(Houston)-OYO Geospace has entered into a $7 million sales contract with the Bureau of Geophysical Prospecting (BGP) for a retrievable seabed data acquisition system. The 4,000 channel, four-component data acquisition system marks the first purchase by BGP for an OYO Geospace product.
The company will deliver the system in 3Q 2006, at which point they will recognize $6.3 million of the contract revenues. After a specified time period of successful operation, OYO Geospace expects to receive and recognize the remaining $0.7 million of contract revenue.
This sales contract is the third reservoir characterization system scheduled for delivery by the company in fiscal year 2006. OYO Geospace shipped the first of its new slimhole seismic data acquisition systems for borehole applications in October. In December, the company received an award for a $7.6 million contract to deliver a permanent seabed system to BP in the North Sea.
The purchase will help BGP achieve its goals of an expanded seismic fleet. Mr. Wang Tiejun, President of BGP, said, "BGP is building a seismic fleet consisting of two deep sea ocean bottom cable (OBC) seismic vessels in China. This OBC fleet will be equipped with OYO Geospace's four-component armored-cable seabed seismic data acquisition system. With these systems, BGP will be able to provide advanced high-definition reservoir seismic services to oil companies worldwide."