Wavefront Technology Solutions Inc.

Wavefront Technology Solutions Inc.

January 28, 2010 18:36 ET

Wavefront Technology Solutions Inc.: Primawave Flourishes in First Danish Project

Announces First Quarter Results

EDMONTON, ALBERTA--(Marketwire - Jan. 28, 2010) - Wavefront Technology Solutions Inc. ("Wavefront") (TSX VENTURE:WEE) (PINK SHEETS:WFTSF), a world leader in providing innovative solutions for increasing oil field production and enhancing the treatment of contaminated groundwater, is pleased to announce the first application of Primawave in Denmark in a mixed commercial and residential setting.

Based on results reported by Ejlskov A/S, the consultant managing the project, Primawave may have substantial impact on the groundwater remediation plan by maximizing the radius of influence and distribution of the injected fluids. The site has extremely limited access due to the position of many buildings and buried utilities. Application of Primawave during injection will facilitate fewer injection points while minimizing potential exposure of the public to both the industrial contaminant and remedial fluid. The next step for the site is to incorporate Primawave into the full-scale remedial design to clean-up an industrial solvent impacting groundwater quality.

"Wavefront is pleased to have completed this project in conjunction with our newest licensed Primawave provider Ejlskov A/S," said Wavefront President and CEO Brett Davidson. "The emergence of the European environmental market represents a considerable opportunity for Wavefront to expand the network of accredited Primawave users. We look forward to successfully completing the Copenhagen project and additional projects in Europe to demonstrate the efficiency and cost savings Primawave brings to the user community."

Wavefront also announces its financial and operating results for the first quarter ended November 30, 2009.

Revenues for this period were $576,327, an increase of $145,372 from the revenues recognized in the corresponding period. Service revenue and royalties totaled $501,684 compared to the $240,102 for the comparative period. The increase in revenues is primarily a result of a return of activity to the service, tubing pump and bailer product lines in Alberta and continued growth in the commercialization of Powerwave and Primawave technologies.

The basic and diluted net loss for the period ended November 30, 2009 was $1,318,487 ($0.02 per share), compared to $2,694,935 ($0.04 per share) in 2008. The Corporation's expenses through the three month period were $1,894,814 compared to $3,125,890 for the comparative period in 2008. 

Total assets decreased by $916,991 to $23,560,609 from the prior year end. This decrease was primarily due to a decrease of $1,356,243 in cash that was used to fund operations, and fund the manufacturing of Powerwave and Primawave systems.

As at November 30, 2009, the Corporation had working capital of $14,206,007. The Corporation believes that its working capital position will decline despite having a significant increase in the number of Powerwave contracts in-hand as Wavefront cannot control or dictate the installation schedules. Wavefront cannot commence billing of Powerwave clients that have executed contracts in-hand until the Powerwave systems are installed and operational.

During the first quarter of fiscal 2010, Wavefront continued to make great strides with all product lines that should broaden the Corporation's opportunities around the globe. Operational highlights of the first quarter 2010 included:

  1. Powerwave deployment with a major oil producer in Alaska. This Powerwave program represents a significant opportunity as billions of barrels of undeveloped reserves remain stranded in the many operating fields in the state. A successful program outcome may provide additional deployment of multiple Powerwave systems.
  2. Wavefront entered into a non-binding Letter of Intent with the Subdireccion Tecnica de Explotation, a department of Pemex PEP ("Pemex") for the use of Powerwave in both single well stimulation and enhanced waterflood applications. The Pemex relationship may bring substantial rewards as successful implementation of Powerwave may result in long-term contracts for both single well stimulations and waterflood applications.
  3. Continued positive results in Wavefront's longest running Powerwave project in Eastern Alberta. After a 24-month operational period, Powerwave provided a 168 per cent increase in oil production above what would have been produced based on the natural production decline rate established for the three water injection patterns where Powerwave is deployed. Oil decline rate fell 68 per cent, decreasing from a pre-Powerwave rate of 3.4 per cent per month to 1.1 per cent per month with Powerwave. Contributing to the fall in oil decline rate was an increase in incremental oil cut (percentage of oil per barrel of produced fluid). Oil cut increased from a pre-Powerwave value of 1.05 per cent to 2.54 per cent with Powerwave.
  4. Additional Powerwave opportunities were secured with new clients in Wyoming, Texas, and Alberta.

The above financial highlights should be read in conjunction with the unaudited consolidated financial statements, and management discussion and analysis of results for Wavefront's most recently completed quarter, ended November 30, 2009, which have been filed on SEDAR.



D. Brad Paterson, CFO & Director

Cautionary Disclaimer – Forward Looking Statements

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'', ''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.


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