Divestco Inc. (TSX VENTURE:DVT) ("Divestco" or the "Company") announces its
operating results for the three and twelve months ended December 31, 2011.


Accounting Policy Changes

On January 1, 2011, Divestco adopted International Financial Reporting Standards
("IFRS") for purposes of financial reporting, using a transition date of January
1, 2010. Accordingly, the Company's consolidated financial statements for the
year ended December 31, 2011 and the comparative information for the year ended
December 31, 2010, have been prepared in accordance with IFRS 1, "First-time
Adoption of Int ernational Financial Reporting Standards", as issued by the
International Accounting Standards Board ("IASB"). Previously, the Company
prepared its consolidated financial statements in accordance with Canadian
generally accepted accounting principles ("CGAAP"). The adoption of IF RS has
not had an impact on the Company's operations and strategic decisions.


Results for the Three Months Ended December 31, 2011

Divestco recorded EBITDA of $3.3 million in Q4 2011, a $7.9 million increase
from a loss of $4.6 million for the same period in 2010. The Company generated
funds from operations of $2.9 million ($0.05 per share - basic and diluted) for
t he fourth quarter of 2011, an increase of $6.3 million as compared to funds
used in operations of $3.4 million ($0.08 per share - basic and diluted) for the
same period in 2010.


Divestco significantly reduced its net loss for the fourth quarter of 2011 to
$0.8 million ($0.01 per share - basic and diluted) compared to a net lo ss of
$7.1 million ($0.16 per share - basic and diluted) for the same period in 2010.
Revenues increased and operating costs decreased, however, depreciation and
amortization increased due to the two new seismic surveys that the Company
completed in Q4 2011.


During Q4 2011, Divestco generated revenue of $11.4 million compared to $8.9
million in Q4 2010, an increase of $2.5 million (28%) indicative of a resurgence
in the industry activity. Revenue in the Seismic Data segment increased by $1.9
million (70%) as the Company shot two new seismic participation surveys and
commenced a third survey in Q4 2011. In line with high oil prices, the surveys
were shot within predominantly oil prospective areas. Revenue in the Software
and Data segment grew by $0.3 million (11%) due to a significant sale in Q4
2011. Revenue in the Services segment improved by $0.3 million (8%) as the
demand for seismic processing was also stronger.


Operating expenses decreased by $5.3 million (39%) to $8.2 million in Q4 2011
from $13.5 million in Q4 2010. Salaries and wages were down $0.9 million (17%)
due to reduced staffing levels. In addition, a $1.2 million sublease loss
recognized in Q4 2010 was not repeated in Q4 2011, occupancy costs decreased by
$0.6 million (15%) and bad debt expense decreased by $2.4 million (114%) due to
a non-recurring write-off in Q4 2010. Depreciation and amortization increased by
$2 million (113%) due to the completion of two seismic participation surveys in
Q4 2011.


Results for the Year Ended December 31, 2011

Divestco recorded EBITDA of $6 million in 2011, a $54.8 million increase from a
loss of $48.8 million in 2010. The loss in 2010 included a $40.9 million
accounting loss on the sale of the seismic assets. The Company generated funds
from operations of $5.7 million ($0.10 per share - basic and diluted) for the
year ended December 31, 2011, compared to funds used in operations of $5.3
million ($0.13 per share - basic and dilute d) for the same period in 2010, an
increase of $11 million.


Divestco realized a net loss for 2011 of $4.6 million ($0.08 per share - basic
and diluted) compared to a net loss of $65.6 million ($1.54 per share - basic
and diluted) for the same period in 2010. Excluding an accounting loss of $29.5
million ($40.9 million net of tax of $11.4 million) related to the sale of the
Company's seismic data assets in 2010, the reduction in net loss year over year
of $31.5 million was primarily due to a $13.1 million (28%) decrease in
operating expenses, $2.2 million (73%) decrease in finance costs due to a lower
debt load and a $16.7 million (63%) decrease in depreciation and amortization
due to the sale of the seismic assets.


During 2011, Divestco generated revenue of $40.5 million, an increase of $0.3
million (1%) from $40.2 million for the same period in 2010. Revenue in the
Seismic Data segment increased by $1 million (8%) as the Company shot three
seismic participation surveys and commenced a fourth survey in 2011. Offsetting
this was a decrease in sales of existing seismic data due to the sale of the
Company's seismic assets in Q3 2010. Seismic brokerage revenue was down slightly
from 2010. Revenue in the Software and Data segment was flat as a large software
sale in 2011 and improved sales in log data were offset by a decrease in support
data revenue. Revenue in the Services segment decreased by $0.8 million (4%) as
the demand across all divisions was softer in the first three quarters of 2011.
The exception was the land management division where crown land revenue
increased due to higher land sales then in previous years, reflecting the record
land sales in Alberta.


