Electromagnetic Geoservices ASA

Earnings Release • Nov 3, 2016

EMGS reports third quarter 2016 results

EMGS reports third quarter 2016 results

Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 4.5 million in

the third quarter 2016, down from USD 16.3 million in the third quarter 2015 and

from USD 15.1 million in the second quarter 2016. Contract sales totalled USD

0.5 million, while multi-client sales amounted to USD 4.0 million. The Company

has reduced its quarterly cost base, consisting of all operational costs

including multi-client investments, from USD 34.1 million in the third quarter

last year to USD 14.2 million this quarter. EBITDA ended at negative USD 6.2

million, up from negative USD 10.0 million in the third quarter 2015. Free cash

decreased with USD 5.5 million from the previous quarter.

During the quarter, the Atlantic Guardian has completed the JIP field test and

acquired data on multi-client projects in the Hammerfest basin and in the

Barents Sea. BOA Thalassa has been laid up at a reduced rate since 1 May.

"We are being challenged by a very difficult market wherein opportunities are

being pushed back as the oil industry is re-adjusting its level of spending. The

reduction in the Company's cost base, as announced in October, will put us in a

stronger position going forward. The provisional award in Asia has provided the

Company with some increased confidence, but the outlook remains uncertain." says

CEO of EMGS, Christiaan Vermeijden.

Please find the full report for the third quarter 2016 enclosed. The results

will be presented at 10:00 CET today at the Company's premises in Dronning Mauds

gate 15 in Oslo. The presentation will be published at 09:30 CET.

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 of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.