Ridgeline Energy Services Inc.

Ridgeline Energy Services Inc.

September 27, 2011 04:00 ET

Ridgeline to Build First Commercial Installation of Its Water Treatment System in the United States

Proprietary System Efficiently And Cost Effectively Treats O&G Produced And Flowback Water

Technology Designed To Meet Highest Environmental Standards And Address Limited Water Resources

CALGARY, ALBERTA--(Marketwire - Sept. 27, 2011) - Ridgeline Energy Services Inc. (TSX VENTURE:RLE) ("Ridgeline") announces the signing of a second development agreement with an existing client, a major North American oil and gas producer ("Client"), to construct a Single Train Commercial Installation ("STCI") at one of the Client's sites in the Leonard Shale, New Mexico. The Leonard Shale is a horizontal crude oil play in southeastern New Mexico and part of the Permian Basin. The Client estimates likely reserves on 31,000 of its 120,000 net acres in the play are approximately 65 million barrels of crude oil equivalent, net after royalty.

The objective of the STCI will be to test, analyse and treat produced and flowback water from the Client's centralised oil production facility. This water can then be reused for hydraulic fracturing or disposed of reducing the Client's costs while addressing environmental concerns. Ridgeline's STCI is an evolution of its proprietary water treatment system. The Single Train Commercial Installation will provide the same technology and processing benefits of Ridgeline's Four Train Commercial system. The four train technology is capable of treating numerous types of water families to a wide variety of water product specifications. The STCI is a more focused application for this type of project and water type, thereby providing additional savings and efficiency for the Client.

Ridgeline's site is located outside Jal, New Mexico and will handle produced water from a permanent oilfield treatment facility. The site currently produces about 2,600 to 4,600 barrels of waste water per day.

Tony Ker, CEO of Ridgeline stated, "Having established our initial commercial operations with this Client in the Horn River Basin of north-eastern British Columbia, we look forward to commencing our second commercial system on their Leonard Shale area site. Getting our first commercial plant into operation in the northern BC climate was challenging and prepared us to set up and run in nearly any environment. This project has exceeded our benchmarks and we are pleased to continue servicing our Client's needs on their other sites."

Mr. Ker continued, "Initial bench testing of produced and flow back water from the Leonard Shale site has been successfully sampled at Ridgeline's new physical laboratory in Scottsdale, Arizona. Historically our bench tests have had high correlation to results seen in the field. Due to the highly customisable nature of our water product, we are able to deliver water that meets the storage needs, re-use quality or disposal standards demanded by our Client. Ridgeline's technology and water management system is designed to assist all of our clients operating in the south-western United States to deal with water availability issues and the often prohibitive expense of trucking and disposal. We are confident our technology will solve many water related problems the oil and gas industry faces in this area. We feel our system is efficient, deals with environmental concerns and provides a better economic choice than what is currently available to some producers."

Sampling and analytical testing of the water treatment process will be carried out by Mobile Analytical Labs of Odessa Texas.

The water treatment services will be provided by Ridgeline through the Eau Claire Partnership. The water treatment technology is exclusively licensed to the Eau Claire Partnership by DEJA II, LLC.

About Ridgeline Energy Services Inc.

Ridgeline Energy Services Inc. is an environmental technology and consulting company focused on waste management in the oil and gas industry. Through its subsidiary Ridgeline Water Inc., the Company is developing proprietary technology capable of efficiently treating large volumes of contaminated water generated by oil and gas producers. The Company is working with energy majors in the application of its proprietary technology for effective treatment of water for hydraulic fracturing, oil sands process water (SAGD and tailings ponds) and to recycle the water used in these oil and gas industry applications. Through its environmental consulting and remediation subsidiaries, Ridgeline Environment Inc. and Ridgeline GreenFill Inc., the Company has built a reputation as an established player in the provision of environmental services to Western Canada's large and growing oil and gas industry. The Company trades on the TSX Venture Exchange under the symbol "RLE". Additional information is available on the Company's website at: www.ridgelinecanada.com.

For a video on hydraulic fracturing and our proprietary water treatment technology please follow this link: Ridgeline Video Presentation.

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