CVU.B Seaview Energy Inc. Class B

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A
VIOLATION OF U.S. SECURITIES LAWS.


Seaview Energy Inc. ("Seaview" or the "Company") (TSX VENTURE:CVU.A) (TSX
VENTURE:CVU.B) is pleased to announce that the Company has entered into a
strategic farm-in agreement within the Wapiti area targeting a Cardium light oil
resource play.


The farm-in agreement significantly expands the Company's position in the Wapiti
Cardium light oil play and is a continuation of Seaview's business plan to focus
on high quality, large oil in place resource plays. With the Company's ongoing
operations and recent exploration success in Wapiti, this transaction further
expands the scalability and inventory of repeatable drilling locations.


STRATEGIC MERITS OF THE FARM-IN AGREEMENT

The agreement provides Seaview with rights to farm-in on 22 sections of land
within the Wapiti Cardium light oil resource play fairway. Under the terms of
the farm-in agreement, Seaview will pay 100% of all the farmor's capital costs
to drill, complete and tie-in with the ability to earn all of the farmor's
interest subject to an industry standard royalty on production.


Seaview's initial commitment is to drill two earning wells, with subsequent
rolling options to earn the remainder of the farm-in lands. Contingent upon
Seaview's sole option to drilling all wells under the option phase, the Company
has exposure to earn up to 10.5 net sections of land with Cardium oil and
natural gas rights.


The location of the farm-in lands represents a continuation of Seaview's
strategy to accumulate a large, continuous land position targeting high quality,
light oil in the Wapiti Cardium fairway. Execution of this agreement further
strengthens Seaview's presence in the area by providing a contiguous land block
which will provide an excellent operational fit with Seaview's current producing
assets in Wapiti.


This strategic farm-in agreement substantially increases Seaview's opportunity
base within the prospective Wapiti Cardium light oil resource area. Including
the option lands under this agreement, Seaview's opportunity base in Wapiti will
have the following characteristics:




--  Exposure to earn up to 41 sections (20.8 net) of prospective Cardium
    light oil rights; 
--  Significant increase in gross potential locations to over 164 (83 net)
    horizontal development locations; and 
--  Improved operational focus by consolidating a large contiguous land
    position directly offsetting the Company's recent successful Cardium
    exploration activity. 


Seaview believes the Wapiti Cardium light oil resource play contains the
essential elements of a profitable resource play including: 

--  Large areal extent, supported by numerous logs and tests validating the
    reservoir continuity; 
--  Contiguous resource potential including an average of 10 m of vertical
    pay exceeding 6% porosity providing for significant accumulation of
    light oil, and a high degree of repeatability; 
--  Ability to improve drilling and completion techniques leading to lower
    capital costs and higher productivity over time; and 
--  Scalable project targeting high quality light oil (41 degree API). 



Continued success in developing the Wapiti Cardium light oil play could add
significant incremental upside to Seaview's current asset base. The Company will
therefore continue to focus on proving the commerciality of this play throughout
the balance of 2010.


EXPANDED 2010 CAPITAL BUDGET

Seaview's board of directors has approved an increase to the 2010 capital budget
to $28.5 million, up from previous guidance of $22.2 million. The incremental
capital spending will be dedicated to funding the two additional drilling
commitments under the farm-in agreement. The expanded capital program will not
materially impact production guidance for 2010 given the timing of the expanded
drilling program. Seaview is preparing to drill 3 Wapiti Cardium horizontal
wells (1.6 net) in Q4 2010 with initial production expected for Q1 2011.


As a result of the exploration success at Wapiti, the 2010 capital budget will
now include drilling a total of 6 horizontal wells (4.5 net) to evaluate the
long term growth potential of the Wapiti Cardium project.


In addition to the 3 Cardium locations, Seaview is planning to drill up to 3
(1.5 net) multi-zone gas targets in the Peace River Arch, as well as complete
the equip and tie-in of 2 gas wells with estimated behind pipe production
capacity of 500 boe/d to be brought online over the balance of the year. Given
the higher weighting of capital directed towards oil-weighted plays, Seaview
expects to more than double exit crude oil and liquids production to 450 bbl/d
as compared to current crude oil and liquids production of 220 boe/d.


Combined with the Company's growing prospect inventory and solid financial
position, Seaview is well positioned to continue its track record of growth in
cash-flow, production and reserves on a per share basis.


