STW Resources Holding Corp. and the City of Ft. Stockton held a press conference reported the signing of a lease agreement on municipal land to drill multiple brackish water wells recovering water from the Capitan Reef Brackish Water Aquifer.

Studies in recent hydrogeological reports show potential production of 100+ million gallons per day for up to 100+ years. Although classified as brackish, the quality of this water is potable and can be used without treatment. If further studies show different, STW will process the water for municipal use through technology that it has already deployed for processing brackish water.

STW said it will provide this water to several local west Texas municipalities and industrial customers. Current rates for this water range from $4.00 per 1,000 gallons to $8.00 per 1,000 gallons sold. STW holds the to right sell water contracts to beneficial users for up to 100 years or the life of the contracts agreed upon.

The initial project cost is $28 million; the company is currently negotiating terms with investors for partnering and/or financing.