VGS Seismic Canada Inc. Announces 2007 Financial Results

VGS Seismic Canada Inc. ("VGS" or "the Company") (TSX VENTURE:VGS) is pleased to
announce that in its first full year of operation as a public company it has
generated $8.1 million ($0.26 per share) in Cash EBITDA, compared to $548,443
($0.02 per share fully diluted) for the six months ended December 31, 2006.


VGS had net income of $548,766 ($0.02 per share basic and fully diluted) from
gross revenues of $19.4 million, compared to the six months ended December 31,
2006 where VGS generated net income of $7.5 million ($0.40 per share basic and
$0.24 per share fully diluted) from gross revenues of $23.9 million. The reason
for the comparatively lower revenue and net earnings in 2007 is that, in the
fourth quarter of 2006, the Company recognized $20.8 million in data acquisition
revenue as a result of two large surveys being released from their proprietary
usage period.


License sales were $12.3 million in cash for 2007, compared to $2.85 million for
the six months ended December 31, 2006. The growth in sales is due to the
increase in data VGS has available for sale in 2007, and the fact that the data
is located in areas where demand was strong.


Data acquisition revenue earned in 2007 was $6.8 million compared to $20.8
million in 2006. This reduction was due to fewer attractive large scale data
creation opportunities, which in management's consideration, may have been a
result of lower natural gas prices. Acquisition revenue was generated through
the completion of four 3-D surveys and one survey that was in progress at 2007
year-end. New 3-D data was added to the library in Northeast British Columbia,
the Peace River Arch, Southeast Alberta and Saskatchewan. The total cost of new
data created for the year was $10.4 million, of which $6.8 million, or 66%, was
paid for by oil and gas company clients.




Selected Financial Information

                                              Year ended   Six months ended
                                       December 31, 2007  December 31, 2006
                                                       $                  $

Data acquisition revenue                       6,831,652         20,835,183
License sales revenue                         12,306,806          2,852,778
Brokerage and other revenue                      252,062            189,583
                                      --------------------------------------
                                              19,390,520         23,877,544
                                      --------------------------------------

Non-recurring reverse takeover costs                   -            833,927
Other operating expenses                       4,482,983          1,659,991
                                      --------------------------------------
                                               4,482,983          2,493,918
                                      --------------------------------------

EBITDA (Non-GAAP measure)                     14,907,537         21,383,626
                                      --------------------------------------

Interest                                       1,683,065            527,946
Accretion                                      1,690,811            667,123
Amortization                                  10,724,249         12,682,880
                                      --------------------------------------
                                              14,098,125         13,877,949
                                      --------------------------------------

Earnings before income taxes                     809,412          7,505,677
Current income tax expense                       260,646             53,681
                                      --------------------------------------

Net Income                                       548,766          7,451,996
                                      --------------------------------------

Earnings per share
 Basic                                             $0.02              $0.40
 Diluted                                           $0.02              $0.24

Cash EBITDA (Non-GAAP measure)                 8,075,885            548,443
                                      --------------------------------------
Cash EBITDA per share
 Basic                                             $0.26              $0.03
 Diluted                                           $0.26              $0.02



For the year ended December 31, 2007, the Company changed its policy with
respect to recognition of seismic data acquisition revenue by adopting the
percentage of completion method. Previously, revenue from the creation of new
seismic data was deferred when the payments were received from the client
partner and then recognized as revenue when the proprietary period expired. New
data is amortized at a rate of 35% of the total survey cost when a completed
dataset is returned from the data processor, while the remaining amount is
amortized on a straight-line basis over five years.


Corporate Review

Founded in 2005, and becoming publicly traded in December 2006, VGS is in the
business of creating and growing a seismic data library, and licensing that data
to oil and natural gas companies for cash. The Company grows its library by
creating new seismic data or purchasing existing data which it then actively
markets to oil and gas exploration companies. With its head office based in
Calgary, Alberta, VGS owns a significant and growing portfolio of seismic data
concentrated in British Columbia, Southern Alberta and Eastern Saskatchewan. As
of April 9, 2008, VGS owned 5,016 square kilometres of recent vintage or newly
created 3-D seismic data, and 5,013 linear kilometres of 2-D seismic data. The
Company focuses solely on building and marketing its seismic data library
through data creation, data purchase and data trade. VGS owns 100 per cent of
the 3-D data it has created. As part of its purchase and trade contracts, VGS
focuses on limiting revenue share obligations, and in all instances has a goal
of owning pure title to data with zero revenue share obligations.


