Small-Cap Receives Oil Extraction License From Texas Oil Operator, Stock Continues To Break 52 Week Highs

By: AllPennyStocks.com News

September 25, 2009
The search for oil is a mysterious, and by nature, expensive proposition – fraught with all kinds of environmental and atmospheric concerns. Among those concerns, the impurities of the crude oil being pumped to the surface before the oil riggers are able to get the petroleum to a refinery, and from there, to market. Lots of cleanup work has to be done before that happens.

Enter Edmonton-based Wavefront Technologies Solutions (TSX-Venture:WEE), a company providing state-of-the-art techniques for oil well stimulation, improved oil recovery, and environmental groundwater remediation. WEE has been engaged in an aggressive plan to sell its Powerwave technology to equally aggressive oil companies, and during the latter stages of September, managed to snag itself a customer in an unnamed oil company out of Midland, Texas. The customer in question will deploy six Powerwave systems to increase oil recovery and reserves in an active waterflood.

The week before, Wavefront scored another coup by announcing that one of the top five world oil producers deployed the first of four Powerwave systems for the latter company’s Alaskan operations. Again, the customer was unidentified.

Powerwave, says WEE, is an injection technology that can increase production and reserves from existing oil fields – “the Holy Grail for energy producers”, the company website claims, “as reserves become harder to find.”

Powerwave generates a fluid pressure pulse more flexible than its competitors; this pressure pulse moves fluid into and out of affected areas more effectively, resulting in increasing oil recovery from production operations.

Recent results have shown that Powerwave can increase oil production rates by over 80 per cent as well as reducing overall production decline by more than 2% per month. These results signal a significant increase in recoverable reserves and Wavefront is confident Powerwave will increase ultimate oil recovery by 10 to 20%.

“Far more effective than traditional fluid injection processes,” the firm goes on to state, “our dynamic injection approach is ideal for oil recovery revitalization and in the cleanup of shallow ground contamination.”

Moreover, WEE has another technology called Primawave up its sleeve, to rid hazardous chemicals of contaminated groundwater, for which the company has gotten encouragement from Environment Canada and Industry Canada that Primawave is on the right track as to its prowess and cost-effectiveness.

The news of the Midland buy sent the stock price spiking more than 24% in one day on September 24th, up around the $1.55 mark, a new 52-week closing high for WEE. Last November, when the mood of the market darkened and raw nerves were exposed, the price hit a low of 40 cents. Even though oil prices have been volatile, this is one company servicing the oil industry that only seems to be pointing upward, and deserves a look before things get more expensive for small cap investors.

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