FALKLANDS WIN HELPS TO LIFT OHM SHAREHOLDERS OUT OF DEEP WATER
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IAN FORSYTH
ENERGY EDITOR
09:00 - 22 December 2005
Shares in Aberdeen company Offshore Hydrocarbon Mapping (OHM) were on their way up again yesterday after it announced a contract win in the Falklands.
The firm specialises in electromagnetic remote sensing to detect oil and gas.
People holding OHM stock have had a rollercoaster ride since 2004, with shares falling from highs of more than 300p to lows of 42.5p. One factor for this was a continuing patent dispute. The stock finished yesterday up nearly 6% at 82.5p.
OHM said it would conduct a controlled source electromagnetic (CSEM) survey for Rockhopper Exploration on its licences in the north Falklands basin.
No value is being disclosed for the work, but it is understood to be worth more than £1million. OHM said this was one of its first shallow-water contracts since it formally launched a specific service in November, and the first time that CSEM would be used in the Falklands.
The Aberdeen company said that, until now, CSEM was most effective in very deep waters.
OHM says, however, it has now designed a method that overcomes the technical challenges of shallow water.
Chief executive Dave Pratt said: "Our shallow-water service generated significant industry interest at the launch last month and this early contract with Rockhopper Exploration is very pleasing.
"Given the relatively isolated nature of the Falklands, the highly variable water depths and associated high costs of drilling, it is essential to understand as much as possible about drilling prospects to minimise the risk of dry wells. We will be applying leading-edge CSEM techniques to Rockhopper's prospects to help to maximise their understanding."
Sam Moody, managing director of Rockhopper, said the firm was very excited to be moving its exploration programme forward using the new technique.
It was announced in summer that Norwegian oil group Statoil had been awarded the UK patent for methods that OHM used in its work. The Aberdeen firm - which is part-owned by Southampton University - said in September that the Patent Office had now stayed the order pending the outcome of an appeal. The appeal, being undertaken by the university, is due to take place at the High Court in London in May.
OHM employs around 30 people in Aberdeen and has about 50 people working in two survey crews.
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