STW Resources signs additional “alternative brackish water” lease in West Texas

Fresh, clear water
Source: DollarPhotoClub

STW Resources Holding Corporation, an integrated provider of water management, including water reclamation and remediation, and oilfield services, announced today that STW Water Process & Technologies, a subsidiary of STW Resources, purchased another brackish water lease in the Ft. Stockton, Texas area. This newly acquired water source is the second lease comprising several tracts of land as a key component in STW’s previously announced West Texas Water Project. STW will be continuously adding additional water leases to the portfolio. The main purpose of the West Texas Water Project is to access “alternative” (other than fresh water) brackish water sources, process these water sources up to potable drinking water standards, and to supply the fresh water to water-starved communities and industrial customers in west Texas.

The newly purchased lease has artesian (free flowing) brackish water flowing from the San Andres formation, which is approximately 2,500-3,500 feet below the surface. Several of the eight water wells currently flowing have been producing approximately 1 to 2.5 million gallons per day (GPD) for the last 40+ years, according to the Pecos County Water authorities.

The water produced is brackish and will be processed with STW’s proprietary Hybrid Brackish Reverse Osmosis System prior to sale to customers.

The Company’s plan is to supply the alternative processed water to the surrounding communities and industrial users and, in addition, supply a number of the water-starved cities north of Ft. Stockton without disturbing the fresh water supplies that Ft. Stockton relies on daily. STW will initially sell three to five million GPD within 50 miles of Ft. Stockton and Imperial, Texas. STW expects the sales of water to increase to the allowable limit, which could potentially exceed 30 million GPD from this particular water lease and surrounding water sources upon the completion of the proposed STW and Investor owned 60-93 mile pipeline to the cities north of Ft. Stockton. This pipeline has been proposed in STW’s West Texas Water Project.

The Company’s strategy of developing alternative water sources involves adding other currently unusable aquifers throughout the Southwest United States to the company’s water lease portfolio. These alternative water sources can be treated and used for municipal (human consumption) and industrial applications.

Fort Stockton Lease Update

STW’s pursuit of the Capitan Reef Aquifer water on the Ft. Stockton lease is advancing as rapidly as politics and regulations will allow. Currently, there is a temporary moratorium on the production and sale of Capitan Reef water until the Texas Water Development Board (TWDB) completes a hydrogeological (report of possible water reserves in an aquifer based on a scientific evaluation) report detailing how much water can be produced from the aquifer.

The estimated time frame for the moratorium being lifted is by December of 2015 or January 2016.

In the meantime, the lease is intact. The Company’s immediate plan is to finish drilling the currently started well #2 and to obtain a production permit and begin sales of water from this lease within current production amounts previously established by the Middle Pecos County Groundwater Conservation District. STW expects water production up to 1,500 GPM or approximately 2 million GPD at a development cost of approximately $3 million per well and a brackish water processing plant at a cost of approximately $1 million.

Stanley Weiner, CEO of STW Resources, said, “Our project investors are fully supportive and agree with our strategy regarding the new lease and are anxious to begin funding to drill several wells. The number of wells to be drilled will depend on the amount of water that can be produced from each well. The projected production appears to be approximately 1-2.5 million GPD from each well based upon the existing wells on the lease.”

Weiner continued, “We currently have eight solid projects in our project pipeline, as discussed previously in the June Company conference call, with several more projects being qualified. Our business plan for the West Texas Water Project has remained consistent from the beginning and that is to drill wells into the Capitan Reef on the Ft. Stockton lease and produce the Reef water and drill wells on additional leases in the area for other communities in west Texas, as well as other benefiting industrial end users. This project has the potential to save the West Texas communities from potential drought problems for years to come.”

Article continues below this message

Have your opinion heard with Shale Gas International

We accept interesting, well-written opinion and analysis articles of up to 1,500 words, that offer unique insights into the shale industry. The articles cannot be overtly promotional in nature and need to fit into at least one of our content categories.

If accepted, the article must be exclusive to Shale Gas International website and cannot appear on any other websites, publications, etc. Each article may contain up to three links to external websites relevant to the content discussed in the piece.

If you would like to contribute to Shale Gas International website, please contact us at: editor[at]mw-ep.com