Tesla Exploration Ltd.

TSX : TXL


Tesla Exploration Ltd.

March 18, 2014 21:01 ET

Tesla Reports 2013 Annual and Fourth Quarter Results

CALGARY, ALBERTA--(Marketwired - March 18, 2014) - Tesla Exploration Ltd. (TSX:TXL) ("Tesla" or the "Company") today announces its 2013 annual and fourth quarter operating and financial results.

(000s, except per share data) Three months ended Year ended
(unaudited) December 31, December 31,
2013 2012 Change 2013 2012 Change
$ $ % $ $ %
Revenue 49,210 41,750 18 174,484 191,686 (9)
Revenue excluding reimbursables 31,789 36,479 (13) 135,376 163,218 (17)
Gross margin 1 9,107 11,806 (23) 47,995 51,866 (7)
As a % of revenue excluding reimbursables 29% 32% 35% 32%
Net income (1,733) (566) n/m 993 5,535 (82)
Net earnings attributable to shareholders per share - basic (0.07) (0.02) n/m 0.05 0.24 (81)
Adjusted EBITDA 2 4,333 6,125 (29) 27,135 31,745 (15)
Per share - basic 0.19 0.27 (30) 1.21 1.40 (14)
Cash flow from operations 3,358 5,672 (41) 26,656 30,802 (13)
Per share - basic 0.15 0.25 (40) 1.19 1.36 (13)
Weighted average shares outstanding for the period - basic 22,391 22,739 (2) 22,445 22,728 (1)
Capital expenditures 1,318 5,190 (75) 21,729 28,857 (25)
As at December 31, December 31,
2013 2012 Change
$ $ %
Working capital 11,925 3,330 258
Total assets 141,616 129,443 9
Total long-term borrowings 3 31,608 22,185 42
Equity 65,239 63,374 3
1. Gross margin is defined as gross profit before depreciation and amortization. Gross margin is a measure that does not have a meaning prescribed under IFRS in Canada and accordingly, may not be comparable to similar measures used by other companies.
2. Adjusted EBITDA is defined as income before interest, taxes, depreciation, amortization and impairments, gains or losses on foreign exchange, gains or losses on sales of capital assets, bad debt provisions and stock-based compensation. Adjusted EBITDA and Adjusted EBITDA per share are presented because they are frequently used by securities analysts and others for evaluating companies and their ability to service debt. Adjusted EBITDA is a measure that does not have any standardized meaning prescribed under IFRS in Canada and accordingly, may not be comparable to similar measures used by other companies. The Company is consistent with its calculation of Adjusted EBITDA year-over-year.
3. Includes capital lease obligations and long-term debt, including current portions.

