The transaction also includes extensive coverage in the Northwest Territories, Yukon and the Mackenzie Delta and some data in the northwestern United States. The purchase includes approximately 14,000 net kilometers of regional 2-D data. This data set has generated an average of over $10 million in net revenue over each of the past 5 years, and is expected to be immediately accretive to the Company.
"This is a strategic deal giving us exposure to key exploration areas in Western Canada," Ken MacDonald, Pulse's president and chief executive officer, said today. "It builds on our already extensive seismic data base and provides Pulse with attractive and highly marketable new data for licensing to exploration and production companies. On a going-forward basis, this acquisition 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 and wide area of coverage compared to 3-D data. The acquisition of this data set will provide Pulse with an excellent regional presence in the highly active Foothills trend, scene of numerous recent natural gas discoveries and ongoing exploration.
The transaction is with a prominent private seismic acquisition and data licensing company. The letter agreement is subject to certain conditions, including a due diligence review and the execution of a formal purchase and sale agreement. The purchase is expected to close by November 15, 2006. The data will be made available to Pulse on the effective date, October 6, 2006. Pulse intends to finance the purchase using a combination of working capital and additional bank debt. At June 30, 2006 Pulse had a working capital position of $16.4 million.
Pulse is a Calgary-based company with international operations, specializing in seismic data acquisition, licensing and marketing, and in LiDAR surveying and data licensing. Following closing of this purchase, Pulse's seismic library will consist of approximately 257,000 net kilometers of 2-D seismic data and more than 9,900 net square kilometers of 3-D seismic data. The company generates revenue primarily through licensing of its extensive data library.
Most Popular Articles
From the Career Center
Jobs that may interest you