VTS + ENERTEC -----
Canadian Company Press Release
VTS 1999-02-22 (provided courtesy of BCE Emergis E-News Services.)
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VERITAS DGC INC. AND ENERTEC RESOURCE SERVICES INC. ANNOUNCE LETTER OF INTENT
HOUSTON, TEXAS--
Veritas DGC Inc. (NYSE & TSE: VTS) and Enertec Resource Services
Inc. (TSE: ERS) jointly announced today the signing of a letter
of intent outlining the terms of a stock-for-stock transaction
providing for the acquisition of Enertec by Veritas.
The letter of intent provides generally 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.
Dave Robson, Chairman and Chief Executive Officer of Veritas
commented, "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."
Murray Olson, President and Chief Executive Officer of Enertec
stated, "Combining two leading companies in the North American
market increases the operational and financial flexibility that
is in the best interests of our customers, our employees and our
shareholders."
The proposed transaction is subject to negotiation and execution
of definitive agreements, approval of the boards of directors and
shareholders of both companies, as well as applicable Canadian
and United States regulatory approvals. The companies presently
expect the transaction to close prior to June 30, 1999.
Enertec is a Calgary based provider of land acquisition, seismic
data processing, and marine geophysical surveys and positioning
services for both production and engineering purposes. Veritas
DGC Inc. is a leading provider of land, transition zone and
marine-based seismic data acquisition, seismic data processing,
and multi-client data sales to the petroleum industry
headquartered in Houston. Veritas operates seven divisions in
selected markets worldwide and, based on revenues, is the
fifth-largest geophysical services provider.
For additional information, please contact:
Veritas DGC Inc.
Dave Robson, Chairman and CEO
Tony Tripodo, Executive VP and CFO
Rene VandenBrand, VP Business Development
713-512-8300
Enertec Resource Services Inc.
Murray Olson, President and CEO
Peter Ryder, VP Finance and CFO
403-261-8989
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