Investor Presentation – November 2, 2011TSX-V: RLE
Forward Looking StatementsCertain information set forth in this presentation, including managements assessment of future p...
Company OverviewRidgeline is an energy services technology company focused on providing water treatmentsolutions to the oi...
Industry Demand• The North American oil and gas industry is seeing an increasing use  of water-intensive production method...
Frac Market OpportunityFracking and Produced Water Market•    The oil industry produces 2.5 times more water than oil•    ...
Chemical Flood andOil Sands Market OpportunityOil Sands Market                                                            ...
Economic OpportunityRidgeline owns and operates the treatment assets                 2000M3/DAY CORE UNIT• Volume-based tr...
The Technology• Developed by Dennis Danzik the inventor of the proprietary electro-catalytic process effectively treats  l...
Competing Technologies                                     Effectiveness                                  Productivity    ...
Energy Consumption                                                                     kW Per                          Ene...
Leonard Shale, New Mexico       Analytical Results                                                                        ...
Commercial DevelopmentCommercial installations in and under construction    1.   Gas shale produce and frack water treatme...
Mobile Development Lab• Waste water and material evaluation unit that is transportable to site• Scientifically characteriz...
Milestones                                                                                     Announces       Commissioni...
Targeted Customers             Ridgeline has done work for over 40 oil and gas companiesConventional & Unconventional Oil ...
Ridgeline Environment•   Offers complete environmental solutions    for oil and natural gas producers:      Site assessme...
Ridgeline Greenfill•   Solution for O&G customers to transform contaminated soil into safe landfill cover      Existing l...
Management TeamTony Ker, CEO & Director – Over 25 years of experience building & operating companies in naturalresources &...
Board of DirectorsDouglas Johnson, Chairman – Over 30 years of experience in the financing of public & privatecompanies. S...
Investment Highlights Established energy services business with tier 1 customer base serving oil and gas  industry—provid...
Thank You.Ridgeline Energy Services Inc.Company Contact:                                  Investor Relations:Ridgeline Ene...
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Ridgeline presentation nov 3 2011 release

  1. 1. Investor Presentation – November 2, 2011TSX-V: RLE
  2. 2. Forward Looking StatementsCertain information set forth in this presentation, including managements assessment of future plans andoperations, contains forward-looking statements. By their nature, forward-looking statements are subject tonumerous risks and uncertainties, some of which are beyond our control. Those risks include, withoutlimitation, the effect of general economic conditions, risks associated with the oil and gas industry andcommercializing environmental technologies and services, loss of markets, industry conditions andcompetition, volatility of commodity prices, currency fluctuations, environmental risks, competition from otherindustry participants, the ability to access qualified personnel and field services, decisions by regulators andthe ability to access sufficient capital from internal and external sources. Readers are cautioned not to placeundue reliance on the forward-looking statements as the assumptions used in the preparation of suchinformation, although considered reasonable at the time of preparation, may prove to be imprecise and actualresults, performance or achievements could materially differ from those expressed or implied in such forward-looking statements and accordingly, no assurance can be given that any of the events anticipated by forward-looking statements will transpire or occur, or if any of them do so, what benefit Ridgeline Energy Services Inc.will derive therefrom. 2
