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

Seaview Energy Inc.

November 21, 2007 20:18 ET

Seaview Energy Inc. Provides Operational Update and Announces Third Quarter 2007 Results

CALGARY, ALBERTA--(Marketwire - Nov. 21, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.

Seaview Energy Inc. ("Seaview" or the "Company") (TSX VENTURE:CVU.A) (TSX VENTURE:CVU.B) is pleased to provide an operational update and announce its financial and operating results for the three and nine months ended September 30, 2007.

The Company began trading on October 23, 2007 and is currently active in the field executing the fall capital program. The Company is pleased to report significant progress to date on its core business development strategy of acquisitions and farm-ins.

THE FINANCIAL AND OPERATING RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2007 DO NOT INCLUDE THE IMPACT OF THE INITIAL PUBLIC OFFERING ("IPO") OR THE ACQUISITION OF 1276921 ALBERTA LTD ("PRIVATECO"), WHICH OCCURRED SUBSEQUENT TO THE PERIOD END. PLEASE SEE THE DISCUSSIONS REGARDING SUBSEQUENT EVENTS.

Highlights of the third quarter and subsequent developments include:

- The Company filed its final prospectus in regards to its IPO on October 9, 2007. The IPO closed on October 17, 2007 with gross proceeds of $11,706,000 on the issuance of 4,682,400 flow-through Class A shares at $0.25 per share and 1,053,540 flow-through Class B shares at $10.00 per share. After deducting commissions and estimated out-of-pocket expenses of $819,420 and $250,000, respectively, net proceeds are estimated at $10,636,580.

- The Company entered into an amalgamation agreement with PrivateCo on July 20, 2007 whereby Seaview agreed to acquire all of the issued and outstanding common shares of PrivateCo for 0.9076 of a Seaview Class A share. The transaction closed on October 17, 2007 and Seaview issued 9,602,499 Class A shares bringing immediate cash flow and production to Seaview. Seaview's operating area is focused in the Gordondale and Mirage fields in the Peace River Arch region of northwest Alberta where the Company is currently producing approximately 180 Boe/d comprised of 1.0 mmcf/d of natural gas and 15 Bbl/d of light crude oil.

- Immediately after the close of the IPO and the merger with PrivateCo, Seaview completed a fall drilling program consisting of 5 wells (2.4 net). To date, 3 exploration wells (1.6 net) have been completed and evaluated, resulting in the discovery of 3 new natural gas pools. Each of these wells has been released for tie-in and 2 wells (1.2 net) are expected to produce an estimated 100 Boe/d net to the Company by year-end with the third well expected to be tied-in the first quarter of 2008. The remaining 2 wells from fall drilling program are currently being tested.

PRESIDENT'S MESSAGE

Seaview began trading on the TSX Venture Exchange on October 23, 2007 after successfully completing the Company's IPO which closed on October 17, 2007. The commencement of trading represents an exciting milestone for Seaview's management team who have been accumulating opportunities and assets for over a year prior to completing the IPO. We would like to sincerely thank our shareholders who have supported us to date. We believe there is tremendous opportunity within Seaview's core focus areas and the Company is now poised to deliver value to shareholders over the next twelve to eighteen months.

Looking back over the past year, many energy companies have struggled in a difficult operating environment. Due to high service costs, dropping natural gas prices and ongoing regulatory changes to taxation and royalties, access to capital for most companies has been difficult. Despite the challenges faced by industry, Seaview management believes the Company is strongly positioned to capitalize on the investment opportunities created by these concurring events. During difficult times it is critical to look at challenges from a new perspective and look for opportunities where others see only liabilities.

Similar to all oil and gas producers in Alberta, Seaview will be affected by the proposed Alberta Royalty Regime changes which are scheduled to become effective on January 1, 2009. It is difficult to assess the overall potential impact on the Company's operations due to uncertainties in the calculations (such as pricing assumptions and production forecasts). However, given that all of the Company's assets are currently located in Alberta, we are anticipating higher royalty rates in 2009 and beyond.

