Electromagnetic Geoservices ASA

Share Issue/Capital Change • Jul 7, 2017

EMGS - Completion of Rights Issue in Electromagnetic Geoservices ASA

EMGS - Completion of Rights Issue in Electromagnetic Geoservices ASA

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART DIRECTLY OR

INDIRECTLY, IN AUSTRALIA, CANADA, JAPAN, HONG KONG, SINGAPORE OR THE UNITED

STATES

Reference is made to the previous stock exchange announcements by

Electromagnetic Geoservices ASA ("EMGS" or the "Company") regarding the rights

issue of 58,634,735 new shares at a subscription price of NOK 2.45 per share

(the "Rights Issue").

The subscription period in the Rights Issue expired on 6 July 2017 at 12:00 CET.

A total of 52,065,521 shares were subscribed for in the Rights Issue, and as a

result the Underwriters will subscribe for the remaining 6,569,214 shares. These

remaining shares have been divided between the Underwriters according to their

respective underwriting obligations. The Rights Issue will result in gross

proceeds to the Company of NOK 144 million through the issuance of 58,634,735

new shares.

Notifications of allocated new shares and the corresponding amount to be paid by

each subscriber will be sent to the subscribers today, 7 July 2017. Subscribers

having access to investor services through their VPS account will be able to

check the number of new shares allocated to them from 12:00 CET today. Payment

for the allocated new shares falls due on 11 July 2017.

The new shares may not be transferred or traded until they are fully paid by the

individual subscriber and the new shares have been registered with the Register

of Business Enterprises. Subject to payment being received when due, the new

shares are expected to be delivered to the respective subscribers' VPS account

on or about 14 July 2017.

The new shares are expected to commence trading on Oslo Børs on or about 14 July

Following the registration of the new share capital in the Norwegian Register of

Business Enterprises, the Company will have 91,428,874 shares outstanding, each

with a par value of NOK 1.00.

For further information, please 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.

For more information, visit www.emgs.com

Important information:

The release is not for publication or distribution, in whole or in part directly

or indirectly, in or into Australia, Canada, Japan, Hong Kong, Singapore or the

United States (including its territories and possessions, any state of the

United States and the District of Columbia).

This release is an announcement issued pursuant to legal information

obligations, and is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act. It is issued for information

purposes only, and does not constitute or form part of any offer or solicitation

to purchase or subscribe for securities, in the United States or in any other

jurisdiction. The securities mentioned herein have not been, and will not be,

registered under the United States Securities Act of 1933, as amended (the

"Securities Act"). The securities may not be offered or sold in the United

States except pursuant to an exemption from the registration requirements of the

Securities Act. The Company does not intend to register any portion of the

offering of the securities in the United States or to conduct a public offering

of the securities in the United States. Copies of this announcement are not

being made and may not be distributed or sent into Australia, Canada, Japan,

Hong Kong, Singapore or the United States. The issue, exercise, purchase or sale

of subscription rights and the subscription or purchase of shares in the Company

are subject to specific legal or regulatory restrictions in certain

jurisdictions. Neither the Company nor the Receiving Agent assumes any

responsibility in the event there is a violation by any person of such

restrictions.

This communication is only being distributed to and is only directed at persons

in the United Kingdom that are (i) investment professionals falling within

Article 19(5) of the Financial Services and Markets Act 2000 (Financial

Promotion) Order 2005, as amended (the "Order") or (ii) high net worth entities,

and other persons to whom this announcement may lawfully be communicated,

falling within Article 49(2)(a) to (d) of the Order (all such persons together

being referred to as "relevant persons"). This communication must not be acted

on or relied on by persons who are not relevant persons. Any investment or

investment activity to which this communication relates is available only to

relevant persons and will be engaged in only with relevant persons. Persons

distributing this communication must satisfy themselves that it is lawful to do

so.

This announcement is an advertisement and does not constitute a prospectus for

the purposes of Directive 2003/71/EC (as amended, together with any applicable

implementing measures in any Member State, the "Prospectus Directive").

The distribution of this release may in certain jurisdictions be restricted by

law. Persons into whose possession this release comes should inform themselves

about and observe any such restrictions. Any failure to comply with these

restrictions may constitute a violation of the securities laws of any such

jurisdiction. The Receiving Agent is acting for the Company and no one else in

connection with the Offering and will not be responsible to anyone other than

the Company for providing the protections afforded to their respective clients

or for providing advice in relation to the Offering and/or any other matter

referred to in this release.

This information is subject of the disclosure requirements under section 5-12 of

the Norwegian Securities Trading Act.