April 4, 2008. British Virgin Islands/Dubai: SeaBird Exploration Limited (BVI) ('SeaBird" or "SBX") announced today the vessel utilization for the first quarter of 2008. For this purpose vessel utilization is defined as the percentage of the full quarter where the vessel is in paid work either in the form of acquisition, mobilization, demobilization, steaming, standby or other.
All eight vessels were in operation in the quarter with an average vessel utilization of around 92% for the full quarter. Four of the vessels (Aquila Explorer, Harrier Explorer, Kondor Explorer and Hawk Explorer) were on time charter contracts for the whole quarter and three of them had close to 100% utilization and chargeable time, while the Hawk Explorer had vessel utilization slightly below 90%. Hawk Explorer will be out of production for approximately one week in Q2 2008 to make certain improvements to seismic equipment with the aim of bringing the vessel performance back to our targets.
Munin Explorer had a vessel utilization of around 69%. The Munin Explorer has been working for ONGC on the west-coast of India the whole quarter. The first part of the survey has been challenging in a congested area with significant fishery, hence acquisition rate has been below target for the initial phase of the survey. Furthermore, as a consequence of damages to seismic equipment from fishing gear, the vessel was out of production for around 21 days waiting for replacement and repair of damaged equipment. Munin Explorer is now acquiring in deeper water, where acquisition rates have been significantly better.
Osprey Explorer and Northern Explorer had vessel utilization well above 95% while the Geo Mariner had vessel utilization slightly below 90% caused by some technical downtime during the quarter. These three vessels have all mobilized to projects in India in the last half of the quarter. The revenues for these vessels for the quarter is negatively affected by the long mobilization period to get all necessary clearances in India, but are now all acquiring and have commenced satisfactorily on their respective survey areas.
The Hugin Explorer is still under conversion to a state of the art node vessel for the SeaBed operations and is expected to commence operations in Q2 2008.
On the basis of the utilization of the fleet for the first quarter 2008, we expect to recognize revenues in the range of USD 37-39 million for the quarter.
For further queries contact:
Chairman and CEO SeaBird Exploration
Phone: +971 504 539075
CFO SeaBird Exploration
Phone: +47 916 39367
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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). 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.