Announcements

Colorado-based Industrial Systems Inc. sells four OriginOil-based systems to be deployed in Trinidad and Tobago

Los Angeles, CA – September 22, 2014 – OriginOil Inc. (OTC/QB: OOIL), developer of Electro Water Separation™ (EWS), the high-speed, chemical-free process to clean up large quantities of water, today announced that Delta, Colorado-based Industrial Systems Inc. (ISI) has sold four industrial systems, powered by OriginOil’s EWS, to Synergy Resources for produced water and oily waste treatment in Trinidad and Tobago (T&T). This milestone represents the first commercial sale by an OriginOil licensee of a system incorporating EWS.

“We’re happy to report that our customer, Synergy Resources Ltd, has just placed an order, with a first milestone payment, for four water treatment units to be used for evaporation pit clean-up in Trinidad and Tobago,” said Robert Isom, chief executive officer and president of Industrial Systems Inc. “We’re gratified to see that our major investment in EWS-based systems is now showing results with this first sale.”

The four units, built for on-site processing of waste oil, are each capable of treating 250 barrels per day of contaminated water. Synergy Resources, of oil-rich Trinidad & Tobago, expects the system to reduce water treatment costs, lessen adverse environmental impacts, decrease freshwater requirements for industrial processes such as steam reinjection for enhanced oil recovery, and help operators comply with environmental regulations.

“This is the first of many end-user sales by OriginOil licensees,” said Bill Charneski, president of OriginOil Oil & Gas. “Licensees like ISI are working hard to integrate our process into their systems and it’s gratifying to see the first result from their efforts. ‘Powered by OriginOil’ is now becoming a reality.”

“We know EWS can help companies meet their legal environmental obligations in an environmentally safe, efficient, effective and low-cost manner. These first four P250 systems will be used to demonstrate the efficacy of EWS for treating produced water, which is a major concern for all upstream operators,” stated David Ramjohn, chief executive officer of Synergy Resources Limited. “Eventually we plan to offer the services to all the major players in the country, such as the state-owned PETROTRIN, BPTT, REPSOL, BGTT, BHP Billiton, EOG Resources, Lease Operators Limited, and Trinity Exploration.”

Trinidad and Tobago is the largest oil and gas producer in the Caribbean with significant activity by major multinational oil and gas corporations. The country also has extensive environmental legislation, including the Water Pollution Rules, implemented in 2001 under the Environmental Management Act, which regulate the quality of effluent from oil and gas facilities and requires treatment of produced water before discharge to the environment.

“Synergy Resources recognized the potential for application of the EWS technology to Trinidad and Tobago’s oil and gas industry as far back as June 2013 when we first saw the prototype at OriginOil’s headquarters in Los Angeles,” said Elvis Seelochan, president of Synergy Resources Limited. “We were therefore very pleased to be the only international company present at the launch of the technology at ISI in Delta Colorado in May 2014 (video).” Seelochan further added, “We are confident in the technology’s ability to deliver and intend to establish a separate division within Synergy specifically to offer services to the oil and gas companies that need to address the problems associated with treatment and discharge of produced water.”

ISI became an OriginOil licensee in 2014 to expand its core business of building and selling large-capacity storage tanks, which are used to store water for the oil and gas drilling and fracking industry.

“ISI will integrate our process with existing filtering and membrane systems that typically suffer from clogging without our pre-treatment”, stated Lee Portillo, OriginOil vice president of engineering. “This is a challenging assignment, but we believe we can help recover significant amounts of valuable oil, while delivering cleaned water for beneficial uses.”

OriginOil is currently scheduling demonstrations/test programs to numerous mid-size oil service and disposal well companies. EWS was first demonstrated at ISI’s Colorado headquarters as part of OriginOil’s CLEAN-FRAC™ 1000 end-to-end system, rated to process up to 1000 barrels per day, which included an iSep™ UltraFiltration (UF) membrane system from TriSep Corporationto provide downstream polishing. CLEAN-FRAC is designed to incorporate advanced downstream treatment steps as needed to meet a customer’s specific water quality needs.