ION Geophysical Corporation stock recently traded at $2.61 which is a 22.17% upward movement. The IO stock previously closed at $2.12.
The +20% rise in the IO stock at the time of writing, can be explained by the recent announcement that that IO is all set to initiate Phase 2 of the survey program.
What do companies like ION Geophysical Corporation exactly do?
When Oil and & Gas companies want to perform surveillance operation in the offshore and maritime regions they bring in companies like ION. ION Geophysical Corporation provides services and solutions for the global oil & gas industry by delivering powerful data-driven decision making through innovative technologies. IO provides optimized investment decision for clients through hi-tech analytics, data, and result for maritime surveys, expeditions, and other services.
ION has commenced the North Sea 3D survey
The commencement of the North Sea 3D multi-client survey program’s second phase will cover the sections of the UK Continental Shelf which have not been properly surveyed and examined before. The initial phase of the program started in August of 2020 and had added additional underwriting as well acreage was awarded within the survey area. This brings up incentives for the program to go into the second phase and increase its multi-client base.
The new set of data will be collected from approximately late April to mid-October and cover. It is located in a highly rich hydrocarbon province. What is already positive about the Mid North Sea High exploration was that the data collected has attracted many recent play-opening wells. These play-opening wells also come along with attractive price tag for their development.
What will the second phase incorporate?
IO has planned to cover a massive area almost 6 times compared to the size covered in the initial phase. The 11,000 sq km area coverage is planned to be covered significantly in the coming summers. ION Geophysical Corporation is excited to use Shearwater GeoServices. The acquisition technology of Shearwater will complement ION’s subsurface images produced through imaging. This will please the clients for in-depth insight in the offshore zechstein.
The North Sea’s summer seasons are short which is why the ION Optimization Services team will use the resource of its most latest and effective software called MarlinTM and Orca®. The two softwares will allow the team to extract data from the Ocean currents and nearby activities which will help keep the second phase on track for delivery in Q2 2022.
The significance of 3D data survey for IO’s stock performance
ION Geophysical Corporation is actively participating in the 3D new acquisition multi-client market as it had planned to do. This will boost the operations and the performance of the IO stock. The IO stock performance improvement is expected to be better than the boost during its initial phase for 2 reasons. One is that the success of the initial phase allowed the clients to gain trust and looked forward to the results of a second expedition. Second, the survey is a significantly bigger expedition than the initial one and also more extensive than any 3D data nearby.