STW Resources Holding Corp., a water reclamation services company, has formed a joint venture, Water Reclamation Partners, LLC (WRP), with privately held Aqua Verde LLC, to provide water solutions for oil and gas producers, municipalities, and environmental remediation projects.
WRP is 51% owned by STW Resources. Under the terms of the JV, Aqua Verde will assign its existing Master Services Contract with a major oil and gas producer located in the Denver-Julesburg (DJ) basin, to WRP.
To service the Master Services Contract, WRP is planning to deploy technology to reclaim a minimum of 4,000 bpd of produced water, increasing to 30,000 bpd, at a rate of $2.25 to $5.75 per barrel depending on the treatment necessary.
Additionally, WRP has begun testing water samples for multiple producers in the DJ Basin to provide a suite of customized water reclamation services, based on the local water chemistry. The potential business for STW is the reclamation of hundreds of thousands of barrels of water daily.
Stanley Weiner, Chief Executive Officer of STW Resources said, “Water is a major environmental and political challenge for the oil and gas industry. STW is positioned to demonstrate that water reclamation is both politically viable and economical for producers.”