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5 May, 2006. -SeaBird Exploration Limited (SBX or SeaBird) announced today that it has reached an agreement to acquire SeaBed Geophysical AS. For a price of NOK 68.000.000,- (SixtyEightMillion) plus a warrant of 2% of SBX' market capitalization above the IPO price of NOK 20 per share. The transaction is subject to a final due diligence and is expected to be completed before 1 June 2006.
SeaBed Geophysical AS "SeaBed" is a geophysical company that specializes in seabed seismic. Main concept is to deploy geophone sensor nodes into the seabed and acquire high quality multi-component data. SeaBed can provide all aspects of seabed seismic; feasibility studies and pre-survey planning, data acquisition, on site QC, minor data processing and interpretation.
The objective of SeaBed is to provide services to the oil industry in order to reduce the economic risks in the exploration phase and reduce uncertainties related to reservoir description, fluid-flow and reservoir management. With the industry's strong demands for a reduction in field development and operating costs, improved technology and techniques are absolutely necessary. The concept of acquiring high quality pressure and shear wave data on the seabed will have a great impact by reducing costs and giving higher production on existing and new fields.
SeaBed's strategy is to develop innovative and cost efficient solutions which can meet each client's specific needs and requirements. The flexibility available in the use of this highly target oriented data acquisition method make it well suited for application in exploration prospecting, reservoir description and reservoir monitoring. Solutions for the seabed acquisition of 2D, 3D and 4D multimode pressure and shear wave data have been developed by the company.
SeaBed Founder and inventor Mr. Eivind Berg says: "We are happy to get an owner that supplements us on QHSE, Operational experience and Business development. It is positive to have an owner that has ambition and industry understanding as well as access to vessel capacity in a very tight market".
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SeaBird Exploration Limited (BVI) "SeaBird" is a global provider of 2D and 3D seismic data and associated products and services to the oil and gas industry. SeaBird specializes in high quality operations within the high end of the source vessel and 2D market, as well as in the shallow water 2D/3D market. Main focus for the company is proprietary seismic surveys (contract seismic). SeaBird does not have a multi-client data library. Main success criteria for the company are an unrelenting focus on Quality, Health, Safety and Environment (QHSE), combined with efficient collection of high quality seismic data. SeaBird operates a seismic fleet of 4 vessels with two additional vessels under conversion with expected completion during the first half of 2006.
Chairman of SBX Mr. Tim Isden says: "We are very happy to have come to an agreement for the purchase of SeaBed. We have been keeping an eye on the company for years and felt that the time to do something was right. SBX shot the successful SeaBed survey on the Cantarell field for Pemex in 2004, so we know them very well. We are excited to get into the Ocean Bottom Seismic (OBS) market, and are confident that this will grow into a profitable addition to our range of services."
All statements in this press release other than statements of historical fact are forward-looking statements and are subject to a number of risks, uncertainties and assumptions that are difficult to predict, and are based upon assumptions as to future events that may
not prove accurate. These factors include SeaBird's reliance on a cyclical industry and the utilization of the company's vessels. Actual results may differ substantially from those expected or projected in the forward-looking statements.
For further queries contact
Dag Reynolds
CEO SeaBird Exploration Limited