STW Water Update & Plans for Growth in 2015

MIDLAND, Texas--()--STW Resources Holding Corp (OTCQB: STWS) provides an update on the drilling of its Ft. Stockton project and announces its plans for expansion of the STW Water Process & Technologies subsidiary.

“As we enter 2015, we are very excited about our prospects and continuing the triple digit growth we saw for 2014,” said Stanley Weiner, CEO of STW Resources. This growth will come from several major initiatives and contracts that began in 2014.

Capitan Reef Water Aquifer Project

The first major project for growth is the Capitan Reef Water Aquifer development project with the city of Ft. Stockton, Texas. STW has begun drilling its first development well which is now below 2000 feet and more than halfway to the aquifer. The drill is expected to hit the aquifer within the next two weeks.

“Over the years, I have worked very closely with the city of Ft. Stockton on its reverse osmosis facilities, and it is rewarding to be once again working with such a professional group on such an important project for both STW and the State of Texas,” stated Alan Murphy, President of STW Water.

The 30-year agreement, with options for longer time periods, with the City of Fort Stockton gives STW Water the rights to drill and produce extensive water reserves from the Capitan Reef Aquifer. Key independent third party hydrogeological reports say the reservoir could possibly produce in excess of 100+ million gallons per day for over 100 years and not affect the integrity of the reservoir. STW Water is currently drilling its first of 11 development wells for the first phase of the project. One monitor well has already been completed that is within a mile of the current development well. This monitor well has been tested and will produce approximately 850,000 gallons of water per day. It should be noted, this well only penetrates 500 feet into the aquifer and has a 4½-inch casing in the well bore.

The first development well will have 16 inch casing in the wellbore and will penetrate the entire 1,200+ feet of Reef. It is believed that this development well will generate at least 2.5 million gallons of water per day that it could sell for an average of approximately $12 per 1,000 gallons to both municipalities and to the oil producers.

As part of its agreement for the rights to drill into the Capitan Reef Aquifer, STW agreed to provide the water to municipalities and beneficial end users in West Texas. As part of this plan, STW is working with the State and local municipalities on plans to build a pipeline to the City of San Angelo and then to serve several other cities in West Texas to assist these cities in managing their limited water resources during the current unprecedented drought throughout the state. For example, three cities have already voiced their need and intent on signing long-term contracts to buy as much water as STW can deliver. Currently a couple of the smaller cities are actually having to bring water in by truck because of their water shortages and others are on the brink of having to do the same thing.

Salttech DyVaR Water Reclamation Technology

The second area of expected growth will come from STW’s exclusive licensing agreement with Salttech, BV. Salttech has created the most efficient Zero Liquid Discharge (ZLD) water processing technology that can recover up to 97% clean water from any saline laden water containing dissolved salts and other solids and contaminants of up to and over 300,000 parts per million including frack flowback, oilfield produced water, and ocean water and its reverse osmosis concentrated brine reject. The remaining 3+% is discharged in the form of solid salts and minerals, thus no discharge or disposal problems. Most ocean water desalination systems produce 35%-45% fresh water and 55%-65% of highly concentrated brine concentrate liquid that ends up being discharged into the local waterways and oceans potentially creating harmful effects on the ecosystems.

The first Salttech system in the United States is located in Mentone, Texas (approximately 120 miles from Midland, Texas). The system is run by fully renewable solar energy and is providing all of the necessary clean drinking water for the entire town. The second system is now in the construction phase for use by a $25 billion NYSE oil and gas producer to provide clean water from a brackish water aquifer for this company’s West Texas operations and Mancamp facilities and eliminate its usage of the limited municipal fresh water resources.

Upton County Aquifer Project

The third project is in Upton County, Texas to drill into the Santa Rosa brackish aquifer and process the water for delivery to oil producers who will either pick up the water at our water station or pipe it directly to their fresh water ponds for use in their drilling and fracking operations.

STW has closed the funding needed for this project. It has been structured as a debt in the form of project financing and has no dilutive effect on the shares in STW Resources Holding Corp.

The first water station costs approximately $1.25 million and should be fully operational during the second quarter. 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 the fourth quarter of 2015. Current prevailing rates for water in Upton County are approximately $.80-$1.10 per barrel.

“It is exhilarating to have years of work come to fruition as we have completed a contract with the major land owners in the area, have financed the initial stages of this project and were able to use our proprietary design and technology that includes using a hybrid reverse osmosis and concentrator process to efficiently clean the water in a very environmentally friendly method,” stated Murphy.

Consulting Projects

STW Water has also been hired as a Consultant and contractor to a Mancamp Development Company and a major independent oil & gas producer in West Texas. It is assisting with the development of Mancamps for housing employees. The project includes obtaining public water supply permitting which needs to be in compliance with the Texas Commission on Environmental Quality (TCEQ) drinking water standard regulations. In addition, STW will assist with all aspects of the project including, but not limited to, well design & development, treatment process design, equipment design & procurement, installation of the systems, full scale commissioning & training, and operation & maintenance by STW’s State of Texas licensed Operators. The water that will be used for drinking water is from a brackish water aquifer and will be processed by STW technology. The arrangement also includes the following:

  • Conduct face-to-face meetings with the TCEQ and other local regulatory agencies to discuss the project updates, express project-related questions and concerns and get their feedback & comments.
  • Work on regulatory permitting for drinking water treatment to include Discharge permit & pilot exception request in lieu of a full scale Pilot Study for a Membrane filtration System.
  • Assist with design of innovative treatment process with advanced technology using STW’s Salttech DyVaR Zero Liquid Discharge System to eliminate need of wastewater ponds, injection wells and other technologies for discharge of the concentrated brine wastewater stream.

“Overall, we are proud to announce that we have become a diversified water company with both large reserves of water and state-of-the-art technologies and are now well positioned as we enter 2015,” said Murphy. “Despite the fall in oil prices, we have positioned ourselves to continue our hyper-growth rates and quickly reach profitability. Many of our oil customers have hedged their projects and are continuing to drill and are in need of our services, and our industrial and municipal customers are in need of the fresh water that we can deliver in unlimited amounts. Simply, we are following our model to have a minimum or no negative impact on the environment while helping preserve and/or increase our precious fresh water resources.”

About STW Resources Holding Corp

STW Resources Holdings Corp (OTCQB: STWS) is a quality provider of oilfield services, water reclamation and processing management services, and rig cleaning services through its three subsidiaries. STW Water is a Total Water Solutions Provider Company and provides turnkey design build solutions and provides its Customers with “out-of-the-box” design solutions to meet customers’ water needs. STW Water has capabilities to provide complete oversight of various water and wastewater projects with primary focus on engineering, regulatory permitting including Public Water Systems (PWS), Discharge permits, Pilot exception and Pilot Study, equipment design & treatment process design, manufacturing & installation and full scale Commissioning and training for all types of oil & gas, industrial and municipal water and wastewater markets throughout the State of Texas. STW’s model of water ownership has had recent successes and broken ground on both Upton County and Ft. Stockton, Texas projects.

It 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 to fill a tremendous need for fresh water in the areas they service. 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 saline laden water with Total Dissolved Solids (TDS) levels ranging from 5,000 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 uses the latest technology to install new pipelines and repair and maintain aging water and oil & gas pipelines (STW Pipeline) and remove oil and diesel residue from drilling rigs to meet environmental regulations (STW Energy).

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 ( 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.


STW Resources Holding Corp
Company Contact:
Paul DiFrancesco, 432-296-3000
Investor Relations:

Release Summary



STW Resources Holding Corp
Company Contact:
Paul DiFrancesco, 432-296-3000
Investor Relations: