Electromagnetic Geoservices ASA (EMGS) and TGS have signed an agreement to jointly invest in a 3D electromagnetic (EM) multi-client survey programme covering 11 blocks, or approximately 3300 km2, in the Hoop area of the Barents Sea.
The 3D EM data, which is currently being acquired by EMGS's vessel Atlantic Guardian, will be sold by both EMGS and TGS. The two companies will split revenues according to their respective investments.
Under the terms of the previously announced collaboration agreement, EMGS will be given access to TGS's 2D seismic data for survey planning and integration purposes, while TGS will obtain access to 3D EM data to evaluate and plan subsequent multi-client work over the area.
"EMGS and TGS recently entered into a cooperation agreement and we are pleased to now join forces in the Barents Sea," said Roar Bekker, CEO of EMGS. "Both companies have a strong track record in this area and several case studies have shown the value of integrating EM and seismic data to reduce exploration risk and identify new hydrocarbon prospects. This provides a great starting point for the joint project in the Hoop area."
Vessel schedule for Atlantic Guardian
During the first quarter earnings release, the Company indicated that the Atlantic Guardian would perform a USD-5-million survey on the Norwegian continental shelf in June. EMGS now expects that this survey will be included in the vessel schedule for the second half of 2013, subject to vessel availability. The Atlantic Guardian will acquire multi-client data in the Barents Sea for the remainder of the second quarter and into the third quarter of 2013.
Contact
Roar Bekker, EMGS chief executive officer, +47 22 01 14 00
Svein Knudsen, EMGS chief financial officer, +47 22 01 14 00
Chris Guldberg, EMGS Head of PR/IR, +47 73 56 88 10 / +47 92 81 07 07
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 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 has conducted more than 700 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 Oslo, Norway; Houston, USA; and Kuala Lumpur, Malaysia. Please visit www.emgs.com for more information.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.