PGS acquires Arrow Seismic ASA

Petroleum Geo-Services ASA has acquired 18,359,070 shares in Arrow Seismic ASA (”Arrow”) at a price of NOK 96 per share. Following the transaction, PGS holds 18,359,070 shares in Arrow corresponding to approximately 78% of all issued and outstanding shares in Arrow.

In accordance with the Norwegian Securities Trading Act, PGS expects to proceed with a mandatory offer (the “Offer”) for the remaining outstanding shares in Arrow, at the same price (NOK 96) as the acquired shares. This represents a premium of 50% related to the last closing price of NOK 64 and a premium of 37 % to the issue price in the IPO in May 2007 of NOK 70 per share.

The mandatory Offer implies a total value of the share capital of Arrow of approximately NOK 2,256 million.

An offer document, setting out the terms and conditions of the mandatory Offer, is expected as soon as practically possible and no later than four weeks following today, as required.

PGS reserves the right to acquire additional shares in Arrow in the market, both before and during the offer period for the mandatory Offer.