Pulse – a major sale!

Pulse seismic is on board in my portfolio for a while now. The shares have moved up and down in the past months so I was pleased to read this news release this morning from PSD.

CALGARY, ALBERTA–(Marketwire – March 13, 2012) – Pulse Seismic Inc. (TSX:PSD) (“Pulse” or “the Company”) announces it has signed a $27.8 million seismic data licensing agreement. The majority of the seismic data is located in the Cutbank Ridge area of northwest British Columbia.

Seismic data sales from the Company’s 2010 significant asset acquisition of the Cutbank Ridge and Montney datasets have now totalled $49.5 million in the 18-month period ended March 31, 2012. This represents an 89 percent cash recovery of the $55.6 million cash component of the purchase price for this acquisition.

Full news release can be found here.

Just has a side note, PSD has low to no cost of sale on this 28M$.  It represents roughly 20% of market cap in profit on this sale alone.  Amazing isn’t it?

Disclosure : Author is long PSD.

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