FOR IMMEDIATE RELEASE: April 30, 2007
WEE Announces Second Quarter Results -
Primawave™ Process Used at Vandenberg
Air Force Base
EDMONTON, Alta., April 30,
2007/ Wavefront Energy and Environmental Services Inc.
(“Wavefront”), a leader in technology development and implementation
for improved oil recovery and optimized groundwater remediation
announces its financial and operating results for the second quarter
ended February 28, 2007.
Revenue for the three months ended February 28, 2007 was $357,877
contrasted to revenue of $92,548 for last year. The increase is
principally a result of the increase in interest income generated
from guaranteed investment certificates that resulted from recent
private placements.
During the current reporting period the Wavefront has focused its
resources on Powerwave™ showcasing the process in oilfields where it
has acquired mineral rights. Approximately 14% of revenues for the
quarter were generated from activities associated with Powerwave,
and 29% of revenue was generated from activities related to the
activities and production of Rogers County, Oklahoma and with
Greentree Gas and Oil Ltd., Farm-in.
Wavefront’s consolidated net loss for the three months ended
February 28, 2007 was $1,025,658 ($0.02 per share) contrasted to a
consolidated net loss for the comparative period ended February 28,
2006 of $573,273 ($0.02 per share. The increase in net losses for
the three month period is primarily due to increases in operating
expenses of $1,239,901 from the $637,191 incurred for the same
comparative period (three months ended February 28, 2006).
Wage expenses increased by $396,375, travel and promotion of
$23,698, professional fees of $74,039, office expenses by $40,066,
and consulting fees of $25,653. The aforementioned variances in
expenses reflect Wavefront’s inclusion of the fair market value of
stock options as a wage expense, involvement in developing the
Rogers County oilfield to showcase Powerwave, and further due
diligence related to the acquisition of additional oil field leases.
For the three months ended February 28, 2007, total assets decreased
by $1,259,763 compared to $17,444,633 at August 31, 2006, which was
principally due to supporting activities associated with the
commercialization of Powerwave. The activities associated with
Rogers County and Greentree Gas and Oil Ltd. has an affect of
decreasing cash with a corresponding increase in long-term assets by
$3,251,919.
Efforts in fiscal 2007 will continue to focus on bringing Wavefront
to a positive cash flow position. We will endeavor to accomplish
this through (1) increased cash flow from production operations in
Rogers County and with Greentree Gas and Oil Ltd.; (2) increased
licensing revenues in both the oil and environmental sector; (3)
further market exposure and increased revenue for Wavefront Sand
Pumps and Rentals; (4) acquiring additional oil field leases, or
joint venturing with proactive companies to implement Powerwave; (5)
implement Powerwave waterflood projects with mainstream producers;
and, (5) close the acquisition of ICI Solutions Inc.
The above financial highlights should be read in conjunction with
the unaudited consolidated financial statements and management
discussion and analysis of results for Wavefront’s most recently
completed quarter, ended February 28, 2007, which have been filed of
SEDAR.
Wavefront would also like to announce that it has commenced an
installation of its Primawave Process at Vandenberg Air Force Base
in California. The objective of the project is to use Primawave,
specifically the Hornet tool, to achieve pin-point placement, and
more uniform distribution of a remedial fluid into a tight sand
formation exhibiting extremely low flow characteristics. Previous
attempts to pin-point inject the remedial fluid using other
injection approaches met with limited or no success. Based on
previous positive results of Primawave where fluids have been
injected with pin-point accuracy, up to five times faster and with
ten times the distribution distance compared to traditional
injection approaches, the client has systematically identified the
process as the only alternative to successfully introduce the
remedial fluids into the subsurface to meet its targeted goals.
Wavefront President and CEO Brett Davidson commented, “The
Vandenberg site is one of, if not the most difficult, geological
settings that Primawave has been utilized on. Although we hold great
confidence in the Hornet tool, the uncertainty of the overall flow
characteristics will present a unique challenge to which other
technologies have already met with disappointment. If we can achieve
a measure of success where others have failed or were at best
marginal, Primawave will have clearly distinguished itself from all
other injection approaches, which should result in further market
penetration and licensing revenue.”
About Wavefront Energy and Environmental
Services Inc.
Wavefront is a technology-based company with a focused, strategic
plan to leverage the value of our intellectual property in order to
maximize oil production recovery operations, as well as provide
additional solutions for environmental applications.
For further information please contact:
Brad Paterson, CFO and Director
780-486-2222 ext. 224 Tel
investor.info@onthewavefront.com
On behalf of the Board Of Directors,
Wavefront Energy & Environmental Services Inc.
“D. Brad Paterson” (signed)
D. Brad Paterson, CFO and
Director
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