Decision Dynamics Completes Sale of Wellcore Assets



    
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    CALGARY, Sept. 16 /CNW/ - Decision Dynamics Technology Ltd. (TSXV: DDY)
announced today that it and its U.S. subsidiary (collectively, "Decision
Dynamics" or the "Company") completed the sale of the Company's Wellcore oil
and gas well life cycle management software platform (the "Transaction"),
which includes all of the assets (including all applicable intellectual
property) and personnel associated with the development, marketing, sale and
support of the Wellcore software application (collectively the "Wellcore
Assets"), pursuant to the formal asset sale agreement dated August 28, 2008
between the Company and a subsidiary of P2 Energy Solutions, Inc., as buyer
(the "Wellcore Asset Sale Agreement").
    "The strategic sale of the Wellcore Assets represents, in part, the
implementation of management's vision for the Company's future and commitment
to improving the Company's bottom line. With the sale of the Wellcore Assets,
Decision Dynamics is in a position to more fully focus on the growth of our
remaining products and business, primarily the Oncore line of products," said
Justin Zinke, Chief Executive Officer. "We have already formed strategies for
aggressively investing in the sales and marketing resources for the Company to
achieve its revenue potential and finish the development of its next
generation of products, and the proceeds from the Wellcore Asset sale together
with the resulting reductions to operating overhead allow the Company to
implement those strategies. Furthermore, we were very focused on finding a
buyer for the Wellcore Assets that would continue to effectively serve its
existing and prospective customers. We were encouraged by P2 Energy Solutions'
commitment to continue to build and enhance the Wellcore Assets."
    Gerry Conroy, VP of Engineering Solutions with P2 Energy Solutions,
commented "We are delighted to add the Wellcore product to our growing
portfolio of engineering-focused solutions. The Wellcore product links
together key business departments of Land, Geology, and Engineering with
workflows focused on operational efficiency and execution excellence. The
enhanced workflow capabilities will enable our customers to carry out large
scale drilling programs more efficiently, while also ensuring sound financial
management, regulatory compliance and environmental stewardship. We also see
tremendous opportunities to integrate and extend the well lifecycle management
approach into our existing industry-leading land, production, and accounting
solutions."
    In accordance with the Wellcore Asset Sale Agreement, P2 Energy Solutions
paid to Decision Dynamics CAD$4.5 Million of the total purchase price of
CAD$5.0 Million (subject to holdback and release conditions, the "Purchase
Price") for the Wellcore Assets. P2 Energy Solutions is to pay the Purchase
Price holdback during the year following the Transaction closing, subject to
certain conditions being met and subject to P2 Energy Solutions' claims
against such holdback, if any, under the Wellcore Asset Sale Agreement.
    In connection with P2 Energy Solutions' acquisition of the Wellcore
Assets, approximately half of the former DDY employees will become employees
of P2 Energy Solutions. Decision Dynamics has licensed from P2 Energy
Solutions rights to use and support the X-core technology (the X-core assets
were conveyed to P2 Energy Solutions pursuant to the Transaction), which is
the foundational technology for Decision Dynamics' Linecore product line.
Other than the Wellcore product and the X-core technology, none of DDY's
Oncore or Linecore assets were conveyed to P2 Energy Solutions pursuant to the
Transaction.

    Decision Dynamics after Completion of the Transaction

    For the 12 months ended June 30, 2008, the Wellcore Assets accounted for
approximately CAD$4.3 million, or 62%, of the Company's consolidated revenue
and, in addition, expenses related to the Wellcore Assets, accounted for
approximately CAD$5.0 million, or approximately 61%, of the Company's
consolidated expenses. These expenses included corporate overhead allocated to
the Wellcore Assets and expenses that have been eliminated through
restructuring initiatives. Due to the allocation of Company overhead, public
company and restructuring costs, financial results may not be indicative of
the profitability of the Company products.
    The Company proposes to use the sale proceeds from the Transaction to
increase market penetration in all North American markets for its remaining
products (primarily, Oncore), continue with technical upgrades to the
remaining product lines, reduce existing debt, accelerate new product
development and augment working capital.
    The table below sets out certain Decision Dynamics financial information
as at and for the interim period ended June 30, 2008 ("Q2 2008"), both before
and after giving effect to the Transaction:

    
                                                              Q2 2008
                                                         After completing
      Operating Results              Q2 2008               Transaction
    -------------------------------------------------------------------------
    ($000's except per share amounts
     and percentages)

    Revenue                          1,457                      575
    Gross Profit(1)                    986                      397
    Gross Margin                       68%                      69%
    Net (Loss)(2)                     (938)                    (487)
    Net (Loss) per share             (0.02)                   (0.01)
    EBITDAS(3)                        (582)                    (169)


                                                        As at June 30, 2008
                                                         After completing
      Financial Position       As at June 30, 2008         Transaction
    -------------------------------------------------------------------------
    ($000's except per share amounts
     and percentages)

    Cash                               511                    5,135
    Accounts Receivable              1,340                    1,125
    Property and Equipment             514                      484
    Intangible Assets                  209                        0
    Total Assets                     4,440                    6,832

    Current Expenses
     including Cost of
     Sales                           2,127                      779
    Long-term Debt                     282                        0



    Notes
    -----
    (1)    "Gross profit" is revenue less cost of sales and "gross margin" is
           gross profit divided by revenue expressed as a percentage.

