Untitled - norsar

Business concept
NORSAR Innovation AS has been given a legal right to commercially
exploit the intellectual property of its mother company, the independent
research foundation NORSAR.
Encouraging the use of NORSAR seismic modelling in the petroleum
industry under the slogan “insight through modelling” is an important
promotional task for NORSAR Innovation AS. The goal is to spread the use
of NORSAR seismic modelling not only in the high-tech and demanding
research units of the client companies, but also in the routine work of
geoscientists within the whole seismic exploration value chain ranging from
survey planning to processing and imaging, interpretation, and seismic
reservoir characterization.
NORSAR’s software product portfolio consists of NORSAR-2D® and
NORSAR-3D® for 2D and 3D seismic modelling respectively, and VelRock®
for petrophysical (rock physics) modelling.
NORSAR-3D is the most advanced Ray Tracing package available.
Used by the Major Oil companies and Service companies alike, it provides
answers to key acquisition and processing questions, including feasibility
studies, survey planning and travel time calculation. Among the advanced
features making NORSAR-3D the market leader are; Anisotropy in layered
models, rapid assessment of offset and azimuth infl uence on AOI illumination
and the Simulation of Migration Amplitudes for informed interpretation
decisions.
NORSAR-2D is a powerful tool to better understand your seismic data
using advanced ray tracing technology. You can evaluate your model
by comparing synthetic results with the actual seismic data or with your
interpretations. Complicated tectonic structures and lateral or vertical velocity
changes are easily modelled. NORSAR-2D has easy data import and export,
through an OpenSpirit link allowing communication with interpretation
stations and mapping software, as well as with processing packages.
A special version of NORSAR-2D tightly integrated with Nucleus is also
available.
A new and innovative software system for rock physics and seismic
reservoir characterization is currently being prepared for introduction to
the market. The new software will be marketed under the brand name
SeisRoX®.
SeisRoX is a new software suite developed by NORSAR that can be
used to model the seismic response and corresponding seismic attributes
at detailed reservoir scale. Each module can be used to provide innovative
solutions to the problems faced by the E&P scientist. However, the true
benefi t of SeisRoX is realized when the modules are integrated to provide
the user with a robust, effi cient and fl exible workfl ow. In this format, the
software guides the user from the generation of the rock physics model
through to the simulation and analysis of the 3D PSDM seismic image. This
approach is particularly useful for investigating the seismic sensitivity to
geological properties, seismic properties and reservoir geometry.
NORSAR Innovation AS will continue to highlight NORSAR software in the
petroleum market by regularly attending the major geophysical exhibitions
and selected smaller events as well as by advertising in key industry
journals.
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Customers
NORSAR seismic modelling is currently being used by oil and gas
companies, seismic contractors, exploration consultants and universities
globally.
NORSAR seismic modelling is increasingly applied in the planning of
seismic surveys for structurally complex targets, as a QA tool prior to and
during surveys, and in the processing of data. Model-based processing and
interpretation may be a future growth area.
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Report from the Board of
Directors 2006
NORSAR Innovation AS is a wholly owned subsidiary of the independent
research foundation NORSAR. The objectives of the company are profi ling,
marketing and sale of research projects, services and software products,
commercial administration, and possible ownership of the intellectual
property and portfolio of software products developed by the independent
research foundation NORSAR, as well as ownership in other businesses.
NORSAR Innovation AS has been granted a legal right to commercially
exploit the intellectual property of the independent research foundation
NORSAR. The company is set up to develop and refi ne mercantile
competence and use this competence and the company’s revenues to
produce and introduce advanced commercial software products in the
petroleum market.
The operations in 2006 have concentrated on marketing and sale of
software products, organization of internal infrastructure, cooperation with
other companies, establishing of an international marketing and sales
network, and providing courses and services.
NORSAR Innovation is located at Instituttveien 25, N-2007 Kjeller, Norway.
The company became operational 1 October 2005.
Economy
Gross revenues during 2006 were 12.89 MNOK (2.67 MNOK in 2005).
The operating profi t was 0.22 MNOK (-0.33). Financial transactions summed
up to -0.10 MNOK (0.05) and reduced the overall profi t before tax to 0.11
MNOK (-0.28).
