TGS NOPEC AGREES TO BUY A2D TECHNOLOGIES FOR $22 MILLION IN CASH AND STOCK

TGS-Nopec Geophysical Co. ASA's U.S. subsidiary agreed to acquire A2D L.P., a Texas limited partnership that operates as A2D Technologies, for $22 million in cash and common stock last week. A2D shareholders will receive $15.5 million in cash and $6.5 million in shares of TGS-Nopec common shares,

which trade on the Oslo Stock Exchange. A2D is a Houston well logging company that pioneered the instant delivery of well log data across the Internet in early 1997. Its Log-Line database includes more than 1 million logs from over 474,00 wells from the major U.S. producing basins. With its most recent technology improvements, A2D is adding approximately 60,000 well logs per month to its library, TGS Nopec said. It noted that A2D's annual revenues were of $7.1 million in 1999, $9.6 million in 2000 and $12.6 million in 2001.

The purchase provides substantial opportunities for TGS Nopec, according to its chairman, Hank Hamilton. "A2D's business model is remarkably similar to TGS-Nopec's in the sense that we both focus on creating high quality, non-exclusive geoscience data products that can be licensed to multiple oil companies," he explained. "Its extensive well log database in North America combined with its unique Log-Line delivery system, a leading well log interpretation software package and the first depth-calibrated raster format in the industry provide the total well log solution for customers. A2D has done an excellent job in developing this market in the United States, and we look forward to helping it internationalize its effort. In addition, we see significant synergies that can be achieved through the bundling and delivery of our current products and services as well as the creation of new integrated products."

David Armitage, chief executive officer for A2D, suggested that the combination of the two companies would benefit oil and gas producers. "A2D and TGS-Nopec share a common vision - the delivery of premier exploration data products of the highest quality in the most cost-effective manner. The integration of our extensive digital well log repository with the TGS-Nopec seismic database will facilitate and accelerate the exploration for hydrocarbons worldwide," he maintained.