Update from EMGS
Electromagnetic Geoservices ASA ("EMGS" or the "Company") has been advised by the customer that the Company will not, in the near to medium future, receive additional acquisition work under the two-year acquisition contract announced to the market on 4 June 2019.
It is the Company’s understanding that the customer’s decision is related to its own strategic priorities, and not related to EMGS’ performance under the contract.
The Company has previously assumed that substantial new acquisition work under the two-year contract would be forthcoming within the near future. The decision by the customer not to order additional acquisition work, at least for the near to medium future, will have a material detrimental effect on the Company’s revenue and profitability going forward.
The board of directors of the Company is evaluating all strategic options available to the Company.
The Company will immediately initiate a comprehensive cost reduction programme to adjust the Company’s operational cost base to the new confirmed backlog level.
Contact
Anders Eimstad, EMGS Interim Chief Financial Officer,
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.
