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Solazyme Launches New Product Line: Encapso

Solazyme, Inc. (NASDAQ:SZYM), a renewable oil and bioproducts company, announced today its entry into the oil and gas drilling fluids additive market. Building upon its proprietary platform of high performance, sustainable TailoredTM oils, Solazyme has introduced EncapsoTM, the world’s first encapsulated biodegradable lubricant for drilling fluids designed to deliver high-grade lubricant precisely at the point of friction where and when needed most.

“The demand for energy continues to grow but new sources of fossil fuels are more difficult than ever to recover. As long as the oil and gas industry continues to extract fossil fuels, we at Solazyme view it as an imperative that it is done in a more sustainable way to protect the environment for generations to come,” said Solazyme CEO Jonathan Wolfson. “The drilling industry needs new high-performance and sustainable technologies to meet rising energy demand and increased drilling. Encapso’s unique targeted lubricant delivery system helps reduce the costs for the oil and gas exploration and production industry and provides improved drilling performance.”

Encapso’s efficacy has been demonstrated both in the lab and in the field in over a dozen commercial wells in a number of basins including the Williston Basin, Denver-Julesburg, and the Permian Basin. Encapso™ increases drilling speed and control, and protects valuable equipment. The majority of work so far has been done in horizontal wells, helping demonstrate Encapso’s strong performance capabilities when it comes to “building the curve”—or the point where an unconventional well transitions from vertical to horizontal. This is often when drilling engineers find the most difficulty managing drilling friction. Improving the speed and efficiency of drilling translates directly to cost savings for well operators.

Customer Testimonials

“After adding Encapso to the system we saw a rate of increase in our rate of penetration from two feet per hour to 40 feet per hour. Encapso is a game changer because you’re reducing your torque, reducing your drag, and reducing your coefficients of friction all at the same time,” said Philip Johnson, a senior drilling engineer who worked with Encapso on behalf of a major exploration and production company. “No other product on the market does that.”

”Our observation of the product is that it has consistently added value,” said David Cunningham, Regional Manager at Anchor Drilling Fluids, USA. “The biggest impact has come when we’ve seen increases in rate of penetration and reductions in torque.”

“When I learned that this lubricant was encapsulated and therefore would deliver a drilling lubricant in a more targeted way, I saw the tremendous potential benefits,” said Tony Rea, President of Arc Fluids. “I introduced Encapso to a few customers and worked with them on several wells that they were drilling. In all cases, we witnessed marked improvements in directional control.”

About Solazyme, Inc.

Solazyme, Inc. (SZYM) is a renewable oil and bioproducts company that transforms a range of low-cost plant-based sugars into high-value oils. Headquartered in South San Francisco, Solazyme’s renewable products can replace or enhance oils derived from the world's three existing sources – petroleum, plants and animal fats. Initially, Solazyme is focused on commercializing its products into three target markets: (1) fuels and chemicals, (2) nutrition and (3) skin and personal care.

Solazyme®, Tailored™, Encapso™, the Solazyme logo and other trademarks or service names are trademarks of Solazyme, Inc.

This press release contains certain forward-looking statements about Solazyme, including statements that involve risks and uncertainties concerning: its development and commercialization plans and their timing; the anticipated demand for its products; the attributes and performance of its products and uses therefor. When used in this press release, the words “will”, “expects”, “intends” and other similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Solazyme, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Potential risks and uncertainties include, among others: implementation risk in deploying new technologies; Solazyme’s limited history in manufacturing and commercializing products; the success and performance of Solazyme products in targeted applications and markets; market acceptance of its products; its ability to obtain requisite regulatory approvals; and its ability to enter into and maintain strategic collaborations. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of Solazyme.

In addition, please refer to the documents that Solazyme files with the Securities and Exchange Commission, including its Annual Report on Form 10-K, for a discussion of these and other risks. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Solazyme is not under any duty to update any of the information in this press release.



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