Cyprus, 27 January 2011:
SeaBird Exploration PLC ('SeaBird" or "SBX"), the market leader in deepwater node seismic, is pleased to announce an agreement for a strategic cooperation to further develop Ocean Bottom Node ("OBN") operations together with Petroleum Geo-Services ASA (PGS).
This agreement enables the two companies to provide a complete seismic solution in deep water areas, in areas with complex geology, and in areas with heavy infrastructure on the sea bottom. We expect this agreement to further strengthen each of the two companies leading positions in the reservoir monitoring market, which has been, and is expected to represent the fastest growing segment of the seismic market.
The use of OBN for 3D, 4C and 4D seismic to map complex reservoirs, will be particularly attractive combined with PGS' broadband GeoStreamer® technology, and opens up for extending the application of the SeaBird OBN technology.
Under the terms of the agreement, PGS will gain exclusive rights to offer SeaBird's autonomous seabed recording technology at market terms in Brazil in solutions combining OBN and streamers. SeaBird will gain access to PGS' extensive worldwide marketing network and geophysical expertise and the parties have expressed intentions to explore further areas of cooperation, such as data processing and use of GeoStreamer® on SeaBird's 2D vessels.
In relation to the agreement, SeaBird will issue a five year convertible loan of NOK 240 million directed towards PGS. The loan will have an annual interest of 9 % that can be paid in cash or in kind. The Loan can at any time be converted into ordinary shares at a conversion price of 3.35 NOK per share until the maturity date.
The cooperation agreement and the convertible loan are subject to approval by the shareholders in SeaBird. An extraordinary general meeting will be held as soon as possible, expected mid February 2011.
Tim Isden, SeaBird's chief executive officer, commented:
"We are delighted to team up with PGS' extensive marine geophysical expertise and global presence. The combination of SeaBird's industry-leading OBN technology and PGS' strong position in the seismic market will further strengthen the development of our OBN division, and will give SeaBird a better foundation for expanding this business segment and increase efficiency to our clients. Also, we expect that the cooperation with PGS will enhance the utilization of our 2D and Source vessels when opportunities arise."
For further queries, please contact:
CEO SeaBird Exploration
Phone: +971 504 539075
CFO SeaBird Exploration
Phone: +47 920 51 455
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SeaBird Exploration PLC "SeaBird" is a global provider of marine solutions for seabed acquisition of 3D/4C/4D multimode seismic data with OBN operations, marine 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). Main success criteria for the company are an unrelenting focus on Health, Safety, Security, Environment and Quality (HSSEQ), 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.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act).