Ridgeline Energy Services Inc.

Ridgeline Energy Services Inc.

September 21, 2011 04:00 ET

Ridgeline Signs Development Agreement With a Major North American Oil and Gas Producer to Treat Frac and Produced Water

CALGARY, ALBERTA--(Marketwire - Sept. 21, 2011) - Ridgeline Energy Services Inc. ("Ridgeline") (TSX VENTURE:RLE) announces that it has signed a development agreement with a major North American oil and gas producer ("Client") to install one of Ridgeline's Mobile Development Laboratories ("MDL") at a hydraulic fracturing well site in the Waskada area of Southwestern Manitoba. The Client's strategic focus is on enhanced oil recovery through improving water flood programs. Ridgeline will provide contract services for the testing, treatment and recycling of produced and flow back water for use in hydraulic fracturing ("frac" or "fracking") and water flood applications.

The MDL will provide the Client with onsite real time data on a variety of treated water products. The flexibility of the MDL will allow the Client to obtain scientific characterization of a wide variety of treated water for reuse and recycling. The MDL is capable of treating numerous types of contaminated water to a wide variety of treatment objectives. Ridgeline has previously tested flow back water from tight oil sources but this will be the company's first treatment system designed to treat multiple sources of water at an oil production collection facility.

Tony Ker, CEO of Ridgeline stated, "Ridgeline has successfully established our first commercial operation in the Horn River Basin of North Eastern British Columbia. The signing of a development agreement with another major North American oil and gas company is a significant milestone in our growth strategy. Getting our first MDL into operation in the Northern BC climate was challenging and prepared us to set up and run the MDL in nearly any environment. That project exceeded all of our benchmarks and we are pleased to apply our technology on one of our other client's projects. Our technology is particularly well suited for efficiently and cost effectively extracting hydrocarbon from the water for reuse, while minimizing energy consumption. We feel this gives Ridgeline a competitive advantage in our marketplace."

Mr. Ker continued, "This latest agreement further illustrates the growing demand for our technologies, which are being driven by strict environmental regulations and economic benefits to our clients. We are excited to work with this client, one of the leading oil and gas companies in Canada. We commend their dedication to meeting and exceeding the highest environmental standards."

Interest in applying the Company's proprietary water treatment system has grown beyond the Western Canadian fracturing and produced water market. The Company has received expressions of interest from additional oil & gas markets such as: water treatment for Steam Assisted Gravity Drainage (SAGD), oil sands tailings ponds, and hydraulic fracturing operations in the United States. Ridgeline has also established one of its MDL's at a waste water treatment facility in Los Angeles California to categories and treat commercial and industrial waste water.

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.

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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