Divestco Inc.
TSX VENTURE : DVT

Divestco Inc.

April 16, 2012 09:30 ET

Divestco Reports Fiscal and Q4 2011 Results

CALGARY, ALBERTA--(Marketwire - April 16, 2012) - Divestco Inc. (TSX VENTURE:DVT) ("Divestco" or the "Company") announces its operating results for the three and twelve months ended December 31, 2011.

Accounting Policy Changes

On January 1, 2011, Divestco adopted International Financial Reporting Standards ("IFRS") for purposes of financial reporting, using a transition date of January 1, 2010. Accordingly, the Company's consolidated financial statements for the year ended December 31, 2011 and the comparative information for the year ended December 31, 2010, have been prepared in accordance with IFRS 1, "First-time Adoption of Int ernational Financial Reporting Standards", as issued by the International Accounting Standards Board ("IASB"). Previously, the Company prepared its consolidated financial statements in accordance with Canadian generally accepted accounting principles ("CGAAP"). The adoption of IF RS has not had an impact on the Company's operations and strategic decisions.

Results for the Three Months Ended December 31, 2011

Divestco recorded EBITDA of $3.3 million in Q4 2011, a $7.9 million increase from a loss of $4.6 million for the same period in 2010. The Company generated funds from operations of $2.9 million ($0.05 per share - basic and diluted) for t he fourth quarter of 2011, an increase of $6.3 million as compared to funds used in operations of $3.4 million ($0.08 per share - basic and diluted) for the same period in 2010.

Divestco significantly reduced its net loss for the fourth quarter of 2011 to $0.8 million ($0.01 per share - basic and diluted) compared to a net lo ss of $7.1 million ($0.16 per share - basic and diluted) for the same period in 2010. Revenues increased and operating costs decreased, however, depreciation and amortization increased due to the two new seismic surveys that the Company completed in Q4 2011.

During Q4 2011, Divestco generated revenue of $11.4 million compared to $8.9 million in Q4 2010, an increase of $2.5 million (28%) indicative of a resurgence in the industry activity. Revenue in the Seismic Data segment increased by $1.9 million (70%) as the Company shot two new seismic participation surveys and commenced a third survey in Q4 2011. In line with high oil prices, the surveys were shot within predominantly oil prospective areas. Revenue in the Software and Data segment grew by $0.3 million (11%) due to a significant sale in Q4 2011. Revenue in the Services segment improved by $0.3 million (8%) as the demand for seismic processing was also stronger.

Operating expenses decreased by $5.3 million (39%) to $8.2 million in Q4 2011 from $13.5 million in Q4 2010. Salaries and wages were down $0.9 million (17%) due to reduced staffing levels. In addition, a $1.2 million sublease loss recognized in Q4 2010 was not repeated in Q4 2011, occupancy costs decreased by $0.6 million (15%) and bad debt expense decreased by $2.4 million (114%) due to a non-recurring write-off in Q4 2010. Depreciation and amortization increased by $2 million (113%) due to the completion of two seismic participation surveys in Q4 2011.

Results for the Year Ended December 31, 2011

Divestco recorded EBITDA of $6 million in 2011, a $54.8 million increase from a loss of $48.8 million in 2010. The loss in 2010 included a $40.9 million accounting loss on the sale of the seismic assets. The Company generated funds from operations of $5.7 million ($0.10 per share - basic and diluted) for the year ended December 31, 2011, compared to funds used in operations of $5.3 million ($0.13 per share - basic and dilute d) for the same period in 2010, an increase of $11 million.

Divestco realized a net loss for 2011 of $4.6 million ($0.08 per share - basic and diluted) compared to a net loss of $65.6 million ($1.54 per share - basic and diluted) for the same period in 2010. Excluding an accounting loss of $29.5 million ($40.9 million net of tax of $11.4 million) related to the sale of the Company's seismic data assets in 2010, the reduction in net loss year over year of $31.5 million was primarily due to a $13.1 million (28%) decrease in operating expenses, $2.2 million (73%) decrease in finance costs due to a lower debt load and a $16.7 million (63%) decrease in depreciation and amortization due to the sale of the seismic assets.

During 2011, Divestco generated revenue of $40.5 million, an increase of $0.3 million (1%) from $40.2 million for the same period in 2010. Revenue in the Seismic Data segment increased by $1 million (8%) as the Company shot three seismic participation surveys and commenced a fourth survey in 2011. Offsetting this was a decrease in sales of existing seismic data due to the sale of the Company's seismic assets in Q3 2010. Seismic brokerage revenue was down slightly from 2010. Revenue in the Software and Data segment was flat as a large software sale in 2011 and improved sales in log data were offset by a decrease in support data revenue. Revenue in the Services segment decreased by $0.8 million (4%) as the demand across all divisions was softer in the first three quarters of 2011. The exception was the land management division where crown land revenue increased due to higher land sales then in previous years, reflecting the record land sales in Alberta.