2013 Highlights:

  • Tesla generated $48.0 million of gross margin, $27.1 million of Adjusted EBITDA and a net income of $1.0 million on $174.5 million of revenues during 2013. The Company's consolidated net income declined due to the decrease in Adjusted EBITDA, increased depreciation and an additional provision for bad debts partially offset by reduced tax expense.
  • Tesla Canada peaked at eight crews and operated over 80,000 channels during the seasonally strong first quarter of 2013 almost all of which was on three-dimensional ("3D") and three-component ("3C") programs in the oilsands region. Canadian operations utilized 23,000 stations (69,000 channels) of 3C recording equipment, including 13,000 stations (39,000 channels) owned by the Company.
  • Tesla Canada also utilized 10,000 field station units ("FSUs") of the Company's multi-component wireless acquisition system ("Hawk") on the first phase of a significant program during the first quarter of 2013. The second phase of the program was completed during the fourth quarter of 2013 and early 2014 utilizing 12,000 Hawk FSUs.
  • To meet growing demand, Tesla Canada continued to expand the Company's wireless multi-component seismic acquisition system base with the purchase of 6,000 multi-component geophones and 6,000 Hawk FSUs for utilization during the current winter. The Company now owns 22,100 Hawk FSUs (66,300 channels).
  • Tesla Canada received 100% on its 2013 Workplace Safety Certificate of Recognition ("COR") audit performed by an external Enform auditor supporting the Company's commitment to safety.
  • Tesla USA continued work under an extended seismic services agreement with a multi-client geophysical company utilizing 10,000 Hawk FSUs. Existing work commitments extend through June 2014.
  • Tesla USA also kept a second crew utilized following the purchase of 6,000 Hawk FSUs in June 2013.
  • Tesla Offshore's geophysical division had improved results with work on up to four geophysical vessels resulting from lease sales and large scale day-rate exploration commitments. This increased level of activity is expected to continue during 2014.
  • Tesla Offshore's Bluefin Autonomous Underwater Vehicle ("AUV") was delivered and field tested early in 2014 and began operations on a backlog of project commitments in the Gulf of Mexico during late February 2014. Tesla Offshore hired several experienced personnel to manage the AUV service line and develop international markets.
  • Tesla International operated a crew in the UK and Europe throughout 2013 on hydrocarbon and mineral projects and has developed a significant backlog of 3D programs for 2014.
  • During 2013, Tesla International completed two significant transition zone ("TZ") projects in Tanzania and the Democratic Republic of the Congo ("DRC").
  • Following a substantial mobilization, Tesla International's contract in Somaliland was terminated by the client due to security concerns prior to start-up. Under terms of the contract, the client has paid a termination fee and is contractually required to pay all committed costs and demobilization fees. The client is currently disputing a portion of the Company's termination claim.
  • Tesla International secured two land projects in Kenya that will operate late into 2014 along with another marine program in the DRC that will see a second African crew operational starting in late March 2014.
  • Tesla incorporated a new subsidiary, Tesla Exploration Colombia S.A.S. ("Tesla Colombia") in early 2013 further expanding the Company's geographical footprint in South and Central America. The Company's office in Bogota provides a base for pursuing projects in the region.

Fourth Quarter Financial Results:

The Company's consolidated revenues including reimbursables increased 18% in the fourth quarter of 2013 compared the fourth quarter of 2012 due to improvement in activity levels for Tesla USA and significant growth in reimbursable revenues for Tesla Canada and to a lesser extent Tesla USA. The Company's revenue excluding reimbursables decreased 13%. Improvements in activity levels for Tesla USA were more than offset by declines in activity levels for Tesla Canada, Tesla International and Tesla Offshore. The Company's gross margin declined in the fourth quarter of 2013 compared to the fourth quarter of 2012 due to the reduction in revenues excluding reimbursables. Gross margin as a percentage of total revenue (including reimbursables) decreased to 19% in the fourth quarter of 2013 from 28% in the fourth quarter of 2012 due mainly to a heavy weighting of increased reimbursable revenues for Tesla Canada and Tesla USA. Gross margin as a percentage of revenue excluding reimbursables declined to 29% in the fourth quarter of 2013 compared to 32% in the fourth quarter of 2012 due to the limited revenue and lack of gross margin realized at this time on the client-terminated contract in Somaliland that is currently under dispute. Reimbursable revenues increased mainly due to front-end work undertaken by Tesla Canada for a significant winter program and to a lesser extent by Tesla USA preparing fourth quarter programs.

Tesla Canada's revenues benefitted from a significant increase in reimbursable revenues. However, revenues excluding reimbursables declined due to a later start to the winter season than the prior year. Despite low levels of activity across the industry, Tesla Canada peaked at five crews in November after little activity in October. In 2012, Tesla Canada had four crews operating by the end of October building to seven crews in November. A significant decline in activity days was partially offset by increased utilization of 3C equipment, including a heavy weighting of Hawk multi-component wireless equipment which derives higher revenues than conventional single-component cable equipment. Tesla Canada's gross margin decreased with the drop in operating revenues.

