We conduct contract onshore and transition zone seismic acquisition throughout the world and operated between eight and eleven crews in 2006. We also have our own onshore multi-client library, which is located entirely in the US. Our high channel count crews, modern equipment, including desert and arctic environmental specific operating gear, and experienced technical staff secure the highest efficiency combined with the best data quality.

We have demonstrated market-leading seismic service performance, operating seismic crews in the terrain types: desert, arctic, jungle and swamp, highland and mountaintop, and transition zone.

As of December 31, 2006, we had eight onshore crews conducting activities in the US,
Canada and Libya.

2006 Operational performance
Onshore revenues for 2006 increased by 73% to USD 263.4 million compared with 2005. The operating profit was USD 37.7 million, compared to an operating loss of USD 9.8 million in 2005. The performance in 2006 was primarily affected by strong performance on projects in Libya as well as good multi-client sales in the US.

At December 31, 2006, our order backlog for onshore seismic was USD 138 million, compared with USD 137 million at December 31, 2005.

2006 HSE Performance
Onshore operations recorded a Lost Time Incidents Frequency (LTIF) of 0.22 incidents per million man hours and a Total Recordable Case Frequency (TRCF) of 2.73 incidents per million man hours during the year, compared to a LTIF and TRCF of 0.33 and 2.68, respectively, in 2005.

RRevenues n USD million (US GAAP)

Adjusted EBITDA in USD million (US GAAP)

Competitive advantage
Equipping our highly-experienced personnel with fully-compatible, state of the art recording electronics allows us to deploy on average more channels per crew than other companies. We offer traditional 3D and HD3D® acquisition with the highest efficiency. Hands-on experience executing HD3D® surveys and experienced technical staff secure optimal survey design and high data quality.

Proactive social development programs have created a competitive advantage in countries like Bangladesh, Bolivia, Ecuador and Mexico. We work to establish a good relationship and communication with the local population in the areas where we work and strive to ensure that the jobs go to the people in the area. We also sponsor educational programs, among other efforts to promote social development.

Market and market position
In the market for onshore seismic services, we are one of the larger worldwide operators, measured in terms of revenues. We compete in the onshore segment based on price, crew availability and other factors. We believe that we can remain competitive by capitalizing on our project execution and management skills and by continuing to provide a high-quality technical product. The majority of our recording equipment pool is relatively uniform, facilitating changing crew counts and channel counts on any specific crew as the market dictates.

Onshore Market Perspectives
We expect an improvement in the onshore seismic markets in Alaska, the US and North Africa in 2007, compared to 2006. In Canada, Latin America, the Middle East and South East Asia, we expect to see flat development, while West Africa is expected to show a decline in activity in 2007.

Onshore Multi-Client Library
Onshore has a multi-client data library which covers a wide range of terrain, entirely in the United States, from shallow water 3D data images in the Texas Gulf Coast to HD3D® data in the Alaskan Foothills. PGS Onshore is expanding the multi-client library in the U.S. mid-continent. The onshore multi-client library has a size of approximately 8 000 square kilometers and is included in our multi-client library.

Goals and strategies
Onshore will continue its focused market approach and financial discipline going forward. We will use our operational expertise and standardized equipment to improve our financial performance. We will continue our social responsibility program and efforts to promote HD3D® in the onshore market.

Outlook
We expect revenues and operating profit in Onshore in 2007 to be approximately in line with 2006, when revenues were USD 263 million and operating profit was USD 38 million. Cash investments in the multi-client library in 2007 are expected to be approximately USD 60 million, compared to USD 32 million in 2006. Capital expenditure in Onshore is expected to be approximately USD 20-25 million in 2007, compared to USD 17 million in 2006.