STW Water Receives Project Financing For The Upton County Water Station

MIDLAND, Texas, Oct. 7, 2014 /PRNewswire/ -- STW Resources Holding Corp. (OTC QB: STWS) announced today that its wholly owned subsidiary, STW Water, has received funding for an Upton County water station in accordance with the agreement signed last month with the landowner. STW has closed capital in the form of a project finance debt obligation having no dilutive effect on the shares in STW Resources Holding Corp. The first water station cost is $1.25 million and will be fully operational in late January.

In the agreement with the landowner, STW will drill down into the Santa Rosa brackish aquifer and process the water onsite using a reverse osmosis and concentrator process. The initial processing capacity for the station is 15,000 barrels or 630,000 gallons per day; STW expects to increase this to 30,000 barrels a day by August of 2015. STW will sell water to oil producers from the water station and/or the customers will pipe it to their fresh water ponds for use in their drilling and fracking operations. Current prevailing rates for water in Upton County are approximately $1.10 per barrel. At capacity, each of the four water stations will generate over $10 million in revenues annually.

The company is currently working with a project finance-banking firm to procure the capital for the three additional water stations already contracted with the landowner in Upton County. The company plans to continue financing their water processing sites such as the Fort Stockton project via non-dilutive project financing.

STW Resources Holding Corp. CEO Stanley Weiner added,  "This is one of many projects that STW Water is working on that Alan Murphy, president of STW Water, has the design and engineering experience for these systems to process this brackish water. This also follows our model to have a minimum or no negative impact on the environment while helping preserve our precious fresh water resources."

STW Water President Alan Murphy stated, "This is a project that will be easy to construct and operate. With the drought wreaking havoc on our fresh water resources, this is a major step in utilizing technology to provide additional fresh water to our ecosystem. It is also a great method to allow for the continued development of additional oil and gas wells while not utilizing our fresh water to help out with our National goal of lowering our dependence on foreign oil."

About STW Resources Holding Corp.

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, including Salttech, a Zero Liquid Discharge (ZLD) technology that is economically feasible to use. 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 dirt construction business providing roads, pits, locations, and water pond construction. It also offers evaporation covers for the elimination of evaporation on frack 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. STW services include roustabout services for several major oil and gas producers too. STW's 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.

www.stwresources.com

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SOURCE STW Resources Holding Corp.