STW Resources Holding Corp. (OTC Markets: STWS), an oilfield services and water reclamation company, along with Black Wolf Enterprises has expanded its oilfield infrastructure services business with three new contracts. STW oversees business development, integration and marketing for Black Wolf, of which STW owns 10%.
The contracts with three producers in West Texas are to provide construction and maintenance of lease roads, pit closures, construction of drill site locations, reserve pits and frac water ponds using heavy earth moving equipment. Black Wolf's expansion includes two additional "spreads", each a five to six man crew and equipment including bulldozers, maintainers, compaction rollers and water trucks. STW chief operating officer Lee Maddox, said, "Our work with Black Wolf Enterprises also provides us the opportunity to execute our marketing and sales strategy by providing supplementary services to these customers." These services include construction of production facilities, environmental and remediation services, conservation efforts such as evaporation covers for frac ponds, and the recycling of produced and flowback waters.
Maddox added: "Black Wolf's master service agreements with oil and gas operators in the Permian Basin are great platforms for STW's growth by facilitating our marketing strategy of crossover sales." He explained that the company's immediate growth plans include the continued deployment of additional spreads to keep up with demand from new contracts.
Compared to February 2013, production this year shows an increase of 2.2%, or 1.4 Bcf/d of incremental gas supplies to the market.
The acquisition represents additional working interests in wells currently owned by MEMP.