The decrease in operating expenses of $13.1 million (28%) was due to salaries
and wages being down $2.6 million (12%) due to reduced staffing levels partially
offset by severance costs. In addition there was a $3.3 million sublease loss
recognized in 2010 which was not repeated in 2011, bad debt expense decreased by
$5.4 million (104%) due to a large write-off in 2010, stock based compensation
expense decreased by $0.5 million (86%) and seismic data storage costs decreased
by $0.5 million (100%) due to the sale of the seismic assets.


Seismic data update

Late in 2010, Divestco commenced rebuilding its seismic data library by
initiating a 71 square kilometer 3D seismic survey which was completed in early
2011. The Company also obtained the trading rights to an existing 3D survey
covering an adjacent area of 66 square kilometers in Q1 2011 through a data
exchange. Also in 2011, the Company completed two new 3D surveys in central
Alberta (Cochrane North and Three Hills) covering an area of approximately 251
square kilometers. In Q4 2011, the Company commenced two more 3D surveys
(Brazeau and Big Valley), which were completed in Q1 2012 covering an area of
approximately 260 square kilometers. In Q1 2012, Divestco commenced its Ante
Creek survey which is expected to be completed early in Q2 2012 and cover
approximately 120 square kilometers.


Mr. Stephen Popadynetz, CEO, President and CFO: "We are very pleased to report
that Divestco significantly reduced its operating expenses in 2011. As
previously announced in December 2011, further savings will be realized in 2012
with the surrender of five floors of office space by the end of the current
year. In 2012, the savings amounts to $4 million and $5 million annually
thereafter. We are also pleased with the progress we have made towards
rebuilding our seismic data library. Approximately 389 square kilometers of
seismic has been added to our library in 2011 and a further 380 kilometers are
expected to be added by the end of April 2012. Overall demand for seismic data
and general activity levels in the industry so far this year appear to be
trending positively. We are well on track to sustained profitability and
positive earnings and we look forward to delivering better results for our
shareholders."


Non-GAAP Measures

The Company's consolidated financial statements have been prepared in accordance
with IFRS. Certain measures in this document do not have any standardized
meaning as prescribed by IFRS and are considered non-GAAP measures. These terms
are not measures that have any standardized meaning prescribed by IFRS and are
considered non-GAAP measures. While these measures may not be comparable to
similar measures presented by other issuers, they are described and presented in
this MD&A to provide shareholders and potential investors with additional
information regarding the Company's results, liquidity, and its ability to
generate funds to finance its operations. These measures include:


Earnings before interest, taxes, depreciation and amortization ("EBITDA")

Divestco uses EBITDA as a key measure to evaluate the performance of its
segments and divisions as well as the Company overall, with the closest IFRS
measure being net income or loss. EBITDA is a measure commonly reported and
widely used by investors as indicators of the Company's operating performance
and ability to incur and service debt, and as a valuation metric. The Company
believes EBITDA assists investors in comparing the Company's performance on a
consistent basis without regard to financing decisions and depreciation and
amortization, which are non-cash in nature and can vary significantly depending
upon accounting methods or non-operating factors such as historical cost.


Previously the Company excluded "other Income (loss )" as presented on its
statement of income (loss) and comprehensive income (loss). Other income (loss)
includes the following items: foreign exchange gains/losses, gains/losses on
sales of property and equipment and intangibles, and equity investment
income/loss. Other income (loss) has been included in the calculation of EBITDA
for the current and prior periods.


The Company no longer uses "operating income (loss) " as a non-GAAP measure.
Instead the Company uses the closest GAAP measure, being income or loss before
income taxes.


EBITDA is not a calculation based on IFRS and should not be considered
alternatives to net income or loss in measuring the Company's performance. As
well, EBITDA should not be used as an exclusive measure of cash flow, because it
does not consider the impact of working capital growth, capital expenditures,
debt principal reductions and other sources and uses of cash, which are
disclosed in the consolidated statements of cash flows. While EBITDA has been
disclosed herein to permit a more complete comparative analysis of the Company's
operating performance and debt servicing ability relative to other companies,
investors should be cautioned that EBITDA as reported by Divestco may not be
comparable in all instances to EBITDA as reported by other companies. Investors
should also carefully consider the specific items included in Divestco's
computation of EBITDA.


