On Sept. 9, STW Resources Holding Corp. (OTC: STWS) said it planned to acquire Midland, Texas-based Black Pearl Energy LLC for about $2 million.
Black Pearl installs liners and has introduced floating evaporation covers for freshwater frack pits to the oil industry. In business for four years, it primarily operates in the Permian Basin, STW said.
"Black Pearl is a valuable addition to our suite of services and our plan for STW's continued growth of water conservation activities," said Stanley Weiner, STW’s CEO.
"The evaporation covers completely prevent any evaporation of water from the ponds, which is quite a lot out here in West Texas with the dry winds and high temperatures. The liners keep the water from soaking into the dry ground. Both have a direct impact on water usage and help conserve our precious freshwater resources," he added.
STW, also based in Midland, will operate Black Pearl as a wholly owned subsidiary, the company noted.
In 2013, Black Pearl's revenues were $6.4 million with net cash flow of roughly $750,000, STW said. For the period ending June 30, Black Pearl's revenues tracked at $5.5 million, an almost-67% increase over 2013 revenues, the company added.
The transaction is scheduled to close by the end of September, the company said.
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