EMGS receives Letter of Award for a multi-year acquisition contract
23 Apr 2019
Following the stock exchange notification published by Electromagnetic Geoservices (EMGS) on 28 March 2019, wherein the Company announced that it was participating in a sole-sourced tender process for a multi-year acquisition contract.
EMGS has announced that the Company has now received a letter of award for the contract. The multi-year call-off acquisition contract, awarded by one of the world's largest national oil companies, has a minimum value of approx. USD 29.3 million, and a maximum value of approx. USD 73.3 million, over a two-year period. Based on current acquisition estimates, the Company expects that all or a substantial part of the minimum contract value will be recognised in 2019.
The Company expects that final contract execution will take place within approx. three weeks. The Company will mobilise the Atlantic Guardian for the project.
CEO of EMGS, Bjørn Petter Lindhom, comments:
'This letter of award from a repeat customer, together with the on-going proprietary acquisition in south-east Asia, has secured backlog for both of the Company's vessels, providing a sound basis for two-vessel operation for the Company in 2019.
It also gives us confidence that our strategy of integrating CSEM into oil companies' exploration workflow is on the right track. More and more oil companies' realise that CSEM is an important tool for reducing exploration risk and cost, with an attractive ROI when used correctly.'