Wavefront Technology Solutions Inc. (Wavefront), a global leader in the advancement of fluid injection technology for oil and gas well stimulation and Improved/Enhanced Oil (“IOR/EOR”) Recovery, is pleased to provide this update on the Company’s activities.
Recently, in the Kingdom of Saudi Arabia Wavefront’s Powerwave Odyssey tool was applied to a new application coinciding with a traditional acid stimulation. The application is related to extended reach wells and the function of the Odyssey as a coiled tubing “agitator” as well as a stimulation tool. Extended reach wells are wells where the horizontal leg of the well extends for distances that are generally two times longer than the vertical depth. In many instances frictional issues prevent the coiled tubing from reaching the total measured depth of the well without the aid of significant friction reduction.
Friction reduction is often accomplished by some form of agitation where axial oscillations of the coiled tubing reduces downhole friction allowing the coiled tubing to be run deeper into the well. In its initial application the Powerwave Odyssey was able to successfully reduce the coiled tubing friction factor from 0.4 to 0.15 thus allowing the coiled tubing to reach the wells total measured depth of 13,500 ft.
The result is comparable to competitive agitators however the main competitive benefit of the Odyssey as an agitator is that it allows for multiple runs into the horizontal section whereas the leading agitators allow for only one run. From a financial perspective Wavefront’s local distributors in the Middle East will be able to apply a premium charge associated with the Powerwave Odyssey’s use as an agitator where competitive tools are charged out in excess of $30,000 per well.
In addition to the use of the Powerwave Odyssey as an agitator and acid stimulation tool Wavefront is also entering the market of multi-lateral wells with the incorporation of a specialty multi-lateral tool system into the Odyssey protocol. Multi-lateral wells are becoming more prevalent in the Middle East as they increase reservoir drainage area and minimize the surface footprint. Until now Powerwave has been limited to the main bore however with the incorporation of the multi-lateral tool system all laterals will have the potential to be stimulated. The addition of the multi-lateral tool system will also allow Wavefront’s local distributors in the Middle East to apply a premium charge where competitive multi-lateral tool systems are charged out at approximately $15,000 per well.
Through its distribution network Wavefront continues to see opportunity for its suite of technologies. A new order to evaluate the utility of Wavefront drilling tools to optimize drilling operations was received for Iraq. Under the terms of the purchase order financial details cannot be released. Iraq is OPEC’s second largest oil producer and this opening order for drilling tools is the entry point for the Company’s Powerwave line of well stimulation offerings. Wavefront is working with its local distributor to secure initial Powerwave field applications and have targeted the third calendar quarter for implementation.
“Wavefront is very excited about the new opportunities associated with Powerwave that will help unlock the full promise of a reservoir for a client while at the same time providing the Company with new revenue generating opportunity,” said Wavefront President and CEO Brett Davidson. “We will continue to seek new applications for current Wavefront technology as well as introduce new tools and techniques to broaden potential future growth, as well as address the growing needs of the Company’s distributors and technology end users.”