PGS ASA

Share Issue/Capital Change • Jan 6, 2017

Petroleum Geo-Services ASA: PRELIMINARY RESULT OF SUBSEQUENT OFFERING

Petroleum Geo-Services ASA: PRELIMINARY RESULT OF SUBSEQUENT OFFERING

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR

INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN, OR ANY

OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE

UNLAWFUL. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF ANY OF THE

SECURITIES DESCRIBED HEREIN.

PETROLEUM GEO-SERVICES ASA: PRELIMINARY RESULT OF SUBSEQUENT OFFERING

Reference is made to previous announcements by Petroleum Geo-Services ASA (the

"Company") in respect of the subsequent offering of up to 13,500,000 new shares

in the Company (the "Subsequent Offering") at a subscription price of NOK 22.50

per share.

The subscription period ended on January 5, 2017 at 16:30 hours (CET).

A preliminary counting indicates that the Company has received subscriptions for

approximately 43.6 million new shares in the Subsequent Offering, and the

Subsequent Offering was accordingly 3.2x subscribed.

The allocation of the shares in the Subsequent Offering is expected to be

resolved by the Company during today on January 6, 2017, in accordance with the

allocation criteria set out in the Company's prospectus dated December

15, 2016. The final result of the Subsequent Offering will be published shortly

thereafter, and subscribers who are allocated shares will receive a letter with

the number of allocated new shares and the corresponding subscription amount to

be paid by each of the subscribers.

DNB Markets, a part of DNB Bank ASA and Nordea Markets, a part of Nordea Bank

Norge ASA are acting as Managers for the Subsequent Offering.

Contacts:

Bård Stenberg, VP IR & Corporate Communications: Phone: +47 67 51 43 16, Mobile:

+47 992 45 235

Gottfred Langseth, EVP & CFO: Phone: +47 67 51 44 10, Mobile: +47 930 55 580

Rune Olav Pedersen, EVP & General Counsel: Phone: +47 67 51 57 06, Mobile:

+47 908 16 337

***

Petroleum Geo-Services ASA ("PGS" or "the Company") is a focused Marine

geophysical company that provides a broad range of seismic and reservoir

services, including acquisition, imaging, interpretation, and field evaluation.

The Company's MultiClient data library is among the largest in the seismic

industry, with modern 3D coverage in all significant offshore hydrocarbon

provinces of the world. The Company operates on a worldwide basis with

headquarters in Oslo, Norway.

For more information on PGS visit www.pgs.com.

***

This announcement does not constitute or form part of an offer for sale or

solicitation of an offer to purchase or subscribe for securities in the United

States or any other jurisdiction. The securities referred to herein have not

been and will not be registered under the U.S. Securities Act of 1933, as

amended (the "Securities Act"), and may not be offered or sold, directly or

indirectly, in the United States, absent registration under or an exemption

from, or in a transaction not subject to, the registration requirements of, the

Securities Act. No public offering of securities is being made in the United

States or in any other jurisdiction.

The offering of the securities referred to in this announcement will be made

pursuant to an exemption under the Prospectus Directive, as implemented in

Member States of the European Economic Area, from the requirement to produce a

prospectus for offers of securities.  This announcement does not constitute an

advertisement for the purposes of the Prospectus Directive.

This announcement does not constitute an offer to sell or the solicitation of an

offer to buy any securities, nor will there be any sale of securities referred

to in this announcement, in any jurisdiction, including the United States, in

which such offer, solicitation or sale would be unlawful prior to registration

or qualification under the securities laws of such jurisdiction.

The information included herein contains certain forward-looking statements that

address activities, events or developments that the Company expects, projects,

believes or anticipates will or may occur in the future. These statements are

based on various assumptions made by the Company, which are beyond its control

and are subject to certain additional risks and uncertainties. The Company is

subject to a large number of risk factors including but not limited to the

demand for seismic services, the demand for data from our multi-client data

library, the attractiveness of our technology, unpredictable changes in

governmental regulations affecting our markets and extreme weather conditions.

DNB Markets, a part of DNB Bank ASA and Nordea Markets, a part of Nordea Bank

Norge ASA (together, the "Managers") are each acting exclusively for the Company

and for no-one else in connection with any transaction mentioned in this

announcement and will not regard any other person (whether or not a recipient of

this announcement) as a client in relation to any such transaction and will not

be responsible to any other person for providing the protections afforded to

their respective clients, or for advising any such person on the contents of

this announcement or in connection with any transaction referred to in this

announcement. The contents of this announcement have not been verified by the

Managers.

No representation or warranty, express or implied, is given by or on behalf of

the Managers or any of their respective subsidiaries, affiliates, agents or

advisers or any of such persons' affiliates, directors, officers or employees or

any other person as to the fairness, truth, accuracy, completeness or

verification of the information or the opinions contained in this announcement

(or whether any information has been omitted from the announcement) or any other

information relating to the Company, its subsidiaries or associated companies,

whether written, oral or in a visual or electronic form, and howsoever

transmitted or made available, and no liability is accepted for any such

information, omissions or opinions.

For a further description of other relevant risk factors we refer to the

prospectus dated 15 December 2016. As a result of these and other risk factors,

actual events and our actual results may differ materially from those indicated

in or implied by such forward-looking statements. The reservation is also made

that inaccuracies or mistakes may occur in the information given above about

current status of the Company or its business. Any reliance on the information

above is at the risk of the reader, and PGS disclaims any and all liability in

this respect.

This information is subject to the disclosure requirements of section 5-12 of

the Norwegian Securities Trading Act.