Pulse Seismic Inc. Announces $6.4 Million Seismic Data Licensing Agreement and Repayment of Subordinated Debt

Rhea-AI Summary

Pulse Seismic Inc. (OTCQX: PLSDF) announced a $6.4 million seismic data licensing contract in West Central Alberta, significantly increasing cash EBITDA and reducing long-term debt. The company reported Q2 seismic data sales revenue of $19.0 million, bringing year-to-date sales to $23.7 million, more than double the full-year 2020 revenue. Debt levels have decreased to $10.6 million, down from $28.0 million at the end of 2020. The second quarter financial results will be released on July 21, 2021.

Positive

• Secured a $6.4 million seismic data licensing contract.
• Q2 seismic data sales revenue reached $19.0 million, boosting year-to-date sales to $23.7 million.
• Year-to-date sales revenue has more than doubled compared to 2020.
• Reduced total debt outstanding by $17.4 million in the first half of 2021.

Negative

• None.

CALGARY, Alberta, June 30, 2021 (GLOBE NEWSWIRE) -- Pulse Seismic Inc. (TSX:PSD) (OTCQX:PLSDF) (“Pulse” or the “Company”) is pleased to announce the signing of a $6.4 million seismic data licensing sales contract. The licence is for 3D seismic data located in a liquids rich fairway in West Central Alberta.

“The fast pace of industry M&A activity and recovery of commodity prices in 2021 continues to be positive for Pulse,” commented Neal Coleman, President and CEO of Pulse. “This $6.4 million transaction-based sale significantly increases our cash EBITDA and allows us to continue to reduce our long-term debt balance, further strengthening our financial position.”

The sale announced today brings seismic data library sales revenue for the second quarter of the year to $19.0 million, Year-to-date sales revenue is $23.7 million, which is more than double full-year-2020 sales revenue and equal to annual sales revenue for 2019. The strong level of sales has enabled the Company to reduce total debt outstanding by $17.4 million in the first half of 2021, from $28.0 million at year-end 2020 to $10.6 million today. The $10.0 million of subordinated debt incurred to partially finance a major acquisition in 2019 has been fully repaid as of today. Pulse’s senior revolving credit facility balance is $10.6 million with $14.4 million of additional borrowing capacity.

These second quarter figures are preliminary and have not been audited or reviewed by the auditors. The Company will release second quarter financial results on July 21, 2021.

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/f00650a4-c333-4b26-95c1-8dfbba219384

FAQ

What recent contract did Pulse Seismic Inc. sign?

Pulse Seismic Inc. signed a $6.4 million seismic data licensing contract.

What is the year-to-date sales revenue for Pulse Seismic Inc. as of June 2021?

As of June 2021, Pulse Seismic Inc. reported year-to-date sales revenue of $23.7 million.

How has Pulse Seismic Inc. reduced its debt?

Pulse Seismic Inc. reduced its total debt outstanding by $17.4 million in the first half of 2021.

When will Pulse Seismic Inc. release its second quarter financial results?

Pulse Seismic Inc. will release its second quarter financial results on July 21, 2021.

What is the significance of the recent seismic data sales for Pulse Seismic Inc.?

The recent seismic data sales significantly increase Pulse's cash EBITDA and improve its financial position.