VGS Seismic Canada Inc.
TSX VENTURE : VGS

VGS Seismic Canada Inc.

April 25, 2008 15:00 ET

VGS Seismic Canada Adds to Northeast B.C. 3-D Seismic Database

CALGARY, ALBERTA--(Marketwire - April 25, 2008) - VGS Seismic Canada Inc., ("VGS" or "the Company") (TSX VENTURE:VGS) has added to its Northeast British Columbia (NEBC) seismic library by completing a non-monetary exchange contiguous to its existing Fireweed and Inga surveys. The size of the newly acquired survey is 44 square kilometers, making the entire set of contiguous data 298 square kilometers in size. This data enhances the 100% owned VGS seismic data in an area known for its multi-zone natural gas potential.

VGS takes the view that purchasing a license to VGS's existing data helps clients reduce risk and lower finding costs for its oil and gas company clients, and that the topographically rigorous areas of NEBC are likely to have a long shelf life.

The Company's current 3-D library covers 5,045 square kilometres involving a minimal number of partners and revenue share obligations. The accumulated capital expenditure to March 31, 2008 for VGS data is $75 million and the VGS component of the total historical amount spent to March 31, 2008 is $43 million. With a disciplined approach of pursuing 100% title to the data added to its library, the Company plans to generate a seismic annuity stream through the sales of licenses to long-life, large-scale, 3-D seismic surveys such as the NEBC surveys in the Fireweed/Inga area. The Company manages operating costs effectively by not engaging directly in field operational activities and by executing its strategy with a small staff of proven, senior-level professionals.

President and CEO Steven Vasey comments, "Our library continues to expand in areas where we see immediate opportunity for cash license sales. The newest additions to our library help us tighten the 3-D seismic ownership position in our central Alberta data complex and more importantly adds to our core asset base in Northeast British Columbia.

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: seismic surveys, data sales, revenue, cash-flow, seismic annuity streams, 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 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 ability of VGS to secure participants to conduct seismic 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 www.sedar.com. 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.
    Scott Milroy
    Chief Financial Officer
    (403) 984-5306
    or
    VGS Seismic Canada Inc.
    Steve Vasey
    Chief Executive Officer
    (403) 984-5302