STW Resources Initiates Growth Plan in STW Pipeline in Q3 and Provides Update

MIDLAND, Texas--()--STW Resources Holding Corp, (OTCQB: STWS), an integrated provider of water management, including water reclamation and remediation, and oilfield pipeline maintenance and new construction services, announced today that its wholly-owned subsidiary, STW Pipeline, has expanded its business in the Permian Basin. The company’s objective in the first half of 2015 was to achieve net cash flow and increase their customer base. In March of this year the Pipeline Company crossed over to operating with net cash flow and has maintained this position on a monthly basis since. Customer diversification has increased several times by adding customers such as Plains and Anadarko. The end of May this year the company was operating 10 crews profitably.

Having achieved our goals by June we set out to initiate our growth plan for the second half of 2015. We increased our business by adding additional crews and plan to add an additional 8 crews by the end of the 3rd quarter. These crews provide a steady base of contracted work as well as time and materials billing for maintenance and repair of oil and gas pipelines. Each crew will generate approximately $1.1 million in revenues annually at a net margin of 11 to 12 percent.

STW Pipeline will continue the growth by implementing this more conservative strategy. Additionally the company is increasing their business and margins through new construction of larger pipelines that afford a net margin between 19 to 20 percent. STW is actively in the bidding process with several customers for this type of work.

In the third quarter STW Pipeline began providing additional environmental services for their customer base. This is a line of business that is in high demand with great margins. The company did not have significant capital expenditures to launch these services. We’re excited to add these services to our company and look forward to providing an update next quarter.

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About STW Resources Holding Corp.

STW Resources Holding Corp, (STWS) is a quality provider of oilfield pipeline services and water reclamation and processing and management services. STW Water is a Total Water Solutions Provider Company and provides turnkey design build solutions and provides its Customers with “out-of-the-box” design solutions to meet customers’ water needs. STW Water has capabilities to provide complete oversight of various water and wastewater projects with primary focus on engineering, regulatory permitting including Public Water Systems (PWS), Discharge permits, Pilot exception and Pilot Study, equipment design & treatment process design, manufacturing & installation and full scale Commissioning and training for all types of oil & gas, industrial, and municipal water and wastewater markets throughout the State of Texas and the United States. Recently, STW’s model of water ownership has had a great deal of success and broken ground on the Ft. Stockton, Texas project.

The Company consults and provides customized water analysis, reclamation and remediation services to a variety of complex oil and gas produced and flowback water, brackish water, ocean water desalination, industrial, and municipal applications throughout several geographic locations to fill a tremendous need for fresh water in the areas they service. As an independent solutions provider, STW utilizes proven technologies from various well-known manufacturers, including a Zero Liquid Discharge (ZLD) technology that is economically feasible to use. These technologies are available as fixed or mobile units with varying capabilities. STW's process ensures that the most effective and efficient technologies are implemented. The ZLD system can process any saline laden water with Total Dissolved Solids (TDS) levels ranging from 5,000 ppm to >300,000 ppm. Current potential project locations include the Eagle Ford Shale (TX), the west Texas Delaware and Permian Basins (TX), eastern New Mexico, and ocean desalination projects on the Gulf Coast of Texas, California, and Hawaii.

STW also has the technology to reclaim municipal wastewater to potable reuse standards. It is specifically referred to as: Municipal Reclaimed “NEW” Water. STW’s (Formerly "Toilet-to-Tap”) Reclaimed “NEW” Water systems for reclaimed wastewater with its advanced pre‐treatment process combined with Hybrid high brackish high recovery or Seawater Reverse Osmosis System is capable of purifying contaminated water with a variety of complex water quality thereby preventing fouling attacks on membranes & allowing reliable operation with significantly reduced operating expenses and decreased power consumption.

ENVIRONMENTAL IMPACT: If STW’s Proprietary ZLD Technology is placed in-line with a Seawater Reverse Osmosis System or used with a geothermal operation, there will be no potentially environmentally sensitive brine concentrate discharged into the local waterways since the system is Zero Liquid Discharge and 95-97%+ of the fresh water is recovered in the process. The waste stream is salt crystals and minerals. This is a completely Blue/Green operation that provides a sustainable supply of power and water for municipal and industrial use.

STW uses the latest technology to install new pipelines, and repair, maintain and restore oil & gas pipelines (STW Pipeline).

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Forward-Looking Statements

This news release contains forward-looking statements about our business, or financial condition and prospects that reflect our assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. There may be other risks and circumstances that we are unable to predict. When used in this news release, words such as "believes," "expects," "intends," "plans," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including risks discussed in the company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

Contacts

STW Resources Holding Corp
Paul DiFrancesco, 432-296-3000
pauld@stwresources.com
or
Investor Relations
info@stwresources.com

STW Resources Holding Corp