I/O Announces First FireFly(TM) Launch Partner

Input/Output, Inc. and BP America Production Company will deploy and jointly test an innovative ten thousand station wireless seismic acquisition system to aid in expansion of the Wamsutter gas field in Wyoming. This is the first commercial application of the I/O FireFly land imaging system.

Bob Button, Wamsutter Performance Unit Leader at BP, commented on the agreement, "The Wamsutter field is a strategic production asset for BP. We recently announced a multi-year, $2.2 billion expansion of our field development efforts and this test of the FireFly system will be conducted as part of the associated two-year $120 million technology field trial program. We are excited about the opportunity to test this novel seismic acquisition technology because it potentially provides a way for us to significantly improve resolution and characterization of target reservoirs while minimizing impact on the environment and mitigating risks associated with seismic field operations."

Announced at the SEG (Society of Exploration Geophysicists) annual meeting in November 2005, FireFly is the latest full-wave recording platform in the I/O portfolio. FireFly combines proven wireless communication, data storage, and power technologies from other industries in a seismic recording system that operates without cables. With its cableless architecture, FireFly delivers dramatic improvements in system weight, operational productivity, and health, safety, and environmental (HSE) performance.

Jim Hollis, VP of New Ventures - FireFly at I/O, commented, "Accelerating the adoption of new technologies in the E&P sector requires that all parties embrace new commercial models. BP has a long track record as a technical and commercial pioneer, especially in the seismic area. Their deployment of a permanent full-wave seismic monitoring system at Valhall and their support of node-based recording technology for the deepwater are just two examples of their leadership in applying next-generation seismic technologies. We're delighted to have them on board as the first oil & gas company launch partner for FireFly."

Over the next several months, BP will be finalizing the permitting process such that the first acquisition using FireFly can begin during the fourth quarter of 2006. In addition, BP and I/O will be collaborating to secure the participation of other oil & gas companies and seismic acquisition contractors in testing the FireFly system in complex imaging environments around the world.