Press Releases

TGS comments on restructuring agreement

ASKER, NORWAY (27 December 2011) - Reference is made to TGS' Q3 Earnings Release announced on 3 November 2011, regarding Note 6 "Other non-current assets". Other non-current assets comprise two interest bearing convertible loans to the E&P Holding Group (E&P Holding and Skeie Energy). The two loan agreements of USD 21.0 million and USD 21.1 million matured on 31 December 2010 and will mature on 31 December 2014, respectively. Net of the related revenue share to partners, TGS exposure to the E&P Holding Group is USD 29.4 million.

As part of a restructuring agreement signed on 23 December 2011, TGS has decided, subject to the raising of new equity in Skeie Energy and a restructuring of the Group's indebtedness, to convert its outstanding loan to Skeie Energy AS to equity during the first half of 2012. Although the detailed terms of the transaction are still under negotiations, TGS expects that part of its net exposure of USD 29.4 million to the E&P Holding Group will be written off in relation to the Company's Q4 results due 9 February 2012.