On the 15 September 2008 the Board of Directors of Polarcus Limited has approved the following new seismic equipment investments:
The purchase of two 6-streamer seismic packages for the Polarcus SX133's at an additional capital expenditure of USD 13 million per vessel. The two multipurpose SX133 seismic vessels were previously being equipped only for 2D/source operations with the intent of offering these vessels mainly in the developing wide-azimuth market. After an updated market and risk analysis the management of Polarcus has decided to equip these vessels from launch with a full 3D seismic package. The management believes that this will allow greater flexibility to further market these vessels for 6-streamer operations in the strong 3D market currently yielding higher returns:
The purchase of a lateral steering control system for the Polarcus SX124 vessel, NB67, at an additional capital expenditure of USD 3 million. The cost is expected to be absorbed within the previously guided capital expenditure of USD 148 million for the vessel. The management of Polarcus believes that the development of steerable streamer systems has now reached a level of reliability that warrants an investment into one full system. Market feedback on the benefits of lateral steering control systems highlight the significant improvements attainable in operational efficiency due to the reduction of line repetitions ("infill"), the ability to safely deploy the streamers closer together for high resolution surveys, and the ability to improve positioning repeatability for 4D seismic surveys.
Commenting on the equipment upgrades, Rolf Ronningen, CEO Polarcus, said:
"These new seismic equipment purchases will make us extremely competitive and place us firmly on course to establish Polarcus as a serious player from the outset in the current strong market for 3D and 4D seismic services."
Polarcus is a pure play marine geophysical company with a pioneering environmental agenda, specializing in high-end towed streamer data acquisition from pole to pole. Polarcus is launching an ultra-modern fleet of initially 6 advanced seismic vessels designed by Norway's Ulstein Design AS incorporating the innovative ULSTEIN X-BOW® hull. The vessels are being built in Dubai, UAE, by Drydocks World - Dubai LLC, with the first vessels becoming operational in 2009. www.polarcus.com