7th Nov 2005 07:00
GETECH Group plc07 November 2005 Monday 7 November 2006 GETECH Group Plc Memorandum of Understanding with The Development Research Center of the China Geological Survey GETECH Group Plc ("GETECH" or "the Company"), the oil services businessspecialising in the compilation and analysis of gravity and magnetic data, ispleased to announce that the Company has signed a Memorandum of Understanding ("MOU") with The Development Research Center of the China Geological Survey ("CGS"). Commencing in 2006, GETECH will act on behalf of the CGS to market, outside ofChina, their geological, geochemistry and geophysical data, in GeographicalInformation System ("GIS") format at data resolutions to be agreed. Until now,these data have not been previously available, even within China. GETECH has a long standing and commercially beneficial relationship with theCGS, having jointly completed a major aeromagnetic compilation study of Chinawith one of its divisions, the Aero Geophysical Survey & Remote Sensing Center("AGRS") in the mid 1990's. GETECH geophysicist, Kaxia Lei managed this threeyear study, in Beijing, which involved a work force of ten geophysicists fromAGRS. GETECH continues to market this aeromagnetic data to the oil and mineralindustries. Besides the MOU allowing GETECH to market the CGS data, it allows availableexchanges of personnel and will promote the undertaking of joint studies ofmutual scientific interest. Commenting on this news, Managing Director of GETCH, Professor Derek Fairheadsaid: "The signing of this MOU is a significant strategic development for GETECH as itacknowledges the close links we have developed with CGS in previous years.Access to these data will allow GETECH to continue to expand and diversify itscommercial geoscientific library, which currently holds the most extensivecommercial collection of gravity and magnetic data in the world." For further information, please contact: Buchanan Communications www.buchanan.uk.comKelly-Ann French 01943 [email protected] GETECH Group Plc www.getech.comProf Derek Fairhead 0113 343 5240Colin Glass 07831 [email protected] Teather & Greenwood Ltd www.teathers.comRob Naylor 020 7426 [email protected] Notes to Editors GETECH is a profitable and cash generative oil services business specialising inthe compilation and analysis of gravity and magnetic data. GETECH licenses thesedata sets and interpretation reports to major oil, gas and mining companies toenable these companies to evaluate regional geology and thereby assist theirexploration strategies. GETECH has compiled one of the most extensive commerciallibraries of gravity and magnetic data. GETECH is based at the University ofLeeds, and it has a subsidiary in Houston, Texas. On September 23 2005, the Company listed on the AIM market of the London StockExchange, raising just over £3 million via an institutional Placing. GETECH has 3 principal activities: • Global Gravity and Magnetic Data Licensing • Interpretation Studies and Services • PSEG The first two activities contributed the majority of Group revenue for the yearended 31 July 2005. 1. Global Gravity and Magnetic Data Licensing GETECH has compiled one of the most extensive commercial libraries of gravityand magnetic data, which is marketed and then licensed to oil, gas and miningcompanies. This activity has contributed the majority of Group revenue andprofit since 2000 and contributed 51 per cent. Of Group revenue for the yearended 31 July 2005. GETECH continues to update its data library by entering intonew marketing agreements with data suppliers and therefore continues to developnew products. For example, RAMS, an ongoing GETECH study, receives funding fromfour of the leading oil companies totalling in excess of £1.2 million. 2. Interpretation Studies and Services The Group undertakes two types of interpretation studies: • Non-exclusive studies, whereby a number of companies provide thefunding for the study but the ownership of the study remains with GETECH. Thestudy is then licensed to as many clients as possible after completion. GETECH'sglobal gravity and magnetic archive data are often incorporated within thestudies. An example of such a study is the "Libya Depth to Basement Study",which used GETECH-compiled gravity and magnetic data, over 700 wells, and publicdomain data to undertake a geological/geophysical three-dimensionalinterpretation study of the basement. The study has been sold successfully forfive years as oil companies either enter Libya for the first time or returnafter sanctions were lifted. New studies are being considered in Africa, theMiddle East and South East Asia. • Proprietary studies, whereby a single client commissions work.Currently, this is a relatively modest revenue earner for GETECH contributing 3per cent. of Group revenue for the year ended 31 July 2005. The work coversprocessing and interpretation of both GETECH datasets and survey data providedby the client. GETECH provides three types of services, which include: • Software sales and support of a limited range of databasing, processing and interpretation software developed by GETECH. • Training courses to oil, gas and mining companies, which are part of GETECH's marketing strategy. • Research and development to be undertaken and funded within set projects or as a standalone proprietary or group-funded study. 3. PSEG In mid-2004, GETECH decided to enhance its interpretation capability byestablishing PSEG, headed by Dr John Jacques and Dr Paul Markwick. PSEG usesdata already held by GETECH with other data to analyse the potential petroleumsystems within sedimentary basins. The aim of PSEG is to provide oil companieswith a more detailed insight of where oil and gas are likely to be found withinthe sedimentary basins. -ENDS- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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