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| PRESS RELEASE |
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WAVEFRONT TECHNOLOGY SOLUTIONS INC. |
For Immediate Release: |
Primawave Flourishes In
First Danish Project
Announces First Quarter Results
EDMONTON,
Alta., January 28, 2010/ 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 the
first application of Primawave in Denmark in a mixed
commercial and residential setting.
Based on results reported by Ejlskov A/S, the
consultant managing the project, Primawave may have
substantial impact on the groundwater remediation
plan by maximizing the radius of influence and
distribution of the injected fluids. The site has
extremely limited access due to the position of many
buildings and buried utilities. Application of
Primawave during injection will facilitate fewer
injection points while minimizing potential exposure
of the public to both the industrial contaminant and
remedial fluid. The next step for the site is to
incorporate Primawave into the full-scale remedial
design to clean-up an industrial solvent impacting
groundwater quality.
“Wavefront is pleased to have completed this project
in conjunction with our newest licensed Primawave
provider Ejlskov A/S,” said Wavefront President and
CEO Brett Davidson. “The emergence of the European
environmental market represents a considerable
opportunity for Wavefront to expand the network of
accredited Primawave users. We look forward to
successfully completing the Copenhagen project and
additional projects in Europe to demonstrate the
efficiency and cost savings Primawave brings to the
user community.”
Wavefront also announces its financial and operating
results for the first quarter ended November 30,
2009.
Revenues for this period were $576,327, an increase
of $145,372 from the revenues recognized in the
corresponding period. Service revenue and royalties
totaled $501,684 compared to the $240,102 for the
comparative period. The increase in revenues is
primarily a result of a return of activity to the
service, tubing pump and bailer product lines in
Alberta and continued growth in the
commercialization of Powerwave and Primawave
technologies.
The basic and diluted net loss for the period ended
November 30, 2009 was $1,318,487 ($0.02 per share),
compared to $2,694,935 ($0.04 per share) in 2008.
The Corporation’s expenses through the three month
period were $1,894,814 compared to $3,125,890 for
the comparative period in 2008.
Total assets decreased by $916,991 to $23,560,609
from the prior year end. This decrease was primarily
due to a decrease of $1,356,243 in cash that was
used to fund operations, and fund the manufacturing
of Powerwave and Primawave systems.
As at November 30, 2009, the Corporation had working
capital of $14,206,007. The Corporation believes
that its working capital position will decline
despite having a significant increase in the number
of Powerwave contracts in-hand as Wavefront cannot
control or dictate the installation schedules.
Wavefront cannot commence billing of Powerwave
clients that have executed contracts in-hand until
the Powerwave systems are installed and operational.
During the first quarter of fiscal 2010, Wavefront
continued to make great strides with all product
lines that should broaden the Corporation’s
opportunities around the globe. Operational
highlights of the first quarter 2010 included:
- Powerwave deployment with a major oil producer in Alaska. This Powerwave program represents a significant opportunity as billions of barrels of undeveloped reserves remain stranded in the many operating fields in the state. A successful program outcome may provide additional deployment of multiple Powerwave systems.
- Wavefront entered into a non-binding Letter of Intent 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. The Pemex relationship may bring substantial rewards as successful implementation of Powerwave may result in long-term contracts for both single well stimulations and waterflood applications.
- Continued positive results in Wavefront’s longest running Powerwave project in Eastern Alberta. After a 24-month operational period, Powerwave provided a 168 per cent increase in oil production above what would have been produced based on the natural production decline rate established for the three water injection patterns where Powerwave is deployed. Oil decline rate fell 68 per cent, decreasing from a pre-Powerwave rate of 3.4 per cent per month to 1.1 per cent per month with Powerwave. Contributing to the fall in oil decline rate was an increase in incremental oil cut (percentage of oil per barrel of produced fluid). Oil cut increased from a pre-Powerwave value of 1.05 per cent to 2.54 per cent with Powerwave.
- Additional Powerwave opportunities were secured with new clients in Wyoming, Texas, and Alberta.
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 November 30, 2009, which have been filed on SEDAR..
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 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.
THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES THE CONTENTS OF THIS RELEASE WHICH WAS PREPARED SOLELY AT THE DISCRETION OF MANAGEMENT