STW Resources Holding Corp, (OTCQB: STWS), an integrated provider of water management, including water processing, desalination, reclamation and remediation, and oilfield services, announced today that the company has signed an agreement with H2O Investments, a world renowned water processing and reclamation company and family investment office in Houston, Texas, to finance the well development program for the Ft. Stockton, Texas lease. The 11 well development agreement with Ft. Stockton is an integral part of STW Water’s initial West Texas Water Project for the “design, engineer, build, and own model.”
David Bruce, President of H2O Investments, stated, “Our investment in the Ft Stockton lease is the beginning of a successful partnership with STW for many years to come. H2O Investments is pleased to be part of a project that provides a new source of water to the people of West Texas.”
In a non-dilutive project debt partnership, H2O Investments will provide the capital to drill the production well and build-out a water station to sell water to producers. Additionally, they will construct a short pipeline to implement the sale of water to STW’s municipal water customers. The Company has maintained a monitor well less than a mile away that has already been drilled. The monitor well has been tested and shows production rates of one million plus gallons per day through a much smaller hole size than is planned for the production well. The size of the hole on this production well will be much larger in diameter and the Company is expecting larger volumes of water per day.
The West Texas Water Project has a large impact for the citizens and industry of West Texas. It will eventually be part of a master water plan lasting 50 to 100 years to insure that West Texans have an ample supply of fresh water. Since West Texas is naturally an arid region and with low volumes of available fresh water, without an alternative source of fresh water, the municipalities and industry in West Texas will not be able to grow and flourish. Only with a concerted effort to build out water infrastructure and utilizing available aquifers, will West Texas accomplish their economic goals. The three hydrogeological reports/studies that have been performed on the Capitan Reef in this area indicate there are approximately 14 million acre-feet or 5.6 trillion gallons of fresh water available.
The consulting firm over the project is 25-year veteran Lane Drilling Consultants (LDC) based out of Midland, Texas. O’Ryan Drilling which has operated in the Permian Basin for 10 years drilling for Oil and Gas, as well as developing numerous municipal water wells, owns the drilling rig that the company will be utilizing on the initial well.
Timeline for First of Eleven Development Wells Begins in June
STW has begun preparing the lease to move the rig on site by building the pad and the initial rathole. The triple stack rig (Rig #7) from O’Ryan is scheduled to arrive in early June. It will take approximately two days to rig up and test all equipment before they are ready to commence drilling operations or “spud” the well.
Once the well has reached total depth and logged and completed the well, STW will then install the pump to a depth of 300’-500’ depending on water level in the hole. STW and the hydrogeologist will then begin a 72-hour pump test to determine drawdown of the water level and determine flow rates and volume. The anticipated pumping capacity is expected to be anywhere from 1700gpm to 2800gpm (gallons per minute) or 2.5 – 4.0 million gallons of water per day. STW will also run a full water analysis to meet all Texas Commission on Environmental Quality (TCEQ) requirements for municipal water. A hydrogeological report/study by a licensed third party firm to evaluate the reserves in place will be performed. As water production rates and reserves are proven, added value is created on the company’s balance sheet.
Alan Murphy, President of STW Water, said, “This is the first of eleven wells slated for drilling on the Ft. Stockton lease. We have worked on this Project for 4+ years and I’m very excited about moving forward at this time. Knowing that this well is the offset to our monitor well that has been tested to produce 1+ million gallons per day makes it even more exciting since I consider this a development well and not exploratory since we know the water is there. Also, I am expecting significantly more production from this hole since we are drilling a much larger hole on this well compared to the monitor well. Once we have this well up and running, we will move to drilling and completing the other ten wells as delineated in our well development agreement with the City of Ft. Stockton.”
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About H2O Investments http://www.globalh2oinvestments.com
H2O Investments is managed by David Bruce and provides capital for developing new or acquiring existing water, wastewater and “waste-to-value” infrastructure assets in North America, the Caribbean and South America. The Company also provides capital for direct investments in wastewater and waste management companies that focus on renewable energy and by-product recovery business models. The Company’s headquarters are located in Houston, TX and Baja Sur, Mexico. For additional information: 713.488.4065.
About STW Resources Holding Corp.
STW Resources Holdings Corp, (OTCQB: STWS) is a quality provider of oilfield services, water desalination, reclamation and processing management services. 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 the 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 oil & gas, industrial and municipal water and wastewater markets throughout the State of Texas. STW’s model of water ownership has had recent success and broken ground on West Texas Project. STW’s Water Process & Technologies division has a 30-year exclusive agreement with the City of Ft. Stockton, Texas which awards STW Water the rights to drill and produce from documented water reserves of the Capitan Reef Aquifer. The reservoir has the potential to supply numerous municipalities at a rate of up to 100+ million gallons per day without depleting or affecting the integrity of the reservoir. The project involves 11 planned production wells, which have the potential to generate a minimum of approximately 2.5+ million gallons of water per day per well. STW also has other leases to be included in this Project.
The Company 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. STW also has the advanced technology for “Toilet-to-Tap” municipal water processing that will enable the reuse of billions of gallons of municipal wastewater instead of disposing it by injection into local waterways potentially harming the sensitive ecosystems or just used for agriculture or other purposes.
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 Proprietary 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 95-97%+ 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).
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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 risks and circumstances that we are unable to predict. When used in this news release, words such as "believes," "expects," "intends," "plans," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions. Investors should not place undue reliance on these 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.
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Contacts:
Company Contact:
Paul DiFrancesco,
432-687-1811
or
Investor Relations, 432-687-1811
cleanwater@stwresources.com
