STW Resources Holding Corp (OTCQB: STWS) provides an update on the
drilling of its Ft. Stockton project and announces its plans for
expansion of the STW Water Process & Technologies subsidiary.
“As we enter 2015, we are very excited about our prospects and
continuing the triple digit growth we saw for 2014,” said Stanley
Weiner, CEO of STW Resources. This growth will come from several major
initiatives and contracts that began in 2014.
Capitan Reef Water Aquifer Project
The first major project for growth is the Capitan Reef Water Aquifer
development project with the city of Ft. Stockton, Texas. STW has begun
drilling its first development well which is now below 2000 feet and
more than halfway to the aquifer. The drill is expected to hit the
aquifer within the next two weeks.
“Over the years, I have worked very closely with the city of Ft.
Stockton on its reverse osmosis facilities, and it is rewarding to be
once again working with such a professional group on such an important
project for both STW and the State of Texas,” stated Alan Murphy,
President of STW Water.
The 30-year agreement, with options for longer time periods, with the
City of Fort Stockton gives STW Water the rights to drill and produce
extensive water reserves from the Capitan Reef Aquifer. Key independent
third party hydrogeological reports say the reservoir could possibly
produce in excess of 100+ million gallons per day for over 100 years and
not affect the integrity of the reservoir. STW Water is currently
drilling its first of 11 development wells for the first phase of the
project. One monitor well has already been completed that is within a
mile of the current development well. This monitor well has been tested
and will produce approximately 850,000 gallons of water per day. It
should be noted, this well only penetrates 500 feet into the aquifer and
has a 4½-inch casing in the well bore.
The first development well will have 16 inch casing in the wellbore and
will penetrate the entire 1,200+ feet of Reef. It is believed that this
development well will generate at least 2.5 million gallons of water per
day that it could sell for an average of approximately $12 per 1,000
gallons to both municipalities and to the oil producers.
As part of its agreement for the rights to drill into the Capitan Reef
Aquifer, STW agreed to provide the water to municipalities and
beneficial end users in West Texas. As part of this plan, STW is working
with the State and local municipalities on plans to build a pipeline to
the City of San Angelo and then to serve several other cities in West
Texas to assist these cities in managing their limited water resources
during the current unprecedented drought throughout the state. For
example, three cities have already voiced their need and intent on
signing long-term contracts to buy as much water as STW can deliver.
Currently a couple of the smaller cities are actually having to bring
water in by truck because of their water shortages and others are on the
brink of having to do the same thing.
Salttech DyVaR Water Reclamation Technology
The second area of expected growth will come from STW’s exclusive
licensing agreement with Salttech, BV. Salttech has created the most
efficient Zero Liquid Discharge (ZLD) water processing technology that
can recover up to 97% clean water from any saline laden water containing
dissolved salts and other solids and contaminants of up to and over
300,000 parts per million including frack flowback, oilfield produced
water, and ocean water and its reverse osmosis concentrated brine
reject. The remaining 3+% is discharged in the form of solid salts and
minerals, thus no discharge or disposal problems. Most ocean water
desalination systems produce 35%-45% fresh water and 55%-65% of highly
concentrated brine concentrate liquid that ends up being discharged into
the local waterways and oceans potentially creating harmful effects on
the ecosystems.
The first Salttech system in the United States is located in Mentone,
Texas (approximately 120 miles from Midland, Texas). The system is run
by fully renewable solar energy and is providing all of the necessary
clean drinking water for the entire town. The second system is now in
the construction phase for use by a $25 billion NYSE oil and gas
producer to provide clean water from a brackish water aquifer for this
company’s West Texas operations and Mancamp facilities and eliminate its
usage of the limited municipal fresh water resources.
Upton County Aquifer Project
The third project is in Upton County, Texas to drill into the Santa Rosa
brackish aquifer and process the water for delivery to oil producers who
will either pick up the water at our water station or pipe it directly
to their fresh water ponds for use in their drilling and fracking
operations.
STW has closed the funding needed for this project. It has been
structured as a debt in the form of project financing and has no
dilutive effect on the shares in STW Resources Holding Corp.
The first water station costs approximately $1.25 million and should be
fully operational during the second quarter. The initial processing
capacity for the station is 15,000 barrels or 630,000 gallons per day;
STW expects to increase this to 30,000 barrels a day by the fourth
quarter of 2015. Current prevailing rates for water in Upton County are
approximately $.80-$1.10 per barrel.
