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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, CA and Dallas, TX – August 21, 2013 – OriginOil, Inc. (OTC/QB: 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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