The decrease in operating expenses of $13.1 million (28%) was due to salaries and wages being down $2.6 million (12%) due to reduced staffing levels partially offset by severance costs. In addition there was a $3.3 million sublease loss recognized in 2010 which was not repeated in 2011, bad debt expense decreased by $5.4 million (104%) due to a large write-off in 2010, stock based compensation expense decreased by $0.5 million (86%) and seismic data storage costs decreased by $0.5 million (100%) due to the sale of the seismic assets.

Seismic data update

Late in 2010, Divestco commenced rebuilding its seismic data library by initiating a 71 square kilometer 3D seismic survey which was completed in early 2011. The Company also obtained the trading rights to an existing 3D survey covering an adjacent area of 66 square kilometers in Q1 2011 through a data exchange. Also in 2011, the Company completed two new 3D surveys in central Alberta (Cochrane North and Three Hills) covering an area of approximately 251 square kilometers. In Q4 2011, the Company commenced two more 3D surveys (Brazeau and Big Valley), which were completed in Q1 2012 covering an area of approximately 260 square kilometers. In Q1 2012, Divestco commenced its Ante Creek survey which is expected to be completed early in Q2 2012 and cover approximately 120 square kilometers.

Mr. Stephen Popadynetz, CEO, President and CFO: "We are very pleased to report that Divestco significantly reduced its operating expenses in 2011. As previously announced in December 2011, further savings will be realized in 2012 with the surrender of five floors of office space by the end of the current year. In 2012, the savings amounts to $4 million and $5 million annually thereafter. We are also pleased with the progress we have made towards rebuilding our seismic data library. Approximately 389 square kilometers of seismic has been added to our library in 2011 and a further 380 kilometers are expected to be added by the end of April 2012. Overall demand for seismic data and general activity levels in the industry so far this year appear to be trending positively. We are well on track to sustained profitability and positive earnings and we look forward to delivering better results for our shareholders."

Non-GAAP Measures

The Company's consolidated financial statements have been prepared in accordance with IFRS. Certain measures in this document do not have any standardized meaning as prescribed by IFRS and are considered non-GAAP measures. These terms are not measures that have any standardized meaning prescribed by IFRS and are considered non-GAAP measures. While these measures may not be comparable to similar measures presented by other issuers, they are described and presented in this MD&A to provide shareholders and potential investors with additional information regarding the Company's results, liquidity, and its ability to generate funds to finance its operations. These measures include:

Earnings before interest, taxes, depreciation and amortization ("EBITDA")

Divestco uses EBITDA as a key measure to evaluate the performance of its segments and divisions as well as the Company overall, with the closest IFRS measure being net income or loss. EBITDA is a measure 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 assists 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.

Previously the Company excluded "other Income (loss )" as presented on its statement of income (loss) and comprehensive income (loss). Other income (loss) includes the following items: foreign exchange gains/losses, gains/losses on sales of property and equipment and intangibles, and equity investment income/loss. Other income (loss) has been included in the calculation of EBITDA for the current and prior periods.

The Company no longer uses "operating income (loss) " as a non-GAAP measure. Instead the Company uses the closest GAAP measure, being income or loss before income taxes.

EBITDA is not a calculation based on IFRS and should not be considered alternatives to net income or loss in measuring the Company's performance. As well, EBITDA should not be used as an exclusive measure of cash flow, because it does 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. While EBITDA has 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 as reported by Divestco may not be comparable in all instances to EBITDA as reported by other companies. Investors should also carefully consider the specific items included in Divestco's computation of EBITDA.

The following is a reconciliation of EBITDA with net income:

Three Months Ended December 31 Year Ended December 31
(Thousands) 2011 2010 2011 2010
Net Income (Loss) $ (768 ) $ (7,105 ) $ (4,610 ) $ (65,562 )
Income Tax Expense (Reduction) 25 (1 ) 86 (12,921 )
Finance Costs 252 724 759 3,049
Depreciation and Amortization 3,823 1,795 9,904 26,642
EBITDA $ 3,332 $ (4,587 ) $ 6,139 $ (48,792 )

Funds from operations

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 and investing activities. 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 IFRS 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 IFRS 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.

