Petroleum Geo-Services ASA announced today that based on preliminary acreage awards to its customers in the Brazil Licensing Round 6 held on August 17th and 18th, 2004, it currently expects to realize multi-client late sale uplifts of approximately $15 million. The uplift revenue expected to be received in this licensing round is in line with the Company’s expectations. Such late sales are expected to be recognized in the fourth quarter 2004 when the Company’s customers are formally awarded an economic interest in the acreage. Such formal awards normally occur approximately 90 days subsequent to the preliminary awards.
As was previously reported, PGS’ total Brazilian multi-client sales in the first half of 2004 amounted to $7.5 million. Furthermore, the Company has realized additional late sales in the third quarter 2004. This additional revenue coupled with the first half revenues and expected uplift revenues would result in total late sales from the Brazilian library in excess of $24 million in 2004. Furthermore, based on the preliminary acreage awards it is possible that the Company may realize late sales in addition to those discussed above.
As previously disclosed, the percentage of PGS data covered by the 6th licensing round was relatively small. Therefore, future sales for other significant parts of the Company’s Brazilian library will depend on subsequent licensing rounds.