Cancellation of subsequent offering

Due to the prevailing market conditions, with the shares of the Company trading below the subscription price in the Private Placement and in a Subsequent Offering, the Board of Directors of the Company has decided not to have a Subsequent Offering. Shareholders of the  Company  as  at  21 June  2010 (as  recorded in VPS on 24 June 2010 and visible  in the VPS on  25 June 2010) who were not contacted by the Managers to participate in the Private Placement or who did not participate or leave an order in the Private Placement, will have had the opportunity to acquire shares in the Company at a price less than the subscription price in a Subsequent Offering, and a Subsequent Offering is therefore not required to address the interests of such shareholders.

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. Please visit www.emgs.com for more information.