Marine Imaging Systems (Streamer & Seabed)

Transcription

1 Marine Imaging Systems (Streamer & Seabed) Investor Education Series Presented by Jeff Cunkelman, VP Marketing (Marine Imaging Systems) May 2010

2 FORWARD-LOOKING STATEMENT The information included herein contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of Actual results may vary fundamentally from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include risk factors that are disclosed by ION from time to time in its filings with the Securities and Exchange Commission.

3 Today s Discussion Offshore E&P Context The Towed Streamer Market ION s Intelligent Acquisition [IA] Approach The Seabed Market Go-forward Projections and Strategy [ 3 ]

4 Marine Seismic Data Acquisition Two Techniques Towed Streamer, Seabed Towed Streamer Re-deployable Seabed* * Sometimes referred to as ocean-bottom cable (OBC) [ 4 ]

5 Market Sizing Marine Acquisition Services Growth Expected to Resume, Towed Streamer Dominates Revenue, $ (Billions) CAGR = 7.5% Seabed Towed Streamer [ 5 ]

6 Global Distribution of Marine Seismic Activity Estimated Share of 3D Data Acquired in 2009 by Basin 15% 6% 4% 10% 16% 11% 11% 15% 27% Share of 3D activity [ 6 ]

7 Example Project Requirements by Basin Technology Complexity of Marine Programs Increasing Worldwide Harsh Arctic Time-lapse (4D) North Sea Wide-azimuth Gulf of Mexico Deep water Brazil Sub-salt W. Africa Strong currents Australia [ 7 ]

8 Today s Discussion Offshore E&P Context The Towed Streamer Market ION s Intelligent Acquisition [IA] Approach The Seabed Market Go-forward Projections and Strategy [ 8 ]

9 Imagining the Scale of a Towed Streamer Survey 16 x 12km Spread Configuration Overlaid on Manhattan 16 x 12 towed streamer spread configuration [ 9 ]

10 Multiple Towed Streamer Subsystems ION Provides a Complete Portfolio of Technologies DigiFIN Lateral Control DigiSTREAMER Acquisition System DigiSHOT Source Control Orca Command & Control Sleeve Gun Source DigiRANGE II Acoustic Ranging DigiBIRD Depth Control [ 10 ]

11 Distribution of Technology Costs by System Streamer Systems ~50% of Total $50 Million Capital Cost 100% = $52 Million 12.4 Assumes 8 streamer vessel (8 km streamer cable length) Orca DigiSHOT SleeveGun DigiSTREAMER Acquisition System Positioning System DigiFIN DigiBIRD DigiRANGE 6 Source System Command & Control System Other* *Other includes technologies ION doesn t provide: compressors, streamer reels, etc. [ 11 ]

12 A Growing Market Driven by More Vessels Carrying More and Longer Streamers Vessel count Streamer km 180 Towed Streamer Fleet 9, Capacity Range: 30 8,000 7, ,000 5,000 4,000 3,000 2,000 1,000 Hi 3D Hi 2D/Low 3D 2D Streamer Km High Streamer Km Low Source: Internal estimates [ 12 ]

13 Market Supports $800 M in Annual Revenues Available Market to ION Smaller: In-house Systems Developed by Vessel Operators Approx. $300M 100% = ~ $800M / year Command & Control System (Orca) Positioning System (DigiFIN, DigiRANGE II, DigiBIRD) Source System (DigiSHOT, SleeveGun) Approx. $500M Acquisition System (DigiSTREAMER) Unavailable Market [ 13 ]

14 Today s Discussion Offshore E&P Context The Towed Streamer Market ION s Intelligent Acquisition [IA] Approach The Seabed Market Go-forward Projections and Strategy [ 14 ]

15 Goals of ION s Intelligent Acquisition Approach Align with Priorities of Vessel Operators, E&P Firms Mitigate HSE risks Improve data quality Reduce cycle time Reduce costs [ 15 ]

16 Intelligent Acquisition [IA] is Differentiated Relies on High Levels of Software-driven Integration Traditional Industry Approach [Intelligent Acquisition] Simple survey geometries Single vessel operations Disparate streamer sub-systems Limited sub-system connectivity (manual, human-driven integration) Complex survey geometries Multi-vessel operations Integrated streamer sub-systems Extensive sub-system connectivity (automated via software) [ 16 ]

17 An Analogy for Intelligent Acquisition Commercial Aviation and System-wide Control via Auto Pilot Navigation Plan Central Control and Diagnostics Dynamic Positioning Horizontal Vertical Commercial Aviation Flight Plan Auto Pilot Tail Rudder Wing Flaps Towed Streamer [IA] Survey Plan Orca DigiFIN DigiBIRD [ 17 ]

18 [IA] in Action Orca Software Steers the Streamers via DigiFIN ( Auto Pilot ) [ 18 ]

19 Today s Discussion Offshore E&P Context The Towed Streamer Market ION s Intelligent Acquisition [IA] Approach The Seabed Market Go-forward Projections and Strategy [ 19 ]

20 Conceptualizing a Seabed Acquisition System ION Provides Sensors, Recording Systems, Software Tail Buoy Gator VectorSeis Ocean Cable Section MEMS Sensor [ 20 ]

21 Benefits of Seabed Marine Acquisition Using the VSO Platform versus Other OBC Systems Improved productivity Buoy-based recording Gator integrated navigation and seismic control Robust steel cable maximizes uptime Reduced HSE exposure Elimination of recording vessel Elimination of manual handling system Superior imaging VectorSeis sensor records high-fidelity pressure wave and shear wave data (improved bandwidth) Proprietary cable de-tensioning enhances data quality [ 21 ]

22 Data Quality Comparison VSO versus Towed Streamer Towed Streamer VectorSeis Ocean [ 22 ]

23 Seabed Services Market Sizing Steady Growth, ION s VSO Supports ~50% of Service Provider Revenues Revenue, $ (Millions) 600 CAGR = 9% Competition ION Equipment Note that this is NOT annual ION VSO equipment revenue, but the estimated revenues generated by providers of Seabed (OBC) acquisition services segmented by type of technology platform used, including nodes [ 23 ]

24 Today s Discussion Offshore E&P Context The Towed Streamer Market ION s Intelligent Acquisition [IA] Approach The Seabed Market Go-forward Projections and Strategy [ 24 ]

25 Marine Systems Revenue Projection Double Digit Growth Coming Off Trough Revenue, $ (Millions) CAGR = 13.7% Concept Systems Seabed Towed Streamer [ 25 ]

26 Summary of Today s Discussion ION equipment sales expected to exceed growth rates of rebounding services markets. Operational and imaging challenges necessitate improved technologies and integrated systems. ION s integrated [IA] platform is uniquely suited to efficiently execute complex surveys in challenging environments. ION s VectorSeis Ocean platform is delivering improved reservoir-level insights with continually improving operational performance. [ 26 ]

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