Powerwave - Increasing the Size of the Prize

onthewavefront.comWEE

TS

X.V

Revitalizing Waterfloods and Adding Reserve Barrels to Mature Operations

Increasing the Sizeof the Prize

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

• 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

Powerwave (PW) Mechanisms

Technology Expectations

Timeframe Result

4 to 12 months Increased pattern well production from 25% to 200%

> 12 months Increased pattern production > 25%

Long Term Reduced decline rate and increased recovery factor of 2% to 5% of OOIP

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

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.

swept oil

stranded oil

The Solution: Pulsed Injection

••••

••

••

••

139 s139 s

Powerwave Injection

••••

••

••

••

Oil

WaterOil

Water

Conventional Injection

Powerwave increases oil recovery by two main mechanisms:1. Overcoming path of least resistance: increased finger density2. Lower residual oil saturation caused by fluid momentum breaking up residual oil

globules and allowing them to be produced.

Injection Optimization for Enhanced Fluid Distribution

Producers

Injector

Producers

Analysis based on a Powerwave rental charge of $3,000/month for a 5-spot production pattern having one injector and 4 producers

Powerwave Fee vs. Production Requirements

Net RequiredBack Incremental

Production per 5-spot

($) (bopd)

25 5.9230 4.9335 4.2340 3.7045 3.2950 2.9655 2.6960 2.4765 2.28

Powerwave Financial Benefit

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

FieldMonths Installed

Base Decline

Oil Rate

Post PW Oil

Rate

PW Increase

Net Back

Net Monthly

Cash Flow

Increase

Pay-Back

ROI

(bopd) (bopd) (%) ($) ($) (months) (%)

TriAxon Harmattan 6 131.0 203.0 55.0 60.0 110,000 2 >100%

PennWest Coleville 16 92.1 142.3 54.5 33.0 36,000 11 >100%

Wainwright Project I 39 31.2 116.0 271.8 40.0 101,000 5 >100%

Chauvin Alberta 9 142.4 228.9 60.7 45.0 89,000 5 >100%

Taber Alberta 24 67.7 114.7 69.4 50.0 50,000 5 >100%

OPEX Benefit of Powerwaveat TriAxon Harmattan

25

20

15

10

5

0

$8.03

$22.00

$5.15OPEX

savings

$16.85 new

OPEX

PWcost/boe

BaseOPEX

PW-basedOPEX

Based on historical data provided by TriAxon that may not be indicative of future results

Detail of landing nipple pre tool installation.

Detail of landing nipple with lock and tool set.

Landingnipple

wireline entry guide

pulsation dampener

wellhead

Injection fluid supply

casing

packer

Perforated interval

Lock set in Landingnipple

Powerwave tool

Spacing tube

Powerwave Wireline Installation

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

Powerwave Tubing Installation

accumulator

tubing

fluidsupply

controller

wellhead

flowmeter

flowswitch

casing

packer

Tubing String Detail pulsation

dampener

control line

Powerwave tool water discharge

pressuresensorTypical 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• Sandstones, carbonates,

diatomite's, unconsolidated sands, fractured rock, clays, silts and siltstones, etc.

• 14 API to 42 API gravity oils• Vertical, deviated, horizontal • Powerwave is universally

