RG Global Lifestyles signs $20M contract with Yates Petroleum

July 9, 2007
Catalyx Fluid Solutions (CFS), a division of RG Global Lifestyles Inc., has signed a five-year contract with Yates Petroleum, one of the U.S.' top 30 natural gas production companies, for RG Global to construct and operate a water treatment plant in Wyoming employing RG Global's proprietary ion exchange technology that will remove contaminants from the produced water associated with coal bed methane (CBM) production. The project will be implemented in three phases, each phase generating...

• Catalyx ion exchange technology provides eco-friendly, cost-efficient coal bed methane wastewater treatment, exceeds tough requirements for wastewater discharge

RANCHO SANTA MARGARITA, CA, July 9, 2007 -- Catalyx Fluid Solutions (CFS), a division of RG Global Lifestyles Inc., has signed a five-year contract with Yates Petroleum, one of the U.S.' top 30 natural gas production companies, for RG Global to construct and operate a water treatment plant in Wyoming employing RG Global's proprietary ion exchange technology that will remove contaminants from the produced water associated with coal bed methane (CBM) production. The project will be implemented in three phases, each phase generating $6.8-7.0 million over five years. The first phase is expected to be operational in seven to eight months, with all three phases expected to be completed within 18 months, resulting in a total revenue stream of $20-22 million over the length of the contract. The client will have the right to extend the term of the contract beyond the first five years when regulatory authorities extend their discharge permits.

RG Global's CFS system enables removal of sodium, barium, iron and other inorganic contaminants that can pose an environmental threat from CBM-produced water for significantly less cost per barrel than the prevailing industry rates.

Catalyx's flexibility allows energy companies to instantly adapt to changing wastewater conditions. The treated water will be totally safe for irrigation and wildlife with no hazardous byproduct. With razor thin margins in CBM production, Catalyx's lower cost makes it economically feasible to ramp up production of this plentiful form of clean-burning energy.

"Our sodium removal capability and low cost could be critical factors in restarting the CBM operations idled in multiple states due to environmental reasons, as well as make new drilling and production feasible," said RG Global Chief Technology Officer Juzer Jangbarwala.

The CFS system removes the sodium and other contaminants, making more than 99% of the water fit for discharge or irrigation, therefore generating less than 1% as a non-hazardous waste stream primarily consisting of sodium sulphate (a.k.a. Glauber's salt) that can be concentrated and sold as a raw material to several industries. Competing technologies produce up to 15% byproduct stream, typically sodium chloride.

Existing technologies have been unable to cost effectively treat water to meet Montana and Wyoming's stringent discharge standards, resulting in the shut down of several wells and drilling operations.

RG Global Lifestyles Inc. develops and markets water purification and wastewater treatment products and technologies as well as bottled beverages. Its RGBL Water Solutions division focuses on the sale/lease, of its Catalyx® proprietary wastewater treatment technology for energy production and industrial applications. RG's OC Energy™ division manufactures and distributes bottled energy drinks and oxygenated water under the OC Energy brand. The Aquair™ subsidiary is the exclusive distributor of licensed atmospheric water generators that produce purified water from air.

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