emgs has been awarded a contract by an independent oil company for a seabed logging ("SBL") project offshore India commencing in late May 2007. The firm scope of work is no less than USD 13.9 million; the actual contract value is dependent upon final decisions concerning acquisition geometry.
The program, which consists of a large scanning component, is expected to continue until October 2007. In addition, the contract provides the oil company with an option to extend the scope of work substantially.
The firm program includes a 1,400 km² scan, followed by 510 kilometres of traditional line acquisition.
Terje Eidesmo, CEO of emgs comments: `We are pleased to confirm that we get repeat business from a satisfied customer, and are pleased that we have succeeded in strengthening this business relationship further. We have strong reasons to believe that the contractual firm scope of work will lay the foundation for extension via the optional program.`
emgs is the global market leader for the provision of seabed logging services, a technology that enables the detection of hydrocarbons beneath the seabed prior to drilling. emgs has developed this proprietary and patented technology over the past 10 years. Since its incorporation as a separate company in 2002, emgs has conducted more than 200 commercial surveys for many of the world's leading oil and gas companies and offshore operators.
Trondheim, April 16, 2007
emgs ASA
Terje Eidesmo CEO +47 73 56 88 10
This press release includes statements that may constitute forward-looking statements. Such forward- looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond emgs` management`s control. All statements other than statements of historical facts included herein may constitute forward- looking statements. Although emgs` management believes that the expectations reflected in the forward-looking statements are reasonable, emgs can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect our operations, financial performance and other factors.