Update on multi-client Letter of Intent

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.”

Hege Veiseth, CFO, +47 992 16 743