TSX : PSD
OTCQX : PLSDF
CALGARY, June 10, 2015 /CNW/ - Pulse Seismic Inc.
("Pulse" or "the Company") is pleased to announce it has signed a
$5.1 million seismic data licensing
agreement, resulting in total seismic data library sales of
$6.2 million so far for the second
quarter of 2015. The sale brings year-to-date seismic data library
sales to $7.5 million.
"This significant sale makes Pulse's year-to-date data library
sales revenue sufficient to cover the Company's cash operating and
interest costs for the full year," stated Neal Coleman, Pulse's President and CEO.
"Although low commodity prices have reduced traditional seismic
data library sales, we are pleased to see corporate transactions in
the oil and gas producing sector which are leading to significant
transactional data library sales revenue."
The agreement announced today is a transactional seismic data
licensing sale. The licensed data is spread throughout the Deep
Basin region of the Western Canada Sedimentary Basin. As discussed
in Pulse's annual report for the year ended December 31, 2014, transactional sales are
forming an increasing proportion of the Company's overall revenue,
with traditional sales having declined due to reduced field capital
spending by oil and natural gas producers.
As Pulse has frequently noted in past disclosure documents, the
amount and timing of seismic data sales are unpredictable, and the
typically large size but unpredictable nature of transaction-based
sales increases the difficulty of forecasting Company revenue.
Pulse's low cost structure enables the Company to generate
shareholder free cash flow at low levels of annual data library
sales revenue. The Company remains hopeful of securing additional
transactional as well as traditional sales through the balance of
2015.
The financial information in this news release is based on
management's estimates and has not yet been approved by the
Company's Audit Committee or Board of Directors, or reviewed by the
Company's auditors.
On July 31, 2015 the Company
anticipates releasing full financial statements and related
information for the three and six months ended June 30, 2015.
CORPORATE PROFILE
Pulse is a market leader in the acquisition, marketing and
licensing of 2D and 3D seismic data to the western Canadian energy
sector. Pulse owns the second-largest licensable seismic data
library in Canada, currently
consisting of approximately 28,400 net square kilometres of 3D
seismic and 340,000 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 occurs.
Forward Looking Information
This news release contains information that constitutes "forward
looking information" or "forward looking statements" (collectively,
"forward looking information") within the meaning of applicable
securities legislation. This forward looking information includes,
among other things, statements regarding:
- Transactional sales are forming an increasing proportion of the
Company's overall revenue, with traditional sales having declined
due to reduced field capital spending by oil and natural gas
producers.
- The Company remains hopeful of securing additional
transactional as well as traditional sales through the balance of
2015;
- Other expectations, beliefs, plans, goals, objectives,
assumptions, information and statements about possible future
events, conditions, results and performance.
Often, but not always, forward looking information uses words or
phrases such as: "foresees", "expects", "does not expect" or "is
expected", "anticipates" or "does not anticipate", "plans" or "does
not plan", "estimates" or "estimated", "projects" or "projected",
"forecasts" or "forecasted", "believes" or "does not believe",
"intends" or "does not intend", "likely" or "unlikely", "possible",
"probable", "scheduled", "positioned", "goal", "objective",
"hopes", "optimistic" or states that certain actions, events
or results "should", "may", "could", "would", "might" or "will" be
taken, occur or be achieved.
Undue reliance should not be placed on forward-looking
information. Forward looking information is based upon current
expectations, estimates and projections that involve a number of
risks and uncertainties which could cause actual results to vary
and in some instances to differ materially from those anticipated
in the forward looking information.
The material risk factors that could cause actual results to
differ materially from the forward-looking information include, but
are not limited to:
- oil and natural gas prices;
- seismic industry cycles and seasonality;
- the demand for seismic data and participation surveys;
- the pricing of data library license sales;
- relicensing (change of control) fees and partner copy
sales;
- the level of pre-funding of participation surveys, and the
ability of the Company to make subsequent data library sales from
such participation surveys;
- the ability of the Company to complete participation surveys on
time and within budget;
- environment, health and safety risks;
- the effect of seasonality and weather conditions on
participation surveys;
- federal and provincial government laws and regulation,
including taxation, royalty rates, environment and safety;
- competition;
- dependence upon qualified seismic field contractors;
- dependence upon key management, operations and marketing
personnel;
- loss of seismic data;
- protection of Intellectual Property; and
- the introduction of new products.
The foregoing list of risks is not exhaustive. Additional
information on these risks and other factors which could affect the
Company's operations or financial results are included in the Risk
Factors section of the Company's MD&A for the most recent
calendar year and interim periods. Forward looking information is
based upon the assumptions, expectations, estimates and opinions of
the Company's management at the time the information is
presented.
SOURCE Pulse Seismic Inc.