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

Seaview Energy Inc.

April 24, 2008 02:01 ET

Seaview Energy Inc. Releases Updated Reserves as at March 31, 2008 and Filing of Year End 2007 Financial and Operating Results

CALGARY, ALBERTA--(Marketwire - April 24, 2008) -

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 the Company's recent operations and corporate developments.

In the Company's first 6 months of operations, Seaview has enjoyed significant early success in executing its balanced strategy of acquiring, exploiting and exploring for high quality natural gas and light oil assets in Western Canada. Through a combination of two strategic corporate acquisitions and early exploration success, management has established Seaview as an emerging high-growth, junior exploration and production company.

The Company is pleased to report that as a result of the acquisition of 1332915 Alberta Ltd. ("1332915"), which closed on April 1, 2008, and a very successful first quarter 2008 drilling program, that the reserves evaluation of the Company, has increased materially relative to the year end December 31, 2007 results. The independent reserves evaluation was completed by Sproule and Associates Limited with an effective date of March 31, 2008, in a NI 51-101 compliant report "Evaluation of the P&NG Reserves of Seaview Energy Inc."

- Total Proven reserves have increased by 465% (297% per share) since December 31, 2007 to 2,320 MBoe.

- Total Proven plus Probable reserves increased by 363% (225% per share) during the same period to 3,291 MBoe.

- Production per share increased by 153% per share, compared to December 31, 2007 exit.

- Net asset value of $1.99 per Class A share, using a BTAX 10% discount rate increased 58% relative to December 31, 2007.

Seaview's management team has aggressively positioned the Company for solid future growth per share through the successful execution of the Company's business strategy.

Accomplishments in 2007 and First Quarter 2008:

- Successfully closed in October, 2007 the Company's Initial Public Offering with gross proceeds of $11,706,000 and concurrently the acquisition of 1276921 Alberta Ltd ("PrivateCo") establishing an initial core area in the Peace River Arch, focused in the Gordondale area.

- The 2007 capital program resulted in the completion of 7 (3.8 net) operations with an 87% success rate. The capital program included the drilling of 2 (1.5 net) wells with 100% success rate, the completion of 4 (1.8 net) wells previously drilled by PrivateCo and re-entering one (0.5 net) suspended well bore, resulting in 4 (1.8) net producing gas wells and 2 (1.5 net) potential gas wells.

- Closed the corporate acquisition of 1332915 on April 1, 2008 for total consideration of $27.4 million, comprised of the assumption of 1332915's net debt position and the issuance of 8,049,250 Class A shares of Seaview.

- The acquisition of 1332915 was highly accretive on all measures to Seaview, and significantly expanded the Company's reserves, production, cash flow, land and drilling inventory.

-- The assets acquired from 1332915 consist of high quality, natural gas and light oil focused properties in the Peace River Arch area with production of 550 boe/d (92% natural gas weighted) at the time of closing.

-- Expanded Seaview's land opportunity base to 71,333 gross acres (23,695 net acres) of land including 10,100 net acres of undeveloped land. In addition, Seaview has exposure to additional lands through several farm-in options totalling 31,786 gross acres (19,054 net acres) of undeveloped land.

-- Consolidated the Company's interests in the Pouce Coupe area, increasing Seaview's land position to approximately 3 net sections, increasing Seaview's long term development potential in the Montney-Doig resource play.

-- Significantly expanded the Company's drilling inventory to over 45 opportunities, offering a diversified portfolio of exploration, development and lower-risk optimization projects.

- On April 2, 2008, management upwardly revised the Company's 2008 production guidance to an average daily production estimate of more than 750 boe/d and 2008 production exit rate target to approximately 900 boe/d.

- The Company recently completed a very successful winter 2008 drilling program resulting in 6 (3.3 net) wells drilled, comprised of 5 (2.8 net) successful wells for an 85% drilling success rate.

-- Significant new pool discoveries were made in Clayhurst, Boundary Lake and Gordondale during the first quarter of 2008. In Clayhurst, the gas well (1.0 net) has been placed on production at current rates of 1.0 mmcf/d (167 boe/d net). The Boundary Lake discovery gas well (0.5 net) is currently on production at a restricted rate of 1.0 mmcf/d gross (83 boe/d net).

-- Seaview's Gordondale Kiskatinaw discovery (0.3 net) has been successfully completed and evaluated with test rates of 3.8 mmcf/d (190 boe/d net) at a flowing pressure of 1200 psi. Tie-in operations are underway with initial production rates of 2.0 - 2.5 mmcf/d (100 - 125 boe/d net) expected to be online by the third quarter of 2008.

-- Seaview drilled a multi-zone exploratory well (0.4 net) at Valhalla that tested at 200 bbls/d from a new light oil pool discovery. The well is expected to be brought on production post break-up and will be restricted to a regulatory allowable of 60 bbls/d. In addition to the new pool discovery, the Valhalla well encountered four other prospective pay zones leading to additional development potential as a result of this new discovery.

- Increase to current bank line of $13.5 million, anticipated to be increased to more than $16.5 million subject to final lender approval.

