Electromagnetic Geoservices ASA

Earnings Release • May 12, 2016

EMGS reports first quarter 2016 results

EMGS reports first quarter 2016 results

Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 13.0 million in

the fourth quarter 2016, down from USD 20.5 million in the fourth quarter 2015

and from USD 22.1 million in the first quarter 2015. The revenues this quarter

consisted of contract sales only, as no multi-client revenues were booked in the

quarter. The Company has reduced its quarterly cost base, consisting of all

operational costs including multi-client investments, from USD 49.0 million in

the first quarter last year to USD 18.2 million this quarter. EBITDA ended with

a negative USD 3.4 million.

"Although the market continues to be challenging, we are encouraged by the

recovery of the oil price and the interest shown by various customers, including

regulators, in our EM services. The reduction of the cost base is also expected

to put us in a much better position as the market recovers," says CEO of EMGS,

Christiaan Vermeijden.

During the quarter, the vessel BOA Thalassa completed the announced contract

work in India for ONGC and acquired 3D EM multi-client data off the west coast

of India thereafter. The Atlantic Guardian was on a planned yard stay in

February and started acquiring data on a multi-client project in the Hammerfest

basin in the Barents Sea from mid-March.

The market outlook for oil services continues to be challenging and is

characterised by high uncertainty. Oil companies have continued to announce

further reductions in their spending for 2016 compared to 2015 as a response to

the sharp decline in oil price. The interest in the EM technology from the oil

companies is healthy, although challenged by the reduced budgets and project

deferrals.

Please find the full report for the first quarter 2016 enclosed. The results

will be presented at 10:00 CET today at the Company's premises in Dronning Mauds

gate 15 in Oslo. The presentation will be published at 09:30 CET.

Contacts

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#2011996]