Cyprus, 19 May 2011
SeaBird Exploration PLC ('SeaBird" or "SBX"), the market leader in deepwater node seismic and high end 2D acquisition, is pleased to announce the signing of a Frame Agreement with Spectrum ASA ("SPU") for the acquisition of 2D seismic data to a minimum value of USD 23 million over a period of 36 months, and a Re-Let Agreement for the "MV GGS Atlantic" on a bareboat charter basis until August 2012. The effective date of these agreements is 20 May 2011.
Under the terms of the Frame Agreement, Spectrum will purchase vessel capacity from SBX under specific Call-off Orders for worldwide acquisition surveys. Spectrum is required to prioritize "GGS Atlantic" where geographic and technical parameters allow. Spectrum is also required to commit to 50% of the acquisition value of USD 23 million within the first 12 months of the Frame Agreement.
SBX, subject to vessel availability, commits to deliver 2D seismic acquisition services to SPU to a minimum value of USD 23 million at agreed rates over the period of 36 months. SBX has an option to extend by 6 months should vessel availability not allow completion, on same terms and conditions.
The Frame Agreement is non-exclusive beyond the above conditions and provides SBX with confirmed backlog across the 2D fleet.
Tim Isden, SeaBird's chief executive officer, commented:
"We are very pleased to have signed these agreements with Spectrum for the mutual benefit of both companies. Spectrum is an aggressive MC company with good sales record and with a comprehensive library covering many geographic areas. SeaBird's fleet of 2D vessels are well positioned around the World to efficiently cover SPU's requirement for 2D services. For the GGS Atlantic, it makes sense for SBX to absorb this vessel into our current operational structure with only marginal risk, whilst SPU can concentrate on multi client projects and data processing. We see this as a good strategic move for both companies with a continuing involvement over the long term."
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 pursuant to section 5-12 of the Norwegian Securities Trading Act.