Divestco Inc.
TSX : DVT

Divestco Inc.

November 15, 2010 07:00 ET

Divestco Reports 2010 Q3 Results and Returns to Positive Working Capital on Close of Asset Divestiture

CALGARY, ALBERTA--(Marketwire - Nov. 15, 2010) - Divestco Inc. ("Divestco" or the "Company") (TSX VENTURE:DVT) is pleased to announce its operating results for the three and nine months ended September 30, 2010.

On September 29, 2010, the Company closed the sale of its 2D and 3D seismic data library (the "Transaction"). The purchase price included $55.7 million cash (excluding a purchase price adjustment of $0.5 million and transaction costs of $1.8 million) and 14,285,000 shares of Pulse Seismic Inc. ("Pulse). All the shares of Pulse received as part of the Transaction were distributed to the shareholders of Divestco. In addition, the Company paid a special cash dividend of $8.6 million ($0.20 per share) on October 25, 2010 to shareholders on record at the close of business on October 19, 2010. The effective date of the Transaction was July 1, 2010, but the benefits of certain pending seismic data transactions were retained by Divestco or will be shared between Divestco and Pulse. The recapitalization of Divestco provides an opportunity for all shareholders to take part in a focused software, data and service company going forward.

Excluding the current portion of deferred revenue of $2.2 million (December 31, 2009 - $5.5 million; September 30, 2009 - $3.1 million), Divestco ended the period with $16.5 million working capital compared to a $6.3 million deficiency at the end of 2009 and a $6.9 million deficiency at the end of Q3 2009. The Company's working capital balance was restored to a positive position as a result of the sale of seismic data library. The Company's bank loans and debentures, totaling at $29.2 million, were fully repaid on September 29, 2010 using a portion of the funds from the seismic asset divestiture.

In conjunction with the asset divestiture, Divestco realized a net loss for the third quarter of 2010 of $49.9 million ($1.19 per share - basic and diluted) compared to net loss of $1.2 million (3 cents per share - basic and diluted) for the same period in 2009, a $48.6 million increase. 83% or $40.9 million ($0.97 per share - basic and diluted) of the net loss was attributed to the Transaction.

For the nine months ending September 30th, Divestco had a net loss of $57.5 million ($1.37 per share - basic and diluted) compared to net income of $1.1 million (3 cents per share - basic and diluted) for the same period in 2009, a $58.6 million increase. 71% or $40.9 million ($0.97 per share - basic and diluted) of the net loss was attributed to the Transaction.

During the third quarter of 2010, Divestco generated revenue of $8.5 million, a decrease of $4.9 million (36%) from $13.4 million for the same period in 2009. EBITDA was $(9) million, a $14.9 million (253%) decrease from $5.9 million for the same period in 2009. The Company had funds from operations of $(7) million (17 cents per share - basic and diluted) for the third quarter of 2010, a decrease of $17 million (170%) as compared to $10 million (24 cents per share - basic and diluted) for the same period in 2009.

During the first nine months of 2010, Divestco generated revenue of $32.9 million, a decrease of $18.8 million (36%) from $51.7 million for the same period in 2009. EBITDA was $(1.4) million, a $26.1 million (106%) decrease from $24.7 million for the same period in 2009. The Company had funds from operations of $(1.9) million (4 cents per share - basic and diluted) for the first nine months of 2010, a decrease of $25.9 million (108%) as compared to $24.1 million (58 cents per share - basic and diluted) for the same period in 2009.

Divestco generated $0.8 million in seismic data library data (inventory) sales during the third quarter of 2010, a decrease of $6.4 million (89%) compared to $7.2 million for the same period in 2009. There was no seismic participation revenue for Q3 2010 or in Q3 2009. Seismic brokerage revenue was $836,000 in Q3 2010 compared to $518,000 in Q3 2009, an increase of $318,000 (61%). Due to the publically announced seismic database divestiture, these results were expected by management.

Divestco generated $11.7 million in seismic data library data (inventory) sales during the first nine months of 2010, a decrease of $15.8 million (58%) compared to $27.5 million for the same period in 2009. Seismic participation revenue for the first nine months of 2010 was $2 million compared to $5.7 million for the comparative period in 2009, a decrease of 3.7 million (66%). Seismic brokerage revenue was $2.2 million in the first nine months of 2010 compared to $900,000 in the first nine months of 2009, an increase of $1.3 million (140%). Due to the publically announced seismic database divestiture, these results were expected by management.

