Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Herb Duncan who wrote (10821)	5/20/1998 9:49:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

SERVICE SECTOR / Syner-Seis Reports its 1997 Results of Operations ASE SYMBOL: SYN MAY 20, 1998 CALGARY, ALBERTA--Mr. Dimitris Agouridis, the President of SYNER-SEIS Technologies Inc. would describe STI's corporate performance in 1997 as both successful and growth oriented. "We accomplished our long awaited public listing on the Alberta Stock Exchange in May 1997 and began implementation of our innovative business model by acquiring First Breaks Statics Inc. (FBS) on September 1, 1996 and Exploration Innovations Inc. (EI) and EI Processing Inc. (EIP) on October 31, 1997." FBS had annual revenues of $560K at the time of acquisition and was purchased for $300K in cash and $200K in common shares. Since its acquisition, FBS's revenues have increased to $1.14M with a 46 percent profit margin. STI recovered its initial cash investment within 12 months of the acquisition. EI and EIP were acquired as of October 31, 1997 for the combined price of $240K, comprised of $140K in common shares (share price of $2.75), $25k in cash and the assumption of a $75K loan. At the time of acquisition, the combined companies' annual revenues were approximately $1.6M. These companies were acquired at a substantially lower cost than their fair market value as we considered them to be a turn-around situation. The corporation immediately commenced a corporate restructuring securing employee stability and profitability by establishing a profit sharing plan that has proven very successful. EI and EIP pro rated annual revenues have increased to $2.2M with EIP achieving record monthly revenues of $160K to $180K. STI expects to recover its initial cash investment within the next few months. EI and EIP provide STI with a tremendous hardware and software base for off-the-shelf seismic data processing, significant expansion capabilities and experienced technical personnel who can facilitate future growth. The primary focus for our first year in operation was the development of a strong operational base in the very competitive Calgary seismic processing market. The goal for this local market penetration is two-fold. Firstly, we want to develop a strong cash flow base and secondly, we wish to introduced our innovative software technology to an established clientele. Initially, we are utilizing STI's proprietary technology within our own service companies to introduce it to the Oil & Gas industry through existing clientele. We are pleased to report that we have met and surpassed our first year objectives. International marketing of these technological solutions is scheduled to commence late in 1998. Marketing these solutions will be implemented either via stand-alone module marketing or as an add on product to the exiting dominant systems such as Focus and Green Mountain Statics. We have integrated three and plan to integrate four more of OLYMPUS's seventeen modules into the Paradigm Focus / Disco software technology currently used by EI Processing. This integration will not only provide a production oriented demonstration opportunity for STI's research and development team but will enhance the services and products available to our clients. The modules have already been introduced to and approved by EIP's clients and are included (via Paradigm's FOCUS) in EIP's streamlined processing system. Successful integration of three of the OLYMPUS modules has also occurred within the framework of FBS and its Green Mountain Geophysical software. These demonstrations are necessary precursors to directly marketing the OLYMPUS seismic processing system and/or modules to the Oil & Gas industry at large. The module integrations have proven to increase the efficiency of third party software systems and to furnish our clients with enhanced results. Sales of these modules will begin as add-on specialized solutions for Paradigm's FOCUS and Green Mountain Statics. This should lead to creative strategic relationships with the dominant players in the international Oil & Gas markets, avoiding head-on competition and high costs resulting in faster international market penetration. We have already established business relationships that, in our opinion, can be expanded to produce impressive marketing results. During this coming year, we are also planning to commence field processing operations on an international scale. We have identified Latin and South America as our primary target for international expansion and active market research is ongoing in Bolivia, Colombia and Venezuela. STI is also actively investigating the growing market opportunities created by increased offshore activity in Eastern Canada. Our corporate growth model has been designed based on service company acquisition and technological strategic alliances targeting an expanded market share in the Oil & Gas industry. Such acquisition can be achieved using our strong cash position or shares at the company's discretion. We will continue to pursue other complimentary acquisitions within the seismic service sector including a Seismic Data Management/Data Archiving company which will allow us to provide a broader spectrum of integrated seismic services to the Oil & Gas exploration industry. In 1997, we experienced dramatic increases in shareholder equity and revenues. We have reached annual revenues of approximately $1.45 million dollars that represents over 500 percent growth in revenues over 1996. Our net shareholder equity increased by 212 percent, from $1.16M to $3.63M. Within the next eighteen months, STI is projecting to expand its seismic service market share to the level that will establish us as a major 'player' in Calgary's dynamic and competitive seismic processing market. /T/ Audited Results of Operation Year Ending December 31 (Thousands of Dollars) Percent 1997 1996 Change Revenues: Processing & Interpretation 1,416.5 234.5 504 Interest 40.1 3.9 928 Total Revenue 1,456.6 238.4 511 Operating Expenses 1,132.0 317.8 256 Cash Flow From Operations 324.6 (79.4) 509 Amortization 136.9 26.7 413 Deferred Income Tax 105.9 (40.5) 361 Net Income 81.8 (65.6) 225 Cash Flow Per Share ($/Share) 0.04 (0.02) Net Income Per Share ($/Share) 0.01 (0.01) /T/ Net income for the year ending December 31, 1997, increased 225 percent to $81,800 compared to the same period in 1996 with a net loss of ($65,520). Cash flow from operations for 1997 increased 509 percent to $324,589 compared to a decrease in cash flow from operations of $(79,408) in 1996. An analysis of STI's operating results are as follows: Revenues for the year ending December 31, 1997 increased 511 percent to $1,456,554, compared to the same period in 1996. The increase was primarily from processing revenue. First Break Statics (FBS) accounting for $1,142,254 or 78 percent of processing sales. Exploration Innovation Inc. (EI) and EI Processing Inc. (EIP) acquisitions on October 31, 1997 or the last two months of the year accounted for the 22 percent of the sales. Total operating expenses for 1997 increased 256 percent to $1,131,965 compared to the same period in 1996. Most of the costs increased as a result of the increased operations, however there were one time costs of $51,000 related to the private financing and the Initial Public Offering. Non cash items were a significant portion of the expenses. Deferred Income Taxes and Amortization accounted for over 17 percent of the total revenues for 1997, an increase of 382 percent over the same period of 1996.

