Dallas, Texas (December 16, 2011) – StockGuru Shines its Spotlight on ERF Wireless (OTCBB: ERFB), a leading provider of enterprise-class wireless and broadband products and services. The Company announced yesterday that its significant 2011 business plan accomplishments. Also, before year end, the Company expects to outline its major business objectives for 2012 and beyond in a press release and will provide its stockholders a vision of what’s to come for ERF Wireless. The Company closed up 21 percent on December 15, 2011, at $3.03, trading in a fifty-two week range of $20.50 – 0.25.
The following is a summary list of some major ERF Wireless 2011 business objectives and update as to their current status:
#1. Improve the Overall Financial Posture
- The company is moving toward profitability by growing its high-margin oil and gas revenue base while simultaneously reducing corporate expenses and expanding our WISP, banking, education, and other vertical market revenue.
- At the end of the 3rd quarter, Energy Broadband revenue had grown 182% as compared to the same period in 2010, with an average monthly growth rate of 15.7%.
- At the end of the 3rd quarter the overall corporate expense had been reduced 26% as compared to the same period in 2010 with an overall reduction of $1,522,000 for an average reduction of 126,833 per month for the past 12 months.
- At the end of the 3rd quarter overall corporate loss had been reduced 62% as compared to the same period in 2010 with an overall reduction of $3,889,000 or an average loss reduction of $324,083 per month for the 12 month period. This positions ERF Wireless for near-term profitability.
- The award of three patents from the United States Patent Office for the company’s CryptoVue® network security device.
- The sale of non-core WISP networks to KeyOn Communications Holdings Inc. that raised more than $3,000,000 in expansion capital. The primary allocation of these cash proceeds is being used to retire certain liabilities and to provide for aggressive growth of the company’s oil and gas vertical subsidiary, Energy Broadband.
- The expansion and upgrading of existing bank network customers to add new branches and expand services while simultaneously seeking new bank customers in all of our oil and gas network coverage areas where oil and gas companies and financial institutions share network resources.
- The addition of four new public networks to the ERF Wireless Enterprise Network Services (ENS) division producing new one-time and recurring revenue. These projects mark the Company’s initial entry into a new strategic education vertical market that has been under development for some time.
- The company has secured $3 million in debt financing from Dakota Capital Fund LLC. The funding will be utilized by the company to quickly expand its Energy Broadband subsidiary’s presence in the major oil and gas exploration regions of North America.
- The Company is currently receiving funds under its $2.5 million E-Bond offering and expects the funding to be completed during the 1st quarter of 2012. These funds are for operational purposes.
#2. Become the Largest Terrestrial Wireless Provider to the Oil and Gas Industry in North America
- A new wireless network buildout in the Eagle Ford Shale region of South Texas was initiated earlier in 2011 and is now nearing completion. The first section of this network will be completed in December 2011. The remaining sectors will be completed by February 2012. When completed and combined with the three Master Service Agreements with existing carriers in certain parts of the Eagle Ford Shale, ERF Wireless will have the only contigious terrestrial wireless network serving the Eagle Ford Shale region.
- With acquisitions in previous years ERF Wireless now owns and operates the largest terrestrial wireless broadband network in the Texas, New Mexico, and Oklahoma region covering much of the Permian Basin oil and gas region of West Texas and eastern New Mexico ranging from Odessa, Texas, north through Lubbock and reaching almost to the Oklahoma panhandle. With the new Permian Basin oil boom quickly expanding into some largely unpopulated regions previously not covered by wireless networks, ERF Wireless is currently expanding their network coverage in these regions by building out three separate new network regions where existing customers need wireless coverage. Construction is already in progress and will be completed early in 2012.
- A new ERF Wireless terrestrial wireless network buildout is currently under way in the Bakken Shale region of North Dakota with the initial transmission sites scheduled for installation before the end of 2011 and full network construction completed in the spring of 2012. Energy Broadband will also open a new field office in the area for technical service and sales personnel.
