- Wavefront Technology Solutions (WEE) has renegotiated a distribution agreement with Kuwait-based Gulf Drilling and Maintenance (GDMC)
- A previous deal fell through in early July this year after GDMC elected to exercise its early termination option
- Under the new two-year agreement, GDMC will pay an annual amount of approximately C$1.18 million for the exclusive right to Wavefront’s suite of well stimulation technologies
- The agreement comes off the back of a similar deal with Saudi Arabia-based Synergy International Energy
- Wavefront Technology Solutions (WEE) is currently up 25 per cent to five cents per share
Wavefront Technology Solutions (WEE) has renegotiated a distribution agreement with Kuwait-based Gulf Drilling and Maintenance (GDMC).
The Edmonton, Alberta-based oil and gas service provider had a previous deal with GDMC, which fell apart in early July this year after the distributor elected to exercise its early termination option.
Instead, GDMC proposed a non-exclusive agreement with Wavefront under which it would only pay for tool rentals and other services on a per use basis.
However, the two companies have signed a new two-year deal. According to the terms of the agreement, GDMC will pay Wavefront a minimum yearly amount of approximately C$1.18 million for the exclusive right to access its suite of well stimulation technologies.
These will be used for work in the State of Kuwait, including the Al Khafji Joint Operations region.
Wavefront will continue to provide marketing and technical support, with revenues expected to be recognised proportionally over the annual exclusivity period.
Brett Davidson, President and CEO of Wavefront Technology Solutions, said he is very pleased to continue working with GDMC.
“Powerwave has a strong and recognisable brand name with engineers of the National Oil Company (NOC) and we look forward to building on GDMC’s and Wavefront’s reputation for delivering outstanding results,” he added.
The new deal with GDMC comes off the back of a similar agreement with Saudi Arabia-based Synergy International Energy, which was signed on September 8 this year.
Wavefront Technology Solutions (WEE) is currently up 25 per cent to five cents per share at 11:08am.