Q&A OYO

Q. Last year you won a contract to supply a seabed acquisition system for BP in the Caspian. Can you tell us about what this contract entails?

This advanced SubSea imaging program is using a Hybrid of our permanent LoFS (“Life-of-Field Seismic”) SubSea seismic system technology, by incrementally testing specific areas of the Central Azeri and the Chirag fields in a retrievable mode. Later in the program segments of the SubSea cable system will remain in place (within each areas) to secure the ideal permanent response of the receiver locations. Continued expansion of this very large scale SubSea seismic system is planned for the next several years.

Repeated conventional marine seismic source efforts will be performed over these selected areas, as well as the “surveillance” mode monitoring of the seismic response of the reservoir under production. These rapidly developing methods are unique to continuous, real-time SubSea systems offered by GEOSPACE Engineering Resources International, LP. It is expected that these continuous monitoring methods will provide a better understanding of the behaviour of flow units within the reservoir volume, and provide valuable information for optimized production over time.

Q. What kind of technology is needed in this region – are there any particular challenges operating in the Caspian?

Wider aperture multi-component SubSea systems are demonstrating a significant improvement in seismic imaging qualities in this area. By producing an improved seismic image of this challenging reservoir, and securing the repeatability of the LoFS seismic method, it is expected that these information will provide the reservoir engineers with the information to efficiently and cost effectively manage this huge and valuable reservoir.

This massive reservoir shows a high connectivity and very good response to pressure. Effective and ambitious depletion can be achieved by controlling the rate of injection of water and gas and monitoring these changes by this advanced seismic method. The control of water and gas flood fronts can be achieved by monitoring the movement over time, and improved simultaneous injection of water and gas. Additionally, these “time-lapse” seismic images will secure a strategic placement of additional producing and injection wells.

Q. And what about the challenge of operating in more hostile environments such as arctic offshore – how do you ensure optimum performance in those areas?

Each producing reservoir area has its unique challenges. Our incremental success in the North Sea, West of Shetlands, Deep Gulf of Mexico, and now the Central Caspian have demonstrated that success is determined by selection of the right seismic imaging equipment, SAFE and robust deployment hardware and services, and an effective cooperation of the diverse working units in our LoFS technologies. The artic offshore area is just another place to plan and implement a well proven strategy of this valuable seismic imaging solution.

Q. You’ve opened a facility in Ufa, Bashkortostan to manufacture seismic monitoring equipment in Russia. Why was it important to set up a base within the country?

Our Russian Federation affiliate OYO-GEO Impulse International LLC, is a significant contribution to the manufacturing and support of our conventional seismic sensor and cable group. We expect to expand their manufacturing and service support into our advanced Reservoir Imaging products beginning with the wellbore seismic products. Our newest Borehole Seismic Receiver Arrays are now providing a VERY large aperture, multi-component solution to 3DVSP, Microseismic Diagnostics, and Time-Lapse calibrations. By deploying these 100’s of levels of sensitive full-wave seismic detectors into the producing volume, a significant improvement in imaging bandwidth, sensitivity to very small seismic signals, and direct measurement of the direct and reflected seismic wavefield can be realized. In areas where near surface conditions may compromise the seismic signal (permafrost, glacial till, environmentally sensitive wetlands, etc) it may be possible to use the 3DVSP method to image the discrete features of the production volume some considerable distance from the wellbore.

Q. Do you manufacture your full range of products in Russia?

We currently are manufacturing our seismic sensor products and a limited line of leader-wire and system telemetry cable. Our facility has met its capacity and we are currently expanding the facilities to meet the demands of our growth. Facilities expansion is underway with another 92,000 square feet adjacent to our current location, with completion expected in December 2007.

Q. How do you see your operations in Russia expanding in the next 3-5 years? Where are there opportunities for growth?

We have only just begun to realize the potentials of our growth of OYO-GEO Impulse in the markets served by our Russian Affiliate. The world-wide demand for our emerging technologies remains strong, and our capacity to serve these needs must keep pace. As our team continues to demonstrate a cooperative success with the seismic exploration products, we are hopeful to challenge their growth with borehole seismic systems, SubSea seismic cable systems, and other land and marine seismic instrument solutions.