Seaview Energy Inc. Releases Financial and Operating Results for the Three and Six Month Periods Ended June 30, 2009

CALGARY, ALBERTA--(Marketwire - Aug. 18, 2009) -

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 its financial and operating results for the three and six months ended June 30, 2009.

/T/

----------------------------------------------------------------------------
SELECTED INFORMATION
----------------------------------------------------------------------------
Financial ($000's
except per share
amounts) Q2 2009 Q2 2008 %Change YTD 2009 YTD 2008 %Change
----------------------------------------------------------------------------
Petroleum and
natural gas
sales $ 7,463 $ 5,151 45% $ 14,463 $ 6,281 130%
Funds flow from
operations(1) 3,056 2,627 16% 5,966 2,979 100%
Basic and
diluted
per share(2) 0.06 0.09 (33%) 0.12 0.12 -
Net loss (3,273) (600) 445% (4,334) (953) 355%
Basic and
diluted
per share(2) (0.06) (0.02) 200% (0.08) (0.04) 100%
Capital
expenditures(3) 27,969 7,932 253% 33,883 12,448 172%
Corporate
acquisitions - 24,380 - - 24,380 -
Net debt 34,078 14,204 140% 34,078 14,204 140%
----------------------------------------------------------------------------
Shares Outstanding
at period
end (000's)
----------------------------------------------------------------------------
Class A 54,172 38,214 42% 54,172 38,214 42%
Subscription
receipts 11,246 - - 11,246 - -
Class B 1,054 1,054 - 1,054 1,054 -
----------------------------------------------------------------------------
Operations
----------------------------------------------------------------------------
Daily production
Natural gas
(mcf/d) 9,976 4,446 124% 9,721 2,951 229%
Light oil and
NGLs (bbl/d) 403 95 324% 396 50 692%
----------------------------------------------------------------------------
Total production
(boe/d) 2,066 836 147% 2,016 542 272%
----------------------------------------------------------------------------
Average realized
sales price
(net of risk
management gains
or losses)
Natural gas
(per mcf) $ 5.79 $ 10.83 (47%) $ 6.06 $ 9.91 (39%)
Light oil and
NGL (per bbl) 60.20 106.96 (44%) 53.18 106.73 (50%)
----------------------------------------------------------------------------
Netback per boe(1)
Sales price (net
of risk
management
gains or
losses) $ 39.70 $ 67.70 (41%) $ 39.64 $ 63.76 (38%)
Royalties 4.57 13.79 (67%) 6.04 13.34 (55%)
Operating
expenses 12.86 10.93 18% 11.57 11.00 5%
Transportation 1.49 0.98 52% 1.60 1.04 54%
----------------------------------------------------------------------------
Operating
netback(1) $ 20.78 $ 42.00 (51%) $ 20.43 $ 38.38 (47%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1) The Company uses "funds flow from operations" and "funds flow from
operations per share" which do not have any standardized meaning
prescribed by Canadian GAAP. The term is used to analyze operating
performance and leverage. The Company uses "Netback per boe" and
"Operating Netback" which do not have any standardized meaning
prescribed by Canadian GAAP. The term is used to evaluate performance
and in capital allocation decisions.
(2) Weighted average diluted shares outstanding for all periods exclude
the granted options and the impact of the conversion of the Class B
shares as these would have been anti-dilutive.
(3) Capital expenditures include the cash additions for the period and
capitalized G&A expense.

/T/

HIGHLIGHTS OF Q2 2009

- Acquired approximately 730 boe/d of high quality, long life assets in the Peace River Arch area from a senior public oil and gas producer for total consideration of $26.6 million on June 30, 2009. The Q2 2009 financial results do not include any cash flow or operational impact of this acquisition, other than the financing of the transaction;

- Closed a bought deal financing for gross proceeds of approximately $15.7 million on June 16, 2009;

- Average production for the second quarter of 2009 was 2,066 boe/d, an increase of 147% relative to Q2 2008 production of 836 boe/d (44% per share increase); and a 5% increase compared to Q1 2009 production of 1,965 boe/d;

- Since commencing operations on October 17, 2007, record production levels in the second quarter of 2009 mark the Company's seventh consecutive quarter of growth;

- Funds flow from operations for Q2 2009 increased 16% to $3.1 million from $2.6 million in Q2 2008;

- Expanded credit facility to $52 million representing a 53% increase relative to June 30, 2008. Based on net debt of approximately $34 million at the end of Q2 2009, Seaview has $18 million of available credit capacity to pursue strategic opportunities;

- During Q2 2009, 3 new wells (1.2 net) in the Gordondale, Valhalla and Sinclair areas were brought on production adding more than 220 boe/d of production on April 1, 2009 in order to maximize the 5% royalty rate under the Alberta Government's Royalty Incentive Program ("2009 RIP") announced on March 3, 2009; and

- Seaview has an additional three wells (1.2 net) to be brought on production during the year which are expected to add combined deliverability of approximately 180 boe/d. New production from these wells will also qualify for the 5% royalty rate under the 2009 RIP for a total of 400 boe/d of new production eligible for the maximum 5% royalty rate until March 2010.

