Wavefront Enters Into New Two Year General Services Agreement With a Houston-Based Oil and Gas Producer
US $4 Million Base Compensation Guaranteed Over Two Year Term of the Agreement
EDMONTON, Alta., Sept. 09, 2019 (GLOBE NEWSWIRE) -- Wavefront Technology Solutions Inc. (Wavefront or the Company, TSX-V: WEE; OTCQX: WFTSF) a global leader in the advancement of fluid injection technology for oil and gas well stimulation and Improved/Enhanced Oil Recovery (“IOR/EOR”) is pleased to announce that the Company’s USA subsidiary has entered into a two (2) year General Services Agreement (the “Agreement”) with a Houston based oil and gas producer (the “Client”).
Under the terms of the Agreement, the Client and Wavefront have agreed to a minimum guaranteed aggregate amount of US $4 million over the two (2) year period where the Company will provide Powerwave tools and field services (the “Services”) to the Client at its request in various locations throughout the intercontinental United States of America.
The Company accounts for its revenue contracts using the percentage of completion method, which is based on the time of the tool rental and the underlying technology’s licensing term. Wavefront will invoice US $500,000 and revenues will be recognized during each of the Company’s quarters over the term of the Agreement. Any Powerwave Services in excess of the quarterly guaranteed minimum would be recognized when that Powerwave Services job is known. In providing its tools and technology directly to the oil and gas producer, Wavefront will recognize revenue in the gross amount to be received.
“Wavefront has earned a solid reputation for generating outstanding results for clients throughout the globe, and this new agreement is a welcomed addition to our growing of the Company’s North American operations,” says Wavefront President and CEO Brett Davidson. “We are confident that our game-changing Powerwave technology will continue to deliver the results our customers need to contribute to their production, and their bottom-line results.”
ON BEHALF OF THE BOARD OF DIRECTORS
WAVEFRONT TECHNOLOGY SOLUTIONS INC.
“D. Brad Paterson” (signed)
D. Brad Paterson, CFO & Director
About Wavefront:
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 on the OTCQX under the symbol WFTSF. The Company's website is www.onthewavefront.com.
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.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
