STW Resources Contracts to Build, Own and Operate a Produced Water Recycling Facility in West Texas Oilfields
STW and Tiburon Research Holdings have finalized an agreement to recycle frac flow-back and produced water on Tiburon's Powell saltwater disposal site near Midland, TX.
MIDLAND, Texas, Jan. 22, 2013 /PRNewswire/ -- STW Resources Holding Corp. ("STW") (STWS.PK), an oilfield services and water reclamation company, today announced that it has executed an agreement with Tiburon Research Holdings ("TRH") to own and operate a 336,000 gallon (8,000 barrels) per day produced water recycling plant to provide re-usable water to oil producers in the area.
Under the terms of the agreement, STW will oversee design, construction, permitting and operation of the plant. TRH, an owner of the Powell saltwater disposal site through its co-management of the Tiburon Saltwater Reclamation Fund I ("TSWR") has agreed to deliver up to 8,000 barrels per day of piped-in produced water. Additionally, TSWR will facilitate $3mm in financing for the joint venture.
STW's revenues derive from various fees: 1) produced water disposal, 2) potential sale of concentrated brine by-product for use as a drilling fluid, 3) sale of recycled water for re-use in well drilling and completion operations. Operations are expected to commence in Q2 of 2013. STW and TRH anticipate replicating this model on multiple TRH owned/managed salt water disposal facilities in West Texas and in the Eagle Ford Shale Formation. Projected revenues at optimal capacity would be $6mm annually, with two additional locations identified for replication.
"After analyzing, testing, and processing hundreds of different types of oilfield waters, we have designed the optimum systems to economically process these waters. Our systems are scalable to process any volume of water that is required by our clients. Working for several years, we have refined our processing systems and optimized designs for various types of water encountered in the oilfield," Stanley Weiner, CEO of STW Resources says.
"Our core business in the energy sector has been building and managing multiple salt water disposal facilities," says Paul Brahe, TRH's Founder. "Disposal sites create a natural opportunity for reclamation and recycling of water from oil and gas production. We want to develop and operate co-location sites that can perform both activities. STW brings technical experience and knowledge that can make this type of operation economically viable. Current and future water shortages create significant demand for these services; our combined business models will meet those needs."
About STW Resources Holding Corp.
STW Resources Holding Corp. provides customized water analysis, reclamation and remediation services to a variety of complex industrial and municipal applications throughout several geographic locations. As an independent solutions provider, STW utilizes proven technologies from various well-known manufacturers. 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), and the West Texas Delaware and Permian Basins (TX). For more information, please contact the Company at (432) 686-7777.
About Tiburon Research Holdings:
Tiburon Research Holdings, LLC is a research and investment management company based in California with operations through its partners in Texas and South Carolina. TRH co-manages the Tiburon Saltwater Reclamation Fund I. Additionally, TRH provides in depth research services in multiple industries including technology, finance and energy. Along with research services, TRH consults on start ups and recapitalizations focusing on growth and capital structures. The Company has advised and helped complete several oil and gas start ups and rollups over the last decade.
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.
SOURCE STW Resources Holding Corp.
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