WaveForm Energy Ltd.

WaveForm Energy Ltd.

October 30, 2006 18:14 ET

WaveForm Announces Reserves Evaluations Update and Negotiation of Loan Repayment Obligation Extension to December 31, 2006

CALGARY, ALBERTA--(CCNMatthews - Oct. 30, 2006) - WaveForm Energy Ltd. (TSX VENTURE:WE.A) (TSX VENTURE:WE.B) ("WaveForm" or the "Company") announces a $9.5 million (34.3%) reduction of the pre-tax net present value of its proven plus probable reserves discounted at 10% from March, 2006 to October 1, 2006. Total proved plus probable reserves have been reduced by only 30 mboe (-2.2%). This reduction was net of 66 mboe of Company working interest reserves that were produced and sold during the period.

The Company and its lender have executed an agreement which extends the due date of WaveForm's $10 million loan from October 17, 2006 to December 31, 2006.

In accordance with National Instrument 51-101 - Standards for Disclosure for Oil and Gas Activities ("NI 51-101"), GLJ Petroleum Consultants ("GLJ") have independently prepared reports for WaveForm's Tableland, Ferrier and Rowley Properties ("GLJ Reports"). The independent GLJ Reports evaluated all of the Company's oil, natural gas and natural gas liquids reserves as of October 1, 2006. The GLJ price forecast as of October 1, 2006 was used to determine all estimates of future net revenue.

The pre-tax estimated net present value of WaveForm's total proved plus probable reserves discounted at 10% has been reduced from $27.7 million to $18.2 million. Of this $9.5 million reduction, $3.7 million (39%) was due to changes in the price forecast and $2.3 million (24%) was attributable to net cash flow received by WaveForm from production during the period. Some reclassification of reserves categories, require additional future capital of $1.1 million to be spent.

Based upon the GLJ evaluations, WaveForm has 1,322 mboe of total proved plus probable Total Company Interest Reserves remaining as of October 1, 2006. Total proved reserves account for 60.5% of the Company's reserve base. The total proved plus probable reserve life index for WaveForm as of October 1, 2006 was 11.2 years.

The Company Interest Reserves are the total of the Company's working interest share of reserves before the deduction of Crown royalties and include royalty production received by the Company. Net reserves are the total of the Company's working interest reserves after deducting amounts attributable to royalties owned by others.

The following table sets out selected reserves information for the Company as at October 1, 2006. The GLJ Report is available on SEDAR (www.sedar.com).

Escalating Price Case - Remaining Reserves at October 1, 2006

Proved Total Plus
MARKETABLE RESERVES Producing Proved Probable
--------- ------ ---------
Light/Medium Oil (Mbbl)
Total Company Interest 187 187 277
Working Interest 187 187 277
Net After Royalty 172 172 255

Gas (MMcf)
Total Company Interest 2,142 3,049 5,010
Working Interest 1,971 2,840 4,685
Net After Royalty 1,728 2,465 3,999

Natural Gas Liquids (Mbbl)
Total Company Interest 80 105 209
Working Interest 70 92 190
Net After Royalty 57 74 147

Oil Equivalent (Mbbl)
Total Company Interest 624 800 1,322
Working Interest 585 752 1,248
Net After Royalty 517 657 1,068

VALUE ($M) Producing Proved Probable
--------- ------ ---------

Discounted at 0% 15,542 18,551 31,538

Discounted at 5% 12,732 15,104 22,793

Discounted at 10% 10,920 12,837 18,193

Discounted at 12% 10,359 12,129 16,879

Discounted at 15% 9,637 11,217 15,257

Note: future net revenue does not represent fair market value.

GLJ used the following price assumptions in the escalated reserves and cost case as released by GLJ effective October 1, 2006:

Bank of
Canada WTI Light
Exchange Cushing Sweet Oil AECO-C
Price Inflation Rate Oklahoma @ Edmonton Spot
Forecast (%) ($US/$Cdn) ($U.S./Bbl) ($Cdn/Bbl) ($/mmbtu)
--------- ---------- ---------- ----------- ----------- ---------

2006 (Q4) 2.0 0.890 63.00 69.75 5.50
2007 2.0 0.890 65.00 72.00 7.50
2008 2.0 0.890 60.00 66.50 8.00
2009 2.0 0.890 55.00 60.75 7.95
2010 2.0 0.890 52.00 57.50 7.55
2011 2.0 0.890 53.00 58.50 7.35

The GLJ report assumes WaveForm's average Q4 daily production net production at 314 boe/day, comprised of 115 boe/day from Tableland, Saskatchewan and 199 boe/day from the Ferrier and Rowley properties.

The Board of Directors and management of WaveForm had the GLJ Reports prepared in conjunction with the previously announced process whereby Blackmont Capital has been engaged to seek out strategic alternatives. A ceiling test calculation will be carried out as part of the preparation of the financial statements for the quarter and nine months ended September 30, 2006, and will be reported separately when completed. Prior to preparation of the updated GLJ Reports, WaveForm's Tableland reserves had been evaluated by GLJ in a report with an effective date of March 31, 2006, and the Company's Ferrier and Rowley reserves were evaluated by another independent petroleum engineering consulting company in a report dated March 1, 2006.

The last well drilled at Tableland in July, 2006 is currently shut-in for pressure testing. Earlier this month, the Company completed an 11 kilometer 3D seismic program at Rowley. Seismic interpretation and well location selection activities will be conducted during November, 2006.

The Company also announces the departure of Ben Urlwin, Vice President, Exploration. WaveForm wishes to thank Mr.Urlwin for his services.

For the purposes of reporting production volumes, natural gas has been converted to a barrel of oil equivalent (boe) using a conversion rate of six thousand cubic feet equal to one barrel ("6:1"). This conversion is based upon energy equivalence at the burner tip and does not represent a value equivalency at the well head.

About WaveForm Energy

WaveForm is a junior oil and gas company focused on the acquisition, exploration and development of oil and natural gas in western Canada.


Statements in this press release may contain forward-looking statements including expectations with respect to future events and the actions of third parties. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the uncertainty of the oil and gas industry (i.e. operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses, adequate available financing and health, safety and environmental factors), commodity price and exchange rate fluctuations and uncertainties.

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