SeaBird Reports Delays to Conversion Projects

SeaBird Exploration Limited (BVI) said that it is experiencing delays on some of the conversion projects.

Through the conversion work on the Harrier Explorer, asbestos has been found on board the vessel, despite the fact that that she has an "Asbestos Free Certificate." This may delay the completion of the vessel until late July 2007. It is expected that this will increase the estimated cost of the conversion, but the exact consequences is still to be investigated.

SeaBird also noted that the Hugin Explorer is suffering delays on engineering and some long lead items, pushing the delivery into the 4th quarter of 2007. SeaBird estimates that its investments in SeaBed nodes and the vessel will be in the range of USD 45-50 million.

It is now decided that the Raven Explorer will be equipped with four streamers, and completion is scheduled for 4th quarter 2007. The additional streamers will bring the cost of the vessel up to USD 45-50 million.

The Aquila Explorer is expected to leave the yard in early May 2007, while the Munin Explorer is expected to commence operation early in the third quarter of 2007. Consequently, expectations for 2007 are somewhat lower than indicated in the Q4 earnings release. Revenues for 2007 are expected to be in excess of USD 150 million for the year and EBITDA in excess of USD 80 million.

SeaBird has chosen to shoot its first multi-client survey in March, with the Geo Mariner offshore the Seychelles. The background for this project is the prospectivity of the area and an additional opportunistic equity stake in a part of the survey area. However, revenues and profitability for Q1 are reduced. Furthermore, Northern Explorer has entered a planned dry-dock in March., further reducing Q1 revenues.

As a result of the above, SeaBird does not expect sequential growth in revenues for Q1 2007.

SeaBird Exploration Limited (BVI) 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. The main focus for the company is proprietary seismic surveys (contract seismic).

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