Wavefire.com Inc.

October 16, 2007 17:57 ET

Wavefire Settles Related Party Debt and Enters Into Farm-In Agreement

CALGARY, ALBERTA--(Marketwire - Oct. 16, 2007) - Wavefire.com Inc. (TSX VENTURE:WAF.A) (Wavefire) announced today that it has entered into a debt settlement agreement pursuant to which the principal amount of $1,726,096.00 owed to a related party has been settled by the issuance, as fully paid and non-assessable, of 9,798,010 common shares of Wavefire to the related party at a price of $0.1756. The indebtedness represents amounts previously advanced by a director to Wavefire as disclosed in the audited financial statements of Wavefire. No change of control occurs as a result of the debt settlement. Wavefire also announced that it has entered into a farm-in agreement covering three sections of land in the Acadia Area of Alberta pursuant to which it will earn the farmors' 100% interest (subject to existing encumbrances) in the drill spacing unit and a 65% interest in the balance of the lands by drilling a test well on the lands on or before November 30, 2007 and payment of the Farmors' cost to date of approximately $162,000 incurred in developing the drillsite. Drilling and abandonment costs to be borne 100% by Wavefire are estimated to be $260,000.00. In addition, Wavefire and the Farmor established an area of mutual interest covering 3 townships within the area of the farmout lands wherein, during a 2-year period, the respective participating interests of the parties in any lands acquired shall be 35% as to the Farmor and 65% as to the Farmee.

Implementation of the debt settlement agreement and farm-in agreement is subject to receipt of all required approvals.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Wavefire Technologies
    C.W. (Bill) Baker
    (403) 244-5340