ONSHORE PGS ONSHORE consists of all seismic acquisition operations on land, in shallow water and in transition zone environments, and includes an onshore multi-client library.   Growing Profitability Multi-Client Library EM Surveying Competitive Advantage

PGS conducts contract, shallow water and transition zone seismic acquisition throughout the world, and operated up to ten crews in 2007. The Company’s onshore multi-client library is predominantly located in the US. 2007 was a year in which PGS increased multi-client investments quite significantly, and the Company expects increased return from this business model going forward. The 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.

PGS has demonstrated market-leading seismic service performance, operating seismic crews in a variety of terrain types, including desert, arctic, jungle, swamp, highland and mountaintop, and transition zone.

2007 was the first year PGS conducted Onshore electro-magnetic (EM) surveying. One job was done in Trinidad and another in Canada.

2007 Operational Performance
Onshore revenues for 2007 decreased 6% to USD 246.4 million compared with 2006. The operating profit was USD 11.3 million for 2007. Performance in 2007 was negatively affected by weaker crew continuity in Libya, adverse weather conditions in the US and scheduling issues for relocation of crews.

At December 31, 2007, the order backlog for Onshore was USD 144 million, compared to USD 138 million at December 31, 2006.

2007 HSE Performance
Onshore operations recorded a Lost Time Incidents Frequency (LTIF) of 0.58 incidents per million man hours and a Total Recordable Case Frequency (TRCF) of 2.67 incidents per million man hours during the year, compared to a LTIF and TRCF of 0.22 and 2.73, respectively, in 2006.

Competitive Advantage
Equipping highly-experienced personnel with fully-compatible, state-of-the-art recording electronics allows PGS to deploy on average more channels per crew than other companies. PGS offers 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. PGS works to establish strong relationships and communications with the local population in areas where the Company works, and it strives to ensure that wherever possible employment and benefit go to the people in the area. PGS also sponsors educational programs, among other efforts, to promote social development.

Market and Market Position
In the market for onshore seismic services, PGS is one of the larger worldwide
operators, measured in terms of revenue. PGS competes in the onshore segment based on quality, technology, experience, price, and crew availability. The Company believes that it can remain competitive by capitalizing on project execution and management skills, and by continuing to provide a high-quality technical product. Operational efficiency gives PGS one of the highest average revenues per crew among the top five major international service providers. The majority of the recording equipment pool is compatible, facilitating changing crew channel-counts on any specific project, as the market dictates.

Onshore Market Perspectives
The onshore market is very competitive. PGS sees strong contract and multi-client activity in North America for 2008, and a reactivation of the Latin America market.

Onshore Multi-Client Library
The Onshore multi-client data library consists of extremely high quality surveys covering some of the most active oil and gas provinces in the United States. Multi-client has been a growing segment of the Onshore business, which is reflected in increased year-on-year investment levels. In 2007 PGS expanded the program in Oklahoma, and now offer contiguous seismic coverage of over 2 200 square miles in that area. PGS also released the first survey in the Deep Bossier gas play, located in East Texas, and operations began on several additional surveys within the trend. Strong multi-client focus continues for 2008.

Goals and Strategies
Onshore will continue its focused market approach and financial discipline going forward. PGS will use the operational expertise and standardized equipment to improve its financial performance. Onshore will continue the social responsibility programs and efforts to promote HD3D® and wide-azimuth in the onshore market.

Outlook 2008
In Onshore PGS expects revenues and operating profit to be in the range of USD 240-260 million and USD 15-25 million respectively. Planned capital expenditures will be in line with 2007.