Earnings before interest, taxes, depreciation and amortization ("EBITDA") were USD 1.2 million for the quarter, compared to USD 3.8 million for Q2 2006. The weak quarterly profitability is caused by several factors. Geo Mariner had low vessel utilization in the period and also had to recognize extraordinary streamer rental costs of close to USD 1 million in the quarter. The Northern Explorer was in dry-dock in April and not back in operation before early May. On top of loss of revenues for the month of April, the dry-docking incurred non-capitalized maintenance cost of around USD 0.8 million. Furthermore, the Hawk Explorer had a streamer incident in April where replacement of equipment was significantly delayed, bringing the vessel out of production for a significant part of Q2.

Earnings before interest and taxes ("EBIT") were negative with USD 2.3 million in Q2 2007 compared to 3.1 million for Q2 2006. Depreciations increased to USD 3.5 million, up from USD 0.7 million for Q2 2006.

Net loss for Q2 2007 was USD 3.1 million, compared to a net profit of USD 3.0 million for Q2 2006.

Operational highlights Q2

Geo Mariner completed SeaBird's first ever multi-client survey on the Seychelles in the first half of April. Total investment capitalized in the survey in March and April was around USD 1.5 million for this survey. We are optimistic about the prospectivity of the area and we have also secured a small equity interest.

Subsequent to the completion at the Seychelles, the Geo Mariner mobilized for a small project in the Mediterranean partly to get out of the region before the monsoon and partly because of several interesting projects coming up in the Mediterranean. However, the expected projects in the Mediterranean did not materialize and the vessel was idle for several weeks in Q2 and the beginning of Q3. The vessel has now been brought back to Dubai and is currently waiting for new streamers before she can start a survey in The Arabian Gulf in the end of August. We expect significant improvements in the utilization of the Geo Mariner from September. On top of the low vessel utilization, Geo Mariner had to recognize extraordinary streamer rental costs of close to USD 1 million in Q2. We are in the process of putting our own streamers on board the Geo Mariner and ending the streamer lease.

Northern Explorer returned from dry-dock in South Africa in the end of April. On top of loss of revenues for the month of April, the dry-docking incurred non-capitalized maintenance cost of around USD 0.8 million and capitalized cost of around USD 0.2 million. Northern Explorer did a survey for a major oil company in Mozambique in May and beginning of June before she went to West Africa on a time-charter with GX Technologies ("GXT"). This contract will most likely be extended until the beginning of 2008, interrupted by a two-three weeks contract for an oil company in September/October.

Osprey Explorer completed the contract with CGG Veritas in the Gulf of Mexico at the end of July. We currently experience a higher demand for 2D capacity, hence we have decided to take the vessel to yard in August to outfit her to full 2D operating mode, including streamer and other equipment. The related capital expenditures are expected to be around USD 10 million. She is expected to start on a one-year time-charter for GXT early September, with options both for early termination and a one-year extension.

Kondor Explorer continued operations for CGGVeritas on a wide-azimuth survey in the Gulf of Mexico. This contract expires in November and we are currently looking at various alternatives subsequent to this contract.

Hawk Explorer is on a two-year charter ending in December 2008, with a one-year renewal option, for Fugro. In April, the vessel had a streamer incident. SeaBird has agreed to replace the Fugro streamer and take over responsibility for the operation of the streamer. The new contract with Fugro will improve the profitability of this contract going forward. However, delays in getting new equipment on-board subsequent to the incident caused stand-by for a significant part of Q2. The vessel is now in regular operations.

SeaBird continues to strengthen the management and operating capacity across the group in line with the requirements of the fleet expansion. For Q2 2007, this has contributed to an increase in selling, general and administrative expenses to USD 3.9 million, from USD 3.2 million in the comparable quarter in 2006. Approximately USD 0.4 million of the cost for Q2 2007 is non-cash cost related to the employee stock option incentive plan.

Conversion projects

Aquila Explorer was delivered from yard 26 June 2007 and immediately started the long transit to the Gulf of Mexico. She arrived in Galveston last week and has now started her six months contract (with two six months options) with Petroleum Geo-Services ("PGS") as a source/2D vessel. The total cost of the vessel including interest capitalization ended up around USD 38 million.

