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Geospace Technologies today announced that it has acquired from PGS Americas, Inc. all the intellectual property and related assets of PGS’s OptoSeis fiber optic sensing technology business. Geospace intends to retain each of the PGS’s highly qualified employees dedicated to the OptoSeis business and will continue operating the business in Austin, Texas.
The OptoSeis® fiber optic technology has been successfully deployed by PGS in a marine permanent reservoir monitoring system in the Jubarte field located offshore Brazil and has also been demonstrated as a viable technology for large scale cabled land seismic data acquisition systems.
Terms of the transaction include an initial cash payment at closing of $1.8 million and contingent cash payments of up to an additional $23.2 million over a five-and-a-half year earn-out period. The contingent cash payments will be derived from revenues generated during the earn-out period from products and services utilizing the OptoSeis fiber optic technology.
Commenting on the acquisition, Walter R. ("Rick") Wheeler, President and Chief Executive Officer of Geospace Technologies Corporation, said, “The continued adoption of permanent reservoir monitoring (PRM) by exploration and production (E&P) companies, combined with our leading expertise in PRM systems, prompted the acquisition of the OptoSeis business. For well over a decade, successful application of Geospace’s PRM systems has provided E&P companies with a more vivid image and clearer understanding of reservoir characteristics, which has helped E&P operators reduce field risk and improve production economics throughout the lifecycle of the reservoir. The acquisition and integration of the OptoSeis® fiber optic technology strategically complements Geospace’s product catalog of advanced technology offerings. In addition to the proven effectiveness of OptoSeis® for offshore PRM, the technology also shows relevance as an improved solution for land seismic operations that require large channel count cabled systems, including its potential use for border and perimeter security. We are pleased that Geospace has taken stewardship from PGS of the continued development and commercialization of the OptoSeis® technology, which stands out as the most advanced evolution of high definition fiber optic sensing. In addition, we look forward to cooperating with PGS on future opportunities utilizing this technology where the strength and expertise of both our companies creates significant advantage and synergy.”
Rune Olav Pedersen, President and CEO of Petroleum Geo-Services ASA, the ultimate parent company of PGS, said, “As part of reorganizing and streamlining our organization, we started exploring divestiture opportunities for our fiber optic technology early 2018. We are very pleased that Geospace, a leader in engineering and manufacturing of seismic technologies will acquire the OptoSeis® fiber optic technology and personnel and continue offering this unique solution for permanent reservoir monitoring. PGS looks forward to support and complement Geospace’s offering with survey planning, imaging and acquisition services as and when required by their customers. We believe that this transaction will provide the best solution for the customer base, as we bring the best of engineering and manufacturing together with our geophysical services offering.”
About Geospace Technologies
Geospace Technologies Corporation principally designs and manufactures seismic instruments and equipment. The company primarily markets its seismic products to the oil and gas industry to locate, characterize and monitor hydrocarbon producing reservoirs. The company also markets its seismic products to other industries for vibration monitoring, border and perimeter security and various geotechnical applications. The company designs and manufactures other products of a non-seismic nature, including water meter products, imaging equipment and offshore cables.
About PGS
PGS Americas, Inc. is a wholly owned subsidiary of the ultimate parent company Petroleum Geo-Services ASA. Petroleum Geo-Services ASA and its subsidiaries is a focused marine geophysical company that provides a broad range of seismic and reservoir services, including acquisition, imaging, interpretation, and field evaluation. The Company’s MultiClient data library is among the largest in the seismic industry, with modern 3D coverage in all significant offshore hydrocarbon provinces of the world. The Company operates on a worldwide basis with headquarters in Oslo, Norway and its share is listed on the Oslo stock exchange (OSE: PGS).
