Oslo, Norway (14 August 2019) - TGS-NOPEC Geophysical Company ASA ("TGS", OSE: TGS) announced today that it has completed its acquisition of Spectrum ASA (“Spectrum”, OSE: SPU), creating a leading global multi-client geophysical data provider. TGS first announced its intent to acquire Spectrum on 2 May 2019.
Completion of the acquisition and the merger plan has today been registered with the Norwegian Register of Business Enterprises. As a consequence and following the issuance of 16,076,047 consideration shares to the former shareholders of Spectrum, the new share capital of TGS is NOK 29,680,959.25 divided on 118,723,837 shares each with a nominal value of NOK 0.25.
Commenting on the acquisition, Kristian Johansen, CEO of TGS, said, “We are pleased to have formally closed the transaction to acquire Spectrum. Spectrum's portfolio will enhance TGS' position as a leading multi-client geophysical data provider covering all mature and frontier basins. The acquisition fits well with our asset-light business model and provides significant momentum to deliver on our long-term strategy. Further, the combination of TGS and Spectrum has been well received by our clients who will benefit from our comprehensive data library, quality and service.”
Mr. Johansen continued, “As we now move into the integration process, I’m pleased to announce that we have seen a great start to the third quarter. The combined company has already secured several larger data sales and pro-forma revenues for Q3 2019 are expected to be in excess of MUSD 250. Our strong performance is mainly due to higher license round activity in regions where TGS and Spectrum have strong data coverage and revenues related to acreage turnover.”
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 analytics and integration solutions.
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. 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 or contact:
Sven Børre Larsen
Chief Financial Officer
Tel: +47 90 94 36 73
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act