28 February 2006
OHM Trading Update
Following the conclusion of a successful first half, Offshore Hydrocarbon Mapping plc ("OHM" or "the Company") is pleased to announce trading which has exceeded the board's expectations for the six months to 28 February 2006.
In the absence of unforeseen circumstances the Directors anticipate that turnover and operating profit for the six months to 28 February will be in excess of that achieved for the full year to 31 August 2005. Cash resources are slightly ahead of the figure of £ 4.4 million reported at 31 August 2005. The Company expects to report its interim figures on the 25th of April 2006.
As previously announced, the University of Southampton has appealed against the decision of the UK Patent Office to award a patent held by the University (and licensed to OHM), to Statoil. The date for the appeal hearing has been set for 23 May 2006. Whilst OHM continues to support the University's stance, after a thorough legal and commercial review of the situation in the light of the rapid advancements made by OHM in survey design and technology, it is the Director's belief that even a wholly negative outcome is unlikely to have a serious or lasting impact on the Company.
Dave Pratt, OHM's Chief Executive Officer, commented: "Our recent activity levels and order intake confirms that the industry is now embracing controlled source electromagnetic imaging (CSEM) as an important and value adding exploration tool.
In the past six months we have undertaken deep water surveys in South East Asia, and around the African coasts for both existing and new clients. We have recently completed our first commercial shallow water survey in the Falkland Islands and are pleased with levels of industry interest in our shallow water capability. Our order book continues to strengthen and our research continues to uncover new ways to expand our technology to create value for the upstream hydrocarbon industry. It is still too early to declare full industry adoption of our technology but, although we are not yet able to forecast the future with the certainty enjoyed in mature businesses, we do now see real progress towards that outcome."
For further information, please contact:
Offshore Hydrocarbon Mapping plc
Dave Pratt, Chief Executive Officer, +44 (0)870 429 6581
www.ohmsurveys.com
Aquila Financial Limited
Peter Reilly +44 (0)20 7202 2601
Yvonne Fraser +44 (0)20 7202 2609
ohm@aquila-financial.com
Notes to Editors
OHM's survey method transmits an electromagnetic field into the earth, which is modified by the presence of subsurface resistive layers. These changes in the field are measured and the resulting data is processed to provide information on the resistive structure of the subsurface.
Because hydrocarbon accumulations are generally very resistive, this method can indicate the presence of oil and gas in water depths of as little as 50 metres in certain circumstances and can detect and map the edges of such accumulations. This reduces the risk of drilling non-commercial exploration wells and can reduce the need for appraisal drilling, thereby creating considerable value for oil explorers.
OHM was formed to commercialise technology resulting from extensive academic research at University of Southampton's Oceanography Centre. The company listed on London's Alternative Investment Market in March 2004.
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