Mitcham Industries Q1 2011 Earnings Conference Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Veny Aleksandrov - Pritchard Capital - Analyst : Good morning, guys. Great quarter.

Question: Veny Aleksandrov - Pritchard Capital - Analyst : My first question is on the Seamap side, and maybe it's priced on it, but the Polarcus order is down, and you mentioned that there is significant business coming from spare parts and ongoing service and repair work. But can we expect another order like the Polarcus -- from what you have in the pipeline, from what you are working on?

Question: Veny Aleksandrov - Pritchard Capital - Analyst : Yes, can we expect a new big order like the Polarcus?

Question: Veny Aleksandrov - Pritchard Capital - Analyst : But we can see big orders in addition to the spare parts and ongoing service and repair work, right?

Question: Veny Aleksandrov - Pritchard Capital - Analyst : Okay, thank you. And my other -- my next question is the increased bidding activity in eastern Europe that you mentioned in the press release, is this related mainly to the European shelf work, or is it across the board?

Question: Veny Aleksandrov - Pritchard Capital - Analyst : Coming from Bulgaria? .

Question: Veny Aleksandrov - Pritchard Capital - Analyst : Well, thank you so much. I will turn it back to you.

Question: Pierre Conner - Capital One Southcoast, Inc. - Analyst : Good morning, Rob, Billy.

Question: Pierre Conner - Capital One Southcoast, Inc. - Analyst : Let's see, I think you might have spelled it out, but I'll ask it again about the exposure to any of the moratoriums going on now, Billy, with your marine equipment. So any streamers or steering equipment, do you have anything specifically that's working in the Gulf that, just if the moratorium extended and if we were to defer some collection, or something of that nature, or the other deferral we're seeing on, at least it's just leasing at this point is in Norway?

Question: Pierre Conner - Capital One Southcoast, Inc. - Analyst : Okay. So other than potential equipment that leaves or something of that nature, but no direct exposure?

Question: Pierre Conner - Capital One Southcoast, Inc. - Analyst : Okay. Thanks. And Veny asked the question about this eastern European activity. I think if I understood her right, she was asking about, if it was shale activity. So if the answer is it's across the board, what would be your expectation about the potential acquisition for shale acreage in eastern Europe? Is this -- would you -- has it been steady state? Are you looking for an increase? What do you see happening on that subcomponent? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Pierre Conner - Capital One Southcoast, Inc. - Analyst : Okay. That I misunderstood first. That's what I would have thought as well, is that's sort of the next opportunity there. Related to the bidding in South America, I know we've been talking about this for a while, the opportunities are there, if I think about some of the acquisition companies, they are expecting bidding there. Expand a little bit on that, Billy. When you say bidding, to be clear, bidding, the bids are coming to you? Or you're seeing bids requested from the acquisition company and therefore you're expecting some activity?

Question: Pierre Conner - Capital One Southcoast, Inc. - Analyst : Got it. Are you wanting to tell us who was winning them? Never mind.

Question: Pierre Conner - Capital One Southcoast, Inc. - Analyst : No problem. I understand. Thank you. Rob, what can you say about tax rate? I know it's volatile. I know it depends. But as we think about 2011 fiscal year, what can you guide us on that?

Question: Pierre Conner - Capital One Southcoast, Inc. - Analyst : All right, that's fine. Actually, I'm sorry. I'm going to go back to the South America question for Billy. And one thing you opened up the perspective, there were a lot of bids you expect in the next several months. Can you -- could you put any parameters on that in terms of like the size, the acquisition packages, are these -- are you talking about $100 million worth of acquisition work, or multiples of that? Can you get a feel for that, not from your bids, REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Pierre Conner - Capital One Southcoast, Inc. - Analyst : Okay. That's helpful. These would be strictly onshore jobs you're looking at at this time?

Question: Pierre Conner - Capital One Southcoast, Inc. - Analyst : Or that they are being requested of? Okay, great. Gentlemen, thank you so much. I will turn it back.

Question: Terese Fabian - Sidoti & Company - Analyst : Thank you, good morning.

Question: Terese Fabian - Sidoti & Company - Analyst : Good morning. I have a question on the US. We have seen a good level of natural gas and oil drilling here, but not much work in the seismic area, in terms of your leasing revenue. Why is that?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay, and can you talk about Canada this last quarter?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay, and then going east to Russia, what was the dollar amount of your lease revenue there? Can you give that?

Question: Terese Fabian - Sidoti & Company - Analyst : Do you think that market will pick up with gas -- with, pardon me, with oil prices being in the $70 to $80 range, do you see sort of a driver there?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay, good. Okay, and then Southeast Asia, basically Indonesia and Papau New Guinea as far as your new work has generated?

Question: Terese Fabian - Sidoti & Company - Analyst : And is that also a good market for your marine equipment? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Terese Fabian - Sidoti & Company - Analyst : Okay. Just one last question. What kind of equipment are you buying for your lease pool now?

Question: Terese Fabian - Sidoti & Company - Analyst : Or what kind did you buy in the last quarter?

Question: Terese Fabian - Sidoti & Company - Analyst : Okay. Thank you very much.

Question: Bo McKenzie - Global Hunter Securities, LLC - Analyst : Hey, guys. I think a lot of my questions have already been answered, but if you look at the US, there's excesses out there in the market. Are there chances to buy some of the excesses from some of the surveyor companies at discounts moving up throughout the international markets and tighten things up some, or do you think people are just sitting on the equipment waiting for rebound in the US market?

Question: Bo McKenzie - Global Hunter Securities, LLC - Analyst : And most of the companies, I guess, are lot better capitalized, than they were the last time we went through a major decline in seismic.

Question: Bo McKenzie - Global Hunter Securities, LLC - Analyst : So if you look at the US market, and you say, well, we've had an emergence of a shale play virtually every place that there's ever been any kind of traditional oil and gas production. Are there areas that for, whatever set of reasons, just haven't had the surveys done yet, or do you think the ramp is coming so that there's a chance to better utilize what's left over here in the US? That you can see visibly out there, or are we kind of stuck in limbo for a few more years in the US market?

Question: Bo McKenzie - Global Hunter Securities, LLC - Analyst : I don't either. I was just curious. And on that, you just mentioned the DSU 3. Are there any other areas -- niches that are really tight, bore hole, DSU 3, wireless, whatever that, there are chances that, you know, if you start to get a little uptick in the overall seismic crude count, that these higher density surveys, or bore hole seismic or whatever else, are much shorter supply than the overall just standard, you know, single component systems out there? So that there might be something on the horizon?

Question: Bo McKenzie - Global Hunter Securities, LLC - Analyst : All right. Last thing, if you give Veny the management list of the Bulgarian pool, can I get the Argentinian one?

Question: Bo McKenzie - Global Hunter Securities, LLC - Analyst : Where did you get that idea? It's cold done there. Alright, guys. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.