Norex Exploration Services Inc.

Norex Exploration Services Inc.

March 03, 2008 17:50 ET

Norex and ARAM Announce Start of First Large Scale Three Component Job

CALGARY, ALBERTA--(Marketwire - March 3, 2008) - Norex Exploration Services Inc. ("Norex" or the "Company") (TSX:NRX) and ARAM Systems Ltd. ("ARAM") today jointly announced the start of a large scale three-component ("3C") seismic acquisition program with one of Norex's U.S. based customers.

3C technology allows clients to acquire shear wave seismic data in addition to the conventional pressure wave data currently captured and processed for seismic imaging. The inherent value of shear wave data continues to increase, as for example, it enhances geophysicists' ability to discern the existence of oil versus water in reservoirs. This technology also has advantages over existing 3C technology, and can be deployed on a more cost effective basis than current 3C platforms.

The 3C seismic acquisition program currently being completed entails 12,555 receiver stations over 104 square kilometers and is providing Norex's customer with a unique opportunity to utilize state-of the-art technology to acquire premium seismic data. While Norex and ARAM have deployed this 3C equipment in prior programs, this job marks the first large scale application of this technology for both companies.

"We are excited with the growth opportunities in the United States and Canada that this technology provides. Our customers now have access to 3C technology, with the benefit of the exceptional field service and performance they have come to expect from Norex and its subsidiary Conquest Seismic Services, Inc." commented Paul Crilly, President and CEO.

"ARAM has always focused on providing cost effective seismic acquisition solutions that are robust and geophysically sound. Our latest system release, the ARAM Multi-Component ("MC"), is based on emerging ARIES II technology and is performing exceptionally well in the field. Patches in excess of 10,000 live channels (3,333 three component stations) are currently being recorded in real time. In addition to the large volumes of data being recorded, we are extremely pleased with the ARAM MC's low power consumption, wind and noise resistant packaging, and the system's cost effective and efficient deployment," stated Chris Chamberlain, President and CEO of ARAM Systems Ltd.

Forward-looking Statements

Certain information set forth in this news release, including management's assessment of the Company's future plans and operations, contains forward-looking statements, which are based on the Company's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "believes", "projects", "intends", "continues", "estimates", "objective", "ongoing", "may", "will", "should", "might", "plans" and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. The Company provides seismic data acquisition services and is exposed to a number of risks and uncertainties that are common to companies in the same business.

These risks and uncertainties include demand for the Company's services which is affected by, among other things, the speculative nature of resource exploration and development activities, changes in commodity prices, general economic, market and business conditions; competition for capital and skilled personnel and shortages thereof; the competitive nature of the seismic industry; the ability to keep pace with constantly changing technology; uncertainty in various factors in the oil and gas industry, including the ability to comply with current and future health, safety, environmental and other laws; the general risk inherent to seismic data acquisition activities; risks relating to expansion including pressure on operational and technical resources; risks relating to the reliance on key officers, employees and consultants, including an unexpected loss or departure of any one of them; cancellation of work previously awarded to the Company; the possibility of a conflict of interest arising for the directors and officers of Norex who are participants in other sectors of the oil and gas industry; risks relating to having shareholders who are able to exert influence over the affairs of Norex; the possibility of the need for future financing, which may not be available on favourable terms; the volatility of the trading market for the shares of Norex; actions by governmental or regulatory authorities including increasing taxes and changes in other regulations; and the occurrence of unexpected events involved in resource exploration including, but not limited to, adverse weather conditions and wind. Adverse weather or field operating conditions can also negatively impact field productivity and, as a result, the Company's overall profitability. Certain jobs awarded to the Company are on a "turnkey" pricing basis where the Company bears the risk of lost productivity, increased input and/or subcontractor costs. As a result, factors reducing field productivity and any in increases in the Company's input costs could have a material affect on the Company's profitability.

The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involved a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements.

The information contained in this press release should not be considered all-inclusive as it excludes changes that may occur in general economic, political and environmental conditions. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Investors are cautioned against attributing undue certainty to forward-looking statements. The forward-looking information and statements contained in this press release speak only as of the date hereof and, subject to its obligations under applicable law, the Company does not intend, and does not assume any obligation, to update these forward looking statements if conditions or opinions should change.

About Norex

Norex, and its divisions Conquest Seismic Services and US subsidiary, Conquest Seismic Services, Inc., provide premium 2D, 3D, 4D and 3C land-based seismic data acquisition services in Canada and the United States. Norex is the largest operator of ARAM ARIES® recording equipment in Canada and provides state-of-the-art technology to the North American oil and gas industry. Norex trades on the TSX under the symbol "NRX".

About ARAM

ARAM is a leader in design and manufacturing of the most technologically advanced seismic acquisition equipment in the world. ARAM's manufacturing facilities reside in Calgary with international sales and service centers located in Houston, Beijing, Dubai and Moscow.

Contact Information

  • Norex Exploration Services Inc.
    Mr. Paul Crilly, CA
    President and CEO
    (403) 216-5929
    Norex Exploration Services Inc.
    Mr. Rob Morin, CA
    Vice-President Finance and CFO
    (403) 216-5923