Carbon Transition and repeat customer sign $2.5 million seismic data licensing contract

Carbon Transition has entered into a new $2.5 million multi-client seismic data licensing contract with an existing customer for the Utsira multi-client survey in Norway.

Under the contract, the customer, whose name has not been disclosed, will license Carbon Transition’s Utsira multi-client survey.

According to the company, the agreement includes significant additional uplift revenues relating to set milestones and the uplifts will be recognized as late sales revenue when the milestones occur.

Carbon Transition also recently announced that it had entered into an agreement with a major oil company under its subsidiary Axxis Multi Client for significant additional prefunding for the Utsira OBN reprocessing project.

The reprocessed Utsira data set is set to expand the company’s existing offerings and is expected to add an estimated NOK 0.25 – 0.30 per share in additional value to the multi-client library. It will be an additional product only available to customers who have already acquired the underlying data.

“This type of continuous geophysical work and reprocessing is what made Lundin able to identify the Johan Sverdrup and Edvard Grieg reservoirs,” said Former Lundin Norway CEO and board member of Carbon Transition, Torstein Sannes.

“It is reasonable to expect the Utsira area to contain considerable undiscovered resources, and the addition of new and improved advanced geophysical processing is a critical step in optimizing oil recovery in the area.”

Carbon Transition believes that the significant increase in oil and gas prices and the growing focus on energy security has solidified the expected value of its multi-client library.

Earlier this month, Axxis Multi Client entered into an agreement with CGG to reprocess the Utsira ocean bottom node (OBN) seismic survey in the Norwegian North Sea.