“It is exhilarating to have years of work come to fruition as we have
completed a contract with the major land owners in the area, have
financed the initial stages of this project and were able to use our
proprietary design and technology that includes using a hybrid reverse
osmosis and concentrator process to efficiently clean the water in a
very environmentally friendly method,” stated Murphy.
Consulting Projects
STW Water has also been hired as a Consultant and contractor to a
Mancamp Development Company and a major independent oil & gas producer
in West Texas. It is assisting with the development of Mancamps for
housing employees. The project includes obtaining public water supply
permitting which needs to be in compliance with the Texas Commission on
Environmental Quality (TCEQ) drinking water standard regulations. In
addition, STW will assist with all aspects of the project including, but
not limited to, well design & development, treatment process design,
equipment design & procurement, installation of the systems, full scale
commissioning & training, and operation & maintenance by STW’s State of
Texas licensed Operators. The water that will be used for drinking water
is from a brackish water aquifer and will be processed by STW
technology. The arrangement also includes the following:
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Conduct face-to-face meetings with the TCEQ and other local regulatory
agencies to discuss the project updates, express project-related
questions and concerns and get their feedback & comments.
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Work on regulatory permitting for drinking water treatment to include
Discharge permit & pilot exception request in lieu of a full scale
Pilot Study for a Membrane filtration System.
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Assist with design of innovative treatment process with advanced
technology using STW’s Salttech DyVaR Zero Liquid Discharge System to
eliminate need of wastewater ponds, injection wells and other
technologies for discharge of the concentrated brine wastewater stream.
“Overall, we are proud to announce that we have become a diversified
water company with both large reserves of water and state-of-the-art
technologies and are now well positioned as we enter 2015,” said Murphy.
“Despite the fall in oil prices, we have positioned ourselves to
continue our hyper-growth rates and quickly reach profitability. Many of
our oil customers have hedged their projects and are continuing to drill
and are in need of our services, and our industrial and municipal
customers are in need of the fresh water that we can deliver in
unlimited amounts. Simply, we are following our model to have a minimum
or no negative impact on the environment while helping preserve and/or
increase our precious fresh water resources.”
About STW
Resources Holding Corp
STW Resources Holdings Corp (OTCQB: STWS) is a quality provider of
oilfield services, water reclamation and processing management services,
and rig cleaning services through its three subsidiaries. STW Water is a
Total Water Solutions Provider Company and provides turnkey design build
solutions and provides its Customers with “out-of-the-box” design
solutions to meet customers’ water needs. STW Water has capabilities to
provide complete oversight of various water and wastewater projects
with primary focus on engineering, regulatory permitting including
Public Water Systems (PWS), Discharge permits, Pilot exception and Pilot
Study, equipment design & treatment process design, manufacturing &
installation and full scale Commissioning and training for all types of
oil & gas, industrial and municipal water and wastewater markets
throughout the State of Texas. STW’s model of water ownership has had
recent successes and broken ground on both Upton County and Ft.
Stockton, Texas projects.
It consults and provides customized water analysis, reclamation and
remediation services to a variety of complex oil and gas produced and
flowback water, brackish water, ocean water desalination, industrial,
and municipal applications throughout several geographic locations to
fill a tremendous need for fresh water in the areas they service. 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. The Salttech system can process
any saline laden water with Total Dissolved Solids (TDS) levels ranging
from 5,000 ppm to >300,000 ppm. Current potential project locations
include the Eagle Ford Shale (TX), the west Texas Delaware and Permian
Basins (TX), eastern New Mexico, and ocean desalination projects on the
Gulf Coast of Texas, California, and Hawaii.
ENVIRONMENTAL IMPACT: If STW’s Salttech
Technology is placed in-line with a Seawater Reverse Osmosis System or
used with a geothermal operation, there will be no potentially
environmentally sensitive brine concentrate discharged into the local
waterways since the system is Zero Liquid Discharge and 93-97%+ of the
fresh water is recovered in the process. The waste stream is salt
crystals and minerals. This is a completely Blue/Green operation that
provides a sustainable supply of power and water for municipal and
industrial use.
STW uses the latest technology to install new pipelines and repair and
maintain aging water and oil & gas pipelines (STW Pipeline) and remove
oil and diesel residue from drilling rigs to meet environmental
regulations (STW Energy).
www.stwresources.com
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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
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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
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