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For Immediate Release |
TSX-V: WEE |
EDMONTON, Alta May 24, 2006/ Wavefront Energy and Environmental Services
Inc., a provider and licensor of its proprietary DeepWaveSM
(http://onthewavefront.com/dw_what-is-deep-wave.htm)
Technology for improved oil recovery and groundwater remediation is pleased to
announce that Halliburton Energy Services Group has completed another successful
royalty bearing DeepWaveSM
application in California. Specifically, a coiled tubing (CT) tool deployed as a
main component of the DeepWaveSM
Stimulation Service was utilized for the placement of a treatment chemical with
a major oil producer. Halliburton reports that the CT tool, which was developed
through a Collaboration Agreement between the Company and Halliburton, performed
as predicted.
The application was a combination research project / commercial application set
out to validate the capabilities of the tool as well as differentiate it from
other CT options for injecting fluids. The well was configured to allow for real
time downhole monitoring of the injection stream to confirm the ability of the
DeepWaveSM
tool to focus injectivity at the point of discharge from the tool. The real time
results verified that the tool effectively focused injectivity across the entire
production zone including a 200 foot zone that has not previously indicated the
uptake of treatment fluids by other CT options.
Wavefront Vice President John Warren stated, “The confirmation that the DeepWaveSM
tool provides focused injectivity without the need for isolation assemblies or
other diversion techniques will enable many operators to treat longer intervals
with less concern of not knowing where the treatment fluid leaks off. This
positive result definitively separates the DeepWaveSM
Stimulation Service from other CT options for injecting fluids and will further
expand the global market for the technology.”
Wavefront is also announcing that as expected Applied Seismic Research
Corporation (“ASR”) of Plano, Texas has filed counterclaims in the lawsuit
Wavefront initiated in the United States District Court for the Eastern District
of Texas, naming ASR as Defendant.
In the original complaint announced February 14, 2006 Wavefront alleged that ASR
tortiously interfered with the Company’s existing and prospective business
relationships with Occidental of Elk Hills, Inc. (“Occidental”) relating to a
pilot waterflood project the Company was about to commence with Occidental.
Wavefront alleged that ASR made bad faith infringement statements to Occidental
concerning Wavefront’s technology and ASR’s patents, one of which had expired,
and that ASR’s tortious interference caused Occidental to cancel the pilot
study, resulting in monetary harm to Wavefront. Furthermore, Wavefront alleged
that ASR engaged in unfair competition in violation of the Lanham Act and Texas
common law.
Wavefront is seeking unspecified compensatory and punitive damages, that ASR’s
patents be declared invalid, unenforceable and/or not infringed by Wavefront’s
tools, that Wavefront be granted permanent injunctive relief enjoining ASR from
further acts of interference and unfair competition, that Wavefront be granted
pre-judgment and post judgment interest on the damages caused by ASR, reasonable
attorneys’ fees, and such other and further relief as the Court may deem just
and proper.
In their counterclaims ASR accuses Wavefront of patent infringement and
inducement of infringement, for tortious interference with business relations,
tortious interference with prospective business relations, and unfair
competition. ASR seeks damages, increased damages, punitive damages, attorney
fees, costs, injunction, and all other remedies to which ASR is entitled.
A court imposed mediation date is set for June 27, 2006 in Tyler, Texas to
explore the possibility of resolving the dispute without going to trial.
Wavefront President and CEO Brett Davidson stated, “The Company and its legal
advisors anticipated this action by ASR given a non-action would only lend
support to the allegations outlined in our original complaint. Management
remains mystified as to how ASR can contend infringement or inducement of
infringement given it is contrary to ASR’s own statements. In a letter received
by Wavefront on June 3, 2005 William Stern, the President of ASR wrote ‘…our
patents do not overlap.’”
Mr. Davidson reiterates an earlier statement, “ASR says its closed borehole
technology attempts to generate a “shock” or seismic waves to induce oil flow.
For greater clarity, ASR’s tools are deployed in closed boreholes that have no
fluid connectivity to the reservoir. It is not the objective of the DeepWaveSM
process to generate seismic waves rather, the technology is purposely designed
to move liquids, improve injection rates, and improve the distribution of
injected liquids in the reservoir. Downhole tools related to DeepWaveSM
are deployed in injection wells having fluid connectivity to the reservoir
through perforations, screens, liners, or open-hole completions.”
Mr. Davidson went on to note, “Management remains optimistic of a favorable
outcome and we are continuing to execute our business plan with prospective
clients and joint venture partners.”
About Wavefront Energy and Environmental Services Inc.
Wavefront develops, markets, and licenses proprietary technologies in the energy
and environmental sectors. The Company’s patented DeepWaveSM
Technology is a proven and verified fluid flow optimization technique. Within
the energy sector the Company’s strategy is to license the technology to service
providers, provide site licenses to oil producers, and to acquire or earn
working interests in mature oilfields. In the environmental sector, DeepWaveSM
is licensed to service providers who implement the technology to reduce
long-term liabilities associated with contaminated sites.
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For further information please
contact: |
D. Brad Paterson, CFO 780-486-2222 x224 Tel investor.info@onthewavefront.com |
ON BEHALF OF THE BOARD OF DIRECTORS
WAVEFRONT ENERGY AND ENVIRONMENTAL SERVICES INC.
“D.
D.
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Looking Statements |
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