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

Seaview Energy Inc.

April 08, 2009 10:04 ET

Seaview Energy Inc. Releases Financial and Operating Results for the Year and Three Months Ended December 31, 2008

CALGARY, ALBERTA--(Marketwire - April 8, 2009) -

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. (TSX VENTURE:CVU.A) (TSX VENTURE:CVU.B) ("Seaview" or the "Company") is pleased to provide shareholders with an update on corporate developments and the Company's 2008 financial and operational results.



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Selected Financial Information
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%
Financial Q4 2008 Q4 2007 Change
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Petroleum and natural gas sales $ 8,226,577 $ 566,962 1351%
Funds flow from operations 3,555,906 98,865 3497%
Basic per share 0.07 0.01 600%
Diluted per share 0.06 0.01 500%
Net income (loss) 374,858 (369,591) 201%
Basic per share 0.01 (0.02) 150%
Diluted per share 0.01 (0.02) 150%
Capital expenditures 6,669,253 3,494,333 91%
Corporate acquisitions - 13,242,776 -
Net debt (working capital surplus) 19,418,852 (8,242,885) (336%)
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Shares Outstanding at period end
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Class A 50,005,182 19,073,007 162%
Class B 1,053,540 1,053,540 -
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Operations
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Daily production
Natural gas (mcf/d) 8,330 858 871%
Light oil and NGLs (bbl/d) 406 8 4975%
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Total production (boe/d) 1,794 151 1088%
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Average realized sales price (net of
risk management gains or losses)
Natural gas (per mcf) $ 7.68 $ 6.40 20%
Light oil and NGL (per bbl) 62.82 85.96 (27%)
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Netback per boe
Sales price (net of risk
management gains or losses) $ 49.84 $ 40.86 22%
Royalties 8.77 9.46 (7%)
Operating expenses 11.34 11.15 2%
Transportation 1.14 1.21 (6%)
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Operating netback $ 28.59 $ 19.04 50%
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Selected Financial Information
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%
Financial 2008 2007 Change
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Petroleum and natural gas sales $ 22,998,137 $ 566,962 3956%
Funds flow from operations 10,853,893 93,380 11523%
Basic per share 0.30 0.02 1400%
Diluted per share 0.23 0.02 1050%
Net income (loss) 2,296,275 (375,075) 712%
Basic per share 0.06 (0.07) 186%
Diluted per share 0.05 (0.07) 171%
Capital expenditures 32,714,246 3,742,291 774%
Corporate acquisitions 60,927,572 13,242,776 360%
Net debt (working capital surplus) 19,418,852 (8,242,885) (336%)
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Shares Outstanding at period end
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Class A 50,005,182 19,073,007 162%
Class B 1,053,540 1,053,540 -
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Operations
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Daily production
Natural gas (mcf/d) 5,221 216 2317%
Light oil and NGLs (bbl/d) 207 2 10250%
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Total production (boe/d) 1,077 38 2734%
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Average realized sales price (net of
risk management gains or losses)
Natural gas (per mcf) $ 8.47 $ 6.40 32%
Light oil and NGL (per bbl) 89.96 85.96 5%
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Netback per boe
Sales price (net of risk
management gains or losses) $ 58.34 $ 40.86 43%
Royalties 12.59 9.46 33%
Operating expenses 10.08 11.15 (10%)
Transportation 1.18 1.21 (2%)
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Operating netback $ 34.49 $ 19.04 81%
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HIGHLIGHTS OF 2008 AND SUBSEQUENT EVENTS

- Average reported production for 2008 increased to 1,077 boe/d compared to average production for 2007 of 38 boe/d.

- Average production for Q4 2008 of 1,794 boe/d was an increase of 1,088% relative to Q4 2007 production, and a 26% increase compared to Q3 2008 production of 1,422 boe/d. Production per share increased 21% in the fourth quarter over third quarter 2008 results.

- Since commencing operations on October 17, 2007, record production levels in the fourth quarter of 2008 mark the Company's fifth consecutive quarter of growth.

- Increased Total Proven reserves by 344% per share, to 4,786 mboe, a 1,064% relative increase since year end 2007.

- Increased Total Proven plus Probable reserves by 289% per share, to 7,256 mboe, a 921% relative increase since year end 2007.

