Wavefront Technology Solutions Inc.
TSX VENTURE : WEE

Wavefront Technology Solutions Inc.

July 28, 2011 16:42 ET

Wavefront Generates Six Successive Quarters of Revenue Growth

Compounded gross revenues growth rate of 74% from May 31, 2009 to May 31, 2011

EDMONTON, ALBERTA--(Marketwire - July 28, 2011) -

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Wavefront Technology Solutions Inc. ("Wavefront" or the "Corporation") (TSX VENTURE:WEE), the leader in fluid injection optimization for improved performance and profitability in the oil and environmental sectors, is pleased to announce its financial results for the third quarter ending May 31, 2011 which saw a compounded growth rate of gross revenues of 74% over the period of May 31, 2009 to May 31, 2011.

Financial highlights include:

  • Revenues for the nine months ended May 31, 2011 were $3,075,359, an increase of $1,304,456 over the comparative period in 2010 ;

  • Service revenues and royalties for the nine months ended May 31, 2011 related to Powerwave, Primawave, tubing pumps and bailers totalled $2,710,624, compared to core revenues of $1,571,411 for the comparative period;

  • The basic and diluted net loss for the nine months ended May 31, 2011 decreased by $1,640,938 to $3,276,869 ($0.04 per share), compared to $4,917,807 ($0.07 per share) in 2010 representing a 33.4% decrease in net losses;

  • Revenues for the three months ended May 31, 2011 were $1,147,291, an increase of $453,353 over the comparative period in 2010 and,

  • The basic and diluted net loss for the three months ended May 31, 2011 decreased by $891,581 to $929,407 ($0.01 per share), compared to $1,820,988 ($0.02 per share) in 2010 representing a 49% decrease in net losses.

Operational highlights of the third quarter ended May 31, 2011 included the Corporation securing 4 key Powerwave contracts totaling 24 tools as follows:

  • A six tool Powerwave contract with the largest oil production company in the Sultanate of Oman;

  • A Powerwave contract with Plus Petrol in Argentina;

  • A Powerwave contract with Clayton Williams in Texas; and,

  • An 11 tool, three field Powerwave contract with a major Calgary-based oil producer.

Also in the third quarter ended May 31, 2011 the Corporation commenced the 31 Powerwave tool expansions with the Eastern Alberta client. The Corporation is still working with the client on the finalization of the balance of the planned expansion.

Subsequent to the reporting quarter, the Corporation received a master service agreement from an existing Texas client to expand Powerwave implementation to its light-oil waterflood operations in Lost Hills, California. The Lost Hills project is designed to use Powerwave to reduce production decline rate, extend field life, and increase oil recovery factor. Given geological complexity well density is high with well spacing in the Lost Hills production areas ranging from 1.25 acres to 5 acres thus presenting a large opportunity for the Corporation in both Powerwave stimulation as well as waterflooding programs.

"I am very encouraged by the progress Wavefront continues to make," said Wavefront Chairman, Steve Percy. "Revenues have been increasing rapidly, and operating performance when measured by 'cash from operating activities' has improved vastly over past reporting periods. In addition, our working capital position remains very strong and ready to fuel further growth. We have added significant strength to our Board with the additions of Jeff Saponja and John Zahary, and we are also adding new and experienced talent to our senior management team. I feel confident that we have the ingredients to achieve profitable growth."

The Corporation would also like to announce that it is launching a new video forum to take questions from shareholders. Beginning September 2011, Wavefront Management will respond to a maximum of 8 questions posed by shareholders with the video replies appearing on the Corporation's updated website set to launch the same month. Shareholders are encouraged to send monthly questions to investor.info@onthewavefront.com. For a question to be considered the shareholder posing the question must provide a valid email address and agree to allow the Corporation to use his or her name and place of residence in the video to be posted on Wavefront's website or any other external site such as YouTube.

"As a Corporation we are the forerunners of optimized injection to maximize reservoir productivity. We also want to be on the leading edge of communications and have launched a new initiative appointing a Corporate Communications Coordinator and pursuing the best-in-class use of Twitter and LinkedIn as well as revamping the Corporation's website for a better client and shareholder experience," said Wavefront President and CEO, Brett Davidson.

ON BEHALF OF THE BOARD OF DIRECTORS

WAVEFRONT TECHNOLOGY SOLUTIONS INC.

D. Brad Paterson, CFO & Director

About Wavefront:

Wavefront is a technology based, world leader in fluid injection technology for improved/enhanced oil recovery and groundwater restoration. Wavefront publicly trades on the TSX Venture Exchange under the symbol WEE and the Company's website is www.onthewavefront.com.

Cautionary Disclaimer – Forward Looking Statement

Certain statements contained herein regarding Wavefront and its operations constitute "forward-looking statements" within the meaning of Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations or future performance, are "forward-looking statements". In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "believe", "continue" or the negative of these terms or other comparable terminology. 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. Such factors include fluctuations in the acceptance rates of Wavefront's Powerwave and Primawave Processes, demand for products and services, fluctuations in the market for oil and gas related products and services, the ability of Wavefront to attract and maintain key personnel, technology changes, global political and economic conditions, and other factors that were described in further detail in Wavefront's continuous disclosure filings, available on SEDAR at www.sedar.com. Wavefront expressly disclaims any obligation to up-date any "forward-looking statements", other than as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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