Exhibit 99.1
NEWS RELEASE
Dawson Geophysical Company
508 West Wall, Suite 800
Midland, TX 79701
Dawson Geophysical Company
508 West Wall, Suite 800
Midland, TX 79701
DAWSON GEOPHYSICAL AND TGC INDUSTRIES
ANNOUNCE MERGER UPDATE
ANNOUNCE MERGER UPDATE
MIDLAND, Texas, October 24, 2011/PR Newswire/ — As previously announced, Dawson Geophysical
Company (Dawson) (NASDAQ: DWSN) and TGC Industries, Inc. (TGC) (NASDAQ: TGE) entered into a
definitive merger agreement pursuant to which Dawson will acquire TGC in a tax-free stock-for-stock
transaction.
The Board of Directors of each of Dawson and TGC approved on March 20, 2011 the merger
agreement and recommends that each of their respective shareholders vote “FOR” the proposals to be
voted on at the special meetings approving the transaction.
Pursuant to the terms of the merger
agreement, one of the conditions to closing is that the average of the volume weighted average
price (or VWAP) of Dawson common stock on the NASDAQ during the 10 consecutive trading days ending
on October 25, 2011 be equal to or greater than $32.54 but less than or equal to $52.54. As of
October 21, 2011 (the end of the 8th trading day of the 10 trading day measurement
period), the average of Dawson’s VWAP for the first 8 trading days of the measurement period was
$27.23.
Since it is unlikely that the 10-day average of Dawson’s VWAP on October 25, 2011 will be within
the designated range, Dawson and TGC have exchanged letters reflecting their suggested changes to
various terms of the merger agreement, including the exchange ratio. At this time, no changes have
been agreed to by the parties. Pursuant to the terms of the merger agreement, Dawson and TGC are
required, during October 26 and 27, 2011, to negotiate a possible adjustment to the exchange ratio.
If the parties do not come to an agreement on a revised merger agreement, then either party may
terminate the transaction at any time on or after negotiations end on October 27, 2011. There can
be no assurance that any discussions will result in any adjustments to the existing terms of the
merger agreement, including the exchange ratio.
If Dawson and TGC do agree to revise the merger agreement, Dawson and TGC will each publicly
announce the revisions, will circulate a supplement to the joint proxy statement/prospectus
previously sent to shareholders, and will adjourn their respective shareholder meetings to permit
shareholders to revote their shares, if they choose to do so.
Regardless of the discussions noted above, the merger transaction cannot be consummated unless it
is approved by Dawson and TGC shareholders at their respective special meetings. Accordingly,
Dawson’s board of directors recommends that Dawson shareholders vote “FOR”
approval of the issuance of shares of Dawson common stock to TGC shareholders pursuant to the
merger agreement and TGC’s board of directors recommends that TGC shareholders vote “FOR” approval
of the merger agreement.
Dawson shareholders who have questions about the merger, or who need assistance in submitting their
proxy or voting their shares, should contact the proxy solicitor, Morrow & Co., LLC, at (800)
607-0088 (banks and brokers call collect: (203) 658-9400).
TGC shareholders who have questions about the merger, or who need assistance in submitting their
proxy or voting their shares, should contact the proxy solicitor, D.F. King at (800) 967-4617
(banks and brokers call collect: (212) 269-5550).
About Dawson
Dawson Geophysical Company is the leading provider of U.S. onshore seismic data acquisition
services as measured by the number of active data acquisition crews. Founded in 1952, Dawson
acquires and processes 2-D, 3-D and multi-component seismic data solely for its clients, ranging
from major oil and gas companies to independent oil and gas operators as well as providers of
multi-client data libraries.
About TGC Industries
TGC Industries, Inc., based in Plano, Texas, is a provider of seismic data acquisition services
with operations throughout the continental United States and Canada. TGC has branch offices in
Houston, Midland, Oklahoma City and Calgary.
