Geokinetics Completes Acquisition of PGS Onshore Seismic Business

Geokinetics Inc. has completed its acquisition of Petroleum Geo-Services’ (PGS) onshore seismic data acquisition and multi-client data library business.  The purchase price paid by Geokinetics at closing was $210 million, on a cash-free, debt-free basis, less a $2.8 million adjustment for estimated net working capital below the included amount of $37.5 million. The purchase price is subject to certain additional working capital adjustments after closing.

            “The combination of PGS Onshore and Geokinetics solidifies our position as the clear leader in the onshore seismic data acquisition business,” said Richard Miles, President and CEO, Geokinetics. “It not only brings together two strong, complementary seismic data acquisition operations, but it also accelerates our strategic initiatives in the multi-client library business. We are pleased to welcome the management and employees of PGS Onshore to our team and look forward to providing our customers worldwide with an expanded array of best-in-class services and data.”

            As of year-end 2009, Geokinetics’ backlog was $190 million, and combined with PGS Onshore’s backlog, the merged company’s pro-forma backlog was $378 million.

            “In the prevailing climate of general economic uncertainty, our customers are being cautious and are taking longer than normal to award projects,” said Miles. “However, bid activity is increasing and we remain optimistic that as customer confidence returns, we will see significant awards in the coming months.”

www.geokinetics.com

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