    (2)    Net loss includes an allocation of corporate overhead, public
           company and restructuring costs.

    (3)    "EBITDAS" means earning from continuing operations before
           interest, taxes, deprecation, amortization and stock based
           compensation. It may be derived by subtracting stock based
           compensation (other than expenses resulting from the Share
           Accumulation Plan which are cash bases) from the subtotal titled
           "Loss before the undernoted" on the Statement of Loss and Deficit.
           Due to the allocation of Company overhead, public company and
           restructuring costs, as per Note 2, financial results may not be
           indicative of the profitability of the Company products.

    (4)    Gross profit, gross margin and EBITDAS do not have a standardized
           meaning under GAAP and may not be comparable to the same terms as
           used by other entities in the industry; however, the Company
           believes they are an important measure of performance and
           indicator of success for software businesses and are relevant to
           readers within the investment community.
    

    About Decision Dynamics Technology Ltd.

    Decision Dynamics is a leading provider of innovative knowledge capture,
workflow management, reporting and analytics software solutions to the energy
sector, including major oil and gas and electrical power companies. Its
flagship product is Oncore, a project cost management solution that provides
real-time cost information, contract validation and approvals for operations
management and capital projects. Decision Dynamics is a Microsoft Gold
Certified Partner. The Company's head office is located in Calgary, Alberta,
Canada. It operates wholly-owned foreign subsidiaries in the United States
with offices in Houston, Texas.

    About P2 Energy Solutions, Inc.

    P2 Energy Solutions focuses on the development and support of data,
software and enterprise services to meet the information and business process
needs of the energy industry. P2 Energy Solutions is the oil and gas
industry's most comprehensive source of asset management solutions including
Entelligent, Enterprise Upstream, Reserve Management, Excalibur, Qbyte,
Enterprise Land, Tobin GIS Studio and Tobin SuperBase. With solutions deployed
at more than 500 companies worldwide, P2 Energy Solutions enables clients to
achieve greater productivity while maintaining effective controls.
    P2 Energy Solutions has an 80-year history of serving the oil and gas
industry and understands its workflow processes. P2 Energy Solutions has the
breadth and depth of expertise to meet the expanding financial, operational
and data management needs of energy companies from private independents to
supermajors. The company is headquartered in Denver, Colorado and has
operations in the United States, Canada and other international locations.
More information can be found at www.p2es.com.

    Forward-looking Information or Statements

    In this news release, the Company makes forward-looking statements or
provides forward-looking information (collectively "forward-looking
statements"). Forward-looking statements relate to future events or Decision
Dynamics' future performance or financial position and, by their nature,
typically involve numerous assumptions, inherent risks and uncertainties, both
general and specific, and the risk that such forward-looking statements will
not be achieved. The use of any of the words "could", "expect", "believe",
"will", "projected", "estimated" and similar expressions and statements
relating to matters that are not historical facts are intended to identify
forward-looking statements and are based on Decision Dynamics' current belief
or assumptions as to the outcome and timing of such future events. These
forward-looking statements include but are not limited to comments with
respect to objectives and strategies, financial condition, results of
operations and industry conditions. Readers of this news release are cautioned
not to place undue reliance on forward-looking statements as a number of
important factors could cause actual future results to differ materially from
the plans, objectives, estimates and intentions expressed in such
forward-looking statements. For example, forward-looking statements may be
influenced by the following factors: the level of exploration and development
carried on by the Company's customers; crude oil, natural gas and other
commodity prices; demand for electricity; weather; availability of capital and
financing and government policies. The financial Risks sections of the
Company's interim and annual Management's Discussion and Analyses, as filed
with applicable securities regulatory authorities and available through
www.sedar.com, provides additional information regarding key factors that
could cause actual results to differ materially from those projected in our
forward-looking statements. The Company cautions that the foregoing list of
factors is not exhaustive and that, when relying on forward-looking statements
to make decisions, investors and others should carefully consider the
foregoing factors as well as other uncertainties and events. The Company
disclaims any intention or obligation to publicly update or revise any
forward-looking statements whether as a result of new information, future
events or otherwise, except as may be expressly required by applicable
securities laws.

    
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    All trademarks or registered trademarks herein are the property of their
    respective owners.
    





For further information:

For further information: Justin Zinke, Chief Executive Officer, Decision
Dynamics Technology Ltd., (403) 451-0731; Eric Flynn, Director of Marketing,
P2 Energy Solutions, Inc., (713) 481-2041

Organization Profile

DECISION DYNAMICS TECHNOLOGY LTD.

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