Tesla Exploration Ltd. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2012. For the quarter, the company reported revenue of CAD 28,853,000 against CAD 47,237,000 a year ago. Net loss was CAD 3,903,000 or CAD 0.17 per basic share against CAD 332,000 or CAD 0.01 per basic share a year ago. EBITDA was CAD 1,311,000 or CAD 0.06 per basic share against CAD 5,375,000 or CAD 0.24 per basic share a year ago. Cash flow from operations was CAD 2,317,000 or CAD 0.10 per basic share against CAD 5,642,000 or CAD 0.25 per basic share a year ago. Capital expenditures was CAD 2,214,000 against CAD 1,852,000 a year ago. The company's EBITDA decreased compared to the third quarter of 2011 due to the decline in absolute gross margin along with an increase in general and administrative costs across most segments. The company's consolidated net loss increased exceeding the consolidated net loss in the third quarter of 2011 due to the reduced EBITDA, increased depreciation related to the Hawk system and reduced gains from disposals and foreign exchange. This was partially offset by a reduction in tax expense.

For nine months, the company reported revenue of CAD 149,936,000 against CAD 163,130,000 a year ago. Net earnings were CAD 6,101,000 or CAD 0.27 per basic share against net loss of CAD 143,000 or CAD 0.01 per basic share a year ago. EBITDA was CAD 25,620,000 or CAD 1.13 per basic share against CAD 16,439,000 or CAD 0.72 per basic share a year ago. Cash flow from operations was CAD 25,130,000 or CAD 1.11 per basic share against CAD 16,344,000 or CAD 0.72 per basic share a year ago. Capital expenditures was CAD 23,667,000 against CAD 8,235,000 a year ago.

The company hired and appointed Nathaniel Usher as Director of Geoscience for Tesla Offshore. Mr. Usher previously worked for ARCO/BP for 30 years and will assist Tesla Offshore in optimizing use of state of the art technology in geophysical survey operations, including the Autonomous Underwater Vehicle service line, and to further the development of geohazards interpretation services for clients worldwide.

Tesla Canada plans to operate six crews during the first quarter of 2013 (down from eight), with a continued focus on 3C technology for oilsands projects and shale plays in western Canada. Tesla Canada will also utilize the company's Hawk system on a large program throughout the first quarter of 2013.