Vialogy (LON:VIY) , the AIM listed technology company behind a system that helps oil companies identify drilling targets, has raised £1.25m in a share placing priced at 3p per share with existing shareholders. Cash raised from the move will be used to expand the company’s energy business which uses its proprietary QuantumRD technology to discover and characterise hydrocarbon reservoirs and generate drilling targets.

Terry Bond, the chairman of ViaLogy, said: “This funding will help to provide a firm financial base during what promises to be a very important year for the company. At the beginning of 2010, and with our previous series of successful wells in Texas as a launching pad, the board took a deliberate decision to focus our attention on global E&P companies as the path to establish QuantumRD, a novel realisation of seismic interferometry, as a standard industry platform. This, we believe, is where the commercial future of our company lies.

He continued: “The new funds will permit some expansion of our capacity to meet anticipated contract demand for new offshore prospects in the near term. As previously announced, we have made significant progress in the past twelve months in gaining the acceptance of a new technology in the upstream E&P sector. We concluded a Master Services contract with a supermajor and are working on our first project for them; in addition, following successful completion of a technology demonstration project, we are in advanced talks with a Fortune Global 100 international E&P firm. Other talks are underway with a non-US national oil company. The discussions focus on large core projects, both onshore and offshore, which we expect will lead to commercial contracts. We have also received enquiries from some of the large international oilfield services firms, and we are in advanced discussions with one of them in relation to a possible strategic partnership.”

Last week ViaLogy reported that its technology had once again be used to drill a successful well in Texas as part of a contract with a large exploration and production company. In the six months to September 30, 2010, the company posted a loss of £3.1m, including £1.6m for amortisation and depreciation. The ViaLogy share price remained unmoved at 4.12p in early trading.

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