STW Resources Launches New Oilfield Remediation Subsidiary and Partnership with Blue Arch Resources

MIDLAND, Texas, Feb. 24, 2014 /PRNewswire/ -- STW Resources Holding Corp. (OTC QB: STWS) announced today it is creating a new subsidiary to engage in the reclamation of oil based drilling cuttings and the oil sludge from cleaning out oil storage tanks, initially in the West Texas Permian and Delaware Basins with roll out plans in the Eagle Ford Basin in south Texas and Eastern New Mexico. 

STW said it has entered into an agreement with Blue Arch Resources, an environmental company in Houston, Texas. Blue Arch owns the intellectual property which is a technology and proprietary chemical utilized in remediating oil based cuttings, mud and oily tank bottom sludge.

In the agreement, Blue Arch will manufacture the reclamation facilities and supply the proprietary chemical used in the separation and reclamation of the cuttings. Blue Arch provides STW an exclusive for business opportunities with customers that STW registers and for the West Texas Permian and Delaware Basins, Eagle Ford Basin in South Texas, and Eastern New Mexico areas.

STW has been consulting with Blue Arch on the design, completion and testing of the first unit which the partnership will deploy in the Permian Basin. Third party laboratory results of the unit's output exceeded EPA standards and removed hydrocarbons to below hazardous waste levels. The reclamation process will generate two marketable streams of material: hydrocarbon products and remediated and reclaimed solids, which can be used as road base, berms or secondary containments.  The unit is currently being tested on the many types of oilfield waste from several locations, located in STW's yard in Midland and ready for deployment. STW has been working with oil and gas producers and is in final stages of placing the initial unit, which will have initial reclamation capacity of up to 2000 barrels a day of cuttings and/or sludge.

STW will oversee the build-out, as well as own and operate the facility on a producer's site and/or lease. The company expects to have the first facility operational by the second quarter and is working with Blue Arch to manage a rollout schedule for additional sites.

THE MARKET: Oil based cuttings are the ground-up rock from the drilling of wells. The oil is used to lubricate the drilling bit and to carry the cuttings up out of the hole while the drilling is taking place. The oil also provides pressure control to help insure that high pressures from oil and gas formations do not create a blowout situation while the pressures are encountered during drilling operations. The rock cuttings are soaked with diesel and oil when they come to the surface and are disposed of either by digging deep holes and burying them or they are hauled off to permitted facilities for disposal; both methods are potentially future environmental and economical liabilities.

The processing plants are used to separate and recover hydrocarbon components of the oil-based waste streams and selected solid materials from oil-based drilling fluids (also known in the industry as drilling "mud"). The cuttings are reduced to a non-hazardous rock that can be used for road base and the hydrocarbons are separated out and are sold in the secondary oil market.

STW CEO Stanley Weiner added, "That all of the services we provide are environmentally sound and help clean up and/or reclaim useful by-products from waste in the oilfield. Utilizing our complete and integrated skill sets, cutting-edge technologies, and unmatched customer service, we at STW offer our clients unique cost saving alternatives to the historical way of dealing with their waste streams and providing the avenue to eliminate any potential future liabilities associated with this oilfield waste. As stated above, 'The cuttings are reduced to a non-hazardous rock that can be used for road base and the hydrocarbons are separated out and are sold in the secondary oil market.' The resulting business will provide organizational growth and stability, market penetration, and a full range of services."

About STW Resources Holding Corp.

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.

About Blue Arch Resources: Blue Arch Resources was formed to provide a multi-pronged technological approach toward broad-based recovery and recycling packages for the oil and gas exploration and production (E&P) industry. Blue Arch will develop and provide the innovation, experience, and expertise to succeed in the industry's three primary service sectors which include 1) waste recycling, 2) oil recovery, and 3) aggregate reclamation. Blue Arch will offer our clients cost saving alternatives to the historical way of dealing with their waste streams which has been disposal. The resulting business will provide organizational growth and stability, market penetration and an expanded range of services. To implement this vision, Blue Arch will focus on the research, acquisition and development of non-hazardous oil-field waste processing and recycling sites. The initial facilities will be located in areas of high levels of exploration and production activity such as in the tri-state area of Texas, Oklahoma and New Mexico.

Forward-Looking Statements

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SOURCE STW Resources Holding Corp.