VGS Seismic Canada Inc.
TSX VENTURE : VGS

VGS Seismic Canada Inc.

November 27, 2007 08:31 ET

VGS Seismic Canada Announces $5 Million in Recent License Sales

CALGARY, ALBERTA--(Marketwire - Nov. 27, 2007) - VGS Seismic Canada Inc. ("VGS" or "the Company") (TSX VENTURE:VGS) is pleased to announce cash sales exceeding C$5.0 million of licenses to existing VGS-owned seismic data located in Western Canada. These sales took place in Q4 of 2007, up to the date of this news release. These cash license sales of existing VGS data, coupled with the recent announcement of an amended credit facility with its senior secured lender (subject to regulatory and shareholder approval), supports the VGS strategic growth plan. This includes building a high quality, state-of-the-art, 3-D seismic database in multi-zone industry areas where competition exists among oil and natural gas explorers and producers.

VGS' year-to-date cash license sales of more than C$11.5 million, coupled with a low-cost business model executed by a small team of senior-level professionals, has generated significant positive operating cash flow.

VGS works to be a best-in-class provider of non-exclusive 3-D seismic data creation projects in the Western Canada Sedimentary Basin, including topographically rigorous areas like Northeast British Columbia. VGS has established a seismic database with cash licensing sales that allow continued expansion of its 3-D seismic data library. The Company's growing 3-D seismic database allows oil and gas companies requiring 3-D seismic data to lower their finding costs by purchasing existing data or sharing the cost of creating new data with exclusive first use over an agreed period of time.

President and CEO Steven Vasey states, "Recent VGS license sales continue to demonstrate that at this early stage in the development of our company we have the right business model in place. I am pleased to report our return profile meets our expectation, and that we will continue to expand our 3-D seismic library. It is also important to note we have accomplished this with essentially the same personnel who started the firm in 2005, which has helped us manage our costs."

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 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 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) 263-6050