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