The following is a reconciliation of EBITDA with net income:



                               Three Months Ended                           
                                      December 31    Year Ended December 31 
----------------------------------------------------------------------------
(Thousands)                     2011         2010         2011         2010 
----------------------------------------------------------------------------
                                                                            
Net Income (Loss)      $        (768) $    (7,105) $    (4,610) $   (65,562)
Income Tax Expense                                                          
 (Reduction)                      25           (1)          86      (12,921)
Finance Costs                    252          724          759        3,049 
Depreciation and                                                            
 Amortization                  3,823        1,795        9,904       26,642 
----------------------------------------------------------------------------
EBITDA                 $       3,332  $    (4,587) $     6,139  $   (48,792)
----------------------------------------------------------------------------



Funds from operations

Divestco reports funds from operations because it is a key measure used by
management to evaluate its performance and to assess the ability of the Company
to finance operating and investing activities. Funds from operations excludes
certain working capital changes and other sources and uses of cash, which are
disclosed in the consolidated statements of cash flows.


Funds from operations is not a calculation based on IFRS and should not be
considered an alternative to the consolidated statements of cash flows. Funds
from operations is a measure that can be used to gauge Divestco's capacity to
generate discretionary cash flow. Investors should be cautioned that funds from
operations as reported by Divestco may not be comparable in all instances to
funds from operations as reported by other companies. While the closest IFRS
measure is cash flows from operating activities, funds from operations is
considered relevant because it provides an indication of how much cash generated
by operations is available before proceeds from divested assets and changes in
certain working capital items.


The following reconciles funds from operations with cash flows from operating
activities:




                                                     Year Ended December 31 
----------------------------------------------------------------------------
(Thousands)                                                2011        2010 
----------------------------------------------------------------------------
                                                                            
Cash Flows from Operating Activities                $     5,093 $     3,643 
Changes in non-cash Working Capital Balances Related                        
 to Operating Activities                                    411     (11,112)
Changes in Long-term Prepaid Expense                          -        (238)
Interest Paid                                               593       2,403 
Income Taxes Refunded                                      (352)        (12)
----------------------------------------------------------------------------
Funds From (Used in) Operations                     $     5,745 $    (5,316)
----------------------------------------------------------------------------



Funded debt and funded debt to equity

Funded debt is a measure of Divestco's long term debt position and includes bank
indebtedness, long-term debt obligations (shareholder and subordinated loans and
finance leases) and convertible debentures. Funded debt to equity is funded debt
divided by shareholders' equity (as reported on the Company's consolidated
statement of financial position). The ratio indicates what proportion of equity
and debt the Company is using to finance its assets and is used by the Company
to determine an appropriate capital structure.


Working capital

Working Capital is calculated as current assets minus current liabilities
(excluding deferred revenue). Working capital provides is a measure that can be
used to gauge Divestco's ability to meet its current obligations.




Financial Highlights                                                        
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Financial Results (Thousands, Except Per Share Amounts)                     
----------------------------------------------------------------------------
                                       Three Months Ended December 31       
----------------------------------------------------------------------------
                                                              $             
                                     2011       2010     Change   % Change  
----------------------------------------------------------------------------
Accounting base                      IFRS       IFRS                        
----------------------------------------------------------------------------
                                                                            
Revenue                          $ 11,447   $  8,949   $  2,498         28% 
                                                                            
Operating Expenses                  8,248     13,526     (5,278)       -39% 
                                                                            
Other Loss (Income)                  (133)        10       (143)       N/A  
----------------------------------------------------------------------------
                                                                            
EBITDA                              3,332     (4,587)     7,919        N/A  
                                                                            
Finance Costs                         252        724       (472)       -65% 
                                                                            
Depreciation and Amortization       3,823      1,795      2,028        113% 
----------------------------------------------------------------------------
                                                                            
Income (Loss) before Income                                                 
 Taxes                               (743)    (7,106)     6,363        N/A  
                                                                            
Income Tax Expense (Benefit)           25         (1)        26        N/A  
----------------------------------------------------------------------------
                                                                            
