SAExploration Files Lawsuit Against Former Auditor PKF Texas for Egregious Negligence

PKF allowed years of unchecked criminal fraud

HOUSTON, Jan. 17, 2023 /PRNewswire/ -- SAExploration Holdings, Inc. ("SAE" or the "Company") announced today that it has sued its former auditor, PKF Texas ("PKF"), alleging egregious professional negligence and audit malpractice that caused nearly $50 million of harm to SAE and its shareholders and seeking actual and punitive damages.

According to the lawsuit filed today, "if PKF had lived up to what was expected of it under the Generally Accepted Auditing Standards, it would have spared the Company and its shareholders from tens of millions of dollars in harm. Instead, PKF collected its audit fees like rent and never delivered the services expected of even a minimally competent auditor."

In 2019, SAE (then publicly traded on the NASDAQ) disclosed an SEC investigation and the discovery of significant accounting irregularities, which ultimately led to the guilty pleas of a number of former SAE executives, civil charges by the SEC, and ultimately a complete management rebuild. PKF served as SAE's auditor between 2015 and 2021 and had signed off on SAE's financials year over year, turning a blind eye to improprieties that would have uncovered the years-long criminality of certain Company insiders.

"It's disappointing that PKF has not acknowledged their role, but we are committed to holding them accountable," said SAE CEO Forrest Burkholder. "People are always asking, where were the auditors?" added Mr. Burkholder. "We think that's a very good question."

A copy of SAE's lawsuit is available at https://saexploration.com/saexploration-holdings-inc-v-pannell-kerr-forster-of-texas-pc-original-petition/

SAE is an international oilfield services company offering a full range of vertically-integrated seismic data acquisition and logistical support services throughout North America, South America, Asia Pacific, Africa and the Middle East. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones and offshore in depths reaching 3,000 meters, SAE also provides in-house logistical support services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental assessment and reclamation, and community relations. SAE operates crews around the world, performing major projects for its blue-chip customer base, which includes major integrated oil companies, national oil companies and large independent oil and gas exploration companies. With its global headquarters in Houston, Texas, SAE supports its operations through a multi-national presence throughout the world. For more information, please visit SAE's website at www.saexploration.com.

Media Contact:
Madison Mann, CKP
832-930-4065x120 / [email protected]

SOURCE SAExploration Holdings, Inc.