TGS-NOPEC Acquires Energy Division Assets of NuTec Sciences

TGS-NOPEC Geophysical Company, a subsidiary of TGS-NOPEC Geophysical Company ASA, and NuTec Sciences, Inc. have signed a Letter of Intent whereby TGS-NOPEC will acquire substantially all of the assets of NuTec's energy division for $11.25 million in cash. The transaction is subject to approval by TGS-NOPEC's Board of Directors and is expected to close by the end of June.

NuTec Energy is a leading edge seismic data processing and software company based in Houston, Texas with 25 employees. In 2003 NuTec Energy generated (unaudited) revenues of approximately $10.6 million and operating profit of approximately $2.5 million. The company currently operates one of the world's fastest supercomputers and specializes in finite difference time and depth domain imaging of seismic data using its own proprietary technology and patented techniques. NuTec Energy's internally developed PRIMA software package contains fully integrated seismic data processing and multi-volume visualization functionality. NuTec licenses the visualization module of PRIMA to industry and currently supports licenses to over 50 companies.

NuTec's current backlog of seismic processing contracts consists mainly of two very large TGS-NOPEC 3D pre-stack time migration projects, Mississippi Canyon Revival and Deep Resolve. After closing, TGS-NOPEC intends to continue NuTec Energy's successful third-party seismic processing services and PRIMA software licensing business while also applying NuTec's state-of-the-art pre-stack time and depth imaging technology to TGS-NOPEC's own seismic database.

Hank Hamilton, Chief Executive Officer of TGS-NOPEC, states: "As a major customer of NuTec in 2004 we have seen the company live up to its reputation as one of the fastest, low-cost, high-tech providers of seismic processing today. We believe that this transaction provides a unique opportunity for us to upgrade and grow our multi-client seismic data library at a significant cost savings. NuTec's tools will also enable us to efficiently provide custom "add-on" depth imaging solutions for our existing data licensing customers."

NuTec Sciences' Chief Executive Officer, Michael Keehan said, "Given the vast amount of data TGS-NOPEC provides to the petroleum industry worldwide and their excellent reputation for data quality, their acquisition of NuTec Energy Services is a natural fit for the technology and people of NuTec."