Alanco Energy Services Commences Commercial Operation of New Colorado Oil and Gas Produced Water Treatment Facillity

(Scottsdale, AZ – August 15, 2012) – Alanco Technologies, Inc. (OTCBB: ALAN) today announced that wholly-owned subsidiary Alanco Energy Services, Inc. (“AES”) has commenced commercial operation of it’s new “Deer Creek” treatment and disposal facility for oil and gas produced water, located near Grand Junction, Colorado.

AES’s recently completed Phase I investment program totaled approximately $3,000,000, which included, at the Deer Creek facility, construction of two evaporation ponds for water disposal, totaling over eight surface acres; a state-of-the-art produced water treatment facility to remove hydrocarbons and entrained solids; and a 1952 foot injection well awaiting final permitting approval. Also included in the AES Phase I investment was the purchase and environmental permitting of a nearby 160 acre property, designated “Indian Mesa”, for future expansion.

Bob Kauffman, Alanco CEO commented “We are looking forward to developing a major new Alanco business opportunity in the Western Colorado produced water market by providing local oil and gas producers with significant cost savings, and outstanding customer service. Our current plan includes additional pond construction at the Deer Creek site, and at our nearby 160 acre Indian Mesa site, as well as final approval of the Deer Creek injection well. We are also actively pursuing advanced technology solutions to further treat and refine produced water for agricultural applications and recycle for oil field fracking use.

“I would also like to acknowledge the outstanding performance of AES’s operating management partner, TCO Operating LLC, in this very successful completion of our Phase I “open for business” status. TCO’s Tom Pool and Craig Creel have utilized all of their combined 60 or 70 years of oil and gas experience to position AES on its present highly promising course.”

For additional information on the operation at Deer Creek, contact Tom Pool or Craig Creel at 970-596-7881.


Except for historical information, the statements contained in this press release are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are subject to, and are qualified by, risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements. These risks and uncertainties include, but are not limited to, reduced demand for OUR PRODUCTS; competitive pricing and difficulty managing product costs; development of new technologieS; rapid industry changes; failure of an acquired business to further the Company’s strategies; the ability to maintain satisfactory relationships with lenders and remain in compliance with financial covenants and other requirements under current banking agreements; and market risk associated with holding orbcomm stocK.