TGS-NOPEC signs LOI to acquire Riley Log.

Houston, Texas and Naersnes, Norway (November 2, 2003) - TGS-NOPEC Geophysical Company L.P., a subsidiary of TGS-NOPEC Geophysical Company ASA, and Divestco Inc., a Canadian corporation, have signed a letter of intent whereby TGS-NOPEC will acquire all shares of Divestco's subsidiary, Riley Electric Log Inc. as well as a license to software and about 1,2 million depth-calibrated images of Canadian well logs for approximately $9 million U.S. dollars. The parties plan to finalize the transaction by December 31, 2003.

 

Following closing, TGS-NOPEC intends to merge Riley Electric Log and the other acquired assets into its subsidiary, A2D Technologies Inc.  In the last 55 years, Riley Electric Log has built the most extensive collection of hard-copy well logs in the U.S., numbered at over 3 million.  These well logs will serve as a comprehensive source for expansion of A2D's industry-leading digital well log database, LOGLINE Plus!.  

 

Hank Hamilton, TGS-NOPEC's Chief Executive Officer, said "We view this transaction as a logical and fundamental step towards our long-term strategic goal of developing the world's best multi-client library of geoscientific data."

 

David Kotowych, President of A2D Technologies, said "The Riley acquisition represents an exciting path to accelerating completion of our U.S. digital well log inventory, adding tremendous value to the total well log solution we provide for our customers in this market."

 

TGS-NOPEC is a leading global provider of multi-client geoscience data and associated products and services to the oil and gas industry. TGS-NOPEC specializes in the planning, acquisition, processing, interpretation, and marketing of non-exclusive seismic surveys worldwide. The TGS-NOPEC group places a strong emphasis on providing high quality data and the highest level of service to the industry.

 

A2D Technologies, a wholly owned subsidiary of TGS-NOPEC Geophysical Company, pioneered the delivery of digital well log data over the Internet and currently offers a one-of-a-kind integrated solution for well log data sourcing, well log data management, and well log correlation.

 

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 reliance on a cyclical industry and principal customers, the company's ability to continue to expand markets for licensing of data, and the company's ability to acquire and process data products at costs commensurate with profitability.  Actual results may differ materially from those expected or projected.  TGS-NOPEC undertakes any duty to update forward-looking statements.

 

TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange (OSLO:TGS).