«    2017    »

Integra brochure
(pdf - 1.6 mb)

August 30, 2007

Acquisition of Geotechsystem

30 August 2007, Moscow. Integra Group (LSE: INTE), a leading Russian oilfield service provider, announces that it has executed documentation with respect to the acquisition of Geotechsystem (GTS), one of the leading Russian providers of geological and geophysical data processing and interpretation, for a total consideration of US$11 mln. The acquisition is subject to the satisfaction of certain technical conditions precedent set forth in the documentation and Integra Group anticipates that closing will occur within the next several days.
Integra Group is acquiring GTS, which has ten years of operational experience in the market, scientific and methodical expertise, a transparent financial track record, prospects of further development and a well-established network of large customers. GTS’ efficiency exceeds the market average for similar type of activities (market average revenue per employee is Rb 1-1.2 mln rubles, while for GTS this ratio reaches Rb 5 mln). Management of Integra Group estimates the acquisition to be immediately accretive although its primary value is that Geotechsystem possesses a number of competitive strengths which will allow Integra Group to build on its existing substantial seismic business
GTS is a holder of modern patented mathematical products used by leading oil and gas producers. Among them, is the software; PRIME, which provides efficient seismic data processing allowing to produce fast interpretation results.
Geotechsystem has considerable experience in the complex analysis of under explored regions for potential subsurface users. For example, GTS is currently working on providing materials for the strategic decision on prospects of hydrocarbons production in a number of African countries for one of its international customers.
Alexander Pudovkin (PhD, geology and mineralogy), General Director of GTS and Vladimir Glogovsky (PhD, physics and mathematics) Deputy Director of GTS will take on key positions in the Formation Evaluation Division of Integra Group and will contribute their valuable experience to its further development.
Commenting on the acquisition Felix Lubashevsky, the President of Integra Group, said:
“The acquisition of assets of such quality is yet another development step for Integra. With ten-years of successful operational experience in the market and cooperation with leading oil and gas corporations, highly professional team, scientific and technical potential and a portfolio of customers; Geotechsystem will strengthen positions of Integra in the Russian seismic market.”
“We are confident that the acquisition of Geotechsystem will allow Integra within several years to create one of the largest analytical and industrial seismic centers in the country. Our partners, in turn, as a result of the acquisition will get a wider field of work and serious investment opportunities for the further development within Integra Group."
Alexander Pudovkin, a General Director of GTS, commented:
“We are fully satisfied with the transaction with Integra Group. Joining one of the leading Russian oilfield services firms will allow us to move to a new level of development. I am convinced, that the merger of two highly professional teams of Geotechsystem and Integra will give a significant synergistic effect strengthening opportunities for both partners ".
Notes to editors:
Geotechsystems:Geotechsystems performs processing and interpretation of seismic data, building 2D and 3D models of natural resource deposits. GTS also provides other consulting services.
The unique software solution PRIME developed by Geotechsystem creates reliable depth and velocity modeling at the minimal wavefield distortion, providing the most realistic characteristics of geological structures being surveyed.
Among the Geotechsystem’s clients and business partners are such companies as LUKoil; Gazprom, Integra, Noyabrskneftegaz, ONGC, CSI, Sibgeo. Geotechsystem is also engaged in scientific projects with and develops software for Norsk Gydro.
Integra Group:Integra Group is a leading Russian independent provider of onshore oilfield services and is also a leading manufacturer in the Russian Federation of drilling rigs with heavy lifting capacity, cementing equipment and certain specialized equipment used in the exploration, development and production of oil and gas.
Integra Group operates in the drilling, workover, seismic and geophysics sectors and manufactures oilfield services equipment.  Integra has oilfield services operations in all major oil and gas producing regions in Russia and in many other CIS countries. The company’s customer base includes major Russian and international oil and gas companies operating in Russia and CIS.
Established in March 2004, Integra Group has, through 14 strategic acquisitions, become one of the leading companies in the oilfield services and equipment manufacturing sectors of the Russian market and employs approximately 19 000 people.
Since February 27, 2007 Integra Group has been traded on the London Stock Exchange (symbol: INTE).  For additional information please contact:
Integra Grouphttp://www.integra.ru
Andrei Machanskis, Head of Investor Relationsamachanskis@integra.ruTel. +7 495 933 0621
Alla Sapun, Press Secretaryasapun@integra.ruTel. +7 495 933 0621
Financial DynamicsJonathon Brill / Edward Westropp London