Electromagnetic Geoservices ASA

EMGS reports fourth quarter 2017 results

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

USD 11.3 million in the fourth quarter 2017, down from USD 12.0 million in the

fourth quarter 2016 and up from USD 10.0 million in the third quarter 2017.

Contract and other sales totalled USD 1.6 million, while multi-client sales

amounted to USD 9.7 million in the fourth quarter 2017. EMGS has reduced its

quarterly cost base, consisting of all operational costs including multi-client

investments, from USD 14.3 million in the fourth quarter last year to USD 11.6

million this quarter. The Company recorded EBITDA of USD 0.4 million, up from

negative USD 2.1 million in the fourth quarter 2016. Free cash decreased with

USD 6.4 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 pre-funded multi-

client survey in Canada and multi-client surveys in the Barents Sea. The BOA

Thalassa was idle until late November, after which she mobilised for two pre-

funded multi-client surveys offshore Indonesia.

"We are pleased to have seen several opportunities mature outside of Norway and

yet another quarter with a positive EBITDA as a result of a relatively healthy

amount of revenues and low operational costs.", says CEO of EMGS, Christiaan

Vermeijden.

Please find the full report for the fourth quarter 2017 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.

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