Munin Explorer was delivered from the vessel owner 1 August 2007 and immediately started to operate as a source vessel in the North Sea on a short-term contract for PGS. The next scheduled source-job was cancelled on short notice and as we see a continued demand for 2D capacity, we have decided to put the necessary streamer and equipment on board to make her ready to operate as a 2D vessel. Estimated capital expenditures for SeaBird including both the initial seismic equipment and the upgrade to 2D mode is around USD 16 million. Munin Explorer is chartered on a five-year firm bareboat charter with 3 x 1-year options. SeaBird has an option to purchase the vessel during the firm charter.

The Harrier Explorer is scheduled for sea-trials this week. Continued challenges related to asbestos and late delivery of compressors has caused significant delays and overruns for this vessel and the projected total cost is now revised to close to USD 50 million. The vessel is committed on a four-year firm time-charter with a two-year option with PGS as a source vessel. PGS has the option to use the vessel as a 2D vessel provided they cover the cost of additional seismic equipment and additional operating cost. The contract is scheduled for commencement in September 2007.

We currently expect to take delivery of the Hugin Explorer mid-December to start a two-month conversion to a state of the art node vessel for our SeaBed operations. We are currently in the final phases of drawings and committing to steel work and other equipment. The vessel is chartered on a five-year firm bareboat charter with 3 x 1 year options for the new-built vessel. The contract value for the firm period is around USD 57 million with an option to purchase the vessel at the expiry of the firm 5 years period. The vessel is expected to be operational in Q1 2008. Furthermore, we are investing in 500 new deep-water nodes for the SeaBed operations with projected delivery in Q4 2007. Total investments in SeaBed operations are estimated to be around USD 55 million.

In October 2006 the Company acquired the Raven Explorer with the intention to convert it into a shallow water 2D/3D vessel. Third party feasibility studies indicated that the converted vessel might not meet our required specifications. We have therefore initiated the search for an alternative. We are currently negotiating the sale of the Raven Explorer and expect to recover the purchase price, capitalized interest and other cost in the project.

Liquidity and Financing

At 30 June 2007, cash and cash equivalents amounted to USD 36.0 million, compared to USD 69.7 million at the end of the previous quarter. Net interest bearing debt was USD 120.5 million compared to USD 79.7 million at the end of the previous quarter.

In Q2, the Company has drawn the final USD 8 million at a credit facility agreement related to the Aquila Explorer and Osprey Explorer. A total of USD 27.8 million was outstanding under this facility as of 30 June 2007. This credit facility has an interest rate of LIBOR + 1.5% and will be repaid over five years.

Furthermore, the Company has entered into a five-year secured term bank loan with a borrowing limit of USD 25 million with interest rate of LIBOR + 1.25% and an additional unsecured revolving bank credit facility of USD 25 million with interest rate of LIBOR + 1.75%. The Company had not drawn under these facilities as of 30 June 2007.

We continue to see a very strong demand within all segments of the seismic industry. We expect the supply within our segments to increase slightly. However, the demand side is expected to more than absorb the additional capacity and we expect to see a strong 2008 with 9 vessels in operation.

On the basis of the disappointing vessel utilization for the Geo Mariner in Q2 and Q3 and delays on delivery of the other vessel, we will not meet our targets for 2007. Revenues are expected to be in the range of USD 110-120 million for the full year, while EBITDA is expected to be in the range of USD 50 million. Total capital expenditure is expected to be in the range of USD 130-140 million for the full year.

