Magseis in tech deal with Shell. Bags new seismic contract

Norwegian seabed seismic company Magseis has entered into an agreement with Shell for the further joint development of a system to deploy Magseis’ MASS technology in ultra-deep water with great precision.

According to Magseis, the agreement regulates the further work leading up to a full-scale pilot test which is planned for completion early Q1 2016 and through to the commercial deployment of the system which is planned for early 2017.

The project will be jointly financed by Shell and Magseis with a significant contribution from Innovation Norway, the company said in a filing to the Oslo Exchange on Friday.

Magseis CEO Ivar Gimse said: “The agreement marks an important milestone in our work to capitalize on the unique characteristics of our sensors (small size, low cost, depth rated to 3000 metres) in order to supply highly efficient ocean bottom seismic (“OBS”) acquisition in ultra-deep water with the positioning accuracy required for 4D work.”

“This system will be an important add-on to our product  portfolio and, based on the feedback from clients, we believe it holds great commercial potential.” 

New contract and 3Q results

In a separate statement on Friday, Magseis said it won a contract for a new survey for seabed seismic acquisition outside the North Sea. The Oslo-based company will mobilize the crew directly from the recently completed Barents Sea multi-client survey.

“This marks an important first step towards building an international footprint and continues to expand our client list,” the company said, without revealing the identity of the client.

The contract is for 4.5 months including steaming to the prospect and will start during the fourth quarter of 2015. Magseis will use its proprietary MASS system and the Artemis Athene vessel.

The company today also revealed its third quarter 2015 results. Magseis recorded revenues of $12.8 million, down from $14.6 million a year ago, mainly due to lower rates. Magseis also narrowed its net loss when compared to the third quarter of 2014. Namely, for the third quarter of 2015, net loss was $332.000, an improvement from $1.96 million loss in 3q 2014.

Offshore Energy Today staff