February 19, 2007. British Virgin Islands/Dubai: Silver Queen Maritime Limited, a fully owned subsidiary of SeaBird Exploration Limited (BVI) ('SeaBird'or 'SBX') is acquitted in the principal action raised by Global Geo Services ASA ("GGS") in the court of arbitration in Oslo, Norway. The ruling cannot be appealed.
As previously disclosed, GGS presented substantial claims in the arbitration proceedings against SeaBird. The main claim in the principal action was unlawful withdrawal of the lease of M/V Geo Mariner in 2005, amongst other things including (a) a claim for compensation in the amount of USD 4.3 million and (b) the right to a 50% ownership of the vessel and 50% of the future earnings of the vessel upon expiration of the charter agreement.
Based on legal advice, SeaBird has been comfortable throughout that this claim was unlikely to be successful. However, it is a relief to get this confirmed by the court of arbitration. GGS is also required to compensate SeaBird all legal costs related to the principal action.
The arbitration proceedings included a number of other claims and cross-claims, with various results. In total, SeaBird will charge a loss of around USD 5 million in the Q4 financial statements, related to GGS, including the loss on investment in GGS shares, write off of receivables refused in arbitration result and other GGS related items. All substantial parts of this loss are non-cash.
Dag Reynolds, Chief Executive Officer of SeaBird commented:
"Our involvement with GGS has certainly not been a pleasant experience and has taken a lot of management resources. However, we are happy to see that the court of arbitration supported our view in the principal action and removed the question of the ownership to M/V Geo Mariner erroneously raised by GGS."
For further queries contact:
CEO SeaBird Exploration Limited
Phone: +47 90883737
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SeaBird Exploration Limited (BVI) `SeaBird` is a global provider of marine 2D and 3D seismic data, solutions for seabed acquisition of 4C/4D multimode seismic, 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.
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.