Houston, Texas and Asker, Norway (15 May 2007) - TGS-NOPEC Geophysical Company ("TGS") successfully concluded the acquisition of Parallel Data Systems, Inc. ("PDS") on May 14, 2007. Final consideration included US $56.4 million in cash and 608,865 shares of TGS, all of which have restrictions on when they can be sold. No new shares were issued related to the transaction.
The PDS transaction dramatically increases existing TGS processing capacity and provides an extensive array of new imaging technologies. The addition also provides critical mass to TGS research and development plans that will accelerate efforts to commercialize the next generation of seismic imaging technologies, including wide azimuth 3D.
PDS will continue to provide proprietary imaging services to external customers and play a vital role in the processing of TGS' own surveys. TGS expects the PDS acquisition to generate approximately USD 15 million in net revenues for contract imaging services between now and the end of 2007. While the PDS acquisition will deliver cost efficiencies in processing future TGS multi-client projects, the impact will not materially change management's expectations for multi-client investments and average amortization rates for the year 2007.
TGS-NOPEC Geophysical Company (TGS) is a leading global provider of multi-client geoscientific data, associated products and services to the oil and gas industry. TGS specializes in the creation of non-exclusive seismic surveys worldwide. The Company provides advanced depth imaging solutions and software through its TGS Imaging division. Well log data is available for conversion, sourcing, management and immediate delivery through TGS subsidiary, A2D Technologies. Multi-client interpretive products and subsurface consulting services are provided through the Company's Aceca subsidiary. The TGS family of companies places a strong emphasis on providing high-quality data and the highest level of service to the industry.
All statements in this press release other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. These factors include TGS' reliance on a cyclical industry and principal customers, TGS' ability to continue to expand markets for licensing of data, and TGS' ability to acquire and process data products at costs commensurate with profitability. Actual results may differ materially from those expected or projected in the forward-looking statements. TGS undertakes no responsibility or obligation to update or alter forward-looking statements for any reason.
TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange (OSLO: TGS).
For more information about this news release, please contact:
Arne Helland
Chief Financial Officer
Tel: +47 66 76 99 31/+47 91 88 78 29
Email: arne.helland@tgsnopec.no
John Adamick
VP, Business Development
Tel: +1 713 860 2100
Email: jada@tgsnopec.com
Chief Financial Officer
Tel: +47 66 76 99 31/+47 91 88 78 29
Email: arne.helland@tgsnopec.no
John Adamick
VP, Business Development
Tel: +1 713 860 2100
Email: jada@tgsnopec.com