PGS is committed to providing the financial community with good, relevant and timely information regarding the company. PGS policy is to treat all stakeholders equally.

PGS Market Capitalization in USD million

Market capitalization as of December 31, 2006 includes market capitilization of Petrojarl.

PGS Shareholders Citizenship as of December 31, 2006 in percent

Shareholder policy
All company information from us that is considered relevant for our shareholders is published via the Oslo Stock Exchange (OSE), sent to the New York Stock Exchange (NYSE) and posted on our web site, www.pgs.com. We hold public presentations and arrange conference calls in conjunction with the release of our quarterly results. We host an annual Capital Markets Day and our management meets regularly with investors in the United Kingdom and US, as well as
attending external conferences.

We have been awarded both the Information Symbol and the English Symbol by the Oslo Stock Exchange. The information symbol is awarded to companies that meet, among other things, defined standards for the information provided on their web site. The English Symbol is awarded to companies that meet all the requirements for the Information Symbol in English.

Dividend policy and share buybacks
PGS has authorization to buy back up to 10% of our own share capital, corresponding to a total of up to 18 million shares. The authorization is valid until July 15 2007. In January 2007, we began executing share repurchases and held as of May 30, 2007, 3 746 500 shares, or 2.08% in PGS.

We have asked our annual general meeting to renew the authorization to repurchase up to 10% of our share capital. If this is approved, the new authorization will be valid for a period of 12 months.

We have proposed a special dividend of NOK 10 per share as a result of the excellent financial results in 2006. If the proposal is approved on our annual general meeting in June, the dividend of in total approximately USD 300 million will be paid around mid July 2007.

The geophysical industry remains cyclical. We therefore target strong financial flexibility going forward. We aim for a “BB”rating from Standard and Poor’s which corresponds to a gross debt of between USD 200 and 800 million, depending on market strength and visibility, as well as capital commitments and plans. As of December 31, 2006, PGS had a gross debt of USD 338 million.

Rank	Shareholder	Shares	Percentage
1	State Street Bank & Trust Co. (nominee)	13 876 804	7.7
2	Citibank N.A., holder of American Depositary Shares (ÒADSÓ) (nominee)1	12 698 435	7.1
3	Folketrygdfondet	12 485 160	6.9
4	Morgan Stanley & Co. (nominee)	12 319 195	6.8
5	Umoe Shipping and Energy AS	11 775 822	6.5
6	Morgan Stanley & Co. (nominee)	4 659 387	2.6
7	Vital Forsikring ASA	3 585 174	2.0
8	HSBC Bank PLC (nominee)	3 190 245	1.8
9	RBC Dexia Investor (nominee)	3 146 952	1.7
10	JP Morgan Chase Bank - UK (nominee)	2 664 538	1.5
11	State Street Bank & Trust Co. (nominee)	2 490 328	1.4
12	Credit Agricole (nominee)	2 308 278	1.3
13	Mellon Bank as agent (nominee)	2 125 241	1.2
14	JP Morgan Chase Bank - USA (nominee)	2 111 778	1.2
15	DnbNor Norge	1 820 791	1.0
16	UBS AG, London Branch	1 815 905	1.0
17	Bank of New York	1 796 568	1.0
18	Odin Norden	1 758 200	1.0
19	Fortis Bank Luxembourg	1 663 034	0.9
20	JP Morgan Chase Bank Ð Luxembourg (nominee)	1 631 709	0.9
1 On the basis of existing depository agreements regarding owners of the ADSs, the table above does not disclose the beneficial owners of shares.
on pgs.com

Guidance for Marine
Based on work performed so far in 2007, our order backlog for work scheduled for 2007 and our expectations regarding future contracts, we expect Marine streamer contract EBIT margins to increase from approximately 40% in 2006 to 50-55% in 2007.

Primarily based on our plans regarding increasing our multi-client investments to USD 170-190 million in 2007, up from USD 81 million in 2006, and the associated pre-funding revenues related to these investments, we expect marine multi-client revenues to be higher in 2007 than 2006. In 2006, the marine multi-client revenues were USD 353 million.

We expect to increase our capital expenditures to approximately USD 200 million in 2007, up from USD 146 million in 2006. The increase is primarily a result of our ongoing program to build to new Ramform vessels.
We have two new Ramform vessels being built currently. The first, Ramform Sovereign¸ is expected to be delivered in the first quarter of 2008. The total cost for the two vessels is expected to be approximately USD 330 million, excluding project management costs and interest. We estimate that the total payments in 2007 relating to the construction of these vessels to be approximately USD 95 million.

Under our current streamer expansion, upgrade and replacement program, we expect to spend approximately USD 30-50 million per year in 2007-2012. Since this program is discretionary, we may in the future change the scope and annual capital expenditures related to the program.

Guidance for Onshore
We expect to have between eight and twelve crews working in 2007, approximately the same number as in 2006. The revenues in Onshore are expected to be approximately in line with 2006 when they were USD 263 million.
Based on our order backlog and likely additional contract awards, we expect to be able to maintain a margin on contract work comparable with 2006 levels. We expect the operating profit for Onshore in 2007 to be approximately in line with 2006. The operating profit in Onshore in 2006 was USD 38 million.

We expect to increase our investments in the Onshore multi-client library from USD 32 million in 2006 to approximately USD 60 million in 2007. We expect increased pre-funding revenues due to increased multi-client activity.