applicable with the correct tool selection

Powerwave is effective over a wide range of porous media and well completions

Powerwave Pilot Area

Reservoir Properties:h = 3.5 – 5 mk = 150 – 500 mDφ = 29 – 33%Oil = 17 – 20 °API

Wainwright Project 1

h ~ 5 m (16 ft)k = 150-500 mDφ = 29-33%Oil = 17-20 °API

Legend

Powerwave injector

Influencing injector

Pattern Producer

Offset Producer

Well 1 Well 2

Well 3

Well 4

Well 5

Well 6

Well 7

Well 8

Well 9Well 10

Well 11

Well 13

Well 12

Well 15

Well 14

Well 16

S/I

S/I

S/I

Well 17

Powerwave 1

Powerwave 2

Powerwave 3

26 Nov 07

27 Nov 07

Inj. 1

Inj. 4

Inj. 3

Inj. 2

Inj. 7 Inj. 6

Inj. 5

Inj. 10

Inj. 9

Inj. 8

Inj. 11

Inj. 12

Inj. 13

Pattern 1

Pattern 2

Pattern 3

Eastern Alberta Powerwave Waterflood

0

50

100

150

200

250

300

350

Se

p-0

5O

ct-0

5N

ov-

05

De

c-0

5Ja

n-0

6F

eb

-06

Ma

r-0

6A

pr-

06

Ma

y-0

6Ju

n-0

6Ju

l-0

6A

ug

-06

Se

p-0

6O

ct-0

6N

ov-

06

De

c-0

6Ja

n-0

7F

eb

-07

Ma

r-0

7A

pr-

07

Ma

y-0

7Ju

n-0

7Ju

l-0

7A

ug

-07

Se

p-0

7O

ct-0

7N

ov-

07

De

c-0

7Ja

n-0

8F

eb

-08

Ma

r-0

8A

pr-

08

Ma

y-0

8Ju

n-0

8Ju

l-0

8A

ug

-08

Se

p-0

8O

ct-0

8N

ov-

08

De

c-0

8Ja

n-0

9F

eb

-09

Ma

r-0

9A

pr-

09

Ma

y-0

9Ju

n-0

9Ju

l-0

9A

ug

-09

Se

p-0

9O

ct-0

9N

ov-

09

De

c-0

9Ja

n-1

0F

eb

-10

Ma

r-1

0A

pr-

10

Ma

y-1

0Ju

n-1

0Ju

l-1

0A

ug

-10

Se

p-1

0O

ct-1

0N

ov-

10

De

c-1

0Ja

n-1

1

Oil

Ra

te (

bo

pd

) -

3 P

ow

erw

av

e P

att

ern

s

Pattern 1 Alloc Net Oil Rate Pattern 2 Alloc Net Oil Rate Pattern 3 Alloc Net Oil Rate

Base Decl.: 3.5 %/mo Exponential Decline Match Points Powerwave Decl.: 0.5 %/mo Exponential

Decline Match Points Pattern 1 Powerwave Pattern 2 Powerwave

Pattern 3 Powerwave

Wainwright Project 1- Overall Powerwave Performance -

Operational interruption of

Powerwave tools

Powerwave tools re-started

Production data provided by client and charted by Wavefront for client review

Eastern Alberta Powerwave Project Oil Cut

0

1

10

100

01

-Se

p-0

5

01

-De

c-0

5

02

-Ma

r-0

6

01

-Ju

n-0

6

01

-Se

p-0

6

01

-De

c-0

6

02

-Ma

r-0

7

02

-Ju

n-0

7

01

-Se

p-0

7

01

-De

c-0

7

02

-Ma

r-0

8

01

-Ju

n-0

8

31

-Au

g-0

8

01

-De

c-0

8

02

-Ma

r-0

9

01

-Ju

n-0

9

01

-Se

p-0

9

01

-De

c-0

9

02

-Ma

r-1

0

01

-Ju

n-1

0

01

-Se

p-1

0

01

-De

c-1

0

02

-Ma

r-1

1

02

-Ju

n-1

1

Oil

Cu

t (%

)

Project Oil Cut - 3 Patterns Project Oil Cut Decline - 3 Patterns Oil Cut Decline Match Points

Pattern 1 Powerwave Pattern 2 Powerwave Pattern 3 Powerwave

Wainwright Project 1- Oil Cut Benefit -


Pattern 1

Pattern 2

Pattern 3

Pattern 4

Legend

Powerwave injector


Pattern Producer

Offset Producer

New injector

Coleville Saskatchewan Waterfloodh ~ 12 m (38 ft)k = 50-1,000 mDφ = 24%Oil = 12-14 °API

PennWest Colville Saskatchewan Waterflood

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

No

v-0

6D

ec-

06

Jan

-07

Fe

b-0

7M

ar-

07

Ap

r-0

7M

ay-

07

Jun

-07

Jul-

07

Au

g-0

7S

ep

-07

Oct

-07

No

v-0

7D

ec-

07

Jan

-08

Fe

b-0

8M

ar-

08

Ap

r-0

8M

ay-

08

Jun

-08

Jul-

08

Au

g-0

8S

ep

-08

Oct

-08

No

v-0

8D

ec-

08

Jan

-09

Fe

b-0

9M

ar-

09

Ap

r-0

9M

ay-

09

Jun

-09

Jul-

09

Au

g-0

9S

ep

-09

Oct

-09

No

v-0

9D

ec-

09

Jan

-10

Fe

b-1

0M

ar-

10

Ap

r-1

0M

ay-

10

Jun

-10

Jul-

10

Au

g-1

0S

ep

-10

Oct

-10

No

v-1

0D

ec-

10

Jan

-11

Fe

b-1

1M

ar-

11

Ap

r-1

1

Oil

Ra

te (

bo

pd

) -

4 P

ow

erw

av

e P

att

ern

s


Pattern 4 Alloc Net Oil Rate Base Decl.: 0.8 %/mo Exponential Decline Match Points

