SERVICE SECTOR / Venture Seismic Discloses End of Discussions on
Contract Dispute, Filing of Countersuit and Directors'Resignations
VENTURE SEISMIC LTD.
NASDAQ SYMBOL: VSEFE
JANUARY 19, 1999
Venture Seismic Discloses End of Discussions on Contract
Dispute, Filing of Countersuit and Directors'Resignations
CALGARY, ALBERTA--VENTURE SEISMIC LTD. (NASDAQ NMS: VSEFE)
announced today that discussions with Western Geophysical
("Western") regarding the previously announced seizure of the M/V
Pacific Titan and related litigation with Continental Holdings
Ltd. ("Continental"), a wholly owned subsidiary of Venture, have
been terminated. On January 15, 1999, Continental filed in the
United States District Court, Southern District of Alabama,
Southern Division: (i) an answer denying Western's allegations,
(ii) a counterclaim against Western claiming, among other things,
Western's actions constitute a breach of contract and wrongful
seizure of the M/V Pacific Titan, and have requested the court
award Continental actual damages in excess of $20 million, as well
as consequential and exemplary damages resulting from Western's
actions, and costs of the counterclaim, and (iii) a motion to stay
the federal court proceedings and compel arbitration in accordance
with the terms of the contract between Western and Continental.
Venture also announced that four of Venture's six directors:
Michael Beninger, Joseph Ciavarra, Stuart Norman and Les Stinn,
have resigned effective immediately. Venture's remaining directors
include Brian Kozun and Dan McArthur, both officers of the
Company. On Friday January 15, 1999 all of the directors and
officers of Continental also resigned, except for Roy Self, Vice
President of Continental.
The Company is exploring and discussing with its legal counsel,
without limitation, a number of potential alternatives at Venture
and its subsidiary companies to address its difficulties,
including: filing for creditor protection under applicable
insolvency legislation, the sale of assets, renegotiating existing
financing, streamlining operations to reduce expenses and focus
resources, renegotiating existing contracts, or securing
additional contracts. The Company is unable to predict whether or
when it will develop a plan to address its current difficulties.
There can be no assurance that the Company will be able to timely
or successfully resolve any of its legal, financial or operational
issues facing the Company, the inability of which would materially
adversely affect the Company.
VENTURE SEISMIC LTD. is traded on the Nasdaq National Market
("Nasdaq") and is engaged primarily in the acquisition of land,
wetlands and marine seismic data for use in the exploration for
and development and field management of oil and gas reserves. The
Company acquires seismic data on possible oil and gas reserves for
its customers, which range from junior exploration companies to
fully-integrated multi-national corporations. Venture's
wholly-owned subsidiaries include Continental Holdings Ltd., an
Alberta based company engaged in the acquisition of marine seismic
data, Boone Geophysical, Inc., a Texas based company engaged in
the acquisition of land and wetlands seismic data in the Southern
United States, and Hydrokinetic Surveys of Canada Inc., a company
based in Western Canada which provides shallow marine airgun and
survey services. |
