Vialogy jumps on news of Chevron contract

Shares in Vialogy rose strongly after it said US oil giant Chevron was expanding its use of the firm's specialist seismic data analysis technology.

The company's QuamtumRD technology will be used over a larger area of the Delaware Basin, which spans parts of west Texas and southeast New Mexico.

Chevron has almost one million acres of holdings across the Basin, which contains several oil and wet gas plays within several thousand feet of hydrocarbon-bearing rock.

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ViaLogy said it was using previously exploited vintage 3D seismic to extract more information than previously possible with the objective of doubling the aerial and vertical resolution of standard techniques.

Chief Executive Robert Dean said: "We're pleased by Chevron's decision to expand the contract area, and we look forward to working with them on ever-increasing areas of this most important field".

"We believe our QuantumRD offers a competitive advantage in bringing new efficiencies to placing horizontal wells, and, hopefully, to lowering the overall cost of production," he said.

Vialogy's shares were up 12.5% by 1400.