THE WOODLANDS, Texas, Dec. 19, 2022 /PRNewswire/ -- TETRA Technologies, Inc. ("TETRA" or the "Company") (NYSE:TTI) today announced updates on some of the Company's strategic initiatives.
TETRA announced that Hargrove has completed the Front-End Engineering Design ("FEED") scope of work for the development and construction of a bromine production facility from TETRA's brine leases in Arkansas. Hargrove's FEED study provided an estimated total required capital investment, within a relevant range, over an estimated 24 month-period to construct the facility; optimized process flow, and identified long lead items. In addition, also provided was an evaluation of the required capital and engineering design to maximize the project's long-term profitability and the actions necessary to reduce execution risk to support the advancement of the project towards becoming a robust bromine-producing plant. As announced previously, TETRA's brine leases are estimated to contain inferred resources of 5.25 million tons of bromine and 234,000 tons lithium carbonate equivalent (LCE). Hargrove's FEED study is part of TETRA's ongoing evaluation and initial assessment of its Arkansas brine leases, which is part of an effort by TETRA to develop bromine production to meet an existing and growing completion fluids market as well as TETRA's high purity zinc bromide electrolyte (TETRA PureFlow®) to support the projected high growth market of energy storage. During the fourth quarter, TETRA received an order for TETRA PureFlow® from a second zinc-based energy storage battery provider.
In parallel to the Hargrove FEED scope of work, Lonquist & Company LLC ("Lonquist") are in the process of completing a detailed geological, reservoir and production simulation study to ensure the optimal locations for the production and injection wells to ensure the best long-term producibility and recovery of the bromine and lithium from TETRA's approximately 5,000 acres where TETRA holds the bromine and lithium mineral rights not subject to the option agreement with Standard Lithium. The reservoir modeling and well placements design are also important to support the production volumes that the Company will include in a forthcoming economic analysis. The final Lonquist report is currently targeted for completion in January 2023, after which the Company will finalize and make available an initial economic assessment.
During the fourth quarter, TETRA successfully completed its first UK based CS Neptune® project. With this project, TETRA has now completed CS Neptune jobs with 100% success rates in the Gulf of Mexico, Norway and the UK. The European projects are smaller in size to those previously completed in the Gulf of Mexico but demonstrate the successful application of this zinc-free environmentally-friendly completion fluid. TETRA also completed an acquisition of a completion fluids business in the U.K. and is in the final stages of completing an additional acquisition to expand its deepwater position in the Gulf of Mexico. Although smaller in size, both acquisitions will immediately grow TETRA's market position and growth capacity in both key offshore markets.
Also in the fourth quarter, TETRA has obtained exceptional preliminary results from its first desalination of produced water for beneficial re-use pilot project in Texas for a major oil & gas producer. TETRA has partnered with this major U.S. shale producer for its first pilot using TETRA's proprietary pre-treatment process combined with osmotically assisted reverse osmosis technology where TETRA has an exclusive agreement for oil and gas applications. The results have yielded as high as 92% de-salinated water from the produced water with total dissolved solids ("TDS") levels ranging from 200 ppm (parts per million) to 40 ppm. For comparison, the typical average municipal tap water contains between 300 ppm to 400 ppm. The trial was recently completed and the equipment field and operational learnings will be used for a final commercial plant design.
TETRA"S CEO Brady Murphy stated, "I am pleased with the progress we have made this year by strengthening our position in key markets for an expected multi-year offshore upcycle while making significant R&D and engineering progress for lithium extraction and bromine production from our Arkansas Smackover brine leases. With the recent and increasing seismicity events in West Texas and New Mexico, there is increasing urgency for desalinating oil and gas produced water for the purpose of beneficial reuse. We are excited with our advances in each of these areas and the business opportunities they present for the company."
Company Overview
TETRA Technologies, Inc. is an energy services and solutions company operating on six continents with a focus on bromine-based completion fluids, calcium chloride, water management solutions, frac flowback, and production well testing services. Calcium chloride is used in the oil and gas, industrial, agricultural, road, food, and beverage markets. TETRA is evolving its business model by expanding into the low carbon energy markets with its chemistry expertise, key mineral acreage, and global infrastructure. Low carbon energy initiatives include commercialization of TETRA PureFlow®, an ultra-pure zinc bromide clear brine fluid for stationary batteries and energy storage; advancing an innovative carbon capture utilization and storage technology with CarbonFree to capture CO2 and mineralize emissions to make commercial, carbon-negative chemicals; and development of TETRA's lithium and bromine mineral acreage to meet the growing demand for oil and gas products and energy storage. Visit the Company's website at www.tetratec.com for more information.
Cautionary Statement Regarding Forward Looking Statements
This news release includes certain statements that are deemed to be forward-looking statements. Generally, the use of words such as "may," "see," "expectation," "expect," "intend," "estimate," "projects," "anticipate," "believe," "assume," "could," "should," "plans," "targets" or similar expressions that convey the uncertainty of future events, activities, expectations or outcomes identify forward-looking statements that the Company intends to be included within the safe harbor protections provided by the federal securities laws. These forward-looking statements include statements concerning economic and operating conditions that are outside of our control, including statements concerning recovery of the oil and gas industry; customer delays for international completion fluids related to global shipping and logistics issues; potential revenue associated with prospective energy storage projects or our pending carbon capture partnership; inferred mineral resources of lithium and bromine, the potential extraction of lithium and bromine from the leased acreage, the economic viability thereof, the demand for such resources, and the timing and costs of such activities; the ability to obtain an initial economic assessment regarding our lithium and bromine acreage; the construction of bromine production facility; projections concerning the Company's business activities, financial guidance, profitability, estimated earnings, earnings per share, and statements regarding the Company's beliefs, expectations, plans, goals, future events and performance, and other statements that are not purely historical. With respect to the Company's disclosures of inferred mineral resources, including bromine and lithium carbonate equivalent concentrations, it is uncertain if further exploration will ever result in the estimation of a higher category of mineral resource or a mineral reserve. Inferred mineral resources are considered to have the lowest level of geological confidence of all mineral resources. Investors are cautioned that mineral resources do not have demonstrated economic value. Inferred mineral resources have a high degree of uncertainty as to their existence and to whether they can be economically or legally commercialized. A significant amount of exploration must be completed in order to determine whether an inferred mineral resource may be upgraded to a higher category. Therefore, you are cautioned not to assume that all or any part of an inferred mineral resource exists, that it can be economically or legally commercialized, or that it will ever be upgraded to a higher category. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future performances or results and that actual results or developments may differ materially from those projected in the forward-looking statements. Some of the factors that could affect actual results are described in the section titled "Risk Factors" contained in the Company's Annual Reports on Form 10-K, as well as other risks identified from time to time in its reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission.
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SOURCE TETRA Technologies, Inc.
