TGS-Nopec Upbeat About Sales Activity In Short And Long-Term

Geophysical company TGS-Nopec (TGS.OS) Thursday said oil and gas sector sales activity has increased since the start of the year, and anticipates further opportunities.

"Last week's announcement of block awards in Norway's 20th (oil and gas) licensing round will have a positive impact in the near term," the company said in its first quarter results report.

Chief Executive of the Norway-based company Hank Hamilton, which carries out seismic surveys for oil and gas companies, said the first quarter was "extremely challenging for sales of geoscientific library data."

But he added: "We are clearly seeing increased sales activity in recent weeks and we continue to remain optimistic about longer-term fundamentals for our sector."

The company said it intends to sell its auction rate securities, or ARS, valued at "fair value" of $46.5 million "given the right opportunities" although it noted it has sufficient cash and financial capacity to finance operations without a sale.

The company reported a sharp fall in 2008 first quarter net income to $13.2 million from $29.0 million, due to a 31% decline in revenues. Its order backlog stood at $132 million at the end of the first quarter, up 8% on the year.

Company Web site: www.tgsnopec.com

-By Elizabeth Adams, Dow Jones Newswires; [phone]; [e-mail]