Octave Reservoir Technology Signs Joint Development and Marketing Agreement With US Sensor Systems

Date Announced: 15 Oct 2010

Real-time Efficient Monitoring Optic Sensors Will Target the Exploration and Production Markets.

NORTHRIDGE, Calif., Oct. 15 /PRNewswire-FirstCall/ -- US Sensor Systems Inc. (USSI), a subsidiary of Acorn Energy (Nasdaq: ACFN), announced today that it has signed an agreement with Octave Reservoir Technology, whereby USSI will develop a custom miniature fiber optic geophone (MFOG) for use in Octave's seismic reservoir monitoring system, which will be sold by Octave to the Exploration and Production (E&P) markets. Octave is a leader in providing real-time microseismic reservoir monitoring solutions within the oil and gas and the closely associated Carbon Capture and Storage (CCS) and geothermal industries.

The agreement provides a framework for a long term supply agreement whereby USSI will develop the proprietary MFOG specifically for Octave's slimhole tool, and will build optical sensor arrays to support their services. The combination of the USSI's best in class fiber optic sensor technology with Octave's superior service model will allow Octave to deliver a cost-effective, competitive reservoir surveillance service for both passive microseismic surveys and active projects.

"When considering the lack of monitoring solutions for hot deep plays like the Eagle Ford and Marcellus, USSI's fiber technology lets us package a superior tool capable of permanent operation at the very high temperatures and pressures being demanded by oilfield operators. For both on and offshore applications, the decision was evident and clear. We share a common vision for the oilfield and look forward to maximizing the value of this strategic relationship for our clients," stated Scott Taylor, the President of Octave.

"Octave is an ideal channel partner for us," stated Jim Andersen, CEO of US Sensor Systems, "They planned to introduce a new service to the E&P industry but after substantial research, determined that the existing sensor technology was not adequate. After participating with us and reviewing the results from joint tests, they selected our technology for their new Mustang Slimhole tool."

USSI's new fiber optic sensors, powered only by light, are designed to detect intrusions, pipeline leaks, strain, and seismic waves, replacing the existing 50-year old copper wire-based sensors that are in widespread use throughout the oil Exploration and Production (E&P) industry.

Source: Acorn Energy

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