The following reconciles funds from operations with cash flows from operating activities:

Year Ended December 31
(Thousands) 2011 2010
Cash Flows from Operating Activities $ 5,093 $ 3,643
Changes in non-cash Working Capital Balances Related to Operating Activities 411 (11,112 )
Changes in Long-term Prepaid Expense - (238 )
Interest Paid 593 2,403
Income Taxes Refunded (352 ) (12 )
Funds From (Used in) Operations $ 5,745 $ (5,316 )

Funded debt and funded debt to equity

Funded debt is a measure of Divestco's long term debt position and includes bank indebtedness, long-term debt obligations (shareholder and subordinated loans and finance leases) and convertible debentures. Funded debt to equity is funded debt divided by shareholders' equity (as reported on the Company's consolidated statement of financial position). The ratio indicates what proportion of equity and debt the Company is using to finance its assets and is used by the Company to determine an appropriate capital structure.

Working capital

Working Capital is calculated as current assets minus current liabilities (excluding deferred revenue). Working capital provides is a measure that can be used to gauge Divestco's ability to meet its current obligations.

Financial Highlights
Financial Results (Thousands, Except Per Share Amounts)
Three Months Ended December 31 Year Ended December 31
2011 2010 $
Change
% Change 2011 2010 $
Change
% Change
Accounting base IFRS IFRS IFRS IFRS
Revenue $ 11,447 $ 8,949 $ 2,498 28 % $ 40,464 $ 40,190 $ 274 1 %
Operating Expenses 8,248 13,526 (5,278 ) -39 % 34,485 47,566 (13,081 ) -28 %
Other Loss (Income) (133 ) 10 (143 ) N/A (160 ) 41,416 (41,576 ) N/A
EBITDA 3,332 (4,587 ) 7,919 N/A 6,139 (48,792 ) 54,931 N/A
Finance Costs 252 724 (472 ) -65 % 759 3,049 (2,290 ) -75 %
Depreciation and Amortization 3,823 1,795 2,028 113 % 9,904 26,642 (16,738 ) -63 %
Income (Loss) before Income Taxes (743 ) (7,106 ) 6,363 N/A (4,524 ) (78,483 ) 73,959 N/A
Income Tax Expense (Benefit) 25 (1 ) 26 N/A 86 (12,921 ) 13,007 N/A
Net Income (Loss) $ (768 ) $ (7,105 ) $ 6,337 N/A $ (4,610 ) $ (65,562 ) $ 60,952 N/A
Per Share - Basic and Diluted (0.01 ) (0.16 ) 0.15 N/A (0.08 ) (1.54 ) 1.46 N/A
Cash Dividends per Class A Share $ - $ 0.20 $ (0.20 ) -100 % $ - $ 0.20 $ (0.20 ) -100 %
Funds from (used in) Operations $ 2,908 $ (3,382 ) $ 6,290 N/A $ 5,745 $ (5,316 ) $ 11,061 N/A
Per Share - Basic and Diluted 0.05 (0.08 ) N/A N/A 0.10 (0.13 ) N/A N/A
Shares Outstanding 66,610 58,938 N/A N/A 66,610 58,938 N/A N/A
Weighted Average Shares Outstanding
Basic and Diluted 60,575 44,491 N/A N/A 59,797 42,601 N/A N/A

Segment Review Summary

For the three months ended December 31, 2011 (Thousands)

Software and
Data
Services Seismic Data Corporate & Other Total
Revenue $ 2,566 $ 4,195 $ 4,686 $ - $ 11,447
EBITDA 1,142 1,186 3,966 (2,962 ) 3,332
Finance costs - (1 ) (1 ) 254 252
Depreciation and Amortization 706 294 2,631 192 3,823
Income (loss) before income taxes 436 893 1,336 (3,408 ) (743 )
Gain (loss) on sale of intangibles and property and equipment - - - 146 146
For the three months ended December 31, 2010 (Thousands)
Software Services Data Corporate & Other Total
Revenue $ 2,303 $ 3,896 $ 2,750 $ - $ 8,949
EBITDA 838 93 (363 ) (5,155 ) (4,587 )
Finance costs - (1 ) (1 ) 726 724
Depreciation and Amortization 1,251 414 47 83 1,795
Income (loss) before income taxes (413 ) (320 ) (409 ) (5,964 ) (7,106 )
Gain (loss) on sale of intangibles and property and equipment - - - - -
For the year ended December 31, 2011 (Thousands)
Software Services Data Corporate & Other Total
Revenue $ 9,414 $ 17,266 $ 13,784 $ - $ 40,464
EBITDA 3,541 3,620 10,651 (11,673 ) 6,139
Finance costs - (3 ) (6 ) 768 759
Depreciation and Amortization 3,453 1,098 3,632 1,721 9,904
Income (loss) before income taxes 88 2,525 7,025 (14,162 ) (4,524 )
Gain (loss) on sale of intangibles and property and equipment - - - 146 146
For the year ended December 31, 2010 (Thousands)
Software Services Data Corporate & Other Total
Revenue $ 9,386 $ 18,044 $ 12,760 $ - $ 40,190
EBITDA 3,265 2,337 (37,963 ) (16,431 ) (48,792 )
Finance costs - (1 ) (1 ) 3,051 3,049
Depreciation and Amortization 3,327 1,658 20,940 717 26,642
Income (loss) before income taxes (62 ) 680 (58,902 ) (20,199 ) (78,483 )
Gain (loss) on sale of intangibles and property and equipment - 90 (41,496 ) - (41,406 )

