Getech Group announce new contract worth $2m
Getech (AIM; GTC), the geoscience business specialising in the provision of data, studies and services to the oil, gas and mining exploration sectors, announces it has won a major new contract with a total value of $2m.
As indicated in the trading update released on 10th June 2014, whilst several significant contracts were expected to be signed before the end of the current financial year, predicting the timing of these contracts remained difficult. The Company is therefore pleased to announce that it has signed a major contract with a leading US oil and gas independent valued at $2m. This contract includes:
· renewal of the Globe subscription which will cover the second period of Globe from July 2014 to July 2017
· a long term licence for regional high resolution gravity and magnetic data
· subscription to our global depth to basement project which started in April 2014 and is planned to complete in Q4 2015
Whilst the Company believes this contract illustrates the compelling value proposition its products have in its key target markets, due to the Company’s revenue recognition policy, the majority of the income under this contract will be realised in future years. This does not therefore affect the financial expectations of the Company outlined in the announcement of 10th June 2014.
Raymond Wolfson, Chief Executive of Getech Group plc, said: “This order is from an existing Globe client and although the income had been substantially factored into our expectations, we are extremely pleased that the contract is now signed. We remain confident that further significant contracts will also be signed in the near future. This brings the value of new contracts signed in the period since mid-May 2014 to over $3m and, given that much of the income will be recognised after this year, contributes to providing a sound base for the future.”
Source: Getech Group