June 25, 2007: Oslo, Norway, Petroleum Geo-Services ASA ('PGS') (OSE and NYSE: PGS) announced last week that the Company had entered into a definitive agreement to acquire MTEM Ltd for a price of USD 275 million on a debt free basis.
The transaction is expected to be closed around June 29, 2007. The information below is filed to satisfy the requirements from the Oslo Stock Exhange in relation to information regarding substantial transactions in listed companies.
Key Financial Numbers for MTEM Ltd.
|
Quarter ended
March 31, |
14 months period ended December 31, 2006
Audited |
12 months period ended October 31, 2005 Audited | ||
|
(In thousands of British pounds) |
2007
Unaudited |
2006
Unaudited |
|
|
|
Revenues |
£ 1,429 |
£ 42 |
£ 518 |
£ - |
|
Operating profit |
(1,316) |
(793) |
(4,323) |
(2,226) |
|
Net result |
(2,159) |
(1,093) |
(6,403) |
(2,568) |
|
|
|
|
|
|
|
Cash (period end) |
2,260 |
915 |
2,104 |
876 |
|
Total assets (period end) |
5,065 |
1,602 |
3,828 |
1,505 |
|
Long-term liabilities (period end) |
14,020 |
5,204 |
11,859 |
3,235 |
|
Shareholders equity (period end) |
£ (10,905) |
£ (4,057) |
£ (8,746) |
£ (2,343) |
MTEM has a robust, patent protected technology and the company currently has several supplementary patent applications pending. The technology is highly complementary to PGS' own development of towed EM, the technologies together positioning PGS to address the emerging EM market.
MTEM was established in 2004 as a spin-out from the University of Edinburgh, Scotland. MTEM's technology is differentiated from competing EM technologies in that it is cable based, not node based, hence allowing acquired data to be accessed real-time. This provides the possibility to continue recording data until the quality is satisfactory before moving the equipment, reducing the risk of having to repeat the process and improving on time to delivery. Experienced personnel from international oilfield service and seismic companies have recently been recruited into the company and the integration of MTEM into PGS' global business platform will further bolster the commercial acumen within the business. MTEM currently operates two onshore crews and one offshore crew. It has its headquarters in Edinburgh, Scotland and has 67 employees and satellite offices in Houston, Calgary and Aberdeen. The company is in the early phase of commercialization.
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Petroleum Geo-Services is a focused geophysical company providing a broad range of seismic and reservoir services, including acquisition, processing, interpretation, and field evaluation. The company also possesses the world's most extensive multi-client data library. PGS operates on a worldwide basis with headquarters at Lysaker, Norway.
For more information on Petroleum Geo-Services visit www.pgs.com.
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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 various assumptions made by the Company, which are beyond its control and are subject to certain additional risks and uncertainties as disclosed by the Company in its filings with the Securities and Exchange Commission including the Company's most recent Annual Report on Form 20-F for the year ended December 31, 2006. As a result of these factors, actual events may differ materially from those indicated in or implied by such forward-looking statements.
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