STW Resources Acquires An Equity Interest In Black Wolf Enterprises, LLC
MIDLAND, Texas, Jan. 23, 2013 /PRNewswire/ -- STW Resources Holding Corp. ("STW") (STWS.PK), an oilfield services and water reclamation company, today announced that it has acquired an equity interest in Black Wolf Enterprises, LLC ("Black Wolf"), a joint venture between Lone Wolf Resources, LLC ("Lone Wolf Resources") and Black Pearl Energy, LLC. In an equity exchange agreement, STW purchased ten percent of the joint venture.
Black Wolf currently commercializes the expertise and services of Lone Wolf Resources and Black Pearl in West Texas and Eastern New Mexico, and intends to expand into South Texas during the first quarter of this year. Black Wolf constructs drill sites, reserve pits, frac ponds, roads, pit closings, liners, leak detection systems, evaporation covers, and provides associated maintenance. The company also offers turnkey services for H-11 permitted ponds, including surveys, engineering and design, and permitting for storage of produced and brine waters. Black Wolf utilizes proprietary technologies employed by Lone Wolf Resources in the reclamation of hydrocarbon-impacted soils.
Black Wolf is currently negotiating on a number of multi-well packages with many of the largest oil and gas producers in West Texas. Based on the current growth and business development plan Black Wolf will complete its first full year end; with an estimated 40m in revenue for 2014.
The partnership acquisition broadens STW's presence as a vertically integrated oilfield services company. Benefits to STW include recurring revenues from the joint venture's business lines, as well as access to additional projects such as reclamation of oil-based cuttings and environmental remediation. As an equity partner, STW can further expand its holdings through its increased ownership in these projects. Through broader exposure in oilfield services, STW will benefit from expanded opportunities for the deployment of their water recycling technologies and processes.
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