Norway: EMGS Clinches Major Marine 3D EM Deal (Worth $150 M)

Electromagnetic Geoservices ASA (EMGS)  announces that it has been awarded a multi-year contract worth a minimum of USD 150 million by one of the world’s largest oil companies.

The 3D EM campaign will employ one of EMGS’s purpose-built 3D EM vessels continuously throughout the duration of the contract period, providing substantially improved vessel utilisation levels.

Formal finalisation of contract and contract signature is expected in approximately two weeks, with vessel mobilization towards the end of August. EMGS anticipates that the contract will generate 2010 revenues in the range of USD 20 – 25 million, and that the remaining contract value will be recognised in 2011 and 2012.

Roar Bekker, EMGS chief executive officer, commented:

“This award, by far the largest ever within marine EM, is a giant step forward for EMGS. A long-term project such as this provides us with a solid platform for future growth and allows us to manage our vessel utilisation far more efficiently.

“EMGS has previously provided services for this customer, and this significant award is a major statement of confidence in our advanced 3D products and high-capacity vessels. More importantly, it is a sign that EM technology is entering the mainstream of exploration and production workflows. We are confident that our 3D EM data will continue to reduce this customer’s exploration risk and finding costs, and we look forward to building on this relationship over the period of the project.”

About EMGS

EMGS uses its proprietary electromagnetic (EM) technology to support oil and gas companies in their search for offshore hydrocarbons. The company is the EM market leader, and provides Clearplay, the world’s first fully integrated EM system.

Three service offerings – Clearplay Find, Test and Evaluate – have been designed to assist operators in the exploration and production phase. Clearplay supports each stage in the workflow, from survey design and data acquisition to processing and interpretation. The services enable 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 the world’s first purpose-built 3D EM vessel fleet and has conducted more than 450 surveys to improve drilling success rates across the world’s mature and frontier offshore basins. The company operates on a worldwide basis with main offices in Trondheim and Stavanger, Norway; Houston, USA; and Kuala Lumpur, Malaysia.

[mappress]

Source: Emgs, June 21, 2010: