Magseis Gets $4 Mln Boost from Shell

Magseis, a Norwegian ocean-bottom seismic specialist, has reached an agreement with Shell Technology Ventures B.V. to invest USD 4 million in Magseis’ low-cost, and highly efficient ocean bottom seismic (OBS) technology through the issuance of a convertible loan.

“Magseis is addressing the oil and gas industry’s need for improved imaging solutions by reducing the cost of OBS to a level that will enable widespread industry adoption,” says Magseis CEO Ivar Gimse. “We have recently reached several important milestones and are set for strong growth during 2014. We have seen strong interest among investors in general and now specifically from Shell as a confirmation of this positive development. With Shell Technology Ventures as a shareholder, we see attractive technological and commercial opportunities ahead.”

“Seismic technology is at the heart of our business. We are continually looking for innovative solutions in geophysical services and technologies that improve imaging and help us better understand complex reservoirs,” said Geert van de Wouw, Manager of Shell Technology Ventures. “The MASS system developed by Magseis could become a widely applied, cost-effective technology across both production and exploration acreage.”

The convertible loan has a two year duration and will convert to equity, at a price of NOK 475 per share, automatically upon listing of Magseis’ shares on Oslo Axess which is planned for June 2014. As part of the agreement the founders and major shareholders of Magseis have agreed to vote for and support a Shell Technology Ventures nominee to join the board of directors.