Alesha's Finance Advice

Geokinetics have spoken publicly to announce their decision to sign an agreement which decrees that they and PGs Onshorewill collect onshore seismic data and take over the multi client data business of PGS onshoreunder the name of Geokinetics in a transaction believed to be roughly $210 million which will be on a cash and debt free basis which will include a working capital of $37.5 million. The final price has not been completely calculated and is of course subject to the usual closing adjustments.

The merging of Geokinetics and PGS means that they become the second biggest collectors of onshore seismic information in the worl when judged on the number of employees. These Avista capital partners will have the ability to allow up to 38 crews and will be able to manage more than 207,000 channels of equipment and greater than 150 vvibroseis units and once all of the ongoing projects are completed, they will have as much as 6,240 square miles of data. Because of their share of modern technologies, Geokinetics will now be in a better position to plan for the full seismic chain.