STW Resources Successfully Completes Produced Water Reclamation Pilot for Oil and Gas Producers in Texas' Permian Basin

MIDLAND, Texas, March 28, 2012 /PRNewswire/ -- STW Resources Holding Corp. (OTC QB: STWS), a water reclamation services company, which has been operating a water processing pilot program in the Permian Basin for several producers, today announced that certified lab testing results from independent Xenco Laboratories show that its reclaimed oilfield-produced water meets industry standards for reuse in oil and gas drilling operations. 

STW Resources deployed a proprietary mobile water processing system in partnership with Bob J. Johnson & Associates, Houston Texas, its engineering and design firm. The Company is conducting demonstrations for several major oil and gas producers in the Permian Basin.

The company said that over the next thirty days, STW and Bob Johnson's team will be operating the system to demonstrate its efficacy and efficiency, in order to help facilitate water processing contracts with several of the oil and gas producers.

STW said it is already in various stages of contract discussions to deploy fixed and/or mobile systems to process and reclaim produced, brackish, and/or frac water with producers in the Permian Basin.  The company said that the volumes range from 5,000 to 60,000 barrels per day for each producer. 

"Now that our process for cleaning oilfield and brackish water has been certified to meet industry specifications, STW expects to gain contracts from the oil and gas companies to process produced and/or brackish water for reuse in their drilling and fracking operations," said Stanley Weiner, CEO of STW Resources.  

Weiner said that revenues from these projects are based on a per barrel processing fee that can be competitive or significantly less than an operator's total cost of water, including raw water costs, disposal fees, and water transfer and/or transportation costs.  The STW water processing systems will be located where drilling operations are taking place, thus reducing the water transfer and disposal costs

About STW Resources Holding Corp.

STW Resources Holding Corp. ("STW Resources"), Midland, Texas, provides customized water reclamation services. STW Resources' core expertise is an understanding of water chemistry and its application to the analysis and remediation of complex oil and gas water reclamation projects. STW Resources provides a complete solution throughout all phases of a water reclamation project, including analysis, design, evaluation, implementation and operations. For more information, go to: www.stwresources.com.

About Bob J. Johnson and Associates

Headquartered in Houston, Texas, with offices in West Texas, Central Texas and North Texas, Bob Johnson & Associates is a full-service engineering and design water treatment company with 36 years of experience in water treatment systems with a full range of capabilities, from equipment to chemical solutions to treat water & wastewater. Services include complete system design, engineering, fabrication and system construction, on-site installation and service after the sale, including maintenance contracts and extended warranties. The company serves municipal, industrial, commercial, and residential markets in Texas, throughout the United States and around the World. From research to design, from fabrication to commissioning, from sales to service, the Bob Johnson name has come to be synonymous with reliable water treatment systems. For more information, visit: http://www.bjja.com/

About Xenco Laboratories, Inc.

Xenco Laboratories provides environmental analysis services across the United States and Latin America. Our loyal customers include oil companies, electrical utilities, airports, municipalities, manufacturing facilities, electronics companies, federal and state government entities, pharmaceutical corporations, and a myriad of engineering and consulting companies. http://www.xenco.com/index.htm

Forward-Looking Statements

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. Risks include the company's ability to secure contractual arrangements with oil and gas lease operators included in pilot programs, and other potential customers negotiating with STW Resources. 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, except as required by law.

SOURCE STW Resources Holding Corp.