  3. 3. Company OverviewRidgeline is an energy services technology company focused on providing water treatmentsolutions to the oil and gas industry• Has developed a commercially proven proprietary technology that efficiently treats contaminated water generated by oil and gas producers and commercial waste water• Primarily targeting produce and frack flowback water, additional targets are the chemical flood, and oil sands water treatment markets.• Solves client issues in sourcing water, storing water and dealing with waste water on site while cutting costs and dealing with environmental concerns• Positioning to be the leading oil and gas industry water treatment company in North America as the need for water and environmental concerns grow• Also has profitable Environmental and Greenfill divisions Issued and Outstanding 61,452,837 Warrants 15,498,211 $ 6,749,307 Options 5,132,504 $ 1,478,837 Fully Diluted 82,083,552 Water Technology Acquisition 34,581,743 Total 116,665,295 $ 8,228,144 Insider ownership (post water technology acquisition) - 55% Institutional ownership approximately 15-20% - Including Stephens Investment Management, a long fund, based on fundamental research 3
  4. 4. Industry Demand• The North American oil and gas industry is seeing an increasing use of water-intensive production methods to extract reserves• Shale Oil & Natural Gas Fracturing  Fracking involves stimulating a well bore using high pressure water laced with highly corrosive salts, carcinogens and radioactive elements  If not managed or treated appropriately, the produced water can end up in surface or groundwater systems and contaminate land, drinking water and waterways  The cost of water to frac wells has put pressure on the industry to find a solution so that the water can be re-used for multiple frac stages  Water related costs to the producer include purchasing and hauling freshwater, hauling process water to disposal wells, and disposal fees• Oil Sands  Through SAGD extraction, water creates steam used to heat raw, thick bitumen for extraction and processing  For every barrel of bitumen, between two and four barrels of fresh water are required to extract the bitumen from the sand  Creates huge, long life (30-40 year) toxic tailings ponds estimated to contain over 1 trillion m3 of toxic liquids  Industry to meet new environmental standards and directives 4
  5. 5. Frac Market OpportunityFracking and Produced Water Market• The oil industry produces 2.5 times more water than oil• By 2025 it will be producing 5 times more water than oil• Handling produced water is a tremendous growth market but the real opportunity is in treatment• Recycling produced water turns a waste into a valuable asset• In 2007 the oil and gas industry in the United States used approximately 21 billion barrels of water to frack oil and gas wells of which 97% is related to onshore production (1) US Shale Gas Production • Produced water is the largest volume 4.5 waste stream in oil and gas 4.0 3.5 production 3.0 Eagle Ford Marcellus • USA produced water 2.5 Haynesville 21 Billion bbl /yr TCF Woodford 2.0 Fayetteville Approximately 57 million bbl /day or 1.5 Barnett 1.0 Antrim 333 million m3/year or 913,000 m3/day (1) 0.5 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (1) Clark, C.E., and J.A. Veil, 2009, Produced Water Volumes and Management Practices in the United States, ANL/EVS/R-09/1 *Source: EIA, Richard Newell (Lipman Consulting) 5
  6. 6. Chemical Flood andOil Sands Market OpportunityOil Sands Market Mature Fine Tailings Volumes• According to company submissions, volume of FFT/MFT* will grow 30% from 843 million m3 in 2010 to over 1.1 billion m3 in 2020. By 2065, the volume of tailings will still be over 1.1 billion• SAGD and Chemical Floods use millions of cubic meters of water per year that can be re-used and recycled* refers to volumes stored in ponds Source: AltaCorp Capital –Company Reports, CAPP, AltaCorp Estimates Source: ERCB 6
  7. 7. Economic OpportunityRidgeline owns and operates the treatment assets 2000M3/DAY CORE UNIT• Volume-based treatment fees provide recurring revenue Annual volume M3/year 700,000 streams. Revenue $ 3,180,799• Fees to be determined by water quality, volumes, and the water product as determined by the client. $/m3 $ 4.54Produce and Frack Flowback Water Costs $ (1,296,959)• Ridgeline feels it can capture a significant portion of the Earnings before tax $ 1,883,845 produce and frack flowback water market within three to Depreciation (5 years) $ (401,996) EBIT $ 1,481,848 four yearsChemical Flood and Oil Sands – Mining and SAGD Alberta Tax Rate 26.5% $ (392,689) Earnings after tax $ 1,089,160• Chemical flood to improve oil recovery has the potential for significant water treatment volumes. Depreciation (5 years) $ 401,996• Significant opportunity to recover hydrocarbons in tailings to markedly offset treatment costs After tax Cash flow $ 1,491,156 Capital Cost $ (2,009,982) Payback (Years) 1.3 Internal Rate of return (5 years) 69% 7
