Apr 30, 2012

STW Resources' Pilot Reclamation System Exceeds Requirements

Now designing affordable systems capable of processing any type of oilfield water

STW Resources Holding Corp., a water reclamation services company, which has been operating a pilot program since March 19th, 2012, in the Permian Basin for eleven oil and gas producers, announced that the results have met or exceeded the requirements of these producers for reclaiming twenty varying types of oilfield-produced and brackish water for use and reuse in oil and gas drilling and fracking operations. Through the knowledge gained during the pilot demonstration, STW and its engineering firm are now designing systems capable of processing any type of oilfield water on an economically feasible basis.

Input water was taken from eighteen separate Spraberry, Wolfcamp, Avalon and Ellenburger sources, and from two separate brackish aquifer sites. After reclamation, the tested waters had no detectable levels of H2S (hydrogen sulfide) and acceptable levels of sulfates, iron and other contaminants required to make the reclaimed water meet the rigid specifications for drilling and fracking purposes.

STW Resources is now working with its engineering firm, Bob J. Johnson & Associates, Houston, to customize water-processing systems designed for each type of oilfield wastewater supplied by producers. Proposals for each producer are comprised of specially designed and engineered systems. STW expects to be deploying and operating systems in the 4th quarter of this year.

"It's not a 'one size fits all' situation; there is no single system that will be economically feasible for all different types of oilfield waters, as chemistry differs greatly from source to source," said Stanley Weiner, CEO of STW Resources.

"Reclamation of oilfield water is economically feasible when the systems are properly designed for specific water chemistries, as STW's pilot program demonstrated," he said. "Producers save money by cleaning oilfield and brackish water and then reusing it in drilling and fracking operations, while also reducing the industry's overall fresh water requirements. It's a win-win situation for all" he said.

The company stated that revenues from these projects are based on a per-barrel processing fee that can be competitive or significantly less than an operator's total cost of water, including raw water costs, disposal fees and water transfer and/or transportation costs. STW water processing systems will be located where drilling operations are taking place, thus reducing the water transfer and disposal costs. There is no up-front capital cost for the producer. The producer pays for water only when it has been cleaned to the producer's specifications.