from w-w-bb:

19.01.2007 - Total Rocketscience

The third and final company making up our Risk / Reward trilogy on shares for 2007 has so many investment negatives that most observers might not even give it more than a cursory glance. Although quoted on the London AIM market, it is based on the other side of the World, has reported revenues and cash flow of diddly squat and, more importantly, operates in an area of expertise so deep in boffinland that you need to be at least a 5 star techie to venture anywhere near it.

What originally persuaded us to give it a second look was the fact that legendary Stockmarket investor, Jim Slater, was pouring money into it via several successive rounds of financing. As we all know, Mr. Slater is a qualified accountant and hugely experienced corporate financier but clearly he is more at home in leafy Surrey than in the technologically rarified atmosphere of Southern California. However, he must have gleaned enough about what the company actually did to get extremely excited about it. In fact, by last Autumn, he had grown to like it so much that, to paraphrase the immortal Victor Kiam, he bought the remaining 51 % of the company that his vehicle, Original Investments, didn't already own.

The company in question was VIALOGY and, ever since it was fully reversed into Original just before Christmas, Slater's loyal band of followers have seen their highly speculative penny punt move on to the calculated risk category and been duly rewarded with a 50% shareprice improvement. We first latched on to this situation last April when we wrote a piece entitled The Cisco Kid ( see news archive ). To recap briefly, the company was set up by some brainboxes who had earlier worked together on supercomputing projects for NASA. Led by Dr. Sandip Gulati, the team appeared to have perfected software to detect and enhance extremely weak signals previously obscured by background noise. This may not seem particularly earthshattering to the layman but, apparently, the applications for this technology are not only revolutionary but almost limitless which suggests that an exponential rise in licensing income could well lie ahead.

Big news clearly travels fast on the Eastern seaboard because global behemoths Cisco and Boeing have already enlisted Vialogy to work on 2 major government inspired projects and these are just the ones that the company have been allowed to talk about publicly. As we reported in April, Cisco has contracted Vialogy to help with its IPICS programme which seeks to make sure that all emergency services and government agencies can communicate with each other quickly via computers and phones. The need to address this obvious requirement was highlighted by 9 / 11 when communications between different departments with different systems proved chaotic.

For its part, Boeing has recently confirmed that Vialogy has delivered a tenfold improvement in the accuracy and efficiency of the types of gyroscopes it uses in spacecraft and missile navigational systems. It is also known that both Cisco and Boeing see a major role for the technology in such areas as border controls and missile defence systems. Elsewhere a much smaller Texan company, Evolution Petroleum, is applying the technology to improving seismic evaluation of oil and gas deposits.

This initial clutch of applications is almost certainly just the tip of a very large iceberg that is going to float into view over the next few years and all that is required is a little patience. At todays price of 5.5p, Vialogy is valued at a mere 22m. To justify this valuation, the company would have to be earning say 2 million pretax. With cash reserves of 3 million and its heavyweight partners funding the projects it is involved in, Vialogy should be able to get through to breakeven without further recourse to shareholders. We would expect this stage to be reached sometime over the next 12 months. Thereafter, profits could / should escalate very dramatically as new applications and licensing income start to snowball.

On a two year view, shareholders could be rewarded extremely handsomely indeed. Vialogy is in so many ways akin to last weeks selection, CORAC. Both are now moving from the development stage to commercialization with the scales tipping away from blue sky risk towards the reality of cash flow. Both have mindblowing upside potential yet both have current shareprice action that makes drying paint look positively orgasmic. Although this presents an opportunity for latecomers, it is a frustrating byproduct of both companies involvement with highly sensitive technology and powerful, publicity shy partners. Moreover, the present lack of any meaningful numbers together with the sheer scale of future potential makes any serious stockbroker research well nigh impossible. All this will resolve itself in due course but, as they say in the Grolsch advert, all good things come to those who wait.

VIY seems to have run out of credibility, i suspect because there is still(?) no indication when it might turn into a profitable business ..... is still hold some of these, but really cxannot see good reason to throw more money in ...... chart looks as bad as that for SEO!

Where is this going to..> in a month it has lost 50%.

Waiting for exceptionally good news!

better waing for godot

Aren't we all.

me? .... just waiting for last trump!

ViaLogy Plc ('ViaLogy' or 'the Company')




Start of Oil Exploration Drilling in Texas







London, October 16, 2008 - ViaLogy PLC (LSE:VIY), the AiM-listed technology company, announces that Atascosa Exploration LLC (Atascosa), of San Antonio, Texas, has begun drilling the first of six wells planned on the Charley & Nancy Hundley High Lonesome Ranch in McMullen County, Texas. The location and boundaries of the prospective oil reservoir, including prediction of its size, porosity and volume were determined by the use of ViaLogy's QuantumRD technology. The rock fault is believed to contain a significant oil reservoir.




The initial well is to be drilled to a total depth of 6,000 feet and total depth is predicted to be reached within the next week.

What's the betting they strike water or hot air?

Texas is rich with oil & has 150,000 producing wells.

However one would have thought if there was oil where VIY are drilling, Jock Jason or Digger would have discovered it in the 60's....plus the fact JR never found any there either so it doesn't look good does it ?

'Atascosa is not at all discouraged by this development' said Atascosa CEO John Mullins. 'The drilling outcome was a result of our not informing ViaLogy of the problem the raw data ultimately caused. The QuantumRD analysis was correct based on available data. Atascosa has committed to drill at least three separate prospects using QuantumRD and remains committed to that effort, which will be at an additional cost to Atascosa of $2-3 million dollars. ViaLogy will continue to receive at no cost a 5% Back-In-After-Pay-Out working interest in the first well successfully drilled and completed on each prospect, with the right to participate in subsequent wells under a standard operating agreement.'




