STEP Energy Services and Universal Chemical Solutions Agree to Deliver Post-Production Stimulation Services

CALGARY, Alberta, Feb. 04, 2021 (GLOBE NEWSWIRE) -- STEP Energy Services Ltd. (“STEP”) and Universal Chemical Solutions, Inc. (“UCS”) are pleased to announce they have entered into an agreement that will facilitate the delivery of post-production stimulation services to energy producers working in the Eagle Ford Shale, Permian Basin, Niobrara-DJ Basin and Bakken Formation.

Single Shot IOR™ is a patent-pending, post-production stimulation technique that uses liquid petroleum gasses (LPG) and proprietary chemistry to mobilize hydrocarbons in shale or tight sand, oil bearing reservoirs. The Single Shot IOR system is designed to combat post-production challenges and access unproduced pay that has been left behind by completion efforts.

“The opportunity to utilize STEP’s LPG fracturing equipment and intellectual property with UCS’ Single Shot IOR technology is expected to represent a marked advancement in improved oil recovery methods,” comments Mike Burvill, Vice-President, Business Development and Innovation of STEP. “STEP expects that producers will be able to increase recovery rates of their declining assets with a single pumping treatment into the hydrocarbon bearing reservoir. This could represent a substantial cost saving when compared to other high pressure, compression oil recovery operations.”

In collaboration with interested energy producers, well candidates will be identified by STEP and UCS using reservoir modelling expertise. Chief Executive Officer of UCS, Tadd Wallace adds, “UCS brings the cutting edge Single Shot IOR technology while STEP brings experience and the unique specialized equipment necessary to deliver this technology. We believe this relationship will provide significant value to the industry, especially in the current challenging environment for shale operators.  We are excited to be a part of this effort to unlock resources previously thought to be unattainable.”

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FORWARD-LOOKING STATEMENTS

Certain statements contained in this Press Release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”). These statements relate to the expectations of management about future events, results of operations and STEP’s future performance and business prospects. All statements other than statements of historical fact are forward-looking statements. The use of any of the words “could”, “designed”, “expects”, “will” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. While STEP believes the expectations reflected in the forward-looking statements included in this press release are reasonable, such statements are not guarantees of future performance or outcomes and may prove to be incorrect and should not be unduly relied upon.

In particular, but without limitation, this Press Release contains forward-looking statements pertaining to: the ability of STEP and UCS to deliver Single Shot IOR™ post production stimulation services; the ability of the Single Shot IOR™ stimulation technique to mobilize hydrocarbons in shale or tight sand, oil bearing reservoirs; the Single Shot IOR™ stimulation technique allowing access to unproduced pay or allowing for increased recovery rates; one or more patents being granted for the Single Shot IOR™ technology; Single Shot IOR™ allowing for a single pumping treatment; Single Shot IOR™ being an advancement in oil recovery methods; and Single Shot IOR™ resulting in cost savings in comparison to other oil recovery operations.

The forward-looking information and statements contained in this Press Release reflect several material factors and expectations and assumptions of STEP including, without limitation: UCS’ ability to provide the Single Shot IOR™ technology; STEP’s ability to provide specialized equipment necessary to deliver the Single Shot IOR™ technology; the Single Shot IOR™ post-production stimulation services working as expected and delivering the expected benefits to producers; the occurrence of assumed industry conditions; levels of deployable equipment; pricing of STEP’s services; expected LPG prices; and STEP’s ability to market successfully to current and new clients. STEP believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable but no assurance can be given that these factors, expectations and assumptions will prove correct.

Actual results could differ materially from those anticipated in these forward-looking statements due to the Single Shot IOR™ technology being new technology that is in the early stages of being proven, the success of the post-production stimulation services being dependent on the effectiveness of the Single Shot IOR™ technology on its own and in conjunction with STEP's fracturing technology and the risk factors set forth in STEP’s Annual Information Form dated March 11, 2020 under the heading “Risk Factors” and in STEP’s Management Discussion and Analysis for the three and nine month periods ended September 30, 2020 under the heading “Risk Factors and Risk Management”, which for clarity include volatility of the oil and natural gas industry; global or national health concerns such as the COVID-19 pandemic and their impact on demand and pricing for STEP’s services; OPEC or OPEC+ related market uncertainty; and reductions in clients activity levels, cash flows or their ability to source debt or equity. The actual results of STEP’s operations will likely vary and such variations may be material. Readers are cautioned that any such information should not be used for purposes other than those for which it is disclosed herein. The forward-looking information and statements contained in this press release speak only as of the date of the document, and none of STEP or its subsidiaries assumes any obligation to publicly update or revise them, except as may be required pursuant to applicable laws. The reader is cautioned not to place undue reliance on forward-looking information.

ABOUT STEP

STEP is an oilfield service company that provides stand-alone and fully integrated fracturing, coiled tubing and wireline solutions. Our combination of modern equipment along with our commitment to safety and quality execution has differentiated STEP in plays where wells are deeper, have longer laterals and higher pressures.

Founded in 2011 as a specialized deep capacity coiled tubing company, STEP now provides an integrated solution for deep capacity coiled tubing and fracturing services to exploration and production (“E&P”) companies in Canada and the United States (“U.S.”). Our Canadian services are focused in the WCSB, while in the U.S., our services are focused in the Permian and Eagle Ford in Texas and the Bakken in North Dakota.

Our four core values; Safety, Trust, Execution and Possibilities inspire our team of professionals to provide differentiated levels of service, with a goal of flawless execution and an unwavering focus on safety.

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