TGS acquires Arcis Seismic Solutions for $72 million

PRESS RELEASE

TGS-NOPEC Geophysical Company ("TGS") announces the acquisition of Calgary-based Arcis Seismic Solutions Corp. The total equity value is approximately US $51 million, reflecting an enterprise value of US $72 million, based on net debt at the date of acquisition.

Arcis is a privately owned geophysical company founded in 1996 with a head office located in Calgary, Alberta Canada and a strong regional business development presence in Latin America (Colombia) and the Middle East/North Africa (Cyprus). Arcis has built one of the most modern 3D seismic data libraries in the Western Canadian Sedimentary Basin. The 3D multi-client library consists of 12,689 km2 with core activity in many prolific hydrocarbon trends in Alberta, British Columbia and Saskatchewan (including Bakken, Horn River, Montney and Duvernay). Arcis has complemented its data library through offering global seismic solutions that include seismic data processing (using its APXTM processing platform), reservoir analysis, geoconsultancy and project management. Arcis employs over 80 professional and technical personnel who have a broad range of skills, expertise and experience. In 2010 and 2011, Arcis generated average annual revenues of CAD 50 million.

As a wholly-owned subsidiary of TGS, Arcis will continue to invest in multi-client projects in Canada, provide proprietary imaging services to external customers worldwide and will play a vital role in the processing of TGS' own multi-client surveys. The Arcis acquisition will allow TGS to grow into the onshore multi-client and imaging business in Canada and other markets served by Arcis. This acquisition further strengthens TGS' ability to meet its recently revised guided revenue and investment targets for 2012. The acquisition will be consolidated into TGS accounts as of 1 July 2012.