CALGARY, ALBERTA--(Marketwire - May 31, 2012) - Tesla Exploration Ltd. ("Tesla" or the "Company") (TSX:TXL) is pleased to announce it has entered into an extended seismic services agreement (the "Agreement") with a multi-client geophysical company. Under the Agreement, the Company is guaranteed 18 crew months of activity during a 24 month period with an option to extend the Agreement for an additional 24 months by mutual agreement of the parties. The Company intends to proceed with the purchase of 10,000 stations of a wireless multi-component seismic acquisition system and auxiliary equipment at a cost of approximately $18.0 million, which will be financed out of cash on hand, long-term debt or lease financing.
Tesla provides geophysical and related services in Canada, internationally through its wholly owned subsidiaries Tesla Exploration International Ltd. and Tesla Exploration Trinidad Ltd., and in the United States through Tesla Exploration Inc. and Tesla Offshore LLC. Since the Company's inception in 2000, Tesla has grown both organically and through acquisitions funded by retained earnings and prudent levels of borrowing, from a Canadian focused land seismic business to a global provider of a broad suite of geophysical and related services. Tesla trades on the TSX under the symbol "TXL".