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OriginOil Signs First Pay-Per-Barrel Customer For Oil & Gas Water Cleanup

Frac water cleanup provider intends to deploy OriginOil’s system in early 2014, paying a fee for each barrel of water treated

Los Angeles, CA – October 8, 2013 – OriginOil, Inc. (OTC/BB: OOIL) developer of Electro Water Separation™ (EWS), the high-speed, chemical-free process to clean up large quantities of water, today announced that it has signed its first pay-per-barrel agreement with Industrial Systems, Inc., (ISI) for a water treatment system integrating OriginOil’s process as the first stage of treatment.

Delta, Colorado based ISI has agreed that it will operate the Model P160 as part of its overall frac flowback water cleanup service, and pay OriginOil a fee for each barrel processed.

Based on the signed contract, OriginOil has scheduled construction of an EWS™ Petro Model P160, capable of processing up to 160 liters (65 gallons) per minute. OriginOil’s finance partner, VenPro Partners, will provide the capital for the construction of the system. The system is designed to treat frac flowback or produced water for immediate reuse and will be built on skids so that it can easily be moved from site to site.

“We have been supplying modular tanks to the oil patch for years and are continually being asked if we supply water treatment equipment,” said Bob Isom, Chief Executive Officer of Industrial Systems, Inc. “After researching the various water treatment systems on the market, we selected Electro-Coagulation as the best process, and OriginOil’s as best-performing among the choices, which include Halliburton, Ecosphere and others.”

CEO Isom continued, “Our plan is to deploy the first system in the first quarter of 2014 in the intermountain area in Colorado and to order five additional systems for the Bakken and Permian basins.”

“We are excited by this first acceptance of our pay-per-barrel Throughput Program,” said Bill Charneski, Chief Operating Officer of OriginOil. “It removes any hurdles for oil service and water treatment companies to launch or dramatically improve their water recycling business. It is a major step toward commercialization of Electro Water Separation.”

“I have long advocated EWS to revolutionize shale-related cleanup in the oil patch,” said Gerald Bailey, OriginOil oil and gas industry advisor and former president of President of Exxon, Arabian Gulf, Abu Dhabi, and UAE. “I am confident that this is the last remaining barrier to commercializing our best in class water treatment technology.”

Located in Delta, Colorado, Industrial Systems, Inc. provides manufacturing, construction services, and solutions to the mine, oil & gas, and power industries in the US. For over twenty years, it has provided major capital engineering, procurement, manufacturing, project management, and construction services for multi-million dollar projects. A major portion of its business is design and manufacturing of permanent and portable tanks.

The company has moved beyond the US recently: in 2011, Tokyo Electric Power Co. (TEPCO) called on ISI to assist in the emergency water cleanup at the Fukushima nuclear site. ISI designed and manufactured three major heavy skid structures which contained pumping, filtering, and all controls. During the project, the company employed over 110 additional employees on an around-the-clock emergency basis.

According to consulting firm PricewaterhouseCoopers, “The shale revolution is projected to require more than $5 trillion in investment over the next 20 years in the US alone—largely directed to the upstream and midstream sectors.”

Safe Harbor Statement:

Matters discussed in this update contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this update, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

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