FOR IMMEDIATE RELEASE: March 20, 2007
Operations Update For Rogers County, Oklahoma
EDMONTON, March 20, 2007 /
Wavefront Energy and Environmental Services Inc., a leader in
technology development and implementation for improved oil recovery
and optimized groundwater remediation, is pleased to announce that
production improvements have been realized in Rogers County,
Oklahoma. At this time, existing production operations are confined
to 25% of the total area available for development (340-acres of
1360-acres).
The US Department of Energy’s National Energy Technology Laboratory
reports that approximately 80% of the roughly 500,000 producing
wells in the United States can be classified as stripper wells,
producing about 19% of US domestic oil production. Development of
the mature leases that Wavefront acquired or has a working interest
in commenced in 1902 and is within 100 miles of Nellie Johnstone No.
1, Oklahoma's first commercial oil well, completed in April 1897.
Oil production from the leases is gained from stripper wells, where
oil production is less than 10 barrels per day by definition.
However, the majority of oil wells in Wavefront’s Oklahoma
operations are well past the “stripper well” definition, falling
into the marginal well category as they produce a minimum of 95%
water per day as the total percentage of production.
The primary focus of Wavefront's Oklahoma operations is to validate
the efficacy of the Powerwave Process, showcasing that mature oil
fields, such as those defined as “stripper” or “marginal” well
conditions, can be given new life. During the past seven months,
Wavefront has concentrated extensively on a substantial
rehabilitation program of the leases, including infrastructure and
wells, to bring about industry-acceptable health, safety, and
environmental standards. During this period, Wavefront also put into
action a development plan that included the drilling of new water
injection wells for Powerwave, specifically the Dragonfly tools, as
well as new production wells placed within the influence of the
Powerwave installations.
Wavefront’s actions in Oklahoma are proving positive in 25% of the
acreage currently under production. Prior to Wavefront assuming
operation of the leases, daily production was negligible or
non-existent. Over the past 30-days production results for the
largest lease development consisting of 160-acres exceeded
previously recorded monthly production totals dating back to 1979 by
a factor of 3.3. For the 30-day period ending March 15th oil
production in the 160-acres area was 548 bbls (18.3 bbls/day) versus
a previous production high of 167 bbls (5.6 bbls/day) recorded in
1980 and 1987 respectively. For the same 30-day period overall
production on 340-acres of developed leases (25% of total acreage)
was 734 bbls (24.5 bbls /day). Average daily production for the same
340-acres over five consecutive days ending March 15th was 41 bbls
of oil with a high of 46 bbls and a low of 33 bbls. The continued
production improvements gained in Oklahoma demonstrate Wavefront's
ability to boost recovery in mature oil fields.
The Powerwave Process continues to provide consistent results with
respect to overall improvements in the rate of water injection
versus standard injection practices at the same relative supply
pressure. The minimum two-fold increase in injection rate previously
reported has been independently verified by engineers with a top
five oil producer who continue to evaluate a strategy for Powerwave
implementation in production operations in two geographical regions.
Wavefront President and CEO Brett Davidson stated, “Revitalizing
mature assets such as Rogers County can lead to large increases in
the ultimate recovery of the field. We are in the infancy of
rejuvenated production and given one of the harshest winters
experienced in Oklahoma in recent history are pleased with the
initial effect of our restoration efforts, development plan, and
establishing the Powerwave Process. These early results showcase how
effective technology can be; particularly in mature assets and we
look to future production gains as we further exploit the current
340-acres and evaluate future development plans for the remaining
acreage.”
Mr. Davidson reiterated an earlier comment, “For a production
company the ability to inject larger volumes of water into a
producing formation is an important operational objective as
processing rate directly affects production revenue. Volumetrically,
where input equals output, increasing input by a factor of two also
increases output by a factor of two. If the proportion of water and
oil of the output remains constant or tends toward more oil, the
production company would recognize greater production revenue.
Wavefront’s Oklahoma injectivity results confirm how important of an
influence a process such as Powerwave can have on secondary oil
recovery strategies.”
Mr. Davidson further stated, “The objective of Wavefront's Oklahoma
operations is to showcase, under difficult mature reservoir
conditions, the Powerwave Process. The data we have gathered has
drawn attention from a range of companies on how Powerwave can be
best implemented to meet their specific operational objectives. We
fully anticipate this interest to evolve into commercial projects.
From a technology demonstration standpoint we are encouraged that
the objectives we had set out in Oklahoma are positive and looking
at the shear number of stripper wells in the United States, our
technology offerings will lead to further commercial opportunities
in America’s oil heartland.”
Wavefront, in partnership with Boulder Oil LLC, are jointly
developing 780-acres where Wavefront is the operator and has a 40%
working interest. Under the Joint Operating Agreement, Boulder
exercised its non-participation rights related to oil development in
the active 340-acres. As such, Wavefront will receive all production
revenues from production wells associated with the costs incurred
till such time that Wavefront is repaid 200% of those costs after
which, production revenues will revert back to the working interest
proportions. As at November 30, 2006, amounts due to Wavefront by
Boulder totaled $1,592,774 and are included in non-participation
amounts due. Wavefront also holds a 100% working interest in
580-acres of shut-in production in Rogers County.
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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