Mr. Stephen Popadynetz, Chief Executive Officer and President: "By eliminating Divestco's debt and restoring the Company to a positive working capital balance we have essentially pushed the refresh button with a considerable oil and gas software, data and service company to build around. Be clear, Divestco is still in the seismic business and will grow that division as well as software, services and data organically and through acquisition. We are excited and looking forward to upcoming changes and opportunities for Divestco in the near to medium term."

Non-GAAP Measures

Divestco uses EBITDA and operating income as key measures to evaluate the performance of segments, divisions and the Company, with the closest GAAP measure being net income. EBITDA and operating income are measures commonly reported and widely used by investors as indicators of the Company's operating performance and ability to incur and service debt, and as a valuation metric. The Company believes EBITDA and operating income assist investors in comparing the Company's performance on a consistent basis without regard to financing decisions, and depreciation and amortization, which are non-cash in nature and can vary significantly depending upon accounting methods or non-operating factors such as historical cost.

EBITDA and operating income are not calculations based on Canadian GAAP and should not be considered alternatives to net income in measuring the Company's performance; nor should they be used as exclusive measures of cash flow, because they do not consider the impact of working capital growth, capital expenditures, debt principal reductions and other sources and uses of cash, which are disclosed in the Consolidated Statements of Cash Flows. Investors should carefully consider the specific items included in Divestco's computation of EBITDA and operating income. While EBITDA and operating income have been disclosed herein to permit a more complete comparative analysis of the Company's operating performance and debt servicing ability relative to other companies, investors should be cautioned that EBITDA and operating income as reported by Divestco may not be comparable in all instances to EBITDA and operating income as reported by other companies.

Cash EBITDA is not a calculation based on Canadian GAAP and this measure may not be comparable to similar measures presented by other issuers. Accordingly, this measure has been represented in this press release to provide readers with additional information regarding the Company's financial position, results, liquidity and its ability to generate future cash flows excluding revenue generated from seismic participation (multi-client) surveys. Cash EBITDA is defined as EBITDA less seismic participation (multi-client) revenue.



EBITDA and Cash EBITDA are calculated as follows:

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Three Months Ended Nine Months Ended
September 30 September 30
----------------------------------------------------------------------------
(Thousands) 2010 2009 2010 2009
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Net Income (Loss) $ (49,883) $(1,245) $(57,503) $ 1,094
Income Tax Expense (Reduction) (9,612) (1,526) (12,454) (1,874)
Other Income (loss) (41,500) (31) (41,406) 4,392
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Operating Income (Loss) $ (17,995) $(2,740) $(28,551) $ (5,172)
Interest 1,233 676 2,325 2,468
Depreciation and Amortization 7,753 7,967 24,847 27,442
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EBITDA (9,009) 5,903 (1,379) 24,738
Less: seismic participation revenue - - (1,970) (5,733)
----------------------------------------------------------------------------
Cash EBITDA $ (9,009) $ 5,903 $ (3,349) $ 19,005
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For the third quarter of 2010, the company generated $(9) million in cash EBITDA, a $14.9 million (253%) decrease from the $5.9 million generated for Q3 2009.

For the first nine months of 2010, the company generated $(3.3) million in cash EBITDA, a $22.4 million (118%) decrease from the $19 million generated for comparable period in 2009.

Divestco reports funds from operations because it is a key measure used by management to evaluate its performance and to assess the ability of the Company to finance operating activities and capital expenditures. Funds from operations excludes certain working capital changes and other sources and uses of cash, which are disclosed in the Consolidated Statements of Cash Flows.

Funds from operations is not a calculation based on Canadian GAAP and should not be considered an alternative to the Consolidated Statements of Cash Flows. Funds from operations is a measure that can be used to gauge Divestco's capacity to generate discretionary cash flow. Investors should be cautioned that funds from operations as reported by Divestco may not be comparable in all instances to funds from operations as reported by other companies. While the closest GAAP measure is cash flows from operating activities, funds from operations is considered relevant because it provides an indication of how much cash generated by operations is available before proceeds from divested assets and changes in certain working capital items.



