Electromagnetic Geoservices : EMGS Annual Report 2021

EMGS ANNUAL REPORT 2021.

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EMGS technology

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Board of Directors

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Board of Directors' Report

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Responsibility Statement

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Report on Corporate Governance

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Report on Sustainability and CSR

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Determination of Salary Statement

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Financial Statements EMGS Group

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Financial Statements EMGS ASA

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Auditor's Report for 2021

EMGS technology.

The electromagnetic (EM) technology used by EMGS in its survey projects can be divided into two distinct methods: controlled-source electromagnetic (CSEM) surveying and magnetotelluric (MT) surveying. EMGS continues to develop and improve its acquisition hardware, processing software and its interpretation workflows. These innovations further enhance the value of EMGS technology to our clients.

CSEM (Controlled-Source Electromagnetic)

When performing a CSEM survey, a powerful horizontal electric dipole source is towed above the seafloor while a series of receivers are placed on the seabed.

The dipole source transmits a low-frequency electromagnetic signal into the subsurface underneath the seafloor. The resistivity of the formations under the seafloor defines the way in which the electromagnetic energy transmitted by the dipole propagates through the subsurface. High resistivity is an indicator of a possible hydrocarbon-filled reservoir.

Multi-component receivers that have been placed on the seabed for the survey measure the electromagnetic energy that has propagated through the subsurface and the sea. The information from these receivers is processed and inverted to produce a 3D resistivity image of the survey area. EMGS typically deploys grids of receivers in order to acquire full-azimuth surveys. This type of survey provides optimal imaging of the subsurface.

CSEM data is a valuable supplement to information on structure and deposition of sediments provided by seismic.

By combining both datasets (CSEM and seismic), and any other complementary subsurface information that is available, the accuracy and efficiency of oil & gas exploration can be improved,

In addition, CSEM data can provide information of the shallow subsurface resistivity which is important in marine mineral exploration, and could also prove to be valuable in offshore wind turbine and cable placement and a range of other geotechnical applications. ,

EMGS has developed a workflow that allows companies to easily integrate CSEM information with seismic data and embed the integrated interpretation into their prospect evaluation work. This workflow, the EMGS' Exploration Solution, includes a wide range of analysis including; resistivity attribute analysis (similar to working with seismic attributes), anomaly identification and delineation, anomaly significance tests, sensitivity assessment for depth intervals of interest, correlation of anomalies to seismic observations such as conformance to structure, seismic DHI and seismic indicators of lithological resistors. The resulting integrated interpretation is used to establish the likelihood of a prospect being hydrocarbon charged and the size/area of a possible hydrocarbon accumulation. Extensions to the workflow are available that address subsurface questions specific to field appraisal, such as estimating pay distribution and interpreting the hydrocarbon-water contact, both of which can further refine a company's assessment of the prospect(s) and therefore improve the understanding of the prospectivity of the survey area prior to taking further steps in the exploration process.

The EMGS' Exploration Solution workflow transforms CSEM data into information for improved exploration decision-making

MT (Magnetotelluric)

Similar to CSEM surveying, the MT technique generates insight into the subsurface by imaging subsurface resistivity.

Marine MT surveys map subsurface resistivity variations by measuring naturally occurring electromagnetic signals on the seabed. These signals are generated by the interactions of solar wind with the Earth's magnetic field, which, when strong,

are known as geomagnetic storms. The MT signals are of very low frequency, which offers excellent depth penetration. The unique design and sensitivity of the EMGS seabed receivers enable EMGS to efficiently acquire high quality MT data as part of a CSEM survey when the controlled-source is inactive.

The low-frequency, deep-sensing nature of MT surveying makes the technique valuable for imaging and interpreting regional geology. MT surveys have been found most useful in salt and basalt settings where the flanks and/or the base are poorly defined. MT measurements, therefore, form a useful complement to seismic techniques, particularly in settings where high-impedance volcanic rocks or salt make the imaging and interpretation of seismic challenging.

Application of EM technology

The services offered by EMGS are used in all stages of the offshore exploration and development cycle. Applications of

EMGS' technology include evaluating regional prospectivity, ranking of identified prospects and appraisal of discoveries.

Figure 1: CSEM acquisition equipment

EM source towedabove seabed

EM receivers dropped on the seabed in a grid

Integrated interpretation

of seismic and EM

improves exploration

performance by reducing

uncertainties

Regional Prospectivity

At the early stages of the exploration and production process, oil and gas companies use EM services to evaluate whether an offshore acreage is viable for commercial production of hydrocarbons. EM surveys are conducted before licensing decisions are made in order to better understand the acreage value, as well as prioritization of potential leads and prospects that may have been mapped with seismic. EM may also be used to de-risk new and unproven plays and generate new leads and prospects. Adopting EM early in the exploration cycle helps oil and gas companies focus their investments on the most valuable acreage.

Prospect Ranking and Portfolio Polarisation

When a prospect is identified from seismic information, EM surveys can help operators reduce uncertainties in the probability of success and expected hydrocarbon volume, resulting in a more reliable economic evaluation of the prospect. Using EM to rank prospects reduces the risk of drilling dry wells, while increasing the economic success of exploration projects. Used on a portfolio of existing prospects EM can polarise the prospect portfolio and highlight the prospects with the largest volume potential and the highest chance of success. Through better targeting of exploration drilling activity, the use of EM surveys can also help to diminish the overall environmental impact of an exploration project.

Field Appraisal

Once a discovery is made, EM surveys can be used to ascertain a field's commercial viability and aid in development planning by improving reservoir delineation (i.e. the size and shape of the reservoir). EM can also assist in the optimal placement of subsequent development wells and reduce the number of appraisal wells that would typically be required for field delineation and reservoir characterisation, can result in a positive impact on a project's financial outcome and reducing its environmental footprint.