- Reserve Life Index of 7.3 years on a Total Proven basis and 11.1 years on a Total Proven plus Probable basis using December 31, 2008 reserves, and Q4 2008 production of 1,794 boe/d.

- Achieved Finding, Development and Acquisition ("FD&A") costs of $24.01/boe Proven and $17.94/boe Proven plus Probable (including changes to Future Development Costs ("FDC")).

- Achieved Finding and Development ("F&D") costs of $13.63/boe Proven and $12.08/boe Proven plus Probable (including changes to FDC).

- Funds flow from operations for 2008 were $10.9 million or $0.30 per share.

- The Company drilled and cased 18 wells (9.1 net) in 2008 with a 89% success rate. In the fourth quarter 2 wells (0.2 net) were drilled with a 100% success rate.

- On April 1, 2008, Seaview closed the corporate acquisition of 1332915 Alberta Ltd ("133Co") for total consideration of $24.0 million, comprised of the assumption of 133Co's net debt position and the issuance of 8,049,250 Class A shares at $0.87 per share. The acquisition of 133Co was highly accretive on all measures to Seaview, and significantly expanded the Company's reserves, production, cash flow, land and drilling inventory.

- On May 29, 2008, Seaview closed a bought-deal financing for gross proceeds of $6.0 million through the issuance of 2,792,000 Class A shares issued on a "flow-through basis" at a price of $2.15 per share.

- On June 26, 2008, Seaview acquired light oil properties from Progress Energy Trust located in southeast Saskatchewan and issued 8.3 million Class A shares, with an ascribed value of $2.12 per share, to Progress, as well as approximately $5.0 million in cash, for total consideration of $22.5 million.

- On July 10, 2008, Seaview closed a bought-deal financing for gross proceeds of $10.0 million through the issuance of 2,899,000 Class A shares at a price of $3.45 per share.

- On July 24, 2008, the Company closed the corporate acquisition of C3 Resources Ltd. ("C3") for total consideration of $36.9 million, comprised of the assumption of C3's net debt position, the issuance of 5,891,925 Class A shares at $3.24 per share and approximately $6.3 million in cash.

- On December 18, 2008, Seaview closed a bought-deal financing for gross proceeds of $4.8 million through the issuance of 3,000,000 Class A shares issued on a "flow-through basis" at a price of $1.60 per share.

- Expanded the credit facility to $44 million representing a 30% increase relative to June 30, 2008. Based on year end 2008 net debt of $19.4 million, Seaview has $24.6 million of available credit capacity to pursue additional strategic opportunities.

Business Strategy

During the first full year 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.

Seaview successfully closed three strategic and highly accretive acquisitions during 2008 to build the Company's current core areas in the Peace River Arch and southeast Saskatchewan. Each of these transactions featured long-life, high quality reserves featuring low operating costs resulting in high netback properties. Combined with an effective exploration and exploitation 2008 drilling program, Seaview has achieved significant reserves and production growth per share.

Despite volatile commodity prices and the impact of the global financial crisis on capital markets, Seaview is well positioned to continue executing its aggressive growth strategy. Through a disciplined approach to capital management, Seaview has several key characteristics that support continued growth and value creation for shareholders despite the current economic climate:

- High-quality, long reserve life assets, focused on natural gas in the Peace River Arch and light oil in southeast Saskatchewan, both desirable areas within the Western Canadian Sedimentary Basin.

- Strong financial position including a low cost structure, strong balance sheet and $24.6 million of available credit capacity providing Seaview with the ability to capitalize on strategic opportunities.

- Attractive commodity risk management program to provide an enhanced cash flow stream in order to maintain balance sheet strength, secure acquisition economics and finance the Company's capital expenditures.

- Strong management team, directors and technical professionals with significant ownership positions, ensuring strong alignment to shareholders' interests.

OPERATIONS OVERVIEW

Seaview's core areas feature high quality, long-live reserves with significant identified upside potential through exploration and development drilling. The Company's acquisition strategy has been on consolidating key core areas where management has previous knowledge and experience. For the year ended December 31, 2008, Seaview has successfully executed its business plan through the closing of three strategic acquisitions and a very successful drilling program.

Peace River Arch Core Area

Seaview has initially focused its conventional exploration and acquisition efforts in the Peace River Arch region. This area is characterized as having multi-zone potential of natural gas and light oil drilling opportunities at shallow to moderate drilling depth (approximately 350 to 2,300 metres).

