Electromagnetic Geoservices ASA

EMGS reports first quarter 2017 results

Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 3.9 million in

the first quarter 2017, down from USD 13.0 million in the first quarter 2016 and

from USD 12.0 million in the fourth quarter 2016. Contract sales totalled USD

0.7 million, while multi-client sales amounted to USD 3.2 million. The Company

has reduced its quarterly cost base, consisting of all operational costs

including multi-client investments, from USD 15.8 million in the first quarter

last year to USD 12.0 million this quarter. EBITDA ended at negative USD 5.7

million, down from negative USD 3.4 million in the first quarter 2016. Free cash

decreased with USD 1.0 million from the previous quarter.

During the quarter, the Atlantic Guardian has acquired data on multi-client

projects in the Barents Sea. The BOA Thalassa has been laid up at a reduced rate

since 5 January.

"We have noted an increase in commercial activity, and with a reduced cost base

and the announced rights issue, the Company is well positioned going forward,"

says CEO of EMGS, Christiaan Vermeijden.

Please find the full report for the first quarter 2017 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.

Contact

Hege Veiseth, CFO, +47 99 21 67 43

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 offices in Trondheim, Oslo, Houston,

Villahermosa, Rio de Janeiro and Kuala Lumpur.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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