Divestco Inc.

Canada

Divestco Inc.

Canada
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News Article | April 27, 2017
Site: www.marketwired.com

CALGARY, AB--(Marketwired - April 27, 2017) - (TSX VENTURE: DVT) - Divestco Inc. ("Divestco" or the "Company"), an exploration services company dedicated to providing a comprehensive and integrated portfolio of data, software and services to the oil and gas industry worldwide, today announced its financial and operating results for the three months and year ended December 31, 2016. Financial Results (Thousands, Except Per Share Amounts) 1 Includes salaries & benefits, general & administrative expenses and share-based payments but excludes depreciation and amortization and other losses (income) 2 See the "Non GAAP Measures" section of the Company's Management Discussion and Analysis filed on the Company's website and on SEDAR Divestco generated revenue of $7.7 million in Q4 2016 compared to $2.9 million in Q4 2015, an increase of $4.8 million (168%) which was mainly due to the Company's Seismic Data segment with the commencement of a new seismic survey and strong data library sales. This was partially offset by lower Services and Software & Data revenue as result of reduced capital spending by clients caused by low commodity prices. Revenue in the Seismic Data segment ($6.3 million) increased by $5.7 million (891%). Revenue in the Software & Data segment ($0.8 million) decreased by $0.3 million (25%) and revenue in the Services segment ($0.6 million) decreased by $0.5 million (47%). Operating expenses decreased by $0.8 million (23%) to $2.5 million in Q4 2016 from $3.3 million in Q4 2015. Salaries declined by $0.7 million (38%) due to reduced staffing levels and the austerity measures put in place in response to the economic conditions in 2015 and 2016. G&A expenses declined by $27,000 (2%) due to a decrease in discretionary expenses, stock-based compensation, as well as software licences and contractor fees offset by an increase in bad debts. Finance costs decreased by $98,000 (29%) to $236,000 in Q4 2016 from $334,000 in Q4 2015. Depreciation and amortization was $1.6 million in Q4 2016 compared to $1.4 million in Q4 2015, an increase of $0.2 million (13%). There was no impairment charge in Q4 2016 compared to $1.2 million in Q4 2015. Divestco generated revenue of $16 million during 2016 compared to $18.3 million in 2015, a decrease of $2.3 million (13%). Lower Services and Software & Data revenue was partially offset by higher Seismic Data revenue. Revenue in the Seismic Data segment ($9.3 million) increased by $3.1 million (51%) due to higher data library sales partially offset by slight lower seismic participation revenue; there were three surveys completed in Q1 2015 and a new survey commenced in Q4 2016. Revenue in the Services segment ($2.6 million) decreased by $4.2 million (62%) mainly due to a reduction in activity levels caused by low commodity. Revenue in the Software & Data segment ($4.1 million) decreased by $1.3 million (24%) mainly due to the sale of the land software assets in Q1 2015 and reduced industry activity. Seismic brokerage revenue decreased due to lower activity levels. Operating expenses decreased by $5.7 million (36%) to $10.1 million in 2016 from $15.8 million in 2015. Salaries declined by $3.8 million (41%) due to reduced staffing levels and the austerity measures put in place in response to current economic conditions. G&A expenses declined by $1.9 million (27%) due to a decrease in discretionary expenses as well as software licences and contractor fees. Finance costs increased by $0.1 million (10%) to $1.3 million in 2016 from $1.2 million in 2015 mainly related to repayment of a $4.5 million bridge loan in March 2015. The Company then secured a new bridge loan in September 2015. Thus, debt levels were higher during 2016 compared to 2015. Depreciation and amortization decreased by $5 million (44%) to $6.4 million from $11.4 million in 2015 mainly due to the addition of new seismic data in 2015. No new surveys were completed in 2016; however, a survey commenced in Q4 2016 and was completed in Q1 2017. There was no impairment charge in 2016 compared to $1.2 million in 2015. As at December 31, 2016, Divestco had a working capital deficiency of $3.9 million (December 31, 2015: $2.1 million deficiency), excluding deferred revenue of $1.7 million (December 31, 2015: $1.3 million). The increase in the working capital deficit from the end of 2015 was due to the reclassification of the Company's bridge loan to current at December 31, 2016. The bridge loan was repaid in March 2017 with the proceeds of a new term loan with the balance being used for working capital purposes. 1 See the "Non GAAP Measures" section of the Company's Management Discussion and Analysis filed on the Company's website and on SEDAR There has been an improvement in West Texas Intermediate oil prices from a low of US$27/barrel in February 2016 to US$50/barrel currently and rig utilization has improved from 12.5% in July 2016 to 23% in March 2017. However, commodity prices and rig utilization remain significantly lower than 2014 levels which forced most North American oil and gas producers to keep their capital spending to historically low levels. Access to capital also remains challenging for the industry. Due to significantly lower activity levels, Divestco implemented several salary austerity measures in 2015 and 2016. These are expected to remain in place for the remainder of 2017 or until a change in activity levels is realized. Mr. Stephen Popadynetz, CEO and President commented: "We spent two years focusing on cost control resulting in Divestco lowering its operating expenses by over 50% from 2014 to 2016. Towards the latter part of 2016, we began to finally see an increase in activity levels which resulted in a very strong fourth quarter for Divestco. This allowed us to achieve positive funds from operations of $4.7 million for 2016, an increase of $2.1 million (78%) from 2015. In addition, we are pleased to report that for the first time in two years, we returned to acquiring new seismic in Q4 2016 and successfully completed our first survey in Q1 2017. The increased activity levels experienced in the last quarter of 2016 have continued and has led to a general renewed optimism that we haven't seen in over two years. Many producers have already announced increased capital spending for 2017, capital markets are again starting to finance many smaller oil and gas producers and the glut of distressed assets is being resolved through acquisition. These factors point to new opportunities for Divestco to start growing again. As well, during this downturn, Divestco focused much of its strategy on international markets and we have been receiving bids for a significant number of international opportunities. These strategies all led to Divestco negotiating a new bank financing and retiring our $3.2 million bridge loan in March 2017. With improved working capital and stronger sales opportunities, we look forward to delivering significantly improved results and rewarding our patient shareholders." 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". Additional information on the Company is available on its website at Divestco.com and on SEDAR at sedar.com. 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 news release. This press release contains forward-looking information related to the Company's capital expenditures, projected growth, view and outlook with respect to 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. 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. 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. In particular, this press release contains forward-looking statements pertaining to the following: Company's ability to keep debt and liquidity at acceptable levels, improve/maintain its working capital position 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; 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; impact of Canadian federal and provincial governmental regulation on the Company; expected levels of operating costs, finance costs and other costs and expenses; future ability to execute acquisitions and 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; and new accounting pronouncements. These forward-looking statements are based upon assumptions including: 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; 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 conditions; 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 regulation.


