Range of Exploration Services

Our clients and business models at a glance

In our business of Exploration Services, each project is different regarding client’s needs, geological situation, planning horizon, technical parameters, logistics, complexity, risk factors, and action plan, among other things. Therefore, each project will be treated and negioted differently.

This section gives a brief overview of our business models, application areas, clients and customer benefits.

Exploration for water: Customer benefits

Governments, municipalities, public utilities, planning authorities:
  • More water resources becoming available
  • Possibility of better meeting existing and future demands
  • Reducing the risk of shortages
  • Better planning of land reforms
Agricultural estates in demand of water:
  • Revaluation of land owned when there is proof of water => increase of asset prices
  • Expanding the areas under cultivation => increase of total yield
  • Transforming rain-fed areas into irrigated areas => increase of per hectare yield
  • Replacing costly alternatives (building dams and pipelines, purchase water) by own wells
  • Better arguments for negotiating credit arrangements with banks
Land owners, property developers, investors, communities, farmer’s cooperatives:
  • Revaluation of land owned when there is proof of water => increase of asset prices
  • Detailed analysis of opportunities and risks related to availability, quantity and quality of water
  • Informed investment decision based on comprehensive data about water resources
  • Better water rights management
Development banks, international organizations and NGOs:
  • Revaluation of land owned when there is proof of water => increase of asset prices
  • Expanding the areas under cultivation => increase of total yield
  • Transforming rain-fed areas into irrigated areas => increase of per hectare yield
  • Replacing costly alternatives (building dams and pipelines, purchase water) by own wells

Exploration for minerals: Customer benefits

Prospecting and exploration for mineral resources is very costly and often time consuming. It is by far the most important cost factor of exploration companies. As most of pure exploration companies do not have any revenue, financing is the obvious bottleneck in their business model. As they usually do not get financed by banks, cash is provided by equity financing, leading to subsequent dilution of the iniators’ shareholdings by subsequent pre-IPO financing rounds and further capital increases after their initial public offering. Good drilling results that would increase the resource and reserve base are instantly leading to higher stock prices and would allow capital increases at better conditions.

As time and cost savings are very important for exploration companies, our services should be sought after. By finding anomalies or hotspots with our Gamma Exploration method, we can narrow down the best locations for test drillings. In turn, the exploration company can realize a higher success rate by selecting the best locations right from the beginning, and at the same time reduce cost by avoiding bad drillings. This becomes even more important if the availability of drilling rigs is a limiting factor.

Exploration companies:
  • Narrowing down and prioritizing target areas for detailed exploration with expensive methods (i.e. 3D seismic analysis for oil exploration; test drillings for gold exploration)
  • Narrowing down the licensed area (reconnaissance or exploration lisence) before applying for the next higher license with lower acreage
  • Fast results allow compliance with harsh conditions of exploration permits
  • Fast results support capitalization rounds (shorter time, better price, higher probability)
  • Reduced cost for exploration programs becoming mandatory in a low commodity price environment
  • Complementary to other methods
Governments, planning authorities, regulatory bodies:
  • Better basis for negotiating terms and conditions for new oil blocks, as providing more data would allow charging higher prices
  • Extending the body of knowledge

Business models

Classic

Provision of engineering services by man-days, acreage or kinds of service
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Water E&P

Exploration & Production single-handedly; sale of the water to regional water utilities according to long-term  supply contracts. Result: stable cash flows over long periods

Equity stake

Joint venture with project owners, i.e. revaluation of agricultural land by proving water resources; participation in revaluation or better productivity, respectively

Cost savings

We share cost savings with our customers, i.e. by reducing the number of drillings that are needed for success, reduced distribution cost, time savings, etc