UE CITY, TX -- (MARKET WIRE) -- 08/03/11 -- ERF Wireless (OTCBB: ERFW), a leading provider of enterprise-class wireless broadband products and services, announced today that it has filed the formal arbitration documentation to conduct arbitration of a major contractual dispute between ERF Wireless and Schlumberger Technology Corporation, a subsidiary of Schlumberger, Ltd. (NYSE: SLB). This dispute has arisen regarding two exclusive reseller contracts between Schlumberger and ERF Wireless signed January 16, 2009, and still continuing until January 15, 2012, unless cancelled due to a default by either party or extended under the provisions of the contracts. Neither Schlumberger nor ERF Wireless cancelled the contract due to default of the other party. The arbitration now commenced involves one of these contracts with the GCS Division of Schlumberger for all of the U.S. including the Gulf of Mexico. A second and similar contract for all of Canada with their Canadian Division may be the subject of a separate proceeding. The nature of the dispute includes but is not limited to the guaranteed revenue to ERF Wireless under provisions of the contract. In that regard, ERF Wireless has already invoiced Schlumberger for many millions of dollars that have been earned under the terms of the contract. Schlumberger disputes contractual liability. ERF Wireless has not been able to collect the funds represented by these invoices or report this revenue to its stockholders in its SEC financials because of public company accounting rules treatment of disputed revenue. In spite of this limitation, ERF Wireless has continued to expand its wireless network coverage in most North American oil and gas regions, as required by the contracts, and to increase its market presence by servicing industry customers that were originally exempted from the exclusivity provisions of the contracts.
The Company expects to conduct the arbitration process in Houston Texas. The ruling in the arbitration will be binding, and the arbitration is expected to be completed by year end.
