PGS, SeaBird to Jointly Develop Deep Water Node Seismic Solutions

Petroleum Geo-Services (PGS) and SeaBird have signed a strategic cooperation agreement to further develop ocean bottom node solutions for deep water.

CEO Jon Erik Reinhardsen of PGS said, "This agreement enables the two companies to provide a complete seismic offering in deep water areas, in areas with complex geology, and in areas with heavy infrastructure on the sea bottom. SeaBird is the market leader for nodal seismic operation in deep waters. The cooperation with PGS will further strengthen that position."

The use of nodes for 3D, 4C and 4D seismic in deep waters, to map challenging reservoirs, will be particularly attractive combined with PGS' broadband GeoStreamer® and GeoSource(TM) technology.

PGS will gain exclusive rights to offer SeaBird's autonomous seabed recording technology at market terms in Brazil.

PGS expects this agreement to further strengthen each of the two companies leading positions in the reservoir monitoring market, which has been, and is expected to represent the fastest growing segment of the seismic market.

In the cooperation agreement, the parties have expressed intentions to explore further areas of cooperation, such as data processing and use of GeoStreamer® on Seabirds' 2D vessels.

SeaBird will issue a five year convertible loan of NOK 240 million directed towards PGS. The loan will have an annual interest of 9 % that can be paid in cash or in kind. The Loan can be converted into ordinary shares at a conversion price of 3.35 NOK per share and at any time until maturity.

The cooperation agreement and the convertible loan are subject to approval by the shareholders in SeaBird.