OUTLOOK; UPWARD REVISION TO 2010 GUIDANCE

Including the impact of the recent Wapiti oil success, Seaview is well
positioned to continue its growth strategy for 2010. Seaview's Peace River Arch
core area featuring high quality, long-life reserves, combined with the emerging
Cardium light oil resource play, provide the Company with a significant drilling
inventory.


As a result of the recent corporate success, Seaview provides the following
updated guidance for 2010:




--  Forecast 2010 average daily production estimate of more than 3,100 boe/d
    compared to 2009 annual average production of 2,321 boe/d resulting in
    an estimated forecast production growth of 34% per share (based on 65.48
    million Class A shares outstanding); 
--  2010 estimated exit production of more than 3,450 boe/d including over
    450 bbl/d of crude oil and natural gas liquids; 
--  Upward revision to forecasted 2010 capital budget to $28.5 million; 
--  As at June 30, 2010, Seaview had approximately $10.6 million of net debt
    representing a trailing net debt to cash flow ratio of 0.60; 
--  Seaview's credit facility has been confirmed by the lenders at $52
    million. The next interim review is set for February 2011. As at June
    30, 2010, Seaview had approximately $41 million of available credit
    capacity to pursue strategic opportunities; 
--  Seaview has established significant positions in resource plays
    providing for longer-term growth potential in a diverse portfolio of
    assets targeting both light oil and natural gas plays, including: 
    --  In Wapiti, the Company has assembled a sizable land position with
        exposure to 41 sections of land (20.8 net) targeting a Cardium light
        oil resource play. Seaview plans to spend $16 million total in 2010
        to drill a total of 6 horizontal multi-frac wells (4.5 net) to
        delineate the resource potential of the Company's land position; 
    --  In Pouce Coupe, the Company holds interests in 21 sections of land
        (4.5 net) targeting a Doig-Montney natural gas resource play.
        Seaview's land position is on trend with successful industry
        development activities further reducing the risk of full development
        when economics are more viable; and 
    --  In Harlech, Seaview holds a 25% working interest in 9 contiguous
        sections of land (2.25 net) targeting multi-zone Cretaceous and
        Nordegg gas resource potential. The Harlech area offers exposure to
        liquids rich natural gas reservoirs. 
--  Strong commodity hedging program providing for downside protection on
    45% of 2010 forecasted average production generating a minimum $9.4
    million gross revenue for the second half of 2010; and 
--  65.48 million Class A shares and 1.0 million Class B shares outstanding.



Barrels of oil equivalent (boe) may be misleading, particularly if used in
isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural
gas to one barrel (bbl) of oil is based on an energy conversion method primarily
applicable at the burner tip and is not intended to represent a value
equivalency at the wellhead. All boe conversions in this press release are
derived by converting natural gas to oil in the ratio of six thousand cubic feet
of natural gas to one barrel of oil. Certain financial amounts are presented on
a per boe basis, such measurements may not be consistent with those used by
other companies.


Estimated values contained in this press release do not represent fair market value.

This press release may contain forward-looking statements within the meaning of
applicable securities laws. Forward-looking statements may include estimates,
plans, anticipations, expectations, opinions, forecasts, projections, guidance
or other similar statements that are not statements of fact. Although the
Company believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such expectations will
prove to be correct. These statements are subject to certain risks and
uncertainties and may be based on assumptions that could cause actual results to
differ materially from those anticipated or implied in the forward-looking
statements. These risks include, but are not limited to: the risks associated
with the oil and gas industry (e.g. operational risks in development,
exploration and production; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections relating to
production, costs and expenses and health, safety and environmental risks),
commodity price and exchange rate fluctuation and uncertainties resulting from
potential delays or changes in plans with respect to exploration or development
projects or capital expenditures. The Company's forward-looking statements are
expressly qualified in their entirety by this cautionary statement. The
forward-looking statements contained in this press release are made as of the
date hereof and the Company undertakes no obligations to update publicly or
revise any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.

Seaview Energy Inc. Class B (TSXV:CVU.B)
Historical Stock Chart
From Jun 2024 to Jul 2024

Seaview Energy Inc. Class B (TSXV:CVU.B)
Historical Stock Chart
From Jul 2023 to Jul 2024