TGS ASA — Earnings Release 2016

Jul 7, 2016

TGS : Q2 2016 Update

TGS : Q2 2016 Update

ASKER, NORWAY (7 July 2016) - Based on preliminary reporting from operating

units, TGS management expects net revenues for the second quarter of 2016 to be

approximately USD 114 million. Multi-client investments for the second quarter

are expected to be approximately USD 62 million.

"Oil companies continue to be under pressure to reduce exploration and

production spending. As a result, we still anticipate variability of seismic

spending between quarters and across regions in the near term.  However, we are

very pleased with the performance of the TGS data library during Q2 2016 and

remain confident in the long-term success of our focused, asset light, multi-

client business model.  We believe that following the unprecedented reduction in

exploration activity it is inevitable that oil companies will return to

exploration spending in the future as the demand-supply balance continues to

tighten," commented Kristian Johansen, CEO, TGS.

TGS full year 2016 Guidance remains unchanged at approximately USD 220 million

multi-client investments, which are expected to be prefunded 45% to 50%.

Management will give a full report of Q2 results on 4 August 2016.

Company summary

TGS-NOPEC Geophysical Company (TGS) provides multi-client geoscience data to oil

and gas Exploration and Production companies worldwide.  In addition to

extensive global geophysical and geological data libraries that include multi-

client seismic data, magnetic and gravity data, digital well logs, production

data and directional surveys, TGS also offers advanced processing and imaging

services, interpretation products, and data integration solutions.

For more information visit TGS online at www.tgs.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 principle 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).

TGS sponsored American Depositary Shares trade on the U.S. over-the-counter

market under the symbol "TGSGY".

For additional information about this press release please contact:

Sven Børre Larsen

Chief Financial Officer

Tel: +47 90 94 36 73

Email: sven.larsen@tgs.com

Will Ashby

VP HR & Communication

Tel: +1 713 860 2184

Email: will.ashby@tgs.com

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

(Norwegian Securities Trading Act)

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