OUTLOOK; 2008 GUIDANCE

With the execution of two strategic corporate acquisitions, combined with a very successful 2008 winter drilling program, Seaview now has the following corporate characteristics:

- Total Proven reserves of 2,323 Mboe, and Total Proven plus Probable reserves of 3,291 Mboe, effective March 31, 2008, as evaluated by Sproule and Associates Limited utilizing NI 51-101 reserve definitions.

- Reserve life index of 9 years based on Total Proven plus Probable reserves.

- Total Proven reserves value of $47.9 million, based on before tax net present value at a 10% discount rate ("BTAX NPV10%"). Total Proven plus Probable reserves value of $62.9 million at BTAX NPV10%.

- Net asset value of $2.51 and $1.99 per Class A share, using a BTAX 5% and 10% discount rate respectively, including value of undeveloped land.

- Forecast 2008 average daily production estimate of more than 750 boe/d and 2008 production exit rate target to approximately 900 boe/d.

- Forecast annualized cash flow of $10.3 million ($0.38 per Class A share), assuming 2008 average AECO gas price of $8.85/GJ which represents a 10% discount to current 2008 calendar year strip prices.

- A debt to cash flow ratio of 1.0 times (based on current estimated net debt of $10.5 million and the aforementioned cash flow estimate).

- Current bank line of $13.5 million, is anticipated to be increased to more than $16.5 million subject to final lender approval.

- 27.12 million Class A shares and 1.054 million Class B shares outstanding.

RESERVES

Seaview has a reserve committee 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 Company has filed its Annual Information Form which includes Seaview's reserves data and other oil and gas information for the year ended December 31, 2007 as mandated by National Instrument 51-101 Standards for Disclosure for Oil and Gas Activities of the Canadian Securities Administrators.

Subsequent to year end, the Company successfully closed the corporate acquisition of 1332915 and completed a successful drilling program in the first quarter of 2008. As a result, the reserves and value of the Company have changed materially relative to year end and therefore an update, as follows, is provided to account for the increases from year end 2007.

The March 31, 2008, evaluation was prepared by Sproule Associated Limited ("Sproule") utilizing the methodology and definitions as set out under National Instrument 51-101 ("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 March 31, 2008.



Table 1 NI 51-101

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

Gross Reserves Net Reserves
----------------------------- --------------------------------
Light
and Light and
Medium Natural Medium Natural
Crude Heavy Gas Natural Crude Heavy Gas Natural
Oil Crude Liquids Gas Oil Crude Liquids Gas
------ ----- ------- ------- --------- ----- ------- --------
Mbbls Mbbls Mbbls Mmcf Mbbls Mbbls Mbbls Mmcf
------ ----- ------- ------- --------- ----- ------- --------
Proved
Developed
Producing 70.3 0 52.4 11,225 65.1 0 37.8 8,732
Developed
Non-Producing 53.6 0 1.2 1,369 47.0 0 0.8 1,006
Undeveloped 19.9 0 0.9 150 17.2 0 0.6 106
Total Proved 143.8 0 54.6 12,745 129.2 0 39.2 9,845
Probable 134.1 0 18.3 4,894 118.3 0 13.2 3,815
Total Proved
plus Probable 278.0 0 72.9 17,639 247.5 0 52.4 13,660


Table 2 NI 51-101

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

Unit Value
Before
Income Tax
Before Future Income Tax Expenses and Discounted
Discounted at at
---------------------------------------- -----------
0% 5% 10% 15% 20% 10%/year
-------- ------- ------- ------- ------- -----------
(M$) (M$) (M$) (M$) (M$) ($/boe)
-------- ------- ------- ------- ------- -----------
Proved
Developed Producing 61,740 47,801 39,755 34,470 30,695 25.51
Developed Non-Producing 9,028 8,082 7,305 6,659 6,114 33.90

Undeveloped 1,161 992 854 738 641 24.04
Total Proved 71,928 56,875 47,915 41,867 37,450 26.48
Probable 31,514 20,275 15,055 12,024 10,032 19.62
Total Proved plus
Probable 103,442 77,150 62,969 53,892 47,482 24.44


After Future Income Tax Expenses and Discounted at
---------------------------------------------------
0% 5% 10% 15% 20%
----------- ------- ------- ------- -------
(M$) (M$) (M$) (M$) (M$)
----------- ------- ------- ------- -------
Proved
Developed Producing 46,671 36,170 30,106 26,125 23,283
Developed Non-Producing 6,494 5,766 5,174 4,684 4,273
Undeveloped 834 691 576 481 402
Total Proved 53,999 42,627 35,586 31,290 27,958
Probable 23,334 14,888 10,965 8,688 7,192
Total Proved plus
Probable 77,333 57,514 46,821 39,978 35,150


Table 3 NI 51-101

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

Abandon- Future
ment Net Future
and Revenue Net
Operat- Develop- Reclam- Before Revenue
ing ment ation Income Income After
Revenue Royalties Costs Costs Costs Taxes Taxes Income
Taxes
------- --------- ------- ------- -------- ------- ------ --------
(M$) (M$) (M$) (M$) (M$) (M$) (M$) (M$)
------- --------- ------- ------- -------- ------- ------ --------
Total
Proved
Reserves 128,386 25,553 28,361 1,754 790 71,928 17,929 53,999
Total
Proved
plus
Probable 186,257 36,370 42,455 3,007 983 103,442 26,109 77,333


