Seabird Explorat — Interim / Quarterly Report 2010

May 5, 2010

Seabird Exploration Group First Quarter 2010

Highlights First Quarter 2010

·           For the first time since Q4 2008, SeaBird is pleased to present an

EBITDA of USD 20.8 million resulting in a net consolidated profit after tax for

this quarter of USD 5.7 million.

·           Hugin Explorer and Kondor Explorer continued the successful Ocean

Bottom Node ("OBN") operation in Nigeria for Chevron with higher utilization and

revenue than expected.

·           OBN operation in Nigeria completed 20 April 2010 and both vessels

are mobilizing to the North Sea for an expected contract currently under

negotiation, in direct continuation from the previous survey.

·           Several 2D/3D contracts awarded during Q1 2010, and the month of

April, giving contractual backlog including client options for most of the

vessels through Q3 and into Q4 2010.

key financial performance figures

For comparisons of income and expenses between 2010 and 2009, it must be noted

that changes in the operating performance of the OBN activity and the market

rates for 2D have affected the revenue for the SeaBird Group considerably.

The OBN operation with Hugin Explorer did not perform as expected on its first

survey during Q1 2009 and incurred significant losses. During Q1 2010, however,

the OBN operation with Hugin Explorer, and Kondor Explorer as source vessel, has

been very successful and generated revenues in excess of expectations,

contributing to more than half of the SeaBird Group's revenue.

The revenue levels for the 2D fleet were still quite high during Q1 and into Q2

2009 in particular for the two vessels working for ONGC in India. After reaching

their lowest levels in Q2-Q4 2009, revenue levels in 2010 for 2D are still

considerably below earlier levels from 2008 and beginning of 2009, but are

improving evidenced by contract rates that the company has achieved.

Consequently, and despite a satisfactory utilization of our 2D fleet,

contribution to the operating result from this part of SeaBird's activities was

low in Q1 2010.

Consolidated revenues for the SeaBird Group increased to USD 66.0 million in Q1

2010 from USD 41.1 million in Q4 2009, mainly due to the full utilization of the

Hugin Explorer and the Kondor Explorer, and the high quality performance shown

throughout the OBN survey for Chevron in Nigeria from December 2009 to April

2010. Also the 2D fleet has contributed more to the revenue this quarter than

the previous.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") were

positive at USD 20.8 million in Q1 2010 against a negative EBITDA of USD 0.7

million in Q4 2009. Operating expenses increased to USD 39.7 million in Q1 2010

from USD 36.3 million in Q4 2009, mainly due to higher cost of our OBN operation

in Nigeria than during the mobilization period October-November 2009 from Gulf

of Mexico.

Selling, general and administrative ("SG&A") expenses are unchanged at USD 5.9

million in Q1 2010 compared to Q4 2009.

Depreciation is slightly up from previous quarters at USD 11.6 million, mainly

due to depreciation of classification and dry-docking of 3 vessels and

investments in 250 more nodes, all capitalized in Q4 2009, and amortization of

USD 0.4 million for multi-client library.

Interest expense is continuing on the same level in Q1 2010 at USD 3.1 million,

as in Q3 and Q4 2009. Other financial income for the quarter of USD 2.2 million

refers to unrealized loss on exchange, mainly on the NOK 478 million bond loans

outstanding.

The income tax of USD 2.7 million in Q1 2010 refers mainly to withholding tax in

various jurisdictions around the world where the SeaBird vessels have been

operating. Increase from previous quarters refers mainly to the withholding tax

applicable for our OBN operation in Nigeria.

Q1 2010 net profit after tax was USD 5.7 million compared to a loss in Q4 2009

of USD 16.8 million and a loss in Q1 2009 of USD 15.3 million.

Capital expenditure was USD 0.7 million during Q1 2010, mainly referring to some

capital cost for vessel maintenance.

A weakening of USD against NOK and Euro has in general a negative impact on the

operating expenses, interest expenses and gross debt as SeaBird has significant

costs in other currencies than USD and bond loans of a total of NOK 478 million.

operational highlights Q1 2010

The vessel utilization for all seismic vessels operated by SeaBird for Q1 2010

was 76% compared to 80% in Q4 2009 and 55% in Q3 2009.

Following the increased number of awarded contracts to SeaBird in the 2D/3D

segment and mobilization of all vessels back to work during Q4 2009, utilization

of the 2 D/3D vessels in Q1 2010 was 74 %. While Harrier Explorer, Northern

Explorer, Hawk Explorer, Aquila Explorer and Osprey Explorer achieved

utilization between 72% and 100%, Munin Explorer and Geo Mariner (shallow water

3D) had utilization of 50% and 44% respectively, due to Munin Explorer being

idle from 18 February to 9 April 2010, and Geo Mariner from 15 February 2010.

