Ecosphere Technologies Inc., a diversified water engineering and environmental services company, today announced that it and its majority owned subsidiary Ecosphere Energy Services, LLC have signed an exclusive technology licensing agreement with Hydrozonix, LLC, an oil and gas services company with environmentally responsible technologies to help manage their industrial clients’ water recycling programs.
Per the agreement, Ecosphere will deploy its patented Ecosphere Ozonix technology in the U.S. oil and gas exploration and production industry. For Hydrozonix to maintain its exclusive position in the onshore oil and gas shale plays across the U.S., the agreement calls for Hydrozonix to buy a certain number of Ecosphere’s new EF60 mobile high volume water treatment units each quarter during the initial 24 months.
The EF60 allows energy producers to recycle 100 percent of their production and flowback waters, decreasing the amount of equipment footprint at the frac site while increasing mobility from frac site to frac site.
If Hydrozonix purchases the minimum number of units each quarter, Ecosphere said it will achieve approximately $44 million of revenue over the next 24 months, plus recurring performance-based royalties. After the 24-month period, Hydrozonix can maintain its exclusive license by meeting annual minimum purchases of EF60 over the 20-year life of the Ecosphere Ozonix patents.
“It is a pleasure to announce that we have signed an agreement with Hydrozonix to become our exclusive partner in licensing and deploying our patented Ozonix technology to the U.S. oil and gas exploration and production industries. One of our objectives over the past 12 months has been to find the right industrial services company to deploy our patented Ozonix technology to this market. Hydrozonix’s principals have all managed some of the most prestigious and difficult engineering contracts in the U.S. during the past 20 years. They understand how to take unique technical equipment to the field and service their customers. We could not have found a better partner,” Charles Vinick, chairman of Ecosphere Energy Services and chairman and CEO of Ecosphere Technologies stated in the press release.
For more information visit www.ecospheretech.com or www.elyfrac.com