VGS Seismic Canada Inc.

VGS Seismic Canada Inc.

March 20, 2008 09:00 ET

VGS Seismic Canada Completes Winter 2007-2008 Seismic Creation Program in Northeast B.C.

CALGARY, ALBERTA--(Marketwire - March 20, 2008) - VGS Seismic Canada Inc., ("VGS" or "the Company") (TSX VENTURE:VGS) has completed its Northeast British Columbia (NEBC) seismic survey complementing the Company's data creation and ownership growth strategy. The size of the newly completed survey spans more than 190 square kilometres in an area known for its multi-zone natural gas potential. On completion of the proprietary period VGS will actively market licenses to this 3-D seismic data to its oil and gas exploration clients. Purchasing a license to VGS's existing data helps clients reduce risk and lower finding costs.

The topographically rigorous areas of NEBC strategically support VGS's data creation goal of owning large-scale seismic surveys that are likely to have a long shelf life. The Company is currently pursuing provincial approvals to conduct seismic surveys in two areas of NEBC in the upcoming seismic season.

VGS's current 3-D library covers 5,017 square kilometres gross (4,852 square kilometres net), involving a minimal number of partners and revenue share obligations. 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 next one planned for creation in NEBC. In addition to data creation, VGS also builds its data library through purchases and trades of datasets. 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, "We are proud of the operational effort to create new data over the last seismic season, and our operations group has successfully supported the field effort to complete the program on time and under budget. This survey is a significant investment in our data library, and allows VGS to continue actively marketing new 3-D seismic licenses."

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 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