Reference is made to Electromagnetic Geoservices ASA's ("EMGS" or the "Company")
financial report for the third quarter of 2019, wherein the Company described
delays in the approval and payment of invoices under an on-going acquisition
contract in the Americas. Further details regarding the situation, and the
potential consequences thereof in the event the Company is not able to resolve
it, is set out in the 2019 third quarter financial report.
The delays in payment and approval of these invoices continues. However, the
Company is experiencing progress both with regards to payment of approved
invoices and approval of invoices ready for final submittal to the customer.
As of today and after 30 September 2019, the Company has received cash payments
of approximately MUSD 8.6 under the contract, including cash advances received
under a factoring facility related to the contract.
Based on current projections, and the information available to the Company
today, EMGS expects to have a free cash position at 31 December 2019 in excess
of MUSD 10. This projection assumes, amongst other things*, no further cash
payments from the end customer before 31 December 2019.
Additional details will be provided in due course.
Contact
Hege Veiseth, CFO, +47 99 21 67 43
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.
EMGS operates on a worldwide basis with offices in Trondheim, Oslo, Houston,
Mexico City, Rio de Janeiro and Kuala Lumpur.
* please see the Disclaimer for forward-looking statements, included on page 15
of the Company's 2019 third quarter financial report for further details
regarding the inherent uncertainty associated with all projections and forward
looking statements.
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act