SeaBird Awarded Source Vessel Contract

SeaBird Exploration Limited (BVI) has contracted a source vessel to be named to Petroleum Geo-Services (PGS). SeaBird will acquire and convert a vessel for the contract that starts in January 2007. The vessel will be prepared for 2D seismic work, and PGS has the option to work the vessel in the 2D market against a rate increase. PGS will then provide the seismic equipment. The contract is for six months with two six-month options. The value of the firm period of the contract as a source vessel is approximately $9m with a slight rate increase for the optional periods. SeaBird will carry out the full seismic and marine operations.