EDMONTON, ALBERTA -- (Marketwired) -- 04/29/13 -- 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 second quarter ending February 28, 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.
Innovative new Neptune designed to ensure constant water distribution
New developments this quarter include Wavefront's introduction of the "Neptune", an innovative pulsating selective injection waterflood regulator valve. Waterflood regulator valves are designed to inject water into a desired zone but are often plagued by scaling issues which inhibit water injection. This type of injection system is widely used in South America and Asia with as many as 21 valves in a single water injection well.
Injection rates and water distribution are crucial for maximizing overall oil recovery. The Neptune is designed to prevent scaling thus ensuring seamless, continuous injection enabling oil producing companies to maintain injection rates and improve water distribution in the oil-bearing formation.
In South America there are approximately 17,000 water regulator valves in use(1). Wavefront's marketing strategy is to sell the Neptune to clients with a target price of US $4,500 per valve. To obtain a recurring revenue stream the pulsating injection head on the Neptune would be replaced approximately every two years at a target price of US $1,500 per injection head.
(1) Eduardo Tidball, Binning Oil Tools, 2013
Realigned marketing plan capitalizes on evolving markets and international EOR opportunities
After a careful review of evolving market forces in the U.S. and Canada Wavefront's Board of Directors adopted a realignment of our strategic plan to guide Wavefront's operations in two key areas. Marketing in North America will focus primarily on performance drilling and well stimulation in 2013 and beyond, to promote the strengths of our stimulation and performance drilling technologies in response to the growing demand for these services throughout the U.S. and Canada.
This demand increase presents significant and almost immediate revenue generation potential and is the result of two key market developments. The first is the long term view of the price differential between the benchmark heavy oil prices in Canada, Western Canadian Select ("WCS") relative to West Texas Intermediate ("WTI") which has ranged from approximately $20 to $40 per barrel. The Company anticipates that prolonged high price differentials may negatively impact Powerwave mature field revitalization revenue generated in the Canadian market as oil producers evaluate operational strategies to reduce operating costs to address low Netback from production operations (Netback is calculated by taking the price of the oil, less all costs associated with getting the oil to a market. These costs can include; transportation, production and disposal, refining costs, royalty fees, taxes, and other costs).
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