Net Income (Loss)                $   (768)  $ (7,105)  $  6,337        N/A  
Per Share - Basic and Diluted       (0.01)     (0.16)      0.15        N/A  
----------------------------------------------------------------------------
                                                                            
Cash Dividends per Class A                                                  
 Share                           $      -   $   0.20   $  (0.20)      -100% 
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
Funds from (used in)                                                        
 Operations                      $  2,908   $ (3,382)  $  6,290        N/A  
Per Share - Basic and Diluted        0.05      (0.08)       N/A        N/A  
----------------------------------------------------------------------------
                                                                            
Shares Outstanding                 66,610     58,938        N/A        N/A  
                                                                            
Weighted Average Shares                                                     
 Outstanding                                                                
Basic and Diluted                  60,575     44,491        N/A        N/A  
----------------------------------------------------------------------------

----------------------------------------------------------------------------
                                          Year Ended December 31            
----------------------------------------------------------------------------
                                                               $            
                                  2011         2010       Change   % Change 
----------------------------------------------------------------------------
Accounting base                   IFRS         IFRS                         
----------------------------------------------------------------------------
                                                                            
Revenue                       $ 40,464  $    40,190  $       274          1%
                                                                            
Operating Expenses              34,485       47,566      (13,081)       -28%
                                                                            
Other Loss (Income)               (160)      41,416      (41,576)       N/A 
----------------------------------------------------------------------------
                                                                            
EBITDA                           6,139      (48,792)      54,931        N/A 
                                                                            
Finance Costs                      759        3,049       (2,290)       -75%
                                                                            
Depreciation and Amortization    9,904       26,642      (16,738)       -63%
----------------------------------------------------------------------------
                                                                            
Income (Loss) before Income                                                 
 Taxes                          (4,524)     (78,483)      73,959        N/A 
                                                                            
Income Tax Expense (Benefit)        86      (12,921)      13,007        N/A 
----------------------------------------------------------------------------
                                                                            
Net Income (Loss)             $ (4,610) $   (65,562) $    60,952        N/A 
Per Share - Basic and Diluted    (0.08)       (1.54)        1.46        N/A 
----------------------------------------------------------------------------
                                                                            
Cash Dividends per Class A                                                  
 Share                        $      -  $      0.20  $     (0.20)      -100%
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
Funds from (used in)                                                        
 Operations                   $  5,745  $    (5,316) $    11,061        N/A 
Per Share - Basic and Diluted     0.10        (0.13)         N/A        N/A 
----------------------------------------------------------------------------
                                                                            
Shares Outstanding              66,610       58,938          N/A        N/A 
                                                                            
Weighted Average Shares                                                     
 Outstanding                                                                
Basic and Diluted               59,797       42,601          N/A        N/A 
----------------------------------------------------------------------------



Segment Review Summary

For the three months ended December 31, 2011 (Thousands)



                   Software                                                 
                        and                            Corporate            
                       Data   Services Seismic Data      & Other      Total 
----------------------------------------------------------------------------
Revenue         $     2,566  $   4,195  $     4,686   $        -  $  11,447 
EBITDA                1,142      1,186        3,966       (2,962)     3,332 
Finance costs             -         (1)          (1)         254        252 
Depreciation                                                                
 and                                                                        
 Amortization           706        294        2,631          192      3,823 
Income (loss)                                                               
 before income                                                              
 taxes                  436        893        1,336       (3,408)      (743)
Gain (loss) on                                                              
 sale of                                                                    
 intangibles                                                                
 and property                                                               
 and equipment            -          -            -          146        146 
----------------------------------------------------------------------------
                                                                            
                                                                            
For the three                                                               
 months ended                                                               
 December 31,                                                               
 2010                                                                       
 (Thousands)                                                                
----------------------------------------------------------------------------
                                                                            
                                                       Corporate            
                   Software   Services         Data      & Other      Total 
----------------------------------------------------------------------------
Revenue         $     2,303  $   3,896  $     2,750   $        -  $   8,949 
EBITDA                  838         93         (363)      (5,155)    (4,587)
Finance costs             -         (1)          (1)         726        724 
Depreciation                                                                
 and                                                                        
 Amortization         1,251        414           47           83      1,795 
Income (loss)                                                               
 before income                                                              
 taxes                 (413)      (320)        (409)      (5,964)    (7,106)
Gain (loss) on                                                              
 sale of                                                                    
 intangibles                                                                
 and property                                                               
 and equipment            -          -            -            -          - 
----------------------------------------------------------------------------
                                                                            
