Additional - $8 million in Annual Revenue
Management Agreement for Waste Water Company in Southern California
CALGARY, Feb. 12, 2013 /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 a Management Agreement with 13TONS, LLC ("13TON").
Effective October 1, 2012, Ridgeline entered into a Management Contract for the management of waste water collections in California. Ridgeline became responsible for administration, management, sales, water treatment, and all other functions of the business whose primary purpose is to collect waste water for treatment, extraction of by-products and management of beneficial feed stock. Ridgeline and 13TON are currently negotiating an asset purchase which is expected to be completed and in effect, by March 15, 2013, The Management Agreement may be extended if necessary.
13TON specializes in the management and collection of several different types of waste water including interceptor, grease trap, food processing, and large footprint waste water sites. The company primarily operates in California, Arizona and Nevada, but has brokerage operations nationwide.
Annual revenues at 13TON are currently over $8 million per year and are expected to grow. The combination of; 13TON's collection network, Ridgeline's water treatment technology and discharge permits provide for a synergistic opportunity to grow revenues. Both Santa Fe Springs and the recently announced Consolidated Water Treatment of Missouri facility will be positively impacted by additional water treatment revenues delivered by the 13TON's collection network.
Ridgeline will also benefit greatly from the management experience of Ben Maese who has built 13TON over these many years. Ben is a certified public accountant and is one of the most experienced professionals in the waste water industry in California, Nevada, and Arizona.
"We are very pleased to watch our California Division grow to nearly $20 million dollars in annualized revenue, with this Management Agreement. Having Ben Maese's experience and strong counsel will allow Ridgeline to expand operations into other properties, sooner than later", stated Dennis M Danzik, Ridgeline's Director of Engineering and Operations.
Tony Ker, Ridgeline CEO stated, "It is great to continue to watch our Santa Fe Springs property grow organically, but when we can absorb large blocks of business, like 13TON and concurrently add infrastructure for additional growth, we will act swiftly".
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".
ON BEHALF OF THE BOARD OF DIRECTORS
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements."
SOURCE Ridgeline Energy Services Inc.