TGS Issues Update on Contracted 3D Vessels
During its Q1 2007 earnings release and conference call in May 2007, TGS provided information concerning its expectations related to delivery and operational start-up of two new 3D vessels under contract. As a result of recent developments, TGS now provides an update to those expectations.
After successfully starting production in West Africa in early May, the BGP Pioneer experienced engine control problems and was subsequently down for approximately three weeks. Following engine repairs, the vessel encountered propeller control problems that will now require a short dry-docking to repair. TGS expects the BGP Pioneer to mobilize for a proprietary contract project in approximately ten days.
As a result of yard delays and correction of a number of deficiencies identified during initial sea trials, the Geo Barents is now not expected to be available for production in the Gulf of Mexico until the beginning of July.
These vessel delays will lower multi-client investments and revenue recognition for Q2 2007, however, the full year 2007 guidance previously issued by TGS remains unchanged.
TGS-Nopec Geophysical Company (TGS) is a leading global provider of multi-client geoscientific data, associated products and services to the oil and gas industry. TGS specializes in the creation of non-exclusive seismic surveys worldwide. The company also provides advanced depth imaging solutions and software through its TGS Imaging division. A2D Technologies, a wholly-owned subsidiary, is the energy industry's well log data marketplace offering the largest online database, immediate delivery, conversion services, data management services and worldwide well log data sourcing.
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