SAExploration shares surge on contract for $100 million project in South Asia

SAExploration Holdings Inc (NASDAQ:SAEX) stock climbed on Thursday after the company announced it was awarded a project in South Asia by an oil company that is worth around $100 million.

The project is expected to start in the fourth quarter of 2018 and is expected to finish in the second quarter of 2019. The project will be performed using ocean-bottom nodal recording technology and related techniques, the company said in a statement.

Shares of the company were up nearly 30% in the premarket to trade at $13.87, having settled on Wednesday 3.9% higher at $10.69.

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The company said that of the total project amount, approximately 70% of the revenue is expected to be pass-through revenue related to a large subcontractor.

Any pass-through revenue will be at cost with no margin to SAE.

The timing and outcome of the project is dependent on SAE entering into the final contract with the customer and on various factors beyond its control such as weather delays, which could cause actual results to differ materially.

SAE is an oilfield services company offering a full range of vertically-integrated seismic data acquisition and logistical support services in remote environments throughout Alaska, Canada, South America, Southeast Asia and West Africa.

The company is based in Houston, Texas.

Story by ProactiveInvestors