TGS ASA — Earnings Release 2010

Jul 8, 2010

TGS Q2-2010 Update

ASKER, NORWAY (8 July 2010) - TGS announced today the early termination of a

2D vessel charter for the M/V Northern Genesis.  This five year charter began in

March 2007 and was previously due to expire in March 2012.  Under current market

conditions it is possible to charter more suitable 2D vessel capacity resulting

in increased flexibility and significantly lower operating costs per unit of

seismic data acquired.  Conditions for the early termination have been agreed

with the vessel owner and will result in a one-time operating expense charge of

USD 5.2 million in Q2, of which USD 1.5 million is a cash settlement and the

remaining USD 3.7 million is a non-cash write-down of TGS owned equipment

onboard the vessel.

In addition, based on preliminary reporting from operating units, TGS

management now expects net revenues for the 2(nd) quarter of 2010 to be

approximately USD 111 million, about 10% lower than revenues reported for

Q2-2009.  For the first half of 2010, management expects net revenues of USD

259 million, 33% above Q1-2009 net revenues.

A delay in the announcement of Norway's 21(st) licensing round to 23 June did

not allow for TGS to take full advantage of expected sales activity on its

modern 2D and 3D Norwegian Continental Shelf data library in Q2.  Since

announcement of the round, sales activity has been as expected.  In addition,

the uncertain regulatory environment surrounding activity in the deepwater Gulf

of Mexico caused some sales decisions on several large data quotes at the end of

Q2 to be delayed.  In contrast, activity is increasing in the West Africa market

as E&P companies look for expansion opportunities in frontier and established

plays.

Based on current and forecasted activity levels, TGS still expects to achieve

annual net revenues of USD 560-600 million for 2010 as originally communicated

in February.

As a result of the lower level of late sales in Q2, the blended multi-client

amortization rate for Q2 is likely to be slightly higher than the forecasted

range for the full year. This amortization rate does fluctuate from quarter to

quarter, depending on the sales mix of projects, and TGS still expects that its

full year amortization rate will be in the range of 37-43% of net revenues.

The full 2(nd) quarter earnings release is scheduled for 5 August 2010.

CEO Robert Hobbs and CFO Kristian Johansen will host a conference call on

Thursday, 8 July 2010 at 16:00 CET (10:00 AM NY).  Norwegian attendees are

invited to call +47 2100 2609 or 800 19641, UK attendees are invited to call +44

(0)20 7138 0843 or 0800 032 3808 and US attendees are invited to call +1

212 444 0896 or 866 602 0258.  Attendees may want to call 5-10 minutes before

16:00 CET (10:00 AM NY) to ensure registration and access.

Participants will be required to quote the following confirmation code when

dialing into the conference: 7185524

A Q&A session will follow a short introduction. To pose a question, please

press *1.

A replay of the conference call will be available shortly after. To access

replay of TGS conference call,

* dial +44 (0)20 7111 1244 (Norway) or +1 347 366 9565 (International)

* replay access code: 7185524 followed by # (pound-sign)

Company summary

TGS-NOPEC Geophysical Company (TGS) provides global geoscience data products

and services to the oil and gas industry for the exploration and delineation of

hydrocarbon reserves.  We design and acquire multi-client data projects

worldwide that make up our data library of seismic, gravity/magnetic and well

data, enhanced by our seismic imaging technology and regional interpretation

expertise.  Visit TGS online at www.tgsnopec.com.

Forward-looking statements and contact information

All statements in this press release other than statements of historical fact

are forward-looking statements, which are subject to a number of risks,

uncertainties and assumptions that are difficult to predict, and are based upon

assumptions as to future events that may not prove accurate. These factors

include TGS' reliance on a cyclical industry and principal customers, TGS'

ability to continue to expand markets for licensing of data, and TGS' ability to

acquire and process data products at costs commensurate with profitability.

Actual results may differ materially from those expected or projected in the

forward-looking statements. TGS undertakes no responsibility or obligation to

update or alter forward-looking statements for any reason.

TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange

(OSLO:TGS).

For additional information about this news release please contact:

Karen El-Tawil

VP, Business Development

Cell: +1 713 806 2420

Email:karen.el-tawil@tgsnopec.com

Kristian Johansen

Chief Financial Officer

Cell: + 47 47603334

Email:kristian.johansen@tgsnopec.com

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

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