Energy Recovery Signs 15-Year License With Schlumberger to Provide Exclusive Rights to Its VorTeq(TM) Hydraulic Fracturing Technology
(Thomson Reuters ONE) -
Deal Includes $125 Million in Upfront Payments Paid in Stages to Energy Recovery
SAN LEANDRO, Calif., Oct. 19, 2015 (GLOBE NEWSWIRE) -- Energy Recovery, Inc.
(NASDAQ:ERII), the leader in pressure energy technology for industrial fluid
flows, today announced a 15-year deal with Schlumberger Technology Corporation,
the world's leading supplier of geoscience, engineering, drilling, and data
management software products and computing services for the exploration and
production industry. The agreement provides exclusive rights to Energy
Recovery's VorTeq(TM) hydraulic pumping system, the first hydraulic fracturing
manifold ("missile") built to isolate hydraulic fracturing pumps from abrasive
proppants that cause pump failure.
The VorTeq system is a hydraulic pumping system that replaces the missiles
traditionally used in hydraulic fracturing. In current operations, the missile
routes water, proppants (sand or ceramics) and chemicals downhole at treating
pressures up to 15,000 psi. However, the proppants cause frequent failures in
the high pressure hydraulic fracturing pumps. With VorTeq, high-pressure
hydraulic fracturing pumps will process clean or proppant-free water and
transfer the hydraulic energy to the hydraulic fracturing fluid within the
VorTeq missile.
Under the terms of the agreement, Schlumberger will pay a $75 million
exclusivity fee immediately. Schlumberger will also pay two separate $25 million
milestone payments (for a total of $50 million) subject to the Company
satisfying certain key performance indicators expected to occur in 2016. The
agreement also includes continuing annual royalties for the duration of the
license agreement subject to the Company satisfying certain key performance
indicators.
Energy Recovery's President and Chief Executive Officer Joel Gay stated, "We are
thrilled to be working with Schlumberger, the world's largest oil field services
company, and a leading supplier of technology associated with hydraulic
fracturing solutions. We believe VorTeq is a paradigm shift for the hydraulic
fracturing industry as it significantly reduces maintenance costs associated
with pumping downtimes and provides considerable redundancy efficiencies."
"We believe this technology offers Schlumberger the immediate benefit of
reducing wear and tear on its pumps, as well as reducing downtime. In the
medium-term, we believe it provides Schlumberger additional savings associated
with eliminating redundant equipment onsite," said Gay. "For a company in this
market who wants to keep producing but needs to be mindful of costs, this
technology tackles these challenges and delivers meaningful results."
The heart of the VorTeq system is Energy Recovery's Pressure Exchanger
technology, which is the leading pressure energy recovery device in desalination
with over 16,000 devices deployed globally. The technology works by capturing
and recycling otherwise wasted pressure energy in fluid flows, by a clean
liquid-to-liquid energy exchange between high pressure and low pressure fluids.
With a single moving part made of tungsten carbide, one of the most abrasion
resistant materials on the planet, the system has been engineered to withstand
tremendous pressure and harsh conditions, and transfers up to 95% of the
hydraulic energy from one fluid to the next.
Conference Call
The Company will host a teleconference at 5:30 a.m. (Pacific Time) on Tuesday,
October 20(th), 2015 to discuss the deal. To listen to the live call,
individuals can access the conference call by dialing 877-415-3185, passcode
#64509095 approximately 10 minutes before the scheduled start time. For those
who cannot listen to the live broadcast, replays will be available shortly after
the call on the Company's website.
About Energy Recovery
Energy Recovery (NASDAQ:ERII) recycles and converts wasted pressure energy into
a usable asset and preserves pumps that are subject to hostile processing
environments. With award winning technology, Energy Recovery simplifies complex
industrial systems while improving productivity, profitability, and efficiency
within the oil & gas, chemical processing, and water industries. Energy
Recovery products save clients more than $1.5 billion (USD) annually.
Headquartered in the Bay Area, Energy Recovery has offices in Ireland, Shanghai,
and Dubai. For more information about the Company, please visit our website at
www.energyrecovery.com.
Forward-Looking Statements
This press release contains forward-looking statements that reflect management's
current expectations, assumptions and estimates of future performance and
economic conditions. Such statements are made in reliance upon the safe harbor
provisions of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. The company cautions investors that any
forward-looking statements are subject to risks and uncertainties that may cause
actual results and future trends to differ materially from those matters
expressed in or implied by such forward-looking statements. Statements about our
expectations as to receipt of milestone payments, and future revenue growth
related to royalty payments are forward-looking and involve risks and
uncertainties including but not limited to the meeting of key milestones,
adoption rates, and deflationary oil pricing. Energy Recovery disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise.
CONTACT: FTI Consulting Marc Cunningham
ir(at)energyrecovery.com (713) 353-5407
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Energy Recovery via GlobeNewswire
[HUG#1959936]
Datum: 19.10.2015 - 22:35 Uhr
Sprache: Deutsch
News-ID 427942
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"Energy Recovery Signs 15-Year License With Schlumberger to Provide Exclusive Rights to Its VorTeq(TM) Hydraulic Fracturing Technology"
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