Table 4 NI 51-101

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


Future Net
Revenue Before Unit Value Before
Income Taxes Income Taxes
and (Discounted (Discounted at
at 10%/Year) 10%/Year)
---------------- ------------------
(M$) ($/boe)
---------------- ------------------
Proved
Light and Medium Crude Oil
(including solution gas and associated
by-products) 5,509 37.98
Heavy Crude Oil
(including solution gas and associated
by-products) 0 0
Natural Gas
(including associated by products) 42,406 25.49
Proved plus Probable
Light and Medium Crude Oil
(including solution gas and associated
by-products) 10,433 37.73
Heavy Crude Oil
(including solution gas and associated
by-products) 0 0
Natural Gas
(including associated by products) 52,536 22.85


Pricing Assumptions - Forecast Prices and Costs

The Reserves Report used the following pricing, exchange rate and inflation
rate assumptions as of March 31, 2008 in estimating Seaview's reserves data
using forecast prices and costs.

NATURAL
CRUDE OIL GAS
----------------------------------------- ------------
Edmonton Cromer
Par Price Medium
40 29.3
WTI degrees degrees Alberta
Crude API API AECO Gas
Year Oil Crude Oil Crude Oil Price
---------- --------- ---------- ---------- ------------
($US/Bbl) ($Cdn/Bbl) ($Cdn/Bbl) ($Cdn/mmbtu)
--------- ---------- ---------- ------------
(1) (2) (3)
--------- ---------- ----------
Forecast
2008 100.75 99.77 85.39 8.44
2009 98.32 96.88 83.32 8.06
2010 96.94 95.48 82.11 7.63
2011 83.89 82.41 70.87 7.46
2012 81.18 79.68 68.53 7.41
2013 82.81 81.28 69.90 7.58
2014 84.46 82.92 71.31 7.76
2015 86.15 84.58 72.74 7.94
2016 87.87 86.28 74.20 8.12
2017 89.63 88.02 75.69 8.31
2018 91.42 89.78 77.21 8.50

Thereafter +2.0%/yr +2.0%/yr +2.0%/yr +2.0%/yr


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
2008 101.71 79.02 0.2 0.999
2009 99.22 72.21 2.0 1.000
2010 97.79 71.17 2.0 1.000
2011 84.40 61.42 2.0 1.000
2012 81.61 59.39 2.0 1.000
2013 83.25 60.58 2.0 1.000
2014 84.92 61.80 2.0 1.000
2015 86.62 63.04 2.0 1.000
2016 88.37 64.31 2.0 1.000
2017 90.14 65.60 2.0 1.000
2018 91.95 66.92 2.0 1.000

Thereafter +2.0%/yr +2.0%/yr 2.0 1.000

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 (29.3? degrees API Heavy stream)


Net Asset Value per Share Information

Based on Sproule Reserves Evaluation as at March 31, 2008

----------------------------------------------------------------------------
($M except share amounts) Before Tax Before Tax
5% Discount 5% Discount
----------------------------------------------------------------------------
Value of Total Proven plus Probable Reserves 77,150 62,969
Undeveloped Land (10,100 acres at $150 per acre) 1,515 1,515
Estimated Net Debt as at April 1, 2008 (10,500) (10,500)
----------------------------------------------------------------------------
Total Net Assets 68,165 53,984

Class A shares Outstanding (MM) as at April 1,
2008 27.12 27.12
Estimated Net Asset Value per Class A share $2.51 $1.99
----------------------------------------------------------------------------


FILING OF 2007 FINANCIALS AND ANNUAL INFORMATION FORM

Seaview announces that it has filed its financial results for the year ended December 31, 2007 including the audited consolidated financial statements and related management's discussion and analysis ("MD&A") for the year ended December 31, 2007.

In addition, the Company has filed its Annual Information Form which includes Seaview's reserves data and other oil and gas information for the year ended December 31, 2007 as mandated by National Instrument 51-101 Standards for Disclosure for Oil and Gas Activities of the Canadian Securities Administrators. These filings are available in their entirety at www.seaviewenergy.com and www.sedar.com or by contacting the Company directly.

ANNUAL MEETING

Seaview Annual Meeting is scheduled for 11:00 am on Thursday, June 12, 2008 in the Viking A Room at the Calgary Petroleum Club, 319 5th Avenue SW, Calgary, Alberta.

As referred to above, to view Seaview's audited consolidated financial statements and related MD&A for the periods ended December 31, 2007 and December 31, 2006 please visit our web site at www.seaviewenergy.com or www.sedar.com. To the extent investors do not have access to the internet, copies of the audited financials and related MD&A can be obtained on request without charge by contacting Seaview at (403) 450-3713 or at Suite 1500, 444-5th Ave SW Calgary, Alberta, T2P 2T8.

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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