Despite a softening of the US seismic land acquisition market, Tesla USA saw an increase in revenues mainly driven by increased activity levels and, to a lesser extent, an increase in front-end related reimbursables. Activity levels improved significantly with two Hawk crews operating throughout the quarter on large 3D programs. Tesla USA operated two crews early in the fourth quarter of 2012 including one Hawk crew on a two-dimensional ("2D") project before the Hawk system was put on retainer and ultimately moved to Canada for the peak winter season. Tesla USA's gross margin increased with the improvement in operating revenues and benefitted from the utilization of additional Hawk equipment purchased in June.

Tesla International's revenues declined from the comparative quarter. During the fourth quarter of 2013, Tesla International realized limited revenues related to a client-terminated contract in Somaliland for which the termination claim is currently under dispute. Revenues were generated from the initial mobilization for a project in Kenya and a small bathymetry survey in the DRC. During the fourth quarter of 2012, revenues were generated from the commencement of a project in Tanzania. Further, there was a reduced level of activity for the crew in the UK in the fourth quarter of 2013 compared to the fourth quarter of 2012 when two large projects were completed in the UK and continental Europe. Current quarter gross margins were negative due to the lack of activity during the quarter and negative gross margin recognized on the Somaliland termination claim currently under dispute. In accordance with revenue recognition criteria, additional revenue could be recognized when the outcome of the claim becomes more certain.

Tesla Offshore's activity declined significantly during the fourth quarter of 2013 compared to the fourth quarter of 2012. The fourth quarter of 2012 benefitted from increased activity levels for the geophysical division with multiple vessels working on lump sum, day-rate and deep-tow projects. In the current year, two vessels working on long-term day-rate projects were demobilized in late September 2013 due to poor weather in the Gulf of Mexico. Last year, these vessels worked well into November. There was also no deep-tow work this year as clients await the deployment of Tesla Offshore's AUV. Tesla Offshore has also been negatively impacted by an industry-wide reduction in construction activity with reduced trawling and positioning projects and a lesser amount of recurring special project work. Tesla Offshore's gross margin declined due to the reduced operating revenues and a lower gross margin percentage resulting from poor weather, vessel downtime and costs related to the recently deployed AUV.

The Company's EBITDA decreased in the fourth quarter of 2013 compared to the fourth quarter of 2012 due to the decline in absolute gross margin partially offset by a reduction in general and administrative costs, excluding bad debt provisions, mainly due to the timing of year-end bonus adjustments. The Company's consolidated net loss increased in the fourth quarter of 2013 compared to the consolidated net loss in the fourth quarter of 2012. The decline in Adjusted EBITDA and an increase in bad debt expense were partially offset by reduced income tax expense.

The Company's working capital increased $9.5 million during the quarter to $11.9 million including net cash of $0.6 million. Operating cash flows and an $8.0 million draw on long-term debt were used to repay $1.0 million of operating lines of credit and $1.2 million of regular finance leases. Additionally, the Company funded $1.2 million of capital expenditures during the quarter and provided a $3.6 million deposit on Hawk FSUs acquired in January 2014.

Total long-term borrowings increased by $7.4 million during the quarter to $31.6 million. Draws on long-term debt of $8.0 million and the weakening of the Canadian dollar against US dollar denominated long-term borrowings were partially offset by regular payments made on outstanding finance leases.

Shareholders' equity decreased $0.2 million to $65.2 million during the quarter due to the net loss incurred during the quarter. The net loss was partially offset by an increase in accumulated other comprehensive income due to the weakening of the Canadian dollar against the functional currency of the Company's US subsidiaries along with an increase in contributed surplus relating to share-based payment charges.

