Kinetex Resources Corporation

Kinetex Resources Corporation

February 10, 2010 09:25 ET

Kinetex Announces Expansion of 3D Capacity

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 10, 2010) - Kinetex Resources Corp. (TSX VENTURE:KTX) (the "Company" or "Kinetex") is pleased to provide an update on the Company's operations in North and South America over the past quarter and to date.

To meet demand for services, Kinetex is pleased to announce the expansion of its 3D capacity to address our clients' needs for large 3D/3C surveys. The additional capacity has resulted in Kinetex operating with 4,800 stations in Colombia, South America and 4,800 stations in North America. 

"Demand continues to remain high for the Company's services in both North and South America", said Gil Schneider, President and CEO of Kinetex. "While the market is showing signs of strengthening demand, Kinetex continues to focus on execution and prudent expansion of services to our growing list of diversified clients within the Resource Industry. We are pleased to report that Kinetex exited 2009 with four active crews, 2 based in North America and 2 in South America. The additional 3D capacity on two of our four crews provides us with a strong foundation for the continuation of the growth that we projected previously and began to materially experience in the fourth quarter of 2009."

Building on the strong momentum from Q3 2009, the Company established a pace in the 4th quarter which should enable it to meet its revenue targets for the current fiscal year. Current contract awards and continuing demand for solicitations support a strong backlog for further year over year growth in 2010 in all areas of service, but specifically for High Resolution 2D and 3D services across both the mining and petroleum sectors. 

In North America, one crew was active in the St. Lawrence Lowlands region of eastern Quebec engaged in exploration services to oil and gas companies targeting the Utica Shale formation. Advanced extraction techniques such as horizontal drilling and multi-stage hydraulic fracturing are the key to unlocking the unconventional shale deposits, and we see continuing growth in this region as High resolution 2D and 3D, Multi-Component seismic reflection becomes recognized as a key tool in the effective optimization of this resource within North America. This crew continues to execute on a robust slate of Oil and Gas projects.

The Company continues to provide services to Encanto Potash Corp (TSX VENTURE:EPO) ("Encanto") and is scheduled to complete a 160 square kilometer 3D survey in the first quarter of 2010. As reported, the initial contract in 2008 involved the management, collection, processing and interpretation of a series of high resolution 2D seismic profiles over multiple regions with a combined area exceeding 500,000 acres. 

On December 15, 2009, Encanto reported completion of the initial interpretation of all compiled 2D data, and had commenced a 3D acquisition of multi-component seismic data over targeted portions of their properties. The resulting detailed interpretation will assist in the preparation of a resource evaluation and possible mine site planning. Kinetex's delivery of this 3D dataset to Encanto will mark a significant milestone, assisting Encanto with the aggressive advancement of its efforts from exploration through to a resource evaluation in less than 2 years. Kinetex is pleased to be of service to Encanto as it develops its vast holdings of high potential exploration properties. 

In South America, Oil and Gas related operations for Kinetex continued to ramp up in the 4th quarter of 2009, with continued progress made on a multi-year coal exploration project in the La Guajira region of Colombia and a fourth crew scheduled for full operation on a series of large 3D surveys in the Llanos Orientales Basin on behalf of a number of petroleum clients. The Company expects to maintain a minimum of one (1) high resolution 2D/3C crew and one (1) large capacity 3D/3C crew in Colombia. These crews will have a combined capacity of over 4,800 Vectorseis 3C stations, and as designed can support capacity of up to 7,200 stations each, facilitating further growth as opportunities arise. 

Kinetex is proud to see the progress made on its clients' projects and shares in the excitement of their successes.

Outlook for 2010

"The additional capacity marks a significant milestone for the Company as we continue to execute on our business plan," said Leonard Van Betuw, CEO of Kinetex Multi-Component Services. "This will enable Kinetex to expand the size and scope of our service offerings in both North and South America to provide effective High Resolution 2D/3C services and large capacity 3D/3C services to both our Mineral and Petroleum client base."

Kinetex simultaneously continues to focus on the expansion of intellectual properties and their associated services. Kinetex is pleased with advances being seen within its research teams and anticipates significant commercial additions to our growing list of integrated services in 2010.

The Company recently closed a non-brokered private placement over a series of tranches for aggregate gross proceeds of $1,613,735. The additional equity will be used to enhance the Company's working capital position, improving its financial stability and enabling the Company to bid, obtain and complete larger scope/longer duration service contracts, resulting in increased revenue, greater crew utilization and increased profitability.

The Company continues to complete work from signed contracts as announced in 2009 and to sign additional new contracts. With confidence and demand returning to world commodities markets, the Company reiterates its positive outlook for 2010 and looks forward to capitalizing on its increased 3D capacity, investments in technical research and strengthened financial position.

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 Company seeks safe harbour.

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.

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 release.

Contact Information

  • Kinetex Resources Corporation
    Gil Schneider
    Chief Executive Officer
    604-484-5761 or Toll-Free: 1-888-484-5761
    604-484-5760 (FAX)