                                                                            
For the year                                                                
 ended December                                                             
 31, 2011                                                                   
 (Thousands)                                                                
----------------------------------------------------------------------------
                                                                            
                                                       Corporate            
                   Software   Services         Data      & Other      Total 
----------------------------------------------------------------------------
Revenue         $     9,414  $  17,266  $    13,784   $        -  $  40,464 
EBITDA                3,541      3,620       10,651      (11,673)     6,139 
Finance costs             -         (3)          (6)         768        759 
Depreciation                                                                
 and                                                                        
 Amortization         3,453      1,098        3,632        1,721      9,904 
Income (loss)                                                               
 before income                                                              
 taxes                   88      2,525        7,025      (14,162)    (4,524)
Gain (loss) on                                                              
 sale of                                                                    
 intangibles                                                                
 and property                                                               
 and equipment            -          -            -          146        146 
----------------------------------------------------------------------------
                                                                            
                                                                            
For the year                                                                
 ended December                                                             
 31, 2010                                                                   
 (Thousands)                                                                
----------------------------------------------------------------------------
                                                                            
                                                       Corporate            
                   Software   Services         Data      & Other      Total 
----------------------------------------------------------------------------
Revenue         $     9,386  $  18,044  $    12,760   $        -  $  40,190 
EBITDA                3,265      2,337      (37,963)     (16,431)   (48,792)
Finance costs             -         (1)          (1)       3,051      3,049 
Depreciation                                                                
 and                                                                        
 Amortization         3,327      1,658       20,940          717     26,642 
Income (loss)                                                               
 before income                                                              
 taxes                  (62)       680      (58,902)     (20,199)   (78,483)
Gain (loss) on                                                              
 sale of                                                                    
 intangibles                                                                
 and property                                                               
 and equipment            -         90      (41,496)           -    (41,406)
----------------------------------------------------------------------------



Divestco Inc. 

Consolidated Statement of Financial Position



                                       December 31  December 31    January 1
----------------------------------------------------------------------------
(Thousands)                                   2011         2010         2010
----------------------------------------------------------------------------
                                                                            
Assets                                                                      
                                                                            
Current Assets                                                              
  Cash                                $      1,547 $      3,696 $        768
  Funds held in trust                           40           15           17
  Accounts receivable                       11,810       11,759       19,267
  Prepaid expenses, supplies and                                            
   deposits                                    235          237          708
  Income taxes receivable                      110          287          391
  Asset held for sale                        2,500            -            -
----------------------------------------------------------------------------
  Total current assets                      16,242       15,994       21,151
                                                                            
Long-term prepaid expense                        -            -          846
Investment in affiliated company               141          100           88
Participation surveys in progress            5,108        1,253        2,186
Property and equipment                       4,147        3,026        2,747
Intangible assets                           18,123       14,611      148,905
----------------------------------------------------------------------------
                                                                            
Total assets                          $     43,761 $     34,984 $    175,923
----------------------------------------------------------------------------
                                                                            
Liabilities and Shareholders' Equity                                        
                                                                            
Current Liabilities                                                         
  Bank indebtedness                   $      3,700 $      2,050 $          -
  Accounts payable and accrued                                              
   liabilities                              10,669        8,248       21,184
  Deferred revenue                           4,561        2,709        3,880
  Current loss on sublease loss                                             
   provision                                   320        1,729            -
  Current portion of long-term debt                                         
   obligations                               1,143          368       26,639
  Current portion of tenant inducement         113            -            -
----------------------------------------------------------------------------
  Total current liabilities                 20,506       15,104       51,703
                                                                            
Deferred rent obligations                    1,124            -            -
Long-term debt obligations                   4,591          188          263
Sublease loss provision                      1,332        1,622            -
Tenant Inducements                           1,397            -            -
Other long-term liabilities                    100            -            -
Convertible debentures                           -            -        3,602
Deferred income taxes                            -            -       12,808
----------------------------------------------------------------------------
Total liabilities                           29,050       16,914       68,376
----------------------------------------------------------------------------
                                                                            
Shareholders' Equity                                                        
  Equity instruments                        76,431       75,253       70,518
  Contributed surplus                        5,663        5,590        5,562
  Equity portion of convertible                                             
   debentures                                    -            -           56
  Retained earnings (deficit)              (67,383)     (62,773)      31,411
----------------------------------------------------------------------------
  Total shareholders' equity                14,711       18,070      107,547
----------------------------------------------------------------------------
                                                                            
Total liabilities and shareholders'                                         
 equity                               $     43,761 $     34,984 $    175,923
----------------------------------------------------------------------------



Divestco Inc. 

