|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 buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new data-driven world, marketplaces reign supreme while interoperability, APIs and applications deliver un...
Oct. 8, 2015 05:30 PM EDT Reads: 221
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....
Oct. 8, 2015 05:30 PM EDT Reads: 137
Mobile messaging has been a popular communication channel for more than 20 years. Finnish engineer Matti Makkonen invented the idea for SMS (Short Message Service) in 1984, making his vision a reality on December 3, 1992 by sending the first message ("Happy Christmas") from a PC to a cell phone. Since then, the technology has evolved immensely, from both a technology standpoint, and in our everyday uses for it. Originally used for person-to-person (P2P) communication, i.e., Sally sends a text message to Betty – mobile messaging now offers tremendous value to businesses for customer and empl...
Oct. 8, 2015 05:30 PM EDT Reads: 222
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, will show how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants will get the download information, scripts, and complete end-to-end walkthrough of the analysis from start to finish. Participants will also be given the pract...
Oct. 8, 2015 05:15 PM EDT Reads: 239
Today’s connected world is moving from devices towards things, what this means is that by using increasingly low cost sensors embedded in devices we can create many new use cases. These span across use cases in cities, vehicles, home, offices, factories, retail environments, worksites, health, logistics, and health. These use cases rely on ubiquitous connectivity and generate massive amounts of data at scale. These technologies enable new business opportunities, ways to optimize and automate, along with new ways to engage with users.
Oct. 8, 2015 05:15 PM EDT Reads: 116
The IoT market is on track to hit $7.1 trillion in 2020. The reality is that only a handful of companies are ready for this massive demand. There are a lot of barriers, paint points, traps, and hidden roadblocks. How can we deal with these issues and challenges? The paradigm has changed. Old-style ad-hoc trial-and-error ways will certainly lead you to the dead end. What is mandatory is an overarching and adaptive approach to effectively handle the rapid changes and exponential growth.
Oct. 8, 2015 05:00 PM EDT
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT.
Oct. 8, 2015 04:30 PM EDT Reads: 7,461
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”
Oct. 8, 2015 02:45 PM EDT Reads: 491
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud without worrying about any lock-in fears. In fact by having standard APIs for IaaS would help PaaS expl...
Oct. 8, 2015 02:30 PM EDT Reads: 642
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Valley. The program, to be aired during the peak viewership season of the year, will have a major impac...
Oct. 8, 2015 01:00 PM EDT Reads: 254
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the cloud and the best price/performance value available. ProfitBricks was named one of the coolest Clo...
Oct. 8, 2015 01:00 PM EDT Reads: 757
Organizations already struggle with the simple collection of data resulting from the proliferation of IoT, lacking the right infrastructure to manage it. They can't only rely on the cloud to collect and utilize this data because many applications still require dedicated infrastructure for security, redundancy, performance, etc. In his session at 17th Cloud Expo, Emil Sayegh, CEO of Codero Hosting, will discuss how in order to resolve the inherent issues, companies need to combine dedicated and cloud solutions through hybrid hosting – a sustainable solution for the data required to manage I...
Oct. 8, 2015 01:00 PM EDT Reads: 471
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk will be on IBM Cloudant, Apa...
Oct. 8, 2015 12:45 PM EDT Reads: 505
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, will look at different existing uses of peer-to-peer data sharing and how it can become useful in a live session to...
Oct. 8, 2015 12:00 PM EDT Reads: 602
As a company adopts a DevOps approach to software development, what are key things that both the Dev and Ops side of the business must keep in mind to ensure effective continuous delivery? In his session at DevOps Summit, Mark Hydar, Head of DevOps, Ericsson TV Platforms, will share best practices and provide helpful tips for Ops teams to adopt an open line of communication with the development side of the house to ensure success between the two sides.
Oct. 8, 2015 12:00 PM EDT Reads: 573
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
Oct. 8, 2015 11:00 AM EDT Reads: 724
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Oct. 8, 2015 07:00 AM EDT Reads: 5,865
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Oct. 8, 2015 06:00 AM EDT Reads: 756
Nowadays, a large number of sensors and devices are connected to the network. Leading-edge IoT technologies integrate various types of sensor data to create a new value for several business decision scenarios. The transparent cloud is a model of a new IoT emergence service platform. Many service providers store and access various types of sensor data in order to create and find out new business values by integrating such data.
Oct. 8, 2015 04:00 AM EDT Reads: 540
The broad selection of hardware, the rapid evolution of operating systems and the time-to-market for mobile apps has been so rapid that new challenges for developers and engineers arise every day. Security, testing, hosting, and other metrics have to be considered through the process. In his session at Big Data Expo, Walter Maguire, Chief Field Technologist, HP Big Data Group, at Hewlett-Packard, will discuss the challenges faced by developers and a composite Big Data applications builder, focusing on how to help solve the problems that developers are continuously battling.
Oct. 8, 2015 04:00 AM EDT Reads: 485