Hank's Oil &Gas Service companies

[10 bagger]

PGS - Q4 earnings update

Again onshore and shallow services competition are hurting EPS..

January 31, 2008: Oslo, Norway, Petroleum Geo-Services ASA (`PGS` or
the `Company`) announced today that it expects to report weaker
results for its Onshore operations in Q4 than earlier indicated, due
to weak crew continuity in Libya. The consolidated numbers will also
be negatively impacted by substantially higher operating cost in the
Marine segment than in the three previous quarters of the year caused
by extensive yard stays, as communicated earlier.

Other developments are largely in line with previous guidance to the
market.
Reference is made to the Company`s report on updated Q4 vessel
utilization and the announcement of Marine contract EBIT margin for
the year to be marginally below 50%. This implies a temporary dip in
the Marine contract revenues to around USD 155 million in Q4, which
corresponds to Q3 revenue level adjusted for the reported capacity
changes. Multi-client revenues in the quarter are the strongest ever.

Further, the Company has previously commented that the financial
impact of its EM subsidiary MTEM was expected to be around the same
level as for Q3, and expects MTEM to report a negative Adjusted
EBITDA[1] of USD 6 million in Q4.

Based on management`s preliminary review of financial performance,
the Company expects to report Q4 2007 consolidated Adjusted EBITDA1
of around USD 165 million.

The Company`s guidance for 2008 remains unchanged.

The Company is still in the process of completing and reviewing its
financial reporting for the quarter and year ended December 31, 2007
and the audit of these financial statements have not been completed.
The numbers are subject to change.

The Company is scheduled to report it`s unaudited fourth quarter 2007
results under IFRS on Thursday February 21, 2008 at approximately
8:00am CET.

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Petroleum Geo-Services is a focused geophysical company providing a
broad range of seismic and reservoir services, including acquisition,
processing, interpretation, and field evaluation. The company also
possesses the world`s most extensive multi-client data library. PGS
operates on a worldwide basis with headquarters at Lysaker, Norway.
For more information on Petroleum Geo-Services visit www.pgs.com.

****

The information included herein contains certain forward-looking
statements that address activities, events or developments that the
Company expects, projects, believes or anticipates will or may occur
in the future. These statements are based on various assumptions made
by the Company, which are beyond its control and are subject to
certain additional risks and uncertainties as disclosed by the
Company in its Annual Report on Form 20-F for the year ended December
31, 2006, as filed with the U.S. Securities and Exchange Commission.
As a result of these factors, actual events may differ materially
from those indicated in or implied by such forward-looking
statements.