Du är här

2014-05-06

TGS: Further information regarding criminal charges towards TGS

ASKER, NORWAY (6 May 2014): Økokrim, the Norwegian National Authority for
Investigation and Prosecution of Economic and Environmental Crime, has today
presented a criminal charge against TGS for violation of the Norwegian Tax
Assessment Act and the Norwegian Securities Trading Act related to a contract
entered into with Skeie Energy AS, later known as E&P Holding AS, in 2009.
The charge claims that TGS contributed to an unwarranted tax refund through
the Norwegian Petroleum Tax Act, related to this specific license of seismic
data to Skeie Energy. Skeie Energy purchased a license to existing TGS
multi-client data mainly in North Sea and Barents Sea. In addition, the
company prefunded a large 3D survey in the Hoop area of the Barents Sea.
These surveys have since been licensed to multiple customers.

The payment for the transaction was made through a combination of cash payment
and two loans of a total value of gross USD 42.1 million (net USD 29.4
million) which matured at year end 2010. Due to Skeie Energy's failed attempt
to raise new capital, the loans were not repaid according to the agreement at
the maturity date. TGS has actively tried to collect its receivables from
Skeie Energy in the period since default and has recognized an impairment of
USD 19.9 million in 2011, such that the remaining net value of the loan is
currently USD 9.5 million.

TGS, as a seismic data provider, does not participate in the petroleum tax
refund system and received no tax benefits from the sale of seismic data to
Skeie. The data sale was included in TGS' net taxable income, subject to an
ordinary income tax of 28%.

With regards to the same transaction, a secondary charge is presented against
TGS concerning market manipulation, for disclosing incorrect or inaccurate
financial information to the market.

In TGS' opinion, the contract with Skeie Energy was an ordinary licensing
transaction of high quality seismic data in a very prospective region. The
sale was therefore treated in the financial statements as such.

TGS will cooperate with Økokrim to disclose all information in this matter.

Company summary

TGS-NOPEC Geophysical Company (TGS) provides multi-client geoscience data to
oil and gas Exploration and Production companies worldwide. In addition to
extensive global geophysical and geological data libraries that include
multi-client seismic data, magnetic and gravity data, digital well logs,
production data and directional surveys, TGS also offers advanced processing
and imaging services, interpretation products, permanent reservoir monitoring
and data integration solutions.

For more information visit TGS online at
www.tgs.com
.

Forward-looking statements and contact information

All statements in this press release other than statements of historical fact
are forward-looking statements, which are subject to a number of risks,
uncertainties and assumptions that are difficult to predict, and are based
upon assumptions as to future events that may not prove accurate. These
factors include TGS' reliance on a cyclical industry and principal customers,
TGS' ability to continue to expand markets for licensing of data, and TGS'
ability to acquire and process data products at costs commensurate with
profitability. Actual results may differ materially from those expected or
projected in the forward-looking statements. TGS undertakes no responsibility
or obligation to update or alter forward-looking statements for any reason.

TGS-NOPEC Geophysical Company ASA is listed on the Oslo Stock Exchange
(OSLO:TGS).

TGS sponsored American Depositary Shares trade on the U.S. over-the-counter
market under the symbol "TGSGY".

For additional information about this press release please contact:

Kristian Johansen
Chief Financial Officer
Cell: +47 47 60 33 34
Email:kristian.johansen@tgs.com

Will Ashby

Director Finance Western Hemisphere&Investor Relations

Tel: +1 713 860 2184
Email:will.ashby@tgs.com

This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)

---------------------------------------

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: TGS via Globenewswire

HUG#1783258

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.