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for pre-stack depth migration and to visualize the end product for custom- ers.The Company has more than 500 holoSeis installations worldwide in offices and onboard seismic vessels, with capability to visualize exception- ally large volumes of 3D data.

marine Acquisition technology: The first ever towed dual sensor streamer, the GeoStreamer® has been developed and commercialized. The unique solid streamer design will see further development, and significant R&D efforts are deployed towards improving all elements of the Company's acquisition systems and capabilities.

PGS' Electromagnetic (EM) R&D pro- gram is focusing on developing highly efficient and reliable EM technology to be used in combination with seismic for risk reduction and improved exploration success. Multi-Transient Electromagnetic (MTEM®) is a proven remote sensing method for direct hydrocarbon detection and deline- ation.The development of a towed EM system is ongoing and promises acquisition efficiency similar to towed seismic streamer acquisition.

Processingtechnology: The R&D teams support a worldwide network of Data Processing centers with leading edge technology. A sig- nificant part of the efforts are aimed at further improving the Company's depth imaging capabilities. PGS has developed a high-fidelity suite of Kirchhoff, Wave Equation and Reverse Time Migration algorithms that constitute a unique depth imaging


BeAm FeAtuRe

In 2007 PGS acquired Applied Geophysical Services (AGS), a specialist depth imaging company. AGS is known for their propri- etary, fast 3D pre-stack Beam Migration technology that produces accurate images of complex geology with unparalleled speed. PGS has already seen great benefit from Beam Migration technology, both applied to our MultiClient data and on proprietary projects.

Development of the AGS Beam Migration began in 1999 and it now represents a unique and complimentary alternative to the industry standard Kirchhoff and wave equation migrations. One of the main advantages of AGS Beam Migration is the computational speed.This allows for rapid migration iteration on very large datasets, while still providing a high-fidelity image of complex geology including steep and over-turned dips.This, coupled with the ability to remove unwanted multiples and

portfolio upgraded to handle all ac- quisition geometries, including Wide Azimuth and Multi Azimuth. Further- more, a significant part of R&D efforts are aimed at developing processing methodology to take full advantage of the PGS GeoStreamer® technology. Advanced interpolation and regulari- zation schemes and powerful noise and multiple suppression methods have been developed in order to deliver solutions to better image and characterize complex reservoirs.

innovation PGS is investing in a significant port- folio of technology R&D projects. It is of utmost importance to invest in the right R&D projects, but also ensure that the project performance follows best practices. During 2008, PGS introduced significant improvements and new processes for the Innovation Value Chain. One of the most signifi- cant improvements was the introduc- tion of Portfolio Management Boards with the mandate to capture, screen, and rank projects for each business segment.

intellectual Property PGS' patents, trademarks, service marks, copyrights and licenses protect its proprietary technology, including the Ramform seismic vessels, Multi- Transient Electro Magnetic (MTEM®), GeoStreamer® , OptoSeis® and HD3D® seismic solution software.The Com- pany's intellectual property rights col- lectively represent a material asset to its business. As of December 31, 2008, PGS held 130 different patents under the laws of the US, the UK and Nor- way. PGS has significantly increased

noise, has led to considerable success when AGS Beam Migration is applied in complex and difficult areas. In the Beaufort Sea, for example, the use of the AGS Beam Migration led to new understandings of the geology where a structure, previously iden- tified as a shale diaper, is now seen as an inversion anticline. Complex areas such as sub-salt, sub-basalt and carbonates all start to reveal their secrets when Beam Migration is applied.

As the Beam Migration also produces gathers that can be used to analyze residual move-out (which is a measure of the cor- rectness of the velocity model), we are now working to exploit this in the PGS velocity model building tools. By integrating the Beam Migration and tomography tools into the holoSeis™ visualization environment, we are developing an exceptional tool for velocity model building, QC and editing that will offer unique capabilities and very rapid

the number of patents filed the last year in alignment with the increased focus on competitive advantage through technological differentiators. PGS was granted 61 patents last year.

turnaround time in model building. 2009 will see these developments moving the previously time-consuming and restrictive process of velocity model building to new levels of interactivity and interpretability.

24% of Data Processing revenues came from Beam Migration in 2008 and now, with experts worldwide, the benefits of integra- ting AGS Beam into PGS will continue to deliver value.

This is a MegaSurvey image covering approximately 45,000 square kilometers of UK and Dutch sectors in the North Sea. Dimensions are approximately 160 kilometers x 200 kilometers and the green sticks are exploration wells. In total there are 900 exploration wells on this image.



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