ION Geophysical Corporation IO is all set to commence the second phase of its North Sea 3D multi-client survey program, subsequent to the completion of the initial phase that began in August 2020.

The program covers one of the few inadequately-examined sections of the prolific UK Continental Shelf, which is now an industry-focus area, following the recent play-opening wells with attractive development costs. Notably, the majority of the 11,000 square kilometers survey will be acquired this summer, resulting in a six-times-larger area than the previous phase.

Since the start of the program, additional underwriting was ensured and an extra acreage was awarded within the survey area. This validates the benefits of the program and expands the potential client base for the new data asset. The field data for the additional acreage will be collected from late April to mid-October 2021 with the help of the Shearwater vessel. Notably, ION Geophysical picked Shearwater to acquire the data for the second phase as well.

The North Sea multi-client program reflects the continuous improvement of the company’s major goal to participate in the 3D new acquisition multi-client market. Hence, the extensive second phase will be more substantive and incremental to the company’s earnings.

The survey is significantly higher than any existing 3D data nearby, which offers new environmental insights to inform investment and development decisions for the entire play. On its part, ION Geophysical’s top-tier imaging and Shearwater’s modern acquisition technology developed excellent subsurface images that displayed new insights into this complex Zechstein play.

Company Profile & Price Performance

Headquartered in Houston, ION Geophysical is a leading provider of geophysical technology, services and solutions for the global oil & gas industry.

Shares of the company have underperformed the industry in the past six months. The stock has gained 12.7% compared with the industry’s 47.2% growth.

Zacks Rank & Stocks to Consider

ION Geophysical currently has a Zack Rank #4 (Sell).

Some better-ranked players in the same space are Crescent Point Energy Corporation CPG, Diamondback Energy, Inc. FANG and Chevron Corporation CVX, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Crescent Point’s earnings for 2021 are expected to rise 12.1% year over year.

Diamondback’s earnings for 2021 are expected to rise 13.1% year over year.

Chevron’s earnings for 2021 are expected to increase 13.9% year over year.