Slide 1: SeaBird Exploration
SeaBird Exploration Investor presentation at EAGE 13 June 2017
Slide 2: Proposed restructuring
Proposed restructuring Company overview 2
Slide 3: Introduction and background
Introduction and background • Significant operational improvements and cost reductions from 2014 to 2016 – Annual savings of approximately USD 16 million at comparable fleet size; substantially ahead of announced target savings of USD 10 million in 2015 Company • Improved cost elasticity transformat
Slide 4: Key terms of the restructuring
Key terms of the restructuring • Cancellation of loan (face value USD 5.0m + accrued interest USD 0.1m) in exchange for multi- SBX04 A client library (book value per Q1 of USD 2.7m) • 25% of net income from the multi client library to benefit the Tranche B bondholders and Glander • Conversion of loa
Slide 5: Significant commitment reduction
Significant commitment reduction No cash debt service on restructured commitments until 30 June 2020 Effect of restructuring on debt and lease obligations USDm 44.9 45 • All interest is PIKable 40 12.7 • All charter hire is PIKable • All amortization is deferred until 35 maturity 30 2.4 • No financi
Slide 6: Reduced commitments
Reduced commitments Pre restructuring Post restructuring 26 0 Restructured debt 26 obligations 6 3 3 3 11) 1 1 1 5 2 2 2 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2017 Q3 2017 ... Q2 2020 Interest Principal 4.8 3.9 4.0 Charter hire 2.4 obligations May-Dec 2018 2019 2020 May-Dec 2018 2019 2020 2017 2017 Not
Slide 7: Share ownership post restructuring
Share ownership post restructuring Conversion mechanics Ownership (%) Conversion price NOK 5.00 USDNOK 8.37 Conversion price USD 0.60 Glander SBX04B New bond/debt to Glander 5,000,000 Munin lease 5.3% 5.7% Current shares New To be "Claim" Shares debt/lease converted USD USD USD # % 30.3% SBX04B (inc
Slide 8: Timeline
Timeline • 6 June 2017: bondholders approved transaction (100% voted in favor) • 13 June 2017: EGM for shareholders to approve transaction • All conditions precedent must be fulfilled within 15 August 2017, but are expected fulfilled earlier • Once conditions precedent are fulfilled, new shares expe
Slide 9: Company overview
Proposed restructuring Company overview 9
Slide 10: Investment highlights
Investment highlights 2D industry The seismic leader, market has favorable supply troughed side Attractive Stable market upside potential pricing Significant Global reach commitment and scale reduction Strong Highly flexible operational cost structure performance 10
Slide 11: Strong operational performance
Strong operational performance Continuous cost focus… …leads to margin improvement SG&A 50% 2014 SG&A expenses (USDm) Onshore headcount (#) 2016 43.3% 19.4 78 -31% -24% Target 13.3 59 40% 30% 2014 2016 2014 2016 25.0% 23.4% Operating expenses 20% Daily opex/vessel (index) Capex (USDm) 100 7.9 10.8%
Slide 12: Highly flexible cost structure
Highly flexible cost structure Cost flexibility 100% Improved cost elasticity; ~100% ~100% warm-stacking instruction Standard employment flexible contract costs contract costs 0% Previous model Current model Targeting 100% of crew cost on flexible contracts 100% -71.0% Ability to scale up and down d
Slide 13: The seismic market has troughed
The seismic market has troughed Increasing tender activity Significant uptick Significant uptick in in • Tender activity and quality has improved # received tenders tendering activity tendering activity 43 • Largest activity increase seen from Africa and 36 Americas 29 29 • Growing demand for ocean
Slide 14: 2D industry leader, favorable supply side
2D industry leader, favorable supply side Observations 2D market dynamics improving # vessels • Weak utilization has resulted in a significant reduction in industry fleet size 30 Reducing 2D focus • 2D fleet shrinking as 3D players are exiting the market • Larger 3D operators redelivering smaller 3D
Slide 15: Stable 2D market pricing
Stable 2D market pricing Observations Market rates (USDk/day) • Controlled supply side 120 leads to relatively stable and healthy pricing in the 2D market 100 • Pricing stabilized over 80 past several months • History would indicate a 60 meaningful rate increase once market demand normalizes 40 • Re
Slide 16: Global reach and scale
Global reach and scale Servicing customers globally Scale & scope in operations Aquila Explorer Harrier Explorer Voyager Osprey Explorer Explorer Northern Explorer SeaBird fleet • Voyager Explorer under reactivation, on project from July 2017 Multi client library and surveys 16
Slide 17: Several leads but timing remains uncertain
Several leads but timing remains uncertain Leads Forecast vs. prob weighted leads BACKLOG/HIGH PROBABILITY LEADS Weighted value 30 Startup Region Vessel months Value (USDm) Prob. Q3 17 Q4 17 Q3 ** APAC 5.0 4.6 100 % 2.7 1.8 Q2 EAME 0.5 0.7 100 % Q3 EAME 0.5 0.9 100 % 0.9 25 Q3 NSA 2.0 3.7 100 % 3.7
Slide 18: Liquidity considerations
Liquidity considerations • The proposed restructuring will significantly reduce the company’s debt and charter obligations • No debt amortization before maturity; all interest and charter hire may be paid in kind • However, new contracts entered into for 2H 2017 will not generate positive cash flow