Asker, Norway (June 11, 2007). During its Q1 2007 earnings release and conference call in May 2007, TGS provided information concerning its expectations related to delivery and operational start-up of two new 3D vessels under contract. As a result of recent developments, TGS now provides an update to those expectations.
After successfully starting production in West Africa in early May, the BGP Pioneer experienced engine control problems and was subsequently down for approximately three weeks. Following engine repairs, the vessel encountered propeller control problems which will now require a short dry-docking to repair. TGS expects the BGP Pioneer to mobilize for a proprietary contract project in approximately ten days.
As a result of yard delays and correction of a number of deficiencies identified during initial sea trials, the Geo Barents is now not expected to be available for production in the Gulf of Mexico until the beginning of July.
These vessel delays will lower multi-client investments and revenue recognition for Q2 2007, however, the full year 2007 guidance previously issued by TGS remains unchanged.
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