April 2, 2007. British Virgin Islands/Dubai: SeaBird Exploration Limited (BVI) (`SeaBird`)
SeaBird experience delays on some of the conversion projects. Through the conversion work on the Harrier Explorer, asbestos has been found on board the vessel, despite the fact that that she has an `Asbestos Free Certificate`. This may delay the completion of the vessel until late July 2007. It is expected that this will increase the estimated cost of the conversion, but the exact consequences is still to be investigated. The Hugin Explorer is
suffering delays on engineering and some long lead items, pushing the delivery into the 4th quarter of 2007. It is estimated that SeaBirds` investments in SeaBed nodes and the vessel will be in the range of USD 45-50 million. It is now decided that the Raven Explorer will be equipped with 4 streamers and completion is scheduled for 4th quarter 2007.
The additional streamers will bring the cost of the vessel up to USD 45-50 million. The Aquila Explorer is expected to leave the yard in early May 2007, while the Munin Explorer is expected to commence operation early in the third quarter of 2007.
Consequently, expectations for 2007 are somewhat lower than indicated in the Q4 earnings release. Revenues for 2007 are expected to be in excess of USD 150 million for the year and EBITDA in excess of USD 80 million.
SeaBird has chosen to shoot its first multi client in March with the Geo Mariner offshore the Seychelles. The background for this project is the prospectivity of the area and an additional opportunistic equity stake in a part of the survey area. However, revenues and profitability for Q1 are reduced..Furthermore, Northern Explorer has entered a planned dry-dock in March., further reducing Q1 revenues.
As a result of the above, SeaBird does not expect sequential growth in revenues for Q1 2007.
For further queries contact:
CEO SeaBird Exploration Limited
CFO SeaBird Exploration Limited
Phone +47 916 39 367
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).. 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 f 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.