We expect the capital expenditures in Onshore to be USD 20-25 million in 2007, up from USD 17 million in 2006.

Interest rate risk
As of December 31, 2006, we had a total outstanding indebtedness of USD 338 million, of which USD 80 million bore interest at a fixed rate and USD 258 million bore interest at a variable rate. The weighted average interest rate on the variable rate debt, including capital leases, as of December 31, 2006 was approximately 7.6%. Through interest rate swaps we have effectively fixed the interest rate on USD 175 million of this term debt as of December 31, 2006. For every one percentage point increase in LIBOR, our annual net interest expense on our variable rate debt, including capital leases, would increase by approximately USD 0.8 million.

Foreign currency exchange rate risk
Our cash flow from operations are primarily denominated in US dollar (USD), British pounds (GBP) and Norwegian kroner (NOK). We predominantly sell our products and services in USD, while a significant portion of our operating expenses is incurred in GBP and NOK. As a result, when the USD strengthens in relation to the GBP, NOK and any other currencies in which we incur operating expenses, our USD reported expenses will decrease.

We hedge a portion of our foreign currency exposure related to ongoing cash expenditures by entering into forward currency exchange contracts. As of December 31, 2006, we had net open forward contracts to buy GBP, NOK and Euro amounting to approximately USD 314 million with a fair value of USD 6 million (gain).

If NOK had appreciated by an additional 10% against USD at year-end, the fair value of the forward contracts on buying NOK would have increased by USD 26 million. A similar 10% appreciation of GBP against the USD would have increased the fair value of the forward contracts on buying GBP by USD 6 million and a 10% appreciation for Euro would have decreased the fair value of the forward contracts on buying Euro by USD 0.06 million.

Commodity risk
In our operation of our seismic vessels we use substantial quantities of fuel. Based on our fuel consumption in 2006, if fuel prices were to increase by 10%, our annual fuel costs would increase by approximately USD 8 million. We do not hedge this position through derivative instruments.

PGS versus market 2006
PGS share price (NOK) versus market and sector


Share facts
PGS ordinary shares are primary listed on the OSE, under the symbol “PGS”, denominated in Norwegian kroner (NOK). PGS shares are also traded on the NYSE in the form of American Depositary Shares (ADS), under the symbol “PGS”, denominated in US dollars (USD). Each ADS represents one share. PGS has 180 million shares, each with a par value of NOK 3.

We have started a process to delist our ADSs from the New York Stock Exchange and deregister our ADSs under the US Securities Exchange Act due to the limited trading of our ADSs in the US and the cost and complexity of maintaining dual listing. With the increased sophistication and transparency of the capital markets worldwide, we believe the value of maintaining a dual listing is reduced. We expect the delisting to occur during the summer of 2007.

Analyst coverage
As of December 31, 2006 there were fifteen equity sell-side analysts that cover PGS on a regular basis with market updates and estimates for PGS’s financial results. Out of these, one is based in UK, two are based in the US, while one is based in France. The other analysts are based in Norway.

Shareholders
At the end of 2006, PGS had 3 799 registered share-holders according to the Norwegian Central Securities Depository (VPS).

Non-Norwegian investors owned approximately 68% of the shares, with the UK and the US dominating. Norwegian ownership stood at approximately 32%. As of December 31, 2006, four investors had flagged ownership above 5% in PGS; Fidelity Investments, Folketrygdfondet, Gradient Capital Partners and Umoe Energy and Shipping.

2007 Annual General Meeting
The annual shareholders meeting for PGS in 2007 is scheduled to take place June 15, 2007, at the company’s headquarters at Lysaker, Strandveien 4, Oslo, Norway.

All shares are entitled to one vote. It is, however, a Norwegian regulation that one can only vote for shares registered in one’s name. To vote at an annual or extraordinary general meeting, a shareholder must be registered as a holder of title to the shares to be voted in our share register maintained at the VPS, within two working days before the general meeting.
Shareholders who wish to attend the meeting are asked to inform our registrar:

Nordea Bank Norge ASA
Issuer Services
P.O. Box 1166 Sentrum
0107 Oslo
Fax: +47 22 48 63 49
Tel: +47 22 48 62 62

Owners of ADSs can vote by surrendering their ADSs to our ADS registrar, Citibank, and having title to the related shares registered in our share register maintained at the VPS prior to the meeting.

PGS versus the US market 2006
PGS share price (USD) versus market and sector


Contact information for ADR holders
Our depositary bank for PGS ADRs is Citibank. They can be reached at:

Citibank Shareholder Services
P.O.Box 43077
Providence, RI 02940-3077
United States
Toll free: +1 877 CITI ADR
Outside the US Tel: +1 816 843 4281
Fax: +1 201 324 3284
e-mail: citibank@shareholders-online.com

Rating
As of December 31, 2006 PGS had a “Ba3” rating from Moody’s Investors Service and a “BB-” rating from Standard & Poor’s. Moody’s has a stable outlook, as does S&P.

International Financial Reporting Standards (“IFRS”) PGS will begin reporting under IFRS from January 1, 2007. A separate transition document has been made, quantifying the differences between PGS’s previous
reporting standard, US GAAP, and IFRS. The document is available on our web site, www.pgs.com.