Petroleum Geo-Services has decided to effect a private placement directed towards professional Norwegian and international investors after the close of Oslo Børs today. The private placement comprises of up to 17,999,999 new shares and up to 3,625,223 treasury shares and the price in the private placement will be determined through an accelerated book-building process.

The purpose of the private placement is to strengthen the Company's balance sheet. Together with the Company's 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 private placement will amount to up to 21,625,222 shares, of which the number of new shares will comprise of up to 17,999,999 shares equivalent of up to approximately 9.99% of the current number of outstanding shares of the Company. Any such 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 minimum order in the private placement has been set to the number of shares that equals an aggregate purchase price of at least the equivalent of NOK 2,000,000.

The book-building period opens today (May 27, 2009) at 17:30 CET and closes on May 28, 2009 at 08:30 CET. The managers may, however, at any time resolve to close or extend the book building period at their own discretion, but it will in no event close earlier than May 27, 2009 at 18:30 CET.

PGS has retained ABG Sundal Collier Norge ASA 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