Several new contracts were awarded to SeaBird during April 2010.

Aquila Explorer was awarded two additional surveys in South East Asia and one in

Australia with a combined total of approximately 4,500 km. This will result in

the Aquila Explorer being engaged continuously with the exception of 3-4 weeks

dry-docking, through to end October 2010.

Geo Mariner has been awarded a contract for a 3D survey of approximately 350

sqkm in Cameroon commencing end April after having been idle part of Q1 2010.

With the additional contract awarded to Northern Explorer in Indonesia lasting

through October, Aquila Explorer and Munin Explorer (including options) on

contracts through October, Munin Explorer and Hawk Explorer with good prospects

in sight after their firm period through May and finally Harrier Explorer on

long term to PGS to September 2011, SeaBird is fairly satisfied with the overall

contract backlog of the 2D fleet. Furthermore there are indications of an

increased demand for 2D seismic and Source services over the coming months.

Hugin Explorer, with Kondor Explorer as source vessel, commenced its Nigerian

OBN operation end of November 2009. The survey has progressed very

satisfactorily and the contract was completed on 20 April, about one month ahead

of schedule. Both vessels are presently under mobilization to the North Sea with

an ETA Aberdeen about 10 May. SeaBird is in the final stage of negotiating a new

contract, and believes this can be concluded in time for direct continuation of

the mobilization to the North Sea. Both Hugin Explorer deploying, retrieving and

maintaining the nodes and the accompanying source vessel Kondor Explorer have

performed continuously throughout Q1 2010 with minimum downtime and high

efficiency.

SeaBird is actively pursuing further employments for the OBN operation with

Hugin Explorer and Kondor Explorer from August/September 2010, following the

completion of the upcoming contract currently under negotiation. A dialog with

one of the major oil companies is due to commence shortly for a new OBN survey

in West Africa.

Liquidity and Financing

At 31 March 2010, cash and cash equivalents amounted to USD 15.2 million,

compared to USD 14.5 million at the end of 2009, and USD 17.6 million (thereof

USD 9.2 million restricted) at the end of Q1 2009.

Net cash flow from operating activities for Q1 2010 was USD 12.7 million,

against negative USD 12.8 million for Q4 2009, and positive USD 6.8 million for

Q1 2009. The increased net cash flow in Q1 2010 refers mainly to increased

revenues and adjustment in trade receivables and payables.

During Q1 2010 instalments of USD 7.5 million were paid to banks and USD 0.7

million on the lease of Hawk Explorer. Net interest-bearing debt decreased to

USD 156.1 million end of Q1 2010 from USD 168.2 million end of Q4 2009.

Due to the weak result in Q3 and Q4 2009 SeaBird was in breach of the loan

agreements, the Net Debt/EBITDA ratio covenant. Waivers have been received from

the banks.

There are no further significant committed investments, except normal

maintenance type expenditures and certain equipment upgrades for our present

fleet of vessels. However, the Management and the Board of Directors are

presently evaluating an expansion of the Ocean Bottom Node operation through

investing in a second OBN crew similar to the Hugin Explorer/Kondor Explorer

operation.

Outlook

The 2D market continues to recover, with a reasonable volume in tenders received

in Q1 2010, and supplemented by chartering out 2D vessels as source vessels to

service Wide Azimuth contracts for other seismic contractors. Far East remains a

good contract area for the Aquila Explorer and Northern Explorer, with constant

work now booked up to their respective dry-docking periods and thereafter

through to Q4 2010. For the vessels primarily working in the 2D sector SeaBird

is pleased to have received close to 40,000 line kilometers of work by early

April 2010. Some rates for these contracts are based on late 2009 submissions

and thus are reflecting lower revenues, but for the later contracts the income

is improving.

We continue to be optimistic for the 2D sector recovering in second half of

2010, and for rates to rise, although we do not expect in the short term to see

again the levels of 2008 and early 2009. Oil prices have increased even further

than was expected in our last report, and there is now great enthusiasm when

discussing E&P expenditures with the oil companies.

We are even more optimistic about the future OBN sector, where the increased

interest in this acquisition technique is opening further opportunities for the

future, in new surveys, repeat surveys, and potential longer term contract

employment. Due to the expected 30 days mobilization period for the Hugin

Explorer and Kondor Explorer to a new contract during Q2 2010, the EBITDA will

be reduced compared to Q1 2010.

As mentioned previously, we have been preparing the investment case for a second

OBN operation, and this will come to a final plan shortly.

The Board of Directors and Chief Executive Officer

SeaBird Exploration PLC

4 May 2010

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

[HUG#1411826]