Geokinetics Inc., one of the largest independent international land and shallow water seismic companies, announced today that it has signed a binding agreement with CGG for the purchase of CGG's North American Land seismic contract acquisition business.
Through this agreement, CGG will contribute its North America Land Contract activities (excluding its land multi-client and monitoring businesses) in exchange for a minority equity stake in Geokinetics.
"The benefits from this combination are quite compelling," said David J. Crowley, President and CEO of Geokinetics. "This transaction will elevate Geokinetics to the #1 position for crews marketed in the land seismic acquisition business in North America; as we assume the #1 position in Canada and the #2 positions in the Lower 48 as well as the Alaskan markets."
As part of the transaction, CGG will provide its patented technology in support of the seismic crews. Geokinetics will also benefit from a preferred relationship with the CGG North American Land Multi-Client Group.
This transaction provides Geokinetics the scale, focus and flexibility to attain the next level of providing quality service to a broader customer base. "The combination of our industry-leading seismic acquisition teams will better position our company in the North American marketplace, as we integrate our experience, knowledge and deployable technology," added Crowley.
Barclays acted as financial advisor to Geokinetics in support of this transaction.
This transaction is expected to be finalised by the end of October 2014.
Adapted from a press release by David Bizley
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/04082014/geokinetics-announces-purchase-of-north-america-land-seismic/