Rosgeo: Completes survey at potential hydrocarbon site Rakitovsky site in the Saratov region



Rosgeo: Completes survey at potential hydrocarbon site Rakitovsky site in the Saratov region

JSC Volgogradneftegeofizika (the enterprise is part of the ROSGEO state holding) has completed field work at the Rakitovsky license block. The site, which is prospective for oil and gas, is located in Saratovsky, Lysogorsky, Tatishchevsky and Atkarsky districts of the Saratov Region.

The enterprise has performed 520.4 linear km of 2D seismic survey at the site. The research was carried out from February 2017 on the order of the company-subsoil user LLC Standart. The corresponding contract was signed in November 2016.

Currently, an interpretation of the obtained field data is performed. The results will allow to clarify the geological structure of the sites along the Devonian and Carboniferous series, to identify new oil and gas prospects and prepare them for deep drilling.

The report on the completed works will be submitted to the customer in the 1st quarter of 2018.

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PGS: Q4-17 and FY-17 Results and CMD Presentation





PGS: Q4-17 and FY-17 Results and CMD Presentation

Highlights 2017

  • Revenues of $838.8 million, compared to $764.3 million in 2016
  • EBITDA of $374.1 million, compared to $313.4 million in 2016
  • EBIT, excluding impairments and other charges, a loss of $147.1 million, compared to a loss of $137.5 million in 2016
  • Net loss of $523.4 million, impacted by impairments and other charges of $177.0 million related primarily to reorganization and ceasing activities that do not currently generate cash
  • MultiClient pre-funding revenues of $299.4 million with a corresponding pre-funding level of 140%, compared to $242.3 million and 121% in 2016
  • MultiClient late sales of $235.0 million, compared to $226.8 million in 2016
  • Cash flow from operations of $281.8 million, compared to $320.9 million in 2016
  • Liquidity reserve of $257.3 million at year-end 2017, compared to $271.7 million in 2016
  • Ramform Hyperion delivered, the last new-build in a series of four Ramform Titan-class vessels
  • Rune Olav Pedersen appointed new President & CEO
  • Settled all ongoing disputes related to ISS Service tax for licensing of MultiClient data with the tax authorities of Rio de Janeiro
  • Implemented a centralized, simplified and streamlined organization to reduce annual gross cash cost by more than $100 million


“We experienced a strong finish to our MultiClient sales from all regions in Q4, making the full year MultiClient performance an improvement from 2016. Our capitalized MultiClient investments ended at $213.4 million. We achieved a sales-to-investment ratio of close to 2.5 times, continuing on the positive trend from 2016 when the ratio for the year was 2.3 times.

The marine contract market was challenging in 2017 with significant seasonal swings. To address the continued difficult market fundamentals we implemented a centralized, simplified and streamlined organization in Q4, combined with improved flexibility for vessel and imaging capacity.

The reorganization has been executed according to plan and we commenced operating in the new organization from 1 January 2018. We are confident that we will reduce the full year gross cash cost by more than $100 million in 2018, compared to 2017, which together with lower capital expenditure should position us well to achieve our target of delivering positive cash flow after debt service this year.”

Rune Olav Pedersen,
President and Chief Executive Officer

Petroleum Geo-Services ASA (“PGS” or the “Company”) expects the higher oil price, improved cash flow among clients and unsustainable reserve replacement ratios to benefit the marine 3D seismic market fundamentals going forward. While the Company expects the market sentiment to improve during 2018, there is a risk that a market recovery will take some time. For this reason the Company is planning its cost and capital expenditures for 2018 targeting a positive cash flow post debt service in a flat market compared to 2017.

Based on the current operational projections and with reference to disclosed risk factors, PGS expects full year 2018 gross cash cost below $575 million.

2018 MultiClient cash investments are expected to be approximately $250 million.

More than 50% of the 2018 active 3D vessel time is expected to be allocated to MultiClient acquisition.

Capital expenditure for 2018 is expected to be approximately $50 million.

The order book totaled $135 million at December 31, 2017 (including $101 million relating to MultiClient), compared to $167 million at September 30, 2017 and $215 million at December 31, 2016. The Company has seen increased order intake in January and expects to be able to book and operate eight 3D vessels from Q2 2018 in accordance with its base 3D vessel operation plan.