- In 2011 ERF Wireless has negotiated additional Master Service Agreements with other wireless carriers bringing the total to 12. When combined with its own wireless network coverage, ERF Wireless now has the largest terrestrial wireless transmission platform in North America that stretches from South Texas to Louisiana, New Mexico, Oklahoma, Arkansas, Kansas, Colorado, Wyoming, North Dakota, and on into Alberta, Canada.
- ERF Wireless has purchased and paid for more than 135 mobile broadband trailers (MBTs) to provide nomadic wireless support to the oil and gas industry. Additional MBTs are being purchased at a rate of four per month with a current total commitment of 220.
#3. Enhance the Equity Structure
- The consolidation of the outstanding common stock to make it more marketable to the brokerage community, the elimination of a conversion ratio between the preferred and common stock and the change of the trading symbol to ERFB.
- Payment of a stock dividend in subsidiary stock. The dividend of one unit of its private oil and gas subsidiary Energy Broadband Inc. securities to existing ERF Wireless shareholders as of a September 30, 2011, record date. Each unit consists of 100 Energy Broadband common shares, one warrant to purchase 100 shares at a fixed price of $4.00 per share and one warrant to purchase an additional 100 shares at a fixed price of $6.00 per share for each 200 shares of ERF Wireless Inc. common stock, or preferred stock convertible into 200 common shares, that a shareholder owned as of the record date. Currently these dividends are being distributed and will be completed no later than March 30, 2012.
- Elimination of certain debt to prepare the company for a listing on a national market stock exchange to improve stockholder liquidity and value as well as improve posture for financing and growth. This long-term debt has been eliminated from the balance sheet by the cash payoff of certain items and the maturing and or termination of certain lease agreements.
#4. Seek to recover the earned but uncollected revenue associated with the 2009 Schlumberger contract.
- The Company previously announced that it has filed the formal arbitration documentation to conduct arbitration of a major contractual dispute between ERF Wireless and Schlumberger Technology Corporation, a subsidiary of Schlumberger, Ltd. This dispute has arisen regarding two exclusive reseller contracts between Schlumberger and ERF Wireless signed January 13, 2009, and still continuing until January 13, 2012, unless cancelled due to a default by either party. Neither Schlumberger nor ERF Wireless cancelled the contract due to default of the other party. The arbitration process involves one of these contracts with the GCS Division of Schlumberger for all of the U.S. including the Gulf of Mexico. A second and similar contract for all of Canada with their Canadian Division may be the subject of a separate proceeding. In spite of this contractual dispute, ERF Wireless has continued to expand its wireless network coverage in most North American oil and gas regions, as required by the contracts, and to increase its market presence by servicing industry customers that were originally exempted from the exclusivity provisions of the contracts. The ruling in the arbitration will be binding, and the arbitration is now expected to extend past the end of the year into the first quarter of 2012.
#5. Better Articulate and Communicate the ERF Wireless Business Plan for Future Growth to Shareholders and the Financial Community
- In an effort to create greater awareness regarding recent significant developments, including the increase in the company’s oil and gas business activities and related revenue increases, ERF Wireless has retained the services of Investor Awareness Inc. as its new investor relations firm.
- In a continued effort to increase the overall visibility of the company to the customers and investor community, the company has also reengaged CWR & Partners as its media relations firm to publicize the ERF Wireless story and to supplement similar in-house efforts. In addition, CWR & Partners will be hosting the company’s new Twitter site.
- ERF Wireless will soon be introducing a new erfwireless.com website and will be updating its erfwireless.net and energybroadband.com websites in an effort to modernize and update our presence in the marketplace.
- Mr. Tom Wiedebush has joined the ERF Wireless Board of Directors and is the second of three independent directors required by the SEC prior to submitting a listing application to either the AMEX or NASDAQ Exchange. Once a third independent director is appointed and other qualification standards are achieved, ERF Wireless will apply to operate on a major securities exchange, a move expected to significantly improve the liquidity of its common stock and give stockholders the best opportunity for value appreciation. The company anticipates these conditions could be met in early 2012.
About ERF Wireless
ERF Wireless Inc. is a fully reporting public corporation located in League City, Texas, and is the parent company of Energy Broadband Inc., 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.
Forward-looking statements in this release regarding ERF Wireless Inc. and Energy Broadband 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.
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