HUNTSVILLE, Texas, Aug. 2 /PRNewswire-FirstCall/ -- Mitcham
Industries, Inc. (Nasdaq: MIND) (the "Company") today announced
that it has entered into an amended revolving credit agreement with
First Victoria National Bank and The Frost National Bank
(collectively the "Banks"). The amended credit agreement
provides for total borrowings of up to $35
million on a revolving basis through May 31, 2012, up from the $25 million available previously. Borrowings
under the amended facility bear interest at 50 basis points over
prime. Other terms of the agreement are essentially unchanged
from the company's previous $25
million credit facility with the Banks. In addition,
the Company announced that it now expects additions to its lease
pool to total between $22 million and $25
million in the fiscal year ending January 31, 2011.
Bill Mitcham, the Company's
President and CEO, stated, "We are seeing increased inquiries and
bid activity from our customers in many parts of the world.
Accordingly, we have made the decision to commit additional
capital to our lease pool so that we can respond quickly to
increased demand. The equipment we are adding includes the
7,500 stations of Sercel Unite cable-free technology that we
recently announced, additional traditional land channels,
geophones, marine equipment, as well as other items. We have
taken delivery of more than half of the expected purchases and
expect to take delivery of the balance of the equipment during the
course of the next few months. We are excited about the
opportunities we see before us and look forward to meeting the
needs of our customers."
"Recently we significantly reduced the outstanding balance under
our revolving credit facility, leaving $9.3
million outstanding as of July 31,
2010. Despite this reduction in borrowings, we thought
now was the right time to expand and extend this facility in order
to preserve our financial flexibility for the foreseeable future.
We believe that the expansion and extension of our credit facility
will provide us with the flexibility to take advantage of the
opportunities that we are seeing now and that we expect to arise
during the current recovery of the seismic industry. The amended
facility provides us with additional borrowing capacity and has no
required repayments until May 2012."
Mitcham Industries, Inc., a geophysical equipment supplier,
offers for lease or sale, new and "experienced" seismic equipment
to the oil and gas industry, seismic contractors, environmental
agencies, government agencies and universities. Headquartered in
Texas, with sales and services
offices in Calgary, Canada;
Brisbane, Australia; Singapore; Ufa, Bashkortostan, Russia; Lima,
Peru; Bogota, Colombia and
the United Kingdom and with
associates throughout Europe,
South America and Asia, Mitcham conducts operations on a global
scale and is the largest independent exploration equipment lessor
in the industry.
This press release includes forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934
and Section 27A of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical facts
included herein, including statements regarding the Company's
future financial position and results of operations, planned
capital expenditures, the Company's business strategy and other
plans for future expansion, the future mix of revenues and
business, future demand for the Company's services and general
conditions in the energy industry in general and seismic service
industry, are forward-looking statements. While management believes
that these forward-looking statements are reasonable when and as
made, actual results may differ materially from such
forward-looking statements. Important factors that could cause or
contribute to such differences include possible decline in demand
for seismic data and our services; the effect of fluctuations
in oil and natural gas prices on exploration activity; the effect
of uncertainty in financial markets on our customers' and our
ability to obtain financing; loss of significant customers;
seasonal fluctuations that can adversely affect our business;
defaults by customers on amounts due us; possible impairment of
long-lived assets; risks associated with our manufacturing
operations; inability to obtain funding or to obtain funding
under acceptable terms; intellectual property claims by third
parties; risks associated with our foreign operation, including
foreign currency exchange risk; and other factors that are
disclosed in the Company's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K, which are
available from the Company without charge. Readers are cautioned to
not place undue reliance on forward-looking statements which speak
only as of the date of this release and the Company undertakes no
duty to update or revise any forward-looking statement whether as a
result of new information, future events or otherwise.
Contacts:
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Billy F. Mitcham, Jr., President
& CEO
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Mitcham Industries,
Inc.
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936-291-2277
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Jack Lascar / Karen
Roan
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Dennard Rupp Gray & Easterly
(DRG&E)
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713-529-6600
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SOURCE Mitcham Industries, Inc.
Copyright g. 2 PR Newswire