Electromagnetic GeoServices ASA, a Norwegian oil and gas surveyor, ended a one-week run of losses in Oslo after a bigger-than-expected data-licensing agreement alleviated investor concerns about a lack of orders this year.
EMGS, based in Trondheim, gained as much as 4.4 percent, the most in more than a week, and traded 3.6 percent higher at 8.445 kroner as of 11:37 a.m. That makes it the biggest gainer on the Oslo stock exchange’s OBX index of 25 most-traded stocks.
The company signed a data-licensing deal valued at $6.4 million for the provision of data from its multi-client library in the Norwegian Sea, it said in a statement today. That takes the level of sales from its basalt mapping program in the West of Shetland area to about $15 million, it said.
The deal is worth $2 million more than expected, Pareto Securities ASA said in a note. EMGS now needs to get a contract for its Leader vessel, which is scheduled to finish its current contract in May, the broker said.
EMGS, which uses electromagnetic technology to search for oil and gas under the seabed, have dropped more than 50 percent in the last 12 months amid investor concerns that the company lacked enough contracts for next year.
“We estimate that the company currently has about $33 million in backlog for the second quarter with our sales estimate at $52 million,” said Pareto, which has a hold recommendation and 9.50-krone price target on the stock.
The Norwegian company’s method of mapping the seabed competes with the seismic technology employed by companies such as Schlumberger Ltd. and Petroleum Geo-Services ASA.