Electromagnetic Geoservices ASA

Management Reports • Apr 14, 2016

EMGS implements changes to the organisation to reduce cost and increase efficiency

EMGS implements changes to the organisation to reduce cost and increase efficiency

Electromagnetic Geoservices ASA (EMGS) announce several changes to the

organisation to reduce the Company's cost base and increase efficiency in line

with the level of expected activity.

The Company will implement several structural changes to the organisation,

including centralising and / or merging departments, in addition to other

measures to reduce cost. These changes will result in a reduction of the global

headcount by about 15%.

The Company expects to book restructuring charges of approximately USD 0.7

million in the second quarter of 2016. The additional cost measures will be

implemented immediately and yield effects gradually, and are expected to further

reduce the annual cost base by approximately USD 10 million.

"Whilst the interest in our technology continues to be high, our customers are

delaying, cancelling or reducing work scopes, resulting in a lower demand for

our services. Therefore, we continue to focus on cost control and cash flow, and

implement changes to increase the efficiency of the organisation," says

Christiaan Vermeijden, CEO of EMGS.

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 exploration experts 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.

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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