While VGS is pleased with the growth of its seismic data library to date, when
measured in kilometres, VGS is still one of the smaller data library companies
in the Western Canadian Sedimentary Basin. It is management's opinion that both
the quality of the data in terms of the area it covers and the vintage are as
important as the volume of data in the library. The Company has a management
team with a successful track record of identifying and executing opportunities
to partner with exploration companies to create new 3-D seismic data. VGS
expects new surveys will generate more licensing revenue than surveys that have
previously been on the market. While VGS will purchase pre-existing datasets if
management assesses they possess good value, the Company's focus is to seek out
and attempt to capitalize on new data creation opportunities, keeping the
library newer and more attractive to its customers.


Non-GAAP Measures

The terms working capital, EBITDA, and Cash EBITDA are not measures that have
any standardized meaning prescribed by Canadian GAAP and are considered non-GAAP
measures. Therefore, these measures may not be comparable to similar measures
presented by other issuers. Accordingly, these measures have been described and
presented in this press release to provide readers with additional information
regarding the Company's financial position, results, liquidity, and its ability
to generate future cash flows.




These non-GAAP measures are calculated as follows:
  - Working capital is defined as current assets less current liabilities;
  - EBITDA is defined as earnings before any deduction for net interest,
    taxes, depreciation and amortization; and
  - Cash EBITDA is defined as EBITDA less data acquisition revenue and
    non-monetary exchange revenue.


Balance Sheets

As at December 31,                                  2007               2006
                                                       $                  $
Assets

Current assets
Cash and cash equivalents                          8,946            540,834
Accounts receivable                            6,568,093          3,276,128
Due from related party                                 -             40,000
GST receivable                                         -            369,663
Prepaid expenses and deposits                     64,094             39,115
                                      --------------------------------------
                                               6,641,133          4,265,740

Seismic data libraries                        39,145,800         34,258,181

Property and equipment                         1,927,507          2,023,088
                                      --------------------------------------

                                              47,714,440         40,547,009
                                      --------------------------------------
                                      --------------------------------------

Liabilities

Current liabilities
Bank indebtedness                              1,024,218                  -
Accounts payable and accrued liabilities       5,249,524          2,554,615
GST payable                                      367,006                  -
Deferred revenue                               2,230,303          1,159,592
Current portion of mortgage payable                    -              7,788
Income taxes payable                              62,250             53,681
                                      --------------------------------------

                                               8,933,301          3,775,676

Convertible debentures                         7,560,266          5,869,455

Mortgage payable                                       -            292,441
                                      --------------------------------------
                                              16,493,567          9,937,572
                                      --------------------------------------
Shareholders' Equity

Share capital                                 20,276,468         20,276,468
Contributed surplus                              330,035             19,806
Warrants                                         692,088            939,647
Equity portion of convertible debentures       3,618,203          3,618,203
Retained earnings                              6,304,079          5,755,313
                                      --------------------------------------
                                              31,220,873         30,609,437
                                      --------------------------------------

                                              47,714,440         40,547,009
                                      --------------------------------------
                                      --------------------------------------


Statements of Operations, Income and Retained Earnings

                                                                 Six Months
                                              Year ended     ended December
                                       December 31, 2007           31, 2006
                                                       $                  $
Revenue                                       19,390,520         23,877,544
                                      --------------------------------------

Operating expenses
 Sales commissions                               813,462            537,790
 Consulting and professional fees                794,497            394,810
 General and administrative                    2,812,354            697,188
 Stock-based compensation                         62,670             30,203
 Reverse take-over costs                               -            833,927
                                      --------------------------------------
                                               4,482,983          2,493,918
                                      --------------------------------------

                                              14,907,537         21,383,626
Amortization                                  10,724,249         12,682,880
                                      --------------------------------------
                                               4,183,288          8,700,746

Interest
 Long-term debt                                1,492,562            527,946
 Accretion of convertible debentures           1,290,532            594,680
 Accretion of deferred financing costs           400,279             72,443
 Other                                           190,503                  -
                                      --------------------------------------
                                               3,378,876          1,195,069
                                      --------------------------------------
Income before income taxes                       809,412          7,505,677
Income taxes                                     260,646             53,681
                                      --------------------------------------
Net income and comprehensive income
 for the period                                  548,766          7,451,996
Retained earnings (deficit),
 beginning of period                           5,755,313         (1,696,683)
                                      --------------------------------------
Retained earnings, end of period               6,304,079          5,755,313
                                      --------------------------------------
                                      --------------------------------------
Earnings per share
Basic                                               0.02               0.40
Diluted                                             0.02               0.24


Statements of Cash Flows

                                                                 Six months
                                              Year ended     ended December
                                       December 31, 2007           31, 2006
                                                       $                  $

Cash provided by (used in)

