Geokinetics Inc

(AMEX: GOK)

Industry: Oil Equipment & Services
On the web: http://www.geokineticsinc.com
Employees: 3,700

Geokinetics Inc is an experienced full-service, global provider of seismic data acquisition services complemented by seismic data processing and interpretation services. The Company provides a suite of geophysical services including both three-dimensional and two-dimensional seismic data surveys, data processing and interpretation services and other geophysical services for customers in the oil and natural gas industry, which include many national oil companies, major international oil companies and smaller independent exploration and production companies. In addition, Geokinetics performs work for seismic data library companies that acquire seismic data to license to E&P companies rather than for their own use. The Company is organized into two reportable segments: seismic data acquisition and seismic data processing and interpretation. Geokinetics further breaks down its seismic data acquisition segment into two geographic reporting units: North American seismic data acquisition and international seismic data acquisition. Geokinetics seismic data acquisition operations are conducted mainly by three wholly-owned subsidiaries: Geokinetics USA, Inc., Geokinetics Exploration, Inc. and Geokinetics International Holdings, Inc. Through these subsidiaries, the Company engages in seismic data acquisition services in land, transition zone and shallow water environments on a contract basis for its customers. Geokinetics equipment is capable of collecting 2D, 3D and multi-component seismic data. Geokinetics has a combined recording capacity in excess of 122,500 channels that could be configured to operate up to 25 crews worldwide. Most of the Company's seismic data acquisition services involve 3D surveys. The crews are scalable and specially configured for each project the number of individuals on each crew is dependent upon the size and nature of the seismic survey requested by the customer. Seismic data acquisition services contracts, whether bid or negotiated, provide for payment on either a turnkey or term basis, or on a combination of both methods. A turnkey contract provides for a fixed fee to be paid for data acquired. Such a contract causes the Company to bear varying degrees of business interruption caused by weather delays and other hazards. Geokinetics seismic data acquisition services are performed outdoors and are therefore subject to seasonality. The Company also provides a full suite of onshore and offshore proprietary seismic data processing and interpretation products and services to complement its data acquisition services. Geokinetics seismic data processing operations are conducted by Geokinetics Processing, Inc., a wholly-owned subsidiary. Seismic data is processed to produce an image of the earth's subsurface using proprietary computer software and internally developed techniques. The Company's seismic data processing and interpretation centers in the United States and the United Kingdom process 2D and 3D seismic data acquired by its own crews as well as data acquired by other seismic data acquisition companies. The Company's seismic data acquisition services and seismic data processing and interpretation services are marketed from various offices around the world. Seismic data acquisition services and seismic data processing and interpretation services contracts are obtained either through competitive bidding in response to invitations to bid, or by direct negotiation with a prospective customer. Geokinetics main competitors in the seismic data acquisition services segment include Bureau of Geophysical Prospecting, WesternGeco, Compagnie Generale de Geophysique-Veritas, Dawson Geophysical Company, Petroleum Geo-Services ASA, Tidelands Geophysical Company and Global Geophysical, Inc. The Company's operations are subject to numerous international, federal, state and local laws and regulations.