Ferus announces new northern CO(2) facility

Ferus Inc. is pleased to announce that it is constructing a new state-of-the-art carbon dioxide (“CO(2)”) liquefaction plant in Fort Saskatchewan, Alberta. The facility’s location in north-central Alberta will enable Ferus to efficiently deliver liquid CO(2) to developing energy resource plays in north-western Alberta and north-eastern British Columbia. The facility will capture gaseous CO(2), a by-product of nearby refining processes, liquefy and store it for sale and transport to Ferus’ energy industry customers. Commercial operation of the facility is expected to commence in the summer of 2009.

“The construction of this facility demonstrates Ferus’ commitment to meeting our customers’ needs for cryogenic products and logistics services,” said Richard Brown, President & CEO of Ferus Inc. “With the completion of this plant, our fourth CO(2) liquefaction facility in Alberta, and the recent expansion of our northern CO(2) facility, we see ourselves as being well positioned to deal with the current demand for liquid CO(2) in western Canada, most notably in the northern resource plays. As we look down the road, we see demand continuing to increase for our products and services in these areas and accordingly, our energies will remain focused on opportunities that facilitate our efforts to be the predominant supplier of cryogenic products and logistics services to the energy industry.”

In August 2008 an affiliate of NGP Midstream & Resources, L.P. acquired Ferus. Ferus Inc. is a privately-held company providing integrated solutions to the energy industry for well stimulation, well completions and enhanced oil recovery applications. Ferus provides a dedicated supply of cryogenic fluids, as well as the related logistical services to deliver those products to its customers in the energy industry. Ferus’ primary product and service lines include liquid carbon dioxide (CO(2)), liquid nitrogen (N(2)), transportation, storage and logistics and on-site services. Ferus currently owns and operates five cryogenic plants, which are strategically located across Alberta as well as a fleet of over 150 transportation and storage assets, which are specifically designed for oilfield operations.

NGP Midstream & Resources is a U.S.-based private equity fund established in February 2007 to make direct investments in selected areas of the energy infrastructure and natural resources industries, with a particular emphasis on investments in the midstream energy infrastructure sector. NGP Midstream & Resources has investment commitments totaling $1.4 billion. NGP Midstream & Resources is affiliated with NGP Energy Capital Management LLC. NGP Energy Capital is a $7.7 billion firm based in Irving, Texas that invests in all sectors of the energy industry.