Pulse Seismic Inc. press release
Pulse Data Inc. to purchase significant 2D seismic data set
TSX - Toronto Stock Exchange ยท Canada
TSX: PSD
CALGARY, Oct. 6 /CNW/ - Pulse Data Inc. ("Pulse" or the "Company") is pleased to announce the signing of a letter agreement for the purchase of a substantial portfolio of high-quality 2-D seismic data covering extensive areas under active exploration and development drilling in the Foothills region of Alberta and northeastern British Columbia. The transaction also includes extensive coverage in the Northwest Territories, Yukon and the Mackenzie Delta and some data in the northwestern United States. The purchase includes approximately 14,000 net kilometres of regional 2-D data. This data set has generated an average of over $10 million in net revenue over each of the past 5 years, and is expected to be immediately accretive to the Company. "This is a strategic deal giving us exposure to key exploration areas in Western Canada," Ken MacDonald, Pulse's president and chief executive officer, said today. "It builds on our already extensive seismic data base and provides Pulse with attractive and highly marketable new data for licensing to exploration and production companies. On a going-forward basis, this acquisition is expected to significantly increase the Company's free cash flow". Mr. MacDonald noted that regional 2-D seismic data remains a key tool for oil and natural gas exploration thanks to its affordability and wide area of coverage compared to 3-D data. The acquisition of this data set will provide Pulse with an excellent regional presence in the highly active Foothills trend, scene of numerous recent natural gas discoveries and ongoing exploration. The transaction is with a prominent private seismic acquisition and data licensing company. The letter agreement is subject to certain conditions, including a due diligence review and the execution of a formal purchase and sale agreement. The purchase is expected to close by November 15, 2006. The data will be made available to Pulse on the effective date, October 6, 2006. Pulse intends to finance the purchase using a combination of working capital and additional bank debt. At June 30, 2006 Pulse had a working capital position of $16.4 million.
Pulse is a Calgary-based company with international operations, specializing in seismic data acquisition, licensing and marketing, and in LiDAR surveying and data licensing. Following closing of this purchase, Pulse's seismic library will consist of approximately 257,000 net kilometres of 2-D seismic data and more than 9,900 net square kilometres of 3-D seismic data. The company generates revenue primarily through licensing of its extensive data library. Pulse trades on the Toronto Stock Exchange under the symbol PSD.
Disclaimer: Certain information contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Investors are encouraged to review the "Risk Factors" section of the Management's Discussion and Analysis in the Company's Annual Report for 2005 and 2006 interim reports for a discussion of risks that could affect the Company's operations and financial results. Forward-looking statements are based upon management's assumptions, expectations and estimates at the time that such statements are made. Pulse does not update forward-looking statements should circumstances change or management's assumptions, expectations or estimates change, unless required by law.