Vialogy Plc (LON:VIY), the American software group whose technology is used to work out where to drill oil wells, this morning said that it had delivered recommended well drilling locations to two clients that plan to start drilling on the sites in the coming weeks. Under the terms of the two contracts, ViaLogy’s deliverables include multiple specified well sites which will see the company receive an overall service fee plus a working interest success fee for each completed well. The new well sites were positioned using Vialogy’s proprietary QuantumRD technology and the company is understood to be in advanced talks with prospective clients to apply the same technology for shale gas exploration and production.

Separately, the company has hired two senior technical staff in order to boost its current capacity to service an increasing workflow and speed up the introduction of QuantumRD to a broad set of exploration and production firms.

Dr Robert Parney joins the company as chief geophysicist and vice president, geophysical services. He brings over twenty years of experience as a reservoir geophysicist/geo-scientist, and is a recognised industry expert in all facets of seismic technology from acquisition and processing to interpretation and reservoir characterisation. Dr Andres Chavarria has been appointed as senior geophysicist, bringing over fifteen years of analytical and management experience in the seismic data processing area.

Vialogy’s chief executive, Robert Dean, said: “Both Bob and Andres were selected after extensive evaluation of a long list of candidates. They each have superior industry track records as innovative, hands-on professionals in the advanced use of seismic data across a range of formations - onshore, offshore, and shale gas. They will work closely with our chief technology officer, Dr Sandeep Gulati, to develop QuantumRD - our unique technology that exploits, as an information source, the 'noise' inherent in most seismic signal data - into a standard industry tool.”

Today’s news follows an update in late May in which Vialogy said 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. Shares in Vialogy rose by just over 7% to 3.75 in early…

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