Sionix Corp (SINX)

[ALERTS100%to10000%GAIN]

something is cooking here Sionix Forms Additional Companies For Williston Basin Operations
Mon, 06/11/2012 - 12:20 PM
Sionix Corporation (SINX) announced 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.