Slide 1: SeaBird Exploration Fourth Quarter Presentation
SeaBird Exploration Fourth Quarter Presentation 27 February 2012
Slide 2: Forward-looking statements
Forward-looking statements All statements contained in this presentation that are not statements of historical facts, including statements on projected operating results, financial position, business strategy and other plans and objectives for future results, constitute forward-looking statements an
Slide 3: Highlights
Highlights Financial results « Revenues of $34.9 million, down 23% from Q3 2012 ¢- EBITDA of $6.8 million, down from $11.7 million in Q3 2012 ¢ EBIT of $0.9 million compared with $4.2million for Q3 2012 Operational observations + Repositioning following the end of the North Sea season and permit del
Slide 4: 2012 - a year of change
2012 - a year of change * New management * New strategy * Restructuring and turnaround + Fleet renewal - Two vessels redelivered — One new vessel chartered + Market recovery * Renewed confidence from: - Employees — Clients — Sub-contractors — Investors - Creditors Sy SeaBird Exploration
Slide 5: Financial summary
Financial summary
Slide 6: Historical operating comparison
Historical operating comparison Revenues Adjusted EBITDA” 60.0 (USD million) 20.0 (USD million) 50.0 48.7 18.0 17.2 16.8 45.5 16.0 40.0 343 349 14.0 12.0 30.0 10.0 20.0 8.0 6.8 6.0 10.0 4.0 27 | oo + oo + a1 12 92 12 03 12 04 12 a112 212 3:12 Qa12 mContract revenue 1 Multi-client revenue Capital Exp
Slide 7: Income statement
Income statement Consolidated interim statement of Quarter ended Year ended 31 December 31 December USD millions (except for EPS) 2012 2011 2012 2011 Contract 34.5 19,2 141.7 71.9 Multi-client 0.4 5.2 21.6 9.8 Total revenues 34.9 24.4 163.3 817 Cost of sales (24.4) (24.0) (103.8) (67.6) SG&A (4.1) (
Slide 8: Cash flow statement
CONSOLIDATED INTERIM STATEMENT OF CASH FLOW Cash flow statement Quarter ended Year ended 31 December 31 December USD millions 2012 2011 2012 2011 Profit/(loss) before income tax (2.7) (13.3) (9.3) (113.4) Non cash items 8.4 (2.6) 44.6 79.7 Working capital changes (7.0) (27.2) (22.0) (30.9) Net cash
Slide 9: Balance sheet
Balance sheet CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION As of 31 December USD millions 2012 2011 Property, plant and equipment 130.8 137.0 Multi-client library 3.4 16.6 Other non-current assets 13 1.3 Inventories 3.9 47 Trade receivables 33.1 31.3 Other current assets 10.2 15.2 Cash and c
Slide 10: Multi-client operations
+ Multi-client sales for the quarter was a modest $0.4 million * The limited size of the remaining portfolio makes it difficult to forecast the timing of future revenues with any precision * The company is actively reviewing a number of potential surveys and we will be investing more actively in thi
Slide 11: Equity issuance
Equity issuance Equity private placement completed during Q4 2012 — 11,000,000 new shares at a subscription price of NOK 7.50 per share — Total gross proceeds NOK 82.5 million ($14.7 million) « Repair issue for an additional 1,500,000 new shares at a subscription price of NOK 7.50 per share complete
Slide 12: Funded debt review
Funded debt review USD millions AP +60 Equity ratio Cash 31 December 2012 $2.9 26.8% $14.1 Restrictions AP +60 Equity ratio Cash 31 December 2012 < $5.0 22.5% 2$10.0 31 December 2013 onwards <$2.5 25.0% 2$10.0 Funded debt profile (USD millions) 140.0 120.0 100.0 Face value Book value @ Bond loan - S
Slide 13: Finance related updates
Finance related updates + Tax review continuing — Review of current structures; tax efficiency can be improved significantly — Review of historical exposures; tax filing in Norway and accrual of $1.8 million -— More work to be completed in this area * Continued push on process automation and systems
Slide 14: Company update
Company update
Slide 15: SeaBird at a glance
SeaBird at a glance * Market leader in the high-end 2D segment * Core focus on quality systems and industry-leading operations — Pre qualified to work for the major oil companies -— Extensive experience with challenging operating environments — Security systems in place to operate in more difficult
Slide 16: Business segments aligned for growth
2D market Niche 3D market Source market Multi client Sy SeaBird Exploration Business segments aligned for growt Growing interest in frontier markets is driving demand New technology offers opportunity to update existing surveys Larger players increasingly focusing on their core markets Targeting 4-8
Slide 17: 2D market
2D market « Market has shown rapid improvement in 2012; expected to continue throughout 2013 - Increased demand from non-vessel owning multi-client companies — Increasing focus on frontier exploration from oil companies * Major seismic companies have limited 2D capacity at present, leaving SeaBird w
Slide 18: Positioned for further expansion in the niche 3D market
Positioned for further expansion in the niche 3D market * 4-8 streamer vessels cost efficient Development of 3D fleet for shorter and more complex 35 surveys 30 - Low mobilization costs and short 25 deployment time 20 — More economic on smaller surveys 6 10 «+ Major seismic operators are 5 exiting t
Slide 19: Multi-contract campaign
Multi-contract campaign — Mobilization and demobilization borne by consortium — Individual agreements with each partner — Possibility for more partners to enter into the consortium SeaBird expertise — Pragmatic approach; Offered solution not otherwise available to oil company clients — Flexibility —
Slide 20: Aligning capacity with growing source market demand
Aligning capacity with growing source market demand * Ocean bottom seismic (OBS) is 1200 Ocean bottom seismic development i i USD milli a rapidly growing market (USD million) — Demand of high quality data by 1000 major oil companies -— Node and cable capacity fully 800 booked for 2013 * Source vesse
Slide 21: Investing in multi-client
* Investing in multi-client projects is a natural part of a the seismic vessel operator business — Optimize vessel utilization and revenues * Plan to increase investment in 2D multi-client surveys — MC partner strategy — Multiple projects targeted for 2013 Sy SeaBird Exploration Expanding focus on m
Slide 22: Developing new technology
Developing new technology * 2D technology development -— Working on developing the “Wide Azimuth” equivalent to the 2D market: 20 km cable with continuous recording improving seismic data quality — Lab tests and modelling near completed — In-water testing end Qi — Solid industry interest * 3D techno
Slide 23: Well positioned fleet mix
Well positioned fleet mix 2D Vessels and source vessels Shallow Water ~~~~~_ ' 3D Vessels ~s ! i i Harrier Explorer Aquila Explorer Voyager Explorer “ Ss 4X 8000m 4X6000m .-%- - si -S on ae ~~ _ Hawk Explorer Osprey Explorer. wor” Seabird Exploration = =
Slide 24: Outlook
Outlook
Slide 25: Day rates remain strong
Day rates remain strong + 2D high end day rates currently at 20 High End $75-$85k per day, up from $55k per {USP thousand) 120 day in Ql 120 100 $110 $110 300 $85 $85 + Short-term undershoot contracts at so} $e STB $100k+ per day, mob and demob fully 6 paid 40 20 ° ocaeire expect day rates to peak i
Slide 26: Regional areas of focus
Regional areas of focus P <S Sy SeaBird Exploration
Slide 27: SeaBird Exploration
SeaBird Exploration