Announcements

Major Middle Eastern oil service company selects CLEAN-FRAC for fast-growing water treatment and reuse business

Los Angeles, CA and Muscat, Oman – October 21, 2014 – OriginOil Inc. (OTC/QB: OOIL), developer of Electro Water Separation™ (EWS), the high-speed, chemical-free process to clean up large quantities of water, today announced that Gulf Energy, an oil service company with major customers across the Arabian Peninsula, has purchased a $1.4M CLEAN-FRAC™ 5000 system, designed to process five thousand barrels per day (bpd), for the company’s growing oil services business.

 Regional operators are turning to advanced reuse and treatment technologies to reduce fresh water demand and comply with strict regional water and environmental regulations.

“Here at Gulf Energy, we are committed to the hydraulic fracture market in the MENA region, which by definition includes the treatment of frac flowback and produced water for recycling. The test results from OriginOil’s CLEAN-FRAC system demonstrations in Colorado and Texas were so impressive, we decided to move forward with a commercial scale five thousand barrel per day system,” stated Yasser Al Barami, Chief Commercial Officer of Gulf Energy SAOC. “We intend to build future units ourselves based on the design of this first unit, but we decided it was prudent to purchase a complete first system which we will mount on a mobile platform.”

OriginOil's CLEAN-FRAC is a complete solution that can be designed for enhanced oil recovery, hydraulic fracturing operations, irrigation water, and even potable water. It begins with OriginOil’s core EWS technology to remove oil, solids and bacteria, and adds downstream processes to achieve the desired result.

These downstream technologies come from “design partners” such as Tri-Sep or Dow Chemical. OriginOil selected Water & Power Technologies, a US unit of the French multinational engineering firm, Degrémont/Suez Environmental, to design and build the complete CLEAN-FRAC system for Gulf Energy and future customers.

Jeff Savage, General Manager of Water & Power Technologies stated, “Our partnership with OriginOil represents a move into new territory for water treatment and we couldn’t be more excited. Their EWS technology is an entirely novel process and test results to date are outstanding. Their plans for national and international commercialization also fit very well with our ability to provide on-going service support worldwide either through WPT or through Degrémont/Suez.”

According to the U.S. Energy Information Agency, Oman is not only a major oil producer, but one of the largest producers of natural gas in the Middle East.

Gulf Energy reports that it currently works with almost all of the major operators in Oman including Petroleum Development of Oman (PDO), Occidental Petroleum Company (OXY), PTT Exploration and Production Plc (PTTEP), MEDCO, Petrogas E&P and Daleel Petroleum.

All of these operators face a growing shortage of fresh water, and must also comply with Oman’s progressive environmental regulations, which mandate the removal of suspended particulates, oils and greases in liquid effluents before disposal.

“We are very excited to build our first complete, commercial-scale system for such a forward-thinking and fast-acting customer,” said Bill Charneski, President of OriginOil Oil & Gas. “We anticipate that operators and service companies in the United States, Asia and elsewhere, will move quickly to replicate Gulf Energy’s first rollout of CLEAN-FRAC in the Middle East.”

Gulf Energy initially intended to begin by purchasing a 1500 bpd unit from OriginOil, but decided to bypass the demonstration stage and progress to commercial scale water treatment.

Results from on-site testing of a pilot CLEAN-FRAC unit at Industrial Systems, Inc. in Delta, Colorado demonstrated that water turbidity, suspended solids and oil in water were reduced by as much as 99 percent.

According to Gulf Energy officials, “Gulf Energy SAOC, an integrated energy company, combines the experience of personnel, first class equipment with cutting edge technology and a strong emphasis on innovation, reliability, quality, integrity and customer services. This orientation to customer needs and expectations has allowed Gulf Energy to become one of the most dynamic and fastest growing innovative solution providers in the energy industry in the Middle East and North Africa. Gulf Energy has grown its capabilities both intrinsically as well as through collaborating with partner institutions to enrich its oilfield expertise.”