Ridgeline Energy Services Inc.
TSX VENTURE : RLE

Ridgeline Energy Services Inc.

February 28, 2011 12:58 ET

Ridgeline Reports Third Quarter Results and Operations Update

CALGARY, ALBERTA--(Marketwire - Feb. 28, 2011) - Ridgeline Energy Services Inc. (TSX VENTURE:RLE) ("Ridgeline" or the "Company"), an environmental technology and consulting company focused on waste management in the oil and gas industry, reports that it has filed its unaudited financial statements and MD&A for the third quarter ended December 31, 2010. The documents are available under the Company's profile at www.sedar.com and on Ridgeline's website at www.ridgelinecanada.com.

During the third quarter and nine months ended December 31, 2010, the Company generated revenues of $3,015,651 and $7,436,419 respectively, compared to $2,794,956 and $6,605,033, for the comparable periods in the prior year. Third quarter revenues represents a 7.9% increase over the same period in the prior year. For the nine month period ended December 31, 2010, revenues increased 12.6% over the same period in the prior year. The increase in revenues is attributed to a rapid recovery in activity levels by Western Canada's oil and gas industry. The Company's environmental consulting and remediation subsidiaries, Ridgeline Environment Inc. ("Ridgeline Environment") and Ridgeline GreenFill Inc. ("Ridgeline GreenFill"), contributed 70% and 30% respectively, to total revenues generated during the quarter. Gross margin for the quarter was 47.7%, a significant improvement from 25.7% for the prior year period. Gross margin is expected to continue to be stronger than prior years as the Company's consulting subsidiary continues to achieve higher margins as a result of increased operational efficiencies.

RIDGELINE WATER INC.

During the third quarter ended December 31, 2010, the Company's subsidiary Ridgeline Water, successfully completed a series of sample and field trials for the treatment of hydraulic fracture ("frac") flowback water, with its first prototype unit operating in an unconventional gas basin located in north eastern British Columbia. Ridgeline Water also completed sample trials for the treatment of frac flowback water from unconventional light oil operations in Saskatchewan's Bakken formation, and sample trails for the treatment of oil sands tailings in north eastern Alberta. The Company has subsequently announced that it has entered into an agreement to install and operate a fully integrated water treatment facility for a major unconventional gas exploration and development company operating in north eastern British Columbia. The Company continues its discussions with energy majors operating in the Western Canadian Sedimentary Basin ("WCSB") for the application of proprietary technology for the effective treatment of produced water, hydraulic fracture ("frac") flowback water and oil sands process water ("tailings ponds"). 

RIDGELINE ENVIRONMENT INC.

The market outlook for the Company's environmental consulting subsidiary Ridgeline Environment, is expected to continue to show improved demand throughout 2011. Many oil and gas producers have a backlog of wellsites requiring environmental assessment and/or remediation in order to comply with current industry regulations and standards. Additionally, over the next several years, the number of upstream and midstream wellsites and associated facilities requiring environmental and/or remediation services prior to site abandonment, is expected to further increase with ongoing development of Western Canada's oil and gas industry.

RIDGELINE GREENFILL INC.

During the third quarter ending December 31, 2010, the Company's subsidiary, Ridgeline GreenFill Inc., which constructs and operates engineered treatment pads within municipal landfills for the bioremediation and mechanical treatment of hydrocarbon contaminated soils, reported that its first facility in Drumheller, Alberta, has now reached maximum capacity. Additionally, Ridgeline GreenFill completed construction of its second facility, a Class II Treatment Facility, located in Tilley, Alberta, during the quarter. These two operational achievements allowed Ridgeline GreenFill to show a large gain during the quarter. Ridgeline GreenFill continues to investigate the opportunity to construct and operate a site in Lloydminster, Saskatchewan, and maintains active dialogue with a number of municipalities with a view to identifying expansion opportunities.

ABOUT Ridgeline Energy Services Inc.

Ridgeline Energy Services Inc. (TSX VENTURE:RLE) 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 operating in the Western Canadian Sedimentary Basin. The Company is working with energy majors in the application of proprietary technology for effective onsite treatment of produced water, hydraulic fracturing flowback water and oil sands process water (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: http://www.ridgelinecanada.com.

"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."

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