Call of the Week: An Oil and Gas Play Making Waves

Robert Maltbie  |

This week at Singular Research, we initiated a buy rating on TGC Industries (TGE), leading supplier of seismic data acquisition services throughout the continental U.S. and Canada to companies engaged in the exploration and development of oil and natural gas. Some of the drivers for TGC include:

The company’s survey crews obtain geophysical data using modern 3D survey methods. The process begins by generating acoustic energy under the ground by using either vibration equipment or dynamite detonation. The reflected and refracted energy is captured by geophones, converted into digital signals at multi-channel recording units, and then passed on to a central recording vehicle. These huge volumes of seismic data are interpreted in order to produce accurate images of the earth's subsurface. The company’s customers are then able to identify locations where subsurface conditions are positive for the accumulation of obtainable hydrocarbons, to optimize the extraction of hydrocarbon reservoirs, and to improve reservoir management.

Singular research analyst Keith Maher has a $20 12-month price target for TGC, which represents a potential to double based on the current trading price of shares.

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