|By Marketwired .||
|December 21, 2012 05:13 PM EST||
EDMONTON, ALBERTA -- (Marketwire) -- 12/21/12 -- Wavefront Technology Solutions Inc. (Wavefront or the Corporation) (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 year ended August 31, 2012.
Wavefront's strategic value proposition is underpinned with 20 granted and 29 patents pending based on differentiated fluid flow technology. Marketed under the brand names, "Powerwave" and "Primawave", the injection methodologies improve distribution of liquids in the ground.
Powerwave has been proven to be an effective method of: achieving mature field revitalization, increasing well productivity following well stimulation, and improving the rate of penetration of drilling extended reach wells. Primawave has been shown to substantially improve the distribution of fluids in the subsurface to effectively treat contaminants and has been verified as an environmental remedial strategy by Environment and Industry Canada.
Wavefront's business plan for enhancing shareholder value includes:
i. Licensing of its proprietary technologies and products, underpinned by a high margin recurring revenue model. ii. Leveraging of its proprietary technologies and products through strategic service company alliances, both in the energy and environmental sectors.
Over the past calendar year we have significantly broadened the applications for our technologies. As a result, we've reflected this broadening with a new marketing initiative entitled "From Bit to Last Drop". Our product portfolio now encompasses an entire life cycle of a client's post exploration operations.
From Bit to Last Drop Initiative
In Canada, the Company's initial trial of its performance drilling tools in a horizontal well resulted in an increase in Rate of Penetration ("ROP") in excess of 20% over previously drilled wells in the area. This result indicates a high potential exists for materially reducing an Operators drilling costs, without adding additional risk. Daily rental rates for the Company's performance drilling tools are being targeted from $2,500 to $3,500 per day.
The well stimulation market is in excess of $1 billion annually as virtually all production and injection wells periodically require some form of stimulation to enhance production or injection(1). The Company provides the mechanism to more effectively distribute injected fluids into the reservoir matrix effectively contacting both height and length which contributes a larger region of treatment providing subsequent longer term benefits for production and injection wells. The Company has seen increased uptake of its Powerwave stimulation tools in the United States, Canada, and Latin and South America. Wavefront will continue to focus on expanding this positive trend.
Mature Field Revitalization
Extensively analyzing our results over extended periods of time, we have concluded that Powerwave is universally applicable to all reservoirs and it can be implemented at any point during secondary (waterflooding) and tertiary (CO2, polymer, surfactant) recovery projects. We have learned that the sales cycle is relatively long and that we needed more flexibility in the form of Powerwave tool systems. For example, the Company has developed a new surface pulsing system designed for all well configurations and all reservoir types.
To support our conclusion, a recent independent evaluation of Powerwave results was undertaken by Gaffney-Cline and Associates, a subsidiary of Baker Hughes. The study analysed 5 fields involving 77 Powerwave-driven water injector installations and focused on publicly reported production and injection data. Overall, an increase in Estimated Ultimate Recovery ("EUR") from 0.7% to 7.4% was identified, with an average EUR of 2.56%.
Mature Field Revitalization has been a primary focus of the Company for the past several years and we have made in-roads around the globe. Worldwide, there are approximately 250,000 wells used in IOR/EOR applications(2). In Wavefront's mature field revitalization initiative recurring revenue stems from longer, fixed term agreements of a 12-month minimum duration which are subject to extension beyond this period. During the fixed term the Company collects a monthly license/rental fee from the client. Target monthly fees range from $3,000 to $6,000 per month per tool but in certain cases the Company has applied discounts for initial field trials or large orders. Also associated with the fixed term agreements is revenue generated through the installation of the Powerwave systems consisting of human resource time, ancillary equipment, travel, etc.
The financial highlights for fiscal 2012 include:
-- Total revenues amounted to $5,632,001, a 41.1% increase or $1,640,377 over the comparative period that reported total revenues of $3,991,624. -- Fourth quarter revenues (i.e., three months ended August 31, 2012) amounted to $1,729,034, which was an increase of $60,691 or 53.5% increase in gross revenues over gross revenue for the comparative quarter ending August 31, 2011. -- Revenues for the year ended August 31, 2012 for Powerwave and Primawave approximated $4,266,742 or 75.8% of revenues; whereas in the comparative reporting period, Powerwave and Primawave approximated $2,557,100 or 64.1%. -- Revenue attributed only to Powerwave product lines were $4,022,952, an increase of $1,727,733 or 75.3% over revenues in the comparative period of $2,295,219. The Powerwave product line revenues can then be broken into short-term projects involving well stimulations and long-term projects related to using Wavefront's technology to enhance secondary oil recovery in waterflood or CO2 flooding applications. i. For fiscal 2012, the total revenue of long-term Powerwave projects related to secondary and tertiary oil recovery involving either waterflooding or CO2 flooding totalled $2,968,134, an increase of $764,782 or 34.7%, compared to $2,203,352 in the comparative period. ii. For fiscal 2012 Powerwave revenues related to well stimulations totalled $1,054,818, an increase of $962,951 or 1,048%, compared to $91,867 in the comparative period. It is believed that Powerwave well stimulations may lead to secondary oil recovery applications as client companies become more familiar with the technologies and can obtain and validate their own data related to Powerwave.
