HOUSTON and SAN FRANCISCO,
April 14, 2015 /PRNewswire/ --
Flotek Industries, Inc. (NYSE:FTK) ("Flotek") and
Solazyme, Inc. (NASDAQ: SZYM) ("Solazyme") today announced
the companies and certain subsidiaries have entered into agreements
to globally commercialize Flocapso™, an innovative, advanced
drilling fluid additive. In addition, Flotek will market Solazyme's
Encapso™ lubricant - the first commercially available,
biodegradable encapsulated lubricant for drilling fluids – in
certain Middle Eastern markets.
Under the Joint Product Development and Marketing Agreement (the
"Joint Agreement"), Flotek and Solazyme will commercialize and
market Flocapso, a proprietary formulation combining Flotek's
patented Complex nano-Fluid® chemistries with Solazyme's
proprietary Encapso technology to create an
environmentally-conscious, highly effective drilling fluid additive
focused on better lubricity and greater stabilization for drilling
programs worldwide. Laboratory and commercial testing indicate that
the Flocapso additive will allow the use of water-based fluids in
wells that previously required more expensive and invasive
oil-based products, providing an environmentally superior, more
efficient solution to drilling challenges around the globe.
"Our partnership with Solazyme is another important step in
Flotek's quest to identify and partner with innovative and
efficacious technologies that advance oilfield chemistry for the
benefit of our clients," said John
Chisholm, Chairman, President and Chief Executive Officer of
Flotek. "Solazyme's development of Encapso and its rapid
recognition as a break-through lubricant in drilling applications
is testament to Solazyme's world-class research team. We are
delighted to have an opportunity to work with the Solazyme team as
we continue our focus on developing the best chemistry solutions
for the oilfield."
"We are excited to add Flotek as a strategic partner as we
continue to focus on broadening the market and customer base for
Encapso," said Solazyme Chief Executive Officer Jonathan Wolfson. "As a leading, global
technology company with a focus on oilfield chemistry, Flotek
brings new opportunities to expand sales of Encapso in the
Middle East, as well as to
commercialize and jointly market Flocapso, a unique and high
performance product that provides a large global sales opportunity
to satisfy an unmet need through the combination of superior
technologies. The new Flocapso drilling solution is designed to
provide significant advantages in lubricity and stabilization and a
much cleaner environmental footprint."
Under the Joint Agreement, Flotek and Solazyme will continue the
development of the Flocapso chemistries and work cooperatively to
market Flocapso worldwide. The companies are currently in an active
validation project with a large national oil company in the
Middle East and are pursuing
commercial applications in both domestic and international
markets.
Winner of the Presidential Green Chemistry Challenge Award,
Solazyme launched Encapso in early 2014. With its unique, targeted
lubricant delivery system, Encapso has shown to increase the rate
of penetration, decrease drag and reduce both rotational torque and
friction in a variety of vertical and horizontal drilling
applications. This can lead to lower drilling costs, reduced
non-productive time, and accelerated operations. Developed from
Solazyme's proprietary technology platform, Encapso is non-toxic
and biodegradable.
Flotek's Complex nano-Fluid, or CnF®, chemistries are a series
of proprietary, patented chemistries designed to enhance
performance in oil and natural gas wells, including increased
productivity through improved production rates and higher ultimate
recoverability. The proprietary combination of citrus-based
solvents and surfactants which are combined to create a
nano-molecular chemistry provide unique benefits in the drilling
process.
"Last year we acquired certain intellectual property related to
the use of CnF in drilling fluid applications from Tony Rea, a drilling fluid technology pioneer,
which led to discussions and chemical trials with Solazyme," said
Chisholm. "As a result of Tony's work showing the efficacy of using
CnF to improve drilling results and the combination of Solazyme's
Encapso, we developed Flocapso, a drilling fluid additive that we
believe will provide significant improvements to drilling
efficiency and effectiveness around the globe."
In addition, the companies have entered into a Strategic
Alliance Agreement (the "Agreement") whereby Solazyme has granted
Flotek exclusive distribution rights to sell and market Encapso as
a drilling fluid lubricant in certain territories in the
Middle East. In exchange, Flotek
has agreed to certain minimum purchases of Encapso from Solazyme in
the initial year of the Agreement.
"We are excited about the opportunity to work closely with
Solazyme to promote the use of the Encapso lubricant in the
Middle East and beyond," added
Chisholm. "Our work with the Solazyme team and Encapso gives us
great confidence that this game-changing technology has broad
applications in many markets, especially those in which we have
established relationships. Combined with our jointly developed
Flocapso product, we believe this Agreement creates a meaningful
advantage for Flotek as we continue to develop Middle Eastern
markets."
