Offshore Hydrocarbon Mapping Teams Up with CGGVeritas
Offshore Hydrocarbon Mapping has entered into a strategic alliance with CGGVeritas under which both companies will work together to develop the global market for CSEM and to capitalize on seismic and CSEM integration opportunities.
The strategic alliance will provide a step change to the Company's business.
CGGVeritas has also conditionally subscribed for 5,567,585 million new Ordinary Shares at a price of 240 pence per share. CGGVeritas' holding following the subscription will be equivalent to 15% of the Enlarged Share Capital.
Placing Price is a premium of is 9.3 percent above the closing middle market price of 219.5 pence per Ordinary Share on July 17, 2007; and 19.7 percent above the 30 business day average closing middle market price of 200.6 pence per Ordinary Share.
Proceeds to be applied to capital expenditure for further data acquisition crews and strategic development opportunities
Under the Joint Operating Agreements, CGGVeritas will undertake not to increase its shareholding in OHM beyond 15 percent without making a full public offer for the company, or unless an offer is made by another party.
Placing subject to Shareholder approval at the Extraordinary General Meeting to be held at the offices of KBC Peel Hunt Ltd at 10.00 a.m. on August 10, 2007.
CGGVeritas is a world leading international pure-play geophysical company delivering a wide range of technologies, services and equipment to its broad base of customers mainly throughout the global oil and gas industry. The company is listed on the Eurolist of Euronext Paris (ISIN Code FR0000120164) and the New York Stock Exchange (NYSE) (in the form of American Depositary Shares) under the ticker CGV.
Dave Pratt, Offshore Hydrocarbon Mapping's Chief Executive Officer, said:
"CGGVeritas is a giant of the geophysical industry and the strategic alliance is a defining moment in the history of the development of OHM. It marks a change from a small technology company to a company with access to global market reach and with the funds to develop the capacity to take advantage of the opportunities this will bring us."
"The proceeds from the Placing with CGGVeritas give us the resources necessary for our next phase of growth of our service business and to invest in strategic research and development opportunities."
Robert Brunck, Chairman and CEO of CGGVeritas commented:
"CGGVeritas has recognized the potential of the ElectroMagnetic (EM) technology since its early days and has been very interested by OHM's rapid technological developments and industrial track record. We believe that EM technology will continue to develop in the coming years as a recognized hydrocarbon presence confirmation tool and become a natural complement to seismic technology. We are confident that this strategic alliance will allow our two companies to strengthen our complementary activities and better serve our customers through our wide range of imaging technologies".
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