SeaBird Exploration PLC (‘SeaBird” or “SBX”), the market leader in deepwater node seismic, announces an agreement for a strategic cooperation to further develop Ocean Bottom Node (“OBN”) operations together with Petroleum Geo-Services ASA (PGS).
This agreement enables the two companies to provide a complete seismic solution in deep water areas, in areas with complex geology, and in areas with heavy infrastructure on the sea bottom. We expect this agreement to further strengthen each of the two companies leading positions in the reservoir monitoring market, which has been, and is expected to represent the fastest growing segment of the seismic market.
The use of OBN for 3D, 4C and 4D seismic to map complex reservoirs, will be particularly attractive combined with PGS’ broadband GeoStreamer® technology, and opens up for extending the application of the SeaBird OBN technology.
Under the terms of the agreement, PGS will gain exclusive rights to offer SeaBird’s autonomous seabed recording technology at market terms in Brazil in solutions combining OBN and streamers. SeaBird will gain access to PGS’ extensive worldwide marketing network and geophysical expertise and the parties have expressed intentions to explore further areas of cooperation, such as data processing and use of GeoStreamer® on SeaBird’s 2D vessels.
In relation to the agreement, SeaBird will issue a five year convertible loan of NOK 240 million (USD $41,6 million) directed towards PGS. The loan will have an annual interest of 9 % that can be paid in cash or in kind. The Loan can at any time be converted into ordinary shares at a conversion price of 3.35 NOK per share until the maturity date.
The cooperation agreement and the convertible loan are subject to approval by the shareholders in SeaBird. An extraordinary general meeting will be held as soon as possible, expected mid February 2011.
Tim Isden, SeaBird’s chief executive officer, commented:
“We are delighted to team up with PGS’ extensive marine geophysical expertise and global presence. The combination of SeaBird’s industry-leading OBN technology and PGS’ strong position in the seismic market will further strengthen the development of our OBN division, and will give SeaBird a better foundation for expanding this business segment and increase efficiency to our clients. Also, we expect that the cooperation with PGS will enhance the utilization of our 2D and Source vessels when opportunities arise.”
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Source:Seabird , January 27, 2011;