FINANCING / Arcis credit lines
ARCIS INCREASES FINANCING
CALGARY, Oct. 7 /CNW/ - (RKS-TSE): Arcis Corporation announced today that
it has entered into two agreements that will increase its long and short term
debt capacity.
Arcis has accepted an offer of increased credit facilities from its
principal banker, The Royal Bank of Canada. Arcis currently has a $1.1
million fixed rate term loan and a $2.0 million operating credit facility.
Under the new facility, Arcis will have an additional $3 million available
annually for the period from January 1 to June 30. This will assist Arcis in
financing its peak sales period, which occurs from early December to late
March.
Arcis has also accepted an Offer to Finance from the Business Development
Bank of Canada (''BDC''). BDC has offered a $1.25 million loan, which matures
in May, 2002. The loan proceeds will be used for the ongoing expansion of
Arcis' seismic data library. Despite a significant slowdown in oilfield
activity, Arcis is experiencing a strong demand for multi-client and exclusive
surveys for the upcoming fall/winter exploration season.
Recognizing the high cost and lack of availability of equity capital,
Arcis has increased debt capacity in order to maintain momentum and capitalize
on opportunities during an extremely slow period for oilfield services.
Arcis remains cautiously optimistic about the upcoming exploration season
recognizing that its significant gas leveraged clients are planning active
winter programmes.
Arcis Corporation is a uniquely integrated geophysical services company
which processes, archives, brokers and manages seismic data as well as
provides five field acquisition crews to shoot exclusive and non-exclusive
seismic data. It is the Companys' objective to create a large proprietary
seismic data library in the next few years.
%SEDAR: 00008978E
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For further information contact: Peter Boyd, Chairman & CFO or Michael
Little, President, Arcis Corporation, (403) 781-1700, Fax: (403) 269-1966,
E-mail: pboyd@arciscorp.com, Internet: www.arciscorp.com; Grant Howard, The
Howard Group Inc. (Investors Relations), Toll Free: (888) 221-0915, Fax: (403)
237-8387, E-mail: howardg@capitalideas.com, Internet: www.capitalideas.com
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