Ridgeline Announces Oil Recovery Capacity Sale
CALGARY, Oct. 23, 2012 /PRNewswire/ - Ridgeline Energy Services Inc. ("Ridgeline" or the "Company") (TSXV: RLE, OTCQX: RGDEF, FSE: RL7) an energy services and water treatment technology company, today announced the sale (effective 14 September, 2012) of 100% of one of its water processing systems, located in Santa Fe Springs, California, to be used for oil recovery.
Ridgeline is pleased to announce that it has entered into a five year sale of capacity agreement for its Santa Fe Springs Unit Number 3 (SFS3). The water treatment capacity for this system has been increased to 5,000 barrels per day, and will be used for oil recovery and subsequent waste water treatment. Ridgeline's capacity sale, (worth approximately US$ 1.8 Million) represents a way for its customers requiring waste water treatment to secure years of capacity in advance. In addition, the contract also awards Ridgeline 100% of the waste water processing fees in addition to the sale of the capacity.
Dennis M Danzik, Executive Director of Ridgeline, stated, "This is the second time in our water treatment history that our customer has chosen to simply buy out capacity in a specific processing line. In addition to the sale, Ridgeline will earn its normal waste water processing fees. It is also exciting that this sale represents the first use of our water technologies solely for the sequester and collection of oils. It is an expansive way for our Company to put our services to work in the marketplace. We have strong and developing interests in this business model".
Tony Ker, CEO of Ridgeline, stated, "We are extremely pleased to announce this transaction. With an additional 3 new processing systems being installed at our Santa Fe Springs facility, the opportunity to sell the capacity of an existing system is very beneficial to our client and our Company. It assures the client that they will have processing capacity and is a way for Ridgeline to monetize the asset without giving up recurring revenues. Credit for this accomplishment goes to Dennis, our business development team, and our manufacturing and installation teams, which continue to execute our strategic business plan."
About Ridgeline Energy Services Inc.
Ridgeline Energy Services Inc. is an energy services and water treatment technology company. The Company is applying proprietary technology to treat water generated from industrial and commercial waste water markets. These markets include a wide variety of clients across a broad spectrum of industries including oil and gas. Through its environmental consulting and remediation divisions, Ridgeline Environment has built a reputation as an established provider of environmental services to the Western Canadian oil and gas industry. Ridgeline GreenFill provides soil remediation and wet waste disposal services to the oil and gas industry. The Company trades on the TSX Venture Exchange under the symbol "RLE", the OTCQX as "RGDEF" and the Frankfurt Stock Exchange as "RL7".
Additional information is available on the Company's website at: www.ridgelinecanada.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Tony Ker, CEO
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SOURCE Ridgeline Energy Services Inc.