TGS ASA — M&A Activity 2015

Jun 29, 2015

TGS - Letter of Intent signed to acquire Polarcus' multi-client library

TGS - Letter of Intent signed to acquire Polarcus' multi-client library

ASKER, NORWAY (29 June 2015) - TGS has today entered into a Letter of Intent to

acquire Polarcus' multi-client library, with the exception of Australia, for a

price of USD 27.5 million on a cash and debt free basis. The transaction is

subject to due diligence and final definitive documents with target closing date

on or before July 31, 2015. Polarcus will continue to have rights to revenue

share from the library after TGS has realized a predetermined return on its

initial investment.

The multi-client library in Northwest Europe and West Africa consists of 22 3D

seismic surveys comprising a total area of 40,000 sq. km and one 2D survey

comprising 5,000 linear km. The data covers prime locations within the

established hydrocarbon provinces of six countries along the western Atlantic

margin corridor since 2011.

"We are pleased to announce a Letter of Intent to acquire a high-quality multi-

client library in key areas of future growth for TGS. This acquisition

significantly strengthens our 3D-position in established areas in UK, Norway and

West Africa and is very complimentary to our existing database with minimal

overlap," stated Robert Hobbs, CEO, TGS.

The transaction will be financed with cash and in order to maintain its strong

balance sheet and liquidity position, TGS has received a commitment from its

existing lender to expand the current credit facility to USD 75 million. This

will enable the company to continue to pursue attractive investment

opportunities in a challenging market.

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 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).

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:

Kristian Johansen

COO/Interim CFO

Tel: +47 47 60 33 34

Email: kristian.johansen@tgs.com

Will Ashby

Director Finance Western Hemisphere & Investor Relations

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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