ViaLogy CEO, Robert Dean, said: 'The ViaLogy geoseismic team located a significant oil reservoir as predicted, and we consider this a positive milestone in earning proof of concept for QuantumRD. We are moving ahead with Atascosa within 30 days to begin drilling the next two prospects, which we expect will conclusively validate QuantumRD as a breakthrough oil discovery tool.'

Well thats about it its a penny stock now... its the end of the pier.

or off it ...

Jim Slater must be upset having made the wrong investment decision, or did he get out while the going was good?

Moving up can we expect some good news for a change?

Vialogy gets oil prospects cut in Texan deal
MoneyAM
Vialogy has signed a contract with Atascosa Exploration to analyze data from three oil prospects in south central Texas using its QuantumRD technology.

Under the deal, Vialogy will receive a 5% interest in production revenues minus expenses.

CEO Robert Dean, said, 'We are delighted that Atascosa has decided to extend the use of QuantumRD into a broader exploration and production setting that will best show the capability of this technology, provide revenue, and justify a business model that Vialogy can carry forward.'

ViaLogy says it is now making plans to market QuantumRD extensively

RNS confirms their technology works, maybe leading to a significant increase in sales.

Figures taken from todays RNS assumes oil at $40 per barrel..the oil price today is over $50 !

amazing press release, very strong news, they reckon this could have a major impact on the industry, according to the Atascosa oil guy that Vialogy are working for.
In which case, shares should have much further to run.

i confess the prospects are tempting, but was similarly tempted a good while back and got badly singed for my troubles

VIALOGY PLC ('VIALOGY' OR 'THE COMPANY')

VIALOGY TECHNOLOGY DELIVERS LARGE OIL FIND



LONDON, March 23rd, 2009 - ViaLogy PLC (LSE: VIY). ViaLogy announces today that its QuantumRD oil exploration technology and service has been credited with locating a major new oil deposit on the Galba Prospect in South Central Texas. The success marks the operational and commercial validation of ViaLogy's software-based seismic interpretation service for oil and gas reservoir discovery and characterization. The technology accurately predicted the size, location and porosity of three reservoirs.

The successful drilling effort and oil strike based on the ViaLogy analysis located reservoirs at increasing depths estimated to contain a total of over 2 million barrels of recoverable reserves. ViaLogy's contract with Atascosa Exploration LLC, of San Antonio, Texas, for the Galba Prospect foresees multiple wells on the lease, now determined to be 4 or 5, targeted at the three reservoirs and positioned by ViaLogy. The first well, just completed, has located a reservoir with an estimated oil deposit which will produce 153,000 barrels of crude oil (i.e. 35% primary recovery based on an overall actual volume of 460,000 barrels). Atascosa plans extractions of 50% of the recoverable reserves in first three years. Under its contract with Atascosa, ViaLogy will receive a 5% Back-In-After-Payout (BIAPO) working interest. This means that after costs ViaLogy will receive over $300K during the life of this first well (assuming oil price at $40 per barrel). Galba Prospect production will begin immediately. For the entire field, ViaLogy could receive 5% of the 2 million barrels over the lifetime of the field's wells which, assuming an average $40 oil price, would produce around $4 million.

ViaLogy's role in the Galba Prospect project included the design and acquisition of new, high-resolution 3D seismic survey data, integrated geoseismic and geological assessment, and positioning of the drill site. ViaLogy collaborated closely with Atascosa's geology and production team. Oil was found at the depth and with the porosity ViaLogy predicted in the Upper Wilcox formation, and all other parameters conformed to ViaLogy's analysis and its determination of coordinates for the drilling site.

ViaLogy believes that its geoseismic interpretation technology will address a problem faced by the oil industry worldwide - to avoid drilling dry holes. In Texas, only four out of 10 exploratory wells, including those drilled with the aid of seismic, find oil or gas in economically producible quantities. Abortive attempts are costly. According to US Dept. of Energy (DOE) Energy Information Administration (EIA) statistics, the 2006 average cost for drilling an on-shore dry hole in the US was over $450,000. The success of the Galba Project reinforces QuantumRD's value proposition for locating oil reservoirs while lowering the probability of dry holes, and thus reducing the overall cost of exploration.

Working with Atascosa, ViaLogy plans to market the QuantumRD technology and service initially to US independent exploration companies. QuantumRD is a computational technology based on ViaLogy's patented Quantum Resonance Interferometry (QRI), an active signal processing technique capable of significantly increasing the signal to noise ratio of seismic data and improving its value.

Commenting on the Galba Prospect find, Atascosa's Chief Executive, John Mullins, said: 'We're very pleased with the success of this well. We have increased our lease positions at the prospect, and are planning to further grow our collaboration with ViaLogy on Galba and other prospects. Our geology team has been working with the ViaLogy scientists for some months now, and we're highly impressed with the technology behind QuantumRD. The accuracy of the results is remarkable and the payoff is reducing the risk of dry holes.'

He added, 'The quality of the information relating to the size and content of the reservoirs enables us to position the wells to extract the maximum amount of hydrocarbons.'

ViaLogy's CEO, Robert W. Dean, commented: 'Our success in Texas validates QuantumRD, and is a key step in building a services business in the oil and gas industry. We have a potentially global product, but initially we intend to focus our sales efforts for our oil detection technology and services on US-based independent exploration companies. Going forward, we expect it will be attractive to established seismic data companies, oil field services companies, and the oil majors.'