MIDLAND, Texas--(BUSINESS WIRE)--STW Resources Holding Corp. (OTCQB: STWS) obtained approval from the Middle Pecos Groundwater District to drill an additional development water well to further define the extent of the water contained in the aquifer. Test wells studied by a recent hydrogeological report show potential production of 100+ million gallons per day for up to 100+ years. STW will drill and complete all of the production wells and run their own flow rates along with other criteria to determine the parameters of the reservoir with the assistance of a certified Hydrogeological Firm that specializes in evaluating water reservoirs and how much water is actually contained in them.
The project is on schedule currently and with the high production rates of water from the monitor well, STW is encouraged, thus the acceleration of its well development program. STW is moving forward on the project financing part of the project to move the project even faster along.
The property currently has a monitor well that was drilled in 2013 to a depth of 3,500 feet. It contains approximately 500 feet of Capitan Reef Formation and is currently producing approximately 300 gallons per minute or 432,000 gallons of water per day. Pursuant to information derived from other wells in the area that have been drilled through the Capitan Reef, there should be an additional 500-800+ feet of Capitan Reef Formation. The current development well being drilled by STW, utilizing the monitor well water, will be drilled to the bottom of the Capitan Reef Formation to determine the extent of the reservoir. It is currently drilling at 1,200 feet. If the additional footage of reservoir is proven, this development well should produce two to four+ times the volume of water that the monitor well is producing or approximately 1-1.6+ million gallons of water per day. STW is also increasing the diameter of the hole drilled into the formation which should increase the flow rates of the water.
This project is pursuant to the signing of a lease agreement with Ft. Stockton last summer on municipal land to drill multiple water wells to produce and market water from the Capitan Reef Water Aquifer to other municipalities in West Texas. Texas is still in a severe drought stage and many of the towns that the STW water pipeline will serve are close to running out of water for their citizens. The Capitan Reef Water will also be sold to end users for drilling oil & gas wells instead of using our precious fresh water in the drought stricken areas. The company holds the right to sell water contracts to beneficial users for up to 30 years or the life of the contracts agreed upon. The project is divided into three phases with the initial phase cost at approximately $18 million; the company is currently negotiating terms with investors for partnering and/or financing.
Initially, STW and the city of Ft. Stockton have agreed to build multiple water stations to provide water for industrial customers. Simultaneously the company is contracting a 189-mile pipeline through the Permian Basin in West Texas to provide water to 9 communities. Water will be sold and transported through the pipeline during construction to towns and beneficial end users along the route. We hope to pipeline it to San Angelo and then put the extra in an already existing pipeline that goes to Midland, Odessa, and several other communities that currently takes water to them for their municipal use. This will enable West Texas to prosper and grow without the worries of having enough water for its citizens and industry.
Alan Murphy, the President of STW Water, stated, “This joint effort between STW and the City of Fort Stockton will provide water to thousands of West Texans and not to mention create revenues for the town. This project is moving along as planned.”
STW Resources CEO Stanley Weiner stated, “I’m excited to see this project moving along so well. It is a major project with a lot of moving parts but everything is going as planned. Being a native West Texan, this is a project that I’ve been dreaming of since I formed the company. We have three goals: clean up brackish and oilfield produced and flowback water for use in the oilfields (thus preserving our precious fresh water resources), process brackish water for municipalities for West Texas citizens, and reclaim any other types of contaminated waters for reuse. After all, the name of the company is STW (‘Save the Water’) Resources.”
- 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), eastern New Mexico, and ocean desalination projects on the Gulf Coast of Texas. ENVIRONMENTAL IMPACT: If STW’s Salttech Technology is placed inline 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.
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.
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.