Key Financial Figures
(In USD millions, except per share data)
 Quarter ended
December 31,
 Year ended
December 31,
 Year ended
December 31,
 2017 2016 2017 2016
Revenues 235.9 154.1 838.8 764.3
EBITDA 122.8 53.1 374.1 313.3
EBIT ex. impairment and other charges, net (24.5) (65.5) (147.1) (137.5)
EBIT as reported (159.2) (92.4) (383.6) (180.3)
Income (loss) before income tax expense (191.5) (118.7) (468.1) (262.8)
Net income (loss) to equity holders (194.8) (156.1) (523.4) (293.9)
Basic earnings per share ($ per share) (0.58) (0.61) (1.55) (1.21)
Net cash provided by operating activities 84.3 64.7 281.8 320.9
Cash investment in MultiClient library 54.0 47.8 213.4 201.0
Capital expenditures (whether paid or not) 23.4 28.7 154.5 208.6
Total assets 2,482.8 2,817.0 2,482.8 2,817.0
Cash and cash equivalents 47.3 61.7 47.3 61.7
Net interest bearing debt 1,139.4 1,029.7 1,139.4 1,029.7

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Woodside: Safety regulator gives nod for offshore drilling plan




Woodside: Safety regulator gives nod for offshore drilling plan

Australia’s oil and gas regulator NOPSEMA has accepted Woodside Energy’s environment plan for the operations at WA‐404‐P block offshore Western Australia.

Woodside plans to drill up to three exploration wells and up to three appraisal wells including the Ferrand exploration well, using a semi-submersible drilling rig. A MODU with similar specifications to the Ocean Apex or Atwood Osprey will be contracted for the Petroleum Activities Program.

The company also plans to re-enter previously drilled and suspended Noblige‐1 for well plug and abandonment. The MODU will be positioned at the Noblige-1 location and the BOP will be deployed onto the wellhead. The abandonment of Noblige-1 may include drilling through the existing cement suspension plug to gain access to the Noblige-1 wellbore to allow pumping of cement abandonment plugs.

Drilled cement cuttings (8 m3 total volume) would be discharged to sea bed in the same manner as conventional cuttings. The well will then be abandoned and BOP will be removed.

The proposed activities will be taking place approximately 260 km north‐west of Dampier, Western Australia. The closest landfall to the permit area is the Montebello Islands which is approximately 138 km south at the closest point.

The Australian oil and gas company expects to start working in the offshore block during the first quarter of 2018, with the drilling of the Ferrand-1 well.

Drilling of the Ferrand-1 and other exploration wells is expected to take approximately 90-120 days per well (including mobilization, demobilization and contingency) to complete.

Similarly, appraisal wells are expected to take approximately 90-120 days, excluding well testing activities. Well testing is expected to take approximately 25 days. The re-entry plug and abandonment of Noblige-1 is expected to take approximately 30 days.


Geospace Technologies: Q1-18 Results and Conference Schedule




Geospace Technologies: Q1-18 Results and Conference Schedule

Geospace Technologies has announced that it will release first quarter 2018 financial results on Tuesday, February 6, 2017 after the market closes. In conjunction with the release, Geospace has scheduled a conference call for Wednesday, February 7, 2018 at 10:00 a.m. Eastern Time (9:00 a.m. Central).

What: Geospace Technologies First Quarter 2018 Conference Call
When: Wednesday, February 7, 2018 at 10:00 a.m. Eastern Time (9:00 a.m. Central)

Live via phone – U.S. participants can dial toll free (866) 518-6930. International participants can dial (203) 518-9797. Please reference the Geospace Technologies conference ID: GEOSQ118 prior to the start of the conference call.

For those who cannot listen to the live call, a replay will be available for approximately 60 days and may be accessed through the Investor Relations tab of our website:

Geospace Technologies Corporation designs and manufactures instruments and equipment used by the oil and gas industry to acquire seismic data in order to locate, characterize and monitor hydrocarbon producing reservoirs. The company also designs and manufactures non-seismic products, including industrial products, offshore cables and imaging equipment.


Rosgeo: Awarded 3D survey in Kara Sea for Gazprom Geologorazvedka



Rosgeo: Awarded 3D survey in Kara Sea for Gazprom Geologorazvedka

JSC ROSGEO has won the open request for proposals for the selection of a contractor for 3D field seismic surveys in the Leningradsky and Nyarmeysky license blocks of the Kara Sea for the needs of LLC Gazprom Geologorazvedka. The relevant tender evaluation report has been posted on the website of the electronic trading platform. The tender commission of PJSC Gazprom has recognized the application of JSC ROSGEO as the best.

