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EPiC Energy Resources Provides Operations Update

2008-07-15 06:00:00

    HOUSTON, July 15 /EMWNews-FirstCall/ -- EPiC Energy Resources, Inc.

(OTC Bulletin Board: EPCC) ("EPiC"), a provider of engineering, management

consulting, training and data management services to the energy industry,

today provided an update on its operations.

    EPiC announced that since the end of the 2008 first quarter, its

engineering and consulting segment, which is made up of Pearl, The Carnrite

Group, and Epic Integrated Solutions (EIS), have signed new contracts for

projects that are expected to generate revenues of over $11 million and

have bid proposals outstanding for over $106 million. Approximately 40% of

the contracted and potential revenue comes from new clients.

    A substantial portion of EPiC's projected revenue comes through the

Pearl division and is related to engineering, procurement and construction

management (EPC) projects that support the growth of conventional and

unconventional oil and gas development, with a significant percentage

coming from the development and production of unconventional resources in

the Rocky Mountain region.

    New and existing clients continue to call for a broad range of Pearl's

services, including Project Management of Drilling and Field Development

Programs, including but not limited to Infrastructure and Facility

Engineering, Construction Management, Production Operations, GIS Mapping,

Surveying and Permitting. Pearl's typical contracts range from $500,000 to

multi-million dollar, multi-year engagements.

    For example, a new client recently signed a contract engaging Pearl to

provide gas measurement services on several hundred CBM wells in Wyoming.

This new contract provides an estimated $1 million per year of revenue.

Negotiations are continuing to expand the scope of services provided to

this client, which would add over $2 million per year of ongoing revenue.

    Another significant award involves an integrated project valued at over

$3 million to provide drilling, engineering, mapping, surveying and

permitting services. Additionally, a second client has awarded Pearl a

project to provide engineering and design services for a salt water

disposal facility in New Mexico. The contract value of this project is

approximately $2 million.

    Internationally, Pearl is providing start-up and commissioning services

for a multi-million-dollar 100-MMscfd natural gas processing plant in the

United Arab Emirates (UAE) which Pearl originally designed, engineered, and

provided construction management services through completion. Pearl is in

negotiations with the same client for additional multi-million dollar,

multi-year projects in the Middle East.

    Carnrite continues to be awarded additional work by its client base of

major and independent oil and gas companies. Carnrite's typical contracts

range from $250,000 to multi-million dollar, multi-year engagements. Since

the end of the first quarter, Carnrite has been engaged to perform new

projects that should generate in excess of $1 million in incremental

revenue over the next six to nine months. The projects focus on helping

clients solve a variety of strategic and operational problems, including

but not limited to: Improved Operations Effectiveness, Competitive

Benchmarking, and Organizational Realignment in support of existing work

processes. Carnrite is currently pursuing additional contracts with

expectations to close within 2008.

    EIS provides services in both system integration as well as operational

and maintenance support. EIS's System Integration and Support services

consist of: Data Migration and Integrity, Middleware Implementation,

Interface Development, Systems Support, Software Design, and Database

Design. EIS's Operations/Maintenance (O&M) Support services consist of: O&M

Document Design and Support, Graphic Design, Training Program Design, Task

Analysis, Competency Assurance Program Design, Multimedia Design, Computer

Based Training (CBT) Design, Training Delivery, O&M Training & Consulting

and Change Management.

    EIS was recently awarded a contract with a major oil company to

streamline their invoice payment processes, which is part of its data

management suite of products and services. EIS is also coordinating the

client's vendor training programs and streamlining their procurement

process for vendor training by eliminating unnecessary overhead and

administrative costs. This project's anticipated value is $250,000. EIS's

typical contracts range from $250,000 to $1,000,000 multi-year engagements

and it expects to secure additional such contracts within 2008.

    Rex P. Doyle, EPiC's Chief Executive Officer, stated, "We are pleased

with the high level of demand for our services and expect that we will be

awarded contracts on a good portion of the bids outstanding. High commodity

prices are driving an expanding need for facilities and the energy

infrastructure necessary to efficiently produce oil and natural gas from

both conventional and unconventional resource developments. The growth in

drilling for unconventional gas, both in coal bed methane and the emerging

shale developments is creating demand for our services from producers that

are focused on maximizing production in these intricate development

programs. We believe that our customers see the value in partnering with

EPiC to provide complete engineering and operations solutions for their

complex field facilities and related infrastructure. Our engineering and

consulting businesses continue to expand our customer base in the Rockies,

mid-continent and greater Texas onshore market."

    About EPiC

    EPiC Energy Resources is a Houston based integrated energy services

company. EPiC provides consulting, engineering, construction management,

operations, maintenance, specialized training and data management services

focused primarily on the upstream and midstream energy infrastructure.

Services are provided through Pearl, a diversified engineering and energy

services company; Carnrite, a management consulting company focused on

providing strategic and operational consulting services to the broad energy

industry; and EIS, a global training and data management services company.

EPiC is headquartered at 1450 Lake Robbins Drive, Suite 160, The Woodlands,

Texas 77380. Office - 281-419-3742,

    Forward-Looking Statements

    Certain statements included in this release constitute forward-looking

statements. These forward-looking statements are based on management's

belief and assumptions derived from currently available information.

Although EPiC Energy Resources ("EPiC") believes that the expectations

reflected in such forward-looking statements are reasonable, it can give no

assurance that such expectations will prove to be correct. Actual results

could differ materially from forward-looking statements expressed or

implied herein as a result of a variety of factors including, but not

limited to: a decline in the price of, or demand for, oil and gas, demand

for EPiC's services, loss or unavailability of key personnel, inability to

recruit or retain personnel, competition for customers and contracts,

various potential losses associated with fixed-price contracts, general

economic conditions; and other financial, operational and legal risks and

uncertainties detailed from time to time in EPiC's SEC filings. EPiC does

not undertake any obligation to publicly update forward-looking statements

contained herein to reflect subsequent events or circumstances.

CONTACTS: Mike Kinney, Chief Financial Officer 281-419-3742 / [email protected] Lisa Elliott, Sr. Vice President DRG&E - IR Counsel 713-529-6600 / [email protected]

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