They forgot to mention in the below release that they filed a 5 day extension on their Q, Then failed to file the Q in the extension period. I would say that is a accomplishment.
I am still positive and think it turns hard.
Friday 22nd May 2015
WATER MANAGEMENT SOLUTIONS
& OILFIELD SERVICES
CORPORATE NEWSLETTER OTCQB: STWS
A Brief Note From Our CEO
As the summer season is ushered in with Memorial Day, we at STW Resources would like to take time to honor those Americans who served in the military and who fell on numerous battlefields to make the life that we enjoy today possible. Indeed, there is much for which to be thankful, yet we must always remain vigilant.
In our specialized corner of the world, it is water on which we focus our vigilance--particularly as summer approaches and the dry states contemplate the ever-growing threat to our way of life posed by dwindling fresh water supplies.
With this in mind, we have some exciting news this month:
• We held a successful demonstration of the STW Salttech Water Desalination Technology in Austin, Texas for Texas legislators and their staff members, the Texas Water Development Board and the Texas Commission on Environmental Quality representatives, and a number of stakeholders in attendance representing water district, municipal, industrial, water trade organization, oil and gas, geothermal energy, land acquisition, construction, water treatment, lobby, investment, and engineering interests.
• Our own Alan Murphy, President of STW Water, had the pleasure to make a presentation of our technology at the SMU Power Plays GeoThermal Conference in Dallas, and last, but certainly not least …
• We closed an initial $5 million financing arrangement to capitalize STW Water’s desalination and water reclamation services
All in all, it’s been a fantastic month for us, and we hope you will enjoy reading about it in detail below.
Stanley T. Weiner
CEO and Chairman of the Board
$5 Million Capitalization
We are very pleased to announce that on May 5th we signed an agreement with a Houston-based family investment office to finance STW Water’s design, engineer and build model and our design, build, own, and operate model. This enables STW to design and sell the equipment and also to own the equipment and process water on a fee basis per gallon of water.
While we were already working on two major projects—the $3.3-million Horizon City project and the $2.8-million oil company water facility project--this $5 million non-equity-linked capital infusion means that we can immediately begin several additional projects. We have 9 additional projects that we can now begin within the next 6-9 months, which will, in turn, enable us to continue to grow at an impressive pace.
These additional projects under this new capitalization will primarily focus on water in the dry states of Texas, Oklahoma, New Mexico and California. The annual revenues from these projects will range from $1.5 million to $4+ million with gross profit margins of between 27% and 30%.
If you’ve missed our earlier newsletters and press releases—STW Water has a 30-year exclusive agreement with the City of Fort Stockton, Texas, which has awarded us the rights to drill for and produce water from the water reserves of the Capitan Reef Aquifer, which has the potential to supply a number of municipalities without in any way compromising the reservoir’s integrity. Here, we are planning 11 production wells, which are expected to generate approximately 2.5+ million gallons of water per day, per well. We also have the right to drill wells in the brackish water aquifers. We expect to drill the first well in the next 30 days.
Another Successful Demonstration
On May 13th and 14th, we had the opportunity to demonstrate our STW Salttech DyVaR water desalination system in Austin, Texas. This was a key demonstration of our technology with influential attendees ranging from regulatory authorities and municipal authorities to oil and gas company representatives and engineers.
For the demonstration, we obtained water samples directly from the Gulf of Mexico and processed the salt water through the DyVaR system, revealing the results to those in attendance. An independent third party verified the results in a certified water laboratory, which clearly and transparently demonstrated the high-level performance capacity of the system to turn the Gulf of Mexico into a new source of fresh water for Americans.
We are spreading the word that STW Resources is a company with the necessary expertise in the specialized sector of water reclamation and desalination by educating and creating awareness for a technology system that will change the way we think about water--and the future. The overriding message we are sending with these demonstrations is that water is precious, and the economic consequences will be severe without an economically viable and environmentally friendly technology offered by the STW Salttech DyVaR Technology.
STW Resources have plans to conduct numerous additional demonstrations across the State of Texas in the coming months.
Major Turn of Events for Desalination
Recently, the State of Texas passed HB 2031, which will reduce the time required for approval of marine water desalination projects. For us, this represents a very fortuitous recognition of the need for a purification system such as the STW DyVaR.
Earlier this month, the Texas legislature referred to the Senate Agriculture, Water & Rural Affairs Committee, a major bill—HB 2031--designed to boost desalination projects in the state. We are extremely optimistic about this bill because it will streamline the process for requesting desalination permits. This means that Texas is truly ready to explore and expedite the development of all of its potential brackish and ocean water resources—and we are ready to play a prominent role in this initiative.
Also, this month the State of California’s State Water Resources Control Board approved the first statewide standards for building desalination plants to treat seawater from the Pacific Ocean. The approval will set rules to allow regional water boards in California to evaluate applications to build and operate desalination plants.
Power Plays—The SMU Conference
We were also honored this month to have STW Resources’ Alan Murphy invited to speak at the SMU Power Plays GeoThermal Conference at the SMU campus in Dallas.
This was another great opportunity for us to showcase our STW Salttech desalination technology and to come together with great minds in the geothermal and oil and gas fields to discuss water—one of the most pressing issues of our time. Utilizing our desalination technology with geothermal creates a completely Blue/Green environmentally and sustainable supply of electricity and fresh water. If used on seawater, there will be no salty concentrated by-product discharged into the local waterways as the DyVaR technology is a zero liquid discharge system that recovers 95-97% of the freshwater from a gallon of seawater and the reject is salt crystals and minerals. If the DyVaR is not utilized, the seawater reverse osmosis system only recovers 35-50% of the fresh water and the concentrated salty reject is either deposited in disposal wells or returned to the ocean with the potential of creating environmentally harmful results to marine life.
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In the meantime, we look forward to “making waves” across the dry states by building awareness of our new technology, utilizing our new capitalization to realize even more ambitious projects, and benefiting from the clearing of some very important regulatory hurdles that collectively illustrate just how timely it is to forge full speed ahead with desalination.
I hope you enjoyed the newsletter, and we’ll be back again next month.
