Petroleum Geo-Services ASA (NYSE: PGO; OSE: PGS) announced today that it has closed its offering of 5,388,743 shares of Spinnaker Exploration Company (NYSE: SKE) at $29.25 per share. The sale of these securities resulted in net proceeds to PGS of approximately $150 million. These shares represented all of PGS’ equity interest in Spinnaker Exploration Company.
Chairman and Chief Executive Officer of Petroleum Geo-Services, Reidar Michaelsen, said, “This transaction represents a significant step in our program to free up cash from the sale of non-core assets. We are committed to reducing our debt level and strengthening our balance sheet through the sale of non-core assets.”
Petroleum Geo-Services is a technologically focused oilfield service company principally involved in two businesses: geophysical seismic services and production services. PGS acquires, processes, manages and markets 3D, time-lapse and multi-component seismic data and provides associated data management solutions. This data is used by oil and gas companies in the exploration for new reserves, the development of existing reservoirs, and the management of producing oil and gas fields. In its production services business, PGS owns four floating production, storage and offloading systems and operates numerous offshore production facilities for oil and gas companies. FPSOs permit oil and gas companies to produce from offshore fields more cost effectively. PGS operates on a worldwide basis with headquarters in Oslo, Norway and Houston, Texas.