Spectrum ASA CGGVeritas strategic agreement

Spectrum ASA (OSE: SPU) had agreed to a large Multi-Client transaction with
CGGVeritas (Euronext: GA,NYSE: CGV), under which Spectrum will get 2D Marine
Multi-Client library from CGGVeritas. The library contains over 500 000 kilometres of seismic data. In exchange CGGVeritas gets cash and shares amounting to 40 million USD. The equity received by CGGVeritas will amount to approximately 25% of shares in Spectrum ASA. Closing is expected in September subject to necessary approvals.

Spectrum says that there is strong synergy in combining its original library with CGGVeritas’. Gulf of Mexico, Africa, South America, Mediterranean Sea and the North Sea are the most potential areas for synergy benefits. Spectrum says this transaction fastracks the company to a level that would have otherwise taken years to reach.

CGGVeritas will obviously gain a seat in the Board and will provide seismic expertise, technology and services including acquisition, processing and data management to the company. According to Spectrum's release CGGVeritas will focus its 2D multi-client activity mainly through its shareholding in Spectrum following the transactions. Spectrum's stock is up 7%.