Divestco Inc.

Consolidated Statement of Financial Position

December 31 December 31 January 1
(Thousands) 2011 2010 2010
Assets
Current Assets
Cash $ 1,547 $ 3,696 $ 768
Funds held in trust 40 15 17
Accounts receivable 11,810 11,759 19,267
Prepaid expenses, supplies and deposits 235 237 708
Income taxes receivable 110 287 391
Asset held for sale 2,500 - -
Total current assets 16,242 15,994 21,151
Long-term prepaid expense - - 846
Investment in affiliated company 141 100 88
Participation surveys in progress 5,108 1,253 2,186
Property and equipment 4,147 3,026 2,747
Intangible assets 18,123 14,611 148,905
Total assets $ 43,761 $ 34,984 $ 175,923
Liabilities and Shareholders' Equity
Current Liabilities
Bank indebtedness $ 3,700 $ 2,050 $ -
Accounts payable and accrued liabilities 10,669 8,248 21,184
Deferred revenue 4,561 2,709 3,880
Current loss on sublease loss provision 320 1,729 -
Current portion of long-term debt obligations 1,143 368 26,639
Current portion of tenant inducement 113 - -
Total current liabilities 20,506 15,104 51,703
Deferred rent obligations 1,124 - -
Long-term debt obligations 4,591 188 263
Sublease loss provision 1,332 1,622 -
Tenant Inducements 1,397 - -
Other long-term liabilities 100 - -
Convertible debentures - - 3,602
Deferred income taxes - - 12,808
Total liabilities 29,050 16,914 68,376
Shareholders' Equity
Equity instruments 76,431 75,253 70,518
Contributed surplus 5,663 5,590 5,562
Equity portion of convertible debentures - - 56
Retained earnings (deficit) (67,383 ) (62,773 ) 31,411
Total shareholders' equity 14,711 18,070 107,547
Total liabilities and shareholders' equity $ 43,761 $ 34,984 $ 175,923

Divestco Inc.

Consolidated Statement of Loss and Comprehensive Loss

For the three months ended For the year
December 31 ended December 31
(Thousands, Except Per Share Amounts - Unaudited) 2011 2010 2011 2010
Revenue $ 11,447 $ 8,949 $ 40,464 $ 40,190
Operating expenses
Salaries and benefits 4,251 5,120 18,748 21,344
General and administrative 3,978 7,207 15,664 22,366
Sublease loss - 1,222 - 3,329
Stock compensation expense 19 (23 ) 73 527
Total operating expenses 8,248 13,526 34,485 47,566
Finance costs 252 724 759 3,049
Depreciation and amortization 3,823 1,795 9,904 26,642
Other loss (income) (133 ) 10 (160 ) 41,416
Loss before income taxes (743 ) (7,106 ) (4,524 ) (78,483 )
Income taxes
Current (recovery) 25 (1 ) 86 (113 )
Deferred (reduction) - - - (12,808 )
25 (1 ) 86 (12,921 )
Net loss and comprehensive loss for the period (768 ) (7,105 ) $ (4,610 ) $ (65,562 )
Net loss per share
Basic and Diluted $ (0.01 ) $ (0.16 ) $ (0.08 ) $ (1.54 )
Weighted average number of shares
Basic and Diluted 60,575 44,491 59,797 42,601

Divestco Inc.