Funds from operations is calculated as follows:

----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30 September 30
----------------------------------------------------------------------------
(Thousands) 2010 2009 2010 2009
----------------------------------------------------------------------------
Cash Flows from Operating Activities $ 3,789 $ 3,540 $12,218 $ 19,281
Changes in Non-Cash Working Capital
Balances (10,679) 6,733 (13,837) 4,875
Decrease in non-current deferred
revenue - - - 263
Decrease in Long-Term Prepaid Expense (80) (289) (238) (289)
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Funds from Operations $(6,970) $ 9,984 $(1,857) $ 24,130
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Financial Highlights

----------------------------------------------------------------------------
Financial Results (Thousands, Except Per Share Amounts)
----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30 September 30
----------------------------------------------------------------------------
2010 2009 $ Change % Change
----------------------------------------------------------------------------

Revenue $ 8,516 $ 13,411 $ (4,895) -36%

Operating Expenses 17,525 7,508 10,017 133%
----------------------------------------------------------------------------

EBITDA (9,009) 5,903 (14,912) -253%

Interest 1,233 676 557 82%

Depreciation and Amortization 7,753 7,967 (214) -3%
----------------------------------------------------------------------------

Operating Income (Loss) (17,995) (2,740) (15,255) 557%

Other Income (Loss) (41,500) (31) (41,469) 133771%

Income Tax Expense (Reduction) (9,612) (1,526) (8,086) 530%
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Net Income (Loss) $(49,883) $ (1,245) $(48,638) 3907%
Per Share - Basic (1.19) (0.03) (1.16) 3867%
Per Share - Diluted (1.19) (0.03) (1.16) 3867%
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Funds from Operations $ (6,970) $ 9,984 $(16,954) -170%
Per Share - Basic (0.17) 0.24 (0.41) -171%
Per Share - Diluted (0.17) 0.24 (0.41) -171%
----------------------------------------------------------------------------

Shares Outstanding 43,113 41,958 N/A 3%

Weighted Average Shares Outstanding
Basic 41,971 41,958 N/A 0%
Diluted 41,971 41,958 N/A 0%
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Cash EBITDA $ (9,009) $ 5,903 $(14,912) -253%
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Financial Results (Thousands, Except Per Share Amounts)
----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
September 30 September 30
----------------------------------------------------------------------------
2010 2009 $ Change % Change
----------------------------------------------------------------------------

Revenue $ 32,904 $ 51,707 $(18,803) -36%

Operating Expenses 34,283 26,969 7,314 27%
----------------------------------------------------------------------------

EBITDA (1,379) 24,738 (26,117) -106%

Interest 2,325 2,468 (143) -6%

Depreciation and Amortization 24,847 27,442 (2,595) -9%
----------------------------------------------------------------------------

Operating Income (Loss) (28,551) (5,172) (23,379) 452%

Other Income (Loss) (41,406) 4,392 (45,798) -1043%

Income Tax Expense (Reduction) (12,454) (1,874) (10,580) 565%
----------------------------------------------------------------------------

Net Income (Loss) $(57,503) $ 1,094 $(58,597) -5356%
Per Share - Basic (1.37) 0.03 (1.40) -4667%
Per Share - Diluted (1.37) 0.03 (1.40) -4667%
----------------------------------------------------------------------------

Funds from Operations $ (1,857) $ 24,130 $(25,987) -108%
Per Share - Basic (0.04) 0.58 (0.62) -107%
Per Share - Diluted (0.04) 0.58 (0.62) -107%
----------------------------------------------------------------------------

Shares Outstanding 43,113 41,958 N/A 3%

Weighted Average Shares Outstanding
Basic 41,962 41,958 N/A 0%
Diluted 41,962 41,958 N/A 0%
----------------------------------------------------------------------------

Cash EBITDA $ (3,349) $ 19,005 $(22,354) -118%
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Segment Review Summary

