1H2013 Financial Results Press Release

IG Seismic Services PLC

IG SEISMIC SERVICES ANNOUNCES UNAUDITED IFRS RESULTS

FOR THE SIX MONTHS OF 2013

Moscow, 19 September 2013

IG Seismic Services PLC ("IGSS" or the "Company", LSE: IGSS), the leading pure-play land and transition zone seismic company in Russia and the CIS and one of the largest land seismic companies globally, announces unaudited consolidated financial results for the six months ended 30 June 2013.

Select Financial Information

Key Financial Results for the First Six Months of 2013

· Revenue decreased by 11.7% year-on-year and amounted to USD 345.5 mln.;

· EBITDA increased by 11.8% year-on-year and amounted to USD 74.3 mln. EBITDA margin increased by 450 bp year-on-year to 21.5% of sales compared to 17.0% of sales for the same period of 2012;

· Net Profit for the first half of 2013 amounted to USD 2.6 mln with a Net Margin of 0.7% compared to a net loss of USD 1.4 mln for the same period of 2012;

· Operating Cash Flow for the first half of 2013 increased by 35.6% over the same period of 2012 to USD 152.7 mln.;

· Capital Expenditures for the first half of 2013 amounted to USD 52.5 mln.;

· As of 30 June 2013, net debt amounted to USD 308.7 mln. Gross debt amounted to USD 316.4 mln, cash and cash equivalents amounted to USD 7.7 mln.;

· Total debt as of 30 June 2013 amounted to USD 316.4 million, of which USD 96.0 million matures in second half of 2013, USD 73.7 million matures in 2014, USD 113.1 million in 2015, USD 3.7 million in 2016 and USD 29.9 mln in subsequent years.

Key Operating Results for the First Six Months of 2013

· IGSS seismic crews performed 1,132 thousand shot points, out of which 177 thousand related to 2D surveys, 687 thousand to 3D surveys, and 268 thousand to HD (high density) surveys; of which 1,066 thousand shot points were performed in Russia, 61 thousand - in Kazakhstan, and 5 thousand - in Azerbaijan.

· Total of 7 thousand linear kilometers related to 2D surveys, 11 thousand square kilometers related to 3D survey, 1 thousand linear kilometers related to HD and 500 square kilometers related to HD were performed.

· As of 30 June 2013 the Company operated 75 field crews in Russia, Kazakhstan and certain other countries with 308,990 channels, 142 vibroseis sources, 158 pulse sources and 581 drilling units.

· As of 30 June 2013 the Company employed 11,133 employees.

· In the first half of 2013, top 10 customers accounted for 84% of field seismic revenue, of which Gazprom Neft accounted for 18%, Rosneft combined with TNK-BP for 14%, Bashneft for 13%, Rosnedra for 10%, Gazprom for 9%, LUKOIL for 8%, Novatek for 3%, Slavneft for 3%, Surgutneftegaz for 3% and SPD for 2%.

· As of 30 June 2013, the Company's seismic services order book increased in RUR terms by 51% compared to the order book as of 30 June 2012 and amounted to USD 686 million (inclusive of VAT).

· As of  13 September 2013, the Company's seismic services order book increased in RUR terms approximately by 49% compared to the order book as of 13 September 2012 and amounted to approximately USD 809 million (inclusive of VAT).

6 months 2013 Operating Highlights

Order Book as of 30 June 2013

· As of 30 June 2013, the Company's seismic services order book amounted to USD 686 million (inclusive of VAT), of which USD 592 million (inclusive of VAT) accounted for signed contracts and USD 94 million (inclusive of VAT) represented tenders won.

· The seismic services order book as of 30 June 2013 increased in RUR terms by 51% compared to the order book as of 30 June 2012.

· The Company started releasing data processing & interpretation (DPI) order book from 2013. Accordingly, comparable DPI order book information for earlier periods is not available. As of 30 June 2013, the Company's DPI order book amounted to USD 16 million (inclusive of VAT) of which USD 15 million (inclusive of VAT) accounted for signed contracts and USD 1 million (inclusive of VAT) represented tenders won.

· The Group is still in the process of contracting for 2013-2014 and 2014-2015 seasons which implies that current order book does not yet provide an accurate indication of revenues in 2013 and current order book trends could change.

