Trinidad Bowled Over By MTEM Success
Rapidly-expanding oilfield technology company MTEM is to double the scope of its work with Trinidadian operating company Ten Degrees North Ltd. (TDN).
The decision by TDN, which will take their spending on the survey to over $1million, represents a significant step forward for MTEM and its electromagnetic method to map oil and gas deposits.
Its cutting edge hydrocarbon mapping technology has delivered a high quality data set that has enabled the Operator to delineate additional potential oil and gas reserves in the Tabaquite Block in the onshore Central Range fold and thrust belt.
MTEM data is already being used to determine where TDN will place its future wells, and has significantly increased the Caribbean company's potential reserves in the mature field.
Jason Robinson, VP for MTEM in North and South America, said: "The decision to double the size of the survey is based on the results and the delivery of the results to TDN within a couple of days of completion of each line.
"These results are clearly showing the oil and gas reservoir in an area where traditional seismic surveys historically could never image."
Dr Jim Lee-Young, CEO of Ten Degrees North Energy, said: "The data supplied from our initial survey by MTEM has been extremely encouraging in terms of identifying new reserves and potential new drilling locations.
"We very much look forward to receiving our next set of results from the extended survey."
Jason Robinson added: "In Trinidad, our technology has performed extremely well in a complex fold and thrust belt. These sort of geological conditions occur in many of the oil and gas producing areas of Central and South America, and there are opportunities too for companies to utilize MTEM technology in Italy, the northern Mediterranean and Eastern Europe.
The decision by TDN comes as MTEM chief executive Leon Walker embarks on a drive to secure £25million of extra investment to allow the company to expand its operations still further.
Interest in the technology and its ability to pinpoint areas for drilling is growing by the day on the back of the Trinidad success, the first offshore contract in the North Sea for operators Venture Production plc and surveys onshore including multiple surveys in India for the national oil company ONGC.
Leon Walker said: "We have moved very quickly in recent months. The company continues to mature and this survey in Trinidad is a clear indication of the business transitioning from a research led business into a fully fledged industrial and commercial operation.
"The benefits of our technology are there for all to see, and our work with TDN reinforces what we already knew. We can show clear data which makes it very obvious to our customers where their deposits of hydrocarbons are most likely to be.
"Our task now is to continue to grow and expand the company's capability and scale of operations. This re-scaling of the business will be financed through our latest equity round. With the prominence of EM and the company really taking off, we believe that the markets will respond favorably to our latest financing round."
MTEM believes its technology will radically reduce drilling risk and potentially save the oil industry billions of dollars per year. Industry experts estimate the potential market for MTEM at between £500 million and £1.5billion annually and the Edinburgh-headquartered company now has sales operations covering all the major hydrocarbon producing areas of the globe.
Electromagnetic surveys are designed to provide a measure of changes in subsurface resistivity with depth below ground. This information can be useful in locating recoverable oil and gas since hydrocarbons are more resistive to electrical current than the water typically found at similar depths.
The potential to use electromagnetic surveying has been known by industry for some time but limited in application. The advent of modern receiving instruments, computing power and analysis methods combined with techniques developed in recent years has lead to the development of Multi-Transient electromagnetic surveying applications for reservoirs both onshore and in shallow marine applications.
MTEM received funding of £7.4 million in November 2004 from a syndicate of venture capitalists made up of Stavanger-based Energy Ventures and HitecVision and Scottish Equity Partners from Glasgow.
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