TGS-NOPEC is to acquire Calgary-based Divestco’s Riley Electric Log unit along with about 1.2 million depth-calibrated images of Canadian logs and a software license. The deal is worth about $9 million cash. Riley’s collection of 3 million US hard copy logs was bought last year for $4 million by International DataShare Corp—which merged into Divestco earlier this year.
TGS plans to merge the acquired assets into its Houston-based A2D unit. A2D president David Kotowych commented, “This acquisition accelerates the completion of our US digital well log inventory, adding tremendous value to the total well log solution we provide for our customers in this market.”
TGS president Hank Hamilton told analysts that it would likely “take some time” to realize the benefit from the acquisition— “Rileys has a large inventory of paper logs. We need to get these into a digital format and this won’t happen over night”. Hamilton stated that further guidance on the deal would be supplied after the transaction closes at the end of the year.
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