Operating activities
Net income for the period                        548,766          7,451,996
Items not affecting cash
 Amortization of seismic database
  libraries                                   10,591,089         12,636,313
 Amortization of property and equipment          133,160             46,567
 Accretion of deferred financing costs           400,279             72,443
 Stock-based compensation                         62,670             30,203
 Accretion of convertible debentures           1,290,532            594,680
 Common shares issued for services                     -             76,960
                                      --------------------------------------
                                              13,026,496         20,909,162
Net change in non-cash working capital
 items
 Accounts receivable                          (3,291,965)         1,881,690
 GST recoverable and payable                     736,669            988,410
 Prepaid expenses and deposits                   (24,979)            51,195
 Accounts payable and accrued
  liabilities                                  1,671,387        (12,923,656)
 Deferred revenue                              1,070,711        (20,690,193)
 Income taxes payable                              8,569             53,681
                                      --------------------------------------
                                              13,196,888         (9,729,711)
                                      --------------------------------------

Financing activities
Bank operating loan                            1,024,218             (2,048)
Due from related party                            40,000            (40,000)
Repayment of office condominium
 mortgage                                       (300,229)            (1,088)
Proceeds from office condominium
 mortgage                                              -            301,317
Deferred financing costs                               -           (255,490)
Issue of convertible debentures                        -          5,000,000
Issue of common shares                                 -         12,288,125
                                      --------------------------------------
                                                 763,989         17,290,816
                                      --------------------------------------

Investing activities
Additions to seismic data libraries          (15,478,708)        (8,695,290)
Purchase of property and equipment               (37,577)        (1,235,346)
Non-cash working capital changes               1,023,520            984,491
                                      --------------------------------------
                                             (14,492,765)        (8,946,145)
                                      --------------------------------------

Decrease in cash and cash equivalents           (531,888)        (1,385,040)

Cash and cash equivalents,
 beginning of period                             540,834          1,925,874
                                      --------------------------------------

Cash and cash equivalents,
 end of period                                     8,946            540,834
                                      --------------------------------------
                                      --------------------------------------



Forward-Looking Information

Certain information contained in this press release, including information and
statements which may contain words such as "could", "plans", "should",
"anticipates", "expects", "believes", "will", "forecasts", "budget", "projects",
"estimates", "potential" and similar expressions and statements relating to
matters that are not historical facts are forward-looking information including,
but not limited to, information related to future: seismic surveys, data sales,
revenue, cash-flow, seismic annuity streams, expenditures, drilling activity
levels, oil and gas prices and demand, expansion and other development trends of
the oil and gas industry; business strategy, expansion and growth of VGS's
business and operations, including VGS's market share and other such matters.

This forward-looking information is based on certain material factors,
assumptions and analyses made by VGS in light of its experience and its
perception of historical trends, current conditions and expected future
developments as well as other factors it believes are appropriate in the
circumstances. However, whether actual results, performance or achievements will
conform with VGS's conclusions, forecasts, projections, expectations and
predictions expressed or implied by the forward-looking information in this
press release is subject to known and unknown risks and uncertainties which
could cause actual results to differ materially from VGS's conclusions,
forecasts, projections, expectations and predictions expressed or implied by the
forward-looking information in this press release, including: fluctuations in
the price and demand for oil and gas; fluctuations in the level of oil and gas
exploration and development activities; fluctuations in the demand for VGS's
services; the ability of VGS to raise capital and to meet its debt service
requirements; the ability of VGS's clients to raise capital for seismic data and
surveys; the ability of VGS to secure participants to conduct seismic surveys;
the existence of competitors; technological changes and developments in the oil
and gas industry; the effects of weather conditions on operations and
facilities; the seasonal impact on conducting seismic surveys; the ability of
VGS to participate financially in large seismic surveys due to increases in
costs of conducting such seismic surveys; the ability of VGS to protect its
proprietary rights to the seismic data; the existence of operating risks
inherent in VGS's services; the lack of availability of qualified personnel or
management; VGS's dependence on qualified seismic acquisition contractors to
conduct seismic surveys; general economic, market or business conditions,
including stock market volatility; changes in laws or regulations, including
taxation and environmental regulations; other unforeseen conditions which could
impact the use of services supplied by VGS and those risks and uncertainties
described in VGS's continuous disclosure filings, including those referred to in
the Management's Discussion and Analysis of VGS for the most recently completed
financial year end, which may be found on SEDAR at www.sedar.com. If any of the
above risks or uncertainties materialize, or if the material factors,
assumptions and analyses applied by VGS are incorrect, actual results may vary
materially from those expected in the forward looking information in this press
release.


Consequently, all of the forward-looking information contained in this press
release is qualified by these cautionary statements and there can be no
assurance that the actual results or developments anticipated by VGS, as
expressed or implied by the forward-looking information, will be realized or,
even if substantially realized, that actual results or developments will have
the expected consequences to, or effects on, VGS or its business operations.
Except as required by law, VGS assumes no obligation to update publicly any such
forward-looking information, whether as a result of new information, future
events or otherwise. Readers should not place undue reliance on forward-looking
information.


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.