ViaLogy PLC announced that it has entered into an agreement with a Texas-based oil and gas exploration and production company, Atascosa Exploration LLC. Atascosa is going to use ViaLogy's unique technology, the QuantumRD in order to analyze seismic data for more accurate definition of the extent and density of underground oil reservoirs prior to the commencement of drilling. The data analysis on three prospective Texas-based well sites will begin immediately. Complete results will be delivered by ViaLogy to Atascosa within three weeks.
The problems of predicting oil traps from coarse seismic data analysis have plagued the oil and gas industry for decades. Pinpoint accuracy is essential. Predictions that are just a few feet out can waste millions of dollars.
QuantumRD applies ViaLogy's patented and proven Quantum Resonance Interferometry technology to analyze coarse 2D and 3D seismic signals and extract more detailed and accurate information than has ever been possible. For the first three pilot wells ViaLogy and Atascosa have reached a non-operating interest participation arrangement, which is based on production in excess of their oil trap estimates prior to the QuantumRD analysis. Assuming that the analysis proves successful the two companies have agreed to form a joint venture company or other business arrangement for the commercialisation of Quantum RD within the United States.
Atascosa CEO, John D. Mullins, said, "We are delighted that Atascosa can take the lead in bringing ViaLogy's technology to market. A successful pilot should result in the widespread use of QuantumRD throughout the industry."
ViaLogy CEO, Robert W. Dean, said, "QuantumRD should increase the accuracy of existing and future seismic petroleum data reduce false positives about where to drill, and have a significant impact on the oil exploration industry. It should also offer ViaLogy opportunity to expand its sales in an adjacent market. Atascosa is the ideal partner for us."
Dean stated that if the pilot analysis proves successful the potential for QuantumRD is extensive. According to Energy Information Administration 's 2006 Annual Report, the US had over 21 billion barrels of proven oil reserves. Most of the newer discoveries are in smaller fields. However, the number of newer oilfield discoveries has declined from 1400 in 2001 to 30 by 2006. Just over 40 new reservoirs were discovered in known US fields in 2006 based on EIA released numbers.
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