Arrow Acquisition
– Expanding Fleet With Quality Assets
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| PGS will gain access to two state-of-the-art 10-12 streamer new-build vessels, after the acquisition of Arrow Seismic. |
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The strong seismic market has attracted new players, leading to fragmentation of the industry. A flow of new companies has resulted in speculations of larger seismic players increasing capacity by acquiring newcomers. PGS has evaluated all
possible takeover targets.
PGS acquired Arrow Seismic in November 2007. In our opinion Arrow Seismic was the best choice and it is in line with PGS’ strategy of growth in the high-end segment of the seismic market. PGS will gain access to two state-of-the-art 10-12 streamer new-build vessels at costs and delivery times which are attractive compared to alternative new-build projects. The power of these vessels are comparable to the Ramform V-class. The two new-build 3D vessels are scheduled for delivery in Q2 and Q4 2009. PGS will also gain access to three source/2D vessels. With the expected increased activity on wide-azimuth surveys, these vessels will be effectively utilized by PGS and leave the Company less dependent on chartered capacity. One of the source vessels is in operation, while conversion work on the two other is expected to be done in 2008.
Due to early delivery these vessels enable us to capture effectively the strength in the seismic market. The acquisition of Arrow Seismic is an important step in our fleet renewal for the coming years.
