MTEM, the pioneering company in electro-magnetic surveying for the oil and gas industry, has won its first order to survey the Delhi oil and gas field in Louisiana for Houston-based Natural Gas Systems.

MTEM will also start work in the Canadian province of Alberta on a major project to demonstrate why its technology represents a game-changing standard for global oil exploration. The Alberta project marks the start of a series of global demonstration projects in partnership with oil majors in land locations from Canada to Wyoming and India and the first marine trial is scheduled in the North Sea.

Chief Executive Leon Walker, formerly with oil services group Schlumberger, says: “The message about MTEM’s technology is circulating the globe. Our mission now is to prove its effectiveness, to get our data on the walls of big oil companies and get our clients using it to discover oil and gas.” He added: “Our technology could prove to be the silver bullet the industry is seeking.”

The coming months will mark a critical phase in the company’s evolution from one of the UK’s biggest academic spinouts to an oilfield technology specialist attracting the attention of oil giants.

MTEM has made major strides since it received funding of £7.4 million in November 2004 from Scottish Equity Partners in tandem with Norwegian specialist investors Energy Ventures and HitecVision. David Sneddon, SEP’s Director of Energy-Related Technology commented: “Electro-magnetic surveying is the next big thing to emerge in the global oil and gas industry and MTEM is in a unique position to exploit that trend.”

He added: “It has the right blend of sophisticated technology, proprietary intellectual property and a highly credible management team. MTEM also has a strong financial base underpinning its growth.”

Founded by academics from Edinburgh University’s School of GeoSciences led by Professor Anton Ziolkowski, MTEM recently won both the Deal of the Year in Scottish Business Insider’s Deal and Dealmakers Awards 2005 and the Deloitte Fast 50 Technology Start-up of the Year in Scotland.

The company has steadily been gaining recognition for its revolutionary hydrocarbon survey technology which could radically reduce drilling risks, extend the life of mature oil fields, and save billions of dollars.

MTEM has devised a highly efficient way of measuring the flow of controlled pulses of electrical current and detecting resistivity in geological structures, indicating whether hydrocarbons are present.

Rival companies use electro-magnetic techniques, but their technology is limited to deepwater locations, a major drawback as the majority of hydrocarbon reserves are on land.

MTEM works effectively on land and is also awaiting the results of its first marine trial to demonstrate that it can operate successfully even in shallow water basins, such as the North Sea and Gulf of Mexico.

MTEM has sophisticated techniques to process data. In geophysics, data received from a reservoir is known as the ‘signal’ while everything else is called ‘noise’. MTEM effectively filters out ‘noise’ enabling clients to focus on critical data.

Every time an oil company drills a dry well it costs great deal of money and risks credibility. So technology which minimises risk and cost and maximises recoverable reserves is of great value.

MTEM has assembled a formidable team, including chairman Bruce Dingwall, formerly chief executive of oil exploration company Venture Production, a past president of the UK Offshore Operators Association and founder of Trinidad-based oil exploration company Ten Degrees North Energy Limited.

Dingwall comments: “MTEM is an absolute game-changer. Its technology represents as big a breakthrough as happened with seismic techniques in the early 50s.”

Dingwall is joined by non-executive director Mike Fleming, former chief executive of PES and also WellDynamics. Fleming brings to MTEM extensive operational skills and experience.

Less than a year ago MTEM comprised three staff. Now there is a 27-strong team, as well as small crews to work alongside sub-contractors.

As the global hunt for new hydrocarbon reserves intensifies, MTEM is emerging as a promising company with crucial technology to make the hunt easier and cost-effective.