Wavefront Completes Intellectual Property Acquisition of Midland, Texas Based Vortech Inc.
Now - Marketwire via Comtex
1 days 5 hours 6 minutes ago - Marketwire
Wavefront Technology Solutions Inc. ("Wavefront" or the "Corporation") (TSX VENTURE: WEE), the leader in fluid injection optimization for improved performance and profitability in the oil and environmental sectors, is pleased to announce it has completed the acquisition (the "Acquisition") of the intellectual property of Midland, Texas based Vortech Inc., an arm's length, privately held company owned and operated by Mr. Rex Dodd. The Acquisition brings to Wavefront technology and qualified people who have developed a successful presence in an important market with an active customer base.
Vortech has been in operation since 1997 as an oil field service provider, operating primarily in Texas and California. Vortech offers rental of down-hole pulsating jet tools used for cleaning up well bore damage, stimulation of production or injection wells, and improving the drilling rate of penetration of drill bits.
The Acquisition provides complementary pulsating technology and associated intellectual property patents. Vortech's tools produce significantly higher frequency fluid pressure waves than Powerwave devices. Powerwave devices are designed to improve distribution and achieve deep penetration of fluid into the reservoir, while Vortech's devices have marginal control over fluid distribution in the reservoir and are better suited to remove near wellbore impediments and improve drilling operations. The two approaches broaden Wavefront's fluid injection technology portfolio and capabilities. Key technologies acquired through the $4 Million United States Dollars (US $4,000,000) cash Acquisition include:
-- Pulsating Jet Tool (PJT). The PJT can be run on coil tubing or
conventional tubing. It can be used in tubing, cased hole, and open hole
wells. A horizontal fluid vortex is formed inside the PJT, producing a
pulsating fluid upon exiting the tip. The PJT effectively cleans up the
wellbore and stimulates the reservoir, all in one run.
-- Self Adjusting Nozzle (SAN) Tool. The SAN can be run on coil tubing or
conventional tubing. It can be used in tubing, cased hole, liners,
screens and open hole wells. The SAN is able to adjust its pulsating
fluid from multiple ports or to a single port depending on what is
encountered down hole. For example, if the SAN encounters hard scale or
a blockage, the tool will collapse and shut off the back and side ports
to direct greater energy toward the front port. As the nozzle eliminates
the hard scale or blockage the SAN hydraulically reverts back to a
multiple port configuration.
-- Pulsating Bit Sub Tool (PBS). The PBS is positioned in the drill string
directly above the bit. A horizontal fluid vortex is formed inside the
bit, producing a pulsating fluid upon exiting the bit. Increased
drilling rates of penetration are achieved from a higher impact pressure
created by the pulsating jet stream. The PBS assists in the break-up of
hard brittle material as well as enhancing the cleaning of debris from
the bit face and hole bottom. The Acquisition is viewed to be a positive growth opportunity and further position Wavefront as the leader in differential fluid flow technology. These opportunities include:
-- Potential to increase Wavefront's current revenue stream by expanding
the geographical marketing extent of the Vortech stimulation approach
including an immediate opportunity in the Western Canadian Sedimentary
-- Devices that allow entry to complex well completions that otherwise
cannot be accessed with current Powerwave equipment for well stimulation
-- The PJT will allow Wavefront to further integrate the benefits of fluid
pulsing with Wavefront's Shark Pump product, thereby potentially
expanding its market potential.
-- A suite of tools that can be used in certain environmental groundwater
-- Entrance of Wavefront into the global drilling and completions market
with the addition of the PBS. As all drilling operations utilize some
form of bit sub there is a large potential global market for the PBS.
Vortech's management reported unaudited, consolidated revenue of US $736,781 for the nine (9) months ended September 30, 2011. For the period ended December 31, 2007 to September 30, 2011 Vortech's management reported, unaudited, consolidated average annual revenue of US $1,125,001. Concurrent with the Acquisition, Wavefront extended employment offers to all Vortech personnel and is moving quickly to establish a new office and warehouse in Midland, Texas managed by Mr. Dodd. The addition of Mr. Dodd and his experienced and respected team provides Wavefront with:
-- Instantaneous Wavefront presence in the West and East Texas market with
the expectation to grow Powerwave sales; and,
-- Contact with sixty four (64) companies and the opportunity to continue
to provide cost-effective solutions to established clients.
"We are very pleased to have completed the strategic acquisition of Vortech's proven suite of technology and the addition of Rex Dodd and his team to Wavefront", said Wavefront President and CEO, Brett Davidson. "Vortech's fluid pulsing tools will further cement Wavefront's position as leaders in differentiated fluid flow approaches for well stimulation and flooding applications to maximize oil recovery. We will continue to evaluate companies and technologies that supplement Wavefront's business model and we will always be prudent and disciplined before we invest."
"Wavefront is establishing a global network of distributors to serve the growing market for cost-effective solutions to increase oil recovery," said Vortech President Rex Dodd. "With Vortech added to the equation, Wavefront can provide pulsating technology from drilling all the way through completion and production. We are glad to be part of the Wavefront team, and to be building leading edge production and drilling solutions together with pulsating technologies."
ON BEHALF OF THE BOARD OF DIRECTORS
WAVEFRONT TECHNOLOGY SOLUTIONS INC.
D. Brad Paterson, CFO & Director
Wavefront is a technology based, world leader in fluid injection technology for improved/enhanced oil recovery and groundwater restoration. Wavefront publicly trades on the TSX Venture Exchange under the symbol WEE and 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.
Wavefront Technology Solutions Inc.
President and CEO
Wavefront Technology Solutions Inc.
D. Brad Paterson
CFO & Director
SOURCE: Wavefront Technology Solutions Inc.