CYPRESS ENERGY PARTNERS ACQUIRES SALT WATER DISPOSAL WELLS FROM SBG ENERGY SERVICES

CYPRESS ENERGY PARTNERS, LLC ACQUIRES SIX SALT WATER DISPOSAL WELLS AND ONE UNDER CONSTRUCTION FROM SBG ENERGY SERVICES, LLC IN THE BAKKEN REGION OF ND & MT
TULSA, OK and GRAND FORK, ND

— (December 31st,2012) — Cypress Energy Partners, LLC (“Cypress”) a recently formed startup company today announced the acquisition of six salt water disposal wells and one under construction from Bakken region leader SBG Energy Services, LLC (“SBG”). These properties are strategically located throughout the Bakken region of North Dakota and Montana. Additionally, Cypress and SBG have agreed to partner on other opportunities under development in the Bakken. SBG will become a minority shareholder in Cypress and SBG co-founder Phil Gisi will join the Cypress board of directors. The recently completed facilities are tier 1 commercial facilities that are class II licensed salt water disposal wells serving the oil and gas industry. These new facilities began opening over the last eighteen months with the most recently completed facility opening in October 2012. Each facility is constructed to the highest industry standards to comply with all rules, laws, and regulations designed to protect the environment.
Cypress Energy Partners was formed in the spring of 2012 to provide water and environmental services and solutions to the oil and gas industry utilizing best practices focused on protecting the environment and serving oil and gas producers.
“This transaction is exciting news for our all of our stakeholders including our employees, customers, suppliers, and shareholders. It will bring together the strong reputation of SBG with the financial strength and experience of Cypress. Our ND roots and the loyalty and experience of our dedicated workforce and wonderful customers will benefit Cypress,” said Phil Gisi, co –founder of SBG.

“SBG is the regional leader in salt water disposal facilities in the Bakken area and we are excited to add SBG to our growing portfolio. SBG co-founders Orley Sinkler and Phil Gisi will be great partners for Cypress and we are honored to work with both of them and have Phil join our board”
, commented Peter C. Boylan III, President & CEO of Cypress.

“The SBG family has strong generational roots in ND that will greatly benefit Cypress and the acquisition will provide us with the best geographic locations and footprint in the region to serve our customers in the oil & gas industry. The SBG properties along with our prior acquisition in ND will give us over ten locations. We are also excited about the future growth opportunities with other SBG business activities that we will partner with SBG on in the future.”

The acquisition, which is expected to close by year end, is subject to customary closing conditions, including regulatory approvals. Additional terms of the transaction were not disclosed.
About Cypress Energy Partners, LLC
Founded in 2012, Cypress Energy Partners, LLC is headquartered in Tulsa, OK and provides water and environmental services and solutions to the oil and gas industry. Cypress was formed in partnership with Boylan Partners, LLC and Regent Private Capital, LLC the family office of the Charles C. Stephenson family of Tulsa, Oklahoma. Mr. Stephenson has been active in the oil and gas industry for over fifty years and the family currently has Premier Natural Resources and oil & gas Production Company and Tulsa Inspection Resources a pipeline services company in their portfolio. For more information, visit www.cypressenergy.com
About SBG Energy Services, LLC
SBG Energy Services, LLC was founded in 2011 and is a privately held company serving the oil and gas industry. SBG is part of the Edgewood Group of Companies with headquarters in Grand Forks, ND. Edgewood Group is a diverse group of businesses involved in senior housing, real estate development and construction, and oil & gas services. Phil Gisi is the President/CEO and principle owner of Edgewood. For more information visit www.sbgdisposal.com or www.edgewoodvista.com