OFG buys CSEM capability from PGS

PGS and Ocean Floor Geophysics (OFG) have signed an agreement under which OFG has acquired the exclusive rights to use the hardware, software and intellectual property associated with the PGS towed streamer CSEM system.

Oslo-listed PGS receives shares in Canada-based OFG as settlement for the transaction.

The towed-streamer CSEM technology developed by PGS allows for the acquisition of high-quality marine CSEM data in a fast and efficient manner.

The system complements existing CSEM technology to permit a broad operating envelope.

“Over the last few months we polled many of the oil and gas companies that are experienced users of CSEM and were pleased at the positive market response we received in relation to re-activation of the PGS towed streamer CSEM system,” says Matthew Kowalczyk, CEO of OFG.

Rob Adams, EVP Operations of PGS, stated:

“PGS towed-streamer CSEM technology takes advantage of the productivity of the towed streamer method and presents a uniquely effective technology compared to any other EM acquisition solutions.

“We will provide OFG with support to capitalize on our experience and knowledge in the geophysical market.”

“The PGS towed streamer CSEM system is capable of rapid acquisition of high-quality marine CSEM and is a perfect complement to existing seismic data when added confidence is needed to qualify acquisition, drilling or relinquishment decisions.

“In addition to CSEM survey modeling and feasibility studies, OFG Multiphysics offers processing, interpretation and multiphysics seismic integration.”

To remind, PGS recently rejected an offer from TGS-NOPEC Geophysical to acquire its multi-client data library.

Specifically, under the TGS offer, PGS would, upon consummation of the sale, receive a cash consideration of USD 600 million.

Furthermore, TGS proposed that the parties enter into a post-closing collaboration agreement for future PGS multi-client projects, which also would include certain preferential rights for PGS to offer its 3D fleet for future TGS data acquisition.

However, having consulted with its financial and legal advisers, PGS has concluded that the proposal is not in the best interests of the company and its stakeholders.

PGS board of directors described the the timing of the proposal as opportunistic, given the current market backdrop and macro-economic environment.

The company has seen its Q2 2020 loss widened, as revenues fell more than 50 percent.

It reported quarterly loss of $111.4 million, or 29 cents per share on revenues of $90 million.