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Oilfield pilot project to process produced water in West Texas

January 05, 2012
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MIDLAND, Texas -- STW Resources Holding Corp., a water reclamation services company, today announced that it will commission its first oilfield-produced water processing pilot in the Permian Basin of West Texas.

STW Resources will deploy a specialized mobile unit, designed and built using patented and proprietary technologies, to process up to 500 barrels per day for up to 10 days per site. STW Resources anticipates that it will perform at least five pilot projects of various duration for different oil companies within a 30-day period.

STW Resources'' pilot equipment is engineered and operated by Bob Johnson & Associates ("BJJA"); one of STW''s engineering partners. BJJA specializes in water processing facilities and have been involved in the design and engineering of over 7,000 systems worldwide. Pilots represent the final phase required to procure water reclamation contracts from oil and gas customers. STW Resources is in various stages of contract negotiations with several operators for fixed and/or mobile systems to process and reclaim volumes of water ranging from 5,000 to 60,000 barrels per day. Revenues from these projects can range from $0.25 / barrel to $1.00 -plus per barrel, depending on water chemistry and partnering economics. Several oil and gas lease operators with production throughout the Permian Basin have expressed an interest to participate in STW Resources'' pilot programs that will allow the Company to demonstrate the effectiveness of its technologies. Some of the proposed pilots (beginning Q1 2012) are with operators identified by Platt Rankings as in the top 75 global energy companies.

STW Resources'' technology cleans produced and/or "brackish water" (water that has more salinity than fresh water, but not as much as seawater) from underground aquifers to operator''s various specifications required in the drilling and fracking operations of oil and gas wells. This technology is capable of removing sulfates, hydrocarbons, iron, magnesium, H2S, and any other contaminants. Further removal of chlorides, from brackish water, results in potable water suitable for human consumption. This water, previously not utilized, is being introduced into the ecosystem by the Company; the processed water will be re-used by the operator for their drilling and/or fracking operations.

"The deployment of the pilot technology puts the Company in a position to demonstrate in the field that we can clean any type of water," commented Stanley Weiner , CEO of STW Resources. "We believe the pilots will show the effectiveness of our technology and establish STW as a leading water services Company in the Permian Basin, a region with one of the highest concentration of wells in the United States . Many oil companies are looking for a company that can reclaim their water at an economical cost, and we believe we will demonstrate this capability. Future systems can be centrally located to developmental oil and gas fields, reducing the transportation cost of water from other sources. Processing the water will help preserve our dwindling fresh water resources while reducing dependence on foreign oil sources."

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