News Article | May 24, 2017
Site: www.marketwired.com

CALGARY, AB--(Marketwired - May 24, 2017) - (TSX VENTURE: DVT) - Divestco Inc. ("Divestco" or the "Company"), an exploration services company dedicated to providing a comprehensive and integrated portfolio of data, software and services to the oil and gas industry worldwide, today announced its financial and operating results for the three months ended March 31, 2017. Divestco generated revenue of $4.0 million in Q1 2017 compared to $3.1 million in Q1 2016, an increase of $0.9 million (27%) mainly due to higher Seismic Data segment revenue related to the completion of a new seismic survey. Revenue in the Seismic Data segment ($2.6 million) increased by $1.7 million (186%). Revenue in the Software & Data segment ($0.7 million) decreased by $0.4 million (29%) and revenue in the Services segment ($0.6 million) decreased by $0.6 million (47%). Operating expenses increased by $0.2 million (8%) due to higher business taxes and royalties. Finance costs remained unchanged. Depreciation and amortization was $3.1 million in Q1 2017 compared to $1.4 million in Q1 2016, an increase of $1.7 million (117%) due to the completion of a new seismic survey. Depreciation and amortization was $3.1 million in Q1 2017 compared to $1.4 million in Q1 2016, an increase of $1.7 million (117%) due to the completion of a new seismic survey. As at March 31, 2017, Divestco had a working capital deficiency of $0.1 million (December 31, 2016: $3.9 million deficiency), excluding deferred revenue of $1.1 million (December 31, 2015: $1.7 million). The decrease in the working capital deficit from the end of 2016 was due to the repayment of a bridge loan in March 2017 and positive funds from operations. The improvement in West Texas Intermediate oil prices from a low of US$33/barrel in March 2016 to a high of US$54/barrel in March 2017 has led to increases in capital spending by the industry. With the recent announcements of equity and debt financings, access to capital also seems to be improving for our clients leading us to view the later part of the year in a more favourable light. Divestco diligently monitors its operating expenses, and we have reduced our costs by over 50% since 2014. Most of the austerity measures that the Company put in place in response to the downturn are expected to remain in place for the remainder of 2017 or until a change in activity levels is realized. Mr. Stephen Popadynetz, CEO and President commented: "Divestco has continued to see improvements in the financial results in Q1 2017, completing the quarter with $0.5 million in positive funds from operations and reducing our working capital deficit by $3.8 million. We also negotiated new financing and retired our $3.2 million bridge loan in March 2017. Our strategy of focussing on international markets resulted in us being awarded several contracts which we expect to complete over the next two quarters. Domestically, we continue to see new opportunities within all our divisions and we are well positioned to take advantage of the uptick in activity levels and capital spending plans. After two long years of industry contraction, we are finally starting to see opportunities for growth throughout our organization and for improved earnings and financial stability." 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". Additional information on the Company is available on its website at Divestco.com and on SEDAR at sedar.com. 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 news release. This press release contains forward-looking information related to the Company's capital expenditures, projected growth, view and outlook with respect to 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. 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. 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. In particular, this press release contains forward-looking statements pertaining to the following: Company's ability to keep debt and liquidity at acceptable levels, improve/maintain its working capital position 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; 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; impact of Canadian federal and provincial governmental regulation on the Company; expected levels of operating costs, finance costs and other costs and expenses; future ability to execute acquisitions and 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; and new accounting pronouncements. These forward-looking statements are based upon assumptions including: 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; 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 conditions; 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 regulation.


Wang J.,Divestco Inc. | Ng M.,Divestco Inc. | Perz M.,Divestco Inc.
Geophysics | Year: 2010

We propose a greedy inversion method for a spatially localized, high-resolution Radon transform. The kernel of the method is based on a conventional iterative algorithm, conjugate gradient (CG), but is utilized adaptively in amplitude-prioritized local model spaces. The adaptive inversion introduces a coherence-oriented mechanism to enhance focusing of significant model parameters, and hence increases the model resolution and convergence rate. We adopt the idea in a time-space domain local linear Radon transform for data interpolation. We find that the local Radon transform involves iteratively applying spatially localized forward and adjoint Radon operators to fit the input data. Optimal local Radon panels can be found via a subspace algorithm which promotes sparsity in the model, and the missing data can be predicted using the resulting local Radon panels. The subspacing strategy greatly reduces the cost of computing local Radon coefficients, thereby reducing the total cost for inversion. The method can handle irregular and regular geometries and significant spatial aliasing. We compare the performance of our method using three simple synthetic data sets with a popular interpolation method known as minimum weighted norm Fourier interpolation, and show the advantage of the new algorithm in interpolating spatially aliased data. We also test the algorithm on the 2D synthetic data and a field data set. Both tests show that the algorithm is a robust antialiasing tool, although it cannot completely recover missing strongly curved events. © 2010 Society of Exploration Geophysicists.


Hunt L.,Fairborne Energy Ltd. | Reynolds S.,Fairborne Energy Ltd. | Hadley M.,Fairborne Energy Ltd. | Hadley S.,Fairborne Energy Ltd. | And 2 more authors.
Leading Edge (Tulsa, OK) | Year: 2011

We investigated our ability to remove a specific short-period multiple from the Nisku and Blueridge formations in West Central Alberta, Canada. This problem is commercial in nature, and has persisted because it was believed that the multiple had too little moveout to be removed, rendering interpretation of the thin Blueridge zone impossible. Associated with this issue was the belief that the modern high-resolution Radon transforms do not materially affect the stack response of real data in this area despite their excellent performance on synthetics and on other data in the literature. Serious technical work seldom affords a discussion of "beliefs", but this work is concerned with the decision-making of the interpreter. We show that in order to address a specific, real, short-period multiple problem, the interpreter was required to challenge previously held technical assumptions. This required the interpreter to consider the nature of the multiple itself, the nature and limitations of the multiple suppression technology used, and to objectively measure the level of success in suppressing the multiple. © 2011 Society of Exploration Geophysicists.


