Asker, Norway (16 November 2007). TGS-NOPEC Geophysical Company ("TGS") announced today that it has secured a new pre-commitment contract of approximately $40 million for the company's first wide-azimuth ("WAZ") multi-client 3D survey. This contract represents the largest single pre-funding commitment ever captured by TGS and supplements significant previously announced pre-funding already in place. The initial program, referred to as "mcWAZ Phase 1" will cover approximately 650 OCS blocks (~15,000 square kilometers) in the Mississippi Canyon and Atwater Valley areas of the Gulf of Mexico.
Mississippi Canyon is a highly prolific hydrocarbon producing province with many notable oil and gas fields such as Thunderhorse, Mars, Thunderhawk and Devil's Tower. Survey acquisition is expected to commence around year end 2007 and initial preliminary products are scheduled to be available in summer 2008. Final products will include both anisotropic Kirchhoff and anisotropic Wave Equation Pre-stack Depth Migration ("PSDM"). Additionally, TGS is re-processing its existing Mississippi Canyon Revival 3D data using Turning Wave Kirchhoff PSDM with anisotropy correction in order to create a refined salt model for initial input into the mcWAZ processing sequence. Over 250 wells are being utilized for the anisotropic calibration. TGS believes that the mcWAZ program is the world's largest contiguous WAZ program as well as the world's largest 3D survey with anisotropic well calibration.
"Over the last several months TGS has positioned itself to become a major player in multi-client wide-azimuth programs. The support we have generated for the mcWAZ program demonstrates the industry's confidence in our capabilities", said Hank Hamilton, TGS CEO.
TGS expects to secure additional commitments to the project prior to the end of the year.
TGS-NOPEC Geophysical Company (TGS) is a principal resource for global geoscientific data products and services in the E&P industry. TGS specializes in the design, acquisition and processing of multi-client seismic surveys worldwide and delivers advanced high performance seismic imaging and software solutions. The Company also provides the world's largest online well-log database, well data management services, multi-client interpretive products and subsurface consulting services to industry. The suite of integrated exploration data products available from TGS is distinctive and unmatched. The Company philosophy is to create unique high-quality data collected in the right place at the right time.
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 that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. These factors include TGS' reliance on a cyclical industry and principal customers, TGS' ability to continue to expand markets for licensing of data, and TGS' ability to acquire and process data products at costs commensurate with profitability. Actual results may differ materially from those expected or projected in the forward-looking statements. TGS undertakes no responsibility or obligation to update or alter forward-looking statements for any reason.
TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange (OSLO: TGS).
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 that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. These factors include TGS' reliance on a cyclical industry and principal customers, TGS' ability to continue to expand markets for licensing of data, and TGS' ability to acquire and process data products at costs commensurate with profitability. Actual results may differ materially from those expected or projected in the forward-looking statements. TGS undertakes no responsibility or obligation to update or alter forward-looking statements for any reason.
TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange (OSLO: TGS).
For more information about this news release, please contact:
Arne Helland
Title: Chief Financial Officer
Tel: +47 66 76 99 31/+47 91 88 78 29
Email: arne.helland@tgsnopec.no
Title: Chief Financial Officer
Tel: +47 66 76 99 31/+47 91 88 78 29
Email: arne.helland@tgsnopec.no
John Adamick
Title: VP Business Development
Tel: +1 713 860-2114
Email: jada@tgsnopec.com