Electromagnetic Geoservices ASA

Earnings Release • May 3, 2018

EMGS reports first quarter 2018 results

EMGS reports first quarter 2018 results

Electromagnetic Geoservices ASA ("EMGS" or the "Company") recorded revenues of

USD 4.3 million in the first quarter 2018, up from USD 4.2 million in the first

quarter 2017. Contract and other sales totalled USD 0.8 million, while multi-

client sales amounted to USD 3.5 million in the first quarter 2018.

EMGS has maintained a quarterly cost base, consisting of all operational costs

including the long-term lease of two vessels and multi-client investments, of

around USD 12.4 million, up from USD 12.0 million during the same quarter last

year. The Company recorded an EBITDA of negative USD 6.4 million, down from

negative USD 5.5 million in the first quarter 2017. Free cash decreased with USD

4.7 million from the previous quarter mainly due to negative cash flow from

operating and investing activities.

During the quarter, the Atlantic Guardian acquired data on a multi-client survey

in the Barents Sea. The BOA Thalassa completed two pre-funded multi-client

surveys offshore Indonesia.

The quarter has been seasonally weak as expected. However, the Company is

experiencing increased interest regarding proprietary and pre-funded multi-

client acquisitions in- and outside of Norway", says CEO of EMGS, Christiaan

Vermeijden.

Please find the full report for the first quarter 2018 and the presentation

enclosed. The results will be presented at 10:00 CET today. The presentation

will be held by CEO Christiaan Vermeijden and CFO Hege A. Veiseth and will be

broadcasted live over the Internet. The webcast can be accessed on www.emgs.com

It will be possible to post questions through the webcast.

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,

Villahermosa, Rio de Janeiro and Kuala Lumpur.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.