Tesla International is also mobilizing equipment from Djibouti and vibroseis units from Oman to Somaliland after securing work for two crews on a long-term day-rate project beginning in April. The project is expected to last through the end of the year with bonus incentives for early completion.
Two key areas of East Africa are expected to see a return to greater activity following political stabilisation and the interest of some of the Major operators in developing their activities in the area. The first key area involves interests along the Great Lakes Trend from Tanzania into Ethiopia. This interest is in chasing analog plays based on the recent discoveries in Uganda and successes in Northern Kenya. The second area of increased exploration activity is near coastal blocks from Mozambique northward to Somalia which are hinged on recent major gas discoveries offshore East Africa. Tesla International expects to be successful in obtaining additional work from both these opportunities and from exploiting some potential new areas of activity to extend its current backlog. Tesla International's branch office in Islamabad continues to explore opportunities in the region.
The UK technical services office remains steady with a number of processing and interpretation projects recently awarded and underway with high utilization of capacity expected to continue.
The Jakarta processing office has recently been awarded some sizable projects that will keep the office fully utilized through early 2013. Additional opportunities continue to be pursued to maintain backlog.
Tesla Offshore is benefitting from increased activity levels in the Gulf of Mexico. The central and eastern Gulf of Mexico lease sale was held on June 20, 2012, the first since the Macondo oil spill in early 2010. The return of lease sales was positive news for Tesla Offshore, as lease sales generally lead to an increase in geophysical operations as operators require geophysical surveys for the purpose of securing drilling permits and evaluating new lease properties. With 2013's Central Gulf lease sale returning to the standard March schedule, a significant increase in opportunities during the fair weather season are expected. In addition, hurricane Isaac's path through the Gulf of Mexico has resulted in government mandated survey requirements for operators in that impact corridor of the Gulf of Mexico. Tesla Offshore has a healthy backlog of both turnkey and day rate work as a direct result of the lease sale and hurricane Isaac that is keeping multiple vessels occupied throughout the first quarter of 2013. In April 2013, Tesla Offshore will remobilize two geophysical vessels to continue the large scale day rate exploration projects that were put on hold for the winter months.
Construction activity has slowed down considerably as is common during the winter months and will stay that way until spring when improved weather allows these types of projects to resume.
Tesla Offshore continues to pursue opportunities outside the Gulf of Mexico and is entering the second year of a multi-year project in Alaska. As long-term clients expand into international areas, Tesla Offshore is configuring systems and staff to profitably provide services to support their operations.
Focusing on this growth plan, Tesla Offshore committed to the purchase of a $6 million Bluefin AUV which has the ability to acquire high resolution ocean bottom data. Tesla Offshore expects the AUV to be delivered and operational in September 2013. In addition to addressing a much needed service to our existing customer base, this will open new markets for Tesla Offshore related to deep water oil and gas field development, along with governmental, environmental and academic applications. Tesla Offshore plans to operate the AUV not only in the Gulf of Mexico, where the US Government now requires data across most of the deep water Gulf of Mexico blocks to be acquired by an AUV, but on a global basis. Tesla Offshore hired several experienced personnel to manage and optimize use of state of the art technology in geophysical survey operations, including the AUV service line, and to further the development of geo-hazards interpretation services for clients worldwide. The AUV team is also in the process of identifying other AUV specialists, to support field operations.
Certain information set forth in this press release, including management's assessment of the Company's future plans and operations, contains forward-looking statements, which are based on the Company's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "believes", "projects", "intends", "continues", "estimates", "objective", "ongoing", "may", "will", "should", "might", "plans" and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements are based on current expectations, estimates and projections that involve a number of known and unknown risks and uncertainties, which may cause the Company's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These include, but are not limited to, the risks outlined in the "Business Risks" section of the Company's MD&A for the three and twelve months ended December 31, 2012.
The information contained in this press release should not be considered all-inclusive as it excludes changes that may occur in general economic, political and environmental conditions. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond its control. Investors are cautioned against attributing undue certainty to forward-looking statements. The forward-looking information and statements contained in this press release speak only as of the date hereof and, subject to its obligations under applicable law, the Company does not intend, and does not assume any obligation, to update these forward-looking statements if conditions or opinions should change.
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".
Tesla Exploration Inc.
Mr. Richard Habiak
President and CEO
Tesla Exploration Inc.
Mr. Stuart Craven
Vice President and CFO
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