Vialogy Plc (LON:VIY) (LON:VIY) gave a trading update today, for the year ending end of March 2010. ViaLogy's focus is to supply the upstream oil and natural gas sector with its analytical service offering, QuantumRD. QuantumRD is a a derivative application of the core weak signal detection technology, which was launched to enhance the petroleum industry's ability to accurately locate, characterize and size hydrocarbon deposits.
Over the period, performance was strong, underlined by the introduction of Quantum RD seismic analysis and reservoir characterisation technology to the hydrocarbon energy market, the report said. By the end of March, ViaLogy has 12 clients under contract, including two independent exploration and production firms. The five successfully drilled wells have reportedly shown that QuantumRD can locate productive hydrocarbon deposits in a variety of formations. The five prospects are all located in Texas, with different formations ranging from 3,000 feet to 12,000 feet deep. These targeted structural and stratigraphic formations include carbonates, vugs, clastic sediments and channel sands. The deliverables provided analysis of formation porosity, lithology and fluid presence, the report said.
Going forward, ViaLogy's strategy is to work closely with clients to bring the QuantumRD technology to new areas, for example shale gas and offshore exploration plays. he coming months should see drilling of four to five new ViaLogy-positioned wells, some with new and some with established clients, and that number will increase over the course of the coming year. In its latest project, San Antonio-based client Atascosa is currently determining whether to do a deviated drilling completion of its Escondido well or to drill at another nearby ViaLogy designated location. Initial results indicate that the drilling process may have failed to achieve the placement accuracies set by ViaLogy, but has confirmed that QuantumRD analysis accurately located a pay zone and determined porosity. CEO Robert Dean commented,
"I'm very pleased that we've been able to achieve as much as we have during the last year. Anyone with experience will tell you unabashedly that you have to prove yourself to win acceptance in the oil industry, and that it doesn't come easily. Also, it's not academic - it's about finding oil. ViaLogy has done this in very challenging situations. We have successfully completed a significant number of QuantumRD wells, and, very significantly, our retrospective…