Seaview acquired its initial assets through the corporate purchase of 1276921 Alberta Ltd. ("127Co") concurrent with its Initial Public Offering ("IPO") in October, 2007. Subsequently Seaview acquired additional producing assets and undeveloped land through the corporate acquisitions of 133Co and C3. The acquired assets added approximately 1,000 boe/d in this region consolidating in key producing properties of Gordondale, Balsam, Boundary Lake, Valhalla, Doe, Pouce Coupe, Sinclair and Clayhurst.

During 2008, Seaview drilled 18 wells (9.10 net) in this region on the various properties. The targets ranged from the Upper Cretaceous Doe Creek reservoir to the Mississippian Kiskatinaw reservoirs which provide high impact production and reserve potential. Seaview drilled and operated 16 of the wells drilled in the area. The total capital program was $17.7 million, which included drilling 12 wells (6.6 net) exploration wells. The highlights of the program are summarized as follows:

- Based on a proprietary 3D seismic program, Seaview drilled 2 wells (0.45 net) which successfully delineated an extension of a significant Kiskatinaw gas pool at Gordondale. Combined these wells have produced a total 2 bcf (0.4 bcf net) of reserves to date and are currently flowing at production rates of 3 mmcf/d and 10 mmcf/d (400 boe/d net).

- At Boundary Lake, Seaview drilled a dual zone Kiskatinaw gas well (0.5 net) that was initially brought on production in April, 2008 at restricted rates of 500 mcf/d due to pipeline restrictions. This issue was rectified in early December 2008 and the well is currently producing from both reservoir zones at a gross rate of approximately 4 mmcf/d (333 boe/d net).

- Seaview drilled 6 wells (2.30 net) and recompleted a suspended gas well (0.5 net) at Valhalla. Three wells were brought on production in 2008, a fourth began producing in the first quarter of 2009 and production from one additional well was deferred until April 1 to take advantage of the royalty incentive. Net production from these wells is approximately 110 boe/d.

- Seaview drilled a Montney discovery well at 100% working interest in Clayhurst which was brought on production early 2008. Subsequently, Seaview acquired additional interest in the Clayhurst area including 100% ownership of the pipeline and compression infrastructure in the area.

- At Sinclair, Seaview drilled 2 wells (0.55 net) subsequent to the C3 acquisition. Both wells have been completed and are expected to be tied-in for production this summer. The Company estimates net production additions of 75 boe/d to be on-stream during the third quarter of 2009.

- Seaview brought 2 wells on production starting April 1, 2009, a dual zone well at Gordondale (0.6 net) from a new Kiskatinaw pool and a well at Valhalla (0.5 net) at initial gross rates of approximately 2.5 mmcf/d (240 boe/d).

- Seaview has an additional 4 wells (1.2 net) to be brought on production during the year which are expected to add combined deliverability of approximately 200 boe/d. The production from these wells plus the recent tie-ins in Gordondale and Valhalla will qualify for the maximum 5% royalty rate subject to limitations disclosed under the Alberta government's royalty relief program.

Within the first year of operations, Seaview has succeeded in establishing a significant asset base including a land position of 121,730 gross acres (51,126 net) with over 60 drilling locations identified on Company interest lands in the Peace River Arch focus area. Despite the low commodity price environment, Seaview's diverse prospect inventory combined with the recent royalty incentives announced by the Government of Alberta provides a solid platform for continued value creation through its drilling operations.

Southeast Saskatchewan

In June 2008, Seaview closed the acquisition of three properties from Progress Energy Trust located in the Rocanville, Steelman and Alameda areas in southeast Saskatchewan. The acquisition provides Seaview with a component of operated, high quality, long-life oil reserves including several development and exploration targets.

Seaview has successfully completed several improvements on the acquired properties including well re-activations, pump changes and optimization of water flood injection practices. As at year-end 2008, the property was assigned Total Proven plus Probable reserves of 1,340 mboe with a reserve life index of over 18 years based on oil production rates of 200 bbl/d.

Management has identified several additional infill drilling opportunities which include horizontal development wells and exploration targets. Combined with the stable, predictable cash flow derived from these assets, the lower-risk nature of the identified drilling inventory in Saskatchewan complements Seaview's exploration targets in the Peace River Arch core area.

