STW Resources Holding Corp. (“STW Resources”) (OTCBB:STWS), a water reclamation services company, today announced that it has executed a binding letter of intent to acquire JNC Energy Systems, LLC, (“JNC”), and its two affiliates, Green Line Power LLC (“GLP”) and TexRep7, LLC, a d/b/a/ Saturn Power (“REP” and together with GLP and REP, the “Power Co”).

JNC ( www.JNCenergy.com) generates electricity from casinghead and/or stranded natural gas. Through an affiliated certified Retail Electric Provider (REP), JNC provides electricity for use on site by the oil and gas producers or sold to retail and commercial customers by interconnecting with the electrical grid at the generator site. GLP uploads the produced electricity directly into primary electricity transmission lines; and REP sells or trades the electricity on the open market.

STW management believes there is a demand for JNC’s technology from oil and gas producers that find commercially uneconomic gas they can’t sell into a gas pipeline. For example, if gas is found associated with oil production that can’t be sold into a gas pipeline for reasons of too much nitrogen or sulfur content or low volume that makes the cost of building a pipeline prohibitive, its value is lost because it then is typically vented into the atmosphere or burned off using a flare system. JNC can capitalize on these opportunities by converting the gas into electricity, which then can be used to run oil field equipment or be sold into the electricity grid.

JNC’s proprietary generating units are compact and skid mounted, allowing them to be moved and installed with ease in remote locations. The units operate on a continual basis with minimal manual intervention.

Stanley Weiner, CEO of STW Resources, commented, “The acquisition of JNC provides a complementary model to our current business and will provide our customers with an efficient, integrated suite of services.”