SEISMIC SERVICES

Order Book as of 30 June 2013 (including VAT)*

Order Book as of 30 June 2013 Breakdown by Year (including VAT)*

SEISMIC DATA PROCESSING AND INTERPRETATION

Order Book as of 30 June 2013 (including VAT)*

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*FX rate as of 30 June 2013 is 32.71 RUR/USD and 32.82 RUR/USD as of 30 June 2012.

**Signed contracts may be subject to renegotiation of volumes and/or other terms or even cancellation, and both signed contracts and tenders won may not proceed as originally planned at all.

Order Book Update as of 13 September 2013

· As of 13 September 2013, the Company's seismic services order book amounted to USD 809 million (inclusive of VAT), of which USD 607 million (inclusive of VAT) accounted for signed contracts and USD 202 million (inclusive of VAT) represented tenders won.

· The seismic services order book as of 13 September 2013 increased in RUR terms by 49% compared to the order book as of 13 September 2012.

· As of 13 September 2013, the Company's DPI order book amounted to USD 11 million (inclusive of VAT) which accounts for signed contracts.

· The Group is still in the process of contracting for 2013-2014 and 2014-2015 seasons which implies that current order book does not yet provide an accurate indication of revenues in 2013 and current order book trends could change.

SEISMIC SERVICES

Order Book as of 13 September 2013 (including VAT)*

Order Book as of 13 September 2013 Breakdown by Year (including VAT) *

SEISMIC DATA PROCESSING AND INTERPRETATION

Order Book as of 13 September 2013 (including VAT)*

__________________________________________________________________________________

*FX rate as of 13 September 2013 is 32.67 RUR/USD and 31.48 RUR/USD as of 13 September 2012.

**Signed contracts may be subject to renegotiation of volumes and/or other terms or even cancellation, and both signed contracts and tenders won may not proceed as originally planned at all.

Nikolay Levitskiy, IGSS Chief Executive Officer, commented:

"The results for the first half of 2013 show a noticeable improvement in gross profit, net profit and EBITDA margins. This is a reflection of not only the continued streamlining of our operations, but also our increasing focus on a newly established, highly technological market segment. We firmly adhere to the strategy of retaining our technological edge in the area of seismic exploration.

We have successfully completed the first season of the project at the Vakunayskiy oil field in the Irkutsk Region, where, for the first time in Russia, we are employing the innovative UniQ high density seismic acquisition technology. In the first four months (January-April) of 2013 we performed 142,000 shot points over an area of 350 square kilometers. Such an area corresponds in size to a conventional 3D seismic crew, but we managed to record 16 times more field seismic data in such a short period of time.

The positive trend continues. We have signed an additional agreement on UniQ for seismic exploration at the North-Russkoye license area at Yamal. The UniQ technology will help solve a specific geological challenge that cannot be solved by means of conventional seismics. We see great potential in the UniQ technology for the Russian seismic market, and believe that this cutting-edge technology is the answer to the rising complexity of exploration of oil fields, both brownfields and greenfields.

As the next logical step in the IGSS development strategy, we have signed a two-year international contract for 3D seismic exploration in India with one of the largest private Indian companies. Having won the contract in a competition with well-known international companies from India, the United States, Poland, and Kazakhstan, we have once again proved our ability to meet the highest world-level standards.

Our orders book is steadily increasing - as of September 13, 2013, the IGSS seismic orders book has increased by 49% on the same period of the last year.

We are very pleased with the results of the first half of 2013, and expect even more success in the future."

Contacts

For further information please visit www.igseis.com or contact:

IGSS Investor Relations

Olga Popova 

+ 7 495 580 7882 ext. 129

[email protected]

IGSS Media Relations

Victoria Smirnova

+ 7 495 580 7882 ext. 396

[email protected]

This document may contain "forward-looking statements" which include all statements other than statements of historical fact. Such forward-looking statements can often be identified by words such as "plans", "expects", "intends", "estimates", "will", "may", "continue", "should" and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the IG Seismic Services PLC's (the "Company") control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These forward-looking statements speak only as at the date as of which they are made, and neither the Company, nor any of its respective agents, employees or advisors intends or has any duty or obligation to supplement, amend, update or revise any of the forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. The information and opinions contained in this document are provided as at the date of this document or as otherwise specified herein and are subject to change without notice.