To: Herb Duncan who wrote (10821)	5/21/1998 5:11:00 PM
From: SofaSpud	Read Replies (9) \| Respond to of 15196

SERVICE SECTOR ACQUISITION / Otatco + Premier Sea & Land OTATCO CLOSES ACQUISITION OF INTERNATIONAL OIL SERVICES TRADING COMPANIES CALGARY, May 21 /CNW/ - OTATCO Inc. (''OTATCO'') is pleased to announce that its Offer to Purchase all of the issued and outstanding shares of Premier Sea & Land Pte. Inc. of Singapore, Premier Sea and Land Limited of Hong Kong has closed today. The effective date of the acquisitions is January 1, 1998. Total consideration paid for the two companies is six (6) million Class A Common Shares of OTATCO, $US 10,000 cash, plus a percentage of profits from international business activities for the next five years. Premier's management will remain with OTATCO. Based in Singapore and Hong Kong, Premier Sea & Land Pte. Inc. and Premier Sea and Land Limited have established operations in southeast Asia, primarily in the areas of oilfield equipment sales, servicing, rentals, trading and procurement for customers in Malaysia, Australia, Thailand, China, Vietnam, Myanmar and Indonesia. Assets and infrastructure include drilling and production tools, rental equipment, warehousing, and equipment servicing facilities. The Premier companies had gross sales of approximately $2.9 million and cash flow in excess of $600,000 for the 3 month period ending March 31, 1998. OTATCO is an oilfield production services and technology company listed on the Alberta Stock Exchange (symbol: OTI). The Alberta Stock Exchange has neither approved nor disapproved of the information contained herein. -30- For further information: David L. Yager, President, Robert Dunstan, Chief Financial Officer, (403) 266-0908, Fax: (403) 266-1639