Argeo and Shearwater aim to jointly transform the subsea and ocean bottom node (OBN) seismic service sectors through the application of state-of-the-art patented technology and continuous operational excellence to accelerate efficiency gains across core markets.
Transaction highlights
- Argeo has entered into a Memorandum of Agreement (MOA) to acquire the seismic vessel SW Bell (Ulstein SX124 X-BOW) from Sheerwater for USD 6 million in cash plus 20,123,625 shares in Argeo
- The vessel (to be renamed) will be converted from a towed streamer seismic vessel to a full subsea Inspection, Maintenance and Repair (IMR) vessel
- Argeo has received an indicative outline for bank loan financing of USD 12 million where use of proceeds is USD 10 million allocated to the purchase and conversion of the vessel and USD 2 million as a credit facility.
- Argeo and Shearwater have signed a letter of intent (LOI) for a long-term Capacity Agreement (“the Capacity Agreement”) which will enable Shearwater to hire vessel capacity from Argeo for Shearwater’s OBN operations.
- Shared ambition of jointly developing projects and clients within carbon capture, marine minerals and offshore renewables.
- The Transaction is endorsed by the Board of Directors of both companies
- Shearwater will upon completion of the Transaction appoint one board member to the board of Argeo
Trond Figenschou Crantz, the CEO of Argeo, comments; “We leverage our vessels and equipment to provide greenfield exploration, inspection and maintenance services and comprehensive ultra-deep-water surveys at a global scale. This alliance with Shearwater, combined with the previously announced expansion of our Hugin Superior fleet, ensures a substantial increase in capacity and our ability to drive future growth. We expect the Capacity Agreement with Shearwater to provide increased utilization and open for further expansion into new markets.”
Irene Waage Basili, the CEO of Shearwater, says; “We are excited about teaming up with Argeo in this unique alliance between marine seismic and subsea to push the boundaries of the rapidly growing OBN market. Argeo is a strong and respected partner with unique technology and competences which will help accelerate the development of new OBN deployment vehicles and methods. The alliance has significant strategic potential, and we look forward to exploring synergies in our respective markets together with the experienced Argeo team in the coming years.”
