Arrow to Convert Polar Sea to Source Vessel

Arrow Seismic ASA, a leading provider of high capacity vessels and 2D (source) vessels to the marine seismic industry, has decided to modify the conversion plan for "Polar Sea". Originally, the plan was to convert the vessel to a full 2D (source) vessel. According to the new plan, the vessel will now be converted to a full source vessel with insea source equipment.

Consequently, the estimated capex related to the conversion will be reduced from USD 30 million (as previously indicated) to USD 24 million. The "Polar Sea" will be ready for operation in November 2007 as a flexible high capacity source vessel.

Hans Petter Amundsen Klohs, CEO in Arrow Seismic, comments: "This decision is a consequence of the strong demand and improving rates experienced for source vessels. Arrow can take advantage of the strong market by completing the conversion as early as November 2007. The accelerated conversion schedule is made possible by the fact that winches and compressors for the vessel already are delivered".

Source vessels are primarily used for 4D undershooting of structures on existing fields (production), 4C/4D source for sea bed seismic on existing fields (production) and Wide Azimuth surveys that involves one recording vessel and two - one each side - source vessels (exploration).