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Jim Letourneau's Blog

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Game Changing Petroleum Technologies Update

Wavefront 6 month chartWe've been following the ups and downs of Wavefront Technology Solutions (WEE.V) for over 4 years now. While we've never doubted the technology, it has been interesting to watch the rate of uptake by the oil business. To put it mildly, it has been a bit slower than expected.

However, one client has been using 3 Powerwave systems for 24 months. These 3 injection systems influenced 16 production wells. This has led to  a 68-per-cent drop in oil production decline rate, a 240-per-cent increase in oil cut (proportion of oil per barrel of produced fluid) and more than 51,700 barrels of incremental oil. It doesn't get any better in a mature oil field.

Wavefront and their client agreed to amend the existing three-system agreement to include two additional locations, where Powerwave can improve the performance of existing waterfloods. Under the terms of the amended agreement, Wavefront will initially provide a minimum of 35 to 50 Powerwave systems, with approximately two-thirds of those systems slated for the existing Eastern Alberta operation.

According to Wavefront's president, Brett Davidson,  the larger rollout of Powerwave with the Eastern Alberta client sends a strong signal to big and small energy producers that Powerwave can get more oil out of their existing fields. Wavefront has long maintained that Powerwave is an operator's best option for fluid injection in secondary and tertiary oil recovery strategies. The Eastern Alberta results clearly support this position.

Combined with recent news from PEMEX, it looks like the oil industry is starting to pay attention. Wavefront is tapping into an extremely large market. We've been talking about the coming boom in improved oil recovery for several years and continue to believe that Wavefront is the best way to play the theme.