Kinetex Resources Corporation
TSX VENTURE : KTX

Kinetex Resources Corporation

June 15, 2009 10:10 ET

Kinetex Announces First Quarter Results; Reinstatement for Trading

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 15, 2009) - Kinetex Resources Corp. (TSX VENTURE:KTX) (the "Company" or "Kinetex") is pleased to announce its consolidated operating and financial results for the first quarter ended March 31, 2009.

Highlights of First Quarter Activity

The Company continues to enjoy steady growth, although not at the rate experienced over the last 2 years. During the quarter ended March 31, 2009 the Company generated top line revenues of $3,490,712, an increase of 6.2% over the same period in 2008. A net loss of $70,725 was reported during the period, primarily due to non-cash expenses - namely, amortization of property and equipment totaling $760,974 and stock-based compensation amounting to $53,555. In comparison, a net loss of $301,568 was reported during the corresponding period in 2008. As of March 31, 2009 the Company had available cash flow of $1,483,441 (EBITDA)(i) to service debt and grow the Company.

(i) EBITDA is a Non- GAAP Financial Measurement and does not have a standardized meaning prescribed by GAAP.

The Company's financial results for 2008, and carrying in to 2009, continued to be positive despite worldwide economic concerns. The Company therefore expects it will be able to continue growth into the foreseeable future. The Company's outlook remains positive; current job flow is steady and management expects to see steady improvement over the next year as the international economic situation gradually improves and additional confidence comes back into the marketplace. Therefore, the Company believes prospects for the balance of 2009 remain encouraging.

On June 4, 2009, the Company announced a record of committed work contracts in excess of $20 million. These contracts are broadly spaced among the Company's business segments in energy and resource exploration, with notably strong activity in South America. The work programs will commence in July 2009 and are scheduled to be completed by February 2010. The Company will receive progress draws throughout the duration of the programs as work progresses. The Company also announced additional solicitations currently under development or negotiation exceeding $45 million for 2009/2010. Shareholders are cautioned that, while management remains optimistic pertaining to future awarded prospects, there can be no guarantee or assurance that the Company will be the successful bidder in any or all of these solicitations.

Outlook for 2009

Kinetex Resources Corporation is pleased to provide an overview of its activities and plans for expansion in 2009 for its wholly owned subsidiary, Kinetex Multi-Component Services Inc. ("KMCS").

The infrastructure expansion that has taken place over the past two to three years is now enabling the Company to bid on larger projects and gives the Company the opportunity to address, among other things, senior petroleum clients' requests for large capacity surveys and the ongoing growth seen in both the domestic and international markets. The Company's increased capacity and the implementation of management's strategy to diversify geographically is providing opportunities for growth despite the economic challenges being felt in the energy and resource industries.

Looking forward, the Company sees opportunity for growth at an accelerated rate once overall confidence returns to the world markets. The Company also sees potential opportunities developing in the area of project participation, which has been reinforced by recent successes in this area.

In conclusion, the Company has continued to satisfactorily further its business plan over the past year and current quarter. While the Company's growth rate has slowed somewhat due to the postponement of some projects, the Company remains confident that its business strategy remains intact.

Management is looking forward to a busy year and is confident that the Company will be able to take advantage of the opportunities available to it.

Update on Trading

On May 11, 2009 the Company received a Cease Trade Order from one of the Securities Commissions to which it is a reporting issuer for failure to file its annual financial statements and MD&A within the prescribed time limit and was halted from trading by the TSX Venture Exchange on May 12, 2009. The required documents were subsequently filed and the Company received a Revocation of Cease Trade Order on June 10, 2009. The Company was subsequently reinstated for trading by the TSX Venture Exchange and will resume on June 15, 2009.

Forward-Looking Statements

Certain statements contained in this news release constitute forward-looking statements. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements. Based on current available information, the Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that those expectations will prove to be correct. The forward-looking statements in this news release are expressly qualified by this statement, and readers are advised not to place undue reliance on the forward-looking statements.

About Kinetex

Kinetex is an oil, gas and mineral exploration services company with offices in Vancouver, BC, Calgary, Alberta and Bogota, Colombia. Through its subsidiaries, Kinetex provides data-rich high resolution subsurface images - essentially a brand-new exploration tool - to the energy, metals and minerals exploration and development industries seeking to go beyond the limitations of traditional data acquisition methods.

The TSX Venture Exchange Inc. has neither approved nor disapproved the contents of this press release. The company seeks safe harbour.

Contact Information

  • Kinetex Resources Corporation
    Gil Schneider
    Chief Executive Officer
    604-484-5761 or Toll-Free: 1-888-484-5761
    604-484-5760 (FAX)
    gil@kinetex.ca
    www.kinetex.ca