Wavefront Technology Solutions Inc.: Powerwave Can Recover Billions of Additional Barrels of Oil

Independent Engineering Evaluation by Gaffney-Cline and Associates Validates Field Performance

Marketwired

EDMONTON, ALBERTA--(Marketwire -07/31/12)- Wavefront Technology Solutions Inc. (Wavefront or the Company), (WEE.V) (WFTSF) the global leader in fluid injection technologies for improved performance and profitability in the oil and gas and environmental sectors, is pleased to announce that an independent field performance review by Gaffney-Cline and Associates, a well respected international oil and gas consulting firm, has validated Powerwave results in certain Alberta and Saskatchewan projects.

Gaffney-Cline and Associates was contracted by Wavefront to evaluate the results of Wavefront's Powerwave installations. The study included 5 fields comprising 58 Powerwave-driven water injector installations having a minimum 1 year injection history. The analysis was completed using the Canadian public database, geoScout, which reports an operator's production and injection data. More specifically, the Gaffney-Cline analysis evaluated the production response at surrounding producers that comprised the well patterns supported by water injection utilizing Powerwave pulsing technology.

Increases in Estimated Ultimate Recovery (EUR) were evaluated on a well by well and pattern by pattern basis. EUR was evaluated with two main methods: log q (oil rate) vs. Q (cumulative oil) and log WOR (water-oil ratio) vs. Q decline analysis. The decline trend was estimated before and after the Powerwave installations, and the difference in EUR was quantified. The results summarized in the table below range from 0.7% to 7.4%. The EUR increase is witnessed by either an increase in oil rate, flattening of the oil decline, and/or a decrease in WOR (water oil ratio).

 

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Total Total Average EUR
Incremental Incremental Increase
Field Location Oil (m3) Oil (bbls) (%)
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Alberta Project 1 57,100 359,148 7.42%
Alberta Project 2 20,750 130,514 1.21%
Saskatchewan Project 1 16,900 106,298 2.11%
Alberta Project 3 5,700 35,852 1.32%
Alberta Project 4 3,000 18,869 0.72%
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TOTALS 103,450 650,681 2.56%
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Further evaluation of the estimated EUR values calculated for the report will most likely be undertaken after an additional year or more of production has occurred under Powerwave water injection as oil rate decline trends may establish themselves more completely allowing for better estimation of EUR. In certain cases evaluated for the study EUR may be conservative as production trends remain flat or are increasing.

"Estimated Ultimate Recovery plays a critical role in driving investment decisions for operators and Powerwave's performance has demonstrated it can increase EUR appreciably," said Wavefront President and CEO Brett Davidson. "With a 2006 report by Advanced Resources International indicating 400 billion barrels of oil remain stranded throughout the United States(1) it's clear that Powerwave can make a important contribution to increased oil recovery in a variety of applications."

(1) Assessing Technical and Economic Recovery of Oil Resources in Residual Oil Zones, ARI, February 2006, www.adv-res.com/pdf/ROZ_Phase_II_Document.pdf

A BP report noted that a 1% improvement on its original hydrocarbons equates to 2 billion barrels of additional reserves. Worldwide, a 5% increase in oil recovery would yield an additional 300-600 billion barrels(2). "The EUR results we are presenting today are very noteworthy and we would expect Powerwave benefits to become larger as the fields are more fully networked," said Davidson. "With reference to the BP report the 2.56% average EUR increase would equate to a more than 4 billion barrel improvement on BP's original hydrocarbons. Wavefront has long maintained that Powerwave will positively affect the reservoir's natural production decline rate, extend field life, and maximize ultimate oil recovery."

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 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.

(2) http://www.bp.com/liveassets/bp_internet/globalbp/globalbp_uk_english/reports_and_publications/frontiers/STAGING/local_assets/pdf/bpf19_20-27_thirdtrillion.pdf

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.

Contact:

Wavefront Technology Solutions Inc.
Brett Davidson
President and CEO
780-486-2222
Wavefront Technology Solutions Inc.
D. Brad Paterson
CFO
780-486-2222
investor.info@onthewavefront.com
www.onthewavefront.com

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