Electromagnetic Geoservices ASA (EMGS) received a Letter of Intent (LOI) for an extension to the ongoing USD $35 million contract in Asia. The value of the contract extension is at least USD $15 million, which brings the total contract value to a minimum of USD $50 million.
It is expected that the vessel, BOA Thalassa, will complete the entire work program, including the contract extension, in October 2013. Final confirmation and award of the extension is subject to the customer's internal Tender Board approval.
"This contract extension is an endorsement of our services and shallow water capabilities”, said Roar Bekker, CEO of EMGS. “Furthermore, it confirms the value that 3D EM delivers to regional exploration. This is a new application of EM which we believe has considerable market potential going forward.”
EMGS, the marine EM market leader, uses its proprietary electromagnetic (EM) technology to support oil and gas companies in their search for offshore hydrocarbons. The company 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 clear and more complete understanding of the subsurface. This improves exploration efficiency, and reduces risks and the finding costs per barrel.