The main objective of the work is to obtain high-quality seismic data in the volume of 1,650 sq. km on the full offset area within the license blocks. The surveys will provide the study of the geological structure of the area of work on the Cretaceous and Middle Jurassic deposits, with which the main part of the oil and gas potential is associated.

The scientific-research vessel Akademik Primakov will perform the work. The vessel, acquired by the holding company in 2017, tows up to 16 seismic streamers. The scientific-research vessel Akademik Primakov has a high sea endurance and is able to operate in remote water areas. A modern laboratory and a computer complex for express processing of primary geophysical data are on board the vessel. According to the results of the field season of 2017, the scientific-research vessel Akademik Primakov showed a productivity 15% higher than that of the main market members, and also high quality of the geophysical data obtained.


SEG: Wide Azimuth Data: Does It Really Pay Back? – Workshop




SEG: Wide Azimuth Data: Does It Really Pay Back?

Workshop by Paradigm
February 06 – 08, 2018
Muscat, Oman

Paradigm is proud to announce that a paper co-authored by Kashif Shaukat, Geophysics Technical Advisor, and Richard James Leaver, Senior Geophysicist, has been accepted to the SEG Workshop: Wide Azimuth Data: Does It Really Pay Back?, to be held in Muscat, Oman from February 6-8, 2018.


The paper, “Improved Imaging for Prospect Definition on Conventional and Full/Wide-Azimuth Data“, includes case studies that use the wavefield separation approach to deliver significant enhancements in structural resolution in different geological settings.


CGG: Geosoftware donates Jason characterisation software to University of Oslo Geoscience Department




CGG: Geosoftware donates Jason characterisation software to University of Oslo Geoscience Department

CGG GeoSoftware has donated its Jason reservoir characterization software suite to the University of Oslo (UiO). Complementing an existing donation of GeoSoftware’s HampsonRussell software, UiO’s Department of Geosciences will now benefit from a more complete seismic reservoir characterization package to enhance scientific research and expand the theoretical and practical knowledge of its students in quantitative reservoir characterization and inversion techniques.

As Norway’s oldest institution for research and higher education UiO contributes to innovation directly through commercialization of research findings, and through cooperation with business partners and the public sector. Following a merger between its Geology, Physical Geography and Geophysics departments in 2003, the Department of Geosciences is the widest-ranging earth sciences department in Norway, offering a broad spectrum of disciplines from deep mantle processes to atmospheric sciences.

Dr. Nazmul Haque Mondol, Associate Professor, Petroleum Geology and Geophysics, said: “Having seen the extensive and integrated range of solutions the Jason software package can offer, we wanted our students to have access to such tools by incorporating them in our teaching and research program. Now students can use industry-leading technology like Jason for their learning and research and also become familiar with the software they are likely to use when they enter the workplace.”

Kamal al-Yahya, Senior Vice President, GeoSoftware, CGG, said: “Through our University Donation Program, CGG GeoSoftware is committed to supporting the technological education of the next generation of geoscientists. Given that UiO offers the broadest research-based geoscience advanced learning environment in Norway, it is a privilege to develop close ties with students at the Department of Geosciences to help them understand how Jason’s innovative reservoir characterization techniques can be successfully applied to the challenges of real-world scenarios, particularly those looking to pursue a career in geoscience.”

CGG GeoSoftware has been donating its software for research and training purposes since 1986 and over 130 universities and colleges now participate worldwide.


Polarcus: Notice of Extraordinary General Meeting




Polarcus: Notice of Extraordinary General Meeting

Reference is made to the stock exchange notice published on 26 January 2018 in which Polarcus Limited (“Polarcus” or the “Company”) (OSE: PLCS) announced the successful allocation of subscription for new shares subject to the satisfaction of certain conditions. Issue of these shares requires an increase in the Company’s authorised share capital.

In this connection, notice is hereby given of an Extraordinary General Meeting of Polarcus to be held on 15 February 2018 at 10:00 (Dubai time) at the offices of Polarcus DMCC, Almas Tower, Level 32, Jumeirah Lakes Towers, Dubai, United Arab Emirates.

