Successful completion of Private Placement

Pressemelding   •   des 02, 2009 17:37 CET


Oslo, 2 December 2009: Electromagnetic Geoservices ASA ("EMGS" or the
"Company" - OSE:EMGS),

Reference is made to the stock exchange release dated 1 December 2009
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 30,000,000
new shares. The subscription price in the Private Placement is NOK
4.50 per share and was set by the Board of EMGS following a
book-building process. Gross proceeds amount to NOK 135 million
approximately USD 24 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.

Notices of allocation will be sent today, 2 December 2009.

The Private Placement was managed by First Securities AS.

The Board will consider to propose, subject to necessary corporate
resolutions and prevailing market conditions, a subsequent offering
of up to a maximum of 4,000,000 shares. 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 3 June 2009. Consequently, the Board
will not call for an extraordinary general meeting to be held on or
about 23 December 2009. If executed, a subsequent offering is
expected to be carried out as soon as a prospectus has been approved
by the Oslo Børs, possible late December 2009 / early January 2010.

In any subsequent offering, preferred allocation will be given to
shareholders of the Company that as at 1 December 2009 (as recorded
in VPS on 4 December 2009 and visible in the VPS on 7 December 2009)
held less than or equal to 175,000 shares in the Company or were not
contacted by the Manager to participate in the Offering or who did
not participate or leave an order in the Private Placement.
Allocation of any remaining shares in a subsequent offering will be
at the discretion of the Board of EMGS.

Existing shares in EMGS will trade exclusive of the right to
participate in the contemplated subsequent repair offering from
today, 2 December 2009.

Roar Bekker, EMGS chief executive officer, +47 73 56 88 10
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.

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.