Total long-term borrowings grew by $3.1 million during the quarter to $25.3 million. Draws on long-term debt of $4.0 million were partially offset by regular payments made on outstanding finance leases. Subsequent to March 31, 2013, the Company repaid $5.0 million on long-term debt reducing total long- term borrowings to $20.3 million.
Further, the Company renewed its Canadian credit facility agreement consisting of a $15 million operating loan, a $30 million revolving credit facility and a $24 million (previously $20 million) finance lease facility. All facilities are available in either Canadian or US currency at Tesla's discretion. The Company also expanded its UK subsidiary's overdraft facility to GBP 4 million (previously GBP 2 million). These facilities provide the Company with flexibility with respect to capital expenditures and potential acquisitions.
Shareholders' equity increased $9.0 million to $72.4 million during the quarter due to the earnings generated during the quarter, an increase in accumulated other comprehensive income due to the weakening of the Canadian dollar against the functional currency of the Company's foreign subsidiaries and the repurchase of shares under the Company's NCIB. This was partially offset by a reduction in contributed surplus due to the modification of the Company's stock option plan which now includes a cashless exercise feature.
North America Land Operations
Tesla Canada operated two crews into early April as spring break-up hit western Canada. Low natural gas prices will continue to limit exploration activity during the summer months. The Company expects to operate one crew periodically during May and June with one to two crews operational during the third quarter with potential activity in both western and eastern Canada. There is optimism regarding fall work based upon early bid requests and several substantial 3D/3C projects planned for the fourth quarter of 2013.
The Hawk system is back working on 3D programs under an agreement with a multi-client geophysical company. The Hawk crew should continue operating for the remainder of 2013 and should continue to generate improved margins from those realized under current industry metrics. The US seismic market remains soft with heavy competition for available projects. Pricing of services continues to be the driving factor in this competitive market with requirements for higher channel counts, wireless recording systems and third party multi-client programs driving the demand for services. Activity levels remain focused on oil and liquids rich shale plays such as the Bakken, Utica (eastern Ohio) and Marcellus (western Pennsylvania and West Virginia). Activity in the Denver-Julesburg ("DJ") Basin has been slower than projected but is also expected to increase in the second half of 2013. Tesla USA has managed to secure additional contracts and expects to operate at least one additional multi-component 3D recording crew in the second half of 2013. The Company is investigating long-term rental and purchase options to service this demand.
South America Operations
Tesla Colombia was formed in February 2013 to provide seismic acquisition services to companies in Colombia. An experienced management team has spent the better part of a year researching the South American market. In recent years, there has been increased foreign investment in Colombian natural resources, growing exploration activity and a strong demand for experienced and reliable seismic acquisition companies with modern equipment and experience in comparable terrains and environments. Meetings continue to be held and relationships continue to be built with both oil and gas and mining companies operating in Colombia. Many of these companies are Canadian-based or international operators that Tesla has done work for in other regions of the world. Management has also focused on developing relationships with local companies that can provide support to Tesla's operations in Colombia and provide access to potential clients. While no projects have been awarded at this time, the management team continues to pursue a number of opportunities that have been identified during Tesla's presence in the country. Tesla continues to investigate other opportunities in South America, specifically in Trinidad, Ecuador and Suriname.
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