Electromagnetic Geoservices ASA

Audit Report / Information • Apr 30, 2020

EMGS: Board of directors approves audited financial statements and annual report for 2019

EMGS: Board of directors approves audited financial statements and annual report for 2019

The board of directors of Electromagnetic Geoservices ASA ("EMGS" or the

"Company") has today approved EMGS' 2019 annual financial statements and annual

report.

There are no material changes to the financial statements compared to the

preliminary and unaudited full year results presented by the Company on 6

February 2020. The 2019 audit opinion from the Company's auditor, EY, is without

qualifications. However, it includes an emphasis of matter related to material

uncertainty pertaining to the going concern assumption. For further details

regarding the going concern assumption, please refer to the annual report.

As further described as subsequent events in the annual report, based on the

recent market and operational developments the Company has resolved to make the

following two impairments in the first quarter of 2020:

*The book value of the multi-client library has been impaired by USD 0.8

million, due to a reduction in expected future revenue.

*The book value of the DeepBlue system has been reduced from USD 22.5 million at

year end 2019 to USD 16.8 million at end of the first quarter of 2020.

EMGS' annual report for 2019 is enclosed to this stock exchange notification.

Contact

Anders Eimstad, EMGS Interim Chief Financial Officer, +47 948 25 836

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 exploration experts a clearer and more complete

understanding of the subsurface. This improves exploration efficiency and

reduces risks and the finding costs per barrel.

For more information, visit www.emgs.com (http://www.emgs.com)

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act