TGS-NOPEC completes farm-out of Rhône acreage
09 March 2005OSE
Houston, Texas (9 March, 2005) - TGS-NOPEC Geophysical Company today announced the farm-out of its Rhône Maritime Exploration permit to Melrose Resources PLC. The permit covers 25,000 square kilometers in the Gulf of Lion, located off the Mediterranean coast of southern France.
The French Ministère De L'Economic, Des Finance Et De L'Industrie approved the transfer of TGS' beneficial interest to Melrose earlier this month. TGS expects to work closely with Melrose during an ongoing technical evaluation of the permit acreage. Terms of the farm-out agreement include a staged payment schedule and a retained net profits interest in the permit for TGS.
Kjell Trommestad, TGS VP and General Director Europe, commented on the agreement. "The successful transfer of our acreage in Rhône proves the viability of the farm-out method on the exploration frontier. By incorporating different risk models into our data product offerings, we are able to create a greater flexibility of options for companies moving in new and bold directions. We look forward to working with Melrose during the technical evaluation of the permit area."
TGS-NOPEC Geophysical Company (TGS) is a leading global provider of multi-client geoscientific data, associated products and services to the oil and gas industry. TGS specializes in the creation of non-exclusive seismic surveys worldwide. The company also provides advanced depth imaging solutions and software through its TGS Imaging division. A2D Technologies, a wholly-owned subsidiary, is the energy industry's well log data marketplace offering the largest online database, immediate delivery, conversion services, data management services and worldwide well log data sourcing. The TGS family of companies places a strong emphasis on providing high-quality data and the highest level of service to the industry. 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 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. TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange (OSLO:TGS).
John AdamickSenior VP, Geological Products and Services
Tel: +1 713 860 2100