SKØYEN, NORWAY (4 December 2015) - Starting late 2014 there has been a process involving most of the companies within the seismic industry addressing a common implementation of an amendment to IAS 38 Intangible assets. The amortization method for the seismic multi-client libraries will change with effect from 1 January 2016.
SPU will, along with other companies within the industry, adopt the following changes to the amortization policy:
* During the work in progress (WIP) phase, amortization will continue to be based on total cost versus forecasted total revenues of the project.
* After a project is completed, a straight-line amortization is applied. The
straight-line amortization will be assigned over the project's remaining useful life, which for most projects is expected to be 4 years. The straight-line amortization will be distributed evenly through the financial year independently of sales during the quarters. As such the correlation to sales will no longer be relevant to reported late sales for a specific period.
The minimum amortization policy will be discontinued from 1 January 2016.
The changes to multi-client library amortization will be applied prospectively as from 1 January 2016.
"Spectrum provides innovative Multi-Client seismic surveys and high-
quality seismic imaging services to the global oil and gas industry from
offices in Norway, UK, USA, Brazil, Egypt, Australia, Indonesia and
Singapore. Spectrum designs, acquires and processes seismic data to deliver
high quality solutions through its dedicated and experienced workforce.
Spectrum holds the world's largest library of Multi-Client 2D marine seismic
data and a significant amount of 3D seismic. The company's strategy focuses on
both the major, established hydrocarbon-producing regions of the world as well
as key frontier areas identified by our experienced team of geoscientists. The
Spectrum library of Multi-Client data contains projects from many of the
foremost oil producing regions of the world. These include new acquisition,
reprocessing and interpretation reports."
www.spectrumgeo.com
Spectrum ASA is listed on the Oslo Stock Exchange (OSLO:SPU).
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)