Share this page with someone.

Facebook Twitter LinkedIn Print Email

HOUSTON, June 14 /PRNewswire-FirstCall/ — Input/Output, Inc. (NYSE: IO),
Hydro Technology Ventures (HTV), and privately held Reservoir Innovation AS,
today announced the formation of a joint venture (JV) company for the purpose
of developing, pilot testing, and commercializing a full-wave seismic system
for permanent monitoring of offshore reservoirs. Permanent ocean-bottom
systems enable geoscientists to take time-lapse (4D) measurements of seismic
responses from which they infer both pressure and saturation changes, as well
as fluid movements, within hydrocarbon reservoirs.

According to Arne Froiland, Managing Director of Hydro Technology
Ventures, “Oil and gas will continue to be society’s primary sources of energy
for many years to come. At Hydro, we are committed to recovering these
valuable resources in the most efficient and responsible way possible. Our
constant focus on innovation means that we’re now able to recover oil and gas
that were considered out of reach only a few years ago. Developing advanced
technology has always been the key to our company’s commercial success. For
many years, Hydro has been a pioneer in applying cutting-edge technology on
the Norwegian Continental Shelf and elsewhere around the globe. We see
participation in this JV as a natural extension of our strategy to maximize
resource recoveries, environmental sustainability, and investment returns on
behalf of our stakeholders.”

I/O, HTV, and Reservoir Innovation hold equal shares in the JV company.
I/O will license technology to the JV, contribute key personnel who will be
involved in developing the system, and capture pre-set margins for software
and hardware sold to the venture; this includes VectorSeis(R) full-wave
seismic sensors. HTV will provide the required capital for the development
program and identify an asset within their E&P portfolio upon which to field
trial the initial system.

Bob Peebler, President and CEO of I/O, commented, “We have been assessing
the marine permanent reservoir monitoring opportunity for several years.
However, we needed an oil & gas company to step ahead of the pack and work
with us to develop and field test the system. Close technical and commercial
collaboration with E&P operators has served us well in launching other
breakthrough seismic solutions, like FireFly(R). We are delighted to be
working with Hydro to bring this technology to the market in a timely,
targeted way.”

Bjarte Fageraas, Chairman of Reservoir Innovation (RI), added, “We are
confident that the combination of technologies and personnel from I/O and RI
will speed our time-to-market and enable us to deliver a marine-focused,
permanent reservoir monitoring solution that is better on every dimension than
any alternative that is presently available or contemplated. It is a
testament to Hydro’s broader strategy and commitment to resource development
and sustainability that they stepped forward once again in an attempt to lead
the E&P industry down this exciting new path.”

It is expected that a pilot system will be in place before the end of 2008
on a producing Hydro asset and that, shortly thereafter, the system would be
made available to all E&P operators on a worldwide basis. The business plan
for the JV envisions that the entity will become a broad-based provider of
permanent monitoring solutions for offshore reservoirs, with a scope of
products and services that include: technology consulting; system design,
installation and maintenance (covering both hardware and software); system
operations (including source vessel
management); seismic data processing; and project management throughout the
life cycle of the installation.

About Hydro Technology Ventures

Hydro Technology Ventures (HTV) is the corporate venture capital arm of
Hydro Oil & Energy, a subsidiary of Norsk Hydro ASA, a Fortune 500 energy and
mining company that operates in nearly 40 countries worldwide. HTV was
established in 2001 and has NOK 750 million under management through two
dedicated funds that invest in early- and growth-phase technology companies
within the energy sector.

About I/O

I/O is a leading, technology-focused seismic solutions provider. The
company provides cutting-edge seismic acquisition equipment, software,
planning and seismic processing services and data libraries to the global oil
& gas industry. I/O’s technologies are applied in both land and marine
environments, in traditional 2D and 3D surveys, and in rapidly growing areas
like time-lapse (4D) reservoir monitoring and full-wave imaging. Headquartered
in Houston, Texas, I/O has regional offices in Canada, Latin America, Europe,
China, Russia, Africa and the Middle East. Additional information is available
at http://www.i-o.com.

About Reservoir Innovation

Reservoir Innovation is a privately held company based in Bergen, Norway.
Reservoir Innovation focuses on identifying, developing, and commercializing
breakthrough technologies for the exploration, development, and production of
offshore hydrocarbon reservoirs. Reservoir Innovation acts as both a
principal and an intermediary, and will bring together relevant, best-in-class
technical and commercial partners on a project- or company-dedicated basis.

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 1934. 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 I/O from time to time in its filings with the Securities and
Exchange Commission.

CONTACTS
Hydro Technology Ventures
Public Affairs Manager
Nermoen Lars
+47 22536379
Lars.Nermoen@hydro.com

I/O (Financial community)
Chief Financial Officer
Brian Hanson, +1 281.879.3672

I/O (Media affairs)
Director – Corporate Marketing
Kelly Kline, +1 281.879.3593
kkline@i-o.com

Reservoir Innovation
Chairman
Bjarte Fageraas
+47-90626401

SOURCE Input/Output, Inc.

Web site: http://www.i-o.com
(IO)