UPDATE 2-TGS-Nopec shares leap on upbeat Q4 guidance

(Add analyst comments, Wavefield comment, updates share price)

By Aasa Christine Stoltz and Ole Petter Skonnord

OSLO Jan 7 (Reuters) - Norwegian seismic surveyor TGS-Nopec (TGS.OL) said on Monday it expected 2007 revenue growth at the lower end of its forecasts and fourth quarter results better than projected, boosting its shares sharply on the Oslo bourse.

TGS-Nopec, a supplier of seismic surveys to the oil and gas industry, published new estimates after it had to exclude results from its planned merger partner Wavefield Inseis WAVE.OL amid a dispute over their tie-up.

Shares in TGS-Nopec rose 9.0 percent to 80.80 crowns by 0947 GMT, valuing the company at about 8.6 billion Norwegian crowns ($1.61 billion), while shares in Wavefield were up 0.7 percent at 43.50 crowns, valuing it at 5.6 billion crowns.

The Oslo bourse's benchmark index .OSEBX was down 0.9 percent.

TGS last month launched a formal process, which has subsequently led to arbitration, to resolve the dispute over the $1.2 billion takeover, which was put on ice by Wavefield after an unexpected TGS profit warning for the third quarter knocked the value of the deal to Wavefield shareholders.

Some Wavefield shareholders believed TGS knew it had missed market estimates of third-quarter earnings when voting for the merger.

Wavefield Chief Excutive Atle Jacobsen told Reuters that the new TGS estimates for the fourth quarter removed some of the uncertainty around its results.

"This is definitely not negative, this is a positive message, and we are very happy about that," Jacobsen said.

Q4 BEATS FORECAST

TGS said its standalone net revenues would now amount to about $168 million for the fourth quarter. When presenting figures for the third quarter, it estimated fourth-quarter revenues for the consolidated company in the range of $190-210 million.

Analyst Richard Jansen at ABG Sundal Collier estimated TGS' forth-quarter revenues to be about 24 percent higher than forecast, but that 2007 revenues would be lower than expected.

"The numbers for 2007 are worse than expected, but not as much as we feared," Jansen said, adding that the situation now looks better for TGS. But he said TGS will be have a weaker position than many of its rivals if the merger is cancelled.

TGS said Estimated standalone net revenues for the full year 2007 would be about $453 million, excluding $9.8 million previously included in the TGS third-quarter results from the consolidation of 10 days of the Wavefield Inseis' business.

"Consequently, the 2007 annual growth rate in excess of 14 percent is in line with TGS' guidance for the full year 2007 ... prior to commencement of the merger discussions with Wavefield Inseis," TGS said in a statement.

In July, TGS had cut its projection of 2007 revenue growth to about 15-20 percent from 20-25 percent due to project delays in the second and third quarters.

TGS said it may be required to record a financial loss in its fourth quarter accounts on the value of the Wavefield shares acquired during the third quarter of 2007.

But said it expected demand for its products to remain strong throughout 2008.

TGS said at the weekend the two companies had agreed to refer disagreements over the merger to arbitration.

"Let a Norwegian arbitration panel look at the facts and settle the matter. We'll abide by the panel's decision," said TGS-Nopec chairman Claus Kampmann in the statement on Sunday. (Editing by Quentin Bryar/Rory Channing)