Electromagnetic Geoservices ASA

Regulatory Filings • Jul 4, 2014

EMGS - Vessel update and activity for the second quarter 2014

EMGS - Vessel update and activity for the second quarter 2014

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 2014 came in at 75% compared with 78%

for the second quarter 2013.

In the second quarter this year, the Company's vessels were allocated 38% to

contract and 37% to multi-client programmes, whereas the allocation was 32% and

46% respectively in the corresponding quarter last year.

EMGS recorded 12.0 vessel months this quarter, compared with 11.5 in the second

quarter of 2013.

Vessel activity

The BOA Thalassa completed its work in Morocco on 25 April, after which the

vessel moved to Norway to commence on a series of smaller contracts in the

Barents Sea from 6 May. The vessel's utilisation for the second quarter was 74%.

The BOA Galatea acquired 3D EM data on the USD 99.8 million contract with PEMEX

until 31 May. The vessel then started the planned yard stay including the 5 year

class renewal. The vessel's utilisation came in at 66% for this quarter.

After completing its work on the PEMEX contract on 22 March, the Atlantic

Guardian headed to Norway and commenced on the contract for North Energy in the

Norwegian Sea on 19 April. Thereafter the vessel started on the Company's multi-

client campaign in the southeastern part of the Barents Sea, a joint project

with TGS. The vessel's utilisation for the quarter was 64%.

The EM Leader commenced the multi-client campaign, called Daybreak, late

February and spent the full second quarter acquiring data for the campaign in

the Alaminos Canyon in southern US Gulf of Mexico. The EM Leader had a

utilization of 95% in the second quarter.

Planned activity for EM Leader and BOA Galatea going forward

The BOA Galatea is expected to complete its yard stay on 7 July. The vessel will

then head towards Canada to start the multi-year, multi-client campaign. As

announced on 7 May, EMGS has an agreement with Nalcor Energy, the Provincial

Energy Corporation of Newfoundland and Labrador, which includes financial

support of the survey. Additional funding is expected, and will determine how

much of the multi-year campaign that will be covered in 2014.

On 27 June 2013, the Company entered into a USD 100 million contract with PEMEX.

The contract has a total duration of 3 years. As of 30 June 2014, USD 18.5

million remains of the contract, in addition to 2x USD 25 million options for

extension. The Company expects to start working for PEMEX again during the

fourth quarter 2014.

The EM Leader will shortly complete the first phase of the Daybreak campaign,

which has covered a total of 120 blocks. The campaign has been fully supported

by industry funding. Following a short yard stay, the vessel will be heading

towards Asia in late July. The Company has developed a portfolio of promising

prospects in Asia and expects to retain a vessel in this region throughout

2015. It is expected that the vessel will be ready for projects in Asia from the

fourth quarter, after one to two projects on route to Asia.

Multi-client revenues in the second quarter

During the second quarter, the Company has announced USD 2.0 million in multi-

client late sales, in addition to pre-funding of its projects in the US Gulf of

Mexico and the Barents Sea. The Company expects to record a total of

approximately USD 7 million in multi-client revenues for the second quarter.

This is net of the contribution to TGS related to the cooperation between the

two companies in the Barents Sea.

EMGS will publish its second quarter 2014 financial results on Thursday 21

August 2014 at 07:30 CET. A presentation will be held at Hotel Continental in

Oslo, Norway, and will be broadcasted live over the Internet, starting at 08:30

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#1813050]