Structuring agreements for seismic group shoots

Sigma Explorations Inc. sells licenses to use Sigma owned seismic data. The company participates with exploration and production companies in the joint acquisition of semi-private participation surveys. This paper discusses three major types of seismic group shoots and the essential elements of the agreements that govern or should govern them. They are: (1) exploration and production company joint ventures, (2) publicly offered spec shoots, and (3) semi-private participation surveys. The key issue with the exploration and production company joint ventures is that the companies are owners of the seismic data in proportion to their contribution towards the cost of the program. Their use of the data should be restricted to those situations permitted by the other owners. These are not often well documented, and there is much concern in the industry as a result. The key issue with publicly offered spec shoots is that the seismic company ultimately owns the data and the client exploration and production company is a licensee and must behave as such. In most such cases the rights and responsibilities are well documented in formal agreements that are signed in advance of the program's beginning date