SOURCE: Bledsoe Capital Group

March 22, 2011 16:53 ET

Bledsoe Capital Group and Clean Water Partners Announce a $44 Million Agreement for Non-Chemical Water Treatment Process

Ecosphere Ozonix Technology to Help U.S. Energy Producers Eliminate Chemicals During Hydraulic Fracturing Operations

DALLAS, TX--(Marketwire - March 22, 2011) - Clean Water Partners, LLC, which is a funding arm of the Bledsoe Capital Group, LLC, announced today that a company they financially backed, Ecosphere Energy Services, LLC, has reached an agreement with an oil and gas service company. Ecosphere Energy Services has signed an exclusive technology licensing agreement with Hydrozonix, LLC to deploy its patented Ecosphere Ozonix technology in the U.S. oil and gas exploration and production industry. To maintain their exclusivity in the onshore oil and gas shale plays across the U.S., the agreement requires Hydrozonix to purchase a specified number of Ecosphere's new EF60 mobile high volume water treatment units each quarter during the initial 24 months. If Hydrozonix purchases the minimum number of units each quarter, Ecosphere will recognize approximately $44 million of revenue over the next 24 months, plus recurring performance-based royalties. Thereafter, Hydrozonix may maintain its exclusive license by meeting annual minimum purchases over the 20-year life of the Ecosphere Ozonix patents.

Drew Bledsoe, founder and principal of Bledsoe Capital Group, stated, "When we first started this project we were confident that the Ozonix technology would be the one to get us to the finish line the quickest; it's mobile, it's fast, and more importantly it eliminates the use of chemicals during hydraulic fracturing operations in the oil and natural gas exploration process."

"One of our main objectives was deploying the Ozonix units as quickly as possible into the oil and natural gas exploration fields. In order to do that we felt that we needed to align ourselves with an experienced heavy equipment services company," said John Kuelbs, Chairman of Clean Water Partners. That company turned out to be Hydrozonix, whose parent company, Phillips and Jordan, has a 20-year history of rapid-deployments managing 24 by 7 by 365 complex operations on high profile projects throughout the United States.

The EF60 is a mobile, high volume advanced oxidation system specifically designed to eliminate chemicals during the fracturing of natural gas and oil wells. Ecosphere Technologies, through its majority-owned subsidiary Ecosphere Energy Services, has been operating its patented Ozonix technology on hundreds of wells in the oil and natural gas industry since 2008. The EF60 product development was driven by customer demand to decrease the amount of equipment footprint at the frac site while increasing mobility from frac site to frac site. The EF60 is the "next generation" Ozonix unit and allows energy producers to recycle 100 percent of their production and flowback waters.

"The development of the Ecosphere Ozonix technology is a game changer for this industry and provides environmental risk managers in energy exploration companies the ability to mitigate the risk of pumping chemicals downhole during their fracturing operations," said Chad Wold, managing director and general counsel for Bledsoe Capital Group.

Contact Information

  • Bledsoe Capital Group / Clean Water Partners
    Chad M. Wold
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