Ng M.,Divestco Inc. | Zheng Y.,Divestco Inc.
SEG Technical Program Expanded Abstracts | Year: 2011

Several effective footprint removal filtering techniques assume that the footprint orientations are parallel to the co-ordinate axes of the filter; but when they are not, those techniques may fail. A direct rotation of the data volume in order to line up the footprint orientation with the co-ordinate axes for filter operation, and rotating it back to the original orientation will involve two re-binning processes. Data rotation introduces errors due to imperfect interpolation methods in practice. Given this fact, in this paper, we will try to minimize those errors by only estimating the footprint in the rotated co-ordinates, and rotating it back to be removed from the original unrotated input data. © 2011 Society of Exploration Geophysicists.


Patent
Divestco Inc. | Date: 2015-05-08

The present invention relates to a system and method that provides a user with an ability to use a secondary device to take a more detailed look at nuances within a captured seismic data set. The present invention allows the user to view a scaled image of the seismic data that is at a different scale than what is displayed on a primary device. Optionally, the secondary device is a mobile device that is wirelessly connected to the primary device. The present invention also enables the user to interpret the captured seismic data using the secondary device in real time while maintaining a macro view on the primary device. The user may annotate the scaled image regarding picked horizons and the information regarding the location of the annotations on the scaled image are then processed by the primary device and then scaled image on the secondary device is updated.


