EDMONTON, ALBERTA--(Marketwire - Nov. 7, 2012) - Wavefront Technology Solutions Inc. (Wavefront or the Corporation) (TSX VENTURE:WEE) (OTCQX:WFTSF) the global leader in fluid injection optimization for improved performance and profitability in the oil and gas and environmental sectors is pleased to announce that Roger Kazanowski has re-joined Wavefront's Board of Directors. Mr. Kazanowski brings a unique skill set to the Wavefront Board with a proven track record for building companies from product infancy to corporate divestiture, marketing as well as operations.
Mr. Kazanowski is a well-established businessman with an extensive background in business entrepreneurship. He began his career as an Automotive Designer at the Ford Motor Company but quickly chose a path of developing his own companies. He is the founder of Cambridge Products, Village Art Studios, Business Television Video, Burka Operating Companies and Airman Pneumatic Controls. Mr. Kazanowski has also been actively involved in the development of companies such as Triant Technologies, Integrated Business Systems, Buz.Fm, Premier Exhibitions and Wavefront. Mr. Kazanowski is actively involved in the Angel Investing Network, supports numerous non-profit organizations, and is currently an advisor to the University of Arizona Surgical Department and Research Center.
"I am very happy to re-join the Wavefront Board of Directors. The Gaffney-Cline report, as announced July 31, 2012, clearly demonstrates that the Corporation's Powerwave technology successfully increased Estimated Ultimate Recovery of 5 Canadian oil fields and established Wavefront as a key player in the Enhanced Oil Recovery ("EOR") sector," said Mr. Kazanowski. "A strong presence in EOR combined with Management's prudent undertaking to expand Wavefront's product portfolio to establish a global presence in the oil well stimulation and drilling markets presents significant opportunity for Wavefront to grow revenue and shareholder value. I welcome the opportunity to assist Management as they continue to grow the Corporation in the years ahead."
Wavefront Chairman Steve Percy commented, "We welcome Roger back to our Board of Directors. He has had a long involvement with the Corporation including a previous directorship as well as a more recent consulting relationship. Roger has a proven track record of helping companies grow from idea to success, and as Wavefront is in the stages advancing its strategy and moving to profitability, his guidance will be invaluable."
Wavefront also wishes to provide guidance related to Corporation's strategy to leverage its extensive, wholly owned, intellectual property holdings based on dynamic fluid pulsing and offered to the user community under license/rental agreements. The strategy encompasses the life cycle of a client's post exploration operations and consists of three primary focus areas: (1) EOR; (2) Performance Drilling ("PD"); and, (3) Well Stimulation.
1. EOR - Wavefront was founded on the premise that fluid pulsing would be a game changing technology for the oil industry to maximize overall recovery. An independent report by Gaffney-Cline and Associates as announced July 31, 2012 confirmed that the average increase in Estimated Ultimate Recovery to the time of the report averaged 2.56% for 5 Canadian projects (range from 0.7% to 7.4%). To place this current result into context, a BP report noted that worldwide, a 5% increase in oil recovery would yield an additional 300-600 billion barrels. The Corporation continues to place considerable resources on expanding the global use of Powerwave for EOR projects. Such resources and marketing efforts resulted in the Powerwave-driven EOR project with Petrobras Brazil announced July 30, 2012 in the approximate amount of $1.25 Million (compare this to the revenues of $2,086,296 recognized for the 9-months ending May 31, 2012). Wavefront anticipates further expansion of current projects as well as the addition of new projects throughout the fiscal year.
2. Performance Drilling - a recent addition to Wavefront's product offering, this line of pulsed fluid vibration induction leverages the Bit Sub patent acquired in the Vortech intellectual property acquisition announced January 3, 2012. PD will initially focus on two main areas: (1) Thru Tubing (coil tubing) applications to aid in the rate of penetration of drilling out of cement plugs, milling out fracture plugs and balls from the hydraulic fracturing process, and the drilling out of precipitates such as barium sulphide, etc. and, (2) Vibration induction of the drill sting and bottom hole assembly. With the growing number of extended reach horizontal wells, vibration induction has become widely used as a result of its proven ability to dramatically reduce friction between the drill sting and rock face. This leads to overall improvements in weight transfer to the bit and improves rates of penetration and reduces non-productive time. Wavefront's PD tool is differentiated from competitive approaches in that the size of the pulsing tool allows for the retrieval of downhole guidance systems without pulling the drill string. Wavefront believes this will make our PD tool the tool of choice in drilling extended reach horizontal wells.
3. Well Stimulation - well stimulation has seen an approximate 10-fold growth for the 9-month period ended May 31, 2012 compared to the comparative period in 2011 (i.e., May 2011 - $65,632 in revenues compared to May 2012 - $646,907 revenues). This includes the Corporations integration of the Vortech intellectual property acquisition combined with the introduction of new Powerwave well stimulation tools such as the modular rotary stimulation tool. Globally, well stimulation is a billion dollar per year industry as virtually all oil wells or injection wells require some form of stimulation in its lifecycle. Wavefront has, and will continue to work with producers, chemical, and service providers such as Weatherford, Schlumberger, and others to globally expand the use of Powerwave tools for well stimulation.
"Through this strategy to leverage Wavefront's extensive intellectual property holdings we are well positioned for more growth as we demonstrate our ability to help clients increase revenues by enhancing production throughout the entire life cycle of their operations," said Wavefront President and CEO Brett Davidson. "As we continue to expand in key markets around the globe we are confident that consistently generating positive results will further establish Powerwave and our other technologies as essential tools for oil producers of all sizes."
ON BEHALF OF THE BOARD OF DIRECTORS
WAVEFRONT TECHNOLOGY SOLUTIONS INC.
D. Brad Paterson, CFO & Director