GEOTECH and Rusgeology Agreed to Found a JV

IG Seismic Services PLC

Moscow, 21 May 2013

IG SEISMIC SERVICES PLC ("IGSS" OR "COMPANY", LSE: IGSS), THE LEADING PURE-PLAY LAND AND TRANZITION ZONE SEISMIC COMPANY IN RUSSIA AND THE CIS AND ONE OF THE LARGEST LAND SEISMIC COMPANIES GLOBALLY, ANNOUNCES THAT CJSC GEOTECH Holding AND OJSC Rusgeology Agreed to Found a Joint Venture.

On 21 May 2013, Andrei Tretyakov, acting general director for OJSC Rusgeology, and Nikolai Levitsky, President of CJSC Geotech Holding, signed a memorandum of intent to found a joint venture.

Under the agreement, the parties plan to jointly perform works on geophysical exploration of Russian subsurface resources in fulfilling public contracts, as well as projects within the framework of public-private partnerships. For this purpose, by late August LLC Rusgeophysics will be established with an authorized capital to be formed using cash contributions from the founders in a ratio of 50% Rusgeology and 50% Geotech. The JV plans to focus on hydrocarbons geologic explorations, specifically land geophysical surveys, processing and interpretation of geological and geophysical data, as well as development and introduction of cutting-edge equipment and technologies for geologic explorations.

For OJSC Rusgeology, which is a Russian geological exploration holding a strategic enterprise status, the pursuit of new opportunities in geological and geophysical exploration is critical. 100% state-owned Rusgeology sees as its main objective implementation of public contracts related to geophysical surveys of the territory of the Russian Federation on a high technological level. As Andrei Tretyakov points out "The cooperation with GEOTECH Holding is going to streamline and improve the efficiency of both field geological surveys and data processing and interpretation works. Our joint efforts will be instrumental in creating a modern high-tech national geological service."

For Nikolai Levitsky, "The creation of the joint venture is going to support the cooperation between our companies in the area of implementation of public contracts by providing the best available professional expertise and logistical support to our operations. We hope that by concluding the said agreement we are laying the foundation for our further cooperation."

The parties to the agreement stressed their common interest in ensuring stable growth in the number and quality of geological survey projects in Russia, their readiness to participate in tackling the systemic issues in the industry and further improving the level of geological survey operations in Russia.

CJSC GEOTECH Holding is the leading purе-play land and transition zone seismic company in Russia and the CIS. GEOTECH Holding is a member of IG Seismic Services (IGSS) and is the management company for IGSS' assets. The company provides services for high quality seismic data acquisition, processing and interpretation. www.geotechcom.ru

OJSC Rusgeology is a Russian geologic holding founded in 2011 in accordance with a Decree of the President of the Russian Federation. It consolidates a number of state-owned geological survey companies. Rusgeology was meant to support a uniform geological survey of the Russian territory, rehabilitation of mineral resources base, and the development of critically important and new opportunities in geological surveys. The holding has consolidated the assets of 37 geological survey companies spanning 30 Russia regions. The company provides complex geological survey services related to solid minerals, as well as a wide range of hydrocarbon-related services both in Russia and abroad. www.rusgeology.ru

Contacts

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Victoria Smirnova

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