STW Resources Pipeline Maintenance & Construction Subsidiary Wins Multiple Bids Fueling Continued Growth in 2015

STW Pipeline Expands Number of Maintenance and New Pipeline Construction Crews to Meet Demand

MIDLAND, Texas--()--STW Resources Holding Corp (OTCQB: STWS) announces it will expand services and the scope of new construction in its wholly owned subsidiary, STW Pipeline Maintenance and Construction, in 2015. Pipeline’s focus is on growth and profitability by increasing/diversifying our customer base and closely managing operating expenses.

Throughout 2014 the company achieved several major milestones: over 100 employees, fully staffed experienced management team, highest safety rating, accepted larger new pipeline contracts, entered into long-term maintenance contracts and produced over $15 million the first twelve months. In the fourth quarter of 2014 the company significantly reduced overhead to achieve positive net cash flow and profitability.

In 2015, the maintenance division of STW Pipeline plans to add an additional 6 to 8 crews in the Permian Basin. Recent decline in oil prices has caused upstream production in the oil and gas industry to slow down while demand for midstream maintenance increased mainly because the aging pipeline infrastructure is being pushed to the limit. Also, pipeline replacements of old lines require attention to keep them in service so that the gas can get to market.

In 2015, the new construction division of STW Pipeline plans to increase the size and scope of the business by bidding on larger new pipeline construction projects. Pipeline will add more crews and equipment to increase the number of new pipeline projects that we can build simultaneously. Additionally, we’ve signed the alliance contract with Regency Energy Partners for the whole year; this contract alone should provide Pipeline with several million in revenues for 2015.

New pipeline installation in 2015 is very aggressive because of the needed infrastructure that’s not in place to move all of the new oil and gas from the wells that have been drilled in the Permian Basin these past few years. Capital has already been budgeted for these projects that will start immediately which affords STW Pipeline the revenue base to add additional crews to the new pipeline construction division. The natural gas industry can be unaffected by the price of oil as we are seeing in the field today. The effect is that it gives the gas companies time to catch up; they have access to more crews and can build the pipelines they haven’t been able to since the oil boom started.

STW Pipeline President Adam Jennings stated, “Our safety record after a year in business is impeccable. This is due to our experienced field supervisors and their crews that practice safety every single day.” Jennings went on to say, “I really have a great feeling about 2015, the work is here in the Permian Basin; we have the management and equipment in place to double our workforce this year to become an even larger competitor in the pipeline maintenance and construction industry.”

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, ocean water desalination, 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. The Salttech system can process any water with TDS levels ranging from 10,000 ppm to >300,000 ppm. Current potential project locations include the Eagle Ford Shale (TX), the west Texas Delaware and Permian Basins (TX), eastern New Mexico, and ocean desalination projects on the Gulf Coast of Texas, California, and Hawaii.

ENVIRONMENTAL IMPACT: If STW’s Salttech Technology is placed in line with a Seawater Reverse Osmosis System or used with a geothermal operation, there will be no potentially environmentally sensitive brine concentrate discharged into the local waterways since the system is Zero Liquid Discharge and 93-97%+ of the fresh water is recovered in the process. The waste stream is salt crystals and minerals. This is a completely Blue/Green operation that provides a sustainable supply of power and water for municipal and industrial use.

STW Energy, a subsidiary of STW 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

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. 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.

Contacts

STW Resources Holding Corp
Paul DiFrancesco, 432-296-3000
pauld@stwresources.com
or
Investor Relations
info@stwresources.com

Release Summary

STW RESOURCES PIPELINE MAINTENANCE & CONSTRUCTION SUBSIDIARY WINS MULTIPLE BIDS FUELING CONTINUED GROWTH IN 2015

Contacts

STW Resources Holding Corp
Paul DiFrancesco, 432-296-3000
pauld@stwresources.com
or
Investor Relations
info@stwresources.com