Petroleum Geo-Services to Acquire Depth Imaging Company

Petroleum Geo-Services has entered into a definitive agreement to acquire Applied Geophysical Services Inc. (AGS) for a price of U.S. $51 million, subject to certain adjustments for changes in working capital.

PGS estimates an enterprise value for AGS of approximately U.S. $46 million. AGS is based in Houston, Texas and specializes in providing advanced depth imaging services. The transaction is expected to close during the course of this week.

AGS specializes in delivering depth imaging services to the oil and gas industry, currently focusing primarily on the depth market in the Gulf of Mexico, using a proprietary 3D beam migration technology. AGS has more than a 20-year track record in the Gulf of Mexico. For the year 2007 to date AGS has recorded revenue of approximately U.S. $20 million with net income before taxes of approximately 50% of recorded revenue.

"AGS and its technology will strengthen the PGS depth imaging capabilities and will constitute an important addition to our current data processing technology in line with our strategy," said Sverre Strandenes, PGS Group President Data Processing and Technology. "We are now in the position to deliver combined acquisition and processing solutions, including wide-azimuth and multi-azimuth, with unmatched efficiency and quality."

Petroleum Geo-Services is a focused geophysical company providing a broad range of seismic and reservoir services, including acquisition, processing, interpretation, and field evaluation. PGS operates on a worldwide basis with headquarters at Lysaker, Norway.