WaveForm Energy Ltd.

WaveForm Energy Ltd.

February 25, 2005 12:04 ET

Waveform Operational Update


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: WAVEFORM ENERGY LTD.

TSX VENTURE SYMBOL: WE.A
TSX VENTURE SYMBOL: WE.B

FEBRUARY 25, 2005 - 12:04 ET

Waveform Operational Update

CALGARY, ALBERTA--(CCNMatthews - Feb. 25, 2005) - Waveform Energy Ltd.
(TSX VENTURE:WE.A) (TSX VENTURE:WE.B) ("Waveform" or the "Company") is
pleased to report on the drilling and completion operations which are
currently being conducted by the Company. The first well that was
drilled was rig released on January 29, 2005. The well is currently
undergoing testing and completion. This testing and completion is
crucial for management to gather data for future drilling efforts and to
enable management to design the best possible fracture stimulation of
the first well. The geological data gathered throughout the drilling
process has been consistent with the Company's expectations, which are
based on the geological data from existing successful wells of this type
in the United States.

The second well is currently drilling at 2390 metres and is just
entering the horizontal leg. It is expected that the drilling of this
well will be completed in 7 to 10 days, at which point a completion rig
will be moved onto the site and preparation of the well for fracture
stimulation will commence. During the drilling of the second well, the
Company had significant hydrocarbon shows from another shallower zone,
and geological evaluation of the potential in this zone is underway.

Both wells have been drilled into the Middle Bakken zone. This
formation, however, is not the source rock. The source rock is the Upper
Bakken shale which lies directly above the Middle Bakken zone. This zone
acts as a competent wellbore from which to fracture stimulate and
collect oil from the Upper Bakken shale source rock. This process is a
template of one developed in Richland County, Montana where operators
have drilled over 135 successful horizontal Bakken wells. Hence, the
strategy is to drill, evaluate and then fracture stimulate each well. As
these are the Company's first two wells drilled into its significant
land base in the area, management is taking adequate time to gather and
analyze the data in order to evaluate the best possible fracture
stimulation and completion techniques. The Company is expecting to
finalize the fracture stimulation design on the first well over the next
two weeks. Due to the scarcity of fracture stimulation equipment during
the current active winter drilling season and the lack of access due to
road bans during spring break-up, the Company expects to fracture
stimulate both wells in late April.

About WaveForm Energy Ltd.

Waveform Energy is a junior oil and gas company focused on the
acquisition, exploration and development of oil and natural gas in
Western Canada with a particular emphasis on exploration in the Bakken
Formation in the Torquay-Tableland area of Southeastern Saskatchewan.
Waveform currently has an undeveloped land base of 26,880 net acres, and
will use its proprietary technology to further explore and develop other
opportunities.

ADVISORY: Certain information regarding WaveForm Energy Ltd. including
management's assessment of future plans and operations, may constitute
forward-looking statements under applicable securities laws and
necessarily involve risks associated with oil and gas exploration,
production, marketing and transportation such as loss of market,
volatility of prices, currency fluctuations, imprecision of reserve
estimates, environment risks, competition from other producers and
ability to assess sufficient capital from internal and external source.
As a consequence, actual results may differ materially from those
anticipated in the forward-looking statements.

18,839,450 Class A Shares

934,736 Class B Shares

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Waveform Energy Ltd.
    Donald K. Rae
    President and Chief Executive Officer
    (403) 538-2121
    Email: don@waveformenergy.com
    or
    Waveform Energy Ltd.
    Michael V. Little
    Manager, Business Development
    (403) 538-2121 or Cell: (403) 990-3685
    (403) 538-2122 (FAX)
    Email: mike@waveformenergy.com
    or
    Waveform Energy Ltd.
    Petro Canada Tower
    Suite 3000, 150 - 6th Avenue S.W.
    Calgary, Alberta T2P 3Y7
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.