Agreements associated with the JV’s formation and other related transactions were executed by senior executives of ION and BGP late last week in Beijing. The JV company, named Inova Geophysical Equipment, will offer a portfolio of geophysical technologies used in oil and gas exploration.
The offerings include energy source and source control systems, land seismic recording systems, and digital full-wave seismic sensors. Initial products to be marketed by Inova include Aries, FireFly and Scorpion acquisition systems; AHV-IV Vibroseis vehicles; ShotPro and VibPro source control systems; and VectorSeis.
Bob Peebler, CEO of ION, said: “The formation of Inova marks a key milestone in ION’s corporate history. If one were to trace back the roots of all of the predecessor companies that today comprise ION Geophysical, the root that would extend the longest is the one associated with land seismic instrumentation.
“By combining forces with the world’s largest land seismic contractor, we will be providing Inova’s technical team with direct access to the expertise, insights, and global operating footprint they require to design and deliver geophysical instruments that are the most reliable, efficient, and cost effective in the marketplace.”
Inova is now owned 51% by BGP and 49% by ION Geophysical Corporation. BGP paid $108.5m to ION to purchase its 51% share of Inova. In addition, ION issued approximately 23.8 million shares of ION common stock to BGP for a purchase price of $66.6m.
