Electromagnetic Geoservices ASA

EMGS reports fourth quarter 2016 results

Electromagnetic Geoservices ASA (EMGS) recorded revenues of USD 12.0 million in

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

and up from USD 4.5 million in the third quarter 2016. Contract sales totalled

USD 8.0 million, while multi-client sales amounted to USD 4.0 million. The

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

including multi-client investments, from USD 29.4 million in the fourth quarter

last year to USD 14.3 million this quarter. EBITDA ended at negative USD 2.1

million, up from negative USD 8.0 million in the fourth quarter 2015. Free cash

decreased with USD 1.7 million from the previous quarter.

During the quarter, the BOA Thalassa worked on the announced contract in

Malaysia. Atlantic Guardian has acquired data on multi-client projects in the

Barents Sea.

"We continue to be challenged by a market in which cost controls, reduced

spending and reduced activity take center stage. However, technology

improvements, the cost reduction program and an overall organisational

realignment, as announced over the course of the year, have put us in a much

better position going forward." says CEO of EMGS, Christiaan Vermeijden.

Please find the full report for the fourth 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.

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 of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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