STW Resources Partnering in JV to Remediate Drill Cuttings
STW Resources Holding Corp., an oil field services/construction and water reclamation company, announced Monday that it is participating in a joint venture to remediate oil based drill cuttings. STW and its joint venture partners in Black Wolf will derive revenues from receipt and disposal, as well as sale of reclaimed byproducts to oil refineries, drillers and for building asphalt roadbeds.
The company said that with its Black Wolf partners it has identified an 80-acre site in the Eagle Ford Shale Formation in Atascosa County, Texas, for a full-service salt water disposal facility that will include remediation of oil-based cuttings as well as produced and frac flow back water. STW announced last week that it acquired an equity interest in the joint venture. Black Wolf expects to begin build out of the first oil-based cuttings/salt water disposal facility in the second quarter of this year.
STW CEO Chairman Stanley Weiner said, "This will be the first combined disposal and remediation site of its kind and it confirms the breadth of technology, construction and service capabilities provided by STW and its partners." He explained that standard disposal procedures for oil-based cuttings involve "very expensive costs of transportation and a limited number of permitted disposal sites that do not include reclamation of the cuttings."
Lone Wolf Resources, a partner in Black Wolf, is contributing its proprietary technologies for the oil based cuttings remediation. Lone Wolf currently deploys this technology for superfund projects requiring remediation of hydrocarbon-impacted soils. The other partner in Black Wolf is Black Pearl Energy, LLC.
STW Chief Operating Officer Lee Maddox said, "Our new business line combining oil-based cuttings remediation with a saltwater disposal facility, in addition to other recently announced projects, will add new revenue streams and increased value to STW's shareholders."
The new ventures come on the heels of three new STW revenue-producing expansion projects and services that the company announced last week.
--Expansion of its water reclamation business beyond the oil and gas business with delivery of a desalinization system to the Midland Hills Golf Club that converts 700,000 of gallons of brackish well water per day into the equivalent of rainwater for greens and fairway maintenance.
--Executed an agreement with Tiburon Holdings to own and operate a 336,000 gallons or 8,000 barrel per day produced water recycling plant near Midland that will resell reusable water to oil producers. Projected revenue at full capacity is $6 million per year, and the companies are looking at two other sites.
--Acquisition of a 10 percent equity interest in the Black Wolf joint venture that expands STW's business into vertically integrated oil and gas services and dirt construction company in West Texas, Eastern New Mexico and the South Texas Eagle Ford Shale Formation. STW estimates that the partnership revenue will exceed $3 million per month by year-end, and $40+ million in 2014.
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