Consolidated Statement of Loss and Comprehensive Loss



                       For the three months ended              For the year 
                                      December 31         ended December 31 
----------------------------------------------------------------------------
(Thousands, Except Per                                                      
 Share Amounts -                                                            
 Unaudited)                     2011         2010         2011         2010 
----------------------------------------------------------------------------
                                                                            
Revenue                $      11,447  $     8,949  $    40,464  $    40,190 
----------------------------------------------------------------------------
                                                                            
Operating expenses                                                          
  Salaries and                                                              
   benefits                    4,251        5,120       18,748       21,344 
  General and                                                               
   administrative              3,978        7,207       15,664       22,366 
  Sublease loss                    -        1,222            -        3,329 
  Stock compensation                                                        
   expense                        19          (23)          73          527 
----------------------------------------------------------------------------
  Total operating                                                           
   expenses                    8,248       13,526       34,485       47,566 
----------------------------------------------------------------------------
                                                                            
Finance costs                    252          724          759        3,049 
                                                                            
Depreciation and                                                            
 amortization                  3,823        1,795        9,904       26,642 
                                                                            
Other loss (income)             (133)          10         (160)      41,416 
----------------------------------------------------------------------------
                                                                            
Loss before income                                                          
 taxes                          (743)      (7,106)      (4,524)     (78,483)
----------------------------------------------------------------------------
                                                                            
Income taxes                                                                
  Current (recovery)              25           (1)          86         (113)
  Deferred (reduction)             -            -            -      (12,808)
----------------------------------------------------------------------------
                                  25           (1)          86      (12,921)
----------------------------------------------------------------------------
                                                                            
Net loss and                                                                
 comprehensive loss                                                         
 for the period                 (768)      (7,105) $    (4,610) $   (65,562)
----------------------------------------------------------------------------
                                                                            
Net loss per share                                                          
  Basic and Diluted    $       (0.01) $     (0.16) $     (0.08) $     (1.54)
                                                                            
Weighted average                                                            
 number of shares                                                           
  Basic and Diluted           60,575       44,491       59,797       42,601 
----------------------------------------------------------------------------



Divestco Inc. 

Consolidated Statement of Changes in Equity



                      Number of           Number of                         
(Thousands -             Shares    Share   Warrants                 Equity  
 Unaudited)              Issued  Capital     Issued   Warrants Instruments  
----------------------------------------------------------------------------
                                                                            
                                                                            
Balance at January                                                          
 1, 2010                 41,958 $ 70,518          - $        -  $   70,518  
                                                                            
Net loss and                                                                
 comprehensive loss                                                         
 for the year                                                               
                                                                            
                                                                            
Distribution of                                                             
 Pulse shares to                                                            
 Divestco                                                                   
 shareholders                                                               
Dividends paid                                                              
                                                                            
Transactions with                                                           
 owners, recorded in                                                        
 equity                                                                     
 contributions by                                                           
 and distributions                                                          
 to owners:                                                                 
 Issue of Class A                                                           
  common shares          16,980    2,401     15,825      1,808       4,209  
 Reclassification on                                                        
  exercise of stock                                                         
  options                            555                               555  
 Reclassification on                                                        
  repayment of                                                              
  convertible                                                               
  debentures                                                                
 Share-based payment                                                        
  transactions                                                              
 Share issue costs                   (29)                              (29) 
----------------------------------------------------------------------------
                                                                            
Balance at December                                                         
 31, 2010                58,938 $ 73,445     15,825 $    1,808  $   75,253  
                                                                            
Net loss and                                                                
 comprehensive loss                                                         
 for the year                                                               
 Issue of Class A                                                           
  common shares           7,672    1,133        455         52       1,185  
 Issue on exercise                                                          
  of stock options                                                       -  
 Reclassification on                                                        
  exercise of stock                                                         
  options and                                                               
  incentive-based                                                           
  units                                                                  -  
 Share-based payment                                                        
  transactions                                                              
 Share issue costs                    (7)                               (7) 
----------------------------------------------------------------------------
                                                                            
Balance at December                                                         
 31, 2011                66,610 $ 74,571     16,280 $    1,860  $   76,431  
----------------------------------------------------------------------------

