SeaBird Signs Frame and Re-Let Agreement with Spectrum ASA (Cyprus)

May 19, 2011

SeaBird Exploration PLC , the market leader in deepwater node seismic and high end 2D acquisition, announces the signing of a Frame Agreement with Spectrum ASA 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.”

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Source: huginonline,May 19, 2011;