MIDLAND, Texas, Aug. 21, 2014 /PRNewswire/ -- STW Resources
Holding Corp (OTC QB: STWS) announced the signing of a partnership
agreement with a Texas ranching
family to lease brackish water rights and build, own and operate a
Proprietary state of the art "Hybrid Reverse Osmosis Water
Processing System" capable of processing approximately 30,000
barrels of brackish water per day on the family's ranch located in
Upton and other surrounding Texas
County(s) forty miles southwest of Midland. In the agreement, STW will pay a 23%
royalty to have access rights to the brackish water on several
sections of land. Additionally, STW will own and operate the water
systems designed by STW to process and deliver water to oil &
gas producers for use in drilling and completing wells on and
around the family ranch and for use on other oil & gas field in
the area. There are in excess of 40 drillings rigs working in and
around the ranch.
Signing this agreement is the next step in our plan is to build
multiple STW Proprietary Hybrid Reverse Osmosis Facilies to sell
processed brackish water to oil & gas producers. These projects
will include access to a disposal well for any waste from the
operation, ample supply of brackish water for processing, operation
of the water reclamation facilities and a loading/unloading depot
or extended water pipeline systems for water delivery. STW
will process brackish water and sell it to producers at a
prevailing rate similar to the current rate they are paying for
fresh water currently per barrel ($.80-$1.10 per barrel). STW has received
commitments from a major producer to purchase the water. Drilling
activity is expected to continue for the next ten-fifteen
years.
The first facility will initially process approximately 30,000
barrels or 1,260,000 gallons of brackish water per day and deliver
approximately 27,000 barrels or 1,134,000 gallons of fresh water
per day to producers. The STW Proprietary Hybrid RO System can
recover approximately 90% of the fresh water from the
Brackish water. The capacity can be increased at any time to
process up to 50,000+ barrels per day as demand for water
increases. The first phase of the project has several brackish
water wells completed with additional wells to be drilled and a
disposal well is planned for the near future. Estimated costs to
build the first 30,000-barrel per day STW Hybrid RO System and
drill 7 new brackish water wells is approximately $2.9 million. The landowners contracted recently
to have a hydrogeological study performed on the brackish water
reservoir and it validated the ample supply of brackish water for
this project. The facility is expected to be operable in the fourth
quarter of 2014.
STW CEO Stanley Weiner stated,
"This is a great partnership, we're working with a local family and
extending the company's model to conserve fresh water while the
development of an oil rich area continues to happen. This is
a win-win deal. Still increasing the US oil production while
conserving our fresh water resources."
Alan Murphy President of STW
Water added, "This project is a model for STW as our plan is to
continue signing agreements and working with landowners to process
and sell the currently unusable brackish water. It's good for
everyone, the landowners conserve their fresh water and STW creates
revenues further increasing shareholder value."
About STW Resources Holding Corp.
STW Resources Holdings Corp. consults and provides customized
water analysis, reclamation and remediation services to a variety
of complex oil and gas produced and flowback water, brackish water,
industrial, and municipal applications throughout several
geographic locations. As an independent solutions provider, STW
utilizes proven technologies, from various well-known
manufacturers, including Salttech, a Zero Liquid Discharge (ZLD)
technology that is economically feasible to use. These technologies
are available as fixed or mobile units with varying capabilities.
STW's process ensures that the most effective and efficient
technologies are implemented. Current potential project locations
include the Eagle Ford Shale (TX), the west Texas Delaware and
Permian Basins (TX), and eastern New Mexico. STW is also
involved in the oilfield dirt construction business providing
roads, pits, locations, and water pond construction. It also offers
evaporation covers for the elimination of evaporation on frack
ponds used throughout the oilfield. Evaporation causes the
operators millions of dollars in losses annually. Covering the
ponds is a conservational and economic method of preserving one of
our natural resources and can be floated on to existing ponds or
installed during construction. It also eliminates algae
growth, doubles as a bird net, and reduces erosion of pond
infrastructure. High quality liners with fusion-welded seams,
quality control testing including air tests of seams and
destruction testing are also standard. STW Energy, a subsidiary of
STW Holding Corp, offers a turnkey rig washing service. STW
services include roustabout services for several major oil and gas
producers too. STW's Pipeline Maintenance & Construction
division aids oil & gas companies in connecting new wells so
the oil & gas can be sold to market and helps maintain the
integrity of their existing pipeline infrastructure.
www.stwresources.com
Forward-Looking Statements
This news release contains forward-looking statements about our
business, or financial condition and prospects that reflect our
assumptions and beliefs based on information currently available.
We can give no assurance that the expectations indicated by such
forward-looking statements will be realized. There may be other
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be certain forward-looking statements not accompanied by such
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forward-looking statements, which speak only as of the date of this
press release. The company's actual results could differ materially
from those anticipated in these forward-looking statements as a
result of a variety of factors, including risks discussed in the
company's periodic reports that are filed with the Securities and
Exchange Commission and available on its website (www.sec.gov). All
forward-looking statements attributable to the Company or to
persons acting on its behalf are expressly qualified in their
entirety by these factors other than as required under the
securities laws. The Company does not assume a duty to update these
forward-looking statements.
SOURCE STW Resources Holding Corp.