                                              Equity                        
                                          portion of    Retained            
(Thousands -             Contributed     convertible    Earnings      Total 
 Unaudited)                  Surplus      debentures    (Deficit)    Equity 
----------------------------------------------------------------------------
                                                                            
                                                                            
Balance at January                                                          
 1, 2010             $         5,562  $           56  $   31,411  $ 107,547 
                                                                            
Net loss and                                                                
 comprehensive loss                                                         
 for the year                                            (65,562)   (65,562)
                                                                            
                                                                            
Distribution of                                                             
 Pulse shares to                                                            
 Divestco                                                                   
 shareholders                                            (19,999)   (19,999)
Dividends paid                                            (8,623)    (8,623)
                                                                            
Transactions with                                                           
 owners, recorded in                                                        
 equity                                                                     
 contributions by                                                           
 and distributions                                                          
 to owners:                                                                 
 Issue of Class A                                                           
  common shares                                                       4,209 
 Reclassification on                                                        
  exercise of stock                                                         
  options                       (555)                                     - 
 Reclassification on                                                        
  repayment of                                                              
  convertible                                                               
  debentures                      56             (56)                     - 
 Share-based payment                                                        
  transactions                   527                                    527 
 Share issue costs                                                      (29)
----------------------------------------------------------------------------
                                                                            
Balance at December                                                         
 31, 2010            $         5,590  $            -  $  (62,773) $  18,070 
                                                                            
Net loss and                                                                
 comprehensive loss                                                         
 for the year                                             (4,610)    (4,610)
 Issue of Class A                                                           
  common shares                                                       1,185 
 Issue on exercise                                                          
  of stock options                                                        - 
 Reclassification on                                                        
  exercise of stock                                                         
  options and                                                               
  incentive-based                                                           
  units                                                                   - 
 Share-based payment                                                        
  transactions                    73                                     73 
 Share issue costs                                                       (7)
----------------------------------------------------------------------------
                                                                            
Balance at December                                                         
 31, 2011            $         5,663  $            -  $  (67,383) $  14,711 
----------------------------------------------------------------------------



Divestco Inc. 

Consolidated Statement of Cash Flows



                                             For the year ended December 31 
----------------------------------------------------------------------------
(Thousands - Unaudited))                               2011            2010 
----------------------------------------------------------------------------
                                                                            
Cash flows from operating activities                                        
Net loss for the period                     $        (4,610) $      (65,562)
Items not affecting cash:                                                   
Equity investment income                                (12)            (12)
Depreciation and amortization                         9,904          26,642 
Sublease loss                                          (839)          3,329 
Amortization of tenant inducements                     (109)              - 
Deferred rent obligations                               557               - 
Income taxes                                             86         (12,921)
Data exchanges                                            -          (1,775)
Loss on sale of intangibles                               -          41,496 
Gain on sale of property and equipment                 (146)            (90)
Unrealized foreign exchange loss                         (3)              1 
Non-cash employment benefits                             85               - 
Share-based payments                                     73             527 
Finance costs                                           759           3,049 
----------------------------------------------------------------------------
Funds from (used in) operations                       5,745          (5,316)
                                                                            
Changes in non-cash working capital balances           (411)         11,112 
Changes in long-term prepaid expense                      -             238 
Interest paid                                          (593)         (2,403)
Income taxes refunded (paid)                            352              12 
----------------------------------------------------------------------------
Net cash flows from operating activities              5,093           3,643 
----------------------------------------------------------------------------
                                                                            
Cash flows from (used in) financing                                         
 activities                                                                 
Bank indebtedness                                     1,650           2,050 
Issue of common shares (net of related                                      
 costs)                                               1,093           4,180 
Dividends paid                                            -          (8,623)
Repayment of long-term debt obligations                (406)        (28,883)
Repayment of debentures                                   -          (3,750)
Deferred financing costs                               (153)            (50)
Proceeds received from long-term debt                                       
 obligations (net of committed revolver                                     
 repayments)                                          5,500           1,737 
----------------------------------------------------------------------------
Net cash flows from (used in) financing                                     
 activities                                           7,684         (33,339)
----------------------------------------------------------------------------
                                                                            
