CALGARY, ALBERTA--(Marketwire - Aug. 29, 2011) - Divestco Inc. ("Divestco" or the "Company") (TSX VENTURE:DVT) announces its operating results for the three and six months ended June 30, 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 interim condensed consolidated financial statements for the three and six months ended June 30, 2011 and the comparative information for the three months and six ended June 30, 2010, have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as issued by the International Accounting Standards Board ("IASB"). Previously, the Company prepared its interim and annual consolidated financial statements in accordance with Canadian generally accepted accounting principles ("previous GAAP"). The adoption of IFRS has not had an impact on the Company's operations and strategic decisions.
Results for the Three Months Ended June 30, 2011
Divestco realized net income for the second quarter of 2011 of $235,000 ($nil per share – basic and diluted) compared to net loss of $4.6 million ($0.11 cents per share – basic and diluted) for the same period in 2010. The increase of $4.8 million (105%) was due to a decrease in finance costs of $356,000 (68%), namely interest on long-term debt, and a decrease in depreciation and amortization by $6.3 million (81%) mainly due to the sale of the Company's seismic data assets in Q3 2010. Offsetting this was an increase in operating expenses by $451,000 (5%) mainly due to double rent and severance costs.
During Q2 2011 and Q2 2010, Divestco generated revenue of $10.6 million. EBITDA was $1.9 million in Q2 2011, a $0.5 million (19%) decrease from $2.4 million for the same period in 2010. The Company generated funds from operations of $2.1 million ($0.03 per share – basic and diluted) for the second quarter of 2011, compared to $2.4 million ($0.06 per share – basic and diluted) for the same period in 2010.
Results for the Six Months Ended June 30, 2011
Divestco realized a net loss for the first six months of 2011 of $4.1 million ($0.07 per share – basic and diluted) compared to net loss of $8.8 million ($0.21 cents per share – basic and diluted) for the same period in 2010. The net loss in for the six months ended June 30, 2011 was primarily due to a decrease in revenue from the sale of the Company's seismic assets in Q3 2010 as well as double rent commitments and expenses related to the Company's office space. This was offset by a decrease in depreciation and amortization by $12.1 million (71%) mainly due to the sale of the Company's seismic data assets in Q3 2010.
During the first six months of 2011, Divestco generated revenue of $19.5 million, a decrease of $3.2 million (14%) from $22.7 million for the same period in 2010. EBITDA was $1.1 million, a $4.9 million (82%) decrease from $6 million for the same period in 2010. The Company generated funds from operations of $1.2 million ($0.02 per share – basic and diluted) for the six months ended June 30, 2011, compared to $4.4 million ($0.10 per share – basic and diluted) for the same period in 2010.
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. In Q2 2011, the Company commenced a 3D survey in central Alberta which is expected to cover an area of approximately 200 square kilometers.
Mr. Stephen Popadynetz, CEO, President and CFO: "We are continuing to restructure our Company and as we do so, we have had to incur several non-recurring expenses. In the second quarter of 2011 alone, Divestco incurred one-time expenses related to double rent and severance of $1.3 million. Despite these charges, Divestco had a profitable quarter and continues to improve its cash flow. Our results should improve as more of these non-recurring expenses are completed and behind us. We feel we are well on track to sustained profitability and positive earnings and we look forward to delivering better results as the year progresses for our shareholders."
Non-GAAP Measures
The Company's interim condensed 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.
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 IFRS 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 statement 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.
EBITDA is calculated as follows:
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
| (Thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||
| Net Income (Loss) | $ | 235 | $ | (4,561 | ) | $ | (4,097 | ) | $ | (8,772 | ) | |
| Income Tax Expense (Reduction) | 16 | (1,400 | ) | 65 | (3,309 | ) | ||||||
| Other Loss (Income) | 2 | (14 | ) | 2 | (94 | ) | ||||||
| Operating Income (Loss) | $ | 253 | $ | (5,975 | ) | $ | (4,030 | ) | $ | (12,175 | ) | |
| Finance costs | 167 | 523 | 204 | 1,092 | ||||||||
| Depreciation and Amortization | 1,525 | 7,858 | 4,914 | 17,094 | ||||||||
| EBITDA | 1,945 | 2,406 | 1,088 | 6,011 | ||||||||
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 statement of cash flows.
