As a result of lowered long-term oil price assumptions, most of our largest clients have announced significant impairments and exploration write-offs during the past year. Lower oil price assumptions, capital constraints and more focused exploration strategies are expected to cause longer payback times for certain multi-client surveys, particularly in frontier areas with a lack of infrastructure and/or exposure to recent geopolitical changes. As a result, TGS is carrying out a thorough assessment of the accounting value of its library. While the review is still ongoing, the preliminary assessment indicates a non-cash impairment of between
With our efficient cost structure and strong balance sheet, with close to
TGS will report the Q4 2020 financial results and host a Capital Markets Day on
For more information, visit TGS.com or contact:
Chief Financial Officer
investor@tgs.com
About TGS
TGS provides multi-client geoscience data to oil and gas Exploration and Production companies worldwide. In addition to extensive global geophysical and geological data libraries that include multi-client seismic data, magnetic and gravity data, digital well logs, production data and directional surveys, TGS also offers advanced processing and imaging services, interpretation products, machine learning solutions, and data integration solutions.
For more information visit TGS online at www.tgs.com.
Forward Looking Statement
All statements in this press release other than statements of historical fact are forward-looking statements, which are subject to several 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, as well as volatile market conditions, which have been exacerbated by the COVID-19 pandemic and the severe drop in oil prices. 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.
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