Houston, Texas; Oslo, Norway; March 12, 2001: Petroleum Geo-Services ASA (NYSE:PGO)(OSE:PGS) announced today that it has completed the sale of its global Petrobank Data Management business and related software to Landmark Graphics Corporation under the December 29, 2000 purchase and sale agreement with Halliburton and Landmark Graphics. The final purchase price will be adjusted to reflect changes in Petrobank’s working capital as of the effective date and a decision to exclude the originally contemplated sale of PGS' Tigress software and the related development group. The Tigress exclusion will result in a $4 million reduction in the purchase price and a negligible impact on the gain associated with this transaction. The effective date of this transaction will be February 28, 2001.
Chairman and Chief Executive Officer of Petroleum Geo-Services, Reidar Michaelsen, said, "We are excited to have completed this transaction in a timely manner. As I stated originally, this business alliance will allow additional outlets for PGS to deliver its technology, services and information to the market place through the established network already functioning at Halliburton via Landmark Graphics.”
“Our strategy remains the same,” said Michaelsen, “and this transaction is part of our continuing efforts to focus on improving the Company’s operational and financial performance going forward. It represents our commitment to our shareholders and creditors to achieve a more desirable level of debt through the sale of non-core businesses and the enhancement of our liquidity position.”
Petroleum Geo-Services is a technologically-focused oilfield service company principally involved in two businesses: geophysical seismic services and production services. PGS acquires, processes, and markets 3D, time-lapse and multi-component seismic data. This data is used by oil and gas companies in the exploration for new reserves, the development of existing reservoirs, and the management of producing oil and gas fields. PGS’ PetroTracTM suite of advanced geophysical technologies allows oil and gas companies to better characterize and monitor their reservoirs in order to enhance production and ultimate recovery of hydrocarbons. In its production services business, PGS owns four floating production, storage and offloading systems (FPSOs) and operates numerous offshore production facilities for oil and gas companies. FPSOs permit oil and gas companies to produce from offshore fields more cost effectively. PGS operates on a worldwide basis with headquarters in Oslo, Norway and Houston, Texas.
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The information included herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical and future trends, on general economic and business conditions and on numerous other factors, including expected future developments, many of which are beyond the control of the Company. Such forward-looking statements are also subject to certain risks and uncertainties as disclosed by the Company in its filings with the Securities and Exchange Commission. As a result of these factors, the Company’s actual results may differ materially from those indicated in or implied by such forward-looking statements.