EMGS ASA

Svein Knudsen, CFO 21 March 2013

DISCLAIMER

This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Electromagnetic Geoservices ASA (EMGS) and its subsidiaries. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for the EMGS’s businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although Electromagnetic Geoservices ASA believes that its expectations and the information in this presentation were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this presentation. Electromagnetic Geoservices ASA nor any other company within the EMGS Group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the presentation, and neither Electromagnetic Geoservices ASA, any other company within the EMGS Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the presentation. Electromagnetic Geoservices ASA undertakes no obligation to publicly update or revise any forward-looking information or statements in the presentation.

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

MEASURING RESISTIVITY

Water-bearing

sediments:

1 - 2 Ωm

Low resistivity

Hydrocarbon

reservoirs:

10 - 100 Ωm

High resistivity

Hydrocarbon

reservoirs display

high resistivity

10 4

10 10 0

10 2

10 3

10 1

10 10 10 10 10 10

Well log resistivity [ m] -1

THE 3D EM METHOD

Source towed above a grid

of receivers

Receivers deployed in a predetermined grid

on the sea floor

3D EM data indicates oil reserves (high

resistivity matches seismic anomaly)

WORLDWIDE EXPERIENCE AND PRESENCE

Include PNG

Survey water depths from ~ 30 to 3500 metres in mature and frontier basins worldwide

3D EM IN THE EXPLORATION & PRODUCTION (E&P) WORKFLOW

EM IN THE E&P WORKFLOW –

PORTFOLIO OPTIMIZATION - MEXICO

• 2010 - 2012

• >12,000 km2

• 35 deep-water

prospects

Calibration

Prediction

Generation

• EM prediction

success rate:

4 out of 4 wells

Data courtesy of PEMEX

Ref : Escalera et al : The Road Ahead : SEG , Las Vegas 2012

REGIONAL EXPLORATION

BARENTS SEA MULTICLIENT 3D EM

2008 – 2012

24,000 km2

Apparent

anisotropy

6.0

5.0

4.0

3.0

2.0

1.0

7.0

2013 BARENTS SEA MULTI-CLIENT 3D EM PROGRAM

Area A: Fingerdjupet - Hoop

Area C: Western Barents

Area B: South Eastern Barents

3D EM IN SUB-BASALT EXPLORATION

• Preliminary 3D CSEM and MT inversion results

• Mapping basalt distribution and thickness

• EMGS responses match well log results

• Confirms potential in sub-basalt exploration

STRONG FOOTHOLD IN BRAZIL

Successful Petrobras campaign

• Defined as a “pilot project” by Petrobras

• USD 100 million contract (incl. extension)

• Petrobras transition from 2D to 3D

• 9505 km source towing, 5075km2

Drilling results match 3D EM responses

• Four discoveries

• Two dry wells

Multi-client program recently completed

• Frontier Ceará basin in northern Brazil

• Blocks included in 11th licensing round

• Major discovery announced in

August 2012

Six out of six

NEW MULTI-CLIENT PROGRAM: FOZ DO AMAZONAS BASIN, BRAZIL

Highly prospective equatorial margin

• Zaedyus discovery in French Guiana

• Petrobras’s Pecém discovery in the

Ceará basin

• Analogous discoveries in the West

African equatorial margin

Collaboration with Spectrum

• Combining 2D seismic and 3D EM

• Early stage exploration in a frontier basin

• Improved imaging and prospecting

• Spectrum has 21,000 km multi-client 2D

seismic

• EMGS shortly commencing multi-client

3D EM survey covering 8000 km2

Q4 AND FULL YEAR 2012 HIGHLIGHTS

HIGHLIGHTS

Q4 financial results

• Revenues of USD 45.0 million

• EBITDA of USD 10.1 million

Full-year 2012 financial results

• Revenues of USD 200.8 million

• EBITDA of USD 55.9 million

Key investments made in 2012

• Proof of concept studies

• New acquisition technology

• Expanding multi-client data library

Market and outlook 2013

• New market segments

• Visibility improving

• Expect 2013 revenues of USD 210 – 230 million

0

50

100

150

200

250

2008 2009 2010 2011 2012

Revenues per year (USD million)

-60

-40

-20

0

20

40

60

80

2008 2009 2010 2011 2012

EBITDA per year (USD million)

28% 25%

16%

FINANCIAL POSITION

Equity and liabilities (USD million)

48 75

0

20

40

60

80

100

120

140

160

180

200

31.12.2012 31.12.2011

Non-current assets other than cash

Cash

Current assets other than cash

Assets (USD million)

47

0

20

40

60

80

100

120

140

160

180

200

31.12.2012 31.12.2011

Shareholders equity Liabilities Interest bearing debt

55%

MARKET AND OUTLOOK

KEY DRIVERS FOR MARKET GROWTH

Increased adoption

• EM integrated in E&P workflow

• Customers’ EM expertise

• Recognition of value proposition

New applications

• Structural imaging (salt/basalt)

• Volume estimation, appraisal

• Regional exploration

New technology

• See deeper, higher resolution

• Step-change

• Shallow water

Industry partnerships, joint ventures and multi-client business model

Improved data integration

Q4 2012 Q1 2013 Q2 2013 Q3 2013

Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept

BOA Thalassa

BOA Galatea

Atlantic Guardian

EM Leader

EM Express

VESSEL ACTIVITY AND BACKLOG

Petrobras

Contract: Multi-client: Contract negotiations: Steaming:

Norway

Proof of concept

US Gulf of Mexico

Dry dock:

(Standby at no cost in Bergen)

Expected vessel schedule as of 7 February 2013.

Brunei

Brazil

Basalt

WoS/NCS Barents Sea multi-client / contract

Brazil

Asia

Brazil

Malaysia Myanmar Malaysia

IMPROVING VISIBILITY

0

20

40

60

80

100

120

Building backlog is job number 1

• As expected, backlog has diminished in

2012 due to completion of large contracts

• Awarded 6-month contract and string of

small contracts in Asia

Pursuing long-term contracts

• Expect at least one long-term NOC

contract for 2H13

• Targeting additional NOCs for major

projects in 2H13 and 2014

Partnering with seismic providers

• Increased interest from several companies

• Joint multi-client projects for 2013

Order book (USD Million)

21

54

2013 GUIDANCE

• Revenues of USD 210-230 million

• EBITDA margin of 25-30%

• Backlog at a minimum of USD 100 million

by end 1H13

Assumptions:

• ~ 3.7 vessel years (44 vessel months) with

a utilisation rate of ~ 80%

• vessels allocated 20-25% to multi-client

programs

• multi-client revenues of USD 40-60 million

• average multi-client pre-funding level of at

least 100%

• contract pricing and capex in line with

2012 levels

• Soft Q1 2013

SUMMARY

Current status

• Robust E&P environment

• 4 vessels operating

Growth potential

• Increased customer adoption

• New technology

– Deeper penetration

– Increased resolution

– Continental shelf applications

• New applications

– Regional exploration

– Portfolio scale de-risking

– Development applications

– Structural imaging

Regional

exploration Pre-drilling

risk

reduction

Development

and Production Structural

imaging

(salt/basalt etc.)

2015

2012

Revenue scenario by application/market segment

Q & A