USSI is utilizing Acorn’s $500,000 investment to conduct field trials comparing its new fiber optic geophone technology to the current conventional geophones. USSI’s fiber optic geophone system is designed to finally provide the industry with the tools to make the transition from 3D seismic to 4D seismic monitoring feasible, which is expected to increase recoveries from existing oilfields.
USSI’s fiber optic geophone, which is currently in tests, is expected to provide detailed subsurface images of an oilfield. Acorn Energy has acquired approximately 10% of USSI, and has a series of options to acquire up to approximately 84% of the company for aggregate consideration of approximately $6,100,000 in cash and stock through May 2011.
John Moore, CEO of Acorn, said: “The use of technology such as directional drilling, flooding and fracking has been transformational for the oil and gas industry. The 50-year old magnetic coil geophone has reached its economic limit as the industry requires increasing resolution from seismic data in order to drill more precisely.
“The USSI technology represents a breakthrough in both cost and image resolution, and the business and technical team are world-class and internationally recognized in the field. I am confident that this accomplished team will deliver value over time to USSI customers and Acorn shareholders.”
Headquartered in Northridge, California, USSI focuses primarily on designing, integrating, manufacturing, and selling fiber optic sensing systems for the energy and security markets.
