Cyprus, 6 February 2012.
Vessel utilization for SeaBird Exploration PLC ("SBX" or the "Company"), defined in line with SBX' previous practice as the percentage of the full quarter where the vessel is in paid work in any form, was in Q4 2011 60%, excluding the OBN operation divested in Q4 2011.
The achieved utilization rate is lower than expected. There are several reasons for the reduced utilization, among the primary reasons are delayed startup dates on firm contracts and contracts materializing to a lesser degree than forecasted.
Due to the vessel utilization rate and multiclient sales being lower than expected, the Company expects EBITDA in Q4 2011 to be in the region of USD 0 to 2 million, which is lower than previously expected.
The expected Q4 results will have an adverse impact on the Company's working capital going into Q1 2012, and the Company's liquidity is expected to become strained in the first half of 2012. Furthermore, the transaction costs from the restructuring in Q4 2011 exceeded the Company's forecasts.
The Board of Directors believes the Company will be able to continue its operations as usual, but have initiated processes to address the situation. Such processes will include potential sale of multiclient data, the completion of which will realize values and have an immediate positive effect on the liquidity situation. Further, the Company will seek easements in financial creditor terms, reduce capital expenditure and implement operational cost reductions.
Further updates will be given in the Q4 presentation and announcement on 29 February 2012.
SeaBird is a global provider of 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.