Electromagnetic Geoservices ASA

EMGS receives Letter of Intent for multi-client pre-funding in Namibia

Electromagnetic Geoservices ASA ("EMGS" or the "Company") is pleased to announce

that the Company has received a letter of intent with a minimum value of USD

3.6 million from an undisclosed customer on behalf of a JV block consortium,

offshore Namibia. Under the terms of the pending data licensing agreement, a

final survey option type and license fee is expected to be determined by the

customer within end of Q1 2020.

Under the terms of the letter of intent, the customer will pre-fund a new multi-

client CSEM data acquisition in the Walvis Basin using EMGS's next generation

DeepBlue, a deep-towed source developed under a joint industry project involving

Shell and Equinor. In addition, EMGS will provide data processing, inversion

with 3D Gauss-Newton and integrated interpretation services.

Subject to final contract exchange and regulatory permits, including an

environmental clearance certificate, survey acquisition is expected to commence

between 1 May and 1 August 2020 using the vessel Atlantic Guardian.

CEO of EMGS, Bjørn Petter Lindhom comments:

"We're delighted to receive this letter of intent for a multi-client campaign in

the Walvis Basin. Securing this additional commitment in Namibia also enables

EMGS to convert an existing acquisition contract in Block 2113A, announced by

EMGS in August 2019 with Nabirm Global LLC, from a vessel of opportunity with

backstop, to a firm survey commitment in 2020.

We continue to engage with customers with a view to further expand the planned

data coverage to provide a first-class CSEM dataset extending between the Walvis

& Orange Basins, where several high impact, deep-water exploration wells are

planned in 2020."

Contact

Anders Eimstad, EMGS Interim Chief Financial Officer, +47 948 25 836

About EMGS

EMGS, the marine EM market leader, uses its proprietary electromagnetic (EM)

technology to support oil and gas companies in their search for offshore

hydrocarbons. EMGS supports each stage in the workflow, from survey design and

data acquisition to processing and interpretation. The Company's services enable

the integration of EM data with seismic and other geophysical and geological

information to give explorationists a clearer and more complete understanding of

the subsurface. This improves exploration efficiency and reduces risks and the

finding costs per barrel.

EMGS operates on a worldwide basis with offices in Trondheim, Oslo, Houston,

Mexico City, Rio de Janeiro and Kuala Lumpur.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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