SBX: Seabird Exploration – update on COVID-19

The COVID-19 outbreak continues to affect the global economy as well as oil
demand.  While market uncertainty is high, the Company continues to work with
its clients as usual.  However, to cope with the uncertainty and preserve cash,
the Company has decided to reduce costs further and postpone capex until the
market situation normalizes and/or we see concrete work for the vessels affected
by this.

Operations:  The immediate effects of the COVID-19 situation for the Company are
operational.  In particular, crew changes for existing projects and mobilization
of crew for new projects are made difficult by travel and immigration
restrictions.  This may have an impact on operational cost, due to additional
salaries and increased travel costs caused by the restrictions.  Worst case,
projects may also be delayed or cancelled due to the logistical challenges
created by the COVID-19 restrictions.  So far, the main effect for the Company
has been the termination of two OBN surveys off West Africa as announced on
April 7th.  

In the event of a prolonged period of economic shutdown, the Company has
contingency plans in place to reduce costs even further and place the vessels
idle at a very low cost.  In such an event, our ambition is to be able to run
the company at less than USD 400k per month including all stacking costs and
SG&A, while maintaining ability to operate at least two vessels on contracts
simultaneously.  Based on contract negotiations and clients existing plans,
management currently has no reason to believe that it will be necessary for the
Company to execute on its contingency plans.

Capex:  The Company has decided to postpone the remaining outfitting of the
Fulmar Explorer until markets normalize and/or the vessel sees a contract award.
 Meanwhile, we will reengineer the project with an ambition to reduce the capex
need further.  Further, the Company has finished all preparatory work for
rigging of the Geo Barents.  The vessel has been bid for a contract in the
Eastern hemisphere, and the actual rigging will take place upon contract award. 
The remaining cost for rigging the vessel is estimated to be no more than USD
600k.

In sum, the actions taken will help the Company preserve cash and enable it to
weather a prolonged downturn in our markets.  The Management and Board of
Directors is confident that the Company`s strong balance sheet, modern, flexible
and competitive fleet, efficient operations and industry-leading and uniquely
low-cost position puts Seabird Exploration on a strong footing to weather the
current difficult market conditions and improve its competitiveness versus the
industry as the economy and oil markets eventually recovers.

For further information, please contact

Ståle Rodahl

Executive Chairman

Mob:  +47 484 00 593

Gunnar Jansen

CEO (acting)

Mob: +47 941 19 191