Offshore Hydrocarbon Mapping, the exploration technology firm, announced a big increase in first-half revenues, and chief executive Dave Pratt hinted the company was poised to hit the acquisition trail.
Aberdeen-based OHM said turnover increased 70% to £7.6m in the six months ended February 28 compared with the same time last year, in a development analysts said reflected the fact its innovative surveying techniques were catching on in the industry.
OHM claims that the technology it has developed to use electromagnetic imaging to identify deposits, cuts down the risk of drilling dry holes compared with longer-established seismic methods.
While oil and gas firms are renowned for being wary of new technology, Pratt said the company has been winning endorsements from growing numbers of firms.
Around 20 companies, including majors and independents, had used, or planned to use, controlled source electromagnetic imaging technology (CSEM). OHM is working on projects ranging from the North Sea to south-east Asia.
Pratt said OHM would be increasing capacity and marketing activity to make the most of the increased interest.
Asked whether OHM might be considering acquisitions or diversification to accelerate its development, he said: "Ask me that in a month."
Pratt declined to comment further but indicated that OHM was keen to acquire the capability to offer complementary services. He said the CSEM techniques fitted well with other technologies used by geophysicists to get a better idea of what lay below the Earth's crust.
OHM has been asked to help firms integrate data from a range of sources.
The company has been generating increasing amounts of cash from operations. It had £4.7m cash reserves at February 28, up £1.3m from the year-end.
OHM could be helped by the fact its share price has doubled since March, when Electromagnetic Geoservices, a Norwegian rival, abandoned a patent infringement claim.
OHM's preparations for a flotation on the Alternative Investment Market in 2004 were complicated by reports of a row with Statoil of Norway about some of the intellectual property it used.
Pratt confirmed yester- day that there were no actions outstanding against the company.
Shares in OHM closed up 1.5p at 231.5p.
The recent rise in the share price could make it easier to raise more money from the market or offer shares to targets.
In a note, analysts at Teather & Greenwood said the increase in revenues showed how well the CSEM technology was being adopted by firms.
Pre-tax losses widened to £1.2m, from £800,000 in the first half last year.
OHM said profits had been hit by the postponement of an exploration licensing round offshore Norway, which delayed sales of data it had accumulated, and by downtime experienced while upgrading equipment.
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