Vialogy Plc (LON:VIY), the American software group whose technology is used to work out where to drill oil wells, said this morning that it had recently completed contracts to supply analysis for seven new well locations on two onshore projects in Texas and New Mexico, US. The AIM listed company noted that its flagship QuantumRD software was gaining acceptance among a diverse client set and that the business was on course to hit revenue goals this year. Separately, Vialogy’s security and surveillance division has been brought in to develop software for the US Department of Defense Force Protection System II contract.

Included in the seven new drilling targets are four well sites for a private Oklahoma exploration and production firm. Recommended total depths range from 11,000 to 12,000 feet total depth, and target the Pennsylvanian Morrow channel sandstone at a New Mexico prospect. Under a new, second contract, the company analysed a 15 square mile prospect for a Texas E&P firm and delivered three additional well locations targeting both Strawn and Wolfberry carbonate zones. Vialogy pointed out that the timing of the drilling schedule on its recommended locations was under the client's sole control so there was no assurance over when the wells would be drilled.

Apart from the seven new well locations, Vialogy has also completed survey design and acquisition of 3D seismic data for two client leases; with drilling locations due to be delivered in July. Depending on customer decisions to commence drilling, the company said it expects three clients to drill three to five wells at Vialogy locations before the end of autumn.

Finally, as part of the US Department of Defense contract, the company has begun work to develop and test a new software package to validate communications between sensors and other networked security devices. This software will become the validation reference for future security upgrades to US Air Force bases worldwide.

Vialogy’s chief executive, Robert Dean, said: “Vialogy has accomplished a lot in the last six months. QuantumRD is gaining acceptance among a diverse client set; we are achieving repeat business; and the technology is being applied to an increasing variety of formations. As we provide more drilling locations to clients, we believe we can achieve a ‘drilling queue’ that results in regularised drilling activity. We have our sights set on winning…

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