Electromagnetic Geoservices ASA

Regulatory Filings • Jan 4, 2019

EMGS - Vessel update and activity for the fourth quarter 2018

EMGS - Vessel update and activity for the fourth quarter 2018

Electromagnetic Geoservices ASA (the "Company" or "EMGS") releases information

on vessel activity and utilisation 4-5 working days after the close of each

quarter. The Company defines vessel utilisation as the percentage of the vessel

charter period spent on proprietary or multi-client data acquisition. Downtime

(technical or maritime), mobilisation, steaming, and some standby activities are

not included in the utilisation rate.

Vessel utilisation for the fourth quarter 2018 was 32% compared with 13% for the

fourth quarter in 2017. For the full year 2018, the vessel utilisation was 33%,

whereas the utilisation for the full year 2017 was 56%.

In the fourth quarter of 2018, the Company's vessels were allocated 32% to

proprietary work and no time was spent on multi-client projects. In the

comparable quarter of 2017, the vessels were allocated 13% to multi-client

projects and no time was spent on proprietary work.

EMGS had two vessels in operation and recorded 5.7 vessel months in the quarter.

In the fourth quarter 2017, the Company recorded 6.0 vessel months.

Vessel activity

The Atlantic Guardian began the fourth quarter acquiring data on a small

research survey west of Svalbard. On 21 October, the vessel started mobilising

to South America and was prepared for the USD 8 million contract, which the

vessel started operation on from 20 November. This survey is expected to be

completed in Q1 2019.

The vessel's utilisation for the fourth quarter was 49%.

The BOA Thalassa has had a yard stay and been idle this quarter.

Multi-client revenues in the fourth quarter

The new revenue recognition standard, IFRS 15, was effective from 1 January

2018. The multi-client prefunding revenues are recognised at the point in time

final data is delivered to the customer, and not based on the so-called

Percentage of Completion (POC) principle.

The Company expects to record approximately USD 6 million in multi-client

revenues for the fourth quarter 2018.

If the Company had used the same revenue recognition principles as in 2017 (i.e.

the POC principle), the multi-client revenues for the fourth quarter 2018 would

have totaled approximately USD 4 million.

The difference in revenues are timing differences only and do not have an effect

on cashflow.

EMGS will publish its fourth quarter 2018 financial results on Wednesday 30

January 2019 at 07:30 CET. A presentation will be broadcasted live over the

Internet, starting at 10:00 CET. To access the presentation, please go to the

Company's homepage (www.emgs.com) and follow the link.

Contact

Hege Veiseth, EMGS Chief Financial Officer, +47 992 16 743

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 exploration experts 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.

For more information, visit www.emgs.com

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.