilize this large volume of data to rapidly exploit the Shelf deep-gas play."
John Sherwood, ASI's chief executive officer, noted, "Our agreement with PGS gives us a leg-up on a developing play at exactly the right time. The difficulty for a new company in entering any play in the Gulf of Mexico has always been the extremely high cost of acquiring a significant data base. Given PGS' reputation and extensive reach throughout the world, we believe this relationship will be attractive to industry players," he added.
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