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.

About TGS

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 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.

Sven Børre Larsen

Sven Børre Larsen

Chief Financial Officer

Tel: +47 90 94 36 73

Ellen Munkvold

Ellen Munkvold

IR Coordinator

Tel: +47 97 76 26 25