Electromagnetic Geoservices ASA

Regulatory Filings • Jun 4, 2019

EMGS signs multi-year acquisition contract with PEMEX

EMGS signs multi-year acquisition contract with PEMEX

Reference is made to the stock exchange notifications published by

Electromagnetic Geoservices ASA ("EMGS" or the "Company") on, respectively, 28

March 2019 and 23 April 2019, wherein the Company informed that it had received

a letter of award for a multi-year acquisition contract.

The final contract with the end customer, PEMEX, has now been signed.

As previously communicated, the two-year contract has a value of approx. USD

73.3 million with a minimum value of approx. USD 29.3 million.

Start of mobilisation is expected to take place early Q3 2019.

Subject to actual start-up date, it is expected that close to the full minimum

value will be recognised in 2019.

The work programme is located in the Gulf of Mexico and consists of both shallow

and deep-water surveys.

CEO of EMGS, Bjørn Petter Lindhom, comments:

"We are proud that PEMEX, one of the world's largest national oil companies, has

again chosen to contract with EMGS for a large multi-year acquisition project.

This demonstrates that PEMEX values 3D CSEM data as an important and

complementary input in their exploration workflow. We are confident that the 3D

CSEM data EMGS will now acquire will help PEMEX identify, evaluate and de-risk

prospects, thereby significantly contributing to their exploration efforts.

Chairman of the board of directors of EMGS, Eystein Eriksrud, comments:

"This contract represents an important vote of confidence from one of the

Company's largest repeat customers. This shows, in my opinion, not only that

PEMEX believes in the Company's technology and product, but also that they

believe in the Company's highly competent and dedicated employees and their

ability to deliver the world's premier CSEM product.

With this landmark contract, the fourth biggest in EMGS' history, together with

the proprietary acquisition contract in south-east Asia, the Company has

established a firm platform from which it is well positioned for further

development and growth."

Contact

Hege Veiseth, CFO, +47 99 21 67 43

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 to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act