Funds from operations is not a calculation based on IFRS and should not be considered an alternative to the consolidated statement 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:
| Six Months Ended June 30 | ||||||
| (Thousands) | 2011 | 2010 | ||||
| Cash Flows from Operating Activities | $ | 2,852 | $ | 8,839 | ||
| Changes in Non-Cash Working Capital Balances Related to Operating Activities | (1,744 | ) | (5,019 | ) | ||
| Changes in Long-term Prepaid Expense | - | (158 | ) | |||
| Interest Paid | 141 | 988 | ||||
| Income Taxes Refunded | (51 | ) | (290 | ) | ||
| Funds from Operations | $ | 1,198 | $ | 4,360 | ||
| Financial Highlights |
| (Thousands, except per share amounts) | Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||
| 2011 | 2010 | $ Change | % Change | 2011 | 2010 | $ Change | % Change | ||||||||||||||||||
| Revenue | $ | 10,637 | $ | 10,647 | $ | (10 | ) | 0 | % | $ | 19,452 | $ | 22,725 | $ | (3,273 | ) | -14 | % | |||||||
| Operating Expenses | 8,692 | 8,241 | 451 | 5 | % | 18,364 | 16,714 | 1,650 | 10 | % | |||||||||||||||
| EBITDA | 1,945 | 2,406 | (461 | ) | -19 | % | 1,088 | 6,011 | (4,923 | ) | -82 | % | |||||||||||||
| Finance Costs | 167 | 523 | (356 | ) | -68 | % | 204 | 1,092 | (888 | ) | -81 | % | |||||||||||||
| Depreciation and Amortization | 1,525 | 7,858 | (6,333 | ) | -81 | % | 4,914 | 17,094 | (12,180 | ) | -71 | % | |||||||||||||
| Operating Income (Loss) | 253 | (5,975 | ) | 6,228 | -104 | % | (4,030 | ) | (12,175 | ) | 8,145 | -67 | % | ||||||||||||
| Other Loss (Income) | 2 | (14 | ) | 16 | -114 | % | 2 | (94 | ) | 96 | -102 | % | |||||||||||||
| Income Tax Expense (Reduction) | 16 | (1,400 | ) | 1,416 | -101 | % | 65 | (3,309 | ) | 3,374 | -102 | % | |||||||||||||
| Net Income (Loss) | $ | 235 | $ | (4,561 | ) | $ | 4,796 | -105 | % | $ | (4,097 | ) | $ | (8,772 | ) | $ | 4,675 | -53 | % | ||||||
| Per Share - Basic and Diluted | - | (0.11 | ) | 0.11 | -100 | % | (0.07 | ) | (0.21 | ) | 0.14 | -67 | % | ||||||||||||
| Funds from Operations | $ | 2,067 | $ | 2,422 | $ | (355 | ) | -15 | % | $ | 1,198 | $ | 4,360 | $ | (3,162 | ) | -73 | % | |||||||
| Per Share - Basic and Diluted | 0.03 | 0.06 | (0.03 | ) | -50 | % | 0.02 | 0.10 | (0.08 | ) | -80 | % | |||||||||||||
| Shares Outstanding | 59,585 | 41,958 | 17,627 | 42 | % | 59,585 | 41,958 | 17,627 | 42 | % | |||||||||||||||
| Weighted Average Shares Outstanding | |||||||||||||||||||||||||
| Basic | 59,471 | 41,958 | 17,513 | 42 | % | 59,408 | 41,958 | 17,450 | 42 | % | |||||||||||||||
| Diluted | 59,471 | 41,958 | 17,513 | 42 | % | 59,408 | 41,958 | 17,450 | 42 | % | |||||||||||||||
| Segment Review Summary |
| For the three months ended June 30, 2011 (Thousands) |
| Software and Data |
Services | Seismic Data | Corporate & Other |
Total | |||||||||||
| Revenue | $ | 2,361 | $ | 4,480 | $ | 3,796 | $ | - | $ | 10,637 | |||||
| EBITDA | 662 | 910 | 3,177 | (2,804 | ) | 1,945 | |||||||||
