Lysaker, 3 August 2020
Due to COVID-19, their exists significant uncertainty around the OBN market in H2-2020. In line with the company’s asset-light and cost-flexible business model, Axxis Geo Solutions (AGS) will transition to a reduced operational mode following its current surveys in the North Sea and Egypt. AGS will enact a “smart stack” model which will significantly limit run-rate expenses until the market rebounds but will still allow for quick mobilization to new projects.
*Vessels, nodes, and other key equipment maintained in a state of readiness
Agreement with key partners to allow for vessels and equipment to be ready and
available for quick mobilization at minimal cash cost
*Onshore staff headcount reduced by approximately 20% whilst maintaining core positions, business development and tendering activities
*Retention of key crew personnel to allow for quick mobilization
The company expects to reduce its cash run-rate to less than $800,000 per month in smart-stack mode.
Should further work not materialise prior to the end of Q3, further reductions should be made which will reduce its cash run-rate to less than $400,000 per month.
Contacts
Lee Parker, CEO
lee.parker@axxisgeo.com
+1 832 275 7258
Nils Haugestad, CFO
nils.haugestad@axxisgeo.com
+47 977 04 439
About AGS
Axxis Geo Solutions (AGS) is a pure-play ocean bottom node seismic company uniquely positioned to pursue both contract and multi-client seismic. AGS specializes on delivering tailored seismic solutions and flexible project management and execution to oil and gas companies world-wide. Its operations are based on a scalable asset-light setup through chartering of vessels and nodes to complete seismic surveys.
AGS is listed on Oslo Axess and traded under the ticker AGS.
More information on www.axxisgeo.com