BUSINESS STRATEGY

Although industry experienced volatile commodity prices and the impact of the global financial crisis on capital markets, Seaview is well positioned to continue executing its aggressive growth strategy. Through a disciplined approach to capital management, the Company has several key characteristics that support continued growth and value creation for shareholders despite the current economic climate:

- High-quality, long reserve life assets, focused on natural gas in the Peace River Arch and light oil in southeast Saskatchewan, both desirable areas within the Western Canadian Sedimentary Basin;

- Strong financial position including a low cost structure, strong balance sheet and $18 million of available credit capacity providing Seaview with the ability to capitalize on strategic opportunities;

- Attractive commodity risk management program to provide an enhanced cash flow stream in order to maintain balance sheet strength, secure acquisition economics and finance the Company's capital expenditures; and

- Strong management team, directors and technical professionals with significant ownership positions, ensuring strong alignment to shareholders' interests.

Seaview continues to focus on the Company's balanced growth strategy of acquiring, exploiting and exploring for high-quality natural gas and light oil assets in Western Canada.

Throughout the second quarter of 2009, the Company has focused on preparing for an active summer program directed towards capitalizing on the benefits of the 2009 RIP. Seaview has commenced a fall drilling program targeting 6 (5.8 net) locations to be drilled and completed over the balance of 2009 in the Peace River Arch targeting conventional exploration and development targets.

Seaview is well positioned to capitalize on the incentive program due to the Company's solid balance sheet and inventory of low to medium risk drilling opportunities within the Peace River Arch core area. The benefits of 2009 RIP may be significant to Seaview as the royalty credits earned through drilling offset 50% - 75% of the capital cost to drill a typical well.

The 2009 RIP provides a one-time opportunity to maximize the net asset value of the assets by adding new reserves while benefiting from the reduced royalty rates on new production as well as drilling credits used to lower royalties payable on existing production. Despite weak natural gas prices, the economics of drilling Seaview's current inventory is significantly improved by the combination of the reduced royalties on initial production, earning of drilling credits as a reduction of capital costs and finally a significant reduction in service costs for drilling and completing wells. Seaview remains well positioned to capitalize on this opportunity during a period where the industry is experiencing a pronounced slow period.

Seaview has the ability to expand the prospect inventory of over 60 opportunities through execution of additional acquisition and farm-in opportunities in the Peace River Arch. Due to the lack of equity and credit availability for many competitors, Seaview has an ability to capitalize on several opportunities in an area where the Company has experienced significant drilling success to date. Seaview has demonstrated this success with our strong 2008 drilling program, drilling 18 wells (9.1 net) and adding over 2.6 million boe of reserves on a Total Proven Plus Probable basis at a cost of $12.08/boe (including changes in Future Development Costs ("FDC")).

The Company continues to review several property and corporate acquisition opportunities aimed at consolidating the existing Peace River Arch and southeast Saskatchewan core areas, or adding a new focus area, for the Company. Seaview is well positioned, financially, to capitalize the drilling program and acquisition opportunities that meet the investment criteria of quality reserves with additional upside potential through drilling and optimization.

COMMODITY PRICE RISK MANAGEMENT

A key component to Seaview's balance sheet management is the Company's commodity price risk program. The price risk management program is intended to reduce price volatility in order to maintain balance sheet strength, protect acquisition economics and finance ongoing capital expenditures.

- Seaview currently has approximately 1,285 boe/d (approximately 45% of estimated forecasted second half 2009 production) hedged for the remainder of 2009;

-- 6,500 GJ/d of natural gas hedged in put and fixed contracts providing for a "net of cost" floor of $6.89/GJ, which is a 90% premium to the current calendar AECO 2009 futures strip of $3.63/GJ;

-- 3,000 GJ/d of natural gas hedged in put and fixed contracts for calendar 2010 providing for a "net of cost" floor of $4.69/GJ;

-- 100 bbl/d of crude oil hedged in a fixed contract for the remainder of 2009 at CDN$55.90/bbl.

- Current hedging program provides minimum gross revenue of $16.1 million for 2009 for the hedged volumes and $5.1 million for 2010 hedged volumes; and

- As at July 31, 2009, the estimated mark-to-market value of the derivatives contracts was $3.2 million.

OUTLOOK; 2009 GUIDANCE

Seaview's core areas feature high-quality, long-life reserves with significant identified upside potential through exploration and development drilling. The Company is currently well positioned to continue its growth strategy in 2009 despite the current challenging economic climate, with the following characteristics:

- Forecast 2009 average daily production estimate to more than 2,300 boe/d, and 2009 production exit rate target of more than 2,750 boe/d;

- Expanded credit facility to $52 million representing a 53% increase relative to June 30, 2008. Based on net debt of approximately $34 million at the end of Q2 2009, Seaview has $18 million of available credit capacity to pursue strategic opportunities;

- Commodity hedging program providing for downside protection on 43% of 2009 forecast average production generating a minimum gross revenue of $16.1 million for 2009 for the hedged volumes and $5.1 million for 2010 hedged volumes;

- Expanded drilling inventory of more than 80 opportunities, offering a diversified portfolio of exploration, development and lower-risk optimization projects in both the Peace River Arch and South East Saskatchewan core areas; and

- 65.42 million Class A shares outstanding and 1.054 million Class B shares outstanding.

Seaview is a Calgary, Alberta based company engaged in the exploration, development and production of conventional crude oil and natural gas reserves in Canada. Seaview's strategy is to build shareholder value through a balance of exploration and development drilling complemented by a focused acquisition program.

FILING OF SECOND QUARTER 2009 FINANCIALS

Seaview has filed its financial results for the three and six months period ended June 30, 2009 including the unaudited interim consolidated financial statements and related management's discussion and analysis ("MD&A").

These filings are available in their entirety at www.seaviewenergy.com and www.sedar.com or by contacting the Company directly.

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.