EM VALUE CREATION

EMGS ASA

CEO, Roar Bekker CFO, Svein Knudsen Pareto Securities‘ Oil & Offshore Conference 2013 , Oslo, 5 September 2013

EMGS IN BRIEF

• Pioneered the EM industry

• Technology & market leader

• Delivered >650 surveys

• ~300 employees

• Worldwide experience

• Efficient & stable operations

• Listed on OSE March 2007

• 2012 revenues: USD 201 million

• 2012 EBITDA: USD 56 million

2

THE EM METHOD – BOREHOLE RESISTIVITY LOGGING

Hydrocarbon Reservoirs are Resistors

Resistivity log 10

4 10 10

0 10

2 10

3 10

1 10 10 10 10 10 10

Resistivity [m] -1

Seawater: 0.3 Ωm

Water-bearing

sediments:

1 - 2 Ωm

Hydrocarbon

reservoirs:

10 - 100 Ωm

Electric resistivity

HIGHLIGHTS FOR THE FIRST HALF OF 2013

Revenues and revenues/costs per vessel month (USD Million)

7.5

22.4

(39%)

Financial highlights first half 2013

• Revenues of USD 76.1 million

• EBITDA of USD 14.5 million

• Bond issue NOK 350 million

Backlog significantly improved

• PEMEX contract of USD 99.8 million

• Brunei contract worth ~ USD 50 million

Expanding the multi-client segment

• Multi-client sales of USD 26.6 million

• Major investments in Brazil and Barents Sea

• Partnering with TGS

0

50

100

150

200

250

Assets Equity & liabilities

Balance sheet as at 30.06.13 (USD million)

Current assets excl. cash Interest bearing debt

Cash Liabilities

Non current assets Shareholders equity

51% equity ratio

USD 46.2 million

USD 73.0 million

0

50

100

150

200

250

2009 2010 2011 2012

PEMEX – A CUSTOMER’S SUCCESS STORY

PEMEX DEEP WATER OIL EXPLORATION RESULTS 2004-2010

EM INTRODUCED IN PORTFOLIO MANAGEMENT

PEMEX DEEP WATER OIL EXPLORATION RESULTS 2004-2013

EM – THE KEY TO SUCCESS IN THE BARENTS SEA

POLHEIM SUB-PLATFORM

7.0

6.0

5.0

4.0

3.0

2.0

1.0

Apparent anisotropy

Skrugard Appraisal Skrugard Havis 7219/9-1

POLHEIM SUB-PLATFORM - 3D EM ANOMALIES

Non commercial:

< 48 mboe (www.npd.no)

Dry Discovery Prediction Discoveries «Extremely Small Discovery»

BJØRNØYA BASIN

• 3 distinct EM responses/resistors;

– Salt dome: strong vertical response

on top, low anisotropy beneath

– Lead 1: EM coincides partly with

seismic anomaly

– Lead 2: Stratigraphic trap or lithology?

Lead 1

Lead 2

Salt dome

BJØRNØYA BASIN

• Lead 1: EM response coincides partly with

high seismic anomaly

→ Reduced volume?

Vertical resistivity – depth slice

Public 2D seismic

Lead 1

BARENTS SEA – WHAT IF...

Zapffe

Heilo

Skrugard

Havis

Nunatak

Norvarg

Wisting

Nucula

Salina

Darwin

30,000 km2 of 3D EM data

16 Exploration Wells

11 EM before well

5 EM after well

Snøhvit

Fingerdjupet

1,2,3

Albatross

EXPLORATION PORTFOLIO BEFORE 3D EM

Probability of success (PoS)

Avera

ge r

eserv

es [

MM

boe]

Not Economic

To

o R

isky

Darwin

Snøhvit

Zapffe

Heilo

Norvarg

Wisting

Nucula

Salina

Skrugard

Havis Nunatak

Albatross

Fingerdjupet 1

Fingerdjupet 2

Fingerdjupet 3

NOTE: Well Placements are for illustrations only

Low High

Low

High

EXPLORATION PORTFOLIO AFTER 3D EM

Probability of success (PoS)

Avera

ge r

eserv

es [

MM

boe]

Not Economic

To

o R

isky

NOTE: Well Placements are for illustrations only

Low High

Low

High

Darwin

Heilo

Nucula

Fingerdjupet 1,2,3

Salina

Nunatak

Zapffe

CSEM Negatives

Snøhvit

Norvarg Wisting

Skrugard Havis

Albatross

CSEM Positives

HYDROCARBONS ARE RESISTIVE...

Skrugard

Havis

Norvarg

Snøhvit

Darwin

Salina

7219/9-1

WHY DRILL CONDUCTORS?

Full consistency between 3D EM and drilling

results in the Barents Sea

Technology and

market leadership

• Proven technology

and track record

• Unique market

position

EMGS: A UNIQUELY POSITIONED INVESTMENT CASE

Scalable &

flexible business

model

• Solid balance sheet

and cash position

• Asset light

Strong market

growth potential

• Strong value

proposition

• Broaden customer

base and technology

applications

QUESTIONS?