PGS - Acquisition of Depth Imaging Company AGS Inc
Petroleum Geo-Services ASA ('PGS' or the Company) announced today that it has entered into a definitive agreement to acquire Applied Geophysical Services, Inc. (AGS) for a price of USD 51 million, subject to certain adjustments for changes in working capital. PGS estimates an enterprise value for AGS of approximately USD 46 million. AGS is based in Houston, Texas and specializes in providing advanced depth imaging services. The transaction is expected to close during the course of this week.AGS (www.appliedgeo.com) specializes in delivering depth imaging services to the oil and gas industry, currently focusing primarily on the depth market in the Gulf of Mexico, using a proprietary 3D beam migration technology. AGS has more than a 20 year track record in the Gulf of Mexico. For the year 2007 to date AGS has recorded revenue of approximately USD 20 million with net income before taxes of approximately 50% of recorded revenue.
Sverre Strandenes, PGS Group President Data Processing and Technology, stated the following:
"AGS and its technology will strengthen the PGS depth imaging capabilities and will constitute an important addition to our current data processing technology in line with our strategy. We are now in the position to deliver combined acquisition and processing solutions, including wide-azimuth and multi-azimuth, with unmatched efficiency and quality".
