STW Resources Secures $6 Million in New Credit Line and Accounts Receivable Financing New Credit Facilities Enable the Company to Fund Increasing Growth
MIDLAND, Texas, March 6, 2014 /PRNewswire/ -- STW Resources Holding Corp. (OTCQB: STWS), an integrated provider of oilfield services and water management, announced today that it completed $6 million in new financing to meet its accelerating growth. Black Pearl Energy, an entity controlled by STW Resources CEO Stanley Weiner and COO Lee Maddox and Director Grant Seabolt, has guaranteed a $2 million line of credit to STW; the company has drawn $1 million initially. In addition, Crown Financial has agreed to provide a $4 million accounts receivable factoring facility for the Company's Construction and Pipeline businesses.
Stanley Weiner, STW Resources Holding's CEO, said, "STW's growth has far exceeded our expectations. We are pleased to have these new funding facilities, which are critical to support our rapidly expanding business lines. In just the past three months, STW has continued to increase the number of new contracts and/or winning bids with existing customers and has doubled the total master service agreements. Access to this working capital has allowed the company to continue the growth strategy of hiring additional qualified experienced crews and to provide quality service for our customers. Current demand is coming in ahead of our internal forecasts for our Energy, Construction, Pipeline and Remediation divisions. This new financing provides us the flexibility to capitalize on additional opportunities."
STW Resources Holdings Corp. is a corporation formed to provide consulting and operational services to the oil and gas industry. Our combination of knowledge and experience in the day to day issues of the oilfield allows us to better fulfill the needs of our customers. The synergy between our product lines allows for sales opportunities across divisions throughout the oil and gas continuum. Current project locations include the Eagle Ford Shale (TX), the west Texas Delaware and Permian Basins (TX), and eastern New Mexico. STW Water Service and Consulting 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. As an independent solutions provider, STW utilizes proven technologies from various well-known manufacturers, available as fixed or mobile units providing varying capabilities. STW Oilfield Construction provides road, pit, location, and water pond construction. STW also offers evaporation covers for the elimination of evaporation and algae growth on frac ponds used throughout the oilfield. STW offers high quality liners with fusion-welded seams, quality control testing including air tests of seams and destruction testing. STW Energy 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 upon disposal. STW Energy's services include roustabout services for several major oil and gas producers. STW Pipeline Maintenance & Construction division aids oil & gas companies in connecting new wells so the oil & gas can be sold to market and helps maintain the integrity of their existing pipeline infrastructure. For more information, visit www.stwresources.com.
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.