NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN
Oslo, 22 June, 2010: Electromagnetic Geoservices ASA ("EMGS" or the "Company" - OSE: EMGS)
Reference is made to the stock exchange release dated 21 June 2010 regarding a contemplated private placement of new shares in the Company ("Private Placement").
The book-building period for the Private Placement has closed, and the Company is pleased to announce a successful placement whereby the Company has received orders for and resolved to allocate 28,000,000 new shares. The subscription price in the Private Placement is NOK 7.00 per share and was set by the Board of EMGS following a book-building process. Gross proceeds amount to NOK 196 million (approximately USD 30 million).
The proceeds from the Private Placement will increase the financial strength of the Company and thereby support its growth plans and will be used for general corporate purposes, including working capital in relation to the letter of award announced on 19 June 2010.
Notices of allocation will be sent today, 22 June 2010.
The Private Placement was managed by ABG Sundal Collier Norge ASA and First Securities AS.
The Board has decided, subject to necessary corporate resolutions and prevailing market conditions, to conduct a subsequent offering of up to a maximum of 5,000,000 shares at NOK 7.00 per share. It is expected that a subsequent offering, if executed, will be carried out by utilizing the existing Board authorization to issue new shares, as granted by the Annual General Meeting held 2 June 2010. If executed, a subsequent offering is expected to be carried out as soon as a prospectus has been approved by Finanstilsynet.
In any subsequent offering, preferred allocation will be given to shareholders of the Company as at 21 June 2010 (as recorded in VPS on 24 June 2010 and visible in the VPS on 25 June 2010) who were not contacted by the Managers to participate in the Private Placement or who did not participate or leave an order in the Private Placement, but excluding Warburg Pincus funds who hold shares in the Company. Allocation of any remaining shares in a subsequent offering will be at the discretion of the Board of EMGS.
Existing shares in EMGS will with effect from today, 22 June 2010, trade without the right to participate in the contemplated subsequent repair offering.
Contact
Roar Bekker, EMGS chief executive officer, +47 22 01 14 00
Svein Knudsen, EMGS chief financial officer, +47 22 01 14 00
About EMGS
EMGS uses its proprietary electromagnetic (EM) technology to support oil and gas companies in their search for offshore hydrocarbons. The company is the EM market leader, and provides Clearplay, the world's first fully integrated EM system.
Three service offerings - Clearplay Find, Test and Evaluate - have been designed to assist operators in the exploration and production phase. Clearplay supports each stage in the workflow, from survey design and data acquisition to processing and interpretation. The services enable integration of EM data with seismic and other geophysical and geological information to give explorationists a clearer and more complete understanding of the subsurface. This improves exploration efficiency, and reduces risks and the finding costs per barrel.
EMGS operates the world's first purpose-built 3D EM vessel fleet and has conducted more than 450 surveys to improve drilling success rates across the world's mature and frontier offshore basins. The company operates on a worldwide basis with main offices in Trondheim and Stavanger, Norway; Houston, USA; and Kuala Lumpur, Malaysia. Please visit www.emgs.com for more information.
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