TGS to acquire Polarcus' multi-client library
HOUSTON -- TGS has entered into a Letter of Intent to acquire Polarcus' multi-client library, with the exception of Australia, for a price of $27.5 million on a cash and debt free basis.
The multi-client library in Northwest Europe and West Africa consists of 22 3D seismic surveys comprising a total area of 40,000 km2 and one 2D survey comprising 5,000 linear km. The data covers prime locations within the established hydrocarbon provinces of six countries along the western Atlantic margin corridor since 2011.
Robert Hobbs, CEO of TGS, stated, "We are pleased to announce a Letter of Intent to acquire a high-quality multi-client library in key areas of future growth for TGS. This acquisition significantly strengthens our 3D-position in established areas in UK, Norway and West Africa and is very complimentary to our existing database with minimal overlap."
The transaction is subject to due diligence and final definitive documents with a targeted closing date of July 31 or before. Polarcus will continue to have rights to revenue share from the library after TGS has realized a predetermined return on its initial investment.
The transaction will be financed with cash and in order to maintain its strong balance sheet and liquidity position, TGS has received a commitment from its existing lender to expand the current credit facility to $75 million.
