Electromagnetic Geoservices ASA

M&A Activity • Mar 4, 2019

EMGS: Update on multi-client Letter of Intent

EMGS: Update on multi-client Letter of Intent

Reference is made to the stock exchange notification published by

Electromagnetic Geoservices ASA ("EMGS" or the "Company") on 22 February 2019,

announcing that the Company had received a multi-client letter of intent with an

approximate value of USD 8 million.

EMGS and the customer, Equinor Energy AS ("Equinor"), has today entered into

final contracts under the letter of intent. The final contracts are in

accordance with the terms of the letter of intent, as described in the 22

February 2019 stock exchange announcement, and includes both licensing of

Barents Sea, Norwegian Sea and North Sea data from the Company's existing multi-

client library, as well as prefunding for a new multi-client acquisition in the

North Sea.

Of the combined gross contract value of approximately USD 8 million, the Company

expects to recognise approximately USD 7 million of revenue in the first quarter

of 2019.

With these contracts, the Company's liquidity situation is materially improved.

The Company is continuing its efforts to secure other material late sales

opportunities.

CEO of EMGS, Bjørn Petter Lindhom, comments:

"EMGS is very proud of the confidence vote these multi-client contracts

represents and exited that Equinor chooses to license data from the North Sea

and the Norwegian Sea as well as committing to prefunding a new multi-client

survey in the North Sea. This shows, in our view, that CSEM provides valuable

information to operators in all areas of the NCS."

Contact

Hege Veiseth, CFO, +47 992 16 743

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,

Mexico City, Rio de Janeiro and Kuala Lumpur.

For more information, visit www.emgs.com (http://www.emgs.com/)