VGS Seismic Canada Inc.

VGS Seismic Canada Inc.

November 27, 2007 08:30 ET

VGS Seismic Canada Launches $10 Million Project in Northeast B.C.

CALGARY, ALBERTA--(Marketwire - Nov. 27, 2007) - VGS Seismic Canada Inc., ("VGS" or "the Company") (TSX VENTURE:VGS) is pleased to announce its plans to create a new seismic survey in Northeast British Columbia that complements the company's growth strategy. The contracted survey size spans more than 190 square kilometres in an area known for its multi-zone natural gas potential, and represents an initial shared investment of approximately $10 million.

The recording parameters selected for this survey typify the high quality, state-of-the-art, 3-D seismic surveys VGS pursues in multi-zone areas where there is industry competition. The topographically rigorous character of this Northeast B.C. area, coupled with the high fidelity field parameters, are aligned with VGS' focus on seismic data that is likely to have a long shelf life. This is one of the ways that VGS works to be a best-in-class provider of non-exclusive 3-D seismic data creation projects.

VGS' current 3-D library covers 3,743 square kilometres gross (3,581 square kilometres net), indicating a minimal number of partners and revenue share obligations. With a disciplined approach of pursuing 100% title to the data added to its library, VGS believes it will generate a seismic annuity stream through the license sales of long-life, large-scale 3-D seismic surveys such as the one to be created in Northeast B.C. In addition to data creation, VGS also builds on its data library through purchases and trades of datasets. The company is able to execute its strategy with a small staff of senior-level professionals.

President and CEO Steven Vasey comments, "This new survey to be created in Northeast B.C. is a significant investment in the strategic growth of VGS' data library. It is expected to have a long-term impact in terms of license sales in the future, while our short-term growth is driven by the sales of licenses to our existing seismic data."

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 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