February 27, 2006

Wavefront files legal action against U.S. firm for interfering with pilot project

Wavefront Energy and Environmental Services has launched legal action against Applied Seismic Research (ASR) of Plano, Texas, claiming that the firm interfered with Wavefront's existing and prospective business relationship with Occidental of Elk Hills (Occidental) relating to a pilot waterflood project the company was about to undertake with Occidental.

The lawsuit, filed in the U.S. district court for the eastern district of Texas, alleges that ASR made bad faith infringement statements to Occidental concerning Wavefront's technology and ASR's patents, one of which had expired, and that ASR's interference caused Occidental to cancel the pilot study, resulting in monetary harm to Wavefront. The company further claims that ASR engaged in unfair competition in violation of both U.S. and Texas law.

Wavefront is seeking unspecified compensatory and punitive damages and is asking to have ASR's patents declared invalid, unenforceable and/or not infringed by Wavefront's tools. The lawsuit also seeks a permanent injunction against ASR to prevent further acts of interference and unfair competition.

Wavefront president and CEO Brett Davidson explained that ASR's closed borehole technology is designed to generate a 'shock' or seismic wave to induce oil flow. It is deployed in closed boreholes and has no fluid connectivity to the reservoir. The purpose of Wavefront's DeepWave(tm) process, Davidson continued, is not to generate seismic waves, but to move liquids and improve injection rates, as well as the distribution of injected liquids in the reservoir. "Downhole tools related to DeepWave are deployed in injection wells having fluid connectivity to the reservoir through perforations, screens, liners, or open-hole completions," he added.

"In management's opinion if ASR had not unlawfully interfered, the success of the pilot waterflood project would have resulted in significant revenue to Wavefront for a number of years into the future," Davidson said.

Wavefront's proprietary DeepWave(tm) technology for fluid flow optimization has been developed to increase oil recovery and, applied within the environmental sector, to accelerate contaminant recovery for enhanced in-situ groundwater remediation.

More information is available on the company's Web site, http://onthewavefront.com.

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