In pre-market trading today, Geospace Technologies Corporation (NASDAQ: GEOS) increased significantly, rising 11.47% as of the last check to $7.68. Investor optimism started rising after news emerged that Petrobras had granted the company a large contract for a permanent reservoir monitoring (PRM) system in the Mero 3 and 4 oilfield in the Santos Basin of Brazil.
Landmark Agreement for Deepwater Oil Monitoring
Geospace Technologies disclosed that it had secured a multi-year PRM contract from Petrobras, the operator of the Mero field Consortium. The agreement calls for the business to provide and install around 500 kilometers of its OptoSeis PRM system across a seabed area of 140 square kilometers. The Mero oil field is located in a high-priority pre-salt oil basin approximately 180 kilometers offshore from Rio de Janeiro.
The contract, which includes engineering, procurement, construction, and full installation services, is anticipated to start in June 2025. The system will be installed on the ocean floor by Brazilian subsea cable expert Blue Marine Telecom.
Advanced Technology for Enhanced Oil Recovery
Originally created by PGS and purchased by Geospace in 2018, the OptoSeis PRM technology allows for real-time reservoir monitoring and oil extraction optimization. The multicomponent sensors in the system provide excellent signal quality, low crosstalk, and a wide dynamic range. Its performance metrics, including a noise floor well below offshore environmental levels, promise to deliver clearer seismic imagery and more precise reservoir models.
This technology has a proven track record—OptoSeis was previously used in the world’s first deepwater PRM deployment at the Jubarte field, where it significantly improved 4D imaging, well placement accuracy, and production decisions.
Consortium Backed by Global Energy Giants
The Mero field Consortium is made up of the prominent global energy firms Petrobras, Shell Brasil, TotalEnergies, CNODC, CNOOC, and the Brazilian government’s PPSA. Geospace’s selection for this high-value endeavor demonstrates the industry’s confidence in its OptoSeis technology and reinforces the company’s commitment to Brazil’s offshore energy production goals.