----------------------------------------------------------------------------
For the three months ended September 30, 2010 (Thousands)
----------------------------------------------------------------------------
Software Seismic Corporate
and Data Services Data & Other Total
----------------------------------------------------------------------------
Revenue $ 2,359 $ 4,319 $ 1,838 $ - $ 8,516
EBITDA 599 290 (2,416) (7,482) (9,009)
Interest (Net of Interest
Revenue) - (1) - 1,234 1,233
Depreciation and Amortization 648 341 6,604 160 7,753
Operating Income (Loss) (49) (50) (9,020) (8,876) (17,995)
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----------------------------------------------------------------------------
For the three months ended September 30, 2009 (Thousands)
----------------------------------------------------------------------------
Corporate
Software Services Data & Other Total
----------------------------------------------------------------------------
Revenue $ 2,616 $ 3,051 $ 7,744 $ - $ 13,411
EBITDA 1,286 (556) 6,826 (1,653) 5,903
Interest (Net of Interest
Revenue) 6 - 1 669 676
Depreciation and
Amortization 865 634 6,293 175 7,967
Operating Income (Loss) 415 (1,190) 532 (2,497) (2,740)
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----------------------------------------------------------------------------
For the nine months ended September 30, 2010 (Thousands)
----------------------------------------------------------------------------
Corporate
Software Services Data & Other Total
----------------------------------------------------------------------------
Revenue $ 7,083 $ 14,148 $ 11,673 $ - $ 32,904
EBITDA 2,428 2,154 5,559 (11,520) (1,379)
Interest (Net of Interest
Revenue) - - - 2,325 2,325
Depreciation and
Amortization 2,076 1,244 20,893 634 24,847
Operating Income (Loss) 352 910 (15,334) (14,479) (28,551)
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----------------------------------------------------------------------------
For the nine months ended September 30, 2009 (Thousands)
----------------------------------------------------------------------------
Corporate
Software Services Data & Other Total
----------------------------------------------------------------------------
Revenue $ 8,137 $ 16,089 $ 27,481 $ - $ 51,707
EBITDA 3,415 1,733 25,255 (5,665) 24,738
Interest (Net of Interest
Revenue) 17 (1) 20 2,432 2,468
Depreciation and
Amortization 1,906 2,174 22,237 1,125 27,442
Operating Income (Loss) 1,492 (440) 2,998 (9,222) (5,172)
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Divestco Inc.
Consolidated Balance Sheets

----------------------------------------------------------------------------
As at Sep 30, 2010 Dec 31, 2009
----------------------------------------------------------------------------
(Thousands - Unaudited)
----------------------------------------------------------------------------

Assets

Current Assets
Cash and cash equivalents $ 22,485 $ 768
Funds held in trust 11 17
Accounts receivable 13,123 19,267
Prepaid expenses, supplies and deposits 274 708
Income taxes receivable - 391
----------------------------------------------------------------------------
35,893 21,151

Long-term prepaid expense - 846
Investment in affiliated company 104 88
Data libraries 5,163 138,712
Participation surveys in progress 52 2,186
Property and equipment 2,202 2,747
Deferred development costs 7,699 6,699
Intangible assets 2,985 3,494
----------------------------------------------------------------------------

$ 54,098 $ 175,923
----------------------------------------------------------------------------

Liabilities and Shareholders' Equity

Current Liabilities
Accounts payable and accrued liabilities $ 18,429 $ 21,184
Income taxes payable 349 -
Current portion of deferred revenue 2,152 5,543
Sublease loss 175 -
Current portion of long-term debt obligations 476 6,217
----------------------------------------------------------------------------
21,581 32,944

Long-term debt obligations 216 20,685
Sublease loss 1,932 -
Convertible Debentures - 3,602
Future income taxes - 12,342
----------------------------------------------------------------------------
23,729 69,573
----------------------------------------------------------------------------

Shareholders' Equity
Equity instruments 71,801 70,518
Contributed surplus 5,767 5,473
Equity portion of convertible debentures - 56
Retained earnings (47,199) 30,303
----------------------------------------------------------------------------
30,369 106,350
----------------------------------------------------------------------------

$ 54,098 $ 175,923
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Divestco Inc.
Consolidated Statements of Income (Loss), Comprehensive Income (Loss) and
Retained Earnings

----------------------------------------------------------------------------
For the three months For the nine months
ended September 30 ended September 30
----------------------------------------------------------------------------
2010 2009 2010 2009
----------------------------------------------------------------------------
(Thousands, Except Per Share
Amounts - Unaudited)
----------------------------------------------------------------------------

