Pulse Seismic Inc. Reports Preliminary Unaudited Third Quarter Financial Results

CALGARY, ALBERTA--(Marketwire - Oct. 15, 2012) - Pulse Seismic Inc. (TSX:PSD) ("Pulse" or "the Company") announces preliminary selected unaudited financial results for the three and nine months ended September 30, 2012. The Company is expected to release its complete unaudited financial results on Friday November 2, 2012. The financial information contained in this press release is based on management's estimates and has not yet been approved by the Company's Audit Committee or Board of Directors or reviewed by the Company's auditors.

HIGHLIGHTS

• Seismic data library sales for the three months ended September 30, 2012 were approximately $4.1 million compared to $6.7 million for the same period in 2011. For the nine month period ended September 30, 2012 seismic data library sales were a Company record of approximately $52.2 million compared to $23.6 million for the period ended September 30, 2011.

• Total seismic revenue (including participation survey revenue) was approximately $8.7 million for the three months ended September 30, 2012 and $58.6 million for nine months ended September 30, 2012 compared to $7.3 million and $27.9 million for the respective periods in 2011.

• Cash EBITDA^(a) was approximately $45.0 million ($0.71 per share basic and diluted) for the nine months ended September 30, 2012 compared to $17.9 million ($0.27 per share basic and diluted) for the period ended September 30, 2011, representing an increase of 151% (a 163% increase per share basic and diluted).

• Shareholder free cash flow^(a) was approximately $42.7 million ($0.68 per share basic and diluted) for the nine months ended September 30, 2012, an increase of 185% (a 209% increase per share basic and diluted) from $15.0 million ($0.22 per share basic and diluted) from the same period in 2011.

As of September 30, 2012 Pulse achieved record financial results including record amounts of cash EBITDA per share and shareholder free cash flow per share. Both of these metrics have exceeded amounts generated in any prior 12 month period. The Company experienced lower data library sales for the quarter due to an overall decline in industry demand during the summer months. For the remainder of the year, Pulse anticipates normalized data library sales as the fourth quarter is historically strong.

OPERATIONS UPDATE

In September, Pulse executed an agreement to conduct its third participation survey of the season. This 3D survey is located in the Pembina area of west central Alberta. The estimated total cost of this survey is $6.0 million. Field operations are currently expected to commence before the end of the fourth quarter and scheduled to be completed by March 31, 2013.

Pulse has commenced field operations on the first of two 3D participation surveys previously announced. At September 30, 2012 the survey was approximately 31% complete and is currently expected to be finished by the end of the fourth quarter. Pulse anticipates commencing field operations on the second survey by the end of October and to be complete by the end of the first quarter of 2013. Both surveys are located in the Fox Creek vicinity of west central Alberta and cover over 950 net square kilometres of 3D seismic data encompassing the Kaybob, Waskahigan, McKinley and Tony Creek areas.

^(a) The Company's continuous disclosure documents provide discussion and analysis of "cash EBITDA", "cash EBITDA per share", "shareholder free cash flow" and "shareholder free cash flow per share". These financial measures do not have standard definitions prescribed by IFRS (new Canadian GAAP) and, therefore, may not be comparable to similar measures disclosed by other companies. The Company has included these non-GAAP financial measures because management, investors, analysts and others use them as measures of the Company's financial performance. The Company's definition of cash EBITDA is cash available for interest payments, cash taxes if applicable, debt servicing, discretionary capital expenditures and the payment of dividends, and is calculated as earnings (loss) from continuing operations before interest, taxes, depreciation and amortization less participation survey revenue, plus any non-cash and non-recurring SG&A expenses. Cash EBITDA excludes participation survey revenue as these funds are directly used to fund specific participation surveys and this revenue is not available for discretionary capital expenditures. The Company believes cash EBITDA assists investors in comparing Pulse's results on a consistent basis without regard to participation survey revenue and non-cash items, such as depreciation and amortization, which can vary significantly depending on accounting methods or non-operating factors such as historical cost. Cash EBITDA per share is defined as cash EBITDA divided by the diluted weighted average number of shares outstanding for the period. Shareholder free cash flow further refines the calculation of capital available to invest in growing the Company's 2D and 3D seismic data library, to repay debt, to repurchase its common shares and to pay dividends by deducting non-discretionary expenditures from cash EBITDA. Non-discretionary expenditures are defined as debt financing costs (net of deferred financing expenses amortized in the current period) and current tax provisions. Shareholder free cash flow per share is defined as shareholder free cash flow divided by the diluted weighted average number of shares outstanding for the period.

CORPORATE PROFILE

Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the second-largest licensable seismic data library in Canada, currently consisting of approximately 27,100 net square kilometres of 3D seismic and 340,000 net kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada's oil and natural gas exploration and development occur.

Forward Looking Information

This news release contains information that constitutes "forward looking information" or "forward looking statements" (collectively, "forward looking information") within the meaning of applicable securities legislation. This forward looking information includes, among other things, statements regarding:

• Expected size and commencement, completion and delivery dates of participation surveys;
• The historical trend of strong fourth quarter data library sales;
• The anticipated normalized data library sales in the fourth quarter; and
• Other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results and performance.

Undue reliance should not be placed on forward-looking information. Forward looking information is based upon current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to vary and in some instances to differ materially from those anticipated in the forward looking information.

The material risk factors that could cause actual results to differ materially from the forward-looking information include, but are not limited to:

• economic risks;
• the demand for seismic data and participation surveys;
• the pricing of data library license sales;
• the level of pre-funding of participation surveys, and the ability of the Company to make subsequent data library sales from such participation surveys;
• the ability of the Company to complete participation surveys on time and within budget;
• environment, health and safety risks;
• the effect of seasonality and weather conditions on participation surveys;
• federal and provincial government laws and regulation, including taxation, royalty rates, environment and safety;
• competition;
• dependence upon qualified seismic field contractors;
• dependence upon key management, operations and marketing personnel;
• loss of seismic data; and
• protection of Intellectual Property.

The foregoing list of risks is not exhaustive. Additional information on these risks and other factors which could affect the Company's operations or financial results are included in the Risk Factors section of the Company's MD&A for the most recent calendar year and interim periods. Forward looking information is based upon the assumptions, expectations, estimates and opinions of the Company's management at the time the information is presented.