| Finance costs | - | (1 | ) | (1 | ) | 169 | 167 | ||||||||
| Depreciation and Amortization | 906 | 272 | 34 | 313 | 1,525 | ||||||||||
| Operating Income (Loss) | (244 | ) | 639 | 3,144 | (3,286 | ) | 253 | ||||||||
| For the three months ended June 30, 2010 (Thousands) | |||||||||||||||
| Software | Services | Data | Corporate & Other |
Total | |||||||||||
| Revenue | $ | 2,304 | $ | 4,336 | $ | 4,007 | $ | - | $ | 10,647 | |||||
| EBITDA | 903 | 493 | 3,278 | (2,268 | ) | 2,406 | |||||||||
| Finance costs | - | - | - | 523 | 523 | ||||||||||
| Depreciation and Amortization | 694 | 374 | 6,614 | 176 | 7,858 | ||||||||||
| Impairment of goodwill and intangibles | - | - | - | - | - | ||||||||||
| Operating Income (Loss) | 209 | 119 | (3,336 | ) | (2,967 | ) | (5,975 | ) | |||||||
| For the six months ended June 30, 2011 (Thousands) | |||||||||||||||
| Software | Services | Data | Corporate & Other |
Total | |||||||||||
| Revenue | $ | 4,539 | $ | 9,606 | $ | 5,307 | $ | - | $ | 19,452 | |||||
| EBITDA | 1,433 | 2,312 | 3,744 | (6,401 | ) | 1,088 | |||||||||
| Finance costs | - | (1 | ) | (3 | ) | 208 | 204 | ||||||||
| Depreciation and Amortization | 2,037 | 563 | 972 | 1,342 | 4,914 | ||||||||||
| Operating Income (Loss) | (604 | ) | 1,750 | 2,775 | (7,951 | ) | (4,030 | ) | |||||||
| For the six months ended June 30, 2010 (Thousands) | |||||||||||||||
| Software | Services | Data | Corporate & Other |
Total | |||||||||||
| Revenue | $ | 4,724 | $ | 9,829 | $ | 8,172 | $ | - | $ | 22,725 | |||||
| EBITDA | 1,829 | 1,864 | 6,314 | (3,996 | ) | 6,011 | |||||||||
| Finance costs | - | - | - | 1,092 | 1,092 | ||||||||||
| Depreciation and Amortization | 1,428 | 903 | 14,291 | 472 | 17,094 | ||||||||||
| Operating Income (Loss) | 401 | 961 | (7,977 | ) | (5,560 | ) | (12,175 | ) | |||||||
| Divestco Inc. |
| Condensed Consolidated Statement of Financial Position |
| June 30 | , | December 31 | , | ||||
| As at | 2011 | 2010 | |||||
| (Thousands - Unaudited) | |||||||
| Assets | |||||||
| Current Assets | |||||||
| Cash | $ | 903 | $ | 3,696 | |||
| Funds held in trust | 16 | 15 | |||||
| Accounts receivable | 12,137 | 11,759 | |||||
| Prepaid expenses, supplies and deposits | 224 | 237 | |||||
| Income taxes receivable | 264 | 287 | |||||
| 13,544 | 15,994 | ||||||
| Investment in affiliated company | 128 | 100 | |||||
| Participation surveys in progress | 2,819 | 1,253 | |||||
| Property and equipment | 5,783 | 3,026 | |||||
| Intangible assets | 14,966 | 14,611 | |||||
| $ | 37,240 | $ | 34,984 | ||||
| Liabilities and Shareholders' Equity | |||||||
| Current Liabilities | |||||||
| Bank indebtedness | $ | 1,500 | $ | 2,050 | |||
| Accounts payable and accrued liabilities | 7,724 | 8,248 | |||||
| Deferred revenue | 2,934 | 2,710 | |||||
| Current loss on sublease loss provision | 1,193 | 1,729 | |||||
| Current portion of long-term debt obligations | 1,044 | 368 | |||||
| Current portion of tenant inducement | 141 | - | |||||
