VGS Vgs Seismic Canada Com Npv

VGS Seismic Canada Inc. ("VGS" or "the Company") (TSX VENTURE:VGS) announces the
settlement of the bridge loan from its lender, Plainfield Offshore Holdings VI
Inc. ("Plainfield") for the full amount of $3,000,000 plus interest by cash
payment on December 31, 2007. Funds to settle this loan were generated
internally from cash re-license sales by VGS.


VGS is also pleased to announce the signing of amended credit facilities with
Plainfield. The terms of the revised financing are as previously announced in
VGS's press release dated November 20, 2007 and material change report filed
November 23, 2007. VGS has increased its borrowing capacity under the amended
credit facility from $20.0 million to $21.5 million and has extended the
maturity of the credit facility by one year to February 16, 2010. In addition,
the revised financing provides, among other items, that the $10.0 million in
escrow is being used to fully repay the note that is convertible at $1.50 per
share; $11.5 million will be available for by way of new convertible notes from
which $1.5 million is for a potential normal course issuer bid if and when VGS
decides to implement, subject to regulatory approval; the availability of such
funds will be extended from the original date of August 16, 2007 to September
30, 2008; the new convertible notes will bear interest at 9.5% per annum as per
the existing convertible notes and will be convertible at the option of
Plainfield at a price equal to the volume weighted average price of the Class A
shares for the twenty (20) business days immediately preceding each drawdown
date, plus a conversion premium of 25%; and new financial covenant of a minimum
of $6.0 million of cash EBITDA (excluding non-recurring expenses) for the fiscal
year of 2007.


The board of directors of VGS formed a special independent committee, comprised
solely of disinterested directors, to review and consider the revised financing
and the committee recommended approval of such financing to the board (excluding
the interested director) which has approved the revised financing.


Because an affiliate of Plainfield holds approximately 16% of the outstanding
Class A shares of VGS, Plainfield is a "related party" and the revised financing
constitutes a "related party transaction" under the policies of the TSX Venture
Exchange, Ontario Rule 61-501 and Quebec Regulation Q-27 all of which required
the revised financing to be approved by a majority of the Class A shares and
Class B shares, voting separately (excluding the shares held by Plainfield) at a
duly called meeting of the shareholders of VGS. VGS obtained from TSX Venture
Exchange, Ontario Securities Commission and Quebec Securities Commission an
exemption to obtain the majority approvals described above by way of written
approval from the requisite number of shareholders rather than holding a
shareholders meeting. Written approval of the revised financing was obtained
from Class A shareholders representing 76.5% of the outstanding VGS Class A
shares and from Class B shareholders representing 69.8% of the outstanding VGS
Class B shares (excluding the shares held by Plainfield). The revised financing
was also conditionally approved by TSX Venture Exchange.


"This revised financing provides VGS with increased liquidity and certain,
flexible additional capital required to carry out growth plans, in particular
the seismic data generation and acquisition program for the fall/winter of
2007-2008" said Steve Vasey, VGS's President and CEO. "The extended maturity
gives VGS more time to carry out its plans and increase cash flow and the longer
availability allows VGS to pursue projects at its discretion without having to
pay full interest on the funds before they are deployed. This is an excellent
sign of support from our lender and we look forward to growing the database and
continuing to provide risk reduction for our shareholders and cost effective
seismic solutions to Western Canadian oil businesses."


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.

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