TGS Acquires Stingray Geophysical Ltd. to Establish Strong Position in the Permanent Reservoir Monitoring Market
(Thomson Reuters ONE) -
ASKER, NORWAY (11 April 2011) - TGS-NOPEC Geophysical Company ASA (TGS) has
entered into an agreement to acquire 100% of the shares of Stingray Geophysical
Limited (Stingray). The transaction will provide TGS with a strong position in
the rapidly growing market for Permanent Reservoir Monitoring (PRM) solutions.
The acquisition will substantially increase TGS' addressable market through
access to production seismic spending from large international oil companies as
well as national oil companies (NOCs), while maintaining its successful asset
light model.
Stingray was founded in March 2006 and is located in Guildford, United Kingdom.
The company possesses unique and patented fiber-optic sensing technology for
seismic PRM and other oil and gas applications.
The core technology for Stingray's fiber-optic sensing system was originally
developed in the mid-nineteen eighties, for anti-submarine defense applications.
Since Stingray's incorporation in 2006, Stingray has been backed by a consortium
led by the venture-capitalist firms Energy Ventures, Chevron Technology
Ventures, Energy Capital Management/Statoil Venture and Cody Gate Ventures.
Including the defense investment, more than USD 80 million has been invested in
the technology to date.
Robert Hobbs, CEO of TGS said, "The age of "easy to find" oil is over, forcing
oil companies to increase investment in their existing fields to extend
production and increase recovery factors. The acquisition of Stingray allows TGS
to access a larger portion of the reservoir optimization market. The
combination of TGS and Stingray will leverage both companies' strengths to
create a powerful PRM offering to the industry."
Martin Bett, Managing Director of Stingray added, "TGS brings complementary
capabilities, a global organization, established seismic project management
skills and financial strength to Stingray. As a part of TGS, Stingray is now
well positioned to deliver innovative PRM solutions that will assist our clients
to increase production and reserves whilst decreasing risk and costs of their
Enhanced Oil Recovery programs."
The 4D seismic market, of which PRM is an integral and increasing part, was
estimated to be over USD 1 billion in 2010 with the majority of data being
acquired by towed streamers (source: ODS PetroData). Expectations are for the
4D market to exceed USD 2.5 billion within the next four years (source: Stingray
estimate). New PRM installations are expected to trend towards optical versus
electrical solutions due to the expected increase in reliability and flexibility
that this technology offers, especially in deep water.
The transferred assets include 11 employees and an extensive portfolio of
intellectual property. All management team members and employees of Stingray
will continue as employees of TGS.
The consideration for 100% of the shares is based on an initial payment of USD
45 million and incremental payments of up to USD 35 million based on the success
in commercializing the technology.
The transaction is expected to complete in April 2011.
TGS has published additional information regarding Stingray on the Company's
website. To access this presentation click here.
CEO Robert Hobbs will also host a conference call on 11 April 2011 at 15:00 CET
(9:00 AM New York time). Norwegian attendees are invited to call +47 2415 9757
or 800 19641, United Kingdom attendees are invited to call +44 (0)20 7138 0845
or 0800 032 3808 and USA attendees are invited to call +1 866 602 0258.
Attendees may want to call 5-10 minutes before 15:00 CET (9:00 AM NY) to ensure
registration and access.
Participants will need to quote the following confirmation code when dialing
into the conference: 5146498.
A Q&A session will follow a short introduction, based upon the published
information. To pose a question, please press *1.
A replay of the conference call will be available shortly after. To access the
replay of TGS conference call,
· dial +47 2100 0498 (Norway), +44 (0) 20 7111 1244 (United Kingdom) or
+1 347 366 9565 (USA)
· replay access code 5146498 followed by # (pound-sign)
A replay of the conference call will also be available atwww.tgsnopec.com.
For additional information about this press release please contact:
Kristian Johansen
Chief Financial Officer
Office: +47 667 69931
Cell: +47 47 60 33 34
Email:kristian.johansen(at)tgsnopec.com
Karen El-Tawil
VP, Business Development
Office: +1 713 860 2102
Cell: +1 713 806 2420
Email:karen.el-tawil(at)tgsnopec.com
Company summary
TGS-NOPEC Geophysical Company (TGS) provides global geoscience data products and
services to the oil and gas industry for the exploration and delineation of
hydrocarbon reserves. We design and acquire multi-client data projects
worldwide that make up our data library of seismic, gravity/magnetic and well
data, enhanced by our seismic imaging technology and regional interpretation
expertise. Visit TGS online at www.tgsnopec.com.
Forward-looking statements and contact information
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).
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: TGS via Thomson Reuters ONE
[HUG#1505003]
Unternehmensinformation / Kurzprofil:
Datum: 11.04.2011 - 07:50 Uhr
Sprache: Deutsch
News-ID 53349
Anzahl Zeichen: 7255
contact information:
Town:
Asker
Kategorie:
Business News
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