HIGH SIERRA WATER SERVICES ACQUIRES ASSETS OF MARCUM MIDSTREAM

Acquisition Advances Firm’s Strategic Focus on Oilfield Water Treatment and Recycling Services

DENVER - June 6, 2011–High Sierra Water Services, LLC, a wholly-owned subsidiary of High Sierra Energy, LP, announced today that it has acquired the assets of Marcum Midstream 1995-2 Business Trust and Marcum Midstream 1995-EC Holdings, LLC (collectively “Marcum”). Marcum has most recently operated as Conquest Water Services, LLC (“Conquest”).  Founded in 1993, Conquest is the largest oil and gas water disposal company in Colorado, operating exclusively within the prolific Denver-Julesberg Basin in northeast Colorado.  With drilling permits on the rise in the Basin and an increasing number of oil and gas rigs drilling for oil in the Niobrara Shale, water disposal demands are escalating in Weld County, Conquest’s primary operating area. High Sierra expects to complement Conquest’s existing operations and grow the business to serve the needs of its existing and prospective producer customers.

High Sierra Water Services partners with leading oil and gas exploration and production companies to provide effective treatment and recycling of flow-back and produced water obtained  in the drilling and production process,” said James Burke, High Sierra Energy Chief Executive Officer. “Our acquisition of Conquest will enable us to serve the growing number of producers in the Niobrara Shale play as well as the entire region, and provide a reliable source of treated, recycled water for customers  through our innovative, proprietary water treatment technology.”

With a focus on long-term, sustainable resource protection, High Sierra Water Services’ state-of-the-art water treatment technology recycles oilfield water to surpass regulatory standards and, in some instances, discharges treated water back into local water supplies. With four patents issued and three patents-pending, the purification technology engineered by High Sierra Water Services has revolutionized water treatment in the oil industry.

Terms of the acquisition were not disclosed.