SeaBird Exploration: contract and vessel schedule update

30 July 2019, Limassol, Cyprus

Reference is made to the press releases of 1 April 2019 regarding a niche 3D survey in West Africa and 7 January 2019 regarding a 2D survey in the Americas. The 3D survey was initially expected to be completed early in Q3 2019 utilizing the Nordic Explorer (chartered-in project vessel) and is now estimated to be completed in the latter part of Q3. The 2D survey was expected to be completed in the first half of Q3 2019 utilizing the Harrier Explorer and is now estimated to be completed in the second half of the same quarter. These production delays and survey extensions are due to difficulties with availability and lead-time of select seismic streamer equipment parts and will result in increased operating expenses, which will negatively affect earnings in both Q2 and Q3 2019.

The Nordic Explorer or the Harrier Explorer will after completion of the current surveys commence on the previously announced contract with Wintershall Dea for 2D acquisition in the Norwegian Sea. The survey has an expected duration of approximately two months, including mobilization.

The 2009 built Eagle Explorer recently finished a source contract for CGG in the Gulf of Mexico and has recently started another survey for CGG West of Shetland. This survey is scheduled for completion in September.

The Voyager Explorer is currently warm-stacked in Southeast Asia. There are several contract leads for the vessel, predominantly for 2D exploration. However, the clients’ decision processes for exploration-related surveys in Asia appear to be generally delayed.

The Osprey Explorer finished in late June a source contract in the US Gulf of Mexico for an OBN project.  The vessel is currently transiting to North West Europe for a source contract with expected duration of approximately two months, including mobilization.

The BOA Thalassa was delivered to SeaBird on 13 June 2019. Concurrently with the delivery under the purchase agreement with BOA SBL, SeaBird also stepped into the charter party with EMGS.  The charter party has a remaining firm period of about nine months and EMGS has two further six months extension options.  EMGS is currently employing the Thalassa on an EM-project in South East Asia.

The BOA Galatea, also built in 2009, was delivered to SeaBird on 25 July 2019. Preparations for outfitting/rigging the Galatea as a seismic source vessel are ongoing and the vessel is expected to enter the market in early 2020 as the “Fulmar Explorer”.

In light of the recent fleet renewal related acquisitions and the outfitting/rigging of BOA Galatea, the company has decided to decommission the Aquila Explorer. As a part of this decommissioning, select seismic equipment (including compressors and winches) will be removed from the Aquila Explorer and utilized for the seismic outfitting of the BOA Galatea. The decommissioning is expected to be concluded in the third quarter of 2019 and write-down of Aquila Explorer of approximately $2.3 million will be taken in the second quarter in anticipation of the sale of the vessel.

SeaBird is a global provider of marine acquisition for 2D/3D and 4D 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/deep water 2D/3D and 4D 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.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

For further queries contact:

Hans Petter Klohs
CEO SeaBird Exploration
Phone: +47 22402718

or

Nils Haugestad
CFO SeaBird Exploration
Phone: +47 22402717