Spectrum Announces 2D Marine Multi-Client Strategic Agreement with CGG Veritas

Spectrum is pleased to announce a major Multi-Client transaction with CGGVeritas priced at USD40mill. Spectrum will acquire the   2D Marine  Multi-Client library from CGGVeritas encompassing more than 500,000 km of seismic data.

This  transaction is in line  with the growth strategy  of Spectrum to become a leading  MultiClient  company.  The  new  combined  Spectrum library will exceed 1.000.000 km  of  2D Multi-Client  seismic  data  covering all major sedimentary basins  worldwide. There  is strong  synergy in  the combination of the original Spectrum library with the CGGVeritas 2D library, particularly in areas like Gulf of  Mexico,  Africa,  South  America,  Mediterranean  Sea and the North Sea. The combined  library is ideally suited  for planning of new  projects and there are already several ongoing reprocessing projects, both by CGGVeritas and Spectrum.

This   transaction  fast  tracks  Spectrum  into  new  key  areas  and  business opportunities  that otherwise would  have taken years  to establish and enhances the  quality of the overall library through access to the high-end 2D processing and imaging technology of CGGVeritas.

CGGVeritas  will become a major shareholder  in Spectrum holding a 25% stake and will  have one board  member on the  Spectrum board of  Directors. Following the Transaction,  CGGVeritas will focus its  2D multi-client activity mainly through its shareholding in Spectrum.

CEO of Spectrum, Rune Eng states:
“This  transaction  is  a  very  good  strategic  fit. For Spectrum it more than doubles  the library overnight  and broadens the  footprint of our business with exciting new opportunities to offer to our clients. CGGVeritas gains a strategic partner  in  Spectrum  who  brings  industry recognized expertise and commercial focus  to the development of successful  2D libraries. Spectrum is proud to have CGGVeritas  as a major shareholder and we believe this will create further value with the high-end technology and long-term relationships that CGGVeritas have in their business portfolio.”

Click here for presentation released to the stock market