Electromagnetic Geoservices ASA

Regulatory Filings • Oct 12, 2016

EMGS to reduce the global employee expenses

EMGS to reduce the global employee expenses

Electromagnetic Geoservices ASA (EMGS) announces a reduction in the Company's

cost base in line with a reduced level of activity.

The Company will seek a global reduction in employee expenses of approximately

20% by using both temporary and permanent layoffs amongst others. The cost

reduction measure will yield effects gradually as headcount reductions onshore

and offshore are scheduled to follow a different timeline.

"The market is expected to continue to be subdued until the oil price recovers

and customers increase their E&P budgets. Cost reductions and cost control will

therefore continue to be important focus areas in the Company. However, we will

maintain a footprint in our core markets to be able to efficiently market our

services and be ready when the market turns," says Christiaan Vermeijden, CEO of

EMGS.

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,

Villahermosa, Rio de Janeiro and Kuala Lumpur.

For more information, visit www.emgs.com

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.