EDMONTON, ALBERTA--(Marketwired - July 29, 2013) - Wavefront Technology Solutions Inc. ("Wavefront" or the "Company") (TSX VENTURE:WEE) (OTCQX:WFTSF) a developer of leading-edge technology for fluid injection optimization for improved performance and profitability in the oil and gas and environmental sectors announces its financial results for the third quarter ending May 31, 2013.
Wavefront is a technology company with a reputation for quality, innovation and creativity. Wavefront is focused on global markets and utilizes its patented technology to provide measurable solutions when exploration and production companies (or "E&P" companies) are faced with the challenges of optimizing oil production, well intervention and performance drilling.
With the evolution of our core "pressure-pulse technology" to encompass a portfolio of products, our new theme, "From Bit to Last Drop™", encompasses the life cycle of a client's post exploration operations. The Company's primary focus areas are: performance drilling; well stimulation; and mature field revitalization or enhanced oil recovery ("EOR").
Marketing in North America will focus primarily on performance drilling and well stimulation in 2013 and beyond, to promote the strengths of our Powerwave™ stimulation and Powerwave Trailblazer performance drilling technologies in response to the growing demand for these services throughout the U.S. and Canada.
Internationally Wavefront has been concentrating on high value markets in Oman, Mexico, Colombia, Argentina, and Brazil. Within these markets there is tremendous revenue generation opportunity for all product lines.
During the third fiscal quarter Wavefront continued to experience delays in project initiation in Brazil which has impacted revenue related to EOR projects. We anticipate the start of revenue recognition in the coming quarters as tools are installed. The current value of the Petrobras contract is approximately US $1.16 million.
A technical paper with Pan American Energy ("PAE") was presented at the Petroleum Congress was held in Rosairo, Argentina in May 2013. Based on positive results the Company is anticipating a renewal of its current contract as well as a modest expansion of Powerwave tools with PAE in Argentina.
Wavefront's Powerwave Trailblazer performance drilling tools were introduced to the drilling market in October 2012 and have been under evaluation in both Canada and the United States. The evaluation testing phase is required to better understand the use of the tools as well as to make necessary improvements to the quality control/quality assurance of the tool design to maximize tool benefits while ensuring tool integrity during operation. Although the Company has recently started charging a daily rental rate ranging from $2,500 to $3,500 per day there may be circumstances where we provide further discounts to gain experience and data.
During the third fiscal quarter Wavefront announced that Schlumberger Romania was piloting Powerwave stimulation tools for use with Romgaz. Initial results have been very positive and the Company anticipates moving to a yearly rental agreement.
Subsequent to the third fiscal quarter Weatherford continued with Powerwave stimulations in the Chicontepec Basin. Also subsequent to the third fiscal quarter the Company received notice to conduct a pilot well stimulation program with Daleel Petroleum in Oman.
Financial highlights for the three months ended May 31, 2013 include;
The above financial highlights should be read in conjunction with the unaudited consolidated financial statements and management discussion and analysis of results for Wavefront for the third quarter ended May 31, 2013, which were filed on SEDAR on July 29, 2013.
"Wavefront continues to focus on growth in all product lines, maintaining high gross profit margins, and controlling expenses,' said Davidson. "We're committed to meeting the needs of the marketplace with best-in-class technologies, knowledgeable people and attractive business arrangements that help our clients achieve greater profitability."
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 performance drilling, well stimulation, and mature field revitalization (EOR). 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 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", "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.
©2013 Wavefront Technology Solutions Inc. All rights reserved. From Bit To Last Drop™, Powerwave™ and Primawave™ are registered trademarks of Wavefront Technology Solutions Inc. Privacy Statement.
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 Information: