DECEMBER 29, 2003: OSLO, NORWAY; HOUSTON, TEXAS - Petroleum Geo-Services ASA ("PGS" or the "Company") (OSE: PGS; OTC: PGEOY) announced today that Pertra AS, a wholly owned subsidiary of PGS, has completed appraisal well 15/12-14, confirming the western extension of the Varg field. The field is located in PL038 (Block 15/12) in the Norwegian North Sea.
The well was drilled down to 3254 meters. 78 meters of oil-bearing sands were discovered, confirming the revised reservoir model based upon new PGS seismic data. The well will be converted to an oil producer and is expected to be brought on-stream mid January 2004. PGS expects production from the Varg field to double from today's level of approximately 1800 Sm3/day (11,000 bopd), and for field life to be extended beyond 2004. The Varg field is being produced by the Petrojarl Varg FPSO, owned and operated by PGS Production.
Pertra AS is the operator of PL038 with 70% interest and co-venturer Petoro AS holding the remaining 30%. The Norwegian Petroleum Directorate has also made an independent announcement today.
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Petroleum Geo-Services is a technologically focused oilfield service company principally involved in geophysical and floating production services. PGS provides a broad range of seismic- and reservoir services, including acquisition, processing, interpretation, and field evaluation. PGS owns and operates four floating production, storage and offloading units (FPSO's). PGS operates on a worldwide basis with headquarters in Oslo, Norway. For more information on Petroleum Geo-Services visit www.pgs.com.
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The information included herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on various assumptions made by the Company which are beyond its control and certain additional risks and uncertainties as disclosed by the Company in its filings with the Securities and Exchange Commission. As a result of these factors, actual events may differ materially from those indicated in or implied by such forward-looking statements.
FOR DETAILS, CONTACT:
Sam R. Morrow
Svein T. Knudsen
Phone: +47-67-52-6400
Suzanne M. McLeod
Phone: +1 281-589-7935