Despite the royalty changes, the Company intends to continue funding its Alberta project inventory as all of the Company's drilling prospects still yield acceptable economic returns for shareholders in spite of the potentially higher royalty rates. Seaview's Montney-Doig exploration plays are expected to benefit from the royalty change due to the proposed deep well provision and the lower production rates inherent with tight gas resource plays. Management believes that the impact of the royalty changes will lead to more opportunities, lower land sale costs, revised farm-in terms and lower valuation on acquisitions. We also believe that our technical competency remains in our core focus area, where we can rely on our experience to maximize shareholder return on investment.

FINANCIAL AND OPERATING RESULTS

For the three and nine month periods ending September 30, 2007, the Company incurred a net loss of $5,442 and $5,485, respectively and used cash for operating activities of the same amount. The net loss was the result of general and administrative costs incurred during the periods. As this is the first year of operations for the Company and the impact of the IPO and the acquisition of PrivateCo are not reflected as they occurred subsequent to the period end, the financial results may not be indicative of future periods and no comparative numbers have been provided.

The operating results of the private operating company, PrivateCo, will only be included in the fourth quarter results from the date of the merger, October 17, 2007, forward. The transaction between Seaview and PrivateCo will be accounted for as an acquisition by Seaview, therefore Seaview's results and operating history will be utilized for comparative purposes.

REVIEW OF OPERATIONS

Over the course of the last year, the management team of Seaview has assembled a suite of natural gas and light oil assets in the Peach River Arch region of northwest Alberta through a series of strategic farm-ins. Under the operating company, PrivateCo, a total of 7 wells (3.2 net) were drilled and an additional 4 wells (2.0 net) were recompleted. Of the 7 wells drilled, 3 gas wells (1.2 net) were on production at the time of the acquisition by Seaview and the other 4 wells (1.8 net) are in various stages of completion by Seaview since the acquisition. Subsequent to the acquisition and IPO, Seaview drilled one additional well (0.6 net) that is currently being evaluated.

OUTLOOK

As we look forward to the fourth quarter of 2007 and into 2008, Seaview will continue with the drilling programs already in place and equip and tie in our operations to date, adding to our production base and cash flow. The Board of Directors is currently reviewing Seaview's proposed capital program for 2007-2008, details of which will be released in December 2007. Based on the Company's drilling success to date and the inventory of drilling prospects, management is preparing for an active winter drilling program. Combined with the existing production and recent successful drilling, the Company is targeting year-end exit rates of approximately 250 Boe/d.

We believe that Seaview is well positioned with a strong balance sheet, cash flow, a winter drilling program currently under way, further opportunities in drill ready status and a seasoned management team that will be able to execute on these opportunities. We also believe that the current market conditions will provide opportunities for companies with a strong balance sheet to complete accretive natural gas and light oil acquisitions, at metrics superior to similar transactions completed over the past few years. Seaview's management continues to evaluate many such acquisition opportunities consistent with the Company's strategy of focusing on quality reserves, stable production and predictable cash-flow.

We also believe that drilling and service costs will continue to decline going into the winter of 2007-2008 as companies reduce their winter drilling programs, freeing up equipment and labour, enabling Seaview to achieve significantly lower finding and development costs than experienced by the industry in the past few years.

We look forward to reporting our progress.

Seaview is a Calgary, Alberta based company engaged in the exploration, development and production of conventional crude oil and natural gas reserves in Canada. The Company's strategy is to build shareholder value through a balance of exploration and development drilling complimented by a focused acquisition program. Seaview's initial core focus area is in the Peace River area of northwest Alberta. Seaview's Class A and Class B shares are listed on the TSX - Venture Exchange under the symbols CVU.A and CVU.B.

