Rocksource ASA (OSE: RGT), today announced that the company has engaged an investment bank as financial advisor to assist the company in evaluating strategic alternatives for its subsidiary, the technology company Geotech. Rocksource has strengthened the Board of Geotech and is preparing for commercialisation of services to a wider market.
Geotech, which was acquired by Rocksource in 2005, is a technology company with industry leading knowledge and proprietary software tools for processing and interpreting electromagnetic (EM) data in integration with all other geological and geophysical data. The company has historically provided services towards Rocksource and its partners. With an increasing number of inquiries for Geotech services, the company has now taken a strategic decision to expand its business model and offer services to selected customers in the E&P industry. This is done to capture the revenue potential in the market, and Geotech’s services will be offered to companies that are not in direct competition with Rocksource.Despite historically having limited its business opportunities, Geotech has generated an accumulated net profit after tax of NOK 95 million (IFRS, 2009 unaudited) over the last three years.
As a consequence of the changes within Geotech, Rocksource has further decided to engage an investment bank to assist the company in evaluating strategic alternatives with regards to the future development of Geotech. Whether to bring in industrial and/or financial investors/partners to potentially further accelerate the growth potential of the company will be part of these evaluations, as well as other strategic options for Geotech.
On 4th February 2010 a new Board in Geotech was elected. The new Board constitutes of the following members:
Trygve Pedersen (Chairman), CEO Rocksource ASA, John Howell, CTO Rocksource ASA, Bjarte Fagerås, CEO Octio Group and Erik Skogen, Independent advisor. The external board members Bjarte Fagerås and Erik Skogen are bringing with them vast experience in building leading service companies.
The company is in the process of engaging a CEO that can lead the further build-up of the company.
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