Wavefront Energy & Environmental Services Inc. announces third quarter results



    Further Production Improvement Seen in Alberta Powerwave Project

    TSX-V: WEE
    Pink Sheets:   WEESF

    EDMONTON, July 30 /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 third quarter ended May 31, 2008.
    During the nine month reporting period Wavefront has made significant
strides in showcasing the efficacy of both Powerwave and Primawave in the
energy and environmental sectors respectively. The push of our game changing
injection process, Powerwave, has resulted in a growing list of clients who
are looking to maximize oil recovery factor and extend field life.
    For the Alberta Powerwave project first announced June 27, 2008, prior to
the installation of Powerwave in the three waterflood patterns where it is
employed, production levels were on a steady decline of approximately 2.3% per
month. The production level in December 2006 was approximately 164 bopd
(26.07 m(3)/d) and declining to a value of 135 bopd (21.46 m(3)/d) at the time
of the Powerwave installations in September 2007. In the ensuing six months of
Powerwave enhanced injection ending May 2008, production levels had increased
to approximately 220 bopd (34.98 m(3)/d). Assuming the injection patterns had
continued on their natural decline of 2.3% per month (without Powerwave)
during the same six month period it is estimated that the production levels
would have decreased to 120 bopd (19.11 m(3)/d).
    Wavefront President and CEO, Brett Davidson stated, "The Alberta
Powerwave results are very compelling and unequivocally demonstrate the
benefits and impact the process can have at maximizing recovery factor and
extending field life. The Alberta client remains committed to installing
multiply systems in the field to gain further upside potential. In the coming
weeks and months Wavefront fully anticipates the entirety of results we are
amassing from all locations to be pivotal in global acceptance of Powerwave,
equating to a sizable number of units being installed."
    Revenues for the nine months ended February 29, 2008 were $1,311,113, an
increase of $241,698 from the revenues recognized in the corresponding period
of 2007 of $1,069,415. The increase in revenue is primarily a result of the
acquisition of Wavefront Sand Pumps & Rentals Ltd and increased interest
revenue. The Corporation also recognized production revenue, exclusive of
operator fees, of $120,164 (2007 - $54,323) related to the Rogers County
venture and Rodney South venture, and interest income of $319,147 (2007 -
$277,589).
    The net loss for the nine months ended May 31, 2008 was $3,341,583 ($0.06
per share), compared to $3,115,549 ($0.07 per share) in 2007. The
Corporation's operating expenses through the nine month period were
$4,416,755, an increase of $1,503,887 incurred for the same period of last
year. The operating expense increase was primarily from:

    
    -   Amortization, depreciation, depletion and accretion expense increase
        by $385,343, which relates to increased Powerwave and Primawave
        systems, and the amortization of the Greentree definite life
        intangible asset that amounted to $112,622;

    -   General and administrative expenses increased by $333,364 due to
        increased wage, office, vehicle, and repair and maintenance expenses.

    -   Selling, marketing and travel expenses increased by $265,882, which
        relates to increased activity in securing of Powerwave projects
        across North America. Also included in the cost category are costs
        totalling $99,458 related to pilot Powerwave projects in Alberta,
        Saskatchewan and Pennsylvania that will start to generate revenue
        shortly;

    -   Research and development expenses increased by $255,259. Included in
        the current period's expenses are $252,412 of costs that were
        previously included in assets under construction; and

    -   Direct costs increased by $201,687, which relates to the nature of
        the business associated with the rental and sale of associated pumps
        and services in the heavy oil sector versus a product mix with a
        heavier weighting towards the licensing of Powerwave and Primawave.
    

    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 United State's subsidiary, and
decreases in the write-down of property, plant and equipment. During the nine
month reporting period Wavefront invested $808,356 in property, plant and
equipment and $282,321 in intangible assets.
    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 May
31, 2008, which have been filed on SEDAR.
    In the environmental sector Wavefront is buoyed by the progress Primawave
is achieving in the marketplace. The process has been utilized by several of
the largest United States environmental consulting firms and service
contractors to great accolades.
    "Primawave and the associated Hornet tool represent the first truly new
innovative technology for the delivery of treatment fluids in the
environmental sector in the past ten years", commented Mr. Pat Hicks, Ph.D.,
Technical Director of Zebra Environmental, a specialized environmental
contacting company based in Lynbrook, NY. "Zebra and its clients have
successfully used Primawave in challenging subsurface environments where
conventional methods have proven ill-effective. There is no question Primawave
will be in great demand in the environmental marketplace."
    "With significant opportunity in the United States and a growing industry
worldwide, the environmental sector is of strategic importance to Wavefront's
overall business objectives to build shareholder value" stated Brett Davidson.
"Primawave has been embraced by a multi-national, integrated oil and gas
company as a key component of a remedial approach for a former refinery site
and we also continue to see favorable uptake of the process across the United
States for remedial fluid injections. To compliment Primawave and create the
environmental sectors first broad-based specialty injection provider,
Wavefront will endeavor to evaluate the acquisition of injection technologies
such as hydraulic and pneumatic fracturing."

    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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