VGS Seismic Canada Inc.

VGS Seismic Canada Inc.

February 04, 2008 14:32 ET

VGS Expands 3-D Seismic Database by More Than 30%

CALGARY, ALBERTA--(Marketwire - Feb. 4, 2008) - VGS Seismic Canada Inc. ("VGS" or "the Company") (TSX VENTURE:VGS) is pleased to report significant progress in its data library growth program with the addition of 1,243 square kilometres of seismic data to date in Q1 2008. The total capital expenditure for both data creation and secondary purchase is approximately $14.8 million, of which VGS is contributing $8.3 million. This addition will increase the total size of VGS' data library to 5,017 square kilometres of high fidelity, recent-vintage, 3-D seismic data in the Western Canadian Sedimentary Basin. The Company also owns a 2-D seismic database consisting of 5,002 linear kilometres to complement its core 3-D assets.

VGS currently has available for sale seismic data representing a total cost of $60.0 million, of which $34.0 million is VGS' share of the capital expenditure. Based on completed contracts and work in progress, VGS will own seismic data having a total cost of $74.8 million at the completion of field operations for the 2007/2008 winter campaign. The Company will have funded $42.3 million, while the remaining $32.5 million represents initial license sales from its oil and gas company clients.

In building its library, VGS continues to focus on its strategic goal of acquiring 100% ownership of seismic data that will be licensed for cash, creating an annuity stream for the Company. The Company has been able to achieve its significant growth without increasing the number of employees, having entered and exited 2007 with the same employee count.

President and Chief Executive Officer Steven Vasey comments, "With its current seismic database, VGS is well positioned for continued growth through future license sales. Considering current economic challenges, we are pleased at the rate of data license sales. I am proud to report we own more than 5,000 square kilometres of 3-D seismic data after two and half years of operation."

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.

Forward-Looking Information

Certain information contained in this press release, including information and statements which may contain words such as "could", "plans", "should", "anticipates", "expects", "believes", "will", "forecasts", "budget" and similar expressions and statements relating to matters that are not historical facts are forward-looking information including, but not limited to, information related to: future data sales, revenue, cash-flow, expenditures, drilling activity levels, oil and gas prices and demand, expansion and other development trends of the oil and gas industry; business strategy, expansion and growth of VGS's business, data and operations, including VGS's market share and other such matters. This forward-looking information is based on certain material factors, assumptions and analyses made by VGS in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances.
However, whether actual results, performance or achievements will conform with VGS's conclusions, forecasts, projections, expectations and predictions expressed or implied by the forward-looking information in this press release is subject to known and unknown risks and uncertainties which could cause actual results to differ materially from VGS's conclusions, forecasts, projections, expectations and predictions expressed or implied by the forward-looking information in this press release, including: fluctuations in the price and demand for oil and gas; fluctuations in the level of oil and gas exploration and development activities; fluctuations in the demand for VGS's services; the ability of VGS to raise capital and to meet its debt service requirements; the ability of VGS's clients to raise capital for seismic data and surveys; the existence of competitors; technological changes and developments in the oil and gas industry; the effects of weather conditions on operations and facilities; the seasonal impact on conducting seismic surveys; the ability of VGS to participate financially in large seismic surveys due to increases in costs of conducting such seismic surveys; the ability of VGS to protect its proprietary rights to the seismic data; the existence of operating risks inherent in VGS's services; the lack of availability of qualified personnel or management; VGS's dependence on qualified seismic acquisition contractors to conduct seismic surveys; general economic, market or business conditions, including stock market volatility; changes in laws or regulations, including taxation and environmental regulations; other unforeseen conditions which could impact the use of services supplied by VGS and those risks and uncertainties described in VGS's continuous disclosure filings, including those referred to in the Corporation's Management's Discussion and Analysis for the most recently completed financial year end, which may be found on SEDAR at If any of the above risks or uncertainties materialize, or if the material factors, assumptions and analyses applied by VGS are incorrect, actual results may vary materially from those expected in the forward looking information in this press release.

Consequently, all of the forward-looking information contained in this press release is qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by VGS, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that actual results or developments will have the expected consequences to, or effects on, VGS or its business operations. Except as required by law, VGS assumes no obligation to update publicly any such forward-looking information, whether as a result of new information, future events or otherwise. Readers should not place undue reliance on forward-looking information.

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

Contact Information

  • VGS Seismic Canada Inc.
    Steven Vasey
    President & CEO
    (403) 263-6050
    VGS Seismic Canada Inc.
    Scott Milroy
    Chief Financial Officer
    (403) 263-6050