Resource Play Exploration Program

Seaview's capital budget is weighted towards exploration drilling, therefore the success in the drilling program can materially impact the Company's success. Management balances the risk of exploration drilling by allocating capital towards a combination of higher risk conventional targets with a component of lower technical risk resource plays. Due to the high capital cost and technical complexity of these plays, Seaview looks to partner with industry leaders in order to gain experience and knowledge in these plays to be leveraged on future properties.

Pouce Coupe - Montney

Through a series of farm-ins and acquisitions, Seaview has established an average 17.5% working interest in 12,800 gross acres of prospective Montney lands in this evolving play fairway located in northwest Alberta. The Montney tight gas play is an exciting resource play offering an attractive combination of low-risk exploration with significant reserve potential.

Following up on 3 vertical wells (1.7 net) drilled in 2007, Seaview participated in the Company's first horizontal well (0.24 net) completed with multi-frac technology in late 2008. The horizontal location was successfully completed with a six-stage frac and will be brought on production in Q3 2009. Net production from this well will again qualify for the 5% royalty relief program.

Seaview's land position in the Pouce Coupe Montney play, which is now 3.9 net sections, is well positioned offsetting numerous successful horizontal development wells drilled during 2008 by other industry participants. Other operators have reported significant early success in the Lower Montney formation with reported initial production rates ranging from 2 - 5 mmcf/d.

With the success of Seaview's first horizontal well, an additional four horizontal locations (1.4 net) were assigned Proven Undeveloped and Proven plus Probable undeveloped reserves totalling 450 mboe validating the long term potential of this area. Seaview's position within this play provides a long term development opportunity to be capitalized over the next several years with less than 10% of the potential development locations currently booked.

Harlech - Nordegg and Rock Creek

Late in 2008, Seaview participated in drilling a 3,300 meter multi-zone exploration well targeting a developing resource play located in Harlech in west central Alberta. As a result of drilling and completing this well, Seaview has earned a 25% working interest in 5,760 gross acres of contiguous land with additional crown land available offsetting Seaview's position. The discovery well was successfully completed in multiple reservoir zones, however, the well cannot be brought on production until next winter due to surface access issues. Seaview expects to drill additional wells on this land position to further evaluate its resource potential.

RESERVES

Seaview has a Reserve Committee comprised of independent board members, which reviews the qualifications and appointment of the independent reserve evaluators. The Committee also reviews the processes and technical data used to determine the reserves booked.

The independent reserves evaluation has been completed by Sproule and Associates Limited ("Sproule") with an effective date of December 31, 2008, in a National Instrument 51-101 ("NI 51-101") compliant report . Highlights of the report are summarized below:

- Proven Developed Producing reserves have increased by 358% per share, to 3,941 mboe, a relative increase of 1,096% since December 31, 2007.

- Total Proven reserves have increased by 344% per share, to 4,786 mboe, a relative increase of 1,064% since December 31, 2007.

- Total Proven plus Probable reserves increased by 289% per share, to 7,256 mboe, a relative increase of 921% since December 31, 2007.

- Achieved Q4-2008 average production of 1,794 boe/d, representing an increase of 367% per share as compared to Q4-2007 average production of 151 boe/d.

- Reserve Life Index of 7.3 years on a Total Proven basis and 11.1 years on a Total Proven plus Probable basis using December 31, 2008 reserves, and Q4-08 production of 1,794 boe/d.

- Total capital expenditures were $114.7 million, including changes in FDC total capital costs for the purpose of calculating FD&A costs were $126.2 million.

-- Achieved FD&A costs of $24.01/boe Proven and $17.94/boe Proven plus Probable (Including FDC).

-- Seaview completed three strategic acquisitions in 2008 adding 4,753 mboe of Total Proven plus Probable reserves, or 64% of the Total Proven plus Probable reserve additions in 2008.

-- Seaview's acquisitions and drilling success replaced production by 11.3 times on a Proven basis and 16.3 times on a Proven plus Probable basis.

- Seaview completed an active drilling program in 2008 which included drilling 18 wells (9.1 net) with an 89% success rate. Capital expenditures were $20.5 million directed towards drilling activity. Including changes to FDC, the total capital costs for the purpose of calculating F&D costs are $31.2 million. Compared to the unaudited financials reported on April 2, development capital has been restated from $24.1 million to $20.5 million to account for a revision in capital allocated to drilling activities that was related to acquisitions. As a result, the Company's F&D costs have been recalculated relative to previous disclosure.