"Flotek's expertise, infrastructure and established and emerging
relationships in the Middle East
make them an outstanding partner for Solazyme and Encapso," added
Wolfson. "Combined with our relationships and product support team,
we believe the Flotek partnership provides an excellent opportunity
to accelerate market adoption of Encapso, both through certain of
Flotek's distribution and sales channels in the Middle East, and through sales of the combined
Flocapso drilling fluid additive worldwide."
About Flotek Industries, Inc.
Flotek is a global developer and distributor of a portfolio of
innovative oilfield technologies, including specialty chemicals and
down-hole drilling and production equipment. It serves major and
independent companies in the domestic and international oilfield
service industry. Flotek Industries, Inc. is a publicly traded
company headquartered in Houston,
Texas, and its common shares are traded on the New York
Stock Exchange under the ticker symbol "FTK."
For additional information, please visit Flotek's website at
www.flotekind.com.
About Solazyme, Inc.
Solazyme, Inc. develops and sells high-performance oils and
ingredients that are better for people and better for the planet.
Starting with microalgae, the world's original oil producer,
Solazyme creates innovative, sustainable, high-performance
products. These include renewable oils and ingredients that serve
as the foundation for healthier foods; high-performance industrial
products; unique home and personal care solutions; and more
sustainable fuels. Headquartered in South San Francisco, Solazyme's
mission is to solve some of the world's biggest problems with one
of the world's smallest and earliest life forms: microalgae.
For additional information, please visit Solazyme's website at
www.solazyme.com.
Forward-Looking Statements – Flotek Industries, Inc.
Certain statements set forth in this Press Release constitute
forward-looking statements (within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934) regarding Flotek Industries, Inc.'s business,
financial condition, results of operations and prospects. Words
such as expects, anticipates, intends, plans, believes, seeks,
estimates and similar expressions or variations of such words are
intended to identify forward-looking statements, but are not the
exclusive means of identifying forward-looking statements in this
Press Release.
Although forward-looking statements in this Press Release
reflect the good faith judgment of management, such statements can
only be based on facts and factors currently known to management.
Consequently, forward-looking statements are inherently subject to
risks and uncertainties, and actual results and outcomes may differ
materially from the results and outcomes discussed in the
forward-looking statements. Factors that could cause or contribute
to such differences in results and outcomes include, but are not
limited to, demand for oil and natural gas drilling services in the
areas and markets in which the Company operates, competition,
obsolescence of products and services, the Company's ability to
obtain financing to support its operations, environmental and other
casualty risks, and the impact of government regulation.
Further information about the risks and uncertainties that may
impact the Company are set forth in the Company's most recent
filings on Form 10-K (including without limitation in the "Risk
Factors" Section), and in the Company's other SEC filings and
publicly available documents. Readers are urged not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this Press Release. The Company undertakes no
obligation to revise or update any forward-looking statements in
order to reflect any event or circumstance that may arise after the
date of this Press Release.
Forward-Looking Statements – Solazyme, Inc.
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 about Solazyme, including statements that involve risks and
uncertainties concerning: its commercialization plans; meeting
commercialization and technology targets; successful product trials
and market acceptance of its products; and Solazyme's ability to
maintain its relationships with its partners. When used in this
press release, the words "will", "can", "expects", "intends" and
other similar expressions and any other statements that are not
historical facts are intended to identify those assertions as
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Any such statement may be
influenced by a variety of factors, many of which are beyond the
control of Solazyme, that could cause actual outcomes and results
to be materially different from those projected, described,
expressed or implied in this press release due to a number of risks
and uncertainties. Potential risks and uncertainties include, among
others: Solazyme's limited operating history; its limited history
in commercializing products; implementation risk in deploying new
technologies; its limited experience in constructing, ramping up,
optimizing and operating commercial manufacturing facilities; its
ability to sell its products at a profit; delays related to
construction, start-up, ramp-up and optimization of production
facilities; its ability to manage costs, including operational
costs at production facilities; its ability to enter into and
maintain strategic collaborations; successful product trials by its
customers and market acceptance of its products by end-users; its
ability to obtain requisite regulatory approvals; and its access,
on favorable terms, to any required financing. Accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of
them do so, what impact they will have on the results of operations
or financial condition of Solazyme.
In addition, please refer to the documents that Solazyme, Inc.
files with the Securities and Exchange Commission, including its
Annual Report on Form 10-K and it's Quarterly Reports on Form 10-Q,
as updated from time to time, for a discussion of these and other
risks. You are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date of this
press release. Solazyme is not under any duty to update any of the
information in this press release.
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SOURCE Flotek Industries, Inc.