SOURCE: Wavefront Energy and Environmental Services Inc.

March 20, 2007 16:33 ET

Wavefront Energy & Environmental Services Inc. Operations Update for Rogers County, Oklahoma

EDMONTON, AB -- (MARKET WIRE) -- March 20, 2007 -- Wavefront Energy and Environmental Services Inc. (TSX-V: WEE), a leader in technology development and implementation for improved oil recovery and optimized groundwater remediation, is pleased to announce that production improvements have been realized in Rogers County, Oklahoma. At this time, existing production operations are confined to 25% of the total area available for development (340 acres of 1360 acres).

The US Department of Energy's National Energy Technology Laboratory reports that approximately 80% of the roughly 500,000 producing wells in the United States can be classified as stripper wells, producing about 19% of US domestic oil production. Development of the mature leases that Wavefront acquired or has a working interest in commenced in 1902 and is within 100 miles of Nellie Johnstone No. 1, Oklahoma's first commercial oil well, completed in April 1897. Oil production from the leases is gained from stripper wells, where oil production is less than 10 barrels per day by definition. However, the majority of oil wells in Wavefront's Oklahoma operations are well past the "stripper well" definition, falling into the marginal well category as they produce a minimum of 95% water per day as the total percentage of production.

The primary focus of Wavefront's Oklahoma operations is to validate the efficacy of the Powerwave Process, showcasing that mature oil fields, such as those defined as "stripper" or "marginal" well conditions, can be given new life. During the past seven months, Wavefront has concentrated extensively on a substantial rehabilitation program of the leases, including infrastructure and wells, to bring about industry-acceptable health, safety, and environmental standards. During this period, Wavefront also put into action a development plan that included the drilling of new water injection wells for Powerwave, specifically the Dragonfly tools, as well as new production wells placed within the influence of the Powerwave installations.

Wavefront's actions in Oklahoma are proving positive in 25% of the acreage currently under production. Prior to Wavefront assuming operation of the leases, daily production was negligible or non-existent. Over the past 30 days, production results for the largest lease development consisting of 160 acres exceeded previously recorded monthly production totals dating back to 1979 by a factor of 3.3. For the 30-day period ending March 15th, oil production in the 160-acre area was 548 bbls (18.3 bbls/day) versus a previous production high of 167 bbls (5.6 bbls/day) recorded in 1980 and 1987 respectively. For the same 30-day period overall production on 340 acres of developed leases (25% of total acreage) was 734 bbls (24.5 bbls /day). Average daily production for the same 340 acres over five consecutive days ending March 15th was 41 bbls of oil with a high of 46 bbls and a low of 33 bbls. The continued production improvements gained in Oklahoma demonstrate Wavefront's ability to boost recovery in mature oil fields.

The Powerwave Process continues to provide consistent results with respect to overall improvements in the rate of water injection versus standard injection practices at the same relative supply pressure. The minimum two-fold increase in injection rate previously reported has been independently verified by engineers with a top-five oil producer who continue to evaluate a strategy for Powerwave implementation in production operations in two geographical regions.

Wavefront President and CEO Brett Davidson stated, "Revitalizing mature assets such as Rogers County can lead to large increases in the ultimate recovery of the field. We are in the infancy of rejuvenated production and, given one of the harshest winters experienced in Oklahoma in recent history, are pleased with the initial effect of our restoration efforts, development plan, and establishing the Powerwave Process. These early results showcase how effective technology can be, particularly in mature assets, and we look to future production gains as we further exploit the current 340 acres and evaluate future development plans for the remaining acreage."

Mr. Davidson reiterated an earlier comment, "For a production company, the ability to inject larger volumes of water into a producing formation is an important operational objective as processing rate directly affects production revenue. Volumetrically, where input equals output, increasing input by a factor of two also increases output by a factor of two. If the proportion of water and oil of the output remains constant or tends toward more oil, the production company would recognize greater production revenue. Wavefront's Oklahoma injectivity results confirm how important of an influence a process such as Powerwave can have on secondary oil recovery strategies."

Mr. Davidson further stated, "The objective of Wavefront's Oklahoma operations is to showcase, under difficult mature reservoir conditions, the Powerwave Process. The data we have gathered has drawn attention from a range of companies on how Powerwave can be best implemented to meet their specific operational objectives. We fully anticipate this interest to evolve into commercial projects. From a technology demonstration standpoint we are encouraged that the objectives we had set out in Oklahoma are positive and looking at the shear number of stripper wells in the United States, our technology offerings will lead to further commercial opportunities in America's oil heartland."

Wavefront, in partnership with Boulder Oil LLC, are jointly developing 780 acres where Wavefront is the operator and has a 40% working interest. Under the Joint Operating Agreement, Boulder exercised its non-participation rights related to oil development in the active 340 acres. As such, Wavefront will receive all production revenues from production wells associated with the costs incurred till such time that Wavefront is repaid 200% of those costs after which, production revenues will revert back to the working interest proportions. As at November 30, 2006, amounts due to Wavefront by Boulder totaled $1,592,774 and are included in non-participation amounts due. Wavefront also holds a 100% working interest in 580 acres of shut-in production in Rogers County.

About Wavefront Energy and Environmental Services Inc.

Wavefront is a technology-based company with a focused, strategic plan to leverage the value of our intellectual property in order to maximize oil production recovery operations, as well as provide additional solutions for environmental applications.


"D. Brad Paterson" (signed)
D. Brad Paterson, CFO & Director
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Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United Sates Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plan, objectives, assumptions or expectations or future performance, are "forward-looking statements." 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. The Company expressly disclaims any obligation to up-date any "forward-looking statements."


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