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Pulse Data Inc. announces closing of the purchase of an extensive high-quality regional 2-D seismic data library
Pulse Data Inc. announces closing of the purchase of an extensive high-quality regional 2-D seismic data library.
About this update from Pulse Seismic Inc.
[{"type":"text","content":"\n\n\n\n\nTSX: PSD\n\nCALGARY, Nov. 15 /CNW/ - Pulse Data Inc. (\"Pulse\" or the \"Company\") is\npleased to announce the closing of the previously announced purchase of a\nsubstantial portfolio of high-quality 2-D seismic data. The price of the\ntransaction, which is effective October 6, 2006, is $32.5 million cash plus\nfuture consideration based on a percentage of sales in excess of $10 million\nper year, to a maximum additional consideration of $3.75 million.\nThe portfolio covers extensive areas under active exploration in the\nFoothills region of Alberta and northeast British Columbia, and also includes\ncoverage in Yukon and the Northwest Territories (including the Mackenzie\nDelta) plus some data in Saskatchewan and the northwest United States. The\nacquired data base consists of approximately 14,000 net kilometres of regional\n2-D data.\nThe acquisition was financed through a combination of term debt with the\nCompany's principal lender and cash. After the purchase, the Company had a\nworking capital position of approximately $3 million, cash of $7 million,\nlong-term debt of $33 million and a debt to equity ratio of 0.4 to 1.\n\"This is a very significant acquisition for Pulse,\" Ken MacDonald,\nPulse's President and Chief Executive Officer, said today. \"As the Foothills\nregion has become a key exploratory area for oil and natural gas exploration\nin Western Canada, Pulse is able to provide valuable data to our clients who\nare active in this area. This data set has generated an average of\napproximately $10 million in net revenue per year over the past five years,\nand is expected to significantly increase the Company's free cash flow.\"\nMr. MacDonald noted that regional 2-D seismic data remains a key tool for\noil and natural gas exploration thanks to its affordability compared to 3-D\ndata and its wide area of coverage in the foothills of B.C. and Alberta. The\nacquisition of this data set will provide Pulse with an excellent regional\npresence in the active Foothills trend, scene of numerous recent natural gas\ndiscoveries and ongoing exploration.\n\nPulse is a Calgary-based company with two operating units: Pulse Seismic,\nspecializing in acquiring, marketing and licensing seismic data to the western\nCanadian energy sector; and Terrapoint, focusing on acquisition and processing\nof digital elevation and image ...