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9/18/2006 Avista Capital Partners Invests $100 Million in Geokinetics Inc.

HOUSTON, TX, Sept. 18, PRNewswire -- Avista Capital Partners, a leading private equity firm, today announced it has invested $100 million in Geokinetics Inc. to partially finance Geokinetics' previously announced $125 million acquisition of Grant Geophysical, Inc. Based in Houston, Texas, Geokinetics is a leading provider of seismic acquisition and data processing services to oil and gas companies onshore in the U.S. and in Canada. The investment was made in the form of a $50 million senior bridge note, which is expected to be redeemed upon securing permanent debt financing, and a $50 million subordinated note, which is expected to be exchanged for convertible preferred stock after redemption of the senior bridge note.

The acquisition of Grant combines Geokinetics' large onshore North American presence with Grant's expertise in land, transition zone and shallow water markets primarily in North America, Latin America, Asia and the Middle East. Upon completion of the acquisition, Geokinetics will be one of the largest land, transition zone and shallow water seismic acquisition companies in the world. The acquisition will expand Geokinetics' presence in international markets and complement its current North American natural gas focus with exposure to customers focused on the development of oil in international basins.

Steven Webster, Co-Managing Partner of Avista Capital, said, "Worldwide exploration activity is on a secular upswing, and as a leading provider of seismic acquisition and data processing services we believe Geokinetics is well-positioned to capitalize on the increase in demand for these services. Moreover, Geokinetics' acquisition of Grant Geophysical consolidates two leading seismic acquisition companies with highly complementary operations, creating a global business with significant scale."

David A. Johnson, President and Chief Executive Officer of Geokinetics, said "We are very excited to be working with the Avista Capital team. Their knowledge of and investment experience in the energy sector will support and strengthen Geokinetics as we work to build our business and create value for our shareholders."

About Geokinetics

Geokinetics Inc., based in Houston, Texas, is a North American focused provider of 3D seismic acquisition and high-end seismic data processing services to the oil and gas industry. More information about Geokinetics is available on the Internet at www.geokineticsinc.com.

About Grant Geophysical

Grant is a leading provider of seismic acquisition services to the oil and gas industry in land and transition zone environments worldwide. The primary focus of Grant has been on providing 2D and 3D seismic data acquisition services on land, primarily in Latin and South America and in transition zone and shallow water environments in Latin America, EAME and the Far East.

About Avista Capital Partners

Avista Capital Partners is a private equity firm with offices in New York, NY and Houston, TX. Founded in 2005, Avista's strategy is to make controlling or influential minority investments primarily in growth-oriented media, healthcare and energy companies. Through its team of seasoned investment professionals and industry experts, Avista seeks to partner with exceptional management teams to invest in and add value to well-positioned businesses. www.avistacap.com

Media Contact

 Diana Postemsky, Kekst and Company, 212-521-4805

Source PRN PR Newswire

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