Skip to main content

Pulse Seismic Inc. Signs $17.0 Million Seismic Data Licensing Agreement

Written by Customer Service on . Posted in Public Companies.

CALGARY, Alberta, May 28, 2021 (GLOBE NEWSWIRE) — Pulse Seismic Inc. (TSX:PSD) (OTCQX:PLSDF) (“Pulse” or the “Company”) is pleased to announce it has signed a $17.0 million seismic data licensing contract. On signing, the Company will immediately deliver a portion of the data and will recognize revenue of $7.3 million. The remainder of the data must be selected by the customer before April 15, 2022, at which time the balance of the $9.7 million licensing fees will be recognized as revenue. The licence is for 3D seismic data located in a liquids rich fairway in the west shale basin with multi-zone potential in Central Alberta.

“I am extremely pleased to announce the signing of this significant agreement and the recognition of the first tranche of $7.3 million that brings Pulse’s year-to-date seismic data library sales to $17.2 million. The agreement also ensures an additional $9.7 million of revenue will be earned as the data is delivered at the clients request over the coming quarters,” commented Neal Coleman, President and CEO of Pulse. “A deal of this magnitude will be highly positive for the Company’s cash EBITDA and shareholder free cash flow, given the low-cost structure of the Company and high cash margin we generate.”

While the majority of the data to be licenced is a result of an industry M&A transaction, it also includes additional data considered to be a traditional data sale. Transaction-based sales are inherently unpredictable and contribute to the fluctuating nature of Pulse’s quarterly and annual results. From 2010 to 2020, annual transaction-based sales have ranged from a low of $1.0 million in 2018 to a high of $44.9 million in 2012. With the recent increase in merger and acquisition activity in Canada’s oil and natural gas sector, Pulse has benefited from a number of transaction-based deals of different sizes.

In January 2019, the Company borrowed $38.0 million to partially fund the acquisition of Seitel Canada Ltd. and its capital allocation focus since then has been on debt reduction. By March 31, 2021, total debt had been reduced by half, to $19.2 million. Having doubled the seismic data library through that acquisition, and with transaction-based sales being a significant component of Pulse’s data library licensing business in recent years, the Company continues to believe that the opportunity sets for future sales has increased across its greatly expanded data library.

With first quarter 2021 data sales of $4.7 million and another $12.5 million of data sales in the second quarter, the Company is pleased to report preliminary year-to-date seismic data sales of approximately $17.2 million, which is 56% higher than annual data sales for 2020. These second quarter sales figures are preliminary and have not been audited or subject to review.

CORPORATE PROFILE

Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the largest licensable seismic data library in Canada, currently consisting of approximately 65,310 square kilometres of 3D seismic and 829,207 kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada’s oil and natural gas exploration and development occur.

For further information, please contact:

Neal Coleman, President and CEO
Or
Pamela Wicks, VP Finance and CFO

Tel.: 403-237-5559
Toll-free: 1-877-460-5559
E-mail: info@pulseseismic.com.
Please visit our website at www.pulseseismic.com

PDF available: http://ml.globenewswire.com/Resource/Download/42907332-7ee8-4bbf-82d3-34cea6253a20 

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.