MIDLAND, Texas, Sept. 23, 2013 /PRNewswire/ -- STW Resources Holding Corp. (OTC QB: STWS) announced today it has created a division to engage in oil and gas pipeline construction, fitting, maintenance and repair initially in the West Texas Permian and Delaware Basins and Eastern New Mexico. The company said that Adam Jennings, a veteran of the pipeline construction industry, has been named the division's president.
STW said it is hiring 14 highly skilled employees that all have a minimum of 15 years experience doing this work for the new division, which includes two maintenance crews. Each crew generally produces approximately $1mm in revenues per year. Because of strong demand for its services, the company anticipates adding three to five additional crews over the next six weeks. STW Resources has arranged financing for initial equipment and operating capital. STW said there is major demand for the division's services because of new oil and gas discoveries requiring new pipelines as well as replacement and maintenance of old, deteriorating pipelines in danger of leaking. The company noted that the basin has thousands of miles of aging pipeline, with some of the infrastructure dating back to the 1950s.
Adam Jennings, the division's President, was most recently Operations Supervisor of Maintenance and Construction for DCP Midstream, where he was responsible for the construction and maintenance of 12,000 miles of natural gas pipelines and overseeing a multi million dollar annual budget, while supervising over 20 employees and up to 200 contractors. He is a Veriforce certified evaluator in the most relevant tasks, and has managed many skilled pipeline construction and repair crews. Prior to DCP Midstream, Mr. Jennings worked at Freeman Construction and Holloman Corporation, where he operated a wide variety of heavy equipment, managed equipment operator teams, and successfully administered employee safety practices.
"STW has a consistent solution to customers' needs and expectations, having previously worked in both construction and midstream applications," said STW Pipeline Maintenance & Construction President Adam Jennings, adding, "We are well positioned to capture market share due to our wide ranging experience and industry relationships. For the past few years, while we were constantly repairing old lines with leaks, on a weekly schedule the helicopter would fly the lines and we would have additional new leaks to add to the list. My repair crews were busy 6 days per week on a yearly basis. "
"We have identified a need in the oil and gas industry that is not susceptible to the fluctuations in the commodity prices," said STW Chief Operations Officer Lee Maddox, adding, "This is an opportunity to diversify with a division that complements our other services."
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. 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 construction business providing road, pit, location, and water pond construction. It also offers evaporation covers for the elimination of evaporation on frac 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 Resources Holding Corp., offers a turnkey rig washing service along with the technology to process drilling waste fluids, tank bottoms, and oil based cuttings that will completely eliminate any potential future liabilities (Cradle-to-Grave) to the operators after they dispose of them. STW services include roustabout services for several major oil and gas producers too.
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.
Stern & Co.
SOURCE STW Resources Holding Corp.