EMGS receives Letter of Intent for multi-client pre-funding in Namibia

EMGS receives Letter of Intent for multi-client pre-funding in Namibia

Electromagnetic Geoservices ASA (“EMGS” or the “Company”) is pleased to announce that the Company has received a letter of intent with a minimum value of USD 3.6 million from an undisclosed customer on behalf of a JV block consortium, offshore Namibia. Under the terms of the pending data licensing agreement, a final survey option type and license fee is expected to be determined by the customer within end of Q1 2020.

Under the terms of the letter of intent, the customer will pre-fund a new multi-client CSEM data acquisition in the Walvis Basin using EMGS’s next generation DeepBlue, a deep-towed source developed under a joint industry project involving Shell and Equinor. In addition, EMGS will provide data processing, inversion with 3D Gauss-Newton and integrated interpretation services.

Subject to final contract exchange and regulatory permits, including an environmental clearance certificate, survey acquisition is expected to commence between 1 May and 1 August 2020 using the vessel Atlantic Guardian.

CEO of EMGS, Bjørn Petter Lindhom comments:

“We’re delighted to receive this letter of intent for a multi-client campaign in the Walvis Basin. Securing this additional commitment in Namibia also enables EMGS to convert an existing acquisition contract in Block 2113A, announced by EMGS in August 2019 with Nabirm Global LLC, from a vessel of opportunity with backstop, to a firm survey commitment in 2020.

We continue to engage with customers with a view to further expand the planned data coverage to provide a first-class CSEM dataset extending between the Walvis & Orange Basins, where several high impact, deep-water exploration wells are planned in 2020.”

Anders Eimstad, EMGS Interim Chief Financial Officer, +47 948 25 836