| 14,536 | 15,105 | ||||||
| Deferred rent obligations | 992 | - | |||||
| Long-term debt obligations | 4,297 | 188 | |||||
| Sublease loss provision | 1,402 | 1,621 | |||||
| Tenant Inducements | 1,810 | - | |||||
| Other long-term liabilities | 100 | - | |||||
| 23,137 | 16,914 | ||||||
| Shareholders' Equity | |||||||
| Equity instruments | 75,383 | 75,253 | |||||
| Contributed surplus | 5,590 | 5,590 | |||||
| Deficit | (66,870 | ) | (62,773 | ) | |||
| 14,103 | 18,070 | ||||||
| $ | 37,240 | $ | 34,984 | ||||
| Divestco Inc. |
| Condensed Consolidated Statement of Income (Loss) and Comprehensive Income (Loss) |
| |
For the three months ended June 30 |
|
For the three six ended June 30 |
|
|||||||||
| (Thousands, Except Per Share Amounts - Unaudited) | 2011 | 2010 | 2011 | 2010 | |||||||||
| Revenue | $ | 10,637 | $ | 10,647 | $ | 19,452 | $ | 22,725 | |||||
| Operating expenses | |||||||||||||
| Salaries and benefits | 5,107 | 4,843 | 10,266 | 9,948 | |||||||||
| General and administrative | 3,585 | 3,324 | 8,098 | 6,646 | |||||||||
| Stock compensation expense | - | 74 | - | 120 | |||||||||
| 8,692 | 8,241 | 18,364 | 16,714 | ||||||||||
| Finance costs | 167 | 523 | 204 | 1,092 | |||||||||
| Depreciation and amortization | 1,525 | 7,858 | 4,914 | 17,094 | |||||||||
| Other loss (income) | 2 | (14 | ) | 2 | (94 | ) | |||||||
| Income (loss) before income taxes | 251 | (5,961 | ) | (4,032 | ) | (12,081 | ) | ||||||
| Income taxes | |||||||||||||
| Current (recovery) | 16 | (48 | ) | 65 | (79 | ) | |||||||
| Deferred (reduction) | - | (1,352 | ) | - | (3,230 | ) | |||||||
| 16 | (1,400 | ) | 65 | (3,309 | ) | ||||||||
| Net income (loss) and comprehensive income (loss) for the period | 235 | (4,561 | ) | $ | (4,097 | ) | $ | (8,772 | ) | ||||
| Net income (loss) per share | |||||||||||||
| Basic and Diluted | $ | - | $ | (0.11 | ) | $ | (0.07 | ) | $ | (0.21 | ) | ||
| Weighted average number of shares | |||||||||||||
| Basic and Diluted | 59,471 | 41,958 | 59,408 | 41,958 | |||||||||
| Divestco Inc. |
| Condensed 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 period | (8,772 | ) | (8,772 | ) | ||||||||||||||||||||||
| Transactions with owners, recorded in equity | ||||||||||||||||||||||||||
| contributions by and distributions to owners: | ||||||||||||||||||||||||||
| Share-based payment transactions | 120 | 120 | ||||||||||||||||||||||||
| Balance at June 30, 2010 | 41,958 | $ | 70,518 | - | $ | - | $ | 70,518 | $ | 5,682 | $ | 56 | $ | 22,639 | $ | 98,895 | ||||||||||
| Balance at January 1, 2011 | 58,938 | $ | 73,445 | 15,825 | $ | 1,808 | $ | 75,253 | $ | 5,590 | $ | - | $ | (62,773 | ) | $ | 18,070 | |||||||||
| Net loss and comprehensive loss for the period | (4,097 | ) | (4,097 | ) | ||||||||||||||||||||||
| Transactions with owners, recorded in equity | ||||||||||||||||||||||||||
| contributions by and distributions to owners: | ||||||||||||||||||||||||||
