Wavefront Energy & Environmental Services Inc. Announces First Quarter Results



    TSX-V: WEE
    Pink Sheets:   WEESF

    www.onthewavefront.com

    EDMONTON, Jan. 29 /CNW/ - Wavefront Energy and Environmental Services
Inc. ("Wavefront"), a leader in technology development and implementation for
improved oil recovery and optimized groundwater remediation announces its
financial and operating results for the first quarter ended November 30, 2007.
    Revenues for the three months ended November 30, 2007 were $248,818, an
increase of $95,961 from the revenue recognized in the corresponding period of
November 30, 2006 of $188,857. The increase in revenue is primarily a result
of the acquisition of Wavefront Sand Pumps & Rentals Ltd. The Corporation
recognized production revenue of $23,309 (2006 - $6,395) related to the Rogers
County venture, and interest income of $52,903 (2006 - $113,550). The latter
resulting from the investment of the cash balance of private placement
proceeds from prior years.
    
    During the quarter the Corporation maintained its focus on the
commercialization of its technology as follows:

    -   Showcasing Powerwave and its affects on injection and production in a
        portion of the Rogers County, Oklahoma oilfield leases;

    -   Continuing its participation in the Greentree Gas & Oil Ltd.
        ("Greentree") farm-in agreement to further demonstrate the viability
        of Powerwave in a difficult geological setting;

    -   Using Powerwave as an add-on to Wavefront Sand Pumps & Rental's
        services in the heavy oil sector thereby generating more client data
        on the affects of the technology and increasing the number of systems
        deployed; and,

    -   Developing joint venture relationships and fostering potential
        licensees for Primawave in the environmental sector.
    

    The net loss for the three months ended November 30, 2007 was $1,018,271
($0.02 per share), compared to $1,047,805 ($0.02 per share) in 2006. The
Corporation's expenses from operations through the three month period were
$1,288,829, an increase from the $794,306 incurred for the same period of last
year. The operating expense increase was primarily from:
    
    -   Direct costs increased by $118,388, which relates to the service
        nature of the business associated with and the inclusion of Powerwave
        to the services of Wavefront Sand Pumps & Rentals to push technology
        adaptation;

    -   Research and development expenses increased by $129,468, included in
        the current period's expenses are $122,074 of costs that were
        previously included in assets under construction; and,

    -   General and administrative expenses increased by $84,196 do to
        increased wage and office expenses.
    

    Offsetting operating expense increases noted above were decreases in
stock-based compensation, the recognition of foreign currency gains associated
with the translation of the Corporation's US subsidiary, and the increase in
revenues resulting from Wavefront Sand Pumps & Rentals heavy oil services and
Powerwave and Primawave operations.
    During the three month reporting period Wavefront invested $276,902 in
property, plant and equipment and $223,349 related to the Greentree farm-in
venture.
    The above financial highlights should be read in conjunction with the
unaudited consolidated financial statements and management discussion and
analysis of results for Wavefront's most recently completed quarter, ended
November 30, 2007, which have been filed on SEDAR.
    Wavefront is pleased to announce that it has instituted a surfactant
aided Powerwave waterflood in Rogers County in a joint project with Oil Chem
Technologies ("Oil Chem") of Houston, Texas. Since 1986 Oil Chem, a world
leader in enhanced oil recovery (improved oil recovery) surfactant technology
has successfully participated in numerous surfactant based floods throughout
the globe. The addition of very low concentrations of a purpose designed
surfactant supplied by Oil Chem to the Rogers County Powerwave waterflood will
effectively work to release oil from sand grains thereby improving oil
recovery.
    Wavefront President and CEO Brett Davidson commented, "The intent of
Rogers County is to showcase the effectiveness of Powerwave, provide an
opportunity to evaluate tool designs, and demonstrate the utility of enhanced
oil recovery approaches such as surfactants when combined with Powerwave. To
this end management believes Rogers County to be extremely successful.
Powerwave tool systems have been deployed in Rogers County for approximately
24-months without mechanical failure thus demonstrating extraordinary tool
durability and performance in an industry that stresses reliability in
downhole tools. Furthermore, Powerwave in Rogers County has provided valuable
data on improved water injectivity versus standard injection practices as well
as demonstrating production enhancement. The culmination of results in Rogers
County has directly led to the recently announced projects in the Alberta,
Alaska, Saskatchewan, Pennsylvania, and a number of pending projects with
other oil companies. The project with Oil Chem is a logical extension to the
success Powerwave has had in Rogers County. The ability of Powerwave to
provide greater distribution of injected liquids acts synergistically with
surfactants to liberate oil from sand grains. Extensive laboratory research
and single well injection results validated the combination of the two
approaches to be decidedly effective in enhanced oil production and it is now
time to apply that experience on the large scale."
    Wavefront also like to announce that Greentree has reported that
Powerwave operations in the Rodney South farm-in venture are now fully
operational with early water injection results being very encouraging versus
non-Powerwave injection data. Both companies will provide a progress update as
additional injection and production data becomes available.

    About Wavefront Energy and Environmental Services Inc.

    Wavefront is a technology-based company with a focused, strategic plan to
leverage the value of our intellectual property in order to maximize oil
production recovery operations, as well as provide additional solutions for
environmental applications.

    ON BEHALF OF THE BOARD OF DIRECTORS
    WAVEFRONT ENERGY AND ENVIRONMENTAL SERVICES INC.

    "D. Brad Paterson" (signed)

    D. Brad Paterson, CFO & Director

    
             Cautionary Disclaimer - Forward-Looking Statements
             --------------------------------------------------
    

    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", "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.

    -------------------------------------------------------------------------
    THE TSX VENTURE EXCHANGE NEITHER APPROVES NOR DISAPPROVES THE
    CONTENTS OF THIS RELEASE WHICH WAS PREPARED SOLELY AT THE
    DISCRETION OF MANAGEMENT





For further information:

For further information: D. Brad Paterson, CFO, (780) 486-2222 x224 Tel,
investor.info@onthewavefront.com

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WAVEFRONT ENERGY AND ENVIRONMENTAL SERVICES INC.

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