ERF Wireless Expects Expansive Wireless Broadband Sales in the Oil and Gas Industry Based on Rising Demand for Worldwide Oil and Gas
Company Updates Current Oil & Gas Division Activities and Highlights
Recent Significant Achievements
LEAGUE CITY, Texas, Feb 08, 2010 (BUSINESS WIRE) -- ERF Wireless (OTCBB:ERFW), a leading provider of enterprise-class
wireless and broadband products and services, announced today that the
company's Oil & Gas Services Division is significantly increasing its
expansion of wireless coverage as well as its sales and marketing
activities in 2010 in response to the oil and gas industry's growing
interest in "real-time" communication systems that are several times
faster and more reliable than traditional satellite-based systems.
According to Dr. H. Dean Cubley, CEO of ERF Wireless, "Our company's
continued focus on the oil and gas industry in 2010 is a reflection of
the commitment that ERF Wireless has made to becoming the dominate
provider of terrestrial wireless broadband communications to the North
American oil and gas industry. Our activities over the past year
established ERF Wireless as the largest terrestrial wireless broadband
network covering the major oil and gas regions in North America. Now, we
see 2010 as the year in which our oil-and-gas-related revenues will
start to dominate the overall ERF Wireless business plan both through
our existing contracts as well as new contracts we are currently
developing."
During the past year, the Oil & Gas Services Division of ERF Wireless
has already reached a significant number of our strategic objectives
that include:
-
Entering into a mutually exclusive reseller contract, including
guaranteed minimum revenues to ERF Wireless, with the world's leading
oil and gas service company to supply terrestrial wireless broadband
communications services to its customers throughout North America,
including the Gulf of Mexico.
-
Obtaining FCC registration for approximately ninety 3.65-GHz WiMAX
transmission locations under the ERF Wireless nationwide 3.65-GHz
license that provides broadband coverage for the most strategic oil
and natural gas development and production areas in the United States.
Several of these locations are already in operation and producing
revenue. This new technology will make terrestrial broadband services
available to almost 30,000 square miles of additional energy
exploration and production geography and will reach almost half of the
active drilling sites currently in operation in the continental United
States.
-
Completing the acquisition of Frontier Internet LLC and iTexas.net,
both headquartered in Granbury, Texas, that brought a combined
existing customer base of more than 1,800 customers and over
$1,300,000 in profitable recurring annual WISP revenue in addition to
significant new oil and gas revenue as a result of coverage and
capabilities in the Barnett Shale region of North Texas. Through these
acquisitions ERF Wireless gained access to a large geographic area in
Texas that includes coverage in Hood, Somervell, Johnson, Erath and
Parker counties within the Barnett Shale area that covers
approximately 6,000 square miles of natural gas and oil production
territory.
-
Signing Master Services Agreements with ISPs in New Mexico, Texas,
Arkansas and Canada to deliver ERF Wireless' digital oilfield
solutions to mobile and static oil and gas sites throughout a combined
coverage area of some 100,000 square miles. These new coverage areas
include most of the strategic oil and gas production areas of North
America including most of the Alberta Providence of Canada. In
addition, ERF Wireless is currently deploying broadband services into
the British Columbia Horn River area for some of the larger
oil-and-gas-related companies.
-
Placing a $4.7-million order and taking initial deliveries for Mobile
Broadband Trailers (MBTs) that will provide an additional 321 MBTs to
be deployed into North American oil and gas customer locations.
-
ERF Wireless is also expanding its reach beyond its existing
terrestrial wireless broadband footprint by providing resold VSAT
satellite services to many of its oil and gas customers where it is
currently impractical to establish a terrestrial broadband network.
These resold VSAT services provide ERF Wireless a very profitable
wireless capability for these customers and positions ERF Wireless as
a "one stop" communications company for all their communication needs.
-
ERF Wireless is currently working with a number of oil and gas
companies in the deployment of wireless broadband communications
services in support of monitoring and controlling existing oil and gas
production facilities. A significant number of these applications have
already been deployed in 2009 and more are under way in 2010. These
Supervisory Control and Data Acquisition (SCADA) requirements are
widespread throughout North America and represent recurring revenue
for many years.
-
While the oil and gas wireless broadband requirements are driving the
locations of new acquisitions and the deployment of resources, ERF
Wireless is finding that there are numerous other wireless needs under
these footprints. One example is that of control and monitoring
devices ranging from security to agricultural irrigation. It is
anticipated that many new customers will be developed in these related
industries as the oil and gas wireless footprints are developed.
-
In addition, ERF Wireless has recently completed the initial
deployments of part of its MBT fleet in support of oil and gas
customer requirements for well workovers on certain existing oil and
gas wells and for new well completions. Referred sometimes as
"fracture stimulation" or "FRAC" jobs for existing mature wells, they
require the same level of communications as existing new drilling
operations. There are hundreds of thousands of existing wells
throughout North America and ERF Wireless has already received
substantial commitments for 2010 from its oil and gas customers for
this new area of wireless business.
"Our Oil & Gas Division was certainly a contributor to our ranking last
year as the 113th fastest growing company in North America on Deloitte's
2009 Technology Fast 500(TM)," said Dr. Cubley. "We expect it will make an
even bigger contribution to the company's growth in 2010."
About ERF Wireless
ERF Wireless Inc. is a fully reporting public corporation located in
League City, Texas, and is the parent company of ERF Oil & Gas Services,
ERF Enterprise Network Services, ERF Bundled Wireless Services, ERF
Wireless Messaging Services and ERF Network Services. The company
specializes in providing wireless and broadband product and service
solutions to enterprise, commercial and residential clients on a
regional, national and international basis. Its principals have been in
the wireless broadband, network integration, triple-play FTTH, IPTV and
content delivery business for more than 40 years. For more information,
please visit our websites at www.erfwireless.com
and www.erfwireless.net
or call 281-538-2101. (ERFWG)
Forward-looking statements in this release regarding ERF Wireless
Inc. are made pursuant to the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned that
such forward-looking statements involve risks and uncertainties,
including, without limitation, continued acceptance of the company's
products, increased levels of competition, new products and
technological changes, the company's dependence upon third-party
suppliers, intellectual property rights, and other risks detailed from
time to time in the company's periodic reports filed with the Securities
and Exchange Commission.
SOURCE: ERF Wireless Inc.
ERF Wireless Inc.
Clareen O'Quinn, 281-538-2101 ext. 113
coquinn@erfwireless.com
or
Rubenstein Investor Relations Inc.
Tim Clemensen, 212-843-9337
tclemensen@rubensteinir.com
Copyright Business Wire 2010
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