TGS has entered into a Letter of Intent to acquire Polarcus' multi-client library, with the exception of Australia, for a price of USD 27.5 million on a cash and debt free basis. The transaction is subject to due diligence and final definitive documents with target closing date on or before July 31, 2015. Polarcus will continue to have rights to revenue share from the library after TGS has realized a predetermined return on its initial investment.
The multi-client library in Northwest Europe and West Africa consists of 22 3D seismic surveys comprising a total area of 40,000 sq. km 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.
'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,' stated Robert Hobbs, CEO, TGS.
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 USD 75 million. This will enable the company to continue to pursue attractive investment opportunities in a challenging market.