Wavefront Energy & Environmental Services Inc. enters into irrevocable licensing agreement for a secondary oil recovery methodadmin
Wavefront Energy and Environmental Services Inc. (“Wavefront”), a leader in technology development and implementation for improved oil recovery and optimized groundwater remediation is pleased to announce that it has reached a licensing agreement with Gas and Oil Enhancement Tools, LLC a Phoenix, Arizona company (“GOET”) for a secondary oil recovery method based on seismic wave stimulation.
The fully paid-up, irrevocable license granted by GOET for a total consideration of US $100,000 was secured against the deposit previously issued to the patent holder for the contemplated share purchase agreement announced June 26, 2007 where Wavefront proposed to purchase 50% of the outstanding membership units in Oil Enhancement Tools, LLC (“OET”) an oil service company operating in Cody, Wyoming. The change in approach in obtaining irrevocable rights to the technology stemmed from Wavefront’s due diligence related to the proposed purchase, the dissolution of OET, and the patent holders desire to continue a relationship with Wavefront.
The patented process licensed by Wavefront is a stimulation method and tool for improving the production of unswept and immovable oil from fields. The closed wellbore technology generates a “shock” or seismic wave to induce the flow of oil. The approach is best applied in fields with high water cuts and large amounts of stranded oil and has been successfully demonstrated to positively change oil and gas production in fields in the United States as well as Mexico. The seismic technology differs from the Powerwave(TM) Process given the goal is to generate a waveform in a wellbore having no fluid connectivity to the oil reservoir. In contrast, the goal of the Powerwave(TM) Process is to purposely move liquids, improve injection rates, as well as the distribution of injected liquids in an oil reservoir. Downhole tools related to the Powerwave(TM) Process are deployed in injection wells having full fluid connectivity to the reservoir through perforations, screens, liners, or open-hole completions.
Wavefront President and CEO Brett Davidson stated, “One of Wavefront’s goals is to be the foremost provider of wave-based technologies to enhance and improve oil recovery. The license agreement is a very positive outcome for Wavefront as it provides irrevocable access to a demonstrated technology at less than half of the original contemplated purchase price of the OET membership units. Management believes that the licensed seismic stimulation approach can, in certain reservoir types, be successfully integrated into Wavefront’s Powerwave(TM) Process.”
Mr. Davidson further commented, “It’s a fact of our culture: Whether it is plastics, clothing, or even toothpaste, we rely on petroleum products to get us through our everyday lives. We need to do what we can to produce that oil efficiently. With the addition of this license, the recent acquisition of Top Gun, the proposed acquisition of ICI Solutions (www.ici.ca), and the Powerwave(TM) Process, Wavefront has a suite of proven approaches that when it comes to producing oil, we can get to it where others can’t.”
Wavefront also wishes to announce that it will file, in accordance with TSX Venture Exchange policy, a Summary Form disclosing the granting of an aggregate of 205,000 incentive stock options pursuant to the Wavefront’s Stock Option Plan. Of the stock options being issued 90,000 are to four independent directors with the balance being issued to employees. The options will be exercisable at a price of $0.97 per share, for a period of five years. In accordance with Wavefront’s Stock Option Plan and Exchange policy, the incentive stock options are subject to a hold period of 4 months and vesting period of 18 months.
About Wavefront Energy and Environmental Services Inc.
Wavefront is a technology-based company with a focused, strategic plan to leverage the value of our intellectual property in order to maximize oil production recovery operations, as well as provide additional solutions for environmental applications.
ON BEHALF OF THE BOARD OF DIRECTORS
WAVEFRONT ENERGY AND ENVIRONMENTAL SERVICES INC.
“D. Brad Paterson” (signed)
D. Brad Paterson, CFO & Director
Certain statements contained herein regarding the Company and its operations constitute “forward-looking statements” within the meaning of the United Sates Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plan, objectives, assumptions or expectations or future performance, are “forward-looking statements”. 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. The Company expressly disclaims any obligation to up-date any “forward-looking statements”.
————————————————————————- THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES THE CONTENTS OF
THIS RELEASE WHICH WAS PREPARED SOLELY AT THE DISCRETION OF MANAGEMENT
For further information
D. Brad Paterson, CFO, (780) 486-2222 x224 Tel, email@example.com
Source: Wavefront Energy and Environmental Services Inc.