Powerwave Decl.: 0.6 %/mo Exponential Decline Match Points Pattern 1 Powerwave


Coleville Saskatchewan Waterflood- Overall Powerwave Performance -


PennWest Colville Saskatchewan Waterflood

1

10

01

-No

v-0

6

31

-Ja

n-0

7

02

-Ma

y-0

7

01

-Au

g-0

7

01

-No

v-0

7

31

-Ja

n-0

8

01

-Ma

y-0

8

01

-Au

g-0

8

31

-Oct

-08

30

-Ja

n-0

9

02

-Ma

y-0

9

01

-Au

g-0

9

31

-Oct

-09

31

-Ja

n-1

0

02

-Ma

y-1

0

01

-Au

g-1

0

01

-No

v-1

0

31

-Ja

n-1

1

02

-Ma

y-1

1

01

-Au

g-1

1

Oil

Cu

t (%

)



Pattern 4 Powerwave

Coleville Saskatchewan Waterflood- Oil Cut Benefit -


Legend

Powerwave injector


New injector

Pattern Producer

Offset Producer

Abandoned Gas Well

Abandoned Oil Well

Abandoned Dry Well

Suspended Well

kilometers0

0

0.5

0.3miles

Pattern 1

Pattern 2

Pattern 3

Pattern 4

Pattern 5

123

4

56

TriAxon Central Alberta Waterflood

h ~ 5 m (16 ft)k = 1-40 mDφ = 9%Oil = 37 °API


0

50

100

150

200

250

300

350

Nov

-08

Dec

-08

Jan-

09

Feb

-09

Mar

-09

Apr

-09

May

-09

Jun-

09

Jul-0

9

Aug

-09

Sep

-09

Oct

-09

Nov

-09

Dec

-09

Jan-

10

Feb

-10

Mar

-10

Apr

-10

May

-10

Jun-

10

Jul-1

0

Aug

-10

Sep

-10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb

-11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Oil

Rat

e (b

op

d) -

6 P

ow

erw

ave

Pat

tern

s

Pattern 1 Alloc Net Oil Rate Pattern 2 Alloc Net Oil Rate Pattern 3 Alloc Net Oil Rate Pattern 4 Alloc Net Oil Rate Pattern 5 Alloc Net Oil Rate Pattern 6 Alloc Net Oil RateBase Decl.: 2.8 %/mo Exponential Decline Match Points Powerwave Decl.: -1.3 %/mo ExponentialDecline Match Points Pattern 1 Powerwave Pattern 2 PowerwavePattern 3 Powerwave Pattern 4 Powerwave Pattern 5 PowerwavePattern 6 Powerwave

TriAxon Central Alberta Waterflood- Overall Powerwave Performance -



10

100

01

-No

v-0

8

31

-Ja

n-0

9

02

-Ma

y-0

9

01

-Au

g-0

9

01

-No

v-0

9

31

-Ja

n-1

0

02

-Ma

y-1

0

02

-Au

g-1

0

01

-No

v-1

0

31

-Ja

n-1

1

03

-Ma

y-1

1

Oil

Cu

t (%

)




TriAxon Central Alberta Waterflood- Oil Cut Benefit -


Taber Alberta Waterflood

Well 12

Well 20 Inj 6

Well 18

Well 15

Well 16

Well 14

Well 9

Well 10

Well 6

Well 4

Well 11

Well 1

Well 2

Well 19

Inj 1

Inj 7

Inj 2

Well 5

Inj 5

Well 13

Well 3

Well 7

Legend

Powerwave injector


New injector

Pattern Producer

Offset Producer

Abandoned Gas Well

Abandoned Oil Well

Abandoned Dry Well

Suspended Well

Voyageur

Pattern 1

Pattern 2

Pattern 3

Pattern 4

DragonflyWell 8

Well 17

Pattern 1

Pattern 2

Pattern 3

Pattern 4

Dragonfly

Voyageur Dragonfly

Southern Alberta Powerwave Waterflood

0.0

50.0

100.0

150.0

200.0

250.0

Jun

-05

Se

p-0

5

De

c-0

5

Ma

r-0

6

Jun

-06

Se

p-0

6

De

c-0

6

Ma

r-0

7

Jun

-07

Se

p-0

7

De

c-0

7

Ma

r-0

8

Jun

-08

Se

p-0

8

De

c-0

8

Ma

r-0

9

Jun

-09

Se

p-0

9

De

c-0

9

Ma

r-1

0

Jun

-10

Se

p-1

0

De

c-1

0

Ma

r-1

1

Jun

-11

Oil

Ra

te (

bo

pd

) -

4 P

ow

erw

av

e P

att

ern

s


Pattern 4 Alloc Net Oil Rate Base Decl.: 1.7 %/mo Exponential Decline Match Points

