3-D Geophysical announces proposed acquisition of canadian land seismic company and other developments.ENGLEWOOD, Colo.--(BUSINESS WIRE)--July 23, 1996--3-D Geophysical, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :TDGO) today announced that it has signed a letter of intent to purchase J.R.S. Exploration Company Ltd., a land seismic survey company headquartered in Calgary, Alberta, Canada. J.R.S. Exploration has been operating in Canada for 18 years using up to 4 seismic survey crews and Sercel 388 24-bit seismic recording systems with a total of 2,000 channels. For its fiscal year ended November 30, 1995, J.R.S. had revenues of approximately $11.0 million CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. and earnings before interest, taxes and depreciation EBITD is an initialism or acronym for Earnings Before Interest, Taxes and Depreciation. See EBITDA. Some people find it useful to know this value for a business. of approximately $2.3 million CDN. Under the contemplated terms of the agreement, TDGO will acquire J.R.S. for approximately 481,000 shares of TDGO's common stock. The acquisition is subject to conditions including the negotiation and execution of mutually satisfactory definitive documentation and the completion of a satisfactory due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. review by TDGO. Richard D. Davis Richard David Davis (1799 - June 17, 1871) was a U.S. Representative from New York. Born at Stillwater, New York, Davis was graduated from Yale College in 1818. He studied law. He was admitted to the bar in 1821 and commenced practice in Poughkeepsie. , president and chief executive officer of 3-D Geophysical, said, "J.R.S. Exploration is widely recognized as one of the premier seismic survey companies in Canada and is a valuable addition to the TDGO team. Their management brings a wealth of experience in the Canadian market, an excellent safety record and substantial long-term contacts with major oil companies operating in Canada." Davis indicated that 3-D Geophysical will seek to expand J.R.S. Exploration's business during the Canadian winter season by shifting TDGO equipment to Canada from January through April. Overall, he expects the acquisition to be accretive to TDGO's earnings per share on a full year basis. However, since the major seismic survey season in Canada is from December through April, it is expected that the transaction will be dilutive to TDGO's earnings per share for the second half of 1996. Davis also stated that the completion of this acquisition would represent an important achievement of one of 3-D Geophysical's strategic objectives - to expand in part through selective acquisitions. Other objectives that the company has taken steps to achieve since it went public in February of this year: - Build its Mexican business. TDGO's Mexican subsidiary, Geoevaluaciones, is currently operating in Mexico on a previously announced three-dimensional land seismic contract with PEMEX Pemex officially Petróleos Mexicanos Mexico's state-owned oil company. In 1938 Pres. Lázaro Cárdenas nationalized 17 foreign oil companies to create Pemex, the largest Latin American petroleum company and a major world exporter of fossil fuel. , the Mexican national oil company, and is also bidding on additional new contracts there. - Expand to South America. The company recently opened an office in Lima, Peru and has also established a seismic data processing center there. It is currently bidding on contracts in Peru and Bolivia. - Pursue opportunities in Alaska. TDGO has just completed a project in Alaska for ARCO and is currently working on a previously announced $20 million transition zone project for BP Exploration (Alaska). Headquartered in Englewood, 3-D Geophysical, Inc, presently operates nine land-based seismic data acquisition crews and believes it is the second largest land-based seismic acquisition services provider in the United States and Mexico based on the number of crews. The company continues to pursue its strategy of entering new markets and expanding in existing markets. -0- Cautionary Statement for Purposes of the "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Statements in this release which are not historical facts are forward-looking. Actual results may differ from such statements due to the nature of the contracts TDGO is able to obtain, the level of utilization of its equipment and general market and industry conditions. Such forward-looking statements involve substantial risks and uncertainties, including, but not limited to, risks relating to dependence on energy industry spending, international operations, competitive conditions, potential obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. of technology, dependence on significant customers and suppliers, seasonality, weather and other risks described in TDGO's filings with the Securities and Exchange Commission, including the S-1 Registration Statement for its initial public offering. CONTACT: 3-D GEOPHYSICAL, INC. J.D. White, CFO See Chief Financial Officer. , 303/290-0214 or STRAUSS GLOBAL PUBLIC RELATIONS public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most George Strauss, 212/481-7096 |
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