By S.R. Nunnally

Another essential element to offshore drilling is geophysical information. Veritas DGC, Inc. (VTS:NYSE) has a lot of expertise in this field.

VTS provides 2D and 3D images of surfaces, but the interesting thing is its 4D technology that tracks fluid movement.

As my colleague, Andrew Mickey (editor of BreakAway Investor and Level 6 Trader) noted in our weekly editorial meeting yesterday, you don't just set up your rig and drill anymore. Seismic surveys and planning and geophysical services have become the beneficial technology to the oil and gas exploration industry.

VTS' 4D technology uses time-lapsed state-of-the-art 3D imaging, in addition to traditional 2D and 3D seismic imaging.

With 36 years' experience and the ability to work both on and offshore, VTS has become the world's leading geophysical services provider. Its technology is so in demand that it has locations around the world with four centers in South America, two in Africa, four in the South Pacific (including Australia), four in Europe, one in the Middle East, and five in North America.

Its locations in 19 countries have brought in $634 million in 2005, and has since made it a sweet target for acquisition.

VTS agreed to merge with Compagnie Générale de Géophysique (GGY:NYSE) on Sept. 4, 2006. The acquisition should be completed by the end of the year.

It's no wonder, either. For the past 52 weeks VTS climbed more than 160%. From the beginning of its long-term rise back in September 2003, VTS has jumped a whopping 858%!

But GGY's no slouch. Growing 128% in the past year, GGY's got an even longer uptrend than VTS. Starting mid-March 2003, GGY has climbed 1,438%… simply amazing.

Of course, such unbelievable growth should be suspect, and the inevitable drop bet on, but I have to say, the increase in drilling both offshore and onshore (think Rocky Mountains) has me kind of bullish on GGY… Especially over the long term.

My near-term estimate puts GGY at an easy $47.50 by February, and in a year's time GGY could be an $83 stock.

Pretty nice…