April 21, 2015 Erin

Statoil Awards Ferus LP major CO2 Service Contract in North Dakota

Use of CO2 in Statoil’s Bakken hydraulic fracturing operations expected to increase oil recovery while significantly reducing amount of water used.

HOUSTON, April 21, 2015 /PRNewswire/ — Statoil, an innovative international energy company, has demonstrated environmental and economic leadership by awarding a major carbon dioxide (CO2) supply and service agreement to Denver-based Ferus LP (Ferus), the premier provider of energized fluids (liquid CO2 and liquid nitrogen (N2)) to the North American oil and gas industry.

The liquid CO2 will be used in a test well to evaluate the potential production uplift and partially replace water in a large multi-stage hydraulic fracturing operation in a horizontal oil well. In addition to CO2 supply, Ferus, specialists in the off-road movement of industrial gases, will provide transportation, logistics, storage, and on-site supervision. The service agreement also includes the deployment of a membrane technology that separates the CO2 from the produced gas to reduce the extent of flaring.

This CO2 stimulation test is one of several projects under Powering Collaboration – the joint technology program between Statoil and GE aimed at accelerating the development of sustainable energy solutions. The use of CO2 as an energized fluid is common in the Western Canadian Sedimentary Basin but this will be the first major application of liquid CO2 to displace slickwater during the hydraulic fracturing process in the Bakken.

“Ferus is pleased to partner with a progressive and environmentally conscious company like Statoil to introduce CO2-based energized fracturing into the Bakken,” says Murray Reynolds, P.Eng., Director of Technical Services at Ferus. “This single job will conserve thousands of barrels of fresh water and is expected to enhance well productivity,” added Lionel Ribeiro, PhD, Researcher Drilling and Well Technology with Statoil Gulf Services.

In collaboration with the University of Texas at Austin (Joint Industry Project on hydraulic fracturing), Ferus and Statoil have demonstrated through numerous technical studies on North American reservoirs the potential for CO2 to enhance well productivity, while significantly reducing fresh water usage.

The proposed CO2-assisted stimulation design has been further tailored for the Bakken formation to optimize the production uplift.

This contract represents the second major partnership between Statoil and the Ferus Group of Companies in the Bakken. In September, 2014, Statoil, GE and Ferus Natural Gas Fuels LP (Ferus NGF) announced the commercial expansion of a pilot project to capture flare gas and use it to power Statoil’s oil and gas operations in North Dakota. The Ferus NGF-GE joint venture solution is helping Statoil and other E&P companies greatly reduce flaring and monetize previously wasted gas by capturing it and using it to economically fuel their own operations.

About Statoil

Statoil is an international energy company with operations in 36 countries. Building on 40 years of experience from oil and gas production on the Norwegian continental shelf, we are committed to accommodating the world’s energy needs in a responsible manner, applying technology and creating innovative business solutions. We are headquartered in Stavanger, Norway with approximately 23,000 employees worldwide, and are listed on the New York and Oslo stock exchanges.

About Ferus

Ferus Inc. and Ferus LP, privately-held by the Energy & Minerals Group and part of the Ferus Group of Companies, deliver integrated solutions to the energy industry for well stimulation, well completions and enhanced oil recovery applications. Ferus provides a dedicated supply of energized fluids (liquid CO2 and N2), as well as the related logistical and operational services to deliver those products to our customers in the energy industry, no matter how complex or remote the terrain. Ferus Inc. and LP currently own and operate eight CO2 and N2 plants, which are strategically located throughout the Western Canada Sedimentary Basin, north-eastern U.S. and U.S. Rockies, as well as a fleet of over 300 transportation and storage assets that are specifically designed for oilfield operations.

Sister companies Ferus Natural Gas Fuels Inc. and LP provide end-to-end liquefied natural gas (LNG) and compressed natural gas (CNG) fueling services including liquefaction, compression, transportation, storage and delivery to our customers in all end-use high horsepower industries. For more information, visit www.ferus.com.

About The Energy & Minerals Group

EMG is the management company for a series of specialized private equity funds. The Firm was founded by John Raymond (majority owner and CEO) and John Calvert in 2006. EMG focuses on investing across various facets of the global natural resource industry including the upstream and midstream segments of the energy complex. EMG has approximately $15.5 billion of regulatory assets under management (RAUM) and approximately $8.2 billion in commitments have been allocated across the energy sector since inception. For additional information, please visit www.emgtx.com.

For more information, contact:

Kirsten Henriksen
+1 713 269 8927
Blaire Lancaster
+1 403 605 9755