Landmark Graphics Corp., a wholly owned subsidiary of Halliburton Company is to acquire 3-D visualization specialists Magic Earth Inc. The deal, a paper transaction of an estimated $100 million value, will leverage Landmark’s world wide distribution channels to promote the software.
Magic Earth was founded in 1999 when Texaco spun-off its GeoProbe seismic interpretation and visualization environment (see PDM Vol. 4 N° 11). At the time PDM commented “GeoProbe’s uncompromising technical specification and novel approach will make an interesting new arrival in the marketplace.” Subsequently, the product’s success has been demonstrated with high-profile sales to BP, Western and Marathon.
Landmark and Magic Earth will collaborate on integrating their technologies to “accelerate the rate of innovation and delivery of value-added solutions across the entire E&P spectrum.”
Halliburton president and CEO, Dave Lesar said “In order to capture value early in the reservoir life cycle, our customers need to speed-up their workflows. The acquisition and integration of Magic Earth’s software with Landmark’s data infrastructure and software tools will provide a best-in-class solution to the industry. This strategic acquisition is not expected to be dilutive to earnings in 2001, and is expected to be accretive next year.”
Landmark president and CEO John Gibson added “We are preparing for another quantum leap in the volume of data from the emerging digital oil fields or ‘E-fields.’ Magic Earth, in conjunction with other Landmark offerings, will enable our customers to meet the challenge of managing, browsing, interpreting and making real-time decisions based upon these vast volumes of data.”
Magic Earth CEO Mike Zeitlin concluded, “With a powerful partner in Halliburton and Landmark, Magic Earth will further accelerate its rate of innovation and deploy better, more fully integrated solutions to the global E&P market.” Under the agreement, the Landmark and Magic Earth brands will remain separate, but Magic Earth will become a wholly-owned subsidiary of Halliburton.
© Oil IT Journal - all rights reserved.