  8. 8. The Technology• Developed by Dennis Danzik the inventor of the proprietary electro-catalytic process effectively treats large quantities and multiple types of oil and gas exploration and production wastewater• “Cracks” water at a sub-molecular level allowing “targeting” of reagents and mechanical processes to reduce suspended and dissolved solids, chlorides, dissolved gases, and other harmful contaminates• Benefits include very low energy consumption, high continuous flow rates, and can extract usable hydrocarbons Reactor at start Reaction to completion Extracted hydrocarbon Barrels of test water (100% process value) (97% reusable) (3%) 8
  9. 9. Competing Technologies Effectiveness Productivity Cost Efficiency Process Heavy Metals Chlorides TDS Energy Solids Fuel Treatment Capital Modular Continuous Removal Removal Removal Consumption Disposal Recovery Costs Costs Process ProcessElectro-CoagulationEvaporation/DistillationCavitationReverse OsmosisRidgelineElectro-Catalytic Weak Excellent 9 Vapex
  10. 10. Energy Consumption kW Per Energy Gallons Barrels m3 Cost Per Cost Per Cost Per 3 Hour kW Per Day Cost (Daily) Produced Produced Produced Gallon Barrel mElectrocatalytic 120 2,880 $202 500,000 11,905 1,894 $0.000 $0.02 $0.11Electrocoagulation 3,225 77,400 $5,418 500,000 11,905 1,894 $0.011 $0.46 $2.86Evaporation 2,423 58,152 $4,071 500,000 11,905 1,894 $0.008 $0.34 $2.15 kW Consumption per Hour Cost of Energy Consumed $3,500 $3.50 3,225 Total Daily Energy Consumption (kW per Hour) $3,000 $3.00 $2.86 2,423 $2.50 $2,500 $2.15 $2.00 Cost of Energy $2,000 $1.50 $1,500 $1.00 $1,000 $0.46 $0.50 $0.34 $500 $0.11 $0.00 $0.02 $0.01 $0.01 120 $0.00 $0 Electrocatalytic Electrocoagulation Evaporation Electrocatalytic Electrocoagulation Evaporation Cost Per Gallon Cost Per Barrel Cost Per m3 10
  11. 11. Leonard Shale, New Mexico Analytical Results Average Reduction 200000Average Results (mg/L) 150000 100000 50000 0 TDS TSS Chloride Barium Parameters Average Baseline Average Endpoint Average Barium Reduction Average TSS Reduction 0.4 2000 Average Results (mg/L) Average Results (mg/L) 0.2 1000 0 0 Barium TSS Average Baseline Average Endpoint Average Baseline Average Endpoint 11
  12. 12. Commercial DevelopmentCommercial installations in and under construction 1. Gas shale produce and frack water treatment, Horn River Shale, B.C. 1) Oil shale produce and frack water treatment, Leonard Shale, New Mexico and Texas 2) Polymer flood enhanced recovery crude oil process water treatment, Brintnell oil field, northern AlbertaDevelopment agreements 1) Chemical flood, produce and frack water treatment oil shale Waskada area of southwestern Manitoba 2) Commercial/industrial waste water treatment, Los Angeles CA. 12
  13. 13. Mobile Development Lab• Waste water and material evaluation unit that is transportable to site• Scientifically characterizes a wide variety of water sources for treatment, reuse, and recycling, as well as enhanced hydrocarbon recovery; develops water treatments that meet customer needs• Water treatment capability and quality can be determined during real-time operations 13
  14. 14. Milestones Announces Commissioning Built first Independent Successful Acquisition of firstDevelopment of Mobile Laboratory Trials of IP from CommercialTechnology Development Verification Completed Danzik system in Horn Laboratory Hydrological River 2005- 2009 January 2010 June 2010 October 2010 April 2011 June 2011 Install first Signed Development Commercial Install first commercial agreement to agreement to Install for  Fracking commercial installation install MDL install system Production  Oil Sands installation in for polymer Los Angeles, in Waskada Water units  Industrial Texas flood CA Manitoba Texas recovery September 2011 September 2011 September 2011 October 2011 December 2011 14
  15. 15. Targeted Customers Ridgeline has done work for over 40 oil and gas companiesConventional & Unconventional Oil & Gas CompaniesOil Sands Companies 15
  16. 16. Ridgeline Environment• Offers complete environmental solutions for oil and natural gas producers:  Site assessments (Phase I/II/III, EIA, water/wetland/biological, soils, etc.)  Implementation & project management of site remediation / reclamation programs  Services a range of upstream, mid-stream, & downstream producers• 90 employees – deployed with approximately 40 current clients• Provides $11+ million annual revenue run rate with 30% - 40% gross margins• Business continues expansion – year over year 16
