MIDLAND, Texas, Jan. 28, 2013 /PRNewswire/ -- STW Resources Holding Corp. (STW) (STWS:PK), an oil field services/construction and water reclamation company, announced today that it is participating in a joint venture to remediate oil based drill cuttings. STW and its joint venture partners in Black Wolf, LLC will derive revenues from receipt and disposal, as well as sale of reclaimed byproducts to oil refineries, drillers and for building asphalt roadbeds.
The company said that with its Black Wolf partners it has identified an 80-acre site in the Eagle Ford Shale Formation in Atascosa County Texas, for a full-service salt water disposal facility that will include remediation of oil-based cuttings as well as produced and frac flow back water. STW announced last week that it acquired an equity interest in the joint venture. Black Wolf expects to begin build out of the first oil-based cuttings/salt water disposal facility in the second quarter of this year.
STW CEO Chairman Stanley Weiner said, "This will be the first combined disposal and remediation site of its kind and it confirms the breadth of technology, construction and service capabilities provided by STW and its partners." He explained that standard disposal procedures for oil-based cuttings involve "very expensive costs of transportation and a limited number of permitted disposal sites that do not include reclamation of the cuttings."
Lone Wolf Resources, LLC, a partner in Black Wolf, is contributing its proprietary technologies for the oil based cuttings remediation. Lone Wolf currently deploys this technology for superfund projects requiring remediation of hydrocarbon-impacted soils. The other partner in Black Wolf is Black Pearl Energy, LLC.
STW Chief Operating Officer Lee Maddox said "Our new business line combining oil-based cuttings remediation with a saltwater disposal facility, in addition to other recently announced projects, will add new revenue streams and increased value to STW's shareholders."
The new ventures come on the heels of three new STW revenue-producing expansion projects and services that the company announced last week.
--Expansion of its water reclamation business beyond the oil and gas business with delivery of a desalinization system to the Midland Hills Golf Club that converts 700,000 of gallons of brackish well water per day into the equivalent of rainwater for greens and fairway maintenance. http://bit.ly/STWMidlandGolfWater
--Executed an agreement with Tiburon Holdings to own and operate a 336,000 gallons or 8,000 barrel per day produced water recycling plant near Midland that will resell reusable water to oil producers. Projected revenue at full capacity is $6 million per year, and the companies are looking at two other sites. http://bit.ly/PRNTiburonWaterRecycle
--Acquisition of a 10% equity interest in the Black Wolf joint venture that expands STW's business into vertically integrated oil and gas services and dirt construction company in West Texas, Eastern New Mexico and the South Texas Eagle Ford Shale Formation. STW estimates that the partnership revenue will exceed $3 million per month by year-end, and $40+ million in 2014. PR Newswire (http://s.tt/1yRdE)
For More information, please contact:
Stern & Co.
STW Resources Holdings 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)
About Black Wolf, LLC:
Black Wolf builds and provides services and maintenance for drill sites, reserve pits, frac ponds, roads, pit closings, liners, leak detection systems, and evaporation covers. The company also offers turnkey services for permitted ponds; including surveys, engineering and design, as well as permitting for storage of produced and brine waters. It also uses Lone Wolf's proprietary technologies in the reclamation of hydrocarbon-impacted soils.
About Lone Wolf Resources, LLC:
Lone Wolf Resources is an environmental and civil construction company operating in the oil and gas industry. Originally formed by two large petrochemical companies for the remediation of a refinery declared as a super fund site, is now a privately held company. Lone Wolf Resources worked with the Department of Transportation and the Texas Commission on Environmental Quality to shape the standards for processing hydrocarbon-impacted soils to a reusable road base. Lone Wolf has completed projects internationally and throughout the United States, including the world's largest in-situ thermal remediation project.
About Black Pearl Energy, LLC:
Black Pearl Energy, LLC has developed an evaporation cover for the elimination of evaporation on frac ponds used throughout the oilfield. It is a conservation-friendly and economic method of preserving 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. Black Pearl also provides high quality liners with fusion-welded seams, quality control testing including air tests of seams and destruction testing.
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SOURCE STW Resources Holding Corp.