Purestream Services LLC and John Swire and Sons Inc., a subsidiary of John Swire & Sons Ltd., announced a capital funding transaction that will allow Purestream to continue to expand its activities in oilfield water treatment and other water treatment markets.
Purestream is a water services company focused on designing and building water treatment systems to treat produced and frac flowback water for discharge and reuse in the oil and shale gas industry. Purestream has developed vapor recompression brine concentration and desalination technology along with single cell induced-gas flotation (IGF) systems for water reuse.
John Swire & Sons Ltd. is the U.K.-based parent company of the Swire group, a diversified global group. Swire's activities include cold storage, property development, beverages and support for the onshore and offshore oil and gas industries. Through its subsidiary Swire Oilfield Services Inc., Swire provides support services to the U.S. oil industry, both on and offshore. In particular, Swire provides a number of environmentally friendly solutions for the U.S. shale oil and gas sectors.
Under the terms of the agreement, John Swire & Sons Inc. will provide funding to Purestream that will enable the company to maximize business opportunities arising from the demand for water treatment and management capabilities as a result of increased drilling in areas such as the Permian Basin and Eagle Ford in Texas, and the Bakken, primarily in North Dakota. As part of the agreement, Andy Hunter, chairman of Swire Water Solutions, will join the Purestream board.
"This agreement comes at a great time for Purestream as we will benefit from Swire's U.S. and international presence and expertise in the onshore market, enabling us to better meet the needs of our customers as we deploy and operate new contracted systems in 2015. The partnership will also enable us to tap into Swire's customer base, increasing our reach in the U.S. market," said Neil Richardson, CEO of Purestream.
"Not only will this partnership enable Purestream to realize that potential, but it will enable Swire Oilfield Services to expand the range of products it can provide its customers," Hunter said. "The recent reduction in the price of oil, combined with a greater need to minimize the impact on the environment, increases the priority for the oilfield services sector to enhance efficiencies and reduce costs. I believe this partnership will enable both companies to achieve these goals offering one of the most comprehensive range of services to the onshore oil industry in the U.S. I look forward to working closely with the Purestream team."
Source: Purestream Services