  17. 17. Ridgeline Greenfill• Solution for O&G customers to transform contaminated soil into safe landfill cover  Existing landfills are ideal disposal sites for non-hazardous oilfield waste treatment hydrology, soil type, gradient)  Bacteria and microorganisms break down hydrocarbons into CO2 and water  Bioremediation and mechanical treatment takes place within bio-cells  After treatment, these soils meet unconditional land usage criteria• Approximately 70,000+ O&G sites in Alberta in need of treatment• O&G producers benefit from lower transportation costs & reduction of liability  Conventional methods involve storing at approved Class 2 landfills with expensive trucking/disposal costs, and retention of liability by producer 17
  18. 18. Management TeamTony Ker, CEO & Director – Over 25 years of experience building & operating companies in naturalresources & manufacturing sectors in N.A. Leading and developing management teams that supportgrowth and continuity in the organization. Back ground in Forest Products, Manufacturing, Printing,start up of Junior resource companies, experience at dealing in an international environment.Dennis M. Danzik, Business Development / Commercial Installations – Mr. Danzik is an engineer byprofession and the Inventor of the water treatment and distributed energy technology. Dennis is anoted and published expert in polyolefin design and application. Has twenty eight years experience inScientific Investigation, Financial and Technical Presentations. U.S. Defense contractor (retired). Mr.Danzik has twenty six years of patent experience, with U.S. and foreign patents issued. MIT Alumni[Sloan] and Member MIT Product Development Group.Tyler Heathcote, President, Director – Oversees all business units of RLE, including RidgelineEnvironment Inc., Ridgeline Water Inc., and Ridgeline GreenFill Inc. Owned and operated companies inthe energy services sector for over 20 years.James Yeager, Chief Financial Officer – Mr. Yeager brings over 30 year’s experience in seniormanagement positions in finance and accounting with both public and private companies. Mr. Yeagerhas held the position of CFO in multiple publicly listed companies managing yearly revenues into thehundreds of millions. His experience with rapidly growing companies is well suited to manage theexpected growth in all of Ridgelines business divisions. 18
  19. 19. Board of DirectorsDouglas Johnson, Chairman – Over 30 years of experience in the financing of public & privatecompanies. Since 1982, Mr. Johnson has been President and Chief Executive Officer of CanfundVentures Corp.Brian Straub, Director – Recently retired as President, Shell Canada Limited and Canada Country Chair,Royal Dutch Shell. Over 32 years of diverse Canadian and global oil & gas experience, his previousexecutive responsibilities have included oil sands, exploration & production, major construction andtechnology development/application.Kelly Sledz, Director – Chartered accountant with a background in the oil & gas industry. Past positionsinclude acting as an auditor for KPMG and Deloite Touche before acting as Controller, and VP of Financefor public oil and gas exploration companies. Mr. Sledz brings a unique blend of public companyexperience, oil & gas industry knowledge, and financial acumen to the company.Robert Raymond, Director – Over 25 years of business and management experience. Extensiveexperience building business units, intricate knowledge of the insurance business and negotiations.Tony Ker, Director – See ManagementTyler Heathcote, Director – See Management 19
  20. 20. Investment Highlights Established energy services business with tier 1 customer base serving oil and gas industry—provides stable revenue and cash flow to fund growth initiatives Large and growing market in Oil and Gas and Industrial waste water treatments Disruptive technology to cost effectively treat large volumes of wastewater (including frac and process water) from the oil and gas industry Water management system that solves waste water problems in an expanding and vital marketplace Renewable Energy technology not yet in forecasts Profitable with solid balance sheet and clean capital structure 20
  21. 21. Thank You.Ridgeline Energy Services Inc.Company Contact: Investor Relations:Ridgeline Energy Services, Inc. Crescendo Communications, LLCRyan Johnson David Waldman, Klea TheoharisCorporate DevelopmentTel: (604) 566-8066 ext 2 Tel: (212) 671-1020Email: rjohnson@ridgelinecanada.com Email: rle@crescendo-ir.com

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