OriginOil and AmericaCNG Partner to Reduce Production Cost and Implement Improved Water Management Technology for Oil and Gas E&P Operators
AmericaCNG will tap OriginOil's pay-by-the-gallon financing program to accelerate adoption by E&P (Exploration & Production) companies
LOS ANGELES & DALLAS--(BUSINESS WIRE)-- OriginOil, Inc. (OTCQB:OOIL), developer of Electro Water Separation™ (EWS), the high-speed, chemical-free process to clean up large quantities of water, announced today that AmericaCNG has selected EWS for the treatment of frac flowback and produced water.
AmericaCNG, OriginOil's latest OEM, plans to market EWS to its LNG (Liquefied Natural Gas) equipment customers at shale plays across the United States by leveraging OriginOil's Throughput Program, which is designed to eliminate capital costs for operators.
"Our mission at AmericaCNG is to help operators dramatically reduce costs by replacing the diesel fuel used for well site operations with the methane and ethane gas they are already generating," said Joseph Farley, director of global business development for AmericaCNG. "By using our gas processing equipment and gas turbine generators for drilling rigs and frac spreads, we project that an E&P company can save in the low to mid seven figures annually per rig.
"In our discussions with E&P operators, it became clear that we should also provide equipment and services for water treatment," Farley added. "Water is a very large component in hydraulic fracturing and we need to conserve as much as possible. Water conservation also dramatically reduces truck traffic. After much research, we found that a water treatment system based on OriginOil's EWS technology is the best solution, and we intend to offer it alongside our own systems."
"Typically there are relatively high costs associated with moving a lot of water into and out of a well site," said Riggs Eckelberry, CEO of OriginOil. "In many regions, there is a limited amount of fresh water, and those water resources need to be conserved to supply many types of users. OriginOil has developed EWS, a novel, high speed, chemical-free process that cleans up produced water and recycles frac flowback water, reduces harm to the environment and lowers costs.
"We are excited to add our water treatment technology to AmericaCNG's unique W-Grade Gas Processing ACNG™ system, contributing the water treatment part of the total solution offered by AmericaCNG to help E&P companies reduce their development cost at the wellhead," Eckelberry added.
When applied to the oil and gas industry, OriginOil's EWS technology is used in a continuous process to remove oils, suspended solids, insoluble organics and bacteria from produced and frac flowback water in well operations. This allows the water to be easily recycled for future fracking operations or disposed of safely.
"AmericaCNG has a very aggressive plan, which has immense implications for us," Eckelberry continued. "They believe that our Throughput Program, which is designed to eliminate capital requirements for operators, will help them realize their plan. We intend to stand side by side with AmericaCNG to show their capital partners how our technology and this financing program will help them implement their plan to achieve widespread gas re-use at the well site."
Farley concluded, "AmericaCNG is building a very strong team of strategic alliance partners, clients and suppliers. Our strategic alliance partners in the Drilling Operations & Frac Spread Operations are very excited to have a steady flow of LNG to power their units. We believe this gives them a massive competitive advantage. In addition to OriginOil for water treatment, global suppliers such as Caterpillar Inc. and Waukesha-Pierce Industries could potentially be tapped to provide the natural gas turbine and natural gas generators."
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About OriginOil, Inc.
OriginOil has developed a breakthrough water cleanup technology for the oil & gas, algae and other water-intensive industries. Unlike other technologies, the company's patent-pending Electro Water Separation™ process rapidly and efficiently removes organic material from large quantities of water without the need for chemicals. For the oil & gas industry, OriginOil is helping clean up produced water and recycle fracking water, to reduce harm to the environment and lower costs. For the emerging algae industry, OriginOil is making large-scale harvest possible. And in aquaculture, OriginOil is helping improve yields and making seafood healthier by dramatically reducing the levels of toxic ammonia and bacteria in water. For a world short on clean water, OriginOil is the lower-cost and cleaner answer. To learn more about OriginOil®, please visit our website at www.originoil.com.
OriginOil Safe Harbor Statement:
Matters discussed in this release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this update, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with our history of losses and our need to raise additional financing, the acceptance of our products and technology in the marketplace, our ability to demonstrate the commercial viability of our products and technology and our need to increase the size of our organization. Further information on the Company's risk factors is contained in the Company's quarterly and annual reports as filed with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
OriginOil and AmericaCNG partner to reduce production cost and implement improved water management technology for oil and gas E&P operators; AmericaCNG will tap OriginOil's pay-by-the-gallon financing program to accelerate adoption by E&P (Exploration & Production) companies.
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