Globe

IP2IPO announces the successful float of GETECH plc

23 Sep 2005

GETECH Group Plc, the oil services business specialising in the compilation and analysis of gravity and magnetic data, is pleased to announce its flotation on the AIM market of the London Stock Exchange today. GETECH is a profitable and cash generative oil services business specialising in the compilation and analysis of gravity and magnetic data. GETECH licenses these data sets and interpretation reports to major oil, gas and mining companies to enable these companies to evaluate regional geology and thereby assist their exploration strategies. GETECH has compiled one of the most extensive commercial libraries of gravity and magnetic data. GETECH is based at the University of Leeds, and it has a subsidiary in Houston, Texas.

Magnetic data can be mapped to show small variations in the Earth’s magnetic field. These maps can then be analysed to show the location and depth of geological structures such as faults, rock boundaries and volcanics. Gravity data is similar to magnetic data, except that it is used for mapping the variation of the gravity field of the Earth. Variations in the Earth’s gravitational pull arise from changes in the density of rocks. The gravity field allows three-dimensional analysis of geological structures at depth. For example the gravitational field increases over anticlines (arch folds in rocks) and decreases over the top of salt domes (a plug of salt). This information, together with other data, contributes to the evaluation of the mineral and hydrocarbon potential of a region. GETECH licenses its magnetic and gravity datasets and interpretation reports to oil, gas and mining companies who are able to generate an image of the sub-surface geology over a potential exploration area. The Directors believe this benefits the oil, gas and mining companies by adding a greater degree of certainty before more expensive seismic exploration and drilling operations are undertaken.

GETECH has evolved from a University of Leeds research group, which was established in the early 1980s by Dr Derek Fairhead, currently Professor of Applied Geophysics. In 1991, this research group was renamed Geophysical Exploration Technology and it became a division of ULIS, a company established to manage the University’s commercialisation of intellectual property. In 1996, Geophysical Exploration Technology Inc. was established in Houston, Texas, to strengthen and build on close contacts with major oil companies. In October 2000, GETECH was “spun-out” from the University with 80 per cent. of the equity being allocated to senior employees within GETECH and with the University retaining the remaining 20 per cent. To preserve GETECH’s valuable links with the University, Dr Derek Fairhead still spends 20 per cent. of his time teaching and supervising research within the University. GETECH has, since the mid-1980s, undertaken and continues to undertake a series of major gravity and magnetic continental scale studies, funded by oil and gas companies. These studies have integrated on a continental scale disparate exploration gravity and magnetic datasets owned by oil companies with other available data into a single unified database. GETECH took the strategic decision in mid-2004 to develop a new division of the business, the Petroleum Systems Evaluation Group (PSEG), and recruited senior geo-scientists to manage it. PSEG uses data already held by GETECH with other data to analyse the potential petroleum systems within sedimentary basins. The aim of PSEG is to provide oil companies with a more detailed insight of where oil and gas are likely to be found within the sedimentary basins. This further analysis builds on GETECH’s core competency of defining the location and structural architecture of the sedimentary basins. The Directors believe PSEG has significant growth potential due to the increasing demand for its services.