RXT Signs Exclusive Deal for Proprietary EM Tech

Reservoir Exploration Technology ASA (RXT) has signed an agreement with KMS Technologies for exclusive usage of their electromagnetic (EM) technology for cable-based seafloor applications offshore.

Recently, controlled source EM (CSEM) has become a proven technology. KMS uses their patented transient controlled source EM (tCSEMtm) technology, which differs from that normally available today, to offer the potential for better data quality and a wider range of applications including acquisition in shallow water, presently a problem area for existing CSEM technology. "We are very excited about the possibilities this alliance brings in commercializing what we believe will be the next generation of marine EM technology, which we expect will result in a step- change improvement in data quality leading to better discovery and recovery rates," said KMS President Kurt Strack.

"We see significant synergies between KMS' tCSEMtm cable-based technology and our own ocean bottom multi-component acquisition technology. This synergy allows the potential to acquire KMS tCSEMtm with our seismic crews, eliminating the need of a dedicated EM crew. The result will be improved quality EM data in addition to reducing overall acquisition cost for our oil company clients," said RXT CEO Michael Scott.

EM technology, unlike traditional seismic, can distinguish between hydrocarbons (oil/gas) and water. Successful application of EM reduces the number of dry wells, thereby reducing the oil companies' exploration cost. The technology is complementary to seismic, not competitive. Using EM in conjunction with traditional seismic can significantly increase exploration and field development success rates.

Reservoir Exploration Technology ASA (RXT) is a marine geophysical company specializing in multi- component seismic sea-floor acquisition. Multi component seismic solves several imaging challenges that cannot be resolved with towed streamer seismic. This results in improved oil recovery from existing fields as well as better quality data for exploration. Seafloor cables are also the solution where towed streamers are impractical due to, for example, a high density of platforms and/or shallow water. The company has offices in Oslo, London and Houston.

KMS Technologies, a division of Houston-based KJT Enterprises Inc., focuses on advanced electromagnetic methods for the oil industry for improved hydrocarbon discovery and recovery rates. KMS staff includes world-recognized experts in the geosciences who have authored numerous publications/inventions and technologies and received several major awards for their technical work. Over the past 6 years, KMS has taken EM technologies in borehole, marine and permanent installations from patents to prototype field tests and is presently transitioning them to services.