TGS-NOPEC to Acquire Riley Log

TGS-NOPEC and Divestco Inc. have signed a letter of intent whereby TGS-NOPEC will acquire all shares of Divestco's subsidiary, Riley Electric Log Inc. as well as a license to software and about 1,2 million depth-calibrated images of Canadian well logs for approximately $9 million U.S. dollars. The parties plan to finalize the transaction by December 31, 2003.

Following closing, TGS-NOPEC intends to merge Riley Electric Log and the other acquired assets into its subsidiary, A2D Technologies Inc. In the last 55 years, Riley Electric Log has built the most extensive collection of hard-copy well logs in the U.S., numbered at over 3 million. These well logs will serve as a comprehensive source for expansion of A2D's industry-leading digital well log database, LOGLINE Plus!.

Hank Hamilton, TGS-NOPEC's Chief Executive Officer, said "We view this transaction as a logical and fundamental step towards our long-term strategic goal of developing the world's best multi-client library of geoscientific data."

David Kotowych, President of A2D Technologies, said "The Riley acquisition represents an exciting path to accelerating completion of our U.S. digital well log inventory, adding tremendous value to the total well log solution we provide for our customers in this market."