To see the image associated with this release, please select the following link:
-- The basic and diluted net for the year ended August 31, 2012 increased by $173,517 to $4,648,731 ($0.056 per share), compared to $4,475,215 ($0.054 per share) in 2011. -- Total current assets decreased by $8,398,192 to $17,673,667 from the prior year end. Of the net decrease, $4,083,231 relates to the acquisition of the Vortech patents, $1,774,716 relates to the acquisition of additional Powerwave tools and $2,931,269 was used to fund operations.
The above financial highlights should be read in conjunction with the audited consolidated financial statements and management discussion and analysis of results for Wavefront for the year ended August 31, 2012, which were filed on SEDAR on December 20, 2012.
The following key highlights and initiatives occurred in 2012 fiscal year:
-- Completed installation of Powerwave systems with Petroleum Development Oman in Oman. -- Completed installation of Powerwave systems with Pluspetrol in Argentina. -- Received confirmation of a 28-well expansion with the Company' Eastern Alberta client. Installation of the tools will continue into the new calendar year. -- Entered into a contract with Pan American Energy ("PAE") to implement Powerwave in their production block: Las Flores Norte, in their Cerro Dragon field, in Argentina. PAE is owned by BP Company (60%), and Bridas Corporation (40%). -- Entered into an approximate $1.25 million contract with Petrobras Brazil to implement Powerwave in the Petrobras operated on-shore oil field known as TBC near Aracaju, Brazil. Installations were slated to commence in the fall of 2012 however these have now been delayed to the new calendar year. -- With Weatherford, under contract from Pemex, successfully completed Powerwave stimulations at the Pemex operated Chicontepec field in Mexico. The initial stimulation success has lead to further uptake of the Powerwave stimulation in Mexico. -- Completed the purchase of intangible assets from Vortech adding complementary pulsating technology and associated intellectual property patents. -- Commenced trading on the OTC market's tier, OTCQX International. -- The Company completed development of a Powerwave modular rotary pulsing system known as the "Man-of-War" that is driven by a rotary topside drive. The modular component allows for incremental 1-metre sections to be added permitting an increasing length of perforated interval to be stimulated. A key advantage of the Man-of-War includes the capacity to stimulate the entire perforated interval simultaneously thereby reducing the time of the stimulation. -- The Company developed a new "Staged Pulse System" ("SPS") to be integrated into conventional drill strings and/or coiled tubing to overcome operational constraints encountered in extended reach programs. The SPS creates a "variable" pressure pulse that eliminates static friction in horizontal wellbores and concurrently removes cuttings proximal to the bit which enables higher Rate of Penetration and effective wellbore cleaning.
"We are very pleased to see the growth in revenues in fiscal 2012 and maintaining a strong balance sheet," said Wavefront President and CEO Brett Davidson. "The Company continues to be a developer of leading edge fluid flow technology and we're very excited about the worldwide growth opportunities related to our initiative, "From Bit to Last Drop" which focuses on performance drilling; well stimulation; and, mature field revitalization."
ON BEHALF OF THE BOARD OF DIRECTORS
WAVEFRONT TECHNOLOGY SOLUTIONS INC.
D. Brad Paterson, CFO & Director
"From Bit to Last Drop" Wavefront endeavors to be recognized as a global leader of fluid injection technologies that maximize reservoir recovery, drilling efficiency, 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.
(1) Bcc Research, June 29, 2011
(2) United States Environmental Protection Agency, Oil and Gas Related Injection Wells
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.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Nov. 28, 2015 01:00 PM EST Reads: 469
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Nov. 28, 2015 12:00 PM EST Reads: 330
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound cha...
Nov. 28, 2015 12:00 PM EST Reads: 547
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, demonstrated examples of com...
Nov. 28, 2015 11:45 AM EST Reads: 399
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
Nov. 28, 2015 11:15 AM EST Reads: 411
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Nov. 28, 2015 11:00 AM EST Reads: 510
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Nov. 28, 2015 10:30 AM EST Reads: 308
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Nov. 28, 2015 10:00 AM EST Reads: 187
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
Nov. 28, 2015 08:45 AM EST Reads: 433
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
Nov. 28, 2015 08:45 AM EST Reads: 331
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
Nov. 28, 2015 06:00 AM EST Reads: 242
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion is moderated by me, Dana Gardner, Principal Analyst at Interarbor Solutions.
Nov. 28, 2015 05:30 AM EST Reads: 730
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Nov. 28, 2015 05:00 AM EST Reads: 359
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Nov. 28, 2015 04:00 AM EST Reads: 538
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Nov. 28, 2015 03:30 AM EST Reads: 473
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Nov. 28, 2015 03:00 AM EST Reads: 482
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
Nov. 28, 2015 03:00 AM EST Reads: 450
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...
Nov. 28, 2015 02:00 AM EST Reads: 579
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNub’s Data Stream Network.
Nov. 28, 2015 02:00 AM EST Reads: 328
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at Built.io, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...
Nov. 28, 2015 02:00 AM EST Reads: 361