PGS - Second Quarter and First Half 2011 Results Record MultiClient Sales Driven by GeoStreamer(R)

OSLO, NORWAY -- (Marketwire) -- 07/28/11 --

Highlights Q2 2011

• Revenues of $326.6 million, up 52% from Q2 10


• EBITDA of $163.6 million, up 114% from Q2 10


• EBIT of $49.0 million, up $43.3 million from Q2 10


• Record MultiClient sales of $159.3 million


• Contract revenues of $138.1 million with Marine Contract EBIT margin seasonally low at 7%


• External Data Processing revenues of $25.5 million


• Order book of $579 million, up 16% from Q2 2010


• Launch of GeoStreamer GS™ with high client interest


• Well on track to reach full year EBITDA guidance of $500 million

'We delivered our best quarterly MultiClient sales ever with pre-funding revenues boosted by high GeoStreamer MultiClient activity in the North Sea and Australia. We also experienced strong interest for our MultiClient library in most regions. Marine Contract EBIT margin is expected to be in the guided range of 10-15% for the full year. We are well on track to achieve our full year EBITDA guidance of approximately $500 million.

Our new ghost free acquisition solution GeoStreamer GS was officially introduced at the EAGE conference late May, representing the next significant step in bringing higher resolution and better seismic images to our customers. GeoStreamer GS is expected to give returns over and above what we currently see from the GeoStreamer as demonstrated by this quarter. Our fleet efficiency and technology differentiation is now further enhanced and will position us well to take advantage of the continued growth in seismic demand.'

Jon Erik Reinhardsen,

President and Chief Executive Officer

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Key Financial
 Figures                 2nd quarter             Six months      Full year
(In USD millions, ----------------------------------------------------------
 except per share      2011      2010          2011      2010      2010
 data)              Unaudited Unaudited 1)  Unaudited Unaudited Unaudited 1)
----------------------------------------------------------------------------
Revenues                326.6      214.9       568.8      474.3     1,135.1
----------------------------------------------------------------------------
EBITDA (as
 defined)               163.6       76.3       236.5      175.7       475.4
----------------------------------------------------------------------------
EBIT excluding
 impairment
 charges 2)              49.0        5.6        51.4       35.6       130.7
----------------------------------------------------------------------------
EBIT as reported         49.0        5.6        51.4       35.1        51.6
----------------------------------------------------------------------------
Income (loss)
 before income tax
 expense                 30.3      (27.1)       22.0      (16.9)       (8.4)
----------------------------------------------------------------------------
Net income (loss)
 to equity holders       23.6      (22.0)       14.7      (10.6)      (13.8)
----------------------------------------------------------------------------
Basic earnings per
 share ($ per
 share)                  0.11      (0.11)       0.07      (0.05)      (0.07)
----------------------------------------------------------------------------
Diluted earnings
 per share ($ per
 share)                  0.11      (0.11)       0.07      (0.05)      (0.07)
----------------------------------------------------------------------------
Net cash provided
 by operating
 activities              99.2       68.6       180.3      184.2       355.5
----------------------------------------------------------------------------
Cash investment in
 MultiClient
 library                 68.4       51.7       113.9      103.8       166.7
----------------------------------------------------------------------------
Capital
 expenditures
 (cash)                 119.6       57.6       187.9      105.6       223.5
----------------------------------------------------------------------------
Total assets
 (period end)         2,981.8    2,728.6     2,981.8    2,728.6     3,038.0
----------------------------------------------------------------------------
Cash and cash
 equivalents
 (period end)           216.0      159.8       216.0      159.8       432.6
----------------------------------------------------------------------------
Net interest
 bearing debt
 (period end)           420.8      616.3       420.8      616.3       279.1
----------------------------------------------------------------------------

1) Financial information for the full year 2010 is derived from the audited financial statements as presented in the 2010 Annual Report which have been restated due to a change in accounting policy as discussed on page 6. The unaudited numbers for Q2 2010 and the six month period ended June 30, 2010 have been restated accordingly.

2) Net impairment charge for the full year 2010 was $79.1 million.

Complete Q2 2011 earnings release and presentation can be downloaded from www.newsweb.no or www.pgs.com

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Q2 2011 Earnings Release
http://hugin.info/115/R/1534185/467573.pdf

Q2 2011 Presentation
http://hugin.info/115/R/1534185/467575.pdf

FOR DETAILS CONTACT:
Tore Langballe

SVP Corporate Communications
Phone: +47 67 51 43 75

Mobile: +47 90 77 78 41

Bard Stenberg

Investor Relations Manager
Phone: +47 67 51 43 16

Mobile: +47 99 24 52 35