Seaview Energy Inc.
TSX VENTURE : CVU.A
TSX VENTURE : CVU.B

Seaview Energy Inc.

June 19, 2008 09:30 ET

Seaview Energy Inc. Announces Private Company Acquisition Focused in Peace River Arch and Upward Revision to 2008 Guidance

CALGARY, ALBERTA--(Marketwire - June 19, 2008) -

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Seaview Energy Inc. (TSX VENTURE:CVU.A) (TSX VENTURE:CVU.B) ("Seaview" or the "Company") is pleased to announce that it has entered into a letter agreement with a private Alberta company based in Calgary, Alberta ("Privateco"), to effect a business combination (the "Transaction") whereby Seaview will acquire all of the outstanding securities of Privateco.

The assets of Privateco (the "Assets") are focused within Seaview's Peace River Arch core area with current production estimated at 525 Boe/d (80% natural gas weighted). The Transaction consolidates Seaview's core position in the Peace River Arch with the acquired properties in Valhalla, Progress and Pouce Coupe, and significantly expands Seaview's production, reserves, land and drilling inventory.

Consideration for the Transaction will comprise of the following:

(i) the security holders of Privateco shall receive in aggregate 5,944,425 Class A Shares ("Seaview Shares"); and

(ii) the security holders of Privateco shall receive in aggregate $7,076,696 in cash; and

(iii) Under the terms of the Transaction, Seaview will assume Privateco's estimated net debt of $11.5 MM.

Total consideration of the Transaction is approximately $37.7 MM based on the 20-day weighted volume trading average of Seaview Class A Shares of $3.22 per share.

The Transaction is highly accretive to Seaview on a production, reserves and cash flow per share basis.

The Transaction is expected to close on or about July 24, 2008 and will be conditional upon: (i) the execution of a definitive agreement in respect of the Transaction by no later than July 2, 2008; (ii) minimum of 90% of the Privateco security holders tendering to the offer; and (iii) customary regulatory approvals and other typical conditions for this type of transaction.

The parties intend to carry out the Transaction by way of an exempt take-over bid. The Transaction will provide Privateco shareholders continued participation in the upside of Privateco's asset base through their significant equity stake in Seaview.

Strategic Rationale

Seaview's business plan is based upon delivering growth in reserves, production and cash flow per share with a balanced strategy of acquiring, exploiting and exploring for high quality light oil and natural gas assets in Western Canada.

The Transaction consolidates Seaview's core position in the Peace River Arch further expanding the Company's production, reserves and drilling inventory. The assets to be acquired from Privateco pursuant to the Transaction offer operating synergies with Seaview's existing core areas and are consistent with management's exploration skill set.

Pursuant to the Transaction, Seaview will acquire approximately 525 Boe/d consisting of 2,550 mcf/d of natural gas, and 100 Bbl/d of crude oil and natural gas liquids. Total Proven Reserves of 875 MBoe and Total Proven plus Probable reserves of 1,392 MBoe have been assigned to Privateco, with an effective date of March 31, 2008, by GLJ Petroleum Consultants in a NI 51-101 compliant report.

In addition to the estimated Proven and Probable reserves, Seaview management has identified an additional 13 drilling locations providing future growth opportunities. Privateco's land position consists of 37,596 gross acres (19,633 net) including 19,840 gross acres (11,147 net) of undeveloped land.



Acquisition Metrics

----------------------------------------------------------------------------
Including Land Excluding Land,
and Facility Seismic and
Value(1) Facility Value(1)
----------------------------------------------------------------------------
Estimated Purchase Price(1) $ 37.7 MM $33.7 MM
----------------------------------------------------------------------------
Cost per flowing Boe $71,810 $64,190
----------------------------------------------------------------------------
Reserves cost per Total Proven Boe (2) $44.62 $40.05
----------------------------------------------------------------------------
Reserves cost per Total Proven plus
Probable Boe (3) $29.16 $26.28
----------------------------------------------------------------------------

Notes:
(1) Land value estimated at $250/acre and seismic at cost for total of
$4 MM.
(2) Based on GLJ Petroleum Consultants and includes future development
capital of $1.34 MM.
(3) Based on GLJ Petroleum Consultants report and includes future
development capital of $2.89 MM.


