Reduction of Cash Costs and Related Issuance of Senior Notes

Paris, France | Jan 23, 2017

Reflecting CGG’s commitment to focus on strict cost and cash management, CGG and CGG’s Norwegian subsidiary Exploration Investment Resources II have entered into agreements to substantially reduce the cash burden of the charter agreements (guaranteed by CGG) in respect of three cold-stacked seismic vessels (namely the “Pacific Finder”, the “Ocean Phoenix” and the “Viking Vanquish”) in exchange for agreed settlement amounts.

As part of the agreements to settle those amounts on a non-cash basis, CGG on January 20 issued $58.6 million in aggregate principal amount of its 6.50% Senior Notes due 2021 to the relevant charter counterparties.