Electromagnetic Geoservices ASA ("EMGS" or the "Company") is pleased to announce that the Company has entered into its first acquisition contract related to renewable energy infrastructure.
Subject to the issuance by the undisclosed customer of certain notice to proceed orders, the contract has a value of up to approx. USD 2 million. The contract does not include any minimum scope of work.
CEO of EMGS, Bjørn Petter Lindhom, comments:
“We have long held the view that the EM technology has a number of applications also outside of the core E&P industry, including marine minerals exploration, geothermal and site surveys. EMGS is therefore very excited to undertake this first renewable energy infrastructure project. We are confident in our ability to deliver best-in-class data to the customer, and that this project will demonstrate that using EM data represents an attractive value proposition also outside of our core area of oil and gas exploration.”
Under the contract, EMGS will acquire resistivity data based on the magnetotelluric (MT) geophysical method, which utilises the natural variations of the earth’s electromagnetic field without an artificial EM source. The area of operations is in Southeast Asia, and the Company will acquire the data based on a cost-efficient setup utilising a locally chartered vessel.
Subject to the issuance of a notice to proceed order by the customer, the Company expects to undertake the acquisition project in 2024.
Contact
Anders Eimstad, Chief Financial Officer, +47 948 25 836
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. CSEM technology can also be used to detect the presence of marine mineral deposits (primarily Seabed Massive Sulphides) and EMGS believes that the technology can also be used to estimate the mineral content of such deposits. The Company is undertaking early-stage initiatives to position itself in this future market.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
