Shares of Wavefront Technologies (TSX: V.WEE, Stock Forum) shot 22% higher to $2.79 after it released news on Tuesday.
The company provides technology that helps oil companies boost their production.
Wavefront announced on Tuesday that Pemex, the largest Latin American oil producer, would use its Powerwave technology to boost oil well production beyond current rates as well as to enhance waterflood applications. The news release stated that Powerwave would be deployed on a trial basis, which could lead to a five year open contract.
The Bullboard erupted with congratulatory comment with many posters chiding those who had written negatively about the company.
According to oilduke: “The pr these guys puts out if anything is understated, all the testing points to a future winner.
“This stock will never be below $1.80 again, I would be very careful day trading this stock.”
Posters were working out the math, and trying to settle on a revenue number that would make sense given the news release.
Oxen wrote in a post entitled 36 ‘waterfloods’ implies a minimum of 36 tools “...not 36 tools total. They are referring to 36 independent injection systems that may actually be serviced by more than 1 injector each @ 6000/day.
“The 13 well stimulation applications will be charged out at REAL service company wages, 4 grand per operating day.
“I think a lot of people haven't actually read the release fully....or their eyes started glazing over after the word Pemex. Lol”
Other posters anticipated a similar news release regarding usage of the Powerwave tool by Encana (TSX: T.ECA, Stock Forum). Bigships88crowed: “This IS huge news, just the beginning of the big time, Encana could come in for an order shortly, even if just 50 units or whatever will blow this thing out of the water.... new time will be a halt!”
Long time commenter beermountain summarized his view of the company as follows: “WEE has a client base with some of the top oil producers in the world. With Pemex, it brings a whole new dimension to WEE. Pemex NEEDS to stop its oil decline/and/or increase production. That's what WEE brings to the table. Pemex has allocated $Billions to do so. WEE's technology has worked amazingly so far. So once Pemex gets units on their fields and it works, then they'll probably get very aggressive with their approach. Also WEE will be doing well stimulations. WEE has been incredibly successful with this facet. Their technology is second to none for injectivity of acid, chemicals, etc. Well stimulations is a massive market. Lot's of fun ahead. This is the tipping point.”
