Pulse Seismic Inc. press release
Pulse Data Inc. announces closing of the purchase of an extensive high-quality regional 2-D seismic data library
TSX - Toronto Stock Exchange ยท Canada
TSX: PSD
CALGARY, Nov. 15 /CNW/ - Pulse Data Inc. ("Pulse" or the "Company") is pleased to announce the closing of the previously announced purchase of a substantial portfolio of high-quality 2-D seismic data. The price of the transaction, which is effective October 6, 2006, is $32.5 million cash plus future consideration based on a percentage of sales in excess of $10 million per year, to a maximum additional consideration of $3.75 million. The portfolio covers extensive areas under active exploration in the Foothills region of Alberta and northeast British Columbia, and also includes coverage in Yukon and the Northwest Territories (including the Mackenzie Delta) plus some data in Saskatchewan and the northwest United States. The acquired data base consists of approximately 14,000 net kilometres of regional 2-D data. The acquisition was financed through a combination of term debt with the Company's principal lender and cash. After the purchase, the Company had a working capital position of approximately $3 million, cash of $7 million, long-term debt of $33 million and a debt to equity ratio of 0.4 to 1. "This is a very significant acquisition for Pulse," Ken MacDonald, Pulse's President and Chief Executive Officer, said today. "As the Foothills region has become a key exploratory area for oil and natural gas exploration in Western Canada, Pulse is able to provide valuable data to our clients who are active in this area. This data set has generated an average of approximately $10 million in net revenue per year over the past five years, and 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 compared to 3-D data and its wide area of coverage in the foothills of B.C. and Alberta. The acquisition of this data set will provide Pulse with an excellent regional presence in the active Foothills trend, scene of numerous recent natural gas discoveries and ongoing exploration.
Pulse is a Calgary-based company with two operating units: Pulse Seismic, specializing in acquiring, marketing and licensing seismic data to the western Canadian energy sector; and Terrapoint, focusing on acquisition and processing of digital elevation and image data (LiDAR data) to diverse markets. Pulse's seismic library consists 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.
A conference call and webcast will take place Thursday, November 16, 2006 at 1:00 p.m. ET (11:00 a.m. MST). Ken MacDonald, President and Chief Executive Officer, will chair the call. Douglas A. Cutts, Vice-President, Finance and Chief Financial Officer, will also take part. A question-and-answer period will follow a review of the third quarter results and update on the Company's strategies and outlook. To participate please dial (416) 640-1917 (Toronto) or 1-866-250-4907 approximately 10 minutes before the call is to commence to avoid delays. A live webcast of the conference call will be available at http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID(equal sign)1672660. An archival recording of the conference call will be available approximately one hour after the completion of the call until November 23, 2006. To access the replay, please dial 1-877-289-8525 or (416) 640-1917 (Toronto) and enter the Pass code 21209960 followed by the pound (number) key.
Pulse trades on the Toronto Stock Exchange under the symbol PSD.
Please visit our website at www.pulsedatainc.com.
Disclaimer: Certain information contained herein constitutes 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, except as required by law.