International Oil and Gas Technology Limited (LSE:OGT), an authorised closed-ended investment company incorporated in Guernsey, is pleased to announce that it has authorised a further investment of up to US$2 million in SR2020 Inc. ("SR2020"). This further investment will be effected in tranches of new equity against SR2020's capital and operational needs over the coming months.
SR2020 is a seismic survey acquisition and processing company with differentiated and proprietary technology and services and has premises in Brea, California and Houston, Texas. SR2020 believes that the application of its technologies and processes makes the resultant seismic surveys more useful and valuable to oil and gas operators. SR2020's progressive three-dimensional vertical seismic profiling ("3D VSP") service enables the company to offer high-end seismic service to operators on a more cost-effective basis and in a way that maximises the effect on the value of the oil or gas asset. In addition, SR2020 continues to develop microseismic services, including permanent array monitoring, which are intended to materially improve the economic and environmental impact of shale gas or oil fracking operations.
Following an additional investment by OGT during 2011 which enabled SR2020 to increase its sales and marketing capabilities, SR2020 has experienced a significant increase in demand for its services. As a result, OGT has decided to help SR2020 expand both its acquisition and processing capacities to enable it to meet the increased level of demand. The principal intended uses of the investment will be to purchase and fabricate additional acquisition equipment, double the size of the processing cluster and to increase the size of the Houston facility. In addition, SR2020 intends to progressively hire new acquisition and processing personnel.
Bill Bartling, CEO of SR2020 Inc. said: "We believe that SR2020's proprietary technology and highly experienced personnel are capable of delivering both progressive 3D seismic and microseismic services of a higher quality than anything else available in the industry. Increasingly our customers appreciate the economic benefit of using our services, through increased production and reduced costs. In addition our progressive 3D seismic survey methodology enables operators to progressively utilise seismic to develop a field rather than incurring the upfront capital expenditure of commissioning a survey of the entire field before commencing production. The effect of this on an operator's cashflows and the net present value of its asset can be significant."
David Sefton of Linton Capital, OGT's Investment Manager, said: "SR2020 is an excellent company with proprietary technology and services which directly address key problems that operators face in developing their assets. The challenge last year was to enable SR2020 effectively to convey its capabilities to the market. The challenge this year is to ensure it has the resources to meet the resultant increased demand. We have high confidence that with this further investment and the active support and involvement of OGT, the management team can effect a transformational year for SR2020."
Christopher Hill, Chairman of OGT, said "We are pleased with the positive results from the investment made late last year and view the further injection of funds as essential to capitalise on the increased opportunities available to SR2020 and thereby increase the value of the Company's investment."
For further information:
|Linton Capital LLP|
|David Sefton||Tel: +44 (0) 20 3384 8090|
|Nathan Brown||Tel: +44 (0) 20 7260 1426|
Notes to editors:
International Oil and Gas Technology Limited
International Oil and Gas Technology Limited ("OGT") is an authorised closed-ended investment company incorporated in Guernsey to provide expansion capital to companies which own and/or are developing proven proprietary technology which may have a potentially significant effect on the oil and gas industry. OGT was admitted to the Official List of the UK Listing Authority and to trading on the London Stock Exchange on 7 January 2008. Its stock market EPIC is OGT.L. Further information can be found at www.international-ogt.com.