Today, PGS operates through our two business units, Marine and Onshore. The principal offices are at Lysaker, Norway. We are represented in 26 different countries with larger regional offices in London, Houston and Singapore. PGS had 3,168 full time employees at year end 2006. Our revenues for 2006 were approximately USD 1.3 billion.
We provide a broad range of geophysical and reservoir services globally, including seismic data acquisition, processing and interpretation and field evaluation. We are one of the world’s leading operators in marine seismic, with a global market share of approximately 28 percent. In the market for onshore seismic services, we are one of the larger operators worldwide.

Market outlook 2007
The markets in which we operate showed strong improvement in 2006. Oil prices remained at high levels, and oil companies increased their exploration and production (E&P) spending. E&P spending is expected to increase further in 2007 and, in the medium to long-term, high oil price levels are expected to positively impact our core markets.

The global marine seismic fleet was at full capacity utilization in 2006. Demand is expected to increase further in 2007, outweighing increase of marine seismic capacity and resulting in further improved prices. However, as the industry is operating at full capacity, we experience significant cost inflation, which we expect to continue in 2007.

In 2007, we expect the following factors to influence our performance:

Marine

• Marine contract EBIT margin expected to increase substantially to around 50-55%
• Multi-client revenues expected to be higher than 2006
• Multi-client investments are expected to be approximately USD 170-190 million
• Capital expenditure is expected to be approximately USD 200 million

Onshore

• Revenues and operating profit expected to be approximately in line with 2006
• Multi-client investments are planned to be approximately USD 60 million
• Capital expenditure is expected to be in the range of USD 20-25 million