Pulse Seismic Inc. (TSX:PSD)(OTCQX:PLSDF) ("Pulse" or "the Company") is pleased to report its financial and operating results for the three months ended March 31, 2017. The unaudited condensed consolidated interim financial statements, accompanying notes and MD&A are being filed on SEDAR (www.sedar.com) and will be available on Pulse's website at www.pulseseismic.com.
HIGHLIGHTS FOR THE THREE MONTHS ENDED MARCH 31, 2017
Pulse remains cautiously optimistic for an improvement in 2017 while still not predicting an imminent rebound in its business. Signs for medium to longer-term optimism are observed in various industry benchmarks and activities.
At US$52.41 per bbl WTI as of April 19, crude oil prices have maintained levels that are economic for many producers. At Cdn$2.69 per mcf at AECO as of April 19, natural gas prices remain relatively weak, but gas demand continues to grow and North America's long supply glut is tightening.
Spending on mineral rights has increased year-over-year, with $93.9 million in bonus bids in Alberta as of March 23, compared to $34.4 million at this time last year, and $63.06 million in British Columbia as of April 21 compared to only $2.1 million by the same point last year. In January, the Petroleum Services Association of Canada increased its drilling forecast by nearly 1,000 wells to 5,200 wells for 2017. Additional outside capital appears to be flowing into the oil and gas industry, including through a number of recent initial public offerings, signaling optimism among operators and investors.
Pulse's revenue visibility is poor as always. The Company believes that a recovery in its traditional data library sales depends on materially increased capital investment and higher field activity by the oil and gas industry on a sustained basis. Accordingly, Pulse anticipates the possibility of continued weakness in traditional sales for the short term, followed by a gradual and/or extended recovery.
Pulse is positioned to grow. Pulse is debt-free, with cash reserves, unutilized credit facilities, an experienced management team and Board of Directors, annual cash costs below $6 million, and a valuable, competitive and technically high-quality asset - its seismic data library. Pulse continues to be a pure-play seismic data provider with the goal to become the largest licensable seismic dataset in Western Canada.
Paul Crilly will be nominated for election to Pulse's Board of Directors at the Annual Meeting on May 10, 2017. Mr. Crilly has over 25 years of experience in the oil field services industry, including senior management experience in the seismic acquisition industry.
In addition, Peter Burnham is retiring from the Board. Pulse thanks Mr. Burnham for his valued contributions over the past five years.
The Company's next conference call will be held after the release of its year-end 2017 results, in March 2018. Should investors or analysts wish to contact the Company, please feel free to contact Neal Coleman or Pamela Wicks at the e-mail address or telephone number provided below.
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 second-largest licensable seismic data library in Canada, currently consisting of approximately 28,600 square kilometres of 3D seismic and 447,000 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.
SOURCE: Pulse Seismic Inc.
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