Oslo, June 5th, 2002. TGS-NOPEC successfully concluded its acquisition of A2D Technologies for USD 22 million yesterday evening, on June 4th, 2002. As part payment for the shares in A2D Technologies, the Board of Directors of TGS-NOPEC decided in their meeting yesterday to transfer 84,866 own held shares and to issue 296,021 new shares; totaling 380,887 TGS-NOPEC shares to the former owners of A2D, subject to the following restrictions: A maximum of 40% of these shares may be sold or transferred during the first six months after receipt. A further 10% can be sold after 6 months; then further 10% after 12 months; a further 10% after 18 months; a further 10% after 24 months; a further 10% after 30 months. Following 36 months after receipt of the shares, the sellers of A2D can sell 100% of the shares without limitation.
The balance of the purchase price is paid in cash from TGS-NOPEC's cash holdings.
A press conference is scheduled for 9:00AM on Thursday, June 6th at the Shipping Club in Oslo, Norway. David Armitage, Chief Executive Officer of A2D, and John Adamick, VP of Business Development for TGS-NOPEC, will discuss A2D's business and the rationale behind the acquisition. A simultaneous web-cast will also be available on TGS-NOPEC's web-site at www.tgsnopec.no.
A2D, a Houston-based company, is a one-of-a-kind, full service petroleum well log data provider that supplies oil companies operating in the exploration and production sector with an integrated solution of services, data types, and software applications designed to locate, acquire, utilize, interpret and manage well log data in a highly efficient and productive manner. The company pioneered delivering instant well log data via the Internet in early 1997. A2D's current LOG-LINEâ database at www.a2d.com includes over 1,000,000 logs from over 474,000 wells from the major producing basins in the United States. With its most recent technology improvements, A2D is adding approximately 60,000 well logs per month to its library.
TGS-NOPEC is a leading global provider of non-exclusive seismic data and associated products to the oil and gas industry. TGS-NOPEC specializes in the planning, acquisition, processing, interpretation, and marketing of non-exclusive surveys worldwide. The company places a strong emphasis on providing high quality seismic data and the highest level of service to the industry. TGS-NOPEC also offers proprietary seismic acquisition and processing services, as well as gravity and aeromagnetic surveys.
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. These include TGS-NOPEC's and A2D's reliance on a cyclical industry and principal customers, their ability to continue to expand markets for licensing of their data, and their ability to acquire and process data products at costs commensurate with profitability. Actual results may differ materially from those expected or projected. Neither TGS-NOPEC nor A2D undertakes any duty to update forward-looking statements.
TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange (OSLO:TGS).
Contact for additional information
John A. Adamick, VP Business Development
Tel +1-713-860-2100
Arne Helland, CFO
Tel : + 47 31 29 20 33 or +47 91 88 78 29