Geospace Technologies Awarded $7M in Ocean Bottom Node Rental Contracts

Rhea-AI Summary

Geospace Technologies (NASDAQ: GEOS) announced two new rental contracts worth over $7 million for its OBX ocean bottom nodes, enhancing their presence in marine seismic surveys. This follows a $10 million sales contract with an international seismic provider. The first contract involves renting 7,500 OBX-750E nodes for shallow water studies, while the second contracts for 1,900 OBX2-90 and OBX2-125 nodes for a seismic survey in the North Sea, commencing in Q2 2022. These agreements highlight increased offshore oil market activity.

Positive

• New contracts valued at over $7 million enhance revenue opportunities.
• Contracts follow a previously announced $10 million sales contract, indicating strong demand.
• Geospace's ocean bottom node technology offers high-quality data for critical exploration decisions.

Negative

• None.

Two Agreements for Deepwater and Shallow Water OBX Rentals Comes on the Heels of the Company’s Previously Announced $10 Million Sales Contract

HOUSTON--(BUSINESS WIRE)-- Geospace Technologies Corporation (NASDAQ: GEOS) today announced two contracts together valued at over $7M for the rental of OBX ocean bottom nodes for both deepwater and shallow water marine seismic surveys.

“These rental agreements come strongly on the heels of our previously announced OBX sales contract to an international seismic provider for $10 million, and is yet another sign of increased activity in the offshore oil markets,” said Walter R. Wheeler, President and CEO, Geospace Technologies. “Our company pioneered wireless and cable-free seismic data acquisition systems for commercial subsea exploration. Our versatile ocean bottom node product line continues to provide high-quality data at varied water depths which allow critical exploration decisions to be reliably made.”

The first of the two contracts is with an international marine geophysical services provider who will rent approximately 7,500 OBX-750E seabed ocean bottom wireless seismic data acquisition nodes. These nodes are designed to operate at a maximum depth of 750 meters and are used primarily for shallow offshore waters and transition zones, which include estuaries, marsh wetlands, and freshwater environments, such as rivers and lakes.

The second contract is with another international marine geophysical service provider who will rent 1,900 OBX2-90 and OBX2-125 nodes to conduct a seismic survey in the North Sea, which is scheduled to start in the second calendar quarter of 2022. The Geospace OBX2-90 and OBX2-125 will be used in combination with towed streamers for highly reliable subsurface seismic imaging.

About Geospace Technologies

Geospace principally designs and manufactures seismic instruments and equipment. The company markets seismic products to the oil and gas industry to locate, characterize and monitor hydrocarbon-producing reservoirs. The company also markets seismic products to other industries for vibration monitoring, border and perimeter security and various geotechnical applications. Geospace designs and manufactures other products of a non-seismic nature, including water meter products, imaging equipment and offshore cables.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220419006079/en/

Caroline Kempf, ckempf@geospace.com, 321.341.9305

 

Source: Geospace Technologies

FAQ

What is the value of the new contracts announced by Geospace Technologies?

The new rental contracts are valued at over $7 million.

What technology is Geospace Technologies renting out in the new contracts?

Geospace is renting out OBX ocean bottom nodes for seismic surveys.

How does the new contract relate to previous agreements for Geospace?

The new contracts come shortly after a previously announced $10 million sales contract.

When will the seismic survey in the North Sea begin?

The seismic survey in the North Sea is scheduled to start in the second calendar quarter of 2022.

What type of seismic nodes are included in Geospace's new contracts?

The contracts include OBX-750E, OBX2-90, and OBX2-125 nodes.