SBX' Acquires Remaining 50 percent in Sana Navigation

SeaBird Exploration Limited (BVI) (SBX) has acquired the remaining 50 percent ownership in the Joint Venture entity Sana Navigation Company Limited (Sana) which charters the M/V Northern Explorer from Russian owners on a long term bareboat charter. The purchase price is $25.5m. The Joint Venture is now terminated in all respects.

The acquisition of the 50% interest in Sana includes the long term bareboat contract, the liquid cash, other current assets, and fixed assets including the seismic equipment, and all future earnings. After the acquisition, SeaBird owns and controls 100% of Sana and its present and future cash flows. Sana has exercised an option to buy the M/V Northern Explorer in accordance with the charter terms with transfer of title to SeaBird expected to be in 2006 and subsequently the vessel will be fully reflected in the balance sheet assets of SeaBird. The M/V Northern Explorer is on contract to TGS until October 2006 under a contract entered into in 2004. SeaBird has experienced considerable interest for the vessel thereafter and is currently evaluating further employment opportunities in line with current market rates.