OriginOil signs pay-per-barrel agreement with ISI for water treatment system
(MarketLine via COMTEX) -- OriginOil, Inc., a provider of water cleanup technology for the oil and gas, algae, and other water industries, has signed its first pay-per-barrel agreement with Industrial Systems, Inc., or ISI, a provider of construction services and solutions, for a water treatment system integrating OriginOil's process as the first stage of treatment.
Delta, Colorado-based ISI has agreed that it will operate the Model P160 as part of its overall frac flowback water cleanup service, and pay OriginOil a fee for each barrel processed.
Based on the signed contract, OriginOil has scheduled construction of an EWS Petro Model P160, capable of processing up to 160 liters (65 gallons) per minute. OriginOil's finance partner, VenPro Partners, will provide the capital for the construction of the system. The system is designed to treat frac flowback or produced water for immediate reuse and will be built on skids so that it can easily be moved from site to site.
"We have been supplying modular tanks to the oil patch for years and are continually being asked if we supply water treatment equipment," said Bob Isom, CEO of Industrial Systems, Inc. "After researching the various water treatment systems on the market, we selected Electro-Coagulation as the best process, and OriginOil's as best-performing among the choices, which include Halliburton, Ecosphere and others." CEO Isom continued, "Our plan is to deploy the first system in the first quarter of 2014 in the intermountain area in Colorado and to order five additional systems for the Bakken and Permian basins." "We are excited by this first acceptance of our pay-per-barrel Throughput Program," said Bill Charneski, COO of OriginOil. "It removes any hurdles for oil service and water treatment companies to launch or dramatically improve their water recycling business.