Seaview's complete third quarter 2007 unaudited Financial Statements and Notes and Management's Discussion and Analysis ("MD&A") as well as additional information are available on Seaview's website at www.seaviewenergy.com or on SEDAR at www.sedar.com.

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.



BALANCE SHEETS
(unaudited)

September 30, December 31,
2007 2006

CURRENT ASSETS
Cash $ 1,046,101 $ 25
Accounts receivable 11,416 -
Prepaid expenses and refundable deposits 64,606 -
----------------------------------------------------------------------------
Total current assets 1,122,123 25

Petroleum and natural gas assets 247,958 -

TOTAL ASSETS $ 1,370,081 $ 25
----------------------------------------------------------------------------
----------------------------------------------------------------------------

LIABILITIES

Accounts payable $ 267,517 $ -
----------------------------------------------------------------------------
Total current liabilities 267,517 -

SHAREHOLDERS' EQUITY

Share capital $ 1,108,049 $ 25

Deficit (5,485) -
----------------------------------------------------------------------------
Total shareholders' equity 1,102,564 25

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 1,370,081 $ 25
----------------------------------------------------------------------------
----------------------------------------------------------------------------


STATEMENT OF NET LOSS AND COMPREHENSIVE LOSS AND DEFICIT
(unaudited)


For the
period from
incorporation on
Three months Nine months December 13,
ended ended 2006 to
September 30, September 30, December 31,
2007 2007 2006
General and admin
expenses $ 5,442 $ 5,485 $ -
----------------------------------------------------------------------------
Net loss and
comprehensive loss for
the period $ 5,442 $ 5,485 $ -

Deficit, beginning of
period 43 - -
Deficit, end of period $ 5,485 $ 5,485 $ -

Loss per share - basic $ 0.00 $ 0.00 $ 0.00
----------------------------------------------------------------------------
----------------------------------------------------------------------------


STATEMENT OF CASH FLOWS
(unaudited)

For the
period from
incorporation on
Three months Nine months December 13,
ended ended 2006 to
September 30, September 30, December 31,
2007 2007 2006
Operating activities
Net loss $ (5,442) $ (5,485) $ -
----------------------------------------------------------------------------
(5,442) (5,485) -
Changes in non-cash working
capital 56,815 56,815 -
----------------------------------------------------------------------------
Cash provided by operating
activities 51,373 51,330 -
----------------------------------------------------------------------------

Financing activities

Issue of Class A shares (net
of costs) 431,024 1,108,024 25
----------------------------------------------------------------------------
Cash provided by financing
activities 431,024 1,108,024 25
----------------------------------------------------------------------------

Investing activities

P&NG asset expenditures (247,958) (247,958) -
Changes in non-cash working
capital 134,680 134,680 -
----------------------------------------------------------------------------
Cash used in investing
activities (113,278) (113,278) -
----------------------------------------------------------------------------

Increase in cash during the
period $ 369,119 $ 1,046,076 $ 25
----------------------------------------------------------------------------
Cash - beginning of period 676,982 25 -
----------------------------------------------------------------------------
Cash - end of period $ 1,046,101 $ 1,046,101 $ 25
----------------------------------------------------------------------------
----------------------------------------------------------------------------


For further information or to receive a complete copy of Seaview's third quarter operating and financial results, including the MD&A and Financial Statements free of charge, please visit our website at www.seaviewenergy.com or contact Seaview investor relations by email at: Info@seaviewenergy.com or toll free telephone at 1-877-242-0222.

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

Contact Information

  • Seaview Energy Inc.
    Michael Wuetherick
    President & CEO
    (403) 770-2961
    or
    Seaview Energy Inc.
    Stephanie Bunch
    Vice President, Finance & CFO
    (403) 770-9503
    or
    Seaview Energy Inc.
    Teresa Beets
    Investor Relations
    (403) 668-4492
    Email: info@seaviewenergy.com
    Website: www.seaviewenergy.com