EnerTech Capital Announces Investment in Drilling Fluids Recovery Company Markwater Handling Systems

May 30th 2014, Calgary – EnerTech Capital (“EnerTech”) is pleased to announce today that it has closed an investment in drilling fluids management company Markwater Handling Systems. Markwater (through its subsidiary company FP Marangoni) is focused on the treatment and recovery of oil based drilling muds. EnerTech is pleased to be joining co-investors 32 Degrees and EDC as equity investors in the company. The company has raised over $27 Million since inception and EnerTech has participated in the latest financing.


The management of drilling fluids has become a major issue for Oil & Gas Companies. Driven by the extremes of modern-day drilling including more significant depths and distances has resulted in over two-thirds of the mud flowing down drill holes being oil-based vs. water based.


At over $1,000/cubic meter, Oil-Based Mud (OBM) is a valuable commodity and with technologies like Markwater’s, drilling companies can profitably recover what was previously viewed as a costly waste stream. Oil Based Muds are increasingly deployed in unconventional drilling operations due to unique performance advantages over water-based muds and other drilling fluids. Markwater’s proprietary drilling fluid recovery systems separate oil-based mud from drill cuttings at the drill site; resulting in substantial cost savings and reduced environmental and transportation costs.

“We believe the macro area of Drilling fluid Management represents a high growth investment opportunity for us. Markwater is also complementary with other companies in our portfolio that are focused on processed water and horizontal drilling in the Oil & Gas Sector. The significant economic payback of Markwaters’ technology will provide strong returns to both the drillers and Markwater shareholders. This investment fits squarely in our investment landscape as we continue to seek investment in new technologies around the Well Head that significantly improve the efficiency in the Oil & Gas extraction process”


Wally Hunter – Managing Director, EnerTech Capital

“Our investment in Markwater is a strong testament to our firm’s continued focus on the Alberta market and seeking emerging technologies that solve major issues for Oil & Gas Companies. The Markwater technology is an elegant solution that is extremely scalable and which has significant market potential in key Oil & Gas Markets in North America”

Eric Schmadtke – Vice President, EnerTech Capital

“We are pleased to have strong partners like EnerTech as investors in our company. We believe EnerTech’s long history and knowledge of the energy sector combined with their significant Strategic Limited Partner investor base will provide strong value add as we continue to grow the company.”

Bob Russell – CEO, Markwater


About EnerTech Capital
EnerTech Capital is a private investment firm focused on innovation in the energy and power industries:
early to mid-stage companies that offer products or services that dramatically improve the profitability
of producing or consuming energy. Founded in 1996, the firm has managed approximately $500 million
and has delivered 32 exits. EnerTech Capital is currently investing out of its fourth fund and has offices
in Philadelphia, Toronto, Montreal, Calgary and Menlo Park.


About Markwater
Markwater Handling systems through its wholly owned subsidiary FP Marangoni offers the most
innovative drilling fluid recovery systems available to their clients. With emerging concerns for
organizations to reduce costs and decrease their overall environmental impact, there is an industry wide
need for a system that can provide a solution; The VAC-Screen® Drilling Fluid Recovery System
accomplishes these goals. The operations of Markwater have shifted to focus on the drilling fluid
recovery business through wholly owned subsidiary FP Marangoni.


http://fpmarangoni.com/


For more information visit: www.enertechcapital.com
CONTACT: Wally Hunter: 416-363-8563 whunter@enertechcapital.com

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