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Vialogy has developed detection technology called QRI (Quantum Resonance Interferometry) which can be used in 3 ways

permitting oil recovery using the minimum number of wells
identifying and positioning hydrocarbon deposits
optimizing infill well locations

The main potential of the technology appears at the moment to be finding oil and gas deposits.

The technology uses "innovative software algorithms in the field of active signal processing" that "enhances signal-to-noise-ratios by rapidly determining whether a signal is present in the noisy data".

It is claimed to be between 10 and 100 times more effective than current passive signal-processing techniques at detecting signals in noisy environments. This minimizes false alarms and event dropouts, "making the technique highly specific and reproducible".

Does it work ?

Well according to US oil company Atascosa yes it does. They signed a deal with Vialogy for them to interpret its seismic data using QRI. Vialogy duly interpreted the data and told Atascosa where to set up its rig and also what it should find underground. Vialogy was paid for services but it also is entitled to 5% of any oil produced.

Last March Atascosa found oil exactly where Vialogy predicted it would. Atascosa's CEO John Mullins, said about the Galba Prospect find, : "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. 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."

The press release stated "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 over the life of this first well (assuming oil price at $40 per barrel)."

Other oil companies may well be interested in using Vialogy's technology.

The Herald newspaper in Scotland reports that ViaLogy may announce further contracts for its equipment with its yearly figures on Tuesday Sept. 15. Seymour Pierce expect losses of around £5.6m to be announced too but they give the shares as a buy at the current level of around 6.12p and expect a rapid build-up of business.

ViaLogy recently raised £2m for its expansion plans in a share issue at 4p.

The share price has been up as high as 15p at one point then back to 2p it is now 7p and appears to be recovering share. It was tipped by The Times back in July 2008 and has recently been tipped as a High Risk BUY by Red Hot Penny Shares who said "I have seen plenty of exciting scientific innovations in my time, but nothing to beat this. The scale of the opportunity is enormous, and so is the value of Vialogy’s revolutionary QRI software."