Houston, Texas and Asker, Norway (15 June 2012) - TGS-NOPEC Geophysical Company ("TGS") announces the acquisition of Calgary-based Arcis Seismic Solutions Corp. The total equity value is approximately US $51 million, reflecting an enterprise value of US $72 million, based on net debt at the date of acquisition.
Arcis is a privately owned geophysical company founded in 1996 with a head office located in Calgary, Alberta Canada and a strong regional business development presence in Latin America (Colombia) and the Middle East/North Africa (Cyprus). Arcis has built one of the most modern 3D seismic data libraries in the Western Canadian Sedimentary Basin. The 3D multi-client library consists of 12,689 km2 with core activity in many prolific hydrocarbon trends in Alberta, British Columbia and Saskatchewan (including Bakken, Horn River, Montney and Duvernay). Arcis has complemented its data library through offering global seismic solutions that include seismic data processing (using its APXTM processing platform), reservoir analysis, geoconsultancy and project management. Arcis employs over 80 professional and technical personnel who have a broad range of skills, expertise and experience. In 2010 and 2011, Arcis generated average annual revenues of CAD 50 million.
As a wholly-owned subsidiary of TGS, Arcis will continue to invest in multi-client projects in Canada, provide proprietary imaging services to external customers worldwide and will play a vital role in the processing of TGS' own multi-client surveys. The Arcis acquisition will allow TGS to grow into the onshore multi-client and imaging business in Canada and other markets served by Arcis. This acquisition further strengthens TGS' ability to meet its recently revised guided revenue and investment targets for 2012. The acquisition will be consolidated into TGS accounts as of 1 July 2012.
Robert Hobbs, Chief Executive Officer of TGS, views the Arcis acquisition as an excellent opportunity to expand the core TGS business into a new geographic market. "The acquisition of Arcis brings TGS into the very important Canadian seismic market and again increases TGS' processing capabilities and research and development efforts. The common focus on multi-client data and imaging services, as well as the strong alignment of brand, vision and core values between Arcis and TGS, makes for a powerful combination."
Brad Torry, President & CEO of Arcis added, "We are excited about the synergies and opportunities the business combination brings to our clients, our staff and the geophysical community. The integrated business models of Arcis and TGS allow both organizations to meet their expansion goals, adds immediate value and provides an avenue for continued growth. We are excited to join the TGS family and expand our global presence."
Company summary
TGS-NOPEC Geophysical Company (TGS) provides multi-client geoscience data and services to oil and gas Exploration and Production companies around the globe. TGS' geophysical and geological data products include multi-client seismic libraries, permanent reservoir monitoring, magnetic and gravity data, the industry's largest global database of digital well logs and regional interpretive products. TGS also provides high-end depth imaging services to help resolve complex seismic imaging problems. For more information visit TGS online at www.tgs.com.
Forward-looking statements and contact information
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 additional information about this press release please contact:
Kristian Johansen
Chief Financial Officer
Office: +47 66 76 99 00
Cell: +47 47 60 33 34
Email: kristian.johansen@tgs.com
Karen El-Tawil
VP, Business Development
Office: +1 713 860 2102
Email: karen.el-tawil@tgs.com
Brad Torry
President & CEO of Arcis
Office: +1 403 818 9356
Email: btorry@arcis.com
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)