Shares in Norway's Electromagnetic Geoservices ASA (EMGS.OS), or EMGS, more than doubled in price Monday, following a weekend announcement that it had been awarded a $150 million contract from an un-named oil firm.

At 1130 GMT shares had leaped to NOK8, from Friday's closing price of NOK3.55.

The company uses electromagnetic technology to search for hydrocarbons, providing the oil and gas industry with surveys that pin-point the locations of reservoirs beneath the sea bed.

The contract, worth the equivalent of 950.6 million Norwegian Kroner, is more than double the company's market capitalization of NOK445.8 million at Friday's close, and Christopher Mollerlokken at Arctic Securities notes "for the first time ever we recommend investors to buy EMGS."

"After being bullish a long time, EMGS is finally showing us the proof of the pudding," he said.

The contract is 30 times the size of a typical EM contract, and while the size and length of Saturday's contract should not be expected to be repeated in the short-to-medium-term, he expects Saudi Aramco to soon start tendering for a survey off Saudi Arabia, with EMGS and WesternGeco as likely front-runners, Mollerlokken said.

EMGS expects the contract to generate 2010 revenues of $20 million to $25 million, with the remaining contract value recognized in 2011 and 2012.

The contract will be formally finalized in around two weeks, with the vessel mobilizing at the end of August.

Company Web site: http://www.emgs.com

-By Dominic Chopping, Dow Jones Newswires; +46-8-5451-3093; dominic.chopping@dowjones.com
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