The combined Assets consolidate Seaview's interests in Balsam, Progress, Valhalla and Pouce Coupe fields, while adding Sinclair and Manir properties to the Company's growing Peace River Arch core focus area. Pursuant to the Transaction, the Company's net land position on the Doig-Montney exploration play in Pouce Coupe increases to 3.9 net sections, further expanding Seaview's exposure to this developing play.

Financial and Operational Benefits of the Acquisition

Seaview expects to achieve a number of key financial and operational benefits from the Transaction, including:

- The Transaction is highly accretive to Seaview's net asset value, reserves, production and cash flow per share.

- Forecast annualized pro-forma cash flow for Seaview is now expected to increase to $25.7 million ($0.58 per share), assuming 2008 average AECO gas prices of $10.25/GJ, and US$118/bbl pricing.

- The Company will emerge from the Transaction as a significantly stronger entity, with improved liquidity in the market and a significantly larger market capitalization.

- Significantly increases Seaview's land position in the Peace River Arch to 116,916 gross acres (48,143 net acres) including 24,008 net acres of undeveloped lands.

- Seaview has identified 13 gross drilling locations on Privateco's lands, further adding to Seaview's existing inventory of drilling prospects.

- Privateco's exploration and development opportunities will complement and diversify Seaview's existing inventory of drilling prospects, establishing a balanced portfolio of investment projects to provide a solid inventory for future growth.

The strategic merits of the Transaction are significant for Seaview shareholders. The larger, more diversified cash flow base will permit Seaview to embark upon a more aggressive exploration and development program in its Peace River Arch focus area as well as pursue the upside potential on the assets to be acquired pursuant to the Transaction.

With an expanded inventory of both exploration and development locations, Seaview is well positioned for additional growth potential through a risk balanced capital program.

Outlook; Upward Revision to 2008 Guidance

During its first nine months of operations, Seaview's management has aggressively positioned the Company for solid future growth through the successful execution of a balanced business strategy of acquiring, exploiting and exploring for high quality natural gas and light oil assets in Western Canada.

With the execution of the proposed Transaction, Seaview's recently announced acquisition of long life, light oil assets in Southeast Saskatchewan, and successful winter drilling results, management continues to rapidly grow the Company's reserves, production and cash flow per share. Upon successful closing of the Transaction, and the Southeast Saskatchewan acquisition, Seaview will have the following pro-forma characteristics:

- Upward revision to the Company's forecast 2008 average daily production estimate to more than 1,000 boe/d, and 2008 production exit rate target to more than 1,550 boe/d.

- Forecast annualized pro-forma cash flow for Seaview is now expected to increase to $25.7 million ($0.58 per share), assuming 2008 average AECO gas prices of $10.25/GJ, and US$118/bbl pricing.

- Post closing of the Acquisition Seaview's net debt is estimated at $27.5 million.

- Seaview's bank line is anticipated to increase to more than $33 million after giving consideration to the Transaction, subject to lenders final approval.

- Debt to annualized cash flow ratio of 1.1 times based on pro-forma annualized 2008 cash flow.

- Expanded drilling inventory of more than 60 opportunities, offering a diversified portfolio of exploration, development and lower-risk optimization projects in both the Peace River Arch and South East Saskatchewan core areas.

- Post closing of the previously announced Southeast Saskatchewan acquisition, and after giving effect to the Class A shares to be issued pursuant to the Transaction, Seaview will have 44.16 million Class A shares outstanding and 1.054 million Class B shares outstanding.

Consequently, as a result of the Company's continued successful execution of managements balanced business strategy of acquiring, exploiting and exploring for high quality natural gas and light oil, Seaview is now revising upward its 2008 average daily production estimate to more than 1,000 Boe/d, and the Company's 2008 production exit rate to more than 1,550 Boe/d.

Seaview is a Calgary, Alberta based company engaged in the exploration, development and production of conventional crude oil and natural gas reserves in Canada. Seaview's strategy is to build shareholder value through a balance of exploration and development drilling complemented by a focused acquisition program. Seaview's shares trade on the TSX - Venture Exchange under the symbols CVU.A and CVU.B.

Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil is based on an energy conversion method primarily applicable at the burner tip and is not intended to represent a value equivalency at the wellhead. All boe conversions in this press release are derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil. Certain financial amounts are presented on a per boe basis, such measurements may not be consistent with those used by other companies.

This press release may contain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, anticipations, expectations, opinions, forecasts, projections, guidance or other similar statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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