Revenue $ 8,516 $ 13,411 $ 32,904 $ 51,707
----------------------------------------------------------------------------

Operating expenses
Salaries and benefits 6,276 4,453 16,224 16,801
General and administrative 8,514 2,956 15,159 9,677
Sublease loss 2,107 - 2,107 -
Stock compensation expense 628 99 793 491
----------------------------------------------------------------------------
17,525 7,508 34,283 26,969
----------------------------------------------------------------------------

Interest expense 1,233 676 2,325 2,468

Depreciation and amortization 7,753 7,967 24,847 27,442

Other income (loss) (41,500) (31) (41,406) 4,392
----------------------------------------------------------------------------

Income (loss) before income taxes (59,495) (2,771) (69,957) (780)
----------------------------------------------------------------------------
Income taxes
Current (recovery) (34) (4,630) (112) (4,468)
Future (reduction) (9,578) 3,104 (12,342) 2,594
----------------------------------------------------------------------------
(9,612) (1,526) (12,454) (1,874)
----------------------------------------------------------------------------

Net income (loss) and comprehensive
income (loss) for the period (49,883) (1,245) (57,503) 1,094

Retained earnings, beginning of
period 22,683 38,839 30,303 36,500
Distribution of Pulse shares to
Divestco shareholders (19,999) - (19,999) -
----------------------------------------------------------------------------

Retained earnings (deficit), end
of period $ (47,199) $ 37,594 $ (47,199) $ 37,594
----------------------------------------------------------------------------

Net income (loss) per share
Basic and Diluted $ (1.19) $ (0.03) $ (1.37) $ 0.03

Weighted average number of shares
Basic and Diluted 41,971 41,958 41,962 41,958

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Divestco Inc.
Consolidated Statements of Cash Flows

----------------------------------------------------------------------------
For the three months For the nine months
ended September 30 ended September 30
----------------------------------------------------------------------------
2010 2009 2010 2009
----------------------------------------------------------------------------
(Thousands)
----------------------------------------------------------------------------

Cash flows from operating
activities
Net income (loss) for the period $ (49,883) $ (1,245) $(57,503) $ 1,094
Items not affecting cash:
Equity investment gain (16) (15) (16) (14)
Depreciation and amortization of
data libraries, property and
equipment and intangible assets 7,245 7,440 23,214 26,070
Amortization of deferred
development costs 508 527 1,633 1,372
Amortization of deferred finance
costs 413 74 478 279
Amortization of deferred finance
costs and accretion of liability
portion of convertible debentures 110 - 148 -
Sublease loss 2,107 2,107 -
Future income taxes (reduction) (9,578) 3,104 (12,342) 2,594
Data exchanges - - (1,775) (3,321)
Loss on sale of data libraries 41,496 - 41,496 -
Gain on sale of property and equipment - - (90) (4,435)
Stock compensation expense 628 99 793 491
----------------------------------------------------------------------------
(6,970) 9,984 (1,857) 24,130

Changes in non-cash working capital
balances 10,679 (6,733) 13,837 (4,875)
Increase (Decrease) in non-current
deferred revenue - - - (263)
Decrease in long-term prepaid expense 80 289 238 289
----------------------------------------------------------------------------
3,789 3,540 12,218 19,281
----------------------------------------------------------------------------

Cash flows from (used in) financing
activities
Issue of common shares, net of
related expenses 728 - 728 -
Repayment of long-term debt
obligations (25,563) (137) (28,691) (8,756)
Repayment of debentures (3,750) - (3,750) -
Deferred financing costs (50) - (50) (75)
Proceeds received from long-term
debt obligations (net of committed
revolver repayments) 2,755 (1,383) 1,735 (4,365)
----------------------------------------------------------------------------
(25,880) (1,520) (30,028) (13,196)
----------------------------------------------------------------------------

Cash flows from (used in) investing
activities
Purchase of data libraries 451 (55) (2,196) (7,188)
Decrease in participation surveys in
progress 153 (1) 2,134 4,500
Purchase of property and equipment (257) (49) (699) (1,421)
Proceeds on sale of data libraries 54,434 - 54,434 -
Proceeds on sale of property and
equipment - - 93 3,340
Deferred development costs (1,617) (470) (2,633) (1,481)
Changes in non-cash working capital
balances (9,668) (1,196) (11,608) (4,296)
----------------------------------------------------------------------------
43,496 (1,771) 39,525 (6,546)
----------------------------------------------------------------------------