Please find the Notice and shareholder proxy attached. Attendance slips and shareholder proxies should be returned to the company secretary in accordance with the instructions set out in the Notice.


OGA: Excellent response to 2017 UKCS Stewardship Request, Activity Section 97% complete



OGA: Excellent response to 2017 UKCS Stewardship Request, Activity Section 97% complete

On 1 November 2017, the OGA launched the 2017 UKCS Stewardship Survey (the Survey) incorporating feedback from Operators and Licensees. Submission of the Activity sections of the Survey was requested by 19 January 2018, with the remaining sections to be submitted by 28 February 2018.

The data provided in the Survey is used by the OGA to create a single source of current, aligned and robust data covering the whole asset life cycle across the UKCS. These data underpin all aspects of the OGA’s functions and serves to facilitate a better understanding of issues facing the industry and opportunities that can be exploited to contribute to maximising economic recovery of UK petroleum (MERUK). The OGA also uses the data submitted to generate reports which are shared with industry throughout the year.

Gunther Newcombe, the OGA’s Operations Director said ‘I am very pleased to note that submission of the Activity sections by the deadline exceeded 97%, which is a significant improvement compared with last year, and I would like to thank all those involved so far in the collation, QC and submission process.’

The OGA would like to encourage Operators and Licensees to complete the remaining parts of the Survey at the earliest opportunity ahead of the end February deadline.

In late 1Q 2018, we will be undertaking a short feedback session to gauge the industry response to this year’s Survey and how we can continue to improve.


OGA: New leaders appointed to MER UK Task Force groups



OGA: New leaders appointed to MER UK Task Force groups

As the first MER UK Forum in 2018 gets underway in Aberdeen today, the Oil and Gas Authority (OGA) is pleased to announce Task Force chairperson appointments, who will continue to drive change to build a globally competitive UK oil and gas industry:

Bill Dunnett, managing director of Repsol Sinopec, takes up the position as chairman of the Technology Leadership Board, taking over from Paul White, managing director of Baker Hughes GE.


Nick Terrell, manging director of Azinor Catalyst, becomes the new chairman of the Exploration Task Force, succeeding Phil Kirk, CEO at Chrysoar.



Jon Graham, managing director and vice president of Apache North Sea, will chair the Asset Stewardship Task Force, superseding Ray Riddoch, managing director of Nexen.



The MER UK Forum brings together government, industry and the OGA with the objective of maximising the economic recovery of the UK’s resources (MER UK). The Forum is pleased to welcome the newly-appointed Energy and Clean Growth Minister, Claire Perry to the first meeting of 2018.

As part of the Forum, the new chairpersons sit on the MER UK Steering Group which oversees six task forces which work on the following priority areas – technology, exploration, asset stewardship, decommissioning, efficiency and supply chain and exports.

Mr Dunnett commented on his appointment: “I am delighted to chair the Technology Leadership Board and look forward to working closely with the MER UK Steering Group to create a differentiator for the North Sea industry and to address some long-standing technological opportunities.”

Mr Graham said: “I welcome the opportunity to contribute to the work of the Asset Stewardship Task Force which has made a positive difference in supporting the Steering Group in the journey towards achieving MER in the UKCS”.

Mr Terrell added: “As the industry starts to recover from the recent downturn, the continued revitalisation of UK exploration is fundamental to the longevity of our world class basin. I look forward to working with the MER UK Steering Group and all Task Force members to help drive UK exploration activity forward and attract the globally mobile capital that it deserves.”

Chief Executive of the Oil and Gas Authority, Andy Samuel, and co-chair of the MER UK Forum and MER UK Steering Group, welcomed the new members to the first steering group meeting of 2018, held on January 25, 2018:

“The industry has accomplished many positive changes through the recent difficult times and we have been very fortunate to have the support of talented and experienced leaders in achieving this progress. I would like to take this opportunity to thank those leaving the Task Forces for all their hard work, commitment and service to the industry.

“This year, we are looking forward to drawing on the experience and perspective of our new members as we aim to further strengthen this vital sector and deliver on Vision 2035.”

Dr Samuel added: “We are very much looking forward to welcoming the RT Honourable Claire Perry MP, Minister for Energy and Clean Growth to her first MER UK Forum meeting, held today in Aberdeen.”