EDMONTON, ALBERTA--(Marketwired - Dec. 5, 2016) - Wavefront Technology Solutions Inc. (Wavefront or the Company) (TSX VENTURE:WEE)(OTCQX:WFTSF) a global leader in the advancement of fluid injection technology for oil and gas well stimulation and improved/enhanced oil recovery is pleased to provide an update on Powerwave results with Pan American Energy ("PAE") in Argentina.
In an original pilot project PAE converted three conventional water injection wells in its Las Flores field in the Cerro Dragon asset in Southern Argentina to Powerwave-driven water injection wells. The three injection wells influence production behavior in seven offsetting oil producing wells within three production patterns. Based on initial positive results with the pilot, PAE converted four additional conventional water injection wells to be Powerwave-driven. PAE now views the Powerwave program to be commercial.
The seven Powerwave-driven injectors are installed in an oil field with an unconsolidated sandstone reservoir that has been on waterflood for about 20 years. The heterogeneous nature of the reservoir gives rise to considerable channeling of the injected water to the surrounding production wells. Based on PAE's internal analysis, the three production patterns in the original Powerwave project area have experienced a change in oil production decline over forecasted recovery associated with historical production trends which may add 5 or more years to economic oil recovery. To date, the changes in oil production decline represent an increase in estimated ultimate recovery or incremental oil of 3.5% over non-Powerwave production trends. Confirmation of improved incremental oil recovery in the combined seven well program remain pending however early results are encouraging.
To understand the increase in incremental oil recovery, if the three production patterns had a combined 10 million barrels of original-oil-in-place and ultimate recovery by conventional production strategies was projected to be 35% or 3.5 million barrels, the additional recovery achieved by introducing Powerwave rises to 38.5% or 3.85 million barrels: an additional 350,000 barrels. The additional production barrels would represent an overall increase in gross production revenue to PAE.
Wavefront's cost for international improved oil recover / enhance oil recoveries projects, inclusive of the above PAE pilot projects, has approximated 57.8% of those international project revenues as disclosed in the Company's 2015 annual management discussion and analysis.
"Wavefront has consistently claimed that a Powerwave-driven waterflood could add up to 5% to ultimate oil recovery. The 3.5% increase in estimated ultimate oil recovery reported by PAE in the Cerro Dragon Powerwave-driven waterflood patterns supports both Wavefront's assertions and Powerwave's capacity to change the economics of an oil field," said Wavefront President and CEO, Brett Davidson. "Wavefront is very pleased to be working with a progressive production company such as PAE who understand the importance of maximizing oil recovery and we look forward to adding further Powerwave systems in Cerro Dragon and elsewhere."
ON BEHALF OF THE BOARD OF DIRECTORS
WAVEFRONT TECHNOLOGY SOLUTIONS INC.
D. Brad Paterson, CFO & Director
Wavefront publicly trades on the TSX Venture Exchange under the symbol WEE and on the OTCQX under the symbol WFTSF. 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.
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