Cautionary Statement Regarding Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of
1995, Dawson and TGC caution that statements in this press release which are forward-looking and
which provide other than historical information involve risks and uncertainties that may materially
affect Dawson’s or TGC’s actual results of operations. These risks include but are not limited to
the volatility of oil and natural gas prices, dependence upon energy industry spending, disruptions
in the global economy, industry competition, delays, reductions or cancellations of service
contracts, high fixed costs of operations, external factors affecting Dawson’s or TGC’s crews such
as weather interruptions and inability to obtain land access rights of way, whether either company
enters into turnkey or term contracts, crew productivity, limited number of customers, credit risk
related to Dawson’s or TGC’s customers, the availability of capital resources, operational
disruptions, the ability to obtain all necessary approvals for the merger and whether the average
of the volume weighted average price of Dawson’s common stock will be within the range specified in
the merger agreement and if not, whether the parties can agree to a modified exchange ratio. A
discussion of these and other factors, including risks and uncertainties with respect to Dawson is
set forth in Dawson’s Form 10-K for the fiscal year ended September 30, 2010 and Dawson’s Form
10-Qs for the three months ended March 31, and June 30, 2011 and with respect to TGC, is set forth
in TGC’s Form 10-K for the fiscal year ended December 31, 2010 and TGC’s Form 10-Qs for the three
months ended March 31, and
June 30, 2011. Dawson and TGC disclaim any intention or obligation to revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
Important Information For Investors and Shareholders
This communication does not constitute an offer to sell or the solicitation of an offer to buy any
securities or a solicitation of any vote or approval.
In connection with the proposed merger, Dawson filed with the Securities and Exchange Commission
(“SEC”) a registration statement on Form S-4 that includes a definitive joint proxy
statement/prospectus regarding the proposed merger. The registration statement was declared
effective by the SEC on September 23, 2011, and a definitive joint proxy statement/prospectus was
mailed to Dawson and TGC shareholders on or about September 27, 2011 in connection with the
proposed merger.
INVESTORS AND SECURITY HOLDERS OF DAWSON AND TGC ARE URGED TO READ THE JOINT PROXY
STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR
ENTIRETY AS THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and
shareholders may obtain free copies of the joint proxy statement/prospectus, as well as other
documents containing important information about Dawson and TGC filed with the SEC, through the
website maintained by the SEC at www.sec.gov. Dawson and TGC make available free of charge
at www.dawson3d.com and www.tgcseismic.com, respectively (in the “Investor
Relations” section), copies of materials they file with, or furnish to, the SEC, or investors and
shareholders may contact Dawson at (432) 684-3000 or TGC at (972) 881-1099 to receive copies of
documents that each company files with or furnishes to the SEC.
Participants in the Proxy Solicitation
Dawson, TGC, and certain of their respective directors and officers may be deemed to be
participants in the solicitation of proxies from the shareholders of Dawson and TGC in connection
with the proposed transactions. Information about the directors and officers of Dawson is set
forth in its proxy statement for its 2011 annual meeting of shareholders, which was filed with the
SEC on December 7, 2010. Information about the directors and officers of TGC is set forth in its
Amendment No. 1 to Annual Report on Form 10-K/A, which was filed with the SEC on April 15, 2011.
These documents can be obtained free of charge from the sources indicated above. Other information
regarding the participants in the proxy solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, is contained in the joint proxy statement/prospectus
and other relevant materials to be filed with the SEC when they become available.
# # #
Company Contact
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Company Contact | |
Dawson Geophysical Company
|
TGC Industries, Inc. | |
Stephen C. Jumper, President & CEO
|
Wayne Whitener, President & CEO | |
Christina W. Hagan, CFO
|
(972) 881-1099 | |
(800) 332-9766 |
www.dawson3d.com |
||
Company Contact
|
Company Contact | |
EnerCom, Inc.
|
DRG&L | |
Anthony D. Andora, Managing Director
|
Jack Lascar | |
(303) 296-8834
|
(713) 529-6600 |