John Gibson tells PDM of Landmark’s plans for PetroBank

Landmark president John Gibson tells PDM how PGS’ data management division will integrate Landmark’s business. He reveals that along with PetroBank, Surf & Connect and the Tigress suite are included in the deal.

PDM - Landmark’s acquisition of PGS’ data management division is a major event in upstream data management, but you paid a lot for PetroBank.

Gibson - I think that we paid a fair price. Halliburton has estimated that the deal will be neutral to accretive* in our 2001 financials. With moderate synergy, we should make money out of this acquisition in year one.

PDM - How do you see the relationship with PGS developing?

Gibson - We will be working closely with PGS. Landmark will become a data management service provider to PGS and we look forward to a strong working relationship. This is a win win deal at many levels, on price, in our ongoing contractual relationship with PGS and for our customers.

PDM - PetroBank brings Landmark back into mainstream data management - something of a change from your previous position.

Gibson - Before this deal we had leading edge software in practically every domain except for the Corporate Data Store. This acquisition plugs the gap and puts Landmark in a very strong strategic position.

PDM - But only a year ago, Landmark was advocating letting the data vendors manage the data.

Gibson - We are just reacting to the way the marketplace has evolved.

PDM - How are you planning to evolve PetroBank? Will it grow to handle other seismic formats such as compressed or partially stacked data?

Gibson - We will be integrating PetroBank with OpenWorks, but there will be other data management tools. We are aiming at a seamless flow from Archive to Projects assuring storage and subsequent retrieval. Halliburton is now a real time knowledge company, the 7x24 data repository is part of this.

PDM - Is Surf and Connect part of the deal?

Gibson - Surf and Connect is a significant part of the deal. We have also acquired Tigress.

PDM - Wow! What are you going to do with Tigress?

Gibson - We will evaluate the technology, and plan to replace some of it with our existing products and to transition some clients. We also plan to extract and leverage other Tigress components - especially in the engineering data field where Tigress is strong.

PDM - Where does all this leave Open Explorer?

Gibson - This needs to be resolved - we have some decisions to make and several options - a technology merge or perhaps different development paths. We will be in good shape to evaluate this after the deal closes in February.

PDM - It has always proved hard to productize data management software and PetroBank has a large service component. Did you break-out the service/software components in your evaluation?

Gibson - We did not break the cost down in that way. We saw the whole of PGS’ data management business as an attractive alternative to the other industry data repositories.

PDM - Despite PetroBank’s success at the national data repository, it has failed to penetrate the oil company market. How do you plan to fix this?

Gibson - There will be serious marketing focus on PetroBank in 2001 after closure of this deal in March.

* PDM understands that this means that the deal will not affect earnings in the year of acquisition.

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