TSX Symbol - PSD
CALGARY, Dec. 15 /CNW/ - Pulse Seismic Inc. ("Pulse" or the "Company") announced today that the Company's syndicated revolving credit facility has been renewed until December 14, 2010. All of the members of the lending syndicate (Roynat, ATB and TD Bank) have approved the renewal. Management also elected to reduce the principal amount of the credit facility from $75 million to $65 million, in order to reduce fees and interest charges. This credit facility is intended to provide additional financing for growth of the Company's seismic data library through dataset acquisitions and participation surveys.
As of today, $28.0 million has been drawn on the credit facility, leaving $37.0 million available for future draws for dataset acquisitions and participation surveys.
Douglas Cutts, President and Chief Executive Officer commented: "Pulse continues to manage its business in a prudent and cautious manner during this current recessionary period that has significantly impacted activity levels in the oil and natural gas services industry. The renewal of the credit facility is a confirmation by the lending syndicate of Pulse's financial strength and business model during a very difficult year. By maintaining a strong balance sheet, reducing long term debt and generating cash EBITDA during this period, it is clear that our business model is working efficiently. We will continue to look for opportunities to grow our seismic data library, and with the renewal of the credit facility maintain our financial flexibility."
Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data for the western Canadian energy sector. Pulse owns the second-largest licensable seismic data library in Canada, currently consisting of approximately 258,000 net kilometres of 2D seismic and 12,800 net square kilometres of 3D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada's oil and natural gas exploration and development occurs. The replacement value of Pulse's library is currently estimated at over $1 billion based on current field replacement costs.
SOURCE Pulse Seismic Inc.
For further information: For further information: Douglas Cutts, President and C.E.O., Tel.: (403) 237-5559, Toll-free: 1-877-460-5559, E-mail: firstname.lastname@example.org; Please visit our website at www.pulseseismic.com