Getech maps out future with data deal for Iraq and Tibet

OIL exploration data firm Getech has signed two new data deals to expand its offering to major oil firms, which it expects to generate "significant revenue".

The group, spun out of the University of Leeds, sells complex geological and geophysical data to help oil companies including Shell, BP and Exxon Mobil decide where to sink new wells.

Yesterday the group revealed it has won consent to sell data which maps Iraq and Tibet.

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"These two new agreements provide further evidence of our global reputation and pre-eminence in the field of gravity and magnetic data as used for exploration purposes," said Derek Fairhead, president and founder of Getech.

"We are particularly pleased to have completed the Iraq data agreement as this follows several years of relationship-building and it has been completed at a time when the exploration potential in Iraq is of increasing interest to our clients"

Getech signed a data marketing agreement with the Geological Survey of Iraq (Geosurv), which won approval from the Iraqi government to enter into the agreement.

The deal gives Getech exclusive rights to market gravity and magnetic survey data held by Geosurv.

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The company said this data provides substantial coverage across the whole of Iraq – except Kurdistan where such surveys have not taken place.

"(It) represents a major addition to Getech's global data library," said the company. "Iraq is currently an area of major exploration interest and the directors believe that these data will generate significant revenue from 2011."

Chief executive Raymond Wolfson said: "People do get excited. Iraq is one of those areas that potentially is underdeveloped and has a lot of potential. Clearly, it's not an enormously stable area but bear in mind oil companies are in a lot of places where you would not be too happy to wander around.

"The Iraqis have expressed plans to very significantly increase their production. We've spent a long time on this and it's finally come to fruition."

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The company also revealed it recently signed an agreement with the China Aero Geophysical Survey and Remote Sensing Centre for Resources (AGRS) to market its Tibetan aeromagnetic data. Getech has a long-standing relationship with AGRS.

Getech's data spans the globe, ranging from the oil-rich west coast of Africa to the largely untapped Arctic circle. It is increasingly benefiting from looser budgets at oil firms, which are resuming spending on exploration – and hence its data – after a recession-induced hiatus.

The group recently reported narrower pre-tax losses for the year to the end of July – down by almost two thirds to 228,497. Revenues were stable at 3.26m.

Getech experienced a tough first half but a better second half. It made 392,000 of losses between August and January, as trading was hampered by oil majors' constrained 2009 budgets. Getech also saw no significant December boost, usually a month when companies spend unused budgets.

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However, the turn of the year saw looser budgets and healthier sales of data and proprietary studies. Despite the impact of the volcanic ash cloud, which stranded staff, Getech made profits of 163,000 between February and July.

Better trading means Getech is considering commissioning its own data gathering, as well as buying it from third parties such as governments.

Mr Wolfson said this could involve working directly with flight contractors which collect gravity and magnetic data from the air.

The group is also investing in new models and ways of presenting data. One of the new products it is working on is a "global thematic model". Initially a tectonic model, based on the earth's plates, it will provide an overview of different regions around the world. Getech said it will reduce exploration risk and could save millions of pounds in unnecessary seismic and drilling costs.

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It also plans to launch a new magnetic data study of Europe.

From out of the Earth

Getech traces its roots back to the University of Leeds's Department of Earth Sciences, now part of the School of Earth and Environment, when founder Derek Fairhead collected gravity data for Africa in 1986.

The data was computerised to complete Getech's first study, and it gradually gathered the data of 19 companies.

It opened an office in Houston, Texas in 1996, and a limited company was formed in 2000 when Getech spun out of the university. It floated on AIM in 2005, raising 3m.