2013 Financial Results:

Gross margin decreased slightly in 2013 compared to 2012 despite the expected and previously reported drop in revenues for Tesla Canada and Tesla Trinidad. The Company's consolidated revenues including reimbursables decreased 9% in 2013 compared to 2012. The Company's revenue excluding reimbursables decreased 17%. Improvements in activity levels for Tesla International and to a lesser extent Tesla USA, were more than offset by declines in activity levels for Tesla Canada, Tesla Trinidad and to a lesser extent Tesla Offshore. Gross margins for Tesla International and Tesla USA improved significantly while Tesla Canada and Tesla Trinidad experienced declines as expected. Tesla Offshore's gross margin also decreased slightly. Gross margin as a percentage of total revenue (including reimbursables) increased to 28% in 2013 from 27% in 2012 despite a significant increase in flow-through reimbursables associated with North American land operations. Gross margin percentage benefitted from Tesla USA's purchase of additional Hawk equipment during the year and improvements in Tesla International's African operations which were limited in 2012. Gross margin as a percentage of revenue (excluding reimbursables) improved to 35% in 2013 compared to 32% in 2012. A heavier weighting of improved gross margin percentage from Tesla USA more than offset slight declines for Tesla Canada and Tesla Offshore.

While rates remained comparable to the previous year, Tesla Canada saw reduced activity levels in 2013 compared to 2012 due to the previously reported cancellation or deferral of several significant projects during the first quarter of 2013 and a later start to the current winter season with low levels of activity across the industry. Tesla Canada's gross margin was negatively impacted by the reduced revenues but gross margin percentage remained strong with high utilization of the Company's 3C equipment, including increased usage of the wireless Hawk system, in the oil sands region and shale plays in western Canada.

Tesla USA's revenues increased year-over-year, benefitting mainly from increased reimbursables related to front-end activities later in the year. Following the return of the initial Hawk system (10,000 FSUs) from Canada at the end of the first quarter of 2013, Tesla USA worked continuously under its agreement with a multi-client geophysical company. Following the purchase of a second Hawk system (6,000 FSUs) in June, a second crew was active for a good portion of the remainder of the year. Tesla USA's gross margin improved significantly due to the term nature of a large portion of the work performed, the benefits of utilizing and owning two Hawk systems and a significant reduction in rental costs compared to the prior year.

There were no seismic operations in South America during 2013. Tesla Trinidad generated significant revenues during the first four months of 2012 with the completion of front-end operations and all recording on the Guayaguayare project. In 2012, Tesla Trinidad generated gross margin from recording and recognition of turnkey revenues.

Tesla International's revenues and gross margin increased significantly against the comparative period with an improvement in utilization of crews in east Africa. There were two large TZ projects in Tanzania and the DRC along with a substantial mobilization into Somaliland before the contract was terminated. Gross margin was lower than expected due to delays on the DRC project and the limited gross margin recognized on the Somaliland termination claim currently under dispute. The increased African activity was partially offset by a reduction in activity for the crew in the UK and continental Europe. Gross margins in this region remained in line with expectations.

Tesla Offshore's revenues declined year-over-year. Geophysical revenues benefitted from increased activity levels in the Gulf of Mexico with a healthy backlog of both turnkey and day-rate work that had multiple vessels operating for a good portion of the year. However, this was offset by an industry-wide reduction in construction activity with reduced trawling and positioning projects and a later start than normal for recurring special project work. Gross margin was negatively impacted by the reduction in revenue.

The Company's Adjusted EBITDA in 2013 declined compared to 2012 due to the slight reduction in absolute gross margin along with an increase in general and administrative costs. The Company's consolidated net income also declined year-over-year due to the decrease in Adjusted EBITDA, increased depreciation related to the two Hawk systems acquired in June 2012 and June 2013 and an additional provision for bad debts partially offset by reduced tax expense.

The Company's working capital increased $8.6 million during the year to $11.9 million including net cash of $0.6 million. Operating cash flows generated during the year and draws on long-term debt were used to repay $5.9 million of operating lines and $5.5 million on outstanding finance leases as well as funding $14.4 million of capital expenditures (net of $7.0 million of lease financed expenditures) during 2013. Operating lines continue to be utilized to fund operations in certain regions.

