emgs Executes Option for Chartering Second Newbuild

emgs has executed an option and signed a contract for chartering a second custom-built vessel to carry out the company's proprietary Seabed Logging operations for oil and gas exploration companies worldwide. The charter is for five years plus options.

The vessel--the sixth to join the emgs fleet--has been ordered from the Norwegian Taubatkompaniet/BOA group and will be built at the Fosen Mekaniske Verksteder (FMV) shipyard, north of Trondheim, for delivery late 2008.

emgs is the leading global offshore technology company for the provision of Seabed Logging (SBL), which is a technology used to detect hydrocarbons beneath the seabed through the use of electromagnetic energy prior to drilling.

"This is an important milestone for emgs," said CEO Terje Eidesmo. "By adding new capacity emgs strengthens its position as the leading company in the SBL business even further."

emgs has plans to expand its capacity further, as a larger fleet will enable emgs to boost overall fleet utilization.

"emgs expects to have seven vessels fully operational from year end 2008 positioning emgs to be by far the largest company in this area. In addition to fleet capacity emgs also has control over a combination of in-house, proprietary and off-the-shelf equipment constituting a very sound platform for growth going forward," said Eidesmo.

In 2006, emgs' revenues increased by 167 percent to US$117.7 million, compared with US$44.0 million in 2005. For 2006, the EBITDA was US$20.7 million, an increase of US$29.7 million from 2005.

Company: Electromagnetic Geoservices ASA (emgs) more info
 - EMGS Secures Contract Extension With Malaysian Oil Company (Nov 17)
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 - EMGS Confirms Staff Cuts (Apr 14)
Company: Taubatkompaniet/BOA more info
 - Aker Solutions Nabs Additional 30% Share in Subsea Service Company (Aug 22)
 - emgs Executes Option for Chartering Second Newbuild (Mar 14)
Company: Fosen Mekaniske Verksteder (FMV) more info
 - emgs Executes Option for Chartering Second Newbuild (Mar 14)
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