SOURCE: TGS

TGS

December 04, 2015 01:00 ET

TGS - Changes to Multi-Client Library Amortization From 1 January 2016

ASKER, NORWAY--(Marketwired - Dec 4, 2015) - Due to an amendment to IAS 38 Intangible assets, the amortization method for the seismic multi-client libraries will have to change with effect from 1 January 2016.

After an extensive process involving industry participants, TGS and PGS have decided to 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 a 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.

Today's minimum amortization policy will no longer be relevant.

The changes to multi-client library amortization will be applied prospectively as from 1 January 2016.

Company summary

TGS-NOPEC Geophysical Company (TGS) provides multi-client geoscience data to oil and gas Exploration and Production companies worldwide. In addition to extensive global geophysical and geological data libraries that include multi-client seismic data, magnetic and gravity data, digital well logs, production data and directional surveys, TGS also offers advanced processing and imaging services, interpretation products, and data integration solutions.

TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange (OSLO: TGS). TGS sponsored American Depositary Shares trade on the U.S. over-the-counter market under the symbol "TGSGY".

For more information visit TGS online at www.tgs.com.

Forward-looking statements

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 principle 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.

Contact Information

  • Contact information

    For additional information about this press release please contact:

    Sven Borre Larsen
    Chief Financial Officer
    Tel: +47 90 94 36 73

    Will Ashby
    Director Finance Western Hemisphere & Investor Relations
    Tel: +1 713 860 2184
    Email: will.ashby@tgs.com

    This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.