Electromagnetic Geoservices (EMGS) has received a multi-year call-off acquisition contract from a repeat but undisclosed client.
The contract has a minimum value of approximately USD 29.3 million, and a maximum value of approximately USD 73.3 million, over a two- year period.
Based on current acquisition estimates, EMGS 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 approximately three weeks.
EMGS said it plans to mobilise the Atlantic Guardian for the project.
CEO of EMGS, Bjørn Petter Lindhom, said: “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.”