-- Achieved F&D costs of $13.63/boe Proven and $12.08/boe Proven plus Probable (including FDC).

-- Seaview enjoyed a very successful drilling program accounting for 2,475 mboe or 36% of the Total Proven and Probable reserve additions in 2008.

-- Seaview's drilling success replaced production by 3.6 times on a Proven basis and 6.1 times on a Proven plus Probable basis.

Net asset value is calculated to be $2.19 per Class A share, using Total Proven plus Probable reserves value discounted at 10%, an increase of 75% relative to December 31, 2007.

The December 31, 2008, evaluation was prepared by Sproule utilizing the methodology and definitions as set out under NI 51-101. The reserves presented herein include the total Company's working interest reserves before deduction of royalties and exclude royalty interest reserves as at December 31, 2008.



Table 1 NI 51-101

Summary of Oil and Gas Reserves
as of December 31, 2008
Forecast Prices and Costs

Gross Reserves Net Reserves
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Light
and Light and
Medium Natural Medium Natural
Crude Heavy Gas Natural Crude Heavy Gas Natural
Oil Crude Liquids Gas Oil Crude Liquids Gas
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Mbbls Mbbls Mbbls Mmcf Mbbls Mbbls Mbbls Mmcf
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Proved
Developed
Producing 1107.0 0 50.5 16,702 968.4 0 31.3 12,134
Developed
Non-
Producing 51.9 0 1.9 3,409 48.8 0 1.2 2,428
Undeveloped 24.4 0 3.7 1,167 17.9 0 2.2 975
Total
Proved 1183.3 0 56.1 21,278 1035.1 0 34.7 15,537
Probable 503.5 0 39.2 11,567 431.4 0 25.2 8,259
Total Proved
plus
Probable 1686.9 0 95.3 32,845 1466.5 0 59.9 23,796


Table 2 NI 51-101

Summary of Net Present Values of Future Net Revenue
as of December 31, 2008
Forecast Prices and Costs


Unit Value Before
Before Future Income Tax Income Tax
Expenses and Discounted at Discounted at
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0% 5% 10% 15% 20% 10%/yr
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(M$) (M$) (M$) (M$) (M$) ($/boe)
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Proved
Developed
Producing 142,071 99,062 77,390 64,350 55,581 25.61
Developed
Non-Producing 20,811 15,546 12,344 10,316 8,886 27.15

Undeveloped 4,998 2,568 1,312 583 126 7.18
Total Proved 167,881 117,086 91,045 75,249 64,594 24.88
Probable 92,267 50,390 33,680 24,809 19,298 18.37
Total Proved
plus Probable 260,147 167,476 124,725 100,058 83,892 22.71


After Future Income Tax Expenses and Discounted at
----------------------------------------------------
0% 5% 10% 15% 20%
----------------------------------------------------
(M$) (M$) (M$) (M$) (M$)
----------------------------------------------------

Proved
Developed Producing 117,165 83,416 66,096 55,539 48,371
Developed Non-Producing 15,278 11,274 8,946 7,429 6,359
Undeveloped 3,740 1,811 804 216 -151
Total Proved 136,184 96,501 75,845 63,184 54,580
Probable 67,907 36,922 24,427 17,760 13,609
Total Proved plus Probable 204,091 133,424 100,272 80,944 68,189


Table 3 NI 51-101

Total Future Net Revenue Undiscounted
as of December 31, 2008
Forecast Prices and Costs

Operating Development
Revenue Royalties Costs Costs
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(M$) (M$) (M$) (M$)
---------------------------------------------
Total Proved
Reserves 329,371 62,522 87,036 5,219
Total Proved plus
Probable 519,760 101,481 136,245 12,982


Future Net
Revenue
Abandonment and Before Future Net
Reclamation Income Income Revenue After
Costs Taxes Taxes Income Taxes
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(M$) (M$) (M$) (M$)
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Total Proved
Reserves 6,707 167,881 31,697 136,184
Total Proved plus
Probable 8,896 260,147 56,057 204,091


Table 4 NI 51-101

Net Present Value of Future Net Revenue
By Production Group
as of December 31, 2008
Forecast Prices and Costs

