Powerwave - Increasing the Size of the Prize

WEE
TSX.V
onthewavefront.com
Increasing the Size
of the Prize
Revitalizing Waterfloods and Adding Reserve Barrels to Mature Operations

Disclaimer
This presentation may contain forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, anticipations, expectations, opinions, forecasts, projections, guidance or other similar statements that are not statements of fact. Although Wavefront believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and may be based on assumptions and data provided by arms-length parties, which is believed to be reliable, but is in no way assured; which could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. These risks include, but are not limited to: the risks associated with the results of Wavefront’s technology when applied to a particular oil well or field potentially not being equal or similar to those when applied to a different oil well or field, the oil and gas industry (e.g. operational risks in development, exploration and production which may impact production volumes; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Wavefront’s forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this corporate presentation are made as of the date hereof and Wavefront undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
This presentation does not constitute an offer to sell to, or a solicitation of an offer to buy, from anyone in any jurisdiction.

ACTION
Pulse valve closed
Pulse valve opens
Energy released by tool
Fluid acceleration
Elastic deformation of matrix
More uniform injection
REACTION
Powerwave (PW) Mechanisms
Energy stored in tubing
Stored energy released
Fluid acceleration
Elastic deformation of matrix
More uniform injection
Increased offset production; increased oil cut; and, greater reserves potential

Technology Expectations
Based on historical data provided by clients that may not be indicative of future results

stranded oil
swept oil
The Problem: Fluid Distribution
Injected fluids (water, chemical, polymers, CO2, etc) tend to find the path of least resistance through porous media which results in low recovery factors.

Powerwave Injection
Conventional Injection
139 s
139 s
Oil
Oil
Water
Water
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
The Solution: Pulsed Injection
Injection Optimization for Enhanced Fluid Distribution
Powerwave increases oil recovery by two main mechanisms:
Overcoming path of least resistance: increased finger density
Lower residual oil saturation caused by fluid momentum breaking up residual oil globules and allowing them to be produced.

Producers
Injector
Producers
Powerwave Fee vs. Production Requirements
Analysis based on a Powerwave rental charge of $3,000/month for a 5-spot production pattern having one injector and 4 producers

Powerwave Financial Benefit
Based on historical data provided by clients that may not be indicative of future results

OPEX Benefit of Powerwave
at TriAxon Harmattan
25
$22.00
$5.15
OPEX savings
20
15
$16.85 new OPEX
10
$8.03
5
0
PW
cost/boe
Base
OPEX
PW-based
OPEX
Based on historical data provided by TriAxon that may not be indicative of future results

Powerwave Wireline Installation
pulsation dampener
Injection fluid supply
wellhead
casing
packer
Landing
nipple
Lock set in Landing
nipple
wireline entry guide
Spacing tube
Perforated interval
Powerwave tool
Detail of landing nipple pre tool installation.
Detail of landing nipple with lock and tool set.
Typical Installation Cost:
$12,000 to $15,000
Optimization:
Acoustic sensors at well head
Based on historical data provided by clients that may not be indicative of future costs

pressure
sensor
Tubing String Detail
pulsation dampener
controller
fluid
supply
wellhead
packer
flow
switch
casing
flow
meter
tubing
control line
accumulator
Powerwave tool water discharge
Powerwave Tubing Installation
Typical Installation Cost:
$25,000 to $40,000
Optimization:
Computer controlled
Based on historical data provided by clients that may not be indicative of future costs

Geological and Well Settings

Well 8
Reservoir Properties:
h = 3.5 – 5 m
k = 150 – 500 mD
φ = 29 – 33%
Oil = 17 – 20 °API
Inj. 1
Well 2
Well 1
Inj. 2
h ~ 5 m (16 ft)
k = 150-500 mD
φ = 29-33%
Oil = 17-20 °API
Well 3
Powerwave 1
Powerwave Pilot Area
Inj. 3
Well 7
Well 4
Well 6
Inj. 4
Inj. 6
Inj. 7
Well 5
S/I
Pattern 1
Inj. 5
Inj. 8
Well 12
Powerwave 2
Pattern 2
S/I
Well 11
Inj. 9
Pattern 3
Well 9
Well 10
S/I
Inj. 10
Powerwave 3
Well 17
Well 13
Legend
27 Nov 07
Well 14
Powerwave injector
Inj. 13
26 Nov 07
Influencing injector
Inj. 11
Well 16
Well 15
Pattern Producer
Offset Producer
Inj. 12
Wainwright Project 1

- Overall Powerwave Performance -
Powerwave tools re-started
Operational interruption of Powerwave tools
Production data provided by client and charted by Wavefront for client review

- Oil Cut Benefit -

Coleville Saskatchewan Waterflood
Pattern 1
Pattern 2
Pattern 3
Pattern 4
Legend
Powerwave injector
New injector
Pattern Producer
Offset Producer
h ~ 12 m (38 ft)
k = 50-1,000 mD
φ = 24%
Oil = 12-14 °API

- Oil Cut Benefit -

Pattern 1
Pattern 2
Pattern 3
6
5
Pattern 4
Pattern 5
Legend
4
Powerwave injector
New injector
Pattern Producer
Offset Producer
Abandoned Gas Well
Abandoned Oil Well Abandoned Dry Well
Suspended Well
1
2
3
kilometers
0.5
0
miles
0
0.3
TriAxon Central Alberta Waterflood
h ~ 5 m (16 ft)
k = 1-40 mD
φ = 9%
Oil = 37 °API

- Oil Cut Benefit -

Pattern 1
Pattern 2
Dragonfly
Voyageur
Legend
Pattern 3
Powerwave injector
New injector
Pattern Producer
Offset Producer
Abandoned Gas Well
Suspended Well
Pattern 4
Taber Alberta Waterflood
Pattern 1
Pattern 2
Pattern 3
Pattern 4
Inj 2
Inj 5
Well 1
Well 6
Well 5
Inj 1
Well 10
Well 7
Well 4
Well 2
Well 8
Well 9
Well 11
Well 3
Well 16
Well 12
Well 15
Well 17
Voyageur Dragonfly
Well 13
Well 14
Well 18
Dragonfly
Well 20
Inj 6
Well 19
Inj 7

- Oil Cut Benefit -

Chauvin Alberta Waterflood
Area 2
Pattern 1
Pattern 2
Pattern 3
Area 1
Pattern 4
Pattern 5
3
1
Legend
4
Powerwave injector
New injector
Pattern Producer
Offset Producer
Abandoned Gas Well
Suspended Well
2
5
0.5
0.5
kilometers
kilometers
0
0
0
0
miles
miles
0.3
0.3

- Oil Cut Benefit -

Powerwave Summary
A Cost Effective Solution for Enhancing Water and CO2 Floods
Indeterminate Result
other activities mask Powerwave result
7%
No Result
wrong tool; poor tool placement
4%
3%
86%
Resounding Success
significant commercial benefit
Technical Success
production benefit seen;
neutral commercial benefit
Powerwave Performance

Wavefront Contact Information
Brett Davidson
President and CEO
Wavefront Technology Solutions Inc.
Edmonton: +1 780 486 2222 ext.222
Calgary: +1 403 265 2023
Mobile: +1 519 841 2273
Email: brettd@onthewavefront.com

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Powerwave - Increasing the Size of the Prize

by Jim Letourneau

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