Foreign exchange gain on cash held
in a foreign currency 2 1 2 1
----------------------------------------------------------------------------

Increase (decrease) in cash and
cash equivalents 21,407 250 21,717 (460)

Cash and cash equivalents, beginning
of period 1,078 1,101 768 1,811
----------------------------------------------------------------------------

Cash and cash equivalents, end of
period $ 22,485 $ 1,351 $ 22,485 $ 1,351
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Divestco is an exploration services company that provides a comprehensive and integrated portfolio of data, software, and services to the oil and gas industry. Through continued commitment to align and bundle products and services to generate value for customers, Divestco is creating an unparalleled set of integrated solutions and unique benefits for the marketplace. Divestco's breadth of data, software and services offers customers the ability to access and analyze the information required to make business decisions and to optimize their success in the upstream oil and gas industry. Divestco is headquartered in Calgary, Alberta, Canada and trades on the TSX Venture Exchange under the symbol "DVT".

This press release contains forward-looking information related to the Company's capital expenditures, projected growth, view and outlook towards future oil and gas prices and market conditions, and demand for its products and services. Statements that contain words such as "could', "should", "can", "anticipate", "expect", "believe", "will", "may" and similar expressions and statements relating to matters that are not historical facts constitute "forward-looking information" within the meaning applicable by Canadian securities legislation. Although management of the Company believes that the expectations reflected in such forward-looking information are reasonable, there can be no assurance that such expectations will prove to have been correct because, should one or more of the risks materialize, or should the assumptions underlying forward-looking statements or forward-looking information prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Except where required by law, the Company does not assume any obligation to update these forward-looking statements or forward-looking information if conditions or opinions should change. Readers should not place undue reliance on forward-looking statements or forward-looking information. All of the forward-looking statements and forward-looking information of the Company contained in this press release are expressly qualified, in their entirety, by this cautionary statement.

In particular, this press release contains forward-looking statements pertaining to the following: the Company's ability to reduce debt, improve liquidity, correct its working capital deficiency and maintain profitability in the current economy; availability of external and internal funding for future operations; relative future competitive position of the Company; nature and timing of growth; future sales of the Company's seismic data library; oil and natural gas production levels; planned capital expenditure programs; supply and demand for oil and natural gas; future demand for products/services; commodity prices; fluctuations in interest rates; impact of Canadian federal and provincial governmental regulation on the Company; expected levels of operating costs, general administrative costs, costs of services and other costs and expenses; future ability to execute dispositions of assets or businesses; expectations regarding the Company's ability to raise capital and to add to seismic data through new seismic shoots and acquisition of existing seismic data; treatment under tax laws.

These forward-looking statements are based upon assumptions including: that future prices for crude oil and natural gas, future interest rates and future availability of debt and equity financing will be at levels and costs that allow the Company to manage, operate and finance its business and develop its software products and various oil and gas datasets including its seismic data library, and meet its future obligations; that the regulatory framework in respect of royalties, taxes and environmental matters applicable to the Company and its customers will not become so onerous on both the Company and its customers as to preclude the Company and its customers from viably managing, operating and financing its business and the development of its software and data; and that the Company will continue to be able to identify, attract and employ qualified staff and obtain the outside expertise as well as specialized and other equipment it requires to manage, operate and finance its business and develop its properties.

These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the Company's control, including: general economic, market and business condition; volatility in market prices for crude oil and natural gas; ability of Divestco's clients to explore for, develop and produce oil and gas; availability of financing and capital; fluctuations in interest rates; demand for the Company's product and services; weather and climate conditions; competitive actions by other companies; availability of skilled labour; failure to obtain regulatory approvals in a timely manner; adverse conditions in the debt and equity markets; and government actions including changes in environment and other regulations.

The TSXV has not reviewed nor accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Divestco Inc.
    Mr. Stephen Popadynetz
    Chief Executive Officer
    403-218-6466
    or
    Divestco Inc.
    Mr. Roderick Chisholm
    Chief Financial Officer
    403-218-6450
    www.divestco.com