Ecosphere Technologies Inc (ESPH.OB) is an advanced water technologies company. The company has been a water industry innovator since it was founded in 1998 to develop eco-friendly technologies to solve major water remediation challenges on land and at sea. Since its founding, the company has developed numerous patents addressing large-scale water challenges where effective water treatment plays a vital role in keeping manufacturing and production processes flowing.
Ecosphere has had several very successful products. In the maritime industry, their Ecosphere Ozonix technology is used in treating ballast water before its discharge from ships traveling to world ports. This helps prevent the introduction of invasive species in foreign waters during ballast water discharge. Another product is Ecosphere’s mobile water filtration systems which can be deployed to clean and filter the most highly contaminated waters. This product is being used by first responders and organizations dedicated to natural disaster relief worldwide.
Ecosphere’s focus has currently turned to the oil and gas industry, and the use in that industry of their Ecosphere Ozonix technology. New and innovative water fracturing methods are driving exploration of unconventional gas plays in the U.S. The company’s Ecosphere Ozonix process is used in treating ‘frac’ flowback water produced during gas well extraction. This process has proven its potential to help energy companies improve water management and conserve water while reducing production costs and extending productive well life.
It is this process which is the backbone of the newly formed company. Its wholly owned subsidiary, Ecosphere Energy Solutions, has granted an option to Bledsoe Capital to form a new company which will be owned on a 50/50 basis. This new company will acquire an exclusive worldwide license for the use of the Ecosphere Ozonix technology in the energy business.
Upon successful completion of Ecosphere’s 90-day pilot program with Devon Energy(DVN) in the Barnett Shale area of Texas, Bledsoe Capital may exercise its purchase option. Bledsoe’s total commitment will amount to $50 million with $10 million of that as a licensing fee. The remaining $40 million will be used to facilitate the building of additional Ecosphere Ozonix equipment as well as to fund marketing and continuing operations.
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