Business
Pulse Data Inc. to purchase significant 2D seismic data set
Pulse Data Inc. to purchase significant 2D seismic data set.
About this update from Pulse Seismic Inc.
[{"type":"text","content":"\n\n\n\n\nTSX: PSD\n\nCALGARY, Oct. 6 /CNW/ - Pulse Data Inc. (\"Pulse\" or the \"Company\") is\npleased to announce the signing of a letter agreement for the purchase of a\nsubstantial portfolio of high-quality 2-D seismic data covering extensive\nareas under active exploration and development drilling in the Foothills\nregion of Alberta and northeastern British Columbia.\nThe transaction also includes extensive coverage in the Northwest\nTerritories, Yukon and the Mackenzie Delta and some data in the northwestern\nUnited States. The purchase includes approximately 14,000 net kilometres of\nregional 2-D data. This data set has generated an average of over $10 million\nin net revenue over each of the past 5 years, and is expected to be\nimmediately accretive to the Company.\n\"This is a strategic deal giving us exposure to key exploration areas in\nWestern Canada,\" Ken MacDonald, Pulse's president and chief executive officer,\nsaid today. \"It builds on our already extensive seismic data base and provides\nPulse with attractive and highly marketable new data for licensing to\nexploration and production companies. On a going-forward basis, this\nacquisition is expected to significantly increase the Company's free cash\nflow\".\nMr. MacDonald noted that regional 2-D seismic data remains a key tool for\noil and natural gas exploration thanks to its affordability and wide area of\ncoverage compared to 3-D data. The acquisition of this data set will provide\nPulse with an excellent regional presence in the highly active Foothills\ntrend, scene of numerous recent natural gas discoveries and ongoing\nexploration.\nThe transaction is with a prominent private seismic acquisition and data\nlicensing company. The letter agreement is subject to certain conditions,\nincluding a due diligence review and the execution of a formal purchase and\nsale agreement. The purchase is expected to close by November 15, 2006. The\ndata will be made available to Pulse on the effective date, October 6, 2006.\nPulse intends to finance the purchase using a combination of working capital\nand additional bank debt. At June 30, 2006 Pulse had a working capital\nposition of $16.4 million.\n\nPulse is a Calgary-based company with international operations,\nspecializing in seismic data acquisition, licensing and marketing, and in\nLiDAR surveying and data licensin...