Transformational transaction consolidates Neos as global player
Neos today announced an agreement with CGG SA (CGG:PAR,ADR:NYSE:CGG) to
acquire its Multi-Physics business group, its General Geophysics Italy
group and its data libraries for an undisclosed sum.
This acquisition will be transformational for Neos. As a result of the
transaction, the company will be able to offer its customers the largest
fleet of airborne geophysical acquisition aircraft, one of the largest
libraries of non-seismic geo-data, unique capabilities in
electromagnetic and seismic imaging, and pioneering applications of
predictive analytics techniques for oil, natural gas, metals, minerals,
and groundwater exploration. The combined company will be run by Neos
CEO Jim Hollis.
Jonathan Faiman, Chairman of Neos, who invested and became the largest
shareholder in the company in May 2015, said: "We have travelled a long
way in one year. This transaction transforms what Neos can offer our
customers, whether they be governments or oil and gas majors. Neos is
now a world leader in the detection of natural resources.
“By making this acquisition in a challenging environment for the natural
resources industry, we are positioning Neos ahead of the game. We are
capitalizing on the growing demand and the technical challenges in
accessing resources by making exploration less risky, more targeted and
dramatically more efficient. This innovative approach will help
governments and companies around the world realize the potential of
natural resources and create value.”
Neos is a privately-owned, fast-growing company specialized in
high-definition interpretation of subsurface data. Its innovative
approach is based on a unique proprietary technology developed to
improve dramatically the chances of success in identifying natural
resources. In an industry traditionally dominated by seismic data, other
more cost-effective and less environmentally challenging methods
remained secondary and rarely used to their full potential. By
integrating multiple layers of diverse data to draw a complete picture
of the resources below the surface, Neos is able to evaluate, with a
superior level of accuracy, the geological attributes of oil & gas and
mining resources.
Jim Hollis, President and CEO of Neos, added: “This transaction is an
investment in our vision of the future in times of growing pressure to
realize the value of natural resources and replace the reserves
following the recent slow-down in investment. The acquisition will allow
us to offer the most complete and competitive solution available in the
market to evaluate natural resource assets in the most efficient and
accurate way. With our global footprint, we will be able to help de-risk
and optimize exploration plans and potential prior to licensing rounds
and drilling.”
The transaction is subject to the customary regulatory reviews and
approvals is expected to be completed by the summer. The commercial
terms of the transaction remain confidential.
NOTES TO EDITORS
About CGG Multi-Physics
CGG’s Multi-Physics business is acknowledged for its advanced
geophysical sensor technologies, efficient data acquisition platforms,
and excellence in all facets of airborne operational execution,
particularly in its HSE philosophy and performance. Their legacy roots
were formed in the metals & mining sector, though they have done
significant oil & gas work in recent years.
Multi-physics exploration methods integrate seismic and cost-effective,
airborne-acquired, non-seismic measurements (e.g., gravity, magnetic,
EM, radiometric and hyperspectral) for the purpose of developing a
comprehensive 3-D image of the Earth’s subsurface.
The combined company will feature:
-
Aircraft: world’s largest fleet of geophysical acquisition
aircraft;
-
Data libraries: one of the largest non-exclusive libraries of
gravity and magnetic data;
-
Gravity gradiometry: industry’s largest portfolio of gravity
gradiometry systems;
-
EM technologies: unique capabilities in electromagnetic (EM)
data acquisition, imaging and interpretation;
-
Seismic imaging: industry-leading capabilities in seismic data
processing in complex geologic regimes, including subsalt, naturally
fractured, and stacked-pay reservoirs;
-
Geophysical software: proprietary geophysical software
supporting multi-physics data integration and interpretation;
-
Marine acquisition services: the leading provider of marine
potential fields acquisition services to the oil & gas industry;
-
Analytic interpretation: proprietary predictive analytics
algorithms and methodologies used to highgrade exploration acreage and
identify new exploration targets;
-
Global team: 350 professionals positioned in key natural
resource exploration centers in the United States, Canada, Australia,
South Africa and Brazil.
With this acquisition, Neos will be gaining CGG’s Multi-Physics Business
Line, which is comprised of: (a) non-seismic airborne acquisition
systems for measuring magnetic, electromagnetic, radiometric and gravity
gradiometry data; (b) marine magnetic and gravity data acquisition
systems and associated processing and interpretation; (c) specialized
gravity, magnetic and electromagnetic processing and modeling software.
Acquired assets will include:
-
A fleet of 16 geophysical acquisition aircraft with service centers
located in Canada, Australia, South Africa and Brazil;
-
6 Airborne Gravity Gradiometry systems, including state-of-the-art
FALCON Plus systems manufactured by Lockheed Martin;
-
CGG's library of 14 million line km of aeromagnetic data and 2 million
stations of land gravity data worldwide;
-
A team of 270 highly talented personnel located in Toronto, Ottawa,
Houston, Milan, Johannesburg, Rio and Perth.
About Neos
Neos helps governments, energy ministries and exploration teams in the
natural resources industries make faster, more informed decisions about
where to explore, lease and drill. In partnership with its clients, Neos
acquires and simultaneously interprets multiple geological, seismic,
non-seismic and geochemical datasets to identify valuable resources in
the subsurface, including hydrocarbons, minerals and groundwater.
Before becoming Chairman at Neos, Jonathan Faiman co-founded Ocado PLC,
a U.K. business started in 2000. Investors in Neos include Jonathan
Faiman, Goldman Sachs, Kleiner Perkins Caufield & Byers and Passport
Capital.
For more information, visit www.neosgeo.com.
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