KEY FINANCIAL PERFORMANCE FIGURES

The main reason for reduced revenues from fourth quarter of 2008 is a drop in utilization from 77% in fourth quarter of 2008 to 62% in first quarter of 2009, as explained under

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $4.3 million for the quarter compared to $11.4 million for first quarter of 2008.

Charter hire and operating expenses in first quarter of 2009 was $35.2 million, about the same level as the previous quarter, but up from $23.5 million the same quarter last year. The main reason for this increase is the operations for the Hugin Explorer commencing in July 2008. Selling, general and administrative (SG&A) expenses were $7.1 million in first quarter of 2009, compared to $5.1 million in first quarter of 2008, partly due to provision for bad debt and challenging operations on Hugin Explorer.

Earnings (loss) before interest and taxes (EBIT) were negative with $5.8 million in first quarter of 2009 compared to a positive $4.3 million in first quarter of 2008. Depreciation and amortization was $10.1 million in first quarter of 2009, up from $7.1 million in first quarter of 2008. The increase of depreciations from first quarter of 2008 is mainly caused by commencing depreciations on the investments in patent technology, nodes, seismic equipment, node handling equipment, conversion cost of the Hugin Explorer and other investments related to our ocean bottom node business.

Interest expenses decreased from $4.5 million in first quarter of 2008 to $4.2 million in first quarter of 2009. Taking into account the capitalized interest of $0.6 million in first quarter of 2008, the net interest payments have been reduced by $0.9 million from first quarter of 2008 to first quarter of 2009. The decrease in interest expenses corresponds to the decrease of net interest bearing debt from $207.0 million by the end of first quarter of 2008 to $172.7 million by the end of first quarter of 2009.

Other financial items for the quarter were $3.1 million net loss compared to net loss of $6.6 million in first quarter of 2008. The unrealized foreign exchange gain on translation of our NOK600 million bond loans contributed to a loss of $4.1 million in the quarter, in line with the strengthening of the NOK against USD, which was partly offset by a gain on financial instruments of around $1.28 million. The income tax of $2.2 million in first quarter of 2009 and $1.3 million in first quarter of 2008 refers mainly to withholding tax in various jurisdictions around the world where the SeaBird vessels have been operating.

Loss for first quarter of 2009 was $15.3 million compared to a loss of $8.1 million in first quarter of 2008.

Capital Expenditures (CAPEX) for first quarter of 2009 was $13.3 million, of which $8.0 million refers to Aquila Explorer which was equipped with its own streamers and seismic equipment previously provided by client. Kondor Explorer has been upgraded by $2 million to be used as source / support vessel together with Hugin Explorer for BP E&P Inc in GoM. $2 million refers to Hawk Explorer acquiring a streamer from Fugro.

Write off for bad debt of $0.7 million has been booked for first quarter of 2009. Some discount to secure a payment from a Middle East client might be recognised in second quarter of 2009.

The continued strong $has in general a positive impact on our operating expenses, interest expenses and gross debt as we have significant costs in other currencies and bond loans of a total of NOK600 million.

Operational Highlights First Quarter Of 2009

The vessel utilization for the nine seismic vessels operated by SeaBird for first quarter of 2009 is reduced to 62%, down from 77% in fourth quarter of 2008 and 83% in average for 2008. The low utilization during the first quarter is due to the following:

Kondor Explorer continuing to be idle prior to being rigged for the engagement as source/support vessel for the Ocean Bottom Node contract for Hugin Explorer with BP E&P Inc in GoM expected to commence in July 2009.

Munin Explorer had a utilization of 25% after being idle for most of the quarter before mobilizing for her next contract offshore Mozambique where she started on a survey 1st week of April 2009.

Geo Mariner had a utilization of 43% after the planned docking and class maintenance during February and March 2009 before mobilizing for her next contract to work offshore Mozambique.

Hawk Explorer and Harrier Explorer have continued on their long term time charters to Fugro Geoteam (to end November 2009) and PGS (to October 2011) and have a utilization of 82% and 99% respectively. Hawk Explorer had 12 days off hire due to technical downtime in February. Osprey Explorer and Northern Explorer continued to acquire data at the East Coast of India for the whole quarter with utilization of 98% and 90% respectively. The Northern Explorer completed work for ONGC on the West Coast of India end of January and then mobilized to join Osprey Explorer on the East Coast surveys. Completion of the contract with ONGC is expected in July 2009.

Aquila Explorer had a utilization of 82% mainly due to upgrading with a solid streamer following her redelivery from PGS in January 2009. The Vessel has been working offshore South America during February and beginning of March, and was then mobilized to the Far East to commence her next survey in Vietnam.

The Hugin Explorer has continued in Angola on her first full scale Ocean Bottom Node Seismic survey for Total and has completed the Dalia survey. The vessel has just started mobilizing for GoM for the Green Canyon field survey for BP E&P Inc. Following the completion of the BP contract and the survey in Nigeria in 2010, we expect to return to Angola.

Vessel utilization for Hugin Explorer for the quarter continued to be low at 38%, mainly due to redeployment and reshooting following the problems experienced earlier with the electronics and handling systems. These initial start-up problems have been addressed and the vessel performance has improved after modifications. SeaBird has experienced more problems on the first full scale Ocean Bottom Node Seismic survey for Total than expected. However, we believe most of these difficulties are now behind us. Furthermore the fact that the company has been able to secure two more substantial contracts for this front end technology for two major oil companies BP E&P Inc in GoM and Chevron affiliate Star Deepwater offshore Nigeria, has given SeaBird a boost in confidence for the future of this niche seismic technology.

Liquidity and Financing

At 31 March 2009, cash and cash equivalents amounted to $17.6 million, thereof $9.2 million restricted for repaying part of NOK bond loan, compared to $28.2 million at the end of first quarter of 2008 and $14.9 million at the end of 2008. Net cash flow from operating activities for first quarter of 2009 was $6.8 million, same level as for fourth quarter of 2008, compared to $15.4 million for first quarter of 2008. Borrowings decreased with a net of $1.3 million for the quarter, mainly caused by payment of regular instalments. Net interest-bearing debt was $172.7 million at 31 March 2009 compared to $207.0 million at the end first quarter of 2008 and $172.7 million at the end of 2008.

SeaBird has from 2006 invested almost $350 million in a significant expansion of the fleet. The investment program initiated in 2005 was finalized last year, and there are no further significant committed investments, except normal maintenance type expenditures and certain equipment upgrades.