Wavefield, EMGS Jump on ‘Strong’ CGGVeritas Outlook
Wavefield Inseis AS, which uses sound waves to map potential oil and gas fields at sea, and ElectroMagnetic GeoServices ASA rose in Oslo trading after CGGVeritas predicted a “strong” fourth quarter.
CGGVeritas, the world’s largest seismic surveyor, said the outlook for earnings is “strong” in an industry that has doubled in value in the last three years as oil prices hit a record. The company said it will formally begin its $310 million offer for Norway’s Wavefield tomorrow after getting approval from Norwegian and French authorities.
Wavefield climbed 1.1 kroner, or 8.6 percent, to 13.9 kroner, valuing the Lysaker-based company at 1.8 billion kroner ($240 million). EMGS, a Norwegian surveyor of potential oilfields, gained 0.15 krone, or 3.7 percent, to 4.2 kroner.
CGGVeritas Nov. 10 agreed to buy Wavefield for about $310 million, expanding its fleet to tap increased spending on field data. Surveyors have merged to widen services as reserves become more difficult to reach and more costly to exploit.
The seismic market grew to $12 billion this year as crude reached $147.27 a barrel in July.
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