PGS to acquire depth imaging company AGS

Petroleum Geo-Services ASA has entered into a definitive agreement to acquire Applied Geophysical Services, Inc. (AGS) for a price of USD 51 million, subject to certain adjustments for changes in working capital. PGS estimates an enterprise value for AGS of approximately USD 46 million. AGS is based in Houston, Texas and specializes in providing advanced depth imaging services. The transaction is expected to close during the course of this week.

AGS specializes in delivering depth imaging services to the oil and gas industry, currently focusing primarily on the depth market in the Gulf of Mexico, using a proprietary 3D beam migration technology. AGS has more than a 20 year track record in the Gulf of Mexico. For the year 2007 to date AGS has recorded revenue of approximately USD 20 million with net income before taxes of approximately 50% of recorded revenue.