In 2004, the Norwegian state oil company Statoil was seeking buyers for a subsidiary called ElectroMagnetic Surveys (EMS) that had developed a proprietary technology for detecting offshore oil and gas reserves. Although promising, EMS was in the early stages of commercializing its technology. Statoil had prepared an information memo, which was neither a thorough analytical document nor unbiased, for potential buyers. In this case students examine the information memo and material from a later due diligence study to evaluate the potential of the investment.

Case id: 090307