Future Net Revenue Unit Value Before
Before Income Taxes and Income Taxes
(Discounted at 10%/Year) (Discounted at 10%/Year)
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(M$) ($/boe)
----------------------------------------------------

Proved
Light and Medium Crude Oil
(including solution gas
and associated by-products) 25,852 23.82
Heavy Crude Oil
(including solution gas
and associated by-products) 0 0
Natural Gas
(including associated by
products) 65,194 25.33
Proved plus Probable
Light and Medium Crude Oil
(including solution gas and
associated by-products) 34,405 22.29
Heavy Crude Oil
(including solution gas and
associated by-products) 0 0
Natural Gas
(including associated by products) 90,320 22.87


Table 5 NI 51-101

Summary of Pricing and Inflation Rate Assumptions
As of December 31, 2008 Forecast Prices and Costs

NATURAL
CRUDE OIL GAS
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Edmonton Cromer
WTI Par Price Medium Alberta
Crude 40 degrees 29.3 degrees AECO Gas
Year Oil API Crude Oil API Crude Oil Price
-------------------------------------------------------------
($US/Bbl) ($Cdn/Bbl) ($Cdn/Bbl) ($Cdn/mmbtu)
-------------------------------------------------------------
(1) (2) (3)
------------------------------------------------
Forecast
2009 53.72 65.35 58.16 6.82
2010 63.41 72.78 66.23 7.56
2011 69.53 79.95 72.76 7.84
2012 79.59 86.57 79.65 8.38
2013 92.01 94.97 87.38 9.20

Thereafter Various Escalation Rates


NATURAL GAS LIQUIDS
-------------------------------------------------------------
Pentanes Butanes
Plus FOB US/CAN
FOB Field Field Exchange
Year Gate Gate Inflation Rate
-------------------------------------------------------------
($Cdn/Bbl) ($Cdn/Bbl) (%) ($US/Cdn)
-------------------------------------------------------------
Forecast
2009 66.93 51.15 2.0 0.800
2010 74.54 54.25 2.0 0.850
2011 81.88 59.59 2.0 0.850
2012 88.66 64.53 2.0 0.900
2013 97.27 70.79 2.0 0.950

Thereafter Various Escalation Rates

Notes:

(1) West Texas Intermediate at Cushing Oklahoma 40 degrees API, 0.5%
sulphur

(2) Edmonton Light Sweet 40 degrees API, 0.3% sulphur

(3) Comer Medium (29.3æ degrees API Heavy stream)


Net Asset Value per Share Information
Based on Sproule Reserves Evaluation as at December 31, 2008

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Before Tax 10% Discount
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($M except share amounts) Proven Total
Developed Proven Total Proven
Producing Reserves plus Probable
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Value of Reserves 77,390 91,045 124,725
Undeveloped Land (22,000
acres at $200 per acre) 4,400 4,400 4,400
Estimated Net Debt as at
December 31, 2008 (19,418) (19,418) (19,418)
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Total Net Assets 62,372 76,027 109,707

Class A shares Outstanding
(MM) as at December 31, 2008 50.00 50.00 50.00
Estimated Net Asset Value per
Class A share $1.25 $1.52 $2.19
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Before Tax 15% Discount
----------------------------------------------------------------------------
($M except share amounts) Proven Total
Developed Proven Total Proven
Producing Reserves plus Probable
----------------------------------------------------------------------------
Value of Reserves 64,350 75,249 100,058
Undeveloped Land (22,000
acres at $200 per acre) 4,400 4,400 4,400
Estimated Net Debt as at
December 31, 2008 (19,418) (19,418) (19,418)
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Total Net Assets 49,332 60,231 85,040

Class A shares Outstanding
(MM) as at December 31, 2008 50.00 50.00 50.00
Estimated Net Asset Value per
Class A share $0.99 $1.20 $1.70
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COMMODITY PRICE RISK MANAGMENT

A key component to Seaview's balance sheet management is the Company's commodity price risk strategy. Seaview's risk management program is intended to reduce price volatility in order to maintain balance sheet strength, protect acquisition economics and finance ongoing capital expenditures.

- Seaview currently has approximately 810 boe/d (41% of estimated 2009 production) hedged for the remainder of 2009.

-- 4500 GJ/d of natural gas hedged in put and fixed contracts providing for a "net of cost" floor of $8.05 CDN per GJ which is an 89% premium to the current calendar AECO 2009 futures strip of $4.26 CDN per GJ.

