Electromagnetic Geoservices ASA

Regulatory Filings • Apr 13, 2016

Settlement of patent disputes between PGS and EMGS

Settlement of patent disputes between PGS and EMGS

Electromagnetic Geoservices ASA (EMGS or the Company) announces that the Company

has entered into a Settlement Agreement with Petroleum Geo-Services ASA (PGS) to

settle the two companies' patent disputes.

On 16 December 2013, EMGS filed a complaint in the United Kingdom against PGS in

the High Court of Justice, Chancery Division, Patents Court. The complaint

alleged that the PGS Defendants had infringed EMGS's European patent EP 1256019

("Refracted Wave Patent"). EMGS also initiated a parallel proceeding before Oslo

City Court in Norway on 4 April 2014 relating to PGS' Towed Streamer EM

technology for infringement of EMGS's parallel Norwegian patent, NO 324 454 (the

"EMGS Patent").

On 5 March 2015, PGS EM Limited filed a complaint in the U.S. District Court for

the District of Delaware against EMGS. This complaint alleged that the EMGS

Defendants have, at least by their survey activities in the Gulf of Mexico and

on the U.S. outer continental shelf and by their interactions with U.S.

customers and their importation of certain data products into the U.S.,

infringed PGS-owned U.S. patent 6,914,433, titled "Detection of Subsurface

Resistivity Contrasts with Application to Location of Fluids".

The above disputes have all been settled by the Settlement Agreement. The

Settlement Agreement grants PGS a license to the EMGS patent for operation of

its Towed Streamer EM system. EMGS is similarly granted a license to the PGS

patent. Both licenses are royalty free and valid world-wide for the validity

period of the relevant patent.

The Settlement Agreement also opens up for joint EM and seismic surveys in the

future.

Both EMGS and PGS support the validity of both the EMGS Patent and the PGS

Patent.

Both companies will cover their own legal costs.

Contacts

Charlotte Knudsen, EMGS head of investor relations, +47 97 56 19 59

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 main offices in Trondheim and Oslo,

Norway; Houston, USA; and Kuala Lumpur, Malaysia.

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.

[HUG#2003006]