Petroleum Geo-Services reports successful placement towards professional Norwegian and international investors of 17,999,999 new shares and 3,625,223 treasury shares at the price of NOK 36.50 per share. The share issue represents approximately 9.99% of the shares outstanding prior to the placement. Total gross proceeds from the private placement amounted to approximately NOK 790 million.

Jon Erik Reinhardsen, President and CEO of PGS, commented: "I am very pleased to see the massive interest in the placement. It is a genuine sign of strength that the book was closed in just one hour, more than five times oversubscribed."

Mr. Reinhardsen continues: "The purpose of the private placement was to strengthen our balance sheet. Together with the previously announced plans for asset sales, which are targeting proceeds of USD 200 million, the private placement will better position PGS in a more challenging market."

The new shares will be issued in accordance with the Board proxy established at the Company's Annual General Meeting held on May 14, 2009. The total number of outstanding shares after the issue will be 197,999,999 shares, each with a nominal value of NOK 3.00.

ABG Sundal Collier Norge ASA acted as global coordinator and sole bookrunner, and DnB NOR Markets and SEB Enskilda as lead managers for the private placement.

Tags: Petroleum Geo-Services ASA