SOURCE: Petroleum Geo-Services ASA

June 03, 2009 10:12 ET

PGS Sells Geo Atlantic to GC Rieber Shipping

OSLO, NORWAY--(Marketwire - June 3, 2009) - Petroleum Geo-Services ASA ("PGS" or the "Company") announced that its subsidiary Arrow Seimic Invest I Ltd. has entered into an agreement to sell the seismic vessel Geo Atlantic to GC Rieber Shipping for USD 58 million in cash. The sale is a part of the previously announced plans for asset sales, which are targeting proceeds of USD 200 million in 2009.

Jon Erik Reinhardsen, President and CEO of PGS, commented: "The purpose of the sale is to reduce debt and strengthen our balance sheet."

The asset sale will result in an accounting loss in Q2 2009, estimated at approximately USD 45-50 million. The proceeds will be used to repay debt, primarily the Arrow facilities which were established to finance Geo Atlantic and Arrow's two first new builds in Spain (New build 532 and 533). .

FOR DETAILS, CONTACT:

Tore Langballe, SVP Corporate Communications
Phone:   +47 67 51 43 75
Mobile: +47 90 77 78 41

Bård Stenberg, Investor Relations Manager
Phone: +47 67 51 43 16
Mobile: +47 99 24 52 35

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.

The information included herein contains certain forward-looking statements that address activities, events or developments that the Company expects, projects, believes or anticipates will or may occur in the future. 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. The Company is subject to a large number of risk factors including but not limited to the demand for seismic services, the demand for data from our multi-client data library, the attractiveness of our technology, unpredictable changes in governmental regulations affecting our markets and extreme weather conditions. For a further description of other relevant risk factors we refer to our Annual Report for 2007. As a result of these and other risk factors, actual events and our actual results may differ materially from those indicated in or implied by such forward-looking statements.

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