ELECTROMAGNETIC GEOSERVICES
PARETO OIL & OFFSHORE CONFERENCE
CEO, Roar Bekker 11 September 2014
EMGS IN BRIEF
EMGS: GLOBAL MARKET AND TECHNOLOGY LEADER
worldwide
2014 FIRST HALF HIGHLIGHTS
Financial highlights first half 2014
- Revenues of USD 103.8 million
- EBITDA of USD 29.4 million
- 48% equity ratio
Operational highlights
- Initiated major 3D EM multi-client survey in US Gulf of Mexico and Canada
- Awarded multiple contracts with new and existing customers in Norway
- Commenced joint 3D EM multi-client project in southeast Barents Sea with TGS
- North Energy library sale and strategic agreement
Outlook and guidance
- 2014 revenue guiding maintained
- Long term outlook intact
Revenues per vessel month (USD Million)
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.
PLENTY ROOM FOR GROWTH IN A USD 10 BILLION MARKET
Marine geophysical expenditure breakdown
Electromagnetics (2%)
EM: CAPABILITY MATURITY
TRIGGERS FOR GROWTH OF EM MARKET
EM IN THE BARENTS SEA – A PROVEN SUCCESS STORY
HOOP – A HOTSPOT OF EXPLORATION ACTIVITY
EM ANOMALIES ARE SPOT ON
EM PREDICTIONS IN THE BARENTS SEA
- All hydrocarbon bearing reservoirs drilled to date have been highly resistive
- Wisting and Hanssen has been correctly predicted as high resistive reservoirs by EM and has opened up a new oil province
- High resolution EM predicted discovery on Mercury – although classified a small noncommercial gas find
B'
Mercury
Wisting C
Hanssen Wisting A
TGS P-Cable seismic and resistivity
EXPLORATION IN THE BARENTS SEA
EAST CANADA MULTI-CLIENT PROGRAM
- Agreement signed with Nalcor Energy including financial support
- 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
- Currently soliciting additional partners for the program
Nalcor Energy; the Provincial Energy Corporation of Newfoundland and Labrador
MULTI-CLIENT PROJECT IN THE US GULF OF MEXICO
Daybreak project
- EMGS' first major MC project in the US
- Multi-year program
- 2014 program extended, covering approximately 156 blocks and 3,600 km2
- Access to 2D seismic from TGS
- Attracting sales due to opening of deep water Mexico
US Gulf of Mexico important multi-client basin
- Exposure to a wide range of companies
- Large future potential, annual lease rounds
FOZ DO AMAZONAS 3D CSEM AND SPECTRUM 2D SEISMIC DATA
CSEM ANOMALY CHARACTERISTICS
CSEM anomalies identified in FDA area
- Most anomalies elongate with branching geometries associated with canyons mapped in the section
- Some canyons have anomalies and some do not
- Some anomalies are not associated with canyon fill and appear deeper in the sections
MARKET UPDATE
Order book (USD Million)
9 0 20 40 60 80 100 120 140 Q113 Q213 Q313 Q413 Q114 Q214
Contract opportunities 2H 2014
- Good progress on closing 1 major contract in H2
- Final stages of preparing long-term campaign in Asia – Thalassa being mobilised
- Leader awarded \$5.5m contract for Petrobras
- Significant MC sales leads in all key MC areas
2015
- Increased visibility for opportunities in southeast Asia
- EM campaign planned for 1H15 in Uruguay
- Opening up of Mexican shelf expected to increase activity – also MC
- Continue to invest in key multi-client libraries and capitalize on existing investments
- EM becoming established part of geophysical budgets
Market sentiment
• Negative sentiment for exploration spending challenging
EMGS: A UNIQUELY POSITIONED INVESTMENT CASE