Consolidated Statement of Changes in Equity

(Thousands - Unaudited) Number of Shares Issued Share
Capital
Number of
Warrants
Issued
Warrants Equity
Instruments
Contributed
Surplus
Equity
portion of
convertible
debentures
Retained
Earnings
(Deficit
) Total
Equity
Balance at January 1, 2010 41,958 $ 70,518 - $ - $ 70,518 $ 5,562 $ 56 $ 31,411 $ 107,547
Net loss and comprehensive loss for the year (65,562 ) (65,562 )
Distribution of Pulse shares to Divestco shareholders (19,999 ) (19,999 )
Dividends paid (8,623 ) (8,623 )
Transactions with owners, recorded in equity contributions by and distributions to owners:
Issue of Class A common shares 16,980 2,401 15,825 1,808 4,209 4,209
Reclassification on exercise of stock options 555 555 (555 ) -
Reclassification on repayment of convertible debentures 56 (56 ) -
Share-based payment transactions 527 527
Share issue costs (29 ) (29 ) (29 )
Balance at December 31, 2010 58,938 $ 73,445 15,825 $ 1,808 $ 75,253 $ 5,590 $ - $ (62,773 ) $ 18,070
Net loss and comprehensive loss for the year (4,610 ) (4,610 )
Issue of Class A common shares 7,672 1,133 455 52 1,185 1,185
Issue on exercise of stock options - -
Reclassification on exercise of stock options and incentive-based units - -
Share-based payment transactions 73 73
Share issue costs (7 ) (7 ) (7 )
Balance at December 31, 2011 66,610 $ 74,571 16,280 $ 1,860 $ 76,431 $ 5,663 $ - $ (67,383 ) $ 14,711

Divestco Inc.

Consolidated Statement of Cash Flows

For the year ended December 31
(Thousands - Unaudited)) 2011 2010
Cash flows from operating activities
Net loss for the period $ (4,610 ) $ (65,562 )
Items not affecting cash:
Equity investment income (12 ) (12 )
Depreciation and amortization 9,904 26,642
Sublease loss (839 ) 3,329
Amortization of tenant inducements (109 ) -
Deferred rent obligations 557 -
Income taxes 86 (12,921 )
Data exchanges - (1,775 )
Loss on sale of intangibles - 41,496
Gain on sale of property and equipment (146 ) (90 )
Unrealized foreign exchange loss (3 ) 1
Non-cash employment benefits 85 -
Share-based payments 73 527
Finance costs 759 3,049
Funds from (used in) operations 5,745 (5,316 )
Changes in non-cash working capital balances (411 ) 11,112
Changes in long-term prepaid expense - 238
Interest paid (593 ) (2,403 )
Income taxes refunded (paid) 352 12
Net cash flows from operating activities 5,093 3,643
Cash flows from (used in) financing activities
Bank indebtedness 1,650 2,050
Issue of common shares (net of related costs) 1,093 4,180
Dividends paid - (8,623 )
Repayment of long-term debt obligations (406 ) (28,883 )
Repayment of debentures - (3,750 )
Deferred financing costs (153 ) (50 )
Proceeds received from long-term debt obligations (net of committed revolver repayments) 5,500 1,737
Net cash flows from (used in) financing activities 7,684 (33,339 )
Cash flows from (used in) investing activities
Additions to intangible assets (9,012 ) (2,196 )
Decrease (increase) in participation surveys in progress (3,855 ) 933
Purchase of property and equipment (5,907 ) (1,760 )
Additions to tenant inducements 3,596 -
Lease incentive 1,000 -
Payments towards sublease loss provision (922 ) -
Investment in affiliates (29 ) -
Proceeds on sale of data libraries - 54,434
Proceeds on sale of property and equipment - 93
Deferred development costs (2,475 ) (2,695 )
Changes in non-cash working capital balances 2,678 (16,185 )
Net cash flows from (used in) investing activities (14,926 ) 32,624
Increase (decrease) in cash (2,149 ) 2,928
Cash, beginning of year 3,696 768
Cash, end of year $ 1,547 $ 3,696

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 ap plicable 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. 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. 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.

In particular, this press release contains forward-looking statements pertaining to the following: Company's ability to keep debt and liquidity at acceptable levels, improve/maintain its working capital position 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; 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; impact of Canadian federal and provincial governmental regulation on the Company; expected levels of operating costs, finance costs and other costs and expenses; future ability to execute acquisitions and 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; and new accounting pronouncements.

These forward-looking statements are based upon assumptions including: 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; 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 conditions; 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 regulation.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Divestco Inc.
    Mr. Stephen Popadynetz
    CEO, President and CFO
    587-952-8152

    Divestco Inc.
    Mr. Danny Chiarastella
    Vice President, Finance
    587-952-8027
    www.divestco.com