LOS ANGELES, CA - June 11, 2012 (Investorideas.com water stocks newswire) - Sionix Corporation (OTCBB: SINX) announced today the formation of four additional Williston Basin LLCs ("WBIII" through "WBVI"), Nevada limited liability companies, as affiliate companies to the previously announced Williston Basin I LLC ("WBI") and Williston Basin II LLC (WBII).
Subscription documents representing a 35% membership interest in LLCs II through VI have been received from REVH2O LLC ("REVH2O"), a diversified fluids management and services company serving the O&G industry primarily in Pennsylvania . REVH2O holds a minority membership interest in WBI and is a long-time shareholder in Sionix.
Sionix will retain a 65% interest in each newly formed LLC. Upon completion of certain performance conditions by WBI, these subscriptions will be fully funded and converted to membership interests, representing cash infusion of approximately $7,500,000.
"REVH2O LLC is pleased to extend its relationship with Sionix for the next stage of the Williston Basin remediation projects. Our successful efforts to secure financing for the next five Williston Basin deployments is a major accomplishment that will likely result in a streamlined deployment of these critical economic and environmentally important water remediation services," stated David Kailbourne, CEO of REVH2O. "Drilling fluids are a major cost component to E&P operators. It is our goal to reduce the overall cost structure of local drilling operations, and we believe the ability of the Sionix MWTS to efficiently and economically remediate drilling fluids on site can be of great benefit to E&P customers."
Jim Currier, CEO of Sionix, stated, "The formation of LLCs operating Sionix MWTS equipment in the Williston Basin represents a significant milestone in the development of Sionix as a long-term provider of water treatment and fluids management. As energy harvesting operations continue their rapid expansion in the Williston Basin of North Dakota and as energy production and environmental challenges coalesce through both self-regulation and responsible governmental oversight, Sionix expects to play a meaningful role in bridging those important issues."
Proceeds from these membership subscriptions will be allocated to component acquisitions for each MWTS, including treatment equipment and necessary support products, as well as working capital to support initial operations.
As previously announced, Sionix personnel will be responsible for the operation and maintenance of the MWTS and their performance under the Company's contract with McFall Incorporated, a Washington based construction and logistics firm operating as a Master Service Contractor to major E&P companies in the Williston Basin.
About Sionix Corporation
Sionix designs innovative and advanced MWTS intended for use in energy, government facilities, healthcare facilities, emergency water supplies during natural disasters, housing development projects, and various industrial processes including subterranean fracturing used in oil and gas drilling. These systems can be located adjacent to contaminated water sites or as a pre-treatment for reverse osmosis and other membrane applications. Industries involved in dairy, agribusiness, meat processing, mining, poultry operations, and many others can benefit from Sionix' cost-effective, easily maintained, portable water treatment systems. For more information about the Company, go to www.sionix.com.
About REVH2O LLC
REVH2O provides a fluids management suite-of-services to drillers and producers to reduce their overall costs and maximize their efficiency of operations. REVH2O addresses the critical need for fluids remediation & recycling by providing water treatment through both fixed-base facilities and on-site operations. It also offers fluids transport solutions as well as fresh water sourcing. REVH2O is currently constructing its primary water remediation & recycling facility in the heart of the Marcellus Shale (Ulysses, PA) gas formation. The facility utilizes mechanical low-cost water treatment.
All statements in this press release that are not statements of historical fact are forward-looking statements, including any projections of earnings, revenue, or other financial items, any statements of the plans, strategies, and objectives of management for future operations, any statements concerning proposed new products, services or developments, any statements regarding future economic conditions or performance, statements of belief and any statements of assumptions underlying any of the foregoing. These statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties include, but are not limited to, whether Sionix Corporation can raise capital as and when it needs to, whether the water purification systems will generate significant sales, whether it can compete successfully in its market and industry, and other factors beyond the control of Sionix Corporation, including those detailed from time to time in the reports filed with the Securities and Exchange Commission. Sionix Corporation assumes no obligation and does not intend to update these forward-looking statements.
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