Norex Purchases Norcana's Seismic Acquisition Business
Norex Exploration Services has signed a Letter of Intent to purchase Norcana Resource Services (1991) Ltd.'s ("Norcana") seismic acquisition business consisting of the Norcana name, customer list, and associated goodwill in exchange for the issuance of one million common shares of Norex. In addition, Norex will enter into a lease arrangement with Norcana whereby it will rent 1,536 channels of ARAM/ARIES seismic acquisition equipment from Norcana, with an option to purchase the equipment until March 15, 2006. This equipment is compatible with Norex's current fleet of 3,112 channels.
Norcana has provided seismic acquisition services in western Canada since 1991. Their name is synonymous with safety and quality service at a fair price, attributes that are also the foundation of Norex's operations. Over the last year, Norcana has generated sales of $13.5 million (unaudited). Mr. Jim Irvine, President and co-founder of Norcana, has agreed to lead Norex sales and marketing efforts in western Canada.
"This transaction is a great fit for Norex. It associates us with one of the most reputable seismic companies in western Canada, provides us with access to additional channels over the busy winter season and beyond, and bolsters our marketing efforts," commented Mr. Paul Crilly, President and CEO.
This transaction is expected to close in the next two weeks and is subject to completing definitive agreements and obtaining regulatory approval.
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