Today, Cadiz Inc. (NASDAQ: CDZI) announced that following the completion of extensive field studies, Layne Christensen Company (NASDAQ: LAYN), a recognized leader in water-related drilling, installation, and maintenance services, will be its preferred provider of well-field construction for the Cadiz Water Conservation & Storage Project (the “Project”). Under an agreement between Layne Christensen and Cadiz, Layne Christensen will have the right of first refusal on well-field construction for the Project. One of Layne Christensen’s largest offices in the United States is located in Fontana in San Bernardino County, California. From its Fontana office, Layne Christensen can provide water well infrastructure and labor for the Project. Cadiz plans to conserve up to 50,000 acre-feet of water per year and to store and recover potentially one million acre-feet of water as part of the Project.
Layne Christensen has made a significant commitment to the Project to obtain its preferred status. Through the agreement with Layne, Cadiz intends for Layne Christensen to construct a multi-million dollar well field. Under such an agreement, Layne Christensen can drill and maintain the wells, install pumping equipment, and perform other related repair and maintenance services. Named by DeMarche Associates as one of America’s best companies and in business for over a century, Layne Christensen will bring to the Project expertise and high standards rivaled by none.
The announcement of the Layne Christensen agreement comes on the heels of the completion of a year-long study by the internationally respected environmental firm CH2M Hill confirming an underground water supply in the Cadiz project area of eastern San Bernardino County that is among the largest groundwater basins in California. The aquifer system’s deep, underground waters are naturally replenishing by watersheds spanning more than 1,300 square miles. As part of the study’s peer review process, Layne Christensen led water drilling exploration that involved drilling two test wells and two additional bore holes to depths of 1,000 to 2,000 feet. Extensive pump testing confirmed the presence of a deep and dynamic aquifer system with the water table extending to depths of nearly 2,000 feet beneath the valley floor.