OSLO, Norway (1 July 2022) - TGS ASA, a global provider of energy data and
intelligence, today announced that it has been named a successful bidder in the
auction process conducted in connection with ION Geophysical Corporation's (ION)
Chapter 11 bankruptcy case pending in the United States Bankruptcy Court for the
Southern District of Texas.
As a result, TGS will acquire certain assets related to ION's multi-client and
processing businesses (referred to as the E&P Technology and Services (EPTS)
business), including all of ION's global offshore multi-client data library and
ION's data processing and imaging capabilities and intellectual property. ION's
data library consists of over 637,000 km of 2D and over 317,000 sq km of 3D
multi-client seismic data in major offshore petroleum provinces globally. The
revenues associated with the acquired assets were in excess of USD 86M in 2021.
TGS intends to employ a number of the ION employees associated with the acquired
businesses. The transaction is subject to the approval of the United States
Bankruptcy Court for the Southern District of Texas at a hearing currently
scheduled for 18 July 2022, as well as other customary closing conditions.
Assuming court approval is received as anticipated, TGS expects to close the
transaction early in the third quarter of 2022.
Kristian Johansen, CEO at TGS, said: "We are pleased to be selected as a
successful bidder in this auction process and look forward to the conclusion of
the transaction. With the recently announced offer for Magseis Fairfield's OBN
business and a further strengthening of our data library and processing
capabilities from the acquisition of the ION EPTS businesses, TGS is taking
active steps to consolidate the geophysical industry in line with our strategy
to create a stronger and more viable industry. As a result, we are now uniquely
positioned in the traditional multi-client business, converted contracts,
production seismic and 4D - all supported by a strengthened data processing
business."
With a solid balance sheet and continued strong cash flow, TGS will fund the
transaction from its current cash holding.
Further information regarding this acquisition and the other two strategic
initiatives announced by TGS this week will be provided in a conference call at
14:00 (CEST) on Tuesday 5 July 2022 and in relation to Q2 2022 reporting on 21
July 2022. Dial-in details will be provided in a separate announcement.
About TGS
TGS provides scientific data and intelligence to companies active in the energy
sector. In addition to a global, extensive and diverse energy data library, TGS
offers specialized services such as advanced processing and analytics alongside
cloud-based data applications and solutions.
Forward Looking Statement
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 product at costs commensurate with profitability, as
well as volatile market conditions, which have been exacerbated by the COVID-19
pandemic and the severe drop in oil prices. 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.
For more information, visit TGS.com (http://www.tgs.com) or contact:
Sven Børre Larsen
Chief Financial Officer
investor@tgs.com (mailto:investor@tgs.com)