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CALGARY, Jan. 26, 2016 /CNW/ - Pulse Seismic Inc.
("Pulse" or "the Company") is pleased to announce the acquisition
of a 2D seismic data library at an attractive valuation.
The acquisition closed on January 26,
2016 adding approximately 107,000 net kilometres of 2D
seismic data and 58 net square kilometres of 3D seismic data,
increasing Pulse's 2D seismic data library by over 30 percent from
approximately 340,000 net kilometres to approximately 447,000 net
kilometres. The acquisition includes data spread throughout the
Western Canada Sedimentary Basin and is complementary to Pulse's
existing data.
The purchase price of $3.65
million has been funded through the issuance of 669,643
Pulse common shares valued at approximately $2.24 per share, based on the 10 day volume
weighted average price of the shares on the Toronto Stock Exchange
following close of trading on January 21,
2016, plus $2.15 million in
cash. The cash portion was provided from Pulse's cash flow and will
not require incurring debt. Following the acquisition, Pulse
remains debt-free and has access to a three year, $30 million revolving credit facility with a
banking syndicate led by TD Bank and including ATB Financial.
"The acquisition advances Pulse's strategy of growth through the
addition of high-quality seismic data at valuations that meet our
criteria," commented Neal Coleman,
Pulse's President and CEO. "We are pleased that Pulse's financial
discipline and strong balance sheet enables the Company to conduct
acquisitions in the current economic climate."
The data was originally shot in the 1970s through 1990s and fits
the oil and natural gas industry's continuing need for 2D data for
exploratory purposes. In 2015, $6.1
million or 29 percent of Pulse's $21.1 million in data library sales revenue came
from the licensing of 2D data.
This acquisition was completed in order to improve Pulse's
competitive position for the long term. As industry capital
spending and field activities go up and down along with business
conditions and opportunities, Pulse will continue to focus on
generating as much data library sales, cash EBITDA and shareholder
free cash flow per share as conditions allow, while seeking
opportunities to grow.
"The Company's proven approach to capital allocation –
investment in capital programs (participation surveys and dataset
acquisitions that meet key criteria), purchase of Pulse shares and
prudent management of the revolving credit facility – will continue
to guide Pulse's business throughout 2016," added Coleman.
CORPORATE PROFILE
Pulse is a market leader in the acquisition, marketing and
licensing of 3D and 2D seismic data for the western Canadian energy
sector. Pulse owns the second-largest licensable seismic data
library in Canada, currently
consisting of approximately 28,600 net square kilometres of 3D
seismic and 447,000 net kilometres of 2D seismic. The library
extensively covers the Western Canada Sedimentary Basin where most
of Canada's oil and natural gas
exploration and development occur.
SOURCE Pulse Seismic Inc.