System to Begin Commercial Operations at Major Oil and Gas Producers Site in New Mexico
Commences Permitting Process for Additional Facilities in Texas
CALGARY, March 6, 2012 /CNW/ - Ridgeline Energy Services Inc. (TSX-V: RLE; OTCQX: RGDEF) ("Ridgeline" or the "Company"), an energy services and water treatment company, has reached an agreement with its Client (previously announced (September 27, 2011) to commence commercial water treatment operations at Ridgeline's Lomas Rojas Facility Number 2. This system is in operation at a major oil and gas producers ("Client") site near Jal, New Mexico.
Ridgeline will also commence permitting its water treatment process for developmental facilities in several Texas jurisdictions with the Client beginning today.
The Clients operations in this area involve the tie in of multiple wells to a central oil production facility or ("Battery"). Large volumes of water are produced during the oil recovery process and will be the principal source of water to be treated. Flowback water from the Clients hydraulic stimulation operations will also be treated. Currently, Ridgeline has one of its single train commercial systems installed, and in operation over the last several months. As the Client expands its production the facility will be increased to as much as 10,000 barrels of water treated per day.
The Client is a major leaseholder in this area and numerous other sites have been identified for water treatment systems, as operational and quality control systems are designed in cooperation with the Client. Water from other production sites will also be tested and evaluated at the Ridgeline facility. This will be done to validate the effectiveness of the technology in other areas and speed up the sales cycle with the Client, as well as allow the Client to specify where and when Ridgeline water facilities will be permitted. The revenue from this system is expected to begin March 25th, and will flow to Ridgeline in the form of cents per Gallon, or per barrel processing fee.
"We are extremely pleased to announce the commercial startup of our first water treatment facility in the United States." Stated Tony Ker, CEO of Ridgeline. "Our Client has also advised us to move with all due speed to start permitting locations in the State of Texas. Dennis M. Danzik will be heading a team in Texas to immediately begin jurisdictional permitting."
Dennis M. Danzik, the inventor of Ridgelines water treatment technology stated. "We are very proud of another successful milestone in the roll out of our technology. This system was manufactured by Ridgeline in Arizona, assembled on site in three days by our construction and installation team, and is surpassing expectations. We have engineered and built our system in modular components with the heaviest piece not exceeding 6,000 Lbs. or about 2,700 kg. This allows for easy transport and rapid on site deployment with a single forklift. We have been able to successfully eliminate the need for cranes. Our system is also designed to be scaled up modularly. As the Client develops the area we can expand or contract the system capacity, with very little cost to meet our Client's needs."
About Ridgeline Energy Services Inc.
Ridgeline Energy Services Inc. is an energy services and water treatment company. Through its subsidiary Ridgeline Water Inc., the Company is applying proprietary technology to treat the large volumes of contaminated ground water or water generated by oil and gas production. The Company is working with energy majors in the application of its technology for the recycle and reuse of; produced and hydraulic stimulation flowback water; enhanced recovery chemical flood water; and oil sands process water. As well the Company is applying its technology in the testing and treatment of commercial and industrial waste water. Through its environmental consulting and remediation subsidiaries, Ridgeline Environment Inc. and Ridgeline GreenFill Inc., the Company has built a reputation as an established provider of environmental services to North America's oil and gas industry. The Company trades on the TSX Venture Exchange under the symbol "RLE" and the OTCQX as "RGDEF". Additional information is available on the Company's website at: www.ridgelinecanada.com.
ON BEHALF OF THE BOARD OF DIRECTORS
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