Magseis ASA Q1 2016

25 May 2016

• Positive market view - we expect a pipeline of 2017/2018 tenders with substantial scope

• New equity and debt financing in place totalling USD 16M

• Preparations for Crew #2 underway - growth strategy to be pursued on back of sufficient backlog visibility

Highlights first quarter 2016

2

• Further improved performance on high-spec Malaysian survey• Introduction of a number technical advances, including a record number of G2 nodes in operation• First two-vessel operation conducted – enabling rolling spread

• Awarded largest ever contract by BGP Arabia for OBS acquisition for Saudi Aramco in the Red Sea

• Strong order backlog USD 62M as of end Q1 2016 >USD 130M incl. extension

• Red Sea contract following the Malaysian survey in July this year, we are now well positioned as a leading international provider of OBS

• Aiming to drive industry development as cost-reduction allows for expansion of OBS application

Operational and technical milestones achieved

Improved performance expected with Aramco

contract

Industry leading position in Ocean Bottom Seismic

Positioned for growth when visibility improves further

KEY FIGURES Q1 2016

Source: Magseis

18.1REVENUE

1.6EBITDA

-3.9NET INCOME

15.2CASH BALANCE

$ MILLION

$ MILLION $ MILLION

$ MILLION $ MILLION

18.1

5.5

( -4.2 )

1.6

REVENUE

Q1 2015

REVENUE

Q42015

EBITDA

Q42015

EBITDA

Q12016

3

This is Magseis

OCEAN BOTTOM SEISMIC (OBS) PRODUCT DEVELOPMENT& MANUFACTURING

OSLO - BERGEN - STOCKHOLM SINGAPORE - BRAZIL

• Industry leading ocean bottom seismic company

• Start of operations Oct 2013

• One vessel in operations

• 77 employees

• Listed on Oslo Axess

Ticker

Shares outstanding

Market cap (NOKm)

Equity Ratio – Q1 16

MSEIS

29.818,014

403

65.7%

4

Seismic acquisition

ONE core proprietary technology -> Multiple applications

Miniaturised node sensors Handling system

Cable deployment

ROV deployment

5

Marine Autonomous Seismic System (MASS)

6

Now established as a leading OBS provider

7Source: Magseis operating close to FPSO at Captain Field

Qualified (2013):

7

• Technology well established (G2 in production)

• Have completed >580 sq.km. of high-endOBS acquisition

• More than 80 000 4-component sensor capsulesdeployed

• Building reputation for very high-quality data

• Established as the lowest-cost supplier in the industry

Qualified (2015):

Ongoing (2016):

Petronas - Bokor

Operational challenges

• Complex survey design

• Lots of infrastructure and high field activity

• First survey in SE Asia and pleased client

• First two-vessel operation with a ‘rolling’ spread

• Our next generation G2 node electronics was introduced

• A record number of sensors were deployed

Well positioned for the mobilisation of the Red Sea survey for Saudi Aramco

The Bokor field is a structurally complex field with gas clouds and strong lateral velocity changes

8

Red Sea – S-78 Survey area

9

• Magseis technology allowing uniform node technology (MASS G2 nodes) to be deployed across the whole survey area, covering all water depths

• Awarded to Magseis by BGP due to our proven ability to operate in the area

• Joint operation plan together with BGP• Magseis to deploy nodes in deep water• BGP will deploy MASS nodes in the shallow regions• BGP will conduct all the shooting

First quarter 2016 results - Comprehensive income

10

• Revenue• USD 16.3M from Petronas survey,

USD 1.8M from Multi-client (Barents sea)

• Cost of sales• Two vessel operation• Increase in area cost

• Research and development• Capitalised all expenses related to the

Deep water R&D project USD 352K

• Depreciation • More equipment in use as of Q1 2016

• Amortisation• USD 877K to multi-client (Barents Sea),

USD 113K to intangible assets

• Tax• USD 833K relates to withholding tax Malaysia

for Q1 2016 cost settlement

All figures in USD thousands Q1 2016

Q1 2015

Full Year 2015

First quarter 2016 results- Balance sheet at 31 March

11

• Equipment and intangibles • Increase seismic equipment of USD 2.9M

• Trade receivables• Petronas USD 7.3M• BGP USD 0.5M• Dialogue USD 0.2M

• Other current assets• Prepayments USD 1.9M• Stock USD 1.3M

• Equity • Equity rate of 65.7%

• Non-current liabilities• Increase of BGP funding USD 4.0M• Shell agreement increase of USD 1.0M

• Current liabilities• Vessel operations USD 4.7M• Employees USD 1.0M

All figures in USD thousands 2016 2015

First quarter 2016 results - Cash flow

12

• Cash from investments• Relates to increased inventory of nodes (USD 2.0M) • Capitalised expenses related to other intangibles including

the Deep Water R&D project (USD 0.3M)

• Cash flow from financing • Increase of BGP funding USD 4.0M • Shell Cooperation agreement increase USD 1.0M

All figures in USD thousands Q1 2016 Q1 2015

Source: Magseis

250

500

1000

2000

3000

0

Water Depth in metres

Competingcable systems

CompetingROV systems

MASScable

+ROV

deployment

• Magseis covers the entire water depth range with MASS technology

• Joint development project with Shell provides step change in efficiency for deepwater 4D work

• Several projects in pipeline where Magseis’ deep-water capabilities will be a uniqueadvantage

COST-EFFICIENT ACQUISITION from 0-3000m

MAGSEIS

13

Current backlog• Awarded Saudi Aramco’s S-78 together with BGP

– 9 months duration– 12 months extension option

• Several large tenders in the pipeline for 2017/2018 start

• Significant industry interest for OBS and MASS technology

Source: Magseis

Firm

Lead

Yard/transit

11

Summary and outlook

15

• Strong backlog visibility 12 – 24 months

• Significantly improved financial position for 2016-2017

• Positive market view for 2017/2018

• Well prepared for the Red Sea survey

• Key conditions for growth in place

At the forefront of seabed seismic technology

Magseis ASA

Q & A