Volga Resources agreed to acquire, for an undisclosed sum, a stake of 25% in the share capital of Geotech Oil Services Holding Limited, the leading onshore seismic provider in Russia and the CIS. The stake is being bought directly from Black River Asset Management, Farallon Capital Management, Geotech's senior management and also through the subscription to a new share issue.
Completion is expected within the first half of this year. Thereafter Geotech will have a strong shareholder base consisting of Farallon Capital Management, Pinebridge Russia Century Partners, L.P. (formerly AIG Russia Century Fund) and Volga Resources and management, who are committed to support the development of the Company as a market leader in Russia and the CIS.
Geotech is one of the largest onshore seismic service providers in the world, with its activities covering all types of complex seismic data acquisition. Geotech employs over 12,000 people, including highly qualified specialists in their various fields of expertise. The Company develops certain proprietary processes and technologies and manufactures globally recognised specialised equipment. Geotech is also active in exploration and development drilling and intends to expand this service offering further in the future.
Commenting on the acquisition, Chlodwig Reuter, Chairman of Volga Resources said, "This acquisition builds on our existing presence within the oil and gas sector and on our longstanding experience of the industry and its supply chain. Geotech has a long history in Russia and the CIS of being a well managed participant in the field of seismic data. We are excited about its growth and expansion potential."
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