Total long-term borrowings increased $9.4 million during the year to $31.6 million. Long-term debt draws of $6.9 million late in 2013 were used to fund the purchase of 6,000 Hawk FSUs in January 2014. Finance lease obligations increased by $2.0 million during the year as regular payments on outstanding finance leases totalling $5.5 million were more than offset by additional lease financing for the acquisition of a 6,000 FSU Hawk system in June 2013. At December 31, 2013, the Company had $35.9 million of unused committed bank credit and lease facilities.

Shareholders' equity increased $1.9 million to $65.2 million during the year due to the net income generated during the year, an increase in accumulated other comprehensive income with the weakening of the Canadian dollar against the US dollar functional currency of the Company's US subsidiaries and the repurchase of shares under the Company's NCIB. This was partially offset by a reduction in contributed surplus due to the modification of the Company's stock option plan which now includes a cashless exercise feature.

Outlook:

After generating positive EBITDA during the fourth quarter of 2013 despite challenges in certain regions, the outlook remains positive throughout the Company. Significant contracts are in place across all segments and backlog remains strong. Tesla continues to look for ways to expand its service offerings and the geographical areas in which it operates.

North America Land Operations

In Canada, the industry has been negatively impacted by the effect of a few larger oil and gas companies cancelling or delaying significant portions of their planned work due to budget cuts and challenges with First Nations consultation approvals for projects. Further, due to weakness in the US market, certain competitors are focusing their efforts in Canada during the peak winter season. Competitors and equipment rental companies have provided increased capacity in Canada for both single-component and three-component wireless equipment which has contributed to increased pricing pressure. Western Canada also faced significant weather related challenges due to extreme snowfall in some areas and prolonged cold weather resulting in reduced productivity and standby this winter season. Despite these numerous challenges, Tesla Canada has benefitted from its long-term customer relationships and efficiencies from new technology and crew performance to secure a significant portion of the available work. Tesla Canada peaked at eight operational crews in early March (in excess of the previously anticipated level of six crews). These crews utilized the Company's Cable 3C recording equipment along with both owned and rented multi-component Hawk Wireless systems throughout the quarter on oilsands projects and shale plays in western Canada. Three of these crews are planned to continue working into April, including a project in the Yukon that will utilize an owned Hawk Wireless system. Looking forward, oil prices have stabilized, natural gas prices have improved, significant oilsands projects continue to be announced and First Nations approvals have been obtained for specific projects. These factors will continue to drive demand for exploration and monitoring work commitments in the region.

In the US, a 10,000 FSU Hawk crew continues work on 3D programs under an agreement with a multi-client geophysical company. This crew will be operating in Pennsylvania into June 2014. Tesla USA continues to pursue an extension to the existing multi-year agreement. While the strong relationship will be maintained, any arrangement will likely have a reduced commitment moving forward and allow Tesla USA the opportunity to utilize this system to pursue projects with different clients and diversify its revenue stream. A second crew utilizing the recently purchased 6,000 FSU Hawk system has recently competed projects in Colorado and North Dakota. This system has been relocated to Canada for the conclusion of the winter season while Tesla USA procures work for the summer and fall. The US seismic market remains soft with heavy competition for available projects. Pricing of services continues to be the driving factor in this competitive market with requirements for higher channel counts, wireless recording systems and third-party multi-client programs driving the demand for services. Activity levels remain focused on oil and liquids rich shale plays such as the Bakken, Utica (eastern Ohio), Marcellus (western Pennsylvania and West Virginia) and Denver-Julesburg ("DJ") Basin.

South and Central America Operations

Tesla Colombia was formed in February 2013 to provide seismic acquisition services to companies in Colombia and to expand the Company's footprint in South and Central America. In recent years there has been increased foreign investment in natural resources, growing exploration activity and a strong demand for experienced and reliable seismic acquisition companies with modern equipment and experience in comparable terrains and environments. Meetings continue to be held and relationships continue to be built with both oil and gas and mining companies operating in South and Central America. Many of these companies are Canadian-based or international operators that Tesla has done work for in other regions of the world. Management has also focused on developing relationships with local companies that can provide support to Tesla's operations in South and Central America and provide access to potential clients. While no projects have been awarded at this time, the management team continues to pursue a number of opportunities that have been identified during Tesla's presence in the region.

