AN ABERDEEN-BASED provider of specialist oil and gas survey services has announced a first for its technology.
Offshore Hydrocarbon Mapping (OHM), which carries out controlled-source electromagnetic (CSEM) imaging, said yesterday the work in the UK North Sea would represent the first full commercial use of its Wise (well integration with seismic and electromagnetics) technology.
OHM said Wise allowed CSEM technology to be applied in technically challenging areas.
The survey is on behalf of the Nautical Petroleum-led group, which includes Canamens Energy and Celtic Oil, to assist in the appraisal of the Kraken discovery in northern North Sea block 9/2b.
The survey follows on from a pilot project by OHM on Kraken for the joint venture earlier this year.
OHM said: “CSEM data acquired by OHM on the pilot project was integrated with the client’s existing well and seismic data using OHM’s advanced Wise workflows and determined that the resistive body associated with the discovery in well 9/2-1 extended significantly north and south of the well.
“The appraisal survey will now map the lateral extent of the discovery and help distinguish between competing geological hypotheses, which in turn will guide further appraisal drilling.
“The contract value is in excess of $1million (£600,000) and the CSEM survey will be conducted by OHM’s dedicated vessel OHM Leader in June with initial results expected in July.”
OHM president Richard Cooper said: “We are delighted that Nautical Petroleum and their partners have again chosen OHM for this important project. This type of CSEM survey using Wise technology, which is unique to the OHM Group, is particularly appropriate for appraisal projects and helps industry exploit the combined strengths of CSEM, surface seismic and well data.”
Shares in OHM finished up more than 17% yesterday at 8.5p.
It emerged last month that bosses at OHM had taken substantial pay cuts as losses at the troubled company widened in the six months to February 28.
The firm, which has said previously it may not be able to continue without refinancing or a dramatic upturn in trading, said in April it had completed a review resulting in significant cost reductions, saving it about £13million a year.
It said it had renegotiated charter terms for the OHM Leader and OHM Express survey vessels and some staff had been made redundant. OHM said in February that about 40 jobs would go, reducing its workforce to about 66.
Executive chairman Dave Pratt said last month that the oil service industry was facing a deeply challenging period, with many of OHM’s clients unable to raise cash to fund exploration and development programmes and some ceasing trading.
He said lower oil and gas prices had prompted many clients to cut exploration and production spending or to delay planned projects.
OHM reported pre-tax losses of £5.6million for the half year, compared with a £4million deficit a year earlier.
Revenue of £6.2million was up 31% on the first half of the previous year.