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| PRESS RELEASE |
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WAVEFRONT ENERGY & ENVIRONMENTAL SERVICES
INC. |
For Immediate Release: |
WEE Announces Third Quarter Results
Acquires Oilfield Property Rights in Young County Texas
EDMONTON, Alta., July 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 third quarter ended May 31,
2007.
Revenues for the nine months ended May 31, 2007 were $1,069,415, an increase
of $600,741 from the revenue recognized in the corresponding period of May
31, 2006 of $468,674. The increase is a result of Wavefront’s recognition of
the balance of the minimum royalty revenue for the year from Halliburton
($269,091), revenue generated from the recently acquired Wavefront Sand
Pumps & Rentals Ltd. ($353,592), and interest revenue ($275,392).
Approximately 27% of revenues for the quarter were generated from activities
associated with the Powerwave technology, 14% of revenue was generated from
activities related to the activities and production of Rogers County,
Oklahoma and with Greentree Gas & Oil Ltd. (“Greentree”) “Farm-in”, and 33%
(or approximately $353,592) of revenues from Wavefront Sand Pumps & Rentals
Ltd.
During the reporting period Wavefront continued to focus its resources on
Powerwave, and showcasing it in oilfields where Wavefront has mineral
rights. The recently announced American Refining Group and EnCana projects
are the direct outcome of the results generated from Powerwave and the
longevity of the Dragonfly systems in the Rogers County venture.
During the nine month reporting period Wavefront invested $1,510,262 in
property, plant and equipment and $1,597,857 in the Greentree Gas & Oil
farm-in venture. Wavefront is also pleased to announce that it has recently
installed five Powerwave Dragonfly tool systems in Greentree’s South Rodney
project. An additional three Powerwave Mantis tool systems will be installed
shortly.
The net loss for the nine months ended May 31, 2007 was $3,115,549 ($0.07
per share), compared to $1,726,921 ($0.05 per share) in 2006. The increased
losses were a result of focusing resources on oilfield ventures to showcase
Powerwave which is affecting short-term profits in favour of long-term
licensing and oil production revenue. Additionally, the losses were impacted
by $1,272,096 in non-operating expenses, in particular stock-based
compensation.
The Corporation’s expenses from operations through the nine month period
were $2,912,868, an increase from the $1,292,185 incurred for the same
period of last year. The operating expense increase was primarily from an
increase in general and administrative of $849,581, selling, marketing and
travel of $196,252, and listing and public company fees of $57,205. The
general and administrative expenses increased primarily due to increases in
wages expense of $504,165, office expense of $126,505, consulting fees of
$111,697, and professional fees of $74,392.
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
May 31, 2007, which have been filed on SEDAR.
Wavefront would also like to announce that it recently acquired mineral
rights to 1,679 acres in Young County (the “Leases”), Texas for total
consideration of US $167,900. The Leases provide Wavefront with a Net
Revenue Interest (“NRI”) of 80% with oil and associated gas production
coming from the Strawn and Caddo formations respectively. Wavefront’s
initial development plan for Young County will focus on the Caddo formation.
At this time Wavefront is assessing credible operating partner(s) to fully
develop the Young County opportunity. However, initial Caddo development by
Wavefront is anticipated in fiscal year 2008.
Wavefront President and CEO Brett Davidson commented, “We continue to
achieve meaningful measures in positioning Wavefront to extract the maximum
value from its core intellectual property Powerwave and Primawave. The
recent programs we have entered into with EnCana and ARG Resources coupled
with the Young County Leases fully support Wavefront’s ventures to showcase
Powerwave. Wavefront’s demonstrated ability to positively affect water
injection is very compelling and looked upon in a very positive light by
those companies we are currently engaged with. In addition to increasing
interest in Powerwave we have seen consistent performance in sales from our
newest entity Wavefront Sand Pumps and Rentals.”
Mr. Davidson further stated, “Young County was a tremendous opportunity for
Wavefront to acquire an under-developed oil and gas asset. Although there
are always risks associated with oil and gas development we anticipate that
with the appropriate production plan and the right strategic operating
partner Young County could prove to be a very positive revenue generator for
Wavefront.”
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:
D.
Brad Paterson, CFO
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
Cautionary Disclaimer –
Forward Looking Statements
Certain statements contained herein regarding the Company and its operations
constitute “forward-looking statements” within the meaning of the United
Sates Private Securities Litigation Reform Act of 1995. All statements that
are not historical facts, including without limitation statements regarding
future estimates, plan, objectives, assumptions or expectations or future
performance, are “forward-looking statements”. We caution that such
“forward-looking statements” involve known and unknown risks and
uncertainties that could cause actual results and future events to differ
materially from those anticipated in such statements. The Company expressly
disclaims any obligation to up-date any “forward-looking statements”.
THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES THE CONTENTS OF THIS RELEASE WHICH WAS PREPARED SOLELY AT THE DISCRETION OF MANAGEMENT
| © 2007 Wavefront Energy & Environmental Services Inc. All
rights reserved. Powerwave™ and Primawave™ are registered trademarks of
Wavefront Energy and Environmental Services, Inc. |
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