International Operations

Tesla International's UK and European crew has seen a sustained demand for acquisition services in both the hydrocarbon and minerals sectors both in the UK and mainland Europe for a prolonged period of time. Following a recent gap in the work schedule, this crew has begun work on a series of 3D programs that should see the crew fully utilized throughout 2014, several of which will require the use of a single-component nodal system. Rental and purchase options for this system are being reviewed. Management is also pursuing opportunities to expand its European presence.

Tesla International has recently begun work on a 2D project in Kenya with an additional program contracted to follow that will keep this African crew busy late into 2014. Tesla International is pursuing additional projects related to the latest concession awards in Kenya and the associated work commitments in the region in order to extend backlog in the country. Tesla International has also recently completed mobilization and start-up operations on a marine project in the DRC that should keep a second African crew utilized through most of the second quarter of 2014.

Two key areas of East Africa are experiencing greater levels of activity following political stabilisation and the interest of some of the major operators in developing their activities in the area. The first key area involves interests along the Great Rift Valley Trend from Tanzania into Ethiopia. This interest is in chasing analog plays based on the recent discoveries in Uganda and successes in Northern Kenya. There remains significant interest in the lake zones of this Rift Valley Trend with Tesla International well placed to exploit the TZ acquisition opportunities in the area. The second area of increased exploration activity is near coastal blocks from Mozambique northward to Somalia which are hinged on recent major gas discoveries offshore East Africa. Tesla International expects to be successful in obtaining additional work from both these opportunities and from exploiting some potential new areas of activity to extend its current backlog.

Following the termination of a contract prior to start-up in Somaliland by a UK client due to security concerns, Tesla International engaged with the Somaliland Ministry of Energy and has left a limited asset base in Somaliland pending the creation of the region's Oil Police Support Unit and the outcome of active bids in the region. Under terms of the contract, the client paid a termination fee and is contractually required to pay all committed costs and demobilization fees. A portion of the Company's initial termination claim is currently under dispute with the client and the outcome and timeline to resolution is unknown at this time.

The UK technical services office remains steady with a number of in-seam seismic, unconventional gas (coal bed and tight reservoirs), and geophysical interpretation projects and is pursuing additional projects to strengthen backlog.

Offshore Operations

As previously disclosed, a significant focus of Tesla Offshore's commitment to expansion centers on the Company's recent purchase of a Bluefin 21 AUV. The AUV was delivered and field tested early in 2014 and began operations on a backlog of project commitments in the Gulf of Mexico during late February that should last through late April. In addition to addressing this much needed service to our existing customer base, offering AUV services worldwide has opened new markets for Tesla Offshore related to deep water oil and gas field development across the globe and is optimistic regarding significant AUV work in Southeast Asia. Tesla Offshore has hired several experienced personnel to manage and optimize use of state-of-the-art technology in geophysical survey operations, including the AUV service line. This includes the recruitment of one of our longstanding top contractors to manage AUV operations, as well as a seasoned AUV Party Chief with thirteen years of experience performing AUV operations worldwide. The company also continues to further the development of geo-hazards interpretation services for local and international clients.

Tesla Offshore is nearing the end of the seasonal winter slowdown and took advantage of the downtime to perform annual maintenance of its dedicated geophysical vessel in December. However, with Central and Western Gulf of Mexico lease sales returning to their customary schedules, the expectation is that activity levels should stabilize to pre-BP crisis levels in the foreseeable future. In addition to the AUV work noted above, Tesla Offshore has a limited backlog of turnkey work for a second geophysical vessel. In May 2014, Tesla Offshore will remobilize two geophysical vessels to continue the large scale day-rate exploration projects that were put on hold for the winter months.

