TGS Begins New Seismic Program in Russia

Sea of Okhotsk - Sakhalin Island
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TGS-NOPEC Geophysical Company will acquire a new multi-client 2D seismic program in the Sea of Okhotsk near Sakhalin Island in partnership with Dalmorneftegeofizika (DMNG). Based on strong pre-funding and industry interest, this season's program is targeted to be approximately 15,000 kilometers. TGS plans to commence acquisition in early July utilizing two vessels. DMNG will process the survey in its Yutzhno Processing Center and expects to deliver the final product by the first quarter of 2007. Upon completion, TGS and DMNG will have approximately 40,000 kilometers of modern 2D seismic coverage available to clients in the Sea of Okhotsk.

TGS has also signed a charter agreement with Shanghai Offshore Petroleum Geophysical Corporation (SOPGC) to utilize the newly upgraded Discoverer 2 2D seismic research vessel. The charter agreement specifies a minimum 12-month term as well as two options for TGS extend the charter by six-month periods under the same commercial terms. The Company plans to utilize the vessel initially in the Sea of Okhotsk.

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