News Article | November 28, 2016
Site: www.marketwired.com

CALGARY, AB--(Marketwired - November 28, 2016) - Divestco Inc. ("Divestco" or the "Company") (TSX VENTURE: DVT), an exploration services company dedicated to providing a comprehensive and integrated portfolio of data, software and services to the oil and gas industry worldwide, today announced its financial and operating results for the three and nine months ended September 30, 2016. Divestco generated revenue of $2.0 million in Q3 2016 compared to $3.1 million in Q3 2015, a decrease of $1.1 million (35%). While the Company's Seismic Data segment had stronger revenues, the Services and the Software & Data segments revenues were weaker due to low commodity prices. Revenue in the Seismic Data segment ($0.7 million) increased by $0.3 million (50%) primarily due to higher data library sales. Revenue in the Software & Data segment ($1.2 million) decreased by $0.3 million (22%) and revenue in the Services segment ($0.4 million) decreased by $1.1 million (70%) as result of reduced capital spending by clients due to low commodity prices. Operating expenses decreased by $0.7 million (21%) to $2.4 million in Q3 2016 from $3.1 million in Q3 2015. Salaries declined by $0.6 million (34%) due to reduced staffing levels and the austerity measures put in place in response to current economic conditions. G&A expenses declined by $28,000 (2%) due to a decrease in discretionary expenses, stock-based compensation, as well as software licences and contractor fees offset by an increase in bad debts. Finance costs increased by $178,000 (98%) to $359,000 in Q3 2016 from $181,000 in Q3 2015 mainly related to repayment of a $4.5 million bridge loan in Q1 2015. The Company then a secured a new bridge loan at the end of Q3 2015. Therefore, debt levels were lower in Q3 2015 compared to Q3 2016. Depreciation and amortization was $1.6 million in Q3 2016 and Q3 2015 as no new seismic data was acquired in any of these quarters. (Divestco's accounting policy is to amortize 40% of participation survey costs immediately upon delivery of new seismic data to participants and the balance over nine years straight-line commencing one year from the delivery date). Nine Months Ended September 30 2016 vs. Nine Months Ended September 30 2015 Divestco generated revenue of $8.3 million during the first nine months of 2016 compared to $15.5 million in the same period in 2015, a decrease of $7.2 million (46%). This was primarily a result of lower seismic participation revenue and Services segment revenue partially offset by higher seismic data library and log data revenue. Revenue in the Software & Data segment ($3.3 million) decreased by $1.0 million (24%) mainly due to the sale of the land software assets in Q1 2015 partially offset by higher log data revenue. Revenue in the Seismic Data segment ($3.0 million) decreased by $2.5 million (45%) due to three seismic participation surveys that were completed in the first nine months of 2015; there were no surveys completed in the first nine months of 2016. Seismic brokerage revenue was also lower due to lower activity levels. These decreases were partially offset by an increase in seismic data library revenue of $2.3 million. Revenue in the Services segment ($2.0 million) decreased by $3.6 million (65%) as result of reduced capital spending by clients due to low commodity prices. Operating expenses decreased by $4.9 million (39%) to $7.6 million in the first nine months of 2016 from $12.5 million in the same period in 2015. Salaries declined by $3.1 million (42%) due to reduced staffing levels and the austerity measures put in place in response to current economic conditions. G&A expenses declined by $1.8 million (34%) due to a decrease in discretionary expenses as well as software licences and contractor fees. Finance costs increased by $0.3 million (26%) to $1.1 million in the first nine months of 2016 from $0.8 million in the same period in 2015 mainly related to repayment of a $4.5 million bridge loan in March 2015. The Company then a secured a new bridge loan in September 2015. Therefore, debt levels were higher during the first nine months of 2016 compared to same period in 2015. Depreciation and amortization decreased by $5.2 million (52%) to $4.8 million in the first nine months of 2016 from $10.0 million in same period in 2015 mainly due to the addition of new seismic