Wavefront Energy & Environmental Services (fka WEESF)

[Golden Cross]

Wavefront Energy & Environmental Services Inc. Announces Second Quarter Results
Friday April 28, 7:06 pm ET


DeepWave(SM) Dragonfly Tool Installed in Rogers County
TSX-V: WEE Pink Sheets: WEESF
EDMONTON, April 28 /CNW/ - Wavefront Energy and Environmental Services Inc., a provider and licensor of its proprietary DeepWave(SM) (http://onthewavefront.com/dw_what-is-deep-wave.htm) Technology for improved oil recovery and groundwater remediation announces its financial and operating results for the second quarter ended February 28, 2006.
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The second quarter saw increased field applications of the DeepWave(SM) technology. Halliburton, a licensee of the technology, continued to have successful applications of the technology providing further evidence as to both its efficacy and its potential applications. With an increased emphasis on DeepWave(SM) implementation coupled with a reduction in resources being allocated to integrated monitoring projects, approximately 57% of the Company's second quarter revenue was derived from DeepWave(SM). Revenue for the six months ended February 28, 2006 was $265,329 contrasted to revenue of $741,281 for the comparative period ended February 28, 2005.

Total operating expenses for the period ended February 28, 2006 were $1,026,377 versus $970,501 for the comparative period in 2005. The increased operating expenses of $55,867, were primarily due to increases in wages expense of $126,902, travel and promotion expenses of $32,245, listing and public company fees of $17,272, and professional fess of $11,772. As well the operating cost included $153,761 in stock option expenses. Off-setting these increases were decreases in research and development expenses of $62,444, interest expense of $44,706 and consultant expenses of $42,670.

The Company's consolidated net loss for the six months ended February 28, 2006 was $925,221 or $0.03 per share compared to a consolidated net loss for February 28, 2005 of $760,281, or $0.03 per share.

As at February 28, 2006, current assets totaled $10,078,171 as compared to $278,093 at August 31, 2005. The Company had working capital of $9,412,732 for the reporting period as compared to a working capital deficit of $1,237,260 at August 31, 2005. The increase in working capital is a result of closing two non-brokered private placements and the exercise of convertible securities. Total assets have increased to $11,108,846 from $932,567, at August 31, 2005, principally due to increases in cash, accounts receivable and capital assets related to DeepWave(SM).

Management expects the financial results to move towards profitability as oil production revenues increase. Development expenses will continue at Rogers County to meet the exploitation plan. In addition, as Halliburton continues global marketing of DeepWave(SM) it is anticipated that licensing royalties will continue to grow.

The above financial highlights should be read in conjunction with the unaudited consolidated financial statements and management discussion and analysis of results for the Company's most recently completed quarter, ended February 28, 2006, which have been filed of SEDAR.

The development of mineral property interests continues to be the cornerstone of the Company's strategy in showcasing DeepWave(SM). To this end the Company is also pleased to announce that the first DeepWave(SM) Dragonfly tool has been deployed in a water injector in Rogers County, OK. The Dragonfly tool, so named for its speed of operation, provides the Company a state-of-the-art device to implement DeepWave(SM) over the broadest spectrum of reservoirs. The development of the Dragonfly provides the ability to stimulate reservoirs such as those with extremely low flow characteristics which contain abundant amounts of oil and were problematic to produce. The Dragonfly tool significantly increases opportunities for the Company and its licensed providers to implement the technology over the broadest spectrum of reservoir conditions. In Management's opinion it is the continued development and installation of tools such as the Dragonfly and those under current design with Halliburton that will allow the Company to maximize the value proposition of the technology while building shareholder value.

It is anticipated that with the installation of the Dragonfly tool at Rogers County improvements in water injectivity will initially occur giving rise to production related results in the eight offsetting wells nearest the injection point. Management looks forward to providing a market update on results as they are received.

About Wavefront Energy and Environmental Services Inc.

Wavefront develops, markets, and licenses proprietary technologies in the energy and environmental sectors. The Company's DeepWave(SM) Technology for fluid flow optimization has been demonstrated to increase oil recovery. Within the environmental sector, DeepWave(SM) Technology accelerates contaminant recovery and improves in-ground treatment of groundwater contaminants thereby reducing liabilities and restoring the site to its natural state more rapidly.


ON BEHALF OF THE BOARD OF DIRECTORS

WAVEFRONT ENERGY AND ENVIRONMENTAL SERVICES INC.

"D. Brad Paterson" (signed)
D. Brad Paterson, CFO & Director


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