Update on multi-year acquisition contract

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.

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