Reference is made to the stock exchange notifications published by Electromagnetic Geoservices ASA ("EMGS" or the "Company") on, respectively, 28 March 2019 and 23 April 2019, wherein the Company informed that it had received a letter of award for a multi-year acquisition contract.
The final contract with the end customer, PEMEX, has now been signed.
As previously communicated, the two-year contract has a value of approx. USD 73.3 million with a minimum value of approx. USD 29.3 million.
Start of mobilisation is expected to take place early Q3 2019.
Subject to actual start-up date, it is expected that close to the full minimum value will be recognised in 2019.
The work programme is located in the Gulf of Mexico and consists of both shallow and deep-water surveys.
CEO of EMGS, Bjørn Petter Lindhom, comments:
“We are proud that PEMEX, one of the world’s largest national oil companies, has again chosen to contract with EMGS for a large multi-year acquisition project. This demonstrates that PEMEX values 3D CSEM data as an important and complementary input in their exploration workflow. We are confident that the 3D CSEM data EMGS will now acquire will help PEMEX identify, evaluate and de-risk prospects, thereby significantly contributing to their exploration efforts.
Chairman of the board of directors of EMGS, Eystein Eriksrud, comments:
“This contract represents an important vote of confidence from one of the Company’s largest repeat customers. This shows, in my opinion, not only that PEMEX believes in the Company’s technology and product, but also that they believe in the Company’s highly competent and dedicated employees and their ability to deliver the world’s premier CSEM product.
With this landmark contract, the fourth biggest in EMGS’ history, together with the proprietary acquisition contract in south-east Asia, the Company has established a firm platform from which it is well positioned for further development and growth.”
Hege Veiseth, CFO, +47 99 21 67 43