E. S. I. Environmental Sensors Inc. ("ESI" or the "Company") (TSX VENTURE:ESV)
is pleased to announce with its developmental partner Dycor Technologies Inc. of
Edmonton Alberta, the approval by the Board of Directors of Innovation
Saskatchewan, for funding of their joint proposal for commercialization of an
advanced oil cut sensor device. This funding announcement, by the Honourable
Bill Boyd, Minister of the Economy, is a cornerstone of that province's
deliberate focus on supporting innovative solutions to enhance oil recovery from
the vast Western Canadian Sedimentary Basin, the major conventional oil
producing region spanning three Western provinces in Canada.


The evolution of this innovative capability was primarily driven by Harvest
Operations Corp. ("Harvest"), a key player in the Western Canadian oil industry.
Harvest is representative of the majority of producers in this region, which
face an ongoing challenge in production of conventional oil - that of being able
to cost effectively measure the amount of oil produced at the well head in high
water cut oil wells. As wells mature they produce less and less oil and more and
more water. The majority of mature conventional oil wells produce fluids that
contain less than 5 percent oil - with some producing 100 percent water and no
oil. Removing the "water producers" saves the production and water handling
costs associated with those wells and frees battery capacity to take on
suspended wells that were taken offline in times of lower prices.


ESI's core intellectual property will be significantly enhanced by the
collaborative contributions of its partners in this operationally-focused
technology commercialization effort. 


The Saskatchewan Research Council, a highly respected petroleum research,
development and demonstration institution in Canada, will provide the intensive
operational test and evaluation of the sensor technology required not only for
finalization of the sensor capability, but its ultimate deployment by the oil
industry in Canada and beyond. 


Harvest will provide the facilities for field trial of the technology throughout
its commercialization phase, the expertise of its reservoir and production
engineering teams in optimizing the capability to actual operational conditions,
and the critical role of first adopters of the finished sensor. 


Dycor Technologies Ltd., with its extensive network of clients for
instrumentation technology solutions in the North American oil industry, will
contribute design engineering, manufacturing, and broad market penetration in
support of this technical innovation. Mark Marsden, CEO of Dycor, indicated,
"Our extensive research of currently-available capability in oil and water cut
sensor technology has convinced us that ESI's unique technology and practical
approach is the clear and obvious solution to the high water cut challenge
facing the industry today".


This cooperative partnership, which will include funding of this multimillion
dollar initiative, is expected to provide all the support necessary for the
sensor's readiness for field trials scheduled for 2015, with full operational
deployment thereafter. 


Stephan Radermacher, Chairman and CEO of ESI, stated, "We could not have
conceived of a more practical and efficient partnership - bringing together a
leading Canadian governmental research organization, the pull of a key industry
partner, a design and engineering partner with extensive commercial linkages
into our target market, and the intellectual property resident in the people of
ESI - to have a lasting and profitable impact on both production and
environmental stewardship in the international petroleum sector."


About ESI

ESI is a leading manufacturer of patented and proprietary solutions for
environments where understanding the presence, movement, and/or amount of water
are important. Major market sectors include: agriculture, golf and turf,
scientific research, civil engineering and crude oil production. ESI solutions
have been successfully introduced into more than 40 countries to enable
customers to optimize their operations by monitoring the presence and movement
of water, managing irrigation systems, and monitoring the integrity of landfill
covers. The Company's Flo.Point(TM) instrument was designed for the oil industry
to measure the volumetric presence of water pumped during crude oil extraction
for characterization and optimization of the process. ESI differentiates itself
by translating the best technology and science available into practical, easy to
use solutions. Irrigation managers, Reservoir Engineers, and Scientists have
adopted ESI's products for their accuracy, ease of use, repeatability, and
ability to operate in challenging environments. ESI is publicly traded on the
TSX Venture Exchange under the symbol "ESV". Further information about ESI may
be obtained through the Company's website at www.esica.com.


On behalf of the Company:

Bernard Beauchesne

Chief Operating Officer

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE.


FOR FURTHER INFORMATION PLEASE CONTACT: 
E. S. I. Environmental Sensors Inc.
Investor Relations:
250.655.3211
1-800.799.6324
investor.relations@esica.com


E. S. I. Environmental Sensors Inc.
Media Contact:
Bernard Beauchesne
250.655.3211 or 1-800.799.6324
bbeauchesne@esica.com
www.esica.com

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