Geokinetics Prices Offering of $300MM Senior Secured Notes Due 2014

Geokinetics announced that its wholly-owned subsidiary, Geokinetics Holdings USA, Inc., priced an offering of $300 million in aggregate principal amount of 9.75% senior secured notes due 2014 (the "notes") to be offered and sold to qualified institutional buyers pursuant to Rule 144A and outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended. The issue price is 98.093% plus accrued interest, if any, from December 23, 2009, of the principal amount of the notes. The closing of the transaction is expected to occur on December 23, 2009, and is subject to customary closing conditions.


Geokinetics expects to receive net proceeds from the offering of approximately $286.2 million, after deducting the initial purchasers discounts and commissions and estimated offering expenses. The notes will be guaranteed on a senior secured basis by Geokinetics and each of its domestic subsidiaries. The notes and the guarantees will be secured by liens on substantially all of the assets of Geokinetics, Geokinetics Holdings USA and the subsidiary guarantors.


Geokinetics intends to use the net proceeds from this offering to finance the cash portion of the acquisition of the on-shore seismic and multi-client seismic library business of Petroleum Geo-Services ASA and to repay current outstanding indebtedness. The proceeds will be placed in an escrow account and will be released to Geokinetics only upon the closing of the above-referenced acquisition.



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