Seabird, TGS pen Mexico LOI

SeaBird Exploration Plc has signed a letter of intent (“LOI”) with TGS-NOPEC Geophysical Company (“TGS”) to acquire up to 200,000 km of 2D seismic data in Mexico.

The LOI provides TGS access to charter up to four seismic vessels from SeaBird over a period of approximately 36 months, estimated to start Q4 2014.

The LOI is subject to the issuance of seismic acquisition permits for the offshore waters in Mexico as well as securing required prefunding for the acquisition area. The expected contract value is approximately USD 110 – 115 million.

TGS will have priority rights to the vessels subject to the issuance of seismic acquisition permits for the offshore waters of Mexico.

In December 2013, Mexico’s Congress gave final approval to a historic energy reform bill that ends the 75-year state monopoly of the country’s oil and gas industry and invites foreign investment.

“The publicly announced legislative changes will allow for outside investment in exploration projects in Mexico, including geophysical surveys. TGS is prepared to acquire a regional 2D program as soon as regulations are in place and permits are in-hand”, stated Rod Starr, Senior VP Western Hemisphere for TGS.