Bolt Technology: Top Gun

Bolt Technology (AMEX: BTJ) shoots the ocean floor with powerful and precise air guns to uncover deep beds of oil. The company’s seismic attacks have pushed it to the pinnacle of the marine gun market, and business is enjoying a surge of ocean exploration.

Incorporated in 1962, Bolt invented the marine air gun in 1963. Thirty years later, the company introduced the long-life marine air gun, which now is the most widely used air gun for marine exploration. Bolt recently added the annular port air gun to its arsenal, which has more output than other guns.

Operating in two business segments—geophysical equipment and industrial products—the company’s fortunes mirror the value of oil. Geophysical equipment, which makes up about 90% of revenue, includes developing and selling seismic energy sources, such as guns, underwater electrical connectors and cables, hydrophones and other industry gear. The industrial products division sells precision pneumatic clutches, brakes and small motors.

Air guns drive the company. The guns thrust waves into the earth that detect variations in underlying rock. Deviations are sent back to ship as reflected energy and the seismic signals are read on board by a hydrophone and analyzed by geoscientists.

Because it’s so costly to drill oil and gas wells, decisions on whether or where to drill are critical. Energy explorers have become increasingly willing to pay higher upfront costs to raise success rates and advanced seismic survey technologies have become a significant exploration risk management tool. Three-D—and even 4-D—techniques are gaining in acceptance; the accuracy and reliability of Bolt’s air guns make them especially valuable for use in these surveys. They are encouraging some customers to retest areas that they’d previously given up on.

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