Tesla International's UK and European crew has seen a sustained demand for acquisition services in both the hydrocarbon and minerals sectors. Indicators suggest that this demand will be maintained. Additional applications of seismic data in the areas of gas storage and CO2 sequestration have been active indicating a possible opportunity for growth in previously non-perspective areas of Europe. This crew should be fully utilized for a good portion of 2013 after securing commitments for a number of projects throughout the year. Management is pursuing opportunities to fill remaining gaps in the current 2013 work schedule.
After completing the land phase of a project in the DRC during the first quarter of 2013, Tesla International is in the final stages of mobilizing for the marine phase of the project on Lake Albert. There remains significant interest in the lake zones of the Rift Valley with Tesla International well placed to exploit the transition zone ("TZ") acquisition opportunities in the area. As such the TZ crew is expected to remain busy during a significant portion of 2013.
Tesla International is also in the final stages of mobilizing equipment to Somaliland after securing work on a long-term day-rate project. The start-up of the project has been delayed until June to ensure appropriate security is in place. The project is expected to last through the end of the year with bonus incentives for early completion.
Two key areas of East Africa are expected to see a return to greater activity following political stabilisation and the interest of some of the Major operators in developing their activities in the area. The first key area involves interests along the Great Lakes Trend from Tanzania into Ethiopia. This interest is in chasing analog plays based on the recent discoveries in Uganda and successes in Northern Kenya. The second area of increased exploration activity is near coastal blocks from Mozambique northward to Somalia which are hinged on recent major gas discoveries offshore East Africa. Tesla International expects to be successful in obtaining additional work from both these opportunities and from exploiting some potential new areas of activity to extend its current backlog. In particular, Tesla International has seen and is expecting numerous bids related to the latest concession awards in Kenya and the associated work commitments. Tesla International will also maintain a presence in Islamabad to explore opportunities in Pakistan as well as explore further possibilities in co-venturing with resident entities in other countries such as Libya, Tunisia and Iraq.
The UK technical services office remains steady with a number of in-seam seismic, unconventional gas (coal bed and shale), and geophysical interpretation projects recently awarded and underway with high utilization of capacity expected to continue.
The Jakarta processing office continues to work through a backlog of projects that has seen the office fully utilized through early 2013. Additional opportunities continue to be pursued to maintain backlog.
Tesla Offshore is benefitting from increased activity levels in the Gulf of Mexico. With 2013's Central Gulf lease sale returning to the standard March schedule, a significant increase in opportunities during the fair weather season are expected. Tesla Offshore has a healthy backlog of both turnkey and day rate work as a direct result of last year's lease sale that is keeping multiple vessels occupied. Poor weather in the Gulf of Mexico during April has limited productivity on this work. In late April, Tesla Offshore remobilized two geophysical vessels to continue the large scale day rate exploration projects that were put on hold for the winter months.
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