Geospace Technologies Signs Major Shallow Water Ocean Bottom Node Rental Contract for $20 Million
First Significant Rental Contract with the Newly Released Mariner® Product
HOUSTON, June 27, 2023--(BUSINESS WIRE)--Geospace Technologies Corporation (NASDAQ: GEOS) today announced an extended duration rental contract with an international marine geophysical services provider who will rent the new product, Mariner®, shallow water seabed wireless seismic data acquisition nodes. Based on current contract terms, including potential options, the estimated value of the agreement is expected to reach $20 million. The delivery of Mariners will occur in Geospace’s first quarter of fiscal year 2024.
"Having only launched the Mariner less than a year ago, we’re thrilled to see the rapid market adoption of our next generation shallow seabed node. We appreciate the validation of our advanced technology that this sizable rental contract from a valuable customer represents," said Walter R. Wheeler, President and CEO, Geospace Technologies. "As evidenced by our profitable second quarter of fiscal year 2023, our ocean bottom node rental revenue has reached pre-pandemic levels. Ever increasing market demand merited the addition of these next generation nodes to our fleet, which has reached near full utilization over the last 18 months. We remain vigilant in our thorough examination and understanding of this market over the long term and how best to deploy our capital in future investments."
Mariner is a shallow water seabed seismic data acquisition node designed with inductive charging and data download, which makes it a connector-free device. The USA designed and manufactured node continuously records for up to 70 days and offers accelerated recharging times. The device was engineered with a slimmer profile than industry standards to create space savings on seismic survey vessels, allow contractors to fit up to 25% more nodes into a download/charge container.
Geospace principally designs and manufactures seismic instruments and equipment. The company markets seismic products to the oil and gas industry to locate, characterize and monitor hydrocarbon-producing reservoirs. The company also markets seismic products to other industries for vibration monitoring, border and perimeter security and various geotechnical applications. Geospace designs and manufactures other products of a non-seismic nature, including smart water connectivity tools, imaging equipment and specialty contract manufactured products. For more information on the Company, visit www.Geospace.com.
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Contacts
Caroline Kempf, ckempf@geospace.com, 321.341.9305