SeaBird Exploration Group - Interim Results Second Quarter 2007

Highlights Second Quarter 2007 Consolidated revenues of USD 17.2 million, an increase of 108% compared to Q2 2006. EBITDA of USD 1.2 million, down USD 2.6 million compared to Q2 2006. Performance negatively impacted by low vessel utilization of the Geo Mariner, dry-docking of the Northern Explorer in April, downtime on the Hawk Explorer caused by a streamer incident and downtime in connection with mobilization of a SeaBird supplied streamer as part of a changed and improved charter contract, as well as delays on delivery of new vessels. Aquila Explorer was delivered from yard at the end of June, while the Munin Explorer was delivered in the beginning of August, bringing total vessels in operation to seven. Harrier Explorer is scheduled for sea-trials this week, Hugin Explorer is scheduled for delivery Q1 2008, while Raven will be sold and we are currently evaluating other alternatives for a new shallow water vessel. Bank loans of USD 50 million secured. Continued strong markets. Key financial performance figures The SeaBird Group reported consolidated revenues of USD 17.2 million in Q2 2007, an increase of 108% compared to Q2 2006. Earnings before interest, taxes, depreciation and amortization ("EBITDA") were USD 1.2 million for the quarter, compared to USD 3.8 million for Q2 2006. The weak quarterly profitability is caused by several factors. Geo Mariner had low vessel utilization in the period and also had to recognize extraordinary streamer rental costs of close to USD 1 million in the quarter. The Northern Explorer was in dry-dock in April and not back in operation before early May. On top of loss of revenues for the month of April, the dry-docking incurred non-capitalized maintenance cost of around USD 0.8 million. Furthermore, the Hawk Explorer had a streamer incident in April where replacement of equipment was significantly delayed, bringing the vessel out of production for a significant part of Q2. Earnings before interest and taxes ("EBIT") were negative with USD 2.3 million in Q2 2007 compared to 3.1 million for Q2 2006. Depreciations increased to USD 3.5 million, up from USD 0.7 million for Q2 2006. Net loss for Q2 2007 was USD 3.1 million, compared to a net profit of USD 3.0 million for Q2 2006. Operational highlights Q2 Geo Mariner completed SeaBird's first ever multi-client survey on the Seychelles in the first half of April. Total investment capitalized in the survey in March and April was around USD 1.5 million for this survey. We are optimistic about the prospectivity of the area and we have also secured a small equity interest. Subsequent to the completion at the Seychelles, the Geo Mariner mobilized for a small project in the Mediterranean partly to get out of the region before the monsoon and partly because of several interesting projects coming up in the Mediterranean. However, the expected projects in the Mediterranean did not materialize and the vessel was idle for several weeks in Q2 and the beginning of Q3. The vessel has now been brought back to Dubai and is currently waiting for new streamers before she can start a survey in The Arabian Gulf in the end of August. We expect significant improvements in the utilization of the Geo Mariner from September. On top of the low vessel utilization, Geo Mariner had to recognize extraordinary streamer rental costs of close to USD 1 million in Q2. We are in the process of putting our own streamers on board the Geo Mariner and ending the streamer lease. Northern Explorer returned from dry-dock in South Africa in the end of April. On top of loss of revenues for the month of April, the dry-docking incurred non-capitalized maintenance cost of around USD 0.8 million and capitalized cost of around USD 0.2 million. Northern Explorer did a survey for a major oil company in Mozambique in May and beginning of June before she went to West Africa on a time-charter with GX Technologies ("GXT"). This contract will most likely be extended until the beginning of 2008, interrupted by a two-three weeks contract for an oil company in September/October. Osprey Explorer completed the contract with CGG Veritas in the Gulf of Mexico at the end of July. We currently experience a higher demand for 2D capacity, hence we have decided to take the vessel to yard in August to outfit her to full 2D operating mode, including streamer and other equipment. The related capital expenditures are expected to be around USD 10 million. She is expected to start on a one-year time-charter for GXT early September, with options both for early termination and a one-year extension. Kondor Explorer continued operations for CGGVeritas on a wide-azimuth survey in the Gulf of Mexico. This contract expires in November and we are currently looking at various alternatives subsequent to this contract. Hawk Explorer is on a two-year charter ending in December 2008, with a one-year renewal option, for Fugro. In April, the vessel had a streamer incident. SeaBird has agreed to replace the Fugro streamer and take over responsibility for the operation of the streamer. The new contract with Fugro will improve the profitability of this contract going forward. However, delays in getting new equipment on-board subsequent