Fjord Defence Group ASA

Regulatory Filings • Dec 17, 2019

Axxis Geo Solutions provides update on Letter of Intent

Axxis Geo Solutions provides update on Letter of Intent

Lysaker, 17 December 2019

Reference is made to notification from Axxis Geo Solutions ASA (AGS) dated 23 September 2019, in which AGS announced a signed Letter of Intent, and as further set out in the presentation from the Company 13 November 2019.

AGS has made significant efforts to finalize the final contract and commence operation over the last few months. However, final contract award is subject to our client obtaining a separate contract award from their partners. AGS has just learned that our client and their partners are discussing a reduced initial scope of work compared to the initial scope of 28 vessel months and that the execution of their contract will be somewhat delayed. Consequently, the contract award to AGS is also delayed. AGS has been and is still confident that the contract will be awarded. AGS has mobilized 4 vessels to Malta in anticipation of the commencement of the work. AGS is currently negotiating compensation, including stand-by rates, to compensate for further delays.

The projected revenues from the first phase of the contract are expected to be approximately USD 35 million, with a potential for further upside.

The delay of the contract award has had significant negative impact on the working capital position of the Company. The current outstanding trade payables of the Company is approximately USD 33 million.

Subject to contract award, AGS expects the working capital position to steadily improve.

As a consequence of the delayed contract award, the Company is considering various options to strengthen the financial position of the Company.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Contacts

Lee Parker, CEO

Lee.parker@axxisgeo.com

+1 832 275 7258

Svein Knudsen, CFO

Svein.Knudsen@axxisgeo.com

+47 906 94 170

About AGS

Axxis Geo Solutions (AGS) is a pure-play ocean bottom node seismic company uniquely positioned to pursue both contract and multi-client seismic. AGS specializes on delivering tailored seismic solutions and flexible project management and execution to oil and gas companies world-wide. Its operations are based on a scalable asset-light setup through chartering of vessels and nodes to complete seismic surveys.

AGS is listed on Oslo Axess and traded under the ticker AGS.

More information on www.axxisgeo.com