Press Releases

TGS Named Successful Bidder in the Auction Process for ION Assets

OSLO, Norway (1 July 2022) – TGS ASA, a global provider of energy data and intelligence, today announced that it has been named a successful bidder in the auction process conducted in connection with ION Geophysical Corporation’s (ION) Chapter 11 bankruptcy case pending in the United States Bankruptcy Court for the Southern District of Texas. 

 

As a result, TGS will acquire certain assets related to ION’s multi-client and processing businesses (referred to as the E&P Technology and Services (EPTS) business), including all of ION’s global offshore multi-client data library and ION’s data processing and imaging capabilities and intellectual property. ION’s data library consists of over 637,000 km of 2D and over 317,000 sq km of 3D multi-client seismic data in major offshore petroleum provinces globally. The revenues associated with the acquired assets were in excess of USD 86M in 2021. TGS intends to employ a number of the ION employees associated with the acquired businesses. The transaction is subject to the approval of the United States Bankruptcy Court for the Southern District of Texas at a hearing currently scheduled for 18 July 2022, as well as other customary closing conditions.

 

Assuming court approval is received as anticipated, TGS expects to close the transaction early in the third quarter of 2022.

 

Kristian Johansen, CEO at TGS, said: “We are pleased to be selected as a successful bidder in this auction process and look forward to the conclusion of the transaction. With the recently announced offer for Magseis Fairfield’s OBN business and a further strengthening of our data library and processing capabilities from the acquisition of the ION EPTS businesses, TGS is taking active steps to consolidate the geophysical industry in line with our strategy to create a stronger and more viable industry. As a result, we are now uniquely positioned in the traditional multi-client business, converted contracts, production seismic and 4D – all supported by a strengthened data processing business.”

 

With a solid balance sheet and continued strong cash flow, TGS will fund the transaction from its current cash holding.

 

Further information regarding this acquisition and the other two strategic initiatives announced by TGS this week will be provided in a conference call at 14:00 (CEST) on Tuesday 5 July 2022 and in relation to Q2 2022 reporting on 21 July 2022. Dial-in details will be provided in a separate announcement.

 
About TGS
TGS provides scientific data and intelligence to companies active in the energy sector. In addition to a global, extensive and diverse energy data library, TGS offers specialized services such as advanced processing and analytics alongside cloud-based data applications and solutions.
 
Forward Looking Statement
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, as well as volatile market conditions, which have been exacerbated by the COVID-19 pandemic and the severe drop in oil prices. 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