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Electromagnetic Geoservices ASA

Earnings Release Oct 28, 2014

3587_iss_2014-10-28_629990c7-4573-4d42-a2b5-2fe82564e82a.pdf

Earnings Release

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SPOT THE DIFFERENCE.

How EM data improves your exploration decision-making SEG 2014 Denver

To make EM an integral part of the E&P workflow

Our vision is to make EM as fully adopted as seismic – to be used as a complementary technology.

By providing EM data integrated with other subsurface measurements we enable our customers to increase success in their exploration and development programs.

Electromagnetics in the E&P workflow

Probability of Economic Success & Volumetrics

Highlights YTD 2014

Contracts/ Customers

  • Multiple contracts with new and existing customers in Norway
  • New customer in Morocco in February
  • New contract for Petrobras
  • Recently announced contract with IOC in Malaysia

Multi-client projects

  • First phase of 3D EM multi-client survey in US Gulf of Mexico completed
  • Commenced joint 3D EM multi-client project in Barents Sea with TGS
  • Commenced multi-client project offshore Canada
  • Partner agreements with ANCAP in Uruguay and Nalcor Energy in Canada

Financial highlights

  • Revenues of USD 104 million 1H
  • EBITDA of USD 31 million 1H

Stable and flexible financial position

• Cash at USD 40.0 million at 30.6

Mexico update

Opening of the Mexican continental shelf

  • CNH to manage annual licensing rounds
  • Pemex granted 83% of proven and probable reserves in round zero
  • Round 1 expected to include major deep-water areas

Status on USD 100 million Pemex contract

  • Est. USD 19 million in backlog at 30 September
  • Possible extensions of 2 x USD 25 million

Multi-client project in The US Gulf of Mexico

Daybreak project

  • EMGS' first major MC project in the US
  • 2014 program extended, covering approximately 156 blocks and 3,600 km2
  • Access to 2D seismic from TGS

US Gulf of Mexico important basin

  • Exposure to a wide range of companies
  • Large future potential

East Canada Multi-Client Program

  • Acquisition commenced on 25 July
  • Expect approximately 3 months, ~4,000 km2 in 2014 and 13,500 km2 in total
  • Calibrate survey to Flemish Pass Basin where recent major oil discoveries have been made by Statoil
  • First licencing round expected mid-2015
  • Soliciting additional partners for the program

Barents sea – what if ..........

Exploration in the Barents Sea

PL537 – Wisting & Hanssen

3D Broadband inversion – Hoopalong prospect

Open acreage 23rd round – Jurassic

3D seismic time slice in area around Wisting

Arbitrary seismic profile from Wisting and the surrounding area

Foz do Amazonas Overview 3D CSEM and Spectrum 2D Seismic Data

Source of EM anomalies – fluids or lithology?

Regional prospectivity

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