PGS to seek approval as License Holder and Operator on the Norwegian Continental Shelf

PGS currently delivers exploration, production, and reservoir services to the oil industry and is a significant service provider on the NCS. Through its subsidiary PGS Production AS, PGS produces the Varg and Glitne fields in Norway on behalf of Norsk Hydro and Statoil, respectively. To enhance its flexibility, PGS intends to engage in business arrangements on the NCS that may involve take-over of assets and operations of tail-end production.

If qualified as a license holder and operator on the NCS, PGS will not engage in license acquisitions that compete with clients' pursuit of acreage on the NCS. On the contrary, PGS intends to utilize this potential new status to develop services within exploration and production - to the mutual benefit of all parties involved. This move will improve the Company's ability to realize continuous engagement in profitable arrangements with clients in the Norwegian Exploration and Production business.

Kaare M. Gisvold, President of the PGS Production Group, is responsible for this activity and has assigned Vice President Erik Haugane to lead the development of this business operation.