Veritas intends to operate Time Seismic as a separate entity, building the library of non-exclusive 2D and 3D seismic data for customers in Canada. Dave Robson, Chairman and CEO of Veritas said "This acquisition provides the best means for us to integrate Veritas’ operating expertise and comprehensive services with Time Seismic’s proven ability to put attractive data library programs together." Time Seismic owns over 3,000 kilometers of 2D data in the Western Canadian basin and is currently conducting a 690 kilometer 2D program in association with Veritas.
Synergy
Commenting the second acquisition, of Enertch, currently subject to board approvals, Robson said "Given the current low commodity prices and industry over-capacity, the challenges facing our industry today may be greater than ever before. We need to find better, more efficient ways of delivering services to our customers. Enertec is a quality operation with excellent employees and a strong customer base. Together we can realize significant synergies in delivering the best possible geophysical services to our North American customer base." The letter of intent provides for the exchange of 0.345 Veritas shares for each Enertec share. Following the acquisition, the former Enertec stockholders would own approximately 9.44% of Veritas. Based on current market price, the transaction is valued at approximately US$24 million. The companies presently expect the transaction to close prior to June 30, 1999. More from
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