Electromagnetic Geoservices ASA

Earnings Release • Aug 21, 2014

EMGS reports second quarter and first half year 2014 results

EMGS reports second quarter and first half year 2014 results

Electromagnetic Geoservices ASA's (EMGS) reported revenues of USD 42.5 million

in the second quarter 2014, down from USD 61.3 million in the first quarter this

year and from USD 44.4 million in the corresponding quarter last year. Contract

sales totaled USD 35.5 million, while multi-client sales were at USD 7.0 million

this quarter. The Company had an EBITDA of USD 10.9 million and a net loss of

USD 2.5 million.

Revenues for the first half year 2014 came in at USD 103.8 million, compared

with USD 76.1 million for the corresponding period last year. The increase in

revenues is related to more contract work this year.

The Company had two vessels operating in Norway in the quarter, of which one

vessel acquired 3D EM data in the Barents Sea under the Company's joint multi-

client project with TGS. In addition, one vessel where operating for PEMEX,

before going into a planned yard stay, while the fourth vessel, the EM Leader,

spent the full quarter acquiring data under the multi-client project called

Daybreak in the US Gulf of Mexico.

"We have been awarded a multiple of contracts with new and existing customers in

Norway this quarter, demonstrating a positive trend for adoption of our EM

technology. Going forward, we are optimistic about increasing the visibility by

securing additions to our backlog during the second half of this year," says CEO

of EMGS, Roar Bekker.

On 19 August EMGS settled the NOK 75 million convertible bond loan to North

Energy. The Company will receive NOK 46.6 million in cash and converted NOK

28.4 million of the loan into 6,851,463 shares in North Energy, at a strike

price of NOK 4.1451. After the transaction, EMGS holds 11,851,463 shares in

North Energy, representing 9.96%.  In addition, the Company receives interest of

a total of NOK 2.4 million.

EMGS maintains its guidance to deliver full year 2014 revenues of more than USD

200 million.

Please find the full report for the second quarter and first half year 2014

enclosed, including the presentation of the results.

Contacts

Roar Bekker, EMGS chief executive officer, +47 911 41 149

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.

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