STW Resources Holding Corp. (fka STWSQ)

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STW Resources Releases Shareholder Update on Water-Related Activities
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STW Resources Holding Corp (USOTC:STWS)
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Today : Wednesday 8 April 2015

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Joint Ventures and Relationships Build on Company’s Focus on Water Reclamation, Water Desalination, and Remediation

STW Resources Holding Corp, an integrated provider of water management, including water reclamation and remediation, and oilfield services, announced today that its wholly-owned subsidiary, STW Water Process & Technologies, LLC (STW Water) has made major progress in different potential water-related projects in Texas, California, and Oklahoma.

STW Water recently executed a non-disclosure agreement (NDA) with a major reverse osmosis (RO) manufacturer that has been instrumental in designing and building reverse osmosis facilities around the world. The RO Company is interested in incorporating STW’s zero liquid discharge Salttech system inline with their systems. The Salttech system will recover approximately 95-97% of the fresh water from the highly salty brine reject that is the by-product of reverse osmosis systems. Generally, this concentrated brine reject is disposed of by returning it back to the ocean and local waterways. There is an environmental concern that this brine reject can damage the ecosystem of these waterways. With STW’s technology designed and incorporated into the system, there will be no potentially environmentally harmful side effects since there will be no need to dispose any reject into these waterways. This company, along with STW, will be bidding on ocean desalination projects in United States coastline cities. STW is also working on several projects that will utilize STW’s hybrid high-brackish reverse osmosis unit that recovers up to 85+% fresh water, followed by the patented ZLD system capable of achieving 95-97% fresh water recovery and 3-5% solid waste consisting of salt crystals and minerals. The Salttech system can economically process water, and requires no filtration or chemicals. Until now, the price of desalinated water projects has been prohibitively expensive, but STW’s project comes in at approximately $1,100-$1,350 per acre-foot of water which when comparing cost and output STW’s solution is less than today’s desalination technology.

STW has also been invited to perform a pilot demonstration on its recently licensed “Toilet-to-Tap” technology with two major cities in Texas. STW will be following the protocol required by the regulatory authorities. Starting in the second quarter, STW, in conjunction with Sunstone Water Group, will be initiating pilot projects, subject to the oversight of the Texas Commission on Environmental Quality (TCEQ). These demos will exhibit the efficacy of the system and to also gain acceptance and approval for use commercially in municipalities. Although “toilet-to-tap” processing is not new, there has not been a very serious commitment from industry to pursue it. Understandably, it has been slow to achieve public acceptance. But, because of the drought situations and fresh water shortages in several parts of the United States and other areas of the world, it will become a necessary option for the water industry to develop going forward. The technology being piloted is Sunstone technology and can be applied to process municipal wastewater to potable drinking water.

Additionally, STW Resources will make this innovative technology available for use in disaster relief and recovery. The system can be easily transported in shipping containers for fast and efficient deployment. Sunstone’s technology increases STW’s arsenal of water treatment technologies in keeping with the company’s business model of being a source for remediating all types of water. The Sunstone technology is currently operating in many countries in Asia, Africa and the Middle East. STW Water will be taking the lead for deployment of the process in the U.S.

Alan Murphy, President of STW Water, has performed and overseen pilots for several different technologies over the past few years. He has been involved with the design, installation, construction, and maintenance of many of the reverse osmosis systems in operation in Texas today. Although there are several technologies on the market for this specialized type of water treatment, Sunstone has developed and patented a system that is far advanced technologically than most all other systems available.

STW has been added to a short list of approved vendors for a municipal water project in Oklahoma that will consist of processing brackish water for human use and possibly utilizing our “toilet-to-tap” technology as soon as it has been approved by the TCEQ. The project is for a town of approximately 23,000 citizens that is on the verge of running out of fresh water. Unfortunately, the water shortage problem is becoming the number one problem for many communities across the drought stricken areas in the U.S. today.

Alan Murphy, President of STW Water, said, “We are being contacted almost daily by different municipalities and other interested municipalities in Oklahoma, Texas, and California that are in need of new water resources. The Sunstone technology is capable of processing and cleaning contaminated municipal wastewater to specs that are cleaner than the bottled water that is bought in stores every day. Our Salttech Zero Liquid Discharge technology is being sought after by regulatory and environmental agencies as well as municipalities that are in need of fresh water but also have extensive reserves of salty ocean and/or brackish water available to them. One plus is that they are also environmentally concerned about what to do with the concentrated saline by-product and we have the ‘green’ solution to their concerns. This completely environmentally friendly water processing system has a number of technological advancements over the other conventional evaporative thermal distillation and reverse osmosis systems including the ability to produce a solid discharge that is easily used or sold, generating a substantially higher percentage of clean drinking water per gallon of brackish or ocean water, 60% more compact compared to other alternatives, no chemicals, no membranes, and requires little operator attention 24/7 (highly automated), and flexible enough to be in fixed or mobile in its presentation depending on the amount of salt water influent. This system eliminates the need for deep well waste water injections, evaporation ponds and other recognized methods for disposing of concentrated brine waste from desalination activities. DyVaR is the first system designed for highly saline water that does not scale. DyVaR is also very energy efficient using up to 50% less energy as compared to other conventional systems. With the extremely high rate of 95-97% of fresh water recovery from salt water, the total process required to achieve optimum results is considerably reduced. Conventional reverse osmosis needs to process approximately 50 million gallons of seawater per day to recover approximately 22.5 million gallons of fresh water, whereas the DyVaR needs to process only about 23.7 million gallons per day to retrieve the same amount.

“We are wasting our precious fresh water resources every minute of every day when we could be reusing it. We have the technology to clean and process nearly every type of contaminated water for reuse now. Everyone needs to realize that water is our most precious commodity and that it needs to be conserved in every way possible.”

Another water project coming online very soon is the West Texas Water Project. STW will be drilling wells into a 4,000-foot plus reservoir to produce the water for transport to other municipalities and beneficial end users around west Texas. Texas is facing an unprecedented drought, and now a new report is predicting a decades long ‘mega drought’ later this century. The City of Fort Stockton, Texas has leased STW the rights—for 30 years, plus possible extensions—to drill and produce the extensive water reserves from the Capitan Reef Aquifer. Key independent third-party hydro-geological reports say the reservoir could possibly produce in excess of 100+ million gallons per day for over 100 years, without affecting the integrity of the reservoir. STW will utilize its proprietary hybrid reverse osmosis technology to process this water for municipal use.

STW Resources expects to be booking revenue from this project in the second to third quarter of this year.
According to one independent third-party report, STW is tapping into potentially 14 million-acre feet of water—or about 5.6 trillion gallons
In the first phase, the project will drill up to 11 production wells and expected to pump over 10 million gallons of water per day
Another very important and promising relationship is being established with a water-related engineering firm in California. This currently undisclosed firm has been involved with water projects for approximately 20 years and recently contacted STW Water to possibly forge a relationship with STW Water so they can introduce the company’s technologies to parched Southern California. STW officials will be attending the Water Reuse association in Huntington Beach, California in early May and will be meeting with this firm to further solidify a relationship with them.