Geokinetics Inc. Announces Increase to Capital Expenditure Budgetadmin
Geokinetics Inc. announced that the Company’s Board of Directors has approved an increase to the Company’s capital expenditure budget for the year ended December 31, 2008. The approved amount has been increased to $80.0 million, up 24 percent from $64.7 million.
In response to robust customer demand for the Company’s seismic data acquisition and processing services, Geokinetics plans to increase total recording capacity in its shallow water seabed operations, both transition zone and OBC as well as expand its presence in other international markets.
To accommodate this increase, the Company has amended its line of credit with PNC Bank, National Association dated June 26, 2008. The Fourth Amended and Restated Credit and Security Agreement includes, among other items, an increase in the aggregate amount of capital expenditures funded by the line of credit from $50.0 million to $80.0 million for 2008.
Richard F. Miles, President and Chief Executive Officer said, “Leading exploration and production companies worldwide are increasing their exploration budgets, resulting in strong demand for our brand of high-value seismic data acquisition and processing services. Our backlog of business remains strong, especially in our niche markets of international and frontier operating environments, and we will require additional capacity based on our committed work for 2009. The increase in the 2008 capital expenditure budget will give us the capacity we need to meet customer needs, grow operations and increase shareholder value.”
About Geokinetics Inc.
Geokinetics Inc., based in Houston, Texas, is a leading global provider of seismic acquisition and high-end seismic data processing services to the oil and gas industry. Geokinetics has strong operating presence in North America and is focused on key markets internationally. Geokinetics operates in some of the most challenging locations in the world from the Arctic to mountainous jungles to the transition zone environments. More information about Geokinetics is available at http://www.geokinetics.com.
Source: Geokinetics Inc.