Cash flows from (used in) investing                                         
 activities                                                                 
Additions to intangible assets                       (9,012)         (2,196)
Decrease (increase) in participation surveys                                
 in progress                                         (3,855)            933 
Purchase of property and equipment                   (5,907)         (1,760)
Additions to tenant inducements                       3,596               - 
Lease incentive                                       1,000               - 
Payments towards sublease loss provision               (922)              - 
Investment in affiliates                                (29)              - 
Proceeds on sale of data libraries                        -          54,434 
Proceeds on sale of property and equipment                -              93 
Deferred development costs                           (2,475)         (2,695)
Changes in non-cash working capital balances          2,678         (16,185)
----------------------------------------------------------------------------
Net cash flows from (used in) investing                                     
 activities                                         (14,926)         32,624 
----------------------------------------------------------------------------
                                                                            
Increase (decrease) in cash                          (2,149)          2,928 
                                                                            
Cash, beginning of year                               3,696             768 
----------------------------------------------------------------------------
                                                                            
Cash, end of year                           $         1,547  $        3,696 
----------------------------------------------------------------------------



Divestco is an exploration services company that provides a comprehensive and
integrated portfolio of data, software, and services to the oil and gas
industry. Through continued commitment to align and bundle products and services
to generate value for customers, Divestco is creating an unparalleled set of
integrated solutions and unique benefits for the marketplace. Divestco's breadth
of data, software and services offers customers the ability to access and
analyze the information required to make business decisions and to optimize
their success in the upstream oil and gas industry. Divestco is headquartered in
Calgary, Alberta, Canada and trades on the TSX Venture Exchange under the symbol
"DVT".


This press release contains forward-looking information related to the Company's
capital expenditures, projected growth, view and outlook towards future oil and
gas prices and market conditions, and demand for its products and services.
Statements that contain words such as "could', "should", "can", "anticipate",
"expect", "believe", "will", "may" and similar expressions and statements
relating to matters that are not historical facts constitute "forward-looking
information" within the meaning ap plicable by Canadian securities legislation.
Although management of the Company believes that the expectations reflected in
such forward-looking information are reasonable, there can be no assurance that
such expectations will prove to have been correct because, should one or more of
the risks materialize, or should the assumptions underlying forward-looking
statements or forward-looking information prove incorrect, actual results may
vary materially from those described in this press release as intended, planned,
anticipated, believed, estimated or expected. Readers should not place undue
reliance on forward-looking statements or forward-looking information. All of
the forward-looking statements and forward- looking information of the Company
contained in this press release are expressly qualified, in their entirety, by
this cautionary statement. Except where required by law, the Company does not
assume any obligation to update these forward-looking statements or
forward-looking information if conditions or opinions should change.


In particular, this press release contains forward-looking statements pertaining
to the following: Company's ability to keep debt and liquidity at acceptable
levels, improve/maintain its working capital position and maintain profitability
in the current economy; availability of external and internal funding for future
operations; relative future competitive position of the Company; nature and
timing of growth; oil and natural gas production levels; planned capital
expenditure programs; Supply and demand for oil and natural gas; future demand
for products/services; commodity prices; impact of Canadian federal and
provincial governmental regulation on the Company; expected levels of operating
costs, finance costs and other costs and expenses; future ability to execute
acquisitions and dispositions of assets or businesses; expectations regarding
the Company's ability to raise capital and to add to seismic data through new
seismic shoots and acquisition of existing seismic data; treatment under tax
laws; and new accounting pronouncements.


These forward-looking statements are based upon assumptions including: future
prices for crude oil and natural gas; future interest rates and future
availability of debt and equity financing will be at levels and costs that allow
the Company to manage, operate and finance its business and develop its software
products and various oil and gas datasets including its seismic data library,
and meet its future obligations; the regulatory framework in respect of
royalties, taxes and environmental matters applicable to the Company and its
customers will not become so onerous on both the Company and its customers as to
preclude the Company and its customers from viably managing, operating and
financing its business and the development of its software and data; and that
the Company will continue to be able to identify, attract and employ qualified
staff and obtain the outside expertise as well as specialized and other
equipment it requires to manage, operate and finance its business and develop
its properties.


These forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the Company's control, including:
general economic, market and business conditions; volatility in market prices
for crude oil and natural gas; ability of Divestco's clients to explore for,
develop and produce oil and gas; availability of financing and capital;
fluctuations in interest rates; demand for the Company's product and services;
weather and climate conditions; competitive actions by other companies;
availability of skilled labour; failure to obtain regulatory approvals in a
timely manner; adverse conditions in the debt and equity markets; and government
actions including changes in environment and other regulation.


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