Offshore Hydrocarbon Mapping has announced a credit facility of up to £1.25million.
The Aberdeen company said it had agreed terms with affiliates of its two largest shareholders, East Hill Hedge Fund and Euro Trans Skips.
OHM is a specialist in controlled-source electromagnetic (CSEM) imaging surveys for the oil and gas industry.
The firm said on Thursday that it last month referred to the possibility that further sources of funding may be needed in the event that the increasing level of inquiries and tender activity failed to result in a flow of profitable orders.
OHM added: “While the group’s strategic partnership with the Bureau of Geophysical Prospecting in China has already yielded its first survey offshore Equatorial Guinea, which is now well under way, two other significant CSEM opportunities which we had been anticipating to convert into contracts by this stage have now been delayed until 2010 due to reasons beyond the company’s control.
“To increase our cash reserves to be able to accommodate these delays, the company has put in place a credit facility to provide funding to its main CSEM trading subsidiary, OHM Ltd, to help it continue to take advantage of the continued flow of CSEM opportunities – several of which have already been identified as revenue-generating projects, which we continue to see.”
Richard Cooper, OHM’s chief executive, said: “OHM is very pleased to have the continued support of its two largest shareholders. Backlog of seismic reservoir characterisation projects within our Rock Solid Images subsidiary remains at a high level, and we continue to grow backlog in the CSEM processing division of OHM Ltd.
“However, the acceleration in growth of our marine CSEM business has been slower than anticipated and we are pleased to have this additional financial cushion available to help us develop this market.”
Shares closed down more than 7% at 8.75p on Thursday.