SOURCE: Sionix Corporation
LOS ANGELES, CA--(Marketwire - Jun 5, 2012) - Sionix Corporation (OTCBB: SINX), a designer and operator of patented water treatment systems, announced today the formation of Williston Basin II LLC ("WBII"), a Nevada limited liability company, which will operate similar to the previously announced Williston Basin I LLC ("WBI").
As a condition to its membership interest subscription, REVH2O LLC ("REVH2O") has pre-paid a $200,000 licensing fee to Sionix for WBII that represents a partial payment against an agreed 35% membership interest position once certain performance conditions of WBI have been met. REVH2O is a diversified fluids management and services company, serving the O&G industry primarily in Pennsylvania and is a member of WBI and an equity holder in Sionix.
"We believe there is a significant opportunity for the rapid expansion of Sionix Mobile Water Treatment System ("MWTS") products and services in the Williston Basin. Drilling fluids are a major cost component to E&P operators. The ability of the Sionix MWTS to efficiently and economically remediate drilling fluids on site we believe will make a meaningful change to the overall cost structure of local drilling operations. We are very pleased with our expanded relationship with Sionix and its Williston Basin opportunities," stated David Kailbourne, CEO of REVH2O.
Effective April 1st, 2012, new regulation from the North Dakota Industrial Commission requires oil companies to separate liquids and drilling mud from rock cuttings, reducing the use of reserve pits and allowing for the recycling and reuse of liquids.
Sionix previously announced the deployment of a MWTS specifically designed for operation in the Williston Basin of North Dakota for treatment of water contaminated by harvesting of energy resources in this region. Sionix personnel will be responsible for the operation and maintenance of the MWTS and under the recently announced contract with McFall Incorporated, a Washington based construction and logistics firm operating as a Master Service Contractor to major E&P companies in the Williston Basin.
"The formation and operation of WBI and WBII signifies the evolution of Sionix from a supplier of water treatment equipment to a provider of long-term water treatment and fluids management services," states James Currier, CEO of Sionix. "Changing regulatory conditions, continued depletion of scarce water resources, and recycling water for multiple uses at or near sources of contamination has been our ultimate objective at Sionix."
Sionix anticipates further deployments in the Williston Basin, as well as other substantial energy bearing shale formations in the continental United States.
About the Bakken Shale Formation of the Williston Basin
The Bakken Shale Formation can be found in the Williston Basin, which stretches across North Dakota, Montana, South Dakota, Manitoba and Saskatchewan. In total, the basin covers roughly 300,000 square miles. The basin will become the second largest oil producing area as a direct result of hydraulic fracking, horizontal drilling, and artificial permeability practices. These technologies, using an average of 5 million gallons of water per well has created opportunities for water treatment and recycling that would ordinarily be disposed of in deep injection wells. Many industry experts believe these processes will liberate energy resources in 30 + shale formations across the United States and make the country substantially more energy efficient. Remediation of the large amounts of water necessary to support the energy harvesting activities are mission critical to the industry's sustainability, future expansion, and success. Sionix believes it is poised to be a key player in this water remediation process.
About Sionix Corporation
Sionix designs innovative and advanced MWTS intended for use in energy, government facilities, healthcare facilities, emergency water supplies during natural disasters, housing development projects, and various industrial processes including subterranean fracturing used in oil and gas drilling. These systems can be located adjacent to contaminated water sites or as a pre-treatment for reverse osmosis and other membrane applications. Industries involved in dairy, agribusiness, meat processing, mining, poultry operations, and many others can benefit from Sionix' cost-effective, easily maintained, portable water treatment systems. For more information about the company, go to www.sionix.com.
About Sionix Technology
The Sionix Mobile Water Treatment System (MWTS) for fluids management and water treatment addresses a broad spectrum of contaminant conditions in totality. Using a customized technology configuration, each system tailors its technology suite to address each customer's specific treatment needs. The dynamic nature of influent contamination dictates treatment parameters which may continually be in flux. The modularity of the technology suite within the Sionix MWTS allows for the ease of adaptation to these fluctuating contaminant conditions. A unique component highlighted within the Sionix systems is the Sionix patented and proprietary Dissolved Air Flotation technology, which generates micro bubbles between the size of 1 and 2 microns, compared to historical sizes of 50 microns or larger. The actions of these micro bubbles facilitate the removal of 99.95% of organic contaminants and a majority of inorganic contaminants. The evolution of this technology is exclusive to the Sionix MWTS.
All statements in this press release that are not statements of historical fact are forward-looking statements, including any projections of earnings, revenue, or other financial items, any statements of the plans, strategies, and objectives of management for future operations, any statements concerning proposed new products, services or developments, any statements regarding future economic conditions or performance, statements of belief and any statements of assumptions underlying any of the foregoing. These statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties include, but are not limited to, whether Sionix Corporation can raise capital as and when it needs to, whether the water purification systems will generate significant sales, whether it can compete successfully in its market and industry, and other factors beyond the control of Sionix Corporation, including those detailed from time to time in the reports filed with the Securities and Exchange Commission. Sionix Corporation assumes no obligation and does not intend to update these forward-looking statements.