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TGS-NOPEC (Other OTC: TGSNF.PK) Acquisition Bolsters LAS Creation Program
Houston, Texas (2 June 2008) - TGS-NOPEC Geophysical Company (TGS) announced today that it has acquired substantially all of the assets of Center Line Data Corporation, a privately held Denver-based provider of well log digitizing software and services. The 36 staff of Center Line will become employees of TGS' Geological Products and Services division and will allow TGS to open a regional office in Denver.
The purchase price included approximately US $5 million in cash and 30,600 shares of TGS. No new shares were issued related to this transaction. "The Center Line transaction represents a strategic acquisition for our Geologic Products division" said Rod Starr, Senior VP of TGS Geological Products & Services. "Center Line has developed proprietary well log digitizing software that will allow TGS to greatly accelerate the creation of LAS files from our comprehensive well log image inventory. The Denver office will supplement our industry-leading Houston capacity to help us with this effort. This is important due to the substantial LAS commitments that TGS now has to the industry."
Since the 3rd quarter of 2007, TGS has secured commitments from E&P companies for over one million LAS well log files throughout many onshore US basins. These LAS files will be added to TGS Geological's extensive data library. LAS (Log Ascii Standard) well logs are fully digitized well logs that are used in a variety of geological, geophysical and petrophysical applications and typically have a commercial value of approximately ten times the value of the standard well log images.
The TGS well log database presently contains more than five million well log images from key exploration areas worldwide. All of this data is available to clients via the Company's LOG-LINE Plus! database which features online access, search tools and immediate download capabilities. TGS-NOPEC Geophysical Company (TGS) is a principal resource for global geoscientific data products and services in the E&P industry. TGS specializes in the design, acquisition and processing of multi-client seismic surveys worldwide and delivers advanced high performance seismic imaging and software solutions. The Company also provides the world's largest online well-log database, well data management services, multi-client interpretive products and subsurface consulting services to industry. The suite of integrated exploration data products available from TGS is distinctive and unmatched. The Company philosophy is to create unique high-quality data collected in the right place at the right time.
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:
