Water Standard Sells Minority Stake to Mitsui as Mitsui makes its First Investment in EOR

HOUSTON, Texas (May 30, 2012) — Water Standard Management (US), Inc. (Water Standard), a company focused on water treatment for enhanced oil recovery (EOR), announced today that Mitsui & Co., Ltd. (Mitsui) has acquired a minority interest in Water Standard as it pursues opportunities in the emerging global EOR market. Water Standard is a recognized leader in water based EOR, providing specialized water treatment services for both EOR and produced water, offshore and onshore. Water Standard is actively participating in the design and development of a number of closely watched offshore EOR projects in Asia that will incorporate next generation water related technologies promising significant improvement in overall EOR economics and efficiencies. BoyarMiller Shareholder Bill Boyar and Business Group Associate Blake Royal represented Water Standard in the transaction.

“We are extremely pleased to close this transaction with Mitsui,” said Amanda Brock, CEO of Water Standard. “Mitsui shares our belief that we will see rapid growth globally in EOR. With their strategic support and the synergies we have identified in their existing portfolio of companies, Water Standard will continue to expand its capabilities and geographic reach and its development of products and services needed for effective implementation of water based EOR.”

Demand for EOR products and services to increase recovery rates is expected to grow significantly, driven by declining production in mature reservoirs and the cost of developing new reserves. Water based EOR is one of the fastest growing segments in secondary and tertiary EOR, demonstrating, in some cases, incremental oil recovery of 10 to 30 percent.

“Mitsui views Water Standard, with its unique water-based solution for the oil industry, as a contributor with significant potential for effective utilization of the limited hydrocarbon resources on the earth which coincides with Mitsui’s dedication to a sustainable society,” said Jun Aketa, a General Manager of the First Projects Development Division in Mitsui.

While Water Standard is strategically focused on immediate EOR opportunities in Asia, it is also developing projects in other regions including the Americas, Africa and Europe. The Company is currently working with several oil producers to develop solutions specifically designed to meet their unique water treatment requirements. Its H2Ocean Spectrum™ Technology was recently validated during pilot testing, confirming its ability to provide the unique flexibility needed to optimize EOR performance. H2Ocean Spectrum™ effectively addresses challenging water requirements and customizes water quality in real time adapting to not only the quality of the source water, but also changing reservoir needs during the life of a project.

About Mitsui & Co., Ltd.
Mitsui is one of the most diversified and comprehensive trading, investment and service enterprises in the world, with 154 offices in 69 countries as of April, 2012. Utilizing the global operating locations, network and information resources, Mitsui is multilaterally pursuing business that ranges from product sales, worldwide logistics and financing, through to the development of major international infrastructure and other projects in the following fields, Iron & Steel Products, Mineral & Metal Resources, Infrastructure Projects, Motor Vehicles, Marine & Aerospace, Chemicals, Energy, Foods & Retail, Consumer Services, Information, Electronics and Telecommunications, Financial Markets and Transportation Logistics. For more information, visit: http://www.mitsui.com/jp/en/index.html

About Water Standard
Water Standard is a private company founded in 2008 with primary financial sponsorship from Och-Ziff Capital Management LLC and its affiliated funds and the Ospraie Special Opportunities Fund. Water Standard is a global water treatment specialist and recognized leader in delivering innovative desalination, water-based enhanced oil recovery and produced water solutions to the onshore and offshore oil & gas industry. The Company uses proprietary designs and processes employing proven technologies incorporated into modular offshore and onshore customized water treatment systems. Water Standard offers flexible contract options for products and services ranging from specialized engineering and design to turnkey and fully outsourced OPEX solutions. For more information visit: www.waterstandard.com.