Electromagnetic Geoservices ASA

Business and Financial Review • Jul 6, 2015

EMGS - Vessel update and activity for the second quarter 2015

EMGS - Vessel update and activity for the second quarter 2015

Electromagnetic Geoservices ASA (EMGS) releases information on vessel activity

and utilisation 4-5 working days after the close of each quarter. The Company

defines "vessel utilisation" as the percentage of the vessel charter period

spent on contracted or multi-client data acquisition.

Vessel utilisation for the second quarter 2015 came in at 68% compared with 75%

for the corresponding quarter in 2014. For the first six months this year, the

vessel utilisation came in at 72% compared with 71% for the same period last

year.

In the second quarter of 2015, the Company's vessels were allocated 5% to

contract and 63% to multi-client programmes. In the second quarter of 2014, the

allocation was 38% and 37% respectively.

EMGS recorded 10.5 vessel months this quarter, compared with 12 vessel months in

the second quarter of 2014.

Vessel activity

The BOA Thalassa has been in Asia for the full second quarter positioned for

expected contract work in the region. The vessel completed the first phase of a

3D EM multi-client project in Indonesia on 14 April and started on the second

phase of the project on 15 April. This phase was completed on 26 May, after

which the vessel has been idle.

The vessel's utilisation for the second quarter was 46%.

The BOA Galatea acquired 3D EM data on the multi-client project called the

Radiant from 27 January to 2 April. The vessel then started on the Lightning

Bolt (phase 1-3) project on 3 April. This project is expected to be completed

around mid-July.

The vessel's utilisation came in at 86% this quarter.

The Atlantic Guardian completed the Barents Sea multi-client campaign, which was

done in cooperation with TGS, on 14 April. The vessel then commenced a new

campaign in the Hammerfest basin on 15 April. The survey covers approximately

12 blocks in the Barents Sea and the Norwegian Sea, all which are among the

predefined areas (APA) announced by the Norwegian Petroleum Directorate on 21

April. The campaign was completed 2 July.

The vessel's utilisation for the second quarter was 87%.

The EM Leader completed the contract for BG Group on 17 April. The vessel then

transited to Canada, where it has been off-hire since 15 May. As announced on

16 June, EMGS reduce its vessel capacity from four to three vessels for the rest

of 2015 by taking out the EM Leader. The Company will therefore book a provision

in the second quarter related to loss on the EM Leader charter agreement for the

rest of 2015 of USD 1.5 million.

The vessel's utilisation was 33% in the second quarter.

Multi-client revenues in the second quarter

The Company expects to record a total of approximately USD 7 million in multi-

client revenues for the second quarter 2015. This is net of the contribution to

partners.

EMGS will publish its second quarter and first half 2015 financial results on

Thursday 20 August 2015 at 07:30 CET. A presentation will be held at the

Company's office address, in Dronning Mauds gate 15 in Oslo, and will be

broadcasted live over the Internet, starting at 10:00 CET.

Contact

Svein Knudsen, EMGS chief financial officer, +47 911 41 149

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#1934175]