Scan Geophysical Buys three Newbuilds from Deep Sea Supply

SCAN Geophysical ASA

In June 2006 SCAN Geophysical ASA secured a contract to purchase three newbuilds from Deep Sea Supply ASA. The transaction was planned completed in July 2006. All conditions are now successfully lifted according to plan and the transaction is effective.

By the completed transaction SCAN has secured building of three new purpose-built 3D seismic vessels with early delivery, and thereby secured further capacity in a very strong seismic market. The new vessels, yard nos 238, 239 and 240, are three similar sister vessels with state of the art design. They will be built at the ABG Shipyard in India, with deliveries in Q2 - Q4 2007. The vessels will most likely be rigged with 8 x 6 km streamers, which means that the vessels can take on medium to large 3D seismic surveys. Total capex per vessel is approximately US $70 million, including the seismic equipment for 8 x 6 km configurations. SCAN will enter into a sale-leaseback arrangement with a shipowner for the vessels, but will own the seismic equipment.