VGS Seismic Canada Inc.

VGS Seismic Canada Inc.

July 08, 2008 19:00 ET

VGS Distributes Information Concerning Director

CALGARY, ALBERTA--(Marketwire - July 8, 2008) - VGS Seismic Canada Inc. ("VGS") (TSX VENTURE:VGS) has been made aware that the Alberta Securities Commission ("ASC") issued a Notice of Hearing to the management team and directors of High Plains Energy Inc. (now Action Energy Inc. pursuant to a plan of arrangement). One of the directors of High Plains Energy Inc., Mr. Dawson, is a director of VGS. The Notice of Hearing and the ASC allegations contained therein are not in respect of the actions of Mr. Dawson while a director of VGS and they have no bearing on VGS or its business. The ASC alleges that during the period from July 2005 to January 2006 management of High Plains Energy Inc. participated in the issuance of press releases which materially overstated High Plains Energy Inc.'s oil production rates. Additionally, the ASC alleges that on becoming aware of the overstatement in February 2006 the directors of High Plains Energy Inc. participated in the issuance of further press releases in February and March of 2006 which were misleading in that they did not adequately disclose the material overstatements. If these allegations are proven, one of the possible sanctions that may be imposed by the ASC is the requirement that Mr. Dawson resign as a director of corporations of which he serves on the board, including VGS. On June 13, 2008 the ASC set February 17, 2009 to commence the hearing of the allegations. As of the date hereof the allegations are unproven. Mr. Dawson is disputing and defending the ASC allegations.

Based in Calgary, Alberta, VGS Seismic Canada Inc. identifies, creates and markets digital seismic data for licensing to oil and natural gas exploration companies. To date, the Corporation's growing data library is concentrated in British Columbia, Southern Alberta and Eastern Saskatchewan. VGS shares trade on the TSX Venture Exchange under the symbol VGS.

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

Contact Information

  • VGS Seismic Canada Inc.
    Scott Milroy
    Chief Financial Officer
    (403) 984-5306