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    Flotek to acquire enhanced oil recovery provider Eclipse IOR Services

    Flotek Industries Inc.

    Flotek Industries Inc. (NYSE: FTK) has entered into a non-binding Letter of Intent to acquire Keller, Texas-based Eclipse IOR Services LLC. (Eclipse or EOGA).

    Eclipse is a provider of enhanced recovery technologies for oil and natural gas producers. Eclipse offers enhanced oil recovery technologies and services including water control polymers for producing wells, sweep improvement (polymer gel) technology for waterfloods and CO2 floods, mobility control polymer flooding, injectivity improvement for waterfloods, permanent clay stabilization, and alkaline-surfactant processes for waterfloods as well as a wide-range of consulting services to its clients in North America and internationally.

    "The addition of Eclipse to the Flotek EOR team will be an important milestone in the development of our enhanced oil recovery strategy and business platform," said John Chisholm, chairman, president, and CEOof Flotek. "Jay Portwood and his team have developed a far-reaching reputation for being the leading innovators in the application of polymer technology for EOR and in the process have built a client base of the leading EOR companies around the globe. The combination of Eclipse's existing technology and service breadth with Flotek's chemistry and consulting initiatives should create immediate opportunities to become a significant player in global EOR markets."

    Flotek will provide total consideration of approximately $6.5 million in cash and Flotek common stock for Eclipse, subject to completion of due diligence and certain working capital adjustments.

    Eclipse posted (unaudited) revenue for the six-month period ended June 30, 2013 of $2.17 million with EBITDA of approximately $0.44 million. In the month of June, Eclipse posted revenue of $0.55 million and EBITDA of $0.20 million. Eclipse anticipates June activity levels to continue in the second-half of the year.

    "Eclipse is delighted at the prospect of joining the Flotek team as we work together to build a leading EOR practice in North America and beyond," said J.T. "Jay" Portwood, president of Eclipse IOR Services  LLC. "We have worked side-by-side with Flotek in recent years and have been impressed with their expertise in primary and secondary production methods and the application of their advanced chemistries in enhancing secondary recovery projects. This combination will provide significant new opportunities for both companies as we combine our expertise and marketing efforts."

    In addition to Eclipse's metropolitan Dallas headquarters, the company has service centers in Oklahoma and Kansas. As part of the transaction, Flotek is expected to enter into employment agreements with Portwood as well as other Eclipse personnel.

    Upon the completion of due diligence and other requirements, Flotek expects to execute definitive documents and close on the Eclipse acquisition by August 30, 2013.

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