Construction activities remain lower than historical levels driven by a reduction in drilling activity on the shelf of the Gulf of Mexico. Despite a reduced level of trawling and positioning work in the Gulf of Mexico, special project work relating to survey support for removal systems is expected to begin in May, much earlier than in the prior year. While there are a number of opportunities in play, the construction division will see reduced activity levels while the industry remains abnormally slow.

Tesla Offshore continues to pursue opportunities outside the Gulf of Mexico. The multi-year project in Alaska has been placed on standby awaiting word of approved permit clarifications and a return to full operations. As long-term clients continue to expand into international areas, Tesla Offshore continues configuring systems and staff to profitably provide services to support those expansions.

Tesla Offshore has completed development, begun submitting proposals and has landed the first major client for the newly developed provision of 3D seismic interpretation. Tesla Offshore continues to pursue alliances and broaden service offerings such as geotechnical acquisition and multi-streamer along with high-resolution shallow seismic services to further expand the Company's opportunities.

On October 30, 2013, the Company received notice that a complaint had been filed under maritime law against Tesla Offshore and a vessel owner and operator (the "Defendants") by an unrelated third-party (the "Plaintiff") in the United States District Court for the Eastern District of Louisiana (the "Court"). The Plaintiff is seeking in excess of $10 million USD ($11 million) from the Defendants for alleged physical damages and economic losses resulting from an incident involving a time chartered vessel under contract to Tesla Offshore in November 2012. The vessel owner and operator filed its defense against the Plaintiff's claim and brought a cross-claim charge against Tesla Offshore related to the incident. Tesla Offshore has responded to the complaint by denying any and all liability and fault and filing a cross claim against the vessel owner and operator. Tesla Offshore notified its insurance underwriters of the claim and a coverage dispute exists. Tesla Offshore has filed a complaint against its insurer, insurance broker and the vessel owner and operator's insurer for wrongful failure to honor their obligations to defend the Company and insure the claim. The Company's insurer subsequently informed Tesla Offshore that it would defend Tesla Offshore against this claim subject to a reservation of rights. The Company has engaged its own legal counsel to defend the Company against the claims and ensure appropriate coverage by the insurer. The direction and financial consequences, if any, of these claims cannot be determined at this time and, consequently, no provision has been recorded in the Company's consolidated financial statements.

Forward-looking Statements:

Certain information set forth in this press release, including management's assessment of the Company's future plans and operations, contains forward-looking statements, which are based on the Company's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "believes", "projects", "intends", "continues", "estimates", "objective", "ongoing", "may", "will", "should", "might", "plans" and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements are based on current expectations, estimates and projections that involve a number of known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These include, but are not limited to, the risks outlined in the "Business Risks" section of the Company's MD&A for the three and twelve months ended December 31, 2013.

The information contained in this press release should not be considered all-inclusive as it excludes changes that may occur in general economic, political and environmental conditions. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Investors are cautioned against attributing undue certainty to forward-looking statements. The forward-looking information and statements contained in this press release speak only as of the date hereof and, subject to its obligations under applicable law, the Company does not intend, and does not assume any obligation, to update these forward-looking statements if conditions or opinions should change.

About Tesla

Tesla provides geophysical and related services in Canada through Tesla Exploration Partnership, internationally through its wholly owned subsidiaries Tesla Exploration International Ltd., Tesla Exploration Trinidad Ltd. and Tesla Exploration Colombia S.A.S., and in the United States through Tesla Exploration Inc. and Tesla Offshore LLC. Since the Company's inception in 2000, Tesla has grown both organically and through acquisitions funded by retained earnings and prudent levels of borrowing, from a Canadian focused land seismic business to a global provider of a broad suite of geophysical and related services. Tesla trades on the TSX under the symbol "TXL".

Contact Information

  • Requests for shareholder information
    should be directed to:
    Mr. Richard Habiak
    President and CEO
    (403) 216-0990

    Mr. Stuart Craven
    Vice President and CFO
    (403) 692-4602