to the incident caused stand-by for a significant part of Q2. The vessel is now in regular operations. SeaBird continues to strengthen the management and operating capacity across the group in line with the requirements of the fleet expansion. For Q2 2007, this has contributed to an increase in selling, general and administrative expenses to USD 3.9 million, from USD 3.2 million in the comparable quarter in 2006. Approximately USD 0.4 million of the cost for Q2 2007 is non-cash cost related to the employee stock option incentive plan. Conversion projects Aquila Explorer was delivered from yard 26 June 2007 and immediately started the long transit to the Gulf of Mexico. She arrived in Galveston last week and has now started her six months contract (with two six months options) with Petroleum Geo-Services ("PGS") as a source/2D vessel. The total cost of the vessel including interest capitalization ended up around USD 38 million. Munin Explorer was delivered from the vessel owner 1 August 2007 and immediately started to operate as a source vessel in the North Sea on a short-term contract for PGS. The next scheduled source-job was cancelled on short notice and as we see a continued demand for 2D capacity, we have decided to put the necessary streamer and equipment on board to make her ready to operate as a 2D vessel. Estimated capital expenditures for SeaBird including both the initial seismic equipment and the upgrade to 2D mode is around USD 16 million. Munin Explorer is chartered on a five-year firm bareboat charter with 3 x 1-year options. SeaBird has an option to purchase the vessel during the firm charter. The Harrier Explorer is scheduled for sea-trials this week. Continued challenges related to asbestos and late delivery of compressors has caused significant delays and overruns for this vessel and the projected total cost is now revised to close to USD 50 million. The vessel is committed on a four-year firm time-charter with a two-year option with PGS as a source vessel. PGS has the option to use the vessel as a 2D vessel provided they cover the cost of additional seismic equipment and additional operating cost. The contract is scheduled for commencement in September 2007. We currently expect to take delivery of the Hugin Explorer mid-December to start a two-month conversion to a state of the art node vessel for our SeaBed operations. We are currently in the final phases of drawings and committing to steel work and other equipment. The vessel is chartered on a five-year firm bareboat charter with 3 x 1 year options for the new-built vessel. The contract value for the firm period is around USD 57 million with an option to purchase the vessel at the expiry of the firm 5 years period. The vessel is expected to be operational in Q1 2008. Furthermore, we are investing in 500 new deep-water nodes for the SeaBed operations with projected delivery in Q4 2007. Total investments in SeaBed operations are estimated to be around USD 55 million. In October 2006 the Company acquired the Raven Explorer with the intention to convert it into a shallow water 2D/3D vessel. Third party feasibility studies indicated that the converted vessel might not meet our required specifications. We have therefore initiated the search for an alternative. We are currently negotiating the sale of the Raven Explorer and expect to recover the purchase price, capitalized interest and other cost in the project. Liquidity and Financing At 30 June 2007, cash and cash equivalents amounted to USD 36.0 million, compared to USD 69.7 million at the end of the previous quarter. Net interest bearing debt was USD 120.5 million compared to USD 79.7 million at the end of the previous quarter. In Q2, the Company has drawn the final USD 8 million at a credit facility agreement related to the Aquila Explorer and Osprey Explorer. A total of USD 27.8 million was outstanding under this facility as of 30 June 2007. This credit facility has an interest rate of LIBOR + 1.5% and will be repaid over five years. Furthermore, the Company has entered into a five-year secured term bank loan with a borrowing limit of USD 25 million with interest rate of LIBOR + 1.25% and an additional unsecured revolving bank credit facility of USD 25 million with interest rate of LIBOR + 1.75%. The Company had not drawn under these facilities as of 30 June 2007. Outlook We continue to see a very strong demand within all segments of the seismic industry. We expect the supply within our segments to increase slightly. However, the demand side is expected to more than absorb the additional capacity and we expect to see a strong 2008 with 9 vessels in operation. On the basis of the disappointing vessel utilization for the Geo Mariner in Q2 and Q3 and delays on delivery of the other vessel, we will not meet our targets for 2007. Revenues are expected to be in the range of USD 110-120 million for the full year, while EBITDA is expected to be in the range of USD 50 million. Total capital expenditure is expected to be in the range of USD 130-140 million for the full year. The presentation and the full report with tables can be downloaded from the following links:
2nd Quarter 2007 Q2 Investor presentation (PDF)

SeaBird Exploration Group - Interim Results Second Quarter 2007