PGS To Acquire Diamond Geophysical

Petroleum Geo-Services ASA has acquired Diamond Geophysical Service Corporation. Diamond specializes in designing, acquiring, processing and marketing 3-D multi-client seismic surveys in areas with complex imaging problems, and has exclusively represented and technically marketed a significant portion of PGS' Gulf of Mexico multi-client library over the past seven years. Diamond has consistently been a top performer among the various marketing companies representing PGS data in the Gulf of Mexico. The consideration for the transaction consisted of a combination of shares and cash to the former shareholders of Diamond.

In the Gulf of Mexico, PGS historically has utilized companies such as Diamond to penetrate a broader base of customers and to take advantage of this well-established third party marketing network. Prior to this acquisition, Diamond received a sales commission and PGS paid a monthly retainer for their services. This acquisition will allow PGS to reduce cost and begin building a quality "best in class" sales force for the Gulf of Mexico that should yield strong results going forward.