TGS Commences Extensive 2D Reprocessing Project in Northern Makassar Strait, Indonesia

PERTH, AUSTRALIA (31 March 2011) – TGS has commenced an extensive multi-phase reprocessing program of 2D seismic data located in the Makassar Strait, Indonesia.   The first phase consists of 2,700 km of seismic data in the Northern Mahakam Delta.

The original and reprocessed data support the exploration potential of the deepwater area of the Mahakam Delta.  Interpretation of the seismic data since 2001 has demonstrated potential hydrocarbon prospectivity in the basin, resulting in the award of exploration acreage and the drilling of several exploration wells.  Partial relinquishments of the exploration blocks have also recently created opportunities for new exploration in the area.

The data will be reprocessed with customized techniques to enhance imaging of the main structures and reservoir targets in the basin. The reprocessed data is intended to enhance definition of Direct Hydrocarbon Indicators (DHIs) and Amplitude Versus Offset (AVO) anomalies associated with turbidite reservoirs seen on the original 2D seismic data.

Data from this initial phase of reprocessing will be available for clients in Q3 2011.  This project is supported by industry funding.

TGS-NOPEC Geophysical Company (TGS) provides global geoscience data products and services to the oil and gas industry for the exploration and delineation of hydrocarbon reserves. We design and acquire multi-client data projects worldwide that make up our data library of seismic, gravity/magnetic and well data, enhanced by our seismic imaging technology and regional interpretation expertise.

All statements in this press release other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. These factors include TGS' reliance on a cyclical industry and principal customers, TGS' ability to continue to expand markets for licensing of data, and TGS' ability to acquire and process data product at costs commensurate with profitability. Actual results may differ materially from those expected or projected in the forward-looking statements. TGS undertakes no responsibility or obligation to update or alter forward-looking statements for any reason.

Source: TGS