| Issue on private placement | 455 | 48 | 455 | 52 | 100 | 100 | ||||||||||||||||||||
| Share-based payment transactions | 192 | 31 | 31 | 31 | ||||||||||||||||||||||
| Share issue costs | - | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||
| Balance at June 30, 2011 | 59,585 | $ | 73,523 | 16,280 | $ | 1,860 | $ | 75,383 | $ | 5,590 | $ | - | $ | (66,870 | ) | $ | 14,103 | |||||||||
| Divestco Inc. |
| Condensed Consolidated Statement of Cash Flows |
| For the six months ended June 30 | 2011 | 2010 | ||||
| (Thousands - Unaudited) | ||||||
| Cash flows from operating activities | ||||||
| Net loss for the period | $ | (4,097 | ) | $ | (8,772 | ) |
| Items not affecting cash: | ||||||
| Equity investment gain | 1 | - | ||||
| Depreciation and amortization | 4,914 | 17,094 | ||||
| Sublease loss | (303 | ) | - | |||
| Amortization of tenant inducements | (38 | ) | - | |||
| Deferred rent obligations | 425 | - | ||||
| Income taxes | 65 | (3,309 | ) | |||
| Data exchanges | - | (1,775 | ) | |||
| Gain on sale of property and equipment | - | (90 | ) | |||
| Unrealized foreign exchange loss | (4 | ) | - | |||
| Non-cash employment benefits | 31 | - | ||||
| Share based payments | - | 120 | ||||
| Finance costs | 204 | 1,092 | ||||
| 1,198 | 4,360 | |||||
| Changes in non-cash working capital balances | 1,744 | 5,019 | ||||
| Changes in long-term prepaid expense | - | 158 | ||||
| Interest paid | (141 | ) | (988 | ) | ||
| Income taxes refunded | 51 | 290 | ||||
| 2,852 | 8,839 | |||||
| Cash flows from (used in) financing activities | ||||||
| Bank indebtedness | (550 | ) | - | |||
| Issue of common shares, net of related expenses | 99 | - | ||||
| Repayment of long-term debt obligations | (221 | ) | (3,129 | ) | ||
| Deferred financing costs | (155 | ) | - | |||
| Proceeds received from long-term debt obligations (net of committed revolver | ||||||
| repayments) | 5,000 | (1,020 | ) | |||
| 4,173 | (4,149 | ) | ||||
| Cash flows used in investing activities | ||||||
| Additions to intangible assets | (2,482 | ) | (2,647 | ) | ||
| Decrease (increase) in participation surveys in progress | (1,566 | ) | 1,981 | |||
| Purchase of property and equipment | (5,422 | ) | (442 | ) | ||
| Additions to tenant inducements | 3,306 | - | ||||
| Payment made on sublease loss provision | (488 | ) | - | |||
| Investments in affiliates | (29 | ) | - | |||
| Proceeds on sale of property and equipment | - | 93 | ||||
| Deferred development costs | (1,295 | ) | (1,425 | ) | ||
| Changes in non-cash working capital balances | (1,842 | ) | (1,940 | ) | ||
| (9,818 | ) | (4,380 | ) | |||
| Increase (decrease) in cash | (2,793 | ) | 310 | |||
| Cash, beginning of period | 3,696 | 768 | ||||
| Cash, end of period | $ | 903 | $ | 1,078 |
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:
Mr. Stephen Popadynetz
CEO, President and CFO
587-952-8152
Divestco Inc.
Mr. Danny Chiarastella
Vice President, Finance
587-952-8027
www.divestco.com