GEOSCIENCES

Gene Kliewer • Houston

Wavefield, TGS merger remains in limbo

As of the last report before press time, the on again/off again Wavefield Inseis ASA merger with TGS-NOPEC Geophysical Co. ASA is both on again and off again. According to Wavefield, TGS reported a “revenue shortfall” early in 4Q 2007. Subsequently, Wavefield requested that an independent party review and verify that TGS “did not withhold information” from Wavefield, and invited TGS to propose “substantive improvement” in the terms of the merger.

TGS demurred and did not supply the requested review nor improved merger terms. Whereupon, Wavefield shareholders voted for its board of directors to “prevent completion of the merger and seek a termination of the merger either through an amicable agreement or an arbitration process according to the merger plan.”

Just prior to that resolution, TGS-NOPEC had filed for arbitration from a Norwegian panel to solve the dispute. Following that Wavefield vote, TGS said it was continuing with the previously agreed upon arbitration, intended to honor the merger plan, and that the merger could not be cancelled without TGS consent.

“Given our legal position, we will not be frustrated by Wavefield’s efforts to extract extra value from TGS shareholders,” said Claus Kampmann, TGS chairman. “To be clear, TGS will not ask its shareholders to compensate Wavefield for its negligence in understanding the risks it and its shareholders were undertaking when it signed the merger plan. TGS’ earnings power is greater today than ever before.”

The merger attempt dates to mid-2007 when the two company boards agreed to merge. According to the agreement at the time, Wavefield Inseis shareholders would get 0.505 shares of TGS for each Wavefield share held. The original time table called for completion of the combination by the end of November 2007.

That the merger is no longer considered friendly should come as no surprise to observers.

Fugro adds another seismic vessel

Fugro has contracted BMV (Bergen Yards) to build a seismic vessel. The contract calls for a 108-m (354-ft) long, 28-m (92-ft) wide vessel with 16 tow points and the latest in seismic technology. Delivery is scheduled for August 2010 and Fugro says the vessel will operate worldwide. Fugro still has an option for another vessel from the Bergen Yards for delivery in 2011. Whether it will be seismic or offshore support has not been revealed.

Pemex goes EMGS

Petroleos Mexicanos has contracted EMGS for $10 million to determine the hydrocarbon potential of deepwater prospects in the Mexican sector of the Gulf of Mexico. Preparations were to be done by the end of 2007 with the survey to start in 1Q 2008. Processing and interpretation are scheduled to be done by EMGS in Houston.

“Pemex is a new client for EMGS and we are enthusiastic about the market growth potential in this region,” comments CEO Terje Eidesmo. “EMGS considers this as an important acceptance of our seabed logging technology.

“Being one of the largest national oil companies in the world and controlling one of the most substantial exploration areas in the world, Pemex will be an important client going forward.”

Schlumberger ties up MetaCarta

Schlumberger has acquired exclusive distribution rights to the oil and gas sector for the MetaCarta map-based geographic information search technologies. MetaCarta combines map-driven geographic search, referencing, temporal filtering, and data visualization of both structured and unstructured content. Along with the exclusive distribution, Schlumberger also will take all the existing oil and gas contracts for MetaCarta.

“With the increasing amount of information held in unstructured form, such as documents, presentations, and Web content, MetaCarta’s geographically specific access to unstructured content brings new power to petrotechnical professionals,” says Olivier Le Peuch, president, Schlumberger Information Solutions. “In combination with our geoscience and engineering information management solutions, now petrotechnical professionals will be able to rapidly incorporate all available information that is relevant to their prospect or field.”

Chevron, Paradigm join forces

Chevron Energy Technology Co. and Paradigm have agreed to integrate Paradigm’s interpretation and reservoir modeling software into Chevron’s proprietary E&P system.

As part of the multi-year, multi-million dollar agreement, Paradigm also will provide further technology development to support specific exploration and production goals of Chevron.

“We selected Paradigm’s cutting-edge interpretation and modeling framework solution for its strength in providing advanced interpretation and modeling workflows that will enable us to shorten our cycle-time and reduce our exploration risk,” says Peter Breunig, CIO of Chevron ETC.

Chevron has also reached a multi-year agreement with Paradigm to extend its long-standing use of Paradigm’s Geolog software, the industry reference for petrophysical data interpretation and analysis.