Electromagnetic Geoservices ASA

Earnings Release • Feb 11, 2016

EMGS reports fourth quarter 2015 results

EMGS reports fourth quarter 2015 results

Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 20.5 million in

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

from USD 52.5 million in the fourth quarter 2014. Contract sales ended at USD

9.0 million, while sales from the multi-client library ended at USD 11.5 million

in the quarter. The results were negatively affected by announced restructuring

charges related to the Company's cost reduction program. EBITDA ended with a

negative USD 8.0 million and the Company has done multi-client impairments of

USD 8.6 million in the fourth quarter.

"I am pleased to have started at EMGS. The low oil price presents a challenge as

exploration budgets continue to come down. However, with the adoption of our

technology on the rise, EMGS continues to be well positioned within the

industry. I am encouraged by the healthy amount of business opportunities, even

though our customers tend to delay decisions to award work closer to the start-

up of the surveys," says CEO of EMGS, Christiaan Vermeijden.

During the quarter, the vessel BOA Thalassa completed the announced contract

work in Malaysia and the vessel is currently operating on the announced contract

work for ONGC in India worth approximately USD 15 million. The BOA Galatea

worked on a Proof of Concept study in Mexico in the quarter and was delivered

back to the vessel owner in mid-January.

EMGS expects the cost reduction measures to have full effect from the second

quarter 2016 and the Company is currently ahead of its target to cut cost.

The market outlook for oil services continues to be challenging, and is

characterised by high uncertainty. Oil companies have continued to announce

further reductions in their spending for 2016 compared to 2015 as a response to

the sharp decline in oil price. The interest in the EM technology from the oil

companies is healthy, although challenged by the reduced budgets.

Based on the current operational forecast, EMGS expects to operate two vessels

in 2016 with an option to include a third vessel if certain prospects

materialise. The Company expects to keep one vessel in Asia throughout 2016,

while the other vessel is expected to operate in Europe and the Americas. EMGS

will continue to invest in its multi-client library in selected areas.

Please find the full report for the fourth quarter 2015 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.

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 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 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#1985286]