CALGARY, ALBERTA--(Marketwire - Oct. 16, 2012) - Tesla Exploration Ltd. (TSX:TXL) ("Tesla" or the "Company") announced today that is has renewed its normal course issuer bid ("NCIB"). The Toronto Stock Exchange ("TSX") has accepted Tesla's notice of intention to make the NCIB.
As at October 4, 2012, there were 23,123,305 common shares of Tesla ("Common Shares") outstanding. Under the terms of the NCIB, Tesla may purchase, from time to time, as Tesla considers advisable, up to a maximum of 1,156,165 Common Shares, being 5% of the issued and outstanding Common Shares as at October 4, 2012, during the course of the NCIB. In accordance with TSX rules, a maximum daily repurchase of 1,000 Common Shares may be made. During the past 12 months, 134,115 Common Shares were repurchased by Tesla.
Tesla is making the NCIB because it believes that the market price of its Common Shares does not reflect their underlying value and that the NCIB may provide value by reducing the number of Common Shares outstanding at attractive prices.
Purchases of Common Shares will be made on the open market through the facilities of the TSX. The price which Tesla will pay for any Common Shares purchased by it will be the prevailing market price of the Common Shares on the TSX at the time of such purchase. All Common Shares purchased under the NCIB will be cancelled.
The NCIB will commence on October 18, 2012 and will terminate on October 17, 2013 or such earlier date on which Tesla completes its purchases of Common Shares under the NCIB or terminates the NCIB at its option.
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".