Mr. Neal Coleman reports

PULSE SEISMIC INC. REPORTS STRONG Q2 2023 RESULTS AND DECLARES REGULAR QUARTERLY AND SPECIAL DIVIDENDS

Pulse Seismic Inc. has released its financial and operating results for the three and six months ended June 30, 2023. The unaudited condensed consolidated interim financial statements, accompanying notes, and management's discussion and analysis are being filed on SEDAR, and will be available on Pulse Seismic's website.

Pulse Seismic's board of directors today approved a regular quarterly dividend of 1.375 cents per share and a special dividend of 15 cents per share. The total of the regular and special dividend will be approximately $8.7-million based on Pulse Seismic's 53,280,621 common shares outstanding as of July 25, 2023, and will be paid on Aug. 22, 2023, to shareholders of record on Aug. 14, 2023. These dividends are designated as an eligible dividend for Canadian income tax purposes. For non-resident shareholders, Pulse Seismic's dividends are subject to Canadian withholding tax.

"We are very pleased with the level of data sales generated in the first half of 2023. As our stakeholders know, there is significant volatility from year to year in the sales generated from data licensing contracts," stated Neal Coleman, Pulse Seismic's president and chief executive officer. "Following a slow year in 2022, we have in six months achieved 183 per cent of annual 2022 sales, resulting in a significant increase in the cash balance. Being in the strong financial position we are, with zero debt and low operating costs, the company generates high margins with strong free cash flow. Notwithstanding the fluctuations we experience in annual revenues, we then seek to invest opportunistically to increase our per-share value. For 2023, this includes the purchase of 346,248 of Pulse shares year to date through our normal course issuer bid. Thereafter, we distribute excess cash in the form of dividends. Consistent with that approach, the board of directors today determined that in addition to approving the regular quarterly dividend of 1.375 cents per share, a prudent allocation of capital at this time would be to return excess cash to shareholders in the form of a special dividend of 15 cents per common share."

Highlights for the three and six months ended June 30, 2023:

• Total revenue was $8.8-million for the three months ended June 30, 2023, compared with $3.1-million for the three months ended June 30, 2022. For the six months ended June 30, 2023, total revenue was $17.2-million compared with $5.0-million for the six months ended June 30, 2022. The period-over-period revenue increases are the result of data library sales increase in the first half of 2023.
• Net earnings for the three months ended June 30, 2023, were $3.4-million (six cents per share, basic and diluted) compared with a net loss of $1.8-million (three cents per share, basic and diluted) for the three months ended June 30, 2022. Net earnings for the six months ended June 30, 2023, were $6.3-million (12 cents per share, basic and diluted) compared with a net loss of $4.3-million (eight cents per share, basic and diluted) for the six months ended June 30, 2022.
• EBITDA (earnings before interest, taxes, depreciation and amortization) was $6.9-million (13 cents per share, basic and diluted) for the three months ended June 30, 2023, compared with $818,000 (two cents per share, basic and diluted) for the three months ended June 30, 2022. EBITDA was $13.6-million (25 cents per share, basic and diluted) for the six months ended June 30, 2023, compared with $827,000 (two cents per share, basic and diluted) for the six months ended June 30, 2022.
• Shareholder free cash flow was $5.8-million (11 cents per share, basic and diluted) for the second quarter of 2023 compared with $1.2-million (two cents per share, basic and diluted) for the comparable period in 2022. Shareholder free cash flow was $11.1-million (21 cents per share, basic and diluted) for the six months ended June 30, 2023, compared with $1.4-million (three cents per share, basic and diluted) for the six months ended June 30, 2022.
• In the six-month period ended June 30, 2023, Pulse Seismic purchased and cancelled, through its normal course issuer bid, a total of 92,348 common shares at a total cost of approximately $161,000 (at an average cost of $1.74 per common share including commissions).
• At June 30, 2023, Pulse Seismic was debt-free, and had a cash balance of $9.7-million and cash of $18.5-million on July 25, 2023. The $25.0-million revolving credit facility is undrawn and fully available to the company.

Outlook

With seismic data library sales of $17.1-million in the first half of 2023, equivalent to 183 per cent of sales achieved in all of 2022, Pulse Seismic remains cautiously optimistic about the rest of the year. Areas of strength continue to include buoyant global demand for fossil fuels, forecasts for continued growth in industry capital investment and field activities, continuing corporate profitability, and Alberta mineral lease auctions through June 30 showing the greatest year-to-date strength in nearly a decade. These positive factors are dampened by continued geopolitical instability and a challenging federal regulatory environment.

The company cautions, as always, that industry conditions do not provide visibility regarding Pulse Seismic's seismic data library sales levels. Pulse Seismic's key strengths include zero debt, a low-cost structure, high leverage to increased revenue in its EBITDA margin, no capital spending commitments, Canada's largest licensable seismic data library and strong customer relations.

The company remains focused on the business practices that have served it throughout the full range of conditions: maintaining a strong balance sheet with access to credit on favourable terms, careful management of cash resources including distributing cash to shareholders when prudent, a low-cost structure, a disciplined and rigorous approach to growth opportunities, an experienced and capable management team, and excellent customer care complemented by the initiative to broaden the attractiveness of the seismic data library.

About Pulse Seismic Inc.

Pulse Seismic is a market leader in the acquisition, marketing and licensing of 2-D and 3-D seismic data to the Western Canadian energy sector. Pulse Seismic owns the largest licensable seismic data library in Canada, currently consisting of approximately 65,310 square kilometres of 3-D seismic and 829,207 kilometres of 2-D seismic. The library extensively covers the Western Canada sedimentary basin, where most of Canada's oil and natural gas exploration and development occur.

We seek Safe Harbor.