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| PRESS RELEASE |
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WAVEFRONT TECHNOLOGY SOLUTIONS INC. |
For Immediate Release: |
Pemex Moves To Broadly Adopt Powerwave - Cautionary
Disclaimer – 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
Wavefront And Pemex Execute Letter Of Intent For Multiple Field Programs
EDMONTON, Alta Oct 27, 2009/ Wavefront Technology Solutions Inc.
(“Wavefront”), a world leader in providing innovative solutions for
increasing oil field production and enhancing the treatment of contaminated
groundwater, is pleased to announce that it has entered into a non-binding
Letter of Intent (“LOI”) with the Subdireccion Tecnica de Explotation, a
department of Pemex PEP (“Pemex”) for the use of Powerwave in both single
well stimulation and enhanced waterflood applications. Petroleos Mexicanos,
or PEMEX, is the largest enterprise in Mexico and Latin America ranks 11th
in the top 50 crude oil producers worldwide.
Under the LOI, Pemex will initially carry out 13 single well stimulations
and 36 Powerwave-driven waterfloods. The decision on specific Powerwave
installations will be solely determined by Wavefront based on the Company’s
selection criteria. Definitive agreements on an asset-by-asset basis in two
operating regions are being drafted for execution.
The objective for single well stimulations is to re-establish oil production
beyond current rates. In on-going discussion with Pemex, they have indicated
to Wavefront that, in the event of successful well stimulations, Wavefront
could be awarded a 5-year open contract without tender to supply Powerwave
for well stimulation work. Wavefront cautions that no such contracts have
yet been agreed to or entered into. Licensing fees for Powerwave well
stimulations in a 5-year open contract are set at US $4,000 per day per
well.
The objectives for Powerwave-driven waterfloods are to slow the rate of
production decline and provide increased oil production. In on-going
discussion with Pemex, they have indicated to Wavefront that, in the event
of successful Powerwave-driven waterfloods, Wavefront could be awarded a
10-year open contract without tender to supply Powerwave for enhanced fluid
injection. Wavefront cautions that no such contracts have yet been agreed to
or entered into. Licensing fees for Powerwave-driven waterfloods in a
10-year open contract are set at US $6,000 per month per injection well.
“Wavefront is very pleased to have entered into this Letter of Intent with
Pemex and we look forward to initiating Powerwave in the near term”, said
Wavefront President and CEO Brett Davidson. “This is a tremendous
opportunity for Wavefront as it moves Powerwave into a new market on a large
scale. The momentum we are experiencing is a testament to the production
benefits Powerwave continues to bring to a host of clients. Wavefront
anticipates Powerwave will bring major rewards to Pemex as it works to stem
the tide of production decline in many of its operating assets.”.
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
Certain statements contained herein regarding Wavefront and its operations
constitute “forward-looking statements” within the meaning of Canadian
securities laws and the United States Private Securities Litigation Reform
Act of 1995. All statements that are not historical facts, including without
limitation statements regarding future estimates, plans, objectives,
assumptions or expectations or future performance, are “forward-looking
statements”. In some cases, forward-looking statements can be identified by
terminology such as ‘‘may’’, ‘‘will’’, ‘‘should’’, ‘‘expect’’, ‘‘plan’’,
‘‘anticipate’’, ‘‘believe’’, ‘‘estimate’’, ‘‘predict’’, ‘‘potential’’,
‘‘continue’’ or the negative of these terms or other comparable terminology.
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. Such factors
include fluctuations in the acceptance rates of Wavefront’s Powerwave and
Primawave Processes, demand for products and services, fluctuations in the
market for oil and gas related products and services, the ability of
Wavefront to attract and maintain key personnel, technology changes, global
political and economic conditions, and other factors that were described in
further detail in Wavefront’s continuous disclosure filings, available on
SEDAR at www.sedar.com. Wavefront expressly disclaims any obligation to
up-date any “forward-looking statements”, other than as required by law.