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For Immediate Release |
TSX-V: WEE |
EDMONTON, Alta June 6, 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 is has entered into a Letter of Intent to acquire a 100% undivided
interest (the “Acquisition”) in Top Gun Sand Pumps and Rentals (“Top Gun”), an
arms length privately held Saskatchewan company.
Top Gun has been in operation since 1995 as an oil service company in the heavy
oil industry, operating in western Canada. Top Gun offers rentals and sales of
sand pumps and associated well bore pumping and cleaning equipment. Top Gun also
possesses patents (and has patents pending) related to it’s Continuous Sand
Extraction with Surge (“CSES”) tools that permit large volumes of sand to be
produced from heavy oil production wells where in many instances conventional
pumping equipment fail. During the pumping process the CSES tools can, on the
down stroke, inject liquids into the perforations by incorporating the Company’s
DeepWaveSM
technology, thereby allowing for longer-term sustainable production.
Total consideration for the Acquisition will not exceed One Million Two Hundred
Thousand Dollars (Cdn $1,200,000) (the “Purchase Price”). Of the total Purchase
Price, the Corporation will issue common shares in its capital, such value equal
to fifty percent (50%) of the Purchase Price (i.e., up to CDN$600,000), based on
the closing share price of Wavefront Energy’s listed common shares on the TSX
Venture Exchange on the trading day prior to the execution date of the Purchase
Agreement(s). In addition, Top Gun’s principals have agreed to have all
shareholder advances, loans, debts, interest, etc. to be restructured as
unsecured and non-interest bearing, to be repaid over three (3) years.
The Shares to be issued by Wavefront will be subject to the required hold
periods, escrow restrictions, earn-out profits or other restriction that the TSX
Venture Exchange may impose; however, at a minimum, the principals of Top Gun
have agreed that all shares issued in connection with the Acquisition will be
subject to a three year time release escrow, commencing from the date of final
approval by the Exchange. No finders’ fee will be paid in connection with this
transaction.
Wavefront President and CEO Brett Davidson commented, “We are opening another
chapter in our business plan to grow the Company and expand its technology
offering. The acquisition of Top Gun fits well within the overall strategy of
adding intellectual property that augments the Company’s DeepWaveSM
process. Top Gun’s CSES technology has been demonstrated to increase production
in heavy oil wells producing large volumes of sand.
Mr. Davidson further commented, “Management has been following Top Gun’s
progress and is impressed with the penetration rate of their technology in the
Canadian Heavy Oil Market. With an established track record of performance,
management believes Top Gun is poised for considerable growth and the Company
will look to expand operations as well as pursue licensing opportunities to gain
royalty revenue. As the Company progresses in its business plan, we continue to
evaluate the acquisition of oil field, production technologies, and companies
that present opportunity to build shareholder value.”
Top Gun President Tyler Scott stated, “We are very excited to become a member of
the Wavefront group of companies. As an agent representing the Company over the
past two years, we have seen first hand the results the DeepWaveSM
process has offered our customer. In our opinion, DeepWaveSM
is extremely valuable to the world energy markets. We recognize the
technological strengths of the Company and maintain that working within the
organization is the most effective approach to further Top Gun’s technology
offering and market potential.”
Completion of the Acquisition is subject to a number of conditions, including
but not limited to, Exchange acceptance, further due diligence by Wavefront, a
definitive purchase agreement and Wavefront board approval. There can be no
assurances that the transaction will be completed as proposed or at all.
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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Cautionary Disclaimer – Forward
Looking Statements |
THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES THE CONTENTS OF THIS NEWS RELEASE WHICH WAS PREPARED SOLELY AT THE DISCRETION OF MANAGEMENT.