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For Immediate Release |
TSX-V: WEE |
EDMONTON, Alta October 11, 2006/ Wavefront Energy
and Environmental Services Inc., a provider and licensor of proprietary
technology for improved oil recovery and groundwater remediation is pleased to
announce that it has entered into a royalty interest agreement with Greentree
Gas and Oil Ltd. (“Greentree”) for a producing horizontal gas well in South
Walsingham Township, Norfolk County, Ontario.
The horizontal gas well, known as GGOL #32, was the subject of a coil tubing
acid stimulation performed with Schlumberger using Wavefront’s proprietary
stimulation technique. Under the terms of the agreement Wavefront, in return for
providing its patented fluid flow technology on a one time basis and incurring
fifty (50%) percent of all capital costs directly associated to the stimulation
of GGOL #32, will earn a net overriding royalty interest in the production of
petroleum substances of fifty (50%) percent before payout, and thirty (30%)
percent after payout.
Wavefront would also like to provide an update on the development of the first
phase of the Rodney South project with Greentree that commenced in
mid-September. Under the development plan, Greentree expects to drill eight
injection and two horizontal production wells by late November 2006, which will
be added to the current eight vertical and one horizontal producer wells. Over
this time frame the production and injection lines, battery site and injection
facilities will also be completed. To date, Greentree has completed the second
injection well and has moved on to the third injection location.
Under the terms of the Rodney South Agreement with Greentree as announced
February 2, 2006 Wavefront is providing up to $2.25 million in capital
expenditures related to initial field development. In consideration of
Wavefront’s capital investment it shall earn a 70% net overriding royalty
interest in the production of all new and current wells in Rodney south until
payout of Wavefront’s initial $2.25 million capital investment. Subsequent to
payout, cash flow from operations will be allotted 50% to each of Wavefront and
Greentree.
In connection with Letter of Intent to acquire a 100% undivided interest in Top
Gun Sand Pumps and Rentals (“Top Gun”) an arms length privately held
Saskatchewan company, as announced June 6, 2006, the parties agreed to extend
the deadline to close the transaction to December 15, 2006. The extension will
among other things, permit the Company to complete its due diligence process and
enter into a definitive purchase agreement.
In addition, to streamline the corporate structure and reporting of the Company,
Wavefront Energy and Environmental Services Inc. (“Wavefront”) and PE-TECH Inc.,
a wholly-owned subsidiary of Wavefront, recently completed an amalgamation. The
by-laws, articles, share capital and name of the amalgamated company will remain
that of Wavefront..
About Wavefront Energy and Environmental Services Inc.
Wavefront develops, markets, and licenses proprietary technologies in the energy
and environmental sectors. The Company’s proprietary technology for fluid flow
optimization has been demonstrated to increase oil recovery. Within the
environmental sector, the technology accelerates contaminant recovery and
improves in-ground treatment of groundwater contaminants thereby reducing
liabilities and restoring the site to its natural state more rapidly.
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Investor 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 AND ENVIRONMENTAL SERVICES INC.
“D.
D.
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Cautionary Disclaimer – Forward Looking Statements |
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Certain statements contained herein regarding the Company and its operations constitute “forward-looking statements” within the meaning of the United States 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.