Update on multi-year acquisition contract

Reference is made to the stock exchange notification published by Electromagnetic Geoservices ASA ("EMGS" or the "Company") on 4 June 2019, wherein the Company informed that it had signed a two-year acquisition contract with PEMEX with a total value of approx. USD 73.3 million and a minimum value of approx. USD 29.3 million.

The Company is currently in the process of finishing all acquisition work initially ordered by PEMEX. Additional acquisition operations will thus be subject to issuance of new call-offs.

EMGS is pleased to announce that it has received a call-off for additional acquisition work. The call-off consists of deep-water acquisition work and has a total value of approx. USD 3.4 million, excluding associated processing.

Furthermore, the Company has also received a call-off covering modelling work in preparation for other potential acquisition operations.  

CEO of EMGS, Bjørn Petter Lindhom, comments:

“I am very proud of the outstanding operational efficiency and first-class product EMGS is delivering to PEMEX under this contract. The additional acquisition work now ordered by PEMEX is an important confirmation that we are meeting PEMEX’s expectations.”

Based on modelling work already ordered and completed, on-going discussions with PEMEX and the new modelling call-off received, the Company has reason to believe that additional acquisition work is likely to be forthcoming.

Contact
Anders Eimstad, EMGS Interim Chief Financial Officer, [phone]

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.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.