-- 100 bbl/d of crude oil hedged in a fixed contract at $55.90 CDN per barrel.

- Current hedging program provides minimum gross revenue of $14.5 million for 2009 for the hedged volumes.

- As at March 31, 2009, the estimated market-to-market value of Seaview's derivatives contracts was $3.5 million.

- Seaview currently has the following natural gas and crude oil financial contracts outstanding:



Pricing Strike
Volume Point Price Premium Term
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Natural AECO
Gas Put 1,000 GJ/d Monthly $ 7.57/GJ $ 0.82/GJ April '08 - March '09
Natural AECO August '08 -
Gas Put 1,000 GJ/d Monthly $10.50/GJ $ 1.80/GJ December '09
Natural AECO November '08 -
Gas Put 1,500 GJ/d Monthly $ 8.50/GJ $ - December '09
Natural AECO April '09 -
Gas Put 1,000 GJ/d Monthly $ 9.00/GJ $ - December '09
Natural AECO March '09 -
gas swap 1,000 GJ/d Monthly $ 6.02/GJ $ - December '09
Natural AECO January '10 -
gas call 1,500 GJ/d Monthly $ - $ 7.00/GJ December '10
Crude oil WTI- March '09 -
swap 100 bbl/d Nymex CAD $55.90/bbl $ - December '09
Crude oil WTI- January '10 -
call 100 bbl/d Nymex CAD $ - $80.00/bbl December '10
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OUTLOOK; 2009 GUIDANCE

As a result of a very successful year in 2008, Seaview is currently well positioned to continue its growth strategy in 2009 despite the current challenging economic climate. Seaview now has the following characteristics:

- Total Proven reserves are 4,786 mboe, and Total Proven plus Probable reserves are 7,256 mboe, effective December 31, 2008, as evaluated by Sproule and Associates using National Instrument 51-101 reserve definitions.

- Reserve life index is 11.1 years based on Total Proven plus Probable reserves and Q4 2008 production of 1,794 boe/d.

- Net asset value is $2.19 and $1.70 per Class A share, using Total Proven plus Probable reserves and a before-tax 10-per-cent and 15-per-cent discount rate, respectively, including $4.4 million in value for undeveloped land.

- Expanded credit facility of $44 million representing a 30% increase relative to June 30, 2008. Based on year end 2008 net debt of $19.4 million, Seaview has $24.6 million of available credit capacity to pursue additional strategic opportunities.

- Forecast 2009 average daily production estimate of more than 2,000 boe/d compared to 2008 annual average production of 1,077 boe/d resulting in an estimated forecast production growth of 86% per share (based on 50 million Class A shares outstanding).

- Forecasted 2009 capital budget designed to be net debt neutral at the end of 2009 compared to year end 2008 based on reinvesting cash-flow plus the positive impact of drilling credits to be earned under the Government of Alberta's royalty incentive program announced on March 3, 2009.

- Incremental 440 boe/d net production coming on steam after April 1, 2009, qualifying for the maximum 5% royalty rate subject to certain limitations.

- Commodity hedging program providing for downside protection on 41% of 2009 forecasted average production generating minimum $14 million gross revenue for 2009.

- Drilling inventory of more than 80 locations, including over 60 prospects targeting multizone conventional prospects in Peace River Arch, and 20 potential locations targeting light oil in southeast Saskatchewan. Seaview's prospect inventory is not fully reflected in the company's independent reserve evaluation and therefore provides for significant long-term growth potential;

- 50.0 million Class A shares and 1.0 million Class B shares outstanding.

RELEASE OF 2008 FINANCIALS AND ANNUAL INFORMATION FORM

Seaview has filed its financial results for the year ended December 31, 2008 including the audited consolidated financial statements and related management's discussion and analysis ("MD&A"). The Annual Information Form which includes Seaview's reserves data and other oil and gas information for the year ended December 31, 2008 as mandated by National Instrument 51-101 Standards for Disclosure for Oil and Gas Activities of the Canadian Securities Administrators will be filed on or before April 30, 2009. These filings will be available in their entirety at www.seaviewenergy.com and www.sedar.com or by contacting the Company directly.

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.

Estimated values contained in this press release do not represent fair market value.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the Policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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