HOUSTON, TX--(Marketwired - January 28, 2015) - HII Technologies, Inc. (HIIT) ("HII Technologies" or the "Company"), an oilfield service company focused in frac water management headquartered in Houston, Texas, today announced an exclusive agreement with HydroFLOW® Holdings USA, LLC. Under this agreement, the Company receives the exclusive right provide bacteria deactivation and removal services to the Oil & Gas frac water industry using the patented Hydropath technology which powers the HydroFLOW® water treatment devices. The agreement covers the entire domestic United States for at least ten years and its exclusivity provisions are subject to customary purchase minimums per year.
Marketed as AES HydroFLOW®, the Company has launched this new bacteria deactivation service for treating frac water "on-the-fly" to the frac during water transfer. It also is available for flow back, frac pit circulation and recycling applications where water is to be used in completions. HydroFLOW® has been proven to reduce up to 99% of bacteria in water prior to use downhole in oilfield fracing at costs that are 50% to 80% cheaper than current industry approaches of biocide and chemical treatments to water. According to the National Association of Corrosion Engineers (NACE), estimates of total costs attributed to all types of corrosion are upwards of $200 billion. Microbiologically Influenced Corrosion (MIC) is estimated to account for as much as 40-50% of all internal corrosion. AES HydroFLOW® eliminates sulfate reducing and acid reducing (SRB and ARB) bacteria, which account for corrosion downhole.
The patented technology is utilized by attaching the AES HydroFLOW® unit to the outside of water transfer pipe or hose of any customary diameter size. The AES HydroFLOW® units induce a safe electric signal of ±150kHz into any size water pipe on which they are installed (metal or PVC). This charge forms a hydration layer of pure water around the cell. Osmosis forces water into the bacteria and/or algae, creating osmotic pressure, which ruptures the cell membrane and causes the cell to die. In addition, the electric signal flowing through the metal pipe agitates existing bacteria colonies and causes them to gradually release. AES HydroFLOW® operates continuously treating water in pits or during in-bound transfer to the frac for a fraction of the cost of chemical biocides, while maintaining constant treatment rather than the additional costs and inefficiencies associated with periodic doses. The Company believes this new approach is a major industry advance as a cost-effective method for reducing bacteria in frac water pipelines, ponds, and tanks at high flow rates.
The ability to validate bacteria destruction is important to customer acceptance. Via another partnership, the Company can now offer a proprietary onsite test to determine whether bacteria have been reduced or removed. The proprietary Rapid-B™ mobile bacteria analyzer, unrelated to HydroFLOW®, allows for immediate onsite verification of the total bacteria count in the water. Bacteria counts are analyzed with this Rapid-B™ test in-field within 15 minutes rather than today's current practice of shipping samples to laboratories and waiting days for results. This agility allows for validation of bacteria counts prior to the water being used in the frac. HII Technologies is the only company that offers these services in the US and believes it has a 'first mover' advantage in oilfield services to utilize onsite rapid bacteria testing technology to validate the effectiveness of the HydroFLOW® device in real-time.
Brent Mulliniks, President of AES Water Solutions commented, "We have tested the effectiveness of the Hydropath technology in the latter half of 2014 with select customers with encouraging results and cost reductions giving our customers the opportunity to avoid expensive biocide treatments. During this apparent industry downturn with oil prices, reducing costs and gaining efficiencies are important to our customers. We believe that the AES HydroFLOW® is a breakthrough for operating costs savings while providing sustainable chemical-free water treatment that the industry is seeking." Mr. Mulliniks continued, "This patent protected technology improves sustainable water use and adds to our comprehensive suite of frac water management solutions. The Rapid-B™ testing technology sourced from another partnership gives onsite analytics for customers to immediately understand the impact of this new service offering."
The Company currently charges day rate and monthly service contract agreements for AES HydroFLOW® and per diem/per test charges for its onsite rapid bacteria testing services.
About HII Technologies, Inc.
HII Technologies, Inc. is a Houston, Texas based oilfield services company with operations in Texas, Oklahoma, Ohio and West Virginia. By focusing on the critical service areas of Water, Safety and Power, the Company is positioned to take advantage of the changing environment in horizontal drilling and hydraulic fracturing within the United States' active shale and unconventional "tight oil" plays. The Company's frac water management division does business as AES Water Solutions, Hamilton and AquaTex, its onsite oilfield contract safety consultancy does business as AES Safety Services, and its mobile oilfield power subsidiary does business as South Texas Power (STP). The holding company, HII Technologies' objective is to bring proven technologies to these operating divisions to build a long-term competitive advantage for its stakeholders. Read more at www.HIITinc.com, www.AESWaterSolutions.com, www.AquaTexUSA.com, www.HamiltonFracWater.com, www.AESSafetyServices.com and www.Oilfield-Generators.com.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements as to matters that are not of historic fact are forward-looking statements. These forward-looking statements are based on HII's current expectations, estimates and projections about HII, its industry, its management's beliefs and certain assumptions made by management, and include statements regarding estimated capital expenditures, future operational and activity expectations, international growth, and anticipated financial performance in 2015. No assurance can be given that such expectations, estimates or projections will prove to have been correct. Whenever possible, these "forward-looking statements" are identified by words such as "expects," "believes," "anticipates" and similar phrases.
Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict, including, but not limited to: risks that HII will be unable to achieve its financial, capital expenditure and operational projections, including quarterly and annual projections of revenue and/or operating income and risks that HII's expectations regarding future activity levels, customer demand, and pricing stability may not materialize (whether for HII as a whole or for geographic regions and/or business segments individually); risks that fundamentals in the U.S. oil and gas markets may not yield anticipated future growth in HII's businesses, or could further deteriorate or worsen from the recent market declines, and/or that HII could experience further unexpected declines in activity and demand for its hydraulic frac related water transfer business, its safety consultancy business or its generator and related equipment rental service businesses; risks relating to HII's ability to implement technological developments and enhancements; risks relating to compliance with environmental, health and safety laws and regulations, as well as actions by governmental and regulatory authorities; risks that HII may be unable to achieve the benefits expected from acquisition and disposition transactions, and risks associated with integration of the acquired operations into HII's operations; risks, in responding to changing or declining market conditions, that HII may not be able to reduce, and could even experience increases in, the costs of labor, fuel, equipment and supplies employed and used in HII's businesses; risks relating to changes in the demand for or the price of oil and natural gas; risks that HII may not be able to execute its capital expenditure program and/or that any such capital expenditure investments, if made, will not generate adequate returns; and other risks affecting HII's ability to maintain or improve operations, including its ability to maintain prices for services under market pricing pressures, weather risks, and the impact of potential increases in general and administrative expenses.
Because such statements involve risks and uncertainties, many of which are outside of HII's control, HII's actual results and performance may differ materially from the results expressed or implied by such forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Other important risk factors that may affect HII's business, results of operations and financial position are discussed in its most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and in other Securities and Exchange Commission filings. Unless otherwise required by law, HII also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. However, readers should review carefully reports and documents that HII files periodically with the Securities and Exchange Commission.