Reservoir Exploration Technology (OSE: RXT) followed a weak quarterly report on Thursday with a complete reversal of fortunes on Friday. RXT is a marine geophysical company specializing in multi component seismic seafloor acquisition targeting improved oil recovery from existing fields.
Fourth quarter revenues were down to 13 million USD with operating profit minus 25 million. The company said that it needs to focus on cash flow and with equity below 50% of share capital, the board is evaluating possible measures.
Then on Friday the company announced that GeoRXT B.V., a joint venture with Georadar Levantamentos Geofísicos, was awarded its first contract in Brazil by Petróleo Brasileiro S/A. The task is to acquire OBC data over the Marlim and Marlim Leste fields with estimated contract value of 103 million USD starting from Q1 and with an estimated duration of 12 months.
RXT has a 45% share in the joint venture and the contract pretty much doubles its order backlog. The stock jumped more than 40% on Friday having been up nearly 60% at best.
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