Geokinetics completes acquisition of seismic company Petroleum Geo-Services

Geokinetics Inc. (GOK) completed its acquisition of Petroleum Geo-Services' onshore seismic data acquisition and multi-client data library business. 

The purchase price paid by Geokinetics at closing was $210 million, on a cash free, debt free basis, less a $2.8 million adjustment for estimated net working capital below the included amount of $37.5 million. The purchase price is subject to certain additional working capital adjustments after closing. 

"The combination of PGS Onshore and Geokinetics solidifies our position as the clear leader in the onshore seismic data acquisition business," said Richard F. Miles, President and Chief Executive Officer of Geokinetics. "It not only brings together two strong complementary seismic data acquisition operations, but it also accelerates our strategic initiatives in the multi-client library business." 

"We are pleased to welcome the management and employees of PGS Onshore to our team and look forward to providing our customers worldwide with an expanded array of best-in-class services and data," said Miles.
Operationally, Geokinetics' backlog declined to $190 million as of December 31, 2009, which has and will continue to impact the Company's operations in the near-term. Including PGS Onshore's backlog, the Company's pro-forma backlog was $378 million as of December 31, 2009.
"In the prevailing climate of general economic uncertainty, our customers are being cautious and are taking longer than normal to award projects. We have numerous bids still outstanding, especially in our high value OBC market, that were bid mid to late last year. However, bid activity is increasing and we remain optimistic that as customer confidence returns, we will see significant awards in the coming months. In January, we completed our large OBC project in Angola that we started in the fourth quarter of 2008 and are currently demobilizing that crew while awaiting follow-on work," concluded Miles.

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