Polarcus Closes Library Sale Deal

Polarcus has completed the main component of the transaction regarding partial divestment of the company’s multi-client library to TGS-NOPEC Geophysical (TGS).

Namely, on June 29, Polarcus and TGS signed a Letter of Intent (LOI) for the sale of its multi-client projects in Northwest Europe and West Africa in return for a cash consideration of USD 27.5 million and future revenue share on library late sales.

The agreement included an upfront cash payment, a tiered revenue share from future sales of the divested multi-client projects and further contains cash payments for costs deferred under existing contractual agreements.

However, Polarcus’ Capreolus 3D survey offshore Australia does not form part of the transaction and will continue to be owned and marketed by Polarcus.

In addition, according to TGS Oslo Exchange notice, closing of the remaining projects in West Africa is expected within Q3 2015, subject to the relevant government consents.