Powerwave Decl.: 0.7 %/mo Exponential Decline Match Points Pattern 1 Powerwave


Taber Alberta Waterflood- Overall Powerwave Performance -


Southern Alberta Powerwave Project Oil Cut

1

10

01

-Au

g-0

4

31

-Oct

-04

30

-Ja

n-0

5

01

-Ma

y-0

5

01

-Au

g-0

5

31

-Oct

-05

30

-Ja

n-0

6

02

-Ma

y-0

6

01

-Au

g-0

6

31

-Oct

-06

31

-Ja

n-0

7

02

-Ma

y-0

7

01

-Au

g-0

7

01

-No

v-0

7

31

-Ja

n-0

8

01

-Ma

y-0

8

01

-Au

g-0

8

31

-Oct

-08

30

-Ja

n-0

9

01

-Ma

y-0

9

01

-Au

g-0

9

31

-Oct

-09

30

-Ja

n-1

0

02

-Ma

y-1

0

01

-Au

g-1

0

31

-Oct

-10

31

-Ja

n-1

1

02

-Ma

y-1

1

01

-Au

g-1

1

01

-No

v-1

1

Oil

Cu

t (%

)



Pattern 4 Powerwave

Taber Alberta Waterflood- Oil Cut Benefit -


Legend

Powerwave injector


New injector

Pattern Producer

Offset Producer

Abandoned Gas Well

Abandoned Oil Well

Abandoned Dry Well

Suspended Well

Pattern 1

Pattern 2

Pattern 3

Pattern 4

Pattern 5

kilometers0

0

0.5

0.3miles

2

1

kilometers0

0

0.5

0.3miles

Area 1

3

4

5

Area 2Chauvin Alberta Waterflood

East-Central Alberta Powerwave Waterflood

0

50

100

150

200

250

300

Jun

-08

Jul-

08

Au

g-0

8

Se

p-0

8

Oct

-08

No

v-0

8

De

c-0

8

Jan

-09

Fe

b-0

9

Ma

r-0

9

Ap

r-0

9

Ma

y-0

9

Jun

-09

Jul-

09

Au

g-0

9

Se

p-0

9

Oct

-09

No

v-0

9

De

c-0

9

Jan

-10

Fe

b-1

0

Ma

r-1

0

Ap

r-1

0

Ma

y-1

0

Jun

-10

Jul-

10

Au

g-1

0

Se

p-1

0

Oct

-10

No

v-1

0

De

c-1

0

Jan

-11

Fe

b-1

1

Ma

r-1

1

Ap

r-1

1

Ma

y-1

1

Oil

Ra

te (

bo

pd

) -

5 P

ow

erw

av

e P

att

ern

s

Pattern 1 Alloc Net Oil Rate Pattern 2 Alloc Net Oil Rate Pattern 3 Alloc Net Oil Rate Pattern 4 Alloc Net Oil Rate Pattern 5 Alloc Net Oil Rate Base Decl.: 3.2 %/mo ExponentialDecline Match Points Powerwave Decl.: 1.4 %/mo Exponential Decline Match PointsPattern 1 Powerwave Pattern 2 Powerwave Pattern 3 PowerwavePattern 4 Powerwave Pattern 5 Powerwave

Exponential

Chauvin Alberta Waterflood- Overall Powerwave Performance -


East-Central Alberta Powerwave Project Oil Cut

1

10

01

-Ju

n-0

8

31

-Au

g-0

8

30

-No

v-0

8

01

-Ma

r-0

9

01

-Ju

n-0

9

31

-Au

g-0

9

30

-No

v-0

9

02

-Ma

r-1

0

01

-Ju

n-1

0

31

-Au

g-1

0

01

-De

c-1

0

02

-Ma

r-1

1

Oil

Cu

t (%

)



Pattern 4 Powerwave Pattern 5 Powerwave

Chauvin Alberta Waterflood- Oil Cut Benefit -


3%86%

7%

4%

Technical Successproduction benefit seen;neutral commercial benefit

Resounding Successsignificant commercial benefit

Indeterminate Resultother activities mask Powerwave result

No Resultwrong tool; poor tool placement

Powerwave Performance

Powerwave SummaryA Cost Effective Solution for Enhancing Water and CO2 Floods

Wavefront Contact Information

Brett DavidsonPresident and CEOWavefront Technology Solutions Inc.Edmonton: +1 780 486 2222 ext.222Calgary: +1 403 265 2023Mobile: +1 519 841 2273Email: [email protected]