By the end of 2006 the capital assets of NORSAR Innovation AS were
12.3 % of the total assets (18.8 %). The cash fl ow of the company is
considered to be suffi cient in the near future.
The board of directors considers the annual accounting report to present
a correct view of NORSAR Innovation’s assets and obligations, fi nancial
situation and operating profi t.
Perspectives
The year 2006 represents the fi rst full year of operation for NORSAR
Innovation AS. The company has professionally advanced and strengthened
the goodwill of the mother company in the market and contributed to
a widening of the two companies’ joint interface with customers and
cooperating partners.
The core activities of NORSAR Innovation are commercialization,
marketing and sale of advanced software for seismic modelling. The
introduction in 2007 of new software for advanced rock physics and seismic
modelling of petroleum reservoirs in parallel with expanding existing
products into new markets by an increase in staff and new sales channels
is an important task for the company. It is most important that NORSAR
Innovation by its software sales secures a fi nancial basis for the purchasing
of research and development projects from the mother company as well as
supporting joint industry research projects with participation of the mother
company.
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In 2006 NORSAR Innovation AS, Campus Kjeller AS and Holberg
Research AS founded the new company Seismic Innovation AS. The
objectives of the company are development, marketing and sale of software
for seismic imaging and related activities. NORSAR Innovation is a 45%
shareholder of the new company and is anticipating a development of
Seismic Innovation leading to business transactions as well as a general
increase of value.
The board considers the future prospects for NORSAR Innovation to
be promising and continued operation is assumed in connection with
presentation of the annual accounting report.
Personnel and working environment
By the end of 2006, NORSAR Innovation had two employees and a total
of two man-years of work were conducted during 2006. NORSAR Innovation
has adopted and follows the mother company’s administrative instructions
and regulations for internal control, HSE-work and quality assurance.
NORSAR Innovation is an equal opportunity employer and has
established working conditions that provide equal opportunities for male and
female employees with regard to recruiting, conditions of employment and
possibilities for professional development and advancement.
The sick leave was 0.8 % in 2006. No accidents or injuries have been
recorded in connection with NORSAR Innovation’s activities during the year.
The company does not pollute the surrounding environment.
The board of directors thanks the employees for their valuable contribution
in the fi rst full year of operation of the company.
Kjeller, 12. april 2007
Hege M. Nordgård Bolås Bjørn Grandal Annik M. Myhre
Styreleder Styremedlem Styremedlem
Tore Olsen Pran Ketil Åstebøl Anders Dahle
Styremedlem Styremedlem Adm. direktør
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Profi t and Loss 2006
2006 2005 (Oct-Dec)
Sale of software 12 335 188 2 469 905
Project income 550 667 198 765
Total operating revenues 12 885 854 2 668 670
Salaries and social costs 1 334 222 405 877
Project costs 8 410 987 1 992 775
Administrative expenses 2 924 433 599 389
Total operating expenses 12 669 642 2 998 041
Operating result 216 212 -329 372
Net fi nancial transactions -101 517 46 341
Ordinary result before tax costs 114 695 -283 031
Tax cost on the ordinary result -191 886 - 79 248
Annual net result 306 581 -203 783
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Balance 2006
2006 2005 (Oct-Dec)
Assets
Postponed tax advantage 271 134 79 248
Shares in associated company 54 000 0
Accounts receivable 4 760 479 2 588 632
Other short-term receivables 1 519 305 520 566
Cash, bank deposits 2 371 414 1 035 277
Total assets 8 976 333 4 223 723
Equity
Basic capital 200 000 200 000
Share premium reserve 596 217 596 217
Other equity 306 581 0
Total equity 1 102 798 796 217
Liabilities
Accounts payable 7 517 200 2 831 620
Tax withholding reserves 150 073 91 453
Other short-term liabilities 206 263 504 433
Total liabilities| 7873 535 3 427 506
Total equity and liabilities 8 976 333 4 223 723
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Tel: +47 63 80 59 00
Fax: +47 63 81 87 19
Website: www.norsar.no
Email: sales@norsar.no