Wavefront Technology Solutions’ Patents Poised to Drive Company’s Growth in Enhanced Oil Recovery Sector
As the sole patent holder of a specific “pulsed” fluid technology to extract oil, Wavefront is rapidly growing in prominence within the secondary oil recovery sector.
Alberta (I-Newswire) September 14, 2012 - Wavefront Technology Solutions Inc., the global leader in fluid injection technologies for improved performance and profitability in the oil and gas and environmental sectors, has a champagne problem: Its strong patents are misunderstood.
As the sole patent holder of a specific “pulsed” fluid technology to extract oil, Wavefront—which is based in Edmonton, Alberta—is rapidly growing in prominence within the secondary oil recovery sector. Investors have taken notice and have bolstered the company’s balance sheet with growth capital (currently about $17 million on record and about $38 million invested through financings since 2004). The growth capital has been invested due to the company’s “Powerwave,” a patented process that pulses fluid into a dedicated injection well to maximize oil recovery by forcing water, or other Enhanced Oil Recovery (EOR) fluid, into “paths less traveled” to increase distribution and rescue bypassed oil.
Wavefront currently has a $70 million market cap, about $17 million in cash, and zero debt. The company has a very strong client base for its technology, and is working toward increasing the number of tools they have in the ground for each client. With margins up to 80 percent and a global growth strategy, investors are betting on long-term value as the company markets its value proposition. According to Gaffney Cline, a leading oil and gas consulting firm, the company has the ability to recover an average of 2.56 percent of stranded oil, which according to a BP estimate of “stranded oil reserves,” could translate into approximately $388 billion (4 billion barrels x $97.32, the price of oil in late summer).
“Wavefront charges $3,000 to $6,000 per month as a license fee to use our Powerwave process,” says CEO Brett Davidson. “The minimum contract is for one year.”
Because Wavefront’s Powerwave process increases recoverable reserves of oil, it has a favorable impact on its clients’ balance sheets. Wavefront also holds the only process patents in the world for using this specific pulsing process in wells for oil stimulation. There are about 200,000 oil injection wells in North America.
This large market size bodes well for the company’s future growth, as does the U.S. Department of Energy’s estimate that 430 billion barrels of “stranded” oil are recoverable within the nation’s borders.
About Dian Griesel Inc.
Dian Griesel Inc.
PO Box 302
Washington Depot, CT
Phone : 860-619-0177
Published On:September 14, 2012
Print Release:Print Release
If you have questions regarding information in this press release contact the company listed above. I-Newswire.com is a press release service and not the author of this press release.The information that is on or available through this site is for informational purposes only and speaks only as of the particular date or dates of that information. As some companies and PR Agencies submit their press releases once per week,month or quarter, make sure to check the official company website for accurate release dates as our site displays the I-Newswire.com press release distribution date only.We do not guarantee the accuracy or completeness of information on or available through this site, and we are not responsible for or omissions in that information or for actions taken in reliance on that information.