data in first nine months of 2015; no new data was acquired in first nine months of 2016. As at September 30, 2016, Divestco had a working capital deficiency of $6.1 million (December 31, 2015: $2.1 million deficiency), excluding deferred revenue of $1.5 million (December 31, 2015: $1.3 million). The increase in the working capital deficit from the end of 2015 was primarily due to the reclassification of the Company's bridge loan and a portion of its shareholder loans from long-term to current at September 30, 2016. The bridge loan is repayable on March 31, 2017 and shareholder loan repayments commence on April 1, 2017. Management is in discussions with potential lenders to repay its bridge loan and continues to search for additional sources of capital to fund the Company's growth opportunities. (1) See the "Non GAAP Measures" section of the Company's Management Discussion and Analysis filed on the Company's website and on SEDAR There has been an improvement in West Texas Intermediate oil prices from a low of US$27/barrel in February 2016 to US$45/barrel in November 2016 and rig utilization has improved from 12.5% in July 2016 to 22% in November 2016. However, commodity prices and rig utilization remain significantly lower than 2014 levels which has forced most North American oil and gas producers to keep their capital spending to a historically low levels and access to capital remains challenging for the industry. Due to significantly lower activity levels, Divestco continues to reduce its operating expenses. Due to the austerity measures implemented by the Company starting in Q1 2015, salaries have decreased by 42% (first nine months of 2016 compared to first nine months of 2015) and all other discretionary expenses have been lowered as well. These measures are expected to remain in place for the remainder of 2016 or until a material change in activity levels is realized. Mr. Stephen Popadynetz, CEO and President commented: "The cost controls we continued to utilize in 2016 combined with higher data license revenue contributed to Divestco achieving positive funds from operations of $0.6 million for the nine months ended September 30, 2016. Operating expenses were nearly 40% lower compared to the same period in 2015. We also had several deals pending at the end of Q3 2016 which are expected to close in Q4 2016. In addition, after 18 months of absence, we returned to acquiring new seismic in Q4 2016. If oil prices continue to improve, we could have several other program opportunities (currently under our review) that should become economic for our customers and could lead to additional growth. We are beginning to see some signs that the recession is in its final stages and we continue to receive bids for a significant number of international opportunities. All of this coupled with improving domestic markets, is expected to lead to better and more profitable quarters in our near future." 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". Additional information on the Company is available on its website at Divestco.com and on SEDAR at sedar.com. 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 news release. This press release contains forward-looking information related to the Company's capital expenditures, projected growth, view and outlook with respect to 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. 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. 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. In particular, this press release contains forward-looking statements pertaining to the following: Company's ability to keep debt and liquidity at acceptable levels, improve/maintain its working capital position 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; 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; impact of Canadian federal and provincial governmental regulation on the Company; expected levels of operating costs, finance costs and other costs and expenses; future ability to execute acquisitions and 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; and new accounting pronouncements. These forward-looking statements are based upon assumptions including: 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; 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 conditions; 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 regulation.

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