Another client climbs on board Getech project

Leeds-based Getech, which sells complex geological and geophysical data to oil companies, said the contract is worth over £500,000 and will bring the project’s total number of clients to six.

The project, which will take three years to complete, will explain how the geology and geography of an oil basin changes.

The data covers the entire globe but the east coast of South America, particularly Brazil, and the west coast of Africa are particularly attracting attention.

In April, Getech said it anticipated signing up a number of further clients for its Global Programmes in the near future.

Yesterday Getech’s chief executive Raymond Wolfson said: “While we had anticipated further contracts in the short term, it is nevertheless very satisfying when they are confirmed.

“Each new commitment is significant for us and continues to reinforce the momentum that we perceive to be building around our Global Programmes.

“This further sale will provide a strong start to the new financial year and helps provide improved visibility of income.”

He added that the sponsors are major, well known companies with international interests.

They are funding a three-year programme of work, of which the first year’s work was completed earlier this year.

Their initial funding commitment runs through until mid 2014.

“The aim of the Global Programmes is to provide exploration teams in oil and gas companies with a robust and constantly updated platform which supports their understanding, investigation and risking of new areas of interest,” said Mr Wolfson.

The Global Programmes include a range of products that build on Getech’s traditional strengths in potential field geophysics, its global plate model and palaeogeographic mapping techniques.

These provide insights into the shape and evolution of sedimentary basins and include reconstructions of past rivers, landscapes and sediment distributions.

Last week Getech’s shares soared more than 18 per cent after it said annual results will beat expectations.

Eric Burns, analyst house broker at WH Ireland, said Getech’s third positive statement in two weeks demonstrates “exceptional momentum” across the business.

The brokerage upped its target price to 35p per share from 32p and raised its pre-tax profit forecast to £1.1m from £0.9m for this year.

Mr Wolfson said: “We are extremely pleased with the strong contributions from all parts of the business in the current year.

“The successful launch of the multi-year Global Programmes and the continuing strong performance with data sales have combined to generate a result that will exceed the current expectations for the year.”

Mr Burns said: “Whilst we leave our dividend expectation unchanged for both years for the time being, Getech’s strong balance sheet and cash generation suggests to us there is scope for a significant uplift in the payout.”

Getech reported a 22 per cent rise in pre-tax profits to £358,000 in the six months to January 31, while revenues surged 20 per cent to £3.2m.

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.

Last month Getech issued a further licence for its Russian Arctic Shelf magnetic data worth £820,000.

It said the licence will come from its library of global gravity and magnetic data.

Getech said the Russian Arctic Shelf is a major area that has been under-explored.

The area is still in the early stages of exploration for oil and gas as a result of its harsh climate conditions and high exploration and production costs.

Mr Wolfson, said: “We are very pleased with this third licence from our Russian Arctic Shelf magnetic dataset.

“In recent years there has been an increase in the number of international oil companies establishing strategic links with Russian companies, which suggests there will be a continuing and active interest in exploration in Russia.”

It also issued two licences for its global continental margins gravity and magnetic datasets worth a total value of £400,000.

The global continental margin datasets are a part of a library of gravity and magnetic data that Getech has built up over the past 25 years.

This data is used by oil, gas and mining companies to help their exploration programmes.

Mr Wolfson said: “We are seeing an increased emphasis by our clients on global exploration.

“Our approach has for some time been to develop exploration data and studies at global and regional scales.”

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